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FINMIN DEFENDS ‘BUDGET STINGS’ AMID ‘PUBLIC OUTCRY’, JOURNALISTS’ PROTEST Thursday, 12 June, 2025 | 15 Zilhaj, 1446
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FBR'S FAILURE TO HOLD TRADITIONAL FINANCE BILL SESSION DRAWS PROTEST AS PUBLIC CONCERN OVER SALARIES AND ONLINE SHOPPING TAXES DOMINATES; INFORMATION MINISTER TARAR APOLOGISES, PLEDGES REDRESS
Rs 20.00 | Vol XV No 334 | 8 Pages | Lahore Edition
GOVT PROPOSES ALLOCATION OF RS1.75B FOR PMO EXPENSES IN FY26 BUDGET ISLAMABAD
staff RepoRt
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ISLAMABAD
ghulaM abbas
INANCE Minister Muhammad Aurangzeb on Wednesday addressed a post-budget press conference where he defended the government’s fiscal measures, responded to criticism on online shopping taxation and salary adjustments, and unveiled steps to broaden tax enforcement and boost exports. The event, however, began on a contentious note, with journalists staging a walkout over the absence of a technical briefing on the Finance Bill 2025. At the outset, reporters voiced their frustration for not being provided a detailed technical briefing of the finance bill by the Federal Board of Revenue (FBR), a customary post-budget practice. Despite the protest and partial walkout, the press conference continued with the minister flanked by FBR Chairman Rashid Mahmood Langrial and Finance Secretary Imdadullah Bosal.
ONLINE SHOPPING TAXATION AND SALARIED CLASS RELIEF: One of the major themes of the press conference was the taxation of the growing digital economy. Chairman FBR Rashid Mehmood and Member Inland Revenue, Dr. Najeeb Ahmad, explained that e-commerce, particularly in high-value retail categories like electronics and fash-
ion, was being streamlined for tax collection. “Items priced below Rs20,000 sold online are taxed at 0.25%, while boutique fashion items with higher margins are taxed at 2%,” he said. He emphasized that different rates were applied based on actual profit margins and sectoral realities, rather than applying blanket rates. Grocery items, with lower margins, faced a slightly higher effective rate. He also noted that earlier, online cash-on-delivery transactions weren’t being properly documented. “Pakistan is at risk of losing its digital sales tax rights globally as vendors mislabel cross-border digital sales as exports to evade taxes,” he cautioned. Minister Aurangzeb added that two significant measures were being introduced to bring Pakistan’s estimated Rs9.4 trillion cash economy into the tax net. Addressing concerns of the salaried class, the minister reiterated that their relief measures were “symbolic but significant.” The government has proposed a 10% raise in federal salaries and 7% in pensions, linking them to inflation trends. Responding to questions about why the minimum wage remained unchanged at Rs37,000, he said the government sought feedback from industries before making adjustments. “This budget is a signal to the salaried and formal sectors that the government recognises their burden,” Aurangzeb said, while highlighting a 0.5% reduction
Bilawal alleges India ‘sabotaging Trump’s peace efforts on Kashmir’ LONDON
MoNitoRiNg RepoRt
Former foreign minister and PPP Chairman Bilawal Bhutto Zardari on Wednesday condemned India for attempting to “sabotage President Donald Trump’s peace efforts” in South Asia, stressing that Pakistan remains committed to resolving all issues, including Kashmir, through dialogue. Speaking to the media in London, Bilawal’s remarks came against the backdrop of the ongoing IndiaPakistan conflict, triggered by the deadly April 22 attack on tourists in Pahalgam, Occupied Kashmir. India, without presenting evidence, accused Pakistan of backing the attackers, leading to a four-day military standoff between the two countries. A ceasefire was brokered by the United States on May 10. Pakistan, in response, formed a high-level delegation led by Bilawal to present its perspective on the conflict and counter Indian propaganda. After meetings in the
United States, the delegation is currently in the United Kingdom and will head to Brussels next to meet European Commission members. Addressing the press in London, Bilawal stated, “India wants to sabotage President Trump’s peace efforts, but its efforts will be in vain. The US will, if required, drag India to the table, as it is in the global interest that India and Pakistan make peace for regional stability and development.” He emphasized that the Kashmir issue has become a global topic, particularly after Trump’s involvement. “India thought Kashmir was an internal matter, but when President Trump called for mediation, the issue became global,” Bilawal said, noting that India has been forced to accept that Kashmir is a bilateral issue between India and Pakistan. Bilawal also reiterated Pakistan’s stance that all issues, whether Kashmir, water, or terrorism, can be resolved through dialogue. “War is not the solution,” he stated, while criticizing India’s on-
going narrative, which he called based on “lies and propaganda.” On the Indus Water Treaty, Bilawal declared that India had no right to suspend or terminate the treaty. He labeled India’s actions regarding the treaty as a violation of the UN Charter, describing any such move as an “act of war.” Responding to India’s Foreign Minister S. Jaishankar’s recent remarks about the continued right to act against terrorism, Bilawal dismissed them as “war mongering” and noted that India’s threats and escalation rhetoric were signs of regional instability, not strength. Bilawal further accused India of using terrorism as a foreign policy tool, referencing India’s targeting of Sikh activists worldwide. He said, “India has targeted Sikh activists, killed them, or paid criminal gangs to target them. The world knows India’s involvement in such actions, and this is why the international community is not backing them when they raise allegations against Pakistan.”
Remittances surge to $3.68b in May, pushing FY25 inflows to nearly $35b g
WORKER REMITTANCES UP 29% IN 11 MONTHS; MAY SEES 16% MONTHLY JUMP AMID STRONG INFLOWS FROM GULF, UK, AND US KARACHI
MoNitoRiNg Desk
Workers’ remittances to Pakistan rose sharply to $3.68 billion in May 2025, reflecting a 13.67% increase year-on-year and a 16% rise compared to April, according to data released by the State Bank of Pakistan (SBP) on Monday. The steady upward trend in remittance inflows continues to bolster Pakistan’s external account, with cumulative inflows reaching $34.89 billion during the first eleven months (July–May) of FY2024–25. This marks a significant 28.79% increase compared to $27.09 billion received during the same period in the previous fiscal year. The May 2025 inflows were primarily driven by remittances from major host countries of Pakistani migrant workers: n n n n
Saudi Arabia: $913.95 million United Arab Emirates: $754.17 million United Kingdom: $588.1 million United States: $314.69 million
These four countries collectively contributed over 70% of the total remittances received in May, underscoring the continuing reliance on Middle Eastern and Western corridors. May’s figures follow a record-setting March 2025,
when remittances briefly crossed $4.05 billion — a surge attributed to Ramadan and Eid-related transfers, stronger use of formal banking channels, and improved labour market conditions in the Gulf. Analysts also point to enhanced monitoring and incentives for routing remittances through official channels as key drivers of growth throughout the year. During his budget speech for FY2025–26, Finance Minister Muhammad Aurangzeb projected that remittances would close the fiscal year between $37–38 billion, which would be a record high for Pakistan. He noted that these flows, along with improved current account management, are expected to support the SBP’s foreign exchange reserves, which are projected to reach $1 billion. Remittances have emerged as a critical nondebt-creating source of foreign exchange for Pakistan, helping to finance the country’s import bill, stabilize the rupee, and contain the current account deficit. With the country continuing to seek a long-term arrangement with the International Monetary Fund (IMF), rising remittances improve Pakistan’s negotiating leverage by shoring up external buffers. The sharp growth in inflows during FY2025 has also alleviated pressure on the SBP to impose stringent capital controls or restrict imports as seen in earlier years. However, sustainability remains a concern, especially if global oil prices decline or geopolitical instability affects the Gulf labour market, where millions of Pakistanis are employed.
The federal government has proposed an allocation of Rs 1.754 billion for the Prime Minister’s Office (PMO) expenses in the 2025-26 budget, marking an increase from the current fiscal year’s revised budget of Rs 1.453 billion. The proposed allocation includes over Rs 87 million for the internal expenses of the PMO, while Rs 896.542 million is earmarked for public-related expenditures. This is part of the broader Rs 17.573 trillion budget for the upcoming fiscal year presented by Finance Minister Muhammad Aurangzeb in the National Assembly. During the budget speech, the Finance Minister emphasized that this budget was the coalition government’s second, highlighting its achievement in securing a primary surplus of 2.4 percent of GDP. He also noted a significant reduction in inflation, which has dropped to 4.7 percent, a result of timely government policy measures.
in super tax on the corporate sector as another supportive measure.
TARIFF REFORMS FOR EXPORT GROWTH:: Aurangzeb emphasized that tariff rationalization was a core part of the National Tariff Policy, aimed at promoting an export-led economy. “We’ve removed additional customs duties in four lines and reduced them across 2,700 tariff lines directly linked to raw materials for exporters,” he said, noting this was a phased approach with more reforms to follow. Calling it “an East Asia moment” for Pakistan, he asserted that while revenue concerns existed, the direction of policy was to make Pakistan globally competitive.
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US State Dept confirms Trump’s willingness to resolve Kashmir dispute WASHINGTON News Desk
The US Department of State reaffirmed President Donald Trump’s commitment to addressing the Kashmir dispute, noting that his efforts aim to resolve longstanding differences between India and Pakistan. The statement comes after Trump offered to work on the Kashmir issue following his role in brokering a ceasefire between the two nations during their most intense military confrontation in decades. Trump, in a message praising the peace efforts, remarked, “I will work with both of you to see if, after a ‘thousand years,’ a solution can be arrived at concerning Kashmir.” State Department spokesperson Tammy Bruce, during a press briefing, reiterated Trump’s willingness to engage in peace talks, saying, “While I can’t speak to his plans, the world knows his nature.” She highlighted Trump’s ability to bring leaders to the table for talks previously thought impossible, expressing optimism that the Kashmir issue could also see resolution. Bruce also addressed the recent visit of a Pakistani delegation led by Bilawal Bhutto Zardari, which included meetings with US officials, including Under Secretary for Political Affairs Allison Hooker. The discussions centered on the Pak-US bilateral relationship, particularly counterterrorism cooperation. Hooker reaffirmed the US’s support for the ceasefire between India and Pakistan. Additionally, Bruce mentioned that Deputy Secretary Landau had met with an Indian parliamentary delegation, reaffirming strong US support for India in its fight against terrorism. In parallel, Pakistan has launched a broader engagement campaign in the US to present its perspective on the recent tensions with India, aiming to counter New Delhi’s growing lobbying influence. Last week, Trump claimed credit for preventing a war between India and Pakistan, stating, “They don’t give me credit for anything, but nobody else could have stopped it.”
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FBR OFFICIALS TO GAIN EXPANDED AUTHORITY SIMILAR TO SHO POWERS g
NEWS
TAXMEN WILL NOW HAVE THE AUTHORITY TO INSPECT CHARTERED ACCOUNTANCY AND AUDIT FIRMS PREPARING INCOME TAX RETURNS, CLOSE UNREGISTERED BANK ACCOUNTS, AND ACCESS THE OFFICES OF TAX ADVISERS AND FIRMS WHERE DISCREPANCIES IN RETURNS ARE SUSPECTED
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STAFF REPORT
NDER the federal budget for fiscal year 2025-26, the Federal Board of Revenue (FBR) is set to flex its muscles with expanded powers, granting it authority similar to that of a station house officer (SHO), enabling it to inspect chartered accountancy and audit firms involved in preparing income tax returns, The Express Tribune reported. These inspections will be carried out if
discrepancies are suspected in taxpayers’ declarations, ensuring stricter compliance with tax laws. The budget also introduces new regulations for individuals purchasing vehicles or immovable property. Buyers will be required to prove that the declared value of the asset is within 130% of their income as declared in the previous year’s tax return. A formal application to the FBR will be necessary to confirm that the funds for the purchase, whether in the buyer’s name or that of their spouse or children, have been properly declared in wealth statements.
In a move aimed at enhancing data sharing and enforcement, the proposed legislation allows the FBR to share taxpayer information with commercial banks. These banks will be required to cross-check deposit and investment activities with declared income. If any discrepancies are found, the banks will be obliged to report the customer to the FBR, which can then take enforcement action. Additionally, the FBR will now have the authority to close unregistered bank accounts, a power previously limited to freezing accounts for tax recovery. This new
rule will prevent the operation of unregistered accounts, with banks required to follow FBR directives in this regard. The proposed amendments to Section 58C of the Income Tax Ordinance will also grant the FBR access to the offices of tax advisers and firms where discrepancies in returns are suspected. This is intended to verify how financial records and returns have been prepared.
Govt sets record petroleum levy target at Rs1.47tr for FY2025-26 g
Thursday, 12 June, 2025 | LAHORE
PETROLEUM LEVY TARGET RAISED BY 26%, DEPRIVING PROVINCES OF REVENUE DESPITE GLOBAL OIL PRICE REDUCTIONS PROFIT
STAFF REPORT
The federal government has set a record target for petroleum levy (PL) collection for the upcoming fiscal year 2025-26, aiming to raise Rs1.47 trillion, a 26% increase from the revised target of Rs1.16 trillion for the current fiscal year 2024-25. This rise comes despite a reduction in global oil prices, which would typically ease pressure on consumers.
Economic Coordination The Committee (ECC) recently raised the maximum petroleum levy cap to Rs90 per litre, and with this higher cap in place, the government has adjusted its revenue collection target accordingly. The revised PL target represents an increase of Rs307 billion compared to the current fiscal year’s estimates of Rs1.161 trillion. This target is also considerably higher than the original PL target of Rs1.28 trillion for the 2024-25 fiscal year.
Non-filers to be barred from opening bank accounts, purchasing property, vehicles, and investing in securities
Govt plans to raise tax on cash withdrawals by non-filers from 0.6% to 1%; measures aimed at expanding the tax base and enhancing economic documentation PROFIT
STAFF REPORT
In the Federal Budget 2025-26, the federal government introduced a series of stringent measures targeting non-filers as part of its ongoing efforts to broaden the tax base and formalise the economy. Finance Minister Muhammad Aurangzeb announced plans to raise the advance tax on cash withdrawals by non-filers from 0.6% to 1%, while also aiming to eliminate the distinction between filers and non-filers in key financial matters. A key proposal in the budget is that non-filers will be barred from engaging in major financial transactions, including purchasing vehicles and immovable property. Furthermore, they will not be allowed to invest in securities or mutual funds, marking a significant move to restrict non-compliant individuals from participating in these areas of the formal economy. The government also plans to prohibit non-filers from opening bank accounts, a measure designed to curtail undocumented financial activity. These proposals are part of a broader strategy to enforce tax compliance and increase the country’s formal economy, as the government works to strengthen its tax system and encourage greater economic documentation.
This hike follows the government’s long-standing practice of maintaining a high petroleum levy rate while keeping the general sales tax rate on petroleum products at zero, effectively depriving provinces of additional revenue. The government has also introduced a new levy on Off-the-Grid (Captive Power Plants), with a target of Rs105 billion for the next fiscal year. This levy will begin at 5% and rise incrementally to 20% by 2026. Additionally, the Gas Infrastructure
Development Cess (GIDC) collection target has been raised to Rs2.4 billion for FY2025-26, up from the revised target of Rs1 billion for the current fiscal year. Further measures in the budget include an increase in royalty payments for crude oil and natural gas, with a projected Rs69 billion for crude oil royalties and Rs38 billion for natural gas royalties. Moreover, the government aims to collect Rs20 billion through a windfall levy on crude oil and Rs450 million from the windfall levy on gas. The budget also includes Rs5 billion in PL from Liquefied Petroleum Gas (LPG), up from Rs3.16 billion in the current fiscal year.
Govt introduces Rs623b in new tax measures to meet fiscal targets g
NEW TAX MEASURES TARGET DIGITAL TRANSACTIONS, PENSION INCOME, PROPERTY SALES, NON-FILERS, AND E-COMMERCE, AIMING TO BOOST REVENUE AND IMPROVE COMPLIANCE PROFIT
STAFF REPORT
The government has unveiled a series of taxation measures totaling over Rs623 billion as part of its efforts to meet a fiscal target of Rs14,131 billion for the 2025-26 budget. The total proposed tax measures amount to Rs670 billion, with Rs281 billion allocated for new taxes and Rs389 billion for enforcement measures. However, the revenue impact from the salaried class relief, worth Rs58 billion, reduces the net increase in revenue to Rs623 billion for the upcoming fiscal year. The bill also places a cap on sales tax exemptions for entities within Special Economic Zones (SEZ) and Special Technology Zones (STZ), limiting them to a tax-free period ending in 2035 or upon the expiration of a 10-year exemption period. Several changes have been proposed to the withholding tax regime. The withholding tax rate on cash withdrawals by non-filers will rise from 0.6% to 1%, while the tax on specified services is set to increase from 4% to 6%, with a flat 15% rate on other non-specified services and a higher rate for sportspersons. The government also plans to impose a 2% tax on the gross value of supplies by vendors selling digitally ordered goods via online marketplaces. Furthermore, a new 18% sales tax will be levied on imported solar panels and photovoltaic modules,
and the reduced sales tax rate of 12.5% on locally manufactured motorcars up to 850cc will be withdrawn. Various other imported goods, such as pet food, chocolates, and cereal bars, will also be taxed according to their retail price. For the regions previously known as FATA and PATA, the exemption on electricity supply will continue through June 2026, extending relief to consumers in these areas. However, the reduced tax rate on local supplies of vermicelli and sheer mall will be removed as part of broader GST reforms. Changes to the income tax system include the introduction of a “Digital Transactions Proceeds Levy,” targeting domestic vendors selling digitally ordered goods and services. Banks and courier services will act as withholding agents to ensure taxes are collected throughout the payment chain. The tax rate on profits from debt is set to rise from 15% to 20%, while dividend tax rates will be increased to 25%. Pension income above Rs10 million will be taxed at a flat 5%, and super tax rates on high-income earners will be reduced slightly for certain income brackets. Lastly, the definition of “e-commerce” is expanded, and online marketplaces will now be required to withhold a higher sales tax on digital payments. The scope of the withholding tax will also extend to transactions made via cash on delivery (CoD), and the rate for digital payments will increase from 1% to 2%.
The bill also proposes an expansion of the definition of sales tax fraud, making it applicable to anyone found aiding or abetting in tax fraud, with legal prosecution as a consequence. To further tighten enforcement, the FBR will be authorised to track the movement of goods like sugar through an enhanced cargo tracking system, ensuring compliance with tax regulations.
Punjab govt to present Rs 1,200b budget for FY2025-26 on June 13 No new taxes planned; focus on health, education, tourism, and infrastructure development in the new budget PROFIT
STAFF REPORT
The Punjab government is preparing to present its Rs 1,200 billion budget for the fiscal year 2025-26 on June 13, with the Finance Department finalizing the arrangements. According to reports, the budget documents have already been sent for printing, and Finance Minister Mujtaba Shujaur Rehman is currently drafting his speech for the upcoming budget presentation. Sources indicate that Chief Minister Maryam Nawaz Sharif has instructed that no new taxes be introduced in the upcoming fiscal year. Proposals from the Board of Revenue and the Punjab Revenue Authority suggesting new tax measures have been rejected. Instead, the government is focusing on reviewing existing taxes to assess possible changes to their rates. The budget’s key allocations include increased funding for health, education, and tourism. The education budget will see an increase of Rs 110 billion compared to the previous year, while the health sector is set to receive an additional Rs 90 billion. The tourism sector is expected to receive a 600% increase in funding, with an estimated budget of Rs 35 billion.
Attock Refinery announces reduction in throughput due to low crude stock levels PROFIT
STAFF REPORT
Attock Refinery Limited (ARL) has disclosed a reduction in its refinery’s throughput, citing a decline in crude oil receipts. The company, in a statement to the Pakistan Stock Exchange (PSX) on Wednesday, revealed that this issue has persisted for some time and worsened during the Eid holidays. The refinery’s throughput has been significantly impacted due to low crude stock levels, leading to reduced production. However, ARL has assured its stakeholders that the issue is temporary, with an expectation that the situation will improve within one week. Following the announcement, Attock Refinery experienced a decline in its stock price, which stands at Rs 677.00 as of 11:50 am on Wednesday, reflecting a loss of Rs22.55 (3.22%). According to the PSX website, ARL has a market capitalisation of Rs72.18 billion, with a total of 106,616,250 shares outstanding. Notably, 40% of the shares are in free float, amounting to 42,646,500 shares, which indicates a good level of market liquidity.
New tax on online shoppers for purchases from local, international e-commerce platforms g
TIERED TAX STRUCTURE WILL APPLY ON LOCAL E-COMMERCE PLATFORMS: 1% FOR TRANSACTIONS UP TO RS10,000, 2% FOR TRANSACTIONS UNDER RS25,000, AND 0.25% FOR AMOUNTS EXCEEDING RS25,000 PROFIT
STAFF REPORT
Foreign vendors with a digital presence in Pakistan will be charged a 5% tax on digitally ordered goods and services Courier services involved in cash-on-delivery transactions will also be subject to new taxes; govt eyes Rs64 billion in revenue The government has introduced new taxation measures targeting e-commerce businesses, digital service providers, and courier services, aiming to raise Rs64 billion in the next fiscal year. To capture the growing digital transaction market, the government has also introduced a “Digital Transactions Proceeds Levy” that applies to both domestic and foreign vendors, with banks and courier services designated as withholding agents to ensure the collection of taxes throughout the payment chain. A range of taxes will be imposed on digital services, including those provided by e-commerce platforms, websites, social media, and courier companies. The government has defined “digitally delivered services” as those services provided over the internet or electronic networks, requiring minimal or no human intervention. These
services include music and video streaming, cloud services, telemedicine, e-learning, online banking, and accounting services. E-commerce businesses will now face taxes ranging from 0.25% to 5%. The new tax applies to digital services provided by both local and foreign vendors. Foreign vendors with a digital presence in Pakistan will be charged a 5% tax on digitally ordered goods and services, whether delivered digitally or physically. Banks will be required to deduct this 5% tax from payments made to these vendors. On local e-commerce platforms, the government has proposed a tiered tax structure. A 1% tax will apply to transactions where the amount does not exceed Rs10,000. A 2% tax will be imposed on transactions under Rs25,000, and any amount above Rs25,000 will be taxed at a reduced rate of 0.25%. Additionally, courier services involved in cash-on-delivery (CoD) transactions will be subject to new taxes. The government has proposed a tax rate of 0.25% on electronics and electrical goods, 2% on clothing articles, and 1% on other goods. These taxes will be collected by courier services when goods are delivered
and paid for via CoD. Furthermore, the new tax regime requires all online marketplaces, payment intermediaries, and courier service providers to file detailed statements with the Commissioner, sharing data of sellers involved in digitally ordered goods and digitally delivered services. This is intended to ensure transparency and improve tax
collection from the e-commerce sector. The government has also proposed a set of penalties to encourage compliance. Online marketplaces that allow unregistered vendors to use their platform will face a fine of Rs1 million. Furthermore, banks, payment gateways, and courier services that fail to deduct or remit the appropriate taxes will be liable to
pay a fine equal to 100% of the tax involved in the transaction. To tighten tax compliance across digital marketplaces, the definition of “ecommerce” has been broadened. Now, all online transactions, whether paid via digital payments or cash on delivery (CoD), will fall under the e-commerce sales tax framework. This will allow the government to better regulate and tax the rapidly growing online market, ensuring that all transactions are accounted for. The government has also proposed to double the withholding tax rate on ecommerce transactions from 1% to 2%, reflecting the growing volume of digital transactions in Pakistan. As part of the broader effort to tighten tax compliance in the digital sector, online platforms will be required to register all sellers using their services for e-commerce transactions. This is designed to ensure that businesses involved in digital commerce are properly registered and compliant with the tax system. These new tax measures are part of the government’s strategy to generate additional revenue and regulate the fast-evolving ecommerce industry. However, they may face resistance from businesses and consumers who are concerned about the impact on digital growth and online shopping costs.
Thursday, 12 June, 2025 | LAHORE
BUSINESS LEADERS, INDUSTRIALISTS, AND EMPLOYEE UNIONS VOICE STRONG OPPOSITION TO FEDERAL BUDGET NEWS
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EMPLOYEE UNIONS, INCLUDING THE ALL PAKISTAN CLERKS ASSOCIATION AND ALL GOVERNMENT EMPLOYEES GRAND ALLIANCE, CONDEMNED 10% SALARY INCREASE, CALLING IT INADEQUATE IN THE FACE OF SOARING INFLATION PROFIT
STAFF REPORT
AILWAY Workers Union and Education Pensioners Association criticised the lack of significant pension reforms, calling the budget’s proposals “ridiculous The federal budget for fiscal year 202526 has faced significant backlash from business leaders, industrialists, and employee unions, with many criticizing the government’s approach as ineffective in addressing key economic challenges. In Karachi, Businessmen Group (BMG)
Chairman Zubair Motiwala called the budget a “camouflage” that failed to provide any meaningful relief to businesses or the public. He argued that the government’s ambitious tax collection targets and focus on digitalisation were unrealistic, given the country’s fragile economic environment, high inflation, and IMF-imposed constraints. Motiwala raised concerns that the government’s reliance on extracting more revenue from already compliant taxpayers would burden the formal sector, stifle economic growth, and discourage investment. The Overseas Investors Chamber of Commerce and Industry (OICCI) echoed
Govt to gradually eliminate duties on 7,000 tariff lines in five-year tariff reform plan
Plan aimed at driving export-led growth and revitalizing industrial development in Pakistan
similar sentiments, expressing disappointment over the limited progress in addressing corporate tax inequities. The OICCI emphasized the need for a comprehensive overhaul of tax structures to attract foreign investment and enhance Pakistan’s competitiveness. It also lamented the absence of a strategy to formalize Pakistan’s large informal economy, which remains a critical avenue for increasing revenue. Meanwhile, support for small and medium-sized enterprises (SMEs) was a focal point in the budget, with the government announcing plans to boost SME financing and promote exports. However, Federal B Area Association of
PRICES OF ESSENTIAL GOODS AND CONSTRUCTION MATERIALS HAVE SURGED IN THE OUTGOING FISCAL YEAR, WITH MORE HIKES PREDICTED FOLLOWING THE NEW BUDGET PROFIT
STAFF REPORT
STAFF REPORT
The government has introduced a comprehensive five-year tariff reform plan aimed at driving exportled growth and revitalizing industrial development in Pakistan. The plan involves the gradual elimination of additional customs duties (ACD) and regulatory duties (RD) on more than 7,000 tariff lines, along with a restructuring of duty slabs across various sectors. In its first year, the government provided Rs200 billion in relief by reducing tax rates and fully removing ACD on raw materials. While this move is expected to lower import duties, the Federal Board of Revenue (FBR) anticipates that higher imports will boost sales tax and withholding tax collections, partially offsetting the revenue loss from the reduced import duties. One key fiscal measure includes a reduction of 0.5 percentage points in the super tax rate for income slabs between Rs200 million and Rs500 million, a crucial segment for the corporate sector under the income tax regime. The tariff rationalization is expected to increase exports by approximately $5 billion by the end of the five-year period, strengthening Pakistan’s global trade position. The first phase of the reform introduces a simplified customs duty structure with slabs of 0%, 5%, 10%, 15%, and 20%. The existing 16% slab has been reduced to 15%, and the 11% rate has been cut to 10%. The 3% slab has been abolished, and products have either been moved to the zero-duty category or the new 5% slab. The government’s target is to reduce the simple average tariff from 19% to 9.5% over the next five years, with a uniform maximum duty of 15% by the end of the reform period.
PIA to benefit from sales tax exemptions on aircraft imports, leasing under new budget PROFIT
STAFF REPORT
The federal government has introduced a measure to exempt Pakistan International Airlines (PIA) from sales tax on aircraft imports and leasing as part of efforts to support the national carrier’s privatization process. The sales tax exemption will apply not only to aircraft but also to a range of aviation-related goods and equipment. Under the new policy, seven key categories of aviation imports will receive zero percent customs duty treatment. These categories include complete aircraft—whether imported or acquired through wet or dry lease agreements—spare parts for aircraft, simulators, maintenance kits for trainer aircraft, and specialized machinery for Maintenance, Repair, and Overhaul (MRO) operations. The exemption, outlined in the federal budget for FY 2025-26, aims to provide financial relief to PIA, which has been facing ongoing financial challenges. In addition, the exemption will cover aviation simulators, aircraft engines, and operational tools for new airport facilities. For PIA, the aircraft import exemption has been backdated to March 19, 2015, which could offer retroactive benefits for the airline’s fleet acquisitions over the past decade.
Manzoor Kiyani of APCA, compared the salary hikes of MPs and ministers to the meager adjustments for workers, describing the budget as a “severe joke.” They warned that the budget would deepen poverty, with many families already struggling to meet basic needs. Pensioners, represented by organizations like the Railway Workers Union and Education Pensioners Association, criticised the lack of significant pension reforms, calling the budget’s proposals “ridiculous.” They expressed anger over what they perceived as favoritism toward the political and business elite, with no real relief for pensioners and low-income workers. In Rawalpindi, a protest led by unions such as the Pakistan Workers Federation and the All Government Employees Coordination Council gathered hundreds of workers demanding urgent action.
Building material, food prices soar amid tax hikes, further increases expected g
PROFIT
Trade and Industry President Shaikh Muhammad Tehseen called on the government to engage more with stakeholders to ensure the success of these initiatives. He stressed the need for reduced production costs, including lower interest rates, utility charges, and petroleum prices to support SMEs. Employee unions, including the All Pakistan Clerks Association (APCA) and the All Government Employees Grand Alliance (AGEGA), also strongly rejected the budget. They condemned the modest 10% salary increase for government employees, calling it inadequate in the face of soaring inflation. Union leaders, such as Shehzad
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The fiscal year 2024-25 has seen an unprecedented rise in the prices of building materials, food, and essential goods, primarily driven by increased taxes. The surge in material and labor costs has pushed up the price of a new 5-marla house by Rs1 to 1.5 million. Food items have experienced significant price hikes. Milk, for instance, was priced at Rs200 per kg in July 2024 and has now increased to Rs220 per kg. Other items like butter, chicken, and eggs have similarly seen price jumps. For example, chicken
prices have risen from Rs300 per kg to Rs415 per kg, and eggs from Rs240 per dozen to Rs315 per dozen. The cost of essential food staples has also escalated, with rice prices climbing from Rs300 per kg to Rs400, while lentils such as daal gram, daal mash, and daal moong have also risen significantly. Items like sugar, flour, and ghee have similarly increased, with sugar now selling at Rs190 per kg, compared to Rs150 at the beginning of the fiscal year. A range of fruits and vegetables has also seen sharp increases. Onions have gone up from Rs50 to Rs60 per kg, while tomatoes have seen a jump from
Rs50 to Rs80 per kg. Fruits like apples and guavas are now priced higher, with apples increasing from Rs200 per kg to Rs300-350 per kg, and guavas from Rs150 to Rs250-300 per kg. On July 1, 2024, a kilogram of iron bars cost Rs220, but it now stands at Rs260. Similarly, cement prices have climbed from Rs1,150 per bag to Rs1,450, while the cost of a gravel trolley has increased from Rs11,500 to Rs15,000, and sand prices have risen from Rs9,000 to Rs11,000 per trolley. As the fiscal year ends, anticipation of the upcoming 2025-26 budget looms large, with an expected price hike of 20% to 40% on many goods due to new
FinMin defends ‘budget stings’ amid ‘public outcry’, Journalists’ protest CONTINUED FROM PAGE 01
JOURNALISTS’ PROTEST AND ASSURANCE OF ENGAGEMENT: The absence of a technical briefing on the Finance Bill led to tension at the start of the press conference. Journalist Mehtab Haider raised the concern, leading many mainstream reporters to walk out. Responding to this, FBR Chairman Langrial said the briefing was “essential rather than technical” this time, as it often repeated content discussed during the ministerial session. He assured journalists of a separate technical session going forward. Aurangzeb also expressed regret for any discomfort caused, adding: “We’ll institutionalize regular media interactions every four to six weeks.” Responding to the protest, Federal Minister for Information Attaullah Tarar attempted to de-escalate the situation. Addressing the remaining members of the press, he said, “The concerns raised by journalists are absolutely valid. This is their right, and we fully acknowledge it.” Tarar confirmed that the absence of a technical session was a lapse and apologized on behalf of the government. He assured the press that the FBR chairman had been informed of the issue and had committed to conducting the session at the earliest. “I will speak to the FBR personally. The technical briefing must take place — this is a longstanding tradition and an important step for transparent communication,” Tarar said. He also noted that he stood in solidarity with the protesting journalists and appreciated their professionalism in raising the matter peacefully. Following Tarar’s public apology and assurance of a forthcoming technical session, the journalists agreed to end the boycott and returned to complete coverage of the finance minister’s post-budget briefing. The incident underscores mounting concerns among the media community about shrinking access to official information and procedural opacity in fiscal policymaking. Several journalists later commented that with wide-ranging tax proposals affecting businesses, salaried individuals, and traders, the
absence of a detailed pre-briefing could lead to confusion, misreporting, and public misunderstanding of budgetary measures. NO NEW TAX ON FERTILISERS, SOLAR PANELS TAX CLARIFIED: Discussing agriculture, the finance minister said proposed taxes on fertilisers and pesticides were waived after negotiation with the IMF, acknowledging them as critical inputs. FBR Chairman Langrial addressed another contentious issue, the 18% sales tax on imported solar panels, stating it was meant to protect local assemblers and ensure a level playing field. “We had to discourage import of fully assembled panels which harmed local value addition,” he said. WELFARE SPENDING, FISCAL CONSOLIDATION, AND PROVINCIAL TRANSFERS: Aurangzeb stressed that the budget reflects tight fiscal consolidation under IMF guidance, yet aims to maintain targeted welfare spending. He defended the hike in salaries for the National Assembly speaker and Senate chairman, noting they were last revised in 2016. On overall government expenditure, the minister said the increase was limited to 1.9% this fiscal year. “We’ve slashed subsidies and rationalised debt servicing while maintaining essential spending,” he added, asserting this was a response to taxpayers questioning unchecked government expenses. He confirmed that Rs8.2 trillion would be transferred to provinces from the federal divisible pool, a record high and clarified that any changes to the NFC award would be done with consensus. ENFORCEMENT FOCUS AND LEGISLATIVE SUPPORT: The minister said that of the Rs2.2 trillion revenue target, Rs312 billion would come from new taxation measures, while the rest would be realized through enforcement. “We’ve already achieved Rs400 billion through enforcement alone this year,” he added. He admitted past failures in implementation: “Pakistan has struggled to reverse unjust economic trends. This budget is our first real signal that change is underway.”
taxes. This has already led to supply shortages in the market, with several items, including cigarettes, being sold illegally on the black market. In the past three weeks, national and international companies have suspended the supply of products in preparation for the budget, with new prices to be set once the general sales tax and other taxes come into effect. Despite the price hikes, carbonated drinks have seen a rare price reduction, with bottles now selling for Rs200, down from Rs270 in July 2024. However, analysts warn that a new wave of inflation is likely to follow once the new budget is announced.
Pakistan’s debt servicing to consume 46.7% of federal budget in FY2025-26 PROFIT
STAFF REPORT
Pakistan’s debt servicing will account for 46.7% of the federal budget in the fiscal year 2025-26, amounting to Rs8.2066 trillion out of the total Rs17.573 trillion budget. This is the largest portion of the current expenditures, highlighting the heavy burden of interest and loan repayments on the government’s finances. The debt servicing allocation is an 8.26% reduction from the revised figure of Rs8.945 trillion in the outgoing fiscal year, a decrease of Rs739 billion. Despite the reduction, the continued reliance on debt servicing limits the funds available for crucial sectors such as health, education, and development. Domestic debt servicing is set to cost Rs7.197 trillion, while Rs1.009 trillion has been earmarked for foreign loan repayments. Pakistan’s public debt reached Rs76.01 trillion (approximately US$269 billion) by March 2024, having more than quadrupled over the last decade. This includes Rs51.52 trillion in domestic debt and Rs24.49 trillion in external liabilities. With public debt now representing 66.27% of GDP, it has surpassed the legal limits set by the Fiscal Responsibility and Debt Limitation Act (FRDLA). For the first nine months of FY2025, Pakistan paid Rs6.44 trillion in debt interest, which is 66% of the annual target. Of this, Rs5.78 trillion went to domestic lenders, and Rs656 billion to foreign creditors. Despite the Ministry of Finance’s efforts to improve cash-flow planning and extend borrowing timelines, the country remains stuck in a debt spiral. High repayments have displaced private investment, weakened the rupee, fueled inflation, and increased dependence on further borrowing. External financial inflows for July-March FY2025 amounted to $5.07 billion, mainly from multilateral institutions ($2.8 billion), commercial sources ($2.01 billion), and bilateral partners ($258 million). However, the country did not issue any global bonds during this period. External outflows, particularly repayments to multilateral creditors, bilateral partners, and commercial lenders, exceeded inflows at $5.636 billion, further exacerbating pressure on Pakistan’s foreign exchange reserves.
Fiscal deficit to hit lowest since 2005, market outlook to remain positive: report g
AKD SECURITIES FORECASTS A FISCAL DEFICIT OF 3.9% FOR FY26, WITH SIGNIFICANT REFORMS AND POSITIVE IMPLICATIONS FOR VARIOUS MARKET SECTORS PROFIT
STAFF REPORT
The Federal Budget for FY26 is projected to have a fiscal deficit of 3.9% of GDP, the lowest since FY05. This improvement is attributed to an estimated 18.7% growth in tax revenues, a reduction in debt servicing, and curtailed pension expenses, according to a note by brokerage firm AKD Securities. The reduction in debt servicing, along with an increased reliance on PSDP funding through provincial shares and capital expenditures by State-Owned Enterprises (SOEs), has allowed the government to allocate the highest increase in defense spending in the last 15 years. The government aims to foster economic growth through reforms focused on enhancing
agricultural productivity, revitalizing industrial activity, promoting exports, and expanding the digital and IT sectors. The market outlook remains positive, according to AKD Securities. The increase in the tax rate on profit from debt is expected to enhance the appeal of equities. The revised taxation on mutual fund dividends, now contingent upon the proportion of income derived from debt securities and equities, is likely to encourage mutual funds to shift funds toward equities. Additionally, the government’s increased reliance on Islamic financing instruments is seen as beneficial for the Pakistan Stock Exchange (PSX). The documentation drive, which includes higher taxation on cash withdrawals and restrictions on asset purchases by non-filers,
is expected to benefit the banking sector in the long run. Moreover, tax credits for interest paid on low-cost housing loans, along with the reduction in withholding tax on property purchases and the removal of FED on property transfers, are seen as positives for the cement and steel sectors. The government has set an ambitious tax revenue target increase of 18.7% in the context of a nominal GDP growth of 12.7% for FY26. To achieve this, additional taxation measures of approximately PkR680bn are required, which AKD Securities believes can be achieved through improved revenue mobilization, particularly via FBR taxation reforms. The fiscal deficit also calls for comprehensive fiscal reforms, requiring
coordination with the provinces, as evidenced by a 45.1% increase in provincial transfers and enhanced reliance on provinces for PSDP allocation. The National Fiscal Pact is seen as an essential step to rebalance intergovernmental relationships. For the first time in nearly a decade of aggressive revenue measures, the government has extended some relief to taxpayers. This includes a reduced tax rate for the salaried class and a modest 0.5% reduction in the super tax rate for income between Rs200 million and Rs500 million. Additionally, customs duties, additional customs duties, and regulatory duties have been reduced as part of the tariff rationalization plan. The budget also introduces a carbon levy on motor spirit, high-speed diesel, and furnace oil at a rate of Rs2.5/liter. The government has allocated Rs9bn in subsidies to promote electric vehicle (EV) adoption, signaling a push towards climate-
friendly policies. In terms of sector-specific impacts, AKD Securities termed the budget positive for the cement and construction materials sectors, supported by a higher PSDP allocation of Rs4.2 trillion for the upcoming year. A gradual increase in GST rates for FATA/PATA and the removal of FED on first-time property purchases are expected to support these sectors. The clearance of circular debt should improve cash flow in the energy sector, and the documentation drive should benefit the banking sector. However, the increase in the tax rate on profit from debt and higher withholding tax on cash withdrawals for non-filers could negatively affect banking deposit growth in the short term. Additionally, a higher Petroleum Development Levy (PDL) allocation will help shield OMCs and refineries from inventory losses amid declining crude prices.
04 COMMENT
A sad state of affairs
Post-budget press conference
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Finance Minister makes lower expenditure clearer
With a gloomy prognosis
T almost seemed as if the decline in inflation, and thus in interest rates, and thus in the government’s own debt servicing costs, dominated the thinking of Finance Minister Muhammad Aurangzeb as he first prepared and presented the Federal Budget for 2025-2026, but also during the traditional post-budget press conference. Mr Aurangzeb proved that he was no politician by the political spin he tried to place on the lower government spending in the fiscal year now coming to end. He said that this was in response to the salaried class asking why the government did not bring its expenditures under control. This was rather disingenuous, for the government had very little to do with the lowering of debt servicing costs, which meant that the government had to spend less to service its debt. It is not as if there was much choice involved. And now that monetary policy has been prised out of the government’s hands by the IMF through increased State Bank of Pakistan autonomy, the government’s traditional means of financing its deficits, by suddenly printing a whole load of new money, has been taken away. The government’s levers over inflation remain, but they are more subtle, slower, and thus less satisfying. The attempt to posture politically on what was after all an inevitability was probably not much of a success. Could not the belief afforded in the rates applicable to salaried individuals be partly ascribed to this saving? Would this factor have been weighty in helping the government convince the IMF that there should be some relief accorded to the salaried class. Not enough was heard at the press conference about the Artificial Intelligence-driven analytical tools now at the disposal of the CBR, which Mr Aurangzeb said in his Budget speech on Tuesday had already helped raise considerable revenue. So much information has to be provided already, and all the taxman lacked was the number-crunching tools that would do that job. Those tools have now arrived, and the FBR is entering the 21st century. Though Mr Auranzeb’s press conference was marred by a press boycott, it still left a number of questions unanswered. Is this to be the fiscal year when the effects of reform become visible, and it is possible to predict with confidence that the country will not have to go, cap in hand, to the IMF, for another handout, after the current programme is over.
T
HASAN AFTAB SAEED
HE average Muslim, to his detriment, has for centuries been guilty of not granting the Quran the position that it deserves. The exceptions, which have no doubt been there, merely prove the rule. Of course, all Muslims revere the Quran and make all the right noises about it. But, at the same time, they are grossly ignorant of its contents. Many of them appear to be outright indifferent to what the Quran has to say on any issue. The internet and the phone apps have largely mitigated the problems of language barrier, lack of educational resources, inaccurate translations and the unavailability of teachers. Still, there are those that do not have the access and/or the capability to use them. They are not to be blamed, of course. Neither are those countless millions who, after barely managing to make ends meet, are left with no time nor energy to study the Quran. However, what with their general aversion to reading and thinking, and their characteristic mental laziness, educated and well-todo Muslims too, as a rule, have little idea regarding the contents of the Quran. Having had many discussions with a broad spectrum of them spanning the best part of three decades, I am convinced that many of them are positively allergic to the message of the Quran. Anybody who doubts this statement is advised to challenge the prevailing views on any issue by presenting the Quranic position on it. The reasons for this aversion to the Quranic message are many, but the common psychology behind them all is the stubborn reluctance to admit even the possibility of being wrong on any issue. Because that is a slippery slope that could potentially lead to having to change one’s ways– heaven forbid! In addition to the hard work required for that, the admission of the very possibility of being wrong is unacceptable for most since that would be tantamount to admitting that one’s parents, elders and other figures of authority– who are generally the sources of one’s moral worldview– also got it wrong. Even more horrific is the associated prospect of having to acknowledge that one’s rivals and adversaries were right. It is much better for one’s ego, therefore, to simply discourage and dis-
Dedicated to the legacy of late Hameed Nizami
Arif Nizami (Late)
Bribes in broad daylight Founding Editor
M. A. Niazi
Babar Nizami
Editor Pakistan Today
Editor Profit
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How government employees exploit joy and justice OSHAz FATimA
N Pakistan, a quiet and insidious form of corruption is thriving— one that doesn’t make headlines but touches the lives of ordinary citizens every single day. It isn’t the billion-rupee embezzlements or the offshore accounts that spark political scandals. It’s the low-level extortion practiced by clerks, nurses, ward boys, government typists, peons, and court staff— the people who sit at the grassroots of public service but have come to view their roles as opportunities for personal gain. It’s the hundred rupees here, the five hundred there. It’s the cash slipped silently across counters, not out of generosity, but out of compulsion. Walk into any public hospital and the practice is painfully evident. A nurse who has assisted during delivery will refuse to hand over the newborn to the parents until she’s been “tipped.” This “tip” is not optional; it is demanded with a shameless entitlement, regardless of whether the family can afford it. In many cases, these families are already impoverished, having scraped together money for transport and basic medication. But the nurse, the aaya, the ward boy— all stand in line for their share, as if delivering a child is not just a medical event but a business opportunity. The same happens in courts. A clerk will openly ask for extra money once someone wins a case. It doesn’t matter that the person may have spent years in legal turmoil, paying for lawyers and traveling across cities. The government official, who is paid to handle paperwork and process court orders, will expect his cut of the “good news.” In NADRA offices, land revenue departments, education boards, passport offices, and even graveyards, this pattern plays out. A death certificate? A stamp on a land file? An admission to a government college? Nothing moves without grease money. Not because it’s legal. But because it has become normalized. This everyday extortion is so deeply woven into the fabric of our bureaucracy that no one questions it anymore. Those who protest are seen as naive or foolish. “Yahan sab chalta hai” (Here, everything goes) is the common retort. People pay because the alternative is delay, humiliation, or sometimes complete inaction. The helplessness is even worse for the poor, the uneducated, and the marginalized. For them, access to even the most basic public service becomes a toll road— pay up or get lost. The psychological impact of this embedded corruption is devastating. It destroys public trust in the system. It teaches citizens that honesty doesn’t work, and that if you want to get something done in Pakistan, you must either bribe someone or have connections. It demoralizes those few public servants who genuinely want to serve without exploitation. And it turns civil service into a marketplace of petty negotiations instead of a mechanism of governance and support. But how did we get here? The roots of this
culture are a mix of low public servant salaries, lack of accountability, absence of surveillance, and a generational acceptance of “gifts” as informal gratitude. However, there’s a thin line between a token of appreciation and systemic exploitation. That line has been crossed— long ago— and it’s time we called it what it is: extortion under the veil of service. The damage isn’t limited to social dignity. It also impacts governance, efficiency, and justice. A citizen’s file can sit in limbo for months until the “chai pani” is paid. A patient might be left unattended in a ward because the nurse is expecting a “service fee” before doing her job. A widow may have to bribe her way to a pension that is legally hers. These aren’t isolated incidents— they are daily, widespread, and deeply corrosive. So how can this culture be dismantled? First, surveillance and digital recordkeeping need to be ramped up. Every public office— hospitals, courts, and registries— should have CCTV with audio, and citizens should be able to report extortion attempts anonymously via mobile apps or hotlines. But merely collecting complaints isn’t enough. The system must act on them visibly and swiftly. Whistleblower protections must be enacted so that those who report are not harassed. Second, performance-based incentives can be introduced. Many of these workers are underpaid and overworked. A transparent, tiered bonus system can replace the need for informal “tips.” If staff know they’ll receive structured recognition and fair pay for their work, they’ll have less incentive to extort the public. Third, there must be zero tolerance for this
Thursday, 12 June, 2025
miss all Quranic references. When it comes to displaying hostility to a Quranic argument that appears to challenge their prior position, many Muslims give a run for their money to non-Muslims and atheists, who do not even accept the Quran as the verbatim speech of God! When such Muslims read the Quran (as many of them enthusiastically do) they do it for blessings (whatever those are) alone. For guidance as to what is called for in any given circumstance, they turn to and rely upon family and societal norms, their favourite Mullahs, stories of dubious origins, motivational speakers, horoscopes… anything would do except the Quran! Certitude is of two types. One is that of the fanatic who stops thinking out of fear of being proven wrong. That explains his rejecting out of hand anything that even hints at challenging his beliefs. In contrast, the conviction that the Quran gives stems from careful examination of one’s stance on all matters in the light of broad Quranic principles. Whether one stays the course (if the Quran endorses it) or corrects it (again, if the Quran suggests so), one’s conviction in the validity of one’s position increases in either case. This certitude is very different from the cockiness that has its roots in fear. One cannot help being guilty of inconsistencies and self-contradictions if one chooses to decide each issue on a case-by-case basis, in accordance
with what is convenient. Considering all issues as applications of fundamental Quranic principles, instead, is the only way one can ensure consistency in one’s world view. This is so because the Quran, being God’s unadulterated word, is nothing if not consistent. When Muslims do not give the Quran the governing position when it comes to deciding all crucial issues, they stop giving a convincing account of what they believe. In fact, oft-times they sound outright ridiculous. Consulting the Quran to find out what one is supposed to do in each situation as well as to construct one’s broader world view has become completely alien to Muslims. And yet, that is the only way they can guard themselves against vacillation and confusion; although, admittedly, it takes effort, perseverance and, above all, an undying commitment to truth and guidance. The Quran calls itself the Criterion that settles all fundamental issues. When Muslims do not recognize the Quran as the ultimate arbitrator of all debates (and prefer other sources instead), they not only deprive themselves of the Quranic guidance, but they also preclude the possibility of any fruitful discussion with their fellow Muslims. The author is a connoisseur of music, literature, and food (but not drinks). He can be reached at www.facebook.com/hasanaftabsaeed
The Quran calls itself the Criterion that settles all fundamental issues. When Muslims do not recognize the Quran as the ultimate arbitrator of all debates (and prefer other sources instead), they not only deprive themselves of the Quranic guidance, but they also preclude the possibility of any fruitful discussion with their fellow Muslims
Editor’s mail
behaviour. If a nurse withholds a baby until she’s paid, she should be suspended. If a clerk demands a bribe, he should be replaced. Without accountability, training and laws are meaningless. Public servants must be reminded that their job is a duty— not a favour. Moreover, public awareness is key. Citizens need to be educated about their rights. Posters in hospitals and government offices should clearly say: “You do not have to pay any money for this service. Report if you are asked to.” Young people especially must be involved in citizen watchdog groups, and local media should spotlight cases of petty corruption as much as they do high-profile scandals. Finally, the government must model integrity from the top down. If senior bureaucrats and ministers are themselves complicit in corruption, how can we expect a nurse or clerk to act differently? Ethical leadership, strong unions that reward transparency, and civil service reform are long-term goals— but they are essential. The system we have today doesn’t just allow small-time corruption— it encourages it. And as long as citizens remain complicit by continuing to pay these “fees,” the problem will persist. It’s time for a collective moral reckoning, for people to say no to exploitation, and for the state to restore dignity to public service. Otherwise, we will keep raising generations who learn not from textbooks or teachers, but from the whispered lesson of every clerk and nurse: that everything has a price— even honesty. Oshaz Fatima is an academic researcher and youth leader with more than six years of active volunteering experience. She is currently working as a freelance writer
Send your letters to: Letters to Editor, Pakistan Today, 4-Shaarey Fatima Jinnah, Lahore, Pakistan. E-mail: letters@pakistantoday.com.pk Letters should be addressed to Pakistan Today exclusively
Good samaritans of KP
THE provincial Wildlife Department in Khyber Pakhtunkhwa (KP) has encouraged people to ensure availability of water for the birds in this scorching heat. The provision of water pots and drinkers at different places, such as balconies of homes and offices, open spaces, lawns, gardens and rooftops, can be easily managed. The laudable government initiative has the potential to provide relief to birds that roam around in search of water as mortality due to dehydration, water scarcity and deprivation is common among our feathered friends. Apart from this significant aspect, the other important outcome of the initiative is the element of bird therapy. Watching the birds bathing, chirping and preening refreshes human nerves. It is nice to see the provincial government actively encouraging people across the land from Chitral to Dera Ismail Khan. The engagement of our young individuals would also ensure their attachment with the nature at large. MOHAMMAD NIAZ PESHAWAR
The business of learning
THE state of the education system in Pakistan is seriously worrying, especially in the early years of schooling. It is unfortunate that many schools have turned education into a business. Nowadays, children are forced to go through multiple unnecessary pre-school stages, such as pre-Montessori, preprep Montessori, followed by junior and senior grades. These stages add up to nearly four years before grade 1. This is simply a waste of time. Instead of helping children learn and grow through fun and play, these years only serve as a way for schools to mint more money from the parents. It is another thing that the parents, misled by consistent propaganda, themselves want to send their children to school as early as they possibly can. Another major issue is the strict age limits set by most schools. They refuse to admit children older than three years. This is blatantly unfair. Every child has a different pace of growth and learning, and such rigid rules create unnecessary stress for parents and children alike. Besides, children as young as two to three years are tested by teachers, and, more critically, rejected on the basis of their general knowledge, social and fine motor skills. The government as well as its relevant departments must take notice of the issues, and introduce reforms to ensure that schools continue to focus on real learning rather than unnecessary stages that waste children’s precious early years. WASIF KHALIQ DAD RAWALPINDI
Populism vs. Progress
ItÊs time for a collective moral reckoning, for people to say no to exploitation, and for the state to restore dignity to public service. Otherwise, we will keep raising generations who learn not from textbooks or teachers, but from the whispered lesson of every clerk and nurse: that everything has a price· even honesty.
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IT was an act of overindulgence by the government of Ayub Khan, Pakistan’s first military dictator, to spend millions in advertising the so-called Decade of Reforms, which backfired and only hastened his departure from the corridors of power. The ‘decade’ was subsequently nicknamed ‘Decadence of Reforms’. Unfortunately, subsequent governments in Pakistan were found unwilling to learn from history. People-friendly projects that generate employment, investment in education and health facilities, and contribute to the rule of law speak for themselves. Schemes like Punjab vocational training institutes (VTIs) need to be promoted. No country in the world can develop or flourish unless it invests in education, science and research. Instead of resorting to populist steps, like, say, distributing laptops, state funds must be invested in human resource development involving millions of youths. This tendency to ‘arrange’ overexposure of politicians has always backfired instead of yielding any sense of positivity, but the trend has survived because those at the helm feel happy doing that. MALIK TARIQ ALI LAHORE
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COMMENT 05
Trump’s dangerous dance with division
Thursday, 12 June, 2025
Travel bans and the assault on academic freedom
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sarMad sattar
N a move that rekindles the most divisive and xenophobic tendencies of his first presidency, US. President Donald Trump has once again placed fear and nationalism at the center of his political agenda. This time, he has proposed a sweeping ban on nationals from 12 countries, along with a pointed attack on toptier US universities particularly Harvard, for admitting “too many” international students. On the surface, Trump’s rhetoric may appear to some as a bold stance for US security and opportunity. But beneath the surface lies a far more troubling reality: a calculated effort to weaponize immigration, education, and fear of the “other” as tools of political gain. This agenda, if realized, would not only harm the USA’s moral standing and intellectual leadership but would also send shockwaves through the international community, especially in countries like Pakistan, where USA-bound students and professionals represent a vibrant, ambitious segment of society. The proposed immigration ban, although not yet fully detailed, draws immediate comparisons to Trump’s 2017 “Muslim Ban,” which targeted several Muslim-majority countries under the guise of national security. That policy was met with widespread condemnation, legal challenges, and mass protests at airports and courthouses across the USA. Though partially upheld by the Supreme Court in a limited form, its legacy is one of chaos, cruelty, and confusion. Now, in 2025, Trump seeks to bring that chaos back. In announcing a new ban on individuals from 12 unnamed “high-risk” nations, he is once again playing the same tired tune: blaming immigrants for America’s problems while fanning the flames of division. While the exact list has not been confirmed, early reports suggest that several
majority-Muslim and politically unstable nations are likely to be included, raising serious concerns among human rights groups and legal scholars. These bans are not based on data. There is little credible evidence that immigrants from the previously banned countries posed any unique or unmanageable threat. Instead, these policies rely on stereotypes, fear-mongering, and a willful ignorance of the contributions immigrants make to the US economy and society. In countries like Pakistan, such policies resonate deeply not just because of their discriminatory undertones, but because they affect real people: students with dreams, families separated by borders, professionals with job offers, and researchers with global aspirations. Perhaps even more shocking than the travel ban is Trump’s newfound war on higher education. In his recent remarks, he accused Harvard University and by extension, other elite institutions of “siding with the global elite” and giving admission preference to international students over American applicants. He has vowed to investigate and possibly restrict the ability of universities to admit non-US citizens, claiming that they are “taking away” opportunities from American youth.This argument, while politically convenient, is fundamentally flawed. The reality is that elite institutions like Harvard operate on a global model of excel-
lence. They do not admit students based on national quotas or political whims; they admit them based on merit, academic potential, and their capacity to contribute to a diverse intellectual community. International students, far from being a burden, enrich US universities in numerous ways. They often pay full tuition, support local economies, and contribute cutting-edge research in fields ranging from medicine to artificial intelligence. Many stay on to become entrepreneurs, educators, and community leaders. To frame their presence as a threat to American students is not just misleading, it is an affront to the very principles of academic freedom and global collaboration. Furthermore, the notion that limiting international students will magically increase domestic admissions is a myth. The number of places at elite universities is constrained not by foreign applicants but by institutional capacity and investment in public education. If Trump truly cared about access for American students, he would focus on reforming and funding public colleges and high schools- not vilifying young scholars from abroad. This rhetoric is not taking place in a vacuum. It is part of a broader pattern of retreat from global cooperation, and an embrace of zero-sum nationalism that views every foreigner as a competitor or threat. For nations like Pakistan, the message is
As global citizens and as Pakistanis we must reject this vision. We must insist that students, migrants, and scholars are not threats, but assets. That education is not a zero-sum game. And that no country is made stronger by turning inward and shutting out the world.The fight ahead is not just for visas or university seats. It is for the soul of global cooperation itself
In India, war came dressed in feminist camouflage Operation Sindoor used women’s bodies and symbols to cloak an old patriarchal script
clear and chilling: your students, your professionals, your families are not welcome here. The impact of such a stance is profound. Every year, thousands of Pakistani students apply to US universities, bringing with them academic excellence, cultural richness, and a desire to contribute meaningfully to the world. These students are not just pursuing individual dreams, they are also serving as informal ambassadors, building bridges between cultures in ways that politicians rarely can. A restrictive US policy sends a damaging message that merit does not matter, that your nationality defines your worth, and that the USA is no longer a place for open minds and open doors. Make no mistake: these announcements are not policies rooted in logic or compassion. They are political theatre designed to ignite Trump’s base, distract from economic inequality, and revive his tried-andtested formula of us-versus-them populism. They are a cynical appeal to fear at the expense of facts, dignity, and global goodwill. It is tempting to dismiss Trump’s rhetoric as campaign posturing. But history has shown us that his words, no matter how extreme, often translate into executive orders, court battles, and real-life consequences for millions. It is tempting to dismiss Trump’s
Nation-building, as feminist scholars have long warned, is not a gender neutral project. It reconfigures women into roles that serve its ends: sacrificial mothers, grieving widows, or militant daughters of the nation
The women’s auxiliaries of the RSS – the Rashtra Sevika Samiti and Durga Vahini – reflect and reinforce this patriarchal vision. These groups have long trained women in martial arts and ideological devotion not for feminist liberation, but to protect the Hindu rashtra
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AL JAZEERA
aMrita datta and arani Basu
HEN two female officers of the Indian armed forces – one Hindu, one Muslim – took centre stage to announce Operation Sindoor, the government celebrated it as a landmark moment for gender inclusion. The image of uniformed women addressing the media from the front lines, avenging the deaths of 26 civilians, all men, and symbolically restoring the sindoor (vermilion) of widowhood, was widely praised as feminist iconography in service of the nation. The moment echoed a historical parallel: during the 1971 Indo-Pak War, Prime Minister Indira Gandhi was famously likened to the Hindu warrior Goddess Durga, a symbol of feminine power and nationalist resolve, in recognition of her decisive role in the creation of Bangladesh. That invocation of Durga underscored how Indian political power is often framed through a gendered and mythologised lens, blending statecraft with religious symbolism. But can women leading war be inherently feminist? Nation-building, as feminist scholars have long warned, is not a gender-neutral project. It reconfigures women into roles that serve its ends: sacrificial mothers, grieving widows, or militant daughters of the nation. Scholars like Nira Yuval-Davis argue that women are positioned as symbolic bearers of the nation’s honour and cultural authenticity but rarely as its political agents. In the Indian context, scholars like Samita Sen and Maitrayee Chaudhuri remind us that women’s public roles have historically been framed not in terms of autonomy, but duty to patriarchal structures. Therefore, the mere presence of women in public or political spheres does not automatically equate to gender justice. Representation must also be interrogated for its objectifying function. Today’s military feminism, in which women gain visibility in war zones, follows this same path: celebrating women’s ability to “be like men” while leaving untouched the masculine and patriarchal foundations of militarism itself. This can be observed in Operation Sindoor, which projects the spectacle of two women in uniform as feminist optics, while the
script they perform remains deeply patriarchal, demanding women prove their worth through masculine-coded nationalism. Such feminist optics align neatly with the ideological framework of the Rashtriya Swayamsevak Sangh (RSS). Founded in 1925, the RSS is a Hindu nationalist organisation that serves as the ideological parent of India’s ruling Bharatiya Janata Party (BJP). It envisions India as a Hindu rashtra (nation), advocating cultural nationalism rooted in Hindu traditions and values. Scholars like Christophe Jaffrelot argue that the RSS fosters majoritarianism and undermines India’s secular fabric. Its paramilitary structure and emphasis on discipline and nationalism reveal its aim of deepening the hierarchical and patriarchal structure of Indian society. The women’s auxiliaries of the RSS – the Rashtra Sevika Samiti and Durga Vahini – reflect and reinforce this patriarchal vision. These groups have long trained women in martial arts and ideological devotion not for feminist liberation, but to protect the Hindu rashtra. The aesthetics of Operation Sindoor – its saffron undertones, warrior femininity, and choreographed resolve – mirror this legacy. As Bina D’Costa’s work on gender and war in South Asia underscores, women’s bodies often become vehicles of nationalist redemption. The inclusion of a Muslim officer in this tableau may appear to signal secular pluralism. But as D’Costa warns, such inclusions often serve to legitimise exclusionary frameworks. Her presence sanitises a majoritarian script by casting minority visibility as proof of national unity, even as Islamophobic currents persist in broader public discourse. Sindoor – the red vermilion powder traditionally applied by Hindu wives on their head – symbolises marital status, wifely devotion, and the ideal of the “good” woman. It also invokes Goddess Durga. In Hindu Wife, Hindu Nation, historian Tanika Sarkar explores how nationalist discourse fuses the sanctity of the wife with that of the motherland. The very name Operation Sindoor weaponises this metaphor: it promises to avenge broken marital bonds through military strikes on Pakistan, thereby “restoring” the honour of Hindu widows. Yet this operation also constructs a tableau of women rendered widowed – stripped of their sindoor – whose grief is appropriated as nationalist fuel. As feminist historian Urvashi Butalia reminds us, women’s bodies and symbols become “testimonies of war.” In this context, sindoor represents not what widows possess, but what they have lost: honour, status, and social security. In the imagined redemptive arc of the nation, sindoor is not merely restored – it becomes a badge of nationalist virtue. The two women officers are cast not as autonomous agents, but as foot soldiers of a mythical motherland – extensions of the same patriarchal script that has long confined Indian women to domestic altars.
What is celebrated here is not women’s liberation, but their assimilation into a militant masculine narrative. Militarised femininity is constructed to legitimise state violence, not resist it. It is crucial to debunk symbols and interrogate the hierarchies they represent. What exactly is being applauded when female officers lead a war? Is it the war itself, or the fact that women are participating in it, that is considered “feminist”? The gender metaphor in this spectacle casts women into patriarchal frameworks where they must emulate men to legitimise their agency. By celebrating these officers, the state co-opts women’s leadership to validate militarism while leaving intact the structures that perpetuate gendered violence. Feminist agency demands that women define the terms of their engagement. Here, those terms are dictated by the patriarchal nationalism of the RSS ideology. The two officers did not challenge gender norms; they stepped into a pre-written script that equates womanhood with wifely duty to the nation. Their exalted martial roles serve to naturalise militarism, even as they are packaged as gender progress. The inclusion of a Muslim officer is not incidental. In the ideological universe of Durga Vahini, non-Hindu women can be coopted, so long as they defend the Hindu “family”. This token inclusion supports an illusion of pluralism, while systemic marginalisation of Muslim citizens continues unabated. Feminist movements have historically challenged the logic of war itself, not simply who wages it. If we accept that nation-building is inherently patriarchal, the solution cannot lie in merely enlisting more women into patriarchal institutions. Instead, we must interrogate the very optics of national honour that equate women’s value with wifely symbols and martial sacrifice. Feminist politics in war must decentre militarism, prioritise civilian protection, and insist that women’s leadership be recognised in peacebuilding, rehabilitation, and policymaking — arenas where the absence of sindoor cannot be remedied by bombs or bravado. True gender justice in national security would uplift dissenting women leaders who refuse to be conscripted into patriarchal metaphors, provide material support to widows, and reject marital symbolism as a proxy for state virtue. Operation Sindoor may make for powerful headlines. But behind the illusion of feminist triumph lies an old patriarchal script: women as metaphors of the motherland, valued only when they serve its wartime needs. Liberation lies not in militarised spectacle, but in dismantling the gendered metaphors that bind women to nationalist rites – and expanding the meaning of agency beyond the theatre of war.
Amrita Datta is Lecturer at the Bielefeld Graduate School in History and Sociology, Bielefeld University. Arani Basu is Assistant Professor at Heidelberg Centre for Transcultural Studies, Heidelberg University.
announcements as political bluster. After all, he is not yet in power. But given his current lead in Republican primaries and the polarized state of US politics, such complacency would be dangerous. Pakistan’s diplomatic mission in Washington must prepare for renewed challenges. Civil society should speak up for the rights of students, families, and workers who may be caught in the crossfire. And educational institutions worldwide should begin exploring stronger regional partnerships so that the pursuit of knowledge is never hostage to the whims of one man’s politics. We are at an inflection point. Trump’s renewed push for travel bans and university restrictions is not just a campaign strategy, it is a battle cry for a worldview that thrives on walls, not bridges. As global citizens and as Pakistanis we must reject this vision. We must insist that students, migrants, and scholars are not threats, but assets. That education is not a zero-sum game. And that no country is made stronger by turning inward and shutting out the world. The fight ahead is not just for visas or university seats. It is for the soul of global cooperation itself. The writer is a lawyer based in Lahore
Iran’s Israel documents a damning expose of IAEA
Iran’s successful intelligence operation has led to the discovery of the locations of secret nuclear sites built by Israel in the occupied territories
I
TEHRAN TIMES
Mona Hojat ansari
SRAEL has long boasted that intelligence advantage in the region is on its side, claiming its espionage and surveillance capabilities are too sophisticated to be rivaled by any other actor. The validity of that assertion was first put to question on October 7, 2023, when Palestinian Resistance forces infiltrated the occupied territories, breaching the heavily fortified walls that have besieged Gaza for the past 18 years. Israel failed to anticipate the attack and struggled to respond effectively for several hours, allowing Palestinian fighters to take prisoners back to Gaza – individuals the regime has been unable to retrieve despite its extensive destruction of the enclave. The regime’s intelligence capabilities faced another test last week, after Iran’s national television announced that the country had obtained a large trove of classified Israeli information. Intelligence Minister Esmaeil Khatib stated that the successful operation had significantly enhanced Iran’s “offensive” capabilities. He noted the ministry required considerable time to review the obtained documents, images, and videos. The Tehran Times understands that Iran obtained the secret data not only through direct access within the occupied territories but also through other operational methods.
WHAT THE DATA CONTAINS: The extracted information spans various sectors, but data related to the International Atomic Energy Agency (IAEA) is especially relevant in light of the agency’s recent increased pressure on Tehran. According to sources speaking to the Tehran Times, Iran uncovered confidential letters it had sent to the IAEA within the occupied territories, along with other secret documents belonging to the UN nuclear watchdog concerning its nuclear program. One source stated that Iran suspects Israel did not obtain the letters and documents through espionage but received them directly from the IAEA. “Of course, if proven to be true, this would not be too surprising,” the source said. “We have long known that the IAEA functions as a political tool, rather than a technical body with legal obligations.” A report presented to IAEA member states last month by Director-General Rafael Grossi reiterated previously addressed and refuted allegations regarding Iran’s nuclear activities. That was seen as setting the stage for a resolution, anticipated at the agency’s annual board meeting currently in session, accusing Iran of non-compliance with its non-proliferation commitments. Such a resolution would then pave the way for the activation of the so-called snapback mechanism,
which would return anti-Iran UN sanctions lifted under the JCPOA. It is unclear whether the newly obtained information will prompt Iran to restrict IAEA inspections of its nuclear sites, which face more scrutiny than any other nuclear facility globally. But the spokesperson of the Atomic Energy Organization of Iran (AEOI) stated Monday that Tehran would reduce its cooperation with the UN nuclear watchdog to pre-JCPOA levels if the agency does not demonstrate “gratitude”. The IAEA’s intensive inspections of Iranian nuclear sites began under the 2015 nuclear deal. Despite the West’s failure to uphold its commitments and the reimposition of sanctions, Tehran has allowed IAEA inspectors to remain in the country and continue their work.
‘MORE TARGETS FOR IRANIAN MISSILES’: Apart from the cozy relationship between the IAEA and Israel, Iran’s successful intelligence operation has led to the discovery of the locations of secret nuclear sites built by Israel in the occupied territories. In a statement published on Monday, Iran’s Supreme National Security Council (SNSC) said it now possesses a “bank of Zionist targets”. “These [hidden] sites would be attacked in response to any Israeli strike on Iran’s nuclear infrastructure,” the statement read. Israeli officials have said they would attack Iran’s nuclear sites if indirect negotiations between Tehran and Washington fail to lead to their “dismantlement”. Also commenting on the significance of the newly-acquired information, the chief commander of Iran’s Islamic Revolution Guards Corps (IRGC) said the Islamic Republic will be able to strike potential Israeli targets “more precisely” now. “Undoubtedly, this sensitive intelligence will render the efforts that are aimed at accelerating the annihilation of the occupying Zionist regime more effective and increase the precision of [potential future] Iranian missile strikes,” Major General Hossein Salami wrote in a message issued on Tuesday. Iran attacked Israeli positions in the occupied territories twice in 2024 with missiles and drones. Operation True Promise II, the second attack, achieved a success rate of over 80%. A LOT MORE REMAINS UNDISCUSSED: When breaking the news of the intelligence operation in remarks to national TV, Khatib said the volume of documents obtained was so immense that “thousands of documents’ is a gross understatement compared to what has been acquired.” The Tehran Times understands that Iranian authorities have yet to publicly discuss the most significant content of the recovered documents and footage.
06 newS
CHINA, US AGREE ON FRAMEWORK TO IMPLEMENT LEADERS’ CONSENSUS
C
LONDON
stAff correspondent
HINA and the United States have agreed in principle on the framework for implementing the consensus reached by the two heads of state during their phone talks on June 5 and at Geneva talks last month, said Li Chenggang, China’s international trade representative and vice commerce minister, on Tuesday. He made the remarks when briefing the press following the first meeting of the China-U.S. economic and trade consultation mechanism in London. The Chinese and U.S. teams held “professional, rational, in-depth and candid” discussions on economy and trade on Monday and Tuesday, he said. Li said it is hoped that progress made at the London meeting will be conducive to strengthening trust between China and the United States, further promoting the steady and healthy development of economic and trade ties between the two countries. He said
he hopes the meeting will inject positive energy into global economic growth. China and the US held candid and indepth talks, and thoroughly exchange views on economic and trade issues of mutual concern during their first meeting of the ChinaUS economic and trade consultation mechanism held in London from Monday to Tuesday. The two sides reached principled agreement on implementing the important consensus reached by the two heads of state during their phone call on June 5 and the framework of measures to consolidate the outcomes of the economic and trade talks in Geneva, and made new progress in addressing each other’s economic and trade concerns, according to the report. China’s Vice Premier He Lifeng, who attended the meeting, stated that it was an important consultation held under the guidance of the strategic consensus reached by the two heads of state on June 5. He emphasized that China’s position on China-US economic and trade issues is clear and consistent. The essence of
China-US economic and trade relations is mutual benefit and win-win, according to the report. Cooperation benefits both sides, while confrontation harms both. He stated that there are no winners in a trade war – China doesn’t seek conflict but won’t be intimidated by one. The two sides should resolve trade differences through equal dialogue and mutually beneficial cooperation. China approaches these consultations with both sincerity and principle, He said. Looking ahead, both sides should follow the consensus and requirements set out during the phone talks by the two heads of state, further make good use of the consultation mechanism, deepen consensus, reduce misunderstandings, and strengthen cooperation, He noted. China reiterated that both sides should meet each other halfway, honor commitments, take action on consensus to safeguard hard-won dialogue outcomes, continue to maintain communication and dialogue, and work toward a stable and constructive China-US economic and trade relations –
one that brings more certainty and stability to the global economy, the Chinese vice premier said, according to the report. The US side said that the meeting yielded positive outcomes and further stabilized bilateral economic and trade relations,
Thursday, 12 June 2025 | LAHORe
and the US will work with the Chinese side in the same direction, in line with the requirements set out during the phone talks between the two heads of state, to jointly implement the consensus reached at this meeting, according to the report.
Iran says to target US bases if conflict breaks out TEHRAN
Agencies
Iran threatened on Wednesday to target United States military bases in the region if conflict breaks out, while US President Donald Trump said he was “less confident” about reaching a nuclear deal. Iran and the United States have held five rounds of talks since April to thrash out a new nuclear deal to replace the 2015 accord that Trump abandoned during his first term in 2018. Since returning to office in January, Trump has revived his “maximum pressure” campaign on Tehran, backing nuclear diplomacy but warning of military action if it fails. “All its bases are within our reach, we have access to them, and without hesitation we will target all of them in the host countries,” Iran’s Defence Minister Aziz Nasirzadeh said in response to US threats of military action if the talks fail. “God willing, things won’t reach that point, and the talks will succeed,” the minister said, adding that the US side
“will suffer more losses” if it came to conflict. The United States has multiple bases in the Middle East, with the largest located in Qatar. Iran and the United States have recently been locked in a diplomatic standoff over Iran’s uranium enrichment, with Tehran defending it as a “non-negotiable” right and Washington calling it as a “red line”. In an interview published on Wednesday, Trump said he was “less confident” the United States and Iran could reach a deal, in response to a question on whether he believed he could stop Tehran from enriching uranium. ‘A SHAME’ Iran currently enriches uranium to 60 percent, far above the 3.67-percent limit set in the 2015 deal and close though still short of the 90 percent needed for a nuclear warhead. Western countries, including the United States and its ally Israel, have long accused Iran of seeking to acquire atomic weapons, while Tehran insists its nuclear programme is for peaceful purposes.
Last week, Iran’s supreme leader Ayatollah Ali Khamenei said enrichment is “key” to Iran’s nuclear programme and that Washington “cannot have a say” on the issue.During the interview with The New York Post’s podcast ‘Pod Force One’, which was recorded on Monday, Trump said he was losing hope a deal could be reached. “I don’t know. I did think so, and I’m getting more and more — less confident about it. They seem to be delaying and I think that’s a shame. I am less confident now than I would have been a couple of months ago,” he said. “Something happened to them but I am much less confident of a deal being made … May be they don’t wanna make
a deal, what can I say? And may be they do. There is nothing final,” he added. On May 31, after the fifth round of talks, Iran said it had received “elements” of a US proposal for a nuclear deal, with Araghchi later saying the text contained “ambiguities”. Iran has said it will present a counterproposal to the latest draft from Washington, which it had criticised for failing to offer relief from sanctions — a key demand for Tehran, which has been reeling under their weight for years. On Monday, the United Nations nuclear watchdog began a Board of Governors meeting in Vienna that will last until Friday to discuss Iran’s atomic activities and other issues. The International Atomic Energy Agency (IAEA) meeting followed a report issued by it criticising “less than satisfactory” cooperation from Tehran, particularly in explaining past cases of nuclear material found at undeclared sites. Iran has criticised the IAEA report as unbalanced, saying it relied on “forged documents” provided by its arch-foe Israel.
Xi Jinping, Sassou send congratulatory letters to FOCAC ministerial meeting of coordinators BEIJING
stAff correspondent
Chinese President Xi Jinping and President of the Republic of the Congo Denis Sassou Nguesso sent congratulatory letters separately to the Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of the Forum on China-Africa Cooperation (FOCAC) held in Changsha, capital of central China’s Hunan Province, on Wednesday. Noting that the current international situation is marked by changes and turmoil, Xi said China is committed to providing new opportunities for the world with the new achievements of Chinese modernization and offering new impetus to the Global South partners, including Africa, with its huge market. China is ready to negotiate and sign the agreement of the China-Africa Eco-
nomic Partnership for Shared Development to implement the zero-tariff treatment for 100 percent of tariff lines for 53
African countries having diplomatic relations with China, Xi said, adding that China will provide more convenience for the least developed countries in Africa to export to China. He said China is ready to work with Africa to deepen the implementation of the 10 partnership actions for modernization, strengthen cooperation in such key areas as green industry, e-commerce and e-payment, science and technology, and artificial intelligence, and enhance cooperation in security, finance and the rule of law to promote high-quality development of ChinaAfrica cooperation. Xi pointed out that openness and cooperation are the right path, and mutual benefit and win-win outcomes meet the
aspiration of the people. He said China and Africa working together to advance modernization will strongly promote solidarity and cooperation in the Global South and open up a brighter prospect for the cause of world peace and development. It is hoped that China and Africa will continue to steadily advance the implementation of the Beijing Summit’s outcomes, carefully plan the future development of the FOCAC, join hands to build an all-weather China-Africa community with a shared future for the new era and contribute to building a community with a shared future for humanity, said Xi. Sassou Nguesso said in his letter that strategic and practical cooperation between Africa and China has achieved fruitful results since the Beijing Summit. Noting that the ministerial meeting coincides with the 25th anniversary of the FOCAC’s establishment, Sassou Nguesso said he will spare no effort and work with President Xi to promote greater progress in building a community with a shared future between Africa and China and enhance the well-being of the people on both sides. As the African co-chair of the FOCAC, the Republic of the Congo is willing to work with China and other countries in the Global South to strengthen cooperation on the Belt and Road Initiative, jointly build a multipolar world free from unilateralism and protectionism, and usher in a new era of inclusive and mutually beneficial globalization, Sassou Nguesso added.
Musk regrets some of his Trump criticisms, says they ‘went too far’ NEW YORK Agencies
Elon Musk, the world’s richest person and Donald Trump’s former adviser, said on Wednesday he regretted some of his recent criticisms of the United States president, after the pair’s public falling-out last week. “I regret some of my posts about President [Donald Trump] last week. They went too far,” Musk wrote on his social media platform X. Musk’s expression of regret came just days after Trump threatened the tech billionaire with “serious consequences” if he sought to punish Republicans who voted for a controversial spending bill. Their blistering break-up — largely carried out on social media before a riveted public since Thursday last week — was ignited by Musk’s harsh criticism of Trump’s so-called “big, beautiful” spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk — one of the Republican Party’s biggest financial backers in last year’s presidential election — to fund primary challenges against Republicans who voted for the legislation. “He’ll have to pay very serious consequences if he does that,” Trump, who also branded Musk “disrespectful”, told NBC News on Saturday, without specifying what those consequences would be. Trump also said he had “no” desire to repair his relationship with the South African-born Tesla and SpaceX chief, and that he has “no intention of speaking to him”. In his post today, Musk did not specify which of his criticisms of Trump had gone “too far”. ‘WISH HIM WELL’ The former allies had seemed to have cut ties amicably about two weeks ago, with Trump giving Musk a glowing send-off as he left his cost-cutting role at the so-called Department of Government Efficiency (DOGE). But their relationship cracked within days as Musk described the spending bill as an “abomination” that, if passed by Congress, could define Trump’s second term in office. Trump hit back at Musk’s comments in an Oval Office diatribe and from there the row detonated, leaving Washington stunned.“Look, Elon and I had a great relationship. I don’t know if we will anymore. I was surprised,” Trump told reporters. Musk, who was Trump’s biggest donor to his 2024 campaign, also raised the issue of the Republicans’ election win. “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 5149 in the Senate,” he posted, adding: “Such ingratitude.” Trump later said on his Truth Social platform that cutting billions of dollars in subsidies and contracts to Musk’s companies would be the “easiest way” to save the US government money. US media have put the value of the contracts at $18 billion.
NEWS 07
Thursday, 12 June 2025 | LAHORE
CORPORATE CORNER
Federal Minister for maritime affairs visits naval headquarters ISLAMABAD
staff report
Federal Minister for Maritime Affairs, Muhammad Junaid Anwar, visited Naval Headquarters, Islamabad, and called on Chief of the Naval Staff, Admiral Naveed Ashraf. During the meeting, contemporary maritime issues and Pakistan Navy’s role in regional maritime security and Indian Ocean Region were discussed. Both dignitaries also deliberated on the prospects of maritime economy and its significance for overall economic growth of the country. The Federal Minister appreciated Pakistan Navy’s role in the promotion and development of Pakistan’s maritime sector. Later, a comprehensive briefing was given to the Minister on Pakistan’s maritime interests, challenges, opportunities, and the initiatives undertaken by Pakistan Navy in coordination with the Ministry of Maritime Affairs. The dignitary was also apprised of the preparations for upcoming 2nd edition of Pakistan International Maritime Expo and Conference (PIMEC-2025), and its vital role in enhancing maritime awareness and promoting the Blue Economy as a driver of Pakistan’s future economic growth.
PIA and Air Karachi Sign Maintenance Agreement KARACHI
staff report
Pakistan International Airlines(PIA) is expanding its MRO Business (Maintenance, Repair and Overhaul facility to other airlines'. PIA and Air Karachi, a privately-owned airline established in collaboration with the business community, signed a Maintenance agreement at PIA Head Office. Under the agreement, Air Karachi will acquire engineering services or MRO (Maintenance, Repair, and Overhaul) services from PIA. The agreement was signed by CEO PIA, Air Vice Marshal Amir Hayat, and Air Karachi's Chairman Hanif Gohar and CEO AVM (R) Imran Majid. Senior officials from PIA and Air Karachi were present on the occasion. PIA Engineering Division has the capacity and capability for Maintenance Repair and Overhaul that is available and being offered to other airlines'. This agreement will generate additional revenue for PIA through MRO facilities.
Due to rise in extreme heat, electricity related complaints increased: IESCO ISLAMABAD
staff report
Chief Executive Officer of Islamabad Electric Supply Company (IESCO), Muhammad Naeem Jan said that like the rest of the Pakistan, IESCO region is also currently facing an intense heat wave and high humidity. As electricity consumption increases, the load on the power distribution system has also surged. This has led to a gradual rise in faults and tripping on 11kV feeders, along with increase in customer complaints related to individual connections and transformers. To ensure prompt resolution of these electricity-related complaints, IESCO's Operations, GSO, and Construction teams are fully mobilized. IESCO Chief praised the line staff said that we salute our field teams who are performing their duties with dedication even in scorching heat. Our line staff is undoubtedly our most valuable asset. He also issued a stern directive to all SDOs to maintain strict monitoring of their complaint offices. He emphasized that 100% of customer calls to complaint centers must be attended to and followed through to resolution.
Invisible No More: Mobilink Bank's Inheritance campaign shortlisted at cannes lions 2025 KARACHI
staff report
Pakistan's leading digital microfinance Bank, Mobilink Bank's inheritance campaign, has been shortlisted for the prestigious Cannes Lions International Festival of Creativity 2025 in the 'Glass: The Lion for Change' category. The Invisible Heirs campaign tackles systemic barriers to women's inheritance rights in Pakistan by highlighting a long-ignored issue through data-driven tools and impactful storytelling. Cannes Lions received over 251 global entries in the subject category, with only 28 campaigns making it to the shortlist. Mobilink Bank's Invisible Heirs campaign has already garnered global acclaim by winning prestigious awards, including Dubai Lynx, M360 APAC Digital Nations Awards, and Glomo. The powerful video campaign sparked a nationwide conversation around women's access to justice and economic equity. It is complemented by an innovative Inheritance Calculator embedded within Mobilink Bank's digital app, 'Dost,' which allows women to independently calculate their rightful share of the inheritance and make informed decisions in pursuing their rights. Aamir Ibrahim, CEO Jazz & Chairman Mobilink Bank celebrated the nomination, saying, “Invisible Heirs shines a light on an issue too often overlooked - women’s rightful access to inheritance.
PUNJAB CM APPROVES 10% RAISE IN SALARIES, 7% IN PENSIONS OF GOVT EMPLOYEES
A
LAHORE
staff report
day after the announcement of the federal budget for fiscal year 2025-26, Punjab Chief Minister Maryam Nawaz on Wednesday approved a 10 percent raise in salaries and a seven percent raise in the pensions of the provincial government employees. The decision comes in line with the federal government’s announcement in the budget for the next financial year, raising salaries of government employees by 10 percent and pensions by seven percent. Punjab Chief Minister Maryam Nawaz has approved a 10 percent raise in salaries and a seven percent raise in the pensions of the provincial government servants, which will be included in the
provincial budget. The Punjab Finance Department will place it before the provincial cabinet for its approval. The chief minister has already convened the provincial cabinet’s meeting at 11:00 AM on June 13 to approve the budget ahead of its presentation in the provincial assembly. CM LAUNCHES PAKISTAN’S FIRST VIRTUAL BLOOD BANK CENTRE Meanwhile, on the directives of Punjab Chief Minister Maryam Nawaz, Pakistan’s first and exemplary Virtual Blood Bank Center has been established in Punjab. By calling Emergency Helpline 15, the patient can immediately get the required blood from the Virtual Blood Bank Center. After calling Emergency Helpline 15, pressing button 4 will immediately connect the call to the Virtual Blood Bank Center. The Safe City Officer deployed at
the Virtual Blood Bank Center obtains required information about the patient’s location and blood group. The donors registered in the patient’s respective area are immediately contacted by the patient’s family through a conference call. In the blood donation model, police officers in their respective police stations are also involved in the donation process. The procedure for registering blood donors in the Virtual Blood Bank of Punjab Safe City has been simplified. Blood donors can register on Helpline 15, the Safe City official website, or at the Police Khidmat counters established in government hospitals across Punjab. 2500 people contact the virtual blood bank daily to get blood. Arrangements will be made to meet the urgent need of 250 patients daily. The number of blood donors regis-
Civil society raises alarm over anti public health budget ISLAMABAD
tered in the virtual blood bank is more than 25,000. The donors of the virtual blood bank include 10,000 police personnel and 15,000 citizens. 24/7 service is being provided across Punjab, and more than 14,000 patients have benefited from this facility. The chief minister has appealed to the citizens, especially the youth, to join the noble cause of blood donation. She emphasized that every drop of blood is precious in times of emergency and dire need.
Chairman senate approves launch of summer internship program 2025 KARACHI
staff report
In light of the federal budget announcement for 2025-26, which failed to increase taxes on harmful ultra-processed products (UPPs) and instead imposed a levy on fuel—a vital commodity—leading health organizations and experts have termed this as an anti public health budget. They urged the government to prioritize public health over corporate interest and enact at least 20 percent federal excise duty on UPPs during the ongoing budget approval process. With one Pakistani suffering a heart attack every minute and the daily death toll from diabetes and its complications exceeding 1,100, this is a national health emergency demanding bold, evidence-based policy action from the government. According to health experts, ultra-processed foods are a significant contributor to Pakistan's skyrocketing rates of non-communicable diseases (NCDs) like cardiovascular diseases, obesity, type 2 diabetes, and certain cancers, due to their high levels of added sugars, sodium, saturated fats, and industrially produced trans-fats.
staff report
These concerns were highlighted during a media discussion organized by The Pakistan National Heart Association (PANAH), in collaboration with Heartfile, Pakistan Kidney Patients Welfare Association, Centre for Peace and Development Initiatives (CPDI), Pakistan Youth Change Advocates (PYCA), and other civil society organizations at a local hotel in Islamabad. Experts expressed concerns over the government's misplaced fiscal priorities, overlooking the rising NCDs burden caused by unhealthy diet consumption.
Senator spearheads a comprehensive field visit to BISP payment centers KOHAT
staff report
Chairperson BISP Senator Rubina Khalid Conducts OnSite Assessment at Payment Centers in Kohat to Enhance Service Delivery and Engage with Beneficiaries Chairperson Benazir Income Support Programme (BISP), Senator Rubina Khalid, spearheaded a comprehensive field visit to BISP payment centers in Tehsil Gambat and Village Council Office Togh Bala, Kohat, to meticulously evaluate the efficacy of service delivery and directly interact with deserving women receiving financial assistance under the program. During her visit, Senator Rubina Khalid engaged with women beneficiaries, listening to their concerns and reaffirming BISP's steadfast commitment to their socio-economic empowerment. Emphasizing the importance of self-empowerment, she invoked the courageous legacy of Shaheed Mohtarma Benazir Bhutto, urging the women to emulate her bravery and assert their rights unequivocally. "These payments are your rightful entitlement," she declared emphatically. "If anyone demands unauthorized deductions, report it forthwith. BISP will take stringent
legal action against those involved in any form of malpractice." She further directed that only beneficiaries who receive a payment notification via 8171 should visit the campsites, stressing that repeated surveys are not feasible due to resource constraints. To enhance awareness, she instructed staff to prominently display informative banners at campsites, ensuring transparency and clarity. At the Village Council Office Togh Bala, Senator Rubina Khalid directed the BISP staff to provide meticulous assistance and support to all deserving women, ensuring a seamless and dignified experience at the centers.
Opp Leader of KMC, along with a delegation, held a detailed meeting with CEO Water and Sewerage Corporation KARACHI
staff report
Opposition Leader of KMC, Advocate Saifuddin, along with a delegation, held a detailed meeting with CEO of the Water and Sewerage Corporation, Asadullah Khan, and other officials. From the Water and Sewerage Corporation, Chief Engineer Water Distribution Muhammad Ali Sheikh, Chief Engineer Water WTM Ejaz Ahmed, Chief Engineer Sewerage Muneer Bhatti, and other officers were present. Accompanying the Opposition Leader were the Focal Person of the Opposition in the Karachi Metropolitan Corporation, Nauman Ilyas, and UC Chairman Shahid Furman. Advocate Saifuddin presented a questionnaire to the CEO of Karachi Water and Sewerage Corporation, prepared in light of the suggestions
and complaints raised by council members during the recent KMC City Council session. Discussions were held on various issues, including the breakdown and leakage of main water lines across the city, the hardships faced by the public due to the unfair distribution of water, illegal and unauthorized water connections, water tankers, hydrants, and other
matters related to the Water and Sewerage Corporation. CEO Asadullah Khan assured that, for new water connections, coordination between UC Chairmen and the relevant Executive Engineers (EXENs) would be improved, and the requirement of an NOC from the UC Chairman would help address consumer complaints more effectively.
Chairman Senate of Pakistan, H.E. Syed Yousaf Raza Gillani, has formally approved the launch of the Summer Internship Program 2025 as part of the Senate’s ongoing Outreach Initiative aimed at engaging youth in the legislative process. The program will commence on June 16, 2025, and run for a period of eight weeks. A total of twenty-one university students have been selected from leading institutions, including the Foundation for Advancement of Science and Technology (FAST), National University of Modern Languages (NUML), and National University of Sciences and Technology (NUST). The initiative is designed to enhance the understanding and practical exposure of students—particularly in the fields of social sciences and technology—to the legislative and administrative functioning of the Senate of Pakistan, especially during the ongoing budget session. Prior to the formal start of the program, the selected students will undergo a two-day orientation at the Pakistan Institute for Parliamentary Services (PIPS). The orientation will focus on the Constitution of Pakistan, legislative processes, and the functioning of the Senate Secretariat and its Standing Committees. Under this flagship initiative, the Senate Secretariat has previously enrolled 20 students from Quaid-i-Azam University, National Defence University, Bahria University, and NUST (June–August 2022), and 18 students from seven schools in Islamabad (July– August 2024). In line with his inclusive vision, Chairman Senate has also launched an unpaid sixweek internship program since assuming office in March 2024. To date, the Secretariat has successfully conducted internships for over 426 students from various universities across the country. Building on this success, the Secretariat will now extend the internship program in its second phase to A and O Level schools in Islamabad, ensuring broader youth participation in the democratic and legislative process.
Ignoring youth in federal budget is serious concern, says Ibrahim Hasan Murad LAHORE
staff report
Former Provincial Minister Ibrahim Hasan Murad has expressed deep concern over the lack of focus on youth in the recently announced federal budget. He stated that Pakistan's youth are its most valuable asset and their voices must be prominently reflected in national policymaking, particularly in the federal budget. Former Minister emphasized that with nearly two-thirds of Pakistan's population comprising young people, it is critical to invest in their education, skills development, digital literacy, and employment opportunities. Without such investment, he warned, the nation risks forfeiting its bright future. Murad said that a national budget is not merely a tool for deficit management but a blueprint for the country's long-term progress. If we fail to invest in our youth today, we will pay a heavy price in the years to come, he added. He urged the Finance Minister to ensure that the budget reflects a strong commitment to addressing the challenges and aspirations of the youth. Ibrahim Murad further called on the federal government to include youth-centered initiatives in the budget, including dedicated funds, skill development programs and job creation efforts. He also emphasized the need for a comprehensive and coordinated policy to empower young people to play a dynamic role in national development.
Swat: Tourist paradise attracts high influx of local, international visitors SWAT
syed shahabuddin
As the first light of dawn kisses the lush valleys and mist rises from snow-clad peaks like a dream unfolding, one realizes they’ve entered Swat—a land cradled by nature, and arguably the beating heart of Pakistan’s scenic grandeur. During the ongoing tourism season, Swat’s breathtaking landscapes have once again drawn crowds in the thousands not only from across Pakistan but also from countries such as Malaysia, Afghanistan, the UK, Korea, the Philippines, and Azerbaijan. These international visitors found themselves immersed in a natural wonderland where tranquility meets hospitality.
According to Saeedur Rehman, spokesperson for the Upper Swat Development Authority (USDA), the surge in tourism is the result of a well-orchestrated strategy by the Khyber Pakhtunkhwa government. Tourism has been prioritized at the highest level, with Chief Minister Ali Amin Gandapur and Tourism Advisor Zahid Chanzah Zahid taking the lead. Key areas such as sanitation, security, traffic flow, accommodation, and visitor guidance have all seen substantial improvements. On special directives from the Director General of the USDA, major destinations including Kalam, Malam Jabba, Gabin Jabba, Jarogo Waterfall, Madian, Bahrain, and Sulatanr were made fully operational and visitorfriendly.
Behind this seamless experience lies the tireless work of district institutions. Under the leadership of District Police Officer Muhammad Umar Khan Gandapur, foolproof security arrangements were implemented. Tourism Police set up guidance camps at key points, while Traffic Police professionally managed the overwhelming inflow of vehicles. The blend of alertness and warmth of officers directing traffic with smiles, assisting families, and ensuring safety created a welcoming atmosphere that deeply resonated with visitors. “Tourists were particularly touched by the cleanliness and the hospitality of the locals,” Saeed ur Rehman noted. Many shared their experiences on social media, describing Swat as a “heavenly
corner of Pakistan.” Whether it was young campers under the stars in Kalam or foreign tourists gliding across Malam Jabba’s snow-covered slopes, every face reflected joy, contentment, and awe. The success of this season was not just a stroke of natural luck. It was the result of coordinated planning between local authorities, security forces, and tourism management bodies. If this level of collaboration continues, Swat is wellpositioned to evolve into not only a national gem but a globally recognized tourist destination. In its quiet strength and organized beauty, Swat has once again proven that when peace, planning, and sincerity converge, nature’s gifts can be embraced in their full glory.
PAKISTANIS, CHINESE LOVE EACH OTHER’S FESTIVALS AND CULTURES: CHINESE ENVOY
Thursday, 12 June, 2025
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HINESE Ambassador Mr Jiang Zaidong has said that Pakistan and China not only have equality between civilizations, “but we also love each other’s festivals and cultures.” “China loves the old traditional festivals of Pakistan including the Eid festival,” said the Ambassador while speaking at a function held here at the Chinese Embassy to celebrate International Day for Dialogue Among Civilizations. Last year, he said, China and the other 82 member States of the UN proposed the
IT sector criticizes budget for neglecting key demands, warns of growth stagnation
Global Civilisation Initiative, and it was approved by the UN General Assembly. “This reflects the continuous expansion of global civilisation, and it also reflects the goodwill of the member states of the UN and the United States.” We all want to promote the mutual exchanges of civilisations to realise the great dream of improving human civilization, he added. He said members of the United Nations, including Pakistan, want to promote mutual learning among civilisations and promote advanced progress among civilisations. ”It is the common aspiration of mankind, so today we are celebrating the first International Day for Dialogue Among Civilisations.” He said, it shows that China is imple-
menting the GCI step by step and promoting the advancement of progress of humankind’s civilisation. He believed China and Pakistan had a very solid foundation and leverages to implement GCI. China will always practice the exchanges among civilisations, he said and added China will always promote the progress of civilisations too. Before the Eid holiday, Chinese embassy’s website, sent a congratulatory video message to all the Pakistani friends to express our best wishes, and it has reminded me of the Chinese Spring Festival celebrations. “It shows that there are some similarities between the Eid holiday and also our Spring Festival.”
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He said the Gandhara Arts Exhibition is a shining example of the exchanges between Chinese and Pakistani civilisations. It combines Pakistan’s own culture with the ancient Rome and Greek and Buddhism culture and has formed its own unique style, he added. This year marks the 18th anniversary of the victory of the World Anti-Fascist War and also the anniversary of the founding of the United Nations, he said. The United Nations has brought profound changes to the international system and order, he added. He said countries, regardless of big or small, or strong or poor, are all equal. “We should all treat each other equal, but some countries have forgotten about these principles.” He said, if all the coun-
Pakistan Software Houses Association warns that failure to address tax policies for remote workers and IT exporters may halt growth in the digital economy
rangzeb presented the budget in the National Assembly on Tuesday, positioning it as a step toward restructuring Pakistan’s economic base. The budget targets 4.2% GDP growth for the next fiscal year, up from 2.7% in FY2024. The government also announced a 7.5% inflation target, a significant reduction from the previous year, and projected a fiscal deficit of 3.9% of GDP — or Rs5.037 trillion — compared to 5.9% in the outgoing year. A primary surplus of 2.4% is also targeted, higher than both the current year’s budgeted 2% and the revised estimate of 2.2%. Market analysts noted that continued IMF engagement, clarity on fiscal direction, and the absence of harsh tax surprises boosted investor confidence. Sentiment was further buoyed by expectations of monetary easing in the coming quarters, supported by improving inflation data and macroeconomic stability. However, some analysts also cautioned that long-term sustainability will depend on the implementation of structural reforms, especially in tax administration, energy pricing, and privatisation. “The current optimism is justified but fragile,” a brokerage house noted in a post-market report. “Any slippage in the reform path or deterioration in external accounts could quickly reverse gains.” Nevertheless, Wednesday’s record close underscores investor approval of the government’s fiscal signalling — at least for now — as Pakistan’s capital markets continue to recover from a prolonged period of volatility and economic uncertainty.
ISLAMABAD
Ghulam abbas
The Pakistan Software Houses Association (P@SHA) has termed the federal Budget 2025–26 a “disappointment” and a direct threat to the future of Pakistan’s Information Technology (IT) and IT-enabled Services (ITeS) sector. In a statement, P@SHA said the budget dealt a blow to an industry that has long carried hopes for export-led recovery, youth employment, and digital transformation. The sector currently employs over 600,000 young Pakistanis—one of the country’s largest pools of skilled talent. Despite this, the association lamented that the budget failed to address two of the sector’s most urgent and long-standing demands: a clear and equitable taxation framework for remote workers and the continuation—and expansion—of the existing tax regime for formal IT exporters. “What the industry has consistently demanded is not a temporary concession or patchwork relief, but a stable, 10-year tax policy framework that would enable companies to invest, grow, and compete globally,” P@SHA stated. P@SHA Chairman Sajjad Syed said the association had been warning for over a year about a growing imbalance in taxation. He noted that high-earning remote workers employed by foreign companies remain untaxed, while full-time employees of local IT firms are taxed—giving an unfair advantage to foreign employers. “This makes local hiring more expensive, incentivises capital flight, and encourages informal arrangements,” Mr. Syed said. “Talent retention is collapsing, export dollars are being parked abroad, and formal firms are bleeding value.” The chairman added that the solution is straightforward. P@SHA has proposed classifying any individual earning more than Rs 2.5 million annually from fewer than three foreign sources as a remote worker. This measure, he said, would affect only the top 5 percent of earners, sparing freelancers and small remitters. According to P@SHA, the State Bank already has mechanisms to track the necessary data, making this a policy that could be implemented overnight—yet the proposal has been ignored for years. The association also criticised the government for failing to extend the existing tax regime for IT exporters, which it described as the foundation of over $700 million in investment commitments secured through the Digital Foreign Direct Investment (DFDI) initiative. “A significant amount of taxpayer money was spent to secure those investments during a recent forum in Islamabad,” the statement noted. “There is no continuity in tax policy, and these investments are now at risk. Foreign investors will not engage with a country where rules change every year.” P@SHA warned that the current budget sends a damaging signal to the international community that Pakistan’s digital economy lacks stability and seriousness. “The consequences will be devastating,” said Mr. Syed. “Pakistan’s IT sector—once considered among the country’s most globally competitive industries—may lose its momentum entirely.” He warned that export growth would stall, jobs would disappear, and the government’s target of achieving $25 billion in IT exports would slip permanently out of reach.
KSE-100 SURGES OVER 2,300 POINTS AMID INVESTOR RELIEF OVER STABLE TAX REGIME; MARKET RALLIES ON BUDGET OPTIMISM PROFIT
News Desk
The Pakistan Stock Exchange (PSX) witnessed a historic rally on Wednesday as investors welcomed the federal budget for FY2025–26, which avoided imposing major new taxation measures. The benchmark KSE-100 Index soared by 2,328.24 points or 1.91%, closing at an all-time high of 124,352.68. Bullish momentum dominated the session from open to close, with the index touching an intraday high of 124,588.17 and a low of 123,237.99. Trading volume for the KSE-100 Index stood at 332.58 million shares, reflecting strong investor participation across the board. Of the 100 constituent companies, 75 closed in the green, 24 in the red, and one remained unchanged. The rally was broad-based, with significant buying activity in key sectors such as cement, commercial banks, oil and gas exploration, power generation, and automobile assemblers. Top contributors to
the day’s gains included Lucky Cement (+244.71 points), Fauji Fertilizer Company (+203.88 points), Pakistan Petroleum Limited (+199.10 points), Engro Fertilizers (+156.57 points), and Mari Petroleum (+148.56 points). Top gainers by percentage included Pakistan GasPort Consortium (+10.00%), Bannu Woollen Mills (+9.76%), Pioneer Cement (+8.05%), Maple Leaf Cement (+7.40%), and the Pakistan Stock Exchange itself (+6.92%). Conversely, some stocks faced pressure, with FrieslandCampina Engro Pakistan (7.05%), Atlas Honda (-4.81%), Punjab Oil Mills (-4.14%), Cnergyico (-3.61%), and Unity Foods (-3.00%) among the top losers. From a sectoral perspective, the rally was led by cement stocks, which added 576.42 points to the index, followed by oil and gas exploration companies (+468.23 points), commercial banks (+305.08 points), fertilizers (+284.96 points), and investment banks/securities (+187.29 points). Declines were seen in refinery stocks (-
32.79 points), food and personal care products (-31.23 points), and automobile parts (-5.72 points), though these losses had limited impact on the overall momentum. The sharp rally followed the federal government’s unveiling of the Rs17.573 trillion budget for FY2025–26 a day earlier. The budget proposed no significant increases in capital gains tax or dividend tax, maintaining the capital gains rate at 15%, a move welcomed by capital market participants. “Investors are responding positively to the lack of major tax changes,” said Samiullah Tariq, Head of Research at Pak Kuwait Investment Company. “This signals policy continuity and reduces uncertainty — two things the market always rewards.” Prime Minister Shehbaz Sharif praised the rally in a statement, calling it “a vote of confidence from investors and businessmen in a people-friendly budget.” He said the market reaction reflected optimism about economic stability and the government’s reform agenda. Finance Minister Muhammad Au-
Federal employees receive 10% salary raise, 7% pension increase g
PM SHEHBAZ SHARIF INTERVENES TO INCREASE GOVERNMENT EMPLOYEES' SALARIES BY 10%, REJECTING A PROPOSED 6% INCREASE IN BUDGET PROFIT
News Desk
The government has approved a 10% salary increase for federal employees (Grade-1 to Grade-22) and a 7% pension hike for retired government servants under the federal budget for fiscal year 2025-26. The raise was introduced after Prime Minister Shehbaz Sharif intervened during a cabinet meeting, rejecting a proposed 6% increase and insisting on the higher 10% raise. In addition to salary and pension increases, the government has also introduced pension reforms aimed at reducing the financial burden on the exchequer. The reforms include the elimination of multiple allowances, limiting the family pension period to
10 years after the death of a beneficiary, and linking pension increases to the Consumer Price Index (CPI). The government also proposed imposing a 5% tax on pensions exceeding Rs10 million annually for pensioners below the age of 70, with no tax on low- to medium-income pensioners. While the federal budget includes various provisions for government employees, it notably lacked a specified increase in the minimum wage, which remains at Rs37,000. Additionally, differently-abled employees will receive a higher monthly conveyance allowance of Rs6,000, an increase of Rs2,000 from the previous amount. Prime Minister Sharif, addressing the cabinet meeting, emphasised the sacrifices made by the salaried class
and the common man during difficult economic times. He questioned the contributions of the wealthy in comparison to the salaried individuals, who have contributed Rs400 billion in taxes. The Prime Minister stressed that despite the financial challenges, the country’s key economic indicators have shown improvement, and Pakistan is now on a path to economic recovery. The government also proposed a 30% disparity reduction allowance for eligible employees to eliminate salary differences. A special relief allowance has been suggested for armed forces personnel in recognition of their services to national defense, with the expenses covered under the defense budget for the year.
Khyber Pakhtunkhwa announces no new taxes in upcoming budget PESHAWAR News Desk
Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur has announced that the provincial government will not impose any new taxes this fiscal year. Speaking on the province’s financial discipline, Gandapur emphasized that Khyber Pakhtunkhwa has not taken any new loans but allocated Rs150 billion for loan repayments, ensuring responsible debt management. The CM highlighted the ongoing development projects, including the Peshawar-Dera Ismail Khan Motorway, aimed
at improving regional connectivity. Additionally, the government plans to expand interest-free loan schemes for youth to encourage financial self-reliance. In a major initiative to support small businesses, the Khyber Pakhtunkhwa government has launched a long-term, interestfree microfinance scheme for entrepreneurs, with a focus on the merged districts. The scheme, which has already benefitted over 66,000 individuals, provides loans ranging from Rs25,000 to Rs75,000 with flexible repayment terms. Gandapur also declared an “education emergency” in the province, underscoring his administration’s commitment to improving educational standards as part of its long-term development agenda.
Two derailments in a day highlight railway infrastructure issues HYDERABAD News Desk
The poor condition of Pakistan Railways’ infrastructure has once again come under scrutiny after two separate train derailments occurred on the same day in Hyderabad, raising serious concerns over passenger safety. The first derailment occurred in the morning when three wagons of a freight train derailed near Hyderabad Junction, crashing into Platform No. 1 and severely damaging both the track and platform. The incident disrupted train services, halting several passenger and freight trains. While repair teams worked to restore the track, the train remained stranded for several hours. Later in the evening, a bogie from the Pakistan Express, traveling from Karachi to Rawalpindi, derailed near the same junction. Quick actions by the train’s driver prevented a major disaster, though passengers panicked, and many jumped out of the train. Passengers, including women and children, were left sitting inside the derailed coach for over an hour in the scorching heat, with no facilities or proper assistance from railway staff. Eventually, they were asked to shift to another coach, but were left to manage their luggage on their own. Frustrated passengers staged a protest, demanding accountability and a high-level inquiry into the incidents. Railway officials blamed years of neglect, with rusted tracks and worn-out equipment contributing to frequent derailments. Despite these issues, no substantial efforts have been made to overhaul the infrastructure. The Pakistan Express resumed its journey with a delay of over two and a half hours, while the freight train had not departed by late night. Station Master Muhammad Siddiq declined to comment on the derailments, which follow a series of similar incidents at Kotri Railway Station in recent years.
Federal health budget slashed by 16%, raising concerns over healthcare infrastructure g
COMBINED NON-DEVELOPMENT AND DEVELOPMENT BUDGET FOR MINISTRY OF NATIONAL HEALTH SERVICES HAS BEEN CUT FROM RS54.87 BILLION IN FY 2024-25 TO RS46.10 BILLION IN FY 2025-26 PROFIT
News Desk
The federal government has reduced the budget for the Ministry of National Health Services, Regulations, and Coordination (NHSR&C) by nearly 16% for the fiscal year 2025-26, despite increasing health challenges in the country. The combined non-development and development budget for the ministry has been cut from Rs54.87 billion in FY 2024-25 to Rs46.10 billion in FY 2025-26, a reduction
of Rs8.77 billion. The non-development expenditure for NHSR&C has seen a moderate rise, increasing from Rs27.86 billion last year to Rs31.75 billion in the new fiscal year. This increase is mainly allocated to salaries, allowances, administrative operations, and recurring costs to maintain existing health services and staff. Employee-related expenses account for Rs12.65 billion, while Rs16.58 billion is allocated for operating expenses, including routine institutional functions. The ministry
has also earmarked Rs1.2 billion for grants and subsidies, and Rs552 million for the procurement of physical assets. However, the development budget has seen a drastic reduction. The Public Sector Development Programme (PSDP) budget for NHSR&C has been slashed from Rs27 billion in FY 2024-25 to Rs14.34 billion in FY 2025-26, a nearly 47% cut. This reduction is expected to limit the government’s ability to initiate or complete critical infrastructure projects, expand hospitals, and enhance disease surveillance and response systems.
For FY 2025-26, Rs14.343 billion has been allocated under the PSDP, which will be distributed across 21 ongoing and new development schemes. These projects aim to strengthen healthcare infrastructure, disease prevention, and medical education. The largest allocation, Rs4 billion, has been made for the Jinnah Medical Complex and Research Centre in Islamabad. The Prime Minister’s Programme for Prevention and Control of Hepatitis C has been allocated Rs1 billion, while the expansion of the Cancer Hospital and Critical Care Facilities in Islam-
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tries uphold the international system with the United Nations as its core, and we defend the international order with the international law as its core, and we defend the international principle with the United Nations Charter as its core, there will be no trade wars or tariff wars, and there will be no such problems in the world. So as the staunch forces of the international community, China and Pakistan, also as the important members of the global south, China and Pakistan should always practice the true multilateralism and promote an equal and inclusive globalization, he added.
PSX hits record high as budget spurs bullish sentiment g
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abad has been allocated Rs900 million each. Other key projects include the establishment of a cancer hospital in Islamabad (Rs1.7 billion), the strengthening and upgrading of cardiology and pathology departments at the Federal Government Polyclinic Hospital (Rs500 million), and Rs295.27 million for improving point of entries across the country. Additionally, Rs364.7 million has been allocated for the establishment of four Basic Health Units (BHUs) in Islamabad, and Rs100 million for an infectious disease laboratory. The National Health Support Project for Federating Areas has received Rs500 million. While these allocations focus on expanding healthcare access and improving critical care, the sharp decline in the development budget has raised concerns.
Published by Asad Nizami at Qandeel Printing Press, 4 Queens Road, Lahore, for PT Print (Pvt) Limited. Ph: 042-36300938, 042-36375965. Email: newsroom@pakistantoday.com.pk