Dr. Shamshad Akhtar, Caretaker Finance Minister, delivered a pivotal message during the World Customs Day ceremony at Customs House Karachi, stressing the critical need to double the tax-to-GDP ratio for achieving essential development goals.
Addressing the audience, Dr. Akhtar highlighted challenges in the customs sector, emphasizing the urgency for reforms to address issues like money laundering, smuggling, fiscal fraud, and tax evasion, which have significant repercussions on the economy.
The Finance Minister outlined a reform agenda, including the reduction of duty rates and the simplification of Statutory Regulatory Orders (SROs). He underscored an ongoing five-month consultation process within the Federal Board of Revenue (FBR), incorporating recommendations and schemes from FBR members. Dr. Akhtar expressed confidence in surpassing a revenue target exceeding 4 trillion rupees.
During the event, the Finance Minister discussed the integration of transit trade systems at border stations, a project supported by the Asian Development Bank. This initiative aims to expedite trade clearance without human intervention, potentially unlocking a revenue potential ranging from 2 to 4 trillion rupees in Pakistan. Dr. Akhtar emphasized the significance of reinforcing taxation and valuation processes to enhance revenue streams.
In terms of financial transparency, Dr. Akhtar shared collaborative efforts between the Ministry of Energy and Ministry of Finance to inform the International Monetary Fund (IMF) about the revolving loans of Pakistan Telecommunication Company Limited (PTCL) and Sui Southern Gas Company (SSGC).
Dr. Farid Iqbal, Member Customs Operations FBR, addressed the gathering, highlighting the role of customs administrations in facilitating trade and safeguarding borders. Under the theme "Engaging Traditional and New Partners," he emphasized the evolving dynamics of international trade and the essential nature of collaborative efforts.
Acknowledging the Customs Department's accomplishments, Collector of Customs Basit Abbasi commended the successful anti-smuggling campaign, resulting in the seizure of smuggled goods worth 3.5 billion rupees in 1000 cases over the last seven months.
