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Profit PAKISTAN ACHIEVES IMF’S DECEMBER TAX TARGET DESPITE HURDLES: PM SHEHBAZ Thursday, 2 January, 2025 I 1 Rajabul Murajjab 1446
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Rs 20.00 | Vol XV No 177 I 8 Pages I Islamabad Edition
PREMIER HIGHLIGHTS FISCAL MILESTONES, SMUGGLING CONTROL, AND NATIONAL SECURITY CHALLENGES
Government implements major pension reforms to combat pension bill
PROFIT
PROFIT
Staff RepoRt
RIME Minister Shehbaz Sharif on Wednesday lauded Pakistan’s ability to achieve economic stability and meet fiscal targets despite facing persistent political unrest and destabilisation attempts. Addressing a federal cabinet meeting, the premier highlighted significant milestones in resource mobilisation, trade efficiency, and countersmuggling efforts. “Protests tried to derail the economy, but we succeeded in improving the financial landscape,” PM Shehbaz said. The premier noted that the Federal Board of Revenue (FBR) achieved 97% of its December tax collection target, fulfilling commitments to the International Monetary Fund (IMF). He commended the FBR’s leadership for mobilising resources and credited Rs72 billion in collections to Alternate Dispute Resolution (ADR) measures. “Despite a substantial gap between targets and collections, the FBR deserves appreciation for its efforts,” he remarked. PM Shehbaz also praised advancements in trade facilitation, particularly the digitisation of Karachi Port operations. Funded by a $6 million grant from the Bill Gates Foundation, the initiative reduced container processing time by 39%, expediting trade and enhancing transparency. “This modernisation is a crucial step in
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making our trade more efficient and transparent,” the premier noted. Discussing the government’s anti-smuggling measures, the PM credited federal institutions and the military for curbing the illicit movement of sugar and petroleum across borders. This success, he said, allowed Pakistan to export surplus sugar, showcasing effective coordinated governance. Highlighting the robust remittance inflows, PM Shehbaz revealed that Pakistan received $15 billion in the first five months of the fiscal year. He expressed optimism that remittances could exceed $35 billion by year-end, setting a national record. Amid economic achievements, the premier expressed grave concerns over the
resurgence of terrorism, attributing it to the Afghan government’s release of militants who infiltrated Pakistan. “Our security forces are making daily sacrifices to combat this threat,” he said, calling for national vigilance and resilience in addressing security challenges. Reflecting on his government’s tenure, PM Shehbaz underscored its commitment to clean governance, stating, “Nine months of governance have passed, and there has not been a single scandal. The public stands witness to our transparency and integrity.” He urged all stakeholders to unite for the nation’s prosperity in the new year, emphasising the need for collaboration to sustain Pakistan’s progress amid ongoing challenges.
The federal government has introduced significant reforms to the pension system for public servants at the start of the new year, aiming to streamline processes, enhance transparency, and reduce the financial burden on the national exchequer. The changes, implemented through an Office Memorandum (OM) issued by the finance division on January 1, 2025, are based on the recommendations of the Pay and Pension Commission 2022. These reforms include significant modifications to pension calculation, restrictions on double pensions, and a revised methodology for annual increases. Sources in the finance division believe these measures will save billions of rupees annually and contribute to longterm economic stability. THE CHANGES: According to the OM, pensions will now be calculated based on the average of pensionable emoluments drawn during the last 24 months of service prior to retirement. This replaces the previous calculation methods, which were less standardized and prone to discrepancies. Furthermore, senior officials entitled to multiple pensions must now choose one pension to draw. The memorandum specifies: “Federal government employees who are currently in service and become entitled to a pension will not be eligible to
Co-accused granted bail against surety bond of Rs100 in Rs3b tax fraud case g
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IHC JUSTICE BABAR SATTAR TERMS PROBE INTO A SALES TAX FRAUD CASE AN EXCESS OF AUTHORITY, DIRECTING A COPY OF COURT’S ORDER BE SENT TO FBR CHIEF ISLAMABAD
Staff RepoRt
The Islamabad High Court (IHC) on Wednesday probe into a sales tax fraud case as an excess of authority and granted bail to the a co-accused against the surety bond of meagre Rs100. IHC Justice Babar Sattar granted bail to co-accused Shahid Hussain Khawaja in the Rs3.20 billion sales tax
fraud case, declared the tax department’s probe as an excess of authority. Justice Sattar also directed for sending a copy of the court’s order to the Federal Bureau of Revenue’s (FBR) Chairman. According to the verdict, the manager of a bank was arrested for helping in opening account at power company branch. It said that the state did not provide any material regarding
the petitioner’s involvement in the tax fraud crime. The court observed that the tax department did not determine the tax due on the taxpayer as per the law. Moreover, the verdict said that the tax department arrested the petitioner in violation of the Lahore High Court’s verdict. The tax department initiated criminal proceedings despite being aware of the LHC’s verdict, said the IHC, adding
that the FBR chairman should distribute the copies of the LHC and IHC’s judgments to the tax officers. The court said in case of violation, the tax collection authority and the tax officers will face action for misuse of powers. The IHC further remarked that the legal and police powers delegated to public officials should be exercised in accordance with the law.
Kurram Grand Jirga finally strikes peace deal as warring tribes sign agreement: KP govt g
draw that pension while still employed.” However, in-service employees or pensioners whose spouses are also entitled to a pension may receive their spouse’s pension in addition to their own. The new policy introduces a “baseline pension” concept, defined as the net pension calculated at the time of retirement, excluding the commuted portion. The OM outlines the following methodology for future increases: Annual pension increases will apply to the baseline pension. Each increase will be maintained as a separate amount until the federal government authorises any additional pensionary benefits. The Pay and Pension Commission will review baseline pensions every three years to ensure adjustments align with economic conditions. For existing pensioners, the current pension as of January 1, 2025, will serve as the baseline, including any restored commuted portion. The OM further restricts high-ranking officials from receiving double pensions, a move aimed at addressing long standing inefficiencies in the pension system. Limiting double pensions is expected to save the national exchequer billions of rupees annually. The Effects: The reforms aim to bring greater consistency and transparency to the pension system. By standardizing calculations and introducing regular reviews, the government seeks to ensure pensions remain fair and sustainable.
KP SPOKESPERSON SAYS BOTH SIDES AGREED TO SURRENDER THEIR WEAPONS AND DEMOLISH BUNKERS PESHAWAR
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WARRING PARTIES ALONG WITH GRAND JIRGA MEMBERS GIVE ASSENT TO 14-POINT SEVEN PAGED PEACE AGREEMENT
Staff RepoRt
Following long deliberation and weeks of discussions, the warring tribes in Kurram signed the peace agreement, paving the way for a durable peace and reopening of roads in the region, the Khyber Pakhtunkhwa government announced on Wednesday. KP government spokesperson Barrister Muhammad Ali Saif announced the development in a statement issued here, saying that both sides agreed to surrender their weapons and demolish their bunkers. “One of the warring parties had signed the agreement a few days ago while the other party signed it today”, Barrister Saif revealed, expressing the hope the peace agreement would usher the district in a “new era of peace and development.” He said that calm and security would soon be restored in the restive district and convoys would leave for Parachinar on Saturday. For weeks, the Grand Jirga was working towards a peace accord that would lead to the reopening of roads in restive Kurram. The efforts hit a snag on Tuesday, as two representatives from Lower Kurram were not available, delaying the solemnisation of an agreement between the warring sides. Clashes stemming from decades-old land disputes have claimed at least 130 lives since last month, with food and medicine shortages reported due to weeks-long road blockades. Residents in Upper Kurram’s Parachinar have also been staging a sit-in since December 20, which a Dawn.com correspondent confirmed was continuing today, against the
law and order situation there as well as road closures. Malik Syed Asghar, a jirga member, told the media that both sides signed the peace document after reservations of both sides were addressed. KP Chief Minister Ali Amin Gandapur praised the development, saying the provincial government’s efforts for a peaceful resolution of the issue had borne fruit. “The signing of the agreement between the parties is a significant step towards a sustainable resolution of the Kurram issue. “I welcome this significant step and congratulate all the partners. I hope this agreement will provide a strong foundation for a sustainable resolution of the Kurram issue,” he said in a statement, adding that the development was a “matter of joy” and would lead to the opening of land routes to the affected district. “This agreement is a clear message
to the elements spreading hatred between the parties that the people of the region are peace-loving. I appeal to the parties to reject the elements spreading hatred and create unity in their ranks. “It is our effort and desire that the problems faced by the people of Kurram are resolved soon and normal life is restored there.” The chief minister said that fighting and violence were not the solution to any problem, adding that issues and disputes should always resolved through negotiations. “Violence always gives rise to violence which is not in the interest of the parties, the region or the government.” PEACE AGREEMENT Both the warring parties assented to the 14-point seven-page peace agreement along with the Grand Jirga members. The document stated that keeping in view the post-merger realities, members of the Kurram Peace Committee
and both sides would be bound to uphold the Muree Agreement 2008 and all other agreements for the benefit of locals and establishment of peace. The agreement urged the authorities to take strict action against those trespassing on roads while village and peace committee would also cooperate with government and law enforcement agencies. “In case of any untoward incident on main road, the area people would be bound to prove their innocence in line with the Kurram district traditions,” it said, adding those harbouring and feeding miscreants would be considered guilty under the law and traditions. The decisions of the KP Apex Committee would be followed to ensure the security of the road. Regarding the repatriation of displaced persons under the Murree Agreement, the jirga agreed that they would be rehabilitated in their native areas and no hurdles would be created in this process. To this effect, a sub-committee would be formed under the chairmanship of the Kurram deputy commissioner, assisted by the district police officer and two members each from Upper and Lower Kurram sides. This committee would be responsible for addressing the hurdles and reservations regarding the repatriation of displaced persons. In addition to this, the long standing land disputes in Gedu, Pewar Alizai, Balishkhel, Dandar, Ghoz Ghari, Nisti Kot, Kunj Alizai, Shorko, Sadda and Bagan Alizai would be resolved in the light of revenue record, local traditions and the land commission terms of reference.
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ECP opposes EVMs as Senate panel deliberates on voting rights for Overseas Pakistanis STAFF REPORT ISLaMaBaD
A meeting of the Senate Standing Committee on Parliamentary Affairs, presided over by Senator Dr Mohammad Humayun Mohmand, was convened Wednesday in Islamabad. The Committee deliberated extensively on the mechanism for granting overseas Pakistanis the right to vote in future elections, as committed in a previous meeting. The Chairman emphasized the importance of extending voting rights to overseas Pakistanis, including dual citizens, noting that many countries allow postal balloting. He questioned why Pakistan could not adopt a similar approach, highlighting that the existing legal framework neither grants voting rights to dual citizens nor provides a system to facilitate such voting. A representative from the Election Commission of Pakistan briefed the Committee on the matter, stating that a third-party audit previously recommended against internet voting due to significant security concerns, including risks of hacking. The audit concluded that online voting was unsafe for general elections. Senator Dr. Mohammad Humayun Mohmand reiterated that all Pakistanis residing abroad or holding dual citizenship should be entitled to vote. He pointed out that postal balloting, supported by various countries, could be a viable solution for Pakistan. The representatives from the Election Commission responded by noting that while postal balloting lacks direct supervision, which could lead to malpractice, it remains a cost-effective and practical option. The Chairman Committee urged the Committee members to learn from international experiences, citing Brazil’s progress in electoral systems from the 1990s to 2000. PTI’s Senator Shibli Faraz said that the reluctance to implement systems such as postal balloting or electronic voting machines (EVMs) might stem from a lack of commitment to ensuring free and fair elections. The Chairman raised the question of whether the Committee agreed to validate postal balloting for overseas Pakistanis and explore the feasibility of EVMs. JUI-F’s Senator Kamran Murtaza, however, expressed reservations, stating that such measures might not align with the Constitution. In response, the Chairman asked the members are they willing to change the laws and Constitution to move on for EVM as other countries have done and support this process which according to the Election Commission and their pilot project a better option, the Committee members didn’t show interest to initiate the changes in the Constitution and law. The Chairman adjourned the meeting stating that if the committee members not interested to change the existing system for the better system that can give free, fair, and transparent election for the future of Pakistan that there is no point to continuing the meeting. The meeting was attended by Senators Khalil Tahir, Sarmad Ali, Kamran Murtaza, Khalida Ateeb, Pervaiz Rasheed, Shibli Faraz, as well as senior officials from the Ministry of Parliamentary Affairs and the Election Commission of Pakistan.