ISLAMABAD: Prime Minister Imran Khan said on Monday his government would not extend a June 30 deadline to avail a new tax amnesty scheme aimed at broadening the revenue base and warned that those who did not declare assets under the facility would face “confiscation and punishment.”
The scheme, approved by cabinet last month, will allow Pakistani citizens, except public office holders and their spouses, to declare hidden assets by paying 4 percent tax on domestic and 6 percent tax on offshore assets.
Speaking to Pakistan’s Geo News channel on Monday evening, Khan urged people to avail the tax amnesty scheme to avoid punishment.
“Government would not extend the deadline of the tax amnesty scheme ending on June 30,” he said, adding that people who did not declare ‘benami’ (anonymous) properties and bank accounts “would face confiscation and punishment” under new laws.
Pakistan’s $300 billion economy faces a ballooning current account deficit and dwindling foreign exchange reserves due to rising imports, low revenue collection and loss making state owned enterprises.
In a budget proposal announced earlier this month, the government targeted federal tax revenues of 5.55 trillion rupees ($36.80 billion), up 25% and driven by a lower introductory threshold for income tax and a clampdown on tax evasion. The government had failed to hit last fiscal year’s goal of 4.44 trillion rupees. The Pakistani rupee has also lost about a third of its value this year and inflation has jumped above 9%.
Last month, Pakistan reached an accord with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up fragile public finances and strengthening a slowing economy. The program envisages reforms to improve public finances and cut public debt, including “revenue mobilization measures to eliminate exemptions, curtail special treatments, and improve tax administration,” the IMF statement said.
The IMF loan is contingent on measures being taken to cut a budget gap that the Fund forecast at 7% in 2018/19.
In Monday’s interview, Khan said the economy was under severe stress because half the government’s income went to debt repayments and servicing interest on heavy foreign loans.
Pakistan’s national debt had increased from Rs6,000 billion to Rs30,000 billion in the last decade, the PM said, adding that the debt trap had compelled the country to keep seeking fresh loans in order to pay the interest on previous loans.
This situation was the result of rampant tax evasion and corruption, which Khan said he was resolved to weed out.
“Tax money will be utilized for the welfare of the people,” PM Khan said, directing his economic team to establish a special helpline to receive complaints against harassment by tax collecting body, the Federal Board of Revenue.
‘Confiscation and punishment’ if assets not disclosed by June 30, PM tells nation
‘Confiscation and punishment’ if assets not disclosed by June 30, PM tells nation
- Directs economic team to establish helpline for harassment complaints against tax collecting body
- Promises tax revenue will be used for “welfare of the people”
Over 3,000 Pakistani, overseas athletes expected to take part in Islamabad Marathon today
- Marathon to feature five categories: full marathon, half marathon, children’s race, family race and senior race
- A prize money of Rs1 million [$3594] has been allocated for winners of all categories, says marathon organizer
ISLAMABAD: Over 3,000 athletes from Pakistan and abroad are expected to take part in a running marathon in Pakistan’s capital today, Sunday, state-run media reported.
Organized by the Islamabad Run With Us (IRU) running community in the capital, the marathon will feature five categories: a full marathon, a half marathon, a children’s race, a family race and a senior race.
The IRU says it has organized over 700 complimentary community events and numerous races, adding that it launched the Islamabad Marathon event in 2020.
“Founder of the Islamabad Run with Us community, Qasim Naz announced on Friday that the fifth Islamabad Marathon will take place on January 26, with the participation of over 3,000 athletes from across Pakistan and abroad,” state-run Associated Press of Pakistan (APP) said.
Naz said a prize money of Rs1 million [$3594] has been allocated for winners of all categories of the marathon.
The marathon kicked off at the city’s newly built Iran Avenue at 9:00 am. Its route includes the GT Road and runners will have to return to the starting point, the organizer said.
Naz said a pitch system would be introduced to ensure transparency, enabling real-time tracking of athletes and accurate identification of winners.
“He said that the purpose of organizing the event is to showcase Pakistan’s soft image and highlight the country’s beauty to the world,” APP said.
Naz said arrangements for medical and other facilities for participants have been made with cooperation from the district administration and police.
Pakistan says won’t risk rushing Saim Ayub’s recovery for Champions Trophy
- Saim Ayub was ruled out of competitive cricket for six weeks after suffering ankle injury this month
- Left-handed batter will enter recovery phase in a day or two, says PCB Chairman Mohsin Naqvi
ISLAMABAD: Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Sunday that he will not risk injured batter Saim Ayub’s future by rushing his recovery for the sake of the multi-nation Champions Trophy tournament, which is scheduled to get underway in Pakistan and Dubai next month.
Ayub, one of Pakistan’s most in-form batters who helped the team secure a historic ODI series whitewash over South Africa in December, suffered a right ankle fracture while fielding in the second Test against South Africa this month.
The injury forced Ayub out of competitive cricket for six weeks, dealing Pakistan a massive blow before it hosts the multi-nation Champions Trophy tournament in February. Ayub is currently in London seeking treatment as Pakistan hopes the star batter recovers in time for the crucial tournament.
“I am in contact with Saim on almost a daily basis. His rehab is going on and god willing, the plaster on his foot will be removed in a day or two after which he will enter the recovery phase,” Naqvi told reporters.
“It will take time, I don’t want to put his future at risk because of one Champions Trophy.”
The PCB chairman said he was monitoring Ayub’s rehabilitation himself, adding that Ayub was Pakistan’s asset and would soon make a full recovery.
Pakistan will play the Champions Trophy tournament opener on Feb. 19 against New Zealand in the eastern city of Lahore.
Pakistan expresses desire to formulate joint plan to combat ‘terrorism’ with US
- Interior Minister Mohsin Naqvi met US lawmakers, investors in Washington this week to discuss bilateral issues
- Pakistan has faced a surge in militant attacks in its western provinces bordering Afghanistan since November 2022
ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi said on Sunday that Islamabad wanted to formulate a comprehensive plan with American politicians to combat “terrorism,” amid Islamabad struggle to contain surging militant attacks on its soil in recent months.
Islamabad and Washington have shared a complicated history when it comes to bilateral ties. Both countries shared close defense and security cooperation in the past, particularly during the Cold War after the 1979 Soviet invasion of Afghanistan and post-September 11, 2001 attacks.
However, more recently, US officials criticized Pakistan for not sufficiently supporting their military efforts against the Taliban following the 9/11 attacks. Islamabad denies sheltering Taliban fighters and helping them regain control of Afghanistan in August 2021.
Pakistan has faced a surge in militant attacks in its western provinces bordering Afghanistan since November 2022, ever since its truce with the Pakistani Taliban broke down. Islamabad blames Afghan rulers for providing sanctuaries to militants to launch attacks against Pakistan, charges the Taliban government vehemently denies.
“See the main purpose of my visit this time [to the US] was to make a comprehensive plan against terrorism with the politicians here,” Naqvi told reporters in Washington.
Naqvi is in Washington where he met US lawmakers this week to hold talks on issues of bilateral concern between the two countries.
“The terrorism that we are suffering is not just our fight, it is everyone’s fight,” he added. “Both 2023 and 2024 were bad years for us but you will see that whosoever takes up arms against Pakistan will suffer a bad fate.”
On Saturday, the Pakistani interior minister visited the United States Chamber of Commerce in Washington where he spoke to a delegation of the US-Pakistan Business Council.
Naqvi invited American investors to invest in Pakistan’s priority sectors, particularly in IT and minerals, state broadcaster Radio Pakistan said.
“Talking to a delegation of the US-Pakistan Business Council during his visit to United States Chamber of Commerce in Washington, he highlighted Pakistan’s mining and IT sectors have emerged as investors’ ultimate destination,” it added.
Citing Pakistan’s recent economic gains, Naqvi said the country is heading toward economic stability “rapidly,” adding that all economic indicators have improved.
Pakistan okays increase in gas prices for industries
- The decision aims to ensure required revenue for the gas sector during the fiscal year ending on June 30
- A cabinet committee turns down Petroleum Division summary to increase the tariff for domestic consumers
ISLAMABAD: The Economic Coordination Committee (ECC) of Pakistan’s federal cabinet has approved an upward revision in gas tariff for industries, the Finance Division said on Saturday.
The development came after an ECC meeting to discuss a summary submitted by Petroleum Division for an upward revision of the indigenous gas tariff for industry, or captive power plants, as well as non-protected domestic slabs.
A captive power plant refers to an electricity generation facility owned and operated by a specific industrial or commercial entity to primarily power their own operations, rather than selling electricity to the public grid. It’s dedicated to supplying electricity solely for the needs of the company that owns it, like a large factory or industrial site, minimizing reliance on the national power grid.
While the committee approved a revision in prices for industrial consumers, it declined to increase the tariff for domestic consumers to protect them from additional burden, according to the Finance Division.
“The ECC, following a through discussion, decided to approve upward revision in gas tariff for captive power plants from Rs3,000 per mmbtu (metric million British thermal unit) to Rs3,500 per mmbtu to ensure required revenue for the gas sector during FY2024-25,” the Finance Division said in a statement.
Pakistan’s caretaker government increased the prices of natural gas by up to 67 percent for residential consumers in February 2024, in a bid to meet one of the key fiscal tightening conditions of the International Monetary Fund (IMF) for a final review of its last bailout program, worth $3 billion, that helped saved the country from a default.
In August last year, Petroleum Minister Musadik Malik had said his government would keep the gas prices unchanged until winter months of December 2024 and January 2025, amid rising costs of living in Pakistan at the time.
Pakistan, which imports most of its energy needs, saw days of protests in July and August 2024 over the rising costs of living, mainly fueled by energy price hikes. The protests had prompted Prime Minister Shehbaz Sharif to announce a three-month, Rs50 billion subsidy for electricity consumers using up to 200 units a month.
Islamabad to repatriate 22 Pakistani survivors of Morocco boat capsize in batches
- The migrant boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistani nationals
- The tragedy has once again underscored the perilous journeys many migrants embark on due to conflict, instability at home
ISLAMABAD: Pakistan will repatriate 22 survivors of a boat capsize off Morocco this month, the Pakistani foreign office said on Saturday, adding that verifying national identities of these individuals remained a critical component of the repatriation process.
The boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later 36 people were rescued from the vessel that left Mauritania on Jan. 2, while the foreign office confirmed the survivors included 22 Pakistanis.
Pakistan’s embassy in Rabat has been working closely with Moroccan authorities to oversee the relief efforts and finalize the complex repatriation procedure, according to the Pakistani foreign office.
“Following thorough investigations and careful coordination with Moroccan authorities, these individuals will be returned to Pakistan in batches,” it said in a statement.
The Pakistani foreign office said its Crisis Management Unit (CMU) was actively engaged in monitoring the situation and providing necessary support to the affected individuals, maintaining active communication with their families.
The national identity verification process was completed expeditiously in coordination with the Pakistani interior ministry and relevant departments, it added.
The Morocco tragedy has once again underscored the perilous journeys many migrants, including Pakistanis, embark on due to conflict and economic instability in their home countries.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a shipwreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests. On Friday, Prime Minister Shehbaz Sharif also formed a special task force to curb human smuggling, promising to bring human traffickers to justice.
Separately, the foreign office said on Saturday, it was facilitating the return of another 11 Pakistani nationals from Mauritania, who had voluntarily chosen to return home.
“The welfare of Pakistani nationals abroad remains an important priority of the government and it will continue to work to extend all possible facilitation in this regard,” it added.
