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GOVT RECENTLY EXTENDED EXEMPTIONS IN g WE ANTICIPATE THIS TO BE LAST IMF SPECIFIC SECTORS WHILE INTRODUCING PROGRAM. THAT’S OUR ASPIRATION, NEW TAX MEASURES TO BOOST REVENUE EXPRESSES AURANGZEB
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PROFIT
NEWS DESK
INANCE Minister Muhammad Aurangzeb expressed confidence on Sunday that Pakistan is poised to secure an extended loan program with the International Monetary Fund (IMF), emphasizing its potential to bolster macroeconomic stability. Speaking at a press conference in Islamabad marking the conclusion of the fiscal year 2023-24, Aurangzeb, alongside Prime Minister Shehbaz Sharif, conveyed optimism that the upcoming IMF program could be the country’s final engagement with the Fund. “From my perspective and that of the Prime Minister, we anticipate this to be the last IMF program. That’s our aspiration,” he affirmed. President Asif Ali Zardari approved the government’s Finance Bill 2024 on Sunday, which includes significant taxation measures for the new fiscal year. The budget, presented two weeks ago, drew criticism from opposition parties, particularly the PTI, and coalition ally PPP. In preparation for the IMF’s criteria, the government recently extended exemptions in specific sectors while introducing new tax measures to boost revenue in the upcoming fiscal year. During a session in the National Assembly, opposition lawmakers, notably
from the PTI, criticized the budget, alleging it was heavily influenced by IMF directives. Opposition Leader Omar Ayub Khan condemned it as “economic terrorism against the people.” Pakistan is currently in negotiations with the IMF for a loan ranging from $6 billion to $8 billion. Aurangzeb highlighted the importance of macroeconomic stability, particularly in light of Pakistan’s reliance on loans. “Maintaining stability is crucial. If we can’t repatriate dividends to investors, attracting additional investments becomes challenging,” he explained. He also noted progress in clearing the State Bank’s backlog of letters of credit and investor dividends by late May, a step aimed at boosting investor confidence. Addressing these backlogs will remain a
JUI-F chief calls for fresh elections sans ‘interference of establishment’
Israeli foreign minister threatens Iran saying it ‘deserves to be destroyed’ JERUSALEM AGENCIES
priority into the next fiscal year. Discussing revenue targets, Aurangzeb mentioned a budget of Rs9.4 trillion with an estimated revenue goal of Rs9.3 trillion, showcasing a year-onyear growth in tax revenue of 30 percent. “If macroeconomic indicators remain stable, operations will proceed smoothly. However, any changes in these indicators could complicate matters,” he cautioned. Aurangzeb reiterated three key principles underpinning this year’s budget: increasing the tax-to-GDP ratio, reforming the energy sector, and privatizing state-owned enterprises. He aimed to raise the tax-to-GDP ratio to 13 percent within three years, targeting 10.5 percent by the end of the current fiscal year.
“Our focus at FBR is on closing loopholes, eliminating corruption, and preventing theft through comprehensive digitalization,” he asserted. “Just as we handle banking and bill payments via apps, we aim to streamline FBR processes to minimize human intervention and corruption.” He emphasized plans to simplify tax collection and refund procedures, drawing from international examples and consulting with industry bodies like the FPCCI. Discussing exemptions, Aurangzeb clarified that while existing exemptions were extended, no new ones were introduced, in line with IMF requirements. Looking ahead, Aurangzeb stressed the need to integrate retailers into the tax net and tackle challenges such as the categorization of non-filers. “We’re determined to eradicate these issues,” he affirmed. Regarding the ongoing negotiations with the IMF, Aurangzeb expressed optimism about achieving a staff-level agreement soon, emphasizing the government’s commitment to meeting structural benchmarks. Responding to concerns about the budget’s impact on the public, Aurangzeb acknowledged anxieties over increased taxes, promising efforts to address these concerns and prioritize relief for salaried classes once fiscal space allows. He concluded by outlining efforts to align with provinces on fiscal matters, underscoring the importance of a collaborative approach for national sustainability.
ISLAMABAD STAFF REPORT
Israeli Foreign Minister Israel Katz has said that Iran’ is worthy of destruction due to its s message of an “obliterating war.” ”A regime that threatens destruction deserves to be destroyed,” Katz said in a post on X on Saturday. He also said Israel will act with full force against Hezbollah if it does not stop firing at Israel from Lebanon and move away from the border. Iran’s UN mission said on Friday that if Israel embarks on a “full-scale military aggression” in Lebanon, “an obliterating war will ensue.” The Iranian mission also said in the post on X, formerly known as Twitter, that in such an event “all options, incl. the full involvement of all resistance fronts, are on the table.” Israel has been waging a war on Gaza since the Hamas October 2023 attack that resulted in the deaths of 1,200 Israelis. The Israeli onslught on the besieged territory has killed close to 38,000 Palestinians including women, children and babies and wounded at least 87,500 others. During the same Israel was also been engaged in skirmishes with Hezbollah on its border with Lebanon. At the same time, Israel has also been lauching attacks on Syrian territory. Israeli Prime Minister Benjamin Netanyahu and Defence Minister Yoav Gallant said this week they prefer a diplomatic path to resolving the situation. Though Katz is a member of Israel’s security cabinet, war policy has largely been led by Netanyahu and a small circle of ministers that includes Gallant, who visited Washington this week for talks on Gaza and Lebanon.
Jamiat Ulema-e-Islam Fazl (JUI-F) leader Maulana Fazlur Rehman has called for fresh elections in the country and rejected the February 8 polls as ‘unacceptable’, demanding assurances that the military establishment will not interfere in the electoral process. Underscoring the importance of upholding the integrity of the electoral process, he urged that the people’s right to vote be safeguarded, urging the establishment and intelligence agencies to refrain from meddling in future elections. The JUI-F chief was addressing a press briefing in Islamabad following a meeting of the party’s Central Majlis Shura on Sunday. Rejecting the February 8 elections as “rigged and unacceptable,” Maulana fazl emphasised his party’s ongoing opposition to what they perceive as interference by the establishment in electoral matters. During the meeting, discussions included assessing various political affiliations with other parties aligned with JUI-F, viewing these alliances as part of a broader political strategy. Despite the Pakistan Tehreeke-Insaf’s (PTI) internal divisions
and its failure to appoint a negotiation team, Maulana Fazl extended an olive branch to PTI, expressing readiness for dialogue while criticising the government’s perceived inflexibility in addressing JUI-F’s concerns. Touching on national security issues, he highlighted the consequences of Operation Azm-e-Is-
tehkam, noting increased national anxiety and a surge in terrorism since 2001. He criticiced government statements on potential actions inside Afghanistan, likening them to Pakistan’s decision to allow US bases post-9/11. Asserting the constitutional roles of all institutions, Rehman reiterated support for the military in matters of national defence, but criticised a recent resolution by the US House of Representatives, labeling it a diplomatic setback for Pakistan and advising the US to refrain from meddling in Pakistan’s internal affairs. Regarding international issues, he condemned the global silence on Gaza and criticised current Muslim leadership, questioning their legacy for future generations. He further reaffirmed JUI-F’s support for Pakistan-China relations while acknowledging the need to rebuild Chinese confidence in investing in Pakistan.
Next elections in 2029 upon completion of govt’s tenure: Tarar ISLAMABAD
STAFF REPORT
Federal Minister for Information, Broadcasting, Culture and National Heritage Attaullah Tarar said on Sunday that the next general election would only be held in 2029 upon completion of the constitutional tenure of the incumbent government. Reacting to Jamiat Ulema-eIslam (F) chief Maulana Fazl-urRehman’s presser, he said the Parliament was an appropriate forum to do politics in the current
circumstances. “Solution to all the problems in politics lies in negotiations and dialogue,” the minister emphasized. Attaullah Tarar termed Maulana a “seasoned” and “respected” politician, urging him to appreciate the government’s economic policies that drove an increase in the foreign exchange reserves, and took the stock exchange to historic highest level. The information minister lauded the government for strengthening the rupee and reducing trade deficit significantly.
Govt jacks up petrol price by Rs7.45, diesel by Rs9.60 per/litre ISLAMABAD
STAFF REPORT
The federal government on Sunday announced an increase of by Rs7.45 per litre in the price petrol and Rs9.60 in the price of high-speed diesel effective immediately. According to the Finance Ministry’s notification, the price of petrol has been raised by Rs7.45 per litre, increasing from Rs258.16 to Rs265.61 per litre, while the price of high-speed diesel has been increased by Rs9.60 per litre, jumping from Rs267.89 to Rs277.49 per litre. The revised prices will come into effect from July 1 (Monday) and will remain applicable for the next fifteen days, as confirmed by the Ministry of Finance. The decision follows directives from the federal government amid global fluctuations in oil prices. This increase in petroleum prices is likely to impact consumers across the country, with implications for transportation costs and household budgets. The government’s move aims to address fiscal challenges and ensure stability in the energy sector amidst ongoing economic pressures. The announcement has prompted concerns among various sectors, including businesses and consumers, about the potential inflationary impact of higher fuel costs. The Ministry of Finance has indicated that these adjustments are necessary to manage economic uncertainties and maintain financial equilibrium. The Ministry has urged stakeholders to adhere to the revised prices and expects compliance across the petroleum distribution network. Authorities will monitor the implementation closely to ensure transparency and fair pricing practices in the market.
Iran condemns US congressional resolution on Pakistan’s elections as interference ISLAMABAD
STAFF REPORT
Iran on Sunday criticised the resolution passed by the United States Congress, seeking an investigation of claims of “interference or irregularities” in February 8 elections. “We condemn controversial US resolution on Pakistan elections,” said Iran’s Ambassador to Pakistan Dr Reza Amiri Moghadam. The US House of Representatives, earlier this week, in an overwhelming majority, voted to demand a “full and independent investigation of claims of interference or irregularities” in the polls. The resolution HR 901 was passed by a massive 368 against seven votes on Tuesday, which makes 85% of the total American lawmakers in the legislature. Through the resolution, the US lawmakers had emphasised the need for the Pakistani public’s participation in the country’s democratic process months after its general polls were contested as “rigged” and its outcome termed “delayed” by political parties now seated on the opposition benches in the legislature. Following this, the National Assembly on Friday passed a resolution to condemn the US Congress resolution and termed it “contrary to facts” and “interference” in its internal affairs. The resolution was tabled by Pakistan Muslim League-Nawaz (PML-N) lawmaker Shaista Pervaiz Malik, and passed by a majority in the National Assembly amid a noisy protest of the opposition benchers. Expressing his discontent, Moghadam said that the US resolution is an “open interference in the domestic affairs of an independent member of the United Nations”. The ambassador called it a form of extortion under the guise of supporting democracy. Speaking about the deadly situation in Gaza, the envoy also said that Washington stops a ceasefire resolution through its power to veto. “The US supports the genocide of the people of Gaza by providing lethal weapons to the Zionist regime,” said the ambassador.
FBR exceeds FY24 collection target, despite shortfalls in sales tax, customs duties g
BOARD ACHIEVES A COLLECTION OF RS9.285 TRILLION PROFIT
NEWS DESK
The Federal Board of Revenue (FBR) achieved a collection of Rs9.285 trillion during the fiscal year 2023-24, slightly surpassing the revised target of Rs9.252 trillion. Initially set at Rs9.415 trillion, the budgetary target was adjusted downward to exclude taxes delayed in superior courts due to non-implementation of measures an-
nounced in the 2023-24 budget. Legal stays on the collection of super tax and windfall income tax contributed to shortfalls in sales tax, Federal Excise Duty (FED), and customs duty, despite income tax collections exceeding targets. Income tax collections reached Rs4.512 trillion, surpassing the revised target of Rs3.721 trillion by 21.25%. However, sales tax collections amounted to Rs3.096 trillion, falling short of the Rs3.607 trillion target by 14.16% even after revision.
Federal excise duty collections totaled Rs576 billion, missing the Rs600 billion target by 4%. Customs duty collections stood at Rs1.101 trillion against a target of Rs1.324 trillion, marking a shortfall of 16.84%. An FBR official highlighted the challenges posed by legal impediments to tax collection and emphasized the need for streamlined implementation of fiscal measures to enhance revenue performance in future fiscal years.