ISLAMABAD: The National Assembly Standing Committee on National Food Security and Research has instructed the Federal Board of Revenue (FBR) to consult the International Monetary Fund (IMF) if Pakistan’s current tax policies fail to generate sufficient revenue and continue negatively impacting the cotton sector.

These directions were given during a recent meeting, highlighting concerns about the ongoing challenges faced by the cotton industry due to the existing tax framework. The Ministry of National Food Security and Research was also tasked with organizing consultative meetings with relevant stakeholders, including the Ministry of Law and Justice.

This follows previous instructions to provide an update on the resolution of issues affecting the agriculture sector, specifically concerning recommendations sent for addressing these challenges. Additionally, the Ministry of National Food Security and Research has been directed to formally correspond with the Ministry of Law and Justice regarding "The Pakistan Animal Science Council Bill, 2024." The letter should seek clarification on whether the Bill falls under the Federation’s jurisdiction as per Article 144 of the Constitution and whether Cabinet approval is necessary for a Private Member Bill. In relation to the cotton sector, the FBR has been asked to submit a detailed report covering several critical aspects.

 This includes data on sales tax collected and refunded over the past five years, import and export statistics for cotton, potential revenue losses resulting from the current tax system, a financial and economic analysis of the sector, and updates on the implementation of track and trace and RFID systems to control the production of hides.

These steps reflect the committee’s concern about the challenges faced by the cotton industry and the broader agricultural sector, signaling a need for comprehensive policy review and potential international consultation.