ISLAMABAD: Pakistan and the United Arab Emirates have agreed to develop better mechanisms to share tax information about Pakistanis investing in the UAE, the chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi said on Saturday, confirming that the tax collecting body had received information about Pakistani citizens who have invested in properties in the Emirates in a bid to conceal illegal wealth.
Under the common reporting system (CRS), which allows for the automatic exchange of banking information between the tax authorities of countries, Pakistan received the data from the Dubai Land Department (DLD) after a three-day meeting between the UAE finance ministry and FBR representatives in Dubai that concluded on October 10.
Zaidi said that the UAE authorities had agreed to cooperate in the sharing of information about Pakistani-owned properties, adding that the two countries would work to revise a 1993 UAE-Pakistan double tax treaty aimed at eliminating fiscal evasion as well as double taxation and additional and indirect taxes.
“The main purpose of our meeting was to develop a uniform and internationally acceptable system of information exchange between UAE and Pakistan... which was not there,” Zaidi said at a joint-presser alongside adviser to the prime minister on finance, Dr. Abdul Hafeez Sheikh, in Islamabad. “This cooperation will provide valuable information to the tax machinery.
UAE authorities could not be immediately reached for comment for this article.
Zaidi said Pakistan also brought up the abuse of a residency permit, called the iqama, which allowed expats to live and work in the UAE. Under UAE law, foreign nationals obtain an iqama on the basis of investment beyond a certain level.
Pakistani tax authorities believe Pakistanis have obtained UAE iqama permits through a Residence by Investment (RBI) initiative in order to park tax-evaded and ill-gotten money in the Emirates.
“We believe that iqama is a visit visa and should not be used as a tax residency substitute,” Zaidi told reporters. “Because when we go for tax information of Iqama holders under the CRS, they [UAE authorities] used to refuse us. After our negotiations, UAE has agreed to correct that position.”
“Now we will have another meeting next month in Islamabad,” Zaidi said.
Islamabad-based economist, Zia Banday, said the UAE’s cooperation with Pakistan on the ease of data exchange would boost its image as a ‘clean’ country.
“It will present us as a clean country... that does not allow dirty money to enter its territory,” Banday said, adding that the move would deter people in Pakistan from evading taxes and moving illegal money to the UAE.
“Pakistan may not get immediate gain by getting its money back tomorrow, but the fear it creates will act as a deterrent for people to follow rule of law,” he said, adding that he hoped the government would expand similar cooperation mechanisms with other countries known to be tax havens around the world.
FBR chief says UAE agrees to share tax information of Pakistani investors
FBR chief says UAE agrees to share tax information of Pakistani investors
- FBR chairman says tax collection body received information about Pakistanis investing in the UAE in a bid to conceal illegal wealth
- Experts say the move could act as a deterrent against tax-evasion and movement of illegal assets
South Africa urged by minister to boycott Afghanistan match in Pakistan
- Minister criticizes Taliban’s decision to ban women’s sport, disband women’s cricket team
- Proteas are scheduled to play Afghanistan on Feb. 21 in group match in Karachi, Pakistan
PRETORIA: South Africa’s sports minister has joined public calls for the Proteas to boycott the Champions Trophy game against Afghanistan next month and criticized the International Cricket Council for not upholding its own rules.
Gayton McKenzie said on Thursday he felt “morally bound to support” a match boycott because the Taliban government has banned women’s sport and disbanded the national women’s cricket team.
“It is not for me as the sports minister to make the final decision on whether South Africa should honor cricketing fixtures against Afghanistan. If it was my decision, then it certainly would not happen,” McKenzie said in a statement.
“As a man who comes from a race that was not allowed equal access to sporting opportunities during apartheid, it would be hypocritical and immoral to look the other way today when the same is being done toward women anywhere in the world.”
The Proteas are scheduled to play Afghanistan on Feb. 21 in a group match in Karachi, Pakistan.
England was also urged to forfeit its match against Afghanistan on Feb. 26 by more than 160 UK politicians on Monday.
McKenzie believed the ICC was also being hypocritical for not upholding its own mandates that member nations develop men’s and women’s cricket.
McKenzie noted Sri Lanka Cricket was suspended by the ICC from November 2023 to January 2024 for government interference.
“This does not happen in the case of Afghanistan, suggesting that political interference in the administration of sport is being tolerated there,” McKenzie said.
“Cricket South Africa, the federations of other countries and the ICC will have to think carefully about the message the sport of cricket wishes to send the world,and especially the women in sports.
“I hope that the consciences of all those involved in cricket, including the supporters, players and administrators, will take a firm stand in solidarity with the women of Afghanistan.”
Pakistan central bank chief expects inflation rate to fluctuate in coming months
- Inflation rate to stabilize within 5-7 percent range by end of 2025, says central bank governor
- Pakistan’s inflation rate slowed to 4.1 percent in December after aggressive policy rate cuts by state bank
ISLAMABAD: Pakistan’s central bank chief said on Thursday that the country will experience fluctuations in inflation in the next four to five months before it stabilizes within the five to seven percent range toward the end of the year.
Pakistan’s consumer inflation rate slowed to 4.1 percent year-on-year in December 2024. The reductions came at the back of the State Bank of Pakistan’s (SBP) move to cut the key policy rate by 200 basis points to 13 percent in December, the fifth straight reduction since June, bringing cumulative rate cuts for 2024 to 900 basis points.
The reduction in the inflation rate has brought some relief for the masses, which bore the brunt of record high inflation which peaked at 38 percent in May 2023, as Pakistan faced a prolonged economic crisis.
“At the moment it [inflation] has decreased a lot and in the month of January, it will come down a bit further but will then witness fluctuation later,” SBP Governor Dr. Jameel Ahmed said at a news conference.
“But as per our [central bank’s] assessment by the end of 2025, it will stabilize within the target range of five to seven percent, according to the medium-term target by the state bank and the government of Pakistan,” he added.
Ahmed said a collective effort to achieve the medium-term target of five to seven percent will bring relief to Pakistani businesses and the common man.
“But god forbid if there is any volatility in this which we are unable to control then we have seen the disruptions caused to businesses and even the common man in the past,” he said.
The South Asian country is navigating a challenging economic recovery path buttressed by a $7 billion facility from the International Monetary Fund granted in September.
Pakistan’s finance minister has lauded the government’s fiscal measures but warned that the country needs long-term financial reforms to ensure sustainable growth and avoid future IMF bailout programs.
Gunmen abduct over a dozen workers from ‘atomic and mining projects’ in Pakistan’s northwest
- The incident took place in the volatile Lakki Marwat district, a hotspot for TTP's militant activities
- A local analyst says the incident has raised serious questions about the state’s writ in KP province
PESHAWAR: A group of armed men on Thursday abducted more than a dozen people working on “atomic and mining projects” in Lakki Marwat, a highly volatile district of northwestern Khyber Pakhtunkhwa (KP) province, a police official said.
Lakki Marwat is situated on the edge of the tribal region bordering Afghanistan, where the proscribed Tehreek-e-Taliban Pakistan (TTP) has frequently targeted police precincts and checkpoints, killing several law enforcement personnel in the past.
Pakistani authorities have often accused the Afghan administration in Kabul of aiding TTP militants in their cross-border attacks, an allegation Afghanistan denies.
Speaking to Arab News, Shahid Marwat, the district’s police spokesperson, said armed men kidnapped “17 civilians,” including the driver of the team working on the mining project.
“This unfortunate incident took place on Dara Tang Road this morning,” he said. “The kidnapped individuals worked on atomic energy's mining projects. A heavy police contingent has also been dispatched to locate the kidnappers.”
Marwat did not share further details, but the Pakistan Atomic Energy Commission (PAEC), a government agency responsible for the nuclear energy program, operates mining projects in various parts of the country.
Lakki Marwat has been a hotspot of militant activity that witnessed unprecedented protests last September, when police officers, joined by civil society members and tribal elders, staged sit-ins and blocked the Indus Highway.
The demonstrations followed a spate of militant attacks that killed several policemen, prompting members of the force to demand greater involvement and autonomy in counterterrorism operations.
While no group has officially claimed responsibility for the incident, some media outlets reported the TTP acknowledged its involvement.
Riaz Bangash, a Peshawar-based expert on the region’s security affairs, told Arab News the incident had raised serious questions about the state’s writ in the province.
“The southern districts of KP are totally neglected and are at the mercy of criminals amid vanishing government writ,” he said. “This is despite the fact that at this time all three top provincial officials, including the chief minister, governor, and inspector general of police, belong to these districts. Still, the region is in chaos.”
Bangash emphasized the importance of avoiding politicization of the region’s security issues and urged all political parties to unite and work out a joint strategy to address the “growing insecurity.”
This is not the first time such kidnappings have taken place in the region.
Last June, unidentified gunmen abducted 13 laborers from the southern Tank district of KP, who were later released. In November, armed men also abducted seven policemen from a check post in the northwestern district of Bannu, who were released after mediation by tribal elders.
So far, the government has not issued a statement about the incident.
Pakistan to reopen Hajj applications from Jan. 10 to fill 5,000 vacant seats
- Religious affairs ministry says new applicants will have to pay about $2,152 in two installments
- Pakistan extended the application deadline twice in December due to insufficient submissions
ISLAMABAD: Pakistan has decided to reopen Hajj applications from January 10 to fill the remaining 5,000 seats under the government quota after falling short of the required number of applications for this year’s pilgrimage, the Ministry of Religious Affairs said on Thursday.
Saudi Arabia has allocated a quota of 179,210 Hajj pilgrims for Pakistan in 2025, divided equally between government and private schemes. The government extended the application deadline twice last month, from December 3 to December 10 and then to December 17, to fill the seats. However, it also hinted at reopening applications in early January due to insufficient submissions.
“The Ministry of Religious Affairs has called for Hajj applications for 5,000 vacant seats under the government quota,” Muhammad Umer Butt, the ministry’s spokesperson, said in a statement. “Hajj applications will be received on a first-come, first-served basis starting from January 10.”
Butt said that new applicants must pay Rs 600,000 ($2,152) in two installments, with additional charges for sacrifices and separate room accommodations.
“All designated banks are instructed to upload daily received applications to the portal immediately,” he added. “The receipt of applications will be halted as soon as the government quota is filled.”
For the first time, the country’s Hajj policy allowed pilgrims last year to make payments in installments. Under this scheme, the first installment of Rs 200,000 ($717) had to be submitted with the application, the second installment of Rs 400,000 ($1,435) within 10 days of balloting and the remaining amount by February 10 this year.
According to official statistics, the government scheme received 12,000 to 13,000 more applications last year compared to 2023. In 2024, Pakistan had to surrender 21,000 Hajj seats to Saudi Arabia due to a shortage of applicants. However, the government is determined to fill all slots for the 2025 pilgrimage.
The ministry has also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to guide pilgrims. Additionally, the government announced a reduction in airfare, lowering ticket prices for federal program pilgrims to Rs 220,000, down from last year’s Rs 234,000.
Pakistan International Airlines, Saudi Airlines, and private carriers have agreed to transport pilgrims this year.
Pakistan’s interior minister calls for global strategy against militancy in farewell meeting with US envoy
- The two countries have a history of security and counterterrorism collaboration, especially after 9/11
- Donald Blome was first US envoy to Pakistan after the pull out of international forces from Afghanistan
ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Thursday urged the international community to develop a comprehensive strategy to combat rising militant violence during a meeting with outgoing United States Ambassador Donald Blome.
The discussion highlighted the longstanding history of counterterrorism collaboration between the two countries. Following the events of September 11, 2001, Pakistan became an ally in the US-led war in Afghanistan. Despite fluctuations in their relationship, both sides shared intelligence and carried out coordinated operations, with the US providing military aid to Pakistan.
More recently, Washington has offered counterterrorism support to Islamabad, which is grappling with a surge in militant violence in its western provinces bordering Afghanistan. Pakistan accuses militant groups, such as Tehreek-e-Taliban Pakistan (TTP), of launching cross-border attacks with Kabul’s support, an allegation Afghan authorities deny.
“Terrorism is a global issue,” Naqvi said, according to a statement issued by his office after the meeting. “The international community must unite to devise a plan for its complete eradication.”
The US envoy condemned the recent wave of militant violence in Pakistan, as Naqvi reiterated that no illegal foreigner would be allowed to stay in the country.
His remark was made amid a crackdown on Afghan nationals since 2023. Pakistani authorities had accused many of them of involvement in suicide bombings without providing much evidence.
The Pakistani minister also commended Blome’s contributions to enhancing US-Pakistan relations during his tenure.
The US envoy, in turn, acknowledged the cooperation he received during his time in Pakistan.
Blome, the first US ambassador to Pakistan appointed after the withdrawal of international forces from Afghanistan in August 2021, played a role in recalibrating US-Pakistan relations in the post-war context. His appointment in May 2022 marked the end of a three-year vacancy in the role, during which chargé d’affaires led the US mission.
In addition to his diplomatic responsibilities, the outgoing US ambassador engaged in public diplomacy efforts, including exploring Pakistani culture and cuisine.
Last year, he visited Karachi’s famed Burns Road food street, sampling local delicacies. A video shared by the embassy featuring Blome enjoying the dishes garnered widespread attention.
