Senate panel directs govt to renegotiate IMF terms for special economic zones

According to Dawn, a Senate finance subcommittee was told on Tuesday that export processing zones and special economic zones will be phased out nationwide by 2035. The move is tied to a condition under the IMF's Extended Fund Facility, with the stated goal of putting every industry on one tax system. The panel directed the government to renegotiate the matter with the IMF to avoid a possible closure of these zones.

The subcommittee also raised the difficulties exporters face with banking transactions and suggested insurance guarantees as an option where permissible, instead of bank guarantees or cheques. The Federal Board of Revenue assured the panel it would examine and resolve the matter. The committee further recommended facial recognition technology for taxpayers whose fingerprints are faded or impossible to check, with the FBR and NADRA told to coordinate and resolve the issue urgently.

The panel also heard about the National Auto Policy, including measures for electric vehicles, and viability gap funding can support the initial setup of 3,000 EV charging stations nationwide. The Securities and Exchange Commission of Pakistan outlined its digitalisation drive and strict enforcement against illegal share transfers. The panel noted that early market closures affect businesses, particularly after power outages, and that current power supply conditions are tied to RLNG consignment disruptions and load-management steps.