akademisyen, Mozambik
Govt slashes petrol, diesel prices by Rs1.97
ISLAMABAD: The government on Friday cut the price of both petrol and diesel by Rs1.97 per litre, with immediate effect for the week ending July 10, to pass on part of the impact of lower global prices over the past week. As such, the ex-depot price of high-speed diesel (HSD) was set at Rs309.50 for the next week instead of Rs311.47 at present, down Rs1.97. The diesel price has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28. HSD is considered the most inflationary fuel given its widespread use in freight transportation. The ex-depot rate of petrol was set at Rs297.53 per litre for the next week against Rs299.50 at present, showing a decrease of Rs1.97. The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March. The petrol price has undergone successive downward revisions, with a cumulative reduction of about Rs109 per litre. The government slightly increased the petroleum levy on both products; otherwise, petrol and diesel prices would have dropped by about Rs11 and Rs4 per litre, respectively. Under IMF conditions, the government doubled the climate support levy to Rs5 per litre with effect from July 1, while correspondingly reducing the petroleum levy. As a result, the petroleum levy on diesel currently stands at about Rs80 per litre. On the other hand, the petroleum levy on petrol now stands at about Rs70 per litre, in addition to the Rs5 climate support levy. The government is currently charging about Rs101 per litre on high-speed diesel (HSD) in the form of Rs16 per litre customs duty, in addition to the petroleum levy and climate support levy, as well as the inland freight equalisation margin. Meanwhile, the total tax on petrol amounts to Rs95 per litre, including Rs20 per litre customs duty in addition to the petroleum levy and climate levy. The government is also charging about Rs21 per litre as petroleum levy on kerosene and about Rs16 per litre on light diesel oil. Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.
IHC suspends National Highway Authority notification to impose 50pc additional toll on vehicles without M-Tag
ISLAMABAD: The Islamabad High Court (IHC) on Friday suspended the operation of a National Highway Authority (NHA) notification that imposed an additional 50 per cent toll on vehicles travelling on motorways without an M-Tag or with insufficient balance in their M-Tag accounts. The interim order was passed by IHC Justice Arbab Muhammad Tahir after hearing a petition filed by advocate Muhammad Jalal Haider, who had challenged the legality of the notification issued by the NHA on May 30, 2025. The court issued notices to the respondents, including the federation and the NHA, directing them to file a report and para-wise comments within a fortnight. The case was adjourned until August 3. Pending further proceedings, the court ordered that the impugned notification “shall remain suspended”. According to the petition, the NHA had introduced an additional 50pc toll on vehicles using motorways without an M-Tag or with an inadequate balance in their M-Tag accounts through the May 30 notification. Counsel for the petitioner argued that Section 10(vii) of the National Highway Authority Act, 1991 only authorises the NHA to levy and collect tolls on national highways, strategic roads and other roads entrusted to it. He contended that the provision does not empower the authority to impose any penalty, surcharge or additional fiscal burden on road users. The petition also maintained that the NHA, being a statutory body, could exercise only those powers expressly conferred upon it by law. It argued that neither the NHA Act nor the rules framed under it declared travelling without an M-Tag or with insufficient balance to be an offence carrying any monetary penalty. The counsel submitted that the additional 50pc charge was, in substance, a penalty imposed without statutory backing, and that executive notifications could not create substantive liabilities beyond the parent legislation. The petition further argued that the additional amount had no nexus with services rendered by the authority and was therefore beyond the powers granted under the NHA Act, making the notification ultra vires and without lawful authority. The petitioner requested the court to declare the May 30 notification “unconstitutional, illegal and of no legal effect”. He also sought directions for the NHA to refund the additional amounts collected under the notification and to place on record the complete mechanism governing M-Tag balance management and its utilisation. After hearing the preliminary arguments, the court suspended the notification until the next date of hearing and sought responses from the respondents.
Iran insists on keeping control over Hormuz, senior Iranian sources say
DUBAI/LONDON, July 1 - Iran is determined to win international recognition of its control over the Strait of Hormuz and ability to levy fees on ships entering or leaving the Gulf even if it has to do so by force, two senior Iranian sources said.
Israel’s arms exports are surging. Aid from Washington is helping.
Even as frustrations mount over Israeli military campaigns across the Middle East, governments keep buying weapons from Israel — making it one of the world's largest arms exporters. As experts tell Responsible Statecraft, Tel Aviv uses these weapons sales to lock countries into long-term, strategic relationships that make recipients less likely to hold Israel accountable for their behavior in Gaza and Lebanon or in its West Bank policies. They stress that sustained U.S. support, including billions in military grant aid each year and the co-development of many Israeli weapons systems, helps make this all possible. A weapons exports boom Following October 7, Israel’s defense industry has exploded: the number of startups there nearly doubled, from 160 in July 2024 to 312 in April 2025. Its arms exports, which account for 75% to 80% of all Israeli weapons production, have grown in tandem. According to Stockholm International Peace Research Institute (SIPRI) data published in March, Israel was the world's seventh-largest arms exporter between 2021 and 2025, surpassing the United Kingdom. Tel Aviv raked in a record $19.2 billion from arms exports in 2025, a jump up from the $14.8 billion it made the previous year. Arms sales as political leverage As Seth Binder of the American Committee for Middle East Rights (ACMER) told RS, “arms deals are expensive and often create a long tail to negotiate, complete, and fulfill over the life of [a given] contract.” Over time, these contracts provide Israel a way to build relationships that other governments have strong incentives to preserve. Exports can “entrench relationships that constrain others' ability to hold [Israel] accountable,” Daniel Levy, the president of the U.S./Middle East Project (USMEP), said. A growing global demand for weapons is playing to Israel’s advantage. A case in point is Europe. Spurred by fears of Russia and U.S. pressure to increase defense spending, some European countries are buying Israeli weapons to supplement their fraught rearmament efforts. The purchases continue despite disquiet across the continent over Israel’s actions in the Middle East, which have led some European Union countries to pursue arms embargoes or suspend export licenses to Israel. Germany signed multi-billion euro deals for the Israeli-made Arrow-3 missile defense system, Heron drones, and Spike anti-tank missiles last year. Greece spent about $740 million on 36 Precise & Universal Launching System (PULS) rocket artillery systems in December. Romania signed a deal worth about $2.3 billion for Spyder air defense systems earlier this week and is now set to acquire its own version of Israel’s Iron Dome air defense system. Outside the EU, the value of U.K. arms- and ammunition-related imports from Israel skyrocketed from just $508,343 in 2020 to nearly $7.97 million in 2025 — a nearly 1,500% increase. A senior Israeli defense official told Reuters in early June that European countries are expected to order more air and missile defense systems soon. But depending on Israel for critical defense needs may prove risky. “A government that might otherwise respond to public demands for sanctions or arms embargoes [against Israel] now faces the prospect of degrading its own air defense…if it does so,” Levy told RS. Similar dynamics are playing out among Abraham Accords nations; Israeli exports to those countries jumped fivefold between 2023 and 2025. “No one has any illusions that Israel is popular right now in [the Abraham Accords] countries,” an Israeli diplomat told The Economist last fall. “But their governments have made long-term investments in their defense ties with Israel, and they’re not about to change course.” More broadly, continued prospects for arms sales turn Israel’s controversial military actions — in which Israeli defense technologies are being used against civilians — into a commercial selling point. As Omar Shakir, the executive director of DAWN, told AP last month, Israeli defense and technology companies have been “able to parlay the use of their products in Gaza to attract more business.” Israel's arms exports blitz: fueled by Washington Israel's weapons industry is booming in part because “the U.S. has long subsidized it,” Binder told RS. Israel receives Foreign Military Financing from Washington, which provides funds for acquiring American weapons equipment, training, and adjacent services. The support is even more direct through what is called Off-Shore Procurement (OSP), which Binder said allows Israel to “use a portion of its Foreign Military Financing provided by the United States to pay for [its own] arms.” Although OSP is set to phase out by 2028, Binder told RS that “Israel's arms industry has arguably established itself as a competitor” to America’s weapons sector through the program. Meanwhile, Israeli firms have gained a competitive edge, thanks to what former State Department official Josh Paul calls a “larcenous” approach toward U.S. intellectual property. “Many technologies developed by U.S. industry are [simply] re-developed and re-packaged by Israeli companies,” he told RS. American support is often evident in the export deals themselves, where, for example, the Arrow-3 system Germany bought from Israel was co-developed with the U.S., which helped fund its development. Because of Washington's role in the program, U.S. approval was required before the initial sale could proceed. Altogether, the International Trade Administration observed that U.S. assistance has “turned the Israeli military industry and technology sector into one of the largest exporters of military capabilities worldwide.” Currently, a series of congressional proposals under consideration — including one that Israeli Prime Minister Benjamin Netanyahu has endorsed as his “personal plan” — stands to give Israel’s defense sector a deeper foothold in the U.S. market. Indeed, section 219 (previously section 224) of the National Defense Authorization Act (NDAA) for FY 2027 would move to more closely integrate the U.S. and Israeli militaries. The provision would further incorporate Israeli technologies and companies into U.S. supply chains, likely creating more opportunities to sell its weapons. As Paul told RS, Israel being positioned “to become a supplier to the U.S. military is just a further example of [it] using [its arms] sector as a tool of influence.”
İsrail'in silah ihracatı artıyor, Washington'un desteği etkili oluyorAML reforms enter new phase with one clear regulator
Today marks a major step toward a smarter, more practical anti-money laundering system, with the Department of Internal Affairs becoming New Zealand’s single AML/CFT regulator, says Associate Justice Minister Nicole McKee. “Around 1,200 businesses will move under DIA’s supervision, bringing all of the approximately 6,100 reporting entities under one regulator. That means clearer guidance, more consistent oversight, and less confusion for businesses trying to do the right thing,” says Mrs McKee. “Businesses and their customers should not be buried in pointless paperwork when the real target is organised crime, fraudsters, and those moving dirty money through New Zealand. “DIA already has intelligence-led experience supervising casinos, money remitters, and other high-risk sectors. Since the single supervisor was announced in 2024, DIA has worked closely with the Financial Markets Authority and the Reserve Bank to ensure a coordinated and seamless transition. “With three reform Bills now passed into law and a final one still to come, the Government is cutting unnecessary compliance, reducing costs where the risk is low, and making the system easier to navigate. “The first of July also marks the beginning of a four-year programme to implement the new AML/CFT National Strategy 2026–2030 which sets out a vision of making it easier to do business and harder to commit crime.” An industry levy will be introduced to part-fund the reform programme in parallel with Crown funding. The new levy will provide better resourcing for the New Zealand Financial Intelligence Unit to improve intelligence sharing, DIA to enhance their supervision function, and for the Ministry of Justice to administer the regulatory system. The levy was designed in consultation with industry, will be payable from July 2027, and will be reviewed every three years. “These reforms will strengthen our ability to detect and disrupt the more than $1.6 billion laundered in New Zealand each year, protect access to global financial markets, and make the system far more workable for the businesses expected to comply with it,” says Mrs McKee. Notes to editors: Registered banks, non-bank deposit takers and firms operating in securities markets make up the 1,200 businesses transferring to DIA’s supervision. Levy decisions, including the Cabinet paper, Summary of Submissions and the Ministry’s response to submissions, will be proactively released once levy regulations are published.
Tourism Policy Statement sets sector direction
The Government is setting a clear pathway to grow tourism so that New Zealand businesses, workers and communities see benefits, Tourism and Hospitality Minister Louise Upston says. “As our second largest export earner, tourism is vital to growing our economy. Tourism supports jobs and businesses right across the country which helps our regions and communities to thrive. “The Tourism Policy Statement released today sets a clear direction for how central government, local government and industry will work together to set priorities, take action and respond to change,” Louise Upston says. “A deliberate, planned approach is essential to achieving our tourism growth goals and maintaining New Zealand’s international competitiveness. The Statement sets a long‑term direction to guide decisions on policy, investment, infrastructure and marketing across the tourism system. “It’s about making sure our foundations are solid, we continue to build the quality of our visitor experience so tourism delivers more value, more jobs, brilliant events and superb hospitality offerings in our communities. “This will help us achieve our ambitious goal of doubling the 2023 value of tourism exports by 2034. “We’re already making strong progress towards this goal, supported by investments in international marketing and major events, the introduction of a visa-waiver trial, and the promotion of regional tourism. “An example of this in action is our Regional Tourism Boost, which has encouraged more visitors to explore beyond the main centres and outside peak seasons. “I’m also pleased to announce today that $5 million will be available through round three of the Regional Tourism Boost. It will open to applications for campaigns to attract more international visitors to travel, stay and dine in New Zealand from Spring 2026 to early summer 2027. “Regional Tourism Boost is a great example of partnership between industry and government – the same collaborative approach that underpins the Tourism Policy Statement. “By working together, we can create a tourism system that reflects the best of who we are and delivers real value for New Zealanders across the country,” Louise Upston says. Notes for Editors The Tourism Policy Statement can be found here. The Regional Tourism Boost Round 3 is a contestable process providing $5 million to attract more international visitors. Round 3 funding is made up of $2 million from the International Visitor Levy and a $3 million reallocation of funding from the $70 million Major Events and Tourism Package, announced in September 2025. Round three will prioritise campaigns targeting the Australian, Chinese and North American markets. Previous campaigns have had a positive impact on international visitor arrivals and dispersals. This month’s Stats NZ data show 288,500 international visitors came to New Zealand in April 2026 – up 8 per cent on the same period last year, and 94 per cent of pre-pandemic levels.
Yeni Zelanda, turizm politikası beyanıyla sektöre yön veriyorKP cabinet approves over Rs5bn for Tirah displaced people
PESHAWAR: The Khyber Pakhtunkhwa cabinet on Monday approved release of an amount of over Rs5 billion for the internally displaced persons of Tirah area in Khyber tribal district. The cabinet meeting was chaired by Chief Minister Sohail Afridi and attended by the ministers, chief secretary and administrative secretaries. Information minister Shafi Jan told reporters here that the cabinet approved the release of additional funds amounting to Rs5.499 billion to provide compensation to 6,900 additional verified internally displaced families from Tirah. He said that the approved funds would also cover the payment of the monthly food support allowance to eligible families in accordance with their prescribed entitlements. Okays law amendments to strengthen Health Care Commission; establishment of medical college in Khyber According to him, the cabinet also approved an amendment to Schedule-IV of the KP Letters of Administration and Succession Certificates Rules, 2021, granting a complete waiver of all prescribed fees for obtaining letters of administration and succession certificates by the legal heirs of martyrs. “The exemption will apply to the families of martyrs of the Armed Forces, Police, and Paramilitary Forces, as well as civil servants who embraced martyrdom while performing official duties and civilians martyred in armed conflict or terrorist incidents.” Mr Jan said that the cabinet also approved the formation of the Debt Management Committee under Section 11(4) of the KP Fiscal Responsibility and Debt Management Act, 2022, to formulate policies for the effective functioning of the Debt Management Unit in accordance with the provisions of the Act. He said the KP Public Resources for Inclusive Development Programme was also approved with a financing envelope of $200 million. The programme will introduce reforms in revenue mobilisation, improve the efficiency and prioritisation of public expenditures and strengthen the province’s fiscal and service delivery data ecosystem, according to him. Also, the cabinet approved the allocation of Rs30 million for engaging the services of a law firm or private legal counsel to pursue the province’s case relating to the National Finance Commission before the competent constitutional forum. The minister said the cabinet, recognising that the matter involves a continuous and long-term legal process, authorised the finance department to independently select and engage law firms or private legal counsel, as and when required, and process all contractual obligations at the departmental level to ensure timely action and avoid procedural delays. He said the decision was meant to strengthen the province’s legal efforts to secure its constitutional and financial rights under the NFC Award through all available legal avenues. The cabinet approved a set of amendments to the Khyber Pakhtunkhwa Health Care Commission Act, 2015, aimed at enhancing the effectiveness of the legislation and strengthening the institutional role of the Health Care Commission. The proposed amendments are intended to improve the Commission’s regulatory framework, enabling it to more effectively oversee healthcare standards and ensure the delivery of quality health services across the province. It also approved the establishment of a medical college in the existing building of the Regional Professional Development Centre (Male) in Jamrud area of Khyber tribal district. The minister said the cabinet, on the recommendations of its standing committee, approved the extension of the Revised Shuhada Package, 2025, currently admissible to police personnel, to the personnel of the Narcotics Control Wing of the excise, taxation and narcotics control department. He said the package would become applicable upon the formal notification of the Narcotics Control Wing as a uniformed force. “The decision aims to ensure that personnel serving in frontline narcotics enforcement receive the same welfare and compensation benefits as other uniformed law enforcement personnel in recognition of the risks associated with their duties.” Mr Jan said the cabinet directed the law, excise, agriculture and finance departments to jointly examine and submit proposals on alternative levy mechanisms, including the imposition of an agricultural cess or the introduction of an appropriate regulatory framework, consistent with the province’s legislative competence, for the government’s consideration. He said that the forum also approved a mechanism for the purity testing and valuation of gold recovered by NAB in the Kohistan financial scandal through a registered assayer. The minister said that while implementing the previously approved framework for the receipt, custody, valuation and disposal of Kohistan scandal assets, it became necessary to determine the precise operational procedure followed by the Federal authorities for handling recovered material described as “said to be gold” prior to its monetisation. He said the administration department initiated consultations with the State Bank of Pakistan and Pakistan Mint, Lahore, to ensure that the valuation and disposal process is carried out in accordance with established standards and procedures. Chief Minister Sohail Afridi told the cabinet that he had reviewed the complaints received through the Chief Minister’s Complaint Cell about the recent recruitment of 2,400 doctors. He said that every citizen had the right to have their concerns heard and that it was the government’s responsibility to address genuine grievances while ensuring that all applicants are provided a fair and transparent explanation of the recruitment process. Mr Afridi noted that the majority of complaints related to administrative matters, including the correction of applicants’ mobile numbers, names and Pakistan Medical and Dental Council registration details. According to him, around 21 complaints pertained to merit. Following a comprehensive review, the recruitment process was found to be compliant with the prescribed criteria though some applicants were not fully aware of the applicable eligibility and selection framework. The chief minister announced that the Complaint Cell would continue to receive representations from candidates who might have been unable to submit their grievances within the prescribed timeframe. He encouraged any applicant possessing credible evidence of unfair treatment to approach the government, assuring that every complaint would be examined impartially and on merit. Mr Afridi said that if any genuine case of injustice was established, the relevant candidate would be appropriately accommodated even after completion of the ongoing recruitment process. He said the province continued to face a shortage of medical professionals and that no deserving candidate should be overlooked. The chief minister directed the health department to expedite the deployment of the newly recruited doctors to ensure improved healthcare services are delivered to the people without delay. He said in line with the vision of PTI founder Imran Khan, the provincial government was firmly committed to transparency, merit and a zero-tolerance policy against corruption. “All decisions of the government will continue to be guided by these fundamental principles,” he said. Published in Dawn, June 30th, 2026
Oil marketing firm executives booked for ‘multi-billion rupee customs fraud’ in Karachi
KARACHI: The Federal Investigation Agency (FIA) has booked several top officials of an oil marketing company in a case pertaining to their alleged involvement in the evasion of Customs duties, taxes and petroleum levy worth billions of rupees by clandestinely removing thousands of metric tons of imported oil without paying government dues. The Corporate Crime Circle booked the CEO of M/s Gas & Oil Pakistan Limited (GO Petroleum); CEO of M/s Terminal One Limited (TOL); the terminal manager; a signatory of GO Petroleum’s Customs-bonded warehouse at Mehmoodkot, Muzaffargarh; senior manager of the warehouse; and other relevant officers and officials of the Collectorates of Customs Appraisement, Port Qasim, Faisalabad and Lahore-East. The case was registered under Section 156 of the Customs Act, 1969, read with Sections 409, 420, 468, 471, 109 and 34 of the Pakistan Penal Code (PPC) read with Section 5(2) of the Prevention of Corruption Act, 1947. A spokesperson for GO Petroleum told Dawn that it had paid all due customs duties, taxes, levies and other statutory liabilities, adding that the company was fully cooperating with authorities. FIA alleges bonded petroleum products were removed by GO Petroleum and sold without payment of Customs duties, taxes and petroleum levy; company maintains it is current on all payments, fully cooperating The FIR stated that the FIA had initiated an inquiry, which revealed that imported petroleum products deposited in a Customs-bonded warehouse (bonded POL terminal) are non-duty-paid and cannot be removed, dispatched, sold or consumed except upon the filing of an ex-bond (EB) Goods Declaration (GD) and payment of Customs duties, taxes, petroleum levy and climate support levy. Any removal without fulfilling these requirements constitutes an offence. The FIA said the alleged fraud first surfaced at M/s TOL, a Customs-licensed bonded terminal at Port Muhammad Bin Qasim (PMBQ). According to the FIA, Go Petroleum imported HOBC (also known as RON 95) via the vessel PS Hamburg into TOL’s bonded tanks and sold approximately 4,744 metric tons of the bonded HOBC before filing its first declaration, thereby allegedly evading Customs duties, taxes, petroleum levy and other applicable charges. The FIA said these findings were corroborated by a forensic analysis/extraction report from the laptop of TOL’s terminal manager. The investigation agency said an identical modus operandi was independently established during a physical inspection conducted on 22-06-2026 at Go Petroleum’s own Customs-bonded terminal at Mehmoodkot, Muzaffargarh. It stated that a reconciliation of Customs/WeBOC records for the relevant period established that 39,121 metric tons of bonded (non-duty-paid) PMG should have been physically present at the Mehmoodkot terminal as of 22-06-2026. However, no goods declarations had been filed for that quantity, which itself exceeded the terminal’s entire licensed storage capacity of 26,072 metric tons, making such a stock position physically impossible. During a joint inspection conducted by the FIA, the Oil and Gas Regulatory Authority (Ogra) and Customs on 22-06-2026, only 7,039.7 metric tons were found in the tanks. According to the FIA, this established that approximately 32,081 metric tons of bonded PMG had been clandestinely removed as of 22-06-2026. However, no goods declarations had been filed for that quantity, which itself exceeded the terminal’s entire licensed storage capacity of 26,072 metric tons, making such a stock position physically impossible. During a joint inspection conducted by the FIA, the Oil and Gas Regulatory Authority (Ogra) and Customs on 22-06-2026, only 7,039.7 metric tons were found in the tanks. According to the FIA, this established that approximately 32,081 metric tons of bonded PMG had been clandestinely removed from the Customs-bonded warehouse. The FIA further alleged that during the joint inspection of PMG stock at M/s Terminal One Limited (TOL), PMBQ Karachi, on 22-06-2026, the terminal manager wilfully obstructed the verification process, refused to provide bonded stock data, withheld dip-calibration charts and, acting on the owner’s instructions, refused to sign the joint stock proforma while allegedly threatening the inspecting officials, thereby obstructing the lawful inquiry. According to the FIA, the two instances were not isolated but represented a countrywide pattern involving Go Petroleum. ‘All dues paid’ Responding to the allegations regarding non-payment of customs duties and taxes on imported petroleum products, the Gas & Oil Pakistan Limited (GO) has clarified that it remains fully committed to compliance with all applicable laws, regulatory requirements and prescribed tax payment procedures. “Based on the company’s records, GO remains current in the payment of customs duties, taxes, levies and other statutory liabilities that have become due and payable. The Company is extending its full cooperation to the relevant authorities and will continue to engage with all stakeholders in a transparent and responsible manner. Any matters raised by the authorities will be addressed through the appropriate legal and regulatory processes,” said a statement. Published in Dawn, June 30th, 2026
Karaçi'de akaryakıt şirketi yöneticilerine milyarlarca rupilik gümrük kaçakçılığı davasıDialogue only solution to AJK crisis, govt should avoid use of force: JI chief
ISLAMABAD: Jamaat-i-Islami Pakistan (JI) Emir Hafiz Naeemur Rehman on Monday said that meaningful negotiations were the only solution to the ongoing situation in Azad Jammu and Kashmir (AJK), urging the government to avoid the use of force and immediately engage with the proscribed Joint Awami Action Committee (JAAC). On June 5, the JAAC was declared a proscribed organisation by the regional government and placed under the First Schedule of the region’s anti-terrorism act (ATA). Addressing a press conference in Islamabad, Rehman said JI had accepted the responsibility of mediation and was playing its role in restoring trust between the government and the committee to prevent “bloodshed and unrest”. JI AJK Emir Dr Mushtaq Khan, former AJK emir Dr Khalid Mahmood, JI Deputy Secretary General Syed Farasat Shah and Islamabad Emir Nasrullah Randhawa were also present on the occasion. “JAAC has expressed complete confidence in Jamaat-i-Islami and postponed its long march, sending a positive message,” he said. He urged the government to also act with seriousness and begin negotiations to resolve the legitimate demands of the people. “The AJK situation should not be allowed to reach a point where India could exploit it for propaganda against Pakistan and the Kashmir cause,” the JI emir said. “Jamaat-i-Islami’s mediation with the JAAC is within the constitutional and national framework of Pakistan and the Kashmir issue. As long as this framework remains intact, every possible effort will be made to resolve the matter,” he added. Rejecting the impression that the situation had reached a “point of no return,” Rehman said the door for negotiations was still open. “We do not agree with the government’s position that the situation has gone beyond control. Dialogue is still possible, and Jamaat-e-Islami is ready to play its role.” He said JI had been trying from the very beginning to ensure a peaceful resolution of the AJK issue. Following the acceptance of its mediation offer, the party leadership decided to accelerate reconciliation efforts. He added that JI leaders in AJK had remained in contact with different stakeholders. “Dr Mahmood held several meetings with JAAC representatives, during which the committee expressed confidence in Jamaat-i-Islami’s efforts and also shared details of its demands,” he said. Rehman said violence, bloodshed and the use of state force could not be supported under any circumstances. “No message should go out from AJK that benefits Pakistan’s enemies,” he said. He said India was already committing serious human rights violations in occupied Kashmir through killings, use of pellet guns and imprisonment of the Kashmiri leadership. “Pakistan should not make any mistake on the internal front that gives the enemy a diplomatic advantage,” JI leader added. Clarifying JI’s position, Rehman said the party was not engaged in political point-scoring. “Our priority is Pakistan, Kashmir and the Kashmir cause.” The JI chief said public confidence in AJK’s political leadership had weakened due to repeated changes in political loyalties, power politics and vested interests, which had harmed the democratic process and contributed to public protests. He cautioned against elements trying to exploit the situation and appealed to AJK youth not to become part of any anti-Pakistan narrative. “Pakistan is the country of Kashmiris, and its educational institutions, offices and resources are open to them. They should avoid falling into the hands of the enemy,” he said. The JI emir also urged the federal government, relevant institutions and authorities to avoid any steps that could create hatred, unrest or instability. He also demanded that the Punjab and federal governments ensure an uninterrupted supply of essential goods to AJK, saying restrictions would only increase difficulties for ordinary citizens. Regarding his expected meeting with Prime Minister Shehbaz Sharif, Rehman said he wanted to meet the premier and, if contacted by the government, JI would not seek anything for itself. “Instead, it will present national issues, including a peaceful solution to the Kashmir situation, resolution of public grievances, reduction in petroleum levy, lower electricity and gas prices, action against IPPs, employment and education opportunities for youth, and relief from IMF-related pressures.” On AJK elections, he said they should be held on time. However, if negotiations succeeded and normalcy returned, the elections would take place in a more peaceful and acceptable environment; otherwise, questions could be raised over their outcome. He said the AJK government must also play its role in the negotiation process. Although public confidence in it had been affected, it remained the constitutional government, and any final agreement would involve it along with the federal government. Responding to questions about strong statements by some JAAC leaders, Rehman said JI had made it clear that any anti-Pakistan or unacceptable narrative would not be tolerated. He added that Dr Mahmood had conveyed the same message to the JAAC leadership, and a positive change had been witnessed in their tone and position. The JI emir also criticised the Kashmir Committee, saying it had failed in the past and present to play an effective role in accordance with the requirements of the Kashmir issue. However, he welcomed any effort by the committee to consult JI. Calling for broader democratic reforms, he stressed the need for “proportional representation, an independent election commission and a modern electoral system in both Pakistan and AJK to restore public trust in democracy”.
Man murdered two London women in predatory sexual attacks, court told
Trial begins of Simon Levy, who denies killing Carmenza Valencia-Trujillo and Sheryl Wilkins and attacking third woman A man murdered two women and left a third for dead in a series of predatory sexual attacks over an eight-month period, a jury has been told. Simon Levy, 40, denies killing Carmenza Valencia-Trujillo, 53, on 17 March 2025 in south-east London and Sheryl Wilkins, 39, on 24 August 2025 in Tottenham, north London. He also denies attacking a third woman, aged 35 at the time, on 21 January 2025, also in Tottenham. Continue reading...
Minister says govt not giving preference to any sector after petrol, diesel prices kept unchanged
Petroleum Minister Ali Pervaiz Malik on Saturday dismissed the notion that the government was “giving preference” to one sector or imposing an undue burden on another after it kept petrol and diesel prices unchanged “till further orders”. On Friday night, the government on Friday kept petrol and high-speed diesel (HSD) prices unchanged at Rs299.50 per litre and Rs311.47 per litre, respectively. In a post on the social media platform X, the petroleum minister shared a table of international oil prices over the past week. According to the number he shared, petrol prices ranged between $90.36 and $98.35 per barrel during June 22-26, while HSD traded between $104.79 and $109.09 per barrel. “The government is neither giving preference to any sector nor imposing any undue burden on the other,” he said. “The government is committed, within the scope of its international obligations, to pass on any benefit to the consumers,” he added. Highlighting the government’s record on fuel prices, Malik said Prime Minister Shehbaz Sharif had so far reduced the price of diesel and petrol by Rs200 per litre and Rs155 per litre, respectively. The minister’s statement comes after criticism was directed at the government for not reducing the prices of petroleum products. “Despite international oil prices at the pre-war level, in Pakistan petrol price still remains Rs 300 per litre. Why not pass the benefit to people?” asked former Sindh governor Mohammad Zubair. PTI’s Haleem Adil Sheikh said that fuel prices had “fallen across much of the world”. “Yet Pakistan’s corrupt government has once again refused to pass any relief on to the public. After previously hiking fuel prices by Rs137/litre on stock purchased at much lower rates — handing massive windfall profits to oil marketing companies and petrol pumps—it has repeated the same act. The people pay, while the corrupt protect vested interests,” he said. “Oil companies, oil tanker owners, big dealers have won. The public has lost,” said journalist Zahid Gishkori about the decision to keep prices unchanged. Last week, Prime Minister Shehbaz Sharif announced a Rs74 reduction in petrol prices and a Rs67 cut in high-speed diesel (HSD) prices as the government passed on the benefit of declining international oil prices. Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators. As the energy crunch from the US-Iran war due to the Strait of Hormuz blockade hit the global markets, the government began revising petroleum prices every week on Friday night. Fuel prices reached their peak on April 3 when the government hiked the petrol price by Rs137.24 per litre and the HSD price by Rs184.49, taking them to Rs458.4 and Rs520.35 per litre, respectively. Amid backlash over the unprecedented hikes, PM Shehbaz had brought the petrol price down to Rs378 per litre within 24 hours by slashing the petroleum levy by Rs80 per litre.
Govt keeps petrol, diesel prices unchanged for next week
The government on Friday kept petrol and high-speed diesel (HSD) prices unchanged at Rs299.5 per litre and Rs311.47 per litre respectively, for the coming fortnight This decision was announced in a notification issued by the Petroleum Division. Last week, Prime Minister Shehbaz Sharif announced a Rs74 reduction in petrol prices and a Rs67 cut in high-speed diesel (HSD) prices as the government passws on the benefit of declining international oil prices. Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators. As the energy crunch from the US-Iran war due to the Strait of Hormuz blockade hit the global markets, the government began revising petroleum prices every week on Friday night. In the first wartime revision on March 6, the government hiked petrol and diesel prices by Rs55 per litre — a move slammed as an “inflation bomb”. That raised the ex-depot HSD rate to Rs335.86 per litre and the ex-depot petrol price to Rs321.17 per litre. Fuel prices reached their peak on April 3 when the government hiked the petrol price by Rs137.24 per litre and the HSD price by Rs184.49, taking them to Rs458.4 and Rs520.35 per litre, respectively. Amid backlash over the unprecedented hikes, PM Shehbaz had brought the petrol price down to Rs378 per litre within 24 hours by slashing the petroleum levy by Rs80 per litre.
- Siyasi26 Haz
Gavin Newsom urges a national 'billionaires' tax' while fighting one in California
California governor calls for national tax on super-wealthy and suggests the US should own a stake in AI companies US politics live – latest updates California’s governor, Gavin Newsom, called for a national “billionaires tax” on Friday as he fights a ballot measure targeting the ultra-wealthy in his home state. Newsom, who is expected to run for president in 2028, published his proposal the day after California officials certified a ballot proposal to levy a one-time 5% tax on residents worth more than $1bn. The proposal, called the California Billionaire Tax Act, was brought by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW) and would fund the state’s healthcare, education and food assistance programs. Continue reading...
- Diplomatik26 Haz
California’s proposed billionaire tax: what you need to know
Plan to levy 5% tax on California billionaires championed by progressives – but state’s super rich are forcefully opposed Full story: California billionaire tax heads to ballot The proposed billionaire tax in California is officially heading to voters’ ballots in November. After getting more than double the necessary signatures to qualify, the secretary of state certified the ballot measure late on Thursday. The confirmation came after backroom dealing didn’t pan out between California’s governor, Gavin Newsom, who opposes the proposal, and the labor union backing it. Continue reading...
BUDGET 2026-27: Finance Bill sails through NA
• Proposed FED on mineral water, hydration drinks with low sugar content scrapped • Local airlines get sales tax break on import of aircraft parts • Excise duty on EVs to be linked to their dollar value; zero for cars valued under $75,000 • Traders with turnover of up to Rs200m may opt out of fixed tax regime • Tax exemption granted for income derived from private equity, venture capital funds ISLAMABAD : After the opposition walked out of the lower house, the National Assembly on Tuesday passed the Finance Bill 2026, while supplementary grants for the outgoing fiscal year will be tabled for approval today (Wednesday). After all seven amendments moved by opposition members were rejected by a majority vote, Finance Minister Muhammad Aurangzeb moved the Finance Bill, including the amendments suggested by the National Assembly Standing Committee on Finance. Some of the key changes made to the bill since its introduction in parliament include the abolition of duties on mineral water or hydration drinks, sales tax exemption for local airlines on the import or lease of aircrafts, and an amendment to the duties imposed on electric cars or SUVs imported into the country. The government has done away with the proposed 20 per cent Federal Excise Duty (FED) on mineral waters, aerated waters, hydration drinks or electrolyte beverages with artificial sweetener or sugar content below 5g/100 ml. Previously, all kinds of mineral waters, aerated waters, hydration drinks or electrolyte beverages were subjected to 20pc FED, irrespective of the artificial sweetener or sugar content. The updated finance bill also included permission for all airlines operating in the country to avail sales tax exemption on the import or lease of aircrafts and their parts from July 1, 2027, which was only granted to PIA in the original bill, tabled on June 12. EVs and SUVs The amended Finance Bill 2026 also showed that excise duty on imported electric cars would be calculated based on their values to be calculated US dollars. No FED will be applicable on electric cars and electric SUVs, imported in Completely Built-Up (CBU) condition with a value not exceeding $75,000, as determined under section 25 of the Customs Act, 1969. Meanwhile, 30pc excise duty would be applicable on electric cars and electric SUVs valued between $75,000 and $110,000, while those whose value exceeds $110,000 would face 40pc excise duty. Separately, the Device Identification, Registration and Blocking System (DIRBS) tax on imported phones will now be paid in instalments, but all instalments have to be paid before the end of the financial year in which the import is made. The amended Finance Bill 2026 approved by the NA also revealed that persons having turnover up to Rs200 million may opt out of the fixed tax regime, subject to a final and irrevocable certificate filed with the Tax Commissioner before filing their returns for the tax year 2027. As per the amended bill, the minimum rate of value addition tax shall be one percent in the case of import of coal, subject to the conditions that such imported coal is exclusively and directly supplied to Independent Power Producers. Some clauses relating to the Climate Support Levy in the original Finance Bill have been dropped through amendments proposed in the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance. Tax exemption Under the amended bill, income tax exemptions would be available on any income derived by a private equity and venture capital fund registered under Private Funds Regulations, 2015. This will be applicable where not less than 90pc of the accounting income of that year, as reduced by accumulated losses and unrealised capital gains, is distributed by the private equity and venture capital fund to its unit or certificate holders or shareholders. This exemption will not be available if the private equity and venture capital fund is established to acquire a public listed company, whose status has not been changed to private limited company on the acquisition. In addition, the amended bill says that for steel melters, re-rollers and composite units, tax will be collected on the basis of per unit electricity consumed, including use of electricity produced by a captive power plant or through any other alternative source of energy at the rate or rates as prescribed by FBR. The tax so collected shall be an adjustable input tax, to be claimed in the return of the month in which such payment is made. The per unit sales tax shall be determined by the FBR on the basis of minimum notified price and the industrial benchmarks of consumption of electricity against per ton production of steel products. Published in Dawn, June 24th, 2026
Pakistan'da iklim bütçesi kesintisi: Şok edici düşüşe Rehman'dan sert tepkiA budget to forget
STATE budgets mustn’t mirror boring finance ledgers that merely balance revenues and outlays. They must embody strong strategy scripts that show vividly how the state will drive progress. But reading ours is painful as one goes through over 100 unrelated petty measures that don’t add up to a gripping vision for progress. Clearly, progress isn’t a goal to pursue for our elite hybrid rulers but a prospect to fear, as it harms their dubious wealth and power. So, the new status quo federal budget makes the rich richer, the poor poorer, and the IMF and big lobbies happier. It defers yet again the state reforms and societal restructuring we urgently need to thrive. Our rulers dread them and so fail on most key aims of good budgets. The document meets the fiscal balance aim with a deficit target of 3.6 per cent of GDP (against 7-8pc till recently) but via heist and spin. It expropriates surpluses from meek provinces to force them to cut spending by nearly 20pc, mainly uplift funds. This effectively cuts their NFC share from 57.5pc to 46pc and the share in total federal funds to only 34pc if we add federal non-tax funds, which are raised mostly in provinces. This covert heist, despite the 4pc cut in debt outlays from last year because of large interest rate cuts, was due to a fall in State Bank profits too, a rise in defence outlays after the 2025 war with India, tax relief, and the aim to avoid new taxes. Some had hopes that growing Saudi defence ties would help with rising defence outlays. Rulers could also raise taxes on undertaxed sectors and cut waste, subsidies and state units’ losses, instead. As these steps hurt the elites, those in power cut uplift funds at all levels. Had these funds been used well there could have been less poverty and more progress. The total revenue aim is part spin as we usually miss it. So, we may have a mini-budget taxing mainly the masses or more cuts in uplift funds. There is no real increase in the revenue aim from last year over inflation, and so the tax-to-GDP ratio remains near 11pc, which is low even regionally. So, the budget fails on the fiscal expansion and devolution aims. On the fiscal equity aim, the ratio of direct and indirect (that harm the poor most) taxes is 49:51pc against 37:63pc just three years ago. But tax progressivity rose much less because new direct taxes fell on already overtaxed sectors and persons and not undertaxed retail and other sectors. The former now get tax relief but by cutting uplift outlays. Experts think the new retail tax scheme may fail like many past ones, given missing political will. Indirect taxes and the petroleum levy, which is an indirect tax too, still rose by Rs3 trillion in three years. So, their burden on the poor keeps rising. Clearly, progress isn’t a goal to pursue for our rulers. To drive economic progress, industrial and export sectors will receive — besides the ongoing interest rate cuts — tariff cuts on raw materials, tax relief and SME facilitation measures. But some of them yielded few gains earlier while even new measures may fail if the rollout remains weak. Industrial policy measures — such as special zones and directed credit, industrial upgrading funds and R&D support — that had helped the Asian Tigers the most are missing. Support for agriculture, despite its many problems, and IT, despite its huge potential, is weak. So, jobs and export revenue increases remain uncertain. On the social progress goal, health and education spending ratios to GDP remain flat from last year and much lower than those of most Asian peers. The BISP budget rises in real terms but may not dent rising poverty that now affects over 40pc of the people under the new World Bank count. Raising poverty outlays a bit when structural drivers are rising due to state policies is like throwing a band-aid at a growing, self-inflicted wound. Climate change is a huge threat for the poor but a minor priority in the budget, with no new programmes. Finally, the document lists many measures for budget efficiency and transparency in tax collection. But many of them have had limited success previously, while new measures may fail due to weak rollout. Oddly, there is no attempt to improve the expenditure side across the four main heads: debt, defence, development and delivery. So, the budget maintains the status quo while giving the illusion of reform and fails on almost all aims. It’s a budget to forget in terms of its banal details but not a budget to forgive for its overall lack of ambition, elite bias and assault on provincial autonomy. The writer holds a PhD in political economy from the University of California, Berkeley, and has 25 years of grassroots to senior-level experience across 50 countries. murtazaniaz@yahoo.com X: @NiazMurtaza2 Published in Dawn, June 23rd, 2026
Stratejiden yoksun bütçe: yüzlerce küçük tedbir, ilerleme vizyonu yokGovt urged to integrate climate strategies into budgetary planning
ISLAMABAD: Parliamentarians and policy experts on Monday urged the government to immediately integrate climate strategies into national budgetary planning to counter risks crippling Pakistan’s economic growth and food security. Speaking at a parliamentary consultation on ‘Mainstreaming climate considerations in Pakistan’s economic and budgetary planning’, they warned that environmental shocks threaten to permanently erase development gains unless green budgeting tools are adopted. The consultation was organised by Sustainable Development Policy Institute (SDPI) and the embassy of Denmark. Danish Ambassador to Pakistan Maja Mortensen said climate and environmental concerns could no longer be addressed in isolation and must become part of mainstream economic and political decision-making. “The diagnosis of the problem already exists; the challenge now is how to translate it into policy action,” she said, describing the consultation as timely in the wake of the federal budget process. She said climate resilience and economic development are complementary rather than competing objectives. She also offered Danish experience and technical cooperation in integrating climate priorities into development planning. SDPI Executive Director Dr Abid Qaiyum Suleri said climate considerations must be reflected in both federal and provincial finance bills, as Pakistan’s budget framework is being shaped under the International Monetary Fund’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes. The IMF-supported reforms had encouraged greater allocations for disaster risk reduction, water conservation and renewable energy projects, he said, adding some of these commitments had already been reflected in federal and provincial budgets. Dr Suleri, however, warned that climate finance was shrinking globally and nationally despite rising climate-related challenges. PPP MNA Mirza Ikhtiar Baig said Pakistan remained among the countries most affected by climate change despite contributing minimally to global emissions. Referring to the aftermath of the 2022 floods, he regretted that much of the international financial support pledged for reconstruction had not been materialised so far. He noted that Pakistan had secured access to climate-related financing under the IMF’s Resilience and Sustainability Facility. PPP MNA Asad Alam Niazi said climate change had emerged as a national security challenge and there was still inadequate public awareness about its economic and social consequences. He noted that erratic weather patterns and climate-induced disasters were affecting agriculture, livelihoods and economic productivity, while government allocations for climate action remained insufficient. SDPI Deputy Executive Director (Research) Dr Sajid Amin Javed said climate change is causing annual losses equivalent to around 1.53 per cent of global GDP which could rise dramatically in coming decades if mitigation and adaptation measures were delayed. “Climate change should not be treated as a separate budgetary tag; it must become a core pillar of fiscal and economic planning,” he said, adding that employment, poverty, inequality, food security and economic growth were now directly linked with climate resilience. Head of SDPI’s Energy Unit Engineer Ubaidur Rehman Zia highlighted the importance of embedding climate considerations into fiscal and economic planning. SDPI’s Head of Ecological Sustainability and Circular Economy Zainab Naeem said climate-related allocations in the federal budget 2026-27 had declined by around 70 per cent compared to the previous year. She noted that while approximately Rs2,026 billion had been tagged as green-linked revenues, significant gaps remained in climate finance accountability and reporting mechanisms. Former Managing Director of the Private Power and Infrastructure Board (PPIB) Shah Jahan Mirza observed that the petroleum development levy had increasingly become a tool for managing budget deficits. He urged regulators to formulate climate risk guidelines and called for a shift from reactive responses toward proactive planning and budgetary allocations for climate adaptation. Published in Dawn, June 23rd, 2026
Hafiz Naeem criticises PPP over lack of implementation on minimum wage
Jamaat chief Hafiz Naeemur Rehman speaks at the press confernce.—Dawn KARACHI: Jamaat-i-Islami (JI) chief Hafiz Naeem ur Rehman on Monday questioned Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari over the minimum wage amount and its implementation, arguing that most families cannot meet their basic needs on a monthly income of Rs43,000. Addressing a press conference at JI Karachi headquarters Idara Noor-i-Haq, he also said that while the Sindh government has fixed the minimum wage at Rs43,000, the public should be informed about the actual earnings of labourers working on the Bhutto family’s estates. Farm workers, he said, are given only a small share of grain by the landlords and are kept in conditions resembling servitude. He also said the PPP maintained a feudal culture within the party, adding that hereditary privilege outweighed the contributions of long-serving party workers. The JI chief also criticised the federal budget, saying it failed to provide meaningful relief to private-sector employees, labourers and ordinary citizens. He noted that while government employees had received a limited salary increase, parliamentarians’ salaries and benefits had already been raised by 300 to 400 per cent. Says most families can’t meet basic needs even on Rs43,000 per month He further expressed concern over the lack of an increase in pensions for Employees’ Old-Age Benefits Institution (EOBI) beneficiaries and called on media organisations to ensure fair wages and rights for their workers. Hafiz Naeem said the petroleum levy had become a heavy burden on motorcycle riders and ordinary citizens, many of whom do not earn enough to pay income tax. He demanded that petrol prices be fixed at Rs225 per litre, the petroleum levy be abolished immediately, and heavy taxes in electricity bills and agreements with Independent Power Producers (IPPs) be reviewed and terminated. Stressing that the JI believes in peaceful political struggle and democratic resistance, he announced that the party would soon call on the youth across the country to stage protests against the levy by switching off their motorcycles and other vehicles on major highways and roads. Commenting on national issues, he said the situation in Azad Jammu and Kashmir should be resolved through dialogue rather than force, and urged authorities to fulfil their constitutional responsibilities. He asked the action committee in Azad Kashmir to purge their ranks and files of miscreants and continue their rights movement under the ambit of the Constitution of Pakistan. He also called on the government to secure the recovery of Priya Kumari and other Pakistani citizens reportedly held hostage by pirates in Somalia. The JI leader criticised alleged interference in political processes, referring to controversies surrounding election management and results. He accused the PPP of undermining democracy and reiterated the party’s claim that JI’s mandate in the Karachi local government elections had been usurped. Published in Dawn, June 23rd , 2026
Public transport fares reduced by 12-18pc in Rawalpindi region
RAWALPINDI: The Regional Transport Authority (RTA) on Saturday announced a 12 to 18 per cent reduction in public and goods transport fares following a sharp decline in petroleum prices. Private bus operators also announced substantial cuts in fares for intercity routes. According to officials, the decision was made during a meeting between the RTA secretary and representatives of transport unions. It was agreed that the benefit of an approximately 20pc reduction in fuel prices would be passed on to commuters. Under the revised fare structure, fares for diesel-powered air-conditioned passenger vehicles have been reduced by 12pc, while those for diesel-powered non-AC vehicles and petrol-powered public transport have been cut by 15pc. Goods transport charges have been reduced by 18pc. Islamabad-Lahore bus fare drops to Rs3,080 after fuel price relief RTA Secretary Syed Asad Abbas Shirazi told Dawn that the revised fares would be implemented with immediate effect. He said directives had been issued for displaying updated fare lists at transport terminals and warned that strict action would be taken against transporters violating the new rates. The RTA secretary also urged citizens to report cases of overcharging by calling 1071. He said a complaint mechanism had been activated to record passenger grievances, and transporters had been instructed to comply with the new fare structure. A manager at a bus terminal in Faizabad told Dawn that the Islamabad-Lahore fare had been reduced to Rs3,080 for business class from Rs3,500, while the executive class fare had been lowered to Rs2,090 from Rs2,370. Similarly, the Islamabad-Multan business class fare has been reduced to Rs4,060 from Rs4,200, while the executive class fare on the route has been cut to Rs2,850 from Rs2,990. Prime Minister Shehbaz Sharif on Friday announced record cuts in fuel prices, reducing petrol by Rs74 per litre and high-speed diesel by Rs67 per litre for the week ending June 26. The prime minister said the government was immediately passing on the benefits of improved regional conditions and lower oil prices to the public. In doing so, the government took advantage of lower global prices while revising upward the rate of petroleum levy. The diesel price has come down from a peak of Rs520.35 recorded in the first week of April. It had started moving up from Rs275 per litre after the US-Israel attack on Iran on Feb 28. HSD is considered the most inf¬lationary fuel because of its extensive use in freight transportation. Likewise, the ex-depot rate of petrol was set at Rs299.78 per litre for the next week, compared with Rs373.78 at present, showing a decrease of Rs74, or 20pc. The petroleum levy on petrol was reduced to Rs80 from Rs107. This is the sixth consecutive weekly downward revision in the petrol rate, with a cumulative reduction of about Rs107 per litre. The petrol price had touched a peak of Rs459 per litre in the first week of April after starting its upward journey from a pre-war rate of Rs258 per litre. Published in Dawn, June 21st, 2026
BUDGET 2026-27 : NA panel questions climate levy
Naveed Qamar says climate funds must not be consumed without projects • Panel seeks stricter recovery of petroleum levies from OMCs • Islamabad token tax hike approved despite middle-class concerns ISLAMABAD: A parliamentary committee on Saturday raised concerns over the proposed carbon levy amid growing climate challenges, warned that reduced duties on scrap could create environmental risks and approved an increase in Islamabad’s token tax that is likely to affect middle-class vehicle owners. The National Assembly Standing Committee on Finance and Revenue reviewed the National Tariff Policy 2025-30 in detail, focusing on the phased reduction in import duties. Lawmakers asked tax authorities to redraft the proposed climate levy, stressing that it must be backed by a clear and defined objective. Commerce Secretary Jawad Paul briefed the committee, while Commerce Minister Jam Kamal remained absent. Since last year, the committee, chaired by MNA Naveed Qamar, has undertaken a clause-by-clause review of the Finance Bill. Last year, it held 12 meetings to review the legislation. The committee took up the petroleum levy and the newly introduced climate support levy amid concerns over Pakistan’s commitments under the IMF’s climate resilience framework. Members debated collection of the carbon support levy from citizens while criticising the absence of concrete climate projects. Finance Secretary Imdad Ullah Bosal informed the committee that an agreement had been signed with the IMF on climate resilience. Committee chairman Mr Qamar, however, criticised the government for collecting levies without initiating any concrete projects, warning that such practices would damage Pakistan’s image. “You take money from the IMF, impose levies, but start no projects,” he remarked. Officials briefed the committee on measures taken under the Resilience and Sustainability Facility programme. Mr Qamar countered that the government’s approach amounted to “lip service” on climate, with policies running contrary to stated commitments. “It is not acceptable that money comes from the IMF and is simply consumed without projects. This is a complete failure,” he said, pressing officials to present at least one climate-related initiative. PPP lawmaker Hina Rabbani Khar recalled that Pakistan was once recognised globally as a leader in climate support but had gradually lost that position. She urged the government to reclaim that standing, stressing that Pakistan remained among the countries most vulnerable to environmental impacts. The committee further scrutinised the proposed amendments to the Petroleum Products (Petroleum Levy) Ordinance, 1961, with particular focus on strengthening enforcement against defaulting oil marketing companies. Mr Qamar observed that oil marketing companies merely acted as collection agents for government levies and, therefore, could not be permitted to retain public funds. Expressing serious concern over delays in the recovery of petroleum levies, he directed the government to introduce a strict inbuilt enforcement mechanism providing for suspension of product supplies to any defaulting oil marketing company after 30 days of non-payment, while eliminating discretionary extensions or instalment facilities that weakened compliance. The chairman directed the Petroleum Division to redraft the proposed legislative amendments to explicitly eliminate instalment powers for defaulting oil marketing companies and institute immediate supply suspensions. Duty on scrap, waste The committee rejected a proposal to reduce customs duty on scrap and waste imports to 10pc. The duty will remain at 20pc. Commerce Secretary Jawad Paul told the committee that certain industries imported waste to produce fuel, but PPP lawmaker Nafisa Shah questioned why Pakistan, already burdened with domestic waste, could not generate fuel locally. MNA Arshad Abdullah Vohra noted that Karachi alone produced 25,000 tonnes of waste daily. The secretary responded that Pakistan lacked the machinery to convert waste into fuel, adding that most imported waste was used in furnaces. The committee also strongly opposed tariff concessions on environmentally hazardous imports such as shredded tyres, observing that such measures contradicted Pakistan’s climate commitments and undermined domestic recycling efforts. Islamabad token tax After detailed deliberations, the committee approved an increase in token tax on vehicles registered in Islamabad. Islamabad Deputy Commissioner Irfan Nawaz Memon briefed the committee that token tax had not been revised since 2019, while all provinces had already raised rates. He said a one-time fixed tax of Rs10,000 applied to cars up to 1,000cc, while for models manufactured before 2010 the rate would now be Rs20,000. For vehicles between 1,000cc and 1,300cc, token tax is currently 0.3pc of the invoice value, which will be adjusted to 0.25pc. This translates into Rs2,500 for pre-2010 models and Rs6,200 for post-2010 models, compared to Rs1,500 previously. For a car worth Rs2m, the tax will amount to Rs6,200. Committee members raised concerns over the burden on the middle class. MNA Sharmila Faruqi opposed the increase, arguing that most vehicle owners belonged to the middle class. Published in Dawn, June 21st, 2026
Pakistan'da iklim bütçesi kesintisi: Şok edici düşüşe Rehman'dan sert tepkiClimate action takes a backseat in federal budget FY27
• Allocations in all climate heads face cuts, except for disaster management • Experts call for transparency in climate spending, structural reforms ISLAMABAD: Climate allocations in the next fiscal year’s federal budget again fall short of putting Pakistan on a path towards a climate-smart future and inclusive growth despite the immediate risks it poses to the country. Except for disaster management finance, allocations in almost all climate categories have decreased compared to the outgoing financial year. The mitigation funds have been reduced from Rs603 billion to Rs124 billion, while adaptation money has been slashed from Rs85bn to Rs70bn. The “green component” of subsidies also experienced budget cuts, with the energy sector’s allocation declining to Rs423 billion from Rs529 billion. Similarly, the food, industry, transport, and agriculture sectors also faced cuts in the proposed budget presented by the government on June 12. Giovanni Maurice Pradipta, who is a policy adviser at global NGO Germanwatch, questioned this approach. “Given the country’s exposure to floods and heat waves, adaptation and resilience should receive at least as much attention as mitigation,” he said, adding it was equally important to prepare developing countries’ budgets and fiscal space for climate action, as it was to push for multilateral (global) solutions. Overall, the climate budget for the next year has shrunk except for the disaster spending. In addition to the newly introduced disaster tagging, the government earmarked Rs19bn under the head of reconstruction, while recovery and rehabilitation funds have risen from Rs1.1bn to Rs21 billion. Former climate change minister Malik Amin Aslam said the budget reflected a “suicidal story” as he questioned a decrease in climate allocations. “The funding or project stream for addressing climate adaptation issues, in particular heat stress, is totally missing. Two international reports [WB, University of Chicago] have rung the red warning bell for Pakistan, stating that one-third of global deaths due to heat stress could be in Pakistan, with nine districts becoming unlivable for humans by 2030,” said Mr Aslam. It may be noted that scientists have warned that floods and extreme heat will become routine events in future. One in three additional deaths due to heat will occur in Pakistan by 2050, according to a recent study. Experts believe that these concerning reports should have been reflected in the fiscal allocations, but there seems to be a general disregard for this looming disaster. The one good thing that came out of this budget is no new taxes on renewables, but energy expert Dr Khalid Waleed told Dawn that pre-budget speculations that the government would tax solar and batteries bumped the prices up nonetheless. Increase in revenue The climate spending has decreased, but revenues are on the rise. The government aims to collect Rs20bn in the EV adoption levy, a 100pc increase, and Rs50bn in the Climate Support Levy to control emissions. Will this be ringfenced? There is no clarity. Dr Abid Suleri, a member of Pakistan’s National Economic Advisory Council, said the money collected under the climate levy should be spent to address climate change instead of making it a part of a wider budget pool. For instance, Singapore and Sweden are already investing in climate solutions through carbon taxes, according to a 2025 report by ICMA International. However, the federal government used the petroleum development levy to bridge the fiscal deficit. According to climate policy expert Ali Tauqeer Sheikh, climate revenue instruments, such as the carbon tax, without a robust public transport network, merely act as exclusionary tools that punish the public in the name of climate action. The budget neglects essential investments in public health and green transit, he added. The former climate change minister agreed with the assessment. “The details of where this very focused funding is being spent are totally absent. Failing that, it is just another means of fleecing the public and throwing the collected funds in a black hole.” For Mr Sheikh, climate change must become the prism through which the government should view the entire economic and financial system, while calling out the government’s failure to prioritise ecosystem protection against slow-onset disasters, like droughts, Glofs and displacement. Climate-tagging and transparency Transparency surrounding climate finance equally concerned Dr Suleri, who welcomed the climate tagging exercise but questioned where the money was going. He suggested it needed to be transparent so that the public could know how much money was spent on climate action and where. The government needs to release quarterly or half-yearly reports and share the tangible outcomes of this exercise, he added. Malik Amin Aslam, meanwhile, criticised the climate ministry for taking a backseat in climate projects. He said since 2021, the PSDP funding for the ministry “has dropped 83pc (Rs14bn to Rs2.4bn) and even in this paltry sum, 95pc is going to only one project — Green Pakistan (10 Billion Tree Tsunami Project)”. Dr Suleri said though climate change was a federal framework, much of the climate action — water, urbanisation, flood management, and climate-smart agriculture — was led by the provinces. How climate action will pan out over the next year will depend on the provincial actions. For Mr Sheikh, it is time to move on from stopgap measures to “structural reforms” for genuinely inclusive and climate-smart development. “The state clings to the same exclusionary, non-reformist development model that caused the climate crisis in the first place,” he said. After two years of economic firefighting, it is evident that Pakistan has limited space for climate action, especially when international climate finance remains abysmally low despite commitments. But the country needs to mobilise domestic resources in addition to seeking international funding. Germanwatch’s Pradipta said Pakistan needed both more international climate finance and stronger domestic resource mobilisation. He gave the example of Indonesia’s green sukuk programme to raise money for green transition. “Pakistan can strengthen its own climate financing through better budget tagging, smarter subsidy allocation, and blended finance mechanisms with clear public oversight,” he added. Experts said the government can also renegotiate its coal and gas supply deals in light of reduced electricity demand from its household solar revolution to create fiscal space for action and also learn lessons from other Global South nations to make do with whatever little finance is available. Published in Dawn, June 21st, 2026
Pakistan'ın 2027 Bütçesi İklim Harcamalarını Kısıyor, Afet Yönetimi Hariç- Siyasi20 Haz
KP BUDGET 2026-27 : No funds for Centre sans Imran meeting, says Afridi
• CM unveils Rs2.17tr budget, says only PTI founder can authorise payments to federal govt • Claims funds for former tribal areas not released in full • No new taxes; salaries and pensions raised by 7pc • Property tax exemption for properties up to 5 marlas PESHAWAR: Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi on Friday said the provincial government will not give any grant to the federal government, as he presented a Rs2.17 trillion budget for fiscal year 2026-27, carrying a projected deficit of Rs48bn. Addressing the KP Assembly’s budget session, chaired by Speaker Babar Saleem Swati, the chief minister said any decision on providing additional funds to the federal government would be made by PTI founder Imran Khan. “We had made it clear during the National Economic Council (NEC) meeting that the decision regarding provision of additional funds to the federal government will be made by PTI founder Imran Khan — the last authority to approve it,” the chief minister told the house. He said that during the NEC meeting, he had pointed out that while all other political parties had been allowed meetings with their party heads, the KP government continued to be refused meetings with its leader. He said Mr Khan was being kept in isolation and solitary confinement, with all meetings —including with his wife, Bushra Bibi, and other family members — banned. The PTI leadership, he said, had demanded restoration of Mr Khan’s meetings with his family and lawyers, access to party leadership, and a weekly telephone call with his sons. “We will not sign any draft until we meet Mr Khan,” the chief minister warned. On the National Finance Commission (NFC) award, Mr Afridi said the prime minister had hinted at completing the process within the next six months. However, he said that if the NFC award was not announced within that period, the share of the merged areas would be included in KP’s share under the 7th NFC Award. He added that no progress had been made so far on the 11th NFC, which was aggravating the grievances of the merged areas. On the deficit, the chief minister said the province would bridge the Rs48bn shortfall through its own savings and would not resort to borrowing for the purpose. Receipts The budget projects the province’s total revenues at Rs2.12 trillion, against a total expenditure of Rs2.17 trillion for the next fiscal year. Federal transfers account for Rs1.5 trillion of the total revenue, including Rs1.24 trillion in federal tax assignment transfers. The province will also receive Rs149bn in lieu of 1 per cent of the divisible pool on the war on terror, Rs53.5bn in straight transfers, Rs24.597bn from the windfall levy on oil, Rs38.2bn in net hydel profit (NHP) for the next fiscal year, and Rs78.4bn in NHP arrears. The province’s own tax and non-tax receipts have been projected at Rs182.4bn, an increase of approximately 41.3 per cent over the current year’s target of Rs129bn. Of this, own tax receipts are pitched at Rs115.9bn and non-tax revenue at Rs66.4bn. Grants for the merged areas from the Centre have been projected at Rs199bn, comprising Rs95bn in current budget grants, Rs29bn for the Annual Development Programme (ADP), Rs52.2bn for the Accelerated Implementation Programme (AIP), Rs17bn for temporarily displaced persons, and Rs5.8bn for the district ADP. Mr Afridi said the federal government had walked back on its promise of allocating Rs100bn under the AIP, instead earmarking a paltry Rs27bn. Foreign project assistance has been projected at Rs150bn, while federal development and non-development grants from the Public Sector Development Programme (PSDP) have been pitched at Rs5.1bn. Expenditure Of the total Rs2.17 trillion outlay, Rs1.64 trillion has been allocated for current expenditure and Rs524.2bn for the Annual Development Programme. Current expenditure for settled areas has been pitched at Rs1.46 trillion, including Rs334.3bn for provincial salaries, Rs305bn for tehsil salaries, Rs201.4bn for pensions, Rs457bn for non-salary expenditure, Rs43.4bn for non-salary expenses of tehsils, Rs45.3bn for capital expenditure, Rs22bn for miscellaneous expenses, and Rs57bn for the provincial debt management fund. Current expenditure for merged areas has been projected at Rs180bn, including Rs65.4bn for provincial salaries, Rs49bn for tehsil salaries, Rs5.5bn for pensions, Rs29.9bn for provincial non-salary expenses, Rs13bn for non-salary expenses of tehsils, and Rs17bn for temporarily displaced persons. For the Annual Development Programme, Rs524bn has been allocated, including a provincial component of Rs235bn, Rs47bn for district ADP, Rs29bn for merged areas ADP, Rs52.2bn for the AIP, Rs150bn for donor-funded projects, and Rs5.1bn under the federal PSDP. Relief measures The government announced a 7pc increase in pay and pensions and proposed merging the adhoc relief allowances of 2022 and 2025 into basic salary. Conveyance allowance has been increased by 50 per cent, while the special conveyance allowance has been raised from Rs6,000 to Rs10,000. The minimum wage has been increased to Rs45,000 from Rs40,000. No new taxes have been imposed in the budget. The infrastructure development cess has been revised downward to 0.75 per cent from the existing 2 per cent, a move expected to reduce the cess burden by 62 per cent and aimed at lowering the cost of doing business and promoting investment in the province. Commercial and residential properties up to five marlas have been granted property tax exemption, benefiting about 200,000 households. The government also announced it would maintain its tax relief policy for the merged areas and Malakand division, with no new taxes imposed on these areas in the coming fiscal year. Published in Dawn, June 20th, 2026
BUDGET 2026-27 : NA panel rejects FBR bid to access bank account data
• Lawmakers fear access to such data could be misused • Body okays proposed tax rates for salaried class, calls for more relief • Finance minister says no room for more concessions this year • Panel rejects stricter penalties for filers, non-filers in certain cases • Luxury vehicles above 3,000cc to face 41pc levy • IT, related services to remain taxed at 4pc; professionals, independent software developers to face 15pc rate ISLAMABAD: A parliamentary committee on Friday questioned the government’s claim of providing relief to the middle-income salaried class, while rejecting a proposal to grant tax authorities access to taxpayers’ bank account data and opposing stricter penalties for taxpayers in certain cases. The National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, approved higher surcharges for late filing of tax returns as well as the imposition of a special excise duty on imported luxury vehicles. Following extensive deliberations, the committee finalised its recommendations on the matters considered during the meeting and directed the secretariat to incorporate the approved recommendations into the committee’s report on the Finance Bill, 2026, for presentation before the National Assembly. The Senate committee has already finalised its recommendations and transmitted them to the National Assembly. The committee approved proposals to impose a special excise duty on imported luxury vehicles. It supported the proposal that cars with engine capacity between 2,000cc and 3,000cc would attract a 40pc excise duty, while vehicles above 3,000cc would face a 41pc levy. Salaried class The committee approved the proposed tax rates for salaried individuals amid calls for greater relief for the middle-income group. PPP lawmaker Sharmila Faruqui said the 11pc tax on monthly salaries between Rs100,000 and Rs200,000 was excessive. “This is the middle class, and the rate should be reduced,” she said, while welcoming the government’s overall move to provide relief to salaried taxpayers. She pointed out that Rs600bn had been collected from salaried taxpayers this year, while the relief amounted to only Rs50bn. Ms Faruqui termed the relief “insufficient” and urged greater concessions for the Shahida Akhtar Ali stressed that the middle class was directly affected by the current tax burden, noting that most complaints received were from salaried individuals. Mr Aurangzeb said the reduction in super tax would also benefit salaried taxpayers, adding that public feedback had been “positive”. MNA Javed Hanif also criticised the relief measures, saying the middle class had been given “very nominal” relief. He suggested that super tax should be increased to offset concessions for salaried individuals. PPP MNA Hina Rabbani Khar defended the government’s economic direction but questioned whether imposing 18pc sales tax on food items was appropriate in a country like Pakistan. FBR access to bank accounts The committee took up the government’s proposal to access taxpayers’ account data in scheduled banks. Committee members voiced strong reservations, warning of potential misuse. “I can say with certainty this data will be misused,” remarked PPP lawmaker Sharmila Faruqi. FBR member Hamid Atiq Sarwar told the committee that the data already resided with the State Bank of Pakistan and would only be examined against income tax returns. He added that the move would allow the tax authority to monitor bank transactions. MNA Javed Hanif countered that the matter had already been settled with the State Bank and insisted that the FBR could not directly obtain account-holder data from scheduled banks. Director General Tax Policy Office Dr Najib Memon explained that details would only be sought if a large sum entered an account. Despite FBR’s assurance that the amendment would be routed through the State Bank, the committee rejected the proposal and barred the tax authority from acquiring account-holder data directly. FBR officials informed the committee that Rs37tr was currently held in 1.8m accounts, of which only one million were registered with the FBR. It was further pointed out that while transaction details of large companies were already available, the FBR wanted direct access to scheduled banks to expand oversight. The committee also rejected FBR proposals in the Finance Bill, 2026, to tighten penalties for filers and non-filers under the Income Tax Ordinance, 2001, and directed the FBR to redraft the amendments. Members argued that taxpayers facing illness or any other genuine excuse would be unfairly penalised. “Imposing fines in such circumstances is unjust,” lawmakers observed. Fines and surcharges The committee approved proposals to increase fines for taxpayers failing to comply with audit requirements or concealing taxable assets. It agreed to raise the penalty for not undergoing audit from Rs25,000 to Rs100,000, and for providing false information from Rs25,000 to Rs100,000. The fine for hiding taxable assets was increased from Rs100,000 to Rs500,000. FBR officials clarified that penalties would apply only where concealment was proven, with fines set at either Rs500,000 or 100pc of the tax shortfall. “Concealing taxable income is a crime harsher than murder,” remarked Director General Tax Policy Office Dr Najeeb Ahmad Memon, prompting laughter from committee members. “How can this be harsher than murder?” asked lawmaker Javed Hanif Khan. Dr Najeeb explained that “literature describes it as a crime against the nation”. He added that it was the FBR’s responsibility to prove concealment, both administratively and in courts. The committee ultimately approved the proposal to impose a Rs500,000 penalty for hiding taxable income or assets. It also endorsed proposals to impose heavier surcharges on taxpayers filing returns late or making false claims. The committee approved penalties on individuals claiming excess tax credits, requiring them to pay fines equal to the wrongly claimed amount. Tax officials also proposed that taxpayers submitting returns on time should not automatically be included in the Active Taxpayers List. The surcharge for companies filing returns late was raised from Rs25,000 to Rs100,000. For associations of persons, the surcharge was increased from Rs10,000 to Rs50,000, while for individual taxpayers it was raised from Rs1,000 to Rs25,000. Uniform rate on goods, services The committee approved FBR proposals to revise and unify tax rates on goods and services, raising the levy on most sectors to 7pc. Tax officials briefed the committee that payments for goods or services would now attract 7pc tax, up from 6pc. “Previously, some sectors were taxed at lower rates while others faced higher rates. We are now standardising the regime,” an FBR official explained. Transport, courier, security, hotel, advertising, engineering, warehousing, telecommunications, oil-field and travel services will all be taxed at 7pc. The same rate will apply to services provided by the stock exchange, mercantile exchange, data services, tower infrastructure and car rentals. IT and IT-enabled services will continue to be taxed at 4pc, while professionals such as doctors, lawyers, architects and accountants will face a 15pc rate. Independent software engineers and developers will also be taxed at 15pc. The committee approved the FBR’s proposal to implement the revised tax structure. Published in Dawn, June 20th, 2026
- Ekonomik18 Haz
JI to hold nationwide protests against inflation, petroleum levy on June 19
Calls for complete abolition of petroleum levy and reductions in diesel and electricity prices
High court suspends property tax collection in Islamabad
ISLAMABAD: The Islamabad High Court on Wednesday suspended the collection of property tax from residents of the federal capital, providing interim relief to taxpayers challenging the levy imposed by the Metropolitan Corporation Islamabad (MCI). A single bench of the IHC issued the order during the first hearing of a writ petition filed by Muhammad Munir Ahmed Chaudhary and Ahmed Hasan Rana, who also appeared as counsel for petitioner No. 1. The petitioners challenged Gazette Notification No. 404(1)-4/2024, dated March 14, 2024, and a subsequent property tax bill of Rs846,398 issued to them on April 24, 2026. The matter has now become a test case for thousands of property owners across the capital facing similar tax demands. During the proceedings, counsel for the petitioners argued that the imposition of property tax through the impugned notification was in direct violation of the Islamabad Capital Territory Local Government Act, 2015, and the Urban Immovable Property Tax Act, 1958. Court grants interim relief to taxpayers, issues notices to MCI, CDA and federal authorities It was contended that the Metropolitan Corporation was not empowered to levy property tax on the annual value of buildings and lands under Section 89(1) of the 2015 Act. The counsel further submitted that the notification had been unlawfully issued by an administrator in violation of Section 75(e) of the Act, which requires such fiscal measures to be initiated only by an elected local government body, not an appointed administrator. The counsel also argued that the notification could not be sustained as it lacked the specific authorisation required under Section 3 of the 1958 Act. According to the petitioners, the respondents had exceeded their legal authority by issuing the impugned notification without following the mandatory procedure prescribed under the law. The counsel maintained that the tax demand was not only illegal but also arbitrary, as it had been imposed without proper assessment and without affording taxpayers an opportunity to be heard. In support of their arguments, the petitioners relied on two key Supreme Court judgments. The first was Haji Faqir Hussain and seven others versus Secretary, Provincial Board of Revenue, NWFP, Peshawar, and 15 others, in which the Supreme Court had categorically held that property tax could not be imposed merely on the basis of a notification issued by the Local Government Department without a specific notification under Section 3 of the 1958 Act. The counsel argued that the facts of the present case were squarely covered by this judgment. After hearing the preliminary arguments, the court found that the petitioners had made out a prima facie case for interim relief. The bench observed that the legal questions raised by the petitioners required thorough examination and that the balance of convenience tilted in favour of granting protection to taxpayers until the matter was finally adjudicated. Consequently, the court issued notices to all respondents, including the Metropolitan Corporation of Islamabad, its Directorate of Revenue, the Capital Development Authority, and the Federation of Pakistan through the secretaries of the Interior and Cabinet divisions. The bench suspended the operation of the impugned property tax bills until the next date of hearing and adjourned the case for four weeks. This means that taxpayers who have received similar bills will not be required to make payments until the court takes up the matter again. Published in Dawn, June 18th, 2026
Trump to Offer Iran Financial Boost in Peace Deal | Daybreak Europe 6/17/2026
Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from London, we set the agenda for your day, catching you up with overnight markets news from the US and Asia. And we'll tell you what matters for investors in Europe, giving you insight before trading begins. Iran is set to receive broad financial incentives as part of its agreement with the US, including the right to sell oil immediately, tap a $300 billion development fund and get eventual access to its frozen assets, according to a final draft of the deal seen by Bloomberg. Federal Reserve policymakers are expected to hold interest rates steady on Wednesday, posing an early test for new chairman Kevin Warsh as rising inflation erodes households’ purchasing power and President Donald Trump continues to press for lower borrowing costs. Today's guest: Maurice Levy, Publicis Chairman Emeritus & VivaTech Founder. (Source: Bloomberg)
ABD-İran Müzakereleri Petrolü Düşürdü, Nükleer Düğüm ÇözülemediScooty for the beti and EV for the biwi
Esha named her scooty Riri, after herself. It cost Rs420,000 and she hasn’t spent a rupee more since on transport. Every time the scooty hums to life—when the 22-year-old leaves for classes at the College of Electrical & Mechanical Engineering—heads turn. “My friends think it’s cool,” she says. “Young women light up in public. They say it looks easy to handle.” Their reaction means everything to her. In a country where a woman’s movement is still being negotiated, the sight of a young woman riding an electric bike is its own argument. Esha has thought carefully about why that argument meets resistance. “One, the upfront cost. But honestly, why would a family invest in a scooty for their daughter when bhai is around as a free drop service?” she says. The second resistance comes from the feeble ‘log kya kahenge’ and ‘kuch ho jayega road pe’ fear. And lastly, Esha believes that women’s independence makes men uncomfortable. “The control only works when we’re dependent,” she adds. The economics of freedom are hard to argue with, though. Pakistanis have, in the last year or so, been floored by soaring petrol prices that electric two-wheelers are beginning to find their riders. A monthly fuel bill of Rs12,000 has doubled now. For Esha’s family, the math resolved itself: a steep upfront cost, undeniable long-term savings, a lighter machine that felt safer on the road. She charges the bike every night for a fraction of what petrol would cost, riding more than 60 kilometres without stopping at a pump or asking for a lift. “My family is supportive because they know I’m safe,” she says. Sana, 24, a NUST student from DHA Rawalpindi, came to the same conclusion but through a different door. She didn’t choose her electric scooty because it was trendy. Petrol bikes frightened her: the weight, the kick-start, the quiet dread of breaking down alone. But the scooty felt like something she could manage on her own, without depending on anyone. There’s also a physical safety consideration. “My engineers who wear abayas have suggested designing scooters because they are easier to ride in modest clothing and are socially perceived as more appropriate,” says Dr Azir of the Institute of Energy, Climate and Equity at the University of Lahore. The market was listening. Whether policy has caught up is another matter. Policy: promise and gap The federal government’s PAVE initiative has set an ambitious target: 116,000 electric bikes and 3,000-plus rickshaws for the current fiscal year, a 30 per cent EV sales target by 2030, and a Rs2.5 per litre levy on petrol to fund subsidies. Minister of State Dr Shezra Mansab Ali Khan Kharal says the government is encouraging the provinces to launch women-specific mobility schemes, including subsidised scooters and concessional loans. The on-ground reality has been considerably more modest. As of the last reported period, only 5,409 units had been distributed—roughly 4.5pc of the annual target. Commercial banks approved only around 9pc of EV loan applications, rejecting the rest. Evee showroom in Islamabad In a painful irony, the levy funding EV subsidies falls disproportionately on petrol and diesel consumers—who tend to be middle and lower-income—to subsidise a technology that benefits higher-income buyers more. Structural fixes are underway, including a model according to which people pay the subsidised price directly, and a Rs10,000 upfront scheme for lower-band government employees. But these options assume a person is formally employed and have institutional legibility that many workers do not. The recently announced federal budget offered a modest boost to Pakistan’s electric two-wheeler market by extending existing incentives on completely knocked-down (CKD) kits for electric bikes, three-wheelers and other EVs until June 30, 2027. This means local assemblers can continue importing EV components at concessional duty rates, helping keep prices lower for consumers. The budget introduced no new taxes on electric bikes. While these measures provide stability for the sector, the distributional impact of the budget remains largely unaddressed, raising the question of who actually benefits from it. Every year, the budget is presented, yet little attention is paid to its distributional consequences. For those who already cannot afford an electric bike, the budget does not reduce the upfront costs that keep electric mobility out of reach for many low-income consumers. The extension may ease costs for manufacturers, but its benefits are not guaranteed to reach consumers. On the other hand, Pakistan has nearly 30 million petrol motorcycles which eat up about 40pc of national petrol supplies, draining roughly $6 billion annually in imported fuel, according to Federal Energy Minister Awais Ahmed Leghari. Class, charging, and the limits of revolution Forty kilometres from where Esha rides, Nazia, 30, a house helper from Rawalpindi, makes the same daily commute on a petrol bike that belongs to her brother. She leaves at 8am and returns by 6pm, spending around Rs700 on fuel, contending with pump queues where men stare and workers are hostile, with no slack in her system if she arrives late. The brother gave her the bike out of necessity—he plays snooker while she earns for the household—and taught her to ride it only after she insisted. The daughter of one woman Nazia works for recently bought a beautiful red Honda electric bike. Nazia has thought about this. “Forget buying, even the showrooms feel out of reach,” she says. She has never gone inside one. The batteries don’t last, “like phone batteries” and she cannot afford to be stranded mid-shift. The higher electricity bill from overnight charging, layered onto a household without solar panels and a cost of living already at its limit, produces a dread that subsidised purchasing schemes do not address. And there is so much English written on electric bikes. She doesn’t think she would be able to understand the instructions herself. Nazia is not resistant to electric bikes. She simply doesn’t trust a technology she cannot decipher, afford, or get repaired, in a city without charging stations, while working a job that allows no margin for mechanical failure. Nazia with her brother’s Super Asia CD 70 In Karachi, journalist Anum Razzaque expressed the same hesitancy. “The city’s broken roads, long travel distances, lack of charging stations, and the high cost of batteries make petrol bikes feel far more practical and reliable,” she says. “Even a few minutes of rain can be a problem if the bike shuts off, and without mechanics available, I wouldn’t know how to restart it.” This is not a niche concern. Usama, 28, Islamabad, Yadea Dealer, one of the country’s more established EV brands, says the biggest challenge in Pakistan right now is the charging infrastructure. Electric bikes are better suited to smoother urban surfaces. A just transition or just a transition? On paper, the principles are simple enough: the costs and benefits of an energy shift must be shared fairly, with no one left carrying a disproportionate load. Pakistan’s EV moment, as it stands, hasn’t cleared that bar. Yet inclusion alone won’t resolve the deeper structural question Dr Azir raises: who gets left behind? Without deliberate policy, he warns, the transition fractures into two lanes—one fast and paved for the wealthy, the other a dead end. Pakistan has already rehearsed this inequality. The Audi e-trons arrived first, priced for drawing rooms rather than daily commutes. The technology eventually trickled down. Equity, however, rarely follows uninvited. The fault lines are already forming: rural women excluded as charging infrastructure clusters in major cities; low-income buyers hitting financing walls; informal workers rejected by credit systems built for salaried employees; women without digital banking locked out of app-dependent mobility platforms altogether. And underneath it all, a slow-burning time bomb—battery replacement costs that could convert today’s savings into tomorrow’s debt. Esha with her electric bike Harder still, there are the workers nobody is talking about: petrol pump operators, motorcycle mechanics, station attendants—an entire informal economy quietly facing obsolescence. A genuinely just transition would bring them into the room: converting petrol stations into hybrid energy hubs, reskilling mechanics for EV maintenance, building Urdu-language, audio-guided service infrastructure that women like Nazia could actually navigate. Because transitions, like roads, are never neutral. They are built by someone, for someone. And that someone determines everything that follows. There is a deeper contradiction beneath it all. A scooty charged on a coal-powered grid is not a clean solution; it is a cleaner one. Electrifying transport without decarbonising generation merely shifts dependence; it doesn’t end it. Solarised rooftops, distributed renewables, a genuinely greening grid are not footnotes to the EV story, they are its spine. Pakistan’s ambitions, to be fair, are not small. Climate Change Minister Shezra Mansab Ali Khan Kharal points to over 33 GW of installed solar capacity and a pledge to cut carbon emissions by 50pc by 2035. But ambition and architecture are two different things and the gap between them is where the most vulnerable tend to fall. The electric scooty will not fix Pakistan’s roads, its grid, its gender politics, or its economy. But in the hands of the right policy, the right infrastructure, and the right intent, it could offer something this country has rarely delivered to its women with any consistency: the simple, radical freedom of going where you need to go—charged, unaccompanied, and entirely on your own terms. Header image: Esha, her electric scooty, and Daisy. — all photos by authors
Pakistan'da Genç Kadınlar Elektrikli Scooter ile Mobilite KazanıyorJI demands cut in fuel prices, work on Pak-Iran gas pipeline
LAHORE: Jamaat-i-Islami chief Hafiz Naeemur Rehman on Monday called for immediate reductions in petrol prices and the swift completion of the long-delayed Pakistan-Iran gas pipeline, saying Pakistan should pass on any international economic relief to the public. In a video message issued from Mansoorah and a statement shared on social media, Rehman urged the government to reduce fuel costs in line with falling international prices, initiate free trade with Iran, and expedite the Pak-Iran gas pipeline project to address the country’s energy shortages. Rehman said with ex-refinery prices potentially falling to around Rs200 per litre, “a substantial reduction in domestic petroleum prices was entirely feasible” and called for a review of what he described as burdensome measures such as the petroleum levy. He also said reductions in electricity and gas tariffs could significantly stimulate economic activity within a year. The JI chief described the truce and agreement between Iran and the United States as a “landmark victory for Iran”, saying the development demonstrated that no global power can impose its agenda on a nation that remains resilient and united. He said the reopening of the Strait of Hormuz and normalisation of regional conditions sent a clear message that a united nation can withstand major challenges. He added that the resolve of Iran’s leadership and people showed that when a government and its citizens stand together with patience and steadfastness, even the world’s most powerful states are compelled to alter their positions. Rehman observed that while the US and Israel had made sweeping claims about dismantling Iran’s political system, nuclear programme, missile capabilities, and military strength, the conflict concluded under different circumstances, ultimately centring on the Strait of Hormuz. He described the outcome as a strategic success for Iran and congratulated its leadership and people. He said Pakistan must draw lessons from regional developments. While acknowledging Islamabad’s role in mediation efforts, he said diplomatic gains abroad could not be fully utilised without strengthening national unity and harmony at home. Published in Dawn, June 16th, 2026
Cemaat-i İslami'den hükümete: Akaryakıtta indirim, İran boru hattı tamamlansınSituationer: How US-Iran peace can help steady Pakistan’s ship
MINUS the nuts and bolts, it appears as if the US and Iran have reached an agreement to end the Mideast war that has proven ruinous for the world’s economy. For now, Pakistan’s slow slide back into macroeconomic decline appears halted, with the new budget offering a glimmer of hope amid renewed geopolitical stability. That is not to say that the conflict has not wreaked havoc. According to the IMF’s World Economic Outlook for April 2026, global growth is projected to slow to 3.1 per cent in 2026 and 3.2pc in 2027. Finance Minister Muhammad Aurangzeb said last week that the country is heading towards a 4pc growth rate, revised down from an earlier projection to 3.7pc. So how will peace change the status quo, and what happens if the course is reversed? “Do you know how to ride a bicycle?” economist Kaiser Bengali asks, wryly. If the deal breaks down and strikes resume, not only would the Strait of Hormuz be blocked, but the Red Sea route may be as well — the port through which Saudi Arabia has redirected more than 70pc of its daily crude exports. “Even if we are willing to pay Rs1,000 for a litre of petrol, the pumps will be empty, and people will resort to walking or cycling,” says Bengali. In that case, all relief measures will be reversed and new taxes imposed. The current budget walks a tightrope between IMF targets — tax collection at Rs15tr, primary surplus at 2pc, fiscal deficit at 3.6pc — while offering select relief. “Remittances have surged recently, in part because overseas Pakistanis are buying property back home as an insurance policy in case they are forced to leave the Gulf,” says Mr Bengali. This temporary spike may continue for another quarter, but remittances from regular wage earners could weaken until Gulf economies recover. Some businesses that relocated may not return, while tourism and investment could take time to normalise. Weaker remittances, combined with budget stimulus raising the import bill, would widen the current account deficit and pressure the exchange rate. A depreciating rupee makes foreign debt servicing — 43pc of the budget — far more challenging. Ehsan Malik, former CEO of Unilever Pakistan and chief executive of the Pakistan Business Council, warns that much of the fiscal space rests on provinces generating surpluses promised to the IMF. Missing those targets could trigger a mini-budget that, as past experience suggests, will hit captive taxpayers hardest and prove inflationary through a higher petroleum levy. Oil prices fell on Friday to their lowest since early March, with Brent futures settling at $87 a barrel as traders grew more confident about a peace deal. “The US has been marketing its oil and gas very actively, meeting demand otherwise served by the Middle East,” says Malik. “If the UAE continues to stay outside OPEC, it would also produce more. The additional quantity that will come into the market will depress prices, which will work in Pakistan’s favour.” Lower oil prices mean less inflationary pressure and more room for the petroleum levy to be absorbed. The risk of falling remittances is also being mitigated by what appears to be a rapprochement between the UAE and Iran. For Bengali, the true best-case scenario extends beyond lower oil prices. A comprehensive US-Iran agreement could eventually lead to sanctions relief, allowing Pakistan to pursue long-stalled energy cooperation with Tehran, including the Iran-Pakistan gas pipeline and expanded bilateral trade. Hassan Bakshi, chairman of the Association of Builders and Developers, sees a silver lining in the diaspora’s renewed interest in Pakistani property. “With a 10-15 year long policy, guaranteed by legislators and without fear of harassment from the FBR, Pakistan can potentially attract billions of dollars from expats — far more than the Roshan Digital Accounts, especially since the shine is off Dubai now.” But for anyone to invest in Karachi like Dubai, he adds, the city has to offer Dubai-like policies and facilities. Published in Dawn, June 16th, 2026
Chakval'da CCD ateş açtı: 9 yaşındaki kız öldü, iki yaralıBUDGET 2026-27: Senate panel backs 5pc tax on earnings from social media
• Govt signals gradual end to super tax • State minister says target of bringing 3.5m retailers into tax net in one year ‘unrealistic’ • NA panel seeks detailed estimates of revenue generation, relief measures to assess their overall economic impact ISLAMABAD: A parliamentary committee on Monday approved a five per cent tax on earnings generated through social media platforms by both local and foreign digital content creators, as lawmakers continued their review of proposals under the Finance Bill 2026. The move reflects the growing significance of social media as a source of income, with digital platforms increasingly serving as lucrative business avenues rather than merely communication tools. Content creators, influencers and online entrepreneurs are now generating millions of rupees annually through platform monetisation, advertising revenue and audience engagement. The Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, reviewed the proposed taxation framework and endorsed the mechanism for bringing social media earnings into the tax net. Finance Minister Muhammad Aurangzeb and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial briefed the committee on the bill’s provisions. Separately, the National Assembly Standing Committee on Finance in its meeting, headed by MNA Naveed Qamar, directed the finance ministry and FBR to submit detailed estimates of revenue generation and relief measures to assess their overall economic impact. The proposed tax on social media income sparked debate among committee members, with some expressing concerns that additional taxation could discourage foreign exchange inflows. Senator Saleem Mandviwalla warned that higher taxes might reduce incentives for digital earners to bring income into Pakistan. Senator Abdul Qadir echoed similar concerns, arguing that individuals earning through overseas digital platforms should be encouraged rather than burdened with excessive taxation. Responding to the criticism, the FBR chairman said social media earnings should be treated like any other taxable income. FBR officials informed the committee that annual social media income of up to Rs600,000 would remain exempt. Earnings between Rs600,000 and Rs1.2 million would be subject to a five per cent tax under the proposed framework. “We are simply asking for our share from social media income,” Mr Langrial told the committee. During the proceedings, Finance Minister Muhammad Aurangzeb reiterated the government’s intention to gradually phase out the super tax. He said the policy direction was clear and that efforts would continue each year to reduce the levy before eventually abolishing it altogether. Senator Abdul Qadir proposed raising the exemption threshold under the Finance Bill 2026 from Rs500 million to Rs1 billion. However, Mr Langrial opposed the proposal, warning that such a move would create a revenue shortfall of approximately Rs250 billion and necessitate additional taxation measures elsewhere. The proposal did not gain support from tax authorities. Meanwhile, Minister of State for Finance Bilal Azhar Kayani informed the NA committee that the first six slabs of the super tax had already been eliminated. He added that fertiliser, banking and petroleum companies with incomes exceeding Rs500 million would continue to face a 10pc super tax, while other sectors above the same threshold would remain subject to an 8pc levy. Retail tax scheme draws criticism The NA committee also discussed the government’s proposed trader taxation scheme, which faced criticism from several lawmakers, while the state minister defended the initiative. Committee chairman Naveed Qamar remarked sarcastically that those responsible for designing the retail scheme deserved “special awards”, reflecting concerns over its structure and implementation. Kayani argued it would be unrealistic to bring all 3.5m shopkeepers into the tax net within a year. He said the proposal had been developed after consultations with trader associations and retailer groups. FBR Member Hamid Ateeq Sarwar noted that while Pakistan has around 4.4m commercial power connections, only 400,000 businesses are currently registered with the tax authority. The scheme initially aims to bring 100,000 large retailers into the documented economy, he said. Sarwar added shopkeepers owning significant assets, such as plots or luxury vehicles, could be selected for audit under the proposed system. Export sector, other tax measures The committees also examined proposals affecting exporters and other sectors of the economy. Sarwar informed lawmakers that the government had proposed reducing the advance tax rate for exporters from 2pc to 1.25pc. He also stated that Pakistan and Bangladesh remain among the few countries operating a final tax regime, noting that the system is generally not recognised under IMF frameworks. The FBR chairman opposed suggestions to restore the final tax regime for exporters. On sales tax measures, officials clarified that the inclusion of 19 additional items in Schedule III of the Sales Tax Act would not increase tax rates. Instead, manufacturers would simply be required to clearly display prices and applicable taxes on products. Officials added that all packaged goods fall within the scope of Schedule III. The committee was also informed that the so-called “pink tax” had been reduced from 18pc to zero. Following objections from lawmakers over the term itself, officials indicated that the name would be changed. Insurance, inheritance The Senate committee approved a proposal to tax only the profit component of life insurance policies from Tax Year 2026, while keeping the principal amount exempt. Insurance payouts related to death, disability and policies maturing after seven years would remain tax-free. Lawmakers also endorsed the continuation of sales tax exemptions for property transfers resulting from inheritance following the death of parents. No tax will apply to inheritance-related divisions or valuation adjustments under the proposed framework. In a separate briefing, officials revealed that data analysis had identified approximately 8,697 individuals holding deposits worth nearly Rs750 billion despite not paying income tax. The findings were cited as evidence of the need to broaden the tax base and improve compliance. While directing the finance ministry and FBR to submit detailed fiscal impact assessments and implementation plans before further deliberations on the Finance Bill 2026, Mr Qamar highlighted that tax relief measures should remain fair and consistent with efforts to expand the country’s tax net. Published in Dawn, June 16th, 2026
Pakistan Senatosu'ndan Sosyal Medya Gelirlerine Yüzde 5 Vergi OnayıSenators raise alarm over rising debt amid lack of roadmap for economic stability
ISLAMABAD: Members of the Senate from both sides of the aisle on Monday raised alarm over the burgeoning debt of Pakistan, sans a roadmap for economic stability. On June 12, the government presented the budget for FY27, allocating Rs8,054bn for interest payments. Speaking on the floor, PPP vice president and parliamentary leader in the Senate, Senator Sherry Rehman, pointed out that approximately 42.8 per cent of the federal budget was being absorbed by debt servicing, including both interest and principal repayments. “When nearly half of the federal budget is consumed by debt obligations, the space available for development, social protection and public investment becomes severely constrained,” she noted during the budget discussion. She said that state-owned enterprises continue to place a heavy burden on public finances. “Losses of state-owned enterprises reached Rs832.848 billion in FY2025, with cumulative losses now standing at Rs6.563 trillion. Yet another Rs451 billion has been allocated to SOEs in this budget. This is a structural challenge that cannot be ignored indefinitely,” she added. Calling for reforms in governance and public expenditure, Senator Rehman urged the government to rationalise ministries, departments and institutions that continue to impose high operational costs on the national exchequer. She also called for a “fair taxation system” built on direct taxes and a broader base, warning that Pakistan’s growing reliance on indirect levies was undermining fiscal stability and burdening ordinary citizens. Senator Rehman said the country needed sustainable economic reforms, not stopgap measures. “Direct taxes should be increased while dependence on indirect taxes should be reduced to lessen the burden on ordinary citizens,” she said. “Pakistan cannot become economically self-reliant without widening the scope of taxation.” She flagged the ballooning Petroleum Development Levy as a key concern. “Excessive reliance on levies and indirect taxation raises serious questions about the long-term sustainability of our revenue structure,” the senator said. Pakistan, she argued, must bring services, trade and retail businesses into the tax net to expand fiscal space. Senator Rehman also expressed concern over declining climate allocations despite Pakistan’s growing climate vulnerabilities. “It is deeply concerning that climate-related levies are being collected while climate financing remains inadequate and climate budgets continue to shrink. Pakistan is among the countries most vulnerable to climate change, and this is precisely the time when climate investment should be increasing, not decreasing,” she said. Leader of the Opposition in the Senate Raja Nasir Abbas, in his speech, criticised the budget as a document that “does not protect the people’s political independence” and pushes Pakistan deeper into foreign economic control. Opening his speech in the Senate budget debate, he asked whether the budget could free the country from “the economic dominance of outsiders” or was “throwing us further into that quagmire”. “Has this budget brought economic freedom? This budget is pushing us further into enslavement.” Abbas said the budget had ignored ordinary Pakistanis. “The people of Pakistan have not been kept in focus. The people are irrelevant in this budget,” he said. Targeting Prime Minister Shehbaz Sharif’s fifth budget, he said debt had risen every year since the government took office. “Debt has increased a hundredfold since they took charge.” He warned that debt was rising so fast that the country was heading towards becoming a “failed state”. He said the public would pay Rs8 trillion in interest this year. Quoting the government’s own poverty threshold of Rs8,432 monthly income, he asked: “Which Aristotle said that someone earning Rs280 per day is not poor? By that calculation, 70 million people are poor. Twenty million more people fell below the poverty line this year.” The opposition leader alleged that the budget provided relief to the rich while the poor were burdened with levies. “You are imposing levies on poor youth who put petrol in motorcycles. Money is being squeezed out by tearing apart the poor man’s stomach. Where is it being spent? You are not cutting your own expenses,” he said. Abbas said no province had wheat stocks left, and that strategic food security reserves were being eroded. He questioned spending priorities: “What is being spent on education in the country? If Pakistan is so good, why have our rulers invested abroad and set up factories outside?” Turning to politics, he said politicians were being jailed for 50 years and branded terrorists and traitors. “Being a politician in this country is a crime. They are called traitors. But those who broke the country, broke the Constitution, and imposed martial law are not the traitors,” he said. “Politicians are so helpless that they cannot arrange a meeting with Imran Khan. He will not bow his head even while in jail. Those who wanted to make politics an example tried to bend him; they could not,” he said. The opposition leader also accused the government of forcing provinces to give up money in violation of the 18th Amendment. He ended with an appeal for dialogue: “Come, let’s sit together and bring reforms.” PTI Senator Mohsin Aziz, while taking part in the debate, launched a scathing attack on the government, alleging rigging in elections from the 2024 general polls to the Gilgit-Baltistan elections, and said the budget offered “nothing” to the public. He said he would have praised the government “if petrol was cheaper, people had received relief, and the national exchequer had grown”. Instead, he said, prices had doubled and debt had ballooned. Aziz said Pakistan’s debt stood at Rs44 trillion over 74 years but had surged to Rs97 trillion in the last four years. “Where are we taking Pakistan? Debt has more than doubled,” he said. “Where there is no political stability, this is what happens.” He compared Pakistan’s exports to India’s $440 billion and said, “Every day, we are moving backwards.” Wheat flour, he noted, had risen from Rs1,100 to Rs2,600 per maund, while other essentials had also become unaffordable. The senator criticised the Petroleum Development Levy, saying it was being collected directly from the public. He called the budget “empty” and said, “No matter how many claims you make on TV, this budget is nothing.” Aziz targeted the 200-unit electricity subsidy, saying consumers using 200 units received relief, but those at 202 units lost it entirely. “To avoid this, the poor installed small solar systems and were called ‘robbers’ for it,” he said. He also rejected the concept of “non-filers”, saying it existed nowhere else in the world. The PTI senator said two parties had given the country nothing except false promises. He argued that political stability was essential for improving education and development, and urged the government to “get rid of the IMF” to put the country on a growth path. “Conditions are worsening day by day,” he said, calling for an end to what he termed systematic rigging and for policies focused on public relief rather than taxation.
Pakistan Senatosu'nda borç alarmı: Ekonomik istikrar için yol haritası yokTrump Threatens 100% Tariff On French Wine Over Digital Services Tax Ahead Of G7 Summit
France imposed in 2019 a three percent levy on the revenues earned by technology firms -- including American giants such as Facebook, Amazon, Apple and Google parent Alphabet -- within the country's borders.
The optics of relief for the masses
The bulk of FBR’s tax revenue is generated from tax on income (50% of tax revenue) and sales tax (32% of tax revenue). The former falls in the captive tax-compliant category. The latter is deeply regressive, directly impacting the lowest-income segments and worsening economic inequality. This leaves everyday citizens bearing a disproportionate brunt of the state’s financial burden. The budget serves as a reminder that the vast majority of Pakistanis in the middle of the social spectrum will continue to bear the cost of government missteps and the inefficiencies of inadequate physical and social infrastructure providers, in addition to the fallout of the volatile global situation and tensions with Afghanistan. In the fiscal year ahead, their relentless struggle to make ends meet and to provide a decent life for their families will remain all-consuming. The proposed budget offers the salaried class a modest three to five per cent reduction in tax liability, applicable only for those earning at least three times the taxable monthly income threshold of Rs50,000. While the relief may be meaningful for its beneficiaries, excluding poor and lower-middle-class taxpayers, who arguably need support even more, is difficult to justify. Unless policymakers attach value to retaining a larger number of lower-income taxpayers in the tax net, the rationale of this exclusion remains unclear. Pakistan’s income tax compliance remains dismally low. A wide gap persists between the number of registered taxpayers and those who actually pay taxes. By some estimates, fewer than 5pc of adults in Pakistan pay income tax. Enforcing compliance is challenging in a cash-dominated economy with a vast informal sector and limited documentation. Modest tax cuts offer limited comfort as inflation, fuel costs and economic uncertainty continue to squeeze middle- and lower-income households In contrast, salaried employees are effectively captive taxpayers because their taxes are deducted at source. Meanwhile, successive governments have been reluctant to aggressively pursue powerful tax-averse groups, such as large farm owners, realtors and traders, fearing political backlash. The war in the Gulf has pushed up oil prices and freight costs, raising the cost of trade, travel and transportation. It also threatens to disrupt supply chains. Meanwhile, the closure of Torkham and Chaman border crossings has hurt cross-border trade and adversely affected the livelihoods of communities that depend on border-related economic activities. “Raising the taxable income threshold would have shrunk already narrow tax base. Without credible measures to offset the revenue loss and a fall in the number of tax filers from exempting lower-income salaried workers, the government considered the move too risky, particularly given the International Monetary Fund’s (IMF) sensitivity to any erosion of the tax base. “The failure of last year’s Tajir Dost Scheme also undermined the confidence in the fixed-tax regime for traders introduced in the current budget, reinforcing the decision to leave the taxable income threshold unchanged,” an analyst said. “Yes, it may seem unfair, but the government appears more concerned about satisfying its core supporters and the IMF. By refraining from raising the general sales tax [GST], increasing salary and pensions for public-sector employees, allocating additional funds to Benazir Income Support Programme, and lowering tax rates for taxpayers in the upper-income brackets, it likely believes it has done enough to provide relief,” an economist remarked. Dr Rashid Amjad, former deputy chairman of the Pakistan Institute of Development Economics (BISP), was sceptical. He argued that the budget had effectively been negotiated with the IMF before its presentation, leaving little room for independent policymaking. He questioned the government’s claim of shifting from stabilisation to growth, arguing that a cut in development spending would dampen growth while aggravating unemployment and poverty. While welcoming the increase in the minimum wage, public sector salaries and pensions, and BISP allocations, he said these measures would offer limited relief in an environment of expected double-digit inflation and high petroleum levy. “The tax cuts for the middle class are more window dressing than meaningful relief,” he remarked. “All in all, it is a budget that tries to please everyone and ends up pleasing hardly anyone except the IMF”, he added. The proposed budget lowers income tax rates for three upper-salaried income brackets, leaving the income threshold and tax rates on the two lowest income slabs unchanged. The rate for monthly incomes between Rs1,83,000 and Rs2,66,000 has been reduced to 20 per cent from 23pc; for incomes above Rs2,66,000 and up to Rs3,41,000 per month, it has been cut to 25pc from earlier 30pc; and for those earning Rs3,41,000 and Rs4,67,000 a month, the rate has been lowered to 32pc from 35pc. The annual surcharge on high-salaried individuals has also been abolished. Previously, a 9pc surcharge applied to income earners with a monthly salary exceeding Rs8,33,000. Over the next financial year, low-salaried households are likely to further tighten their budgets to cope with rising inflation and high fuel costs. Many families may be compelled to supplement incomes by working longer hours or pushing more household members into the workforce. As spending on food, transport and utilities consumes a larger share of earnings, less will remain for housing, rent, education, healthcare and leisure. For many, saving will become impossible, forcing them to draw down assets to maintain basic living standards. “Confronted with serious economic challenges amid a highly volatile global environment, any government would have struggled to balance fiscal responsibility with socio-economic goals while building public support. The task is even more daunting for Prime Minister Shehbaz Sharif’s coalition government, which must navigate the demands of political allies, powerful lobbies and stringent donors, leaving little room for manoeuvre. “Within these constraints, delivering meaningful relief to the roughly 80 per cent of households that fall between the affluent and the poorest segments remains a formidable challenge. His team did try to make the budget people-friendly,” a supporter defended the government. Beyond the routine political rhetoric condemning the government’s performance and its failure to match public expectations, most Pakistanis assess the federal budget primarily through its impact on their household finances. According to unverified online estimates, around 15-20 per cent of the population, including taxpayers, professionals, politically engaged citizens, analysts, media personnel and members of the business community, closely follow the annual budget process, tracking fiscal priorities, taxation measures and policy changes that shape the economic outlook. Some analysts consider these estimates overly optimistic. “I would be pleasantly surprised if even five per cent of Pakistanis could meaningfully decipher the budget,” remarked one observer. “For most people, it appears to be little more than a juggling of numbers and a politically motivated accounting exercise. This perception persists largely because there is neither a serious effort within the power corridors to generate and utilise credible data to identify weaknesses in the framework, nor a genuine commitment to reforming it to make it people-centric and responsive to the interests of the majority.” Others attribute the public’s limited interest and engagement in what is arguably the most important exercise in the country’s annual financial cycle to the government’s own conduct. “To conceal the cost of its inefficiencies and mask policies that disproportionately favour elite segments, budget makers deliberately make the process and its contents complex,” observed a retired civil servant. Published in Dawn, The Business and Finance Weekly, June 15th, 2026
PTI rules out CoD-style Charter of Economy
• Khosa questions effectiveness of 2006 charter, claiming its commitments were never honoured ISLAMABAD: As Prime Minister Shehbaz Sharif offered dialogue to the opposition and suggested that all political parties work towards a “Charter of Economy”, the PTI on Sunday made it clear that the premier should not expect a PPP-PML-N-style CoD from the party. Party leaders Sardar Latif Khosa, Taimur Khan Jhagra, Mobeen Arif Jutt and Rana Atif were speaking at a press conference in Islamabad. Mr Khosa questioned the outcome of the earlier CoD signed by Benazir Bhutto and Nawaz Sharif in 2006, stating that not a single commitment under the accord had been honoured. He claimed that subsequent governments had acted contrary to its spirit by weakening democratic norms and constitutional supremacy, eroding judicial independence, manipulating electoral processes, restricting political freedoms and freedom of expression, shrinking political space, and undermining the overall democratic framework. He further said the PML-N formed the government despite securing only 17 seats, while PTI was denied power despite winning more than 180 seats in the general elections. The PTI leader maintained that party workers and leaders had been subjected to political victimisation, with hundreds of cases registered against Imran Khan, his wife and associates, including Dr Yasmin Rashid, a cancer survivor. He expressed concern that the budget would not only deepen the suffering of the masses but also negatively affect the national economy. He questioned how the government intended to achieve its revenue targets after failing to meet earlier benchmarks, warning that additional taxation would further burden existing taxpayers and potentially push millions of lower- and middle-income families below the poverty line. Speaking on the occasion, Mr Jhagra criticised the government for increasing the petroleum levy to as much as Rs100 per litre, arguing that the move would have a cascading impact across all segments of society. He said the “elephant in the room” was the ever-rising cost of running the state. If the government was serious about putting Pakistan on the path to prosperity, he argued, it would need to demonstrate the courage to slash extravagant expenditures. Rejecting the government’s claims of economic recovery, he said exports had declined by six per cent and investment by 26.5pc, while most economic targets had been missed across key sectors. Speaking on the occasion, Mr Jutt said the government had failed to present a clear strategy for broadening the tax base or bringing new taxpayers into the net. He noted that the ruling coalition was presenting its fifth budget, yet had not delivered meaningful relief to the public over the past five years. Mr Atif questioned the government’s claims of economic stabilisation, arguing that the ruling coalition had imposed unprecedented taxes over the past five years while failing to implement meaningful structural reforms. Meanwhile, former National Assembly speaker Asad Qaiser said the government had “handed over the economy to the IMF”, leaving farmers, industrialists and other segments of society in distress. He said PTI had been denied a level playing field in the Gilgit-Baltistan elections. Published in Dawn, June 15th, 2026
BUDGET 2026-27 : Multiple risks looms over next-year budget, finance ministry warns
• $40 price spike per oil barrel risks adding 0.8pc to deficit • Natural disasters threaten 1.5pc fiscal hit • Tax exemptions, concessions risk a 1.3pc budget hole • 10pc tax collection shortfall costs 0.7pc of GDP • Loss-making state entities drain an extra 0.4pc ISLAMABAD: The government has warned of key risks to next year’s budget outlook, such as global oil price hikes, sluggish GDP growth, revenue shortfalls, increased debt servicing costs, state-owned entities’ poor performance, and unforeseen natural disasters and climate impacts. In a written statement of fiscal risks to parliament, required under the Public Finance Management Act 2019, Finance Minister Muhammad Aurangzeb and Finance Secretary Imdad Ullah Bosal presented these risks in seven major categories. They quantified their possible impacts on the fiscal deficit across macroeconomic, revenue, debt, state-owned entities, climate change, natural disasters, and commodity financing areas. The risk statement proposes mitigation measures to support fiscal discipline, strengthen risk management, and enhance the resilience of public finances in the event of one or more risks actually materialising. Finance ministry identified significant fiscal vulnerabilities associated with a potential rise in global oil prices, particularly in the context of the current Middle East conflict, which may likely result in a contraction of petroleum levy receipts and an increase in energy-related subsidies. “A likely decision to waive full price pass-through to domestic consumers would result in a decline in petroleum levy receipts,” it noted. To protect domestic consumers, particularly low-income households, the government would need to raise subsidies. Rising international oil prices, specifically a $40 per barrel increase, are projected to add 0.8pc of GDP to the fiscal deficit in the 2026-2027 fiscal year. Aurangzeb said a significant part of the more than 1.035 trillion rupees in special grants secured from the provinces has been set aside to cope with the conflict’s second- and third-round impacts. Macroeconomic risks mainly arise from a slowdown in economic activity, which could lead to weaker-than-expected real GDP growth and affect the fiscal stance. A 1pc point decline in real GDP growth could lower government revenues through reduced tax collections, while also increasing expenditure pressures, particularly on social safety nets. “The combined impact is estimated to widen the fiscal deficit by around 0.2pc of GDP in FY2026-27,” the ministry added. “Under this scenario, upward pressure on inflation and exchange rate depreciation could further strain public finances.” Revenue collection remains exposed to lower tax elasticity, an economic slowdown, shortfalls in non-tax receipts, and structural challenges in reducing the tax gap. If tax revenue grows 10pc lower than budget estimates, it could result in a reduction of 0.7pc of GDP. Revenue risks could also arise from a 30pc decline in State Bank of Pakistan surplus profits, which could increase the deficit by 0.3pc of GDP. Similarly, a 20pc shortfall in petroleum levy collection could add 0.2pc of GDP. Furthermore, tax expenditures remain a structural risk; expanded exemptions and concessions could widen the fiscal deficit by 1.3pc of GDP. Debt servicing costs were identified as another key vulnerability due to exposure to interest rate changes, exchange rate movement, and refinancing pressures. A 200-basis-point rise in domestic interest rates and a 100-basis-point rise in external rates could increase interest payments, widening the deficit by 0.4pc of GDP. Under higher refinancing risks and greater reliance on short-term instruments, the deficit could increase by up to 0.8pc of GDP. State-owned entities pose risks through lower dividend payments and higher government support. A 6pc shortfall in dividends is estimated to widen the deficit by 0.02pc of GDP. However, if financial support reaches 1.5pc of GDP, it could increase the deficit by 0.4pc of GDP. On climate change, the ministry said a mitigation pathway aligned with RCP 2.6 could raise spending on green infrastructure and adaptation, increasing the deficit by 0.2pc of GDP. However, under a high-emission RCP 8.5 scenario, the near-term impact is limited at 0.01pc of GDP in FY2027, though risks could rise over time due to more frequent shocks. Natural disasters remain one of the largest risks. Without dedicated disaster risk financing mechanisms, an average disaster event could increase the fiscal deficit to 1.5pc of GDP. Finally, guarantees issued for commodity financing operations expose the government to vulnerabilities. Assuming a 25pc probability of guarantees’ actualisation, the deficit could increase by 0.1pc of GDP. Published in Dawn, June 15th, 2026
Budget offers tax break to salaried class, businesses
• Income tax rates reduced for salaried individuals earning between Rs2.2m and Rs7m annually; 35pc slab threshold raised to Rs7m ISLAMABAD: The government has unveiled a sweeping package of tax and tariff reforms, offering relief to higher-income salaried individuals and businesses by rationalising income tax, sales tax, and customs duties, while promoting documentation, digital compliance, and investment. The measures are designed to ease the burden on households and enterprises while targeting key sectors such as real estate, IT, shipping, energy and capital markets, and at the same time promoting documentation, digital compliance and investment. The income tax slabs have been eased, super tax rationalised, excise duties cut, and sales tax exemptions widened to cover magazines, shipping, and refineries, while levies on deemed income and the tampon tax have been removed. Excise duty on business class international travel has been drastically reduced in the budget, with the levy on tickets to North, Central, and South America cut to Rs50,000 from Rs350,000. Rates for tickets to the Middle East and Africa have been reduced to Rs25,000 from Rs105,000, while business-class travel to Europe now costs Rs40,000 instead of Rs210,000. The same reduction applies to tickets for the Far East and Australia, where the duty has been brought down to Rs40,000 from Rs210,000. Income tax relief The government has restructured income tax slabs for higher salaried taxpayers, lowering rates and raising the threshold for the 35 per cent bracket from Rs4.1 million to Rs7m. Relief will be provided to the four middle bands (Rs2.2m to Rs7m), while the top slab will stay at 35pc. The total impact of this relief for the high-end salaried class was estimated at Rs830.5m. The exemption threshold will remain unchanged at Rs600,000 annually, while those earning up to Rs1 million a year will continue to face a token 1pc tax. Under the new structure, those earning between Rs2.2m and Rs3.2m will face a reduced tax rate of 20pc. For incomes between Rs3.2m and Rs4.1m, the rate has been cut from 30pc to 25pc. Taxpayers earning Rs4.1m to Rs5.6 m annually will see their rate drop from 35pc to 29pc, while those in the Rs5.6m to Rs7m range will have their rate reduced from 35pc to 32pc. In addition to these tax reductions, the government has proposed abolishing the surcharge on salaried taxpayers. To further support the salaried class, salaries of serving government employees will be increased by 7pc, with pensions also rising by 7pc. Moreover, the minimum wage is set to be raised by 10pc. As part of the real estate facilitation measures, the government has abolished the tax on deemed income from capital assets located in Pakistan. It has also proposed a reduction in advance tax on the sale and purchase of immovable property. The advance tax rate for sellers or transferors under Section 236C, previously ranging from 4.5pc to 5.5pc, has been reduced to a flat rate of 2.75pc. Similarly, the advance tax on property purchases under Section 236K, which previously ranged from 1.5pc to 2.5pc, has been reduced to a uniform 1.5pc. These changes are aimed at encouraging documentation and making transactions in the real estate sector more convenient. Moreover, the government abolished capital value tax on foreign movable and immovable assets of resident Pakistanis. The law has been clarified regarding the determination of the cost basis of inherited immovable property and the tax treatment of family settlements after death. The super tax has been abolished for persons with an income of up to Rs500m, and the rate has been reduced from 10pc to 8pc for persons with an income of more than Rs500m. However, these concessions do not apply to banking, exploration and production and fertiliser sectors. Tax collection on export proceeds (1pc withholding tax and 1pc advance tax) has been reduced from 2pc to 1.25pc in order to encourage exports. The reduced tax rate of 0.25pc for exporters of IT and IT-enabled services has been extended from 2026 up to the tax year 2029. For foreign payments through cards, the advance tax on foreign remittances made through debit, credit, and prepaid cards has been reduced from 5pc to 0.5pc. Moreover, tax deducted on e-commerce transactions shall be adjustable for sellers having a turnover exceeding Rs200m. A tax credit equal to 10pc of the investment made in electronic resources for integration with the Federal Board of Revenue’s (FBR) computerised systems has been introduced to facilitate documentation and digital compliance. Advance tax on payments for foreign television plays and advertisements has been withdrawn. The FBR proposed an exemption from income tax for qualifying Special Purpose Vehicles established for asset-backed securitisation to facilitate capital market development. The turnover threshold for exemption from withholding tax for small traders has been increased from Rs100m to Rs200m. It has been proposed that funds and eligible non-profit organisations that meet prescribed conditions will be entitled to exemption certificates for the whole financial year. Income tax exemption has been extended to specified charitable and welfare organisations, including Pakistan Red Crescent Society, Shaheen Foundation, Bahria Foundation, Sindh Institute of Urology and Transplantation and Dawat-e-Hadiya. Sales tax relief measures The budget also brings wide-ranging changes in sales tax. It grants sales tax exemption to magazines and extends relief on the import of CKD kits for electric vehicles (EVs) until June 30, 2027. The scope of exemptions for aircraft parts imported and leased by Pakistan International Airlines Company Limited has been expanded, while exemptions have been introduced for strategic imports tied to the SCO summit and counterterrorism, as well as for capital goods needed to upgrade and overhaul refineries. At the same time, the exemption on family planning devices has been withdrawn and the so-called ‘tampon tax’ abolished. Sales tax relief has also been offered to boost strategic investment in shipping, alongside the addition of a new entry in the Sixth Schedule and extension of the sunset date for EVs to June 30, 2027. Customs relief measures Under the National Tariff Policy (2025 30), the government introduces broad tariff rationalisation, cutting customs duties on 92 tariff lines: rates of 20pc, 15pc, and 10pc are reduced to 15pc, 10pc, and 5pc, respectively, while the 5pc slab has been abolished. The additional customs duty has also been eased, with rates lowered from 6pc to 4pc on 449 tariff lines, from 4pc to 2pc on 2,107 lines, and eliminated altogether on 569 lines. Published in Dawn, June 13th, 2026
Pakistan bütçesi ücretlilere ve işletmelere vergi indirimi sunuyor- Güvenlik12 Haz
Rhode Island Joins Tax-the-Rich Push With New Millionaire Levy
Rhode Island joined the growing ranks of states with a millionaire tax, moving to shore up its budget in spite of warnings that the departure of even a few wealthy residents would hurt the nation’s smallest state.
Cash-starved govt doles out Rs2.35tr in tax exemptions
ISLAMABAD: The government on Thursday announced a decline in tax exemptions in the outgoing fiscal year — the first such reduction in recent years — according to the Pakistan Economic Survey 2025-26 unveiled by Finance Minister Muhammad Aurangzeb. The survey noted an unprecedented 3.37pc fall in tax exemptions, bringing the cost down to Rs2.353 trillion in FY26 from the downward-revised Rs2.434tr recorded in FY25. In FY25, the government had initially reported exemptions at Rs5.84tr, a sharp 51pc rise from Rs3.879tr a year earlier. However, the figure was later revised to Rs2.434tr, with the survey offering no explanation beyond a reference to “errata”. The decline in the cost of tax exemptions comes after seven consecutive years of increases, despite repeated government assurances that such concessions would be gradually curtailed under the International Monetary Fund programme. Economic Survey reports a rare decline in concessions after seven years’ increases Last year, the FBR had projected a sharp rise in the cost of tax exemptions, largely due to a Rs1.796tr waiver on domestically supplied and imported petroleum, oil and lubricants (POL) products. In the latest survey, however, the government omitted this figure. However, the government had already planned to raise more than Rs1.4tr through the petroleum development levy (PDL). The exemption is essentially fiscal in nature — provinces receive no share from this amount, while the federal government recovers the full proceeds through the PDL, which does not form part of the divisible pool. As a result, the federal government bears minimal actual cost, but provinces are excluded from revenue sharing on PDL collections. The value of tax exemptions has increased over the years. In FY18, it was Rs540.98 billion, rising to Rs972.4bn in FY19, Rs1.49tr in FY20 and then easing slightly to Rs1.314tr in FY21, before surging to Rs1.757tr in FY22. These tax concessions were extended to all sectors to promote industrialisation. The Economic Survey 2025-26 showed a slight increase in income tax exemptions, a decline in customs exemptions, and a modest rise in sales tax concessions. The fall in overall tax concessions comes at a time when the FBR is struggling with sizeable revenue shortfalls, marking the third consecutive year of missed collection targets. Tax exemptions refer to revenue foregone by the state across various categories for different industries and other groups. This is mainly due to exemptions on raw materials and semi-finished products, as well as concessions for specific sectors aimed at reducing input costs for export-oriented industries. Additionally, specific individuals are eligible for tax exemptions on certain perks and privileges. The total sales tax exemptions increased by 2.91pc to Rs1.273tr from Rs1.237tr in FY25. The cost of zero-rated exemptions under the Fifth Schedule fell to Rs8.774bn in FY26 from Rs81.108bn in FY25, a decline of 89.18pc. This is because the government reduced the zero-rated regimes for five export-oriented and some other sectors. For local supplies, the cost of exemptions under the Sixth Schedule decreased to Rs305.628bn in FY26 from Rs330.545bn in the previous year, a decline of 7.54pc. This is due to a massive withdrawal of exemptions on items under that schedule. Published in Dawn, June 12th, 2026
Squeezing tax from easy targets
ISLAMABAD: The federal government’s demand that provinces share the burden of the Federal Board of Revenue (FBR) collection shortfalls underscores an unsustainable fiscal strategy. The honest answer is that it is mostly political economy, not administrative incapacity, analysts say. There are some structural issues as well, but political economy remains at the heart of the problem. The Pakistan Economic Survey FY26 lists reforms ranging from digitalisation to enforcement that have yielded some gains; the larger question remains whether these measures can bridge the revenue gap without revisiting structural imbalances. Answering this question requires political will rather than wholly blaming the implementation organisation. The retail sector, despite its 17.8 per cent share in GDP, remains largely outside the tax net due to political considerations. At the same time, the petroleum sector, valued at Rs6-7 trillion, also lies outside the tax ambit, even as the federal government aims to collect nearly Rs1.5tr through the petroleum development levy (PDL) in FY26. For FY27, the target for PDL is projected at Rs1.7tr, alongside expectations that provinces will give up between Rs1.3tr and Rs1.7tr to cover FBR shortfalls. Without entering into technicalities, this effectively means that the federal government will withhold approximately Rs3tr from the provinces over and above the National Finance Commission award, without formally amending the accord. Retail and petroleum sectors remain largely untaxed; fiscal targets are increasingly met through levies and provincial surpluses This raises a fundamental question: is this a sustainable solution to the revenue collection problem, or merely a short-term measure to meet debt-servicing and defence spending requirements under the International Monetary Fund (IMF) programme? Dr Ali Hasanain, associate professor of economics at Lums, said successive governments, this one included, have repeatedly announced retail registration schemes, and they keep collapsing at the same point. Traders are an organised, politically connected constituency that every ruling coalition needs, while the salaried class is not. As a result, the path of least resistance is always to squeeze those already in the net, including salaried taxpayers, the corporate sector, and consumers, through indirect taxes, because withholding agents and employers do the collection for free. “Calling it ‘inefficiency’ lets policymakers off too easily; the FBR’s capacity problems are real, but the binding constraint is that broadening the net imposes concentrated political costs while raising rates on existing payers imposes diffuse ones,” he said. Development economist Dr Abid Qayum Suleri similarly argued that the FBR’s failure to bring sectors such as retail fully into the tax net is not simply an administrative problem. It reflects a combination of weak enforcement and lack of political will. The same problem appears in federal and provincial finances. The survey shows that provinces generated a surplus of Rs1.64tr during July to March FY26, compared with Rs1.05tr last year, Dr Suleri said. Such surpluses help Islamabad meet consolidated fiscal targets, but repeated dependence on provincial savings can weaken the spirit of fiscal federalism if it squeezes provincial spending on health, education, water, climate resilience and local infrastructure. For former FBR chairman Dr Irshad Ahmed, the current fiscal model is in a state of trap. “This time they begged provinces, but what will they do next time? How long will they survive on loan?” He also argued that the federal government is not willing to reduce its own protocols and expenditures. On the ongoing reforms, he maintained that what is being done is “old wine in a new bottle,” which has already been tried and failed and will definitely fail again. The survey does point to some tangible outcomes: tax returns filed rose 91.5pc to 7m, and net tax chargeable nearly doubled to Rs3.73tr. Production monitoring in the sugar sector generated Rs37bn in additional annual collection, while fake sales tax claims worth Rs9.8bn were blocked. More than 25,000 taxpayers joined the digital invoicing system, covering a combined turnover of Rs39.3tr. Point-of-sales registered retailer turnover rose to Rs2.9tr, while AI-based audit selection identified over 200 cases involving Rs13.3bn. Customs enforcement against petroleum smuggling yielded an additional Rs284bn. While the gains are real and meaningful, they are made within a deliberately constrained perimeter. Without addressing underlying incentives and structural imbalances, incremental reforms are unlikely to produce durable outcomes. Published in Dawn, June 12th, 2026
Oman walks a tightrope amid Trump's threats to 'blow them up'
Up until last week, it would have been unthinkable that a partner and mediating stalwart like Oman would be a target in Washington. Yet, here we are. President Donald Trump, in a characteristically offhand remark during a cabinet meeting, warned that Oman would “behave just like everybody else, or we’ll have to blow them up.” The comment was in response to reports that Oman was considering joining Iran in controlling and levying fees on shipping through the Strait of Hormuz. Treasury Secretary Scott Bessent followed up with a threat of “aggressive” sanctions. Oman, it should be remembered, has hosted U.S. naval port calls for decades. It mediated nuclear talks between Iran and the U.S. for years and has maintained nearly two centuries of uninterrupted diplomatic ties with Washington. This history makes the recent turn of events especially surprising. Iran, which effectively closed the Strait of Hormuz after the U.S.-Israeli strikes against it on February 28, now wants to reopen it while maintaining sovereign control. Tehran initially spoke of “tolls” for passage to offset damages from the conflict, but by May, after intense international backlash and questions surrounding legality of the move, it reframed the proposal as fees for navigation, security and environmental services. Tehran has reportedly discussed a joint arrangement with Oman, whose territory (the exclave Musandam governorate north of the United Arab Emirates) borders the strait’s southern flank. Oman however, has not publicly agreed or officially signed onto the idea. According to Bessent, Oman’s ambassador in Washington assured him that there are “no plans for tolling.” Indeed, the deeper source of American frustration stems from Muscat’s still-cozy ties with Iran against the background of a war that is not going in America’s favor. While other Arab Gulf states issue statements condemning Iran and sign U.N. resolutions against its actions, Oman has maintained silence. When Iranian drones struck Omani ports, Muscat acknowledged the attacks but stopped short of naming Iran as the culprit. Oman’s head of state, Sultan Haitham bin Tarik, was the only Gulf head of state to congratulate Mojtaba Khamenei on his appointment as Iran's new supreme leader after his father was killed by Israeli airstrikes in the opening blow of the joint U.S. and Israeli campaign against the Islamic Republic. And of course there’s the stunning essay in The Economist that Oman’s foreign minister, Badr al-Busaidi, penned a few weeks into the war. In it, he claimed that the U.S. “lost control of its foreign policy” and framed Iran’s retaliatory moves against Gulf neighbors as “the only rational option available.” For an administration that sees the world through the lens of “with us or against us,” such language registers as betrayal. But Oman’s approach has served it well in ways that became apparent during this war. Because of its openness to Iran and refusal to host permanent U.S. bases, it experienced a lower volume of attacks than its neighbors. Before the war, it mediated five rounds of nuclear talks between Washington and Tehran, and just before talks collapsed and strikes began, al-Busaidi flew to Washington personally and went on American television to make one last plea for diplomacy. The last ditch effort didn’t work, but this record of hosting, shuttling and being willing to tell both sides uncomfortable truths is what makes Oman irreplaceable, not just to the region's diplomatic architecture, but to any serious American effort to end the war. Washington appears to have reached the opposite conclusion. Multiple U.S. officials told Middle East Eye that frustration with Muscat’s messaging has been growing for months. More recent reporting suggests that the U.S. is applying pressure on Oman to sever its ties with Iran altogether. Apart from a carefully worded statement from May 29 — a readout of a phone call between Oman's foreign minister and his Iranian counterpart, which emphasized their “commitment to ensuring freedom of navigation in accordance with their sovereign responsibilities” — Muscat has been eerily quiet. Omani officials have not rushed to television studios or to social media platforms to clarify its relationship with Iran. But this silence reflects pressure Oman faces due to its unique geographic position. The Strait of Hormuz is just 21 miles wide at its narrowest, where Iran’s coastline faces Oman’s Musandam peninsula. Given the proximity, Muscat and Tehran have always had to coordinate on the strait. They are doing so now, and whatever this war’s settlement says about fees or tolls, they will continue to do so in the future. Iran has already signalled where it wants that coordination to lead. The New York Times reported on May 21 that Tehran had proposed a formal partnership, and that Oman — after initially rejecting the proposal — discussed sharing the revenue generated from fees charged. While Oman’s transportation minister publicly ruled out a pure toll in early April, citing international law, Muscat hasn’t publicly closed the door on a service-fee arrangement. Moreover, the sourcing is worth noting. It was Iranian officials that gave these accounts. Tehran has every incentive to project an acquiescence it has not yet secured. Oman’s participation would not make a fee regime legal, but it would make it considerably harder to characterize as a simple seizure of an international waterway by one party acting alone. Yet the fact that Oman has not denied these reports or clarified its position publicly does not necessarily mean that it is colluding with Iran to exploit the new conditions the war has created. Its ports are seeing increased traffic, owing to the fact that most of its coastline sits outside of the Strait of Hormuz. As a result of this and higher oil prices, which have bolstered its financial position, Oman’s economy is outperforming its neighbours. The International Monetary Fund predicts 3.5% growth in 2026. A naked pursuit of profit is therefore not only unnecessary, but would contradict the Sultanate's diplomatic heritage. The silence then is better understood as a recognition of the new reality that Iran will press its newfound advantage over the world's most important chokepoint. With its economy devastated by war and sanctions, Iran cannot ignore the leverage it derives from controlling the world's most important energy chokepoint. Iran knows it needs Oman’s cooperation to give any fee arrangement credibility. Oman knows it can de-escalate by making sure those fees never harden into an arrangement that is permanent or that looks like a toll. Caught between these two competing positions, silence begins to look like the most rational response. Muscat is not alone in trying to find a win-win. Qatar’s Deputy Prime Minister, speaking from Singapore on Saturday, stated that Doha opposes permanent fees, since “charging fees will always impact the consumer,” but added that a temporary levy (for mine-clearing or other services rendered) was “negotiable.” This follows the logic of Iran’s current proposal: not fees for passage, which are prohibited by international law, but fees for services provided, which are permitted — provided the fees are genuine and not tolls in disguise. The picture that emerges is of Oman and Qatar trying to find a formula that gives Iran enough to claim victory, gives the U.S. enough to avoid acknowledging that any of its red lines were crossed, and gives the global economy and shipping industry enough confidence to believe the strait is reopened. Against that backdrop, Oman’s studied ambiguity reads less like evasion and more like the neutral posture it has refined over decades, one that is designed to to keep all sides at the table. The Trump administration is reading Oman’s posture as sympathy for Iran, but this is a fundamental misunderstanding of how the sultanate has always operated. Its record speaks for itself: its back-channels helped produce the 2015 nuclear deal, it brokered the face-saving ceasefire between the Trump administration and Yemen’s Houthi’s last year, and it played a crucial role throughout the years securing the release of American hostages and prisoners in Iran and Yemen. By threatening to bomb and sanction one of the few U.S. partners Iran genuinely trusts, Washington risks eliminating an interlocutor whose help it will need to close whatever deal eventually ends this war.
Trump'tan Umman'a: 'Herkes Gibi Davranın, Yoksa Patlatırız'- Siyasi10 Haz
LHC dismisses plea against capacity payments to idle independent power producers
LAHORE: The Lahore High Court (LHC) has dismissed as non-maintainable a petition against the collection of capacity charges being received from the masses and paid to the power producers that are not producing any electricity. Justice Ahmad Nadeem Arshad announced a verdict reserved on the maintainability of the petition filed by an activist, Ashba Kamran. In his order, the judge observed that policymaking in the energy sector falls within the domain of the government and parliament, not the judiciary. He held that the court cannot function as an appellate forum for reviewing economic, financial and regulatory policies. He said mere disagreement with a policy does not constitute sufficient grounds for invoking the court’s constitutional jurisdiction through a writ petition. The petitioner had contended that the government, under the Constitution, cannot impose any tax without the approval of the parliament. She alleged that the government had violated the Constitution by imposing an unlawful levy in the form of capacity charges. Judge says energy sector’s policymaking domain of govt, not judiciary; disagreeing with policy not enough to file plea The petitioner argued that the government had introduced the capacity charges merely on the recommendations of the federal cabinet and the National Electric Power Regulatory Authority (Nepra) without adopting any legal mechanism or getting parliamentary approval. She further submitted that payments to local investors linked to the USD exchange rate and made from the national grid were unconstitutional. She argued that power companies were being paid trillions of rupees despite not generating electricity or operating their plants, which amounted to an injustice to the public. She claimed that Rs18.10 trillion had been paid to the independent power producers (IPPs) for unused electricity generation capacity and to the plants that remained inoperational. The petitioner asked the court to order the government that payments should be made only against the actual electricity supplied to the system. She also sought directions for the government to recover trillions of rupees paid in excess to the IPPs and to hold officials involved in the process accountable. Published in Dawn, June 10th, 2026
San Francisco’s ‘Overpaid CEO’ Tax Quashed with Billionaire Help
San Francisco voters rejected a union-backed ballot measure to raise taxes on large corporations doing business in the city, a win for billionaires who argued that the levy would harm the city’s economic recovery.
Respite needed
THE federal budget is rightly bemoaned as a futile exercise. The space available for anything particularly creative — meaningfully redistributive or growth-enabling — is extremely limited. Instead, nearly every budget of the last decade and a half has been an exercise in managing the fiscal deficit under an IMF programme. Once that’s accounted for, the remaining scraps are distributed as largesse mostly between different arms of the state (and those close to those arms). Every sitting government can, with some merit, claim to be the inheritor of a particularly bad situation. That this extractive revenue appetite is dictated by long-standing issues not of its own creation. That ballooning debt has to be serviced and for that more revenue is an inescapable necessity. That the luxury of pursuing growth does not exist, especially when the IMF looms large. That the straitjacket imposed by entrenched economic dysfunction cannot be thrown off so easily. This would be an evadable charge if it’s a party’s first time in government. But if time spent as the face of the federal government lies in the double digits, perhaps some reflection and accountability are merited. Stretching back to the previous assembly, this will be the current dispensation’s fifth straight budget (under three different finance ministers). Surely that’s enough time to muster some creativity and some resolve to escape the so-called straitjacket. Yet all one can fear is a familiar accounting exercise that aims to extract a few more rupees from a narrow, weary economic base. All one can fear is a familiar accounting exercise that aims to extract a few more rupees from a narrow, weary economic base. Within this base, it’s worth remembering that the vast majority of people are already reeling from a fresh cost-of-living crisis triggered by the imperialist war on Iran. With pump prices still at least 40 per cent higher than their pre-war base, and with second-order effects of pricier oil impacting at least 25pc of household spending, any further increase in the tax burden will be nothing short of disastrous. On the income tax front, the salaried segment has already been recast as a pliant, low-effort source of nearly half a trillion rupees annually. Those below the threshold who can’t be milked through this mechanism are still paying through the sales tax and petroleum levy net. The latter two in particular remain regressive in their incidence and impact. At a time when inflationary pressures have rendered real income growth stagnant for almost a decade, the increased direct and indirect tax burden represents an additional constraint on consumption. One hears plenty of stories of households actively downgrading their lifestyles under mounting financial pressure. Small car owners switching down to motorbikes; children being pulled out of category A or B schools and being sent to smaller, lower-cost ones. Spending on leisure making way for just the basic essentials. To counter these anecdotes, some officials and government partisans often respond by pointing out pockets of high consumption in major urban centres. Look at all the jam-packed restaurants. Look at all the footfall in shopping malls. Look at all the new specialty coffee shops opening not just in Lahore, Karachi and Islamabad, but also apparently in Faisalabad and Gujranwala. All of this is meant to do two things — the first is to undercut the story of economic hardship that depressing anecdotes (and the actual consumption surveys) tell us. The second thing is to provide a comforting story of economic progress that somehow exists beyond the data. For this reason, the notion of the informal economy is often trotted out — Pakistan may be ‘officially’ poor, but unofficially it’s doing much better. There are two things wrong with this approach. The first is that it assumes that the informal economy somehow shows distributional patterns different from the formal economy. Yes, like in any developing country, there is a small segment of privileged high earners who can eat at restaurants and drink matcha. And yes, some of their income will be undocumented and derived from the informal sector. However, this segment is small in relative terms. Pakistan just happens to be a very populous country. The top 1pc would still constitute 2.5 million people; a number large enough to occupy tables and shops in a few commercial localities in the top three to four cities of the country. At the other end, the vast majority of those working in the informal sector are scrambling to meet basic subsistence requirements. There is no major accumulation taking place, no pockets being lined, and certainly not enough being made to contradict the poverty and hardship that recent survey accounts categorically reveal. The second problem is that if one takes the ‘hidden prosperity’ argument at face value, it raises a far more serious question about the government’s ability to tax its citizens fairly. If undocumented wealth and high-end consumption driven by the informal economy are to be cited as proof of economic progress, then there is no good reason why more effort should not be directed at bringing them into the tax net with a view to easing the burden on those already ensnared. On that front, somehow the government repeatedly throws its hands up in meek despair, sustaining unearned privileges of various elites and the tax avoidance and evasion of specific lobbies (such as large retailers and wholesalers). In my view, if the budget is nothing other than an exercise in managing revenue, then there are only two metrics worth evaluating it on: to what extent does the government intend to cut down on its own waste and stop diverting resources towards improving the quality of life of its officials at the expense of the larger population? And to what extent is it spreading the burden outside a small formal sector and the hapless working Pakistanis currently caught in an extractive withholding and indirect tax regime? The writer teaches politics and sociology at Lums. X: @umairjav Published in Dawn, June 8th, 2026
Pakistan Bütçesi: IMF Kısıtları Altında Sınırlı Hareket AlanıJI warns of protests if budget is ‘anti-people’
LAHORE: Jamaat-i-Islami (JI) Emir Hafiz Naeemur Rehman has demanded the immediate abolition of the petroleum levy, substantial tax relief for salaried individuals and the empowerment of local governments, warning that the JI will launch a nationwide protest movement if the government presents an anti-people budget. Addressing a press conference at Mansoora on Saturday, Mr Rehman urged the government to take urgent and effective measures for the release of Pakistani citizens and others being held hostage by pirates near Somalia. He said the captives were facing severe shortages of food and water and stressed that it was the government’s responsibility to ensure their safe return home. Vice Emir Dr Ataur Rehman, Central Punjab Emir Javed Kasuri, Lahore Emir Ziauddin Ansari, Deputy Secretaries Nazir Ahmad Janjua and Azhar Iqbal Hassan, and Information Secretary Shakil Turabi were also present on the occasion. Condemning Israeli attacks in Palestine, Rehman said the bloodshed in Gaza continued despite a ceasefire. He criticised Prime Minister Shehbaz Sharif’s remarks about US President Donald Trump, describing such statements as inconsistent with national dignity. He said that those supporting forces responsible for the suffering of Palestinians could not be portrayed as champions of peace. The JI chief said the government was burdening the public by collecting heavy petroleum levies and had already generated trillions of rupees through the tax without undertaking meaningful reforms in the energy sector or improving refinery infrastructure. He demanded that petrol, electricity, and gas prices be reduced and frozen for at least three years to provide stability to the economy. The JI leader warned that the imposition of additional taxes in the upcoming budget would have devastating consequences for the economy, industry, and ordinary citizens. He called for complete income tax exemption for salaried individuals earning up to Rs125,000 per month and significant tax reductions for other salaried groups. He strongly criticised the outsourcing of public educational institutions and healthcare facilities in Punjab and other provinces, saying the government was shifting its constitutional responsibilities to the private sector, a move that could adversely affect the quality of education and healthcare services. Published in Dawn, June 7th, 2026
Jemaat-i-İslami'den 'halk karşıtı' bütçeye protesto uyarısıIsrael's permanent state of war comes with economic, social costs
The enormous costs of Israel’s multi-front war and Prime Minister Benjamin Netanyahu’s determination to turn his country into a “super-Sparta” of the Middle East are driving up the defence budget and raising fears of cutbacks in education and healthcare. The total cost of the series of interconnected regional conflicts that began with Hamas’s attack on Israel on October 7, 2023 stood at 405 billion shekels ($138bn) as of late April, according to the governor of the Bank of Israel, Amir Yaron. “That’s a huge figure, more than 17 per cent of GDP,” he said during a recent economic conference in Herzliya, north of Tel Aviv. Just the military campaign against Iran, which began with a wave of US-Israeli strikes on February 28, incurred an additional cost of 35bn shekels ($12bn) for the state up until a ceasefire took effect on April 8, according to an initial estimate by the finance ministry. Following the adoption of the 2026 budget in late March, the government noted the defence ministry’s budget had more than doubled since October 2023. To support the war effort, the government borrowed heavily on international markets in 2024 and 2025. It has reached the point where public debt now accounts for more than 69pc of GDP, compared to 60pc before the war, according to the Treasury. Taxes and social security contributions have also increased. ‘Trauma economy’ Israelis are “paying twice” for the war, said Esteban Klor, an economics professor at Jerusalem’s Hebrew University. The first cost, he told AFP, is via the decline in government social spending and reduced investment in public services resulting from several successive “across-the-board” budget cuts, even as “we are… increasing the debt”. “Education will suffer, the quality of infrastructure will decline, as will the performance of the healthcare system,” he said. The second cost is to economic growth, though this has been less visible as the Israeli economy quickly overcame the initial shock of the war. GDP had returned to its 2022 level by 2024 and is continuing to grow at an enviable rate. But the ongoing mobilisation of tens of thousands of reservists since October 2023 is also taking a toll. “Since… many of our workers are in the army rather than at their jobs, this affects production,” Klor explained. According to a survey published on June 1 by the Israel Democracy Institute (IDI) think tank, 31pc of respondents said they had experienced a decline in their wages or income since October 7, 2023. The phenomenon is hitting the self-employed and lowest-income workers the hardest. At the Herzliya conference, the deputy head of budgets at the finance ministry, Tamar Levy-Boneh, warned against a “trauma economy” — in which the sense of shock and failure from October 7 leads the military to constantly demand more funding to ensure the country’s security. “The security establishment must learn to meet its needs in a way that does not undermine the standard of living and must assume its share of responsibility,” Levy-Boneh said. ‘Super-Sparta’ But Netanyahu advocates the opposite view. In September 2025, he said Israel had no choice but to become a “super-Sparta”, a reference to the ancient Greek city-state devoted entirely to war. As divergences emerge between Netanyahu and US President Donald Trump regarding Israel’s offensive against Hezbollah in Lebanon and how to end the war with Iran, the Israeli premier is pushing for greater self-sufficiency. Under his vision, Israel would gradually wean itself off its reliance on the massive military aid it receives from the United States. He confirmed as such on May 3, vowing to invest 350bn shekels over the next decade in the national defence industry to ensure “overwhelming aerial superiority”. Economics professor Klor warned that the defence budget could exceed 10pc of GDP and called for a swift return to a “more reasonable” level. Israel is one of the developed countries where inequality is most glaring, and the dragging war is not helping. According to the latest available study by the Israeli National Insurance Institute, the proportion of children living below the poverty line rose from 27.6pc to 28pc between 2023 and 2024.
İsrail'in 'Süper Sparta' Vizyonu Bütçe Dengesini Sarstı