KARACHI: Pakistan hopes to sign a staff-level agreement with the International Monetary Fund (IMF) by next month after presenting an Rs18.877 trillion ($67.76 billion) federal budget and setting a revenue collection target of more than 40 percent for the next fiscal year.
Finance Minister Muhammad Aurangzeb on Wednesday unveiled the first budget of the newly elected administration of Prime Minister Shehbaz Sharif, which is expected to play a pivotal role in Pakistan’s negotiations with the IMF to unlock yet another loan program.
“The talks with the IMF are going on in a positive direction and we are hopeful that in July we would move toward a staff-level agreement,” the minister told journalists during a post-budget media briefing in Islamabad.
The South Asian nation has set an ambitious revenue collection target of about Rs13 trillion ($46.55 billion) for the next fiscal year. This target is over 40 percent compared to the current fiscal year ending on June 30.
The government has projected the budget deficit to be 6.9 percent of the GDP while the primary surplus is expected to be at 1 percent of GDP. To achieve the tax collection target, the minister said the government’s basic principle was to expand the tax base.
“The current tax-to-GDP ratio is simply unsustainable,” Aurangzeb said, adding he wanted to increase it to 13 percent in the next three years.
The government measures are estimated to generate about Rs1.761 trillion through new revenue measures while income tax rates and slabs changes will unlock additional revenues of Rs70 billion from the salaried segment.
However, Aurangzeb insisted the salaried class would not be burdened.
“If you look on an individual level, the burden is not that heavy,” he said.
The government will collect about Rs350 billion from exporters and about Rs200 billion are estimated to be collected from retailers and wholesalers by increasing the advance sales tax.
The finance minister said the increase in petroleum development levy (PDL) would be gradually increased to Rs80 per liter and linked with international oil prices.
He said the government’s aim was to remove the concept of non-filers from the country by making them pay a higher rate of tax on transactions.
“I want to remove this concept of non-filers. I think Pakistan is the only country that has the non-filer category,” he added.
The finance minister said the government was in process of digitizing the country’s tax collection system operated by the Federal Board of Revenue (FBR) to end the undocumented economy.
“The process of digitization of FBR is underway and it will help in the documentation of the economy and digitizing finances,” he said, adding the digitization would reduce human intervention and corruption.
Asked about tax collection from retail outlets, he said the government would relaunch points of sales (POS) to minimize the cash flow that is about Rs9 trillion in circulation.
Defending the massive allocation of Rs1.5 trillion for the Public Sector Development Program (PSDP), the finance minister argued that the government wanted to ensure that ongoing projects were completed as 81 percent of funds were allocated for schemes that were being implemented.
Responding to a question about the privatization program of the incumbent government, he said the government was working with all stakeholders.
“PIA [Pakistan International Airlines] and Islamabad Airport are already up for privatization and transactions are expected to be completed by August,” he informed, adding the Lahore and Karachi airports would be privatized next on the prime minister’s direction.
Pakistan aims for July IMF agreement after presenting $67.76 billion federal budget
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Pakistan aims for July IMF agreement after presenting $67.76 billion federal budget
- Muhammad Aurangzeb remains optimistic about a positive outcome in the IMF talks, eyes 40% revenue increase
- The finance minister declares current tax-to-GDP ratio unsustainable, says he wants 13% increase in three years
Pakistan launches first locally made ventilator in bid to achieve technological self-reliance
- The AlnnoVent AVB-100 ventilator supports adult patients across five invasive and two non-invasive ventilation modes
- The ventilator was created in response to the acute shortage of respiratory aid devices during the COVID-19 pandemic
ISLAMABAD: Pakistan Planning Minister Ahsan Iqbal on Monday launched the country’s first locally made ventilator, Pakistani state media reported, describing it as a step toward technological self-reliance.
The Drug Regulatory Authority of Pakistan (DRAP) last month approved the ‘AlnnoVent’ ventilator, which has been developed by the Alsons Group precision manufacturing firm in Karachi. After successfully passing clinical trials, the ventilator has been officially licensed for production.
The AlnnoVent AVB-100 is an electro-mechanical ICU ventilator that meets international standards of quality and reliability. It supports adult patients across five invasive and two non-invasive ventilation modes, making it suitable for a range of critical care scenarios. The ventilator was created in response to the acute shortage of respiratory aid devices during the COVID-19 pandemic.
Speaking at the launching ceremony, Iqbal praised the company for its efforts and emphasized that Pakistan needed more such innovators to succeed in a rapidly evolving world, the Associated Press of Pakistan (APP) news agency reported.
“We require an army of such individuals – people who combine skill, hard work, ambition and the intelligence that defines our nation,” the minister was quoted as saying.
The development comes as Pakistan’s government attempts to steer the country out of a prolonged macroeconomic crisis that has weakened the South Asian country’s currency and drained its foreign exchange reserves over the past few years.
Finance Minister Muhammad Aurangzeb has consistently emphasized the need for Islamabad to adopt an export-led economy to achieve sustainable, long-term economic growth.
Iqbal emphasized that Pakistan’s economic success depended on its ability to innovate and produce new products, which would help shift the country to a more export-driven economy.
He urged private sector leaders to leverage Pakistan’s affordable human resource to produce high-quality goods that could compete in global markets.
“You are the drivers of Pakistan’s future and the government will stand behind every private sector initiative that helps bring in exports and dollars,” the minister said.
UNICEF donates ‘mobile clinics’ to Pakistan to strengthen immunization efforts in remote regions
- The donation will help improve service delivery, address immunization gaps and reach children in underserved areas
- Official says children’s vaccination top priority of government, clinics will help overcome accessibility challenges
ISLAMABAD: The United Nations International Children’s Emergency Fund (UNICEF) has donated seven “mobile clinics” to Pakistan to improve immunization services in the country’s remote regions, it said on Monday.
The move follows the transfer of 23 mobile units in Nov. 2021 to the Pakistani provinces of Sindh, Punjab, Khyber Pakhtunkhwa and Balochistan as well as the Islamabad Capital Territory.
The vehicles are crucial for expanding immunization services to Pakistan’s most vulnerable populations, and the project aims to improve service delivery, address immunization gaps, and reach zero-dose children in underserved areas, according to UNICEF.
The 4x4 vehicles were handed over to Pakistani officials at a ceremony held at the Federal Directorate of Immunization (FDI).
“These mobile clinics will deliver essential immunization services, guaranteeing equitable access for all communities,” UNICEF said in a statement.
On the occasion, Special Health Secretary Mirza Nasir-ud-Din Mashood Ahmad termed the necessary vaccination of children top priority of the Pakistani government.
“UNICEF’s provision of 4x4 vehicles will help overcome accessibility challenges in hard-to-reach areas, ensuring quality immunization services in remote regions of KP, Balochistan, GB, and AJK,” he said.
Director-General Health Dr. Shabana Saleem stressed the importance of ensuring that vaccines reach every child, regardless of their location.
“These vehicles will strengthen our outreach capacity and help ensure that every child has equitable access to life-saving vaccines,” she said.
UNICEF’s Dr. Gunter Boussery said he was honored to contribute to this collective effort to serve Pakistan’s underserved communities.
UNICEF’s humanitarian aid to Pakistan focuses on education, health care and protection for vulnerable populations. In 2025, it seeks to support nutrition, emergency relief, refugee support, and disaster risk reduction, according to the UN agency.
Pakistan PM orders immediate steps to confiscate properties, assets of human traffickers
- The issue of human trafficking gained attention in Pakistan after last month’s boat capsize in Greece that killed five Pakistanis
- PM Shehbaz Sharif orders authorities to enhance prosecution for those involved in human trafficking, ensure strict punitive measures
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed authorities to take immediate steps to seize properties and assets of human traffickers, his office said, following the death of five Pakistani nationals in a migrant boat capsize off the southern Greek island of Gavdos last month.
The issue of illegal immigration to Europe and its consequences gained significant attention in Pakistan after last month’s incident, with the prime minister ordering “intensified efforts” against human traffickers in the country.
The boat tragedy, which occurred on Dec. 14, underscored the perilous journeys many migrants undertake due to conflicts around the world. In the case of Pakistani nationals, the movement is mostly driven by economic reasons, with many young individuals attempting to reach European shores in search of better financial prospects.
On Monday, Sharif presided over a meeting to discuss the progress of actions taken against human trafficking, legal proceedings against facilitators and legislative advancements to combat human smuggling.
“Severe legal action be taken against all human trafficking groups in the country so that they become an example for others,” Sharif was quoted as saying by his office.
“Immediate legal action be taken to confiscate properties and assets of human traffickers.”
The development follows the arrest of multiple suspects involved in last month’s boat tragedy in Greece as well as another major incident in 2023, in which hundreds of migrants, including 262 Pakistanis, had drowned when an overcrowded vessel traveling from Libya capsized and sank in international waters off the southwestern Greek coastal town of Pylos.
The prime minister ordered authorities to enhance prosecution for those involved in human trafficking and ensure strict punitive measures against its facilitators. He directed the Foreign Office take measures for swift extradition of Pakistanis involved in human trafficking abroad.
“The screening process at airports for individuals traveling abroad should be made more effective,” he said, asking the information and interior ministries to launch public awareness campaigns to encourage citizens to pursue only legal channels for overseas employment.
The prime minister also stressed the promotion of technical training institutes to provide certified and skilled workforce to international markets.
South Africa wrap up Test series win over Pakistan
- Forced to follow on 421 runs , Pakistan battled to 478 all out
- South Africa easily knocked off a target of 58 on the fourth day
CAPE TOWN: South Africa eased to a 10-wicket victory over Pakistan in the second Test on Monday in Cape Town to secure a 2-0 series win despite second-innings resistance from the tourists.
Forced to follow on 421 runs behind on the first innings, Pakistan battled to 478 all out but South Africa, who qualified for the World Test Championship final last week, easily knocked off a target of 58 late on the fourth day.
David Bedingham hit 44 not out off 30 balls as South Africa sealed victory in just 7.1 overs.
Bedingham was opening in place of Ryan Rickelton, who suffered a hamstring strain in the field after scoring 259 in South Africa’s first innings of 615.
Captain Shan Masood led Pakistan’s fightback, scoring 145.
Masood fell to the second new ball, trapped leg before wicket by 18-year-old debutant Kwena Maphaka.
Masood’s dismissal came three balls after Kagiso Rabada had Saud Shakeel caught at second slip for 23, ending a 51-run fourth-wicket stand.
Pakistan, a batter short after Saim Ayub suffered a broken ankle while fielding on the first morning, were still 92 runs in arrears after the double blow.
But Mohammad Rizwan (41) and Salman Agha (48) put on 88 for the sixth wicket and Aamer Jamal hit a quick 34 before the innings was ended.
South Africa’s bowlers received virtually no assistance from a placid pitch.
Left-arm spinner Keshav Maharaj, who had been expected to be a major factor on a fourth day pitch, achieved minimal spin and toiled for 45 overs to take three for 137.
South Africa will go into the Test championship final against Australia at Lord’s in June on the back of seven straight wins — the second most successful sequence in their history.
Pakistan suspends mobile, Internet service for two days in capital of restive Balochistan province
- The development came a day after a suicide blast killed five Pakistani soldiers in Balochistan’s Kech district
- The southwestern province has been the site of a long-running insurgency, which has intensified in recent years
QUETTA: Authorities in Pakistan’s southwestern Balochistan province have suspended cellular and mobile Internet services in the provincial capital of Quetta for two days, officials said on Monday, citing “security reasons.”
The decision came a day after a suicide attack on a convoy of Frontier Corps (FC) paramilitary force in the Kech district, which killed five soldiers and injured several others.
The attack was claimed by the outlawed Baloch Liberation Army (BLA), one of the most prominent armed groups involved in dozens of attacks that killed over 100 people in Balochistan in 2024.
Balochistan, a mineral-rich Pakistani province which shares its border with Iran and Afghanistan, has been the site of a long-running insurgency, which has intensified in recent years.
“The provincial home department requested the Pakistan Telecommunication Authority (PTA) to suspend the mobile service in Quetta,” Deputy Commissioner Saad bin Asad told Arab News.
“Cellular and mobile Internet services have been suspended for two days due to security reasons,” he said, without specifying the nature of these threats.
Baloch separatist groups say they are fighting what they call exploitation of the region’s resources by the state. The Pakistani government denies the allegation and says it is working for the uplift of the impoverished region.
In 2024, Balochistan witnessed a dramatic 41 percent increase in militant attacks. Nearly 300 people were killed in 564 attacks of different variations in the province, while 44 percent of these attacks targeted Pakistani security forces, according to the provincial government data.
Sunday’s mobile and Internet service suspension also came hours after a re-election in a provincial assembly constituency, PB-45, which triggered protests by Jamiat Ulema-e-Islam (JUI) religious party over alleged rigging of poll.
The JUI announced a province-wide shutter down strike in the province on Monday, which was partially observed in areas where the party has strong presence.
