KARACHI: Pakistan hopes to sign a staff-level agreement with the International Monetary Fund (IMF) by next month after presenting an Rs18.877 trillion ($67.76 billion) federal budget and setting a revenue collection target of more than 40 percent for the next fiscal year.
Finance Minister Muhammad Aurangzeb on Wednesday unveiled the first budget of the newly elected administration of Prime Minister Shehbaz Sharif, which is expected to play a pivotal role in Pakistan’s negotiations with the IMF to unlock yet another loan program.
“The talks with the IMF are going on in a positive direction and we are hopeful that in July we would move toward a staff-level agreement,” the minister told journalists during a post-budget media briefing in Islamabad.
The South Asian nation has set an ambitious revenue collection target of about Rs13 trillion ($46.55 billion) for the next fiscal year. This target is over 40 percent compared to the current fiscal year ending on June 30.
The government has projected the budget deficit to be 6.9 percent of the GDP while the primary surplus is expected to be at 1 percent of GDP. To achieve the tax collection target, the minister said the government’s basic principle was to expand the tax base.
“The current tax-to-GDP ratio is simply unsustainable,” Aurangzeb said, adding he wanted to increase it to 13 percent in the next three years.
The government measures are estimated to generate about Rs1.761 trillion through new revenue measures while income tax rates and slabs changes will unlock additional revenues of Rs70 billion from the salaried segment.
However, Aurangzeb insisted the salaried class would not be burdened.
“If you look on an individual level, the burden is not that heavy,” he said.
The government will collect about Rs350 billion from exporters and about Rs200 billion are estimated to be collected from retailers and wholesalers by increasing the advance sales tax.
The finance minister said the increase in petroleum development levy (PDL) would be gradually increased to Rs80 per liter and linked with international oil prices.
He said the government’s aim was to remove the concept of non-filers from the country by making them pay a higher rate of tax on transactions.
“I want to remove this concept of non-filers. I think Pakistan is the only country that has the non-filer category,” he added.
The finance minister said the government was in process of digitizing the country’s tax collection system operated by the Federal Board of Revenue (FBR) to end the undocumented economy.
“The process of digitization of FBR is underway and it will help in the documentation of the economy and digitizing finances,” he said, adding the digitization would reduce human intervention and corruption.
Asked about tax collection from retail outlets, he said the government would relaunch points of sales (POS) to minimize the cash flow that is about Rs9 trillion in circulation.
Defending the massive allocation of Rs1.5 trillion for the Public Sector Development Program (PSDP), the finance minister argued that the government wanted to ensure that ongoing projects were completed as 81 percent of funds were allocated for schemes that were being implemented.
Responding to a question about the privatization program of the incumbent government, he said the government was working with all stakeholders.
“PIA [Pakistan International Airlines] and Islamabad Airport are already up for privatization and transactions are expected to be completed by August,” he informed, adding the Lahore and Karachi airports would be privatized next on the prime minister’s direction.
Pakistan aims for July IMF agreement after presenting $67.76 billion federal budget
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Pakistan aims for July IMF agreement after presenting $67.76 billion federal budget
- Muhammad Aurangzeb remains optimistic about a positive outcome in the IMF talks, eyes 40% revenue increase
- The finance minister declares current tax-to-GDP ratio unsustainable, says he wants 13% increase in three years
Ex-Pakistan spy chief sentenced to 14 years for engaging in political activities, misusing authority
Ex-Pakistan spy chief sentenced to 14 years for engaging in political activities, misusing authority
- Hameed was arrested in August 2024 over accusations he was involved in land grabbing, snatching property from housing society owner
- Pakistan military says Hameed provided all legal rights during court martial, can appeal against decision “at the relevant forum”
ISLAMABAD: Former Pakistan spymaster Lt. Gen. Faiz Hameed has been sentenced to 14 years of rigorous imprisonment by a military court after being convicted of engaging in political activities, violating the Official Secrets Act and misusing his authority and government resources, the Pakistan army said on Thursday.
Hameed, who served as the director-general of Pakistan’s powerful Inter-Services Intelligence (ISI) agency from June 2019 until October 2021, was arrested in August 2024 over accusations he was involved in land grabbing and snatching valuables and property from the owner of a housing society. The military said at the time multiple instances of violations of the Pakistan Army Act post-retirement had also been established against Hameed, court martial proceedings had been initiated and that he was in the army’s custody.
Investigations against senior officers of Pakistan’s powerful army are extremely rare in Pakistan, where the military has ruled for almost half of the country’s history and wields considerable influence even during periods of civilian rule. The development takes place days after Field Marshal Syed Asim Munir was appointed as the country’s first chief of defense forces.
In its latest statement, the Pakistan military said court marital proceedings under Hameed began on Aug. 12, 2024, under the provisions of the Pakistan Army Act. It said the accused was tried under four charges related to engaging in political activities, violating the Official Secrets Act and misuse of authority and government resources, and causing “wrongful loss to persons.”
“After lengthy and laborious legal proceedings, accused has been found guilty on all charges and sentenced to 14 years rigorous imprisonment by the Court which has been promulgated on 11 December 2025,” the Inter-Services Public Relations (ISPR) said.
The statement further said the military trial process complied with all legal provisions, adding that Hameed was provided all legal rights, including the right to select a defense team of his choosing. It said the former spymaster had the right of appeal at “the relevant forum.”
“Involvement of convict in fomenting vested political agitation and instability in cahoots with political elements and in certain other matters is separately being dealt with,” the ISPR said.
The military had said last year that Hameed was being investigated for creating agitation and unrest, which had led to multiple incidents of “instability,” including but not limited to riots by alleged pro-Imran Khan protesters on May 9, 2023.
The nationwide riots broke out when the former prime minister was briefly detained on corruption charges. Thousands of Khan supporters took to the streets in anger, allegedly torching government and military buildings across the country. This was done, the military said, at “the behest of and in collusion with vested political interests.”
The violence led to a nationwide crackdown against Khan’s supporters and party leaders. The former premier and his party deny they instigated people to attack military and government buildings.
Hameed is widely seen as close to being Khan, who has also been in jail since August 2023 on a slew of charges that he says are politically motivated.
In the past, Hameed, who retired from the army in December 2022, was widely accused by the ruling Pakistan Muslim League-Nawaz (PML-N) party of Prime Minister Shehbaz Sharif of bringing down the government of his elder brother, Nawaz Sharif, in 2017.
The PML-N alleges Hameed worked with then opposition leader Khan to plot Nawaz’s ouster through a series of court cases, culminating in the Supreme Court’s disqualifying of him from office in 2017 for failing to disclose income and ordering a criminal investigation into his family over corruption allegations.
TOP CITY CASE
At the time of Hameed’s arrest in August 2024, the army said it had held a detailed inquiry against him in compliance with the orders of the Supreme Court on a petition filed by the management of the Top City housing society.
The petition, filed by the owner of Top City, Moeez Ahmed Khan (applicant), said the former ISI chief “misused” his office and under his direction, crimes were committed against Moeez and his family, including raids on his residence and business offices and arrests of him and his family members.
The petition said the applicant and his family members were robbed of their properties, the applicant was robbed of his business properties and compelled to transfer his businesses into the names of those nominated by Hameed, and false cases were registered against the applicant, his family and employees.
“Complying with the orders of Supreme Court of Pakistan, a detailed court of inquiry, was undertaken by Pakistan Army, to ascertain correctness of complaints in Top City Case made against Lt Gen Faiz Hameed (Retd),” the ISPR said last year.
Days after Hameed’s arrest, the Pakistani military said it had arrested three more retired officers in connection with the proceedings against the ex-spy chief.
Political parties and critics often accuse that the ISI spy agency interferes in politics and government in Pakistan. The military denies the allegations.
