Celebrating Gwadar Port's Export-Friendly Policies: No Tax Burden on Exports
The Senate Finance Committee convened on Tuesday to address key matters related to Gwadar port and tax exemptions. Chairman Senator Farooq H. Naek led the proceedings, focusing on tax implications, the establishment of efficient trade channels, and Gwadar port's connection to Gulf nations.
The Senate Finance Committee convened on Tuesday to address key matters related to Gwadar port and tax exemptions. Chairman Senator Farooq H. Naek led the proceedings, focusing on tax implications, the establishment of efficient trade channels, and Gwadar port's connection to Gulf nations.
Javed Ghani, Chairman of the Federal Board of Revenue (FBR), provided valuable insights. He clarified that exports from Gwadar incur no taxes, with only a nominal one percent income tax aimed at fostering regional development. The committee was pleased to learn that Gwadar's Free Zone initiative supports export growth, while no customs duties hinder the export process.
Shifting the discussion to complaints lodged against Silk Bank branches in Islamabad, State Bank of Pakistan (SBP) officials revealed that they had received 42 grievances throughout the year. The committee noted that unresolved issues would be escalated to the ombudsman.
Chairman Naek requested that the SBP share comprehensive information with the committee, urging transparency and accountability. Senators Anwar-ul-Haq Kakar, Musaddiq Masood Malik, and Zeeshan Khanzada voiced concerns about the bank complaints. Chairman Naek encouraged the SBP to provide written responses for a more in-depth committee review.
Senator Musaddiq emphasized the importance of district-wise data on bank credit and deposits, a request that would be addressed in the next meeting.
In response to Senator Anwar-ul-Haq Kakar's inquiry, the committee learned that border markets had been established in Balochistan to combat smuggling and bolster local employment opportunities. This approach, inspired by other nations, acknowledges resource constraints but aims to minimize illicit trade.
However, Chairman Naek and Senator Mussaddiq expressed reservations, fearing that border markets might inadvertently encourage black-market activities and smuggling.
In conclusion, the Senate Finance Committee explored various facets of taxation, trade, and banking, striving to strike a balance between promoting economic growth and addressing concerns related to these critical issues.