ISLAMABAD: Pakistan and the United Arab Emirates have agreed to develop better mechanisms to share tax information about Pakistanis investing in the UAE, the chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi said on Saturday, confirming that the tax collecting body had received information about Pakistani citizens who have invested in properties in the Emirates in a bid to conceal illegal wealth.
Under the common reporting system (CRS), which allows for the automatic exchange of banking information between the tax authorities of countries, Pakistan received the data from the Dubai Land Department (DLD) after a three-day meeting between the UAE finance ministry and FBR representatives in Dubai that concluded on October 10.
Zaidi said that the UAE authorities had agreed to cooperate in the sharing of information about Pakistani-owned properties, adding that the two countries would work to revise a 1993 UAE-Pakistan double tax treaty aimed at eliminating fiscal evasion as well as double taxation and additional and indirect taxes.
“The main purpose of our meeting was to develop a uniform and internationally acceptable system of information exchange between UAE and Pakistan... which was not there,” Zaidi said at a joint-presser alongside adviser to the prime minister on finance, Dr. Abdul Hafeez Sheikh, in Islamabad. “This cooperation will provide valuable information to the tax machinery.
UAE authorities could not be immediately reached for comment for this article.
Zaidi said Pakistan also brought up the abuse of a residency permit, called the iqama, which allowed expats to live and work in the UAE. Under UAE law, foreign nationals obtain an iqama on the basis of investment beyond a certain level.
Pakistani tax authorities believe Pakistanis have obtained UAE iqama permits through a Residence by Investment (RBI) initiative in order to park tax-evaded and ill-gotten money in the Emirates.
“We believe that iqama is a visit visa and should not be used as a tax residency substitute,” Zaidi told reporters. “Because when we go for tax information of Iqama holders under the CRS, they [UAE authorities] used to refuse us. After our negotiations, UAE has agreed to correct that position.”
“Now we will have another meeting next month in Islamabad,” Zaidi said.
Islamabad-based economist, Zia Banday, said the UAE’s cooperation with Pakistan on the ease of data exchange would boost its image as a ‘clean’ country.
“It will present us as a clean country... that does not allow dirty money to enter its territory,” Banday said, adding that the move would deter people in Pakistan from evading taxes and moving illegal money to the UAE.
“Pakistan may not get immediate gain by getting its money back tomorrow, but the fear it creates will act as a deterrent for people to follow rule of law,” he said, adding that he hoped the government would expand similar cooperation mechanisms with other countries known to be tax havens around the world.
FBR chief says UAE agrees to share tax information of Pakistani investors
FBR chief says UAE agrees to share tax information of Pakistani investors
- FBR chairman says tax collection body received information about Pakistanis investing in the UAE in a bid to conceal illegal wealth
- Experts say the move could act as a deterrent against tax-evasion and movement of illegal assets
Pakistan’s stock exchange closes at all-time high amid expectations of fresh IMF deal
- Pakistan Stock Exchange closes at all-time high of 67,142.12 points, registering an increase of 594.34 points from Wednesday
- Analysts link recent surge to possibility of Pakistan reaching another bailout agreement with IMF, privatizing national airline
ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed its highest closing in history on Thursday as the benchmark KSE-100 index closed at 67,142.12 points, with analysts linking the recent surge to market expectations of the possibility of a successful deal with the International Monetary Fund (IMF) for another bailout program.
The benchmark index settled at 67,142.12 points on Thursday at the close of trading, registering an increase of 594.34 points or 0.89 percent. This makes it the stock market’s highest closing in history, the previous highest being 66,547.78 points a day earlier.
Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement last Wednesday which would pave the way for the release of $1.1 billion for the cash-strapped South Asian country. Pakistan has expressed its interest in securing a new loan under the Extended Fund Facility (EFF) program with the IMF.
Financial expert and journalist Faseeh Mangi said the Pakistan Stock Exchange is one of the best performers in the world “in a rally that started last year after Pakistan avoided a default.”
“The latest surge is on possible IMF deal, PIA sale,” Mangi wrote on X on Wednesday, referring to the government’s plans to privatize Pakistan International Airlines, its national airline.
Topline Securities’ Deputy Head of Sales Ali Najib said the index had finally breached the 66,000 barrier, saying it could be attributed to “positive vibes from the IMF, rejuvenated foreign interest at historically low valuations and progress on SOE privatization.”
Shehbaz Sharif, who was elected prime minister for a second term earlier this month, faces the daunting challenge of negotiating a long-term financial bailout program with the IMF. Pakistan’s fragile $350-billion economy is in desperate need of external financing to shore up its foreign exchange reserves and escape a looming macroeconomic crisis.
For Pakistan, committing to a new IMF program, however, will mean committing to steps needed to stay on a narrow path to recovery. This would limit policy options to provide relief to a deeply frustrated population and cater to industries that are looking for government support to spur growth.
Inflation touched a high of 38 percent with record depreciation of the rupee currency under Sharif’s last government from April 2022 to August 2023, mainly due to structural reforms necessitated by the IMF program. Pakistan continues to be enmeshed in economic crisis with inflation remaining high, hovering around 30 percent, and economic growth slowing to around 2 percent.
Tickets for Pakistan’s home series against New Zealand to go on sale from tomorrow
- Pakistan will play against New Zealand in Rawalpindi and Lahore venues from April 18-27
- Series will help prepare both sides for the upcoming T20 World Cup 2024 in USA and West Indies
ISLAMABAD: The tickets for Pakistan’s upcoming T20I home cricket series against New Zealand will go on sale from tomorrow, Friday, the Pakistan Cricket Board (PCB) said in a statement on Thursday.
The five-match series is scheduled to be played in Rawalpindi on April 18, 20 and 21 and in Lahore on April 25 and 27.
“In the first phase, the pre-booking of the online tickets will start on Friday at 5pm at pcb.tcs.com.pk,” the PCB said. “The sale of physical tickets along with outlet addresses will be announced in due course.”
The PCB said tickets for the Rawalpindi leg of the matches will be available at a minimum cost of Rs500 ($1.80) and the maximum will be available for Rs7,500 ($26.98) for the VVIP Gallery. Additionally, hospitality seats will be available at a maximum amount of PKR 15,000 ($53.97) except for the first T20I where the hospitality seats will be available for PKR 12,000 ($43.17).
For the Lahore leg, ticket prices start at Rs300 ($1.08) for the general seats while the maximum ticket prices will be Rs6,000 ($21.59) for the fourth T20I while Rs7,000 ($25.19) for the fifth T20I (VVIP Gallery).
The series will be important for both sides as they gear up for this year’s ICC T20 World Cup 2024 which is scheduled to be held in June in the USA and West Indies.
Pakistan will lock horns with arch-rivals India on June 9 for a big-ticket clash at New York.
Pakistani interior minister, KP CM vow to improve coordination amid surge in attacks
- Five Chinese nationals were killed in northwestern Pakistan on Tuesday in a bombing
- Interior minister, KP chief minister vow to bring perpetrators of attack to justice
ISLAMABAD: Pakistan’s interior minister and Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur on Thursday vowed to strengthen coordination between the center and the province to improve the law-and-order situation, the KP CM’s office said, amid a surge in terror attacks in the province.
Interior Minister Mohsin Naqvy arrived in Peshawar to meet Gandapur on Thursday to review the province’s law and order situation two days after five Chinese nationals and their Pakistani driver were killed in the country’s volatile northwest.
The incident took place in KP’s Shangla where a bomber rammed his explosive-laden car into the vehicle of Chinese engineers and construction workers on Tuesday.
The attack occurred in an area vital to the China-Pakistan Economic Corridor (CPEC), which encompasses various mega projects crucial for Pakistan’s economy. The victims were en route to Dasu Dam, Pakistan’s largest hydropower project, when they were targeted.
“To improve the law-and-order situation in the province, both agreed to improve the coordination between law enforcement institutions on the federal and provincial levels,” a statement from the KP chief minister’s office said.
The two condemned the attack on the Chinese nationals and expressed their condolences to Beijing and the families of those who had been killed in the attack.
“The two expressed their resolve to bring all those involved in the incident to justice and put an end to terrorism,” the statement said.
Gandapur said it was his government’s top priority to ensure law and order in the province and to safeguard people’s lives.
Pakistan’s foreign office said on Thursday that Islamabad had enhanced the security of Chinese nationals after the attack.
Foreign Office Spokesperson Mumtaz Zahra Baloch said both Pakistani and Chinese governments were in contact after the tragic incident on March 26, adding they were fully committed to bringing the terrorists, along with their facilitators and abettors, to justice.
No group had claimed responsibility for the attack but suspicion was likely to fall on separatists and the breakaway Gul Bahadur faction of the Pakistani Taliban, known as Tehreek-e-Taliban Pakistan or TTP.
The TTP is a separate group, but a close ally of the Afghan Taliban.
The TTP denied being behind the suicide bombing in a statement Wednesday, saying: “We are in no way related to the attack on the Chinese engineers.”
Tuesday’s attack came less than a week after Pakistani security forces killed eight Balochistan Liberation Army separatists who opened fire on a convoy carrying Chinese citizens outside the Chinese-funded Gwadar port in the volatile southwestern Balochistan province.
Pakistan says security of Chinese nationals enhanced after deadly attack
- Pakistan’s foreign office says the government fully understands Chinese security concerns after the attack
- It points out Pakistan has built a fence, introduced one document regime to secure its border with Afghanistan
ISLAMABAD: Pakistan’s foreign office said on Thursday the government has further enhanced the security of Chinese nationals only days after a deadly suicide bombing killed five of them along with their Pakistani driver in the country’s volatile northwest.
The incident took place in Shangla, located in Khyber Pakhtunkhwa province, where the bomber rammed his explosive-laden car into the vehicle of Chinese engineers and construction workers on Tuesday.
The attack occurred in an area vital to the China-Pakistan Economic Corridor (CPEC), which encompasses various mega projects crucial for Pakistan’s economy. The victims were en route to Dasu Dam, Pakistan’s largest hydropower project, when they were targeted.
“I can reassure you that Pakistan has further enhanced the security of Chinese nationals,” foreign office spokesperson Mumtaz Zahra Baloch told reporters in a weekly media briefing in Islamabad.
She said both Pakistani and Chinese governments were in contact after the tragic incident on March 26, adding they were fully committed to bringing the terrorists, along with their facilitators and abettors, to justice.
“At this point, we are focusing on investigating the terror attack and ensuring that the dead bodies of the deceased are transported to their home country,” she added. “This is the first priority at this stage.”
Asked about the security concerns raised by the Chinese officials following the attack, Baloch said the Pakistani government fully understood their concerns.
“We are engaged with the Chinese officials at very senior level to discuss the arrangements for the safety of Chinese nationals and for the investigation of this particular terror incident,” she informed.
The foreign office spokesperson said Pakistan would continue to work with the Chinese authorities to ensure the safety and security of Chinese nationals, projects and institutions in Pakistan.
“We have no doubt that the … terror attack [in Shangla] was orchestrated by the enemies of Pakistan-China friendship and together, we will resolutely act against all such forces and defeat them,” she emphasized.
In response to a question regarding Defense Minister Khawaja Muhammad Asif’s statement regarding the necessity for stronger border controls between Pakistan and Afghanistan, she clarified he was elaborating measures already taken by Pakistan to regulate travel between the two neighboring countries.
“Pakistan-Afghanistan border is an important border, and Pakistan has, over time, taken several measures to secure the border, including erecting a fence along the border,” she continued.
“Pakistan has also introduced one document regime under which individuals can travel to Pakistan on the basis of valid visas on their passports,” Baloch added.
Pakistan’s top court conditionally allows military courts to declare reserved judgments in May 9 cases
- Supreme Court says judgments can only be announced in cases in which people can be released before Eid Al-Fitr
- Attorney general says 20 people can be released before the Muslim religious festival is celebrated next month
ISLAMABAD: The Supreme Court of Pakistan on Thursday allowed military courts to announce judgments reserved in cases against civilians linked to the May 9 violence that erupted last year after the brief detention of former Prime Minister Imran Khan on corruption charges.
Demonstrators, identified with Khan’s Pakistan Tehreek-e-Insaf (PTI) party, targeted government buildings and military installations, notably setting ablaze the official residence of a senior army general in Lahore.
This incident prompted a significant crackdown on PTI leaders and supporters, with the government facing allegations of arbitrary arrests and custodial torture, which it denied.
Following the May 9 events, military authorities sought to prosecute civilians involved in the assaults on its properties nationwide. However, the move was challenged, and a five-member Supreme Court bench deemed civilian trials in military courts unconstitutional in October.
The government has since appealed the decision.
The Supreme Court said during the hearing today that only the verdict in those cases should be announced in which the people on trial can be released before the Eid Al-Fitr festivities next month.
“Twenty out of 103 suspects involved in the May 9 incidents will be released before Eid,” Attorney General Mansoor Usman Awan told the court. “These 20 individuals will be released following the established procedure.”
The PTI has complained of being unjustly targeted by state institutions since the downfall of its administration in a parliamentary no-confidence vote in April 2022.
Khan himself remains behind bars in a high-security prison in Rawalpindi after being convicted in a number of cases in recent months.