ISLAMABAD: Pakistan will cut taxes on imports of raw materials to spur manufacturing and overall economic growth, Bloomberg quoted Prime Minister Imran Khan’s trade adviser as saying on Monday.
Customs duties on input items needed by pharmaceutical, chemical, engineering and food processing industries will be reduced by 3 percent to 10 percent, Abdul Razzak Dawood, Khan’s adviser on commerce, said in an interview to Bloomberg.
“That will help lower the import of finished goods, encourage local production and put the nation in a position to boost exports,” he said. “Pakistan had ridiculously high duties. The objective is to put Pakistan on par with other countries on trade taxes.”
Bloomberg said the proposal would be part of the federal government’s annual budget for the year starting July 1, by when it targets to achieve a growth rate of 4.8 percent. The nation forecast growth to be 3.9 percent this year after a rare contraction last year. The new budget is scheduled to be presented in the lower house of the parliament on June 11.
“Paring import taxes will be a huge policy shift for Pakistan, given more than 40 percent of its total tax revenue is generated from levies on inbound shipments,” Bloomberg said. “Khan’s government is seeking to end the nation’s reliance in recent years on foreign loans and bailouts, and instead boost industrial productivity and the share of exports in the economy.”
To that end, the administration will extend concessional long-term financing for exports and working capital financing to businesses in the next fiscal year, Dawood told the American publication.
The nation’s exports haven’t grown significantly in the past decade, averaging $23 billion annually. For the next financial year, the government hopes it will be higher than $25 billion.
Pakistan to cut taxes on imports of raw materials to boost growth
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Pakistan to cut taxes on imports of raw materials to boost growth
- Customs duties on input items needed by pharmaceutical, chemical, engineering, food processing industries to be reduced by 3 percent to 10 percent
- Proposal to be part of federal government’s annual budget for year starting July 1 by when it targets to achieve growth rate of 4.8 percent
‘Look ahead or look up?’: Pakistan’s police face new challenge as militants take to drone warfare
- Officials say militants are using weapons and equipment left behind after allied forces withdrew from Afghanistan
- Police in northwest Pakistan say electronic jammers have helped repel more than 300 drone attacks since mid-2025
BANNU, Pakistan: On a quiet morning last July, Constable Hazrat Ali had just finished his prayers at the Miryan police station in Pakistan’s volatile northwest when the shouting began.
His colleagues in Bannu district spotted a small speck in the sky. Before Ali could take cover, an explosion tore through the compound behind him. It was not a mortar or a suicide vest, but an improvised explosive dropped from a drone.
“Now should we look ahead or look up [to sky]?” said Ali, who was wounded again in a second drone strike during an operation against militants last month. He still carries shrapnel scars on his back, hand and foot, physical reminders of how the battlefield has shifted upward.
For police in the northwestern Khyber Pakhtunkhwa (KP) province, the fight against militancy has become a three-dimensional conflict. Pakistani officials say armed groups, including the Tehreek-e-Taliban Pakistan (TTP), are increasingly deploying commercial drones modified to drop explosives, alongside other weapons they say were acquired after the US military withdrawal from neighboring Afghanistan.
Security analysts say the trend mirrors a wider global pattern, where low-cost, commercially available drones are being repurposed by non-state actors from the Middle East to Eastern Europe, challenging traditional policing and counterinsurgency tactics.
The escalation comes as militant violence has surged across Pakistan. Islamabad-based Pakistan Institute for Conflict and Security Studies (PICSS) reported a 73 percent rise in combat-related deaths in 2025, with fatalities climbing to 3,387 from 1,950 a year earlier. Militants have increasingly shifted operations from northern tribal belts to southern KP districts such as Bannu, Lakki Marwat and Dera Ismail Khan.
“Bannu is an important town of southern KP, and we are feeling the heat,” said Sajjad Khan, the region’s police chief. “There has been an enormous increase in the number of incidents of terrorism… It is a mix of local militants and Afghan militants.”
In 2025 alone, Bannu police recorded 134 attacks on stations, checkpoints and personnel. At least 27 police officers were killed, while authorities say 53 militants died in the clashes. Many assaults involved coordinated, multi-pronged attacks using heavy weapons.
Drones have also added a new layer of danger. What began as reconnaissance tools have been weaponized with improvised devices that rely on gravity rather than guidance systems.
“Earlier, they used to drop [explosives] in bottles. After that, they started cutting pipes for this purpose,” said Jamshed Khan, head of the regional bomb disposal unit. “Now we have encountered a new type: a pistol hand grenade.”
When dropped from above, he explained, a metal pin ignites the charge on impact.
Deputy Superintendent of Police Raza Khan, who narrowly survived a drone strike during construction at a checkpoint, described devices packed with nails, bullets and metal fragments.
“They attach a shuttlecock-like piece on top. When they drop it from a height, its direction remains straight toward the ground,” he said.
TARGETING CIVILIANS
Officials say militants’ rapid adoption of drone technology has been fueled by access to equipment on informal markets, while police procurement remains slower.
“It is easy for militants to get such things,” Sajjad Khan said. “And for us, I mean, we have to go through certain process and procedures as per rules.”
That imbalance began to shift in mid-2025, when authorities deployed electronic anti-drone systems in the region. Before that, officers relied on snipers or improvised nets strung over police compounds.
“Initially, when we did not have that anti-drone system, their strikes were effective,” the police chief said, adding that more than 300 attempted drone attacks have since been repelled or electronically disrupted. “That was a decisive moment.”
Police say militants have also targeted civilians, killing nine people in drone attacks this year, often in communities accused of cooperating with authorities. Several police stations suffered structural damage.
Bannu’s location as a gateway between Pakistan and Afghanistan has made it a security flashpoint since colonial times. But officials say the aerial dimension of the conflict has placed unprecedented strain on local forces.
For constables like Hazrat Ali, new technology offers some protection, but resolve remains central.
“Nowadays, they have ammunition and all kinds of the most modern weapons. They also have large drones,” he said. “When we fight them, we fight with our courage and determination.”
