Cabinet Directs Finance Ministry to Clear Dividends Owed to Chinese Firms

The federal cabinet has instructed the Finance Ministry to clear all dividends owed to Chinese companies operating in Pakistan. It has further asked to guarantee that no taxes are imposed on CPEC Special Economic Zones (SEZs) and to withdraw any such taxes currently being charged, reported Business Recorder. This comes after Planning Minister Ahsan Iqbal briefed the cabinet on issues raised by Chinese firms, in particular security, pending payments to CPEC Independent Power Producers (IPPs), revolving account for CPEC IPPs, the provision of electricity to Rashakai SEZ, and an incentive package for CPEC SEZs. The cabinet urged to clear dividends owed to Chinese firms on priority before upcoming meetings with Chinese officials to convey a positive message. The Power Division, Petroleum Division, Ministry of Finance and Revenue, and Ministry of Planning were instructed to resolve the issue of the revolving fund. Meanwhile, the Finance Ministry was directed to withdraw any taxes imposed in the CPEC SEZs immediately. A special meeting will be held to review progress on preparations for the Prime Minister’s upcoming visit to China.