1 (28th Session) NATIONAL ASSEMBLY SECRETARIAT ———— “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Monday, the 1st February, 2021 38. *Syed Agha Rafiullah: (Deferred during 26th Session) Will the Minister for Finance and Revenue be pleased to state: (a) whether all the Advisors and Special Assistants to the Prime Minister have filed the tax return; if so, the names of such Advisors and Special Assistants, who have filed tax return alongwith the detail of each tax financial year for which, each one filed the first and the last tax return; (b) name of those Advisors and Special Assistants, who did not file tax return; if so, the reasons thereof; and (c) what corrective measures being taken by the Government in this regard? Reply not received. 95. *Mr. Abdul Shakoor: (Deferred during 27th Session) Will the Minister for Finance and Revenue be pleased to refer to the Starred Question No.182 replied on 14-02-2020 and to state preparations plan and time period required by Federal Government for calling upon CCI meeting to create consensus with federating units for release of 3% share for merged districts of erstwhile FATA out of federal divisible pool as approved by Federal Cabinet on 2nd March, 2017?
Transcript
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(28th Session)
NATIONAL ASSEMBLY SECRETARIAT
————
“QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES”
to be asked at a sitting of the National Assembly to be held on
Monday, the 1st February, 2021
38. *Syed Agha Rafiullah:(Deferred during 26th Session)
Will the Minister for Finance and Revenue be pleased to state:
(a) whether all the Advisors and Special Assistants to thePrime Minister have filed the tax return; if so, the names ofsuch Advisors and Special Assistants, who have filed tax returnalongwith the detail of each tax financial year for which, eachone filed the first and the last tax return;
(b) name of those Advisors and Special Assistants, who did not filetax return; if so, the reasons thereof; and
(c) what corrective measures being taken by the Government inthis regard?
Reply not received.
95. *Mr. Abdul Shakoor: (Deferred during 27th Session)
Will the Minister for Finance and Revenue be pleased to refer to theStarred Question No.182 replied on 14-02-2020 and to statepreparations plan and time period required by Federal Governmentfor calling upon CCI meeting to create consensus with federating units for release of 3% share for merged districts of erstwhile FATAout of federal divisible pool as approved by Federal Cabinet on 2ndMarch, 2017?
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Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh):Distribution of Divisible Pool Resources to federating units is not the mandateof CCI. The Article 160 of the Constitution gives the mandate to NationalFinance Commission (NFC) of making recommendations on distribution ofDivisible Pool Resources to the President of Pakistan. Approval of the Presidentof Pakistan is notified as NFC Award.
NFC is a constitutional body constituted under Article 160 of theConstitution. Traditionally, it takes decisions with consensus of all stakeholders.Finance Division has no role in decision making of the NFC. Finance Divisiononly provides secretariat support to the NFC.
The matter regarding funding for erstwhile FATA was taken up in themeetings of previous NFC (9th NFC). However, no decision could be taken.The 10th NFC has been constituted and the Federal Government shall placethe matter for release of 3% share for merged districts of FATA in the meetingof NFC for consideration.
Presently, the Federal Government is meeting all budgetary requirementsof erstwhile FATA from its own resources (more than 3% of the NFC share),till announcement of new NFC Award.
142. *Shazia Marri: (Deferred during 27th Session)
Will the Minister for Finance and Revenue be pleased to state:
(a) whether State Bank of Pakistan, being a regulator, has takennotice of vulnerability of Banks, to get stopped increasing trendof online fraud cases;
(b) whether losses of billions of rupees occur every year to the publicdue to above;
(c) if so, the detail of same with year and bank-wise break-up ofvolume of losses accrued during the last five years; and
(d) what protective measures are being taken by the Governmentto improve the vulnerable cyber security infrastructure forsaving the citizens from such online frauds and also detail ofsteps being taken for improving the ratio of digital bankingsystem?
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Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)SBP has been cognizant of the trends in online banking frauds and has overthe years, taken a number of steps to curb this menace. Earlier in 2016, SBPissued regulations on Payment Card Security vide Circular, in terms of whichit was mandatory for banks to start issuing Euro Pay Master Visa (EMV)compliant (Chip Based Cards) by June, 2018. EMV cards are difficult tocompromise in comparison to the conventional magnetic stripe card and offerprotection against skimming and data theft. In this regard, majority of thebanks have started issuing Chip Based cards to the customers. As a result ofSBP’s instructions, a complete migration to EMV standards has resulted inreplacement of over 43 million cards across the industry.
Furthermore, SBP has issued regulations for Electronic Fund Transferand a circular on Security of Digital Payments in 2018, whereby, it hasinstructed banks to enhance the security of their IT infrastructure to ensuremaximum protection of customer funds especially through Inter Bank FundTransfers (IBFT). Additional controls like free of cost SMS facility have alsobeen made available for customers to check for any unauthorized transactionsin their account. Banks have also been advised to run media campaigns toeducate customers about the secure use of digital payment instruments andnot to share their sensitive information with anyone.
In addition to the above, SBP has been running educational programsthrough financial institutions to educate customers on the importance ofprotecting customer identifiable/sensitive information etc. Further, SBP alsoremains in constant contact with the Information Security teams of banks toremain updated about any threat and take immediate action. SBP has issuedthe following regulations:—
1. Regulations for Security of Internet Banking (Oct. 21, 2015)2. Regulations for Payment Card Security (May 06, 2016)3. Electronic Fund Transfer Regulations (May 09, 2018)4. Security of Digital Payments (Nov. 28, 2018)5. Measure to Limit the Spread of Corona Virus (COVID-19) by
Promoting the use of Digital Payment Services (Mar. 26, 2020)
It may also be noted that SBP is also collaborating with other regulatorsand Law Enforcement Agencies (LEAs) to apprehend and deter fraudstersfrom defrauding customers. SBP is working with the industry to furtherstreamline the process and increase resilience of the industry.
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(b) & (c) The losses to the public do not amount to billions of rupeesevery year.
(d) As at (a) above.
82. *Ms. Shagufta Jumani:
Will the Minister for Commerce be pleased to state:
(a) the detail of percentage of reduction in imports and increase inexports, respectively contributed to narrow down overall tradedeficit by the incumbent Government;
(b) detail of industries, whom imports have been reduced in thecorresponding period details; and
(c) whether Government has assessed the decline of imports of suchindustries; if so, the details thereof; if not, the reasons thereof?
Minister for Commerce: (a) The detail of percentage of reduction intrade deficit is enclosed at Annex-I.
(b) Detail of industries, whom imports have been reduced in thecorresponding period is enclosed at Annex-II.
(c) Following factors have contributed in the recent trend of decreasein imports:
i. Depreciation of Pak Rupee, which has made imports expensive.
ii. The current worldwide economic slowdown.
iii. Ban on trade with India.
iv. Increase in duties and taxes on the import of luxury items.
v. Regulation of import of food items via SRO 237(I)/2019 dated19-02-2019.
vi. Regulation of import of vehicles via SRO 52(I)/2019 dated15-01-2019.
vii. Completion of projects under CPEC and diverting demand ofexpensive imported products to alternate/ substitute products alsoreduced the imports.
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This trend of decrease in imports will continue unless the demand ofimported products in Pakistan increases.
(Annexures have been placed in the National Assembly Library)
83. *Mr. Saad Waseem:
Will the Minister for Finance and Revenue be pleased to state:
(a) the debt to GDP ratio during the fiscal years 2018-19 and 2019-20;
(b) the detail in clear terms, the additional burden of debt, whichhave been saved due to revenue mobilization rationalization ofexpenditure, restructuring of public sector enterprises alongwithdetails thereof; and
(c) the year-wise expected downfall of debt to GDP in next threeyears?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)Debt-to-GDP ratio stood at 86.1 percent at end June 2019, and 87.2 percentat end June 2020.
(b) Over the medium term, Government’s objective is to increaserevenue mobilization, reduce expenditures and reform Public Sector Enterprises(PSEs). These measures are expected to bring stability leading to gradualreduction in the fiscal deficit over next few years and subsequently wouldreduce the country’s reliance on additional debt.
All these measures have already started to bear fruit and have helpedthe federal government to record a primary deficit of 2.4 percent of GDPduring FY 2020 compared to 4.1 percent of GDP during FY 2019. Thisreduction in primary deficit was supported by enhanced revenue andrationalization of non-interest expenditure. Over the medium term, Public Debtis expected to reduce to around 78% by fiscal year 2024.
(c) The year-wise debt to GDP targets for next four years are providedbelow:
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——————————————————————————————Fiscal Year Targeted Debt to GDP
Will the Minister for Finance and Revenue be pleased to state:
(a) steps taken or being taken by the Division to prepare subject-wise list of titles of all laws and rules of subject mattersmade with reference to business allocated to the said Divisionand its attached departments under the Rules of Business, 1973;
(b) present status of provision of subject-wise list of titles of saidLaws/Rules;
(c) what steps have been taken by said Division to updateconsolidate/amend said Laws/Rules to keep pace with changesin modern Society; if so, details thereof; if not, reasons thereof;
(d) the steps taken or being taken by said Division to determineanomalies, inconsistencies and difficulties in the administrationand implementation of said Laws and Rules; if so, details of thelatest post legislative scrutiny of laws made by Division; and
(e) names of offices/branches appointed or designated in this regard?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)The followings are the subject-wise list of titles of all laws and rules of subjectmatters made with reference to business allocated to Finance Division and itsattached departments under the Rules of Business, 1973;
a. Compendium of Pension Rules and Orders 2018 2018
b. Treasury Rules of the Federal Government Volume-I 2019
c. Treasury Rules of the Federal Government volume-II updated 2019Edition 2019
d. General Financial Rules Volume-I Updated Edition 2019 2019
e. The Civil Service regulations (C.S.R) 2018
f. Compilation of the Fundamental Rules and the Supplementary 2018Rules Vol-II
g. Compilation of the Fundamental Rules and Supplementary 2018rules Vol-I
h. Compilation of General Orders relating to Travelling Allowance 2018
i. General Financial Rules Vol-II 2018 2019
j. System of Financial control and Budgeting (Sep, 2006) – Updated 2018upto Oct 2018
k. Compilation of Orders Relating to Various Schemes of Pay Scales, 2017Allowances and Fringe Benefits (1972 – 2017)
l. Compilation of General Orders relating to Various Allowances 2017
m. General Provident Funds Rules 2017
n. Revises Leave Rules-1980 2018
——————————————————————————————Auditor General of Pakistan (AGP)
At present DAGP is an attached department of the Finance Division andreflected in Schedule-III of the RoB. The proposal of inclusion of DAGP inSchedule-II of the RoB is under consideration with Cabinet Committees onInstitutional Reforms under Dr. Ishrat Husain. The proposal has been forwardedthrough Finance Division.
Controller General of Accounts (CGA)
This office assisted the Finance Division in drafting and implementation ofthe following Acts / Rules / Procedure.
1. Public Finance Management Act, 2019.
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2. Implementation of Cash Management and Treasury Single AccountRules, 2020.
All the above laws and rules are available on the Website of FBR.
(b) The status of provision of subject-wise list of titles of said laws/Rulesare as under:—
Finance Division (Main)
Above listed Rules Books uploaded on the Website of Finance Divisionand hard copies of the books have been provided to all Ministries and Divisionsetc.
Auditor General of Pakistan (AGP)
At present DAGP is an attached department of the Finance Division andreflected in Schedule-III of the RoB. The proposal of inclusion of DAGP inSchedule-II of the RoB is under consideration with Cabinet Committees onInstitutional Reforms under Dr. lshrat Husain. The proposal has been forwardedthrough Finance Division.
Controller General of Accounts (CGA)
1. Public Finance Management Act, 2019.
2. Implementation of Cash Management and Treasury Single AccountRules, 2020.
All above mentioned Laws/ Rules have been notified and circulated toMinistries / Divisions for compliance.
Pakistan Mint
Only Act concerning Pakistan Mint is Pakistan Coinage Act 1906. Thesame is available at the website of the SBP.
Revenue Division (FBR)
The laws/rules are updated from time to time with the date of updation given.
(c) The followings steps have been taken by this Division and its attacheddepartments to update consolidate/amend said Laws/Rules to keep pace withchanges in modern Society:—
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Finance Division (Main)
Regulations Wing has compiled / updated financial Rules Books, uploadedon website and hard copies of the books have been provided to all Ministries andDivisions etc.
Auditor General of Pakistan (AGP)
A summary to the Prime Minister (through Finance Division) for amendmentin the AGP’s Act to make it consistent with the Article-170(2) of the Constitutionhas been sent to the Finance Division for in-principle approval.
Controller General of Accounts (CGA)
This office and our sub-offices assisted Finance Division for offering views/comments on the subjects to update the Law/rules according to the changes infuture requirements.
Pakistan Mint
Pakistan Coinage (Amendment) Bill, 2019 is under consideration ofNational Assembly Standing Committee on Finance, Revenue and Economic Affairs.
Revenue Division (FBR)
Changes in laws are made through Finance Act annually and the same areupdated accordingly. Rules are amended after being vetted by Law Division fromtime to time.
(d) The steps taken or being taken by Finance Division and its attacheddepartments to determine anomalies, inconsistencies and difficulties in theadministration and implementation of said laws and Rules are as under:—
Finance Division (Main)
Nil
Auditor General of Pakistan (AGP)
A summary to the Prime Minister (through Finance Division) for amendmentin the AGP’s Act to make it consistent with the Article-170(2) of the Constitutionhas been sent to the Finance Division for in-principle approval.
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Controller General of Accounts (CGA)
Nil
Pakistan Mint
Pakistan Coinage (Amendment) Bill, 2019 is under consideration ofNational Assembly Standing Committee on Finance, Revenue and Economic Affairs.
Revenue Division (FBR)
For removal of the difficulties different anomaly committees have beenconstituted from time to time under titled:
(e) The followings are the name of offices/branches appointed ordesignated in this regard:—
Finance Division (Main)
Finance Division had contracted / appointed Mr. Khurshid Anwar Shah,retired JS (Regs), who has accomplished his task upto 25-06-2020. At presentno officer is appointed for this purpose.
Auditor General of Pakistan (AGP)
Not applicable.
Controller General of Accounts (CGA)
Not applicable.
Pakistan Mint
Not applicable.
Revenue Division (FBR)
Names as mentioned in Annex-A & B.
(Annexures have been placed in the National Assembly Library)
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85. *Mr. James Iqbal:
Will the Minister for Commerce be pleased to state the steps beingtaken by the Government to increase domestic exports to Ethopiaduring the next financial year?
Minister for Commerce: As part of “Look Africa” policy of Ministryof Commerce, a new Trade & Investment section has been opened and madeoperational in Addis Ababa, Ethiopia, considering that Ethiopia is theheadquarters of African Union and one of the rising economies of Africa.
An increased participation in Ethiopian exhibitions and visits ofdelegations will be arranged as Trade & Investment Section in Addis Ababahas started working.
Trade Development Authority of Pakistan and Trade & InvestmentSection, Addis Ababa, are arranging webinars on trade related matters toincrease linkages between the business communities of both countries.
Ministry of Commerce organized Pakistan-Africa Trade DevelopmentConference in Nairobi, Kenya on 30th-31st January 2020. A businessdelegation from Ethiopia attended the Conference. During the conference,B2B meetings also took place between Pakistani & Ethiopian businesspersons.
A Memorandum of Understanding on Trade Relations between Pakistan& Ethiopia has been shared with the Ethiopian government, which will providean institutional platform to increase cooperation and trade between the twocountries.
Ban on import of Red Kidney beans from Ethiopia has been liftedafter request from Ethiopian side by Department of Plant Protection, this year.This will help in strengthening trade relations between the two countries andbuild confidence.
Ethiopia has shown interest in buying Pharmaceutical and Surgicalproducts from Pakistan. Ministry of Commerce/Trade Development Authorityof Pakistan are considering a business delegation of Pharmaceuticals andSurgical sectors to and from Ethiopia, in order to facilitate the exports ofPharmaceutical and Surgical products to Ethiopia, once the situation causeddue to Covid-19 returns to normaley.
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In August 2019, Foreign Minister and Trade Minister of Ethiopia visitedPakistan and held a meeting with Advisor to P.M on Commerce, Industry &Production and Investment. Matters of bilateral trade between the countrieswere discussed during the meeting.
86. *Syed Javed Husnain:
Will the Minister for Finance and Revenue be pleased to state:
(a) the funds approved by the Prime Minister during the year 2013to 2018 for provision of Gas to NA-68 (currently NA-92)alongwith the amount spent so far; and
(b) the time by which the remaining amount will be made available?
Transferred to Petroleum Division for answer on Next Rota Day.
87. *Moulana Abdul Akbar Chitrali:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether it is a fact that all the banks used to issue fundstransaction statement for few days alongwith the ministatement; if so, the reason of termination of such statement;
(b) the date from which the same has been terminated and the actiontaken against the responsible banks which have taken the saidillegal steps alongwith the details; and
(c) the time by which banks will be reopened for the convenience ofpensioners which used to open on Saturdays?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)State Bank of Pakistan (SBP) has instructed all banks to provide statement ofaccount to accountholders without any charges on bi-annual basis (Annexed).The accountholder can generate mini statement through ATM and internetbanking at any time.
(b) The stated instructions are still valid. However, any complaintagainst non-issuance of account statement by the bank can be reported to theBanking Conduct & Consumer Protection Department of SBP.
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(c) Banks are currently opening their selected branches on Saturdaysin various business centres/commercial hubs/ports etc. for provision of bankingfacilities to general public and business community. The timings of Saturdaybanking are generally from 09:00 am to 1:30 pm.
(Annexure has been placed in the National Assembly Library)
88. *Mr. Sher Akbar Khan:
Will the Minister for Planning, Development and Special Initiativesbe pleased to refer to Starred Question No.98 replied on 26-01-2017and to state:
(a) the names and location-wise details of those 08 dispensariesestablished in District Buner with expenses made thereonalongwith present status thereof; and
(b) date on which those dispensaries were made functional?
Minister for Planning, Development and Special Initiatives(Mr. Asad Umar): (a) In district Buner of Khyber Pakhtunkhwa, reportedlyeight. (08) healthcare outlets i.e. Civil Dispensaries (CDs) were establishedto improve basic social services as a multi-donor funded project (World Bank,Netherland etc.) for over a period of five years by the government ofPakistan with the provincial governments as major implementing agencies.Their names as provided at District Health Information of KP website;dhiskp.gov.pk/hstatistics.php are as follows:——————————————————————————————
(b) The facilities are functional since year 2016 as per informationdisplayed on the District Health Information KP website mentioned above.
Under the Constitution health services delivery, execution andimplementation including operation and maintenance is the responsibility ofthe Provincial Government.
89. Referred to Power Division for acceptance. 90. *Ms. Naureen Farooq Ibrahim:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether the smuggling of non-custom paid items arebeing controlled in the Khyber Pakhtunkhwa; and
(b) the details of incentives being offered by the Government asalternative business for the inhabitents after controllingsmuggling in the interest of national exchequer?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)Efforts are being made to control smuggling of non-customs paid items in theprovince of KPK. As a result of effective counter smuggling strategy, PakistanCustoms has seized goods worth Rs.36,570 million in the year 2019-20 ascompared to corresponding period 2018-19 worth Rs.25,291 million recordingan increase of 44.59%. In a current financial year (till 16 January, 2021),Pakistan Customs have made seizure of goods worth Rs. 33,039 million ascompared to Rs. 24,921 million in 2019-2020 (till 16 January, 2020) whichis 33% increase.
It is further informed that Pakistan Customs has no presence in borderareas except notified custom stations due to shortage of human resource. Anti-smuggling powers have been delegated to Frontier Corps KP (North/South)under section 6 of the Customs Act, 1969 vide SRO 122(I)/2020 dated21-02-2020.
(b) The Federal Government is working on the concept of establishingJoint Border Trade Market (JBTM) along the western border with Afghanistanand Iran. The JBTM concept was approved by Honourable Prime Minister inthe Anti-Smuggling Steering Committee. The concept of JBTM will ensure
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sustenance of the local population by providing frequently traded goods withoutduty/taxes. This initiative will result in community engagement and help incurbing the menace of smuggling on the border. FBR has extended full supportto establish JBTM and completed the tasks assigned to it by providing detailedworking of concession / exemptions on tariff and other duty taxes on theapproved list of items.
In total 16 JBTMs will be established along the western border. Initially,three pilot projects 01 in KPK at Shaheedano Dand and 02 in Balochistan atGabd and Mand will be made operational in early 2021. FBR has also conveyedits concurrence to revise MoUs between Afghanistan and Pakistan shared forestablishing Joint Border Trade Markets.
91. *Choudhary Faqir Ahmad:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether Ministry has taken notice of failure of Financial Adviser,designated to each Division and Chief Finance and AccountsOfficer thereof to play their due role as enshrined in the financialrules in the administrative and financial matters;
(b) whether it is a fact that consequently, numerous administrativeand financial irregularities of millions of rupees are reported ineach Division on annual basis, which ultimately end up withaudit paras;
(c) if so, the details thereof;
(d) what steps are being taken to ensure true role of FinancialAdvisor’s and Chief Financial and Accounts Officers in letterand spirit; and
(e) if they have failed to play their due role, what action is taken bythe Government to make them accountable on such matters?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)The Financial Advisers (FAs) and Chief finance & Accounts Officers(CF&AOs) designated to each Division played their due role as enshrined inthe Financial Rules in Administrative and Financial Matters. Overall there was
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no failure on the part of said officers, regarding disposal of their assignedtasks. Financial Advisers were under the administrative control of FinanceDivision and as per their job description FAs were supposed to perform thetasks of “facilitation, support and appropriate advice as per financial rules tothe Principal Accounting Officer of Ministries/Divisions that they are assignedto.” Their main role is advisory in nature by rendering advice to PrincipalAccounting Officers (PAOs) in financial matters. Whereas, CF&AOs arerequired to perform the tasks of assisting PAO in matters relating, internalcontrol/audit, reconciliation of accounts, Internal scrutiny of budget estimates,tendering advice to PAO for compliance of rules & regulations and financialproprieties of expenditure and receipts. Hence it is not relevant to say thatFinancial Adviser and Chief Finance & Accounts Officer attached to a Ministry/Division failed to perform their due role in the financial management of Ministry/Division.
(b) Finance Division allocates funds to Ministries/Divisions/Departments thus placing the funds at the disposal of relevant PrincipalAccounting Officers who have been given maximum financial authority toexpend the funds as per Financial Rules and System of Financial Control &Budgeting-2018. While expending from public money, the PAO is required tomaintain the standard of financial propriety. The PAOs have been empoweredto make expenditure out of allocated budget. On the other hand, as per Article 170of the Constitution, the audit of accounts of the Federal arid Provincial grantsand accounts of any authority or body established by or under the control ofthe Federal or a Provincial government shall be conducted by Auditor Generalof Pakistan. As regards detail of irregularities, it is to state that the AuditorGeneral of Pakistan as per Article 171 of the Constitution shall submit auditreports, containing therein detail of irregularities, to the President in case ofFederal Government and to the Governors in case of Provincial Governmentsand the President and Governors who shall cause the reports to be laid beforethe House of Majlis-e-Shoora (Parliament) and Provincial Assemblies, as thecase may be. Further, the AGP has devised a policy that such reports wouldbe made public and placed on the website of Auditor General of Pakistan,once they have been laid before the Parliament and Provincial Assemblies.Since PAOs are empowered to make expenses, hence, PAO is an expendingauthority; while the Auditor General is audit authority. Here the role of FA wasthat of a whistle blower, who kept tendering advice and support to PAO asper said rules etc.
(c) As in ‘a’ and ‘b’ above.
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(d) Finance Division in order to make Principal Accounting Officersmore responsible and accountable has disbanded the FA Organization throughsection 28 of Public Finance Management Act 2019. More powers have beendelegated to PAO). And to assist him in financial management, CF&AOscheme is being strengthened by giving them more role and responsibility whoshall undertake financial planning, budgeting and accounting, be responsiblefor observance of Internal Control, assist and advise the PAO in enforcing theinternal controls for preventing irregularities, waste, fraud etc. Further he willassess the risks, ensure asset protection, timely reconciliation and also advisePAO on financial matters. Government is also introducing scheme of InternalAuditor in different Divisions. Chief Internal Auditor (CIA) will work underthe PAO. The scheme will further empower PAO for better financialmanagement and control in each Division.
(e) As given in “a” above.
92. *Ms. Shamim Ara Panhwar:
Will the Minister for Privatization be pleased to state:
(a) the names of national departments or organizations of countrywill be privatized on 30th June, 2021; and
(b) the detail of income to be accrued therefrom?
Minister for Privatization (Mr. Muhammadmian Soomro): (a) Atpresent, Ministry of Privatization is processing privatization/divestment ofeighteen (18) PSEs, and Sale of Twenty Three (23) identified properties/ assets,owned by various Ministries/ Divisions. However, as bidders of 13 propertieshave not deposited due payments, therefore, after outcome of necessary actionthese will be re-auctioned along-with other available properties.
Out of the above, following privatization transactions are expected tobe completed by 30th June 2021, depending upon various factors includingCOVID-19 effects on market conditions and timely approvals of requisitemilestones by the CCoP and the Cabinet: -
(1) Sale of 23 identified properties owned or controlled by the FederalGovernment
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(2) Divestment of up to 20% Shares of Pakistan Reinsurance Co. Ltd(PSE)
(3) SME Bank Limited (PSE)
(4) Services International Hotel, Lahore (PSE)
(b) (i) Out of Sale of 23 identified properties owned or controlled by theFederal Government, bids amounting to Rs.1.113 billion have beenreceived which have already been approved by the FederalGovernment.
(ii) While for the remaining 03 PSEs mentioned above, expectedproceeds would be determined at the time of approval of valuation/bidding processes by the CCoP and the Cabinet.
93. *Nawab Muhammad Yousuf Talpur:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether it is a fact that value of Produce Index Unit (PIU) wasfixed in 2015 as Rs.4000/- by the Finance Division;
(b) whether it is also a fact that PIU of land is associated with thetype and nature of cropping pattern, cropping intensity and fallsin crop production zone;
(c) whether it is further a fact that PIU is strongly related to theland rent and land productivity of an area;
(d) whether it is also further a fact that conditions mentioned inPara (b) and (c) have changed since 2015;
(e) if answers to part (b) and (d) are in affirmative, as to whether theGovernment will enhance PIU value in consultation with SPB,ZTBL and all Provincial Government?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)Yes. Existing value of PIU i.e. Rs. 4000/- per PIU was fixed by FinanceDivision, Govt. of Pakistan in 2015 vide SRO dated 18-09-2015 & CircularLetter No. CD/20/2015 dated 28-09-2015 issued by Credit Division, ZTBLHead Office, Islamabad.
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(b) For the purpose of valuation, the cultivated area and uncultivatedland are dealt separately and evaluated as per Produce Index Unit (PIU) asfixed by the Federal Government under Rule-5, in Sub-rule (2) of LACIPRules, 1973.
(c) Yes. PIU value is widely used in the Banks as basis for assessmentto determine value of agri. land to be accepted as security for providing agri.loans to farmers in all areas throughout Pakistan where Record of Rights isavailable.
(d) No.
(e) Yes. The proposal for enhancement of value of PIU is underconsideration in this Ministry.
@94. *Ms. Shamim Ara Panhwar:
Will the Minister for Economic Affairs be pleased to state:
(a) the amount of loan taken from the Asian Development Bank bythe incumbent Government; and
(b) the purpose for which the above said loan was taken?
Minister for Economic Affairs (Makhdoom Khusro Bukhtiar): (a)During the term of incumbent government (18th August 2018 – 30th December2020), ADB has disbursed US$ 4,357 Million under various project andprogram loans. Breakdown is as follows:
i. US$ 1,457 Million has been disbursed for project financing.ii. US$ 2,900 Million has been disbursed under program loans.
(b) ADB’s support primarily intends to finance projects in prioritysectors including energy, road & transport, agriculture, urban infrastructure,social protection, public-private partnerships and disaster management. ADB’sprogram loans are meant for budgetary support and structural reforms in theareas of energy, trade & competitiveness and capital markets.
________________________________________________________@ Transferred from Finance Division.
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95. *Ms. Naureen Farooq Ibrahim:
Will the Minister for Commerce be pleased to state:
(a) the total loss faced by the domestic industry due topandemic Corona Virus (Covid-19) and the steps taken or beingtaken to control the same;
(b) whether the Pakistan has imported the masks, ventilators andother equipments relating to Health;
(c) if so, the detail of impact on the domestic economy by suchimports?
Reply not received.
96. *Mr. Saad Waseem:
Will the Minister In-charge of the Prime Minister’s Office be pleasedto state:
(a) whether it is a fact that the incumbent Prime Minister hasconstituted number of Task Forces to revamp different publicsector entities;
(b) if so, members of each Task Force alongwith expertise of eachmember of such Task Forces in the relevant field;
(c) the terms and reference of each Task Force;
(d) the mandate of the each Task Force;
(e) whether such Task Forces were given a time frame for givingtheir reports; if so, the details thereof;
(f) expenditure incurred upon each of above Task Force so far;
(g) whether each of above Task Force have given its report to theGovernment; if so, the details thereof; and
(h) steps being taken by the Prime Minister’s Office in light of therecommendation thereof?
Transferred to Cabinet Division for answer on Next Rota Day.
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97. *Ch. Muhammad Hamid Hameed:
Will the Minister for Finance and Revenue be pleased to state:
(a) being a Custodian of Dam Fund established through HonorableSupreme Court of Pakistan; if so, the detail of collection of damfunds, which are collected through different cellular phonecompanies, Pakistan Railways in its tickets and by other meansperiodically reconcile; and
(b) is there any amount withdrawn from the funds since its creation;if so, the details thereof alongwith purpose thereof?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)In pursuance of the Honorable Supreme Court of Pakistan, SBP has established“Supreme Court of Pakistan and Prime Minister of Pakistan Diamer-Bhasha andMohmand Dam Fund” account for raising funds for the construction of DiamerBhasha and Mohmand Dam. The Supreme of Court Pakistan is the custodian ofthe Fund while SBP maintains the bank accounts of the Fund as banker to theGovernment. As of November 17, 2020, an amount of Rs. 11,250,487,205/-asdonations/contributions while an amount of Rs. 1,708,316,344/- as profit oninvestments of the Dams Fund have been received in the Fund Account. Further,out of the aforesaid total donations/contribution, following amounts have beendeposited by the Telecom / Cellular Companies as of November 17, 2020:——————————————————————————————
Cellular Company Amount Collected (Rs.)——————————————————————————————
——————————————————————————————Furthermore, Pakistan Railways has deposited an amount of
Rs. 17,603,883/- in Dam Fund Account with respect to donation collectedthrough sale of train tickets.
(b) So far no amount has been withdrawn from the Dams Fund accountsmaintained with SBP. As per directives of the Honorable Court vide orderJuly 4, 2018, the funds shall only be released from the Fund account based onthe directives of the Honorable Supreme Court.
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98. *Shazia Marri:
Will the Minister for Finance and Revenue be pleased to state:
(a) the year-wise exact amount of funds, which were required totransfer to each province and other entity in light of NFC Award,and other law statues during the last two financial yearsincluding the current financial year;
(b) whether such amount of funds was in light of aforesaid statues;
(c) if not, the reasons thereof;
(d) what steps are being taken by the Government to transferoutstanding amount of funds, pending with the FederalGovernment at present against the aforesaid years to theprovinces; and
(e) what further steps are being taken to ensure timely transfer offunds in future to provinces and other entities thereof?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)Under Articless 160 (NFC Award) and 161 (Straight Transfers) of theConstitution, the Finance Division transfer funds to Provinces. Theyear-wise exact amount of funds transferred during the last two years and
current financial year upto 17th November, 2020 are as follows:
(Rs. in billion)———————————————————————————————————————Component Punjab Sindh KP Balochistan Total———————————————————————————————————————
(d) Based on reporting by FBR and Petroleum Division, funds aretransferred to the provinces fortnightly. No outstanding amount is pendingagainst the Federal Government.
(e) Federal Government is already transferring the funds to Provinces,timely, therefore no further measures are required to be taken in this regard.
99. *Mr. Mohsin Dawar:
Will the Minister for Commerce be pleased to state the amount ofimports and exports with Afghanistan during the last ten years?
Minister for Commerce: The amount of exports and imports withAfghanistan during the last ten (10) years are as under:
Trade With Afghanistan during last ten years———————————————————————————————————————
Value in Million US$———————————————————————————————————————
Years Exports Imports———————————————————————————————————————
Will the Minister for Commerce be pleased to state:
(a) the steps being taken by the Government to enhance trade withthe Arab countries; and
(b) the complete detail of steps being taken to export poultryproduction and beef in particular?
Minister for Commerce: (a) (I) Pakistan and Middle East share deep
rooted and historical ties. Arab Countries have remained a major market forPakistani exports. Details of Pakistan’s trade with Arab countries can be seenin the Supplementary Material. Government of Pakistan has taken variousinitiatives for trade enhancement with the Middle East; details of these initiativesare as follows:
Commercial Presence:
Ministry of Commerce has upgraded the post of CommercialSecretary (BS-18) to Minister (Trade & Investment) (BS-20) Riyadhand notified him as cluster head for Middle East Region. This willhelp in expanding bilateral commercial relations between Pakistanand Kingdom of Saudi Arabia. Similarly, new commercial sectionhas been established in Amman, Jordan with the objective to improvetrade ties with a non-GCC member country in the region.
To enhance trade with Arab countries in Africa, under “Look AfricaPolicy” of Ministry of Commerce, two new Commercial Sections inEgypt and Algeria have been opened and made operational in theyear 2020, in addition to already existing Commercial Section inMorocco. Another Commercial Section in Sudan has been establishedand will be made operational soon, as the officer posted there isfulfilling pre-departure formalities.
The officers posted in Algeria, Egypt, Morocco and Sudan havebeen accredited the rest of the Arab countries in Africa, in order tomaintain and enhance economic engagement with these countries.
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Trade Diplomacy/Institutional Mechanism:
The Ministry of Commerce and Trade and Investment Officers inthe Middle Eastern region are focusing on the following:
Reviving & establishing forums like Joint Working Groups and JointTrade Committees on Trade & Investments to provide a platform toboth sides to discuss trade related opportunities and issues including;but not limited to, tariff and non-tariff barriers, sanitary &phytosanitary issues and other allied issues.
In this regard, first session of Pakistan-Qatar Joint Working Groupon Trade & Investment is expected to be held soon. During themeeting, both sides will negotiate a Trade & Economic CooperationAgreement (TECA) which could potentially allow Pakistan greatermarket access into Qatar.
Ministry of Commerce organized a Pakistan-Egypt Trade Conferencein Islamabad on 15th-16th October, 2019. It was the first of a seriesof such conferences planned with African countries under the LookAfrica Policy Initiative of the Ministry of Commerce. Ministry ofCommerce and Egyptian Commercial Service signed a Memorandumof Understanding (MoU) for the establishment of a Pakistan - EgyptJoint Working Group (JWG) on trade during the conference. Firstmeeting of the JWG on Trade was held on the sidelines of the TradeConference.
A draft MoU for establishment of Joint Trade Committee withMorocco has been shared with Moroccan side. Two rounds ofnegotiations on PTA with Tunisia have taken place. 3rd round wasexpected to be held in March/April 2020, but could not be held dueto Covid-19 pandemic.
Ministry of Commerce in collaboration with Trade DevelopmentAuthority of Pakistan and Ministry of Foreign Affairs organizedPakistan-Africa Trade Development Conference in Nairobi. Kenyaon 30th & 31st January 2020, Delegations from Algeria, Egypt,Morocco, Tunisia, Sudan, Somalia and Djibouti were also invitedand participated in the Conference.
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Pakistan entered into negotiations with GCC for conclusion of FreeTrade Agreement (FTA). Last round of negotiations was held in 2008.GCC Secretariat has linked the FTA with anti-dumping dutiesimposed by Pakistan on BoPP films imported from Middle EasternCountries. The Trade Minister in Riyadh is making efforts to revivethe negotiations.
Ministry of Commerce, in collaboration with Trade DevelopmentAuthority of Pakistan, organized 1st Pakistan-Africa TradeDevelopment. Conference in Nairobi, Kenya on 30th & 31st January 2020.High level delegations from Algeria, Egypt, Tunisia, Morocco. Sudanand Somalia, comprising of both public and private sector, participatedin the Conference.
(II) Trade Promotion Activities:
Efforts are underway to open branches of Pakistan retail/chain storesin Saudi Arabia.
Steps are being made to increase export of non-traditional Goods.Pakistan Software Houses Association (PASHA) has been engagedto arrange an exhibition in IT sector in 2021. Around 40 companiesare expected to participate. Similar efforts are underway to increaseIT and IT enabled services exports to Jordan.
Engineering Companies are being approached with the help of TDAPto work with Saudi companies under Joint Venture models.
On 10th March 2019, a Pakistan-Qatar Trade & InvestmentConference was organized which was attended by the Advisor onCommerce and Chairman Board of Investment. They wereaccompanied by a large business delegation. Qatar’s Minister ofCommerce & Industry Mr. Ali bin Ahmed Al-Kuwari also attendedthe Conference. The Conference was successful in achieving itsobjective of showcasing Pakistan as an investment destination ofchoice for the Qatari investors and tangible progress was made withrespect to investment-related transactions during the Business-to-Business meetings held on the side-lines of the Conference.
Commercial Section in Jordan is working with large chain stores likeCarrefour, Yasir mall, Cozmo, Safeway, etc. with the objective topersuade them to import from Pakistan.
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Ministry of Commerce is currently in the process of formulating sectorspecific strategies to enhance exports of Pharmaceutical, Surgicalinstruments & Engineering Goods to Africa, including Arab countriesof Africa.
(III) Webinars:
Trade Officers in collaboration with Trade Development Authority ofPakistan (TDAP) are going to hold six webinars from December 2020to February 2021 on various trade related sectors includingpharmaceutical, fisheries, information technology, dates etc. A webinarfor construction sector was organized on 27th November, 2020 bythe Qatar Mission alongwith TDAP.
Trade Mission, Riyadh in collaboration with TDAP, PASHA andPSEB organized a webinar on potential of IT/Digital Technology inthe Middle East Market on 9th December, 2020.
TDAP in collaboration with our Trade Missions at Saudi Arabiaorganized a Mango show at Riyadh and Jeddah in July/August 2020.
To familiarize the business community of Pakistan aboutPharmaceutical registration and other requirements in place in Egypt,TIA Cairo has organized a webinar on Pharmaceutical sector, inwhich representatives of relevant Pharmaceutical authorities in Egyptgave presentations.
TIA Cairo has also arranged a webinar on textiles & apparel sector,with focus on high-end textiles, between the prominent business figuresof Pakistan & Egypt.
(b) Pakistan currently exports US $ 261.49 million of meat andUS $ 0.05 million of Poultry to most of the Arab nations. Pakistani meat andpoultry are available in major chain stores in Qatar, Kuwait and KSA. Fulfillingstandards and certification needs for export of meat and poultry products to MiddleEastern countries is a major challenge. Ministry of Commerce, Trade & InvestmentOfficers and Trade Development Authority of Pakistan are working togetherovercome these challenges through different activities:
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(I) Steps taken to promote Meat and Poultry Exports in the ArabNations:
Registration of the Pakistani meat companies with the Saudi Arabia,UAE and Qatar had been a long due issue which hindered the exportsof meat to these countries. To resolve this issue, our commercialsections made concerted efforts to get Pakistani exporters registeredwith the regulatory authorities of these countries.
Saudi Food & Drug Authority (SFDA) has introduced newrequirements of halal certification for export of meat/beef. Slaughterhouses and Halal Certification Bodies (HCBs) in Pakistan are beingsensitized with the new criteria and one (1) company, M/s InternationalHalal Certification Pvt. Ltd. (IHC), has been registered with SFDAwith the assistance of Trade Mission in Riyadh. Other companiesare in the process of getting themselves registered with SFDA.
There is a potential market for export of beef to Jordan, however,due to non-registration of Pakistani slaughter houses with the Ministryof Agriculture of Jordan, presently Pakistan is unable to export toJordan. Commercial Section in Jordan is working with the concerneddepartments to get Pakistani slaughter houses registered with theirMinistry.
Commercial Section in KSA and Qatar are working to actualize thepotential of eggs export from Pakistan to these countries.
Egypt is a major importer of meat; however, Egyptian governmentdoes not recognize Halal standards of other countries and requirescertification/recognition from Egyptian Halal Standard i.e., ISEG. OurTrade & Investment Attaché in Cairo, Egypt is engaged in creatinglinkages between Egyptian Halal Authorities, MNFS&R and majorexporters of meat from Pakistan to get the companies inspected andrecognized by Egyptian authorities.
(II) Trade Exhibitions/ Fairs& Webinars:
TDAP organized participation of 8 companies in the Food Exhibitionheld in Jeddah, Saudi Arabia in October 2019.
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TDAP organized participation of 48 companies in Gulf Food inFebruary 2020 at UAE, Dubai to promote exports of agro foodproducts. The companies were able to secure orders from participants.
TDAP in liaison with the Commercial Section at Jeddah Saudi Arabiaorganized a Webinar on How to Increase Meat Exports toSaudi Arabia in compliance with the Registration of Pakistani HalalCertifying Bodies and SFDA (Saudi Food Drug Authority) on 8thOctober, 2020. The webinar was attended by the officials of PakistanNational Accreditation Council, Islamabad, Animal QuarantineDepartment Karachi, Halal Certifying Bodies and Exporters of Meat.
Trade Development Authority of Pakistan has ensured participationof Pakistani companies and businesses in trade fairs and exhibitionsespecially related to Agro-Food and construction material sectors inQatar.
101. *Mr. Ali Gohar Khan:
Will the Minister for Commerce be pleased to state the steps beingtaken by the Government to increase exports of textile products?
Minister for Commerce: Despite the COVID-19 situation across the
globe, the textile exports have increased by 3.78% during the first four months i.e.July-October 2020-21 as compared to corresponding period of the perviousyear.
The Federal Government has estended verious facilitations to thetextiles value chain in order to boost textile exports.
Gas price has been rationalized at Rs. 786/mmbtu for export-orientedsectors including textiles.
RLNG has been rationalized at $6.5/mmbtu for export-orientedsectors including textiles.
Electricity was provided at US cents 7.5/kWh for July-August 2020and at US cents 9/kWh for rest of the financial year 2020-21 toexport oriented sectors including textiles.
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Regulatory duty/Custom Duty and Additional Custom Duty has beenwithdrawn for imported cotton with effect from Junuary 15th, 2020.
Government has relesed around Rs. 51 billion during 2019-20 andRs. 46 billion during 2018-19 in Duty Drawback of various schemesof Taxtiles Policy and PM Package of Incentives.
Mark up on Long-Term Financing Facility (LTFF) has been continuedat 5%.
Mark up on Export Finance Scheme (EFS) has been continuedat 3%.
Duty free import of textile machinery has been continued.
Withdrawal of Additional Customs Duty (ACD) and Regulatory Duty(RD) on 164 textile raw materials and semi-processed raw materialsto incourange product diversification.
Further, Taxtiles and Apparel Ploicy 2020-25 has been formulated andwith be submitted for the approval of competent forum.
102. *Mr. James Iqbal:
Will the Minister for Planning, Development and Special Initiativesbe pleased to refer to the Starred Question No.162 replied on23-07-2020 and to state the number of persons which are living thelife of poverty in the country at present?
Minister for Planning, Development and Special InitiativesMr. Asad Umar): As per latest released available number estimated fromHIES 2015-16, 24.3 percent of Population is living below poverty linein country.
The last survey of HIES was conducted in 2018-19 by the PakistanBureau of Statistics (PBS). Ministry of PD&SI has constituted committee inSeptember 2020 for estimation of new numbers, however new number basedon 2018-2019 are not yet finalized.
103. *Syed Hussain Tariq:
Will the Minister for Commerce be pleased to state:
(a) the impact of 2nd phase of Free China-Pakistan TradeAgreement on Industry of the country; and
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(b) what steps are being taken by the Government to mitigate suchimpact; if it is found negative on the indigenous industries?
Minister for Commerce: (a) The implementation of 2nd phase of the
China-Pakistan Free Trade Agreement from 1st January, 2020 is a significantfeat for Pakistan. In 2nd phase, Pakistan has gained immediate duty free marketaccess on 1471 tariff lines including top priority 313 exports items (list of 313items is attached), in the Chinese market. These lines/ cover 91.3% ofPakistan’s export to China. In response, Pakistan has liberalized only 685tariff lines for China in 2nd phase. These newly liberalized items for Chinainclude raw materials and intermediaries used in different manufacturingprocesses. These lines cover $650-$700 million worth of Pakistan’s importfrom China. It is early to say about any possible impact of 2nd phase on theindustry of the country as soon after its implementation, Covid-19 hit Chinaand the world. As a result, the Chinese economy slowed down and Pakistanexports and imports to and from China were declined. The assessment ofpossible impact would be based upon the situation of Covid-19 in China aswell as in Pakistan, in future. However,it goes without saying that 2nd phaseof the China-Pakistan Free Trade Agreement, prime facie, would be helpfulfor Pakistani industry in importing raw materials at lower cost from China andwhich would ultimately complement our exports competiveness in the worldmarket.
(b) As mentioned above, it would be too early to assess any possibleimpact of 2nd phase of the China-Pakistan Free Trade Agreement on thelocal industry. However, prior to the signing of Phase-II of the Free TradeAgreement with China, the Ministry of Commerce has taken into account theinterests of the Pakistani industrialist through substantive consultation processwith different chambers and trade associations. Based on these consultations,the following steps have been taken to mitigate any possible negative impactof 2nd phase on the indigenous industry;
All sensitive sectors have been protected and are not subject to dutyreduction.
Increase in the protected list of Pakistan from 10% to 25% thatcome around 1760 tariff lines.
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Strengthened Safeguard Mechanism to protect domestic productsagainst surge in Chinese imports.
(Annexure has been placed in the National Assembly Library)
104. *Ms. Nusrat Wahid:
Will the Minister for Finance and Revenue be pleased to state thesteps being taken by the present Government to encourage tradethrough Karachi, Muhammad Bin Qasim Port and Gwadar Portindicating also the details of available facilities being provided byFBR to the traders at the above mentioned ports?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh):
Facilities provided to importers and exporter for smooth functioning ofthe import/export process.
Pakistan Customs is serving as guardian on Pakistan’s economicfrontiers as well as major revenue collecting agency. It is responsible to carryout implementation of several Acts and Regulations. Pakistan Customs ishandling the legitimate annual trade worth around US$ 80 billion approximately,at border crossing, customs stations and sea ports. In terms of TEUs, thevolume of clearance of imports/exports and transit cargo was approximatelyaround 2 million TEUs in FY 2019-20; whereas its contribution to NationalExchequer is around 43% of the total FBR’s revenue in FY 2019-20. However,all exports are exempt from duty & taxes.
For enhanced trade facilitation, Pakistan Customs has developedadvanced home grown automated import and export clearance system i.e.WeBOC system, which is operational at all customs stations, sea ports, airportsand dry-ports including Karachi ports, Muhammad Bin Qasim port as well asGwadar port. Besides, erstwhile One-Customs clearance system is alsohandling, a small chunk of total import volume (because almost 96% of totalimport cargo is cleared through automated system of WeBOC). In this regard,it is important to mention that 75% of the export cargo and 45% of the importcargo are cleared through the green-channel to facilitate the Export-Oriented-Industrial-Units, and to ensure production process. The salient features ofWeBOC are as under:
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Electronic Filing
Paperless environment
24 x 7 Operations
End-to-end integration
Post-Clearance Audit based Controls
Risk Management System — Speedy Clearance (around 45%
imports and 75% exports in green channel)
Minimal Physical contact between trader and customs
Efficient Management Information System
Maintains logs of all actions taken by Customs officials
Concessionary interventions for the facilitation of importers:
Fifth Schedule was added to the Customs Act, 1969 in FY2014-2015, to provide concessions/exemptions of customs duty on import ofsocially sensitive and essential goods. It consists of seven parts which primarilydeal with plant, machinery & equipment, raw materials, pharmaceuticalingredients, raw materials pertaining to textile, poultry, automotive sectors etc.and offer exemptions/concessionary rates depending on the nature of theimported items.
Chapter 99 of Pakistan Customs Tariff provides duty exemption onimports of Privileged Personnel /Organizations, Relief Goods, charitable &educational institutions and hospitals, export processing zones etc. DifferentSROs like 655(I)/2006, 656(I)/2006 (for OEMs) 678(I)/2004 (concessionof duty / taxes for Exploration & Production Companies), 565(I)/2006 (Surveybased concessions), 642(I)/2006 (Exemption of CD for CPEC)etc. are alsoin field, to grant targeted incentives to priority industries. Besides, multipleFree Trade / Preferential Trade Agreements with China, Sri Lanka, Malaysia,South Asian countries etc. are also in field. Cumulative cost effect of all theabove-mentioned exemption regime is approximately around Rs.205 billion inFY 2019-20, and provide a huge facilitation to trade sector.
Concessionary interventions for the facilitation of exporters:
Over the years, the Government of Pakistan has approved severalexport promotion schemes at the federal and provincial level. Besides, FBR
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has introduced tax-related export — oriented schemes (basically exportpromotion and exemption schemes) which incentivize exports. Traditionally,these schemes were limited to some major zero-rated sectors, however,realization has grown that a level playing field should be created where similarschemes(most notably, Duty and Tax Remission of Exports Scheme (DTRE),Manufacturing under Bonds Scheme, Export Oriented Units (EOUs) scheme,Export Promotion Zones (EPZs) scheme etc.) should be available to potentialand new export sectors.
A significant rise in the share of duty free import value during the firstfour months of the current financial year is due to the fact that a substantial rise(i.e. 41%) as compared to previous financial year has been witnessed in theimport value of the items (increase from Rs. 126 billion to Rs. 176. billion )covered under various export-oriented exemptionary schemes, meant for thefacilitation of the manufacturer-cum-exporters, including DTRE scheme,Manufacturing under Bonds scheme, EPZ etc; which means expansion in dutyfree import economy witnessed during 1st quarter is being translated intoexport-oriented industrial growth.
105. Referred to Power Division for acceptance.
106. *Jam Abdul Karim Bijar:
Will the Minister for Finance and Revenue be pleased to state:
(a) when was the current pay and Pension Committee constitutedand the time by which committee have to submitrecommendations for the financial year, 2020-21;
(b) whether the committee has submitted its recommendation withinthe stipulated time for the said year; if so, details thereof;
(c) whether it is a fact that Government has failed to act upon suchrecommendations; if so, the reasons thereof;
(d) whether committee did not submit its recommendation for theaforesaid year; if so, the reasons thereof; and
(e) what steps are being taken to increase the pay and pension ofGovernment employees keeping in mind, the increasing ratio ofinflation in the country?
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Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)The Federal Government constituted Pay and Pension Commission inApril, 2020 which was required to submit its recommendations within six (06)months. The former Chairman of the Commission, Mr. Abdul Wajid Rana anda number of members of the Commission regretted to continue. The Pay &Pension Commission has been reconstituted and notified on 13-11.2020. TheCommission is expected to finalize its recommendations soon.
(b) The Commission could not start its work due to Covid-19Pandemic and resignation of its Chairman as stated above.
(c) No recommendations were received as the Commission couldnot start its work till Oct., 2020.
(d) The Commission could not start its work due to Covid-19Pandemic and resignation of its Chairman as stated above.
(e) Federal Government has constituted the Pay and PensionCommission in November, 2020 to give recommendations regarding revisionin Pay & Pension of Government employees. The Commission has started itswork. The recommendations of the Commission when finalized shall besubmitted to the Federal Government for consideration.
Will the Minister In-charge of the Prime Minister’s Office be pleasedto state whether it is a fact that Youth Task Force of Quetta has notbeen notified so far?
Transferred to Cabinet Division for answer on Next Rota Day.
36. Sheikh Rohale Asghar:
Will the Minister for Finance and Revenue be pleased to state whetherthere is any proposal under consideration of the Government toincrease in the basic pay of Government employees?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): TheGovernment has constituted Pay & Pension Commission to review the pay of theGovernment employees and give recommendations. Any decision in this regardshall be taken on receipt of its recommendations.
37. Ms. Tahira Aurangzeb:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether there is any proposal under consideration of theGovernment to conduct inquiry regarding obtaining loans andtheir use during the last three years; if so, the time by whichsame will be conducted; and
(b) the steps being taken by the Government to make the economyself sufficient?
2
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)Presently there is no proposal to constitute an inquiry committee regarding loansand their use in the last three years. However, Government submits a “Debt PolicyStatement” to the National Assembly detailing the amount of loans obtained andtheir usage. These statements for year FY-2018, and FY-2019 have already beensubmitted to the National Assembly whereas, statement for FY-2020 will bepresented by end of Jan 2021 as per the requirement of Fiscal ResponsibilityDebt Limitation Act 2005.
(b) The Government is taking necessary steps to increase revenuemobilization, reduce expenditures and reform Public Sector Enterprises (PSEs).These measures are expected to bring stability leading to gradual reduction in thefiscal deficit over next few years and subsequently would reduce the country’sreliance on additional debt. Government is committed to reduce the fiscal deficitfrom 8-9 percent to 3-4 percent of GDP over the medium term, which in-turn isexpected to decrease the debt burden of the country.
38. Ms. Tahira Aurangzeb:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether it is a fact that the volume of internal and externaldebts on the country is rising; if so, the reasons thereof; and
(b) the department and year-wise usage of the said loans taken bythe Government during the previous three years to till date?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)The internal and external debt increased in absolute terms primarily due to:
Financing of the primary deficit;
Payment of interest on debts;
Devaluation of Pak Rupee against US Dollar results in increase inexternal debt value when translated into Pak Rupees;
Government borrowed to build its cash buffer to meet contingencies.
(b) Year-wise and source-wise increase in debts is provided atAnnexure “I”.
——————————————————————————————39. Mr. Gul Dad Khan:
Will the Minister for Finance and Revenue be pleased to state:
(a) whether the Government intends to grant permission tothe Federal Government employees who wanted to make theirG.P Fund account interest free from the first day of theiremployment;
(b) if so, the time by which it would be implemented; if not, thereasons thereof?
Minister for Finance and Revenue (Dr. Abdul Hafeez Shaikh): (a)The rules already provide the option to an employee, to choose interest bearing orinterest free GP Fund Account. According to the GP Fund Rule 14(5), “interestshall not be credited to the account of a Muslim subscriber if he informs the AccountOfficer that he does not wish to receive it; but if he subsequently asks for interest,it shall be credited with effect from the first day of the year in which he asks for it”.A Government Servant can make his account interest free at any time, however,this shall not take effect retrospectively.
(b) Provision already exists as stated above.
40. Mr. Gul Dad Khan:
Will the Minister for Commerce be pleased to state:
4
(a) whether it is a fact that Intellectual Property Organization (IPO)has taken action to curb the menace of pirated audio visualstuff;
(b) if so, its details of the last five years?
Minister for Commerce: (a) Intellectual Property Organization ofPakistan (IPO-Pakistan) under its legal framework IPO Act 2012 has specificcoordinating role with designated agencies for intellectual property rightsenforcement including curbing the menace of pirated audio visual stuff. Under itslegal purview, the Organization has taken a number of actions including the followings:
a. Strengthened liaison by formulation of ten IPR enforcementCoordination Committees Comprising of IPO-Pakistan, Customs,FIA, Police, PEMRA and other agencies across Pakistan and holdingtheir meeting on regular intervals;
b. Collection of data of actions to counter piracy and counterfeitingfrom these agencies regularly;
c. Addressing complaints received from IP right owners and forwardingto the concerned agencies for actions;
d. Signed MoU with FBR to share data of IPR rights to interdictviolations effectively and strengthened border measures;
e. Conducts awareness activities and training sessions for capacitybuilding of the designated enforcement agencies to effectively addressIPR violations in the country;
f. Coordination also with Intellectual Property Courts/Tribunals for theircapacity building to understand complex IPR/copyright issuesincluding pirated audio visual stuff;
g. IPO-Pakistan has established Anti-Piracy and Anti-CounterfeitingCells at Islamabad, Karachi and Lahore Offices to address problemsof piracy (including pirated audio visual stuff) and counterfeiting beingfaced by right-holders in the market (https://ipo.gov.pk/node/128);
(b) Details of data received in last five years from the designated agenciesis attached herewith as Annexes-A & B.
(Annexures have been placed in the National Assembly Library)
