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Tag: Prime Minister Imran Khan

  • PM announces tax incentive package for construction industry

    PM announces tax incentive package for construction industry

    ISLAMABAD: Prime Minister Imran Khan on Friday announced a comprehensive tax incentive package for construction industry and allowed opening of activities in this sector from April 14, 2020.

    According to state-run media the prime minister announced the opening of construction sector from April 14 to help the country’s daily wagers and laborers, affected by continued lockdown due to COVID-19 outbreak, to earn their livelihoods.

    Talking to media-persons, he said the government’s decision taken in coordination with the provinces, was also aimed at reviving economic activities in the country, badly hit by the situation arising out of the coronavirus outbreak.

    The prime minister also announced various incentives for the construction sector including tax incentives, waivers and subsidies in the areas of sales tax, capital gain tax, withholding tax etc.

    Giving details of the decisions, he said that those investing in the construction sector during the year 2020, would not be asked any queries about the source of their income.

    Secondly, the Prime Minister said, the government had also decided to bring the construction sector in the fixed-tax regime under which the rate of tax on land would be levied on the basis of per square yard and per foot.

    He, however, added that those investing in the prime minister’s housing programme would be given 90 percent tax rebate and they would be required to pay just 10 percent of the total calculated tax amount on their projects.

    Imran Khan said that it has also been decided to waive-off withholding in cement and steel sectors.

    Besides, he said, that in coordination with the provincial governments of Punjab, Khyber Pakhtoonkhwa and Sindh, it has also been decided to bring the sales tax in construction sector to 2 percent through consolidation of all taxes.

    The Prime Minister further said that Capital Gain Tax on the sale of house was also being done away with.

    He also announced Rs. 30 billion subsidy for Naya Pakistan Housing Programme, adding, further subsidy would be given on its progress.

    The Prime Minister said the government has also decided to give construction sector the status of industry.

    It has also been decided to establish the Construction Industry Development Board (CIDB) to help promote the construction industry in the country, he added.

    The Prime Minister said all the decisions regarding the COVID-19 were being taken in coordination with the provinces. However, he added, any of the provinces could make changes as per their requirements.

    He said since the Rs. 1200 billion’s stimulus package announced by the federal government to provide financial relief to the poor and daily-wagers in the wake of lockdown due to Coronavirus outbreak, the government had decided to open the construction sector.

    The prime minister said with the agriculture sector, which was already open, providing jobs to people in villages, the opening of construction sector, the main source of employment in urban areas, was very much needed.

  • PM Corona Relief Fund set up; source of money not to be asked

    PM Corona Relief Fund set up; source of money not to be asked

    ISLAMABAD: Prime Minister Imran Khan on Monday set up a fund to generate money for helping people affected by coronavirus lockdown.

    The fund has been set up at National Bank of Pakistan (NBP) at Karachi.

    The prime minister in his address to the nation said that authorities would not ask source of the money donated to this fund.

    Further, the money donated to this fund will also be tax exempted, he added.

    The prime minister also constituted Tiger Force to fight coronavirus. He said that the force would go to affected areas due to lockdown and would provide food and other essential items.

    The tiger force will also aware people about the coronavirus.

    Imran Khan said that aged people and weak persons were more vulnerable to this virus. However, normal persons will have no threat from this virus and they can be recovered by self-quarantine.

    He again said that Pakistan cannot afford lockdown in entire country and there is not comparison of Pakistan with other developed nations.

    The prime minister said that around 80 to 90 people of Pakistan have not sufficient food for them. Any lockdown will further aggravate situation for them, he added.

  • Prime Minister welcomes banks’ proposals for revival of sick industrial units

    Prime Minister welcomes banks’ proposals for revival of sick industrial units

    ISLAMABAD: Prime Minister Imran Khan on Tuesday welcomed proposals of banks for revival of sick industrial units.

    A delegation of prominent bankers of the country called on Prime Minister Imran Khan in Islamabad.

    Prime Minister Imran Khan welcomed the proposals of the banking community particularly those related to the revival of the sick industrial units.

    Adviser to PM on Finance Dr. Abdul Hafeez Shaikh, Adviser to PM on Institutional Reforms Dr. Ishrat Hussain, Governor State Bank of Pakistan Syed Reza Baqir and senior officials of the Government were present during the meeting.

    The bankers apprised the Prime Minister about the issues concerning banking sector in terms of financing for accelerating the economic activities aimed at wealth creation and presented various suggestions to overcome issues being encountered.

    The Prime Minister stated that the Government is working relentlessly for economic growth and sustained positive sentiments, domestically as well as externally.

    The Prime Minister highlighted human resource potential of the country with enterprising youth in majority; we need to channelize their energies through skill development thereby enabling them to contribute towards economic development.

    The Prime Minister said that the present Government is focused on reviving sick industrial units and promoting the SMEs, as they are essential for wealth creation and generation of employment opportunities.

    The Prime Minister appreciated the proposals of the delegation and assured maximum facilitation.

    The meeting was informed that Corporate Restructuring Company has been established to take over sick industrial units for the purpose of reviving the commercially or financially distressed companies thereby making them profitable with consultation of all the stakeholders.

  • Prime minister welcomes Pepsico’s investment plans

    Prime minister welcomes Pepsico’s investment plans

    ISLAMABAD: Prime Minister Imran Khan has appreciated PepsiCo proposed future investment plans in Pakistan.

    CEO Pepsi Africa, Middle East & South Asia Eugene Willemsen called on Prime Minister Imran Khan in Islamabad on Wednesday.

    Prime Minister Imran Khan appreciated the existing business venture of Pepsico as well as its proposed future investment plans in Pakistan.

    The prime minister observed that the investment friendly policies of the present Government offer immense opportunities for foreign investors to expand their business in diverse fields.

    The prime minister welcomed the commitment of Pepsico towards social development of Pakistan and said that the Government would extend all possible facilitation to the Company for expansion of its business, including in the agriculture sector.

    Prime Minister Imran Khan also discussed with the Eugene Willemsen the possibility of development of the dairy sector of Pakistan owing to huge potential of the country in the dairy sector.

    Adviser to PM Abdul Razak Dawood and Chairman BOI Syed Zubair Haider Gilani were also present during the meeting.

    Eugene Willemsen apprised the Prime Minister of Pepscico’s existing investment portfolio in Pakistan employing around 60000 individuals directly as well as indirectly, and a network of approximately 700000 retailers across the country who rely on Pepsico products to make a living.

    Willemsen informed that Pepsico is amongst the highest taxpayers in Pakistan.

    Highlighting the recent investments, including the successful inauguration of a new snacks plant in Multan, the CEO said that the Company has made investment to increase the capacity of its bottling plants and expanded its retail, distribution networks that have increased the number of jobs, generated additional economic activity and increased revenue for the Government.

    Sharing Pespsico’s commitment to the social development of Pakistan through various social projects, Willemsen expressed willingness to bring projects aimed at enhancing employment opportunities for Pakistan’s talented youth.

    Eugene Willemsen especially expressed his interest in the development of potato crop in Pakistan through efficient irrigation system, and water conservation.

    While recalling Queen Maxima of Netherlands’ visit to Pakistan last year, the CEO also highlighted the company’s efforts for women empowerment and their financial inclusion aimed at uplift of society and growth in the country.

  • Cabinet to announce major relief in prices

    Cabinet to announce major relief in prices

    ISLAMABAD: The federal cabinet in its meeting scheduled for Tuesday, February 12, 2020 will announce major relief in prices of basic food items, Prime Minister Imran Khan announced on Sunday.

    The prime minister in its tweet message said that the government would come up with various measures to reduce the prices of basic food items in the upcoming federal cabinet meeting scheduled on Tuesday.

    “I understand the difficulties ordinary people including salaried class are confronting and have decided, come what may, my government will be announcing various measures that will be taken to reduce prices of basic food items for the common man in Cabinet on Tuesday,” the prime minister tweeted.

    He said at the same time all the relevant government agencies had launched an in-depth probe into the flour and sugar price hikes.

    “The nation should rest assured that all those responsible will be held accountable and penalized,” the prime minister remarked.

  • Committee constituted to probe wheat crisis

    Committee constituted to probe wheat crisis

    KARACHI: Prime Minister Imran Khan has constituted a high-level committee to probe wheat/flour crisis and fix responsibility.

    Taking strict notice of the recent wheat/flour related controversy, Prime Minister Imran Khan has constituted a high-level committee to identify and fix responsibility, if any, on any individual/officer/organization, including any purported benefit to a private party, besides suggesting a way forward for future course of action, a statement said on Wednesday.

    The committee comprises of Director General Federal Investigation Authority, as its convener, representative of Intelligence Bureau not below BS-20/21 and Director General Anti Corruption Punjab, as its members.

    The Convener may co-opt any other member(s). According to directions issued by PM Office, the inquiry report shall, inter alia, include identification of causes; circumstances leading to the wheat/flour related controversy; assessment/projection of future stock leading to allowing export of wheat/wheat products and subsequent imposition of ban on exports; management of wheat stocks, within Federal Government and provinces, and coordination with provinces, and any other issue, deemed appropriate, related to the wheat/flour related controversy.

    The inquiry shall be completed and the report is to be submitted to the Prime Minister within a fortnight (06th February 2020).

  • PM to announce tax relief package for traders on January 20

    PM to announce tax relief package for traders on January 20

    ISLAMABAD: Prime Minister Imran Khan is set to unveil a tax relief package for traders on January 20, 2020, as confirmed by Syed Shabbar Zaidi, the chairman of the Federal Board of Revenue (FBR), on Saturday.

    (more…)
  • Law amended to stop NAB taking action against businessmen: Prime Minister

    Law amended to stop NAB taking action against businessmen: Prime Minister

    KARACHI: Prime Minister Imran Khan on Friday said that the government has amended law to restrict National Accountability Bureau (NAB) from taking action against business community.

    Addressing at a ceremony of Pakistan Stock Exchange (PSX), the prime minister said the powers of NAB had been restricted to the corruption cases of public office holders.

    He said that the business community should be free from coercive action of NAB. The other institutions like FBR and courts are there to deal with cases of business community.

    He said that business community has key role in creation of wealth. He further said that no nation can grow without wealth.

    The prime minister said that the wealth creation was only possible when business community was facilitated.

    He said that in the past there was misconception about making of profit. The prime minister said that there was difference between profiteer and profit making.

    The prime minister said that the government desired the businesses should make profit and attract more investment.

    He said that the government was making all out efforts to improve ease of doing business. He said that in the outgoing year the ease of doing business was improved by 27 points despite challenging economic situation.

  • Cabinet approves gradual reduction in regulatory duty

    Cabinet approves gradual reduction in regulatory duty

    ISLAMABAD: The Federal Cabinet has approved gradual reduction in regulatory duty and additional customs duty under first-ever National Tariff Policy (NTP).

    The federal cabinet, in its meeting chaired by the Prime Minister held on Tuesday November 19, 2019, approved the first-ever National Tariff Policy (NTP).

    The policy guidelines contained in the NTP, as approved by the Cabinet, provide that the tariff slabs will be simplified based on the principle of cascading; tariffs on raw materials, intermediate and capital goods will be gradually reduced; the additional customs duty and regulatory duties will be gradually reduced; the difference in the rates of tariff for the commercial importers and industrial users of raw materials, intermediate and capital goods will be eliminated to provide a level-playing field to the SMEs through competitive access to essential raw materials; the nascent industry will be provided time-bound protection, which will cover the payback period.

    The policy, developed by the commerce division after extensive consultations with the stakeholders, marks a milestone in the national economic policy paradigm by recognizing the importance of employing import tariffs for industrial development and export growth.

    The prime minister, in his remarks during the cabinet meeting, said that the import tariffs have been traditionally employed as a revenue generation tool, which has increased reliance on import tariffs for revenue collection. In accordance with the reform agenda of the government, the economic policy paradigm is now being realigned to leverage tariffs for industrial development.

    The National Tariff Policy aims at removing the anomalies in the tariff structure and making it a reflection of trade policy priorities and enhancement of competitiveness through duty-free access to imported raw materials and promotion of investment into efficient industries through a predictable tariff structure, decided through an institutional mechanism.

    The NTP is based on the principles of (i) employing tariffs as an instrument of trade policy rather than revenue generation, (ii) maintaining vertical consistency through cascading tariff structures (increasing tariff with stages of processing of a product), (iii) providing time-bound ‘strategic protection’ to the domestic industry during the infancy phase, and (iv) promoting competitive import substitution through time-bound protection, which will be phased out to make the industry eventually competitive for export-oriented production.

    The policy will be implemented through a Tariff Policy Board (TPB) chaired by the Commerce Minister/Advisor, with Minister for Industries & Production, Secretary Finance, Secretary Revenue, Chairman FBR, Secretary Commerce, Secretary Board of Investment, and Chairman NTC as its members.

    A Tariff Policy Centre shall be created in the Ministry of Commerce, which will serve as the Secretariat of the TPB.

    Abdul Razak Dawood, Commerce Advisor, stated that the NTP marks a watershed in the country’s economic policy making since it would energize export growth, lead to rapid industrialization, and import substitution through predictability in tariff framework.

  • Prime minister forms committee to resolve tax challenges for construction industry

    Prime minister forms committee to resolve tax challenges for construction industry

    ISLAMABAD: Prime Minister Imran Khan on Monday constituted a committee for formulation of proposals to resolve challenges of federal and provincial taxes faced by construction industry.

    The committee will be headed by Naya Pakistan Housing Authority Chairman Lt Gen (R) Anwar Ali Haider.

    The prime minister was chairing a high level meeting regarding the revival and promotion of construction sector. The meeting was briefed in detail about the challenges faced by the sector.

    According to state news media the prime minister highlighted the significance of construction sector in boosting economic activities and said the present government had given a lot of importance to the sector, which would help realize the project of five million housing units.

    The meeting was attended by Punjab Chief Minister Usman Buzdar, Khyber Pakhtunkhwa Chief Minister Mehmood Khan, Punjab Finance Minister Makhdoom Hasham Jawan Bakht, Punjab Housing Minister Mian Mehmood-ur-Rasheed, Balochistan Finance Minister Zahoor Ahmad Bulaidi, FBR Chairman Syed Shabbar Zaidi, Board of Investment Chairman Syed Zubair Haider Gilani, Planning Commission Deputy Chairman Jahanzeb Khan, Naya Pakistan Housing Authority Chairman Lt Gen (R) Anwar Ali Haider and senior federal and provincial governments’ officers.

    The prime minister said the promotion of construction sector was the government’s foremost priority, adding since around 40 industries were allied with it, the promotion of construction sector besides developing those industries would also create job opportunities for youth.

    The meeting discussed in detail various proposals regarding the provision of bank loans, uniform implementation of taxes and promotion of public-private partnerships for the construction sector.

    The prime minister was briefed about the problems faced by the builders, contractors, developers and real estate businesses, especially, the ratio of federal and provincial taxes, difficulties in the provision of capital from banks, problems regarding registration, other official procedures and corruption.

    Other members of the committee included the Federal Board of Revenue (FBR) chairman, Governor State Bank, Punjab finance minister, provincial chief secretaries and other relevant officers.

    The prime minister directed the committee to submit a strategy along with recommendations to address the problems about taxes, provision of loans from banks and other difficulties faced by the construction sector within the next 24 hours.