Day: September 16, 2021

A meeting of the Senate Standing Committee on Planning, Development, and Special Initiatives was held under the Chairmanship of Senator Saleem Mandviwallah at the Parliament House on Thursday.

The Minister for Planning, Development & Special Initiatives, Asad Umer, and Special Assistant to the Prime Minister on CPEC Affairs, Khalid Mansoor, also attended the meeting.

The Chairman expressed his concern that the committee’s proposals and recommendations on various projects at a provincial and federal level were not being considered.

He said that if the Senate’s recommendations are not considered, the committee’s efforts are futile.

The Planning Minister informed the Chairman that final approval on Planning, Development, and Special Initiatives (PSDP) projects is given by the National Economic Council (NEC).

“The NEC approval is final,” Asad Umer stated.

Umer informed the committee that March 31, 2022, is the last date for any project to be sent for approval to the NEC.

The Chairman said that, in 2022, the committee will pre-plan projects and send their final proposals before February 2022.

Senator Shafeeq Tareen expressed his concern on the approval process of provincial projects, which can only be approved if the Chief Minister gives it the go-ahead.

Asad Umar informed the committee that PSDP Projects are divided into two halves, i.e., Federal Minister execution projects and Provincial Minister execution projects.

He said that provincial projects cannot be forwarded to us unless they are approved by the Provincial Development Working Party and then approved by the NEC.

Senator Muhammad Tahir Bizinjo inquired about the N-25 National Highway’s status. The Planning Minister told him that the N-25 had been approved en route to Karachi-Chaman.

Special Assistant to the Prime Minister on CPEC Affairs, Khalid Mansoor, informed the committee that an overview committee on development projects of Baluchistan, headed by MNA Khalid Magsi, has been constituted.

He said that the committee has representations of all political parties, but Senator Shafiq Tareen disagreed with this claim. The Chairman asked for a list of the committee members.

While briefing the committee on the financial and physical progress of all major CPEC projects, the committee was informed that 21 projects, amounting to $15.7 billion, have been completed.

Among these 21 projects, ten are power projects (5,320 MW) and HVDC transmission line projects, which amount to $9.6 billion.

Five projects involve infrastructure, such as roads, mass transit, and optical fiber, amounting to $5.8 billion. Two projects are focused on the Gwadar Port/Free Zone and City Master Plan, amounting to $0.3 billion. Four projects are to do with social-economic development, amounting to $0.014 billion.

Thirty-one (31) projects amounting to $9.3 billion are under implementation, and thirty-six (36) projects amounting to $28.4 billion are under consideration.

While discussing the under implementation projects of Gwadar “Necessary Facilities of Fresh Water Treatment and Supply,” financed through the PSDP Costing to 130 USD Million is 60 percent completed. Pak China Friendship Hospital at Gwadar and Technical and Vocational Institute at Gwadar, financed by GRANT is 90 percent and 10 percent completed, respectively.

While discussing the under-consideration projects of $28.4 billion, Senator Sardar Shafiq Tareen said that coal resources of Balochistan should also be utilized for Power Plants, to which the SAPM on CPEC affairs replied that coal from Balochistan is rich in Sulphur, therefore, it is not feasible.

Commenting on Bostan Economic Zone, Senator Sardar Shafiq showed resentment that despite being the only zone of the province and very important on account of its location being very near to Chaman, Bostan Zone is ignored and there is nothing done which can be seen on the ground. The SAMP on CPEC affairs replied that they have coordinated with Chief Secretary Balochistan in this regard and progress could be seen.

Senator Sardar Shafiq Tareen also raised the issue of the construction of a new bypass to be built on Muslimbagh on Kuchlak to Zhob road. He also pointed out that the construction of Muslimbagh to Zhob road has not been started as of yet, on which the SAMP replied that the case is subjudice. Raising questions on the railway project, Senator Sardar Shafiq Tareen commented that the Quetta-Zhob-Kotla Jaam railway line is too short and must be prioritized.

The Chairman Committee also recommended prioritizing this project. The SAMP on CPEC affairs informed the committee that all the under-consideration projects are at the initial stage. The Chairman Committee sought a report on the so far progress of these projects and the reason obstructing their implementation.

The SAPM on CPEC affairs briefed the committee on the issues faced by the investors in terms of compliance with Investment and Agreement of CPEC–Phase 1 Power Projects including payment of IPPs, long outstanding over dues, the establishment of a revolving account, and WHT on sponsors’ dividends increased post-investment to 25 percent from 7.5 percent.

The SAPM apprised the committee that they plan to set up an “Investment Facilitation Center” to offer “One Window Operation to all Chinese Investors. The Chairman Committee recommended that the SEZ ACT 2012 should be amended to facilitate the investors.

The committee was also informed that Gwadar deep seaport being strategically located has the potential to become Regional Trading Hub and Investment and Marketing Plan to enhance port operations, and popular Gwadar Free zone is currently under development in close coordination with China Overseas Port Holding Company COPHL.

The meeting was attended by Senator Danesh Kumar, Muhammad Tahir Bizinjo, Sardar Muhammad Shafooq Tareen, Hidayat Ullah, and Senator Palwasha Khan. Asad Umer and Special Assistant to the Prime Minister on CPEC Affairs, Khalid Mansoor, along with officials of the Ministry of Planning Development and Special Initiatives, also attended the meeting.

Source: Pro Pakistani

The President of Pakistan, Dr. Arif Alvi has urged businessmen and industrialists to work on the financial inclusion and empowerment of women and persons with disabilities by employing them in their organizations.

He expressed his views on the matter with a delegation of the Sialkot Chamber of Commerce and Industry led by its President, Qaiser Iqbal Baryar, at the Aiwan-e-Sadr today.

Dr. Alvi stated that disabled persons constitute 12 to 14 percent of the country’s population, and need to be uplifted financially through the provision of jobs and by equipping them with marketable skills through the special cooperation of the business community.

The delegation briefed Dr. Alvi about the export potential of the Sialkot Chamber of Commerce and Industry (SCCI) and its contributions to Pakistan’s socio-economic development. Its president also spoke about certain problems that Sialkot’s business community faces, and Dr. Alvi assured the delegation that these issues will be addressed.

Dr. Alvi highlighted that the government is focusing on the empowerment and financial inclusion of the youth, women, and disabled persons. He said that the government had allocated Rs. 100 billion under the Kamyab Jawan Programme to help such people establish their own businesses.

He also lamented the lack of public awareness because of which people had been unable to fully benefit from the loans being offered by the government, and emphasized the need to facilitate and guide them to avail of the loans.

Later on, a delegation of female representatives of the Rawalpindi, Islamabad, and Attock Chambers of Commerce and Industries also called on the President to talk about raising awareness about breast cancer in October. It offered its cooperation for the issue, along with the support of NGOs, women universities and colleges, and other concerned organizations.

Source: Pro Pakistani

Federal Minister for Finance and Revenue Mr. Shaukat Tarin held a virtual meeting with Armida Salsiah Alisjahbana, Executive Secretary of the United Nations Economic and Social Commission for Asia and Pacific (UNESCAP), at the Finance Division on Thursday.

The Finance Minister briefed the Executive Secretary UNESCAP on the macro-economic challenges faced by Pakistan and underlined the economic and fiscal policies being undertaken to place the economy on a growth trajectory.

Tarin informed the Executive Secretary that the Government of Pakistan had to opt for the IMF [International Monetary Fund] program to fix the balance of payments crisis caused by the precarious economic situation in FY 2017-18. He said the COVID-19 pandemic shock, unfortunately, resulted in considerable economic contractions, which led to a loss of livelihoods, disruption in supply lines, and limited economic activity during partial lockdowns.

At present, he briefed, Pakistan is left with a difficult choice to strike a balance between the need for fiscal consolidation and the ever-rising demand for economic stimulus to revive economic growth amid COVID-19 and in a post-COVID scenario. Nevertheless, he maintained, the government introduced smart and targeted lockdowns across various cities and districts to curtail the spread of the virus. This strategy was lauded globally for striking a balance between lives and livelihoods during the testing times, he added.

The Minister stated that the rapidly evolving situation in Afghanistan posed new economic challenges for Pakistan. “Peace and stability in Afghanistan are important for the whole region,” he stressed.

The Finance Minister underlined that due to prudent fiscal policies and strict financial discipline, Pakistan’s economy was shifting from consolidation to growth phase. “The government’s objective is to steer the economy toward an inclusive and sustainable economic growth with [its] key focus on bottom-up approach as envisaged by the Prime Minister. Kamyab Pakistan Program is being introduced to uplift the underprivileged population by extending micro-credit to promote financial empowerment,” he explained.

In her remarks, the Executive Secretary UNESCAP emphasized the significance of supporting the countries which are facing financing and development constraints due to the ongoing pandemic. She stressed the need for evolving a mechanism to provide maximum relief to the developing countries facing socio-economic challenges. She stated that the upcoming UNESCAP Committee on Macroeconomic Policy Committee meeting will propose establishing a consultative group on financing for development for SDGs [Sustainable Development Goals].

She extended an invite to the Finance Minister for delivering a keynote address at the Committee meeting, which the Minister accepted to deliver a keynote address in virtual mode.

The three-day Committee meeting will deliberate on the macroeconomic policies of UNESCAP member countries and other issues relating to financing for development.

Source: Pro Pakistani

The National Tax Council (NTC) has formulated a tax collection framework for toll manufacturing and transportation business in the country, as it has decided that the collection of sales tax on toll manufacturing will rest with the federation, while the provinces will have the taxation rights on the transportation business.

The decision was made in the NTC meeting held with Federal Minister for Finance and Revenue Shaukat Tarin in the chair at the Finance Division on Thursday. Provincial Finance Ministers, Secretary Finance Division, Chairman Federal Board of Revenue (FBR), Chairman Sindh Revenue Board, and other senior officers attended the meeting.

In his opening remarks, the Finance Minister welcomed the participants and emphasized the need for developing consensus between the center and the provinces in matters relating to sales tax harmonization. He emphasized on resolving tax-related issues with mutual cooperation between the federation and the federating units.

In his detailed presentation, Chairman FBR Dr. Muhammad Ashfaq Ahmed pointed out a number of areas for further deliberation and work out an arrangement in a collaborative manner relating to harmonization of GST among the federal and provincial governments.

On the occasion, FBR and the provincial Finance Ministers expressed their views on taxation on transportation, restaurants, toll manufacturing, and the construction sector.

NTC considered different proposals with regard to having a single portal for filing sales tax returns. It was informed that a single portal was being developed and was likely to be launched by the first week of October 2021.

It is pertinent to note that the launch of a single portal for filing returns will cut the compliance cost for the taxpayers and will help increase Pakistan’s rating on Ease-of-Doing Business Index.

NTC decided that detailed input will be invited from the Provincial Revenue Authorities regarding the development of a single portal, making it acceptable to all. Similarly, it was decided that FBR will also develop a standardized income tax returns format in consultation with the provincial governments.

Regarding taxation on the construction business, NTC decided that the taxation right would be shared as per the constitutional arrangements, and a technical committee consisting of all revenue authorities would decide the operational modalities. After having views of FBR and the provinces on taxation of restaurants, the Finance Minister, in his capacity as head of NTC, decided that the provinces will continue to tax restaurants, however, a reference drafted in consultation with the provinces will be sent to the Law Division for its opinion.

All the stakeholders agreed to proceed in the greater national interest and with harmony under the umbrella of NTC.

Source: Pro Pakistani