Nationwide Strike Announced by Traders and Goods Transporters; Finance Minister Invites for Negotiations

Karachi:In response to the growing concerns over new tax regulations, traders and goods transporters across Pakistan have announced a nationwide strike on July 19. To address these concerns, Federal Minister for Finance, Mohammad Aurangzeb, has called for negotiations with all chambers and associations on July 15.
Speaking to the media at the Overseas Investors Chamber of Commerce in Karachi, the Finance Minister clarified that the new powers granted to the Federal Board of Revenue (FBR) are unrelated to income tax. He emphasized that the government had implemented several safeguards in the existing law, especially regarding sales tax fraud. He explained that for irregularities exceeding 50 million rupees, arrests can only be made with approval from either the Commissioner or the three-member FBR Board.
Aurangzeb further clarified that the additional powers granted to the FBR apply specifically to individuals involved in sales tax fraud exceeding 50 million rupees and have no connection with income tax. He also dismissed the ongoing propaganda against the FBR’s new powers, asserting that they were approved with the consultation of the Standing Committee and were introduced to prevent tax fraud.
The Finance Minister also noted that he had recently met with the Governor of the State Bank of Pakistan and the presidents of commercial banks to discuss the banking sector’s role in supporting sustainable growth in Pakistan. He highlighted that, given the country’s improving financial landscape, there is increased liquidity in the banking sector, which should result in more loans for the private sector, particularly for agriculture and SMEs.
On privatization, the Finance Minister announced that the Privatization Commission has been tasked with the privatization of 24 State-Owned Enterprises (SOEs), with a specific focus on Pakistan International Airlines (PIA). He urged banks to collaborate with sponsors to revitalize loss-making state-owned enterprises.
Additionally, the Finance Minister reassured the public that the recent survey by the Overseas Investors Chamber of Commerce (OICC) is a positive indicator of Pakistan’s economic stability. He also shared that $230 million in profits had been paid to multinational companies, and issues related to their refunds would be resolved soon.
On the topic of remittances, he commended the growth in Pakistan’s remittance inflow and assured that the country’s economic indicators would improve further in the coming months. The government has also refunded 75 billion rupees in sales tax this month.
In response to rising food prices, the Finance Minister highlighted that the Economic Coordination Committee (ECC) is focusing on monitoring food prices on a monthly basis, and de-regulation is essential for ensuring price stability.
Furthermore, he stated that the Prime Minister had invited the leadership of the OICC to Islamabad for a meeting, signaling the government’s commitment to addressing the concerns of the business community and ensuring a more sustainable economic future for the country.