ISLAMABAD: Pakistan on Monday extended the deadline for a tax amnesty scheme in order to encourage residents to declare hidden assets and, in turn, broaden the country’s revenue base.
The deadline for the initiative, which was set to end on June 30, has now been moved to July 3.
In comments to the media on Sunday, Prime Minister Imran Khan’s financial adviser, Dr. Abdul Hafeez Sheikh said that the initiative was to ensure that people had a little more time to take advantage of the scheme.
He said that the government’s tax revenue target was Rs5.55 trillion ($36.80 billion) for the current fiscal year, adding that – as part of the measures to ensure compliance – authorities had lowered the introductory threshold for income tax, in addition to ensuring a clampdown on tax evasion.
The amnesty scheme, introduced in May this year, allows Pakistani citizens, except public office holders and their spouses, to declare hidden assets by paying 4 percent tax on domestic and 6 percent tax on offshore assets.
Recently, PM Khan, who wants to make this scheme a success, urged people to avail the opportunity and avoid being penalized.
Pakistan’s national debt has increased from Rs6,000 billion to Rs30,000 billion in the past decade, with PM Khan and his team terming it as a “debt trap” – one that has compelled the country to keep seeking fresh loans in order to pay the interest for previous ones.
The government, for its part, insists that the economy has been under severe stress because half of the country’s income has been used to repay debts and interests on foreign loans.
In May this year, Pakistan reached an accord with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up fragile public finances and strengthening a slowing economy.
Government urges Pakistanis to come clean with new deadline for tax amnesty scheme
Government urges Pakistanis to come clean with new deadline for tax amnesty scheme
- Date moved from June 30 to July 4 to encourage more people to declare assets
- Take advantage of the opportunity and avoid being penalized, PM Khan says
Pakistan raises fuel prices by Rs55 per liter as Middle East conflict drives oil surge
- Government says adequate fuel stocks in place despite global energy shock
- Oil prices jump from about $78 to over $106 per barrel amid regional conflict
ISLAMABAD: Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Global oil markets have been rattled since coordinated strikes by the United States and Israel against Iran began last week, triggering retaliatory attacks across the region, raising fears of disruption to key energy shipping routes and pushing petroleum prices sharply upward.
The price adjustment in Pakistan was announced after a joint press conference by Finance Minister Muhammad Aurangzeb, Deputy Prime Minister and Foreign Minister Ishaq Dar and Petroleum Minister Ali Pervaiz Malik, who said the government was monitoring international energy markets and domestic supply conditions amid the crisis.
“So, the decision we have made by changing the levy a little bit is that we are going ahead with increasing the price of both fuels, petrol and diesel, by Rs55 ($0.20),” Malik told reporters.
“And as soon as this matter settles, we will revise the prices downward with the same speed and take steps on how to increase people’s income and purchasing power.”
He said Pakistan entered the crisis with “comfortable energy reserves” due to earlier planning but rising global prices had forced the government to adjust domestic fuel rates to maintain supply continuity.
He said international petrol prices had climbed from roughly $78 per barrel on March 1 to around $106.8 per barrel, while diesel prices had risen to about $150 per barrel.
Malik added that the government had taken steps to minimize the burden on consumers, noting diesel plays a critical role in agriculture, transportation and public mobility.
Malik also warned that authorities would take strict action against anyone attempting to hoard fuel or manipulate supply for profiteering.
The minister said Pakistan was working with international partners to secure additional energy supplies, including arrangements with Saudi Aramco and the use of Pakistan National Shipping Corporation vessels to transport crude oil imports.
Finance Minister Aurangzeb said a high-level government committee formed by Prime Minister Shehbaz Sharif had been meeting daily to review developments in global petroleum markets and their potential impact on Pakistan’s economy.
“Pakistan currently maintains adequate energy stocks and macroeconomic stability,” Aurangzeb said, adding that the government’s response was based on preparedness rather than panic.
He said the committee, which includes senior ministers, the governor of the State Bank of Pakistan and other officials, was assessing short-, medium- and long-term implications of the crisis for inflation, foreign exchange reserves and broader economic indicators.
Deputy PM Dar said the regional conflict had significantly disrupted global energy markets, with international petroleum prices rising by as much as 50–70 percent in recent days.
The deputy prime minister added that Pakistan was also engaged in diplomatic efforts aimed at de-escalating tensions and restoring stability in the region.
Petroleum prices will now be reviewed more frequently, potentially on a weekly basis, and any reduction in global oil prices would be passed on to consumers.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
