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Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns

A shopkeeper shows a mobile phone to a customer at a mobile phone store in Karachi on May 20, 2022. (AFP/File)
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Updated 30 April 2024
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Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns

  • In December, the Federal Board of Revenue said Pakistan had around 5.2 million taxpayers in 2022, out of a population of 240 million people
  • The government has decided to digitalize tax collection system to prevent leakages even as large segment of economy remains undocumented
Updated 30 April 2024
KHURSHID AHMED   

ISLAMABAD: Pakistan has decided to block mobile phone connections of more than 500,000 individuals who had not filed their income tax returns for Tax Year 2023, the country’s tax regulator said on Tuesday.

Pakistan’s narrow tax base and enduring tax evasion issue have often led to the problem of insufficient revenue collection. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing.

In Dec., the Federal Board of Revenue (FBR) said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during this fiscal year.

On Tuesday, the FBR issued an order to enforce filing of returns by the persons who were not appearing on the active taxpayer list.

“FBR has taken decisive action by issuing an order to disable mobile phone SIMs associated with 506,671 individuals who fall under the aforementioned category,” the regulator said in a statement.

“The Pakistan Telecommunication Authority (PTA) and all telecom operators have been instructed to enforce the ITGO with immediate effect, ensuring swift implementation of the order.”

These mobile connections would remain blocked until restored by the FBR or the concerned Inland Revenue commissioner, according to the statement. Telecom operators were asked to furnish a compliance report to the FBR by May 15.

Amid its efforts to broaden the tax base, the government of Prime Minister Shehbaz Sharif has recently decided to digitalize the tax collection system to prevent leakages even as a large segment of the national economy remains undocumented.

Pakistan, which has been facing an economic meltdown, is also making efforts to introduce structural economic reforms. The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of its gross domestic product, for the current fiscal year before the government presents its budget in June.

Topics: mobile connections Federal Board of Revenue tax returns

Pakistani port authorities under scrutiny over likely award of dredging contract to Chinese firm

Updated 20 December 2024
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Pakistani port authorities under scrutiny over likely award of dredging contract to Chinese firm

  • Karachi Port Trust declared China Harbor Engineering Company lowest bidder, likely to award contract to it
  • A final evaluation report reveals the Chinese firm scored lower than Dutch bidder Van Oord in two categories
Updated 20 December 2024
NAIMAT KHAN

KARACHI: The Karachi Port Trust (KPT) has been under scrutiny for suspected foul play in the award of a dredging contract, which is likely to go to a Chinese firm that did not comply with the Pakistan’s procurement rules, according to documents and media reports.
The contract, which was advertised in July, will require the successful bidder to clear mud, weeds and rubbish from 4 million cubic meters of the Karachi port’s navigation channel. The port, one of the largest in South Asia, handles about 60 percent of Pakistan’s seaborne cargo, making the dredging project crucial to its operations.
Three of the four bidders offered dredging equipment with a capacity exceeding 15,000 cubic meters, according to the documents. Reports published in Pakistani media said the Chinese firm, China Harbor Engineering Company (CHEC), submitted a bid with underpowered equipment that failed to meet the required timelines and quality standards, making it non-compliant with the specifications outlined in the tender.
In November, Pakistan’s Public Procurement Regulatory Authority (PPRA) sought an explanation from the Karachi port authorities as to why they had not issued a full technical evaluation report of the bids.
“The procuring agency is hereby required to explain as to why complete technical evaluation report containing justification for acceptance or rejection of technical proposals could not be issued,” it said, highlighting the breach of a mandatory seven-day standstill period following the announcement of technical evaluation results as stipulated in Public Procurement Rules.
Van Oord, a leading Dutch dredging, land reclamation and island construction company, filed a formal complaint with the PPRA on November 15 with regard to the tender. The Dutch company alleged that the KPT announced technical evaluation results on the same day as the opening of financial proposals, which was in violation of Section 35 of the Public Procurement Rules that mandates the announcement of a complete technical evaluation report prior to the financial evaluation.
Van Oord said this procedural oversight deprived the bidders of the opportunity to appeal the results before the Grievance Redressal Committee, a process also mandated by Section 48 (3) the Public Procurement Rules. The complaint highlighted that any breach of procurement rules could be considered “mis-procurement” under Section 50 of the Public Procurement Rules and called for a “thorough investigation.”
On Friday, Arab News approached KPT spokesperson Naheed Tariq, but she declined to comment on the matter.
The “final evaluation report” posted on the KPT’s official website indicated that CHEC-Al Fajr International (AFI) Joint Venture (JV) was declared the lowest bidder. CHEC-AFI offered a bid of Rs6.49 billion, while Van Oord’s bid was Rs7.51 billion, according to the document.
The report revealed that two bidders received almost equal score in six of eight technical categories. However, the Chinese consortium scored significantly lower in the category of “Method of Performing Work,” receiving 14 out of 20 points, while it scored 47 out of 50 for “Availability of Major/Critical Equipment,” compared to Van Oord’s 100 percent scores in both categories.

Topics: Karachi port karachi port trust

Pakistani oncologists debunk ‘misleading’ claims about chemotherapy aired on state TV

Updated 20 December 2024
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Pakistani oncologists debunk ‘misleading’ claims about chemotherapy aired on state TV

  • Panelists on a PTV show last week said doctors in Pakistan recommended excessive chemotherapy sessions to treat cancer patients
  • Society of Medical Oncology Pakistan criticizes the panelists for sharing ‘misleading’ information, says they follow global standards
Updated 20 December 2024
NAIMAT KHAN

ISLAMABAD: An association of Pakistani oncologists on Friday described as “misleading” the claims of some analysts about chemotherapy and its use in treatment of cancer patients, which were aired by Pakistan’s state television last week.
Rizwani Razi, a political commentator, on Dec. 13 declared chemotherapy in Pakistan a “fraud” and said on a Pakistan Television (PTV) show it was used to swindle patients of billions of rupees. Without naming the doctor, Razi said he was informed by an Australian oncologist that they feared going beyond three chemotherapy sessions of a patient and in Pakistan, the treatment usually involved eight sessions, calling oncologists suggesting excessive sessions a “fraud.”
He said Punjab Chief Minister Maryam Nawaz was going to bring a “Chinese technology” to Pakistan to successfully treat cancer patients in the country. Ameen Hafeez, another panelist, hailed Nawaz for offering free treatment to all cancer patients at Nawaz Sharif Cancer Care Hospital. Shumaila Chaudhry, the host of show ‘Siyasat Tonight,’ said those who were scared of the disease should stop being afraid of it, as its “solution” was soon going to be introduced in the country.
In a statement issued on Friday, the Society of Medical Oncology Pakistan (SMOP) criticized the panelists for sharing “misleading” information about cancer treatment and said “such statements could endanger people’s lives.”
“Authentic institutes such as National Comprehensive Cancer Network (NCCN), European Society for Medical Oncology (ESO), and American Society of Clinical Oncology (ASMO) stress the important role of chemotherapy in cancer treatment,” the SMOP said. “In Pakistan, cancer is treated according to international standards.”
Nawaz announced in October the establishment of 920-bed Nawaz Sharif Cancer Care Hospital in Lahore, saying the “expertise to treat cancer are quite rare in Pakistan, for which people spend all their savings.”
This week, Punjab Information Minister Azma Bukhari said that Nawaz, during her recent visit to China, had signed an agreement with a Chinese firm for the transfer of ‘HYGEA’ innovative therapy, which uses extreme cold to destroy cancer cells and is minimally invasive.
The SMOP said airing misleading information regarding such topics was not only dangerous for patients, but it impacted public confidence in medical procedures and treatment.
It requested the PTV to issue a “clear statement” distancing itself from the views of aforementioned program host and panelists.
“It must be ensured in the future that discussions on sensitive topics like medical treatment should be based on expert opinions of information from authentic, professional individuals,” the SMOP added.

Topics: Cancer treatment ptv news

Pakistan prepares to terminate take-or-pay contracts with independent power producers

Updated 20 December 2024
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Pakistan prepares to terminate take-or-pay contracts with independent power producers

  • Pakistan approved a decade ago dozens of mostly foreign-financed private projects by IPPs to tackle chronic power shortages
  • PM Sharif’s cabinet this month approved settlement agreements with eight IPPs with the aim to reduce power tariff, expenses
Updated 20 December 2024
KASHIF IMRAN

ISLAMABAD: Pakistan is making preparations to stop capacity payments to independent power producers (IPPs) by dissolving the mechanism of take-or-pay, Pakistani state media reported on Friday.
Take-or-pay is referred to as capacity payments in Pakistan where the government has to pay private companies irrespective of how much of the power they generate is transferred to its grid.
Pakistan approved dozens of private projects by IPPs, financed mostly by foreign lenders, a decade ago to tackle chronic power shortages. But the deals, featuring incentives such as high guaranteed returns and commitments to pay even for unused power, ultimately resulted in excess capacity after a sustained economic crisis slashed consumption.
This month, Prime Minister Shehbaz Sharif’s cabinet approved settlement agreements with eight bagasse-based IPPs with the aim to reduce electricity prices and save the national exchequer billions of rupees, the Radio Pakistan broadcaster reported.
“The agreement between IPPs and the government’s Energy Task Force is a significant milestone, which can result in saving of 300 billion rupees ($1.07 billion) of the national exchequer,” the broadcaster said.
Short of funds, successive Pakistani governments have built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.
In October, PM Sharif said his government was terminating purchase agreements with five IPPs to rein in electricity tariffs as households and businesses buckled under soaring energy costs, according to state media. Pakistan’s Central Power Purchasing Agency was due to approach the National Electric Power Regulatory Authority (NEPRA) for a reduction in the electricity tariff generated from these power plants.
There is a possibility of Rs3.50-6.50 decrease in the electricity tariff as a result of government reforms as the government has pledged to pay outstanding dues within 90 days as prescribed in the agreements, Radio Pakistan reported on Friday.
“The government has also expressed resolve to promote private partnership for development of energy sector,” the report read.
The need to revisit power deals was a key issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout. The program was approved in September.
Pakistan has also been holding talks on reprofiling power sector debt owed to China and structural reforms, but progress has been slow. It has also vowed to stop power sector subsidies.

Topics: Independent Power Producers (IPPs) IPPs Arab News Pakistan

Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse

Updated 20 December 2024
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Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse

  • The KSE-100 index gained 3238 points to close the weekend trading session at 109,513 points
  • Stock analysts attribute strong recovery of the market to easing pressure at local mutual funds
Updated 20 December 2024
KASHIF IMRAN

ISLAMABAD: The Pakistan Stock Market on Friday bounced back strongly and gained more than 3,000 points, stock analysts said, a day after it witnessed a “massacre” on the back of significant redemptions from local mutual funds and year-end profit-taking.
The benchmark KSE-100 index gained 3238.17 points to close the weekend trading session at 109,513.14 points. On Thursday, the index plummeted by 5,132 points, or 4.32 percent, to close at 106,274.97 points, compared to Wednesday’s close of 111,070.29 points.
Stock analysts attributed the strong recovery to easing pressure at local mutual funds.
“Likely easing redemption pressure at local mutual funds together with the opening up of attractive valuations encouraged value buyers to reenter the market,” Raza Jafri, head of equities at Intermarket Securities, told Arab News.
Thursday’s slump was led by Hub Power Company Limited, United Bank Limited, Oil and Gas Development Company, and ENGRO, cumulatively contributing a staggering 1,556 points to the index’s overall decline, according to Topline Securities.
The sharp sell-off was triggered by significant redemptions from local mutual funds, compounded by year-end profit-taking by institutions, that dragged the market into a “turmoil,” it added.
The decline came days after Pakistan’s central bank cut its key interest rate by 200 basis points to 13 percent, marking the fifth straight reduction since June.
Yousuf M. Farooq, head of research at Chase Securities, said the market had entered a corrective phase, following a significant rally over the past year.
“We believe that earnings will now drive market performance rather than valuation rerating,” he added.

Topics: Pakistan Stock Exchange (PSX) Pakistan Stock Market

Pakistan province sets deadline to surrender weapons, dismantle bunkers to stem sectarian clashes

Updated 20 December 2024
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Pakistan province sets deadline to surrender weapons, dismantle bunkers to stem sectarian clashes

  • Kurram, a tribal district near Pakistan’s border with Afghanistan, has been a flashpoint for sectarian tensions for decades
  • Last month’s clashes between Sunni, Shia tribes killed over 100, triggered a humanitarian crisis with reports of starvation
Updated 20 December 2024
REHMAT MEHSUD

PESHAWAR: Authorities in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province on Friday set a deadline of Feb. 1 for warring Sunni and Shia tribes in the Kurram district to surrender all weapons and dismantle their bunkers to stem sectarian clashes in the region.
Kurram, a tribal district of around 600,000 near Pakistan’s border with Afghanistan where federal and provincial authorities have traditionally exerted limited control, has been a flashpoint for sectarian tensions for decades.
Fresh clashes last month killed more than a hundred people, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages following the blocking of the main highway connecting Kurram’s main city of Parachinar to the provincial capital Peshawar.
On Friday, the KP apex committee, which comprises civilian and military officials, met to discuss a sustainable solution to the issue and decided that both sides would have to surrender their weapons and sign a peace agreement facilitated by the government.
“The agreement outlines that both sides will submit a detailed action plan within 15 days for voluntary submission of weapons,” read a declaration issued after the apex committee meeting.
“All weapons are to be deposited with the local administration by February 1. Additionally, it was decided that all bunkers in the area will be dismantled by the same deadline.”
The decision is aimed at reinforcing the government’s writ and establishing peace in the region, according to the statement. In the meantime, land routes to the area would be opened intermittently on humanitarian grounds and a mechanism had been put in place for secure transportation.
“Personnel of police and Frontier Corps will jointly provide security to the convoys,” the statement read.
Last month’s clashes erupted after rival tribes attacked convoys of passengers on the Parachinar-Peshawar road, which were followed by attacks on each other’s villages.
On Thursday, KP Governor Faisal Karim Kundi criticized the provincial government’s handling of the Kurram issue, accusing it of adopting an “indifferent approach.”
“The provincial government has maintained a criminal silence on the Kurram issue,” he said. “This matter should have been addressed in the provincial assembly.”
Talimand Khan, a senior analyst on tribal affairs, told Arab News on Friday that Pakistan’s tribal districts, including Kurram, had remained a “launching pad for proxy wars, especially the Soviet-Afghan war and the so-called War on Terror.”
“The issue is not merely a law-and-order situation,” he said. “It is deeply rooted in the state’s foreign and security policies, domestic political dynamics.”
A special air service would be launched on an emergency basis, for which the federal and provincial governments would provide helicopters. Temporary evacuation may be carried out from some areas to protect people’s lives, according to the apex committee declaration.
Both sides must avoid any violent action in the future to keep the land route safe and open at all times, otherwise the administration would be forced to close the route again.
“All social media accounts spreading sectarian hatred in the region will be closed,” it read. “No one will be allowed to play politics on this issue.”
The apex committee hoped that the parties would fully cooperate with the government for a lasting solution to the issue.

Topics: kurram kurram district parachinar Interior Minister Mohsin Naqvi Chief Minister Ali Amin Gandapur Kurram tribal district sectarian clashes

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