ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday instructed the relevant authorities to devise a comprehensive plan for increasing tax revenue without burdening the common man, setting a target of a 15 percent tax-to-GDP ratio during his government’s current tenure.
Pakistan’s narrow tax base and enduring tax evasion issue leads 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, increasing the nation’s debt burden.
The country’s new administration has decided to digitalize the tax collection system to prevent leakages, even as a large segment of the national economy remains undocumented.
“In the next five years, we will raise the tax to 15 percent of GDP,” the prime minister told meeting focusing on the affairs of the finance ministry. “Expenditure will be reduced to decrease the fiscal deficit.”
He emphasized the importance of expediting the privatization process of state-owned enterprises, especially those incurring losses.
“The government is focusing on gradually reducing public debt, pension and subsidy reforms, and the restructuring and privatization of state-owned enterprises,” he noted. “A comprehensive plan will also be formulated and presented to reduce foreign debt.”
The prime minister said the completion of the standby program with the International Monetary Fund (IMF) was encouraging, adding his administration would work hard to get a new bailout facility from the international lender.
He also maintained the government was willing to engage internationally renowned experts who could help strengthen the national economy.
The meeting, which was also attended by finance minister Muhammad Aurangzeb along with other senior cabinet members, was briefed about revenues, fiscal deficit, foreign exchange reserves, remittances and the current account.
Progress on the implementation of the government’s decision to reduce its expenditures, along with reforms in the subsidies and electricity sectors, also came up for discussion.
Pakistan PM sets target for 15% tax-to-GDP ratio within five years
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Pakistan PM sets target for 15% tax-to-GDP ratio within five years
- The government has already decided to digitalize the tax system to prevent any leakages
- PM Sharif wants his administration to bring down expenditure for reduced fiscal deficit
Karachi pilgrims utilize Makkah Route Initiative for first time as Pakistan initiates Hajj flights
- The first flight carrying 180 pilgrims took off from Karachi’s Jinnah International Airport on Thursday
- This year, about 179,210 Pakistanis will perform pilgrimage under government and private Hajj schemes
KARACHI: Pakistan launched its Hajj flight operation on Thursday, with two private airlines departing from Karachi’s Jinnah International Airport, marking the start of a month-long special air service to transport pilgrims to Saudi Arabia under the Makkah Route Initiative.
The initiative, launched by Saudi authorities in collaboration with several Muslim-majority countries, enables pilgrims to complete the immigration process in their home country, allowing them to bypass these procedures upon arrival in the kingdom.
Pakistan joined the initiative in 2019 as part of a pilot program that started in Islamabad. Its success led to plans for the program’s expansion to other cities, with pilgrims from Karachi benefitting from it for the first time this year.
The first Airblue flight carrying 180 pilgrims departed at approximately 2:18 AM, while the second, operated by Air Sial with about 155 pilgrims onboard, left at around 2:45 AM from Karachi.
“Alhamdulillah, our first Hajj Flight PF754 departed a while ago from Karachi to Madinah which marks the commencement of our Hajj Operation 2024,” AirSial proclaimed in a social media post.
https://x.com/airsial/status/1788343614998806546
Earlier this week, a group of 44 Saudi officials arrived in Karachi to carry out immigration procedures under the Makkah Route Initiative for Hajj pilgrims.
As part of the month-long pre-Hajj operations starting this week, 11 flights will arrive in Madinah on Thursday from five major Pakistani cities, transporting about 2,160 pilgrims.
Pilgrims from Islamabad, Karachi, Lahore, Multan and Peshawar will be flown to Prince Mohammad Bin Abdulaziz International Airport in Madinah, marking a significant influx of devotees.
Five airlines – Pakistan International Airlines, Saudi Airlines, Airblue, Serene Air and Air Sial – will operate 259 flights to ferry pilgrims from eight major cities in Pakistan, including Islamabad, Karachi, Lahore, Peshawar, Multan, Quetta, Sialkot and Sukkur, to Jeddah and Madinah under the government scheme.
Upon arrival, Pakistani pilgrims will be received by officials at the Pakistan Consulate General and the Hajj Mission of the Ministry of Religious Affairs.
For the first 15 days, all flights will depart from various Pakistani cities to Madinah, continuing until May 23. Thereafter, flights will switch to King Abdulaziz International Airport in Jeddah until the completion of the pre-Hajj operation.
This year, around 179,210 Pakistanis will perform Hajj under both government and private schemes.
Hajj, one of the five pillars of Islam, requires every adult Muslim who is financially and physically able to undertake at least once in their lifetime a pilgrimage to the holy Islamic sites in Makkah and Madinah.
Pakistan prepare for Ireland series as visa delays put Amir’s participation in doubt
- Pacer Mohammad Amir did not leave with Pakistan’s cricket team for Dublin on Tuesday due to visa delays
- Pakistan will play three T20Is against Ireland from May 10-14 before traveling to UK for a T20I series against England
ISLAMABAD: The Pakistan cricket team will hold their first training session today, Thursday, in Dublin for an upcoming three-match T20I series against Ireland, with star pacer Mohammad Amir’s participation in the series doubtful due to visa delays.
Left-arm fast bowler Amir, a permanent resident of the United Kingdom, applied for an Ireland visa along with the rest of the Pakistan side, according to a PCB official. However, while the rest of the squad received visas before their travel to Dublin on Tuesday, Amir did not and remained in Pakistan, cricket website ESPNcricinfo said.
The website reported that the PCB is in contact with Cricket Ireland over the issue. Pakistan play three T20Is against Ireland from May 10-14. Given the short duration of the tour, it seems unlikely Amir would be able to feature in the series.
“Pakistan cricket team will hold their first training session in Dublin tomorrow [Thursday],” the PCB said in a statement on Wednesday. “The first T20 match between Ireland and Pakistan will be played on May 10.”
Amir, 32, came out of retirement last month and was selected to play against New Zealand in a five-match T20I series. Together with pacers Naseem Shah, Shaheen Shah Afridi and Haris Rauf, he would add strength to Pakistan’s bowling lineup as it gears up for the ICC T20 World Cup 2024.
The mega event will be held for the first time in the US and the West Indies in June. Pakistan will travel to the UK from May 22-30 to play against England.
The South Asian country are one of the favorites to lift the cup, though their performance has dipped somewhat in the shortest format of the game recently.
Pakistan lost 4-1 to New Zealand in an away series in January under then-captain Shaheen Shah Afridi. After Babar Azam was reappointed Pakistan’s captain, the green shirts managed to draw a home series 2-2 against a second-string New Zealand side last month.
Pakistani forces kill 6 militants in volatile northwest near Afghanistan— army
- Pakistani security forces carry out twin raids in Dera Ismail Khan, North Waziristan districts
- Such operations are often conducted against Pakistani Taliban or Tehreek-e-Taliban Pakistan group
PESHAWAR, Pakistan: Pakistani security forces killed six militants in twin raids Wednesday targeting their hideouts in the country’s volatile northwest region bordering Afghanistan, the military said.
Five militants were killed in the first raid in Dera Ismail Khan district in Khyber Pakhtunkhwa province, the military said in a statement. It did not provide further details about the slain insurgents, and only said the men were behind various previous attacks on the security forces.
Another militant was killed in the second raid in a former stronghold of the Pakistani Taliban in the North Waziristan district in the northwest.
The statement did not provide any further details about the identity of the slain men.
Such operations often target the Pakistani Taliban, which has been emboldened by the Taliban takeover of Afghanistan in 2021. Known as the Tehreek-e-Taliban Pakistan or TTP, it is a separate group but a close ally of the Afghan Taliban.
Pakistan hikes electricity prices by Rs2.83 per unit citing fuel cost adjustment
- Fuel cost adjustment for March to reflect in consumers’ bills for the month of May, says power regulator
- Pakistan has been caught in a high inflationary cycle since April 2022 due to surging food and fuel prices
ISLAMABAD: Pakistan’s National Electric Power Regulatory Authority (NEPRA) on Wednesday authorized distribution companies to levy a Rs2.83 per unit additional charge on consumers’ bills for May, with the move likely to fuel inflation in a country already suffering an economic crisis.
A notification by NEPRA seen by Arab News stated that the fuel cost adjustment pertains to March, adding that the additional charges would apply to all consumer categories except “Electric Vehicle Charging Stations (EVCS) and lifeline consumers.”
“The said adjustment shall be shown separately in consumers’ bills on the basis of units billed to the consumer in the month of March 2024,” the notification said.
Pakistan has been caught in a high inflationary spiral since April 2022, with the highest-ever inflation rate recorded at 38 percent in May 2023. The government credits soaring inflation to painful decisions it had to take to meet conditions for an International Monetary Fund (IMF) bailout program, including hiking energy tariffs and fuel prices.
Gas and electricity rates were hiked by 318.7 percent and 73 percent respectively in a year, according to official data.
The price hikes come as Pakistan is set to begin discussions with the IMF this month over a new multi-billion-dollar loan agreement after completing its nine-month, $3 billion loan arrangement with the lender.
Under the last IMF bailout, Pakistan was told to prevent further accumulation of circular debt in its power sector, arising from subsidies and unpaid bills. For a new program, the South Asian nation will need to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft.
It will also have to maintain power and gas tariffs at levels that ensure cost recovery, with adjustments made to safeguard the financially vulnerable, through existing progressive tariff structures.
Senior World Bank official concludes Pakistan trip after discussing reforms with officials
- World Bank Vice President for South Asia Martin Raiser meets PM Sharif, key officials in Islamabad
- Raiser praises Pakistan’s reform plans to boost growth, attract private investment and tackle poverty
ISLAMABAD: A senior World Bank official concluded his three-day visit to Pakistan on Wednesday, holding discussions with Prime Minister Shehbaz Sharif and key government ministers on Islamabad’s fiscal and economic reforms, a statement from the international institution said.
World Bank Vice President for South Asia Martin Raiser arrived in the federal capital on May 6, with his visit taking place as Pakistan faces a chronic balance of payment crisis, forcing it to turn to the International Monetary Fund (IMF) for a new long-term bailout deal.
Pakistan has faced the challenges of revenue generation and government expenditure in the past and struggled with high levels of debt, a large fiscal deficit and an ongoing need for structural reforms to improve its fiscal sustainability.
“The World Bank Vice President for South Asia, Martin Raiser, concluded his three-day visit to Pakistan today and reaffirmed the World Bank’s support to stabilize the economy and accelerate inclusive and resilient growth,” a press release by the international institution read.
It said Raiser met Sharif, ministers of finance, water, power, energy, and petroleum, and his counterparts to discuss Pakistan’s development priorities.
“The discussions focused on economic and fiscal reforms, human capital development, adaptation to climate change, energy sector reforms, and digitalization as a foundational enabler and accelerator of development,” the World Bank added. \
Raiser said he was pleased to learn of Pakistan’s reform plans to boost growth and attract private investment, strengthen climate resilience, and invest in human capital to tackle daunting challenges such as child stunting and poverty.
The World Bank official also visited Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province to meet Chief Minister Ali Amin Gandapur.
“Discussions focused on the provincial developmental priorities and how can the World Bank step up its support in key sectors, like education, water and sanitation, health, rural roads, and livelihoods,” the statement said.
He also attended a national conference on education in Islamabad, where PM Sharif also spoke. Raiser reaffirmed the World Bank’s commitment to urgent action to tackle the large number of out-of-school children in Pakistan.
