Pakistan’s pharmaceutical industry threatens nationwide strike, seeks abolition of import tax

Pharmacy employees wearing facemasks as a preventive measure against the coronavirus attend to customers in Islamabad, Pakistan, on March 23, 2020. (AFP/File)
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Updated 17 March 2022
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Pakistan’s pharmaceutical industry threatens nationwide strike, seeks abolition of import tax

  • Government promised in January to refund tax after full consumption of raw material to prevent price hikes in local market
  • Industry leaders say will take them more than year to utilize imported raw material while manufacturing medicines

ISLAMABAD: Pakistan’s pharmaceutical industry on Thursday threatened to hold a nationwide strike and shut down factories if the government failed to withdraw a 17 percent tax on the import of medicinal raw material in the next five days.
The government imposed the tax in January by introducing a supplementary finance bill, commonly known as mini-budget, while promising that the amount would be refunded to the industry to prevent an increase in drug prices in the local market.
The government also withdrew tax exemptions on numerous items and levied additional taxes of Rs360 billion to meet some major conditions imposed by the International Monetary Fund for the resumption of a $6 billion bailout package.
Industry officials informed the government had reneged on its promise, adding the pharmaceutical industry’s Rs2 billion had yet to be refunded.
“We will be forced to protest in the streets if the government doesn’t withdraw this unjustified tax in the next five days,” Qazi Muhammad Mansoor Dilawar, chairman Pakistan Pharmaceutical Manufacturers Association, said during a news conference in Islamabad along with other top industry office bearers.
He said the industry representatives had recently held three meetings with finance minister Shaukat Tarin before deciding to go public with their grievances since their efforts had gone to a waste.
“The government apparently wants to crush the pharmaceutical industry by only allowing tax refunds after raw material consumption,” Dilawar maintained while adding it would take the industrial players over a year to fully utilize the imported raw material to manufacture medicines.
“We are not willing to accept this and urge the government to either fully withdraw the tax or refund it at the purchase stage,” he said.
He pointed out there was a risk of medicine shortages and price hikes of essential drugs if the government would not accept these demands.
“We cannot increase the price of any medicine on our own,” he clarified, “but the shortage will surely create a black market.”
The pharmaceutical industry is among the most regulated sectors in Pakistan, and only the federal government is authorized to fix the prices of medicines on the recommendation of a drug regulator.
The industry has also been meeting about 80 percent of the local demand of lifesaving drugs. It also contributes to the country’s export revenue and provides jobs to about one million people.
“Our country and people cannot afford medicine imports due to the given economic conditions, so the government should facilitate the pharmaceutical industry instead of imposing unjustified taxes on it,” Dilawar added.


Policeman killed, over a dozen injured in roadside blast in Pakistan’s Balochistan

Updated 5 sec ago
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Policeman killed, over a dozen injured in roadside blast in Pakistan’s Balochistan

  • The blast appeared to target a police van passing by a girls school in the Mastung district of the province
  • Balochistan, home to a long-running insurgency, has witnessed a spike in militant violence in recent months

QUETTA: A policeman was killed and more than a dozen other persons were injured in a roadside blast in Pakistan’s southwestern Balochistan province on Friday, police said, in the latest incident of violence to hit the restive region.
The blast appeared to target a police van passing by a girls school in the Mastung district of the province, according to police and local administration officials.
Hafiz Azam, a police official in Mastung, said the police mobile van came under attack when it was on a routine patrol on Friday morning.
“One policeman has been killed and 13 others have been injured in the blast,” Azam told Arab News.
No group immediately claimed responsibility for the blast.
“We have cordoned-off the area and are shifting the injured to the hospital,” Baz Muhammad Marri, the Mastung deputy commissioner, told Arab News.
Balochistan, which borders Iran and Afghanistan and is home to major China-led projects such as a strategic port and a gold and copper mine, has been the site of a decades-long separatist insurgency by ethnic Baloch militants. The province has lately seen an increase in attacks by separatist militants.
On Tuesday, five people were killed in an attack by armed men on the construction site of a small dam in Balochistan’s Panjgur district. The outlawed Baloch Liberation Army (BLA), the most prominent of several separatist groups, claimed responsibility for the attack along with killing of two other persons in Kech and Quetta districts.
This month, 21 miners working at privately run coal mines were killed in an attack by unidentified gunmen.
The separatists accuse the central government of exploiting Balochistan’s mineral and gas resources. The Pakistani state denies the allegation and says it is working to uplift the region through development initiatives.
Besides Baloch separatists, the restive region also has a presence of religiously motivated militant groups, who frequently target police and security forces.
Islamabad says militants mainly associated with the Pakistani Taliban frequently launch attacks from Afghanistan and has even blamed Kabul’s Afghan Taliban rulers for facilitating anti-Pakistan groups. Kabul denies the allegation.


TikTok bandits terrorize, transfix Pakistan riverlands

Updated 12 min 32 sec ago
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TikTok bandits terrorize, transfix Pakistan riverlands

  • The outlaws parade hostages in clips for ransom or exhibit arsenals of heavy weapons in musical TikToks
  • Sweeping police operations and even an army incursion in 2016 failed to impose law and order in the area

RAHIM YAR KHAN: With a showman’s flair and an outlaw’s moustache, the Pakistani gangster dials the hotline on his own most wanted notice — taunting the authorities who put a bounty on his head.
Staring down the lens in a social media clip, Shahid Lund Baloch challenges the official on the phone and his thousands of viewers: “Do you know my circumstances or my reasons for taking up arms?“
The 28-year-old is hiding out in riverine terrain in central Punjab which has long offered refuge to bandits — using the Internet to enthral citizens even as he preys on them, police say.
On TikTok, Facebook, YouTube and Instagram he fascinates tens of thousands with messages delivered gun-in-hand, romanticizing his rural lifestyle and cultivating a reputation as a champion of the people.
But he is wanted for 28 cases including murder, abduction and attacks on police — with a 10 million rupee ($36,000) price on his head.
“People who are sitting on the outside think he is a hero, but the people here know he is no hero,” said Javed Dhillon, a former lawmaker for Rahim Yar Khan district close to the hideouts of Baloch, and other bandits like him.
“They have been at the receiving end of his cruelty and violence.”
Baloch is said to dwell on a sandy island in the “Katcha lands” — roughly translating as “backwaters” — on the Indus River which skewers Pakistan from top to bottom.
High-standing crops provide cover for ambushes and the region is riven by shifting seasonal waterways that complicate pursuit over crimes ranging from kidnapping to highway robbery and smuggling.
At the intersection of three of Pakistan’s four provinces, gangs with hundreds of members have for decades capitalized on poor coordination between police forces by flitting across jurisdictions.
“The natural features of these lands support the criminals,” said senior police officer Naveed Wahla. “They’ll hide out in a water turbine, move in boats, or through sugarcane crops.”
Sweeping police operations and even an army incursion in 2016 failed to impose law and order. This August, a rocket attack on a police convoy killed 12 officers.
“In the current state of affairs here there is only fear and terror,” said Haq Nawaz, whose adult son was abducted late September for a five million rupee ransom he cannot afford.
“There is no one to look after our wellbeing,” he complains.

In this photograph taken on October 10, 2024, Haq Nawaz, whose adult son was abducted by bandits, speaks during an interview with AFP in Rahim Yar Khan district. (AFP)

But the gangs are increasingly online.
Some use the web to lay “honey-traps” luring kidnap victims by impersonating romantic suitors, business partners and advertising cheap sales of tractors or cars.
Some parade hostages in clips for ransom or exhibit arsenals of heavy weapons in musical TikToks.
Baloch has by far the largest online profile — irking police with a combined 200,000 followers.
Rizwan Gondal, the head police officer of Rahim Yar Khan district, says that his detectives have a dossier proving his “heinous criminal activities.”
“Police have made multiple efforts to capture him however he escapes,” he added.
“He’s a very media savvy guy. Let him say, ‘I am going to surrender before the state to prove that I am innocent’ and let the media cover it.”
In his clips Baloch protests his innocence whilst casting himself as a vigilante in a lawless land, claiming he chose to fight only after family members were slain in tribal clashes.
“We couldn’t get justice from the courts so I decided to pick up arms and started fighting with my enemies,” Baloch told AFP. “They killed our people, we killed theirs.”
But he also plays off the cycle of state neglect which breeds banditry and in turn relegates the destitute farming communities further to society’s fringes.
“The villagers here are not viewed as human but as animals,” Baloch told AFP. “If they gave us schools, electricity, government hospitals and justice, why would anyone even think of taking up arms?“
In comments sections his viewers call him “beloved brother bandit” and a “real hero.” “You have won my heart,” claims another.
“He is popular in the mainstream because he is giving the police authorities a tough time,” said former lawmaker Dhillon.
“People like that he says the things they can’t say out loud against people they can’t speak out against.”
Police have proposed countering bandits by downgrading mobile phone towers to 2G in the Katcha lands, preventing social media apps from loading.
That has not yet happened and would risk cutting communities off further still.
But more low tech solutions have had some success.
An anti-honey trap police cell cautions citizens against the gangs with the help of billboards and loudspeakers at checkpoints entering the area, preventing 531 people from falling prey since last August, according to their data.
Baloch scoffs at police. But one problem plaguing his bid for online stardom has his attention.
Copycat social media accounts pretend to be him and share duplicates of his videos — earning thousands more followers and views than his legitimate accounts.
He feels robbed. “I don’t know what they are trying to achieve,” he complains.
But for police, his Internet hero status is at odds with the toll of his crimes.
“People will idealize Shahid Lund Baloch but when they ultimately get kidnapped by him, then they will realize who Shahid Lund Baloch really is,” said senior officer Wahla.


Pakistan revenue authority launches advanced system to boost tax collection

Updated 01 November 2024
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Pakistan revenue authority launches advanced system to boost tax collection

  • Development comes amid Pakistan’s efforts to prevent tax evasion worth billions of rupees
  • Islamabad has set a challenging tax revenue target of $46.66 billion for the new fiscal year

ISLAMABAD: Pakistan’s tax regulator has launched an advanced Stock Register system to optimize tax administration and boost revenue collection, it said on Thursday, amid efforts to prevent tax evasion.

The development comes amid Pakistan’s desperate attempts at preventing tax evasion worth billions of rupees and meeting a challenging tax revenue target of Rs13 trillion ($46.66 billion) for the new fiscal year that started July 1, a near 40 percent jump from the last year. 

Pakistan last year came to the brink of a default as the economy shriveled amid political chaos, impact of 2022 floods, and decades of mismanagement. Last-minute loan rollovers from friendly countries as well as a $3 billion bailout from the International Monetary Fund (IMF) saved the nation.

The situation prompted Islamabad to introduce institutional reforms, including the digitization of the FBR, to put the economy back on track as the South Asian country grappled shrinking foreign exchange reserves, high inflation, and staggering public debts.

“This robust digital infrastructure grants tax officers real-time, in-depth access to registered persons’ data, bolstering transparency and securing compliance with Income Tax (IT) and Sales Tax (ST) regulations,” the FBR said on X.

The Stock Register functions as a sophisticated information and reporting system, and empowers tax officers to make precise tax assessments and mitigate the risk of tax evasion, according to the revenue authority.

The FBR said it had also launched the Information Center 2.0 portal to enhance its capacity to strengthen the national exchequer.

“Accessible exclusively through the IRIS tax officers’ platform at FBR field formations, Information Center 2.0 features advanced filters and search functionalities, enabling swift data retrieval to support compliance and precise assessments,” it said.

“This initiative represents a pivotal advancement in tax collection efforts. It fosters robust reporting, minimizes tax evasion & strengthens resource & financial management across the business landscape, ensuring adherence to tax regulations through a centralized data ecosystem.”

Since avoiding default last year, Pakistan has reached an agreement with the IMF for a new $7 billion loan. The South Asian country is currently trying to boost trade and investment to revive its fragile $350 billion economy.


Pakistan increases price of petrol by Rs1.35 per liter till next fortnight

Updated 01 November 2024
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Pakistan increases price of petrol by Rs1.35 per liter till next fortnight

  • New price of petrol increases from Rs247.03 per liter to Rs248.38 per liter, says Finance Division 
  • Petroleum prices revised based on price variation in the international market, says notification international market, says notification 

ISLAMABAD: Pakistani authorities have increased the price of petrol by Rs1.35 per liter till the next fortnight, the country’s Finance Division said in a notification late Thursday. 

As per the notification, the new price of petrol has been increased from Rs247.03 per liter to Rs248.38 per liter. 

“The Oil and Gas Regulatory Authority (OGRA) has worked out the consumer prices of petroleum products, based on the price variation in the international market,” OGRA said in a statement. 

Meanwhile, the government also increased the price of high speed diesel by Rs3.85 per liter, increasing it from Rs251.29 per liter to Rs255.14 per liter. 

The price of kerosene was slashed by Rs1.48 per liter, decreasing it from Rs163.02 per liter to Rs161.54 per liter, and the price of light diesel oil was slashed by Rs2.61 per liter, bringing it down from Rs150.12 per liter to Rs147.51 per liter. 

Pakistan revises petroleum prices every fortnight. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers in Pakistan while any increase in the price of diesel is considered highly inflationary as it is mostly used to power heavy transport vehicles and particularly adds to the prices of vegetables and other eatables.

However, the negligible decrease in petrol and diesel prices is unlikely to provide much relief to the inflation-stricken Pakistanis.


Middle East burger chain Salt to begin operations in Pakistan ‘soon’

Updated 01 November 2024
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Middle East burger chain Salt to begin operations in Pakistan ‘soon’

  • ’Salt’ has branches in Saudi Arabia, Qatar, UK and Hungary already 
  • Salt did not mention which Pakistani cities it plans on opening outlets in

ISLAMABAD: International fast food chain “Salt” announced on Wednesday that it will expand its operations into Pakistan, vowing to provide its customers in the South Asian country high quality food “soon.”

Salt is a Middle East fast food chain based in Qatar since 2005 that specializes in burgers containing wagyu beef — a type of high-quality beef that comes from the Wagyu cattle breed native to Japan. The company founded by Qatar-based Ali Ahmed Buhindi has been running branches in Qatar, Saudi Arabia, the United Arab Emirates, the United Kingdom and also Hungary. 

“Time to pass the salt, Pakistan! SALT, is coming in hot with all the good vibes and flavors to slide right into your cravings,” the burger joint Salt said in a post on Instagram with a picture titled “coming soon.”

Salt did not mention which Pakistani cities it plans on opening its branches in. 

The burger chain offers a wide range of beef burgers that include brisket, truffle, signature, hook and original sliders. 

Its chicken burgers include Cheetos, pine chicken and crispy chicken sliders flavors. 

International fast food restaurants are quite popular in Pakistan with the likes of McDonald’s, KFC and Hardees operating successfully in multiple cities for decades.