Mohsin Siddiqui (Chief Reporter)
Finance Ministry is poised to disclose a comprehensive list of banks involved in illicit activities related to Letters of Credit (LCs) and speculation in the foreign currency market. This revelation is set to be shared with the Special Investment Facilitation Council, marking a pivotal moment in addressing financial irregularities.
The Secretary of Finance and the Governor of the State Bank of Pakistan (SBP) will provide detailed insights to the Council. The agenda includes discussions on expenditure sharing, excluding provincial development projects from federal PSDP projects. Additionally, recommendations on co-financing for various initiatives, such as BISP and agriculture tubewells, will be addressed. A key point of discussion will be the update on the outstanding arrears amounting to Rs 45.6 billion for the agriculture tubewells subsidy in Balochistan.
Furthermore, the Finance Ministry and SBP will present plans to curb dollar volatility and remove impediments hindering progress. The topics encompass settlements in PKR for imports and exports, settlement in RMB, transactions through the Asian Clearing Union (ACU), cash over counter facility, transit through Iran/Afghanistan, and issues related to banking clearance. The Council will also be briefed on measures to monitor banking transactions and discourage the hoarding of USD, along with the operationalization of a barter trade mechanism.
Other critical discussions include recommendations to reduce the escalating circular debt in the power sector, considering IMF conditionalities. Updates on negotiations with M/s Etisalat and initiatives like digital payment solutions, the launch of PayPal and Stripe to support foreign currency remittances, and progress on MoUs/agreements with the United Arab Emirates will also be covered.
The Chairman of the Federal Board of Revenue (FBR) will contribute insights into FBR reforms, outlining an agenda, targets, and a roadmap. Key milestones include the addition of 1.5 million new taxpayers (excluding nil taxpayers), increasing the number of taxpayers earning above Rs 5 million, linking 12,000 new retailers with the Point of Sale (PoS) system, and generating an additional Rs 100 billion in revenue from specific sectors.
Lastly, the Ministry of Industries and Production will present information on various topics, including PSM land, mobile manufacturing, automobile re-export, and the approval timeline for an effective policy on local deletion of mobile phones. Additionally, updates on the issuance of licenses to Motors Premier Ltd (Volkswagen) and NOCs to Lucky Cement, Flying Cement, and Sinotech Solar will be discussed, providing a comprehensive overview of economic reforms and developments
