Senate panel directs govt to renegotiate IMF terms for special economic zones

The Senate Standing Committee on Finance and Revenue has directed the government to renegotiate terms with the International Monetary Fund (IMF) regarding the phasing out of Export Processing Zones (EPZs) and Special Economic Zones (SEZs by 2035. This adjustment is required to align all sectors under a uniform tax regime. The subcommittee, led by Talha Mahmood, emphasized the importance of renegotiating with the IMF to safeguard Pakistan's industrial and investment interests.

The Ministry of Industries and Production briefed the committee on the implications of the EPZs and SEZs on the economy. The subcommittee discussed the challenges faced by exporters and businesses in banking transactions, advocating for practical alternatives, such as the use of insurance guarantees instead of bank guarantees or cheques.

The Federal Board of Revenue (FBR) assured the committee that the issue would be resolved. The committee also recommended the implementation of facial recognition technology to help taxpayers with fading or unverifiable fingerprints. It directed the National Automated Data Retrieval Agency (NADRA) and FBR to coordinate urgently to resolve the issue.

The committee reviewed the National Auto Policy and its measures to promote electric vehicles (EVs), noting that feasibility gap funding is available for the establishment of 3,000 EV charging stations nationwide. The Federal Board of Revenue (FBR) was directed to submit a list of officials with dual nationality and permanent foreign residency.

The Securities and Exchange Commission of Pakistan (SECP) briefed the committee on unauthorised share transfers and illegal practices, highlighting the ongoing digitalization of the share market and stringent actions against violators. The committee stressed the need for the FBR to enhance its cooperation with the business community, focusing on facilitating businesses and improving the ease of doing business.