Pakistan scales up measures to get off financial watchdog's grey list

Mohammad Jehanzeb Khan, Chairman Federal Board of Revenue (FBR), speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Karachi on Saturday. (AN photo)
Updated 16 March 2019
Follow

Pakistan scales up measures to get off financial watchdog's grey list

  • Currency declaration systems implemented at airports, advance passenger information system implemented with two airlines, more to follow, FBR chief says
  • New law on ‘benami’ accounts will allow authorities to confiscate properties and bank accounts listed under false titles

KARACHI: The head of Pakistan’s Federal Board of Revenue (FBR) on Saturday outlined measures the country is taking to try and get off the grey list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations.

The Financial Action Task Force (FATF) added Pakistan to the list last June, making it harder, in theory, to access international markets and bringing extra scrutiny from regulators and financial institutions that could potentially chill trade and investment and increase transaction costs.
FATF will review its decision to keep, or remove, Pakistan on the grey list in May this year.

“We have implemented currency declaration systems at airports of the country,” FBR chairman Mohammad Jehanzeb Khan said while speaking at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday. “Measures have reduced the smuggling of currency to a large extent.”

He said an “advance passenger information system” had been implemented with two airlines, namely Pakistan International Airlines and Emirates, and would be extended to other airlines soon.

“We will get information on suspected passengers 4-5 hours before they travel, that would give us enough time to investigate,” he said.

Pakistan is also under investigation for “benami accounts,” or accounts opened in other people’s names ostensibly to dodge taxes. But the FBR chief said the government had implemented the Benami Transaction (Prohibition) Act 2017 earlier this week which would allow authorities to confiscate benami properties and bank accounts.

“The law has been implemented, which is very clear that any benami account and properties registered would be confiscated,” Khan said.

The FBR chief said Pakistan was now PKR 220 million behind its tax target, which was still 14 percent higher than the last fiscal year. The PKR 4.8 trillion revenue collection target would be recovered in the remaining four months of the current fiscal year, Khan said.

Pakistan’s active taxpayers list contains only 1.63 million taxpayers out of a population of 208 million.

“The process of digitalizing the data is underway and in some cases we have detected the cases where the lifestyle of person does not match with the tax documents filed,” Khan said. “Data of 6,000 plus people as a test case has be collected and notices issued. We generated the demand of PKR 3 billion, and PKR 2 billion has been recovered. Such cases are in the hundreds of thousands.”


In Pakistan’s Bannu, people start their day with a sugar rush

Updated 5 sec ago
Follow

In Pakistan’s Bannu, people start their day with a sugar rush

  • While much of Pakistan favors savory breakfasts, residents of Bannu prefer a sweet, caramelized halwa
  • People line up before sunrise at the decades-old Speen Sar restaurant to cherish its signature dish

BANNU, Pakistan: Before sunrise, the narrow lane outside Speen Sar, a modest restaurant, fills with customers waiting for halwa, a dense sweet made from wheat starch, sugar and clarified butter, that serves as breakfast for many people in this northwestern city.

Inside the restaurant’s kitchen, the morning air is thick with the scent of caramelized sugar and heated ghee. A chef leans over a large metal vat, dissolving sugar into the hot fat before adding a slurry of flour and water. With rhythmic, heavy strokes, he stirs the mixture until it thickens into a glossy halwa.

He pours the sweet onto a tray and rushes toward the counter, where a crowd of patrons has already gathered. Three cooks work in quick succession to keep pace with demand, turning out batch after batch during the breakfast rush in Bannu, a city in Pakistan’s Khyber Pakhtunkhwa province.

While halwa is widely eaten as a dessert or festival sweet across South and Central Asia and the Middle East, Bannu stands apart for turning it into a morning staple. Across most of Pakistan, breakfast tends to be savory, typically consisting of omelets, parathas or puris, and in some places nihari, a slow-cooked meat stew. Here, however, halwa is not a side dish but the meal itself, eaten plain or with bread before the workday begins.

“We open the shop at the time of morning prayer, and after prayer, we start preparing,” says Zahid Khan, whose grandfather Akbar Ghulam opened the restaurant over six decades ago.

The shop’s name, Speen Sar — Pashto for “white-haired man” — dates back to its earliest days. Khan said the business began as a small stall run by his grandfather. As he grew older and his hair turned white, customers began directing others to the “speen sar” shop, the place where the white-haired man sold halwa. The nickname endured, eventually becoming the shop’s official identity.

Speen Sar relies on a labor-intensive process of extracting starch from wheat flour.

“In our halwa, we use ghee, sugar, flour and other ingredients. From the flour, the starch that comes out is what we use to make the halwa,” Khan explained before examining the cooking process in his kitchen.

Bannu sits at the crossroads between Pakistan’s former tribal areas and the settled plains of the northwest, and the halwa shop serves as a rare social equalizer, drawing laborers, traders, students and travelers to the same counter each morning. For many passing through the city, stopping for halwa is not optional.

“Whenever I come from Waziristan ... the first thing I do is start with halwa,” says Irafullah Mehsud, an expatriate worker. “I eat the halwa first, and only then move on to other things.”

The popularity of the dish is partly due to its shelf life and to what the owners call good quality. At Rs500 ($1.80) per kilogram, it is an affordable luxury as well.

“Our halwa is widely consumed with breakfast, and it does not spoil quickly. If you want, that you will eat it tomorrow, you can even set some aside for the next day,” Khan said, pointing to a tray of nishasta halwa, a variety made by extracting wheat starch before cooking.

While the region offers variations including sohan halwa, milk-based recipes, and carrot-infused batches, this halwa offered by Speen Sar remains the undisputed king of the breakfast table in this city.

“This is a tradition of the people of Bannu. Early in the morning, everyone eats it and comes here,” says Razaullah Khan, a student at a local college. “Eating halwa is a common practice here ... but this one is the most popular. People eat it for breakfast.”

For the elders of the city, the habit is as much about routine as it is about flavor.

“This tradition has been going on for the past forty to fifty years ever since I can remember,” says Sakhi Marjan, a local elder in his late sixties. “We first come to the Azad Mandi market and then come here to eat halwa. We really enjoy this halwa. It is delicious.”

As the sun rises over Bannu, this ‘sweet’ trade shows no sign of slowing. For those like Gul Sher, a regular from Jani Khel, a town in a neighboring tribal district, a day without the local sweet is a day started wrong.

“As soon as I step into Bannu, I start my day with halwa. After that, the rest of the day goes well,” Sher said before finishing his plate of halwa.

“It is a sweet dish, and it makes the day better. It is a good thing.”