SBP DIARY On SATURDAY

SBP Diary

On Saturday, 17th Jan 2009

SBP to be reformed, made more autonomous: NA told

ISLAMABAD: The National Assembly (NA) on Friday was told that the government would bring reforms in State Bank of Pakistan to make it more autonomous so that it takes measures to streamline the national economy. Replying to a question, State Minister for Finance and Revenue Hina Rabbani Khar said though presently too, the central bank is functioning autonomously, there is always room for reforms and improvements, which are being made by the government. She said that efforts were underway to increase the tax to GDP ratio including broadening and expanding the tax base, strengthening of enforcements, withdrawal of unnecessary exemptions, bringing in entire sectors such as retail and services under the tax net and prevention of revenue leakage through automation and re-engineering. To a question, the state minister said presently there is no proposal under consideration to restore six per cent payment to garments exporters under the head of research and development. She also added that there is no proposal under consideration to reduce GST on electricity bills. Khar told the House that deposits received from the public at the National Savings Centre are credited to Public Accounts and form part of domestic debt utilised for budgetary purposes, not for profit earning. She said yet there is no proposal to run National Saving Schemes under the Islamic banking system. However, she assured that the proposal would be considered if it is forwarded through the Finance Committee.