KARACHI: Five Pakistani industries launched protests in seven major cities on Saturday to denounce the withdrawal of a zero-rated sales tax facility in the budget for the fiscal year to June 2020, decrying the move as a “disaster” for the countries export-oriented sectors.
Seeking final approval for an International Monetary Fund bailout, the government’s new budget envisions widespread belt-tightening, a sharp hike in tax revenues and abolished the facility of zero-rated sales tax for the textile, leather, carpets, surgical and sports goods sectors.
A standard rate of 17 percent sales tax will now be imposed on these sectors to generate an expected Rs75-80 billion in additional revenue.
Muhammad Jawed Bilwani, Chief Coordinator of the Value Added Textile Export Sector, said peaceful protests were being held by the industry in Karachi, Lahore, Faisalabad, Sialkot, Multan, Kasur and Gujranwala against the new measure announced in the budget.
The new tax regime, he said, would be “a deadly blow” for exporters' liquidity, create hardships for exporters and threatened to eliminate small and medium sized enterprises.
“Exports will decline to approximately 30 percent in the next fiscal year,” Bilwani said.
The textile sector directly or indirectly provides 42 percent of total employment in urban centers, Zubair Motiwala, a former president of the Karachi Chamber of Commerce and Industry and chairman of the Council of All Pakistan Textile Associations, told Arab News.
Pakistan’s textile exports were $13.38 billion in fiscal year 2017-18 and $11.35 billion in the 10 months of fiscal year 2018-19: “This sector contributes almost 65-70 percent to the overall exports of the country. Does it make sense to disturb this sector?” Motiwala asked.
The surgical goods sector too is worried. State bank data shows Pakistan’s surgical exports stood at $477.2 million in fiscal year 2017-18 while $325.4 million worth of goods were exported during the 10 months of the current fiscal year.
“It was not a well-thought out decision,” Khalil ur Rehman, chairman of the Surgical Instrument Manufacturers Association of Pakistan, said referring to the government’s decision to withdraw the zero-rated facility. “We were not taken on board by authorities.”
Rehman said the government’s move would jeopardize the future of up to 250,000 people associated directly or indirectly with the industry, adding that the sector would now be forced to raise prices and become less competitive in the international market, leading to reduced operations and layoffs.
“The sector can survive for the next 2 to 3 years but after that, if the situation persists, 50 percent of the business would cease to exist,” Rehman said.
Representatives of the carpet manufacturing sector, whose representatives say 99 percent production is exported, also said the industry was struggling to survive. Pakistan exported $84.2 million worth of carpets and rugs in fiscal year 2017-18 and $65.8 million in the 10 months of fiscal year 2018-19.
The decision to withdraw the zero-rated tax facility will “totally collapse exports,” M Naeem Sajid, chairman of the Pakistan Carpet Manufacturers & Exporters Association, told Arab News.
He said Pakistan was facing tough competition in the carpets’ business from Afghanistan, India, and China: “We operate on 10-15 percent profit margin; with a 17 percent sales tax, doing business will not be viable,” Sajid said, adding that this would affect the livelihoods of around 800,000 people.
Syed Shujat Ali, chairman of the Pakistan Leather Garments Manufacturers & Exporters Association, said the sector employed 1.2-1.5 million people who would suffer as the cost of doing business went up by up to 15 percent because of new taxes, which would force the industry to cut down on its workforce and operations.
Leather exports stood at $365.4 million in fiscal year 2017-18 and $241.5 million in the 10 months of the current fiscal year, official data shows.
“The input cost hike will render us uncompetitive in the international market and we may lose our share to our competitors,” Ali said.
Pakistan’s sporting goods sector, which exported goods worth $551.4 million in fiscal year 2017-18 and $425.7 million during the 10 months of the current fiscal year, will also feel the burn of the government’s new measures.
“The government’s decision to abolish the zero-rated tax facility has sent a wave of uncertainty among the people of [the city of] Sialkot where every second person is involved in the sports goods manufacturing,” said Chaudhry Muhammad Arshad, the chairman of the Pakistan Sports Goods Manufacturers & Exporters.
The government had been forecasting growth of 4% for the next financial year, but after Revenue Minister Hammad Azhar delivered his budget speech to parliament on Tuesday evening, the government released a budget document showing it trimmed its growth estimate for the coming year to 2.4%. Inflation, which hit 9% in May, is seen at 11-13% during fiscal year 2019-2020.
“This (2.4 percent growth rate) means unemployment would increase to a large extent because economic growth has already declined by more than half,” senior economist Yousuf Nazar said.
Dr. Ashfaque Hassan Khan, a member of Pakistan’s Economic Advisory Council, added: “Every year 1.5 million new people enter the job market. The 2.4% growth is also equal to population growth rate which means the new entrants are not finding jobs. So the pool of unemployed will keep on rising and this may lead to social unrest in the country and increase poverty.”
Five industries launch countrywide protests as budget strikes down zero-rated tax
Five industries launch countrywide protests as budget strikes down zero-rated tax
- Pakistan government has abolished zero-rated sales tax for textile, leather, carpets, surgical and sports goods sectors
- Economists fear growth expected at 2.4 percent will fuel unemployment, poverty and social unrest
Pakistan minister tables amendments lowering jail term for spreading ‘fake’ information to 3 years
- Changes to contentious cybercrime law says fake news disseminator could be fined up to Rs2 million [$7,177]
- Amendments propose creation of social media authority with powers to block content on online platforms
ISLAMABAD: Pakistan’s Law Minister Azam Nazeer Tarar on Wednesday tabled amendments to a contentious cybercrime law in parliament, lowering the punishment for spreading “fake information” online to three years, according to a draft of the document.
Pakistan’s state minister for information technology, Shaza Fatima Khawaja, last month confirmed the government was reviewing amendments to the Pakistan Electronic Crimes Act (PECA) 2016. Passed in 2016 by the then government of Prime Minister Shehbaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) party, the law was originally enacted to combat various forms of cybercrime, including cyber terrorism, unauthorized access, electronic fraud and online harassment, but it has variously been used to crack down on journalists, bloggers and other critics of the state.
The amendments proposed up to five-year imprisonment or fine extending to Rs1 million ($3,588) or both for anyone who “intentionally” posts false information online to create “a sense of fear, panic or disorder or unrest.”
“Whoever intentionally disseminates, publicly exhibits or transmits any information through any information system , that he knows or has reason to believe or has reason to believe to be false or fake and likely to cause or create a sense of fear, panic or disorder or unrest in general public or society shall be punished with imprisonment which may extend up to three years or with fine which may extend to two million rupees or with both,” Section 26A of the Prevention of Electronic Crimes (Amendment) Bill, 2025 states.
The amendments also propose establishing a “Social Media Protection and Regulatory Authority,” which would perform several functions related to social media such as education, awareness, training, regulation, enlistment, blocking and more.
It said that anyone “aggrieved by fake and false information” would be able to approach the authority to remove or block access to the content in question, adding that the authority would issue orders no later than 24 hours on the request.
“Any person aggrieved by fake or false information may apply to the Authority for removal or blocking of access to such information, and the Authority shall, on receipt of such application, not later than twenty-four hours, pass such orders as it considers necessary including an order for removal or blocking access to such information,” a copy of the amendment bill states.
The draft stated that authority would have the power to issue directions to a social media platform to remove or block online content if it was against the “ideology of Pakistan,” incited the public to violate the law, take the law in their own hands with a view to coerce, intimidate or “terrorize” public, individuals, groups, communities, government officials and institutions.
The authority will also have the power to issue directions to the social media platform if the online content incited the public or section of the public to cause damage to governmental or private property; coerced or intimidated the public or section of the public and thereby prevented them from carrying on their lawful trade and disrupted civic life, the draft said.
Pakistan’s digital rights experts have recently pointed to the government’s restrictions on the Internet, which include a ban on social media platform X since February 2024 and on the use of virtual private networks (VPNs) as moves to curtail freedom of speech and voices of dissent.
The government rejects these allegations and has repeatedly said it is enacting laws to battle fake news on social media platforms.
Pakistan Business Council calls for collaborative efforts with UAE in investment, cultural exchanges
Pakistan Business Council calls for collaborative efforts with UAE in investment, cultural exchanges
- UAE is Pakistan’s third-largest trading partner after China and US, and a major source of foreign investment
- Pakistan consul general in Dubai urges business leaders to explore opportunities in IT, agriculture and tourism
ISLAMABAD: The Pakistan Business Council Dubai on Wednesday said it aims to strengthen existing relations between Islamabad and Abu Dhabi through collaborative efforts in trade, investment and cultural exchanges, a statement from the Pakistan Consulate General in Dubai said.
The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE foreign ministry.
It is also home to more than a million Pakistani expatriates. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
Hussain Muhammad, the consul general of Pakistan in Dubai, met the new board members of the PBC Dubai at the Consulate General of Pakistan. Shabbir Merchant, the PBC Dubai chairman, shared the council’s strategic roadmap for 2025-2026.
“Mr. Merchant stated that PBC aims to strengthen the relationship between Pakistan and UAE through collaborative efforts in trade, investment and cultural exchanges,” the Pakistan Consulate General said. “He added that the Council is committed to avail opportunities for mutual growth and foster a deeper connection between the two nations.”
Muhammad appreciated PBC’s efforts in promoting Pakistan’s economic potential in the UAE, the statement said, adding that the Pakistani consul general also encouraged them to take concrete steps toward enhancing bilateral trade and investment between the two countries.
“The Consul General emphasized the need for business leaders to explore opportunities in Pakistan’s diverse sectors, including IT, manufacturing, agriculture and tourism,” the statement said.
“He said that Pakistan offers immense potential for investment and trade, with Special Investment Facilitation Council (SIFC) established as a single window to facilitate investors.”
The SIFC is a hybrid civil-military body formed in June 2023 to attract international investment, particularly from Gulf countries, in Pakistan’s key economic sectors such as tourism, mining and minerals, agriculture and livestock.
Hussain urged the PBC to act as a bridge for creating new partnerships and expanding existing ones.
Pakistan and UAE have stepped up efforts in recent years to strengthen their business and investment relations. In January 2023, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos for the World Economic Forum’s summit.
Pakistan reports first polio case of 2025 from country’s northwest
- Pakistan last year suffered from a surge in polio cases, reporting 73 infections countrywide
- South Asian country will hold first nationwide vaccination drive of this year from February 3
KARACHI: Pakistani health authorities confirmed this year’s first polio case on Wednesday from the country’s northwestern Khyber Pakhtunkhwa province, amid Islamabad’s attempts to stem the spread of the disease.
Polio is a paralyzing disease with no cure. Multiple doses of the oral polio vaccine, along with completing the routine vaccination schedule for all children under the age of five are crucial to provide children with strong immunity against the disease.
The Regional Reference Laboratory for Polio Eradication at the National Institute of Health (NIH) confirmed that this year’s first case was reported from the northwestern Dera Ismail Khan district of the province. Last year, the South Asian country reported 73 polio cases countrywide.
“On Wednesday, Jan. 22, 2025, the lab confirmed one polio case from D.I. Khan,” the Pakistan Polio Eradication Program said in a statement. “D.I. Khan is one of the districts of South KP having 11 polio cases in 2024.”
Giving a breakdown of the 73 polio cases in 2024, the program said 27 were reported from southwestern Balochistan, 22 from KP, 22 from southern Sindh, and one each from the eastern Punjab province and the capital city of Islamabad.
Pakistan, along with neighboring Afghanistan, remains one of the last two polio-endemic countries in the world. In the early 1990s, Pakistan reported around 20,000 cases annually, but by 2018, the number had dropped to just eight cases. Only six cases were reported in 2023, and one in 2021.
However, Pakistan’s polio eradication efforts have faced several challenges in recent years, including attacks by militants and misinformation spread by religious hard-liners.
The Pakistan polio program is scheduled to hold the country’s first nationwide vaccination drive of this year from Feb. 3 to Feb. 9.
Pakistan’s space agency says rare ‘Planetary Parade’ to be visible from January’s last week
- Planetary Parade refers to when four or more planets align in a straight line
- Venus, Mars, Jupiter and Saturn will be visible to the naked eye, says space agency
ISLAMABAD: Pakistan’s national space agency said this week that people will be able to see the “Parade of the Planets,” a celestial spectacle in which four or more planets will line up in the sky, from the naked eye beginning from the last week of January till mid-February.
A planetary parade, or planetary alignment, is a rare celestial event where multiple planets in our solar system align in a straight line or appear close together in the sky. This occurs when the orbits of the planets bring them together in a specific configuration.
“The lining up of four or more planets in the sky is usually called Parade of the Planets,” Pakistan’s Space and Upper Atmosphere Research Commission (Suparco) said on Tuesday. “Out of all these planets, Venus, Mars, Jupiter and Saturn will be visible to the naked eye.”
It said that since the moon will be a waning crescent on Jan. 25, from a moderately pollution free sky, Mercury, Venus, Mars, Jupiter and Saturn will appear within a similar celestial line.
The space agency said familiarity with constellations would make it easier for people to identify planets. It said many free stargazing applications were available to identify celestial objects in the sky.
“To find out the name of an object, access the app and point the device toward the object in the sky and the app will display the names of the objects toward which the app is pointed out,” Suparco said.
It said Mars would be visible on the eastern horizon in the constellation Gemini whereas a brighter Jupiter would be located in the constellation Taurus.
“If the sky is dark enough, you can also enjoy the beautiful Pleiades, Hyades, and the yellow star Aldebaran,” Suparco said.
The space agency said high-powered binoculars or a telescope would be required to observe Uranus which lies in the constellation Aries.
It added that strong binoculars would be required to see Neptune in the constellation Pisces while Saturn and Venus would also be visible.
Imran Khan’s party says no talks with Pakistan government unless it forms judicial commissions
- Khan’s party has demanded judicial commissions to probe protests of May 2023, November 2024
- Government’s negotiation committee says will respond to demands by Khan’s party in writing on January 28
ISLAMABAD: Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party leader, Omar Ayub Khan, on Wednesday ruled out further negotiations with the government unless its forms judicial commissions to probe the May 9, 2023 and November 2024 anti-government protests, amid efforts by both sides to break the prevalent political deadlock in the country.
Khan last month set up a negotiation committee of PTI members, including Omar Ayub Khan who is also the Leader of the Opposition in the National Assembly, to hold talks with the government to ease political tensions. During the third round of talks between the two sides on Jan. 16, the PTI presented its “Charter of Demands” in writing to the government.
The party’s key demands include the release of political prisoners and the establishment of judicial commissions to investigate the May 9, 2023, and November 2024 protests. Khan’s brief detention on graft charges on May 9, 2023, had sparked countrywide protests that saw his supporters attack and ransack military installations in an unprecedented backlash against Pakistan’s powerful army generals.
In November 2024, Khan supporters from across the country defied blockades from various parts of the country to arrive in the capital to demand his release from prison. The government says four troops were killed while the PTI says 12 of its supporters died in clashes between law enforcers and Khan supporters.
“I wrote this in a tweet last night and this is Imran Khan’s directives too: no commissions, no negotiations,” Omar Ayub Khan told reporters outside the National Assembly. “End of discussion, we don’t accept it. The [judicial] commission of May 9 and the commission of Nov. 26.”
The opposition leader’s statement came shortly after Irfan Siddiqui, a key member of the government’s negotiation committee, said it would respond to the PTI’s written demands on Jan. 28.
When asked whether the committee had decided to form the judicial commissions, Siddiqui responded:
“We have not decided on the question of whether to form or not form [judicial commissions],” Siddiqui told reporters after a consultative meeting of the committee ended.
“That is why deliberations are taking place. Had this decision been taken today, there would be no need to hold meetings tomorrow and the day after that,” he added.
Siddiqui hoped negotiations between both sides would produce fruitful results.
The talks opened last month as Khan had threatened a civil disobedience movement and amid growing concerns he could face trial by a military court for allegedly inciting attacks on sensitive security installations during the May 9 protests.
The negotiations also began two days after 25 civilians were sentenced by a military court to periods of two to 10 years of “rigorous imprisonment” in connection with the attacks on military facilities on May 9, 2023. Just days later on Dec. 26, another 60 civilians were sentenced by a military court to jail time ranging from 2 to 10 years.
Khan, facing a slew of legal cases from jail, says all charges against him are politically motivated to keep him and his party out of power. Khan had to sit out February 2024 general election as convicted felons cannot run for public office in Pakistan.
An anti-graft court last Friday sentenced the former premier to 14 years in jail and his wife, Bushra Khan, to seven years in prison, on charges of receiving land as bribe for a real estate tycoon in exchange for favors. Khan, his wife and the real estate tycoon have denied any wrongdoing in the case.
