ISLAMABAD: Pakistan’s envoy to Iran, Ambassador Muhammad Mudassir Tipu, mentioned on Saturday enhanced trade and immigration facilities on the border crossing point between the two countries to facilitate increased movement of entrepreneurs and pilgrims, expressing optimism that their bilateral ties were on a positive trajectory.
Last month, the Pakistani diplomat announced that the two countries had decided to operate the Taftan-Gabd border between them 24/7 to improve the bilateral flow of goods and expand economic opportunities.
Pakistani people, including Zaireen or pilgrims and traders, frequently travel overland between the two countries, with religious devotees mostly visiting holy sites like Mashhad and Qom.
The movement of people and goods contributes to the cultural, economic and social ties between the neighboring states.
“Absolutely delighted to share that to facilitate Zaireen, business [community] & promote bilateral trade immigration facilities at Taftan-Gabd border terminals have been substantially beefed up,” the Pakistani envoy announced in a social media post. “Now 4-6,000 passengers can cross both points everyday. [Pakistan-Iran] ties to see promising future.”
https://x.com/AmbMudassir/status/1806987097867161837
Pakistan and Iran have intensified efforts to expand bilateral trade through initiatives like establishing border markets and implementing barter trade mechanisms.
These developments aim to facilitate smoother economic activities and are part of broader attempts to increase bilateral trade to $10 billion over the next five years.
Pakistan and Iran have also been working to develop closer political ties, the late Iranian President Seyyed Ebrahim Raisi visiting Pakistan earlier this year in April.
Pakistan’s envoy to Tehran announces enhanced border facilities to bolster ties with Iran
https://arab.news/2v8k4
Pakistan’s envoy to Tehran announces enhanced border facilities to bolster ties with Iran
- Last month, the two countries decided to operate the Taftan-Gabd border between them 24/7 for improved flow of goods
- Pakistan and Iran have also intensified efforts to expand trade by establishing border markets, implementing barter mechanism
Pakistan united against ‘terrorism,’ says PM after militant attack kills two security personnel
- Militants kill police officer, FC personnel in attack on police checkpost in northwestern Pakistan
- Pakistan last month announced launching new anti-terror operation to eliminate militants from country
ISLAMABAD: The entire nation is united in its resolve to eliminate “terrorism” from the country, Prime Minister Shehbaz Sharif said on Monday after militants killed two security personnel in an attack in northwestern Pakistan.
A police officer named Ejaz and Frontier Constabulary (FC) official Shahzad were killed on Sunday after militants attacked a police checkpost in Khyber district. Pakistan’s Interior Minister Mohsin Naqvi said in a statement that the slain security personnel thwarted the militants’ attack.
In a statement issued by the Prime Minister’s Office (PMO), Sharif praised the two officials for laying down their lives for Pakistan, recognizing the country’s armed forces, police and law enforcers’ sacrifices for the nation.
“The Pakistani nation is proud of its martyrs and their families,” Sharif was quoted as saying in a statement. “The entire nation is united to eliminate the scourge of terrorism.”
Pakistan’s top national security forum last month announced it was launching a new military operation, “Operation Azm-e-Istehkam” or “Resolve for Stability,” to root out militants in the country. Sharif clarified that the government was not considering a large-scale military operation that would displace people within the country, adding that Azm-e-Istehkam would mobilize military operations that have already been launched against militants.
The decision was criticized by two main parties in Pakistan’s militancy-wracked northwestern Khyber Pakhtunkhwa (KP) province, the Pakistan Tehreek-e-Insaf (PTI) and Jamiat Ulama-e-Pakistan Fazl (JUI-F), who accused the government of not taking them into confidence about the military operation.
Pakistan’s Defense Minister Khawaja Asif assured the opposition that the operation would be enforced after it is discussed and debated in parliament. He said the government would address all concerns regarding the military operation by the JUI-F and the PTI and build a national consensus over it.
Thousands of people in Pakistan’s tribal areas were displaced during the late 2000s when the Pakistan Army launched operations to clear the area from the Tehreek-e-Taliban Pakistan (TTP) or Pakistani Taliban militants.
The TTP, who seek to enforce their own brand of strict Islamic law, have carried out some of the deadliest attacks against Pakistani civilians and security forces since 2007.
Pakistan, which has suffered a surge in militant attacks since a fragile truce between the government and the TTP broke down in November 2022, has blamed the Afghan government for not doing enough to rein in TTP militants whom it accuses of using Afghan soil to launch attacks in Pakistan.
Kabul denies this. Since last November, the Pakistan government has also launched a deportation drive under which over 600,000 Afghan nationals have been expelled from Pakistan.
Pakistan’s tax-heavy budget goes into effect today ahead of IMF loan talks
- Pakistan’s parliament passed federal budget last week despite protests from opposition
- Economists say budget in line with IMF recommendations, to help Pakistan secure bailout package
ISLAMABAD: Pakistan’s tax-heavy $67.76 billion budget for the new fiscal year takes effect from today, Monday, which Islamabad hopes will prove instrumental in securing another bailout package from the International Monetary Fund (IMF) to stave off a macroeconomic crisis.
President Asif Ali Zardari signed the Finance Bill 2024-25 into law on Sunday after the country’s parliament passed it last week amid an annual inflation projection of up to 13.5 percent for June. The bill comes ahead of more talks with the international lender for a loan of up to $8 billion to avert a debt default for Pakistan, the slowest-growing economy in South Asia.
The ambitious budget, with a challenging tax revenue target of Rs13 trillion ($46.66 billion) has drawn the ire of the government’s allies and opposition alike, who have demanded relief for the salaried class and the poor. The revenue collection target for FY25 is almost 40 percent higher from the last fiscal year, drawing criticism from the business community as well.
“I have already said we are moving in a positive way,” Finance Minister Muhammad Aurangzeb said on Sunday, speaking about the fresh IMF program during a media interaction in the federal capital. “During July we should get into a good agreement.”
Pakistan began discussions about a new loan with IMF officials soon after completing a $3 billion program that helped the country stave off a sovereign debt default last year. The international lender sent its delegation to Pakistan in May to hold negotiations with the new government which did not materialize into a staff-level agreement.
Pakistan has sought IMF loans in recent years due to a combination of economic challenges, including significant fiscal and current account deficits, declining foreign exchange reserves and rising public debt.
These economic vulnerabilities have been exacerbated by external shocks like fluctuating commodity prices and internal challenges such as political instability and policy inconsistency.
The government has maintained the country’s economy is on the mend but considers the new bailout important to ensure a substantial financial cushion.
TAX-LADEN BUDGET
Pakistan’s finance ministry said in a report on Friday that the budget is gearing the country toward “an era of sustainable and inclusive growth.” It projected an annual consumer price inflation for June 2024 between 12.5 percent to 13.5 percent, up from 11.8 percent in May.
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, and top trade bodies have rejected the budget, saying it will be highly inflationary and lead to industry shutdowns.
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.
Pakistan’s tax authority says surpassed revenue collection target for FY24
- Federal Board of Revenue (FBR) says it collected Rs9,306 billion ($33.55 billion) as opposed to target of Rs9,252 billion ($33.36 billion) for FY24
- FBR says ready to put in “best efforts” to achieve ambitious revenue target of Rs13 trillion for this fiscal year
ISLAMABAD: The Federal Bureau of Revenue (FBR) announced on Sunday it had surpassed its revenue collection target of Rs9,252 billion ($33.36 billion) by collecting Rs9,306 billion ($33.55 billion) for the previous fiscal year, saying it is ready to achieve the ambitious revenue target for the current fiscal year.
Pakistan’s narrow tax base and enduring tax evasion issue leads to the problem of insufficient revenue collection for the country’s fragile economy each year. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing, increasing the nation’s debt burden.
The FBR announced on social media platform X it had “comfortably achieved” its revenue collection target for the previous fiscal year, collecting Rs9,306 billion ($33.55 billion) in total and thus exceeding its target by Rs54 billion ($190 million).
“The growth in revenue collection is 30 percent as compared to the last year,” the FBR wrote on X.
The FBR said it had collected Rs1,183 billion ($4.27 billion) in June alone, adding that the target was despite imports being compressed from $55 billion ($200 million) to $53 billion ($200 million).
“For the FY 2023-24, FBR collected income tax amounting to Rs4,528 billion ($16.33 billion) as compared to Rs3,270 billion ($11.79 billion) during the same period last year, depicting an increase of 38.4 percent,” the tax authority wrote.
“Similarly, under the head sales tax Rs3,098 billion ($11.17 billion) was collected as compared to Rs2,593 billion ($9.35 billion).”
The FBR said it collected Rs576 billion [$2.08 billion] in Federal Excise Duty (FED) compared to Rs370 billion ($1.33 billion) last year while the revenue collection under the Customs Duty tax head was recorded at Rs1,104 billion ($3.98 billion) compared to Rs931 billion ($3.36 billion) last year.
“FBR collected Rs6,128 billion ($22.09 billion) in domestic taxes and Rs3,178 billion ($11.46 billion) in import taxes, thereby depicting a growth of 37 percent in domestic taxes and 18 percent in imports despite import compression during the current financial year,” it said.
The tax authority said it had disbursed refunds amounting to Rs469 billion during FY 2023-24 compared to Rs331 billion ($1.19 billion) during FY 2022-23, with the amount being 42 percent more than last year.
“In addition to exceeding the annual revenue target, the Tax System of Pakistan also witnessed significant structural improvements, which were a direct result of the interest of the Honorable Prime Minister and Finance Minister,” it said.
The FBR said that despite all odds, it remains committed to achieving targets “under all circumstances.”
“It is reiterated that for the assigned revenue collection target for the FY 2024-25, the team FBR is ready to deliver and put in their best efforts to achieve it and serve the nation,” it added.
Pakistan has set a challenging tax revenue target of Rs13 trillion ($46.66 billion) for the current fiscal year, a near 40 percent jump from the previous one, to strengthen the case for a new bailout deal with the International Monetary Fund (IMF).
Pakistan’s new administration has decided to digitalize the tax collection system to prevent leakages, even as a large segment of the national economy remains undocumented.
Pakistani state minister for IT arrives in China to attend digital economy conference
- Conference aims to build up broader platform for cooperation, communication in terms of global digital economy
- State Minister for IT Shaza Fatima Khawaja to visit Pakistani tech companies’ booths, participate in panel discussions
ISLAMABAD: Pakistan’s State Minister for IT and Telecommunications Shaza Fatima Khawaja arrived in China on Monday to attend the “Global Digital Economy Conference,” state-run media reported, as Islamabad hopes to attract foreign investment in its priority sectors and modernize its economy amid efforts to ward off a macroeconomic crisis.
The Global Digital Economy Conference 2024 is scheduled to be held from July 2-5 at the China National Convention Center in Beijing. This conference aims to build a platform for cooperation and communication in terms of the global digital economy, and jointly promote prosperity and development of the global digital economy with all attendees, China’s government said on its official website.
“The Minister of State will visit booths of Pakistani tech companies and meet their representatives,” state broadcaster Radio Pakistan reported. “She will also attend ‘Euro Asia Pakistan Digital Economy Forum’ and participate in the panel discussions.”
Radio Pakistan said Khawaja will also hold meetings with “important figures” related to the information and communication technology sector during her trip. China is a major ally and investor in Pakistan, investing over $65 billion in energy and infrastructure projects in the South Asian country as part of the China-Pakistan Economic Corridor (CPEC), a key element of its Belt and Road initiative. This will connect China to the Arabian Sea and help modernize Pakistan’s economy through a network of roads, railways, pipelines, and ports.
Prime Minister Shehbaz Sharif visited China on a five-day official trip with a high-level delegation in June during which both countries signed several agreements to bolster trade and investment in agriculture, economy, IT and other sectors.
Pakistan has been trying to navigate a prolonged economic crisis by actively pursuing foreign investments and enhanced trade opportunities, while also seeking yet another International Monetary Fund (IMF) bailout to keep economic reforms on track.
Islamabad established the Special Investment Facilitation Council (SIFC), a civil-military hybrid forum, in June 2023 to attract foreign funding in agriculture, mining, information technology, defense production and energy.
Pakistan experienced 12% decline in overall violence during second quarter of 2024— report
- Violence in Balochistan decreased by 46% during second quarter, with fatalities dropping from 178 to 96
- Pakistan reported decline in 380 violence-linked casualties during this quarter compared to 432 in previous one
ISLAMABAD: Pakistan experienced a 12% decline in overall violence during the second quarter of 2024 from April to June, a local think tank’s report said on Monday, noting that the country’s northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces remained the “epicenters of violence” during this period.
Pakistani think tank Center for Research and Security Studies (CRSS) released the report on Monday. The CRSS, established in September 2007, says it is dedicated to advancing knowledge and understanding through research endeavors and publications, from in-depth analyzes of regional and national dynamics to policy recommendations for sustainable development.
In a report titled, “Overview Of Pakistan’s Security Landscape In Q2 2024” the CRSS stated that Pakistan witnessed 380 violence-linked fatalities and 220 injuries among civilians, security personnel, and outlaws in the second quarter of this year. These fatalities took place due to 240 incidents of terror attacks and counter-terror operations, the report said. Of these fatalities, 236 included civilians and security forces personnel.
“Violence and casualty rates across the country plummeted in Q2, 2024,” the report said. “The country experienced a 12% reduction in overall violence, with 380 fatalities recorded compared to 432 in Q1 2024.”
It said KP and Balochistan were the “epicenters of violence” accounting for nearly 92% of all fatalities and 87% of attacks (including incidents of “terrorism” and security forces operations) during the second quarter.
KP suffered 67% and Balochistan 25% of all fatalities during this period, the report disclosed, noting that the data reflected the remaining regions of the country were “relatively peaceful” and suffered only 8 percent of all fatalities.
It said Balochistan showed “remarkable” improvement, with the rate of violence dropping to almost 50 percent during the second quarter. “The most notable improvement was seen in Balochistan, where violence decreased by 46 percent, with fatalities falling from 178 in Q1 to 96 in Q2 2024,” the report pointed out.
It added that violence saw a notable decline of 32% in Pakistan’s southern Sindh province while “similar downward trends” were reported in Pakistan’s capital Islamabad and its semi-autonomous region of Gilgit-Baltistan.
The report noted that outlaws accounted for the majority of fatalities, 38%, followed by civilians, who accounted for 32% of all the casualties during the second quarter of 2024. Security and government officials comprised 30% of all the casualties, it said.
“Compared to Q1, civilian and security forces’ fatalities decreased by 21% and 10%, respectively, while militant fatalities increased by 29%,” the CRSS report said. “Notably, only 2 insurgents were killed in Q2, a sharp decline from 41 in Q1.”
However, the report also acknowledged some of the worrying trends of the second quarter, most notably that civilians, government officials, and security personnel suffered 62 percent of all fatalities, compared to the 38 percent figure for outlaws.
“Civilians suffered the highest number of militant and insurgent attacks,” the report said.
Pakistan has seen an uptick in attacks on its western provinces bordering Afghanistan. The South Asian country has blamed the recent surge in militant attacks on neighboring Afghanistan, which it says allows Pakistani Taliban militants to hold camps and train insurgents to launch attacks inside Pakistan.
Kabul denies this. Since last November, the Pakistan government has also launched a deportation drive under which over 600,000 Afghan nationals have been expelled from Pakistan.
Pakistan’s Defense Minister Khawaja Asif threatened to launch cross-border attacks in Afghanistan to carry out alleged militant targets in the country. His statement was criticized by the Taliban government in Kabul, who warned him that such a move would have “consequences.”
