ISLAMABAD: The Pakistani government is struggling to regulate millions of dollars of informal gold business in the country by bringing jewelers into the tax net to fulfil one of the conditions of the Financial Action Task Force, officials said on Wednesday.
The global financial watchdog placed the country on its grey list in June 2018 for deficiencies in its system to counter practices like terror financing and money laundering.
Since then, Pakistan has largely addressed 26 out of 27 items on the action plan it first committed to after being placed on the list.
The FATF has been pressing Pakistan to regulate all its businesses and economy to minimize chances of money laundering and terror financing through informal sectors like gold business and prize bonds.
The country has already restricted the buying and selling of the bonds in unconventional ways and now turned its eye toward the gold business.
“It [the gold] is one of the most unregulated sectors that need to be regulated. A directorate-general has been constituted for this purpose,” Syed Nadeem Hussain Rizvi, a Federal Board of Revenue (FBR) member, told Arab News on Wednesday.
He said the directorate-general was working on a regulation mechanism to make the gold business part of the country’s formal economy.
“The FATF is concerned about regulation of such businesses,” he added.
Jewelers and gold businessmen have been resisting the FBR decision to document the sector, saying it would lead to their harassment and curtailment of the business unless the government made a more holistic effort to digitize the overall economy.
President of All Sindh Sarrafa Jewelers Association Haroon Rasheed Chand said he had called a meeting of goldsmiths and jewelers on Friday to discuss the issue.
“We have been regularly paying all income and sales taxes, but even then we are harassed in the name of informal business,” he said while talking to Arab News.
Chand maintained different government agencies were forcing the jewelers to reveal their gold and jewel transactions worth Rs2 million or more, “creating panic in the market.”
“We are ready to cooperate with the government in its efforts to remove its name from the FATF grey list, but the authorities should not force small gold shops to register for sales tax because this will adversely impact their business,” he added.
Economists and experts believe that black money worth millions of rupees can be easily converted into gold and prize bonds and kept anywhere without legal ownership. They said the government agencies could not determine the ownership of gold and jewelry due to loopholes in the current legal system and mechanisms.
“The government will face resistance from the informal sector, but it should go ahead with its plan to document the economy and register all jewelers and gold businessmen,” Syed Atif Zafar, chief economist at the Topline Securities, told Arab News.
He said the country had already tried to document the real estate sector and stock market.
“The government has taken a good initiative, though it will take some time to materialize,” Zafar added. “The documentation of the gold sector is not just important to fulfill the FATF condition but also to increase the country’s tax base.”
Pakistan struggles to regulate informal gold business to fulfill FATF conditions
https://arab.news/4g2pw
Pakistan struggles to regulate informal gold business to fulfill FATF conditions
- The country’s Federal Board of Revenue has set up a body to regulate gold business by bringing jewelers into the tax net
- An association of goldsmiths says its members are willing to cooperate with the government, but they should not be harassed in the name of regulating the sector
Pakistan dispatches 19th relief consignment to Syria amid conflicts in Middle East
- Pakistan says it will continue to support people affected by Israel’s military campaign in the region
- Since the beginning of the war in Gaza, Pakistan has called for a ceasefire at the UN, other forums
ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) dispatched its 19th relief consignment on Sunday to help war-affected people in Syria and refugees from Lebanon, according to an official statement, reaffirming the country’s commitment to supporting those impacted by ongoing conflicts in the Middle East.
The aid shipment, sent in collaboration with the Pakistani charity Al-Khidmat Foundation, consisted of 17 tons of humanitarian supplies, including buckets, powdered milk, tinned food, family packs, sleeping bags and medical kits.
The consignment departed via a chartered flight from Jinnah International Airport in Karachi to Damascus in Syria.
“This 19th consignment has been dispatched for the people of Syria and refugees from Lebanon,” the NDMA said in its statement. “Prior to this, the Government of Pakistan has sent 12 aid consignments to Palestine and six shipments to Lebanon, with a total volume of 1,722 tons.”
The statement reaffirmed Pakistan’s commitment to supporting the people of Palestine and Lebanon who are in distress due to Israel’s military campaigns in the region.
It also emphasized the importance of collaboration by welfare organizations and the Pakistani public in strengthening the government’s efforts to assist those in need.
Pakistan has already established a special fund titled the “Prime Minister’s Relief Fund for Gaza and Lebanon,” inviting public donations.
Since the beginning of the war in October last year, Pakistan has called for a ceasefire in Gaza and has raised the issue at the United Nations, the Organization of Islamic Cooperation (OIC) and other international forums, urging an end to Israeli military actions and a resolution to the humanitarian crisis.
Women in Pakistan’s Karachi protest against honor killings, rising extremism
- Participants of the rally say Karo-Kari is ‘rampant’ in Sindh, oppose marriages to settle disputes
- Protesters also raise concern about proposed amendments to Pakistan’s water distribution system
KARACHI: Hundreds of women marched in Karachi on Sunday to protest honor killings, rising extremism and social injustices, while voicing concerns over proposed changes to Pakistan’s water distribution mechanism earlier this year, which southern provinces argue are detrimental to their interests.
The rally, organized by Sindhiyani Tehreek, a women-led movement supported by civil society groups, drew demonstrators from across Sindh who marched from Regal Chowk to the Karachi Press Club.
Dr. Marvi Sindhu, the central general secretary of the movement, highlighted the threat of so-called honor killings, locally referred to as Karo-Kari. These killings target individuals accused of engaging in illicit relationships or marrying against their families’ wishes, often as a means to restore the perceived honor of the family.
“We are raising our voices against the rampant killing of women in the name of honor in Sindh,” she told Arab News. “We are also here to raise our voices against rising religious extremism.”
Sindhu said Karo-Kari was “alarmingly rampant” in northern Sindh, though she noted other socially conservative practices also undermined the interests and wellbeing of women.
“Women are married to settle disputes or murder cases [in the province], only to face harassment [from their in-laws] for the rest of their lives,” she continued, urging Pakistan’s senior judiciary to form a commission to address such issues.
Amar Sindhu, a professor and member of the Women’s Action Forum, echoed similar concerns, saying the rise in extremist ideologies was deepening social injustices and threatening women’s safety in Sindh.
“We stand united against these injustices and demand action to protect women from violence and oppression,” she said.
Sindhiyani Tehreek, founded in 1980, has been a prominent force in the province, advocating for women’s rights, social justice and the preservation of Sindhi culture. The movement also has a long history of resistance against authoritarian rule, gender-based violence and environmental degradation.
Apart from social and gender issues, the protest also highlighted proposed amendments to the Indus River System Authority (IRSA) Act, 1992, introduced in July to restructure Pakistan’s water regulatory authority.
Key changes include appointing a permanent federal chairman to the authority, replacing the current rotational system where provincial representatives take turns leading IRSA.
The movement’s general secretary condemned the amendments as “unlawful,” warning they could exacerbate interprovincial disputes and deprive Sindh of its rightful share of water.
“Sindh deserves its share of water to sustain its crops, mangroves and marine life,” she said.
One killed in northwestern Pakistan blast targeting religio-political party leader
- Attack on Maulana Shehzad Wazir of Jamiat Ulema-e-Islam has left him critically injured
- The JUI leader was on his way to a mosque in Azam Warsak when the explosion took place
PESHAWAR: One person was killed and six others injured in a blast triggered by an improvised explosive device (IED) targeting a senior leader of a prominent religio-political party in South Waziristan district on Sunday, leaving him in critical condition, police said.
The attack on Maulana Shehzad Wazir comes amid complaints from his Jamiat Ulema-e-Islam (JUI) party about being targeted by militants operating in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province.
JUI chief Maulana Fazlur Rehman also voiced concerns over militant threats disrupting the party’s election campaign in the region ahead of the February 8 national polls, citing warnings from law enforcement about dangers to its candidates.
“The IED was planted in a street leading to Maulana Shehzad Wazir’s mosque, who is politically affiliated with the JUI-F,” Bilal Wazir, a police officer in Wana, the headquarters of South Waziristan tribal district, told Arab News over the phone. “Mufti Ijaz Wazir died on the spot while six others, including Maulana Shehzad Wazir, who was apparently the target of the attack, were left in critical condition.”
The officer said a police contingent was dispatched to the area soon after the explosion to gather evidence and shift the wounded to the hospital.
Asked about the intensity of the blast, he said it shook the entire neighborhood of Azam Warsak, a settlement on the outskirts of Wana.
Speaking to Arab News, Mufti Ijaz Shinwari, the JUI senior vice president in the tribal area, condemned the incident, saying the victims of the attack were religious leaders and key figures of his political party on the provincial level.
“This is inhumane,” he added. “This is clearly a terrorist attack and a cowardly act.”
No group has claimed responsibility for the attack, though Tehreek-e-Taliban Pakistan (TTP), a banned militant group, has a history of targeting civilians, security forces and politicians in the region, aiming to perpetuate instability in KP.
In recent months, the TTP has claimed responsibility for several attacks and is suspected by officials in others.
Earlier this week, however, Daesh, a separate militant outfit, shot dead Hameed Sufi, a senior leader of the Jamaat-e-Islami party, in the adjacent Bajaur tribal district.
In June, four people, including Maulana Mirza Jan, the president of JUI’s Wana chapter, were shot by unidentified attackers.
Pakistan claims Afghanistan’s Taliban rulers are providing shelter to TTP fighters across the porous border separating the two countries. However, the Afghan Taliban insists they do not allow anyone to use their soil to launch violent attacks in the neighborhood.
Smog drops from hazardous to unhealthy in Pakistan’s Lahore
- The city’s AQI index reached a daily average of 243, still considered ‘very unhealthy’
- Current pollution level is 10 times higher than what is deemed acceptable by WHO
ISLAMABAD: The air quality in Pakistan’s smog-choked city of Lahore on Sunday fell below the threshold considered “hazardous” for humans for the first time in two weeks.
The AQI index reached a daily average of 243, still “very unhealthy” but below the highest level of 300 considered “hazardous.”
The level of PM2.5 particles was also more than 10 times higher than the level deemed acceptable by the World Health Organization.
The city of 14 million people close to the border with India peaked at a record AQI of 1,110 on November 14.
Punjab, home to more than half of Pakistan’s 240 million people, closed schools in its major cities on November 6, and on Friday extended the closure to November 24.
It has also banned all outdoor sports in schools until January, and cracked down on polluting tuk-tuks, barbecues and construction sites in pollution hot spots across Lahore.
Seasonal crop burn-off by farmers on the outskirts of the city also contributes to toxic air the WHO says can cause strokes, heart disease, lung cancer and respiratory diseases.
Pakistan’s finance chief says PM Sharif will soon unveil ‘home-grown’ economic agenda
- Muhammad Aurangzeb calls the recent IMF visit part of ongoing talks, enhancing mutual trust
- The visit came weeks after the $7 billion loan approval, making observers think it was unusual
ISLAMABAD: Prime Minister Shehbaz Sharif will soon unveil a “home-grown agenda” for economic development, Finance Minister Muhammad Aurangzeb said on Sunday, as he informed that his interaction with a visiting International Monetary Fund (IMF) delegation last week went well, providing both sides an opportunity to enhance mutual trust.
The IMF delegation, led by Pakistan mission chief Nathan Porter, completed a five-day trip to the country during which it held wide-ranging conversations with the government.
The international lending organization approved a $7 billion loan for Pakistan in September, though it explicitly stated that the delegation’s visit was not part of the first review of the loan program, which is scheduled for the first quarter of 2025.
The IMF visit, which came just weeks after the loan’s approval, surprised observers who considered it unusual, though the finance minister described it as part of an ongoing dialogue between the two sides, noting that it resulted in a positive IMF statement.
Aurangzeb also said the government would specify its overall economic game plan in the next few days.
“The prime minister will soon share a home-grown agenda about how we are going to take forward our overall economic roadmap,” he said, without disclosing its details. “It has been very well syndicated with all the stakeholders.”
The minister emphasized that dealings between Pakistan and the IMF were completely transparent, with all agreed details available in the public domain. He noted the recent discussions with the IMF covered taxation and energy reforms, along with the privatization plan for state-owned enterprises and public finances.
“I welcomed this visit because this is an ongoing dialogue to ensure mutual credibility and trust,” he added. “We have shared our roadmap with them and explained how we are taking things forward.”
The finance minister said the two sides would continue to hold virtual talks, though he noted that he appreciated every opportunity to meet IMF officials face-to-face.
He also mentioned that discussions with the international lender included climate resilience and decarbonization, emphasizing that these issues had to be addressed alongside broader economic challenges rather than sequentially.
Pakistan has faced a prolonged economic crisis marked by rapid currency devaluation and dwindling foreign exchange reserves, which forced it to seek external financial assistance from friendly nations and global financial institutions.
The country has seen an improvement in its macroeconomic indicators in recent months, though it has yet to fully recover from its financial difficulties.
Reflecting on his visit to Washington for the World Bank and IMF meetings earlier this year, Aurangzeb described the discussions as productive.
“They gave us a platform to share with the comity of nations about how we turned the economy around in 14 months,” he said. “We also got an important message, which is that there is no room for complacency and we must stay the course [of stringent economic reforms].”
