ISLAMABAD: The Pakistani government is struggling to regulate millions of dollars of informal gold business in the country by bringing jewelers into the tax net to fulfil one of the conditions of the Financial Action Task Force, officials said on Wednesday.
The global financial watchdog placed the country on its grey list in June 2018 for deficiencies in its system to counter practices like terror financing and money laundering.
Since then, Pakistan has largely addressed 26 out of 27 items on the action plan it first committed to after being placed on the list.
The FATF has been pressing Pakistan to regulate all its businesses and economy to minimize chances of money laundering and terror financing through informal sectors like gold business and prize bonds.
The country has already restricted the buying and selling of the bonds in unconventional ways and now turned its eye toward the gold business.
“It [the gold] is one of the most unregulated sectors that need to be regulated. A directorate-general has been constituted for this purpose,” Syed Nadeem Hussain Rizvi, a Federal Board of Revenue (FBR) member, told Arab News on Wednesday.
He said the directorate-general was working on a regulation mechanism to make the gold business part of the country’s formal economy.
“The FATF is concerned about regulation of such businesses,” he added.
Jewelers and gold businessmen have been resisting the FBR decision to document the sector, saying it would lead to their harassment and curtailment of the business unless the government made a more holistic effort to digitize the overall economy.
President of All Sindh Sarrafa Jewelers Association Haroon Rasheed Chand said he had called a meeting of goldsmiths and jewelers on Friday to discuss the issue.
“We have been regularly paying all income and sales taxes, but even then we are harassed in the name of informal business,” he said while talking to Arab News.
Chand maintained different government agencies were forcing the jewelers to reveal their gold and jewel transactions worth Rs2 million or more, “creating panic in the market.”
“We are ready to cooperate with the government in its efforts to remove its name from the FATF grey list, but the authorities should not force small gold shops to register for sales tax because this will adversely impact their business,” he added.
Economists and experts believe that black money worth millions of rupees can be easily converted into gold and prize bonds and kept anywhere without legal ownership. They said the government agencies could not determine the ownership of gold and jewelry due to loopholes in the current legal system and mechanisms.
“The government will face resistance from the informal sector, but it should go ahead with its plan to document the economy and register all jewelers and gold businessmen,” Syed Atif Zafar, chief economist at the Topline Securities, told Arab News.
He said the country had already tried to document the real estate sector and stock market.
“The government has taken a good initiative, though it will take some time to materialize,” Zafar added. “The documentation of the gold sector is not just important to fulfill the FATF condition but also to increase the country’s tax base.”
Pakistan struggles to regulate informal gold business to fulfill FATF conditions
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Pakistan struggles to regulate informal gold business to fulfill FATF conditions
- The country’s Federal Board of Revenue has set up a body to regulate gold business by bringing jewelers into the tax net
- An association of goldsmiths says its members are willing to cooperate with the government, but they should not be harassed in the name of regulating the sector
Security forces kill six militants in northwest Pakistan
- The intelligence-based operation was carried out in North Waziristan that led to an intense exchange of fire
- The targeted militants were involved in violent attacks against security forces and civilians in the volatile area
ISLAMABAD: Pakistani security forces carried out an intelligence-based operation in North Waziristan tribal district in the early hours of Saturday, killing six militants after a heavy exchange of fire.
Located in the tribal belt along the Pakistan-Afghanistan border, North Waziristan has historically been known as a volatile region with significant militant activity.
The Pakistani military carried out several major operations in the area to dismantle militant networks and had success in reducing violence.
However, there have been reports of renewed militant activities in the region, prompting the Pakistani security forces to once again increase its focus on these challenges.
“On night 3/4 May 2024, security forces conducted an intelligence based operation in North Waziristan District, on reported presence of terrorists,” the military’s media wing, ISPR, said in a statement.
“During the conduct of operation, intense fire exchange took place between own troops and the terrorists,” it continued, adding that six militants were killed as a result.
The statement informed that the security forces also destroyed militant hideout during the operation and launched a “sanitization operation” in the area while trying to locate any remnants of the militant group.
“The killed terrorists remained actively involved in numerous terrorist activities against security forces as well as target killings of innocent civilians in the area,” the ISPR added.
Pakistan telecom authority seeks review of tax agency directive to block SIMs of non-filers
- Federal Board of Revenue issued a list of over half a million people who did not file tax returns in 2023
- Reports indicate that telecom companies showed reluctance to block the SIMs of so many subscribers
ISLAMABAD: The Pakistan Telecommunication Authority (PTA) on Saturday showed reluctance to implement the instructions of the country’s tax collection body to block the SIMs of non-filers, while asking the authority to review its decision.
The development came after the Federal Board of Revenue (FBR) issued a list of over half a million people who did not file income tax returns for 2023, instructing the PTA to block their cellphone SIMs as a penalty.
However, media reports indicated that telecom companies were reluctant to carry out the directives affecting so many subscribers, prompting an official meeting on Friday in which the government decided to act against anyone opposing FBR’s orders.
Still, the PTA circulated a brief notification on Saturday, seeking a review of the FBR’s decision.
“On the issue of blocking of mobile phone SIMs under section 114-B of Income Tax Ordinance, 2001, Pakistan Telecommunication Authority (PTA) has communicated to FBR that the Income Tax General Order (ITGO) in the manner as referred to the Authority needs review before its execution by the concerned entity/entities,” the notification said.
“In the meanwhile, PTA has also initiated consultation with stakeholders on the subject issue,” it added.
Pakistan has traditionally faced the challenge of convincing people to file their tax returns.
However, the government has decided now to implement stringent measures to address the problem, particularly in the context of negotiations for a new International Monetary Fund (IMF) program.
The IMF has frequently urged Pakistan to enhance its revenue collection from non-filers as part of broader economic reforms to support social and development initiatives.
In response, the FBR is taking steps like blocking the SIM cards of non-filers and considering other punitive measures to enforce tax compliance and widen the tax net.
Pakistan’s deputy PM, Saudi foreign minister discuss Muslim world issues at OIC summit
- Ishaq Dar stresses the significance of ceasefire in Gaza during his meetings with the Kuwaiti, Qatari and Egyptian FMs
- He also calls for more investment for his country and greater employment opportunities for Pakistanis in the Middle East
ISLAMABAD: Pakistan’s newly appointed Deputy Prime Minister Ishaq Dar met with Saudi Foreign Minister Prince Faisal bin Farhan and other Arab officials on the sidelines of the Organization of Islamic Cooperation (OIC) summit in Gambia on Saturday, emphasizing collective action to address the problems confronting the Muslim world.
The OIC summit is being held against a backdrop of widespread anger over Israel’s military actions in Gaza, which have resulted in the death of nearly 35,000 Palestinians along with a massive destruction of hospitals, schools and residential neighborhoods in the area.
There has been a clear uptick in Islamophobic sentiments and incidents in different parts of the world, particularly since the outset of the conflict last year in October.
The Pakistani deputy prime minister arrived in Gambia on Wednesday to present his country’s perspective on a wide range of issue, including the war in Gaza and the rights situation in the Indian-administered Kashmir.
“Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar @MIshaqDar50 today met Foreign Minister of Saudi Arabia H.R.H. Prince Faisal bin Farhan Al Saud @FaisalbinFarhan in Banjul, The Gambia,” the foreign office said in a social media post.
“They discussed strengthening strategic and economic relations between Pakistan and Saudi Arabia and enhancing economic cooperation and investment,” it continued. “They called for a ceasefire in Gaza and emphasized the importance of OIC’s role in addressing challenges concerning the Muslim Ummah including Islamophobia and the situations in Palestine and Kashmir.”
Dar also held separate meetings with the foreign ministers of Kuwait, Egypt and Qatar.
During his conversation with Abdullah Ali Al Yahya of Kuwait, he discussed the possibility of further strengthening bilateral cooperation.
He noted the government wanted to transform the “traditionally fraternal ties with Kuwait into a mutually beneficial economic partnership.”
Dar also discussed further consolidation in trade and investment with Qatar’s Sheikh Mohammed bin Abdulrahman Al Thani while seeking more employment opportunities for young Pakistanis.
He emphasized on an immediate ceasefire in Gaza during his interactions for all Arab officials, commending Egypt’s role in supporting international humanitarian assistance for Palestine in his meeting the Egyptian Foreign Minister Sameh Hassan Shoukry.
Pakistan Cricket Board reviews venue upgrades in meeting ahead of ICC Champions Trophy 2025
- PCB chairman says upgradation work has been delayed, asks authorities to hire international consultant
- It will be the first major international cricket tournament hosted solely by Pakistan since the 1996 World Cup
ISLAMABAD: The Pakistan Cricket Board (PCB) held a meeting at its headquarters in Lahore to review the upgradation plan for major cricket venues in the country on Saturday ahead of the two-week ICC Champions Trophy next year.
The meeting was presided over by the PCB chairman, Mohsin Naqvi, who directed the relevant officials to immediately hire international consultant to upgrade the Qaddafi Stadium Lahore, National Bank Stadium Karachi and Rawalpindi Stadium.
“The stadium upgradation work has already been delayed,” he observed during the meeting according an official PCB statement, instructing the authorities to speed up the process.
He also instructed to form a three-member committee to ensure the hiring process was carried out in keeping with the rules and regulations.
The PCB plans to provide world-class facilities at the three Pakistani cricket stadiums.
Its upgradation plan includes structural changes to the boxes along with improved facilities and numbered seats for spectators.
Additionally, the number of seats in the enclosures on both sides of the main gate of the Qaddafi Stadium will also be increased.
The PCB chairman directed the replacement of screens for scoreboards and live streaming, instructing the officials to prepare the feasibility to install new floodlights in the stadiums.
The ICC Champions Trophy is scheduled to take place in Pakistan from February to March 2025.
It is expected to be a significant event since it will mark the first major international cricket tournament hosted solely by Pakistan since the 1996 Cricket World Cup.
The tournament will include top-ranked One Day International (ODI) teams, with Pakistan having automatically qualified as the host nation.
‘No illegal Afghan nationals,’ seminary board declares as Pakistan’s Sindh plans crackdown
- The province took the decision after a security meeting was told a madrasah teacher was involved in 2023 KPO attack
- Independent analysts say Afghans involve in militant violence arrive from their country and are not residents of Pakistan
KARACHI: Pakistani seminaries have stopped giving admission to Afghan nationals except for those who approach them with the interior ministry’s approval, a top seminary board official informed Saturday, after the country’s southern Sindh province announced to deport illegally enrolled foreigners in seminaries and other educational institutions.
The decision was taken after the province’s apex committee, the top security forum, was briefed earlier this week that one of the individuals involved in the 2023 Karachi Police Office (KPO) attack was a madrasah or seminary teacher. It was also pointed out during the meeting that a number of unregistered foreigners were studying in such institutions in different parts of Sindh.
The 2023 attack was launched by militants, armed with guns and grenades, who stormed the building, leading to a prolonged gunfight with security forces. This confrontation resulted in casualties among both police officers and civilians, along with substantial damage to the police facility. The KPO attack was claimed by the banned militant network Tehreek-e-Taliban Pakistan (TTP), whose leadership is reportedly based in neighboring Afghanistan.
Speaking to Arab News, Maulana Talha Rehmani, spokesperson of Wafaq ul Madaris Al-Arabia Pakistan, said local seminaries had stopping enrolling Afghan nationals almost a year ago.
“Our madrasah used to offer admission to Afghan refugees who possessed proof of registration cards,” he said. “But that also stopped a year ago.”
“Different Pakistani intelligence agencies frequent seminaries for information,” he continued. “Nothing is hidden. The madrasas have a proper system of registration. We are ready to cooperate.”
Rehmani said the authorities had not shared any details with them about the identity of the seminary teacher involved in the KPO attack.
However, Dr. Aamir Tuaseen, former chairman of Pakistan Madrasah Education Board, noted seminaries lacked any coherent policy to develop “a monitoring system” for students.
“Admissions are granted to students without proper background checks,” he told Arab News. “The admission authorities also overlook which province or country does a student belong to, especially in case of Afghanistan.”
He added that boards of religious seminaries should take it upon themselves to grant admission only to students from the city where the seminary is located.
“This will help gather information about the background of every student,” he said, noting the current directorate of religious education did not seem to be fully functional.
The provincial information minister, Sharjeel Inaam Memon, did not respond to a request for comment, but a police official told Arab News on condition of anonymity the madrasah teacher involved in the KPO attack was a Pakistani national.
“The madrasah teacher was identified as Aryadullah who worked with a Karachi-based seminary,” the official said. “He was Pakistani citizen.”
Ihsanullah Tipu Mehsud, a security expert who manages an online publication, The Khorasan Diary, said the Afghan nationals involved in militant violence in Pakistan mostly arrived from the neighboring state and were not residents of Pakistan.
“The involvement of Afghan nationals in acts of terrorism cannot be ignored, but in my opinion, the government’s assertion is overstated,” he said. “The individuals involved in recent acts of terrorism are primarily those who have arrived directly from Afghanistan to carry out attacks rather than Afghan refugees.”
He emphasized any measures related to the expulsion of Afghan students from seminaries should not be driven by a reactionary approach.
“It is critical to implement gradual [seminary] reforms in accordance with the national action plan,” Mehsud said.
