ISLAMABAD: Pakistan's National Assembly on Thursday passed a supplementary finance bill and a legislation on the autonomy of the central bank with majority vote amid protest by opposition parties, meeting the International Monetary Fund's prerequisites for the revival of a $6 billion loan package.
The government tabled the bills in the lower house of parliament last month to impose a uniform 17 percent general sales tax, withdraw tax exemptions on a number of items, and grant autonomy to the State Bank of Pakistan.
The passage of the two bills was to ensure that Pakistan's sixth review for the IMF's Extended Fund Facility would get clearance from the international financial institution's executive board.
The IMF was originally scheduled to review Pakistan's progress on January 12 in its board meeting to release a $1 billion tranche. However, it postponed the process until the end of the month after a delay in the passage of the bills.
Pakistan's finance chief Shaukat Tarin said during his speech on the floor of the house on Thursday it was "painful" for the government to undertake economic reforms amid the COVID-19 pandemic, soaring international commodity prices and crisis in neighboring Afghanistan while urging the opposition to endorse the bills.
“We were forced to go to the IMF,” he said. “There was no escape from the IMF.”
Listing the government's economic achievements, he said the revenues were registering a 35 percent growth while foreign remittances and exports would each reach $31 billion by the end of the current fiscal year.
"We'll have to fix the structural problems of the taxation system," he continued, adding the IMF was pushing Pakistan to levy a uniform rate of general sales tax across the country.
Tarin noted the legislation would help document the economy and increase the government's revenue.
"Everyone wants to escape the documentation [of the economy] since their incomes will be taxed after that," he said, as he dismissed the opposition's claim that the legislation would bring an "inflationary storm" in the country.
The minister said Rs280 billion out of a total of Rs350 billion of new taxes were refundable and the government would only be collecting Rs70 billion by imposing additional taxes.
The finance chief informed the house that only Rs3.5 trillion out of Rs20 trillion of retail sales were documented, adding there was always an outcry when the government tried to document that money.
He said that taxes on milk, laptops, food and bakery items were withdrawn to facilitate the public.
About the central bank's autonomy, Tarin dismissed the opposition's concerns that the legislation would undermine the government's control over the bank.
The minister said the government would appoint the bank's board of directors and have "full power" over it.
Earlier, the opposition parties tried to introduce amendments in the bills, though they were all rejected by the government.
Members of the opposition parties chanted slogans against the proposed legislations and displayed anti-government placards.
"The friends of IMF are traitors," they said while chanting slogans.
Pakistan passes IMF-backed supplementary finance bill amid opposition protest
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Pakistan passes IMF-backed supplementary finance bill amid opposition protest
- The passage of mid-year budget along with a bill on State Bank autonomy will help revive a $6 billion IMF loan program
- Pakistan's finance chief says the government was forced to go to the international lender for loan since it had no alternative
A look at recent deadly attacks in Pakistan as it battles rising militancy
- Government facing insurgencies in northwest and growing separatist insurgency in southwest
- Pakistan is also currently at loggerheads with both its neighbors India and Afghanistan
Following are some recent deadly attacks in Pakistan, where the government is facing insurgencies on two fronts — militant attacks in the northwest and a growing separatist insurgency in the south.
MAY 21, 2025
At least three children were among five people killed when a suicide bomber targeted an army school bus in the restive Pakistani southwestern province of Balochistan, in an attack the military blamed on Indian proxies.
The Indian government did not respond to a request for comment on the accusation.
MARCH 11, 2025
A total of 31 people, including soldiers, staff, and civilians, were killed by militants who hijacked a train as it traveled through a remote mountain pass in Balochistan. The Baloch Liberation Army (BLA), the biggest of several ethnic armed groups fighting the government, claimed responsibility.
MARCH 4, 2025
Suicide bombers drove two vehicles packed with explosives into a military base in the town of Bannu in the northwest, killing 18 people, including six children.
No group claimed responsibility for the violence.
NOVEMBER 1, 2024
A blast targeting a police van in Mastung town in Balochistan killed seven people, including five school students, and injured 23 others.
No group claimed responsibility.
AUGUST 26, 2024
At least 38 civilians and 14 soldiers were killed as separatist militants attacked police stations, railway lines and highways in Balochistan, and security forces launched retaliatory operations.
The BLA claimed responsibility for the attacks, the most widespread in the country in years.
DECEMBER 12, 2023
At least 57 people, including seven children, died as suicide bombings ripped through two mosques in Mastung while believers marked the birthday of the Prophet Muhammed (pbuh).
No group claimed responsibility.
JULY 31, 2023
A suicide bombing targeting a hard-line religious group’s political rally in Khyber Pakhtunkhwa province’s Bajaur region killed 56 people. The Daesh militant group claimed responsibility for the blast, which took place in northwestern Pakistan.
Pakistan approves authority to regulate, accelerate growth of virtual assets economy
- Pakistan set up national crypto council in March to create legal framework for cryptocurrency trading, luring foreign investment
- Last month, government introduced first policy framework to set rules for how digital money, service providers should operate in Pakistan
KARACHI: The government has approved setting up the Pakistan Digital Assets Authority (PDAA) to regulate blockchain-based financial infrastructure, the finance ministry said on Wednesday, as the country moves to adopt a strategy to regulate and accelerate the growth of its virtual assets economy.
Pakistan set up a national crypto council (PCC) in March to create a legal framework for cryptocurrency trading in a bid to lure international investment. One of the world’s most powerful people in crypto, co-founder and former CEO of Binance Changpeng Zhao, was subsequently appointed as a strategic adviser to the PCC.
Cryptocurrencies including bitcoin are not officially regulated in Pakistan but are also not illegal or banned. As of Jan. 16, 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.
Last month, Pakistan introduced its first-ever policy framework, created by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan. The policy has been formulated to align with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF).
“The aim is to ensure FATF-compliant innovation, economic inclusion, and responsible adoption of digital assets,” the finance ministry said, announcing the approval of the Pakistan Digital Assets Authority.
Pakistan is experiencing a surge in the adoption of digital assets, driven by a growing tech-savvy population and increasing government support for blockchain technology.
“Pakistan must regulate not just to catch up but to lead. With the PDAA, we are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation,” the finance ministry statement said, quoting finance minister, Muhammad Aurangzeb, who is also the chairman of the Pakistan Crypto Council.
The PDAA will serve as a specialized regulatory body with a mandate to oversee licensing, compliance, and innovation within the digital asset ecosystem. It will regulate exchanges, custodians, wallets, tokenized platforms, stablecoins, and DeFi applications, all under a single framework.
“This strategic decision aligns Pakistan with other forward-thinking economies such as the UAE, Japan, Singapore, and Hong Kong, all of which have established digital asset regulators to foster innovation while ensuring compliance with global financial norms,” the finance ministry said.
The PDAA is expected to regulate an over $25 billion informal crypto market, enable tokenization of national assets and government debt, provide legal clarity to global and local investors, facilitate monetization of Pakistan’s surplus electricity through regulated bitcoin mining and empower young people and startups to build blockchain-based solutions at scale.
“This is not just about crypto,” Bin Saqib, CEO of Pakistan Crypto Council, said.
“It’s about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation.”
According to Statista, a German online platform that specializes in data gathering and visualization, the projected revenue in the digital assets market in Pakistan is estimated to reach $1.6 billion by 2025 while the number of users is expected to reach 27.10 million users.
Pakistan drop stars Shaheen, Azam and Rizwan for Bangladesh T20s
- Batsmen Azam and Rizwan were omitted for the second consecutive T20 series after being criticized for slow scoring
- Salman Ali Agha will captain Pakistan as they look to next year’s Twenty20 World Cup hosted by India and Sri Lanka
KARACHI: Pakistan dropped stars Shaheen Shah Afridi, Babar Azam and Mohammad Rizwan on Wednesday as they named a new-look squad for three home Twenty20 internationals against Bangladesh.
Former New Zealand coach Mike Hesson will take charge for the first time after being appointed last week, replacing Aaqib Javed.
Salman Ali Agha will captain Pakistan as they look toward next year’s Twenty20 World Cup, to be hosted by India and Sri Lanka.
Fast bowler Shaheen had played in Pakistan’s last T20 series in New Zealand in March, but batsmen Azam and Rizwan were omitted for the second consecutive T20 series after being criticized for slow scoring.
“The squad has been selected based on players’ performances in the ongoing Pakistan Super League, which concludes on May 25,” the Pakistan Cricket Board said in a statement.
Shaheen has taken 12 wickets for Lahore Qalandars in 10 PSL matches at an economy rate of 8.20.
Opener Sahibzada Farhan earned a recall after topping the PSL batting charts with 394 runs.
Batsmen Saim Ayub and Fakhar Zaman return after missing the New Zealand tour with injuries.
Fast bowler Hasan Ali is back after being sidelined with multiple injuries since May last year.
The PCB said that the series match schedule, which has been affected by a 10-day delay to the PSL caused by the deadly India-Pakistan conflict, will be announced soon with all three matches to be held in Lahore.
Pakistan squad: Salman Ali Agha (captain), Shadab Khan, Abrar Ahmed, Faheem Ashraf, Fakhar Zaman, Haris Rauf, Hasan Ali, Hassan Nawaz, Hussain Talat, Khushdil Shah, Mohammad Haris, Mohammad Wasim, Mohammad Irfan Khan, Naseem Shah, Sahibzada Farhan, Saim Ayub.
Pakistani delegation prepares to visit world capitals in diplomatic push following India standoff
- Head of delegation Bilawal Bhutto Zardari says contentious issues like disputed Kashmir, terrorism, water should be resolved
- Pakistan Peoples Party chairman laments India “weaponizing” water, calls it “both unfortunate and extremely dangerous”
ISLAMABAD: A high-level delegation set up by Prime Minister Shehbaz Sharif to present Pakistan’s position and advocate for the country in world capitals following a recent military conflict with India is receiving briefings from top foreign office officials and would carry a “message of truth and peace,” the head of the team said on Wednesday.
Sharif announced the diplomatic group last week and said it would be headed by Pakistan Peoples Party Chairman Bilawal Bhutto Zardari, who is a former foreign minister.
Speaking to media on Wednesday, Bhutto Zardari said his team had received a briefing from the ministry of foreign affairs on the recent standoff with India and a ceasefire brokered by the US, as well as on contention issues like the Kashmir dispute, terrorism, and India’s unilateral move to suspend the Indus Water Treaty.
“We are very thankful to the Foreign Secretary and the entire team here for briefing us. We hope that when we go forward with Pakistan’s message, a message of truth and peace, people will be willing to listen,” Bhutto Zardari said.
“We have always aimed to ensure that not only between India and Pakistan, but also throughout the entire region, flashpoints, whether it is the long-standing issue of Kashmir or terrorism, are addressed.”
As a victim of terrorism itself, Pakistan was “committed to seeing it dealt with and eliminated,” Bhutto Zardari said.
Tensions between nuclear-armed neighbors Pakistan and India are high after they struck a ceasefire on May 10 following the most intense military confrontation in decades.
Both countries accuse the other of supporting militancy on each other’s soil — a charge both capitals deny.
The latest military escalation, in which the two countries traded missile, drones and artillery fire, was sparked after India accused Pakistan of supporting militants who attacked dozens of tourists in Indian-administered Kashmir on April 22, killing 26. Islamabad denies involvement.
“We have just witnessed how, after a terrorist incident, two nuclear countries were on the warpath. This makes it even more important for us to address the issue of terrorism,” Bhutto Zardari said.
“We should not only talk about it but also work toward finding a solution. Our goal should be to rid this region of terrorism. And if, God forbid, such a problem arises in the future, there should never be a situation where two nuclear-armed countries are pushed toward war.”
After the tourist attack, Delhi “put in abeyance” its participation in the Indus Waters Treaty of 1960, which governs usage of the Indus river system. The accord has not been revived despite the rivals agreeing on a ceasefire last week following the conflict.
Islamabad said after India suspended the treaty that it considered “any attempt to stop or divert the flow of water belonging to Pakistan” to be an “act of war.”
About 80 percent of Pakistani farms depend on the Indus system, as do nearly all hydropower projects serving the country of some 250 million.
Bhutto Zardari lamented that India was “weaponizing” water, calling it “both unfortunate and extremely dangerous.”
“The people of Pakistan want peace, and I believe the majority of Indians also desire peace between our two nations. But that peace will not be possible unless we resolve the issues of Kashmir, terrorism, and the water dispute that India has initiated,” he said.
“At this moment, Pakistan is clearly saying that we want peace, we want dialogue, while India lags behind on this path.”
Four children among six killed in school bus attack in Pakistan’s southwest
- Around 40 students were on bus headed to army-run school, administrator of Khuzdar where attack took place says
- Pakistan military blames assault on “Indian terror proxies,” New Delhi has not yet commented on the accusations
KARACHI: The chief minister of Pakistan’s southwestern Balochistan province said on Wednesday six people, including four children, were killed in a militant attack on a school bus, with a government official saying the bus had been en route to an army-run school.
The attack took place in Balochistan’s Khuzdar district. The bus was on its way to drop students off at a military school in the area, Yasir Iqbal, the administrator of Khuzdar district, told media.
“These coward terrorists attacked them [school bus] with a vehicle-borne IED and in that attack, 46 children were traveling on that bus, of which four children have been martyred and the rest are injured,” Balochistan Chief Minister Sarfraz Bugti told media.
“Firstly, we condemn this incident, we strongly condemn it. Children are innocent and they have nothing to do with wars.”
The Pakistan military blamed “Indian terror proxies” for being behind the attack.
Tensions between nuclear-armed neighbors Pakistan and India are high after they struck a ceasefire on May 10 following their most intense military confrontation in decades.
Both countries accuse the other of supporting militancy on each other’s soil — a charge both capitals deny.
The latest military escalation, in which the two countries traded missiles, drones and artillery fire, was sparked after India accused Pakistan of supporting militants who attacked dozens of tourists in Indian-administered Kashmir on April 22, killing 26. Islamabad denies involvement.
“After having miserably failed in the battlefield, through these most heinous and cowardly such like acts [attacking school bus], Indian proxies have been unleashed to spread terror and unrest in Balochistan and Khyber Pakhtunkhawa,” the army said in a statement, referring to two Pakistani provinces.
New Delhi has not yet commented on the accusations.
There was no immediate claim of responsibility for the attack, but suspicion is likely to fall on separatist groups such as the Balochistan Liberation Army, which in March blew up a railway track and took passengers from a train hostage, killing 31.
Southwestern Balochistan is Pakistan’s largest province by area, but smallest by population and most impoverished. The region of some 15 million people is home to key mining projects and a deep seaport that China is building but has been roiled by a decades-old insurgency.
“Targeting innocent children is a barbaric act, those responsible deserve no leniency,” Interior Minister Mohsin Naqvi said in a statement, describing the attack as a “vile conspiracy to destabilize the country.”
Wednesday’s attack was reminiscent of one of the deadliest militant attacks in Pakistan’s history when over 130 children were killed in a military school in the northern city of Peshawar in 2014. That attack was claimed by the Pakistani Taliban group.
– With inputs from Reuters
