Islamabad, 27 July 2022 (TDI): Foreign Minister of Pakistan, Bilawal Bhutto Zardari, met with the Finance and Revenue Minister of Pakistan, Miftah Ismail on Tuesday.
Federal Minister for Finance and Revenue Mr. Miftah Ismail held a meeting with Foreign Minister of Pakistan Mr. Bilawal Bhutto Zardari at Finance Division. pic.twitter.com/kEo64opszl
— Ministry of Finance (@FinMinistryPak) July 26, 2022
The two Ministers met to discuss the country’s current political and economic situation, as well as various financial issues concerning Pakistani Missions abroad and the Ministry of Foreign Affairs.
The Finance Minister praised the role of Pakistani Missions abroad and assured the Foreign Minister that their financial problems would be resolved, issuing instructions to the relevant authorities in this regard.
Dr. Aisha Ghous Pasha, Minister of State for Finance and Revenue, Rana Afzal, Coordinator to the Prime Minister on Commerce and Industry, Foreign Secretary, Federal Bureau of Revenue Chairman, and senior officers from the Finance Division and the Ministry of Foreign Affairs attended the meeting.
The issue of restoring income tax exemption for Pakistani diplomats posted abroad will be discussed with the IMF, as the government cannot do so without the IMF’s approval,” said Dr. Aisha Pasha, Minister of State for Finance.
She went on to further add that the revival of the IMF program was in the best interests of the country at this time because of the current economic situation.
Bilawal Bhutto on Exemption of income tax on Pakistani Employees Abroad
Bilawal Bhutto pointed out the increase in income tax on the Pakistani employees posted abroad. He added that it would paralyze the premier institution of the state.
Further, he added that it was surprising that instead of granting much-needed upward revision of allowances, there was a significant reduction in the current level of allowance.
Moreover, Pakistani employees posted abroad receive various allowances and benefits for housing, education, and other expenses.
Prior to the budget this year, these allowances were not subject to income tax. However, as part of the IMF agreement, these allowances were taxable income.
Bilawal had requested an immediate halt to the implementation of the tax on allowances and perquisites for employees posted abroad, as well as a revision of the June 19, 2022 memorandum regarding the executive allowance to include Foreign Affairs Ministry officers.
He went on to say that taxing the allowances and prerequisites intended to ensure the “financial solvency of our diplomats and their representational status” would “shift the focus of our personnel abroad” from work to survival.
In conclusion, the tax, according to the Foreign Minister, would affect officers, officials from the ministries of commerce and information, overseas Pakistanis, the Intelligence Bureau, the Federal Investigation Agency, Inter-Service Intelligence (ISI), and the Armed Forces serving in various countries.
