ISLAMABAD: Telecom operators in Pakistan have agreed to block mobile phone connections of individuals who had not filed their income tax returns for Tax Year 2023, the country’s tax regulator said on Saturday, with the first batch of non-filers, including 5,000 individuals, already communicated to the operators.

Pakistan’s narrow tax base and enduring tax evasion issue have often led to the problem of insufficient revenue collection. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing.

In Dec., the Federal Board of Revenue (FBR) said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during this fiscal year.

Late last month, the tax regulator said it had decided to block mobile connections of 500,000 people who had not filed their tax returns and has since engaged with the Pakistan Telecommunication Authority (PTA) and telecom Operators to enforce its income tax general order.

“After several deliberations, the telecom operators have agreed to initiate the manual blocking process in small batches until their systems are fully equipped to automate it,” the FBR said in a statement.

“In this regard, the first batch comprising 5000 non-filers has been communicated to the telecom operators today for compliance regarding SIM blockage.”

Subsequent batches will be sent to telecom operators on a daily basis, according to the FBR. The operators have also started sending messages to non-filers regarding blocking of their connections.

The development comes amid efforts by the government to broaden the tax base, including digitalization of the tax collection system to prevent leakages as a large segment of the national economy remains undocumented.

Pakistan, which has been facing an economic meltdown, is also making efforts to introduce structural economic reforms. The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of its gross domestic product, for the current fiscal year before the government presents its budget in June.

ISLAMABAD: Arif Alvi, former president and a close aide of jailed former prime minister Imran Khan, on Saturday denied being appointed chairman of Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party.

The statement came amid widespread speculation about Alvi being made the PTI chairman to resolve the party’s issues with the powerful military establishment whom Khan has accused of sidelining him, according to some media reports.

The reports suggested the former president had been tasked with the “important” job following his meeting with Khan at Adiala jail in Rawalpindi, however, Alvi denied these reports.

“There is unnecessary speculation that Mr.@ImranKhanPTI intends to appoint me as Chairman of the party. There is no such thing being envisaged by my leader nor was it discussed in my meeting with him,” he said on X.

“These speculations create confusion in a party whose leadership is wrongfully & unjustly incarcerated.”

Alvi said the incumbent PTI chairman Gohar Khan was leading the party well. “I would like to put this inaccurate non-issue to rest with a clear denial,” he added.

Alvi’s meeting with Khan came a day after the ex-premier reportedly turned down the Pakistani military’s demand to apologize for the violent protests, allegedly staged by his supporters over his brief arrest in a graft case, that targeted military installations and public property on May 9, 2023.

Hundreds were arrested in the aftermath and some were tried by military courts after the authorities promised to bring the perpetrators and instigators of the violence to justice.

During the alleged crackdown against the PTI, Alvi, who was the then president, was said to be making efforts to bridge the gap between his party and Pakistan’s powerful military.

Khan was ousted in 2022 after falling out with Pakistan’s powerful military leaders who many say backed him into power in 2018. In opposition, he waged an unprecedented campaign of defiance against the military establishment which has directly ruled the South Asian nation for nearly half of its history.

Arguably Pakistan’s most popular politician, Khan says the cases against him are “politically motivated,” aimed at keeping him from returning to power. The military denies it.