KARACHI: At least one person was killed and dozens of others were arrested in Karachi on Sunday as police attempted to disperse protests from two opposing groups over a blasphemy case, a rescue official said, amid a ban on public gatherings in the southern Pakistani city.
The Sindh Rawadari Committee (SRC), a human rights group, had planned a demonstration in the southern port city to demand the arrest of police officers implicated in the killing of Shahnawaz Kumbar, a doctor who was shot dead on September 19 in an alleged encounter after he was accused of spreading blasphemous content online.
Simultaneously, the Tehreek-e-Labbaik Pakistan (TLP) religious party announced its own rally from the Teen Talwar roundabout in the city to the Karachi Press Club. In response to the announcements by both sides, the Karachi South district authorities on Saturday imposed Section 144 and prohibited gatherings of more than five people for five days.
On Sunday, police sealed off streets leading to the Karachi Press Club with shipping containers and deployed hundreds of personnel across the city, particularly in the Red Zone, which houses important government buildings. Protesters clashed with police in their attempt to reach the venue, while the law enforcers resorted to tear-gasing, baton-charging and aerial firing to disperse demonstrators from both parties.
“A man identified as Muhammad Majid Ali was killed in clashes at Metropole Hotel [near Karachi Press Club],” a spokesperson for the Chhipa recue service said.
While the police did not confirm the killing, TLP leader Saad Rizvi said 51-year-old Ali was his party’s worker who was “killed by police gunfire” during the clashes.
Earlier in the day, around 200 activists from the SRC managed to reach near the Karachi Press Club, flouting the ban on public gatherings. Police tear-gassed and baton-charged the demonstrators and arrested nearly 70 of them, who were released later
“All 70 activists belonging to the Sindh Rawadari Committee have been released,” Deputy Inspector General of Police Syed Asad Raza told Arab News, adding that several activists of the TLP had also been detained.
“The police resorted to worst torture and arrested dozens of activists,” said Qazi Khizar, vice president of the Human Rights Commission of Pakistan’s (HRCP) Sindh chapter who was among the detainees.
Following the announcement of protests, the Karachi South district administration had advised all parties to avoid and prevent any breakdown of law, considering the sensitivity of the matter.
Asad Iqbal Butt, chairman of the Human Rights Commission of Pakistan (HRCP), criticized authorities for restricting the SRC’s protest march by “succumbing to pressure from religious groups.”
“We simply demand that those [police officers] who have taken the law into their own hands be arrested and brought to justice,” he said.
Dr. Kumbar was killed in a controversial shootout in the Mirpurkhas district of Sindh after his arrest in Karachi. An official inquiry later found the encounter was staged, resulting in the suspension of several police officials, including DIG Javed Jiskani and SSPs Asad Choudhary and Asif Raza Baloch.
One killed, dozens arrested as police disperse protest rallies by opposing groups in Karachi
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One killed, dozens arrested as police disperse protest rallies by opposing groups in Karachi
- A ban was imposed on rallies after the announcement of protests by rights group, religious party over a blasphemy case
- While the police did not confirm the killing, Tehreek-e-Labbaik Pakistan religious party said the deceased was its worker
Pakistan announces tax relief for salaried class in FY2025-26 budget
- Tax rate for low-income earners slashed from 5% to 1%
- Rs17.57 trillion budget focuses on economic stabilization
ISLAMABAD: Pakistan announced significant income tax relief for low- and middle-income earners on Tuesday as it presented its federal budget for the fiscal year 2025-26, aiming to ease the burden on salaried individuals amid high inflation and economic uncertainty.
Pakistan’s tax-to-GDP ratio remains below 10%, among the lowest in the region. The government has pledged to raise this ratio to 14% through tax reforms, digital enforcement, and expanding the tax base.
Finance Minister Muhammad Aurangzeb, presenting his first full-year budget in the National Assembly, said the income tax rate for individuals earning between Rs600,000 and Rs1.2 million ($2,128–$4,255) annually would be cut from 5% to 1%.
“First of all, we are giving relief where it is needed the most,” Aurangzeb told parliament, adding that the measure was in line with Prime Minister Shehbaz Sharif’s directive to support wage earners and retain talent in the country.
The government has also proposed reducing the tax on annual income up to Rs1.2 million from Rs30,000 to Rs6,000, lowering the tax rate from 15% to 11% for those earning up to Rs2.2 million ($7,800) and cutting the rate from 25% to 23% for income between Rs2.2 million and Rs3.2 million ($11,350).
For high-income earners making over Rs10 million ($35,460) annually, a 1% reduction in the additional surcharge has been recommended to help curb the ongoing brain drain, the minister said.
Aurangzeb described the changes as part of broader efforts to simplify the tax structure and “strike a balance between inflationary pressures and take-home pay.”
The federal budget, with a total outlay of Rs17.57 trillion ($62 billion), comes as Pakistan seeks to stabilize its economy under a $7 billion International Monetary Fund (IMF) bailout program.
The budget also includes a 20% increase in defense spending, while total government expenditure is expected to be 7% lower year-on-year, reflecting fiscal consolidation goals tied to IMF negotiations.
The proposed budget will be debated in parliament before final approval.
Pakistan to raise defense spending by 20% in FY26 amid tensions with India
- Pakistan unveils $62 billion budget, a 7% decrease in overall spending, debt servicing to consume half of total spending
- Budget reflects attempt to balance security concerns with ongoing fiscal reform efforts under $7 billion IMF loan program
ISLAMABAD: Pakistan will increase defense spending by more than 20% in the 2025-26 fiscal year to Rs2.55 trillion ($9.04 billion) as it seeks to bolster military capabilities following the country’s worst confrontation with India in nearly three decades.
The move comes as the government unveiled a Rs17.57 trillion ($62 billion) federal budget on Tuesday, reflecting a 7% decrease in overall spending compared to the current fiscal year. The largest portion of the budget – Rs8.21 trillion ($29 billion), or nearly half of total expenditures – will go toward debt servicing, continuing to strain Pakistan’s fiscal space.
“National defense is the most important priority of the government,” Finance Minister Muhammad Aurangzeb said while presenting his first full-year budget in the National Assembly. “For this national duty, Rs2,550 billion [$9.04 billion] will be allocated.”
Pakistan’s defense budget for the outgoing fiscal year stood at Rs2.12 trillion ($7.44 billion). The increase comes weeks after a four-day military standoff with India in May, which erupted following an attack in Indian-administered Kashmir that left 26 Hindu pilgrims dead. New Delhi blamed Pakistan-backed militants, a charge Islamabad denied.
The two nuclear-armed neighbors exchanged missile, drone, artillery, and air strikes before agreeing to a ceasefire on May 10.
Aurangzeb said the budget was being presented “at a very important and historic moment when the nation in recent days showed extraordinary unity, determination and strength.”
“After the Pak-India war, India has threatened to block the flow of river water into Pakistan. India is trying to use water as a weapon. I want to make it clear that water guarantees Pakistan’s survival and no hindrance will be tolerated in this respect,” the finance minister added.
Fiscal consolidation under IMF watch
Pakistan remains under a $7 billion IMF loan program approved last year, and the budget reflects an attempt to balance security concerns with ongoing fiscal reform efforts.
The government has set a GDP growth target of 4.2% for the next fiscal year, while aiming to reduce the fiscal deficit to 3.9% of GDP. The economy grew just 2.6% in 2024/25, falling short of its 3.6% target due to weak agriculture and industrial output. Inflation is projected at 7.5%.
In a May 23 statement, the IMF said Pakistan had pledged to maintain fiscal consolidation while safeguarding “social and priority expenditures,” targeting a primary surplus of 1.6% of GDP in 2025/26.
Aurangzeb said the new budget aimed to “change the DNA of our economy” by boosting exports, building foreign exchange reserves, and promoting productivity to avoid recurring balance of payment crises.
Bridging the gap
The government expects total revenues of Rs11.1 trillion ($39 billion), leaving a Rs6.5 trillion ($23 billion) financing gap to be filled through domestic and external borrowing, as well as privatization proceeds. Privatization is expected to bring in Rs87 billion, while Rs106 billion ($376 million) is projected from foreign sources.
The Federal Board of Revenue (FBR) has been tasked with collecting Rs14.1 trillion of the projected Rs19.3 trillion in gross revenue, marking a 19% year-on-year increase.
Under the Public Sector Development Program (PSDP), Rs1 trillion ($3.5 billion) has been allocated, with Rs328 billion ($1.16 billion) earmarked for transport infrastructure projects. The government also set aside Rs113 billion ($399 million) for education and Rs32 billion ($113 million) for health care.
Aurangzeb also announced plans to grow IT exports to $25 billion over the next five years and forecast a rise in workers’ remittances to $38 billion by the end of the current fiscal year.
Mixed reaction from markets
The budget drew mixed reactions from analysts and market participants.
Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., said the proposals prioritized “tax reduction, energy sector changes, and austerity” in line with the last two budgets.
He noted the construction sector was favored, while the auto industry was the most negatively affected.
“On equities, CGT (capital gains tax) remains at 15%, but income from loans will be taxed at 25% to encourage mutual funds to divert their funds toward the equity asset class,” Ghani said.
Amreen Soorani, head of research at Al Meezan Investment Management, said the budget proposals were largely in line with market expectations.
“While there are some discernible disparities in the taxation of various asset classes, the initial reaction from the listed equity market appears to be one of cautious optimism,” she told Arab News.
However, the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents over 200 multinational companies in Pakistan, expressed disappointment, urging the government to overhaul tax structures to improve competitiveness and attract foreign investment.
Pakistan PM urges global powers to take ‘immediate action’ to end Israeli offensive in Gaza
- Over 54,000 Palestinians have been killed since Israel launched its latest military offensive in Oct. 7, 2023
- Pakistan has for decades called for establishment of independent Palestinian state based on pre-1967 borders
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Tuesday urged world powers to take immediate action to end Israel’s military offensive in Gaza, saying he hoped innocent Palestinians would achieve their dream of freedom soon.
Over 54,000 Palestinians have been killed and much of the coastal enclave of Gaza devastated since Israel’s latest air and ground offensive began in October 2023, health authorities in Gaza say.
“The oppression, cruelty and barbarism taking place in Palestine and Kashmir — no matter how much we condemn it, it is not enough” Sharif said while addressing a federal cabinet meeting.
“But I believe this is a very critical time for the global powers to effectively use their influence to ensure a ceasefire in Palestine, because what is happening there is the shedding of innocent Muslim blood — the blood of little girls, children and parents.”
The Pakistani PM added:
“I have strong hope in Allah Almighty, God willing, that the people of Palestine will gain freedom, the people of Kashmir will gain freedom. They have made tremendous sacrifices.”
Pakistan has been calling for a ceasefire and unimpeded humanitarian access to Gaza since the latest war broke out.
Pakistan, which does not recognize Israel, has for decades called for the establishment of an independent Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.
Although nearly 150 countries have recognized Palestine statehood, most major Western powers including the United States, Britain, France, Germany and Japan, have not.
Muslim countries that do not recognize Israel include Pakistan, Saudi Arabia, Iran, Iraq, Syria and Yemen.
Pakistan shares range bound amid uncertainty over budget announcement
- Index recorded intraday high of 970 points and low of 51 points, eventually closing at 122,024, gaining 383 points or 0.32 percent
- Pakistan will unveil annual federal budget, seeking to kickstart growth while finding resources for hike in defense expenditure
ISLAMABAD: The Pakistan Stock Market witnessed a range-bound session today, Tuesday, with the index fluctuating within a narrow band amid uncertainty surrounding the budget announcement.
Pakistan will unveil its annual federal budget for the coming fiscal year on Tuesday evening, seeking to kickstart growth while finding resources for an expected hike in defense expenditure following a military conflict with India last month, the worst between the nuclear-armed neighbors in decades.
Islamabad will also have to contend with remaining within the discipline of its International Monetary Fund program and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market.
“The index recorded an intraday high of 970 points and a low of 51 points, eventually closing at 122,024 — gaining 383 points or 0.32 percent,” brokerage house Topline Securities said in its daily market review.
“Market participation remained healthy, with total traded volume reaching 591 million shares and a traded value of PKR 21 billion.”
Media reports say the government is likely to present a 17.6 trillion rupee ($62.45 billion) budget for the fiscal year beginning July 1, down 6.7 percent from this fiscal year. It has projected a fiscal deficit of 4.8 percent of GDP, against a targeted 5.9 percent deficit in 2024-25, the reports say.
Analysts said they expect an increase of around 20 percent in the defense budget, likely offset by cuts in development spending.
Pakistan allocated 2.1 trillion Pakistani rupees($7.45 billion) for defense in the outgoing fiscal year, including $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defense budget.
The government of Pakistani Prime Minister Shehbaz Sharif has projected 4.2 percent economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7 percent, against an initial target of 3.6 percent set in the budget last year.
Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8 percent and 6.0 percent growth is expected in 2025, according to the Asian Development Bank.
With inputs from Reuters
Pakistan deports over 216,000 illegal migrants since April under ongoing repatriation drive
- The drive against illegal foreigners was launched in November 2023 amid a surge in militancy
- The country has repatriated a total of 1,102,441 illegal foreigners since the deportations began
ISLAMABAD: Pakistan has deported over 216,000 undocumented foreign nationals since April this year as part of a nationwide campaign targeting illegal migrants, mostly Afghan citizens, the country’s interior ministry said on Tuesday.
The repatriation drive, which began in November 2023, was launched in the wake of a spike in suicide bombings and militant activity that Pakistani officials linked to Afghan nationals, though no public evidence was provided to support the claim.
“Since April 1, 2025, a total of 216,103 illegal foreigners have been repatriated and the campaign is ongoing,” the ministry said in its statement.
“Since October 2023, a total of 1,102,441 illegal foreigners have been repatriated under the Illegal Foreigners Repatriation Program,” it added.
Initially, authorities had said the crackdown would focus on those lacking any legal documentation. However, in early 2025, the government expanded the scope to Afghan Citizen Card (ACC) holders, ordering them to leave by March 31 or face deportation starting April 1.
The interior ministry said food and health care arrangements had been made for those in the repatriation process, and that women, children and the elderly are being treated “with dignity and respect.”
It warned that anyone aiding undocumented foreigners with employment or accommodation would also face legal action.
Pakistan has hosted more than 2.8 million Afghan refugees over the past four decades due to prolonged conflict in Afghanistan.
The current deportation campaign has drawn criticism from human rights groups and the Afghan Taliban, who have accused Islamabad of harassment and called for the safe and dignified return of Afghan nationals.
The Pakistani government has denied these allegations, maintaining the repatriation process is being carried out respectfully and in accordance with the law.
