WB report highly misinterpreted

Our Correspondent

ISLAMABAD:  Finance Minister Senator Mohammad Ishaq Dar yesterday chaired a meeting at the Ministry of Finance to review matters pertaining to the Federal Board of Revenue (FBR) and the Finance Division.

The acting Finance Secretary briefed the minister on the progress of the various ongoing initiatives and efforts to make sure that the strong fiscal performance of first quarter was maintained during the second quarter and beyond.

The Finance Secretary also briefed the minister on the estimates of gross external financing needs during the current fiscal year. He said a recently published World Bank Report had erroneously indicated Pakistan's gross external financing needs at US$ 31 billion for the current fiscal year. The report was based on misinterpretation of standard definition of the gross financing needs of the country. Based on the international reporting standards, Pakistan's actual gross financing need for FY 2017-18 was estimated at $18 billion (5.3% of GDP) rather than $31 billion (9% of GDP). The matter had been taken up with the World Bank to rectify the error.

The minister directed the Finance Division to proactively work with the World Bank to ensure correct reporting of economic data. He also directed to ensure timely and effective implementation of the various ongoing initiatives of the ministry.

The FBR Chairman briefed Ishaq Dar on the progress in taxpayer's outreach program launched by the Bureau for broadening the tax base.

FBR were holding workshops on e-filing of returns for members of tax bars, professional bodies and chambers of commerce and industry. Large corporate employers had been approached for ensuring filing of returns by all employees receiving taxable salary, he added.

FBR's efforts were yielding results as up to October 13, more than 352,000 returns had been received as against 162,000 up to the same date last year, he added.

The minister was further informed that specialized Broadening of Tax Base (BTB) zones would become fully operational wef. November 1st, this year.

Ishaq Dar expressed his satisfaction on the progress made by the FBR and stated that the last date for filing of returns was extended to October 31 on the genuine demand of tax professionals and trade organizations.