Senate panel urges government to renegotiate IMF terms on EPZs, SEZs

A Senate subcommittee has urged the government to renegotiate certain conditions under Pakistan's IMF programme to prevent the potential phase-out of Export Processing Zones (EPZs) and Special Economic Zones (SEZs), warning that such a move could adversely affect industrial growth, exports and investment.

 

The committee was informed that Pakistan is expected to gradually phase out EPZs and SEZs by 2035 under commitments aimed at bringing all sectors under a uniform taxation framework.

 

During a meeting of the Senate Standing Committee on Finance and Revenue's subcommittee, members stressed that Pakistan's industrial and investment interests should be protected and directed the government to revisit the matter with the International Monetary Fund.

 

Following deliberations, the committee recommended that EPZs and SEZs should not face adverse consequences and called for negotiations to find an alternative arrangement.

 

Exporters face banking challenges

 

The subcommittee also discussed difficulties faced by exporters and businesses in carrying out banking transactions.

 

Members suggested exploring practical alternatives, including the use of insurance guarantees in place of conventional bank guarantees or cheques where applicable. The Federal Board of Revenue assured the committee that the issue would be reviewed.

 

The committee further recommended introducing facial recognition technology to assist taxpayers whose fingerprints cannot be verified due to age or other reasons. The FBR and NADRA were directed to coordinate and resolve the issue on priority.

 

It also sought details regarding FBR officials holding dual nationality or permanent residency abroad.

 

EV charging network and power concerns discussed

 

The committee was also briefed on developments under the National Auto Policy, including measures aimed at expanding electric vehicle adoption.

 

Officials informed the panel that viability gap funding is available to support the initial rollout of 3,000 EV charging stations across the country.

 

Concerns were also raised over the impact of early market closures on businesses, particularly during periods of electricity shortages. The committee was informed that recent power challenges were linked to disruptions in RLNG supplies and load-management measures.

 

Meanwhile, the Securities and Exchange Commission of Pakistan briefed members on illegal share transfers and disputes involving forged signatures and other fraudulent practices.

 

The regulator said it had undertaken digitalisation initiatives in the share market and was taking action against individuals and entities involved in unlawful activities.

 

The committee concluded by urging the FBR to strengthen engagement with the business community, improve taxpayer facilitation and take further steps to enhance the overall ease of doing business in Pakistan.