Search form

You are here

  • Home
  • Pakistan passes tax-laden budget ahead of fresh IMF loan


Pakistan passes tax-laden budget ahead of fresh IMF loan

1 / 2
Pakistan's Finance Minister Muhammad Aurangzeb is addressing the National Assembly in Islamabad, Pakistan on June 28, 2024. (@NAofPakistan/X)
2 / 2
People stand outside the Parliament house during a budget session in Islamabad on June 26, 2024. (AFP)
Short Url

https://arab.news/6ty8j

Updated 28 June 2024
Reuters
Follow

Pakistan passes tax-laden budget ahead of fresh IMF loan

  • Finance bill passed ahead of Pakistan’s talks with IMF for loan of $6 billion to $8 billion
  • Government presented budget this month with challenging tax revenue target of $46.66 billion
Updated 28 June 2024
Reuters

ISLAMABAD: Pakistan’s parliament on Friday passed the government’s tax heavy finance bill for the coming fiscal year amid an annual inflation projection of up to 13.5 percent for June.

The bill comes ahead of more talks with the IMF for a loan of $6 billion to $8 billion to avert a debt default for Pakistan, the slowest growing economy in South Asia.

As the parliament moved to pass the bill clause by clause, Pakistan’s sovereign dollar bonds slid on Friday, Tradeweb data showed, with the 2031 maturity shedding 1.4 cents to trade at 78.69 cents on the dollar.

Finance Minister Muhammad Aurangzeb moved the finance bill in parliament, which was opened to seek amendments and debate by the ruling alliance led by Prime Minster Shehbaz Sharif and its opposition.

Speaker Sardar Ayaz Sadiq announced passing of the budget in a live TV telecast.

The government presented the national budget on June 12 with a challenging tax revenue target of 13 trillion rupees ($46.66 billion) for the year starting July 1, up about 40 percent from the current year, to strengthen the case for a new rescue deal with the International Monetary Fund (IMF).

The budget is gearing the country toward an era of sustainable and inclusive growth, said a finance ministry report issued on Friday, which projected annual consumer price inflation for June 2024 between 12.5 percent to 13.5 percent, up from 11.8 percent in May.

“The government was implementing various administrative, policy and relief measures to control inflationary pressures,” the report said.

The rise in the tax target is made up of a 48 percent increase in direct taxes and a 35 percent hike in indirect taxes over revised estimates of the current year. Non-tax revenue, including petroleum levies, is seen increasing by 64 percent.

The tax would increase to 18 percent on textile and leather products as well as mobile phones besides a hike in the tax on capital gains from real estate.

Workers will also get hit with more direct tax on income.

Opposition parties, mainly parliamentarians backed by the jailed former Prime Minister Imran Khan, have rejected the budget, saying it will be highly inflationary.

Pakistan has projected a sharp drop in its fiscal deficit for the new financial year to 5.9 percent of gross domestic product (GDP), from an upwardly revised estimate of 7.4 percent for the current year.

Pakistan’s central bank has also warned of possible inflationary effects from the budget, saying limited progress in structural reforms to broaden the tax base meant increased revenue must come from hiking taxes.

The upcoming year’s growth target has been set at 3.6 percent with inflation projected at 12 percent.

Topics: Pakistan Budget 2024-25 National Assembly of Pakistan

Fears mount of new deportation wave as Afghan refugees’ registration cards expire on June 30

Updated 15 sec ago
Follow

Fears mount of new deportation wave as Afghan refugees’ registration cards expire on June 30

  • Pakistan extended the POR cards for two months in April after expelling more than 540,000 Afghan nationals
  • Government launched the deportation drive against ‘illegal immigrants’ in November, citing security concerns
Updated 15 sec ago
Arab News Pakistan

ISLAMABAD: Pakistan may resume its deportation drive against Afghan refugees from Monday after their Proof of Registration (POR) cards expire today, June 30.
POR cards are identification documents issued by Pakistani authorities to Afghan refugees that serve as official recognition of their legal status in the country, allowing them access to various services such as education, health care and banking.
The government extends these cards on a periodic basis, often depending on the political and security situations involving both countries.
It decided to extend these cards for two months in April amid rising international concerns of more Afghans being expelled after over 540,000 of them were sent home in the first deportation phase launched amid security concerns last November.
While the government has not yet issued a statement addressing the future of these refugees, the situation has once again stirred concern about Afghan nationals needing “international protection.”
“They’re refugees. They’re not involved in terrorist activities. They’re just people who fled and who need protection,” Philippa Candler, an Afghan refugee agency official in Pakistan, was quoted as saying by Al Jazeera.
Pakistan began its deportation drive against “illegal immigrants,” mostly Afghan nationals, after a surge of deadly suicide bombings which officials in Islamabad blamed on militants based in Afghanistan.
The authorities also blamed the Afghan administration in Kabul for facilitating these militants, a charge denied by Taliban officials, while blaming Afghan nationals in Pakistan for carrying out 14 out of 24 suicide attacks in the country.
Pakistani officials also warned that they would expel registered Afghan refugees from the country.

Topics: Afghan refugee in Pakistan

Seven killed, 10 injured in road collision in Pakistan’s Karachi amid heavy port traffic

Updated 30 June 2024
Follow

Seven killed, 10 injured in road collision in Pakistan’s Karachi amid heavy port traffic

  • The incident took place on Mauripur Road, which is notorious for traffic jams due to heavy vehicles
  • The top police surgeon in Karachi says three people involved in the accident are in critical condition
Updated 30 June 2024
Hasaan Ali Khan

KARACHI: Seven people were killed and ten injured after a road accident occurred between a coaster and a trailer in Pakistan’s southern city of Karachi on Sunday.
The incident took place on the central Mauripur Road, notorious for traffic jams due to the heavy flow of trawlers and trucks carrying goods to and from the city’s port facilities.
Karachi, Pakistan’s commercial capital, is a major hub for import and export, benefiting from a bustling harbor that provides access to global sea lanes.
“We received seven bodies, one male and six females,” said Karachi’s top police surgeon, Dr. Summaiya Syed, while speaking to Arab News.
She informed that among the 10 injured people, four were male while six were female, with three of them in critical condition.
Road accidents are common in Pakistan, where traffic rules are rarely followed and roads are often in poor condition.
Karachi, the largest and most densely populated Pakistani metropolis, experiences a heavy load of traffic on nearly every artery of the city.
According to media reports, the speeding coaster rammed into the trailer and overturned as the latter’s driver was trying to take a U-turn.
Sindh Chief Minister Murad Ali Shah expressed grief over the incident, saying the licenses of all reckless drivers should be suspended.

Topics: road accident

Twenty inmates stage jailbreak in Azad Kashmir, one killed – officials

Updated 30 June 2024
AFP
Follow

Twenty inmates stage jailbreak in Azad Kashmir, one killed – officials

  • The incident took place at the Poonch district jail in Rawalakot city where the inmates used a revolver to hold a sentry hostage
  • A search operation is underway to locate the escapees, some of whom were held on serious charges including terrorism
Updated 30 June 2024
AFP

MUZAFFARABAD: Twenty detainees, some accused of terrorism, staged a prison break in Azad Kashmir on Sunday, officials told AFP, adding that one was “killed in the crossfire” during the escape.
“The inmates had a revolver that they used to hold a sentry hostage,” said Badar Munir, an official with the regional ministry of interior.
“It is unclear whether they seized it (the weapon) from jail officials or if it was brought in from outside,” Munir added.
The incident took place at the Poonch district jail in Rawalakot city, about 110 kilometers (68 miles) south of Muzaffarabad, the capital of Azad Kashmir.
“In total, 20 people escaped from the prison. One was killed in the crossfire, while 19 others remain at large,” the inspector general of Kashmir prisons, Waheed Ali Gillani, told AFP.
A senior local police official, Riaz Mughal, told AFP that police had blocked the entry and exit points of Rawalakot, and a search operation was currently under way to locate the escapees.
Prisons in Pakistan are notorious for overcrowding, poor conditions, corruption and human rights violations. Additionally, slow judicial processes contribute to prolonged stays for prisoners.
Militant groups have organized several mass jailbreaks in Pakistan in the past, including one in the northwestern town of Bannu in 2012 that sprung 400 prisoners.

Topics: Kashmir jailbreak

Seven dead in torrential rains in southwest Pakistan amid warnings of more pre-monsoon showers

Updated 30 June 2024
Follow

Seven dead in torrential rains in southwest Pakistan amid warnings of more pre-monsoon showers

  • Provincial Disaster Management Authority calls Dera Bugti the most highly affected area due to the rainfall
  • Balochistan also bore a significant brunt of the devastation caused by heavy monsoon rains two years ago
Updated 30 June 2024
Nadeem Khan

QUETTA: Torrential rains killed seven people, including two children, and injured at least 25 in southwest Pakistan, a Provincial Disaster Management Authority (PDMA) official in Balochistan said on Sunday, adding that Dera Bugti district, about 360 kilometers from Quetta, was the most affected area.
Pakistan’s struggle with natural disasters intensified in 2022, as unprecedented monsoon rains wreaked havoc nationwide, claiming 1,700 lives and resulting in an estimated $35 billion in financial losses.
The country’s southern belt, including Balochistan, bore a significant brunt of the devastation.
Pakistan contributes less than one percent to global carbon emissions, though it ranks among the top ten nations most vulnerable to climate change.
“Relief operation is underway, and we have provided food items and tents to the affected,” Muhammad Younus, who supervises the PDMA emergency cell, told Arab News while confirming the number of fatalities. “Officials are doing the damage assessment survey.”

The photo taken on June 30, 2024, shows a house destroyed by torrential rains in the southwest Pakistan. (AN Photo)


Younus informed the province expected pre-monsoon rainfall early next month, starting from July 7.
“Relevant departments have been asked to clear the water channels before any disaster,” he added.
Speaking to Arab News, Riaz Ali, a resident of Sajjo Colony in Sui, a town in Dera Bugti district, said he lost his 17-year-old son a day earlier when the roof of a local restaurant collapsed due to heavy rain.
“It was 4 or 5 PM when the heavy rainstorm began and lasted for 30 minutes,” he recalled. “In the evening, I received a call from my neighbor, who works at a hospital, to tell me that my son had died. I went to the hospital to receive his body. He had been injured in his head.”
The current situation has reminded the residents of the province of the catastrophe two years ago when heavy rains led to flash floods that destroyed houses, agricultural fields and public infrastructure in the province.
Sannaullah Panezai, an associate professor of geography at the University of Balochistan, noted the rise in erratic weather patterns in Pakistan.
“Such rains mostly began by the end of July and lasted till September in the past,” he said, pointing out the region did not receive much rain in 2023. “Climate change has been affecting rainfall and causing flash floods.”
The recent rains in Balochistan have also caused concern for agricultural production in the area.
“Our garden of apples has been partially affected,” Fazal Deen, who has his own fields in Ziarat, told Arab News. “We have also planted vegetables on 10 acres of land that have been completely destroyed.”

Topics: rains climate change Global warming monsoon rains

Pakistan’s new national firewall to target ‘propaganda and unwanted content,’ confirms official

Updated 30 June 2024
Follow

Pakistan’s new national firewall to target ‘propaganda and unwanted content,’ confirms official

  • IT ministry official plays down concerns of crackdown on social media content, says the step is taken to protect national security
  • Experts call it an ‘Internet surveillance mechanism’ that can easily become a threat to individual privacy and freedom of expression
Updated 30 June 2024
Aamir Saeed

ISLAMABAD: Pakistan is installing a national firewall to filter and block “propaganda and unwanted content” online, enhance its capacity to protect digital data from hackers and ensure cybersecurity, confirmed a top government official on Sunday, emphasizing the measure was not aimed at curtailing dissent on social media.
A firewall is a network security device that monitors and filters incoming and outgoing network traffic based on predetermined security parameters. It constitutes a barrier that sits between a private internal network and the public Internet. The main purpose of a firewall is to allow non-threatening traffic in and to keep dangerous and undesirable traffic out.
Pakistan’s Internet regulatory body, the Pakistan Telecommunication Authority (PTA), already possesses the technological ability to block unwanted content and prevent the access of local users to specific websites. However, the installation of the national firewall is expected enhance its capability to filter and monitor the Internet content on a wider scale.
“The PTA is trying to enhance its capability through the installation of the national firewall to block propaganda, unwanted content on the Internet besides ensuring data protection and cybersecurity,” a top Ministry of Information Technology official told Arab News on condition of anonymity since he was not authorized to speak to media about the issue.
“The PTA is installing the firewall to boost national security,” he added. “The Internet users should not worry about any crackdown or limiting their views and traffic.”
Pakistan has frequently blocked the Internet and social media applications in the name of national security in recent years, prompting digital rights activists to express reservations over the firewall and its likely utilization to filter the social media content and stifle dissenting voices.
“Try to see the firewall within a broader national interest perspective, not just from the social media prism,” the ministry official said, acknowledging the firewall could also be used for filtering and blocking the social media content.
He noted that just the installation of the firewall was not going to be enough to achieve the objective, adding it would also require a complete infrastructure and mechanism to process and analyze the data and initiate further necessary corrective actions.
However, he declined to reveal information about the cost and purchase of the firewall.
“Every country is using the firewall to protect its data and national interest,” he continued. “Therefore, we should not worry about it.”
The PTA did not respond to Arab News’ queries until the filing of this report.
Information technology experts warned the advantages and disadvantages of a firewall would depend on its usage and the subsequent actions.
“We could use this firewall to block our users’ access to content like Islamophobia and pornography while filtering out content spreading propaganda against our national institutions,” Muhammad Zohaib Khan, Chairman of Pakistan IT Industry Association, the main representative body for the country’s IT and IT-enabled services, told Arab News. “This will help us protect against cyberattacks against our digital assets.”
He maintained the installation of the firewall was a “good step,” though he admitted its “benefits will depend on its use.
“As long as it doesn’t hurt the IT industry, we support the initiative,” he added.
Mubashir Sargana, a cybersecurity professional and an Internet public policy researcher, said the firewall would help the authorities identify the originator and recipients of specific content along with the whole chain involved in further spreading that it on social media and websites.
“Specific hashtags and keywords will be entered to filter the content and get real time popups with which the authorities will be able to easily track down its originator and recipients,” he said.
“This is basically an Internet surveillance mechanism that can easily become a threat to privacy and freedom of expression,” Sargana added. “Only time will tell if the authorities are going to use the firewall to boost cybersecurity or hound and curb online dissent.”

Topics: Firewall Pakistan internet

Latest updates

Fears mount of new deportation wave as Afghan refugees’ registration cards expire on June 30
Palestinians say Israeli drone strike kills West Bank militant
George Russell gifted Austrian Grand Prix victory after Max Verstappen in late collision
Seven killed, 10 injured in road collision in Pakistan’s Karachi amid heavy port traffic
Twenty inmates stage jailbreak in Azad Kashmir, one killed – officials

Search form

Print Edition
Read pdf version Subscribe now
© 2024 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.