ISLAMABAD: Pakistan’s tax-to-GDP ratio rose to 10.8% in the second quarter of the 2024-25 fiscal year, a statement from the Senate Standing Committee on Finance and Revenue said on Thursday, below the target of 13.6% agreed with the International Monetary Fund (IMF) when it approved a $7 billion bailout loan for the cash-strapped country last year.
The South Asian nation is navigating a challenging economic recovery path buttressed by the 37-month loan program that comes with tough measures especially on the taxation front, such as broadening the tax base to include previously undertaxed sectors such as agriculture, industrialists, and developers, abolishing exemptions and bringing the retail, agriculture, and export sectors into the normal income tax regime and imposing new taxes on the construction and sale of buildings and plots, and on milk and lubricating oil.
The bailout has also called for increasing the tax rate on farm income, continuing fiscal consolidation to reduce the deficit and improve fiscal discipline, improving tax administration and compliance, strengthening federal-provincial institutional arrangements and improving public investment management.
“The tax-to-GDP ratio has risen to 10.8% in the second quarter [of FY24-25], up from 9.5% in the first quarter, although it remains below the IMF-agreed target of 13.6% by the end of the program,” said a press release after the Senate Standing Committee on Finance and Revenue met on Thursday. “By comparison, India’s tax-to-GDP ratio stands at 18%.”
During the meeting, the committee was briefed on Pakistan’s current revenue shortfall of Rs384 billion for the first half of the fiscal year. The FBR collected Rs5,624 billion in taxes, falling short of the targeted Rs6,008 billion.
Senator Saleem Mandviwala, the chair of the committee, expressed concerns over the Federal Bureau of Revenue’s handling of sales tax collection.
Finance Minister Muhammad Aurangzeb responded by highlighting ongoing reforms, including a move to simplify income tax forms for salaried individuals and a push for transparency in tax collection through technological innovations.
Aurangzeb also discussed the government’s intention to separate tax policy from FBR operations in the next financial year, aiming to ease the burden on the salaried class.
“We are taking steps to keep the tax form simple and easy,” he added.
The committee also stressed the need for reforms to reduce the administrative burden on taxpayers while ensuring that tax collection remained “efficient and fair.”
The possibility of converting certain taxes into a carbon tax, a proposal raised by Senator Sherry Rahman, was also discussed.
“While the finance minister acknowledged the World Bank’s 10-year $20 billion Country Partnership Framework, which includes climate and carbon concerns, some members, including Senator Farooq H. Naik, raised concerns about the impact of a carbon tax on inflation and its effect on the poor,” the statement said.
Under the IMF deal, the highest effective tax rate on farm income can rise to as much as 45% from the current 15%. It will be implemented from this year, a move that was termed “unprecedented” by brokerage and investment banking firm JS Global at the time the loan was approved last year.
“These changes could contribute to inflation, particularly in food prices, affecting consumers nationwide,” said Ghasharib Shaokat, head of product at Pakistan Agriculture Research, adding that larger farmers will be affected more.
Inflation averaged close to 30% in FY23 and 23.4% in FY24, which ended on June 30. The consumer inflation rate slowed to 4.1% year on year in December, the lowest in more than 6.5 years.
Prime Minister Shehbaz Sharif’s government is based on a weak coalition and faces political pressure from the party of popular jailed opposition leader, former premier Imran Khan.
But Sharif says his government is committed to the tough but unavoidable reforms mandated by the IMF.
Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958.
Pakistan tax-to-GDP ratio rises 10.8% in FY25 second quarter, below IMF target
https://arab.news/jcu23
Pakistan tax-to-GDP ratio rises 10.8% in FY25 second quarter, below IMF target
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- Pakistan navigating challenging economic recovery path buttressed by $7 billion IMF program that comes with tough measures
- Senate Standing Committee of Revenue expresses concerns over Federal Bureau of Revenue’s handling of sales tax collection
Miandad’s six to Jadeja blitz: Six great India-Pakistan ODIs
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- India and Pakistan renew their storied rivalry in the most hotly-anticipated Champions Trophy match in Dubai on Sunday
- Javed Miandad’s last-ball six at the desert venue arguably remains the most dramatic ODI outcome between the two sides
DUBAI: Cricketing powerhouses India and Pakistan renew their storied if rare rivalry in the most hotly-anticipated match of the 2025 Champions Trophy in Dubai on Sunday.
AFP Sport looks back at six memorable ODI matches between the bitter rivals ahead of their latest clash.
Javed Miandad’s last-ball six at the desert venue arguably remains the most dramatic ODI outcome between the two sides as Pakistan clinched a one-wicket victory.
Pakistan needed 246 to win in 50 overs and Miandad walked in at 61-3 to hit an unbeaten 116 off 114 balls.
With four needed off the final delivery, Indian fast bowler Chetan Sharma bowled a full toss and Miandad blasted the ball into the crowd to trigger wild celebrations among the Pakistan team and fans.
Miandad was later presented with a golden sword for his heroics.
Imran Khan’s best bowling figures of 6-14 were in a one-day international against India but for the flamboyant Pakistan fast bowler it was all in vain.
Imran ripped through the Indian batting line-up at Sharjah to send the opposition packing for 125.
But Pakistan’s own batting imploded, skittled for just 87 with Ramiz Raja, top-scorer with 29, one of only four batsmen in double figures.
India’s Ajay Jadeja blasted a 25-ball 45 in a late blitz that helped India knock out holders Pakistan in a highly-charged World Cup quarter-final.
Jadeja was severe on Pakistan’s Waqar Younis as he hit the pace bowler for four fours and two sixes in the final few overs to propel the total to 287-8.
In reply, Pakistan were sailing along when opener Aamir Sohail smashed India’s Venkatesh Prasad for a boundary before sledging his opponent.
But Venkatesh got the left-handed batsman bowled on the next ball to bring the house down and Pakistan lost their way to lose by 39 runs.
Sourav Ganguly hit a match-winning century to trump Saeed Anwar’s 140 in a deciding best-of-three final of Bangladesh’s Silver Jubilee Independence Cup in Dhaka.
Ganguly’s knock of 124 was laced with 11 fours and one six as India chased down their victory target of 315 with one ball to spare.
The left-handed Ganguly was named man of the match but lesser-known Hrishikesh Kanitkar stole the show in the end when India needed three on the final two balls and he hit a boundary on the penultimate delivery.
The chase was a world record at the time.
Sachin Tendulkar won many matches for India but his 98 against Pakistan at the 2003 World Cup remains special due his duel with fast bowler Shoaib Akhtar.
Tendulkar stood tall in his 75-ball knock that guided India in their chase of 274 against a Pakistan bowling line-up boasting Wasim Akram, Waqar and Akhtar.
He uppercut one of Akhtar’s express deliveries to a delightful six over third man — a shot that became iconic in Tendulkar’s career.
Akhtar later got Tendulkar’s wicket but the damage had been done and India won by six wickets.
Pakistan came in as underdogs in the Champions Trophy final, but stunned India by 180 runs, riding on a sparkling century by Fakhar Zaman.
Zaman’s 114 off 106 balls and a 128-run opening stand with Azhar Ali guided Pakistan to a mammoth 338 for four and deflated Virat Kohli’s India at The Oval.
The left-hander clobbered the Indian attack, including fast bowlers Bhuvneshwar Kumar and Jasprit Bumrah, hitting 12 fours and three sixes.
Pakistan’s bowlers then came out firing and dismissed India for just 158 in 30.3 overs despite Hardik Pandya’s 76. Fast bowler Hasan Ali took 3-19.
Game changer: Football camps revive outdoor activities for children in Islamabad
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- Parents say the camps provide outlets for physical activity, social engagement to the ‘tablet generation’
- Football coaches stress the importance of making it possible for children to participate in sports
ISLAMABAD: Six-year-old Soha Noon darts across the lush green field, her hair swaying with each determined stride. Amid the lively cheers at Islamabad’s Spanish Football Academy, her enthusiasm mirrors a growing trend: an increasing number of Pakistani children, including young girls, embracing football with passion and dedication.
This surge in interest is the result of efforts by individuals like José Alonso, a FIFA-certified coach and founder of the training camp in Islamabad. Alonso, who first visited Pakistan in 2005, recalls that physical education was not taken seriously in local schools, leading to a sedentary lifestyle with long-term consequences for people’s physical and mental well-being.
Football camps, he noted, provide an essential outlet for physical activity and social engagement, ensuring that children develop critical life skills.
“This is the tablet generation,” he said in a conversation with Arab News. “They were born into technology. Children hardly spend any time playing outdoors, which impacts their physical development and emotional well-being. Increased screen time and changes in diet can have lasting effects.”
“We want to teach children essential life skills through play, helping them develop psychomotor skills, teamwork, camaraderie, resilience and decision-making abilities,” he added.
Alonso’s academy offers professional training facilities and expert coaching for children aged five and above, incorporating fitness, diet awareness and character-building sessions into their programs.
“Football, basketball and handball require strategic thinking and transitions between defense and offense,” he said. “These games help children develop both physically and mentally. Parents can also encourage outdoor activities like trekking and walking to complement these efforts.”
Alonso believes structured training programs like his academy’s are pivotal in channeling this enthusiasm into real opportunities for young players.
“We work with the vision of nurturing young talent and instilling strong morals and values,” he added.
Faizan Sameer, founder of Football Factory in the capital, said training facilities such as the one he manages offer children the chance to pursue their dreams and hone their skills.
“When I was growing up, we didn’t have many opportunities, especially when it [came] to the underage [sports] programs,” he said. “Whether [the children] go pro or not, that doesn’t matter. But the platform should be there for [them] to achieve their dreams and pursue what they really love to do.”
He concurred with Alonso that screen time was a “big problem,” taking its toll on children’s attention spans.
“If you talk to [them], you would hardly find a kid who could listen to you for one minute or two minutes,” he said. “I believe there’s a strong sentiment that this is happening because of the screen time that is being given to the kids.”
Football may not yet rival cricket in Pakistan’s sports scene, but its popularity surges whenever the FIFA World Cup comes around. The country’s sports buffs passionately follow international teams, each rooting for their favorites.
Beyond fandom, Pakistan has also seen its own success stories in the game. The country’s street football team has performed remarkably well internationally, with a notable performance at the 2024 Norway Cup, where they reached the quarter-finals, defeating Norway’s Kasterndam Club 3-1.
The football camps in Islamabad say they are trying to inspire children and nurture their talent in the sport by providing them with structured training.
“I love playing football the most because it’s my favorite game,” young Soha said before starting her practice at the Spanish Football Academy. “I’ve been playing with a ball since I was a baby.”
Her father, Taimur Noon, shares her enthusiasm, saying he strongly believes his daughters should have the opportunity to participate in sports.
“I don’t have anything against screens,” he said. “I feel like it’s important for [children’s] development and education as well. But I feel like this is a big component that a lot of parents should focus on to help their children be connected to nature and outdoors for their well-being.”
An entrepreneur, Noon emphasized that playing football at the academy allows children to interact with peers from diverse backgrounds.
“It helps them interact with different kids from different backgrounds, with different sorts of qualities that they can obviously learn from and sort of adapt with and grow into a more diverse personality,” he continued. “When Soha converses with them, when she talks with them … she learns a lot, different cultures, different languages.”
PCB seeks ICC clarification over omission of Pakistan’s name in Champions Trophy broadcast — media
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- The incident happened during the live broadcast of match between India and Bangladesh in Dubai
- ICC has reportedly assured PCB authorities future broadcasts will not have the same ‘technical error’
ISLAMABAD: The Pakistan Cricket Board (PCB) has formally approached the International Cricket Council (ICC) seeking an explanation for the omission of the country’s name from the Champions Trophy branding during the live broadcast of the match between India and Bangladesh in Dubai, as reported by ESPN Cricinfo on Friday.
The tournament, being staged after a hiatus of eight years, is the first major ICC championship in Pakistan since the country hosted the 1996 ODI World Cup. During the broadcast of the game in Dubai, the logo displayed in the top-left corner featured the event name, Champions Trophy 2025, but omitted the host nation’s name, Pakistan, prompting the PCB’s response.
“The ICC is believed to have informally told PCB it was an early technical error, [but] the explanation has left PCB dissatisfied,” ESPN Cricinfo reported. “Graphics are prepared and provided to the live ICC feed well in advance; that Pakistan’s name was on the logo for the opening game of the tournament has left PCB unconvinced over why the issue arose for the game between Bangladesh and India.”
The ICC has assured that future broadcasts will not have the same issue, regardless of whether matches are played in Pakistan or the United Arab Emirates.
The championship’s hybrid model was established after the Board of Control for Cricket in India (BCCI) informed the PCB that the Indian government would not permit its team to play in Pakistan, leading to an agreement where India’s matches are held at neutral venues.
India will now face Pakistan in a highly anticipated match on Sunday in Dubai.
For Pakistan, the encounter is crucial to maintain their chances of advancing in the tournament, especially after a 60-run defeat to New Zealand in the opening match held at the National Stadium in Karachi.
Pakistan PM prioritizes youth skill development for global employment to boost remittances
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- Shehbaz Sharif says professional training should be in line with local and international market needs
- He assures the National Vocational and Technical Training Commission of all necessary funding
ISLAMABAD: Prime Minister Shehbaz Sharif said on Friday his administration aims to equip young people with professional skills aligned with international market demands while presiding over an inter-ministerial review meeting focused on youth workforce training.
Remittances from overseas Pakistanis, particularly those in the Middle East, are a cornerstone of the national economy, bolstering the country’s external account. According to central bank data, during July to January of fiscal year 2025, workers’ remittances reached $20.8 billion, a 31.7 percent increase from $15.8 billion in the same period of the previous fiscal year.
As Pakistan strives to recover from the impact of a prolonged economic crisis, the government plans to boost exports, attract foreign investment and send more skilled workers abroad to enhance remittance inflows.
Efforts are underway to produce more health care professionals and information technology experts to meet international market needs.
“Pakistan’s talented workforce is the nation’s true asset,” the prime minister said during the meeting. “Equipping Pakistani youth with internationally demanded professional skills is among the government’s top priorities.”
He emphasized increasing the number of institutions offering nursing training in Pakistan whileee ensuring that courses align with global standards.
“Professional training for youth in various sectors should consider the needs of industries and both local and international markets,” he added.
Sharif assured the National Vocational and Technical Training Commission (NAVTTC) would receive all necessary funding to facilitate youth training programs.
The meeting was told NAVTTC had provided professional training to 60,000 youths across various sectors, including IT, this year.
The organization aims to train an additional 141,000 individuals by June 2025, with plans to train 250,000 in 2026 and 337,000 in 2027.
Pakistani security forces kill six militants in northwest
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- The forces carried out the intelligence-based operation in Karak District in Khyber Pakhtunkhwa
- Violence by TTP militants, suspected to be based in Afghanistan, has surged in the province
ISLAMABAD: Pakistani security forces killed six militants in an operation in the northwest, the military’s media wing, Inter-Services Public Relations (ISPR), said on Friday.
The operation was conducted in Karak District in Khyber Pakhtunkhwa province. The region has seen a surge in militant violence since a ceasefire between the government and the banned Tehreek-e-Taliban Pakistan (TTP) collapsed in late 2022.
Pakistan refers to TTP fighters as “khwarij,” a term historically used for a radical sect in early Islam known for rebelling against authority and declaring other Muslims as apostates.
“On 21 February 2025, Security Forces conducted an intelligence-based operation in Karak District, on reported presence of Khwarij,” the ISPR said. “During the conduct of operation, own troops effectively engaged the khwarij location, resultantly, six khwarij were sent to hell.”
The statement added a “sanitization operation” was underway to eliminate other militants in the area, emphasizing that Pakistan’s security forces are determined to eradicate extremist violence from the country.
Pakistan has accused the TTP of orchestrating cross-border attacks on its forces and civilians, alleging that these militants are facilitated by elements within Afghanistan. However, Kabul has consistently denied such allegations.