Imran endorses US proposal of global corporate tax

By: News Desk      Published: 09:23 PM, 13 Jul, 2021
Imran endorses US proposal of global corporate tax

Prime Minister Imran Khan has endorsed the US proposal of minimum global corporate tax to prevent profit shifting and tax evasion.

He was addressing the UN high-level political forum on sustainable development on Tuesday, 24NewsHD TV channel reported.

Imran Khan while welcoming the United States’ proposal also said that the stolen assets of developing countries should be returned unconditionally.

The PM also emphasised that the 14 recommendations of the FACTI Panel deserve to be endorsed and implemented.

He said the world was facing an unprecedented triple challenge including the COVID-19 pandemic; the reversal of economic progress; and the existential threat posed by climate change.

Suggesting some solutions to these challenges, he said the structural and systemic deficiencies of the international financial and trade architecture need to be addressed comprehensively and urgently.

He suggested that universal and affordable access to COVID-19 vaccine was essential to defeat the virus and to revive global trade, investment and growth.

He said the world must ramp up vaccine production, including in the developing countries, and ensure its rapid distribution.

Imran Khan urged that adequate finance must be mobilized to enable the developing countries to meet the triple challenge of COVID recovery, SDG implementation and realization of environmental goals.

He said the high-income countries have been able to inject $17 trillion to stimulate their economies.

“The developing countries, on the other hand, are estimated to need at least $4.3 trillion to recover from the crises and implement the SDGs. They have so far, unfortunately, secured access to less than 5 percent of this amount,” he added.

Once again he emphasized on his last year’s proposal of the creation of a new IMF Special Drawing Rights as an effective way to generate development financing. He also welcomed the agreement to create $650 billion in new SDRs.

The PM expressed a hope that at least $150 billion will be re-allocated to finance sustainable development projects and programmes in developing countries through the IMF, World Bank and other development banks and institutions.

Talking about the issue of climate change and its solution, Imran Khan said the fulfilment of the commitment made by developed countries to provide $100 billion per year in climate finance is vital, including for the success of COP-26 in Glasgow.

He said the accumulated climate finance commitment now amounts to over $ 1 trillion, and Pakistan’s landmark projects such as our “Recharge” initiative and 10 Billion Tree Tsunami project can benefit greatly from such support.

PM also suggested that the national and international development strategies should target sectors including COVID recovery, human development, social protection, renewable energy, sustainable agriculture, climate change and digitalization that enable developing countries to respond to the triple challenge.

He also urged that the investment in sustainable infrastructure – which impacts 92 percent of the SDGs – must be a central part of development strategies.

“The UN – with its unique convening power – should initiate a multi-stakeholder dialogue to mobilize the $1 trillion investment required annually in sustainable infrastructure,” he added.

Talking about the COVID-19 pandemic, he said it had once again revealed the essential unity of humanity and the close interdependence of nations.

He commends the excellent role played by the UN Secretary-General and the entire UN system’s relief and recovery efforts in the wake of the pandemic. And, he also appreciated the international recognition of Pakistan’s pandemic containment strategy and Ehsaas social protection programme.

PM also ensured the international community that Pakistan was making all possible efforts to accelerate the coronavirus vaccination campaign.

He said that due to COVID-19, the global economy would not recover fully until all countries – rich and poor – are enabled to accelerate and expand investment for achieving the SDGs and climate goals.

Imran Khan said universal and affordable access to COVID-19 vaccine was essential to defeat the virus and to revive global trade, investment and growth. “The world must ramp up vaccine production, including in the developing countries, and ensure its rapid distribution,” he added.

He also made some suggestions in this regard including the waiver of intellectual property rights, even if temporary; vaccine production under license; full funding of the COVAX facility; and provision of grants and concessional lending to enable developing countries to purchase vaccines at fair prices.

Categories : Pakistan