Pakistan offers Karachi, Gwadar seaports to Tajikistan for transit trade to Middle East and beyond

Tajikistan Prime Minister Qohir Rasulzada (center, left) gestures during his meeting with Pakistan Prime Minister Shehbaz Sharif in Dushanbe on July 3, 2024. (Photo courtesy: PMO)
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Updated 04 July 2024
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Pakistan offers Karachi, Gwadar seaports to Tajikistan for transit trade to Middle East and beyond

  • PM Sharif highlights five pillared “Vision Central Asia” policy in meeting with Tajikistan leaders 
  • Sharif now on visit to Kazakhstan to attend twin Shanghai Cooperation Organization summits 

ISLAMABAD: Pakistan has offered Tajikistan use of its ports in the southern cities of Karachi and Gwadar for transit trade, the foreign office said on Tuesday, as the South Asian state seeks to enhance its role as a crucial transit hub to connect the landlocked Central Asian economies with the rest of the world.
The offer was made by Prime Minister Shehbaz Sharif during a two-day visit to Tajikistan which concluded today, Wednesday, as the premier traveled onwards to Kazakhstan to attend the Shanghai Cooperation Organization (SCO) summit. 
Pakistan is currently pursuing a “Vision Central Asia” policy based on improving bilateral cooperation in the areas of politics, trade, investment, energy and connectivity, security and people-to-people contact.
“The PM informed the Tajik President about the operationalization of Gwadar seaport and offered Tajikistan the opportunity to avail the facilities of Pakistan seaports,” the Foreign Office said on Tuesday in a joint statement released by both countries. 
“It was highlighted that the Pakistani seaports offer the most efficient, shortest and economic route for the Central Asian countries including Tajikistan to the markets in the Middle East and beyond.”
Sharif also invited Tajikistan to use the Karachi port for transit trade.
The two sides also reaffirmed their commitment to the early completion of the flagship CASA-1000, a power line between Central Asia and South Asia, underlining the importance of reliable electricity supply for sustainable economic growth. The project’s completion would open “new avenues for future energy corridors” and lead to prosperity in the entire region, the statement said. The CASA-1000 project aims to allow Tajikistan and Kyrgyzstan, former Soviet republics with an extensive network of hydroelectric power plants, to sell excess energy to Pakistan and Afghanistan in the summer months.
Sharif suggested that Pakistan could host a regional summit on trade corridors to Central Asian countries and promote commerce and regional connectivity through the construction of rail tracks and roads.
He also welcomed the launch of direct flight operations between Pakistan and Tajikistan after a private airline based in Dushanbe took the initiative last month, emphasizing the importance of increasing the number of such flights, the Foreign Office said.
“PM Sharif also invited his excellency, the Tajikistan President to visit Pakistan at a convenient time,” it said. 




Chairman of Tajikistan’s Low Chamber of the Parliament, Muhammadtoir Zokirzoda, gestures during his meeting with Pakistan Prime Minister Shehbaz Sharif in Dushanbe on July 3, 2024. (Photo courtesy: PMO)

Sharif also appreciated the Tajikistan leadership’s role in water diplomacy and congratulated President Emomali Rahmon for successfully organizing international events such as the UN 2023 Water Conference and the third Dushanbe Water Action Decade Conference, the Foreign Office said. 
Sharif expressed support for the nomination of Tajikistan as a non-permanent member of the UN Security Council for 2028-2029, appreciating the Central Asian country’s valuable support for Pakistan’s candidature to the same body last month.
The statement said the premier also voiced support for Tajikistan’s initiative to establish the SCO Anti-Drug Center in Dushanbe and commended Tajikistan’s initiative to declare 2025 as the international year of glacier conservation and the establishment of the international foundation for the protection of glaciers.
The prime minister later flew to Astana, the capital of Kazakhstan, where he was received by his counterpart, Alikhan Smailov, at the Nur Sultan Nazarbayev International Airport.
Sharif will attend the SCO Council of Heads of State and SCO Plus summits from July 3-4. He will also hold bilateral meetings on the sidelines of the two conferences.


Pakistan says digitization of tax system top priority amid efforts to widen revenue base

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Pakistan says digitization of tax system top priority amid efforts to widen revenue base

  • Pakistan’s tax authority recently blocked 210,000 SIM cards of users who have not filed tax returns
  • In May, Pakistan signed an agreement with McKinsey and Company for digitalization of its tax system

ISLAMABAD: Prime Minister Shehbaz Sharif said on Friday the digitization of the country’s tax system was a top government priority to prevent tax evasion worth billions of rupee and meet a challenging tax revenue target of 13 trillion rupees ($46.66 billion) for the new fiscal year that started July 1, a near 40 percent jump from last year. 
The South Asian country has set challenging revenue targets in its annual budget to help it win approval from the IMF for a loan to stave off another economic meltdown, even as domestic anger rises at new taxation measures. 
On Thursday, Pakistan’s tax authority said it has blocked 210,000 SIM cards of users who have not filed tax returns in a bid to widen the revenue bracket. In May, Pakistan signed an agreement with consulting giant McKinsey and Company for the digitalization of its tax system.
Sharif chaired a meeting on Friday to review the reforms process of the Federal Board of Revenue (FBR), instructing it to bring taxable non-filers into the tax net.
“The meeting was told that during the FBR digitization [process], 4.5 million taxable individuals have been identified who were not part of the tax net,” state-run APP reported, adding that over 300,000 people had fixed tax returns within the last few weeks due to new government measures.
“Refunds of 4,000 companies have been stopped during the last two weeks, following the detection of under-invoicing and forged sales tax refunds,” APP said. “The prime minister said that the tax evaders as well as the officers and staffers facilitating them would be punished and vowed not to spare those plundering the public kitty.”
The premier also sought a report on the magnitude of tax evasion and the measures for its prevention.
“He vowed to introduce a taxation system of international standard in the country and called for engaging well reputed professionals and experts for formulation of tax policy.”
Among reforms the IMF is pushing for a new bailout package, like the last two loans, are strengthening public finances including through gradual fiscal consolidation, broadening the existing tax base, improving tax administration, and debt sustainability.
Pakistan is in talks with the lender for a loan of $6 billion to $8 billion, as it seeks to avert a default for an economy growing at the slowest pace in the region.
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 major trade bodies have rejected the budget and tax measures, calling them highly inflationary.


Ex-PM Khan’s party accuses state agencies of ‘abducting’ media team member ahead of Islamabad rally

Updated 11 min 15 sec ago
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Ex-PM Khan’s party accuses state agencies of ‘abducting’ media team member ahead of Islamabad rally

  • Omar Ayub says the state is focusing more on suppressing dissent than dealing with militant violence
  • Amnesty International has also said PTI workers and their family have been ‘forcibly disappeared since June’

ISLAMABAD: Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party criticized the state on Friday for “abducting” a senior member of its media team ahead of a planned public rally on the outskirts of Islamabad, accusing it of focusing more on quelling dissenting voices than on dealing with the problem of militant violence in the country.
PTI leaders have frequently complained of being targeted by intelligence agencies since the fall of its administration in a parliamentary no-confidence vote against Khan.
However, it began to face a major crackdown last year in May after violent protests followed the former premier’s brief detention on corruption charges, with people carrying PTI flags vandalizing government buildings and military properties in different parts of the country.
In the most recent development, the party said one of the members of its media department, Rizwan Ahmad, had been illegally taken away by the state agencies.
“Rizwan Ahmad, Senior member PTI Media Department has been abducted by agencies a short while ago,” Omar Ayub, a top PTI leader, said in social media post. “This action by the agencies is just to silence his voice.”
“The agencies are not doing their job of countering terrorism and the latest assassination of Senator Hidayat Ullah Khan is an example, but they are busy silencing the voices of PTI that dare to speak the truth,” he added, referring to killing of a Pakistani lawmaker in the northwestern Bajaur district in a blast that killed four others.
PTI has complained of Ahmad’s disappearance only a few days after its announcement to hold a protest demonstration in Islamabad on June 6 against new taxes imposed in the recent federal budget amid rising cost of living in Pakistan.
Only a day earlier, Amnesty International condemned such incidents against PTI workers and their family members, pointing out that they had been “forcibly disappeared since June 2024.”
“Two brothers of PTI member Azhar Mashwani, Professors Mazhar-ul-Hassan and Zahoor-ul-Hassan, and Shahbaz Gill’s brother, Ghulam Shabbir, were disappeared on 6 June and 9 June respectively,” it said. “The whereabouts of all three individuals remain unknown.”


UAE team certifies aviation security at Islamabad, Karachi airports meets “international standards”

Updated 35 min 26 sec ago
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UAE team certifies aviation security at Islamabad, Karachi airports meets “international standards”

  • Authorities in Pakistan say the assessment was part of effort made by the two states to enhance aviation security
  • The official UAE delegation of experts stayed in the country for about a week to evaluate the two aviation facilities

ISLAMABAD: The United Arab Emirates General Civil Aviation Authority (UAE-GCAA) team has testified aviation security at Pakistan’s northern and southeastern airports of Islamabad and Karachi meets international standards, an official statement said on Friday, after completing its inspection aimed at improving security protocols in the country.

Pakistan’s aviation protocols faced significant scrutiny in 2020 following a scandal where approximately 262 out of 860 active pilots were said to have obtained fake licenses, leading to the grounding of around 150 pilots from Pakistan International Airlines (PIA) and other carriers.

This revelation came in the wake of the tragic crash of PIA Flight 8303 in Karachi, resulting in the suspension of PIA’s operations in the EU and other regions and prompting calls for regulatory reforms to improve safety standards and transparency.

The two-member official delegation from the UAE, led by a senior GCAA director, Abdullah Al Kaabi, arrived in Pakistan last month for a week-long assessment of the two aviation facilities in the country. They visited the federal capital before continuing their visit to the Jinnah International Airport in Karachi.

“Security protocols are in line with international standards and prevailing best practices,” the Pakistan Civil Aviation Authority (PCAA) quoted Al Kaabi as saying. “The visit of the UAE-GCAA team has been completed.”

The statement said the two-member delegation inspected various areas at the airports including passenger and baggage screening apart from the cargo and catering facilities. It added that they also reviewed direct flights coming from the UAE, ground handling and cargo agents of the flight.

The team also examined security access to airports and aircraft security checks. Its members expressed satisfaction with the security protocols and applauded the workings of Airport Security Force, cargo companies and other stakeholders.

The PCAA said the UAE-GCAA visit was the first of its kind, describing it as a continuation of the assessments conducted by the United Kingdom Department of Transport this year.

Pakistan and the UAE enjoy decades-old fraternal relations. Several airlines operate multiple flights per day connecting Pakistan’s major cities such as Karachi, Lahore, Islamabad and Peshawar to the UAE’s Abu Dhabi, Sharjah, and Dubai.


Pakistan’s DealCart raises $3 mln in funding round led by prominent Middle East investment fund

Updated 05 July 2024
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Pakistan’s DealCart raises $3 mln in funding round led by prominent Middle East investment fund

  • DealCart aims to provide affordable daily essential products to underserved communities in Pakistan through a gamified and interactive platform
  • The Pakistani startup helps unlock more value by sourcing products directly from manufacturers and collaborating with locally manufactured brands

ISLAMABAD: DealCart, a Pakistani e-commerce startup focused on transforming the way consumers access essential goods, has successfully raised $3 million in a funding round led by leading Middle East investment fund, Shorooq Partners, the startup said on Friday.
DealCart aims to provide affordable daily essential products to underserved communities in Pakistan through a gamified and interactive platform. The startup helps unlock more value by enabling users to “buy together and save together,” sourcing products directly from manufacturers and collaborating with locally manufactured brands.
Founded in 2017, Shorooq Partners is a leading alternative investment manager across the Middle East and North Africa region, with its venture capital and private credit funds investing in innovative technology companies. The firm has built deep sectoral expertise in fintech, platforms, software, gaming, and Web3.0, and has backed market-leading disruptors.
The funding round also saw participation from Sturgeon Capital, 500 Global, Evolution VC, Rayn Capital and Khyber Venture Partners, and the capital infusion will help DealCart expand its reach and provide affordable essential goods to low- and middle-income consumers across Pakistan, according to the e-commerce startup.
“This investment from Shorooq Partners is a testament to the potential of DealCart to revolutionize the way Pakistani consumers shop for essentials,” DealCart founders Haider Raza and Ammar Naveed said in a statement. “Our goal is to make everyday necessities more affordable and accessible, and this funding will help us get closer to that vision.”
Pakistan’s has for months been facing high inflation, which soared past 30 percent in 2023, putting significant financial strain on a majority of households.
DealCart aims to ease this financial burden by sourcing products directly from manufacturers and targets consumers who spend about 50 to 60 percent of their income on groceries and essentials, helping them save more and invest in a better future. The company also targets a digitally sophisticated younger population that prefers online retail spaces, according to the statement.
Despite rapid e-commerce growth in neighboring India, Pakistan’s e-commerce sector has lagged and to boost digital transactions and stimulate e-commerce, the State Bank of Pakistan introduced RAAST, an online instant payment platform, that has positioned DealCart to address market gaps.
“DealCart has identified a market gap and is developing a distinctive approach to social commerce and providing affordable essentials to most consumers, an approach that aligns with our mission to support market-leading disruptors,” said Omer Zabit, principal at Shorooq Partners.
“We believe this investment will enable DealCart to scale rapidly and significantly impact the lives of millions in Pakistan.”


Pakistan congratulates Labour Party’s Keir Starmer on UK election win

Updated 05 July 2024
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Pakistan congratulates Labour Party’s Keir Starmer on UK election win

  • Jaded electorate handed Labour landslide victory, punishing Conservatives for 14 years of economic and political upheaval
  • Conservatives set to have seats in House of Commons cut down to around 130, worst in party’s two-century history

ISLAMABAD: Deputy Pakistani Prime Minister Ishaq Dar on Friday congratulated Labour Party leader Keir Starmer for his historic victory in British elections, emphasizing the “deep-rooted and broad-based” ties between the two nations. 
Britain’s Labour Party swept to power after more than a decade in opposition, as a jaded electorate handed the party a landslide victory, punishing the governing Conservatives after 14 years of economic and political upheaval. With almost all the results in, Labour had won 410 seats in the 650-seat House of Commons and the Conservatives 118.
Starmer will officially become prime minister later in the day, leading his party back to government less than five years after it suffered its worst defeat in almost a century. But he won’t become prime minister until a carefully choreographed ceremony during which King Charles III will formally ask him to form a new government.
“I extend my heartfelt felicitations to Keir Starmer, Leader of The Labour Party on the historic victory in the parliamentary election in the United Kingdom,” the Associated Press of Pakistan (APP) quoted Dar as saying in a post on X. “Pakistan and UK share deep-rooted and broad-based ties founded in shared history and people-to-people contacts.”
The deputy PM expressed confidence in enhancing and strengthening bilateral relations between both countries under Starmer’s leadership, adding that the two countries would work together for global peace, prosperity and development.
As votes came in, British PM Rishi Sunak left the prime minister’s residence and headed to Buckingham Palace to offer his resignation to King Charles III. He said earlier he took responsibility for his party’s loss and that he had called Starmer to congratulate him.
After more than a decade in power under five different prime ministers, Sunak ‘s Conservatives are set to have their seats in the 650-seat House of Commons cut down to around 130. That would be the Tories’ worst result in the party’s two-century history and one that would leave the party in disarray.
Britain has experienced a run of turbulent years — some of it of the Conservatives’ own making and some of it not — that has left many voters pessimistic about their country’s future. The UK’s exit from the European Union followed by the COVID-19 pandemic and Russia’s invasion of Ukraine battered the economy, while lockdown-breaching parties held by then-Prime Minister Boris Johnson and his staff caused widespread resentment and anger.
With inputs from AP