KARACHI: Fearing stiff resistance in parliament, the Government of Pakistan has given legal shelter to the recently announced tax amnesty scheme through the presidential order, paving way for those hiding assets to declare.
The president of Pakistan Mamnoon Hussain on Sunday signed four ordinances including “Foreign Assets (Declaration and Repatriation) Ordinance 2018” into law, giving legal cover to the Economic Reforms Package (ERP).
Other ordinances are Voluntary Declaration of Domestic Assets Ordinance 2018, Income Tax (Amendment) Ordinance 2018, and Economic Reforms (amendment) Ordinance 2018.
With the promulgation of president ordinances, the names and identities of those availing the scheme by declaring local and offshore assets would remain confidential.
Prime Minister Shahid Khaqan Abbasi had announced a five-point tax reforms package on Thursday, which included a tax amnesty scheme for undeclared foreign and domestic assets, and reduction in individual income tax rates.
The purpose of the government’s incentive package is to boost the country’s declining foreign exchange reserves and increase the number of income taxpayers, which stands at 1.2 million at present.
The ordinance would now enforce the five-point tax reforms package and the tax amnesty scheme for undeclared foreign and domestic assets.
According to the ordinance, the officials appointed by the government for the implementation of the ordinance would be empowered. The provisions of the ordinance shall apply to all citizens of Pakistan wherever they may be, except holders of public office including politicians, their spouses and dependent children.
The foreign assets declared and repatriated into Pakistan within a given time will be brought under the tax net by paying 5 percent, while those holding assets abroad will be able to declare by paying 2 percent charges.
The prime minister had announced that the government will monitor the financial records of citizens and issue notices if it finds tax evasion.
Abbasi announced that all 120 million national identity card holders would be assigned tax numbers.
Pakistan is facing measures from the Financial Action Task Force (FATF) and the country is scheduled to be gray-listed in June this year. In an email to the government of Pakistan, the FATF has expressed its concerns over the whitening of assets by violation of anti-money laundering laws. However, Pakistan has assured that tax amnesty scheme does not violate money laundering laws.
“Pakistan’s tax amnesty scheme adheres to all international anti-money laundering laws,” said Miftah Ismail, the adviser to prime minister on finance who received the email said, according to local Geo TV.
Ismail shared that he has received an email from the global money-laundering watchdog, FATF, calling for global needs and the agreed-upon guidelines to be respected.
“The FATF has stressed upon strict monitoring of money laundering and terrorist financing activities,” the Pakistani premier’s financial adviser said.
Many political parties had voiced against the tax amnesty scheme, calling it against the honest taxpayers. The government, fearing furious opposition, has decided to implement the scheme through the presidential ordinance.
“The tenure of presidential order ends after 90 days, which means the government will have to go through the parliament to get it approved,” senior lawyer and former president of the Income Tax Bar Association, Abdul Qadir Memon, told Arab News.
President Mamnoon Hussain signs ordinance for tax amnesty scheme
President Mamnoon Hussain signs ordinance for tax amnesty scheme
- Identities of those declaring local and offshore assets will remain confidential under the new law
- The scheme has been opposed by various parties, calling it against the honest taxpayers
Pakistani PM speaks to Saudi, Qatari envoys as Iran fires missiles at US air base in Qatar
- Qatar called the attack a ‘flagrant violation’ of its sovereignty and said it reserved the right to respond
- In phone call with Saudi envoy, PM Shehbaz Sharif urges joint efforts to de-escalate tensions in the region
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif has expressed concern over Iran’s missile attack on a United States (US) military base in Qatar and called for efforts to restore peace in the region, Sharif’s office said on Monday, following his telephonic talk with Qatari and Saudi envoys to Islamabad.
Iran launched missile attacks Monday on US military bases in Qatar and Iraq in retaliation for the American bombing of its nuclear sites, state media said, amid escalating tensions in the volatile region.
Qatar said it had “successfully intercepted” missiles targeting the US base, and added it reserved the right to respond in accordance with international law. The US confirmed its air base was targeted by missile attack from Iran and said no casualties were reported.
Shortly after the attack, Sharif spoke with Qatar’s Ambassador to Islamabad Ali Mubarak Ali Essa Al-Khater and expressed solidarity with the Qatari government and people. He then spoke with Saudi Arabia’s Ambassador Nawaf bin Said-Al Malki.
“The Prime Minister urged that all efforts must be made to de-escalate tensions and restore peace in the region,” Sharif’s office said, following his conversation with the Saudi envoy.
“He said Pakistan would continue to work closely with the Kingdom of Saudi Arabia to intensify peace efforts.”
The Qatari and Saudi envoys thanked the prime minister for expressing solidarity and immediately reaching out to them after the development that could imperil peace and stability in the region, according to Sharif’s office.
Qatar earlier said it condemned the Iranian missile attack, calling it a “flagrant violation” of its sovereignty.
“We express the State of Qatar’s strong condemnation of the attack on Al-Udeid Air Base by the Iranian Revolutionary Guard Corps, and consider it a flagrant violation of the State of Qatar’s sovereignty and airspace, as well as of international law,” foreign ministry spokesman Majed Al-Ansari said in a statement.
The Al-Udeid air base is home to the US Combined Air Operations Center (CAOC), which provides command and control of air power across the region as well as the 379th Air Expeditionary Wing, the largest expeditionary wing in the world.
Iran’s retaliation came a day after the US launched a surprise attack Sunday morning on three of Iran’s nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.
Just before the explosions, Iranian President Masoud Pezeshkian wrote on the social platform X: “We neither initiated the war nor seeking it. But we will not leave invasion to the great Iran without answer.”
PIA cancels flights to Qatar, Bahrain, Kuwait and UAE after Iran attacks on US bases
- Iran confirmed it had attacked US forces stationed at Qatar’s Al-Udeid air base
- The retaliation came a day after the US attacked three of Iranian nuclear facilities
KARACHI: The Pakistan International Airlines (PIA) has canceled its flights to Qatar, Bahrain, Kuwait and the United Arab Emirates (UAE), it said on Monday, shortly after Iran struck United States (US) bases in Qatar with missiles.
Iran confirmed it had attacked American forces stationed at Qatar’s Al-Udeid air base. A caption on the screen called it “a mighty and successful response by the armed forces of Iran to America’s aggression” as martial music played during announcement on Iranian state television.
Qatar said it “successfully intercepted” missiles targeting the US base, and added it reserved the right to respond directly and in accordance with international law following the strikes. The US confirmed its air base in Qatar was targeted by missile attack from Iran and said no casualties were reported.
PIA said it had limited its flight operations as a precautionary measure due to the ongoing situation in the Gulf region, adding that its reservation department had started transferring the bookings of passengers to other flights.
“PIA flights will be resumed after the situation returns to normal,” the airline said in a statement. “All passengers who were traveling on these flights are requested to get timely information about their flights from the PIA call center.”
A UAE government spokesperson said they were closely monitoring the regional developments and continuously assessing the situation.
Kuwait’s civil aviation body issued a statement, saying: “The country’s airspace has been temporarily closed as a precautionary measure, starting today and until further notice. The decision comes within the framework of maintaining the highest levels of safety and security in light of regional developments.”
The Al-Udeid air base is home to the US Combined Air Operations Center (CAOC), which provides command and control of air power across the region as well as the 379th Air Expeditionary Wing, the largest expeditionary wing in the world.
Iran’s retaliation came a day after the US launched a surprise attack Sunday morning on three of Iran’s nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.
Just before the explosions, Iranian President Masoud Pezeshkian wrote on the social platform X: “We neither initiated the war nor seeking it. But we will not leave invasion to the great Iran without answer.”
Pakistan says holds ample petroleum reserves amid fears of Iran’s closure of Strait of Hormuz
- Iran’s parliament has approved cutting off the narrow shipping lane through which about 20 percent of global oil and gas passes
- State Minister Bilal Azhar Kayani says no cause of concern for Pakistanis, government prepared to address any uncertainties
ISLAMABAD: Pakistan has ample petroleum reserves and an uninterrupted supply chain, a junior minister said on Monday, amid fears that Iran may cut off a vital oil and gas shipping lane in retaliation for US strikes on its nuclear facilities.
Iran’s parliament has approved cutting off the Strait of Hormuz, a narrow shipping lane in the Arabian Gulf through which about 20 percent of global oil and gas passes. It’s now up to Iran’s national security council to decide whether to move forward with the idea, which could lead to a spike in the cost of goods and services worldwide.
The price of oil jumped 4 percent shortly after trading began on Sunday night, but it quickly pared back as the focus shifted from what the US military did to how Iran would react. Oil futures were flip-flopping in Monday morning trading between gains and losses. They still remain higher than they were before the fighting began a little more than a week ago.
Pakistan’s State Minister for Finance and Railway Bilal Azhar Kayani denied rumors about a shortage of petroleum products in the South Asian country, stressing that his government was closely monitoring developments following tensions between Iran, Israel and the US to ensure stability.
“The Oil and Gas Regulatory Authority (OGRA) has directed all oil marketing companies to strictly maintain mandatory reserve levels in light of current global conditions, mitigating potential risks,” Kayani was quoted as saying by Pakistan’s Press Information Department.
“There is no cause for concern as petroleum product inventories are sufficient and supply operations continue smoothly across the nation.”
The statement came hours after President Donald Trump called for the US and other oil-producing economies to pump more oil as the White House sharpened its warnings to Iran against closing the Strait of Hormuz.
Global markets were trying to ascertain what lays ahead after the US struck on Sunday key Iranian nuclear facilities with a barrage of 30,000-pound bunker busting bombs and Tomahawk missiles.
Pakistan lacks adequate resources to run its oil- and gas-powered plants and mainly sources its oil from Arab Gulf nations.
Kayani reassured citizens that the Prime Minister’s office, Ministry of Petroleum and the Ministry of Finance were continuously monitoring the situation.
“We are fully prepared to address any uncertainties,” he said, adding the government was committed to ensuring the country’s energy security.
Pakistan extends airspace closure for Indian aircraft until July 23
- The restriction was first imposed in Apr. as part of tit-for-tat measures by India and Pakistan after an attack in disputed Kashmir
- The attack, which India blamed on Pakistan without offering evidence, led to a four-day military conflict between the two countries in May
ISLAMABAD: Pakistan has extended for the second time its airspace ban on Indian aircraft until July 23, the Pakistan Airports Authority (PAA) said on Monday, citing continued tensions between the two countries.
The restriction was first imposed on Apr. 24 as part of a series of tit-for-tat measures announced by both India and Pakistan, days after an attack in Indian-administered Kashmir.
India blamed Pakistan for the assault that killed 26 tourists, Islamabad denied the allegation and called for a credible international probe into the incident. Both countries later engaged in a four-day military conflict in May.
“The ban on Indian aircraft from entering Pakistani airspace has been extended by one month,” the PAA said in a statement. “Pakistani airspace will remain closed to Indian aircraft until July 23, 2025.”
The ban applies to passenger and military aircraft operated by Indian airlines, according to the PAA. A Notice to Air Missions (NOTAM) has also been issued in this regard.
“Any aircraft registered in or leased by India would also be prohibited from using the Pakistani airspace,” the authority added.
Pakistan had previously extended the ban till June 24. It has forced Indian airlines to reroute their flights, resulting in increased fuel consumption, longer travel times and higher operational costs.
Air India, which operates numerous flights to Europe and North America, estimated in May that the airspace ban could lead to approximately $600 million in additional expenses over the course of a year and requested compensation from the Indian government.
Pakistan stocks, rupee plunge as investors react to US strikes on Iran
- Benchmark KSE-10 Index dropped more than 3 percent to the lowest in over six weeks
- Analysts say if there was no further escalation, value buying is expected to come through
KARACHI: Pakistan’s stocks and currency markets tumbled on Monday as investors reacted to the United States’ (US) foray into the Israel-Iran conflict, traders and analysts said.
The benchmark KSE-100 index dropped more than 3 percent to 116,167 points, the lowest in more than six weeks, while the rupee continued to weaken against the US dollar in the seventh consecutive session on Monday.
The index has plunged by nearly 5 percent since June 13 when Israel first hit Iranian military and nuclear targets in Natanz, Isfahan and Fordow, killing top generals and scientists among 78 people.
“Rising geopolitical tensions following a US strike on Iran shook investor confidence, causing the KSE-100 Index to drop by 3.2 percent,” Mohammad Waqas Ghani, head of research at JS Global Capital Ltd., told Arab News, adding that this was the fourth largest single-day decline in terms of points historically.
The attacks on Iran by the US, which followed Israeli strikes, have intensified the war and deepened geopolitical tensions in the Middle East, sending jitters to markets across the globe.
Monday’s 3.2 percent fall was the worst since May 8 when the index had plunged 5.9 percent day-on-day, according to Ghani.
“The spike in global oil prices has further intensified concerns about Pakistan’s external account vulnerabilities,” he added.
Cash-strapped Pakistan, which is trying to revive its debt-ridden economy with the help of International Monetary Fund’s $7 billion program, spent $17 billion on oil imports last year.
Raza Jafri, head of research at Intermarket Securities Ltd., attributed the day’s fall to redemptions at mutual funds and possible margin calls.
“Regional tensions are the main reason behind the weak sentiment,” he said, adding that if there was no further escalation, the value buying was expected to come through.
RUPEE DROP
The ongoing tensions have also impacted the Pakistani currency that lost another 0.06 percent as the greenback closed at Rs283.87, according to State Bank of Pakistan (SBP) data.
The rupee is constantly falling and has devalued 0.3 percent since the start of Iran-Israel conflict.
“The rupee is feeling the heat of this war, very negligibly though,” Zafar Paracha, secretary-general of the Exchange Companies Association of Pakistan, told Arab News.
“This stability in the exchange rate reflects the overall macroeconomic stability the country has achieved.”
