Pakistan PM resisting IMF diktat on increasing tax on salaried class in budget — official

In this file photograph, taken and released by Prime Minister’s Office on April 18, 2024, Pakistan Prime Minister Shehbaz Sharif chairs a cabinet meeting in Islamabad. (Photo courtesy: PMO)
Short Url
Updated 10 June 2024
Follow

Pakistan PM resisting IMF diktat on increasing tax on salaried class in budget — official

  • Pakistan is expected to release federal budget for upcoming fiscal year in National Assembly on June 12
  • Opposition lawmaker vows to force government to review “anti-public measures” in the fiscal budget

ISLAMABAD: Prime Minister Shehbaz Sharif is resisting the International Monetary Fund’s (IMF) diktat to increase tax on Pakistan’s salaried class and agricultural products in the upcoming federal budget, a government official confirmed recently, as the government prepares to release the annual document detailing Pakistan’s estimated revenues and expenditures for the upcoming fiscal year later this week.
Pakistan’s government is gearing up to present the budget for the fiscal year 2024-25 on June 12. The development takes place as the South Asian country remains locked in negotiations with the IMF for a fresh financial bailout program that Islamabad considers necessary to avert a macroeconomic crisis. Pakistan’s economic crisis has seen its reserves drop to alarmingly low levels and its currency significantly weaken against the US dollar over the last two years.
Islamabad has taken painful measures demanded by the IMF since 2022, which include hiking fuel and energy prices in return for the financial institution’s help. These decisions caused prices of essential commodities to skyrocket in the country, with inflation surging to 38 percent in May 2023 before dropping to a 30-month low of 11.8 percent in May 2024. 
“The prime minister is not ready to follow the IMF diktat to raise income tax on salaried class,” Rana Ihsan Afzal, the coordinator to the prime minister who is involved in the budget’s preparation process, told Arab News on Sunday.
“The IMF wants us to impose tax on agricultural products including tractors and even seeds but the prime minister has been resisting all this,” he said. Afzal added the government would initiate measures to ensure the agriculture and industrial sectors of the country flourish rather than impose additional taxes on them.
Afzal said the government would protect lifeline utilities consumers in the budget and increase the allocation for the Benazir Income Support Program (BISP), a federal unconditional cash transfer poverty reduction scheme.
“We are going to offer incentives to the industry to boost our exports and create job opportunities for the youth,” he said.
About the IMF’s proposal to levy a tax on pensions, he said the government was looking into different options to deal with the situation. He said the prime minister was mostly not in favor of the decision.
“We will be announcing an increase in pensions and salaries in the budget,” Afzal vowed, saying that the government was trying to present a “people-friendly” budget.
The Sunni Ittehad Council (SIC), a major opposition party backed by former prime minister Imran Khan’s candidates, said the government was “clueless” about the budget, claiming it would present a document that has been prepared by the IMF for parliament’s approval.
“The government has not consulted opposition parties about the budget’s preparation but we knew that this was going to be a tough budget for the public,” Zartaj Gul Wazir, an SIC lawmaker, told Arab News.
“As the opposition we will not only present our budget proposals in parliament but also force the government to review its anti-public measures,” she said. Wazir lamented that the economy had nosedived and the government did not have a cogent plan to revive it. 
Meanwhile, Afzal said the government would welcome the opposition’s budget proposals after it would table the finance bill in the National Assembly. 
“The opposition will be able to debate on the financial plan and forward its proposals to the government before the budget is passed,” Afzal said, adding that the government had consulted all other stakeholders, including those from various industries, for the budget’s presentation.


Afghan officials meet Pakistani diplomats in Doha amid strained ties

Updated 11 sec ago
Follow

Afghan officials meet Pakistani diplomats in Doha amid strained ties

  • Afghan government spokesperson Zabiullah Mujahid describes meeting as “good,” hopes for positive relations 
  • Tensions escalated last week after Pakistan’s defense minister hinted Islamabad could take out militants in Afghanistan

ISLAMABAD: Afghanistan government spokesperson Zabihullah Mujahid and a Taliban delegation this week met Pakistani officials in Doha amid strained ties, describing the meeting as a “good” one and hoping for relations between the two countries to improve in the future. 

Tensions between the neighbors escalated last week when Pakistan’s Defense Minister Khawaja Asif hinted Islamabad could carry out cross-border attacks into Afghanistan to take out militants. Afghanistan warned Pakistan against taking such a step, warning there would be “consequences.”

Pakistan blames the Taliban-led government for harboring militants on Afghan soil. Islamabad alleges that the Pakistani Taliban or Tehreek-e-Taliban Pakistan (TTP) launch attacks in Pakistan from sanctuaries in Afghanistan. Kabul has denied the allegations and said Pakistan’s security lapses are its internal responsibility. 

Delegations from Pakistan and around 30 other countries this week began a third round of United Nations-sponsored talks on integrating Afghanistan into the international community. The Pakistani mission in Qatar, including Pakistan’s Special Representative on Afghanistan Asif Durrani, held a dinner for the Taliban delegation on the sidelines of the conference on Monday. 

“We thank them for their hospitality and hope for good and constructive relations for both countries,” Mujahid wrote on social media platform X on Tuesday. 

“We had dinner and a very good meeting with the special representative of Pakistan Mr. Asif Durrani and the ambassador and consuls of that Pakistan in Doha.”

Tensions between Pakistan and Afghanistan further escalated last year when Islamabad launched a deportation drive, after a spike in suicide bombings which the Pakistan government, without providing evidence, blamed on Afghan nationals. 

Pakistan also says Afghans are involved in smuggling, militant violence and other crimes. 

The world has wrestled with its approach to Afghanistan’s new rulers, the Taliban, who seized power in Kabul in August 2021 after an international coalition of US-led forces pulled out of the country.

The Taliban government has not been officially recognized by any country since it took power. The administration’s strict regulations, primarily against women’s right to education and work, have angered the UN and several foreign countries.

Governments, aid agencies and international organizations have slashed or massively scaled back funding for Afghanistan in response, complicating problems for a country already reeling from internal conflicts and a deepening economic crisis.


Pakistani government commission says 197 new ‘missing persons’ cases reported this year

Updated 26 min 14 sec ago
Follow

Pakistani government commission says 197 new ‘missing persons’ cases reported this year

  • Balochistan government spokesperson says missing persons numbers are often exaggerated by families and rights activists
  • Families of alleged victims of enforced disappearances say government underreporting figures, don’t have trust in official process

KARACHI: The Pakistan government’s Commission of Inquiry on Enforced Disappearances (COIOED) has logged 197 new cases of missing people this year, with families of alleged victims saying on Tuesday the low number reflected the people’s lack of trust in the process of reporting cases to authorities. 

Enforced disappearances is an enduring issue in Pakistan where relatives, politicians and rights activists say many people who have gone missing, especially in Pakistan’s southwestern Balochistan province, have been abducted by Pakistani security forces on the pretext of fighting militancy. The Pakistani state denies involvement in enforced disappearances.

The COIOED was set up in 2011 to trace missing persons and hold individuals or organizations to account for their disappearance. In a report released on Monday, the commission said around 10,285 cases had been registered with the body since January 2018, of which 4,514 individuals had returned home, 1,002 were in internment centers, 671 in prisons, and the dead bodies of 277 had been recovered. Additionally, 1,551 cases were closed for various reasons.

The commission said 47 cases had been reported in June. Twenty-eight cases had been disposed of due to people returning home, being in internment camps or jails, being found to be dead or determined to not be cases of enforced disappearances. 

The report said less than 30 percent of the total cases received by the commission over the last seven years were from Balochistan, and that 2,360 cases, or 84.52 percent of the total 2,792 registered cases from Balochistan, had been resolved. Among these, 2,025 people had returned home. 

But many relatives of alleged victims dismiss the figures.

Rights activist Sammi Deen Baloch, who has been advocating for the recovery of her father Dr. Deen Mohammad Baloch since 2011, said she had stopped pursuing the case in 2021 after losing faith in the body. 

“I stopped pursuing my father’s case in 2021 because commission members were rude to families, despite their duty being to provide relief,” Baloch, who is also the general secretary of the Voice of Baloch Missing Persons (VBMP) group, told Arab News.

Baloch said the low number of reported cases from Balochistan indicated that either people were not coming forward or they were publicly showing their lack of trust in the government commission.

She also said it was particularly challenging to document all cases from Balochistan because families often preferred to keep their identities hidden, and because the province, Pakistan’s largest by size, covered a vast and remote area.

Monday’s report said the northwestern Khyber Pakhtunkhwa province had the highest number of registered cases since the commission was set up, totaling 3,537 or 34.38 percent. Sindh’s registered cases are 1,823, accounting for 17.72 percent of the total, followed by Punjab with 1,675 cases, or 16.28 percent.

Amina Masood Janjua, who has been campaigning for the recovery of her husband Ahmad Masood Janjua since 2005 and is the chairperson of the Defense of Human Rights group, a network of families of missing persons, noted that KP saw a lot of cases of enforced disappearances during former military ruler Musharraf’s tenure. 

“Another reason is also that it is a border area and a physical War on Terror has been fought in this region,” Janjua said. 

Pakistan’s capital, Islamabad, had 378 cases, 3.67 percent of the total registered while Azad Kashmir had 70 cases, or 0.68 percent of the total. Pakistan’s northern semi-autonomous Gilgit-Baltistan region reported only 10 cases of missing persons.

‘EXAGGERATED’

According to the commission’s data, 1,096 cases were registered from across Pakistan in 2018, followed by 800 in 2019. The next year, the figure dropped to 415 but surged to 1,460 in 2021.
This increased to 860 in 2022 while in 2023, 885 cases of missing persons were registered across the country. This year, only 197 cases were reported across the country during the first six months. 

Janjua agreed that a “lack of trust” in the commission was the main reason for the low number of cases that were logged, particularly from Balochistan, where there is a disconnect between the public and the state and people widely believe the mineral-rich province’s resources are being exploited by the government, a charge it denies. 

The province has also been home to a low-level insurgency by separatist militants for decades.

Shahid Rind, a Balochistan government spokesperson, acknowledged that the missing persons issue was “real” but said figures reported by families and rights groups were “often exaggerated.”

“Different leaders claim figures in the thousands, which lacks substantiation,” Rind told Arab News.

“The state requires specific data and documentation to confirm disappearances, and there is an established mechanism for this purpose,” he explained.

Former Pakistani senator Afrasiab Khattak, who has long championed the cause for missing people, disagreed, saying that the number of missing persons was much higher than that reported by the commission. He said given a lack of trust in the commission, families thus preferred to hold protests and sit-ins to register their grievances.

“They hope mobilizing public opinion may give some results than waiting for the decisions of these already failed forums,” Khattak said.


Dozens rally in Pakistan after Christian man is sentenced to death for blasphemy 

Updated 02 July 2024
Follow

Dozens rally in Pakistan after Christian man is sentenced to death for blasphemy 

  • Pakistani court sentenced Christian man to death this week for sharing “hateful content” against Muslims 
  • Often mere blasphemy accusations can cause riots and incite mobs to violence, lynchings in Pakistan

KARACHI, Pakistan: Dozens of members from Pakistan’s civil society rallied on Tuesday in the southern port city of Karachi against the death sentence handed down to a Christian man on blasphemy charges, nearly a year after one of the worst mob attacks on Christians in the country.

Several Christians also joined the rally which comes a day after a court in Sahiwal in the Punjab province announced the death sentence to Ehsan Shan after finding him guilty of sharing “hateful content” against Muslims on social media.

Shan’s lawyer Khurram Shahzad said on Monday he will appeal the verdict.

He was arrested in August 2023 after groups of Muslim men burned dozens of homes and churches in the city of Jaranwala in Punjab after some residents claimed they saw two Christian men desecrating pages from Islam’s holy book, the Qur’an. 

The two men were later arrested.

Though Shan was not party to the desecration, he was accused of reposting the defaced pages of the Qur’an on his TikTok account.

At Tuesday’s rally in Karachi, a Christian leader Luke Victor, called for Shah’s release.

He also demanded action against those who were involved in burning churches and homes of Christians in Jaranwala.

Blasphemy accusations are common in Pakistan. Under the country’s blasphemy laws, anyone found guilty of insulting Islam or Islamic religious figures can be sentenced to death. 

While authorities have yet to carry out a death sentence for blasphemy, often a mere accusation can cause riots and incite mobs to violence, lynching and killings.


PM Sharif highlights Pakistan’s ‘unlimited potential’ for investment during Tajikistan visit 

Updated 02 July 2024
Follow

PM Sharif highlights Pakistan’s ‘unlimited potential’ for investment during Tajikistan visit 

  • Sharif will attend twin summits of Shanghai Cooperation Organization in Kazakhstan later
  • Visit comes as Islamabad seeks to enhance role as trade hub connecting Central Asia with world

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday highlighted the “unlimited potential” for foreign investment in Pakistan’s key economic sectors, a statement from his office said, during his visit to Tajikistan to enhance Islamabad’s regional ties with Central Asian states. 

Sharif reached Dushanbe on an official visit to Tajikistan on Tuesday which will be followed by a trip to Kazakhstan for the twin summits of the Shanghai Cooperation Organization (SCO). The Pakistani prime minister received a guard of honor upon his arrival, where he was welcomed by Tajikistan Prime Minister Aziz M. Qohir Rasulzoda and other government officials.

His visit comes as Pakistan pushes to enhance its role as a pivotal trade and transit hub connecting the landlocked Central Asian states with the rest of the world, leveraging its strategic geographical position.

In recent weeks, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states. Last week, Sharif chaired a special meeting attended by senior government ministers on how to enhance relations with the region, particularly in the areas of economy and investment.

“There is unlimited potential for international investment in Pakistan in energy, minerals, industry, agriculture, and other sectors,” the Prime Minister’s Office (PMO) quoted the prime minister as saying during his meeting with the Tajikistan President Emomali Rahmon.

Sharif also extended an invitation to President Rahman to enhance regional ties and expand social relations between Pakistani and Tajikistan. 

The Tajik president stressed on the importance of longstanding fraternal relations between Pakistan and Tajikistan, the PMO said. 

In a post on social media platform X, Sharif thanked his Tajik counterpart for the warm welcome he received upon his arrival. 

He vowed to take Pakistan-Tajikistan ties to newer heights by expanding the scale of cooperation between the countries.

Sharif also visited the memorial of Tajikistan’s national hero, Ismail Samani, during his visit. 

In May, Pakistan’s investment minister reaffirmed the country’s resolve to cooperate with Central Asian states as Islamabad pushes forward an ambitious agenda to bolster trade activities while grappling with a macroeconomic crisis.

On Monday, Sharif also received the Ambassador of Kazakhstan to Pakistan, Yerzhan Kistafin, at his office in Islamabad. During the meeting, Sharif emphasized the “need to enhance trade and investment, while also focusing on regional connectivity and security.”


Pakistani court grants bail to ex-PM Khan’s wife in land graft case— lawyer ​

Updated 02 July 2024
Follow

Pakistani court grants bail to ex-PM Khan’s wife in land graft case— lawyer ​

  • Former premier, wife charged with receiving land worth millions of dollars as bribe from real estate tycoon
  • Despite bail, ex-PM Khan’s wife Bushra Wattoo will remain in prison due to her conviction in another case

ISLAMABAD: An accountability court in Pakistan’s Rawalpindi city on Tuesday granted pre-arrest bail to former prime minister Imran Khan’s wife in a corruption case, his lawyer confirmed, saying that no evidence had been found she had gained financial benefit from a trust. 

Government officials allege Khan, 71, and his third wife Bushra Wattoo received land worth millions of dollars as a bribe from a real estate tycoon Malik Riaz Hussain through the Al-Qadir Trust, a non-governmental welfare organization set up by Wattoo and Khan in 2018 when he was still in office.

The trust runs a university outside Islamabad devoted to spirituality and Islamic teachings, a project inspired by the former first lady, who is also commonly known as Bushra Bibi and has a reputation as a spiritual healer.

“NAB court confirmed pre-arrest bail of Bushra Bibi today in Al Qadir Trust 190 million pounds case,” Barrister Salman Safdar, Khan’s lawyer, wrote on social media platform X. 

“There was no evidence of financial gain; benefitting in any manner from the trust.” 

Khan was briefly arrested on May 9 in connection with the case, with riots breaking out throughout the country that saw military and government installations attacked. The former prime minister was released shortly but was arrested in August in a separate case related to the sale of state gifts illegally.

The National Accountability Bureau (NAB), Pakistan’s corruption watchdog, filed a reference against Khan in December 2023 in the case. In February this year, the former prime minister and Wattoo were indicted by an accountability court.

Despite the bail, however, Wattoo will stay in prison as she is also serving a sentence in another case, where a trial court declared her marriage to Khan in 2018 as unlawful. 

Local media reports said the prosecution presented three more witnesses in court during Tuesday’s hearing in the case, who were cross-examined by defense lawyers. The court summoned other witnesses in the next hearing, which was adjourned till July 5.

Khan, who is the founder of the Pakistan Tehreek-e-Insaf (PTI) party, has been in jail since last August and was convicted in some cases ahead of a national election in February. He is also fighting dozens of other cases which are continuing. Khan and his party say the charges were politically motivated to thwart his return to power.

In recent months, Pakistani courts have suspended Khan’s jail sentences in two cases about the illegal acquisition and sale of state gifts and also overturned his conviction on charges of leaking state secrets.
However, he has remained in prison due to the unlawful marriage case conviction. Khan also faces a trial under anti-terrorism charges in connection with the May 9 violence. 

With input from Reuters