The federal Finance Minister Muhammad Aurangzeb on Monday rejected the criticism of the Federal Board of Revenue’s (FBR) improved powers, called it “propaganda” and confirmed that the new authority was approved legally and designed only to counter large-scale VAT fraud.
In a speech with journalists at the Overseas Championships for Trade and Industry (OICCI), Aurangzeb said the measures had formally been adopted by the National Assembly in consultation with the standing committee and opposed claims that the powers were introduced without supervision.
He clarified that the additional FBR powers apply exclusively to cases involving over 50 million RS of 50 million in tax evasion, not at ordinary companies.
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“The new legal tools have been implemented exclusively to prevent fraudulent activity associated with VAT,” said Aurangzeb.
He announced that an important meeting with presidents of commercial chambers will be held tomorrow, where the government will explain the scope and intention of FBR’s actions to business leaders.
Increase the investor’s confidence
Aurangzeb called for stronger cooperation between local and foreign investors and said such cooperation is critical for increasing economic recovery and long -term stability.
He said the government had paid $ 2.3 billion in surplus to multinational businesses, a step aimed at strengthening investor confidence in the midst of ongoing fiscal reforms.
He added that reimbursement questions facing multinational companies would be resolved soon as part of a broader effort to improve Pakistan’s business environment.
In an attempt to elaborate on the commitment, the senior management of the overseas investor chamber for trade and industry (OICCI) has been invited to Islamabad for a meeting with Prime Minister Shehbaz Sharif.
Aurangzeb also said that transfer quantities were commendable and that macroeconomic indicators are expected to show further improvement in the coming days.
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The Finance Minister said the government had paid RS75 billion in VAT tax this month and encouraged participation in the private sector of state -owned companies (SOEs) facing financial losses.
Aurangzeb said ECC closely monitored food prices monthly and noted that no irregularities had been observed in the prices of maize, rice and impulses.
In a comment on the financial sector, the Minister noted that Pakistan’s banking sector consistently supports the national economy, especially in the wake of recent liquidity and lending changes.
He cited a new study by OICCI, which he said reflects renewed investor confidence and signs of financial stability.
Aurangzeb said Pakistan’s banking sector should now increase loans to the private sector as the country is moving towards sustainable economic development.
The Minister of Finance confirmed that he had held a meeting earlier in the day with the governor of the State Bank and presidents of business banks to discuss the developing role of the financial sector.
He said that Pakistan’s economic prospects have improved, which led to an increase in banking clicking, which should now be aimed at increasing private sector’s credit, especially for SMEs and agriculture.
Aurangzeb added that the Privatization Commission has been handed over 24 state -owned companies (SOEs), signaling a new push for the disposal of loss of loss -making public sector, including Pakistan International Airlines (PIA).
“Banks have a critical role to play, especially in privatization initiatives like Pia,” the minister said, suggesting that financial institutions are working with sponsors to revive distressed industries.
He called for joint efforts between public and private sectors to rehabilitate under -priesting state institutions that frame it as important for long -term structural stability
