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Pakistan’s finance chief pushes tax reforms matching IMF guidelines following budget presentation

Pakistan’s finance chief pushes tax reforms matching IMF guidelines following budget presentation
A salesman uses his mobile phone as he sits under a television screen displaying the live broadcast of Pakistan Finance Minister Muhammad Aurangzeb presenting the 2024/25 budget, at an electronics market in Karachi, Pakistan June 12, 2024. (REUTERS)
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Updated 13 June 2024
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Pakistan’s finance chief pushes tax reforms matching IMF guidelines following budget presentation

Pakistan’s finance chief pushes tax reforms matching IMF guidelines following budget presentation
  • Muhammad Aurangzeb says the government is striving to digitize tax system for improved revenue collection
  • He says that he wants to take the country to a more sustainable tax-to-GDP ratio in the next three to five years
Updated 13 June 2024
Muhammad Ibrahim
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ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb emphasized on Wednesday it was crucial to widen the tax net by removing the “non-filer category” after presenting the first federal budget of the newly elected Pakistani administration which he said was in line with the International Monetary Fund (IMF) requirements.
The non-filer category includes those individuals or entities who, despite earning taxable income, do not file returns and refuse to be formally documented or contribute to the tax base as required.
Pakistan has faced significant challenges with tax evasion and a low ratio of tax filers compared to its population. A considerable number of potential taxpayers either avoid taxes altogether or do not file their returns, which leads to substantial revenue losses for the government.
Speaking to Pakistan’s Geo TV, Aurangzeb said he wanted to take the country to a sustainable tax-to-GDP ratio in the next three to five years.
“I don’t understand this term of non-filer,” he said. “This is the only country where there is a category of non-filers. What is a non-filer? Either you are paying taxes and you are on the active tax list or you are not.”
“The eventual end goal is that we have to eliminate this non-filer category from this country,” he added.
The government has set an ambitious revenue collection target of Rs13 trillion, which comes to about $47 billion, in the next fiscal year raise the overall tax-to-GDP ratio of 9.5 percent.
The minister said the budget had introduced punitive measures for those who refused to file taxes so they thought twice before refusing to bring their income on record.
Asked about the enforcement of tax reforms, he said the government was striving to digitize the whole system.
“The end-to-end digitization will help us with several things,” he said. “Why don’t people want to come into the [tax] net? They are afraid of being harassed. They think they will not be treated properly. The more we remove the human intervention in FBR [Federal Board of Revenue], that is the way to create trust and earn trust.”
Aurangzeb said the government had decided to treat health, education and agriculture as priority sectors and protected the salaried class.
However, he reiterated that the government’s aim was to move a direction where everyone was contributing to the national economy.

Topics: mobile phones Finance Minister Muhammad Aurangzeb Pakistan Budget 2024-25

Pakistan court grants bail to Imran Khan’s wife in state repository case

Pakistan court grants bail to Imran Khan’s wife in state repository case
Updated 26 min 41 sec ago
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Pakistan court grants bail to Imran Khan’s wife in state repository case

Pakistan court grants bail to Imran Khan’s wife in state repository case
  • Bushra Bibi faced the allegation of illegally retaining an expensive jewelry set from a state repository
  • Islamabad High Court orders her release against a surety bond of Rs1 million after hearing the case
Updated 26 min 41 sec ago
Hasaan Ali Khan

ISLAMABAD: The Islamabad High Court on Wednesday approved bail for former Prime Minister Imran Khan’s wife, Bushra Bibi, in a case involving allegations of illegally retaining a jewelry set from a state repository, though it remains unclear if she will be released from prison.
Both Khan and his wife are currently in jail on multiple charges, including the illegal sale of gifts worth more than 140 million rupees ($501,000) received during his 2018-2022 premiership from a state treasury known locally as the “Toshakhana.”
The case, also referred to as the new Toshakhana reference, pertains to a jewelry set comprising a ring, bracelet, necklace and earrings gifted to the former first lady by a foreign dignitary. The couple allegedly undervalued the set and retained it at a lower price.
A single-member bench headed by Justice Mian Gul Hassan Aurangzeb took up Bibi’s bail petition earlier in the day and approved it against a surety bond of Rs1 million ($3,600).
“For detailed reasons to be recorded, the instant petition is accepted and the petitioner is admitted to post-arrest bail subjecting to her furnishing bail bonds in the sum of Rs1,000,000 with two sureties in the like amount to the satisfaction of the learned trial court,” Justice Aurangzeb stated on Wednesday.
Khan and his wife, already in prison at the time, were re-arrested on July 13 shortly after a district and sessions court ordered their immediate release, having accepted their appeals in another case against a ruling that they had violated the country’s marriage law.
The couple had been sentenced to seven years in prison and fined in February by a court that ruled their 2018 marriage violated the law. Bibi was accused of not completing the waiting period mandated by Islam, called “Iddat,” after divorcing her previous husband and marrying Khan.
At that point, two of Khan’s convictions had been suspended by the court, and he had been acquitted in the third, leaving the Iddat case as the only one keeping him in prison.
However, hours after the local court’s verdict in their favor, the new Toshakhana case was filed by Pakistan’s National Accountability Bureau, and the former prime minister and his wife were re-arrested, ruling out the possibility of their release from jail.
Khan’s convictions had already disqualified him from the February 8 general elections, as convicted people cannot run for public office under Pakistani law.
Arguably the country’s most popular politician, he claims all cases against him are politically motivated to keep him out of politics.

Topics: Bushra Bibi Imran Khan PTI Pakistan

Pakistan’s finance chief discusses trade, investment with Saudi counterpart in Washington

Pakistan’s finance chief discusses trade, investment with Saudi counterpart in Washington
Updated 23 October 2024
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Pakistan’s finance chief discusses trade, investment with Saudi counterpart in Washington

Pakistan’s finance chief discusses trade, investment with Saudi counterpart in Washington
  • Saudi minister shares kingdom’s energy sector reform experience with Muhammad Aurangzeb
  • The officials from both countries agreed to advance cooperation in areas of mutual interest
Updated 23 October 2024
Arab News Pakistan

ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Tuesday discussed trade and investment with his Saudi counterpart, Mohammed Aljadaan, during a meeting in the United States, according to an official statement.
The Pakistani minister is currently in Washington, DC, attending the annual meetings of the World Bank and the International Monetary Fund (IMF), where other global finance leaders have also gathered.
Last month, the IMF approved a fresh $7 billion bailout package for Pakistan after recognizing the government’s efforts to implement stringent economic reforms, saying they had contributed to gradual financial stability.
Saudi Arabia, along with other friendly nations such as China and the United Arab Emirates, played a key role in helping Pakistan secure the new IMF loan, which the Islamabad administration deemed essential for further macroeconomic stability.
“Finance Minister, Mr. Muhammad Aurangzeb, met with his Saudi counterpart, H.E. Mohammed Aljadaan, on the sidelines of the World Bank-IMF Annual Meetings in Washington DC,” the Finance Division announced. “Appreciating the historical, fraternal bonds between Pakistan and the Kingdom of Saudi Arabia, the two Ministers resolved to further deepen mutually beneficial economic ties, enhance bilateral trade, and facilitate investments in key sectors.”
“The Saudi Minister also shared his experience of reforms in the energy sector,” the statement continued. “Both sides agreed to advance cooperation in areas of mutual interest.”
Pakistan has actively sought to attract foreign investment while aiming to boost trade with its allies.
In 2023, the government established the Special Investment Facilitation Council (SIFC), a civil-military hybrid body designed to streamline and facilitate foreign business operations, particularly targeting investment from Gulf states.
Alongside these efforts, Pakistan has expressed interest in exporting a larger pool of human resources to the region, enhancing its workforce contribution to the Gulf economies.
Additionally, the country is keen on developing partnerships across various economic sectors, including infrastructure, energy, mining and agriculture, to promote sustainable growth and economic cooperation with its allies.

Topics: Pakistan Saudi Ties

​Pakistan president appoints Justice Yahya Afridi as new Supreme Court chief justice

​Pakistan president appoints Justice Yahya Afridi as new Supreme Court chief justice
Updated 23 October 2024
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​Pakistan president appoints Justice Yahya Afridi as new Supreme Court chief justice

​Pakistan president appoints Justice Yahya Afridi as new Supreme Court chief justice
  • Justice Afridi was third on the seniority list provided to a parliamentary committee that took the decision
  • His appointment was made under the contentious 26th Constitutional Amendment with ‘two-thirds majority’
Updated 23 October 2024
Aamir Saeed

ISLAMABAD: President Asif Ali Zardari on Wednesday appointed Justice Yahya Afridi, the third on the seniority list of judges, as Pakistan’s next chief justice after a 12-member special parliamentary committee selected him a day earlier for the position.
Afridi’s appointment was made by the committee formed under the contentious 26th Constitutional Amendment, which was tasked with choosing one of the three senior-most judges of the Supreme Court to succeed Chief Justice of Pakistan Qazi Faez Isa, who is set to retire on Friday.
The committee also included opposition lawmakers from the Pakistan Tehreek-e-Insaf (PTI) party, who boycotted the proceedings after objecting to the government’s handling of the constitutional amendment, accusing it of encouraging defections and undermining party loyalty.
“In exercise of the powers conferred by clause (3) of Article 175 A read with Articles 177 and 179 of the Constitution of the Islamic Republic of Pakistan, the President of the Islamic Republic of Pakistan is pleased to appoint Hon’ble Mr. Justice Yahya Afraid, Judge of Supreme Court, as Chief Justice of Pakistan, for a term of three years with effect from 26.10.2024,” said a notification circulated by the law ministry.
Among the three senior-most judges considered for the key post, the other two were Justices Mansoor Ali Shah and Munib Akhtar, with the government offering no explanation as to why they were passed over for the position.
The contentious constitutional amendment passed by Prime Minister Shehbaz Sharif’s administration has sparked heated debate in the country, with opposition parties and prominent lawyers alleging that the new law aims to curtail the judiciary’s independence.
The government has rejected these allegations, with several officials stating that the amendment is intended to empower parliament and provide speedy justice to citizens through judicial reforms.
However, lawyers across the country threatened to protest before the adoption of the constitutional amendment if Justice Shah, who was expected to succeed the current chief justice, was not appointed.
These lawyers suspected the government of sidelining Shah due to recent Supreme Court rulings in political cases.
Pakistan’s Planning Minister Ahsan Iqbal, who was part of the parliamentary committee that agreed on Afridi’s appointment, defended the decision, saying it was made through a majority vote.
According to Law Minister Azam Nazeer Tarar, Afridi’s name was chosen by “a two-thirds majority” of the committee members.

Topics: Justice Yahya Afridi Supreme Court of Pakistan Chief Justice of Pakistan

Pakistan’s finance chief seeks greater developing nation role in global financial bodies at G-24

Pakistan’s finance chief seeks greater developing nation role in global financial bodies at G-24
Updated 23 October 2024
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Pakistan’s finance chief seeks greater developing nation role in global financial bodies at G-24

Pakistan’s finance chief seeks greater developing nation role in global financial bodies at G-24
  • Muhammad Aurangzeb urges all development partners to work closely to resolve climate and population issues
  • He also discusses Pakistan’s plan to move toward sustainable growth via structural reforms with senior IMF official
Updated 23 October 2024
SAIMA SHABBIR

ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb on Tuesday emphasized greater representation of developing nations in global financial institutions while attending the G-24 Ministers and Governors Meeting in Washington, DC, according to an official statement.

Aurangzeb is currently in the US to attend the annual World Bank and International Monetary Fund (IMF) meetings, where global finance leaders have convened to address challenges such as sluggish international growth, managing debt distress and financing the transition to green energy.

The G-24 is an intergovernmental group established to coordinate the positions of developing countries on international monetary and financial matters. Pakistan has recently been appointed as the Second Vice Chair of the G-24 Bureau for the fiscal year 2024-25, a position that strengthens its influence in shaping global financial policies affecting developing countries.

“In his intervention, the Minister urged all development partners to work closely together to resolve the pressing issues of climate change, population growth and child stunting faced by developing countries especially Pakistan,” said a statement issued by the Finance Division.

“The Finance Minister also emphasized the need to address issues including high debt burdens on developing countries, need for climate action and greater representation of developing countries in the Bretton Woods institutions,” it added.

Aurangzeb held several meetings with his counterparts from other countries and representatives of international financial institutions, sharing details of the government’s economic reforms along with its plans to tap into global capital markets.

He had a fireside chat with Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, during which Pakistan’s shift from stabilization to sustainable growth through structural reforms was discussed.

The minister highlighted the policy actions taken by the government to restore economic stability, increase tax revenues, make taxation fairer and more efficient and address deep-seated structural distortions to guide the country toward growth.

He also met with a Citibank delegation, briefing them on the energy sector, “right-sizing” efforts within state institutions and outlining the long-term strategy for accessing capital markets.

Topics: G-24 Muhammad Aurangzeb

US declines to comment on PM Sharif’s request for Dr. Aafia Siddiqui’s release

US declines to comment on PM Sharif’s request for Dr. Aafia Siddiqui’s release
Updated 23 October 2024
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US declines to comment on PM Sharif’s request for Dr. Aafia Siddiqui’s release

US declines to comment on PM Sharif’s request for Dr. Aafia Siddiqui’s release
  • PM wrote a letter to President Joe Biden earlier this month, seeking her release on humanitarian grounds
  • A State Department official tells a media briefing he will not ‘get into private diplomatic communications’
Updated 23 October 2024
Arab News Pakistan

ISLAMABAD: The United States on Tuesday declined to comment on Pakistani neuroscientist Dr. Aafia Siddiqui’s case, who is serving an 86-year sentence in an American prison on terrorism charges after Prime Minister Shehbaz Sharif requested her release on humanitarian grounds in a letter to President Joe Biden earlier this month.

The information about the letter emerged last Friday after a state lawyer submitted a copy to the Islamabad High Court, which had recently requested a detailed report on the efforts made by Pakistani authorities to extradite Siddiqui.

A US-trained neuroscientist, Siddiqui married a nephew of Khalid Sheikh Mohammed, a self-proclaimed mastermind of the Sept. 11, 2001, attacks, before being convicted in 2010 on multiple charges, including attempting to kill US soldiers in Afghanistan.

In his letter, Sharif noted that Pakistani officials, during consular visits, had raised concerns about her treatment in prison, expressing fears that she might take her own life.

US State Department Principal Deputy Spokesperson Vedant Patel was asked about the prime minister’s letter during a media briefing in Washington, DC, though he refused to comment on the Biden administration’s response to the issue.

“I certainly wouldn’t get into private diplomatic communications,” he said. “And on the case itself, I would refer to the Department of Justice to speak to any inquiries regarding Dr. Siddiqui’s incarceration.”

Siddiqui’s sister, Fauzia, has taken up her case in the media and has visited her in captivity in the US.

During the hearing, she urged the government to make every effort to bring her back to the country, as the court reviewed the details of how the Pakistani neuroscientist ended up in an American prison.

– With input from AP

Topics: Dr. Aafia Siddiqui Pakistan US Ties Shehbaz Sharif

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