Prime Minister Shehbaz Sharif lauded the Federal Board of Revenue (FBR) and Karachi Port officers for their efforts in modernizing customs operations, at the inauguration ceremony of the Faceless Customs Assessment System on Wednesday.
The new automated system minimises human intervention, significantly reducing the customs clearance process from 107 hours to just 19 hours. “Introducing a modern system in customs is a great success,” the PM remarked, noting that 88% of importers have expressed satisfaction with the initiative.
Shehbaz Sharif emphasized the importance of reforming Pakistan’s tax system to attract substantial foreign investment. He announced plans to reduce tax rates and introduce measures to prevent tax theft by revising tax slabs.
“Large foreign investment cannot come under the current tax system. The tax rates will be reduced in the coming time,” he vowed, adding that reducing the tax slab will also reduce theft.
The PM noted that the nation wastes Rs4 trillion annually due to inefficiencies at ports and in the excise and sales tax system. “There is a gap of Rs400 billion between the tax target and collection, and achieving this shortfall is not a big challenge,” he asserted.
To address this, the finance minister has been tasked with implementing a policy that incorporates penalties and rewards for tax recovery. The prime minister highlighted that Pakistan’s tax-to-GDP ratio was set at 10% under the IMF agreement.
Economic indicators, electricity management
Shehbaz Sharif shared encouraging economic indicators, stating that the interest rate had dropped to 13%, inflation had fallen from 38% to 4.1%, and IT exports had grown by 34%.
He reiterated the government’s commitment to reducing electricity prices, announcing that the Sindh government had offered to sell its electricity distribution companies (DISCOs) to the federation. Other provinces will also be invited to take similar steps.
“We are ready to hand over electricity distribution companies to the provinces. This collaborative approach will help address the challenges in the energy sector,” he stated.
The prime minister concluded by highlighting the government’s recent initiatives, including the launch of the Uran Pakistan program, aimed at further advancing the country’s economic and infrastructural progress.
