ISLAMABAD: Finance Minister, Senator Mohammad Ishaq Dar, chaired a meeting at the Ministry of Finance on Sunday to review matters related to the Federal Board of Revenue (FBR) and the Finance Division. The Chairman FBR and senior officials of the Ministry of Finance and FBR participated in the meeting.
Acting Finance Secretary briefed the Finance Minister on the progress of various ongoing initiatives of the Ministry of Finance. He said that efforts were on to make sure that the strong fiscal performance of first quarter is maintained during the second quarter and beyond. Acting Finance Secretary also briefed the Minister on the estimates of gross external financing needs during the current fiscal year. He said that a recently published World Bank Report had erroneously indicated Pakistan’s gross external financing needs at $31billion for the current fiscal year. He said that the Report is based on misinterpretation of standard definition of the gross financing needs of the country.
Based on the international reporting standards, Pakistan’s actual gross financing need for FY2017-18 is estimated at$18billion (5.3% of GDP) rather than $31billion (9% of GDP). He informed the Minister that the matter has been taken up with the World Bank to rectify the error. The Minister was informed that external inflows are expected to be sufficient to meet repayment obligations.
Acting Finance Secretary said that, in the first two months of current financial year, exports and remittances have improved and imports have slowed down. The Finance Minister directed the Finance Division to proactively work with the World Bank to ensure correct reporting of economic data. He also asked to ensure timely and effective implementation of the various ongoing initiatives of the Ministry.
The Chairman FBR briefed the Finance Minister regarding progress in taxpayer’s outreach programme launched by the FBR on the instructions of FM for broadening of tax base. He informed the minister that senior officers of the FBR are holding workshops on e-filing of returns for members of tax bars, professional bodies and chambers of commerce and industry. Large corporate employers have been approached for ensuring filing of returns by all employees receiving taxable salary. Help desks have been established in tax offices throughout the country and FBR’s helpline and website have been revamped to facilitate return filing.
The Chairman FBR informed the Finance Minister that efforts in this direction are yielding results and up to 13th October, more than 352,000 returns have been received as against 162,000 returns received up to the same date last year. The Minister was further informed that specialized Broadening of Tax Base (BTB) zones will become fully operational w.e.f 1st of November 2017. The Finance Minister expressed his satisfaction over the progress made by FBR and stated that the last date for filing of returns was extended to 31st of October, based on the genuine demands from tax professionals and trade organizations. He said that given this facilitation which has been extended to trade bodies and taxpayers, the FBR should now work closely with representative bodies to ensure that returns due for the current year are filed by 31st of October 2017.
