Govt told to renegotiate IMF terms
ISLAMABAD: Pakistan will phase out Export Processing Zones (EPZs) and Special Economic Zones (SEZs) nationwide by 2035, under the IMF’s Extended Fund Facility conditionality, to bring all sectors under a uniform tax regime, a parliamentary committee was told on Tuesday. The subcommittee of the Senate Standing Committee on Finance and Revenue directed the government to renegotiate with the IMF to…
Pakistan's government has been instructed to renegotiate the terms of its agreement with the International Monetary Fund (IMF) to prevent the potential closure of Export Processing Zones (EPZs) and Special Economic Zones (SEZs. These zones, which are set to be phased out nationwide by 2035 under IMF conditionality, aim to bring all sectors under a uniform tax regime.
The Senate Standing Committee on Finance and Revenue held a meeting to discuss this matter, with recommendations to safeguard Pakistan's industrial and investment interests. The Ministry of Industries and Production briefed the committee on EPZs and SEZs, and subsequent deliberations resulted in a call for renegotiation of terms with the IMF.
The subcommittee also addressed challenges faced by exporters and businesses in banking transactions, emphasizing practical alternatives such as insurance guarantees. The Federal Board of Revenue (FBR) assured the subcommittee that the matter would be examined and resolved, with a recommendation to introduce facial recognition technology for taxpayers with faded or unverifiable fingerprints.
The committee directed the FBR and National Automated Database and Records Agency (NADRA) to coordinate and resolve the issue, as well as submit a list of FBR officials with dual nationality and permanent foreign residency. The National Auto Policy was discussed, highlighting measures to promote electric vehicle production and usage, including viability gap funding for 3,000 EV charging stations.
The power situation and its impact on businesses, particularly during RLNG consignment disruptions and load-management measures, was also addressed. The Securities and Exchange Commission of Pakistan (SECP) briefed the committee on unauthorised share transfers and legal disputes, noting the SECP's digitalisation efforts and strict actions against illegal activities.
Lastly, the committee stressed the need for the FBR to enhance engagement with the business community, improving the ease of doing business.
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- Govt told to renegotiate IMF terms dawn.com
