ISLAMABAD: Federal Minister for Finance and Revenue, Muhammad Aurangzeb has commended Sialkot’s remarkable industrial achievements and reaffirmed the Government’s steadfast commitment to supporting small and Medium Entrepreneurs (SMEs).
The minister acknowledged the necessity of making difficult decisions to stabilize the economy, recognizing their impact on businesses and individuals, said a press release issued here.
Federal Minister for Finance and Revenue, Muhammad Aurangzeb, Federal Minister for Defense, Khawaja Muhammad Asif and Federal Minister of Commerce, Jam Kamal Khan visited Sialkot Chamber of Commerce and Industry (SCCI) for an interactive session with the business community of the city.
The finance minister emphasized the critical importance of enhancing Pakistan’s tax-to-GDP ratio from the current 10.3% to an optimal 13-14% in alignment with acceptable benchmarks.
He also highlighted the Federal Government’s commitment to make structural reforms to ensure that Pakistan can be put on the path of sustainable economic growth avoiding any balance of payment crisis.
He said that in pursuit of the same, the Government had to take tough decisions to bring the country out of the woods.
Aurangzeb was of the view that the benefits of a robust and stable economy would be reaped by all sectors of Economy including the commoners.
He elaborated on ongoing reforms within the FBR, including the integration of FBR and NADRA data to minimize discrepancies in business audits by the tax authority.
He assured the business community that FBR would turn into a business-friendly organization but also said that no sector would be allowed to enjoy any exemptions in terms of tax practice.
Aurangzeb gave a patient hearing to the representations made by the President Chamber on the issue of Final Tax Regime and shared that all the proposals would be considered at length, and decisions would be taken in the best interest of the SMEs and the Exports.
He directed the Sialkot Chamber to start preparation of Budget Proposals for next Financial Year sharing his commitment to deliberate on all pitches made in the best interest of the Export Sector of Pakistan.
He said that the Finance Ministry, instead of meeting business representatives in Islamabad, would be visiting all trade bodies across Pakistan to gather sector specific budget proposals.
The delegation of Government stalwarts was warmly received by Ikram Ul Haq, President of SCCI, accompanied by prominent members of Sialkot Chamber.
In an engaging session, Ikram Ul Haq expressed profound gratitude to the Government of Pakistan for its prudent decision to reduce the policy rate, a move reflective of the visionary leadership of Prime Minister Muhammad Shehbaz Sharif.
He acknowledged that the Government’s progressive policies were paving way for economic revival.
Addressing on the occasion, the president SCCI lauded Khawaja Muhammad Asif for his instrumental role in facilitating this important dialogue by bringing two federal ministers to Sialkot, underscoring the Government’s commitment to addressing challenges faced by the SME sector.
Highlighting critical concerns, Ikram Ul Haq urged the Government to allocate a permanent membership of Sialkot Chamber on the Export Development Fund (EDF) Board, establish a Ministry of Foreign Affairs (MOFA) desk at the Business Facilitation Center (BFC) Sialkot as per the Prime Minister’s directive dated January 16, 2024, and eliminate the Infrastructure Development Cess levied in Khyber Pakhtunkhwa, Sindh, and Balochistan.
He emphasized the necessity of reinstating Regionally Competitive Energy Tariffs and advocated for the reintroduction of the Fixed Tax Regime (FTR).
He articulated that an abrupt shift to NTR would impose an unsustainable tax burden on SMEs, thereby stifling their growth.
The SCCI president proposed devising tax rates aligned with national targets while safeguarding industries from inequitable practices by the Federal Board of Revenue (FBR).
Khawaja Muhammad Asif acknowledged the positive trajectory of the economy and reiterated the Government’s unwavering resolve to support the business community. He assured that all pertinent issues raised during the session would be addressed diligently.
He shared that he had been working tirelessly to facilitate various initiatives for infrastructure and economic development of Sialkot.
Khawaja Asif announced that soon Air Sial would be allowed to initiate its operations in United Arab Emirates.
Jam Kamal Khan revealed that a summary recommending a permanent seat for SCCI on the EDF Board had been submitted to the prime minister for approval.
He affirmed the Government’s readiness to consider Sialkot’s proposals earnestly.
On the occasion the commerce minister announced the establishment of an Expo Center in Sialkot.
He directed preparation of a comprehensive feasibility report for the Expo Center, including the identification of suitable land in collaboration with the TDAP Office Sialkot.
He also extended an invitation to SCCI to form a delegation for further deliberations in Islamabad.
President SCCI Ikram ul Haq expressed his profound gratitude to the Federal Ministers for visiting Sialkot and their commitment to work with Sialkot Chamber on the resolution of issues highlighted at the forum.
He said that the business community stood united on the stance that the Federal Government should reconsider its decision of withdrawal of FTR.
He thanked the Federal Minister for Finance for his kind assurances on exploring a permanent and amicable solution to the issue of Final Tax Regime.
Ikram ul Haq said that he would soon lead a delegation under the patronage of Federal Minister for Defence Khawaja Muhammad Asif to meet the finance minister in person to settle the matter to protect the interests of export sector.
