Prime Minister Shehbaz Sharif has directed the Privatization Ministry to present the final schedule for the implementation of the privatization of Pakistan International Airlines (PIA).
He chaired a high-level meeting in Islamabad today to discuss the privatization of PIA and the restructuring of the Federal Board of Revenue (FBR).
During the meeting, the Prime Minister stressed the importance of ensuring transparency at all stages of the National Airline’s privatization process. He made it clear that any laziness or carelessness will not be tolerated in this significant endeavor.
The progress of PIA’s privatization so far and the upcoming steps were thoroughly reviewed during the meeting.
Additionally, the Prime Minister instructed the Law Ministry to promptly provide recommendations for resolving pending cases and legal disputes related to tax collections and revenue. This step aims to remove hurdles in the disbursement of 1.7 trillion rupees to the national exchequer.
Shehbaz Sharif also directed the submission of proposals for the establishment of a legal department within the Federal Board of Revenue.
He gave in-principle approval to the proposed roadmap for the FBR automation system and emphasized the need for its swift implementation within a clear timeframe. The Prime Minister stressed the importance of setting realistic and region-leading targets for the system’s implementation speed.
Shehbaz Sharif highlighted the urgency of the situation, expressing his determination to work tirelessly round the clock to achieve these vital goals. He emphasized that the country’s bright future and economic recovery hinge on these efforts.
The meeting also delved into discussions on the automation of FBR, ensuring transparency in the system, implementing structural reforms to global standards, boosting tax collection through incentives, combating corruption and smuggling, and separating the inland revenue and customs departments.
The Prime Minister deemed the implementation of these reforms inevitable to achieve a national growth rate of six to seven percent.
Expressing a desire to modernize the tax and revenue system, Shehbaz Sharif called for the introduction of an incentive-based tax system. He urged the business community to actively participate in the country’s development and social service initiatives.
The Prime Minister emphasized the need to thoroughly scrutinize all tax exemptions and ensure an effective third-party audit system.
Shehbaz Sharif highlighted the significance of promoting the Small Medium Enterprises (SMEs) sector, which he noted was neglected for the past forty years. He emphasized that the promotion of SMEs is crucial for Pakistan’s advancement towards parity with developed countries.
During the meeting, Dr. Shamshad Akhtar provided insights, stating that Pakistan’s tax to GDP ratio stands at less than 9.5 percent, significantly lower than global standards. She highlighted that 55.6 percent of individuals do not pay any tax, while only 3.3 percent contribute to the tax revenue. Additionally, she noted that two hundred thousand individuals account for ninety percent of the tax contributions.
