Pakistan asks authorities to revise revenue strategy to reduce country’s debt

A man walks out of the Federal Board of Revenue (FBR) office in Islamabad on July 4, 2024. (AFP)
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Updated 13 July 2024
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Pakistan asks authorities to revise revenue strategy to reduce country’s debt

  • The statement came hours after Pakistan reached a staff-level agreement with International Monetary Fund for a new $7 billion loan deal
  • Islamabad agreed in exchange to conduct further unpopular reforms, including widening the South Asian nation’s chronically low tax base

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday asked Federal Board of Revenue (FBR) officials to re-evaluate and revise their strategy to enhance revenue collection to rid Pakistan of a massive public debt of $242 billion, Sharif’s office said.
The statement came hours after Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan deal. Islamabad agreed in exchange to conduct further unpopular reforms, including widening the South Asian nation’s chronically low tax base.
Pakistan last year came to the brink of default as the economy shriveled amid political chaos, catastrophic 2022 floods and decades of mismanagement. The nation was saved by last-minute loans from friendly countries as well as support from the IMF, but its finances remain in dire straits with high inflation and staggering public debts.
Presiding over a meeting of officials at the FBR headquarters, Sharif called the revenue watchdog the “backbone” of the country’s economy and urged that sectors which were not paying taxes must be brought into the tax net.
“The prime minister issued the directives to immediately release Rs2 billion to develop the Web Based One Customs (WeBOC) System on modern lines,” Sharif’s office said in a statement.
He said the process of FBR’s digitization had begun and it would be completed in the most “comprehensive and coordinated manner,” promising full support to the revenue collection body in acquiring the latest technology.
Officials informed the participants that 4.9 million taxable persons had been identified in the country by using modern technology, according to the statement. PM Sharif directed increasing the tax base and bringing these persons into the tax net immediately.
During the 2024-25 fiscal year beginning on July 1, Sharif’s government aims to raise nearly $46 billion in taxes, a 40 percent increase from the previous year. It has used more unusual methods, including blocking 210,000 mobile connections, to compel people to file their tax returns. Islamabad also aims to reduce its fiscal deficit by 1.5 percent to 5.9 percent in the coming year.
But Pakistan’s public debt of $242 billion remains a huge problem for the South Asian country and servicing it may swallow up half of the country’s income in 2024, according to the IMF.


Separated twice: An Afghan man’s life in Pakistan and the fear of losing home again

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Separated twice: An Afghan man’s life in Pakistan and the fear of losing home again

  • Lost as a child in Peshawar, Mohammad Rahim Khan built a life in Pakistan but remains undocumented
  • Deportation drive of ‘illegal’ foreigners exposes legal gaps around adoption, marriage, refugee status

ISLAMABAD: Mohammad Rahim Khan was five years old when he last saw his mother.

It was at the Hajji Camp bus stop in Pakistan’s northwestern city of Peshawar, more than four decades ago. His mother, an Afghan refugee fleeing war, had brought him across the Tari Mangal border in Kurram district and into Pakistan. While waiting at the crowded terminal, Khan wandered to a nearby toy shop. When he returned, she was gone.

He searched for her for two days. She never came back.

A local shopkeeper, Ali Muhammad, took pity on the child and brought him home, promising to help find his family. The temporary shelter became permanent. Khan grew up in Pakistan, adopted informally into the household, and never returned to Afghanistan.

Now 45, he lives on the outskirts of Islamabad in a modest two-room house, working as a daily wage laborer. But a nationwide deportation drive launched by Pakistan in 2023 has placed his entire life under threat.

Since November 2023, authorities have deported nearly 2 million Afghan nationals, targeting those without legal documentation. Khan, who has remained undocumented throughout his adult life, fears he may soon be among them.

“I spoke to my lawyer that I am very worried,” Khan told Arab News. “I love Pakistan.”

A FAMILY WITHOUT PAPERS

Ali Muhammad later married Khan to his daughter, Gul Mina. Together, they have six children, four daughters and two sons. Yet despite decades in Pakistan, Khan’s Afghan nationality continues to shadow the family.

Khan never held an Afghan refugee card, Afghan Citizen Card (ACC), Proof of Registration (POR), or any other formal documentation. His family assumed for decades that his informal adoption, marriage to a Pakistani citizen, and long residence would provide sufficient legal standing. They only sought legal advice when the deportation drive began threatening separation.

Without a Pakistani national identity card, his children cannot obtain Form-B, the birth registration document required for school enrolment.

“They [children] are told to get a Form-B,” Gul Mina told Arab News. “Otherwise, they will not go to school.”

Three of their daughters were forced to leave school after eighth grade.

Healthcare has also been affected. When Khan’s 13-year-old son, Ehsanullah, fractured his arm, a public hospital refused to issue a registration card without identity documents.

“Then I went to a [private clinic] in Chak Shahzad and got my treatment there,” Khan said.

The family has petitioned the Islamabad High Court to block his deportation. Lawyers say the case highlights how thousands of long-term residents fall through legal cracks created by Pakistan’s citizenship, refugee and documentation framework.

LEGAL GREY ZONE

Pakistan does not legally recognize Western-style adoption. Instead, it uses a guardianship system under the 1890 Guardians and Wards Act, aligning with Islamic principles that preserve lineage, so adopted children don’t inherit or change their family name but receive care, education and welfare through court-appointed guardianship.

“Because we don’t have a legal pathway for adoption per se, the adopted child does not get citizenship of the adopting parents automatically,” said Advocate Umer Ijaz Gillani, a legal expert on citizenship.

Years earlier, Khan’s father-in-law had offered to register him as his biological son to obtain identity documents, but Khan refused, calling the move fraudulent. Because Khan later married his father-in-law’s daughter, both he and his wife cannot legally list the same person as their father on official records, leaving them without a lawful workaround.

Marriage offers no certainty either. Pakistan’s Citizenship Act of 1951 grants citizenship to foreign women married to Pakistani men, but is silent on foreign husbands married to Pakistani women.

While higher courts have, at times, ruled in favor of such men, implementation has been inconsistent. In October 2025, the Supreme Court struck down a high court order that had directed authorities to grant citizenship to an Afghan man married to a Pakistani woman.

Even the Pakistan Origin Card (POC), a long-term residency document, remains difficult to secure.

“We have experienced that in the case of especially Afghan men who marry Pakistani women, the government authorities are often reluctant to recognize this right,” Gillani said.

According to submissions made by government officials in court, authorities have received at least 117 applications for nationality from Afghan men married to Pakistani women following directives issued by the Peshawar High Court, reflecting a broader pattern rather than isolated cases.

‘NO RELAXATION’

Officials say the deportation policy allows no exceptions.

“No relaxation has been granted by the government, including for those who’ve married to Pakistani citizens,” said Asmatullah Shah, the chief commissionerate for Afghan refugees.

“If they want to live here, they should go back and apply for a visa and then they can come here with valid documentation.”

Legal experts note that deportation would send Khan to Afghanistan despite having no known relatives there, and that returning legally would require obtaining an Afghan passport and a Pakistani visa, costs far beyond the means of a daily wage laborer.

For Khan’s mother-in-law, Husn Pari, who raised him for decades as her own son, the prospect is devastating.

“When I am not able to meet [Khan] for one day, my day does not pass,” she said. “His own mother, how much pain must she be in?”

For Khan, the fear of deportation echoes the trauma of his childhood.

“Before I was separated from my first mother,” he said. “The second time I will be separated from my second mother. This is very difficult for me.”