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PAKISTAN, TURKIYE VOW TO STRENGTHEN PARTNERSHIP FOR REGIONAL PEACE, DEVELOPMENT Wednesday, 23 April, 2025 | 24 Shawwal, 1446
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PM SHEHBAZ, PRESIDENT ERDOGAN UNDERSCORE ENDURING FRATERNAL TIES BETWEEN PAKISTAN AND TURKIYE ANKARA
staff report
AKISTAN and Turkiye on Tuesday expressing satisfaction on the positive trajectory of multifaceted bilateral relations, reiterated their commitment to further strengthen bilateral strategic partnership, fostering peace, stability, development, and prosperity in the region. The bilateral ties and cooperation were discussed during the bilateral meeting between Prime Minister Muhammad Shehbaz Sharif and Turkish President Recep Tayyip Erdogan here during the former’s two-day visit to Turkiye. The meeting underscored the enduring fraternal ties between Pakistan and Turkiye and reaffirmed their commitment to further deepening bilateral cooperation across various sectors. Prime Minister Shehbaz emphasized the importance of enhancing economic collaboration, especially through joint ventures and bilateral investments. He highlighted the potential for cooperation in energy and mining, joint ventures in defence and agri production, enhancing regional and bilateral connectivity to boost trade and enhance people-to-people exchanges, besides deepening cooperation in emerging technologies such as artificial intelligence and cyber security. During the discussions, both leaders took note of the follow-up actions taken regarding the decisions of the 7th High-Level Strategic Cooperation Council (HLSCC) held in Islamabad on February 13, 2025. Both leaders showed satisfaction on the trajectory of the multifaceted bilateral col-
BOTH LEADERS EXPRESS SATISFACTION ON TRAJECTORY OF MULTIFACETED BILATERAL COLLABORATION
laboration between the brotherly countries. Prime Minister Shehbaz and President Erdogan also discussed regional and global matters and reaffirmed their support of each other on issues of national interest. Two leaders also expressed deep concern over the humanitarian situation in Gaza, calling for an immediate ceasefire and the provision of humanitarian assistance to the affected population. President Erdogan appreciated Pakistan’s consistent support for the Palestinian cause and its humanitarian assistance for Palestine.
Both leaders expressed their commitment to further strengthen the strategic partnership between Pakistan and Turkiye, fostering peace, stability, development, and prosperity in the region. Pakistan delegation included Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, Minister of Information and Broadcasting Attaullah Tarar, SAPM Tariq Fatemi and Pakistan’s Ambassador to Turkiye Dr Yusuf Junaid. President Erdogan also hosted a banquet in honor of Prime Minister Shehbaz Sharif and the accompanying delegation.
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nology company, in Islamabad, Prime Minister Sharif emphasized Pakistan’s interest in expanding its collaboration with China in areas like space technology, satellite communications, and satellite-based internet services. He reaffirmed that Pakistan views China as its “most reliable and strategic partner” and is prioritizing the growth of its space technology sector. Galaxy Space Chairman Xu Ming, who led the delegation, expressed the company’s enthusiasm about investing in Pakistan’s space technology industry. The delegation also discussed the possibility of pursuing joint ventures with Pakistani space institutions and private telecom companies. Earlier in February, Prime Minister Sharif had announced that Pakistan, in col-
Pakistan and China to boost space cooperation with focus on satellite tech and manned missions staff repert
Prime Minister Shehbaz Sharif expressed Pakistan’s intent to strengthen its cooperation with China in the field of space technology, according to a statement released by the Prime Minister’s Office (PMO) on Tuesday. China’s space program has rapidly advanced in recent years, achieving significant milestones such as the Tiangong space station, lunar sample-return missions, and the BeiDou satellite system. The country’s development of reusable rockets further highlights its growing technological capabilities. During a meeting with a delegation from Galaxy Space, a Chinese space tech-
IMF cuts Pakistan’s growth forecast to 2.6% amid rising US tariffs PROFIT
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Rs 20.00 | Vol XV No 286 | 8 Pages | Islamabad Edition
The International Monetary Fund (IMF) has downgraded Pakistan’s growth forecast to 2.6%, primarily due to the impact of rising US tariffs. This adjustment follows the introduction of tariffs on nearly all trading partners by the US, which includes a 29% tariff on Pakistani exports. While this could create immediate challenges, economists suggest it may offer some long-term opportunities. Earlier in January, the IMF had revised Pakistan’s growth estimate to 3% for the fiscal year, down from an initial projection of 3.2%. The latest forecast now stands at 2.6% for the current fiscal year and 3.6% for the next. Inflation is expected to reach 5.1% for the current fiscal year, rising to 7.7% in the following year. The Pakistan Institute of Development Economics (PIDE), a state-owned think tank, warned that these increased tariffs could severely disrupt Pakistan’s export sector, potentially leading to macroeconomic instability, significant job losses, and a sharp reduction in foreign exchange earnings. On a global scale, the IMF has also downgraded its growth forecast, reducing it by 0.5 percentage points to 2.8% for 2025. The IMF cautioned that rising trade tensions would continue to impact global economic activity, including in Pakistan, where the ongoing tariff issues are a critical concern. IMF chief economist Pierre-Olivier Gourinchas highlighted that escalating trade disputes could fuel further uncertainty, volatility in financial markets, and tighter financial conditions globally. For Pakistan, the rise in trade tariffs underscores the need for economic diversification. The IMF’s report emphasizes that significant structural reforms are necessary to address these challenges and reduce dependence on vulnerable sectors like exports.
laboration with China, would send its first manned space mission to China’s space station (CSS). Under this initiative, two Pakistani astronauts will receive training at China’s Astronaut Centre. One of them will be trained as a scientific payload specialist and will conduct specialized research aboard the CSS. The astronaut selection process will be completed by 2026, in preparation for a future mission. The mission will involve conducting groundbreaking scientific experiments in various fields, including biological and medical sciences, aerospace, applied physics, fluid mechanics, space radiation, ecology, and material science. In addition, the government introduced the ‘National Space Activities Rules 2024’ in April, regulating space activities con-
Aurangzeb holds crucial talks with global leaders, IMF, World Bank officials on economic reforms, climate resilience PROFIT
staff report
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb holding a meeting with Ms. Hela Cheikhrouhou, Regional Vice President, IFC for Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan, and her team on the sidelines of the WB/IMF Spring Meetings 2025, Washington D.C. on April 21, 2025. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held crucial discussions with global leaders, including top officials from the International Monetary Fund (IMF) and the World Bank Group, during his visit to Washington. The meetings focused on key issues such as economic reforms, climate resilience, and development projects in Pakistan. The meetings were held on the sidelines of the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group, said a press release issued by the finance ministry here on Tuesday. During his meeting with IMF Managing Director, Ms. Kristalina Georgieva, Minister Aurangzeb thanked the IMF team for reaching a Staff-Level Agreement on the First Review under the Extended Fund Facility (EFF) and a new arrangement under the Resilience and Sustainability Facility (RSF). The finance minister reiterated Pakistan’s commitment to maintaining the reform momentum and extended an invitation from the Prime Minister of Pakistan for Ms. Georgieva to visit the country. Meanwhile, during a meeting with the President of the World Bank Group, Ajay Banga, the Pakistani finance minister expressed gratitude to the World Bank for its historical support to Pakistan and com-
mended its leadership in developing a transformative CPF—a decade-long strategic roadmap centered around measurable impacts and outcomes. He appreciated the World Bank’s ongoing assistance in crafting a comprehensive implementation strategy and action plan to operationalize the CPF while simultaneously enhancing overall efficiency. The minister also provided a detailed overview of Pakistan’s macroeconomic turnaround and reaffirmed the government’s unwavering commitment to ensuring sustainable economic stability. Earlier, the minister met with the Deloitte delegation and apprised them of Pakistan’s macroeconomic outlook, the government’s sectoral development agenda, and its export-led growth priorities. Both sides explored potential collaboration in energy sector reforms, critical minerals extraction and marketing, privatization, technology, crypto policy, and the operationalization of the Country Partnership Framework (CPF). Aurangzeb also welcomed Deloitte’s planned visit to Pakistan in May 2025 to further deepen engagement. He also met with Ms. Hela Cheikhrouhou, Regional Vice President of the International Finance Corporation (IFC), and discussed private sector reforms, energy transition, sound municipal finance, and full employment initiatives. He reviewed progress on Diversified Payment Rights (DPR) and commended the IFC’s pivotal role in securing $2.5 billion in debt financing for the Reko Diq Copper and Gold Mine Project. The minister emphasised the importance of ensuring that local communities benefit from the project’s economic gains.
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ducted both within Pakistan and by Pakistani entities abroad. These rules empower the National Space Agency (NSA) to enter agreements with foreign satellite operators for acquiring, distributing, and selling satellite data in Pakistan. Currently, about six operators, including companies like Starlink, Amazon, OneWeb, and a Chinese operator, provide satellite-based internet services globally. According to sources within the NSA, the Chinese company is also exploring opportunities to enter Pakistan’s internet market. Low-earth orbit satellites, which enable satellite-based internet services, offer continuous coverage even in remote areas where traditional infrastructure like radio towers or fiber optic networks may not reach.
Balochistan High Court rules agricultural income tax falls under provincial jurisdiction PROFIT
staff report
The Balochistan High Court has ruled that the taxation of agricultural income is within the domain of provincial governments, dismissing the Federal Board of Revenue’s (FBR) attempt to tax such income. The court’s decision also clarified that consequences of delayed payments should be governed by provincial laws, affirming the legal framework established by the 18th Amendment. According to media reports, the ruling came in a case involving taxpayer Khalid Hussain, who had disputed a tax demand imposed by the FBR. The case focused on whether the FBR had the right to tax agricultural income, which, under the 18th Amendment, falls under provincial jurisdiction. The FBR had issued an assessment order, creating a tax demand of Rs. 10,154,812, arguing that the agricultural income was taxable and the exemption under Section 41 of the Income Tax Ordinance, 2001, was not applicable. Representing Hussain, Advocate Riffat Naeem Jan argued that agricultural income should not be taxed by the FBR, citing the 18th Amendment, which devolved authority over agricultural taxation to the provinces. The Commissioner Inland Revenue contended that the tax demand was valid under Section 122(9), and the FBR had the authority to impose such taxes despite the exemptions provided under Section 41. The case had been originally reviewed by the Appellate Tribunal Inland Revenue (ATIR), which sided with Hussain, ruling that agricultural income could not be taxed by the FBR. The Commissioner then sought judicial review by the Balochistan High Court. In its ruling, the Balochistan High Court upheld the decision made by the ATIR, dismissing the appeal by the Commissioner.
Khunjerab border opens year-round for first time – a landmark in Pak-China regional cooperation
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AN ALL-WEATHER ROUTE TO BOOST TRADE, STRENGTHEN CPEC, AND ENHANCE BILATERAL TIES ISLAMABAD
Ghulam abbas
In a historic first, Pakistan and China have jointly decided to keep the Khunjerab border open throughout the year, thus transforming it into an all-weather trade and travel route. This unprecedented move is being hailed as a major step forward in regional connectivity and economic cooperation under the framework of the China-Pakistan Economic Corridor (CPEC). The announcement was made during a high-level virtual inauguration ceremony, that marked the formal launch of the yearround border opening. The event was attended by Chief Minister of Gilgit-Baltistan Haji Gulbar Khan and senior officials from Kashgar, Xinjiang. The initiative aims to revitalize cross-border commerce, tourism, and diplomatic ties between the two strate-
gic regions. This marks the first time in the history of bilateral cooperation that the Khunjerab Pass — previously closed during harsh winter months due to extreme weather and heavy snowfall — will now remain operational throughout the year. During the ceremony, leaders from both sides reaffirmed their commitment to deepening trade, strengthening diplomatic engagement, and furthering shared development goals. Chinese officials presented a detailed documentary highlighting upgraded customs clearance systems, followed by technical briefings on cross-border trade operations by customs officials from both sides. Opening remarks featured introductions of participating delegations, with both sides appreciating the growing partnership and expressing optimism for continued progress in mutual cooperation. Speaking on the occasion, Chief Minister Haji Gulbar Khan
said: “Today is a historic milestone not only for Gilgit-Baltistan but for the entire nation. By keeping the Khunjerab border open yearround, we are breaking the seasonal barriers that have long constrained trade and connectivity. This decision will bring new energy
to our regional economy and ensure that our traders can operate seamlessly, regardless of the season.” He called the step a practical realization of the CPEC vision, emphasizing the region’s unwavering commitment to this vital bilateral partnership. “This initiative
will open a new chapter of mutual growth and connectivity between Pakistan and China under CPEC,” he added. Governor of Xinjiang, in his remarks, described the decision as a turning point in the Pak-China relationship: “The allweather opening of Khunjerab border is not just a logistical improvement—it is a symbol of development, prosperity, and enduring friendship. The people of both regions will directly benefit from this enhanced connectivity.” He affirmed China’s continued collaboration with the leadership of GilgitBaltistan to promote peace, development, and shared prosperity across the region. The round-the-year operation of the Khunjerab border is being seen as a strategic enhancement of CPEC’s transport corridor, with the potential to significantly boost trade volumes, facilitate cultural exchange, and strengthen economic integration. Officials on both sides hailed the move as a transformative step that turns long-standing vision into actionable progress.