Bankers concerned at rising tax burden

Leading bankers have expressed their serious concern over the rising tax burden on the banking sector. Federal Finance Minister Naveed Qamar held an interactive session with presidents and chief executives of different commercial banks and office bearers of Pakistan Banks Association to discuss the overall economic condition of the country here on Wednesday.
Sources said that issues including tax burden on the banking sector, recovery of loans, permission of union activities and Competition Commission of Pakistan's action against the banks were discussed in the meeting.
Source said performance of the country's economy was discussed in detailed, however, some bankers showed their concerns over the prevalent economic situation and stressed strict and positive measures for long-term economic growth. The bankers also expressed their concern over the restoration of trade unions in the banks and said that government should take serious notice of negative labour union activities in different banks.
The bankers supported the steps taken by the central bank on Tuesday, to arrest the free fall of Pak rupee against US dollar saying that the steps would help to bring down the dollar demand. They said that some fruitful results of the SBP measures have already been witnessed on Wednesday, as Pak rupee has become steady against the dollar.
The bankers emphasised for a new recovery mechanism, under which banks can take action against the defaulters of credit cards and consumer loans. Naveed Qamar informed the bankers that government has already taken some positive steps in the federal budget to improve the overall economic condition, while some measures are in the pipeline.
He said banks should improve their recovery service in an absolute way, in which borrower could not be hurt by the banks. Finance minister urged the bankers to support current economic policies of the government and also sought their co-operation for SBP's current move in stabilising forex trade in the country. The bankers assured their full support for current measures taken by the SBP in order to safe Pak rupee fall against dollar.