Business

FBR reform plan in works amid opposition over private members

Published

11 months ago

Farwa

FBR top management will send summary to cabinet.
SIFC has approved the restructuring plan of the FBR.
Reforms aim at strengthening governance with accountability.

ISLAMABAD: The Federal Board of Revenue’s (FBR) top management will send a summary to the federal cabinet on a reform plan to implement the decision of the Special Investment Facilitation Council (SIFC), The News reported on Wednesday.

However, the FBR has decided to oppose private members as head of Inland Revenue and Customs boards in writing.

“Whatever is not in the larger interest of revenue generation efforts, the FBR will oppose it tooth and nail,” sources confirmed to The News on Tuesday.

It is yet to ascertain as to how the private members, after getting the position of chairman of boards, would ensure that there would be no conflict of interest. The SIFC has approved the restructuring plan of the FBR and assigned the chairman/Revenue Division secretary to prepare and send summary to the cabinet in 15 days.

Sources said that the SIFC possessed overriding on all directives and its directive would be fully complied.

However, the FBR’s top guns would oppose in writing private members as head of boards in Inland Revenue and Customs side as well as inclusion of different federal secretaries into the boards.

There has been an impression within the ranks of the FBR that the mighty DMG officers found space to clinch positions over and above the director generals (DGs) of Inland Revenue of FBR and Federal Board of Customs. It might also erode the accountability mechanism because if all these top notches secretaries were appointed on the boards, then they might close their eyes to any wrongdoings of subordinates in IRS and Customs.

There has been another apprehension if the tax revenue generation will go up or there was no commitment. On appointment of private members, one official reminded the episode of last one and half decades when the audit was outsourced to private firms after which a fiasco had surfaced and ultimately, the government had to shelve its decision of outsourcing of audit.

Caretaker Minister of Finance Dr Shamshad Akhtar had proposed a new governance structure for the FBR to establish separate Federal Board of Customs and Federal Board of Inland Revenue and appointment of DGs from respective cadres as their heads.

The separate Oversight Boards for Customs and Inland Revenue Administrations to be chaired by independent high caliber professionals, and members of the board will include public and private sector representation nominated through proper criteria and right expertise and integrity.

The focus of reforms will be on strengthening governance with accountability through oversight boards. The reconstitution of the Federal Policy Board under the minister for finance with the secretary Revenue Division will report to the Federal Policy Board with a new policy mandate.

The Tax Policy Office will be constituted with HR having right expertise, including taxation and industry professionals under the Federal Policy Board, which will look after the harmonization of assets valuation modalities and legal and regulatory framework of taxation regimes and promote revenue and policy coordination. The proposed reforms will be implemented within the existing allocation of resources of the FBR.

The governor SBP advised that the audit function of FBC and FBIR would be placed under the Tax Policy Unit (TPU) to ensure independence.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

22 hours ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.