In partnership with
Profit
PM DIRECTS EFFECTIVE STRATEGY TO ACHIEVE $60B EXPORTS TARGET Friday, 21 February, 2025 | 22 Shaban ul Moazzam, 1446
g
PM Shehbaz stresses tariffs should be brought down and system should be made easy and simple
P
g
evant departments attended the briefing. PM REVIEWS REFORMS IN HEALTH, PHARMACEUTICAL SECTORS
Says economic progress based on exports is an important element of ‘Uraan Pakistan vision’ ISLAMABAD
Staff RepoRt
RIME Minister Shehbaz Sharif on Thursday directed formulation of a comprehensive and effective strategy to take the exports to $ 60 billion in the next five years. Chairing a meeting to review measures for increasing exports of the country on Thursday, PM Shehbaz instructed his economic team to introduce sustainable reforms for the system of tariff to achieve economic progress and enhance exports. He said the tariffs should be brought down and the system should be made easy and simple. The prime minister said a strategy should be adopted to increase the production capacity of the industries by bringing reforms in the tariff structure. He stressed that special attention should be paid to the sectors of services, information technology and agriculture. He said economic progress based on exports was an important element of “Uraan Pakistan” vision, adding necessary reforms should be introduced in the governance of Export Development Fund for development of export industries. During the meeting, the prime minis-
ter was briefed about the steps taken to reform the Ministry of Commerce and increase the export target to $ 60 billion in the next five year. It was informed that the tariff was gradually decreased in the last two years. The Ministry of Commerce was hosting international level exhibitions every year in Pakistan to expand exports. The meeting was told that consultation was continuing with all stakeholders on the Strategic Trade Policy Framework 2025-30. The consultation on the Ecommerce policy was in the final stage of comple-
Rs 20.00 | Vol XV No 227 | 8 Pages | Karachi Edition
tion and would be presented for the approval of the cabinet next month. A National Compliance Center was ready to harmonize Pakistani products with the international standard. The center would create programmes for increasing capacity of the export industries in Pakistan and hold trainings. Minister for Commerce Jam Kamal Khan, Minister for Economic Affairs Ahad Khan Cheema, Minister for Finance Muhammad Aurangzeb, Chairman Federal Board of Revenue Arshad Mehmood Langrial and high level officers of the rel-
Prime Minister Muhammad Shehbaz Sharif Thursday chaired a meeting to review reforms in the health and pharmaceutical sectors. He directed that a drug testing laboratory of good standard should be established in Islamabad to ensure quality of medicines according to international level. He instructed that mobile hospitals should be launched to provide health facilities in the outskirts of Islamabad, Gilgit Baltistan, Kashmir and Balochistan. He ordered an operation in collaboration and consultation with the provincial governments against counterfeit drugs. Fraudsters could not be allowed to play with the lives of the people, he asserted. He said a comprehensive plan should be made for better regulation and development of the pharmaceutical sector in cooperation with the provincial governments. He said the officers of Drug Regulatory Authority of Pakistan (DRAP) involved in the facilitation of fraud in the pharmaceutical sector should be identified and action against them should be ensured. He said experienced experts of good reputation should be appointed on merit in the policy board of DRAP, adding steps should be taken on priority basis for making the Drug Pricing Committee effective and strong. Federal ministers Nazir Tarar, Ahad Khan Cheema, Prime Minister’s Coordinator for Health Dr Mukhtar Ahmed Bharath and high level officers attended the meeting.
No more free rides, all segments must pay tax for national interest: Finance Minister
g
Retail sector pays a mere 1% in taxes despite 19% share in GDP; disproportionate burden of taxes on manufacturing, services industry, and salaried class is unsustainable, says Muhammad Aurangzeb PROFIT
Staff RepoRt
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said Thursday that the country’s retail sector, which contributes a significant 19% to GDP, is paying a mere 1% in taxes, sparking concerns over the sector’s lack of contribution to the national exchequer. Speaking at a conference on “Retail Reimagined: Innovate, Collaborate & Thrive”, organised by The Pakistan Retail Business Council (PRBC), the finance minister said that the government has been engaging with the retail sector, requesting them to formalise their businesses and pay their due share of taxes. For national interest, “we cannot afford to have people taking a free ride anymore,” adding that documentation was key to achieving tax goals. He said that the disproportionate burden of taxes on the manufacturing, services industry, and salaried class is unsustainable. “We need to bring other segments, including agriculture, real estate, retail, and wholesale, into the tax net.” He lauded the provincial government for taking measures towards this end by passing bills in their respective assemblies for imposing agricultural taxes. He said that there has been Rs9.4 trillion in cash circulation, which needed to be brought into the formal economy, and acknowledged that this could not be done overnight, however, the government was determined to move in the right direction. The economy, the minister added, has taken a significant turn for the better, with macroeconomic stability firmly in place as currency has stabilized, foreign exchange reserves have increased and inflation has receded with the policy rate
‘As a nation we lost standing,’ Aurangzeb briefs lawmakers ISLAMABAD
Staff RepoRt
Finance Minister Muhammad Aurangzeb on Thursday warned that urgent economic reforms are must to restore world’s trust in Pakistan, saying, “We have lost our credibility as a country.” Aurangzeb briefed lawmakers on the country’s climate financing challenges and its negotiations with international lenders during a session of the Senate Climate Change Committee that was chaired by Senator Sherry Rehman. He revealed that the Asian Development Bank (ADB) had committed $500 million, while Pakistan expects to secure $1 billion from the International Monetary Fund (IMF) next week. The government is also working on issuing “Green Panda Bonds” to attract further investment. Aurangzeb also announced a major shift in tax policy, stating that the finance ministry will now oversee tax policy, while the Federal Board of Revenue (FBR) will focus
decreasing significantly leading Kibor to recede from 23% to around 11%. These positive developments have not gone unnoticed, as foreign investors are once again taking notice of Pakistan’s economic potential. Institutional flows are returning to the country, with investments pouring in on both the debt and equity sides. The minister said that Pakistan was actively engaged with international rating agencies, with a clear goal in sight to up-
solely on tax collection. The minister also stressed the need for structural reforms to achieve sustainable and inclusive economic growth. Moreover, during the meeting, Senator Sherry Rehman emphasised that Pakistan must strengthen its financial strategy to gain international support, noting that no assistance will come without a well-defined plan. Meanwhile, speaking at an event organised by the Pakistan Retail Business Council in Islamabad, he said reforms in taxation, energy, state-owned enterprises (SOEs), and public finance were already underway. He expressed confidence that the country was moving in the right economic direction, with macroeconomic stability achieved. On taxation, Aurangzeb highlighted efforts to modernise the system using technology, ensuring transparency and plugging revenue leakages. He acknowledged that the salaried class bears a disproportionate tax burden, stressing that retail, wholesale, real estate, and agriculture must contribute fairly.
grade its credit rating to “Single B” category. He said the country has already made significant strides in this direction, with a notable upgrade in the last calendar year. Building on this momentum, Pakistan is hopeful of securing a further upgrade, which would have far-reaching implications for its economic prospects.Pakistani cuisine recipes A “Single B” rating would not only enhance Pakistan’s credibility in the eyes of international investors but also pave
the way for the country to diversify its funding base and regain access to national capital markets. This, in turn, would help Pakistan to establish itself as a “bankable brand” once again, marking a significant milestone in its economic revival. Ad powered by advergic.com He said the government was focusing on achieving sustainable and inclusive growth instead of being caught in boomand-bust cycles like in the past. The minister said structural reforms in taxation, energy, state-owned enterprises (SOEs), and public finance were under way. A major overhaul of the taxation system is underway, with a focus on end-to-end digitization to promote transparency, reduce leakage, and combat corruption The introduction of faceless customs has already shown promising results, with 80% of imports being cleared within 18-19 hours, down from 118 hours. This streamlined process has eliminated the facilitation money culture, fostering a more efficient and trustworthy tax authority. In the energy sector, efforts are being made to transition towards competitive energy, the finance minister added. He said a cabinet committee, chaired by him, was spearheading reforms in 43 ministries having 400 departments, adding 20 ministries have already been taken to task and the process would be completed by June end. He said the private sector was being positioned to take the lead in driving the country’s growth, with the government providing policy framework and ensuring policy continuity. To achieve fiscal discipline, the government has initiated a right-sizing exercise and implemented pension reforms, with new civil bureaucracy recruits now on a defined contribution system.
Five IHC judges move SC against seniority list
g
Tarar threatens legal action over campaign against COAS’s UK visit ISLAMABAD
Staff RepoRt
Information Minister Attaullah Tarar on Thursday threatened legal action against those protesting and running social media campaigns against Chief of Army Staff’s (COAS) visit to UK, saying the COAS enhanced Pakistan’s international standing. “The army chief received a warm welcome in the UK, which enhanced Pakistan’s international standing”, the information minister stated while speaking to a private TV channel. “The world acknowledges the professional capabilities of Pakistan’s armed forces,” he stated. He accused the Pakistan Tehreek-e-Insaf (PTI) of being unable to accept the respect given to the army chief abroad. “A handful of miscreants launched a social media campaign and staged protests, but patriotic Pakistanis have rejected their actions,” he added. The minister vowed action against those involved in the campaign. “Anyone who harms Pakistan’s integrity and interests will face legal consequences,” he warned. Tarar claimed that Pakistan’s economy was improving, with a 32% increase in remittances. He criticised PTI, saying, “While overseas Pakistanis contribute positively, a group of instigators leaves no opportunity to harm the country’s reputation.” He accused PTI of inciting violence, stating, “They attacked Jinnah House and desecrated martyrs’ memorials. They have no regard for Pakistan’s security.” The minister further alleged that PTI followed a “foreign agenda,” facilitated militants, and had a history of supporting terrorism. He cited PTI’s actions on May 9, claiming, “There is evidence of what PTI did that day. Their founder even wrote to the IMF, proving their hostility towards Pakistan.” He dismissed PTI’s political relevance, saying, “Their politics is in decline. They have no agenda, which is why they protest IMF deals one day and army chief visits the next. If Pakistan’s success bothers them, they can keep sulking—every attempt to undermine the country will fail.”
Salman Akram Raja hints at launching countrywide movement PESHAWAR
Pakistan Tehreek-e-Insaf Secretary General Salman Akram Raja said on Thursday they would remain undeterred and launch a countrywide movement for restoration of supremacy of law. Speaking to media, he reiterated that the PTI was fighting for restoration of democracy in the country. He said he had come to Peshawar to meet notables and the PTI would continue activities in Ramazan. “We will continue to voice concern against wrongs and ensure supremacy of constitution. We will unify people for rule of law,” he averred. The PTI leader said he would meet Shahid Khaqan Abbasi and also visit Karachi to engage with parties of Sindh. He said the countrywide movement would be launched in Ramazan or maybe after the holy month. “We have to move forward and step up efforts for release of the PTI founder and all incarcerated people,” he said. Raja said it’s a wise decision to strip Ali Amin Gandapur of party responsibilities. Provincial president Junaid Akbar was performing well, he said, adding that the party had been energized.
49 pages petition filed under Article 184(3) through senior legal counsel Munir A. Malik and Barrister Salahuddin ISLAMABAD
Staff RepoRt
The legal battle over the seniority of judges of the Islamabad High Court (IHC) took another turn on Thursday as five judges moved Supreme Court (SC) to restrain Justice Sardar Mohammad Sarfraz Dogar from working as the acting IHC chief justice. The issue of judges’ seniority cropped up in the IHC after the transfer of new judges to the high court that led to a shakeup of the seniority list. On Feb 1, the Ministry of Law and Justice issued a notification on transfer of three sitting
judges — Justice Dogar, Justice Khadim Hussain Soomro and Justice Muhammad Asif — from their respective high courts to the IHC. Justice Dogar was transferred from the Lahore High Court (LHC), Justice Soomro from the Sindh High Court (SHC) and Justice Asif from the Balochistan High Court (BHC). Spanning 49 pages, the petition has been submitted under Article 184(3) through senior legal counsel Munir A. Malik and Barrister Salahuddin. five IHC judges — Justice Mohsin Akhtar Kayani, Justice Tariq Mehmood Jahangiri, Justice Babar
Sattar, Justice Sardar Ejaz Ishaq Khan and Justice Saman Rafat Imtiaz — had filed a representation, contending that under the Constitution, a high court judge must take a new oath upon transfer to a different high court, which should affect their seniority ranking. The five judges also did not attend Justice Dogar’s oath-taking ceremony as the acting IHC chief justice. The five judges mentioned the president, Federation of Pakistan through the law secretary, secretary of the Judicial Commission of Pakistan (JCP), the registrars of the SC and four high courts, Justice Dogar,
Justice Soomro and Justice Asif as respondents in the petition. Article 184(3) of the Constitution sets out the SC’s original jurisdiction and enables it to assume jurisdiction in matters involving a question of “public importance” with reference to the “enforcement of any of the fundamental rights” of Pakistan’s citizens. The petition pleaded the apex court to restrain Justice Dogar from performing functions as the acting IHC chief justice and to also restrain the other transferred judges from performing any of their judicial and administrative functions as
Staff RepoRt
IHC judges. The judges also urged the apex court to declare that the president did not have the “unfettered and unbridled discretion” to transfer judges from one high court to another under Article 200(1) of the Constitution without a manifest public interest, and in a manner that “hampers the principles of independence of judiciary and separation of powers”. They further urged the SC to declare that the president’s exercise of powers under Article 200(1) was to be read alongside Article 175A, without subsuming the powers of the JCP to appoint judges
to a particular high court. The judges additionally requested the SC to declare that the transfer notification for the news judges was “unconstitutional and illegal for not being able to disclose any public interest and is therefore liable to be set aside”. The petition also said that the transferred judges could not be considered IHC justices until they took oaths pursuant to Article 194 read together with the Third Schedule of the Constitution. In other prayers, the petition requested the SC to declare that the seniority of the transferred judges would be determined from the date they take oath as IHC justices and would consequently be lower in the seniority list to the petitioners, along with orders to the IHC registrar to issue a new seniority list in line with the SC’s declarations.