Pakistani flour mills observe nationwide strike over withholding tax dispute

A worker checks flour during the wheat grind process at a mill in Karachi on January 21, 2020. (AFP/File)
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Updated 11 July 2024
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Pakistani flour mills observe nationwide strike over withholding tax dispute

  • Flour mills vow to continue indefinite strike until government reverses 5.5% withholding tax on flour
  • Strike takes place as Pakistan navigates tricky path to economic recovery amid staggering inflation 

ISLAMABAD: Hundreds of flour mills across Pakistan remained shut on Thursday as their owners announced an indefinite strike against the government’s move to impose a new withholding tax, exacerbating fears of a food shortage in many parts of the country. 

The Pakistan Flour Mills Association (PFMA) says the government has imposed a 5.5 percent withholding tax on sales of flour mills in the national budget. Javed Yusuf, a former chairperson of the PFMA, said the government has also directed flour mills to collect another 2.5 percent withholding tax on the sale of essential commodities to retailers (non-filers) and 2 percent from wholesalers (non-filers). The association says it has been tasked to collect a 0.5 percent withholding tax on the sale of flour from retailers (filers) and a 0.10 percent tax from wholesalers (filers).

Pakistan’s president last month signed the tax-heavy controversial budget into law. The ambitious budget has a tax revenue target of 13 trillion rupees ($46.66 billion) for the current fiscal year, up about 40 percent from the previous one. Pakistan’s government took the unpopular measures amid negotiations with the International Monetary Fund (IMF) for a fresh loan program. The IMF has insisted the government undertake tax reforms to raise revenue and generate fiscal space. 

“We are observing a nationwide strike against the government for imposing taxes and making flour millers the tax collection agents,” Yusuf told Arab News. “Our strike will continue till the government accepts our demand of withdrawal of all taxes levied in the budget.”

He said 1600 flour mills across the country remained shut on Thursday, adding that they employed over 4,000 people directly. 

“We cannot collect taxes on behalf of the FBR, it’s not our job,” Yusuf said. 

Speaking to a private news channel on Wednesday, PFMA Chairman Asim Raza criticized the government for taxing an essential commodity such as flour. 

“If the government does not provide us this [tax] exemption like it did previously, then we won’t be able to run the industry,” Raza said. “Then it will be an addition of Rs200 [$0.72] to the price. The government will notify the prices and we will sell it at the inflated rate.”

The strike takes place as Pakistan navigates a tricky path to economic recovery amid staggering inflation and a macroeconomic crisis. The South Asian country has been scrambling to secure foreign investment and external funding from allies in a bid to keep its fragile $350 billion economy stable. 

Pakistan has been grappling with an acute balance of payments crisis, a weak currency and double-digit inflation that reached a record high of 38 percent in May 2023. 
 


Pakistan PM condemns Israel for Hamas leader’s ‘extra-territorial killing’ in Tehran

Updated 42 min 39 sec ago
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Pakistan PM condemns Israel for Hamas leader’s ‘extra-territorial killing’ in Tehran

  • Ismail Haniyeh and bodyguard were killed in Tehran on Wednesday when a rocket struck his accommodation
  • Shehbaz Sharif says Israel flagrantly violated international laws in Haniyeh’s assassination, regrets world’s “silence”

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Thursday strongly criticized Israel for committing acts of barbarity in Palestine and flagrantly violating international laws in the “extra-territorial killing” of Hamas’ political chief Ismail Haniyeh. 
Haniyeh’s death was announced on Wednesday by Iran’s Revolutionary Guards, who said he and his bodyguard were killed in a strike on their accommodation in the Iranian capital at 2:00 a.m. (2230 GMT). Haniyeh was in Tehran to attend the swearing-in ceremony of the new Iranian president. 
It came just hours after Israel targeted and killed top Hezbollah commander Fuad Shukr in a retaliatory strike on the Lebanese capital Beirut, sending fears of a wider regional war soaring in fallout from the Israel-Hamas war in Gaza.
While Israel has refrained from commenting on the Tehran strike, Iran has vowed retaliation against the Jewish state for carrying out an assassination on its soil. 
“I believe the entire world has condemned it [Haniyeh’s killing] in the strongest words,” Sharif said while chairing a meeting of the parliamentary members of his ruling coalition government. 
“An extra-territorial killing was conducted in which Ismail Haniyeh was martyred through a rocket,” he said, regretting that international laws were violated in the act. 
The prime minister regretted the world’s “silence” over the incident, saying that it was a time for reflection for the international community. 
He noted that Israel had violated United Nations Security Council resolutions repeatedly since last year, lamenting that the Jewish state was not stopping its military offensive in Palestine despite the International Court of Justice describing its actions as “genocide.”
He thanked Ireland and Spain for recognizing the state of Palestine and supporting the two-state solution in the Middle East. 
‘ACT OF DANGEROUS ESCALATION’
Separately, Pakistan’s foreign office on Thursday denounced Israel’s act of assassinating Haniyeh, saying that it was an act of “dangerous escalation.”
“Yesterday’s assassination of Ismail Haniyeh, the chief of the political bureau of Hamas in Tehran, was an act of dangerous escalation in an already volatile region and undermines efforts for peace,” Foreign Office Spokesperson Mumtaz Zahra Baloch told reporters at a news conference. 
“We express our condolences to his family and the Palestinian people. His killers must be held to account.”
Baloch said Israel had unleashed a “campaign of terror” against the Palestinian people since October 2023.
“Its war on Gaza and the inhumane siege in violation of international human rights and humanitarian law have resulted in misery, death and destruction,” she added. 
“These acts constitute war crimes and crimes against humanity. We call upon the United Nations to uphold international law and to bring an end to the genocide of the people of Gaza.”
She reiterated Pakistan’s support for Palestinians’ right to self-determination, their right of return to their homeland and the establishment of an independent state for them “with Al-Quds Al-Sharif as its capital.”


Pakistani religious political party threatens to expand protests if demands aren’t accepted

Updated 01 August 2024
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Pakistani religious political party threatens to expand protests if demands aren’t accepted

  • Hundreds of Jamaat-e-Islami supporters are staging a sit-in protest at Rawalpindi’s Liaqat Bagh against rising cost of living, additional taxes
  • JI gives government two days to accept its demands, failing which it vows to launch protests in Karachi, Lahore, Peshawar and Quetta 

ISLAMABAD: A Pakistani religious political party warned the government on Thursday it would expand its sit-in protest from Rawalpindi to other cities if their demands are not accepted within two days. 
Hundreds of Jamaat-e-Islami (JI) party supporters have been staging a sit-in protest at Rawalpindi’s Liaquat Bagh since July 26 against the rising cost of living and additional taxes imposed by the government in the latest budget.
Led by party chief Hafiz Naeem-ur-Rehman, the JI has demanded the government reduce power tariffs amid soaring inflation and review Pakistan’s existing agreements with independent power producers (IPPs).
A three-member committee formed by Prime Minister Shehbaz Sharif comprising Information Minister Attaullah Tarar, ruling party members Amir Muqam and Tariq Fazal Chaudhry have held two rounds of talks with protesters this week but a deadlock persists. 
“We have had two rounds of talks with the government committee, but no agreement has been reached yet,” Aamir Baloch, a JI spokesperson, told Arab News. “If our demands are not met in the next two days, then we will decide to spread our dharna to other cities.”
Baloch said the party was planning to stage sit-in protests in Karachi, Lahore, Peshawar and Quetta in the next phase to mount pressure on the government to accept its demands to decrease power bills and withdraw additional taxes on the salaried class.
He said the party’s negotiating team, led by Liaqat Baloch, held talks with the government’s technical committee on Wednesday in the office of the Rawalpindi commissioner. He said the JI had placed all their “genuine demands” before the committee. 
“We have been waiting to hear back from the government,” Baloch said. 
Arab News contacted Tarar for a comment regarding the JI’s statement but did not get a response till the filing of this report. 
Meanwhile, Punjab police have beefed up security around the sit-in protest in Rawalpindi to protect protesters from any untoward incident. 
Protesters include women and children while the party leadership, including Rehman, speak to their supporters at the venue daily after the Isha night prayers.


Pakistan seeks Commonwealth’s help in mobilizing international support for climate-vulnerable countries

Updated 01 August 2024
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Pakistan seeks Commonwealth’s help in mobilizing international support for climate-vulnerable countries

  • Commonwealth Secretary-General Patricia Scotland meets Pakistan PM to discuss climate change impacts, flood reconstruction efforts
  • Pakistan, other developing nations have been pushing for a global fund to mitigate impacts of climate-induced natural disasters 

ISLAMABAD: Pakistan wants to work with the Commonwealth in mobilizing international support for climate-vulnerable countries at the upcoming global climate conference in Azerbaijan, Prime Minister Shehbaz Sharif said on Thursday, according to a statement from his office. 
Pakistan joined hands with other developing nations in 2022 to call for a global fund to mitigate the impacts of climate-induced disasters at the COP27 conference in Egypt. 
Pakistan is consistently ranked as one of the worst-affected countries by climate change, where erratic weather patterns such as heavy monsoon rains and heat waves are frequent. Unusually heavy rains and the melting of glaciers in July 2022 killed at least 1,700 people, affected over 33 million and caused more than $30 billion in damages to the South Asian country. 
Commonwealth Secretary-General Patricia Scotland, who arrived in Pakistan this week on a five-day visit, called on PM Sharif with a five-member delegation in Islamabad. The two sides discussed the government’s youth program, climate change impacts and flood reconstruction efforts, the Prime Minister’s Office (PMO) said in a statement. 
“The Prime Minister said Pakistan wanted to work with the Commonwealth in helping mobilize more international support for climate-vulnerable countries like Pakistan at the forthcoming COP29 in Baku,” the PMO said. 
Sharif described combatting climate change as a common priority for Pakistan and the Commonwealth nations, appreciating Scotland’s climate advocacy for Pakistan following the devastating 2022 floods. 
The PMO said Scotland appreciated Pakistan’s efforts for post-flood reconstruction, hoping that the international community would provide more support in building Pakistan’s climate resilience. 
Sharif and Scotland also discussed the upcoming Commonwealth Heads of Government Meeting in Samoa later this year. The two spoke about ways in which the two sides could coordinate on building consensus on key issues of mutual interest and chart a roadmap for the Commonwealth.


Pakistan says Iran’s statement on Parachinar clashes ‘unwarranted’

Updated 01 August 2024
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Pakistan says Iran’s statement on Parachinar clashes ‘unwarranted’

  • Warring tribes last week clashed over property dispute in Pakistan’s Kurram district, leaving at least 32 dead, 190 injured
  • Pakistan says Iran’s statement condemning violence based on “incomplete picture” of situation in Parachinar town

ISLAMABAD: Pakistan’s foreign office spokesperson on Thursday rejected Iran’s recent statement condemning violent clashes in its northwestern Parachinar town, saying it was “unwarranted” and based on an “incomplete picture” of the situation.
At least 32 people were killed and over 190 injured in clashes that erupted last week in Pakistan’s northwestern Kurram district, particularly its capital Parachinar town.
The Kurram tribal district has witnessed deadly conflicts among tribes and religious groups as well as sectarian clashes and militant attacks over the years. The latest clashes broke out over a property dispute last week and quickly spread to nearby villages and settlements before the warring tribes agreed to a ceasefire on Sunday.
In a statement on Wednesday, Iran’s Foreign Ministry Spokesperson Nasser Kanaani condemned the “terrorist attack,” saying it had targeted Shia Muslims in Pakistan. He stressed the need for decisive action against militant groups to protect the lives of the people of Parachinar. 
“Such statements about Pakistan’s domestic affairs are therefore unwarranted,” Mumtaz Zahra Baloch, the spokesperson of Pakistan’s Ministry of Foreign Affairs, (MoFA) said during a weekly press briefing. 
“While details may be sought from the Ministry of Interior, we believe that these statements are based on an incomplete picture of the situation in Parachinar,” she added.
Baloch said Pakistan values the life, dignity and prosperity of all of its nationals as a multicultural and multifaith society.
“Pakistan is fully determined to foster social harmony, tolerance, and mutual respect,” she said.
Pakistan and Iran have had a history of rocky relations despite several commercial pacts. Their highest profile agreement is a stalled gas supply deal signed in 2010 to build a pipeline from Iran’s Fars gas field to Pakistan’s southern provinces of Balochistan and Sindh.
Pakistan and Iran also find themselves at odds due to the instability along their shared porous border, with their leaders routinely trading blame after militant attacks in their respective territories.
Earlier this year in January, the two countries exchanged airstrikes, with each government claiming to have targeted militant hideouts in the other country. Both states have since made peace overtures and restored bilateral ties through multiple high-level visits.


Pakistan urges overseas nationals to abide by law after reported concerns from Gulf employers 

Updated 01 August 2024
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Pakistan urges overseas nationals to abide by law after reported concerns from Gulf employers 

  • 50% of UAE’s crime rate is reportedly attributed to Pakistanis, an official told a senate committee this week 
  • Host governments appreciate Pakistani nationals and their contribution to their societies, says foreign office spokesperson

ISLAMABAD: Pakistan’s foreign office spokesperson on Thursday advised its nationals living abroad, especially in the Middle East, to abide by their laws and respect their customs, following a senate committee meeting this week that reportedly discussed concerns by Gulf employers about the lackluster performance standards and behaviors of Pakistani citizens in their countries. 
During a briefing of the Senate Standing Committee on Overseas Pakistanis this week, the poor performance standards of Pakistani workers abroad came under discussion. Dr. Arshad Mahmood, secretary of the Ministry of Overseas Pakistanis, informed the committee that 50 percent of the crime rate in the UAE is reportedly attributed to Pakistanis. 
As per a report in the English-language newspaper Dawn, the secretary said there was a declining trend in overseas employment for the Pakistani labor force. He noted that despite modernization and technological advancement, a significant portion of the Pakistani labor force remains unskilled. 
“I reiterate our request to Pakistani nationals, wherever they are, to respect the local laws and the local customs so that the life of all Pakistanis in those countries remain normal and these individuals continue to enjoy their stay in these countries,” Foreign Office Spokesperson Mumtaz Zahra Baloch told reporters during a news briefing. 
Of over 10 million overseas Pakistanis, over 50 percent live in Gulf countries, with Saudi Arabia and the UAE being the top choices for Pakistani laborers for decades. Saudi Arabia and the UAE are the first and second largest sources of remittances to Pakistan, respectively.
Baloch noted that apart from a few individuals, the majority of Pakistani nationals living abroad were law-abiding citizens and respected the laws of their host countries, including those of the Gulf States.
“UAE or other countries in the Middle East have their laws with respect to individuals who are foreign expatriates and their participation in political activities,” she said. Baloch added that all Pakistani citizens were continuously urged to follow their host country’s laws accordingly. 
Commenting on the Pakistani workforce’s skills, Baloch noted that they had positively contributed to the development of societies in the Middle East where they have lived for decades.
“The host governments are appreciative of Pakistani nationals, of their contribution to their society, and the peaceful and law-abiding nature of Pakistani workers who live in these countries, especially in the Middle East,” she added.
‘EFFECTIVE, ROBUST ACTION AGAINST TERRORISTS’
Baloch responded to a recent report by the United Nations Security Council (UNSC) this week that pointed out the severe security threat that the Pakistani Taliban or Tehreek-e-Taliban Pakistan (TTP) poses to the country. 
Pakistan’s information ministry has said the UNSC report noted increased cooperation between the TTP and Afghan Taliban in cross-border assaults, primarily targeting Pakistani military posts.
Pakistan has suffered a surge in militant attacks inside its territory since Nov. 2022, when a fragile truce between the TTP and the state broke down. Pakistan blames the Afghan Taliban for sheltering the TTP and has asked it to take action against the militants. Kabul has rejected Islamabad’s allegations. 
Baloch said the report pointed out that TTP operatives and the group’s new recruits were being trained in Afghanistan.
“This endorses what we have been saying for the last several months, that Afghanistan has hideouts and sanctuaries for terrorist groups, including TTP, that continue to threaten Pakistan’s security,” she said. 
“We urge Afghanistan to take immediate, effective, and robust action against these terror groups, especially the TTP, and to ensure that Afghan territory is not used as a staging ground for terrorism against Pakistan,” Baloch added.