Latest news with #SAPM
Express Tribune
3 hours ago
- Business
- Express Tribune
Govt body proposes credit scheme for sick industries
Govt had set a budget of Rs10 billion for the current financial year to meet the demand of Petroleum Division for the provision of subsidy to the export-oriented industries. photo: file Listen to article A sub-body has proposed reviving the linked credit scheme for the restoration of sick industrial units and easing access to credit under the Pakistan Industrial Policy. The committee also proposed revival-linked credit schemes by introducing a sales tax duty-linked loan scheme and treating fresh lending for revival as a priority. A high-level meeting of the sub-committees on the restoration of sick industrial units and ease of access to credit was held on Friday under the chairmanship of Special Assistant to the Prime Minister (SAPM) Haroon Akhtar Khan. The SAPM emphasised that any industry failing to repay loans, closed for more than 12 months, inactive, or operating at less than 30% of its capacity is considered a sick unit. The committee proposed that the SBP should issue an easy framework for the revival of sick industrial units. This framework would include principal haircut options, tenor extension options, adjustments in interest rates, and easier access to fresh working capital. Additionally, banks would be given incentives and protection from audits for voluntarily participating in the restoration of sick units. The committee also recommended establishing an Industrial Revival Commission to classify sick industrial units, create tailored recovery plans, and ensure coordination for financial and regulatory support.
Express Tribune
a day ago
- Business
- Express Tribune
Panel proposes corporate tax cut, refund in 72 hours
At high tax rates, profit margins for sellers decrease, leaving them with options to pass on the burden to consumers, compromise on the quality of products, evade taxes or find cheaper illicit goods. photo: file Listen to article The Industrial Policy Committees have proposed cutting the corporate tax rate and introducing a 72-hour sales tax refund system. In a high-level meeting held under Pakistan's Industrial Policy framework, the sub-committees on tax rationalisation and export enhancement recommended reforms to attract investment and strengthen exports. The meeting was chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, and attended by the PM's Coordinator Rana Ehsan Afzal, Federal Board of Revenue (FBR) officials, and other key stakeholders. One of the main recommendations was to gradually reduce the corporate income tax rate from 29% to 26% over three years. Akhtar Khan noted that Pakistan's corporate tax remains higher than many regional peers, like Vietnam, where it is capped at 17%. He said lowering taxes would improve business outcomes and fuel economic growth. Another major proposal was to rationalise the super tax regime. The committees suggested applying the super tax only on additional income rather than total profits. They proposed reducing the rate to 5% over five years, with possible elimination in the sixth year — conditional on a positive primary fiscal balance. To boost exports, the committees supported introducing a new Drawback of Local Taxes and Levies (DLTL) scheme. They also backed timely disbursement of sales and income tax refunds, with a proposal for issuing refunds within 72 hours through a dedicated monitoring system. They further recommended removing cross-subsidies in industrial power tariffs and eliminating advance taxes on exporters. The committees reviewed financial support options for exporters. Suggestions included simplifying banking procedures and offering export financing at rates 500 basis points below the current policy rate. Addressing participants, the SAPM reaffirmed the government's commitment to making exports a national priority. He conveyed Prime Minister Shehbaz Sharif's directive to place export-led growth at the core of economic policy. Akhtar Khan acknowledged exporters' challenges, including high interest rates, costly utilities, and heavy taxes. He said strong incentives and sound policies can help local industries compete globally and ensure sustainable progress.
Business Recorder
a day ago
- Business
- Business Recorder
Dar reviews energy sector's issues
ISLAMABAD: Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar, chaired a meeting to review challenges facing Pakistan's energy sector. Discussions focused on key issues affecting the financial sustainability and long-term stability of the sector, including energy consumption patterns, pricing mechanisms, subsidy management, and the reduction of Transmission and Distribution (T&D) losses. Dar directed the relevant ministries to propose concrete, actionable measures to address these challenges, while ensuring long-term sectoral stability. The meeting was attended by the Minister for Power, Special Assistant to the Prime Minister (SAPM) Tariq Bajwa, NC on Power Reforms, NC SIFC, secretaries of finance and power, and other senior government officials. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
Industrial policy: Govt considering serious reforms: SAPM
ISLAMABAD: Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan, Thursday, while emphasising boosting investor confidence through policy reforms has said that the government was considering some serious reforms in industrial policy. While chairing a meeting of the sub-committees on Investment Protection and Repatriation Investment here, he said that sustainable economic growth is possible only through reviving investor confidence in government policies. The sub-committees put forward several key proposals, including: (i) Amendments to the Income Tax Ordinance 2001; (ii) Reforms in the Protection of Economic Reforms Act, 1992, and (iii) Revisions to the General Clauses Act, 1897. He highlighted the importance of creating a secure and attractive environment for both local and foreign investors, said a news release. 'We must provide strong legal and institutional protection to investors in order to encourage investment in Pakistan,' he said and maintained that these efforts reflect the government's continued commitment to facilitating economic growth and building investor trust through legislative and policy reforms. The meeting was attended by Prime Minister's Coordinator Rana Ehsan Afzal, representatives from various Chambers of Commerce, and other key stakeholders. The SAPM has announced that the government will ensure improved credit to the small and medium enterprises (SMEs) and distressed segment. Special amendments in various laws will be made to create a business-friendly environment and ensure the investors security as well as promoting localisation. The sick industrial units will be restored and banks will be encouraged to provide them loans. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
Dar reviews emigration, overseas employment & TVET policy
ISLAMABAD: The Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar, chaired a meeting to review Pakistan's Emigration, Overseas Employment and TVET (Technical, Vocational Education and Training) Policy. The ministry presented an overview of diaspora trends and emerging opportunities to enhance skilled labour exports globally. Dar emphasised the need to invest in quality skill development, explore new sectors and destinations, and align Pakistan's human capital with global market demands. These efforts aim to boost remittances, expand employment opportunities abroad, and enhance Pakistan's global competitiveness. Welfare of the diaspora as a policy pillar was endorsed by the committee. The meeting was attended by the ministers for Overseas Pakistani, Commerce, MoS for Health, SAPM Tariq Bajwa, federal secretaries Cabinet and HRD, and senior officials from MOFA and other relevant agencies. Copyright Business Recorder, 2025
