ISLAMABAD, April 6: The Securities and Exchange Commission of Pakistan and the Central Board of Revenue have agreed to work in close coordination in the interests of the growth of a vibrant and efficient corporate sector in Pakistan.

The issue was discussed in a meeting held between CBR chairman Abdullah Yusuf and SECP chairman Dr Tariq Hassan here, says a press release. The CBR chairman was apprised of the structure and mandate of the SECP. Dr Hassan while describing the broad tax objectives pursued by the SECP, highlighted major issues and recommendations for progressive development of companies.

The two chairmen agreed that the existing framework for taxpayers should be rationalized and the objectives of tax policy be clearly defined to encourage corporatization and investment in the country.

The two agencies, the CBR chief remarked, must closely coordinate their activities to achieve common objectives in the overall interest of Pakistan. Appreciating the SECP's efforts towards corporatization of the economy, Mr Yusuf said: "Corporatization would lead to better reporting mechanisms, less tax evasion as well as documentation of the economy."

He also stressed the need for providing appropriate incentives to encourage the service sector and engender an environment conducive to investment. While acknowledging the cooperation which the CBR had been extending to the SECP, its chairman proposed that the CBR and the SECP collaborate to share their collective knowledge and experience and work together to resolve the issues faced by the corporate sector.

He further suggested that a task force be set up to identify the impediments to the growth of the corporate sector and give recommendations in consultation with stakeholders. The CBR chairman observed that a reform programme had been initiated in the CBR to facilitate and educate taxpayers and invited the SECP chief to visit the CBR head office.