No new taxes to be imposed on Pakistan’s agriculture, real estate sectors — minister

Pakistan's finance minister Ishaq Dar speaks during the National Assembly session in Islamabad on July 21, 2023. (Photo courtesy: @NAofPakistan/Twitter)
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Updated 21 July 2023
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No new taxes to be imposed on Pakistan’s agriculture, real estate sectors — minister

  • Finance Minister Ishaq Dar says Pakistan has already endured enough hardships while unlocking the IMF program
  • He maintains the country has met the IMF conditions and will no longer burden its people with more taxes

ISLAMABAD: Pakistan’s finance minister Ishaq Dar said on Friday the government would not impose new taxes on the agricultural and real estate sectors, adding the people would no longer be burdened with additional taxes after the country successfully revived an International Monetary Fund (IMF) bailout program.

Last month, cash-strapped Pakistan signed a $3 billion stand-by arrangement (SBA) with the IMF after completing several prior conditions laid down by the lender, including imposition of additional taxes, removal of subsidies, and securing financial assurances from friendly nations.

The release of the IMF loan provided much-needed economic relief to the country, which had been struggling with a severe balance of payment crisis, high inflation, critically low forex reserves, and a depreciating currency.

Addressing the lower house of parliament, Dar dismissed “rumors” by media outlets about a potential increase in taxes on the agriculture and real estate sectors as a result of the IMF deal, saying that the government had no such plans.

“I am issuing a categorical statement before the [parliament] today that not a single new tax will be imposed, neither on the agriculture sector nor on the real estate industry,” he continued.

“We have already endured all the hardships we had to while unlocking the IMF program, delivered all the prior actions [required by the lender], and we have all the documents stating our future commitments.”

Dar assured the masses that all the documents related to the IMF deal with Pakistan would be uploaded to the finance ministry’s website on Friday to ensure transparency, adding that everybody would be able to access them.

He added the government had also taken measures to bring down the country’s consumer price index (CPI)-based inflation rate, which had soared to a record 38 percent on a year-on-year basis in May 2023 before reducing to 29.4 percent in June.

He said the country would bring it to seven percent in the future.


Pakistan, Iraq agree on tighter coordination over pilgrims under new regulated travel system

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Pakistan, Iraq agree on tighter coordination over pilgrims under new regulated travel system

  • New system requires all Iraq-Iran pilgrimages to be organized by licensed groups under state oversight
  • Long-running “Salar” model relied on informal caravan leaders, leading to overstays and missing pilgrims

ISLAMABAD: Pakistan and Iraq this week agreed to closely coordinate on the management and security of Pakistani pilgrims, as Islamabad rolls out a new, tightly regulated travel system aimed at preventing overstays, undocumented migration and security breaches during religious visits to Iraq and Iran.

The understanding was reached during a meeting between Pakistan’s Interior and Narcotics Control Minister Mohsin Naqvi and Iraq’s Interior Minister General Abdul Amir Al-Shammari on Thursday evening, where both sides discussed measures to facilitate pilgrims while strengthening oversight, Pakistan’s interior ministry said.

The agreement comes as Pakistan dismantles its decades-old pilgrim travel model and replaces it with a centralized, licensed system after authorities confirmed that tens of thousands of Pakistani pilgrims had overstayed or gone missing abroad over the past decade, triggering concerns from host governments.

“You have, for the first time during your tenure, taken effective measures to organize pilgrim groups, which are commendable,” Al-Shammari told Naqvi, according to Pakistan’s interior ministry.

“All pilgrims included in the list provided by Pakistan’s Ministry of Interior will be allowed to enter Iraq,” he added, making clear that only travelers cleared under the new system would be permitted.

Naqvi said Pakistan would strictly enforce return timelines under the revised framework.

“Pilgrims traveling to Iraq will not be allowed to stay beyond the designated period,” he said, adding that relevant authorities in both countries would remain in close coordination.

Both interior ministers also agreed to strengthen information-sharing and joint mechanisms on security cooperation, counterterrorism and the prevention of human smuggling, officials said.

“The safety, dignity, and facilitation of Pakistani pilgrims is the top priority of the Government of Pakistan,” Naqvi said.

Al-Shammari said he would visit Pakistan soon to finalize a joint roadmap to further improve pilgrim facilitation, security coordination and broader bilateral cooperation, according to the interior ministry.

Pakistan’s government has overhauled its pilgrim travel regime this year, abolishing the long-running “Salar” system under which informal caravan leaders managed pilgrimages. The move followed official confirmation that around 40,000 Pakistani pilgrims had overstayed or disappeared in Iran, Iraq and Syria over the past ten years.

Under the new Ziyarat Management Policy, only licensed Ziyarat Group Organizers (ZGOs) are allowed to arrange pilgrimages, with companies held directly responsible for ensuring pilgrims return on time. Authorities have completed security clearance for 585 companies seeking registration, while scrutiny of applications remains ongoing.

Islamabad has also barred overland travel for major pilgrimages, including Arbaeen, citing security risks in Pakistan’s southwestern Balochistan province, meaning all travel to Iraq and Iran is now restricted to regulated air routes.

Tens of thousands of Pakistani pilgrims travel each year to Iraq and Iran to visit some of the most revered shrines in Shia Islam, including the mausoleums of Imam Ali in Najaf and Imam Hussain in Karbala in Iraq, and major religious sites in Mashhad and Qom in Iran. Pilgrimages peak during religious occasions such as Arbaeen, when millions of worshippers converge on Karbala from across the region. The scale of travel, often involving long stays and cross-border movements, has long posed logistical, security and migration-management challenges for Pakistani authorities and host governments alike.