F.P. Report
ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has declared that the inflows of the remittances from expatriates are expected to hit an all-time high of $35 billion in the currency fiscal year.
Talking to mediamen at Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi on Saturday, Aurangzeb said state-owned units are costing the government a loss of Rs2.2 billion per day. “We have sustained losses to the tune of Rs6 trillion in the last 10 years, which comes to around 50% of the revenue collection target set at Rs12.9 trillion for FY25,” he added.
The minister said that the government wants to arrest these losses through privatisation. “Privatisation, liberalisation and deregulation are the way forward,” he remarked.
He shared that foreign companies operating in Pakistan have sent profit and dividends worth $2.2 billion in May-June 2024, clearing the entire backlog of the repatriation to date. “Now there is no restriction on sending the repatriation from the Ministry of Finance and State Bank of Pakistan (SBP). This is now up to commercial banks to facilitate the foreign companies in continuing to send profit and dividends without any delay,” he maintained.
Responding to a question, Aurangzeb said the rupee-dollar parity depends on the demand and supply of the greenback in the market, while market forces are determining the exchange rate instead of the government. He said the government has prioritized inviting foreign direct investment in export-led projects and increasing exports to achieve sustainable economic growth.
The minister said “Whenever our economy hit 4% growth rate, the issues of widening current account deficit (CAD) and balance of payment arise, as we are running an import-led economy,” he said.
Earlier, Aurangzeb said that all issues being faced by business community will be resolved on priority basis. Addressing a function organized by Overseas Investors Chambers of Commerce and Industry (OICCI) he said that the government adopted comprehensive policies to promote investment and trade in the region.
He said that investors achieve profit through macroeconomic stability. He assured the participants of the meeting that all issues of businessmen and private sector will be solved,
Aurangzeb said that national kitty suffered a loss of Rs190 billion due to sit-ins and protests on daily basis, so they should avoid such things.
Aurangzeb said political stability is inevitable for achieving economic stability and they will curb tax evasion through digitalization.
OICCI seeks reclassification of POL products
A delegation of Overseas Investors Chamber of Commerce & Industry (OICCI) held a detailed meeting with Aurangzeb, during which overseas investors sought explanation from the finance minister about refinery policy and asked important questions.
They informed the minister that due to non-implementation on refinery policy investment of $6 billion was at the stake.
They urged the federal finance minister to immediately declassify petroleum products. They also expressed their serious concerns over imposition of 10 percent super tax. Overseas investors said that after reversal of section 153-S, production expenditure also enhanced which brought financial difficulties for investors.
They said that incumbent government planning to convert all Independent Power Producers (IPPs) on electricity instead of natural gas from 2025 but failed to give any plan in this regard.
They said that comprehensive plan should be adopted for conversion of IPPs from natural gas to electricity.
Overseas investors said that after levy of Alternate Dispute Resolution (ADR) tax banking sector facing financial issues.
Imported cargo bearing burden of $4.5 billion due to rules of OGRA regarding high-speed-diesel (HSD).
They said that after excluding pharma sector from zero rebated category, prices of medicines increasing day by day.
