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

A man walks out of the Federal Board of Revenue (FBR) office in Islamabad on July 4, 2024. Pakistan’s tax authorities said on July 4 it has blocked 210,000 sim cards of users who have not filed tax returns in a bid to widen the revenue bracket. (AFP)
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Updated 05 July 2024
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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.


TikTok says took down 20 million videos in Pakistan this year for violating guidelines

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TikTok says took down 20 million videos in Pakistan this year for violating guidelines

  • The video-sharing platform made the disclosure in its report for the first quarter of the year
  • The app has been banned in Pakistan several times in past over ‘immoral, obscene’ content

KARACHI: Video-sharing platform TikTok has taken down approximately 20 million videos in Pakistan for violating community guidelines, the company said on Monday, underscoring its resolve to effectively combat violations.
TikTok, a social media app that allows users to create and share short-form videos, made the disclosure in its report for the first quarter of the year. The platform has become extremely popular among younger generations, with over a billion active users worldwide.
However, this is not the first time that TikTok has removed videos from Pakistan. In July 2023, the video-sharing app had taken action against 11.7 million videos from Pakistan for the same reason.
“In Pakistan alone, the platform took action against 20,207,878 videos for breaching its community guidelines in the first quarter,” TikTok said in a statement on Monday, following the release of its Community Guidelines Enforcement Report 2024.
In the past, Pakistani authorities have banned the video-sharing service several times, with the first ban instituted in October 2020 over what was described as widespread complaints about allegedly “immoral, obscene, and vulgar” content on the app.
The service has been prohibited from operating in the country thrice more than 15 months since then. In November 2021, a Pakistani court finally reversed the ban after TikTok assured the government it would control the spread of objectionable content.
TikTok said the latest report highlighted the platform’s commitment to transparency, safety and inclusivity apart from how the company reflected its dedication to building trust and ensuring a safe platform for its global community.
The video platform removed 166,997,307 videos worldwide during the Jan-March period of 2024, of which 129,335,793 were identified through an automated detection technology, whereas 6,042,287 videos were reinstated, according to the report. The platform “removed and filtered” 976,479,946 comments also, using the safety tools.
“TikTok aggressively pursued spam accounts and related content, implementing robust measures to prevent the proliferation of automated spam accounts,” the company said, highlighting that 93.9 percent of videos violating guidelines were removed within 24 hours of posting with the removal rate resting at 99.8 percent globally.
TikTok also deleted 21,639,414 accounts suspected of belonging to children under the age of 13, the company said.


Pakistan to conduct fitness tests of players after humiliating T20 World Cup exit

Updated 27 min 30 sec ago
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Pakistan to conduct fitness tests of players after humiliating T20 World Cup exit

  • The 2009 champions suffered a shock defeat to first-timers USA before losing to arch-rivals India in last month’s World Cup
  • The national team was dogged by allegations of internal discord and that some players were in squad because of favoritism

LAHORE: The Pakistan Cricket Board (PCB) will be conducting fitness tests for the first time ever in 104 districts across the 16 regions in the country, the PCB said on Monday, weeks after the national side’s humiliating exit from the Twenty20 World Cup.
The 2009 champions crashed out of the World Cup on June 15 after the USA-Ireland match was abandoned because of rain. It was the earliest-ever elimination from a T20 World Cup for Pakistan. They suffered a shock defeat to first-timers USA before losing to arch-rivals India. Pakistan’s only win was against Canada.
Throughout the tournament, the team was dogged by allegations of internal discord and that some players were in the squad because of favoritism and not merit. A week later, PCB chief Mohsin Naqvi said players would now be selected only on the basis of fitness and performance in domestic cricket.
“Over 2,300 players are appearing in the ongoing countrywide fitness tests. These tests are being conducted as per the Chairman PCB Mohsin Naqvi’s vision for incorporating a culture of fitness at grassroots level,” the PCB said in a statement.
In order to assemble squads for the Regional Inter District Senior Tournament 2024-25, 23 players in each district have been shortlisted after the Challenge Cup that took place in April and May. These 23 players in each district are undergoing strenuous fitness and strength testing under the respective district and regional coaches and trainers, according to the PCB.
The players, after passing the fitness test, will be summoned for a 45-day camp in their respective districts leading to the Inter District Senior Tournament in September.
“The PCB has decided to conduct fitness tests at the district level instead of the regional level starting from this domestic season,” said Abdullah Khurram Niazi, a PCB director for domestic cricket operations.
“This initiative will surely push the players to prioritize their fitness right from the start and the culture will then expand to other domestic competitions. With more fitter players participating in the tournaments, the quality of cricket will also increase.”


Kenya court rules police killing of Pakistani journalist unlawful

Updated 08 July 2024
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Kenya court rules police killing of Pakistani journalist unlawful

  • Arshad Sharif was shot in the head when Kenyan police opened fire on his car in Oct 2022
  • His widow and two journalist groups in Kenya filed a complaint last year against top officials

NAIROBI: A Kenyan court on Monday found police acted unlawfully over the killing of a Pakistani journalist in 2022 following a complaint by his widow, her lawyer and local media said.
Arshad Sharif, a strident critic of Pakistan’s powerful military establishment and supporter of former premier Imran Khan, was shot in the head when Kenyan police opened fire on his car in October 2022.
His widow Javeria Siddique and two journalist groups in Kenya filed a complaint last year against top police and legal officials over the “arbitrary and unlawful killing” of Sharif and the respondents’ “consequent failure to investigate.”
On Monday, the High Court in Kajiado, a town south of Nairobi, rejected a police claim that the killing was a case of mistaken identity, and that officers’ believed they were firing on a stolen vehicle involved in an abduction.
Judge Stella Mutuku ruled that Sharif’s murder was unconstitutional and that his rights to life and protection were violated, Kenyan media said.
“I find that the respondents, jointly and severally through their actions violated the rights of the petitioners,” Mutuku said, according to The Nation.
Siddique’s lawyer Ochiel Dudley confirmed the court ruling to AFP, describing it as a “great precedent for police accountability.”
He said the ruling found “Kenya violated Arshad Sharif’s right to life, dignity, and freedom from torture, cruel, and degrading treatment.”
He said the court ordered the government to pay 10 million Kenyan shillings ($78,000) in compensation.
The Kenyan court said the Office of the Director of Public Prosecutions and Independent Policing Oversight Authority had violated Sharif’s rights by not prosecuting the two officers involved, Dudley added.
It ordered the two institutions to conclude their investigations and charge the two police officers, he said.
Sharif fled Pakistan in August 2022, days after interviewing a senior opposition politician who said junior officers in Pakistan’s military should disobey orders that went against “the will of the majority.”
The country has been ruled by the military for several decades of its 75-year history and criticism of the security establishment has long been seen as a red line.


Pakistan eyes plan to connect to Uzbekistan through rail link

Updated 08 July 2024
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Pakistan eyes plan to connect to Uzbekistan through rail link

  • If built, the railway line will expand multi-billion-dollar China-Pakistan Economic Corridor into Central Asia
  • Pakistan says CPEC open to all regional stakeholders, among whom Central Asia is important in geopolitical terms

ISLAMABAD: A provincial governor has said Pakistan was looking into a plan to connect the city of Rawalpindi with Uzbekistan through a railway link, potentially expanding the multi-billion-dollar China-Pakistan Economic Corridor (CPEC) into Central Asia, state-run APP reported on Monday. 

Pakistan wants to enhance its role as a pivotal trade and transit hub connecting the landlocked Central Asian countries with the world, leveraging its strategic geographical position. In recent weeks, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states. 

Last month, the Pakistani Ministry of Commerce and Trade Development Authority organized the Pakistan-Uzbekistan Logistics Forum in Tashkent, where officials agreed to set up a joint chamber of commerce and enhance direct flights. In May, Uzbekistan Foreign Minister Bakhtiyor Saidov visited Pakistan for talks on bilateral trade and regional connectivity. The Pakistani PM also visited Tajikistan and Kazakhstan last week. 

CPEC, under which Beijing has pledged more than $60 billion for infrastructure, energy and other projects in Pakistan, is part of the Belt and Road Initiative (BRI), China’s modern-day revival of the ancient Silk Road which aims to connect Asia, Europe and Africa through more than 60 countries.

“The proposed expansion aims to lay tracks from Rawalpindi to Kohat [Pakistan] and from Kohat to Parachinar [Pakistan], ultimately connecting to Uzbekistan,” the Associated Press of Pakistan reported on Monday, quoting Faisal Karim Kundi, the governor of the northwestern Khyber Pakhtunkhwa province.

“The governor expressed optimism that this initiative would significantly benefit both regions, enhancing economic ties between Pakistan and Uzbekistan.”

Last year, Chinese President Xi Jinping unveiled a grand plan for Central Asia’s development, from building infrastructure to boosting trade, taking on a new leadership role in a region that has traditionally been a Russian sphere of influence. 

The five former Soviet republics, with a network of trade corridors, offer China alternative routes to transport fuel, food and other commodities in the event of disruptions elsewhere.

Pakistan says the CPEC project is open to all interested regional stakeholders, among whom Central Asia is one of the most important in geopolitical terms. 

Located in a landlocked but resource-rich region, Central Asian countries need better access to regional markets including Pakistan, China, India, and the countries of West Asia. Meanwhile, Pakistan and China have huge energy demands that can be satisfied by growing trade with Central Asia. CPEC also presents a strategic opportunity for Central Asian states to transport their goods more easily in regional and global markets.


Pakistan leader of the opposition says police raided home to arrest him in ‘terrorism’ case

Updated 08 July 2024
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Pakistan leader of the opposition says police raided home to arrest him in ‘terrorism’ case

  • Case relates to May 9 riots in which supporters of Khan ransacked government and army buildings 
  • Many PTI leaders behind bars or on the run from criminal and terrorism charges they say are politically motivated

ISLAMABAD: Omar Ayub Khan, Pakistan’s leader of the opposition in the National Assembly and general secretary of the Pakistan Tehreek-e-Insaf (PTI), has said an anti-terrorism court (ATC) had issued arrest warrants against him after which police had raided his home in Islamabad on Sunday amid what the party says is a widening crackdown against its leaders.

Top leaders of jailed former Prime Minister Imran Khan’s PTI are facing multiple legal cases they say are part of a state campaign of intimidation and harassment against the popular party. Khan has himself been in prison since last August and numerous PTI leaders are behind bars or on the run from criminal and terrorism charges that they say are politically motivated. Many of the charges were filed after Khan’s first arrest in May last year led to riots in which his supporters attacked and damaged government and military buildings. The ATC case against Omat also relates to the May 9 riots. The government says it is not persecuting the PTI. 

On Saturday, the district administration of Islamabad revoked permission for the PTI to hold a rally while Amnesty International last week expressed concern over what it called the ‘forced disappearances’ of three family members of PTI members. The party has also said a senior member of its social media team had been “abducted” ahead of the now postponed Islamabad rally. 

The PTI and Khan have also rejected the results of Feb. 8 general elections over rigging after which Prime Minister Shehbaz Sharif formed a fragile coalition at the center. 

“Arrest warrants issued for me for ATC Sargodha. Mianwali police and Islamabad police teams went to my Islamabad house to arrest me a few minutes ago,” Omar said on X, saying the government and intelligence agencies “must be very desperate to arrest the Leader of the Opposition in the National Assembly.”

“They will prove beyond doubt that there is no rule of law in Pakistan,” Ayub said, adding that the party would continue its “lawful struggle.”

PTI party spokesperson Raoof Hasan told Pakistan’s Dawn newspaper that Omar was not at home when police raided and he was now in a “safe place. He said police required prior permission from the National Assembly speaker before conducting a raid to arrest a lawmaker, which had not been taken.