December 07, 2024 (MLN): The government has constituted a high-level committee to address the Advances-to-Deposit Ratio (ADR) issues, according to the notification issued by the Revenue Division on the directives from the Prime Minister's Office on Friday.
The committee's Terms of Reference (ToRs) include a thorough review of the existing legal framework governing fiscal measures related to ADR.
It will explore alternative tax schemes targeting bank profits derived from investments in government securities, aiming to ensure equitable revenue generation.
Additionally, the committee is tasked with engaging the banking sector to forge a consensus on potential reforms.
By December 31, 2024, the committee is expected to finalize its recommendations, balancing government revenue objectives with measures to stimulate private-sector lending.
This includes proposing non-fiscal regulatory adjustments to boost advances in the private sector.
The Member (IR-Policy) of the Federal Board of Revenue (FBR) will serve as the committee's secretary, coordinating efforts to ensure the timely submission of the report.
The recommendations may also include necessary legal and regulatory amendments for effective implementation.
The Deputy Prime Minister will serve as the Convener of the Committee, while the Minister for Finance & Revenue, the Law Minister, the Minister of State for Finance & Revenue, the Attorney General of Pakistan, the Finance Secretary, the Chairman of the FBR, the Governor of the State Bank of Pakistan, and Ms. Asma Hamid will be its members.
