ISLAMABAD: With the collaborative efforts, particularly with the Special Investment Facilitation Council (SIFC), the Federal Board of Revenue (FBR) has collected Rs 6.710 trillion during July-March (2023-24) against the assigned target of Rs 6.707 trillion, reflecting an increase of Rs 3 billion.
The government is likely to achieve its Rs 9.415 trillion revenue collection target for 2023-24, an increase of Rs 2.219 trillion or 30 percent from Rs 7.2 trillion collected in 2022-23. This notable success is credited to collaborative efforts, particularly with the SIFC, which has played a pivotal role in facilitating investments and refining tax collection processes.
Despite facing challenges, including legal obstacles impeding the implementation of the FBR’s restructuring plan aimed at boosting the tax-to-GDP ratio to 15 percent, proactive measures are underway to expand the tax base and ensure efficient revenue collection.
SIFC gives go-ahead to FBR reforms
Overcoming these hurdles is essential for meeting the government’s fiscal needs, underscoring the importance of optimising revenue collection strategies.
The SIFC’s dedication to attracting and facilitating investments and streamlining business procedures has significantly enhanced the investment and business landscape in the country. Through collaborative policy-level initiatives with federal and provincial stakeholders, the SIFC strives to enhance the ease of doing business and reduce operational costs. With the government’s focus on improving macroeconomic indicators and implementing investor-friendly policies, investor confidence in Pakistan’s economy continues to grow.
In related developments, Europe has given the green light to the Vocational Talent Boost programme proposed under Pakistan-Finland Cooperation, recognising SIFC’s efforts to bolster human resource export to new Countries of Destinations (CoDs).
This €1.5 million initiative aims to promote vocational training in critical sectors such as hospitality, construction, and healthcare.
Through collaboration with Finland’s Turku Vocational Institute (TAI) and NUTECH Pakistan via the SIFC, the project will prepare a skilled workforce aligned with EU standards, contributing to increased remittances and economic growth. The first batch of trainees is slated to relocate to Finland by October 2025, enhancing employability both in domestic sectors and abroad and average earnings and fostering socio-economic prosperity and remittances.
On the macroeconomic front, the government has approved the commencement of work on an 80km pipeline from Gwadar to a point where it will get connected with the pipeline in Iranian territory, ahead of the Iranian President Ebrahim Raisi visit who is expected to visit Pakistan on April 22.
Pakistan’s energy crisis and depleting gas reserves have led to a significant increase in gas tariffs. Timely completion of the IP project will address Pakistan’s energy security and pave the way for a reduction in domestic gas tariffs.
Furthermore, initiating work on the project demonstrates Pakistan’s commitment to completion and serves to avert an $18 billion penalty imposed by Iran due to non-completion.
Copyright Business Recorder, 2024