The National Assembly Standing Committee on National Food Security and Research has instructed the Federal Board of Revenue (FBR) to consult the International Monetary Fund (IMF) if current tax policies continue to fall short in generating revenue and harming Pakistan’s cotton industry.
During a recent meeting, the Committee also directed the Ministry of National Food Security and Research to hold consultative discussions with relevant stakeholders, including the Ministry of Law and Justice, to resolve ongoing agricultural sector issues. This includes reviewing the “Pakistan Animal Science Council Bill, 2024” and determining its legal standing under Article 144 of the Constitution.
FBR has been tasked with providing a detailed report on critical cotton sector data, including sales tax collected and refunded in the past five years, import/export statistics, revenue losses due to the tax system, and financial and economic analyses of the sector. Additionally, FBR must update the Committee on the implementation of tracking systems like RFID and the track-and-trace system for production controls.
If these measures reveal ineffective tax policies, FBR is also asked to engage with the Ministry of Commerce and consult with the IMF to explore ways to reverse the negative impact on the cotton sector.
Furthermore, the Ministry of Energy (Power Division) is required to present proposals on providing immediate relief to the agricultural sector from high electricity costs. These proposals will focus on short-term solutions for farmers, especially in the wake of the ongoing cancellation of contracts with Independent Power Producers (IPPs).
The Ministry of Energy is also instructed to present a report on how electricity distribution companies handle over-billing complaints and the actions taken against those responsible. In the next meeting, CEOs of Distribution Companies (Discos) will attend via Zoom to discuss the over-billing issue in detail.
