ISLAMABAD: As there is no let-up in smuggling of petroleum products, Prime Minister Shehbaz Sharif on Thursday directed the authorities to take stringent measures to address the ongoing issue of petrol smuggling in the country.
The prime minister, during a review meeting to evaluate the country’s economic conditions and the digitization efforts of Federal Board of Revenue (FBR), emphasized the need for stringent measures to combat the smuggling of petroleum products.
He said that as a result of crackdown on smuggled fuel and a significant decrease in petrol and diesel prices, petroleum sales in the country reached its highest level in 25 months in November 2024, totalling 1.58 million tonnes, marking a highly encouraging development.
PM asks FBR, others to deal with smuggling challenge effectively
Sharif directed more strict measures to combat petrol smuggling, noting that the sales of petroleum products in the country had risen by 15 per cent compared to the previous year, which suggests a recovery in the energy market.
He also instructed the quick completion of the video analytics installation in the cement industry. During the meeting, he noted that the FBR’s digitisation is a key milestone in the government’s economic reforms, and its positive effects have already begun to show.
He stated that the results of good policies and timely decisions are starting to materialise, which will prove beneficial for the country’s economy.
The prime minister directed the economic team to finalize essential tasks associated with the digitalization of FBR by December 31, emphasizing that the digitization represents a significant achievement in the government’s comprehensive economic reforms.
The digitisation of FBR will enable a data-driven strategy to boost revenue collection and ensure efficient taxation, he said.
During the briefing, it was revealed that substantial progress has been made, including the completion of video analytics for the sugar industry and the design phase for similar systems in the cement sector.
A mobile application for digital invoicing of small businesses is set to launch by the end of the month, while the full digitisation of the FBR value chain is expected by March 2025.
The prime minister commended the economic team for its efforts, which he noted have started bearing fruit, noting an increase in fiscal space and expressing optimism over the 15 per cent year-on-year growth in petroleum product sales, which have reached a 25-month high.
He stressed data-based strategy to increase revenue and directed to make taxation in the country effective and faster.
Acknowledging the success of recent decisions, he lauded the timely export of sugar, which generated $500 million in foreign exchange. However, he stressed the need for stricter measures against petrol smuggling to further secure revenue streams.
The meeting also highlighted other advancements which include creation of a central assessment unit in Karachi for faceless customs assessments.
The hardware and data centre for Pakistan Revenue Automation Ltd (PRAL) are being upgraded, and a new board has been formed to ensure effective functioning.
Sharif concluded by reiterating the importance of implementing a comprehensive revenue strategy, underscoring the government’s commitment to sustainable economic reforms.
Copyright Business Recorder, 2024
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