Pakistan's finance chief says no new taxes will be imposed in supplementary budget

Traders gather at a fruit market in Lahore, Pakistan, on November 27, 2019. (AFP)
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Updated 27 November 2021
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Pakistan's finance chief says no new taxes will be imposed in supplementary budget

  • Shaukat Tarin maintains the country's national currency is undervalued by about Rs10
  • The country's finance chief warns 'speculators' that the Pakistani rupee will soon move in the other direction and gain strength

ISLAMABAD: Pakistan's finance chief Shaukat Tarin said on Friday the government was not planning to introduce new taxes after securing a recent agreement with the International Monetary Fund, though he added it was going to withdraw certain exemptions.
The IMF announced earlier this week it had reached a staff level agreement with the administration in Islamabad which required the approval of the international financial institution's executive board following the implementation of fiscal and institutional reforms by Pakistan.
It laid out five conditions which included sales tax reforms, increase in petroleum development levy and the greater autonomy for the central bank.
Addressing a news conference shortly after the IMF announcement, Tarin had said the government would meet the five demands by presenting supplementary finance bills which are more popularly known as mini-budgets in Pakistan.
"We are not going to increase taxes but withdraw some exemptions," said the finance chief.


He recalled his statement after assuming the office that the government would not burden the country's taxpayers anymore, adding this was despite the fact that Pakistani officials had already agreed to impose new taxes to get $500 million from the IMF in March.
Asked about the dismal performance of Pakistan's national currency, Tarin said people previously thought the rupee was sliding due to the delay in the IMF agreement or increase in the discount rate amid souring inflation.
However, he maintained that Pakistan's national currency was under pressure due to speculative trading in the market.
Tarin said some people were even spreading rumors that the Pakistani currency would get demonetized, though he categorically announced that "nothing like that is going to happen at least on my watch."
"Let me warn the speculators that the Pakistani currency will also move in the other direction," he continued. "We are taking some measures to ensure that. And when the rupee is going to move on the other side, it hurt them a lot. So, they should not indulge in such speculation."
The finance chief said it was important to keep an eye on the real effective exchange rate to determine the real strength of the rupee.
"Experts say the Pakistani rupee should be somewhere around Rs165 to Rs167 against [the US dollar] ... Our national currency is undervalued by about Rs10," he said.
The Pakistani rupee traded at Rs175.46 in the interbank market on Friday.

 


Pakistan arrests Daesh suspects, including Afghan ‘mastermind,’ after Islamabad mosque attack

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Pakistan arrests Daesh suspects, including Afghan ‘mastermind,’ after Islamabad mosque attack

  • Interior minister says attack was planned and suicide bomber trained in neighboring Afghanistan
  • Suicide bombing targeted worshippers on Islamabad’s outskirts, killing 32 and wounding over 150

ISLAMABAD: A police officer was killed and four suspects, including an Afghan national who worked for Daesh and masterminded a deadly suicide bombing in the Pakistani capital a day earlier, were arrested in overnight raids, according to Pakistan’s Interior Minister Mohsin Naqvi, who addressed a news conference on Saturday.

Officials have confirmed 32 deaths from Friday’s blast at the Qasr-e-Khadijatul Kubra mosque and imambargah in the Tarlai Kallan area on Islamabad’s outskirts, with more than 150 others injured.

The blast occurred during Friday prayers, when mosques around the country are packed with worshippers. A regional Daesh affiliate said one of its members had targeted the congregation by detonating an explosive vest.

“Immediately after the explosion, raids were carried out in Peshawar and Nowshera, and four of the facilitators [of the suicide bomber] were arrested,” Naqvi told the media in Islamabad. “The best thing that happened was that their mastermind, who is an Afghan affiliated with Daesh, was also apprehended.”

He confirmed that a Khyber Pakhtunkhwa police officer lost his life during a raid carried out at night, while a few others were also injured.

“The main mastermind is related to Daesh, and he is now under our custody,” he continued. “All the planning and training of this incident had been done by Daesh inside Afghanistan. These people are now with us, telling us all the details of how he [the bomber] was taken [to the neighboring country] and how he was trained there.”

Naqvi’s ministry also shared a brief statement on social media, saying that a breakthrough in the case was made through “technical and human intelligence” before coordinated raids were conducted to arrest the suspects.

“The nexus of terrorism under Afghan Taliban patronage remains a serious threat to regional peace,” it added.

The interior minister echoed the same concern while accusing India of bankrolling the militant operations against Pakistan.

“Now, you are taking the name of Daesh, or you are taking the name of Taliban,” he said while talking to journalists.

“They [the militants] are getting this funding from somewhere, someone is giving them this target.”

“I again want to tell you with clarity that all their funding is being given by India,” he added. “All their targets are being given by India.”

Islamabad has long accused Kabul of allowing its soil to be used by militant groups and New Delhi of backing their cross-border attacks against Pakistani civilians and security forces. However, the Afghan and Indian governments have consistently denied the allegations.

The police officer, who was killed in the shootout with militants in the northwestern district of Nowshera, was identified as Assistant Sub-Inspector Ejaz Khattak, Nowshera police spokesperson Turk Ali Shah told Arab News.

Friday’s mosque blast was the deadliest in Islamabad since a 2008 suicide bombing at the Marriott Hotel that killed 63 people and wounded more than 250. Last year in November, a suicide bomber struck outside a court in the capital, killing 12 people.

The latest attack comes as Prime Minister Shehbaz Sharif’s government deals with a surge in militancy across Pakistan. Pakistani officials have said the attacker was a Pakistani national who had recently traveled to Afghanistan.