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.
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
Pakistan parliament elects ex-PM Khan aide as head of accountability body amid political tensions
- Pakistan parliament elects ex-PM Khan aide as head of accountability body amid political tensions
- Member of the government’s team criticizes Khan’s party for calling off the parleys, says differences can only be resolved through talks
ISLAMABAD: Pakistan’s National Assembly, the lower house of parliament, on Friday elected a member of former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party as the head of its accountability committee, amid prevailing political tensions in the South Asian country.
The Public Accounts Committee is among the most powerful parliamentary bodies in Pakistan and holds the authority to summon virtually any individual or record from government departments. Its main objective is to uphold transparency and accountability across all public and constitutional institutions, promoting financial integrity and good governance.
The development came a day after ex-PM Khan called off negotiations with the government over its failure to establish judicial commissions to investigate violence at anti-government protests organized by his party. The talks, which began last month after Khan threatened a civil-disobedience movement, aimed to ease political tensions, but have not yielded desired results after three rounds.
Khan’s ouster in a parliamentary no-trust vote in 2022 has plunged Pakistan into a political crisis, particularly since he was jailed in August 2023 on corruption and other charges. His PTI party has regularly held protests to demand his release, with many of the demonstrations turning violent. At the last meeting on Jan. 16, the PTI had given the government seven days to announce the truth commissions, a deadline that expired on Thursday.
But despite the government-opposition stalemate, Junaid Akbar Khan, a lawmaker from Khan’s PTI party, was elected on Friday unopposed as the head of the National Assembly’s Public Accounts Committee (PAC), according to a statement issued by the National Assembly Secretariat. The post of the PAC chairman had been vacant since the general election in Feb. last year.
“I will move forward taking all the [committee] members with me,” Junaid was quoted as saying by the National Assembly Secretariat, as committee members assured him of their support.
The announcement of Junaid’s election as PAC chairman came hours after the PTI refused to attend the next round of talks with the government on Jan. 28
The PTI’s demands to the government revolve around the release of all political prisoners including Khan, and the formation of two judicial commissions to probe into violent protest rallies, including one on May 9, 2023, when PTI supporters rampaged through military offices and installations, and a second one on Nov. 26, 2024 to demand Khan’s release, in which the government says four troops were killed.
Speaking to reporters in Islamabad, Senator Irfan Siddiqui, a member of the government’s negotiations team, criticized the PTI for calling off the parleys.
“Come out of this confusion, and come sit with us on the 28th,” he said in televised comments, referring to Khan’s party. “Whether the commission will be formed or not, it will be decided there.”
Pakistan stick with spin as they chase West Indies series sweep
- Pakistan completed a 127-run win inside three days in the opening Test, with spinners Sajid Khan taking nine wickets
- West Indies spinner Jomel Warrican also grabbed a career-best 7-32 as 34 of the 40 wickets in the match went to spinners
MULTAN: Head coach Aaqib Javed brushed aside criticism of Pakistan’s reliance on spin bowling as they seek a clean sweep against the West Indies in the second Test starting on Saturday.
Pakistan completed a 127-run win inside three days in the opening Test, with spinners Sajid Khan taking nine wickets, Noman Ali six and Abrar Ahmed five for their third straight win at home.
West Indies left-arm spinner Jomel Warrican also grabbed a career-best 7-32 as 34 of the 40 wickets in the match went to spinners.
The second Test will also be played on a dry and grassless pitch in the central city of Multan.
Former Pakistan players and analysts hit out at the spin-heavy strategy, saying the team would struggle on away tours where pitches may not be as conducive to spin.
Aaqib, a fast bowler from an era dominated by the great pacemen Wasim Akram and Waqar Younis, insisted the spin assault would continue.
“We found that the West Indies have a weakness in dealing with the spin bowling, so we exploited that and will do that again,” Aaqib told a news conference on Friday.
West Indies skipper Kraigg Brathwaite had no qualms about Pakistan’s tactics.
“Pakistan are playing at home and if they believe spinning pitches are their strength then that’s fine and that’s how cricket is played,” Brathwaite said.
“I have played on pitches which took turn from day one but not like this, which had cracks from day one,” he said.
West Indies will be without injured pace bowler Jayden Seales, who took three wickets in the first match and will be replaced by the experienced Kemar Roach.
Pakistan are unlikely to make any changes.
Brathwaite said his batters need more faith after the first Test, in which his team managed just 137 and 123 in their two innings, with Alick Athanaze the only one to reach a half century.
“It was a difficult pitch to bat in the last game,” Brathwaite said.
“I would say you need to believe in your plan from ball one and not think of the third or fourth ball.”
Pakistan are eighth and the West Indies ninth and last on the World Test Championship table.
Another victory in Multan could see the hosts rise to seventh.
Pakistan were forced to make radical changes last year after losing the first of three Tests against England, their 11th straight home Test without a win.
The Aaqib-led selection panel dropped out-of-form batter Babar Azam and rested pace spearheads Shaheen Shah Afridi and Naseem Shah.
The tactics worked on the spin-friendly pitches in Rawalpindi and Pakistan went on to win the series 2-1.
“If we had taken these decisions earlier we would have been in the race for World Test Championship final,” Aaqib said.
Two militants lay down arms, accuse foreign agencies of interference in Pakistan’s Balochistan
- Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has for decades faced a low-level insurgency by Baloch separatist groups
- Pakistani officials have in the past blamed hostile agencies for fanning insurgency in Balochistan to disrupt China-led development projects in the region
ISLAMABAD: Two Baloch separatist militants on Friday announced their surrender to authorities in Pakistan’s restive Balochistan province, accusing foreign intelligence agencies of interfering in the region to “destabilize” the South Asian country.
Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has for decades faced a low-level insurgency by Baloch separatist groups, who accuse Islamabad of exploiting the province’s natural resources, such as gold and copper, while neglecting the local population.
Successive Pakistani governments have denied the allegations, saying they prioritized Balochistan’s development through investments in health, education and infrastructure projects, accusing hostile intelligence agencies of inciting the Baloch youth to violence in the region.
On Friday, top counter-terrorism officials in Balochistan held a press conference alongside two Baloch separatist militants, who announced laying down arms and quitting their fight against the Pakistani state. It was unclear under what circumstances the militants addressed the press conference and whether they spoke freely or under pressure from the authorities.
Najeeb Ullah, a former commander of the Baloch Republican Army (BRA) who hails from Balochistan’s Makran division, said he had fought for years against Pakistan, but it was a meeting with “intelligence officials of a neighboring country” that made him realize that they were only being used to “destabilize” Pakistan and not for Balochistan’s separation.
“I met intelligence officials of a neighboring country and I presented before them several suggestions to further our struggle [for Balochistan’s separation],” he told reporters in Quetta.
“But they rebuked me and said, ‘We have nothing to do with your freedom. We will support you [only] to destabilize Pakistan’.”
Ullah did not name any country, neither divulge more details about the meeting, but Pakistan has in the past accused India, Iran and Afghanistan of sheltering militants that operate in the region, an allegation denied by all three.
He criticized leaders of Baloch separatist outfits for living a “life of luxury” abroad and inciting Baloch youth to violence in the impoverished region.
He said he looked into Balochistan’s affairs more deeply after his meeting with foreign intelligence officials, which eventually led him to quit militancy.
“I reached this conclusion that all of our [separatists] organizations are playing in the hands of foreign countries who are using us to achieve their ulterior motives,” Ullah said.
Abdul Rashid, another militant who remained associated with various separatist outfits in Balochistan for 15 years, also announced his surrender at the press conference, speaking to reporters in the Balochi language as he could not speak Urdu.
Pakistani officials have in the past accused foreign agencies of fanning militancy in Balochistan to disrupt China-led development projects in the region.
China has pledged over $65 billion in infrastructure, energy and other projects in Pakistan under the China-Pakistan Economic Corridor (CPEC), part of President Xi Jinping’s Belt and Road Initiative.
Pakistan this month inaugurated a Chinese-funded airport in Balochistan’s Gwadar, while Beijing is also helping Pakistan develop a deep-water port close to the new airport, a joint venture between Pakistan, Oman and China that is close to completion.
Aitzaz Goraya, the deputy inspector-general of the Balochistan Counter-Terrorism Department (CTD), said the debriefing of the two former militants had made them aware of more things that could help their investigations.
“The role of hostile intelligence agencies, which we, the government, its institutions and the CTD, knew to quite an extent, some more names and people have been brought before us, who are involved in it and how they are being funded,” he said.
“This has given us more clarity in our investigations.”
Pakistani, Omani navies hold joint exercise to enhance interoperability
- Pakistan, Oman are maritime neighbors and hold frequent port calls, joint exercises and coordinated patrols
- During visit to Port Sultan Qaboos, Pakistan Navy officials discussed maritime cooperation with Omani counterparts
ISLAMABAD: Pakistani and Omani navies have conducted a joint exercise to enhance interoperability between the two forces, Pakistan Navy said on Friday, following a port call in Muscat by two Pakistan Navy ships.
Pakistan Navy’s Tabuk and Rah Naward ships visited Port Sultan Qaboos, where they were warmly received by Omani authorities, according to the Directorate General Public Relations (DGPR) of Pakistan Navy.
During the visit, Pakistani mission commander and commanding officers held meetings with Royal Navy of Oman’s director-general operations and plans, Maritime Security Center commander and commandant of the Said bin Sultan naval base.
“During these interactions, matters of mutual interest, Navy-to-Navy engagements, and cooperation in maritime security were discussed,” the DGPR said in a statement.
“Following the port call, PNS Tabuk conducted a passage exercise with a Royal Oman Navy ship Al Shamikh. The exercise at sea aimed to enhance interoperability between the two navies and promote shared learning through coordinated activities.”
Pakistan Navy ships were also opened for visitors, including ambassadors, diplomats and military attaches of various countries as well as a large number of Pakistani community members.
Pakistan and Oman are maritime neighbors and frequent visits of dignitaries, port calls by ships, joint exercises and coordinated patrols have been a regular feature of bilateral ties between the two countries.
“The visit of PNS Tabuk and Rah Naward will further strengthen bilateral relations between the two navies,” the DGPR added.
Pakistani journalism body criticizes new law regulating social media
- The new regulations will set up a social media regulatory authority that will have its own investigation agency and tribunals
- These tribunals will be able to try and punish offenders with prison sentences of up to three years and fines of Rs2 million
ISLAMABAD: A new law in Pakistan aimed at regulating social media content has angered journalism groups and rights activists, which say it is aimed at curbing press freedom and called on Friday for nationwide protests next week.
Parliament introduced and passed the amendments to the Pakistan Electronic Crimes Act on Thursday.
The new regulations will set up a social media regulatory authority that will have its own investigation agency and tribunals, according to a draft on the parliament’s website. Such tribunals will be able to try and punish offenders with prison sentences of up to three years and fines of two million rupees ($7,200) for dissemination of “false or fake” information.
Law Minister Azam Nazeer Tarar told parliament on Thursday the law was introduced to block fake and false news on social media, which he said had no specific regulations to govern it.
The president of Pakistan’s Federal Union of Journalists (PFUJ), Afzal Butt, said the government had not consulted any journalistic bodies before introducing the law, adding he believed it was intended to gag freedom of speech and intimidate journalists and their media outlets.
“We reject this unilateral decision by the government to set up any such tribunals,” Butt told Reuters. “We also are in favor of regulations, but, you know, a law enforcement agency or a police officer can’t decide what is false or fake news.”
The PFUJ said in a statement it would start countrywide rallies against the new law next week and that if the law was not withdrawn, it would stage a sit-in protest outside parliament.
Digital rights activists also criticized the new law.
Reporters Without Borders, an organization that promotes and defends press freedom, ranked Pakistan low on its 2024 world Press Freedom Index, at number 152. The group also says Pakistan is one of the most dangerous places for journalists to work.
