KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb revealed on Thursday only 14 percent of companies in Pakistan were registered for sales tax, leading to an estimated loss of Rs3.4 trillion ($12.2 billion) due to tax evasion, highlighting significant compliance and revenue generation challenges in the country.
Pakistan’s narrow tax base and persistent issue of tax evasion have continuously contributed to insufficient revenue collection for the fragile national economy. This shortfall exacerbates the government’s reliance on running high fiscal deficits, often financed through domestic and international borrowing, which further increases the nation’s debt burden.
Last month, the authorities prepared a plan to revamp the Federal Board of Revenue’s (FBR) tax collection system, with the help of economic and technological experts, following a detailed analysis of tax collection patterns over the past 25 years.
The government has also decided to fully digitalize the tax system to prevent leakages, even as a large segment of the national economy remains undocumented.
“Only 14 percent of the companies are registered for sales tax,” the minister said in a televised news briefing in Islamabad. “I will not delve into the consequences of non-registration as I have already spoken about it earlier.”
In his media talk on the “war on tax fraud” alongside FBR Chairman Rashid Mahmood Langrial, he said the overall tax evasion in Pakistan amounted to approximately Rs7 trillion ($25 billion) of which income tax evasion was around Rs1.3 trillion ($4.6 billion).
Aurangzeb said tax fraud could be divided into many categories with the first and most important being the misreporting of turnover and input claims. He explained that companies involved in such malpractices claimed a high ratio of input tax so that tax payments could be “suppressed and mitigated.”
He highlighted the importance of being part of a tax regime which was “adaptable and fair” where all segments of society and classes play their role. He said data analytics were being used to “plug leakages” in tax collection to ease out the burden inflicted on lower classes.
Aurangzeb said it was imperative to raise the tax-to-GDP ratio to 13-13.5 percent so that Pakistan could become a sustainable country going in the right direction with strong remittances, exports, upgraded credit ratings and a decreased policy rate due to declining inflation that also brought the lending rates down.
He added that the country could not afford to have any kind of “leakage” in terms of tax collection anymore. He gave examples of businesses in different sectors and how they misrepresented data to evade taxes.
The finance minister said 19 businesses in the cement sector that represented 100 percent of total reported sales owed around Rs18 billion ($64.3 million) to the government. Similarly, he added that the shortfall in the beverages sector due to tax evasion amounted to Rs15 billion ($53.96 million) where 16 businesses represented almost 100 percent of the total sales.
Talking about the textile sector, the finance minister said 28 weaving businesses represented 80 percent of the total reported sales with tax evasion of up to Rs18 billion ($64.3 million).
Meanwhile, the FBR chairman said the businesses involved in tax evasion were the same ones whose owners would hold meetings with government officials and present plans on how to curb tax evasion.
“There is not a bigger fraud being conducted in this country than the input adjustment system,” he said.
“The real appeal today is to professional classes who work as chief financial officers or chief executive officers. They are not the beneficiaries of the fraud amounting to billions of rupees but their signatures are being used which is a criminal act that will have criminal consequences.”
Langrial said the FBR will take action against such people and arrest them after due legal process. He urged every company’s management to not sign the upcoming sales tax return due on October 15.
“There will be no forgiveness this time,” he said.
Finance minister says only 14% of companies registered for sales tax in Pakistan
https://arab.news/6gv83
Finance minister says only 14% of companies registered for sales tax in Pakistan
- Muhammad Aurangzeb says sales tax evasion amounts to an estimated $12.2 billion
- The government says it will act against companies misreporting turnover, input claims
PM Sharif says nation stands with security forces after killing of militants amid surge in attacks
- PM says government is committed to eradicating militancy after security forces kill three in northwest
- The development comes amid rising violence in Pakistan that has witnessed deadly attacks recently
ISLAMABAD: Prime Minister Shehbaz Sharif said on Saturday the nation stands firmly with its security forces as the military announced the killing of three militants in two separate operations in the country’s northwest amid a sharp rise in violence.
Pakistan’s military also injured three combatants during intelligence-based operations conducted in Khyber and South Waziristan districts on Nov. 21-22.
According to the Inter-Services Public Relations (ISPR), two militants were killed in an operation in Bara, Khyber district, while another was killed and three injured during an attempt to infiltrate Pakistan from the Afghanistan border.
The ISPR reiterated Pakistan’s call for Afghanistan’s Taliban-led interim government to prevent its territory from being used for violent attacks against Pakistan, emphasizing the country’s commitment to securing its borders and eradicating militancy.
“The enemies of humanity will continue to face failure in their evil designs,” the prime minister said in a statement released by his office after the ISPR shared the information. “The entire nation stands shoulder to shoulder with the brave soldiers of our security forces in the fight against terrorism.”
Sharif added his government remains committed to eradicating militancy and ensuring the complete elimination of extremist violence in the country.
The ISPR’s announcement comes amid escalating violence in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, which has witnessed multiple deadly attacks in the past week.
In the latest assault on Thursday, gunmen attacked vehicles carrying minority Shiite community members in KP’s Kurram district, triggering deadly sectarian clashes that have so far killed 64 people.
Prior to that, militants targeted a checkpost in KP’s Bannu district during the week, killing 10 army soldiers and two paramilitary Frontier Constabulary personnel.
Pakistan Army Chief General Asim Munir, during a visit to Peshawar on Friday, vowed decisive action against militant groups and emphasized the need for synchronized operations to dismantle militant networks.
Pakistan’s other western province of Balochistan has also seen a resurgence in militant activity this year.
On Tuesday, the prime minister chaired a meeting of civil and military leaders that approved a “comprehensive operation” to counter separatist insurgents in Balochistan.
The government’s latest actions underline Pakistan’s struggle to address growing instability along its borders and in remote regions, where a combination of militant activity and weak governance continues to pose significant challenges to security forces.
Punjab chief minister suspends top hospital officials over AIDS outbreak during dialysis
- Action comes after 25 patients in Multan contract AIDS due to reuse of disposable dialysis kits
- Maryam Nawaz visit Nishtar Hospital, emphasizes stricter compliance with medical protocols
ISLAMABAD: Punjab Chief Minister Maryam Nawaz has suspended six officials at Nishtar Hospital Multan, including the medical superintendent, for severe negligence that led to the spread of AIDS among dialysis patients, state media reported on Saturday.
According to local news outlets, the negligence involved reusing disposable dialysis kits and dialyzers, failing to conduct mandatory AIDS and hepatitis tests every three months and improper adherence to medical protocols.
Hospital officials acknowledged that 25 patients contracted AIDS after undergoing dialysis using equipment previously contaminated by infected individuals.
“Punjab Chief Minister Maryam Nawaz visited Nishtar Hospital Multan and suspended six officials, including MS Nishtar Hospital and the head of the nephrology department, on severe negligence,” Radio Pakistan reported.
“She took action against doctors and nurses for spreading AIDS during dialysis,” it added.
AIDS, caused by the human immunodeficiency virus (HIV), attacks the immune system and leaves individuals vulnerable to infections and certain cancers. In Pakistan, the social stigma surrounding HIV/AIDS has led to significant underreporting, with UNAIDS estimating approximately 290,000 people living with HIV in the country as of 2023.
According to Pakistan’s Geo TV, the chief minister inspected the hospital during her visit and criticized its poor compliance with standard operating procedures.
She described the situation as “criminal negligence” and expressed dissatisfaction despite the government’s allocation of resources to the health sector.
“It is unacceptable that patients who come to government hospitals for treatment end up contracting AIDS instead,” Geo quoted her as saying.
Public health facilities in Pakistan face a severe trust deficit, with many patients preferring private hospitals despite their high costs. Poor management, insufficient oversight and a lack of adherence to medical protocols continue to erode confidence in the public health care system.
The Punjab chief minister emphasized the need for stricter compliance with protocols and greater accountability for medical staff to prevent such incidents in the future.
She also inspected cardiology and other wards during her visit.
Authorities in Pakistan’s northwest push for ceasefire as Kurram clashes kill 64
- KP administration sends a high-level delegation to the restive region to consult local elders
- Provisional spokesman denies the delegation’s helicopter came under fire while landing
PESHAWAR: The death toll in days-long sectarian clashes in Pakistan’s northwestern Kurram district has risen to 64, authorities said on Saturday, as the provincial government of Khyber Pakhtunkhwa (KP) announced it was striving for a ceasefire and would develop its strategy to address the situation in consultation with local elders.
The violence in the restive tribal district bordering Afghanistan began on Thursday when gunmen attacked a convoy carrying members of the minority Shiite community, killing 41 people.
Clashes intensified over the next 24 hours, with sporadic gunfire reported in multiple areas of Kurram, leaving 23 more dead and at least 86 wounded, according to local officials.
“The provincial government is making serious efforts for a peaceful and sustainable resolution of the Kurram conflict,” KP Chief Minister Ali Amin Gandapur, who chaired a meeting via video link to discuss the situation, was quoted as saying in an official statement. “A ceasefire in the area is essential to move toward resolving the conflict.”
“The provincial government will formulate its plan of action in light of consultations and proposals from local elders,” he added.
Earlier in the day, the KP administration dispatched a high-level delegation to Kurram to assess the situation and engage with tribal leaders. Local media widely reported that the delegation’s helicopter came under fire while landing, a claim the provincial authorities denied as “baseless.”
“We landed safely and held meetings with tribal elders and officials of the district administration in Kurram,” said provincial government spokesman Muhammad Ali Saif in a video statement. “There was no such incident [of firing on the helicopter].”
Former parliamentarian Sajid Hussain Turi, who was part of the delegation, also dismissed the reports as “propaganda,” urging media outlets to verify information before circulating.
The delegation met with Shia elders in Parachinar, the district’s main town, to seek proposals for ending the violence and is scheduled to meet Sunni elders in Sadda on Sunday, officials said.
The clashes mark one of the deadliest incidents in Kurram in recent years, following outbreaks of sectarian violence in July and September that killed dozens.
Gandapur described Friday’s attacks as “deeply regrettable and condemnable” and said the government would fulfill any legitimate demands from both sides to prevent further bloodshed.
“Establishing peace in the region is currently the provincial government’s top priority,” he added.
Shop owners in Parachinar have announced a three-day strike in protest against the violence, as residents report an atmosphere of fear and uncertainty across the district.
Pakistan’s anti-terror body warns of militant threat to opposition protest in Islamabad
- NACTA alert says Taliban militants have entered Pakistan, may target Imran Khan’s party rally
- PTI has urges people to join Sunday’s protest in the capital to secure Khan’s release from prison
KARACHI: Pakistan’s National Counter Terrorism Authority (NACTA) has warned of potential militant attacks targeting former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party’s protest march, according to a classified alert shared with provincial officials earlier this week.
The alert, issued on Thursday but revealed in the media on Saturday, cited intelligence from “multiple sources” indicating that militants belonging to the banned Tehreek-e-Taliban Pakistan (TTP) had entered Pakistan from Afghanistan and infiltrated major cities.
Referring to the TTP as “Fitna Al Khawarij (FAK),” the alert warned that its fighters could target participants of the PTI protest.
“Sources have confirmed that FAK elements are planning to conduct such activities in public/political gatherings; most likely upcoming PTI protest/march as opportunity to exploit for their vested interest,” the alert, in possession of Arab News, said.
A senior NACTA official, speaking on condition of anonymity, confirmed its authenticity.
The PTI has called on its followers to march on Islamabad on Sunday to demand Khan’s release, as he has been imprisoned for over a year.
The march also aims to protest alleged electoral manipulation in February’s general elections and to highlight concerns over judicial independence, which the government has denied.
The Taliban have not officially responded to the alert regarding their potential involvement in attacks. However, the militant group has previously maintained that it has a policy of not targeting ordinary citizens.
The government has already urged the PTI to call off the protest, citing an Islamabad High Court ruling that instructed authorities to engage with the party and ensure no disruptions in the capital ahead of a major foreign delegation visit next week.
According to Pakistan’s foreign office, Belarusian President Aleksandr Lukashenko will arrive in Islamabad on a three-day visit starting Monday to discuss economic collaboration between the two countries.
KSrelief officials join global delegation meeting PM Sharif to boost Pakistan’s polio fight
- Shehbaz Sharif says his government will not rest until the ‘scourge of polio’ is completely eradicated
- Pakistan has reported 52 polio cases since the beginning of the year, mostly from KP and Balochistan
KARACHI: Officials from Saudi aid agency KSrelief, as part of a Global Polio Eradication Initiative delegation, met Prime Minister Shehbaz Sharif to discuss strengthening Pakistan’s vaccination campaigns, tackling polio challenges and securing support for a polio-free future, according to an official statement released on Saturday.
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The South Asian nation’s polio eradication campaign has faced serious challenges, with a significant spike in reported cases this year amid militant attacks on polio teams, prompting officials to reassess their approach to combating the crippling disease.
Pakistan reported two new polio cases from Dera Ismail Khan in the northwestern Khyber Pakhtunkhwa (KP) province a day earlier, bringing the total number of cases to 52 since the beginning of the year.
“Pakistan hosted a high-level delegation from the GPEI for a second time this year from Nov. 20-22,” the Pakistan Polio Eradication Program (PPEP) said in a statement, adding that the meeting reflected the highest level of political commitment to eradicating polio in the country.
The delegation included two senior KSrelief officials along with World Health Organization, Bill & Melinda Gates Foundation and UNICEF representatives.
The prime minister expressed gratitude to the delegation for supporting Pakistan, emphasizing that the country considers the eradication of polio a top priority.
“A strategic National Emergency Action Plan is being implemented to reverse the virus surge, and all chief ministers and secretaries are providing direct oversight and working in coordination to fight the current polio outbreak,” Sharif was quoted as saying.
“The Government of Pakistan will not rest until we have ended the scourge of polio from our borders,” he added.
The delegation also visited metropolitan Karachi during their stay in the country, where its members met with female frontline health workers to discuss the challenges they face and explore ways to address them, the statement said.
Of the 52 polio cases reported in 2024, 24 were from Balochistan province, 13 from Sindh, 13 from KP, and one each from Punjab and Islamabad, the federal capital.
Poliovirus, which can cause crippling paralysis, particularly in young children, remains incurable and continues to threaten human health as long as it is not eradicated. Immunization campaigns have succeeded in most countries and have made significant progress in Pakistan, but persistent challenges remain.
In the early 1990s, Pakistan reported approximately 20,000 cases annually, but by 2018 the number had dropped to eight. Six cases were reported in 2023, and only one in 2021.
