Visit of Mr. Shaukat Tarin, Advisor to the PM on Finance & Revenue, to PBA office

Mr Shaukat Tarin, Advisor to the Prime Minister on Finance and Revenue, visited the office of Pakistan Banks’ Association (PBA) in Karachi, on Friday, November 26, 2021 and met its Executive Committee. Mr. Muhammad Aurangzeb, Chairman, PBA, and Mr. Tawfiq Hussain, CEO & Secretary General, PBA, welcomed the Advisor to PBA. 

Mr. Tarin lauded the role of PBA, saying that it has become an increasingly effective and vibrant body.

Matters pertaining to the economy in general and the banking sector in particular were discussed and Mr Tarin emphasized the need for the banks to aggressively grow their deposit base so that the saving rate of the country increases and moves closer to those in countries similar to Pakistan.  On this, PBA pointed out the continuing wide disparity between the lower tax rates on profit/dividends from investment in shares listed on stock market and in units of mutual funds, and the tax rates on profit from bank deposits classified as ‘profit on debt’. Mr Tarin understood this disparity. 

Apart from the need to diversify lending, both geographically and sectorally, Mr Tarin asked the banks to also focus on product innovation.  He specifically asked the Development Financial Institutions to develop and float long term instruments for depositors, which they can on-lend for project finance. 

Talking about Kamyab Pakistan Program, Mr Tarin asked for more banks to participate in the second bidding process.  On Roshan Digital Account, Mr Tarin emphasized the need for banks to also push this offering in markets other than UAE.

In response to PBA’s concern on the huge disparity in tax rates on banks and the tax rate on corporate sector and the continuation of Super Tax on banks, which stands withdrawn from the corporate sector, Mr Tarin understood and agreed with the PBA concern and said that the Government will look into the matter.

Members unable to attend in person joined the meeting via Zoom

In the picture below from left to rightMr. Syed Amir Ali, CEO, BankIslam; Mr. Arif Usmani, CEO, NBP; Mr. Bahauddin Khan, CEO, Pak Oman Investment Company; Mr. Shehzad Dada, CEO, UBL; Mr. Shaukat Tarin, Advisor to the Prime Minister on Finance and Revenue; Mr. Tawfiq Hussain, CEO/SG, PBA; Mr. Masood Raza, Secretary, PBA; Mr. Mohtasham Ashai, President, Soneri Bank; Mr. Ahmed Bozai, COO, Citibank, Pakistan.