ISLAMABAD(National Times)- Pakistan will phase out Export Processing Zones (EPZs) and Special Economic Zones (SEZs) nationwide by 2035, under the IMF’s Extended Fund Facility conditionality, to bring all sectors under a uniform tax regime, a parliamentary committee was told on Tuesday.
The subcommittee of the Senate Standing Committee on Finance and Revenue directed the government to renegotiate with the IMF to prevent the potential closure of EPZs and SEZs, stressing the need to safeguard Pakistan’s industrial and investment interests.
Talha Mahmood convened the meeting, which was attended by Dr Afnan Ullah Khan, Bilal Khan and Jam Saifullah Khan.
The Ministry of Industries and Production briefed the committee on issues concerning EPZs and SEZs. After detailed deliberations, the convenor recommended that EPZs and SEZs should not be adversely affected and called for renegotiation of the matter with the IMF.
Senate panel warns phasing out EPZ and SEZ will hurt exports
The subcommittee also discussed difficulties being faced by exporters and businesses in banking transactions and emphasised the need for practical alternatives, including the use of insurance guarantees in place of bank guarantees or cheques, where permissible. The Federal Board of Revenue (FBR) assured the subcommittee that the matter would be examined and resolved.
The committee recommended introducing facial recognition technology to facilitate taxpayers whose fingerprints have faded or cannot be verified. FBR and NADRA were directed to coordinate and urgently resolve the issue. It was further directed that a list of FBR officials holding dual nationality and permanent foreign residency be submitted.
The committee was also briefed on the National Auto Policy, particularly measures to promote the production and use of electric vehicles (EVs). It was apprised that viability gap funding is available to support the initial establishment of 3,000 EV charging stations nationwide.
It was noted that early market closures affect businesses, particularly in the wake of power outages. The committee was informed that the current power situation was linked to disruptions in RLNG consignments and subsequent load-management measures aimed at keeping electricity prices lower.
The Securities and Exchange Commission of Pakistan (SECP) briefed the subcommittee on unauthorised and illegal share transfers and legal disputes arising from forged signatures and other unlawful practices. The committee was informed that SECP has undertaken digitalisation of the share market and is taking strict action against individuals and companies involved in illegal activities.
The committee stressed the need for FBR to strengthen its engagement with the business community by providing maximum facilitation and improving the ease of doing business.
