National Assembly panel raises questions over the transparency of over billion loans under the concessionary Temporary Economic Refinance Facility TERF to some businesses during the Covid pandemic . Finance Minister Ishaq Dar told the Standing Committee on Finance and Revenue that there was no more room for any sort of tax amnesty because of the ongoing standby arrangement with the International Monetary Fund IMF .
Mr Dar also directed the Federal Board of Revenue FBR to address reservations of the real estate sector when applying a new tax on deemed rental on more than one immovable asset of taxpayers . The State Bank of Pakistan SBP governor Jameel Ahmad reported that out of the total projects for which the loans were extended were fully operational partially operational and the remaining were expected to be operational by June .
He said the TERF initiative would create around jobs and generate Rsbn in revenue in the upcoming years through export earnings and import substitutions . The committee would like to know how many factories had been set up and how much industrial production increased following the subsidised loan scheme .
The committees curiosity was piqued over potential abnormalities that could see loans being redirected towards real estate investments rather than their prescribed purpose of boosting exports by installing industrial machinery. Mr Ahmad said the financing under TERF was exclusively against letters of credit LCs or irrevocable Letters of Credit ILCs .
The central bank governor said the SBP was strictly for the loans was exclusively . He emphasised that the funds were . The SBP said the loans are … and was exclusively for the . loans were … to be used to the loans . The delegation of the . Loans were .
.. for the … the loans to the . projects for . the loans. were exclusively against Letters of creditLCs or . to . the .
