KARACHI: Minister for Finance and Revenue Miftah Ismail said that macro-economic stability will come along with International Monetary Fund (IMF) programme resuming, which is expected to be finalised by end of August as all conditionalities have been met. During a meeting with leadership of Pakistan Stock Exchange (PSX), finance minister said that balance of payments position is now well under control. With increased hydel power, lower energy demand and lower oil prices, “Pakistan can even have a balance of payments surplus in coming months”. Miftah, while commenting on tax measures said that fiscal discipline will be strictly followed and all additional expenditures will be fully funded by tax measures. “Ten percent Super Tax has been imposed for one year only while alternative revenue streams are developed,” he said, adding “alternate dispute resolution (ADR) linked tax on banks will not be imposed retrospectively and tax revenues from retail sector are expected to be significantly more as compared to last year.”

According to a statement issued by stock market, participants of meeting held discussion on proposals presented by PSX to finance minister for sustainable development of capital markets.

During meeting, with respect to capital markets, it was discussed that urgent actions be taken to mitigate impact of macro developments for sustained and secular growth of capital markets.

In terms of taxation, participants of meeting pointed out that even though stock market is undoubtedly one of most documented sectors of economy, however, income of listed companies is subject to double tax, at company level and later on dividends distribution level as well, whereas unincorporated businesses are subject to substantially lower taxes.

Published in The Daily National Courier, August, 10 2022

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