Pakistan’s finance minister announces plan to abolish ‘non-filer’ status with punitive actions
Pakistan’s finance minister announces plan to abolish ‘non-filer’ status with punitive actions/node/2572937/pakistan
Pakistan’s finance minister announces plan to abolish ‘non-filer’ status with punitive actions
Pakistan Finance Minister Muhammad Aurangzeb speaks during an interview with Reuters at his office in Islamabad, Pakistan, on July 19, 2024. (REUTERS/File)
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Thursday the government plans to eliminate the “non-filer” category by taking punitive actions against those who previously paid nominal amounts on various transactions to avoid filing tax returns.
The minister made the statement in an interview with Voice of America, a day after the International Monetary Fund (IMF) approved a $7 billion loan program to support Pakistan’s cash-strapped economy.
The government has implemented stringent economic reforms in recent years, including the removal of subsidies and increased power tariffs, based on recommendations from the global lender to stabilize the financial outlook before achieving macroeconomic stability.
Aurangzeb noted, after the loan approval in a separate statement, that Pakistan will face “transitional pain” if it aims to make this the last IMF program by continuing with structural reforms.
“Previously, we had this system where if someone was a non-filer, we said you can pay a nominal rate and stay outside the tax system,” he said during the interview. “Now, we’re taking it to a punitive level. It’s about time we address this invention of the non-filer status, which I think only exists in our country.”
“As a country, our hand has been forced,” he continued. “We no longer have the capacity to allow anyone in this country to remain a non-filer.”
The minister acknowledged that the IMF conditionalities had become more stringent with every loan program, attributing it to the “credibility and trust deficit.”
“We sign the structural benchmarks but never follow through,” he said. “That’s why they are strict. This time, we are going to go through the reforms.”
He maintained the government aims to widen the tax net by incorporating the agriculture, retail and wholesale sectors.
He also pointed out that measures are being taken to improve compliance and enforcement, which had previously been weak.
The IMF and World Bank chiefs have already praised Pakistan’s recent economic reforms, though international lending agencies also stress the need to stay the course in order to further strengthen the national economy.
KARACHI: Pakistan’s southern Sindh province will deploy its first cohort of female bike ambulance responders by the end of the current quarter, health authorities said on Wednesday, adding the women will be part of a gender-inclusive emergency response team and operate motorbikes to reach patients in hard-to-access areas.
The initiative, launched by Sindh Integrated Emergency and Health Services (SIEHS-1122), aims to improve access to pre-hospital care in congested urban neighborhoods where conventional ambulances are often delayed.
It also marks a move toward greater gender representation in emergency services, with female and male responders working in integrated teams across Karachi, Hyderabad and Sukkur.
“By the end of this quarter, 50 trained female responders will be deployed across Sindh — each stationed at designated take-off points to deliver swift care,” SIEHS said in a statement. “They’ll be riding 150cc bikes, not the usual 70cc — purpose-built vehicles fitted with essential life-saving equipment, communication devices, and emergency drugs.”
According to SIEHS, the responders underwent four weeks of field-based training in simulated emergency conditions, including drills and navigation under heat stress, to prepare them for rapid medical intervention in densely populated localities.
Each bike is equipped to function as a mobile unit for stabilizing patients prior to transport, and the service is expected to complement existing ambulance fleets already operating in the province under the 1122 emergency network.
The statement said the initiative will help Sindh join a growing list of jurisdictions worldwide adopting bike-based emergency models to shorten response times and expand coverage in urban and peri-urban areas.
SIEHS said the program builds on earlier initiatives, including the deployment of female ambulance drivers in Sanghar, and reflects ongoing efforts to improve community-level access to emergency care while promoting gender inclusion in public service roles.
ISLAMABAD: President Asif Ali Zardari has expressed Pakistan’s interest in expanding trade with Oman in the information technology, construction, health care, food security and energy sectors, state media reported on Wednesday.
Pakistan is actively working to deepen economic ties with Gulf nations and attract foreign investment across key sectors. With Oman positioned as a key regional player, the emphasis on expanding trade signals Islamabad’s intent to access new markets and build long-term economic collaboration.
Oman’s Ambassador to Pakistan, Fahad Sulaiman Khalaf Al Kharusi, met with Zardari to discuss ways to further strengthen bilateral cooperation, according to the Associated Press of Pakistan (APP).
“Pakistan is keen to increase bilateral trade and investment in areas such as information technology, construction, health care, food security and energy,” APP quoted Zardari as saying.
“He stressed that government-to-government engagement would encourage robust private-sector collaboration, thereby boosting trade and investment between the two nations.”
Zardari also urged Al Kharusi to enhance interaction at the leadership level to further strengthen the cordial ties between Pakistan and Oman, it added.
Foreign countries have been taking a strong interest across key sectors of Pakistan, with millions pledged for its growing IT industry and some energy investments mainly in renewables.
Pakistan is also engaging Gulf investors through platforms such as Arab Health 2025 to boost medical tourism and innovation.
In recent months, the country has witnessed a surge in high-level visits, investment discussions and economic engagement with Gulf and Middle Eastern nations.
Last August, Islamabad invited Oman to invest in Pakistan’s agriculture and mineral sectors through a Pakistani hybrid civil-military body aimed at attracting foreign investment.
ISLAMABAD: Pakistan and Türkiye’s navies concluded their first-ever bilateral amphibious exercise in the port city of Karachi, aimed at enhancing “maritime collaboration and interoperability,” state media reported on Wednesday.
A naval amphibious exercise is a military drill that simulates the landing of troops from ships onto a coastline, designed to strengthen coordination and combat readiness for assaults, evacuations or disaster response operations.
The exercise featured combat firing techniques, amphibious operation drills, convoy escorting drills along with military operations in urban terrain.
“Live firing drills and close combat scenarios designed to sharpen tactical coordination and readiness in littoral environments were also a part of the exercise,” the Associated Press of Pakistan (APP) said in its report.
“The exercise culminated with a comprehensive amphibious drill in the designated coastal area validating operational readiness of both navies.”
It added the bilateral exercise reflected the “deep-rooted” defense partnership between Pakistan and Türkiye, reaffirming their shared commitment to regional peace through regular joint training.
Pakistan Navy Chief Admiral Naveed Ashraf also visited to Türkiye recently, where he was conferred the prestigious Turkish military honor, the “Legion of Merit,” in recognition of his efforts to enhance maritime cooperation between the two countries.
Pakistan and Türkiye maintain strong diplomatic, economic and defense relations.
Turkish defense firms have played a significant role in modernizing Pakistan’s Agosta 90B-class submarines and have also supplied Islamabad with advanced military equipment including drones
The two nations regularly hold joint military drills to boost cooperation and synergy. The last exercise, Ataturk-XIII in February, brought together special forces for combat training to enhance interoperability.
ISLAMABAD: The government will establish Pakistan Mart, a commercial hub near Jebel Ali in the United Arab Emirates, to showcase made in Pakistan products to global buyers, the commerce ministry said on Wednesday, adding that DP World will build the facility at no construction cost to Pakistani stakeholders.
The development comes as Pakistan pushes for export-led growth after stabilizing its crisis-hit economy with assistance from the International Monetary Fund and financial support from friendly nations. The Gulf region, particularly the UAE, offers critical advantages such as proximity, low freight costs and established Pakistani trade networks, making it a natural launchpad for this initiative.
Pakistan Mart is expected to significantly support the exporters of the South Asian state by improving visibility, reducing logistical barriers and allowing direct market access in the region. The mart will also facilitate digital trade and is aimed at helping sectors like textiles, garments, surgical instruments, food, perishables and nutraceuticals.
“When this facility will be established, more than 500 Pakistani retailers, shopkeepers and those who are going to use the warehousing facility will get a window, a platform,” Commerce Minister Jam Kamal Khan said.
“They will showcase their products for Dubai market, UAE market and Gulf market. They will be able to export their products in other regions as well.”
“The good thing about this project is that unless you sell the product, there will be no tax or fees imposed on you,” he continued, adding “there is a minimum rental for it.”
According to the statement issued by the ministry, the project was presented to the commerce minister by a delegation comprising officials from Pakistan’s National Logistics Cell (NLC) and DP World, led by NLC’s director general.
Kamal described the project as “transformational” for Pakistani trade and directed all relevant agencies, including the Trade Development Authority of Pakistan (TDAP), to urgently coordinate with stakeholders and facilitate export-ready enterprises for tenancy at the new facility.
The delegation urged the ministry to take a lead role in tenant selection, awareness campaigns and ensuring that exporters are equipped to capitalize on the opportunity.
Pakistan Mart is expected to become a strategic platform for export diversification and economic diplomacy, reinforcing Pakistan’s presence in key international markets.
It is also expected to attract more Africans buyers to the Pakistani products.
KARACHI: Pakistan’s leading real estate company will challenge a court ruling clearing the way for the auction of six of its properties, its lawyer said on Wednesday, as the country’s anti-graft body pushes ahead with a high-profile crackdown involving one of the nation’s most powerful business tycoons.
The Islamabad High Court dismissed a petition by Bahria Town a day earlier against the planned auction of its properties by the National Accountability Bureau (NAB). Shortly after the court issued its short order, NAB announced the auction would proceed as planned on August 7 at its Islamabad office.
“We are going to challenge the decision in the Supreme Court today,” Farooq H. Naik, counsel for Bahria Town, told Arab News.
The six properties up for auction include one in Islamabad and five in Rawalpindi. NAB said the sale aims to recover unpaid amounts from a settlement deal linked to the £190 million case involving Malik Riaz Hussain, the founder of Bahria Town.
Hussain has spoken publicly for months about being pressured due to “political motives” and facing financial losses as NAB opens cases against his property development projects across Pakistan.
This file photo, taken on January 10, 2025, shows Pakistan's real estate tycoon Malik Riaz Hussain. (Photo courtesy: Malik Riaz/ Facebook/File)
While he has not explicitly named who was pressuring him or why, media and analysts widely speculate the crackdown relates to the Al-Qadir Trust case, which involves accusations Khan and his wife, during his premiership from 2018-2022, were given land by Hussain as a bribe in exchange for illegal favors.
In January, a court sentenced Khan to 14 years imprisonment in the Al-Qadir Trust case.
In 2019, Britain’s National Crime Agency (NCA) said Hussain had agreed to hand over £190 million held in Britain to settle a UK investigation into whether the money was from the proceeds of crime.
The agency said the assets would be passed to the government of Pakistan and the settlement with Hussain was “a civil matter, and does not represent a finding of guilt.”
The case made against Hussain and ex-PM Khan was that instead of putting the tycoon’s settlement money in Pakistan’s treasury, Khan’s government used the money to pay fines levied by a court against Hussain for illegal acquisition of government lands at below-market value for development in Karachi.
Hussain, who hasn’t appeared before an anti-graft agency to submit his reply to summons issued to him, has denied any wrongdoing. Khan and his wife have also pleaded innocence.
During Tuesday’s court proceedings, according to Dawn newspaper, Naik argued the auction notice was “illegal, deceptive and issued with mala fide intent,” saying Bahria Town was neither part of any plea bargain nor named as an accused in any reference relating to the UK-originated case.
He warned the move could severely damage investor confidence in Pakistan’s real estate sector.
However, NAB prosecutor Rafay Maqsood told the court Bahria Town’s legal team had previously lost a similar case in a lower court before approaching the high court, which granted a temporary stay on June 12, the day the auction was originally scheduled. NAB later moved to have the stay vacated.
The development marks another escalation in the legal troubles facing Hussain, widely regarded for years as Pakistan’s most influential businessman, known for close ties with political, media and military elites.
On Tuesday, Hussain said in a statement on social media platform X his property empire was on the brink of collapse due to what he termed a politically motivated crackdown. He claimed Bahria Town’s bank accounts had been frozen, vehicles seized and dozens of employees arrested, forcing a near shutdown of operations.
“The situation has reached a point where we are being forced to completely shut down all Bahria Town activities across Pakistan,” Hussain said. “We apologize to the residents and stakeholders of Bahria Town.”
Earlier this year in January, NAB put out a public notice cautioning people against investing in Hussain’s new real estate venture to build luxury apartments in Dubai:
“If the general public at large invests in the stated project, their actions would be tantamount to money laundering, for which they may face criminal and legal proceedings.”
In his X post on Tuesday, Hussain appealed to state institutions to adopt a more conciliatory approach.
“I make a final appeal from the bottom of my heart for a chance to return to serious dialogue and a dignified resolution. For this purpose, we assure you of our full participation in any arbitration process and our commitment to implementing its decision 100 percent. I also assure you that if the arbitration decision requires payment of money from our side, we will ensure its payment.”
Bahria Town, founded in the late 1990s, is one of Pakistan’s largest private employers and a major developer of luxury housing schemes across the country. Over the years, the company has been the subject of multiple investigations over illegal land acquisitions and unauthorized development but has continued to operate.
