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
https://arab.news/yvw26
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
Protesters in Pakistan’s north continue blockade of key highway to China over power outages
- Residents of Gilgit-Baltistan started a sit-in on Jan.1, vowing to protest until they got reliable electricity
REUTERS & ARAB NEWS PAKISTAN
ISLAMABAD: Hundreds of protesters in Pakistan’s northern Hunza Valley blocked the Karakoram Highway (KKH) for the sixth consecutive day on Tuesday, demonstrating against severe power outages during the region’s freezing winter.
The protest, which began on January 1, involves local residents, political parties and civil society groups who vowed to continue their sit-in until their demands for reliable electricity were met.
Demonstrators on Tuesday voiced frustration over the Gilgit-Baltistan government’s failure to ensure even a few hours of power each day, saying over 80,000 people were struggling for basic needs.
The KKH, a vital trade and strategic route linking Pakistan with China, has been obstructed at Aliabad, the district headquarters of Hunza. The area plays a critical role in bilateral trade facilitated by the China-Pakistan Economic Corridor (CPEC), which has increased since an agreement to keep the Khunjerab Pass open year-round for economic exchanges.
“This is a nerve-breaking power outage in Hunza,” said Baba Jan, a protester, speaking at the sit-in. “We are getting power only 30-40 minutes in 24 hours.
“It is very cold here,” he added. “The temperature drops to minus 15 at night. Students don’t have Internet due to the power outage. There are issues in lighting, heating and cooking that people are facing here.”
Rehan Shah, another protester agreed, emphasizing the area’s important defense and strategic location.
“It’s the gate of CPEC and Pakistan-China connectivity,” he noted. “People here are hardly getting power for one hour and twenty minutes during the daytime. They’ve been out protesting on the streets for the last six days.”
Power cuts, known locally as load shedding, are a chronic issue in Pakistan, with many areas facing significant disruptions. The harsh winters in Gilgit-Baltistan exacerbate the problem, leaving residents without adequate heating or access to essential services.
Last week, Hamid Hussain, an engineer at the Gilgit-Baltistan Water and Power Department, acknowledged the issue but attributed it to technical limitations.
“The region heavily relies on hydropower, which often faces disruption in winter due to the freezing of rivers and lakes,” he told Arab News.
“There are 137 power stations in Gilgit-Baltistan,” he added. “The installed capacity of these power stations is 190 megawatts. However, power generation is 140 megawatts during the summer while 76 megawatts during the winter due to the low flow of water.”
Protesters have demanded thermal power generators to supplement energy needs during the winter, but Hussain said they were costly and were hard to implement due to financial constraints.
Diplomat pays tribute as 89 Pakistani devotees attend Sufi saint’s death anniversary in India
- Religious devotees are commemorating the 813th anniversary of Khwaja Moinuddin Chishti in Ajmer
- Despite strained relations between the two nuclear-armed states, cultural and exchanges continue
ISLAMABAD: A group of 89 Pakistani devotees began attending the 813th annual Urs, or death anniversary commemoration, of the 12th-century Sufi saint Khwaja Moinuddin Chishti in India, with a Pakistani diplomat laying a traditional chaddar, or ceremonial cloth, at his shrine on Tuesday.
Born in 1141 in Sistan, modern-day Iran, Chishti arrived in India in the late 12th century and gained a following for his teachings of compassion and service to humanity, which resonated deeply with the region’s marginalized communities. Known as Gharib Nawaz, or Benefactor of the Poor, he established the Chishti Order of Sufism in South Asia.
His legacy as a symbol of interfaith harmony endures through his shrine in Ajmer, Rajasthan, which draws millions of devotees annually, particularly during the commemoration of his death anniversary.
“To participate in the 813th annual Urs Mubarak of Hazrat Khwaja Syed Moinuddin Hasan Chishti (RA), a group of 89 Pakistani Zaireen [pilgrims] is in Ajmeer Sharif from 7-9 January 2025,” the Pakistan High Commission said on X, formerly Twitter.
“Pakistani Zaireen accompanied by Second Secretary, Pakistan High Commission, New Delhi, Mr. Tariq Masroof, placed the traditional Chaddar at the Shrine of Hazrat Khwaja Syed Moinuddin Hasan Chishti,” it added.
The event underscores how cultural and religious exchanges have persisted between India and Pakistan despite strained diplomatic relations since August 2019, when New Delhi revoked Kashmir’s special constitutional status. The disputed Himalayan region has long been a flashpoint between the two nuclear-armed neighbors, who have fought wars and numerous border skirmishes over it.
Religious tourism remains a crucial element of people-to-people exchanges under the 1974 Protocol on Visits to Religious Shrines, which permits citizens of both nations to visit sacred sites. These include Hindu and Sikh temples in Pakistan and Islamic shrines in India.
At the beginning of the year, the Pakistan High Commission announced it had issued 94 visas to Indian nationals to attend the birth anniversary of an 18th-century Hindu spiritual leader in Sindh province.
Pakistan has also promoted religious tourism by hosting Buddhist monks, as well as Hindu and Sikh pilgrims from India and other countries.
Pakistani authorities deny detaining 800 Afghans, say only repatriating illegal immigrants
- Afghan embassy recently said Islamabad administration was making arrests, targeting registered refugees
- Pakistani authorities announced in November Afghan nationals would require NOCs to stay in Islamabad
ISLAMABAD: The Islamabad Capital Territory (ICT) administration on Tuesday rejected claims by Afghanistan’s diplomatic mission it had detained approximately 800 Afghan citizens, asserting it was only repatriating illegal foreign nationals in accordance with the law.
Pakistan, which hosted over four million Afghan refugees after the Soviet invasion of Afghanistan in 1979, registered these individuals with the United Nations Refugee Agency (UNHCR). They were issued Proof of Registration (PoR) cards and Afghan Citizen Cards (ACC) to allow legal residence and access to services such as health care and banking.
Another wave of Afghan refugees arrived after the Taliban’s capture of Kabul in 2021 amid the withdrawal of US-led international forces. Confronted with economic challenges and a surge in militant violence perpetrated by groups reportedly operating from Afghan territory, Pakistan initiated a crackdown against “illegal immigrants,” mostly Afghans, citing security concerns.
Pakistani officials said in 2023 that some Afghan nationals had been involved in attacks, including suicide bombings, targeting civilians and security forces, a claimed denied by the administration in Kabul.
The Afghan embassy in Pakistan said on Monday authorities in Pakistan’s federal capital had detained about 800 Afghan nationals, including individuals registered with the UNHCR.
“It is clarified that only the illegal foreign nationals are being repatriated as per law of the land,” the ICT administration said in a statement.
“With regard to Afghan nationals, it is being clarified that those holding valid documentation— such as Proof of Registration (PoR) cards, Afghan Citizen Cards (ACC), visas, or those listed for third-country resettlement— are not being repatriated,” it added. “Islamabad Civil Administration remains committed to safeguarding the rights of all documented individuals.”
The statement further noted that search and combing operations were also conducted in compliance with the law, offering undocumented foreign nationals the chance to validate their status.
It also confirmed that in 2025, Islamabad authorities deported 183 illegal foreign nationals, while two were still in holding areas. Officials stressed that those deported lacked any legal documentation and reiterated that actions are taken strictly against undocumented individuals.
“The civil administration reaffirms its commitment to ensuring fair and humane treatment of all individuals while strictly adhering to legal requirements,” the ICT statement said, urging foreign nationals to carry valid documentation to avoid inconvenience.
Last year in November, Pakistani authorities announced that Afghan nationals would need no-objection certificates (NOCs) to stay in Islamabad. The decision followed the detention of several Afghan nationals who reportedly participated in a political rally by former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which turned violent, resulting in casualties.
The Afghan embassy expressed concern over alleged “unwarranted arrests, home searches, and extortion targeting Afghan nationals,” highlighting the reported detentions, including 137 who, it said, were temporarily registered with the UNHCR and had applied for visa extensions.
Women, children among six killed in road crash in Pakistan’s Balochistan
- The crash occurred in the mountainous Zhob district after speeding car lost control
- Fatal road accidents are common in Pakistan where traffic rules are rarely followed
QUETTA: At least six people, including women and children, were killed after a speeding car crashed into a trailer in Pakistan’s southwestern Balochistan province on Tuesday night, officials said.
The vehicle was en route to the provincial capital of Quetta from the Zhob district, according to Zhob Assistant Commissioner Naveed Ahmed.
The speeding car lost control on a mountainous curve on N-50 Quetta-Islamabad Highway and crashed into the trailer coming from the opposite direction in Badinzai area, some 20 kilometers from Zhob city.
“Six people, including two women and two children, were killed in the fatal accident and seven others injured,” AC Naveed Ahmed told Arab News, adding speeding vehicles often results in accidents at dangerous curves along the Quetta-Zhob highway.
Muhammad Shahjahan, in-charge of the Zhob Trauma Center where the bodies and injured were taken, told Arab News that four critically wounded persons had been shifted to Quetta.
“The bodies have been identified and handed over to the heirs, while three other injured are out of danger now,” he added.
Fatal road accidents are common in Pakistan where traffic rules are rarely followed and roads, particularly in rural and mountainous areas, are in poor condition. Such accidents are frequent in Balochistan where single-carriage roads connect various cities, and even some highways lack modern safety features.
On Dec. 30, at least 18 passengers were killed in two separate road accidents in Pakistan’s eastern Punjab and southern Sindh provinces, authorities said.
Three Pakistani soldiers, 19 militants killed in clashes in restive northwest
- The clashes took places in Peshawar, Mohmad and Karak districts of Pakistan’s northwestern Khyber Pakhtunkhwa province
- Islamabad has frequently blamed the surge in militancy on militants operating out of Afghanistan, Kabul denies allegation
ISLAMABAD: Three Pakistani soldiers and 19 militants were killed in separate clashes in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Tuesday.
Security forces killed eight militants in an intelligence-based operation in Matani area of KP’s Peshawar district, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
Another eight militants were killed in an operation in the Mohmand district. A third engagement resulted in the killing of three militants and three soldiers in KP’s Karak district.
“Sanitization operations are being conducted to eliminate any other Kharji [militant] found in the area,” the ISPR said in a statement.
Pakistan has witnessed a dramatic uptick in militant attacks in recent months, particularly in KP and the southwestern Balochistan province.
In 2024 alone, the military reported that 383 soldiers and 925 militants were killed in various clashes.
The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), are one of the most prominent militant groups that have regularly targeted security forces in KP along with separatist militants operating in the restive southwest.
Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.
