KARACHI: Ismail Industries Limited, a prominent food manufacturer and exporter in Pakistan, announced this week it would set up a subsidiary in Abu Dhabi after seeking the necessary regulatory approvals.
Pakistani businesses and industries have been grappling for years with chronic issues like the shortage of electricity, gas and water. A deteriorating law and order situation in most parts of the country and particularly the commercial hub, Karachi, is also fueling uncertainty for businesses. Major trade bodies have also rejected the new tax heavy finance bill for the coming fiscal year amid an annual inflation projection of up to 13.5 percent for June. The budget comes into effect on Monday.
“The Board of Directors (BoD) has resolved to establish/set-up a wholly owned subsidiary of the company in Abu Dhabi, UAE,” Ismail Industries said in a notice issued to the Pakistan Stock Exchange on Friday, informing its shareholders that the subsidiary would manufacture, market, sell, and distribute all kinds of food, including biscuits and confectionery.
“The company will accordingly seek all necessary regulatory approvals and proceed with the incorporation process once the same has been obtained.”
Ismail Industries produces a diverse range of confectionery, biscuits, chips, flour, packaging and other items. It includes Bisconni, which offers an extensive range of premium biscuits and cookies, and Candyland, which was set up in 1998 and makes a wide array of candies, chocolates, jellies and bubble gums.
Ismail Industries is ISO 22000 certified, a standard developed by the International Organization for Standardization dealing with food safety. It is also certified by SANHA (South African National Halal Authority), a leading authority in the certification for Halal products around the world.
Prominent Pakistani food manufacturer announces setting up UAE subsidiary
https://arab.news/6w4kz
Prominent Pakistani food manufacturer announces setting up UAE subsidiary
- Ismail Industries produces a diverse range of confectionery, biscuits, chips, flour
- It includes Bisconni, the biscuit company, and popular candy maker Candyland
Heavy taxes, inconsistent policies forcing multinationals to leave Pakistan, trade representative says
- PM Sharif’s government has been charging businesses as much as 10% super tax, 18% sales tax and 29% corporate tax this fiscal year
- OICCI expects the government to announce in the upcoming budget major cuts in taxes on corporate incomes to align with regional markets
KARACHI: Many multinational corporations (MNCs) have “packed up” and left Pakistan in recent years because of the country’s “inconsistent policies and a complicated tax regime,” Overseas Investors Chamber of Commerce & Industry (OICCI) CEO Abdul Aleem said this week.
Prime Minister Shehbaz Sharif’s government has imposed as much as 29 percent taxes on corporate incomes to increase the cash-strapped country’s revenues with the help of International Monetary Fund (IMF) that wanted Islamabad to tax incomes from agriculture, real estate and retail sectors in the fiscal year 2025-26 budget that Finance Minister Muhammad Aurangzeb is expected to present on June 10.
“Basically the issue with our members and which generally the foreign investors are facing is that the consistency of policy is not there,” Aleem told Arab News in an interview on Friday.
Pakistan’s existing tax regime is “very complicated” and leads to a lot of litigations while abrupt changes in the government’s corporate policies have seen global giants like Shell plc., TotalEnergies SE and some pharmaceutical firms divest their shares in the country, the world’s fifth most populous nation and thus a big consumer market.
The OICCI is the biggest taxpayer in Pakistan that has been paying Rs15 billion ($53.2 million) daily in taxes, which is about one-third of the total taxes the nation collects in a year, according to its CEO. Its members include Pepsi-Cola International (Private) Limited, Pakistan Kuwait Investment Company, Citibank N.A., Toyota’s Pakistan unit Indus Motor Company Ltd. and Maersk Pakistan (Pvt.) Ltd.
“Many of the companies packed up a few years back,” Aleem said.
TotalEnergies SE sold 50 percent of its shareholding in Total PARCO Pakistan Ltd. to Gunvor Group last year, while Shell plc sold a majority stake in its Pakistan business to Wafi Energy LLC of Saudi Arabia in November 2023.
Higher taxes on the incomes of corporate and salaried persons is another area of concern for foreign investors who directly or indirectly employ around one million Pakistanis.
Sharif’s government has been charging businesses as much as 10 percent as super tax, 18 percent sales tax, and 29 percent as corporate tax this fiscal year, which ends on June 30.
“In comparison to the region, it is higher,” Aleem said about the corporate tax, which he said should be slashed to 25 percent through a one percent annual reduction. The 18 percent sales tax too should be reduced on the same pattern to 15 percent that will align the levy to what is being paid in the region, according to the OICCI CEO.
The 10 percent super tax should be abolished in the next three years so that the MNCs operating in Pakistan could be more competitive. The government should provide relief to the heavily-taxed salaried persons in FY26 budget to stop the so-called brain drain from the country.
Record number of skilled individuals and professionals deserted Pakistan for other countries and inflicted a huge loss on the South Asian nation in the form of human capital and resources, Bloomberg News reported in October.
The Pakistani government, which is charging salaried persons as much as 35 percent tax on incomes, has said it wants to provide some relief to them in the new budget, which will take effect from July.
“The salary taxes in Pakistan are very high. It should be reduced immediately because it is having an impact,” the OICCI chief said.
“It is very necessary that we get good quality people to remain in the country and work for the industry as well. And there should be an element of fairness in taxation.”
In recent years, PM Sharif’s government has been trying to attract foreign direct investment (FDI) into the country and has established a Special Investment Facilitation Council (SIFC), a civil-military forum, to rid foreigners of bureaucratic hurdles. However, the investment inflows have been dismal and could not increase beyond $3 billion a year.
“The government has to facilitate the existing foreign investors by not only streamlining the tax rates but also streamlining the systems, tax system, compliance system so that more and more foreign investment is attracted,” Aleem said.
The OICCI, he said, was the largest foreign investor in Pakistan and had brought about $20 billion fresh FDI besides reinvesting more than $23 billion in Pakistan over the last one decade.
“We are the largest taxpayers and I think there is need to rationalize the tax regime,” Aleem said, adding that the government could increase Pakistan’s 10.6 percent tax-to-GDP ratio to 14 percent by taxing services, agriculture and trades.
The OICCI chief said the government should decrease its expenses by “offloading” loss-making, state-owned enterprises, including the Pakistan International Airlines, as well as plug leakages in its revenue from tobacco industry.
The two MNCs, Pakistan Tobacco Company Ltd. of British American Tobacco Group and Phillip Morris International, were paying 99 percent taxes while their market share stays at 53 percent.
“That tells you that the other 47 percent or half of the industry is not paying its tax which is Rs300 billion,” he said. “There is need for more robust action from the authorities.”
Arab News contacted Qamar Sarwar Abbasi, spokesperson for the finance ministry, regarding the concerns raised by the OICCI official, but he did not offer any comment.
Roadside blast kills two tribal leaders, injures seven in southwestern Pakistan
- The incident took place some 35 kilometers from Balochistan’s provincial capital
- The IED attack took place the day Prime Minister Shehbaz Sharif was visiting Quetta
QUETTA: A blast triggered by an improvised explosive device (IED) killed two tribal leaders and injured seven others on Saturday in a remote mountainous town in Quetta district, located in Pakistan’s restive southwestern Balochistan province, a senior police official said.
The roadside blast took place in Mangla, an area of the Hanna Urrak valley located some 35 kilometers from the provincial capital of Quetta, when a convoy of tribal leaders was passing through the area.
“Sardar Abdul Salam Bazai and Sardar Nafay Bazai, accompanied by their companions, were heading toward a mining site when a powerful explosion hit their vehicle,” Naveed Khan, Station House Officer (SHO) in the area, told Arab News.
“Both the tribal elders were killed on the spot,” he continued. “Police have commenced an investigation into the IED blast, while the injured have been shifted to Quetta city.”
No group has claimed responsibility for the attack. However, Balochistan has witnessed a surge in separatist violence in recent months, including attacks on a passenger train and a school bus carrying children.
The latest attack took place on the day Prime Minister Shahbaz Sharif was in Quetta and addressed a grand jirga of influential Baloch leaders alongside senior military officials.
Pakistan has blamed the recent surge in militant violence in Balochistan on “Indian proxies,” calling groups like the Baloch Liberation Army “Fitna Al-Hind.”
New Delhi denies any involvement in backing Baloch ethnic separatist groups in Pakistan’s southwestern province, which shares borders with Iran and Afghanistan and has witnessed an insurgency for decades.
Speaking to Arab News, Dr. Arbab Kamran Kasi, head of the Trauma Center in Quetta, confirmed that those injured in Saturday’s attack were brought to the medical facility.
“Seven injured were brought to the center and are now in a stable condition,” he said.
Pakistan’s deputy PM discusses trans-Afghan railway with Uzbek foreign minister
- Envisioned in 2021, the project is expected to improve trade relations among all three countries
- Ishaq Dar discusses the modalities for early finalization of the project’s framework agreement
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar held a phone call with his Uzbek counterpart on Saturday to discuss steps toward advancing the Uzbekistan-Afghanistan-Pakistan (UAP) railway project, including the framework agreement and its signing mechanism, said the foreign office.
The UAP railway is a trilateral initiative aimed at enhancing regional connectivity by linking Central Asia with Pakistan’s southern ports of Gwadar and Karachi through Afghanistan.
Envisioned in 2021, the project is expected to improve trade access for landlocked countries and bolster economic integration in the region.
“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, held a telephone conversation today with Uzbekistan’s Foreign Minister, Saidov Bakhtiyor Odilovich @FM_Saidov,” the foreign office said in a social media post on X.
“They discussed the modalities for early finalization of the framework agreement for the Uzbekistan-Afghanistan-Pakistan (UAP) Railway Line Project, including details of its signing ceremony in consultation with leadership of Afghanistan,” it added.
The conversation came a day after Pakistan and Afghanistan agreed to upgrade diplomatic relations, with Islamabad announcing it would elevate its chargé d’affaires in Kabul to ambassadorial rank. Kabul said it would reciprocate the move.
Ties between the two countries have been tense in recent years, with Pakistan accusing Afghanistan’s Taliban administration of harboring militants involved in cross-border attacks, leading to a deportation drive against undocumented Afghan nationals.
The Taliban have denied facilitating any violence inside Pakistan and criticized the deportations.
Efforts to ease tensions between the two neighboring countries also gained momentum in recent months. During a trilateral meeting with Chinese officials in Beijing, Pakistan and Afghanistan announced plans to exchange ambassadors.
Afghan authorities have also said Foreign Minister Amir Khan Muttaqi is due to visit Pakistan “in the coming days.”
The UAP railway, first agreed in February 2021, envisions a 573-kilometer track linking Tashkent to Peshawar via Kabul, with an estimated cost of $4.8 billion.
The project faces significant logistical challenges, including security concerns in Afghanistan and the need to reconcile different railway gauges across the three countries.
However, Pakistan has already sent agricultural consignments to Uzbekistan last year.
Implementation of the UAP railway is expected to further deepen trade ties among the three nations.
Pakistan concludes pre-Hajj flight operation with over 115,000 pilgrims flown to Saudi Arabia
- The country launches special Hajj flight operation each year to assist pilgrims traveling to Saudi Arabia
- The operation involves multiple airlines and serves pilgrims under both government and private schemes
ISLAMABAD: Pakistan has successfully concluded its 33-day pre-Hajj flight operation, with more than 115,000 pilgrims transported to Saudi Arabia ahead of this year’s pilgrimage, the state media reported on Saturday.
The country arranges special Hajj flights annually to facilitate thousands of Pakistani Muslims traveling to the Kingdom for the pilgrimage. The operation involves both government and private schemes, as well as coordination with multiple airlines to ensure smooth transit.
The final flight, PK-759 from Karachi, carrying 307 pilgrims, landed in Jeddah at 6:55 PM local time, the state-owned Associated Press of Pakistan (APP) news agency said.
“Under the Government Hajj Scheme, as many as 88,260 intending pilgrims arrived in Saudi Arabia via 342 flights from various cities of Pakistan,” APP quoted the religious affairs ministry spokesperson, Muhammad Umar Butt, as saying.
“Similarly, over 27,000 [pilgrims] arrived in the holy land under the Private Hajj Scheme,” he added.
The Hajj flights were operated by a range of air carriers including Pakistan International Airlines, Saudi Airlines, SereneAir, Airblue and AirSial.
The spokesperson said to support the pilgrims during the five key days of Hajj, the ministry has deployed approximately 470 coordinators, with each assigned to a group of 188 to 200 pilgrims.
Each coordinator will remain with their designated group throughout the pilgrimage, helping its members during the journey from Mina to Arafat, Muzdalifah, Jamarat and back to Makkah.
This year, Hajj rituals will commence on June 4, with the Day of Arafah on June 5, and Eid Al-Adha observed on June 6 in Saudi Arabia.
Pakistan says 96% of children vaccinated in ongoing anti-polio drive
- Pakistan launched the campaign after 74 children were diagnosed with polio last year
- Balochistan offered swings and camel rides in Quetta to draw children for vaccination
KARACHI: Polio vaccinations continued across Pakistan for the sixth consecutive day on Saturday, with 96% of targeted children receiving doses during the first five days of the campaign, the country’s National Emergency Operations Center (NEOC) said in a statement.
Pakistan remains one of only two countries in the world where polio is still endemic, alongside neighboring Afghanistan.
Efforts to eliminate the disease have been hampered by parental refusals, widespread misinformation and repeated attacks on polio workers by militant groups.
In remote and volatile areas, vaccination teams often operate under police protection, though security personnel themselves have also been targeted during these campaigns.
“During the first five days, 96% of children across the country have been administered polio drops,” the NEOC said at the start of the campaign’s sixth day.
“The vaccination campaign is underway simultaneously in Pakistan and Afghanistan,” it continued, adding this was to curb cross-border transmission of the virus, especially in frontier regions where mobility between the two countries remains high.
According to Pakistani officials, the current vaccination drive aims to reach more than 45 million children nationwide. It is part of Pakistan’s intensified response following a sharp uptick in cases last year, when 74 children were diagnosed with the crippling virus.
Ten cases have been reported so far in 2025, prompting authorities to step up outreach and door-to-door campaigns.
According to the NEOC, provincial breakdowns so far show 97% coverage in Khyber Pakhtunkhwa, 96% in both Punjab and Balochistan, 94% in Sindh, 98% in Azad Jammu and Kashmir and 101% in Gilgit-Baltistan, where more children were reached than initially estimated.
Islamabad reported 97% coverage.
In Balochistan, the country’s most underdeveloped province that reported 27 cases last year, local authorities introduced recreational activities such as free swings and camel rides in Quetta to attract children and facilitate their vaccination.
The effort drew large crowds, allowing teams to immunize children while they took part in the festivities.
“This initiative is critically important as we enter the high-transmission season,” said Ziaur Rehman, spokesperson for Pakistan’s Polio Program. “It will play a key role in timely containment of the virus.”
He urged parents to ensure that all children under five receive polio drops to protect them from lifelong disability.
