Pakistan, Turkiye jointly launch fourth warship for Pakistan navy

Pakistan's Prime Minister Shehbaz Sharif (2nd right) and Türkiye's Vice President Cevdet Yilmaz (center) at the launch ceremony of fourth warship for Pakistan navy, "PNS Tariq", in Karachi, Pakistan on August 2, 2023. (Photo courtesy: PMO)
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Updated 02 August 2023
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Pakistan, Turkiye jointly launch fourth warship for Pakistan navy

  • Contract for four MILGEM class corvettes was signed with Turkiye in 2018
  • Pakistan navy says induction of ships to enhance maritime defense, deterrence

ISLAMABAD: Pakistan and Turkiye on Wednesday jointly launched a MILGEM class corvette warship at the Karachi port, part of a four-vessel deal between Islamabad and Ankara.

Turkiye announced in 2017 the two countries had signed a memorandum of understanding for the sale of four Turkish made corvette warships and 52 Pakistan-made training planes for Ankara’s armed forces. Ankara described it as Turkiye’s biggest single military export deal and “a very important day” for the defense industry. The contract was formally signed in 2018.

Under the deal, the Karachi Shipyard (KS&EW) would buy four corvettes made under Turkiye’s MILGEM warship program, aimed at designing and building locally a fleet of multipurpose corvettes and frigates that could replace older ships. As per the 2018 contract, two of the ships were to be manufactured in Istanbul and two in Karachi.

“This is the fourth ship of this class and the second one built in Pakistan jointly by Asfat Istanbul and the Karachi Shipyard and Engineering Works,” Pakistani Prime Minister Shehbaz Sharif said during the launch ceremony of the corvette in Karachi along with Vice President of Turkiye Cevdet Yilmaz.

“Today’s joint venture project is another example of our commitment to support each other, strengthen each other’s industries and trade, and enhance our economic cooperation.”

The first two corvettes, PNS Babur and PNS Badar, were launched in Istanbul and Karachi, in August 2021 and May 2022, respectively. A third one, PNS Khyber, was launched in Istanbul in November 2022.

“These corvettes will be fitted with state-of-art Surface, Sub-Surface and Anti-Air Weapons & Sensors, integrated through an advanced Network Centric Combat Management System,” the Pakistan navy said in a statement in 2021.

The navy said the induction of the corvettes would significantly enhance the force’s maritime defense and deterrence capabilities: “These corvettes will become a core element of PN’s kinetic response to traditional and non-traditional challenges and to maintain balance of power in the Indian Ocean Region.”

Under the MILGEM project, Turkiye has built several multipurpose corvettes, frigates, and destroyers that can be deployed in a range of marine missions.


Finance minister says only 14% of companies registered for sales tax in Pakistan

Updated 10 October 2024
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Finance minister says only 14% of companies registered for sales tax in Pakistan

  • Muhammad Aurangzeb says sales tax evasion amounts to an estimated $12.2 billion
  • The government says it will act against companies misreporting turnover, input claims

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb revealed on Thursday only 14 percent of companies in Pakistan were registered for sales tax, leading to an estimated loss of Rs3.4 trillion ($12.2 billion) due to tax evasion, highlighting significant compliance and revenue generation challenges in the country.
Pakistan’s narrow tax base and persistent issue of tax evasion have continuously contributed to insufficient revenue collection for the fragile national economy. This shortfall exacerbates the government’s reliance on running high fiscal deficits, often financed through domestic and international borrowing, which further increases the nation’s debt burden.
Last month, the authorities prepared a plan to revamp the Federal Board of Revenue’s (FBR) tax collection system, with the help of economic and technological experts, following a detailed analysis of tax collection patterns over the past 25 years.
The government has also decided to fully digitalize the tax system to prevent leakages, even as a large segment of the national economy remains undocumented.
“Only 14 percent of the companies are registered for sales tax,” the minister said in a televised news briefing in Islamabad. “I will not delve into the consequences of non-registration as I have already spoken about it earlier.”
In his media talk on the “war on tax fraud” alongside FBR Chairman Rashid Mahmood Langrial, he said the overall tax evasion in Pakistan amounted to approximately Rs7 trillion ($25 billion) of which income tax evasion was around Rs1.3 trillion ($4.6 billion).
Aurangzeb said tax fraud could be divided into many categories with the first and most important being the misreporting of turnover and input claims. He explained that companies involved in such malpractices claimed a high ratio of input tax so that tax payments could be “suppressed and mitigated.”
He highlighted the importance of being part of a tax regime which was “adaptable and fair” where all segments of society and classes play their role. He said data analytics were being used to “plug leakages” in tax collection to ease out the burden inflicted on lower classes.
Aurangzeb said it was imperative to raise the tax-to-GDP ratio to 13-13.5 percent so that Pakistan could become a sustainable country going in the right direction with strong remittances, exports, upgraded credit ratings and a decreased policy rate due to declining inflation that also brought the lending rates down.
He added that the country could not afford to have any kind of “leakage” in terms of tax collection anymore. He gave examples of businesses in different sectors and how they misrepresented data to evade taxes.
The finance minister said 19 businesses in the cement sector that represented 100 percent of total reported sales owed around Rs18 billion ($64.3 million) to the government. Similarly, he added that the shortfall in the beverages sector due to tax evasion amounted to Rs15 billion ($53.96 million) where 16 businesses represented almost 100 percent of the total sales.
Talking about the textile sector, the finance minister said 28 weaving businesses represented 80 percent of the total reported sales with tax evasion of up to Rs18 billion ($64.3 million).
Meanwhile, the FBR chairman said the businesses involved in tax evasion were the same ones whose owners would hold meetings with government officials and present plans on how to curb tax evasion.
“There is not a bigger fraud being conducted in this country than the input adjustment system,” he said.
“The real appeal today is to professional classes who work as chief financial officers or chief executive officers. They are not the beneficiaries of the fraud amounting to billions of rupees but their signatures are being used which is a criminal act that will have criminal consequences.”
Langrial said the FBR will take action against such people and arrest them after due legal process. He urged every company’s management to not sign the upcoming sales tax return due on October 15.
“There will be no forgiveness this time,” he said.


Pakistani minister calls for regional cooperation on counterterrorism ahead of SCO summit

Updated 10 October 2024
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Pakistani minister calls for regional cooperation on counterterrorism ahead of SCO summit

  • Attaullah Tarar says Pakistan has lost 80,000 lives while fighting militancy to ensure peace across the world
  • Information minister says the summit will also focus on climate change that impeded sustainable development

ISLAMABAD: Federal Minister for Information and Broadcasting Attaullah Tarar emphasized greater regional cooperation in counterterrorism on Thursday while addressing an event focused on the upcoming Shanghai Cooperation Organization (SCO) Summit, which will be held in Islamabad on October 15 and 16.

The issue of militant violence in Pakistan has cast a shadow over the high-profile summit, following the recent suicide attack in Karachi that killed two Chinese engineers, an act claimed by a Baloch separatist group.

Pakistan has repeatedly accused neighboring Afghanistan of harboring such militant factions, though the Taliban administration has denied these allegations.

The Pakistani government has also handed over summit security to the army and fortified Islamabad’s Red Zone, home to key government and diplomatic installations.

“Regional cooperation on counterterrorism and counterviolence is very important,” Tarar told the gathering, adding that the issue was discussed during the last SCO event in Astana, Kazakhstan.

He pointed out that Pakistan had paid a heavy price due to militant violence over the past few decades, consistently raising the issue in multilateral forums and bilateral dialogue with neighboring countries.

“We always highlight that we have lost 80,000 lives in this effort,” he added. “And this was not just for Pakistan but to ensure and maintain peace across the world.”

He said regional cooperation in counterterrorism would not only help Pakistan but also strengthen peace throughout the neighborhood.

Tarar noted that another issue to be discussed during the SCO summit is sustainable development, which, in Pakistan’s case, is threatened by climate change.

“Pakistan contributes less than one percent to global carbon emissions,” he noted. “But when it comes to climate change implications and losses, we are one of the worst-affected countries.”

He highlighted the losses incurred by the country due to floods, heatwaves, cyclones and other erratic weather events.

“Pakistan can greatly benefit from regional cooperation on this issue,” he continued.

The minister also emphasized the need for greater regional integration, pointing out that more could be done to increase Central Asian trade through Pakistani ports.

“There needs to be more financial integration to increase investment, trade and regional cooperation,” he noted.

“There is a need to promote cultural collaboration and people-to-people contact in the region,” he added. “I think that’s how we can take the people of the region toward prosperity.”

Tarar maintained it was a matter of honor for Pakistan to host a summit of this level after such a long time.

“Holding the SCO Summit at a time when Pakistan’s economy is taking off will further strengthen the country’s image and future prospects,” he said.


Pakistan at 23-1 after Brook triple hundred takes England to 823-7

Updated 10 October 2024
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Pakistan at 23-1 after Brook triple hundred takes England to 823-7

  • Brook and Root put on 454 for the fourth wicket as England piled up the fourth highest innings in Test cricket history
  • Saim Ayub and Shan Masood were unbeaten on 13 and 10 respectively with Pakistan needing 244 to make England bat again

MULTAN: Pakistan were 23-1 at tea on the fourth day and fighting to avoid an innings defeat after Harry Brook’s 371 and Joe Root’s 262 propelled England to a mammoth 823-7 declared in the first Test on Thursday.
Brook and Root put on 454 for the fourth wicket as England piled up the fourth highest innings in Test cricket history before Chris Woakes bowled opener Abdullah Shafique with the first ball of their second innings.
Saim Ayub and captain Shan Masood — dropped twice by England fielders — were unbeaten on 13 and 10 respectively with Pakistan still needing 244 to make England bat again.
Brook and Root enjoyed a run-feast on a flat Multan stadium pitch, both knocking career-best scores to give England a 267 lead over Pakistan’s first innings total of 556.

England’s Joe Root plays a shot during the First Test between England and Pakistan at the Multan Cricket Stadium in Multan on October 10, 2024. (REUTERS)

Brook completed his triple century with a boundary off part-timer Ayub, reaching the mark off 310 balls before he top-edged a sweep off the same bowler and was caught by Masood.
Brook cracked 29 fours and three sixes in his 439-minute stay at the crease.
But Root — who broke Alastair Cook’s England Test run record of 12,472 on Wednesday — fell short of a triple hundred as he was trapped leg-before by Salman Agha after a marathon 10 hour-stay suring which he hit 17 fours.
The Root-Brook stand of 454 was England’s highest in Tests, eclipsing the 411-run fourth wicket partnership by Peter May and Colin Cowdrey against the West Indies at Birmingham in 1957.
It is also the fourth highest partnership in Test cricket history.

England's Joe Root and Zak Crawley (R) run between the wickets during the second day of the first Test cricket match between Pakistan and England at the Multan Cricket Stadium in Multan on October 8, 2024. (AFP)

Ayub (2-101) and Naseem Shah (2-157) were the most successful Pakistan bowlers.
England resumed on 492-3 in the morning and looked for quick runs, which Root and Brook provided despite Pakistan’s defensive leg-side bowling, adding 166 runs in 29 overs in the session.
Root’s previous best of 254 was also against Pakistan at Manchester in 2016.
Brook was equally dominant, hitting 20 boundaries and a six in his maiden Test double hundred, which came off just 245 balls.

Pakistan's Shaheen Shah Afridi, center, plays a shot as England's Jamie Smith, center, and Joe Root watch during the second day of the first test cricket match between Pakistan and England, in Multan, Pakistan, on Oct. 8, 2024. (AP)

His previous best was 186, scored against New Zealand at Wellington last year.
Pakistan’s only chance came in the first hour when Root, on 186, failed to keep down a pull shot off Shah but Babar Azam shelled the regulation chance at mid-wicket.
Root took full advantage and with a single off spinner Agha Salman completed his sixth Test double-century, which came in 517 minutes off 305 balls.
Pakistan were without frontline spinner Abrar Ahmed who suffered a fever and did not take the field on Thursday.


PM says Pakistan terminating purchase agreements with 5 independent power producers

Updated 10 October 2024
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PM says Pakistan terminating purchase agreements with 5 independent power producers

  • Sharif says move will save $215 million per year for electricity consumers and $1.4 billion to the national treasury
  • A decade ago, Pakistan approved dozens of motsly foreign-financed private projects by IPPs to tackle chronic shortages

KARACHI: Prime Minister Shehbaz Sharif said on Thursday Pakistan was terminating purchase agreements with five independent power producers (IPPs) to rein in electricity tariffs as households and businesses buckle under soaring energy costs.
A decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders, to tackle chronic shortages. But the deals, featuring incentives such as high guaranteed returns and commitments to pay even for unused power, ultimately resulted in excess capacity after a sustained economic crisis slashed consumption.
Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.
“After today, the take and pay system of these five IPPs has been finished, it has been completely terminated. The previous obligations of these IPPs will only be paid but without any financial cost, without any interest,” Sharif said in televised comments as he addressed the federal cabinet. 
“This will benefit electricity consumers by Rs60 billion ($215 million) annually. As a result, the national treasury will save Rs411 billion ($1.4 billion).”
The PM said tariffs would be reduced gradually by revising agreements with other IPPs in the electricity sector also.
“Five IPP owners prioritized national interest over personal interest and voluntarily agreed to terminate these agreements with the government,” Sharif added.
In a notice to the Pakistan Stock Exchange, Pakistan’s biggest private utility, Hub Power Company Ltd, unveiled on Thursday the premature termination of its pact for the government to buy power from a southwestern generation project.
The government and market operator the Central Power Purchasing Agency (CPPAG) agreed to settle the company’s outstanding receivables up to Oct 1, the company said. 
The company said its board approved an accelerated expiry date of Oct. 1 for the deal, instead of an initial date of March 2027, in an action taken “in the greater national interest.”
The need to revisit power deals was a key issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout. 
Pakistan has also begun talks on reprofiling power sector debt owed to China and structural reforms, but progress has been slow. It has also vowed to stop power sector subsidies.
With inputs from Reuters


Pakistan’s biggest private utility says government power deal ends prematurely

Updated 10 October 2024
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Pakistan’s biggest private utility says government power deal ends prematurely

  • Hub Power Company says board approved an accelerated expiry date of Oct. 1 for the deal instead of an initial date of March 2027
  • Step comes after Power Minister Awais Leghari said government was re-negotiating deals with independent producers to rein in electricity tariffs

KARACHI: Pakistan’s biggest private utility, Hub Power Company Ltd, unveiled on Thursday the premature termination of a pact for the government to buy power from a southwestern generation project.
The government and market operator the Central Power Purchasing Agency (CPPAG) agreed to settle the company’s outstanding receivables up to Oct 1, it told the Pakistan Stock Exchange in a notice.
The step comes after Power Minister Awais Leghari told Reuters last month the government was re-negotiating deals with independent producers to rein in electricity tariffs as households and businesses buckle under soaring energy costs.
The company said its board approved an accelerated expiry date of Oct. 1 for the deal, instead of an initial date of March 2027, in an action taken “in the greater national interest.”
A decade ago, Pakistan approved dozens of private projects by independent power producers (IPPs), financed mostly by foreign lenders, to tackle chronic shortages.
But the deals, featuring incentives such as high guaranteed returns and commitments to pay even for unused power, ultimately resulted in excess capacity after a sustained economic crisis slashed consumption.
Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industry bodies.
The need to revisit power deals was a key issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.
Pakistan has begun talks on reprofiling power sector debt owed to China and structural reforms, but progress has been slow. It has also vowed to stop power sector subsidies.