ISLAMABAD: Federal Board of Revenue (FBR) Chairman Tariq Mahmood Pasha said that the board achieved the targets up to Rs 3,368 billion during the last fiscal year and also achieved its first quarter targets for the year 2017-18.
Briefing the National Assembly Standing Committee on Finance, Revenue here, Pasha said that the FBR had already taken action in matter pertaining to legal/illegal transfer of money in real estate sector of the United Arab Emirates by Pakistanis and sent a letter to the department concerned in Dubai for investigating into the matter. He added that a model agreement in this regard was under process, which would be signed shortly.
Pasha admitted that anomalies in certain areas existed and assured the committee that necessary action would be taken in next two or three weeks to rectify these anomalies with the consultation of stakeholders.
It was also pointed out by the real estate stakeholders that those investors, who used banking channels for real estate transactions up to full market value of property were facing harassment from various government departments.
However, the chairman stated that such harassment, if any, will not be allowed in real estate transaction for the better interest of the investors. The committee recommended that upper limit should be removed, which was imposed in Income Tax Act, 2016 (Section 236-W). The Committee appreciated the role of Chairman FBR in this regard. The acting chairman SECP briefed the committee about the current situation in stock market. He said being a regulator SECP was closely watching the situation in market by protecting the investors.
NA committee met here with Qaiser Ahmad Sheikh in the chair and discussed the matter pertaining to legal / illegal transfer of investment in real estate sector of United Arab Emirates (UAE) by the Pakistanis. A member of the committee reiterated that $8 billion has been transferred in UAE by the Pakistani residents or overseas Pakistanis. The committee decided to constitute a 3-members sub-committee under the convenership of Dr. Shezra Mansab Ali Khan Kharral, MNA, to look into the said issue.
While considering the matter regarding the issues being faced by real estate sector, it was pointed out by the chairman, ABAD and President Pakistan Real Investment Forum (PREIF) that certain anomalies have existed in the valuation of immovable property in various areas of Pakistan. They were of the view that said anomalies were hindering genuine real estate transactions.
The deputy governor State Bank of Pakistan briefed the Committee about the process of LC between Pakistan and Iran. He said that cabinet has already approved the matter, however, the delay was at the part of Government of Iran. The Committee directed to expedite the matter for the better interest of the country. The deputy governor SBP assured that it would be decided on priority basis.
The president, NBP informed the Committee about the financial impact, workout by the Actuaries of Pension Scheme up till 31st December, 2016, which was Rs. 47.7 billion including in service beneficiaries as well as retired employees of the Bank. He further informed that impact of the court decision will also have adverse effect on the foreign operation of the Bank. He added the Bank was also planning for opening a branch in China and for this purpose Bank should be equivalent to $ 5 billion (PKR 1.6 trillion).
However, the revised ratio will not be able to meet the stated minimum leverage ratio and CAR requirements. He also informed the committee that bank has decided to file review petition in this regard. The committee members have shown their concerns on the policies of the NBP, however, appreciated the role of present management for putting their efforts to make the things on right directions.
