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Friday, 19 July, 2024 I | 12 Muharram, 1446
Rs 20.00 | Vol XV No 19 I 8 Pages I Islamabad Edition
PM DIRECTS INCREASING APPELLATE TRIBUNALS TO 100 TO ACCELERATE TAX CASE HANDLING
g DIRECTES DIGITIZATION OF FRAUD DETECTION, SAYS TAX REFUND FRAUD AMOUNTING TO RS800B WAS INVESTIGATION DEPT AND STRATEGY TO UNCOVERED IN PAST FOUR MONTHS CENTRALIZE ALL REFORM PROJECTS
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PROFIT
STAFF REPORT
RIME Minister Muhammad Shehbaz Sharif on Thursday instructed that the number of Appellate Tribunals be increased to 100 to expedite the resolution of tax cases. Chairing a review meeting on reforms and digitization in the Federal Board of Revenue (FBR), the prime minister also directed an increase in the number of Appellate Tribunals for Customs cases and the creation of a dashboard to evaluate the performance of Tax Appellate Tribunals. The prime minister stated that tax refund fraud amounting to Rs 800 billion was uncovered in the past four months, and emphasized further improvements to the tax refund system. The prime minister expressed that increasing revenue was achievable through reforms in the FBR. He lamented the unfortunate and unnecessary delays in many of the FBR's reform projects. The prime minister emphasized zero tolerance for delays in sales tax refund payments and instructed the immediate formulation of a strategy to recover unlawfully issued refunds. The prime minister directed the complete digitization of the Fraud Detection and Investigation Department of the FBR and the development of a strategy to centralize all ongoing reform projects within the FBR. The prime minister instructed the relevant authorities to employ the latest
technology and the best personnel for the digitization of the FBR. Shehbaz Sharif instructed the implementation of a unified sales tax system for all taxpayers by October 2024. The prime minister was briefed that a unified sales tax return system, successfully implemented by the telecom sector, was being introduced for taxpayer convenience. FBR aimed to integrate with revenue authorities across the country through a unified sales tax platform. The prime minister assured timely funding for upgrading the customs system and directed the FBR to devise a strategy for designing and implementing the new software system. The prime minister was informed about the reforms in Inland Revenue and Customs, along with the progress achieved in digitizing the FBR in the last eight weeks. The prime minister was informed that McKinsey, a globally recognized consultant, was overseeing the digitization process of the FBR, and
positive outcomes from this initiative have begun to surface. The PM was informed that there were 83,579 tax-related cases amounting to Rs 3.2 trillion pending in various courts and tribunals. It was conveyed in the forum that during the current government’s tenure,several initiatives have been undertaken to handle tax cases. In the past four months alone, courts have settled 63 cases amounting to approximately Rs 44 billion. The prime minister was briefed that modern technology has identified 4.9 million individuals capable of paying taxes. Prime Minister Shehbaz Sharif instructed to prioritize bringing wealthy individuals and capitalists into the tax net, ensuring no additional burden on the poor. During the briefing, the PM was informed that since April 1, 2024, 150,000 retailers have been registered using the FBR Trader Friendly mobile phone application. The PM instructed to maintain con-
Govt insists, PTI rejects appointment of ad-hoc judges ISLAMABAD
Pakistan to ‘abolish’ five ministries including IT by July 30 ISLAMABAD
STAFF REPORT
sultations with retailers to enhance the effectiveness of this system. The prime minister also instructed to prepare proposals for reforming the Pakistan Revenue Automation Authority (PRAL). The PM was informed that the implementation of the Integrated Transit Trade Management System (ITTMS) project was scheduled to commence from October 2024. Under the ITTMS initiative, International Standard OneWindow Facilitation Centers were being set up at the Pak-Afghan borders of Torkham and Chaman. The development of the Customs Automated Entry-Exit System (AEES) has commenced. AEES will utilize cutting-edge scanning technology and integrate with the web-based One Customs and Pakistan Single Window platforms. The forum was informed that initially, AES will be rolled out at four ports in Karachi and airports in Karachi, Multan, and Peshawar. The Prime Minister directed the implementation of the AES system at Gwadar Port as well. Present in the meeting were Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Law and Justice Azam Nazeer Tarar, Federal Minister for Information and Broadcasting Attaullah Tarar, Minister of State for Finance Ali Parvaiz Malik, Deputy Chairman Planning Commission Jehanzeb, Khan, Prime Minister’s Coordinator Rana Ihsan Afzal, Chairman FBR Malik Amjad Zubair Tiwana, and other senior government officials.
The government of Pakistan to finalize the abolishment of five ministries, including the Ministries of Information Technology (IT), Industry and Production, Health, Kashmir Affairs, and States and Frontier Regions (SAFRON), by July 30. According to sources, the future of the employees of the abolished ministries is being discussed, with various proposals under consideration. The proposed solutions include golden handshake package for employees who are about to retire, absorption into other ministries, and inclusion in the surplus pool, sources added. The Institutional Reforms Cell, in collaboration with the relevant ministries, has prepared the proposals. Sources said that the proposed packages will also be discussed with the International Monetary Fund (IMF). The final decision will be taken after briefing Prime Minister (PM) Shehbaz Sharif on the matter, sources added. Earlier, PM Shehbaz decided to abolish five federal ministries and sought a plan from the relevant ministries. They added that the relevant ministries started working on providing recommendations as directed by PM Shehbaz to abolish the same. The sources added that the decision to abolish the ministries was taken in line with the demands made by Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari who had been advocating for the abolition of certain federal ministries. In his maiden address to nation after assuming PM’s Office, he noted that all such ministries and government departments which, instead of serving had become a burden on the country and its people, would be shut down.
STAFF REPORT
Federal Law Minister Azam Nazeer Tarar on Thursday asserted that the Constitution allows the appointment of ad-hoc judges while PTI reiterated opposition to the appointments, describing it as a move based on dishonesty. In an interview, the law minister said that the appointment of ad hoc judges is determined not by the Chief Justice but by the Judicial Commission of Pakistan. Hence in his opinion, ad hoc judges should be appointed as the Constitution permits it. On the hand, PTI Chairman Barrister Gohar while addressing a press conference in Islamabad, emphasised that the matter has been referred to the Supreme Judicial Council (SJC) to prevent what he termed was an attempt to install ‘like-minded judges’. “Four judges are being installed during holidays, the matter of judges should not be made controversial,” the PTI supremo added. The federal law further stated that constitutional amendments are necessary for reforms in the judicial system and that reports of Chief Justice Qazi Faez Isa’s tenure extension are incorrect. He argued that the debate over extending the service tenure of government employees has arisen due to increased pension costs. There has been an increase in the retirement age of government employees worldwide. Thus, the government has to pay a heavy amount in pensions. Tarar further said that the proposal to extend the service tenure of
all government employees, including judges, was under consideration. “The authority to amend the constitution lies with the Parliament”, the law minister stated. Azam Nazeer Tarar said that the recent decisions of the Supreme Court have provided an opportunity for a certain group to strengthen. Eight judges have declared the constitutionality of specific seats. “MPs who were sent home without hearing are also coming in
review. The issue of imposing Article 6 on PTI leaders can be brought to Parliament”, the minister pointed out. Omar Ayub criticises cases against party’s MNAs Meanwhile, PTI leader Omar Ayub criticised what he called the fabrication of cases against their party’s National Assembly members. He denouncing cases against Imran Khan and other party leader describing them as baseless accusations aimed at tarnishing their reputation.
KARACHI
accepting the offer, citing personal and domestic reasons. Justice Maqbool expressed gratitude for the nomination but ultimately decided against accepting the prestigious role. Meanwhile, reports indicate that Justice (retired) Mazhar Alam Miankhel and Justice (retired) Sardar Tariq Masood have expressed their willingness to take up the ad hoc judge positions, demonstrating their continued commitment to judicial service. The issue surfaced following a letter from Justice (retired) Mushir Alam to Chief Justice of Pakistan Qazi Faez Isa, who also heads the Supreme Judicial Council overseeing these appointments. In his letter, Justice Alam expressed gratitude for the nomination but regretfully declined due to current circumstances.
Following Justice (r) Alam, Justice Baqar too declines ad-hoc judge offer STAFF REPORT
Following Justice (r) Mushir Alam’s refusal to become ad-hoc judge, another seasoned former judge of the Supreme Court (SC) Justice (r) Maqbool Baqar also declined the offer to be appointed an ad-hoc judge in the apex court. The Pakistan Tehreek-e-Insaf (PTI) has voiced strong opposition to the ad-hoc appointments in the SC, describing the move as a ‘poly to fix bench.’ PTI Chairman Barrister Gohar criticized the appointments, alleging they were tainted with dishonesty, and announced plans to challenge them in the Supreme Judicial Council. Reportedly initially supportive of the appointment, Justice (r) Maqbool excused himself from
Country’s population set to double by 2050, PBS report reveals LAHORE
STAFF REPORT
Pakistan’s population growth rate, declared the highest in the world and region, is projected to double by 2050, according to the latest report from the Pakistan Bureau of Statistics (PBS). The report highlights a significant population surge recorded in 2023, following the 2017 census. It underscores that at the current pace, Pakistan’s population could reach a staggering figure by midcentury. Key findings reveal demographic complexities, including a diverse population of Afghanis, Bengalis, Chinese, and other nationalities totaling over 21 million, alongside significant religious diversity. Education remains a critical concern, with over 25 million children aged 5 to 16 out of school nationwide, underscoring challenges in educational access. The report also notes a substantial portion of the population living with disabilities. Despite strides in literacy, the report indicates disparities with a 61% national literacy rate, with notable gaps between male (68%) and female (53%) literacy levels. Provincial breakdowns highlight disparities in educational access, with millions of children out of school in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, emphasizing the need for targeted educational reforms nationwide.
Sanam Javed finally set free as IHC declares her arrest ‘illegal’ ISLAMABAD
STAFF REPORT
After going through the ordeal of arrests and rearrests for 14 months, PTI activist Sanam Javed on Thursday was finally set free by the Islamabad High Court’s (IHC), declaring her arrest “illegal” and allow her to return to Punjab. Justice Miangul Hassan Aurangzeb of the IHC pronounced the verdict after hearing a petition filed by her father. As proceedings commenced on Thursday, Attorney General of Pakistan (AGP) Mansoor Usman Awan told the court, “Sanam Javed will not be arrested in any further case.” Following the proceedings, the IHC declared Javed’s arrest “illegal” and dismissed her bail petition. AGP Awan added that the Balochistan Police was not pressing the remand request. “Sanam Javed is now free and can go to her province [Punjab],” he said. Echoing Monday’s remarks, Justice Aurangzeb sought a guarantee from Javed’s lawyer, Mian Ali Ashfaq, ensuring that she would avoid engaging in any more “unnecessary rhetoric”, to which the latter replied in the affirmative. Speaking to reporters outside the court, Ashfaq recounted his conversation with AGP Awan, who confirmed that the first information report (FIR) registered against Javed in Balochistan will be withdrawn. Javed’s lawyer noted that within two days, the cases registered against his client in Islamabad will also be withdrawn. He reiterated to the media his guarantee that Javed would avoid “unnecessary rhetoric” — for which he apologised to the court on her behalf — and informed reporters that the AGP had stated that there would be no further arrests. On Monday, the IHC ordered her release with a direction to the police and other law enforcement agencies to refrain from arresting her again. The decision provided some respite to Javed, who has been incarcerated for over a year after being booked in a dozen cases since the May 9, 2023 riots. In his judgement, Justice Miangul Hassan Aurangzeb barred her from leaving Islamabad while also advising the PTI activist to “avoid unnecessary rhetoric”, or else the court would reverse its order. On Tuesday, PTI shifted its activist to Khyber Pakhtunkhwa (KP) House along with her family members to avoid what it said was her “disappearance”. On July 11, the Lahore High Court discharged her from a case related to the May 9 riots registered against her in Gujranwala. Javed challenged her physical remand in a new case from Gujranwala after bail was granted to her in all cases registered against her in Lahore. However, she was rearrested by Islamabad police as soon as she stepped out of the central jail Gujranwala on Saturday, and was subsequently shifted to Islamabad.
No relief in sight for Imran ‘despite legal victories’: Fitch analysis ISLAMABAD
STAFF REPORT
Incarcerated PTI leader Imran Khan “will remain imprisoned for the foreseeable future” despite his successful legal appeals in April and June, Business Monitor International (BMI), an arm of the Fitch credit ratings agency, has said in its latest country risk report for Pakistan. The comprehensive report, includes 10-year forecasts extending to 2033. The report covers macroeconomic and political factors to provide insight into emerging trends in the country. Imran’s sentence in the Toshakhana reference was suspended on April 1 while he was acquitted by the Islamabad High Court (IHC) in the cypher case in June. Various courts have also acquitted him in several other cases filed against him since the events of May 9, 2023 — the day when his first arrest had caused riots across the country, following which the state launched a
crackdown against him and his party. An Islamabad district and sessions court had also recently accepted the appeals filed by Imran and his spouse against their conviction in the Iddat case. Shortly after the court acquitted him in the Iddat case, however, the National Accountability Bureau (NAB) re-arrested Imran and his spouse in a new Toshakhana case, leaving his possible release from prison hanging in the balance. “Although opposition leader Imran Khan has recently won several recent legal appeals, we expect that he will remain in prison over the foreseeable future,” the agency said in its country risk report. The report added that analysts were “surprised when judges — who were expected to side with the government — quashed two of the legal cases against Khan”. The agency elaborated that “even in the unlikely event that Pakistan’s usually government-friendly judicial system overturned
all of the over 100 charges against Khan, we expect that the government would bring a new case against him rather than allow the popular opposition leader to go free”. Regarding the International Monetary Fund’s (IMF) programme, the firm said that it expected the Shehbaz Sharif-led coalition government to “remain in power over the coming 18 months and will succeed in pushing through with IMF-mandated fiscal reforms”. BMI stated two key reasons why it expected the alliance to endure over the medium term; the powers that be throwing their “support behind the PML(N)-led government” and Imran’s supporters not being able to organise a large-scale protest movement. The company also wrote that the government “is only likely to collapse in the event of a sharp increase in violence or a painful economic crisis prompting a widespread protest movement”. It, however, predicted that fresh elections were unlikely to happen.
“Another election would raise the prospect that Khan’s allies would gain a parliamentary majority,” the report said. On economic reforms, it predicted that Pakistan’s real GDP growth will average 3.5
per cent over the next decade. However, it cautioned that falling agricultural production, currency weakness, and political instability “that caused growth to stall in 2022/23 could easily reoccur”.