Pakistan telecom operators agree to block mobile connections of tax non-filers — regulator

In this picture taken on July 12, 2018, students use their mobile phones at a campus in Islamabad. (AFP/File)
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Updated 11 May 2024
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Pakistan telecom operators agree to block mobile connections of tax non-filers — regulator

  • Last month, the tax regulator said it had decided to block mobile connections of 500,000 people who did not file tax returns
  • The FBR has communicated the first batch of 5,000 non-filers to telecom operators for blocking of their mobile connections

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.


Pakistan combing for perpetrators after deadly Balochistan attacks

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Pakistan combing for perpetrators after deadly Balochistan attacks

  • Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-locals
  • Militants stormed banks, jails, police stations and military installations, killing 31 civilians and 17 security personnel, the Balochistan chief minister says

QUETTA: Pakistan forces were hunting on Sunday for the separatists behind a string of coordinated attacks in restive Balochistan province, with the government vowing to retaliate after more than 190 people were killed in two days.

Around a dozen sites remained sealed off, with troops combing the area a day after militants stormed banks, jails, police stations and military installations, killing at least 31 civilians and 17 security personnel, according to the chief minister of Balochistan province.

At least 145 attackers were also killed, he added, while an official told AFP that a deputy district commissioner had been abducted.

That figure includes more than 40 militants that security forces said were killed on Friday.

Mobile internet service across the province has been jammed for more than 24 hours, while road traffic is disrupted and train services suspended.

After being rocked by explosions, typically bustling Quetta lay quiet on Sunday, with major roads and businesses deserted, and people staying indoors out of fear.

Shattered metal fragments and mangled vehicles litter some roads.

"Anyone who leaves home has no certainty of returning safe and sound. There is constant fear over whether they will come back unharmed," Hamdullah, a 39-year-old shopkeeper who goes by one name, told AFP in Quetta.

The chief minister, Sarfraz Bugti, told a press conference in Quetta that all the districts under attack were cleared on Sunday.

"We are chasing them, we will not let them go so easily," he said.

"Our blood is not that cheap. We will chase them until their hideouts."

The Baloch Liberation Army (BLA), the province's most active militant separatist group, claimed responsibility for the attacks in a statement sent to AFP.

The group, which the United States has designated a terrorist organisation, said it had targeted military installations as well as police and civil administration officials in gun attacks and suicide bombings.

Interior Minister Mohsin Naqvi, who flew to Quetta late Saturday to join funerals, claimed without offering any evidence that the attackers were supported by India.

"We will not spare a single terrorist involved in these incidents," he said.

In a press conference on Sunday, Pakistan Defence Minister Khawaja Asif likewise claimed the attackers enjoyed links to India and pledged to "completely eliminate these terrorists".

India denied any involvement.

"We categorically reject the baseless allegations made by Pakistan, which are nothing but its usual tactics to deflect attention from its own internal failings," said foreign ministry spokesman Randhir Jaiswal on Sunday.

'BROAD DAYLIGHT'

Pakistan has been battling a Baloch separatist insurgency for decades, with frequent armed attacks on security forces, foreign nationals and non-local Pakistanis in the mineral-rich province bordering Afghanistan and Iran.

Saturday's attacks came a day after the military said it killed 41 insurgents in two separate operations in the province.

The insurgents released a video showing group leader Bashir Zaib leading armed units on motorcycles during the attack.

Another clip claimed to show the abducted senior official from Nushki district.

In another district, militants freed at least 30 inmates from a district jail, while seizing firearms and ammunition. They also ransacked a police station and took ammunition with them.

"It was one of the most audacious attacks in the region in recent years, as unlike other attacks, it took place in broad daylight," Abdul Basit at the S. Rajaratnam School of International Studies in Singapore told AFP.

"It is alarming that militants, with coordinated manpower and strategic acumen, have now reached the provincial capital," he added.

Several of the BLA's videos featured women insurgents, while Defence Minister Asif said at least one of the suicide bombers was a young woman.

"They continue to showcase women strategically in high-visibility attacks," Basit said.

Pakistan's poorest province and largest by landmass, Balochistan lags behind the rest of the country in almost every index, including education, employment and economic development.

Baloch separatists accuse Pakistan's government of exploiting the province's natural gas and abundant mineral resources, without benefiting the local population. The government denies this.

The BLA has intensified attacks on Pakistanis from other provinces working in the region in recent years, as well as foreign energy firms.

Last year, the separatists attacked a train with 450 passengers on board, sparking a deadly two-day siege.