The government has decided to introduce alternate fiscal schemes targeting the profits generated by banks through investments in government securities. This decision occurs against the backdrop of a reevaluation of the fiscal framework of the financial sector, with particular emphasis on the Advance to advance-to-deposit ratio (ADR).
Following the directives issued by the Prime Minister’s office, the government has constituted a committee of experts tasked with reviewing and analyzing the legal dimensions of the programs and policies about fiscal measures in ADR. This committee will be pivotal in addressing the prevailing issues related to taxation within the nation, particularly in the financial sector.
A notification issued by the Federal Board of Revenue (FBR) verifies that a committee has been established following the directives from the Prime Minister’s Office U.O. The primary objective of the committee is to address the persistent issues related to ADR within the banking sector.
The newly established committee will be presided over by the Deputy Prime Minister, who will assume the role of Convener. The committee comprises the Minister for Finance and Revenue, the Minister of Law, the Minister of State for Finance and Revenue, the Attorney General of Pakistan, the Finance Secretary, the Chairman of the Federal Board of Revenue, the Governor of the State Bank of Pakistan, and Ms. Asma Hamid.
The Terms of Reference (ToRs) of the committee would be as under: