Profit GOVT FOCUSING ON EXPANDING TAX BASE, REDUCING TAX BURDEN ON POOR: PM In partnership with
Tuesday, 15 July, 2025 | 19 Muharram, 1447
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Rs 50.00 | Vol XVI No 7 | 44 Pages | Lahore Edition
SAYS TRANSPARENCY IN ECONOMY THROUGH g DIRECTS ESTABLISHING HELPLINE TO ASSIST g IN TAX REFORMS, FOCUS SHOULD REMAIN DIGITIZATION IS GOVT’S TOP PRIORITY WITH PROCESS OF FILING TAX RETURNS ON CONVENIENCE OF COMMON MAN: PM ISLAMABAD
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RIME Minister Muhammad Shehbaz Sharif on Monday said that expanding the tax base and reducing the burden of taxes on the poor were among the top priorities of the government. He was chairing a meeting here to review progress on the digitization of the Federal Board of Revenue (FBR), the implementation of an Artificial Intelligence (AI)-based system, and other reforms. Hailing the availability of simple tax returns in Urdu, the prime minister said a helpline should be established to assist with the process of filing tax returns and digital invoicing should also be launched in Urdu. “In tax reforms, the focus should remain on the convenience of the common man,” he added. The prime minister directed that thirdparty validation be ensured for all FBR reforms to maintain transparency. He stated that for the public’s convenience, tax returns have been made extremely easy by making them digital, concise, and linked with a centralized database. He said salaried individuals will benefit the most from the new simplified tax returns.
The prime minister instructed that a public awareness campaign should be launched about the ease of tax returns so more and more people can file their returns under the new system. He also praised the finance minister, the economic team, the FBR chairman, and their teams, saying that the positive results of tax reforms are the outcome of their tireless efforts. “For the first time in the country’s history, the implementation of an AI-based tax assessment system is a big success, and the
FBR’s initiatives are commendable.” He also instructed that small and medium-sized businesses should be given special support in joining the digital invoicing system. The meeting was attended by federal ministers Ahad Khan Cheema, Attaullah Tarar, Ali Pervaiz Malik, Minister of State for Finance Bilal Azhar Kayani, Chief Coordinator Mosharraf Zaidi, the Chairman FBR, and other senior officials. The participants were briefed on
progress related to digital invoicing, e-bilty, simplified tax returns, the AI-based assessment system, the establishment of a central command and control center, and the cargo tracking system. It was informed that bidding for the FBR command and control unit will be completed soon, and the system will be fully functional by September. This will not only provide centralized data but also help in decision-making. The meeting was also informed about the AI-based assessment system. Traders are now allowed to submit advance goods declarations before the arrival of ships. Under this, they will get full exemption on upfront duties and taxes. With this system, the percentage of advance goods declarations is expected to rise from 3% to over 95%. This will also allow containers with advance declarations to be delivered directly from the port to factories. Regarding digital invoicing, the meeting was told that now all businesses, both large and small, will be required to issue receipts at the time of sale through the FBR’s online system. Around 20,000 businesses are expected to join this system in the coming months. In just one month, 8,000 invoices amounting to 11.6 billion rupees were issued through this system. This system includes a taxpayer portal
and a monitoring dashboard. It was shared that businesses can join the system free of cost through PRAL (Pakistan Revenue Automation Ltd.). Training is also being given to traders. Once fully implemented, there will be no need to submit sales tax returns separately, as all transactions will be automatically recorded in the system. Additionally, the internationally recognized 8-digit HS Code will help eliminate fake and flying invoices. Digital invoicing will also make it easier to assess the performance of the sales tax system. Business training sessions are being held to make the system effective. The meeting was informed that simplified digital tax returns will be launched from July 15 for salaried individuals and from July 30 for other taxpayers. Urdu-language returns for salaried individuals will also be available by July 30. The process of filling out the new simplified tax returns was explained in detail. The meeting was also briefed about the progress of the cargo tracking system and e-bilty system. It was explained that the system will allow real-time monitoring of the movement of goods and tax payment tracking. AI-based assessment will also be possible through this, which will make tax enforcement more effective and efficient.
Naqvi attends trilateral talks in Tehran on pilgrims’ issues, border concerns TEHRAN
staff report
IFJ urges CJP to review PECA Law, citing threats to journalists, press freedom ISLAMABAD
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International Federation of Journalists (IFJ) has written a letter to the Chief Justice of Pakistan, expressing concern over the challenges faced by journalists in the country, particularly under the Prevention of Electronic Crimes Act (PECA). The letter, also sent to the prime minister and the chief justice of the Islamabad High Court (IHC), highlights the increasing risks journalists face while performing their professional duties in Pakistan. The IFJ stated that journalists are being subjected to cases, harassment, and threats under PECA, which is being used to curtail freedom of expression and fundamental rights. The organization reminded Pakistan of its commitments under the International Labour Organization (ILO) and United Nations conventions. According to the IFJ, Pakistan recorded at least 34 violations against press freedom, including attacks on journalists, harassment, hate campaigns on social media, and incidents of violence. The federation noted that at least seven journalists have been killed in Pakistan over the past year, yet no perpetrators have been convicted. The letter also raised concerns over non-payment of salaries, unlawful dismissals, and security threats faced by media workers. It further criticized restrictions on the right of media workers to unionize and argued that amendments to PECA have granted excessive powers to the FIA, potentially enabling the law’s misuse to suppress dissent.
Interior Minister Mohsin Naqvi attended a trilateral conference in Tehran on Monday with his Iranian and Iraqi counterparts, Eskandar Momeni and Abdul Amir al-Shammari, to address the challenges faced by pilgrims and discuss border issues. The conference aimed at improving the coordination between Pakistan, Iran, and Iraq to resolve the difficulties faced by pilgrims traveling between the countries. Naqvi emphasized that the trilateral talks would play a significant role in easing the issues concerning pilgrims and border management.
Naqvi also conveyed his best wishes to Iran’s Supreme Leader Ayatollah Khamenei and President Masoud Pezeshkian during his discussions with Iranian officials. The Iranian Interior Minister expressed confidence that Naqvi’s visit would strengthen the relations between
Pakistan and Iran. Upon arrival at Tehran’s Imam Khomeini International Airport, Naqvi was warmly welcomed by Iranian Interior Minister Eskandar Momeni. The trilateral meeting was convened at Pakistan’s request to facilitate cooperation on these pressing issues.
Zulfi Bukhari to testify before US Congress body on ‘political repression’ in Pakistan LONDON
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PTI leader Sayed Zulfikar Bukhari, a former aide to ex-premier Imran Khan, is set to offer testimony on “political repression” in Pakistan before the United States Congress’ Tom Lantos Human Rights Commission, it emerged on Monday. According to its website, the bipartisan commission was established in 2008 and is charged with promoting, defending and advocating for international human rights as enshrined in the Universal Declaration of Human Rights and other relevant human rights instruments. The commission’s hearing no-
tice states that the session will take place on Tuesday (tomorrow) at 3:30pm (12:30am PKT on Wednesday) and will “examine the government of Pakistan’s persecution of opposition political figures and journalists, and its actions to control media communications and prevent free and fair elections in Pakistan”. The session is open to the public and the media. “Many date the current phase of repression in Pakistan to 2022, when, with the involvement of the Pakistan military, popular Prime Minister Imran Khan was ousted, and soon after, arrested, convicted of corruption and imprisoned,” the notice read.
“Parliamentary elections in February 2024 were, according to the US State Department, marked by ‘undue restrictions on freedoms of expression, association, and peaceful assembly’, as well as ‘electoral violence, and restrictions on the exercise of human rights and fundamental freedoms’,” it added. The commission provided a list of witnesses who would provide testimony during Tuesday’s hearing. Besides Bukhari, the list includes Amnesty International’s Advocacy Director for Europe and Central Asia, Ben Linden; Perseus Strategies Managing Director Jared Genser; and Afghanistan Impact Network founder Sadiq Amini.
PTI wants instability while the government strives for economic revival: Rana Sanaullah ISLAMABAD
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Prime Minister’s Adviser on Political Affairs Rana Sanaullah said on Monday that PTI wants instability in the country, while the government has achieved economic revival and stability after a long struggle. Talking to a private news channel, he said that Pakistan paddled progress due to recent improvements and the chance to move forward and secure a strong economic position. He said PTI is planning a 90-day program to destabilize the country through protests and lockdowns. PTI is not willing to engage in political dialogue. They only want to talk to the establishment, he added. They are avoiding talks with political parties and continue to demand support from the establishment to return to power, he further added. He said the government is ready to discuss other demands, but PTI has not shown interest in meaningful talks. They are repeating the same NRO agenda, ignoring political solutions. Rana Sanaullah said the government’s only aim is national progress. Pakistan was once among the top 25 economies of the world. Now, the focus is to revive that status and turn Pakistan into a welfare state.
Aurangzeb defends FBR powers, says focus is on tackling sales tax fraud, not income tax g
FINANCE MINISTER CLARIFIES THAT NEW ENFORCEMENT AUTHORITY TARGETS HIGH-VALUE NON-FILERS AND SERIOUS TAX FRAUD; URGES BANKS TO SUPPORT PRIVATISATION, ECONOMIC REVIVAL PROFIT
staff report
Finance Minister Muhammad Aurangzeb on Monday clarified that the expanded enforcement powers granted to the Federal Board of Revenue (FBR) under recent reforms are intended solely to tackle sales tax fraud, and not income tax issues as some critics have claimed. “This whole issue is a sales tax fraud issue,” Aurangzeb said during a press conference in Karachi. “It has no relation to income tax.” The finance minister defended the amendments, which give the FBR authority to block high-value transactions by non-filers—including vehicle and property purchases, investments in mutual funds and securities, and the opening of premium bank accounts. The law also empowers the tax authority to seal unregistered business premises, confiscate goods, and recover taxes—even from public sector entities. Aurangzeb explained that these powers
already existed under the original legislation, but the government has now introduced additional safeguards. “Inland Revenue Service officers already had the power to arrest. What we’ve done is build in more protections,” he said. He noted that the law underwent rigorous scrutiny, with detailed clause-by-clause discussions in the National Assembly, the Senate Finance Committee, and standing committees, and included input from the Pakistan Bar Council’s vice chairman. “This is not something Parliament has approved without thinking it through,” he stressed. “A lot of thought has gone into it.” The finance minister elaborated that of the 10–12 key sections in question, at least six relate to sales tax fraud—offences he described as more serious than others. He also stated that the new powers would only be exercised in cases involving over Rs50 million in fraud, and only at the commissioner level, with authorisation required from a three-member FBR board.
Shifting to the broader economic picture, Aurangzeb called on Pakistan’s banking sector to play a larger role in the government’s economic revival efforts— particularly in the privatisation of stateowned enterprises and the rehabilitation of
financially distressed firms. “There are 24 state-owned enterprises currently with the Privatisation Commission,” he said. “Banks can play a very important role in this, and they should.” He acknowledged the challenges faced by various industries—ranging from inflation and high interest rates to volatility in global commodity prices—and urged banks to partner with sponsors to bring struggling units back to life. “This is a very big pillar of Haroon Akhtar’s industrial policy, where banks can play a very major role,” Aurangzeb said. He also touched on macroeconomic challenges and investor sentiment. “It was a very big issue that [foreign investors’] dividends were stuck here, their profits were unable to be repatriated, there was difficulty in opening their letters of credit,” he said. He credited “substantial improvement” over the last 12 to 18 months and emphasized investor confidence as “basic hygiene” for attracting further capital.
“If existing investors are not satisfied, then bringing further investment in the future is very difficult,” he noted. “So I think we’ve come a long way from that perspective.” Aurangzeb also spoke about ongoing efforts to modernise and digitise the FBR. He said he had invited Faysal Bank President and CEO Yousuf Hussain, as well as Communications Minister Abdul Aleem, to Islamabad to observe the ongoing transformation at the tax body. “It is very important to re-establish the credibility and trust of our tax authority in this country,” he said. One of the key reforms involves simplification of tax filing processes, beginning with salaried individuals. The finance minister urged feedback on the newly launched simplified tax return form, now live on the FBR website. “The first form that used to be filled out had about 800 rows and complicated codes,” he said. “Now there are eight screens in total.”