Cabinet Approves Tax on Banks, Hajj Policy Amendments, and International Treaties

Islamabad: In a recent meeting chaired by Caretaker Prime Minister Anwaar-ul-Haq, the Federal Cabinet approved significant decisions impacting various sectors. The Cabinet, following the recommendation of the Federal Board of Revenue (FBR), gave the green light to impose a 40 percent tax on windfall profits earned by banks through foreign exchange transactions in 2021 and 2022.

Additionally, amendments to the Hajj Policy 2024 were approved, allowing for the return of unutilized sponsorship schemes quotas to the Saudi Government. The new policy also includes a foolproof monitoring system for financial arrangements by Hajj group organizers and relaxes conditions for pilgrims above 80 years old, permitting them to keep an assistant/helper. Furthermore, a reduction in the hardship Hajj quota was sanctioned, with 50 percent reserved for Pakistani students in Saudi Arabia.

The Cabinet also granted approval for negotiations on Bilateral Investment Treaties with Saudi Arabia and Qatar, as recommended by the Investment Board. The Ministry of Trade proposed the constitution of a committee for hearing appeals against orders of Trade Organizations Regulators, along with exemptions and flexibility in the provisions of Import Policy Order 2022 and Export Policy Order 2022.

Other notable decisions include the inclusion of Democratic Republic of Congo, Malawi, Zambia, Zimbabwe, and Kyrgyz Democrat in the business visa list, removal of names of 18 individuals from the Exit Control List (ECL), and approval of the Jammu and Kashmir State Property Budget for fiscal year 2023-24.

Moreover, the cabinet approved the signing of the Hong Kong International Convention 2009 for the safe and environmentally sound recycling of ships. This move aims to legislate ship recycling in Pakistan, provide training to relevant staff, and ensure the availability of technological instruments for the proper disposal of hazardous wastes/materials during the recycling process.

In a bid to facilitate the Trading Corporation of Pakistan, the cabinet granted exemption from certain regulatory rules for the procurement of 200,000 metric tons of urea from the international market. These decisions reflect the government’s commitment to economic stability, effective governance, and environmental responsibility.