KARACHI: Karachi’s premier business chamber on Tuesday urged the government to slash high energy costs and reduce taxes on items prone to smuggling in its budgetary proposals, days before Pakistan is expected to unveil the annual federal budget for the upcoming fiscal year.
Pakistan, a country of over 241 million people, is desperately trying to avert a macroeconomic crisis by securing external financing. The South Asian country has significantly hiked food and fuel prices since 2022 in exchange for bailout programs from the International Monetary Fund (IMF). The price hikes have also spiked the cost of production, causing Pakistani exports to become costlier than those offered by regional competitors and hampering the country’s industrial growth.
The Karachi Chamber of Commerce & Industry (KCCI) represents the business and industrial community of Karachi, Pakistan’s financial hub, which contributes over 65 percent of revenue to the national exchequer. The KCCI says it is considered among the top 10 largest chambers of commerce and industry across the world in terms of its membership base.
Through its budget proposals for the upcoming fiscal year, the KCCI has invited the government’s attention toward key challenges tha industrialists and traders in Pakistan are facing.
“We have asked the government that the industry, particularly SMEs [small and medium-sized enterprises], is facing significant challenges,” Iftikhar Ahmed Sheikh, the KCCI’s president, told Arab News. “It is essential to control the prices of electricity and gas for their survival.”
The budget was originally due to be presented on June 7 but was delayed because of Prime Minister Shehbaz Sharif’s Beijing visit from June 4-8, two sources with knowledge of the development, told Arab News last week.
Sheikh said Pakistani manufacturers and exporters, reeling from high energy costs, are facing tough competition in the global market from their regional competitors.
“Their prices range between 4 to 8 cents whereas ours are above 18 cents,” Sheikh explained. “With electricity costing eighteen cents, how can we manufacture and compete with countries where the cost is only four to eight cents?“
Sheikh said his chamber has urged the government in its budget proposals to stop revenue pilferages by reducing tax burdens.
“We have addressed all factors related to revenue leakage in the budget proposals,” Sheikh said. “We have urged the government that rather than imposing new taxes, it would be more beneficial to plug these leakages which will increase our revenue,” the KCCI president said, referring to the increase in smuggling of certain items.
The KCCI’s budget proposals include reducing taxes on high duty items and those prone to smuggling. The chamber has assured the government that lowering taxes will discourage smuggling and increase imports through legal channels, enhancing tax collection in return.
Demanding a decrease in custom duties, withholding taxes and various other taxes, the KCCI also demanded that the rate of sales tax on industrial machinery should be lowered to zero. This, the chamber said, would trigger industrialization and lead to job creation.
Pakistan’s bid to secure another long-term loan from the IMF has seen the country increase energy tariffs and bring about tax reforms that fueled inflation in the country.
However, Sheikh said the KCCI is opposing the imposition of new taxes as people are already overburdened by them.
“People are suffering due to inflation, so our first target is that no new tax should be imposed and the IMF doesn’t say you should impose new taxes or that you should impose tax on the existing tax,” he clarified.
Karachi’s premier business chamber urges government to slash energy costs, taxes for industrial growth
https://arab.news/wencf
Karachi’s premier business chamber urges government to slash energy costs, taxes for industrial growth
- High energy costs rendering Pakistani exports uncompetitive, says Karachi Chamber of Commerce and Industry president
- KCCI opposes imposition of new taxes in upcoming budget, says people are already reeling from effects of high inflation
Brazilian tourist killed during paragliding accident in Pakistan’s northern Gilgit-Baltistan region
- Brazilian tourist Raineri Rodrigo Chadded was part of seven-member team of foreigners trekking to K2 base camp
- Hundreds of tourists visit Gilgit-Baltistan every year, which is home to some of the highest peaks in the world
KHAPLU, GILGIT-BALTISTAN: A Brazilian tourist was killed in a paragliding incident in Pakistan’s Gilgit-Baltistan region on Thursday, officials confirmed, making him the fourth foreigner to have died in the country’s northern mountainous area in less than two months.
Gilgit-Baltistan, a sparsely populated region administered by Pakistan as an autonomous territory, is home to some of the highest peaks in the world and a major tourist destination. Hundreds of tourists visit the region each year for expeditions on various peaks, paragliding and other sports activities.
Last month, two Japanese climbers went missing while attempting to summit the 7,027-meter Spantik Peak in the area’s Nagar district. The body of one of the climbers was found by Pakistani authorities, who subsequently called off the search for the other missing climber. On Wednesday, officials confirmed another Japanese climber had died as he descended the same Spantik Peak after summiting it.
“The accident occurred today in the Shigar district’s Askole area,” Wali Ur Rehman, the district’s deputy commissioner, told Arab News via text message. “The paraglider has been identified as Raineri Rodrigo Chadded.”
Akhtar Shigri, a district official responsible for matters relating to foreigners, said Chadded was part of a seven-member team who were on their way to the K2 base camp.
He said of the other six foreigners, two were from France, one was from Bulgaria, two from the United States and one from Switzerland.
Shigri said all members of the team left Shigar headquarters on Wednesday for the K2 base camp but Chadded opted to paraglide from Askoli to Jhula camp.
“He fell while paragliding and was killed in the Askoli area,” Shigri told Arab News, adding that authorities were shifting his body.
Pakistan is home to five of the world’s tallest mountains that loom above 8,000 meters, including the K2 and Nanga Parbat mountains, known for their treacherous climbs. This year over 2,000 foreign climbers and trekkers have applied for permits for mountaineering expeditions and trekking in Gilgit Baltistan.
Sajid Hussain, deputy secretary for the GB Tourism Department, said the government could not stop deaths from taking place in the northern area.
“However, for the last few years, we have been strictly directing tour companies to opt for all safety measures in this field,” Hussain told Arab News.
He said only one climber lost his life whilst attempting to summit the K2 last year.
Hussain said the ratio of climbers and trekkers dying in the northern region was very low, considering the number of foreigners that visit the area, due to strict safety measures adopted by authorities here.
“We are doing our level best to facilitate climbers and trekkers,” he said. “All tour companies have been directed to ensure the implementation of life insurance for climbers and trekkers, so that we can promptly kick off the rescue mission via Askari aviation in case of emergency.”
KP government to deploy 40,000 security personnel to maintain law and order during Muharram
- Muharram, the first month of Islamic lunar calendar, witnesses religious processions by Shia Muslims across Pakistan
- KP Chief Minister Ali Amin Gandapur chairs high-level meeting to review security measures during Muharram
ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province will deploy around 40,000 security personnel to maintain law and order during the Islamic month of Muharram, the state-run Associated Press of Pakistan (APP) reported on Thursday.
Muharram is the first month of the Islamic lunar calendar which marks the anniversary of the Battle of Karbala, where the grandson of the Prophet Muhammad (PBUH), a revered figure in Shia Islam, was martyred.
Muharram also witnesses religious processions across Pakistan to the prophet’s grandson, prompting relevant authorities to devise elaborate security measures each year to prevent any disturbances.
“About 40,000 security personnel would be deployed for security purposes during the month of Muharram, whereas special contingents of the Frontier Constabulary (FC) and Pak Army would also be deployed for the security of the processions and gatherings in Khyber Pakhtunkhwa,” APP said in a report.
This decision was taken during a high-level meeting of the provincial government chaired by KP Chief Minister Ali Amin Gandapur to review security arrangements ahead of the holy month. Participants of the meeting were informed Muharram processions and gatherings would be held in 14 districts of the province.
Of these, eight districts have been reported as “most sensitive” while the rest have been declared as “sensitive” in terms of law and order and security arrangements, APP said.
“A central control room comprising representatives from all relevant departments and law enforcing agencies is also being set up at the Home Department for the purpose,” the state media said. “Processions and public gatherings would be monitored directly through CCTV cameras whereas display of arms, pillion riding and hateful wall chalking have also been banned.”
Authorities will suspend mobile phone services in sensitive districts of the province, while special measures to monitor social media pages to curb the spread of hateful content were also proposed in the meeting, the state media said. It added that the staff of health and rescue departments of the province would be assigned special duties to effectively deal with any untoward situation during Muharram.
“Maintaining law and order during the month of Muharram should be the top-most priority of all the stakeholders,” Gandapur was quoted as saying by APP. He said all relevant authorities, departments and agencies would have to fulfill their respective responsibilities in a timely manner.
“Moreover, he directed that religious leaders of different sects and elected public representatives should be approached as an effort to promote religious harmony and tolerance during Muharram,” APP said.
‘Khan-tastic’: Pakistan’s under-fire spinner takes consecutive four-fers in Lanka Premier League
- Pakistani spinner Shadad Khan takes 4-22, 4-21 figures against Galle Titans, Kandy in Lankan Premier League matches
- Khan has been under fire for lackluster bowling performances over past year-and-a-half, especially in ICC tournaments
ISLAMABAD: After a string of lackluster performances in the recently concluded T20 World Cup, Pakistan’s under-fire leg-spinner Shadab Khan notched two consecutive four-fers in the ongoing Lanka Premier League tournament this week.
Cricket analysts and critics have questioned skipper Babar Azam’s decision to include Khan regularly in Pakistan’s playing XI squad, especially in red-ball cricket formats, despite his abysmal performances with the ball in the past year-and-a-half.
Khan, who was once regarded as a top-all-rounder for Pakistan, has conceded expensive runs and failed to perform with the bat as well over the past couple of matches for Pakistan. However, Khan returned figures of 4-22 and 4-21 for the Colombo Strikers— the franchise he plays for in the Lanka Premier League— in their last two consecutive matches against the Galle Titans and Kandy on Wednesday and Tuesday, respectively.
“Khan-tastic,” the Strikers wrote on their social media platform, featuring a picture of the Pakistani leg-spinner. “Picking up from where he left last night.”
However, Khan’s 4-21 failed to deliver the Strikers the win as they lost to the Titans by seven runs in a thriller, courtesy of a fiery half-century by Niroshan Dickwells. On Tuesday against Kandy, Khan’s 4-21 figures were instrumental in the Strikers picking up a comfortable 51-run victory over their opponents.
Angry cricket fans and commentators have demanded the Pakistan Cricket Board (PCB) take drastic measures to improve the national squad’s performance after Pakistan’s dismal performance in the T20 World Cup last month.
The South Asian country lost to minnows USA in their tournament opener and later to India, forcing them to crash out of the tournament in the first round. This was Pakistan’s second dismal performance within the last 12 months in an ICC tournament, as the green shirts failed to perform up to the mark in the 50-over ICC World Cup in India last year. Azam’s side lost to India, Australia, Afghanistan, South Africa and England, which meant Pakistan failed to qualify for the semifinal stages of the tournament.
PCB Chairman Mohsin Naqvi told reporters last month he would perform a “surgery” to improve the team’s performance. However, he has so far not announced any major decisions related to the cricket team.
Scientists from Pakistan, other OIC countries begin vaccine development training in Jakarta
- Program to strengthen vaccine development and manufacturing capabilities within Organization of Islamic Cooperation countries
- Features twelve researchers from Indonesia, Cameroon, Kazakhstan, Malaysia, Egypt, Pakistan, Somalia, Tanzania, and Uganda
ISLAMABAD: Scientists from Pakistan and other Organization of Islamic Cooperation (OIC) member states are taking part in a month-long vaccine development training program in Jakarta, the state-run Associated Press of Pakistan (APP) reported on Thursday.
The third phase of the training program has been launched by the Standing Committee for Scientific and Technological Cooperation (COMSTECH), one of the four OIC standing committees, in collaboration with Indonesia’s health ministry, vaccine developer PT Bio Farma and the Padjadjaran University.
Twelve researchers from Indonesia, Cameroon, Kazakhstan, Malaysia, Egypt, Pakistan, Somalia, Tanzania, and Uganda have been enrolled in the program for training in virology and vaccine technology.
The third phase of the month-long training program is being held in Jakarta and will also be conducted in Bandung, West Java. The first two phases of the same program were conducted in Indonesia in 2022 and 2023.
“The program offers a comprehensive learning experience, encompassing the workshops, industry visits, and laboratory training,” APP said.
Trainees will undergo intensive training at PT Bio Farma’s laboratory and central laboratories of UNPAD Bandung and Jatinangor.
“The program is designed to foster knowledge sharing and equip researchers with the necessary skills and expertise in virology and vaccine technology,” APP said. “Ultimately strengthening vaccine development and manufacturing capabilities within OIC member countries.”
Indonesia’s Health Minister Budi Gunadi Sadikin stressed the role of the program in strengthening the capabilities of researchers from OIC countries in vaccine manufacturing.
“He highlighted the importance of expanding vaccine research and development beyond developed nations, aiming for a more equitable global vaccine production capacity,” APP said.
A vital part of the OIC, COMSTECH aims to strengthen cooperation among member states in science and technology and enhance their capabilities through training in emerging areas.
Pakistan blocks 210,000 SIM cards to encourage tax payment
- Only 2.5 million people out of over 240 million people filed income tax returns two years ago in 2022
- Pakistan is struggling to increase revenue base but is hampered by largely undocumented economy
KARACHI: Pakistan’s tax authority said Thursday it has blocked 210,000 SIM cards of users who have not filed tax returns in a bid to widen the revenue bracket.
Only 5.2 million people of the more than 240 million population filed income tax returns in 2022.
The Federal Board of Revenue (FBR) passed the edict in April and has since sent orders to the telecommunications authority to block the connections of 210,000 SIM cards, with 62,000 of them later restored, according to the board’s data.
“We have unblocked the SIMs of those who have paid their taxes,” FBR public relations official Bakhtiar Muhammad said.
“Nobody voluntarily comes up and pays taxes. We have to make ways for the people to pay their taxes.”
Pakistan has more than 192 million cellphone subscribers and four telecommunications service providers, according to the telecommunication authority.
Pakistanis must register a SIM card with their national identity number, which is often used for multiple connections.
“Access to telecom services is a basic human right and essential for many other fundamental services, including access to information, education, and emergency services,” an official at one of the four telecommunications companies told AFP on the condition of anonymity.
“We are in dialogue with the authorities, convincing them to use technology to help increase tax collection, as abrupt measures could disrupt the provision of these critical services.”
The South Asian country is struggling to increase its pitifully low revenue base but is hampered by a largely undocumented economy.
The government has been pushing for more loans from the International Monetary Fund to help balance its books but the lender wants Islamabad to do more to mobilize its own resources.
“This is an absurd move. Not everyone who has SIMs earns enough to fall under the tax-paying category,” Fareiha Aziz, a digital rights activist, told AFP.
“People’s livelihoods are tied to their phones, this is an overreach.”
The four telecommunications companies warned in a letter to the ministry of information technology in June that the new tax measures against non-tax filing cellphone users were “impractical” and “non workable” and would scare away foreign investment.
Tauseef Gilani, a 66-year-old businessman in Islamabad, said the novel move was going too far.
“Whatever income I earn, it’s my responsibility to contribute back to society,” Gilani said.
“However, blocking SIMs is unjust — it infringes upon freedom of expression and violates rights.”
