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PM DIRECTS FOOLPROOF SECURITY FOR REKO DIQ PROJECT WORKERS, LOGISTICS
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Monday, 25 March, 2024 I 14 Ramazan, 1445
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ORDERS FORMULATION OF FEASIBILITY FOR A RAIL AND ROAD NETWORK FROM REKO DIQ TO GWADAR PORT
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PRESIDENT BARRICK GOLD CORPORATION SAYS PROJECT TO CHANGE FATE OF BALUCHISTAN BY REVOLUTIONIZING LOCAL ECONOMY
Shehbaz for prioritizing TB elimination in global health agenda ISLAMABAD
STAFF REPORT
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LAHORE STAFF REPORT
RIME Minister Shehbaz Sharif Sunday directed that security should be ensured for those working on the Reko Diq mining project and for the logistics and transport from Reko Diq to the Gwadar seaport. Prime Minister Shehbaz Sharif was chairing an important meeting regarding the Reko Diq mining project. A delegation of Barrick Gold company led by its Chief Executive Officer Mark Bristow took part in the meeting through video link. The PM said consultations should be held with all stakeholders regarding the project at the official level and all the obstacles should be removed. Minister for Finance and Revenue Muhammad Aurangzeb, Minister for Petroleum Musadiq Malik, Deputy Chairman Planning Commission Muhammad Jehanzeb and high-
level officials attended the meeting. PM Shehbaz said planning should be initiated for improvement in the communication infrastructure, especially railway lines for utilising the minerals of Balochistan, adding work for the upgradation of the road network to link Reko Diq project with Gwadar port by road, should be completed at the earliest. “Wherever new roads are being constructed, the pace of construction should be enhanced,” he remarked. The PM said that a strategy should be formulated for the feasibility of a rail and road network from Reko Diq to Gwadar port. He said the railway line project from Reko Diq to Gwadar would make access to the port short and easy and as compared to Bin Qasim port the distance would also be less. The new railway line would be beneficial for the mineral-rich district of Chaghi and the mining industry would expand, he added. He sought a detailed briefing next week on
Shehbaz surrenders ECC chairmanship to Aurangzeb g
DECISION TO RETAIN CHARGE OF TOP COMMITTEE BY PM FACED WIDESPREAD CRITICISM PROFIT
NEWS DESK
After criticism from different quarters, the Prime Minister has made a significant reversal by appointing Finance Minister Muhammad Aurangzeb as the Chairman of the Economic Coordination Committee (ECC). According to a notification issued by the Cabinet Division on March 23, the ECC will be comprised of the Finance Minister as its chairman, while the Minister for Economic Affairs, Minister for Commerce, Minister for Power, Minister for Petroleum, and Minister for Planning will be members of the committee. The ECC has been given powers to call secretaries from almost all ministries and departments including the Chairman of the Federal Board of Revenue and Chairman Board of Investment. Earlier, it was reported that the PM ousted Finance Minister Muhammad Aurangzeb from the chairmanship of two crucial committees, giving Foreign Minister Ishaq Dar a prominent role in financial matters. PM retained the chairmanship of the ECC instead of appointing Finance Minister Muhammad Aurangzeb as its head. However, Aurangzeb would chair ECC meetings in the absence of the prime minister. Aurangzeb was granted only chairmanship of the Cabinet Committee on State-owned Enterprises (CCoSOEs), while Dar was appointed as chairman of the Cabinet Committee on Privatisation (CCOP), a position previously held by the finance minister.
Prime Minister Shehbaz Sharif has called for collective efforts to strengthen the healthcare system and increase access to quality diagnosis and treatment. In his message on the occasion of World Tuberculosis Day, he said Tuberculosis is a significant global health challenge and awareness must be raised about its prevention and control measures. The Prime Minister said the government has implemented various programs and policies to combat this disease.
the Reko Diq road and rail connectivity project. He also instructed that all hurdles should be removed at the official level for early completion of the environment and social impact assessment regarding the Reko Diq project. During the meeting, it was told that the feasibility of the Reko Diq project would be completed by December 2024. Every month, 6000 containers would be transported from the Reko Diq project to the port. The concentrate pipeline of the project would be the second-longest slurry pipeline in the world. The mining company would construct the link road from Reko Diq to the national highway 40. The participants were informed that 58 percent work on 103-kilometer Nokandi-Mashkhel road, which would connect Reko Diq to the
He emphasized prioritizing TB elimination in global health agenda and allocating resources accordingly for a TB-free world. Shehbaz Sharif said provision of access to quality health services is the constitutional responsibility of the government and as it strives towards this end, the role of the private sector and global partners is deeply appreciable. He vowed to support initiatives for improving healthcare system in the country and urged all partners, organizations, healthcare professionals, and individuals to unite in government’s efforts to eliminate TB from Pakistan. The Prime Minister applauded the services of all those committed to fight tuberculosis.
Gwadar port, was complete. ‘Revolutionary Reqo Diq project to change fate of Balochistan’ Meanwhile, President and Chief Executive of Barrick Gold Corporation, Mark Bristow has said that the revolutionary Reko Diq project would change the fate of Baluchistan by revolutionizing the local economy. He expressed these view in an interview with a private news channel here on Sunday. Mark Bristow stated that an estimated $10 billion would be invested in Reqo Diq project during next eight to nine years, which would boost the mining industry and the local economy. The President Barrick Gold Corporation said that he underscored the company’s commitment to sustainable development, job creation and community empowerment.
FBR probes alleged Rs23bn money laundering case linked to Bahria Town g
COMPANY CLAIMS INQUIRY OVERREACHED BY DELVING INTO PRE-2017 RECORDS AGAINST AMLA RULES PROFIT
MONITORING DESK
The Federal Board of Revenue (FBR) is conducting an inquiry into Vicky Trading Pvt. Ltd., a trading company, for purported connections to Bahria Town, a prominent real estate developer, involving alleged money laundering and tax evasion amounting to Rs23 billion. Documents obtained indicate that the inquiry is active at the special court of customs, taxation, and anti-smuggling under the Anti-Money Laundering Act (AMLA) 2010, following allegations that Vicky Trading Company managed 18 different bank accounts nationwide, according to a news story, published in Dawn. The investigation initiated on July 1, 2019, was prompted by a complaint from Mohammad Ejaz, an Inspector of Intelligence and Investigation (Inland Revenue) at the FBR. The complaint alleged that the directors of Vicky Trading Company were involved in purchasing land on behalf of Bahria Town, leading to suspicious account activities indicative of money laundering and tax evasion. The inquiry revealed that between 2014 to 2018, Bahria Town transferred Rs319 billion into the accounts of Vicky Trading, raising questions about the economic rationale behind these transactions.
Despite the company’s assertion that it engages in trading and holds land for other entities, it reportedly has not purchased land in its own name using the transferred funds. The investigation also highlighted the company’s unusual operation structure, with no employees on its payroll, suggesting potential tax avoidance and the masking of financial transactions. The FBR’s preliminary findings resulted in show-cause notices to the accused under AMLA 2010, pointing to discrepancies amounting to Rs82.825 billion and a subsequent demand of
Rs23.541 billion from Vicky Trading. The company, in its defense, argued the investigation exceeded its scope by examining records before 2017, despite AMLA stipulations, and claimed harassment. The trial involves Waqas Riffat, Waseem Riffat, Bilal Bashir, and Mohammad Awais, directors of Vicky Trading Company, presided over by Special Judge Syed Irfan Haider. However, proceedings are advancing slowly, with notices issued to the accused but no significant progress reported.
IMF urges FBR to overhaul tax incentive framework PROFIT
NEWS DESK
The International Monetary Fund (IMF) has issued recommendations to the Federal Board of Revenue (FBR) to conduct an in-depth evaluation of its current tax incentive regimes. The goal is to identify and eliminate redundant or unnecessary incentives while suggesting the adoption of more efficient tax measures, such as accelerated depreciation for necessary incentives. This advice aims to simplify the tax system, broaden the tax base, and lower overall tax rates. According to reports from Business Recorder, the IMF highlighted the recent amendments in the Income Tax Ordinance (ITO), which, despite removing certain tax incentives, introduced new ones. Notably, the Finance Act, 2023, introduced Section 44A in the ITO, offering tax exemptions and concessionary treatments for incomes derived from qualified investments under the Foreign Investment (Promotion and Protection) Act, 2022. This includes income for investors, shareholders, their associates, and specified companies, along with third-party lenders. Furthermore, the IMF suggests reevaluating the current classical system of taxation, which taxes corporate profits and dividend distributions, thereby resulting in the double taxation of corporate income. Alternative tax systems, such as a one-tier corporate tax system or an imputation system, could mitigate these inefficiencies and make investments more appealing.
Pakistani delegation in Kabul to talk trade amid ‘deteriorating ties’ PESHAWAR/ISLAMABAD STAFF REPORT
A high-level delegation of the Pakistani Commerce Ministry will hold crucial talks in Kabul on Monday to discuss bilateral trade and joint measures to remove hurdles faced by transporters and businessmen from both sides, officials confirmed on Sunday. “Secretary of Commerce Khurrum Agha is undertaking the two-day trip to Afghanistan on Monday, (tomorrow) days after Pakistan conducted air strikes inside Afghanistan, targeting terrorist hideouts. The delegation will discuss trade-related matters. “Pakistan remains committed to promoting trade and people-to-people ties with Afghanistan,” read a brief statement issued by the Foreign Office on Sunday. The Commerce Secretary will be accompanied by other senior officials at talks taking place amid tensions between the two
estranged neighbours. The worsening ties have undermined bilateral trade between the two countries in recent months. The frequent border closures due to a variety of reasons also negatively impacted trade ties. The relations, especially trade between the two neighbours have significantly deteriorated amid frequent border clashes and closure of key crossing points along their shared border. The disruptions have not only strained diplomatic ties but also inflicted heavy economic losses on both sides, particularly affecting trade-dependent communities and industries. “Secretary Commerce Khurrum Agha will undertake a two-day visit to Afghanistan on Monday 25 March 2024 to discuss trade related matters,” Mumtaz Zahra Baloch, a spokesperson for the Pakistani foreign office, said in a statement on Sunday. According a senior official of the Trade
Development Authority of Pakistan (TDAP), the visit aims at fostering trust and trade flow between the two countries. “The visit of the high-level delegation, headed by secretary commerce is part of confidence-building measures to foster trust and ensure smooth trade flow between the two neighbors,” Muhammad Zubair Motiwala, chief executive officer of TDAP, told Arab News. “I hope the visit leads to bilateral cooperation between the two countries,” Motiwala said. “Both countries need to revisit their policies to simplify trade, ease restrictions and simplify transit at the border points.” On the other hand, Akhundzada Abdul Salam Jawad, an Afghan commerce ministry spokesperson, confirmed to the media the scheduled visit but accused Islamabad of complicating bilateral trade issues. “Talks will focus on Pakistan’s unnecessary delay of goods’ trucks, red tapism in preparing documents for transit of heavy
containers and Islamabad’s latest tightening of rules for Afghan truckers to get Pakistani visas,” he said. A year ago, Jawad maintained, almost 1,500 to 2,000 trucks from Pakistan entered Afghanistan on a daily basis, but “undue restrictions by Pakistan’s border and trade authorities have made business nearly impossible by introducing new rules,” bringing down the number of Pakistani trucks to about 700. The Afghan official said his country’s business with Iran through Chabahar Port had witnessed a huge boost due to the trade complications with Pakistan. “We will discuss with Pakistani side either bureaucratic or infrastructural hurdles for trade and businesses at the border points with impediments and massive congestion, often closure and reopening of crossing points for trade, low scanning capacity, hurdles in trade movement such as transporta-
tion of perishable goods, which often result in massive financial losses to our businessmen,” he added. Hajji Usman, a member of Nangarhar Chamber of Commerce and Industry, said the security issues between the two countries were also impeding a smooth flow of trade between them. Aimal Khan, a president Pakistan Custom Clearing Agents at Torkham border crossing, said that business and movement was almost at a standstill due to the interference of institutions other than the customs department. “Except for the customs department, authorities should ban the rest of the departments from interfering in the working of businesses in the border areas,” he maintained. Khan said it was a positive development that the Pakistani commerce delegation wanted to discuss the modalities of the trade with Afghan officials to ease the situation for businesses on both sides of the frontier.