Mohsin Siddiqui (Chief Reporter)
The tax base and facilitating digitization, the federal government has directed all provincial governments to submit complete tax data to the National Database and Registration Authority (NADRA). This directive was issued during a high-level meeting chaired by Prime Minister Shahbaz Sharif, where several critical issues were discussed, including the future of Pakistan Steel Mills (PSM).
The central government’s directive for provinces to share their tax data with NADRA is a significant step towards improving tax collection and expanding the tax base. By digitizing tax information, the government aims to enhance transparency, efficiency, and compliance in tax administration. This initiative is expected to streamline the tax system, making it easier for authorities to track and collect taxes more effectively.
During the meeting, the future of Pakistan Steel Mills (PSM) was a major topic of discussion. The following key decisions were made:
Scrapping Loss-Bearing Steel Mill: The existing loss-incurring operations of PSM will be terminated.
Usage of PSM Land: The Government of Sindh has been asked to allow the usage of PSM land for general industrial purposes. This move is expected to repurpose the land for more productive uses.
Land Mutation: The Government of Sindh is tasked with ensuring the mutation of the remaining un-mutated land (1683 acres) in the name of PSM.
Clearing Encroached Land: The Ministry of Industries and Production (MoI&P) will ensure the clearance of encroached PSM land and regain possession.
A committee will be formed to oversee these matters, and the MoI&P is to present a comprehensive plan. This plan will include the establishment of an Export Processing Zone (EPZ) or Special Economic Zone (SEZ) on the entire PSM land, allocation of land for a new steel mill in conjunction with the Government of Sindh, and a way forward on already alienated PSM land.
The meeting also saw the Ministry of Railways accepting a proposal from the Government of Sindh for an equity partnership. To facilitate this, a Special Purpose Vehicle (SPV) will be established. This partnership is expected to boost collaboration and investment in railway infrastructure, enhancing connectivity and transportation efficiency.
Regarding the investment in Port Qasim dredging, the Ministry of Maritime Affairs (MoMA) recommended a self-dredging approach. The Finance Division has agreed to allow the Port Qasim Authority (PQA) to purchase foreign exchange from the market in installments to finance this project. The meeting approved the PQA dredging project on a self-finance basis, with a Project Director to be appointed through a competitive process by June 30, 2024, and a dredging company to be hired through competitive bidding by August 20, 2024.
Illegal fish trawling in the coastal areas of Balochistan and Sindh was another critical issue discussed. The meeting decided that the Ministry of Defence will take the lead in curbing illegal trawling, collaborating with stakeholders including the Ministry of Maritime Affairs, the Ministry of Interior, and the governments of Sindh and Balochistan. A milestone-based plan will be presented at the next Executive Committee of the Special Investment Facilitation Council (SIFC) to provide a permanent solution to this issue. Both provincial governments have been directed to ensure the installation of a vessel management system for effective surveillance and monitoring.
Provinces have also been directed to develop effective mechanisms for ensuring desired wheat production and establishing optimal storage facilities. A milestone-based plan will be provided to the upcoming Executive Committee of the Economic Coordination Committee (ECC) for effective surveillance and monitoring. The government plans to approach the World Bank and the Asian Development Bank for the development of storage facilities, exploring options for outsourcing, private sector investment, and long-term leasing.
