Pakistan to get $1bln next week from Saudi Arabia

KARACHI: Pakistan is to receive $1 billion dollars from Saudi Arabia in a day or two out of the total $3 billion dollars it committed to support the country’s balance of payment, finance minister Asad Umar said on Saturday.

“The country is out of the immediate balance of payment funding crisis,” Umar said. “(It) is working on a clear path for recovery… benefit of the revised economic strategy may be visible during the next six to nine months.”

The minister said the government is taking all possible steps to boost economy.

Last month, Saudi Arabia agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports.

Addressing members of the Overseas Investors Chamber of Commerce and Industry (OICCI), the finance minister said the government is soon going to engage the private sector to leverage the benefit of China-Pakistan Economic Corridor projects by putting up manufacturing facilities in various sectors.

The minister said companies from Turkey, Malaysia, UAE and Europe showed interest in investing in energy, information technology and engineering sectors.

“(There is) need to improve sentiments to attract foreign investment,” he added in an official statement. “OICCI can play pivotal role in increasing foreign investment.”

The finance minister said the financial action task force is a serious issue, giving a reference to the global financial watchdog that keeps Pakistan in its watchlist of countries with loopholes in their money laundering and combating of counterterrorism strategies.

The minister said Pakistanis hold around 4,000 assets in Dubai, while they hold 95,000 accounts in 27 countries.

“Notices are being sent to Pakistanis having accounts and assets abroad.”

The minister said the government is devising rule against movement of ill-gotten money. Hundi and hawla are consumed in illegal works and terrorism, while money earned through corruption sent abroad through hundi system. “Government (is) making efforts to bring looted money.”

Umar further said revenue target assigned to the Federal Board of Revenue are unrealistic as they are on the lower side.

“(There is a) decline in tax net due to political collusion and irresponsibility,” he added.

Umar agreed with OICCI’s recommendations that digitisation, data analytics and data mining will be leveraged to increase the government efforts towards good governance and more importantly for broadening the tax base.

The minister assured the OICCI members that their concerns on delayed tax refunds, higher circular debts and issues of delayed remittances would be attended during the current fiscal year.

Cases on tax collection amounting to Rs1,300 billion are pending before court and a need is urged for separate bench at the courts to address cases.

Irfan Wahab Khan, president of OICCI said the chamber has always been vocal as foreign direct investment ambassadors of Pakistan and promoted the positive potential of the country for investment.

“OICCI members believe in Pakistan and have been significant investors as a group and in 2017 alone have made capital investment of around $2.7 billion, and $10.4 billion in past six years,” Khan said in a separate statement.

OICCI President offered the government the foreign investor’s support in promoting economic stability and for foreign direct investment growth by providing technical assistance in the form of successful strategies which has worked internationally. “OICCI is soon going to share comprehensive ‘OICCI Digital Pakistan’ recommendations to lead the country into an era of digital and financial inclusion and good governance,” he said.

Khan also offered the assistance to the government in improving the perception and positive branding of the country.