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 slashes prices of petrol, diesel for next fortnight ​

Updated 31 July 2024
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Pakistan slashes prices of petrol, diesel for next fortnight ​

  • Pakistan slashes price of petrol by Rs6.17 [$0.022[ per liter to Rs269.43 [$0.97] per liter
  • Prices decreased due to “price variations in international market,” says finance division

ISLAMABAD: Pakistan has slashed the price of petrol for the next fortnight by Rs6.17 [$0.022] per liter to Rs269.43 [$0.97] per liter, the country’s finance division confirmed on Wednesday. 

In a notification, the finance division announced it has also decreased the price of high speed diesel by Rs10.86 [$0.039] per liter to bring it to Rs272.77 [$0.98] per liter.

“The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices of Petroleum Products, based on the price variations in the international market,” the notification read. 

Pakistan increased the prices of petroleum products by Rs9.99 [$0.036] and high speed diesel by Rs6.18 [$0.022] per liter on June 30. 
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The fuel prices had been increased after Pakistan and the International Monetary Fund reached an agreement for a $7 billion, 37-month loan program that comes with tough measures. 

The latest decrease will be a slight relief for the masses in a country where petroleum and electricity prices have been the key drivers of high inflation. 

Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers while any increase in the price of diesel is considered highly inflationary as it is mostly used to power heavy transport vehicles and particularly adds to the prices of vegetables and other eatables.


Asia Internet Coalition delegation meets Sharif amid Pakistan’s ban on X 

Updated 31 July 2024
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Asia Internet Coalition delegation meets Sharif amid Pakistan’s ban on X 

  • Rights activists have criticized Pakistan’s government for banning X, restricting Internet freedoms
  • Sharif, AIC delegation discuss prevention of electronic crimes, data protection in meeting, says PMO

ISLAMABAD: A delegation of the Asia Internet Coalition (AIC) met Prime Minister Shehbaz Sharif on Wednesday to discuss data protection and prevention of electronic crimes in Pakistan, his office said, while his government continues to face criticism for banning social media platform X throughout the country. 

Pakistani authorities banned X on Feb. 17 after protests swept the country over rigging allegations in the general election held earlier this year. The government defended the “legitimate” ban in court, saying it was aimed at addressing the country’s national security concerns.

The AIC is a body that brings together major technology firms such as Google, Facebook, Twitter, Amazon, Apple, and others to collaborate on matters related to Internet regulations, data privacy, online content regulations, cybersecurity, and other policy areas that impact the digital economy.

A three-member delegation of the body, led by its Managing Director Jeff Paine, met PM Sharif in Islamabad. 

“In the meeting, strategy regarding data protection, code of conduct related to Internet content and prevention of electronic crimes was discussed,” the Prime Minister’s Office (PMO) said. 

The delegation informed Sharif about AIC’s services in information technology in Pakistan. 

Sharif appreciated AIC’s role in promoting IT and Internet infrastructure in Pakistan and the Asia Pacific region. The premier said his government was taking strong steps to provide fast and uninterrupted Internet in the country.

Sharif stressed that his government was also working to promote an artificial intelligence-based infrastructure in Pakistan.

“We are determined to make Pakistan a prominent country in the region in terms of artificial intelligence infrastructure,” Sharif was quoted as saying by the PMO. “The entire system is being digitized under the Government’s Digital Pakistan Initiative.”

Digital rights activists have criticized Pakistani authorities for suspending Internet and telecommunication services frequently in the past. 

Pakistani authorities suspended mobile data services across the country minutes before voting began on Feb. 8. The move was seen by political experts and rights activists as an effort to keep opposition voters from getting information or coordinating activities. 

However, Pakistan’s interior ministry responded that it opted for the communication blockade as a security measure after at least 28 people were killed in two explosions in southwestern Pakistan on election eve. 

In June, Pakistan announced it was installing a national firewall to filter and block “propaganda and unwanted content” online, enhance its capacity to protect digital data from hackers and ensure cybersecurity. 

The government had emphasized the measure was not aimed at curtailing dissent on social media. However, rights experts warned that the Internet surveillance mechanism can become a threat to privacy and freedom of expression. 
 


Pakistan beat Kuwait to qualify for next round of Asian Men’s U-18 Volleyball Championship

Updated 31 July 2024
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Pakistan beat Kuwait to qualify for next round of Asian Men’s U-18 Volleyball Championship

  • Pakistan qualify for next stage of tournament after three consecutive wins 
  • Pakistan next play Taipei and Japan on August 1 and 2 for Group F fixtures

ISLAMABAD: Pakistan beat Kuwait 3-0 at the 15th Asian Men’s U-18 Volleyball Championship in Bahrain, state broadcaster Radio Pakistan reported on Wednesday, helping the green shirts qualify for the next stage of the tournament. 

Bahrain is hosting the 15th Asian U-18 Volleyball Championship which began on July 28 and will continue until August 4, featuring sixteen teams across Asia vying for the trophy. 

“In the 15th Asian Men’s U18 Volleyball Championship, Pakistan has defeated Kuwait 3-0 in Bahrain,” Radio Pakistan said. “Pakistan won with scores 25-19, 25-11, and 25-19.”

Pakistan’s impressive winning streak in the tournament began with a 3-2 win over South Korea in their first match. The South Asian country then dominated arch-rivals India on Monday, defeating the blue shirts 3-0 to clinch their second win of the tournament. 

According to the state-run Pakistan Television, Pakistan have now advanced to the top 8 stage of the tournament. The green shirts have qualified for Group F, where they will face Taipei and Japan on August 1 and 2, respectively.

“Moreover, the team will enter the next round with a carry forward point due to their consecutive victories,” PTV said. 

Pakistan’s Under-18 squad includes Talal Ahmed, Abu Bakar, Muhammad Issam, Muhammad Hassan, Gibran Ajmal, Junaid Muttahed, Ali Shah, Muhammad Junaid, Muhammad Yahya, Muhammad Irfan, Muhammad Nasir, and Khizr Hayat.


Draft law approved seeking to ‘frustrate’ Pakistan court ruling on extra seats for Khan’s party

Updated 31 July 2024
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Draft law approved seeking to ‘frustrate’ Pakistan court ruling on extra seats for Khan’s party

  • Proposed legislation says amendments to Elections Act 2017 will take precedence over court orders
  • Pakistan’s top court this month ruled that ex-PM Khan’s party was eligible for reserved seats

ISLAMABAD: A Pakistani parliamentary panel on Wednesday approved a bill suggesting that a political party should not be allocated reserved seats for women and minorities if it failed to submit its list of candidates for those seats within the prescribed time, a move being seen widely as an attempt by the government to hold on to its two-thirds majority in parliament. 
Pakistan’s top court this month delivered a landmark verdict saying the Pakistan Tehreek-e-Insaf (PTI) party of jailed former prime minister Imran Khan was eligible for reserved seats in parliament, mounting pressure on the fragile ruling coalition of Prime Minister Shehbaz Sharif. His government stands to lose its two-thirds majority in parliament after the ruling. 
In Pakistan, parties are allocated 70 reserved seats — 60 for women, 10 for non-Muslims — in proportion to the number of seats won in general elections. This completes the National Assembly’s total 336 seats. A simple majority in Pakistan’s parliament is 169 out of 336 seats.
All candidates from Khan’s PTI party were forced to contest the February polls as independents after the party was stripped of its election symbol of the cricket bat by the country’s election regulator on the technical grounds that it did not hold intra-party elections, a prerequisite for any party to take part in polls. After the election, the PTI-backed candidates were forced to join the Sunni Ittehad Council, or SIC party, to claim a share of 70 reserved seats as independents are not eligible for the extra seats.
“The government wants to frustrate the Supreme Court judgment through this legislation but practically it will be of no effect,” Imran Shafique, a legal expert, told Arab News. “The Supreme Court has determined rights of the political parties as per existing laws which cannot be undone through a simple parliamentary legislation.”
Bilal Azhar Kayani, a lawmaker of the ruling Pakistan Muslim League-Nawaz (PML-N) party, tabled the bill in parliament on Tuesday. The bill includes a declaration that proposed amendments to the Elections Act 2017 would take precedence over court orders, including those of the Supreme Court.
The Parliamentary Affairs Committee approved the bill with a majority of 8-4 votes. The bill will now be presented in the National Assembly and Senate where it will be voted on. 
The draft law says that individuals who contested the general election as independent candidates cannot change their affidavit at a later stage to declare their affiliation with any political party.
“The amendment aims to provide clarity in the law according to the true spirit of the constitution,” Law Minister Azam Nazeer Tarar told the committee.
The bill also states that any political party that fails to submit its list of reserved seats within the timeline defined by the election regulator shall “not be eligible for the quota in the reserved seats at a later stage.”
Shafique alleged that the draft bill was not a public interest legislation but was instead passed by the committee to serve the interests of certain political parties in parliament. 
“The Supreme Court can strike down this law if challenged and also its retrospective application is not possible,” he explained. 
Shafique said the government could gain time through this legislation and delay the process of allocating reserved seats to the PTI in the national and provincial assemblies. 
“The government may try to get political mileage from the law but it cannot stop the allocation of reserved seats to the PTI as per the top court’s ruling,” he added.


Torrential rains to continue in Pakistan from Aug 1-6 as at least 20 killed this week

Updated 31 July 2024
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Torrential rains to continue in Pakistan from Aug 1-6 as at least 20 killed this week

  • NDMA warns of flash floods in country’s northwestern KP province
  • Authorities advise precautionary measures for citizens during monsoons

ISLAMABAD: Pakistan’s top disaster management authority on Wednesday warned that torrential rains and thundershowers were expected to hit the country from August 1-6, as nearly 20 people were killed this week in the northwestern Khyber Pakhtunkhwa (KP) and eastern Punjab province. 

Pakistan is recognized as one of the most vulnerable countries to climate change impacts and this year recorded its “wettest April since 1961,” with 59.3 millimeters of rainfall and at least 144 deaths in thunderstorms and house collapses, mostly in the northwestern Khyber Pakhtunkhwa provinces, according to official data. The monsoon season is crucial for the region, providing essential water for agriculture, which is the backbone of Pakistan’s economy. 

“More monsoon rains and thundershowers from August 1-6,” the National Disaster Management Authority (NDMA) said on Wednesday. “Monsoon currents from the Arabian Sea and Bay of Bengal are likely to penetrate in the upper part by July 31 and then in central and southern parts of the country from Aug 2 onwards.”

The statement highlighted that torrential rains may generate flash floods in local streams flowing through Murree, Galliyat, Mansehra, Kohistan, Chitral, Dir, Shangla, Bunner, Bannu, Kurram, Waziristan, D.I Khan, Orakzai, Khyber, Mohmand, Nowshera and Swabi in Khyber Pakhtunkhwa province. Islamabad, Rawalpindi and northeast Punjab might also be affected.

Hill torrents may be triggered in D.G Khan, Rajanpur, Sulaiman and Kirthar Ranges, the authority said, adding that heavy downpours may result in urban flooding in Islamabad, Rawalpindi and northeast Punjab including Gujranwala, Lahore, Sheikhupura, Kasur, Sialkot, Sargodha, Faisalabad, Multan, Sahiwal, Nowshera and Peshawar from Aug 2-5.

The NDMA warned that rain events might lead to a surge in water levels of streams with a possibility of landslides in upper KP, Murree, Galliyat, Kashmir and Gilgit Baltistan. The weather conditions could also pose a threat to life and property in vulnerable areas.

According to the report, NDMA advised all the provincial disaster management authorities to remain prepared to respond to untoward situations: ” Departments must ensure the pre-placement of machinery and the availability of relevant staff in vulnerable areas.”

It urged local departments to sensitize residents living along riverbanks and facilitate their timely evacuation of at-risk populations from low-lying areas. The citizens were advised to undertake precautionary measures like staying clear of electric poles and weak infrastructure. Tourists and travelers were advised to remain cautious. 

Last month, a UN official warned that an estimated 200,000 people in Pakistan could be affected by the upcoming monsoon season. 

Unusually heavy rains in June 2022 triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion on the economy, and affecting at least 30 million people.