Islamabad ‘categorically rejects’ Indian allegations its staff in New Delhi were spying

Pakistan Rangers soldiers face Indian Border Security Force soldiers at a daily closing ceremony on the Indian side of the Attari-Wagah border, Friday, Aug. 9, 2019. (AP/ File Photo)
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Updated 24 June 2020
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Islamabad ‘categorically rejects’ Indian allegations its staff in New Delhi were spying

  • India said on Tuesday it would expel half the Pakistani staff in New Delhi over alleged spying, cut staff in embassy in Islamabad by same amount
  • Pakistan condemns “baseless” accusations Indian High Commission officials in Islamabad being intimidated, summons Indian Chargé d’ Affaires

ISLAMABAD: Pakistan’s foreign office on Tuesday rejected Indian allegations that its staff in Islamabad’s embassy in New Delhi was engaged in espionage, responding to an announcement by India earlier in the day that it intended to expel half the Pakistani embassy staff in New Delhi over alleged spying.

Relations between the nuclear-armed rivals have been tense for decades and the reciprocal expulsion of diplomats, often on spying charges, is not uncommon. India expelled two Pakistani diplomats on May 31 after they were held for alleged spying, claims Islamabad has called “baseless”.

“Pakistan categorically rejects and strongly condemns the baseless allegations made by the Indian Ministry of External Affairs as a pretext to seek 50% reduction in the staff strength of the High Commission for Pakistan in New Delhi,” the foreign office said in a statement.

“Pakistan completely dismisses allegations of any violation of the Vienna Convention on Diplomatic Relations by the officials of the High Commission for Pakistan in New Delhi and reiterates that they always function within the parameters of international law and diplomatic norms.”

The foreign office also said Pakistan rejected Indian allegations that Indian High Commission officials in Islamabad were being intimidated.

“The Indian Government’s smear campaign against Pakistan cannot obfuscate the illegal activities in which the Indian High Commission officials were found involved in,” the statement said.

The foreign office added that it had summoned the Indian Chargé d’ Affaires in Islamabad to the Ministry of Foreign Affairs on Tuesday to convey Pakistan’s rejection of all allegations.

“The Indian Chargé d’ Affaires was also informed of Pakistan’s decision to reduce the Indian High Commission’s staff strength by 50% as a reciprocal measure,” the statement said. “The Chargé d’ Affaires was asked to implement the decision conveyed to him within seven days.”

Pakistan also said India’s latest actions were an attempt to divert attention from human rights violations in Indian-administered Kashmir.

Kashmir has long been a flashpoint between the neighbors but tension was renewed after New Delhi withdrew the autonomy of the Himalayan region last August and split it into federally-administered territories.

Both countries claim the region in full, but rule only parts, and often accuse each other of breaching a 2003 cease-fire pact by shelling and firing across the Line of Control (LoC), an informal border in Kashmir, and of killing dozens every year.

“India would be better advised to focus on its internal and external issues, rather than creating diversions at the cost of peace and stability in South Asia,” the Pakistani statement said.

Last week, Pakistani authorities released two Indian High Commission officials after briefly detaining them over an alleged car accident.

Indian media reported last Monday that two Indian High Commission officials had gone missing in Islamabad while out on official work.

Islamabad Police arrested the two Indian officials in a hit and run case on Monday morning, Pakistani police said, in an incident in which a pedestrian was injured while the drivers tried to flee.

According to Pakistani police, the pedestrian was critically injured and shifted to a hospital for treatment. A huge crowd of people stopped the car and handed over the two men to Islamabad Police, where they were identified as officials of the high commission.

Indian media reported the arrest of the officials as a reciprocal action by Islamabad over New Delhi expelling two officials of the Pakistani High Commission in Delhi over accusations of espionage on May 31. Pakistan has rejected the charge as “false and unsubstantiated.”


Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns

Updated 30 April 2024
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Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns

  • In December, the Federal Board of Revenue said Pakistan had around 5.2 million taxpayers in 2022, out of a population of 240 million people
  • The government has decided to digitalize tax collection system to prevent leakages even as large segment of economy remains undocumented

ISLAMABAD: Pakistan has decided to block mobile phone connections of more than 500,000 individuals who had not filed their income tax returns for Tax Year 2023, the country’s tax regulator said on Tuesday.

Pakistan’s narrow tax base and enduring tax evasion issue have often led to the problem of insufficient revenue collection. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing.

In Dec., the Federal Board of Revenue (FBR) said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during this fiscal year.

On Tuesday, the FBR issued an order to enforce filing of returns by the persons who were not appearing on the active taxpayer list.

“FBR has taken decisive action by issuing an order to disable mobile phone SIMs associated with 506,671 individuals who fall under the aforementioned category,” the regulator said in a statement.

“The Pakistan Telecommunication Authority (PTA) and all telecom operators have been instructed to enforce the ITGO with immediate effect, ensuring swift implementation of the order.”

These mobile connections would remain blocked until restored by the FBR or the concerned Inland Revenue commissioner, according to the statement. Telecom operators were asked to furnish a compliance report to the FBR by May 15.

Amid its efforts to broaden the tax base, the government of Prime Minister Shehbaz Sharif has recently decided to digitalize the tax collection system to prevent leakages even as a large segment of the national economy remains undocumented.

Pakistan, which has been facing an economic meltdown, is also making efforts to introduce structural economic reforms. The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of its gross domestic product, for the current fiscal year before the government presents its budget in June.


US envoy hosts Pakistan cricket team in display of support ahead of T20 World Cup

Updated 30 April 2024
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US envoy hosts Pakistan cricket team in display of support ahead of T20 World Cup

  • Pakistan’s preparations for the mega event that will be co-hosted by the West Indies and the US
  • Both Pakistan, US have been slated to play within the same group stage and will compete on June 6

ISLAMABAD: United States (US) Ambassador to Pakistan Donald Blome held a meet-and-greet session with the Pakistan cricket team at the US embassy in Islamabad in a display of support for the ‘Green Shirts’ ahead of the highly anticipated Twenty20 World Cup 2024, the US embassy said on Tuesday.

The development came amid Pakistan’s preparations for the mega event that will be co-hosted by the West Indies and the US in June.

Ambassador Blome welcomed the Pakistan team and cricket board chairman, Mohsin Naqvi, at his residence and extended his best wishes for the matches in the US.

“In dual gestures of sports diplomacy, Ambassador Blome presented the team members with a commemorative embassy cricket ball and autographed softball bat,” the US embassy said in a statement.

“The Pakistani team reciprocated by presenting the Ambassador with a signed cricket bat and team jersey.” 

The US envoy later participated in an impromptu cricket demonstration with members of the Pakistan side.

Both Pakistan and the US have been slated to play within the same group stage and will compete in a highly anticipated game scheduled for June 6.

Organizers of the T20 World Cup games in the US have said that early ticket sales showed there was a huge demand for the sport in the country.

The highly anticipated clash in New York between cricket rivals Pakistan and India was over-subscribed by 200 times in the public ballot for tickets, the International Cricket Council said in Feb.

The 34,000-seat temporary venue, Nassau County International Cricket Stadium on Long Island, is already assured of a sell-out crowd for the June 9 encounter.


Pakistan says inflation expected to drop to 17.5 percent in May amid signs of economic recovery

Updated 30 April 2024
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Pakistan says inflation expected to drop to 17.5 percent in May amid signs of economic recovery

  • Finance ministry says Pakistan to achieve modest growth this year, enabling improved performance in the next fiscal
  • It acknowledges higher fuel prices, saying they will be offset by the government’s initiative to reduce wheat flour prices

ISLAMABAD: Pakistan’s finance ministry said on Tuesday the country’s economy was showing signs of recovery, highlighting a downward inflationary trend that could reach 17.5 percent in the upcoming month of May.
The statement comes at a time when Pakistan received a disbursement of $1.1 billion from the International Monetary Fund (IMF) as the second and final tranche under a $3 billion standby arrangement secured last summer to avert a sovereign default.
Prime Minister Shehbaz Sharif said earlier in the day the money would help the country achieve greater economic stability, with his government striving for a bigger loan program for a longer duration.
The finance ministry said in its Monthly Economic Update and Outlook for April 2024 that the economy was “on a resilient track to achieve modest growth this year, setting the basis for better performance in the upcoming fiscal year.”
“Headline inflation observed the lowest reading after 21 months,” it noted. “In March, CPI [consumer price index] inflation recorded the third consecutive YoY [year-on-year] decline, dropping to 20.7 percent from 35.4 percent last year. This decrease was observed throughout the third quarter of FY2024.”
It added the inflation outlook for April 2024 continued a downward trajectory, with the government determined to reduce it by taking strict administrative measures.
The outlook report said the increasing crude oil prices in the international market had prompted the government to raise domestic fuel prices. However, the rise in these rates was expected to be offset by the government initiative to reduce wheat flour prices.
“Inflation is projected to hover around 18.519.5 percent in April 2024,” it continued. “However, there are expectations of a gradual easing further to 17.5-18.5 percent in May 2024.”
Pakistan’s economy witnessed a major inflationary pressure in recent years after its governments sought IMF assistance amid dwindling foreign currency reserves and depreciating national currency.
The international lender urged the country to carry out economic reforms – such as removal of subsidies and increase in fuel charges and power tariffs – which led to spiraling inflation and pushed about 40 percent of its population below the poverty line.
Last year in February, financial experts warned of spiraling inflation of up to 40 percent after official data revealed that weekly inflation had touched 38.4 percent on an annual basis.
However, the situation has gradually improved, though inflationary pressure still continues to remain on the higher side.


Saudi business delegates to soon visit Pakistan, help expedite economic cooperation — PM Sharif

Updated 30 April 2024
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Saudi business delegates to soon visit Pakistan, help expedite economic cooperation — PM Sharif

  • Pakistan is currently making rigorous efforts to attract investment from Saudi Arabia, other Gulf nations to support dwindling economy
  • PM Shehbaz Sharif expresses resolve to work hard to implement consensus achieved in meetings with Saudi leadership on WEF sidelines

ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday that a delegation of Saudi businessmen would soon visit Pakistan, which would help expedite economic cooperation between the two brotherly countries.

The statement came at the end of PM Sharif’s visit to Riyadh, where he attended a two-day World Economic Forum (WEF) summit on Global Collaboration, Growth and Energy for Development on April 28-29.

On the sidelines of the summit, the prime minister held meetings with Crown Prince Mohammed bin Salman as well as Saudi ministers of energy, economy and planning, and environment, water, and agriculture.

Sharif, upon the completion of his visit, said bilateral relations and economic partnership between Saudi Arabia and Pakistan were getting “stronger and stronger.”

“A delegation of businessmen from Saudi Arabia is visiting Pakistan in the next few days,” he was quoted as saying in a statement issued from his office.

“The speed of economic partnership between the two countries will be accelerated by the visit of the Saudi Arabian businessmen.”

He expressed his resolve to work hard to implement the consensus achieved at the leadership level between the two countries, saying that a record number of delegations had been exchanged between Pakistan and Saudi Arabia during the past two months.

“His Excellency Crown Prince Mohammed bin Salman issued special instructions to Saudi ministers regarding Pakistan, for which we are extremely grateful,” Sharif said.

“I also pay tribute to Saudi ministers, who made full preparations for the implementation of the consensus between the leadership [of the two countries].”

Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.

Both countries have been closely working to increase bilateral trade and investment deals, and the Kingdom recently reaffirmed its commitment to expedite an investment package worth $5 billion.


Czechoslovakian software company to invest $1 million in Pakistan data center

Updated 30 April 2024
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Czechoslovakian software company to invest $1 million in Pakistan data center

  • IceWarp officials says the company plans to open subsidiary in Saudi Arabia after establishing presence in Pakistan
  • The Czech company offers cost-effective services, including hosted email, TeamChat and ChatGPT integration

KARACHI: A Czechoslovakia-based software company is all set to invest about $1 million in Pakistan to set up a data center, said one of the top organization officials on Tuesday while also highlighting plans to launch a subsidiary in Saudi Arabia.
Established in 1998, IceWarp has presence in more than 100 countries and provides specialized and highly cost-effective services, such as hosted email, TeamChat, ChatGPT integration and online conferences etc.
“Pakistan is a high potential land where digital transformation can be seen from public sector entities to private businesses,” Jan Urbik, IceWarp’s global chief sales officer, told a news conference in Karachi. “We will support Pakistan in its mission to adopt digitalization through affordable solutions.”
Urbik said his company would set up a data center in Pakistan in compliance with the local regulations requiring companies to keep the data and privacy of Pakistani citizens within the country’s borders.
“IceWarp will offer solutions that are 60 percent more cost-effective than other software companies, along with enhanced applications and cybersecurity features that will attract a number of industries, financial institutions, small and medium enterprises (SMEs) and startups to use our services,” he added.
He mentioned the launch of the data center and full fledge operations with an investment of about $1 million in the country to set up a local subsidiary in collaboration with Hexalyze, a Pakistani company.
IceWarp, which has presence in the United Arab Emirates (UAE), is also planning to set up a subsidiary in Saudi Arabia.
“During the summer time, we visited Saudi Arabia and we have been to [the] LEAP [technology conference] and we have been talking with multiple partners,” Urbik said, adding that local entities told him that his company was welcome in the kingdom.
“So, Saudi Arabia is in our head as the future possibility to open the subsidiary there as well,” he continued.
Syed Saad Shah, CEO of Hexalyze, informed that IceWarp was planning to set up its regional office in Pakistan in collaboration with his company.
“The Czechoslovakia-based software company will expand its operations in the Kingdom of Saudi Arabia and the United Arab Emirates with separate data centers in these countries while the Pakistan office will serve as the back-up support station for marketing and sales,” Shah said.
The cost-effective corporate email solutions will enable hundreds of companies in Pakistan to adopt this tech-based solution in their businesses for the first time, he continued.
“On the other hand, corporate customers will not only save money from the expenses of enterprise services, but these companies will also save precious foreign exchange for the country by paying less to the service provider,” he added.
Present in the UAE, Saudi Arabia, Australia and Pakistan with global alliance partners, Pakistan’s IT company Hexalyze has been providing integration of tech solutions to SMEs as well as large enterprises since 2014.