US has not paid war bills to Pak: Report

PAKISTAN has yet to receive any payment against its war bills from Washington while the backlog has touched the $2.10b mark, sources confided to Gulf Times. This gaping fiscal hole is multiplying the budgetary constraints and also adversely affecting the momentum of ongoing war against terrorism, it was learnt. Since 2008, the US has not paid a penny to Pakistan under the head of Coalition Support Fund. However, Finance Minister Shaukat Tarin has said that $349m under the CSF head is in the pipeline while a substantial amount would be reimbursed to Pakistan by March this year. The Minister said that the visa controversy with US has almost been resolved. 'We have asked US top functionaries to reimburse 65 to 70pc immediately of the $1.3b and the payment of the remaining amount be made after the war bills are reconciled, he said, adding, This strategy would provide ease to Pakistan, which is in the middle of the economic miseries. Responding to a question, he said that Capital Value Tax would be changed to Capital Gain Tax on the transaction of the proper ties in the next budget and the existing rate of 4pc CVT on transaction of the property would be changed to a dynamic rate. He said that the government would also impose Capital Gain Tax on Stock Exchange businesses and to this effect the government is going to hold meetings with top functionaries of the bourses next week. However, the sources said that the government has proposed a 10pc Capital Gain Tax on stock exchange transactions. To another question, Tarin said that he is going to have a meeting with the four provincial chief ministers to curb the escalating inflation, which is mainly going up because of hoarding and unscrupulous elements. The government has revived the old system under which the price control committees would monitor the prices with the help of magistrates. However, as far as the supply side of all the commodities is concerned, there stands no shortage as wheat and sugar are available in abundance, their prices are containing the inflation, is purely provincial subject.

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