ISLAMABAD: The federal cabinet, under the second schedule of the Income Tax Ordinance 2001, has approved tax exemption on the profits gained through Euro Bonds, dealings in International Sukuk issued under the government’s medium-term notes and Panda Bonds issued in the Chinese market.
The cabinet exempted investors from income tax after the Ministry of Finance told it that without exemptions, the sovereign bonds would be less appealing to international investors. The investors who would invest in these bonds and earn profits will not be required to pay up to 30% income tax along with other taxes.
The cabinet meeting chaired by Prime Minister Imran Khan, also approved the appointment of Ali Mehdi as Chief Executive Officer (CEO) of Pakistan Development Fund Limited under the Public Sector Companies (Corporate Governance) Rules 2013.
It also approved six months extension in the implementation of the Pakistan Essential Services (Maintenance) Act 1952 on all levels of employment under the administrative control of Pakistan Petroleum Limited.
The cabinet approved the grant of financial award for the members of the core committee constituted under the Power Division for their services towards saving the country from big financial loss in the light of investigations in the Rental Power Project.
It also approved the nomination of members of the Karachi Dock Labour Board under the Ministry of Maritime Affairs. The constitution of the Board of Directors of the National Transmission and Dispatch Company under the Power Division was also approved by the cabinet.
The cabinet also gave a go-ahead to the Ministry of National Health Services and Regulation to directly make a five-year agreement with the National Database and Registration Authority (NADRA) for data verification of Sehat Sahulat Programme.
The cabinet, which was given a briefing on the issue of Broadsheet, a UK asset recovery firm, decided to constitute a committee to be headed by a retired judge of the Supreme Court or High Court to investigate the matter.
The meeting was briefed in detail about the measures taken during the last six months with respect to civil service reforms. It was told that civil reforms had been done in the decades’ old rules in line with the current era requirements, transparency, performance, and accountability.
It was further told that the civil service reforms had been done keeping in view the timelines and results, and identifying the complications of previous rules relating to discipline, performance, promotions, retirement and other issues.
About amendments in PPRA (Public Procurement Regulatory Authority) Rules, the cabinet was told that besides detailed explanation of the rules, quality, facilitation of public and private sectors and high international standards had been taken care of in the amendments.
The prime minister while appreciating the measures taken regarding the civil service reforms and amendments in the PPRA Rules, said the ministries and divisions, in line with the reforms, should take steps regarding the improved performance of the ministries and further ensuring the ‘ease of doing business’.
Minister for Finance Dr Abdul Hafeez Sheikh while presenting a comparative study of the negative economic effects of coronavirus on the country and other nations told the meeting that Pakistan registered negative 0.5 % growth in GDP (Gross Domestic Product) during the previous fiscal as against the negative growths recorded by US 4.3%, Sri Lanka 4.6%, Iran 5%, India10.2% and Turkey 5.5 percent.
Prime Minister Imran Khan appreciated the timely and transparent distribution of cash grants among the deserving in coronavirus situation under the NCOC, Finance Ministry and Ehsaas Programme.
The prime minister said the NCOC model remained very successful as well as successful implementation of effective strategy due to consultation of all the stakeholders.
He further said that Pakistan was the first country in world which thought about the negative effects of coronavirus on the poor people and took timely decisions whereas poverty in India due to coronavirus pandemic increased. The prime minister appreciated the timely and transparent measures taken by the NCOC, Ehsaas and Ministry of Finance.
