Union of salaried Pakistanis petitions Supreme Court against new taxes

Commuters ride past the Pakistan's Supreme Court building in Islamabad on January 12, 2024. A second judge's resignation from Pakistan's Supreme Court was accepted on January 12, amid concerns of a growing rift in the judiciary ahead of general elections next month. (AFP/File)
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Updated 01 July 2024
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Union of salaried Pakistanis petitions Supreme Court against new taxes

  • Budget 2024-25 has increased tax liability by Rs22,500 for all persons earning over Rs50,000 a month
  • Last year too the government had imposed more income tax on salaried people it deemed “high earners”

ISLAMABAD: The Salaried Class Alliance of Pakistan has petitioned the Supreme Court against what it calls “unfair” taxes imposed on workers under the budget 2024-2025 that came into effect today, Monday, according to a copy of the document seen by Arab News.

The government presented the national budget on June 12 with a challenging tax revenue target of 13 trillion rupees ($46.66 billion) for the year starting July 1, up about 40 percent from the current year, to strengthen the case for a new rescue deal with the International Monetary Fund (IMF). Parliament on Friday passed the finance bill, which has increased the tax liability by Rs22,500 for all persons earning more than Rs50,000 a month. Last year also the government had imposed a higher income tax on salaried persons it deemed “high earners.”

“The salaried class, already strained by high inflation and inadequate services, faces escalated tax rates without corresponding benefits or relief measures,” the union’s petition to the top court read. “The government’s approach neglects opportunities to broaden the tax base by targeting non-filers and the informal sector, crucial for equitable taxation.”

The petition said increased taxation would contribute to the brain drain of skilled professionals and capital flight, which were detrimental to Pakistan’s economic growth and stability, while also highlighting the practice of unjust taxation given the discrepancies in tax treatment for private sector salaried individuals and other sectors like government workers.

The petition called on the court to encourage measures to enforce taxation on non-active taxpayers and informal sectors.

“Request the Supreme Court’s intervention through Suo moto notice to review the constitutional validity and fairness of the tax measures proposed in the Finance Budget 2024-2025,” the petition said, outlining proposed actions for the court. 

“We appeal to the Honorable Court, under Article 184(3) of the Constitution of Pakistan, to uphold justice and protect the rights of the salaried class and all taxpayers in Pakistan. The current taxation policies threaten economic stability and fairness. We seek your urgent attention and intervention to ensure that taxation policies align with principles of equity, economic growth, and national development.”

The rise in the Pakistan government’s tax target is made up of a 48 percent increase in direct taxes and a 35 percent hike in indirect taxes over revised estimates of the current year. Non-tax revenue, including petroleum levies, is seen increasing by 64 percent. The tax would increase to 18 percent on textile and leather products as well as mobile phones besides a hike in the tax on capital gains from real estate. Workers will also get hit with more direct tax on income.

Opposition parties, mainly parliamentarians backed by the jailed former Prime Minister Imran Khan, and major trade bodies have rejected the budget, saying it will be highly inflationary and lead to industry shutdowns. On Monday, a main religious political party, the Jamaat-e-Islami, announced it would hold a sit-in in Islamabad against taxes and inflation from July 12. 

Pakistan’s central bank has also warned of possible inflationary effects from the budget, saying limited progress in structural reforms to broaden the tax base meant increased revenue must come from hiking taxes. 

The upcoming year’s growth target has been set at 3.6 percent, with inflation projected at 12 percent.


Pakistan says will launch ‘smart kinetic operations’ against separatist groups in southwest

Updated 12 October 2024
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Pakistan says will launch ‘smart kinetic operations’ against separatist groups in southwest

  • Announcement follows the killing of 20 coal miners with heavy weapons by unidentified militants
  • Balochistan’s chief minister says he has full support from the federation to deal with the situation

QUETTA: Balochistan Chief Minister Mir Sarfaraz Bugti on Saturday announced plans for “smart kinetic operations” against separatist militants operating in the southwestern Pakistani province after unidentified assailants killed at least 20 coal miners with heavy weapons in Duki, located in the Loralai Division.

The incident, which occurred on Friday, sparked protests from labor organizations, with miners halting operations to demand better protection for workers. The attack was widely condemned, including by Prime Minister Shehbaz Sharif, who directed authorities to provide urgent medical treatment to the seven people injured.

Bugti reiterated the government’s resolve to tackle militants during a media interaction after visiting the trauma center in Quetta to meet the injured.

“We are going to launch smart kinetic operations against terrorist groups,” he told the reporters. “Terrorists have an advanced communication system. We have to think whether we have provided advanced technologies to our security agencies [as well].”

He said the security forces had launched a search operation in Duki after the attack and were pursuing the militants.

In response to a question, the chief minister said the province had full support from the federal authorities to deal with the situation.

“I am saying again there isn’t any need for a full-scale military operation in Balochistan, but we have to rethink our strategies,” he continued.

Balochistan, which shares its border with Iran and Afghanistan, has been the scene of a low-level insurgency by separatist militants who blame the government for exploiting the province’s mineral resources without benefiting its residents. The charge is denied by the state which says it has launched several high-profile projects for the development of the region.

Last August, ethnic nationalist militants hit several civil and military targets in a string of coordinated attacks in the province, killing more than 50 people.

A majority of the assaults were claimed by the Balochistan Liberation Army (BLA), the most prominent among a number of separatist groups operating in the province that is home to key China-led infrastructure projects, including a port and a gold-copper mine.

The government refused to launch a full-scale military operation after the attacks, but the military has stepped up intelligence-based operations to quell the rising tide of the separatist insurgency in Balochistan.


Pakistani general reaffirms support at Riyadh forum to strengthen Saudi Defense Forces

Updated 55 min 2 sec ago
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Pakistani general reaffirms support at Riyadh forum to strengthen Saudi Defense Forces

  • The forum aims to enhance bilateral security cooperation, particularly in defense production and technology
  • Both sides agree modern technological advancements necessitate increased defense industrial cooperation

KARACHI: A top Pakistani general reaffirmed his country’s commitment to building the capacity of the Royal Saudi Defense Forces this week while attending a bilateral forum in Riyadh, according to a statement by Inter-Services Public Relations (ISPR), the media wing of Pakistan’s military, on Saturday.

The Pakistan-KSA Bilateral Defense Industrial Forum is a platform aimed at enhancing security cooperation between the two countries, particularly in the areas of defense production and technology.

The 7th meeting of the forum took place in Riyadh on Thursday, during which Pakistan’s tri-services delegation, led by Chief of General Staff (CGS) Lt.-Gen. Muhammad Avais Dastgir, discussed a wide range of security-related issues.

“During the meeting, the CGS affirmed Pakistan’s continuing support towards capacity building of Royal Saudi Defence Forces,” the ISPR said.

Pakistan has regularly trained Saudi military officials and shared its professional expertise with the kingdom in various defense-related areas.

The official statement said that Saudi officials also “acknowledged Pakistan’s achievements and sacrifices in war against terrorism and its valuable contributions towards regional peace and stability.”

The bilateral forum also focused on challenges to global and regional security and their implications for the defence forces.

Both sides noted that rapid advancements in modern technologies necessitated further enhancing defense industrial cooperation in critical capabilities between the two states.

“In this context, progress of ongoing areas of collaboration was reviewed while new areas of collaboration were also agreed,” the ISPR said.

 


15 dead, seven injured in renewed tribal clashes in Pakistan’s Kurram district

Updated 12 October 2024
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15 dead, seven injured in renewed tribal clashes in Pakistan’s Kurram district

  • Police say the incident was triggered after unidentified gunmen opened fire on an influential tribal elder
  • Previously, relatively small incidents have led to deadly tribal conflicts and sectarian violence in Kurram

DERA ISMAIL KHAN: Tension gripped Pakistan’s northwestern Kurram district as clashes broke out between two rival tribes, leaving 15 people dead and injuring another seven amid sporadic gunfire in parts of the region, officials said Saturday.

Kurram, formerly a semi-autonomous tribal area, has a history of bloody conflicts that have claimed hundreds of lives over the years. A major conflict in the district, triggered in 2007, lasted for years before being resolved by a jirga, a council of tribal elders, in 2011. However, clashes erupted again over a property dispute in July this year, leaving 38 dead and 158 injured in the region.

Speaking to Arab News over the phone, Kurram Deputy Commissioner Javed Ullah Mehsud said the recent round of violence began after unidentified gunmen opened fire on an influential tribal elder, Ijaz Hussain, who sustained serious injuries in the attack.

“Subsequently, a passenger convoy came under attack in the Kunj Alizai area of the district, in which 15 people were killed and six others injured,” he said.

Mehsud informed the district administration was working to control the situation with the help of local leaders and law enforcement officials, trying to prevent the conflict from spreading to other parts of the area.

He described these efforts as crucial, as relatively small incidents in Kurram have previously escalated into deadly tribal conflicts and sectarian violence. The region is also prone to militancy.

“For a permanent solution to such problems, an inclusive tribal committee should be formed to keep the situation in constant check,” Brigadier (retired) Said Nazir Mohmand, a security analyst familiar with the area, told Arab News.

“Secondly, the writ of the state must be ensured in the district for swift action against troublemakers,” he added.

Dr. Mir Hassan Jan, Medical Superintendent at the District Headquarters Hospital in Upper Kurram, said the authorities had put health facilities in the area on high alert to deal with emergency situations.

“We have received nine bodies and another six injured from the clashes in Kurram,” he said. “The rest of the casualties might have been taken to other health facilities in the district.”


Pakistan lists SCO summit attendees, excluding Afghanistan, ahead of high-profile event

Updated 56 min 45 sec ago
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Pakistan lists SCO summit attendees, excluding Afghanistan, ahead of high-profile event

  • Afghanistan holds the SCO observer status that has reportedly remained inactive since Taliban’s 2021 takeover
  • Pakistan has made extensive preparations for the summit, focusing on Islamabad’s security and beautification

ISLAMABAD: The foreign office of Pakistan released the names of countries attending the 23rd meeting of the Council of Heads of Government (CHG) of the Shanghai Cooperation Organization (SCO), scheduled for October 15-16 in Islamabad, notably excluding Afghanistan, while key member states like China, Russia and India are set to attend.
Afghanistan is not a full SCO member but holds observer status, which has reportedly remained inactive since September 2021, following the Taliban takeover.
Pakistan’s relations with Afghanistan have severely deteriorated for more than a year over the issue of cross-border militancy, with officials in Islamabad repeatedly accusing the Taliban-led government of “facilitating” armed groups responsible for attacks on Pakistani soil, an allegation denied by Kabul.
Tensions further escalated last year when Pakistan decided to expel Afghan refugees, citing national security concerns and the alleged involvement of some refugees in militancy and crime.
“Pakistan will be hosting the Twenty-third meeting of the Council of the Heads of Government (CHG) of the Member States of the Shanghai Cooperation Organization (SCO) from 15 to 16 October 2024 in Islamabad,” the foreign office said in a brief curtain raiser.
“SCO member States will be represented by the Prime Ministers of China, Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan as well as the First Vice President of Iran and External Affairs Minister of India,” it added. “Prime Minister of Mongolia (Observer State) and Deputy Chairman of the Cabinet of Ministers and Foreign Ministers of Turkmenistan (Special Guest) will also participate in the meeting.”
The foreign office said Prime Minister Shehbaz Sharif will preside over the SCO meeting in his capacity of the current chair of the CHG.
He will also hold important bilateral meetings with visiting heads of delegation on the sidelines of the summit.
The government has made extensive preparations for the event while focusing on both security and beautification of Islamabad.
According to Dawn newspaper, over 10,000 security personnel have been deployed to ensure the safety of around 900 international delegates.
Special efforts are also being made to enhance the appearance of the city, particularly along VIP routes and the Jinnah Convention Center where the summit will be held.
The prime minister himself has finalized the arrangements by visiting all these places.
The SCO meeting will discuss ongoing cooperation in the fields of economy, trade, environment, socio-cultural linkages and review the performance of the Organization.
The participants will adopt important organizational decisions to further enhance cooperation among SCO member states and approve the budget of the organization.
 


Saudi businessman expresses interest in setting up agricultural farms during visit to Pakistan

Updated 12 October 2024
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Saudi businessman expresses interest in setting up agricultural farms during visit to Pakistan

  • Najd Gateway Agricultural Company has already agreed to cultivate highly nutritious cattle fodder for Pakistan
  • Its chairman says Pakistan’s agricultural activities will strengthen further while praising government’s efforts

ISLAMABAD: The top official of a leading Saudi agricultural firm expressed interest in developing its own farms in Pakistan, state-owned media reported Saturday, following his visit to the Green Corporate Initiative headquarters in the federal capital.

The Najd Gateway Agricultural Company from Saudi Arabia is a key player in the expansion of agricultural and livestock initiatives, both domestically and internationally.

Earlier this year, in March, the company signed an agreement with the Special Investment Facilitation Council (SIFC), a hybrid civil-military body facilitating foreign businesses in Pakistan, to cultivate 5,000 acres of highly nutritious cattle fodder.

Its chairman, Prince Mansour M. Al Saud, interacted with officials at the GCI headquarters, who aim to modernize agriculture in the country, to explore investment opportunities.

“I visited [the Green Pakistan Initiative headquarters] today and spent almost two hours here,” the chairman of the Saudi company said in a video shared by Radio Pakistan. “I have seen many primary objectives they are working on, including land development and how they are focusing on biodiversity to create a significant impact on the social lives of the communities.”

“As an investor in agriculture here in Pakistan, I would be glad to get involved in their system and program, and to establish our own farms and projects in Pakistan,” he added.

Pakistan and Saudi Arabia signed 27 agreements and memorandums of understanding (MoUs) worth about $2 billion during the visit of the kingdom’s Investment Minister Khalid Bin Abdulaziz Al Falih.

Federal Minister for Planning and Development Ahsan Iqbal specifically mentioned the objective of increasing agricultural productivity as a key focus area for the government during his meeting with the Saudi official.

The Najd Gateway Agricultural Company’s chairman also expressed hope that Pakistan’s agricultural activities will strengthen in his video message.