KARACHI: The stock market is hoped to become the biggest beneficiary of this announced tax amnesty scheme, which has rallied 3.45 percent in last one week, said a brokerage report.

Also, this tax amnesty scheme is expected to enhance foreign capital inflows into the capital market, reported The News.

Faizan Kamran, analyst Arif Habib Limited in a report said the tax amnesty scheme would show the government’s resolve to fix issues at the external front, which would help bring in foreign capital flows into Pakistan.

Those beneficiaries availing this scheme will gain indemnity from various laws, which include Income Tax Ordinance 2001, Companies Act 2017, Foreign Exchange Regulations Act 1947, Prohibition of Benami Transactions Tax 2017, Federal Investigation Agency Act 1974 and National Accountability Ordinance 1999.

Mr. Kamran said compared to previous amnesty schemes, this one could be more successful considering worldwide regulations pertaining to anti-money laundering had become much stricter and the immunity on offer is larger from various ordinances is larger in this scheme.

He added during previous tax amnesty schemes, the immunity was limited to a few ordinances.

The immediate benefits of this tax amnesty scheme would help in widening the tax base.

The Arif Habib analyst said as far Pakistan can find sustainable way of financing its current account deficit, the current scenario wouldn’t pose much of a threat to the economy in the future.