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GOVT ‘BULLDOZES’ BILL BARRING INDEPENDENTS FROM JOINING PARTIES THROUGH PARLIAMENT Wednesday, 7 August, 2024 I | 1 Safar, 1446
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SENATOR FARAZ CLAIMS BILL TABLED IN BAD FAITH TO PREVENT IMPLEMENTATION OF SC VERDICT
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LAW MINISTER ASSERTS AMENDMENTS CARRIED OUT AS PER CONSTITUTION AND NA RULES OF BUSINESS
‘It is attack on Constitution, SC’: PTI announces to challenge controversial Election Act ISLAMABAD
STAFF REPORT
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ISLAMABAD SALEEM JADOON
HE Parliament on Tuesday passed a bill seeking to restrict independent lawmakers from joining a party after a stipulated period despite strong protests and objections from opposition parties, especially the Pakistan Tehreek-e-Insaf. The bill, titled: “Elections (Second Amendment) Act, 2024” has introduced amendments to the Elections Act 2017 and is being seen as a tactic to frustrate the Supreme Court’s July 12 ruling, declaring the PTI eligible for reserved seats. The political analysts also described the bill as a move to prevent the PTI from re-emerging as the single largest
party in the NA. Like rumpus and protest in the National Assembly, the Senate also witnessed ruckus as Pakistan Muslim League-Nawaz’s (PML-N) Senator Talal Chaudhry presented the amendment bill. The PTI senator strongly opposed the bill and called it an attack on Constitution and the Supreme Court. The NA earlier in the day approved a bill proposing amendments to the Elections Act 2017 to bar lawmakers from changing their party affiliation amid strong resistance from opposition benches who termed the legislation “unconstitutional”. LEGISLATION INTRODUCED IN BAD FAITH AGAINST PTI: Senator Shibli Faraz, while addressing the Sen-
FinMin sheds light on trust issues with donors, as Pakistan looks forward to flood aid g
EMPHASIZES NECESSITY FOR GOVT TO ENSURE OWNERSHIP AND ACCOUNTABILITY IN MANAGEMENT OF FLOOD AID PROFIT
STAFF REPORT
Finance and Revenue Minister Senator Muhammad Aurangzeb has acknowledged a significant trust deficit with international donors, as Pakistan awaits the release of pledges made to aid in the recovery from the catastrophic floods of 2022. Speaking at the Climate Action for Pakistan event organized by Acumen Pakistan on Tuesday, Aurangzeb revealed that during discussions in Geneva, commitments totaling $9 billion were made in response to the 2022 floods. Despite the substantial pledges, he noted that actual funding has not yet materialized. Aurangzeb attributed this shortfall to the need for credible, monitorable projects to justify the funding. He also pointed out a broader issue of trust in the government, stating that private sector leadership is crucial for moving forward. He emphasized the necessity for the government to ensure ownership and accountability in the management of these funds. Following the floods, which affected approximately 33 million people and resulted in over 1,700 deaths, global donors pledged nearly $11 billion at the ‘International Conference on Climate Resilient Pakistan’ in January last year. This amount exceeds half of the estimated funds required for recovery. Major pledges included $4.2 billion from the Islamic Development Bank, $2 billion from the World Bank, and $1 billion from Saudi Arabia, with additional contributions from the European Union, China, France, and the United States. However, by April 2024, Pakistan had received only $2.8 billion of the pledged $10.987 billion.
Rs 20.00 | Vol XV No 38 I 8 Pages I Islamabad Edition
Leaders from the Sunni Ittehad Council and Pakistan Tehreek-e-Insaf (PTI) have announced their decision to challenge the recent Election Act amendment that prohibits party members from changing their party affiliation. During a session in the National Assembly, PTI’s Ali Muhammad Khan criticized the legislation, claiming it was a tactic to undermine the Supreme Court. He argued that the law infringes on fundamental rights and deprives members of the freedom to change their political allegiance. Khan emphasized that while legislation is necessary, it must serve Pakistan’s best interests. He indicated that they would seek judicial review, accusing the law of promoting the fascism of a particular political party. Muhammad questioned Ali whether the Parliament could be used
ate, sharply criticised the Election Commission of Pakistan (ECP), stating that “the electoral body is known as the ‘se-
by a political party to attack the Supreme Court for its political gains. He said that his party could not be convicted for something it had done in the past even if the government moves forward with law-making against it. “If my party is being granted a right through a Supreme Court order […] How can you make a new law after the Supreme Court’s order and deny us that right?” Ali Muhammad said. “We are protesting […] We reject this bill. This is an attack on the SC through the parliament by the government,” he said, adding that lawmaking should be done for the benefit of the country. “We will go to the SC against it and this lawmaking will be nullified because the Parliament is not standing behind this, there’s a political party behind it,” he said. Sahibzada Sibghatullah of the Sunni Ittehad Council echoed these sentiments, labeling the bill as an attack on both the Constitution and the Supreme Court.
lection commission’ rather than the ‘election commission’.”
Finance Ministry proposes amendments to SOEs Act 2023 g
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CHANGES AIM TO ALIGN WITH INTERNATIONAL LAW AND CLARIFY ARBITRATION AGREEMENTS PROFIT
STAFF REPORT
The Ministry of Finance is working on amendments to the StateOwned Entities (SOEs) Act 2023 to align it with international law and prevent local firms from signing agreements involving international arbitration. Since the promulgation of the SOE Act 2023, various agencies, ministries, and SOEs have faced issues interpreting and implementing the law. The Finance Ministry’s Corporate Finance (CF) Wing has received several proposals for amendments to bring more clarity and ease of implementation. As per a news report, one key issue under consideration is the prohibition on federal SOEs designating foreign forums for arbitration, even for disputes with other federal or provincial SOEs. The proposed amendment states that SOEs should not enter into agreements specifying foreign fo-
rums for dispute resolution, except with prior federal approval for dealings with foreign governments or entities. The Finance Ministry also noted the need to refine several definitions and sections of the Act for better clarity and consistency with other laws, such as the Companies Act. OTHER PROPOSED CHANGES INCLUDE: Section 10(3): Removing the requirement for notifying procedures by the Board Nomination Committee (BNC) to reduce administrative burdens. Section 12: Reviewing the inclusion of the CEO on the Board of a Company to maintain the separation of board and management. Section 13(2): Revising stringent criteria for the disqualification and removal of independent directors. Section 17(2): Omitting references to the Global Standards of Procurement and Supply, as they
are competency frameworks rather than procurement standards. The amendments also address synchronization between the Act and the SOE Policy, particularly regarding the roles of the BNC and SECP in applying the Fit and Proper criteria for board appointments. Additionally, the logic behind the inclusion of specific entities in Schedule 1, and the synchronization of the roles of the Privatisation Commission with the provisions of the PC Ordinance 2000, are to be reviewed. The first phase of these amendments focuses on five ministries, with reports due by August 2 and August 12, 2024. The committee is also reviewing the performance of SOEs, identifying 84 entities, with 55 under review, and determining which are essential, strategic, or slated for privatisation. The Finance Ministry is expected to present a detailed update in the next cabinet meeting.
PTI’s Raoof Hasan released from Adiala Jail following bail in terror case ISLAMABAD
STAFF REPORT
PTI spokesperson Raoof Hasan was released from Adiala Jail on Tuesday night following his bail granted by the Anti-Terrorism Court in a case of alleged recovery of explosives. PTI lawyer and spokesperson Naeem Haider Panjutha announced the development on social media platform X. Footage of Hasan’s release also went viral on social media, showing him walking away before leaving in a vehicle. Hasan was arrested on July 22 in a case registered by the Federal Investigation Agency (FIA) under the Prevention of Electronic Crimes Act 2016 (Peca). His arrest had come the same day as the interior ministry claimed the PTI was involved in “anti-state propaganda”. The government then formed a joint investigation committee (JIT) last week to probe those creating “chaos and disorder” in the country through “malicious social media campaigns”. In the social media case, Hasan was remanded into the FIA’s custody for a total of seven days — an initial two-day physical remand, followed by a threeday and a two-day extension for further investigation. After being sent on a 14-day judicial remand, Hasan was reportedly shifted to Adiala Jail on July 31 but was arrested in a terrorism case the same day, according to The News. His arrest was made in a case pertaining to the alleged possession of weapons and explosives, which did not name him directly but was the same in which PTI’s international media coordinator Ahmed Janjua had been taken into custody. On August 1, an Islamabad court granted Hasan and eight others bail in the social media case, but he could not be release he had already been handed over to the Counter-Terrorism Department on a two-day physical remand on July 31. The remand was extended by a day on August 2, following which the PTI leader was produced before an Islamabad ATC on Saturday which sent him on a 14-day judicial remand. ATC Judge Tahir Abbas Sipra presided over a hearing on Hasan’s bail plea today and granted the request, setting release against furnishing surety bonds at Rs200,000. “It is further observed that the accused/petitioner is an old age person of 75 years and he is facing severe illness. He is a cardiac patient as well as a cancer survivor. He is well-educated person having no previous criminal record. The investigation has already been completed and the person of the accused is no more required by the prosecution for any purpose. In view of that instant post-arrest bail stands accepted,” the order said. Regarding the case, the judge noted that despite Hasan’s physical remand, nothing was recovered from him and no material or evidence was collected and placed on the record to establish his link with the alleged provision of finances for the explosives. “There is no direct or indirect evidence available to connect the present accused/petitioner with the abetment of the offence attributed.” Hasan’s robkar (release order) was later issued by the court.
Pakistani charged with alleged ties to Iran in foiled assassination plot in US WASHINGTON REUTERS
A Pakistani man with alleged ties to Iran has been charged in the United States in connection with a foiled plot to assassinate a US politician or government officials, the Justice Department said on Tuesday. Asif Merchant, 46, sought to recruit people in the United States to carry out the plot in retaliation for the US killing of Iran’s Revolutionary Guards’ top com-
mander Qassem Soleimani in 2020, according to a criminal complaint. Merchant, who prosecutors allege spent time in Iran before traveling to the US, was charged with murder for hire in federal court in New York’s Brooklyn borough. According to court records, a federal judge ordered him detained on July 16. “For years, the Justice Department has been working aggressively to counter Iran’s brazen and unrelenting efforts to retaliate against American public officials for
the killing of Iranian General Soleimani,” Attorney General Merrick Garland said in a statement. FBI investigators believe that former president Donald Trump, who approved the drone strike on Soleimani, and other current and former US government officials were the intended targets of the plot, CNN reported, citing a US official. Court documents do not name the alleged targets of the plot. Merchant told a law enforcement informant that there would be “security all around” one target,
according to the criminal complaint. A Justice Department spokesperson declined to comment further. Trump’s presidential campaign could not immediately be reached for comment. A 20-yearold gunman wounded the former Republican president and current White House candidate at a July 13 campaign rally in Butler, Pennsylvania. The gunman opened fire on Trump with an ARstyle assault rifle just minutes after he began speaking at the campaign event.
Textile value chain reportedly evades Rs236 billion in taxes annually g
PCGA REPORTS MAJOR TAX EVASION ACROSS GINNING TO RETAIL LEVELS PROFIT
STAFF REPORT
Tax evasion in Pakistan’s textile value chain, spanning from ginning to retail, is estimated at Rs236 billion annually, according to the Pakistan Cotton Ginners Association (PCGA). The assessment reveals tax evasion, with Rs36 billion attributed to the ginning stage alone and the remaining Rs200 billion across other stages of the textile value chain. The PCGA disclosed that the ginning industry faces 12 different taxes and duties, including multiple 18 percent sales taxes on cotton lint, cotton oil, and oil dirt, as well as income tax, professional tax, market fees, and various highway-related fees. These
heavy tax burdens have reportedly discouraged ginners, resulting in only 665 out of 1,200 ginning factories operating during the 2023-24 season. The PCGA warns that the additional sales tax on cotton seed cake and increased electricity charges from July 1, 2024, could lead to a complete collapse of the ginning industry. The PCGA argues that excessive taxation not only hinders fair business practices but also supports tax evasion. Ginners often conduct business without invoices, hiding actual production and avoiding taxes. This issue extends beyond ginning, with parts of the cotton lint flow going unaccounted for at later stages of value addition, leading to further tax evasion in the textile industry.
In response to these challenges, the PCGA detailed the taxes and fees associated with cotton and oil at different stages, totaling Rs36.22 billion at the ginning stage. This includes Rs32.40 billion from the 18 percent sales tax on cotton lint, Rs2.16 billion from the 1.2 percent withholding tax on cotton lint, and Rs1.05 billion from the 18 percent sales tax on oil, among other fees. The PCGA estimates that the textile industry’s total tax evasion could exceed Rs200 billion, covering stages such as spinning, weaving, finishing, dyeing, and retail. The association highlights the need for a more streamlined and fair taxation system to ensure compliance and support the industry’s sustainability.