ISLAMABAD: Pakistan has decided to establish electronic data interfaces with different countries including the United Arab Emirates, European states, Afghanistan, Hong Kong and Singapore to curb under-invoicing and tax evasion, officials said on Thursday.
The government has been struggling to combat incorrect declaration and under-assessment of goods by importers to evade customs duty. Importers usually change invoices in the connivance with government officials to pay minimal taxes while clearing their consignments from ports.
“The under-invoicing and tax evasion by importers run into millions of rupees annually and we want to curb it by coordinating other countries,” Dr. Hamid Ateeq Sarwar, Member Inland Revenue Policy at the Federal Board of Revenue (FBR), told Arab News.
Elaborating the plan, he said the electronic data interface with Afghanistan will be established by February this year and the project will then be extended to other countries as well in different phases.
“We don’t expect much to gain from Afghanistan as they don’t have the capacity to handle the imports and exports, but at least we will be able to find difference in invoices of importers if any of them attempts to alter them,” he said.
Sarwar said the FBR was planning to complete the project with the UAE, European countries and Singapore by June this year. “Once we are connected with the electronic data interface of a country, it will be almost impossible for importers to alter their invoices,” he said.
The cash-strapped South Asian nation has been struggling to increase its tax revenues by combating smuggling and under-invoicing by importers.
The country has suffered an economic loss of around $11 billion in terms of customs duties and withholding tax during 1972 to 2013 as the under-invoicing was recorded to be around $92.7 billion during the period, according to Mukarram Jah Ansari who is director-general valuation at the FBR.
Pakistan has been working closely with the World Customs Organization, an intergovernmental body headquartered in Brussels, Belgium, to sign agreements with other countries for electronic data interchange.
“We have been receiving very encouraging response from all the countries … numerous international organizations have been helping us to reform our tax system,” Sarwar said. “In today’s age, all the countries have open economies and it is in their interest as well to sign such mutual pacts.”
On the other hand, importers and businessmen have welcomed the move, hoping it will help discourage smuggling of the goods and boost genuine imports and business in the country.
“Once the smuggling and under-invoicing of the imported goods is stopped effectively, we will witness a competition among genuine importers which will boost the economy and increase revenue collection,” Anjum Nisar, chairman Pakistan Fast-Moving Consumer Goods Importers’ Association, told Arab News.
Pakistan to coordinate with UAE, Europe to curb under-invoicing, tax evasion
https://arab.news/6cxbs
Pakistan to coordinate with UAE, Europe to curb under-invoicing, tax evasion
- The project will make it ‘almost impossible’ for importers to alter invoices, say FBR officials
- Importers welcome the move, saying it will boost economy and increase tax collection
Pakistan unveils ‘fastest’ EV charging station in Islamabad
- 120KW EV charging station can recharge electric vehicles within 30-60 minutes
- Government approved national EV policy in 2019, setting target of 30 percent EVs by 2030
ISLAMABAD: Power Minister Sardar Awais Leghari has inaugurated the country’s fastest Electric Vehicle (EV) charging station in Islamabad, the state broadcaster reported this week, as Pakistan moves to enact reforms of the energy sector designed to boost demand.
The government approved the National Electric Vehicles Policy (NEVP) in 2019, setting a target of 30 percent EVs by 2030.
“EVs are the future of Pakistan and the government is committed to promoting green energy,” Radio Pakistan quoted Leghari as saying on Tuesday as he inaugurated a 120kW EV charging station, which enables faster charging than standard residential chargers (3-7 kW), allowing EVs to recharge typically within 30-60 minutes.
Leghari also said the cost of electric charging units had been reduced from Rs71 to Rs39 [$0.14], which was expected to lower transportation expenses, positively impacting goods delivery and essential commodity prices.
Earlier this year, Pakistan announced a 45 percent reduction in power tariffs for electric vehicle charging stations. The government is also planning financing schemes for e-bikes and the conversion of two and three-wheeled petrol vehicles.
According to a report submitted to the government by power ministry adviser Ammar Habib Khan and seen by Reuters, there are currently more than 30 million two- and three-wheeled vehicles in Pakistan, which consume more than $5 billion worth of petroleum annually. The ministry plans to convert 1 million two-wheelers to electric bikes in a first phase, at an estimated net cost of 40,000 rupees per bike, according to the report, saving around $165 million in fuel import costs annually.
BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, told Reuters in September that up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.
In January, China’s ADM Group revealed plans to invest $250 million in setting up an electric vehicle manufacturing plant in Pakistan.
Punjab set to launch Pakistan’s first carbon credit project at Lahore dumping site
- Mehmood Booti dumpsite near Lahore’s Ring Road has amassed 13 million tons of waste, causing environmental hazards
- Official says project includes capturing methane, treating waste and transforming site into urban forest and solar park
ISLAMABAD: The government in Pakistan’s eastern Punjab province is set to launch the country’s first-ever carbon credit project “soon” at a decades-old dumping site in Lahore, aiming to reduce pollution and mitigate climate risks, an official confirmed on Wednesday.
The Mehmood Booti dumpsite, a 42.98-acre landfill near Lahore’s Ring Road area, has been accumulating waste since 1997. Over the years, it has amassed 13 million tons of waste, leading to severe environmental hazards including toxic groundwater contamination, hazardous air pollution, and methane emissions.
Lahore, the capital of Pakistan’s eastern province of Punjab, has repeatedly ranked among the world’s most polluted cities in international air quality indices, with smog causing severe health issues for residents every winter.
Carbon credit projects are initiatives that reduce, remove or prevent the emission of greenhouse gases. These projects generate carbon credits, which can be sold to companies or individuals looking to offset their carbon footprint.
“RUDA [Ravi Urban Development Authority] is taking a historic step toward environmental sustainability by rehabilitating the Mehmood Booti dumpsite,” Alishba Tajwar, deputy director of communication and environment at RUDA, told Arab News.
“And is all set to launch Pakistan’s First-Ever Carbon Credit Project at the site very soon after testing as most of the work has been completed.”
The official said the rehabilitation project included initiatives such as capturing methane, leachate treatment [which treats leachate, a contaminated liquid that drains from landfills or waste sites] and transforming the site into an urban forest and solar park.
“This project not only addresses severe environmental challenges posed by the 13 million tons of waste accumulated over decades but also introduces innovative solutions to repurpose waste into hydrogen energy,” Tajwar said.
Pakistan is among the countries most at risk from climate change, as per the Global Climate Risk Index. Extreme weather events like floods, droughts, cyclones, torrential rainstorms, and heat waves have been occurring more frequently and with greater intensity across the country in recent years.
She said the initiative aims to reduce pollution, cut carbon emissions by one million tons over 15 years and align Pakistan with global sustainability goals.
She said methane emissions from the dumpsite will be captured and converted into usable energy, adding that the carbon credit mechanism in the rehabilitation project followed a structured process that enables monetization of emission reductions through global carbon markets.
The RUDA official said this project represented a Rs5 billion ($17.86 million) investment, making it one of Pakistan’s most ambitious environmental initiatives.
“With an expected issuance of 100,000 tons of carbon credits per year, it will generate Rs2 billion ($7.14 million) in revenue annually, reinforcing Pakistan’s climate finance strategy,” Tajwar said.
She said captured methane will either be converted into energy or flared using advanced gas recovery technology, significantly lowering greenhouse gas emissions.
Tajwar said the project involved collecting solid waste, treating it to extract usable gases and converting those gases into hydrogen.
“This hydrogen can then be utilized for various energy needs, including electricity generation, industrial uses, and even fuel for hydrogen-powered vehicles,” she explained.
‘POSITIVE IMPACT’
Environmental experts termed this initiative as a much-needed step to reduce pollution and address environmental challenges faced by Lahore residents.
Asif Mahmood, a Lahore-based environment expert, said this was an environmentally friendly project initially proposed by the interim government in 2023 to transform the site into a solar park.
“In 2019, dangerous methane gas clouds were observed emerging from the site, affecting not only the surrounding area but also the entire city,” he told Arab News.
Mahmood said rehabilitation work at the site had already made a noticeable difference, with one of the most evident improvements being the elimination of the foul odor that previously affected surrounding areas for several kilometers.
Asif Ali Sial, a Lahore-based environment lawyer, said the project will have a positive impact by providing relief to the city’s residents from solid waste pollution.
“A series of garbage piles at the site has been causing significant harm to residents and the environment,” he said.
“Therefore, this project will have a positive impact on the city’s surroundings and overall environmental quality.”
Pakistani stocks, currency appreciate in response to Islamabad-IMF staff-level agreement
- IMF on Tuesday announced reaching staff-level agreement with Islamabad on first review under Extended Fund Facility
- Stocks close at 117,772 points, gaining 1 percent while the rupee inches 0.1 percent up to close at Rs280.2 against the greenback
KARACHI: Pakistan’s stocks and currency markets on Wednesday reacted positively to Islamabad’s staff-level agreement (SLA) with the International Monetary Fund (IMF), with financial analysts noting that the agreement has eased market sentiments.
The IMF announced on Tuesday it had reached a staff-level agreement on the first review under Pakistan’s Extended Fund Facility (EFF) and on a new arrangement under the Resilience and Sustainability Facility (RSF).
Subject to approval from the IMF’s Executive Board, the SLA will ensure “Pakistan will have access to about $1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about $2.0 billion,” the global lender said.
The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) rallied to an intraday high of 118,220 points on Wednesday, gaining 1.4 percent or 1,588 points from the previous close. The stocks closed at 117,772 points with a 1 percent total increase.
“Definitely, the IMF agreement on Pakistan’s first review and climate financing was a major trigger for the market,” Sana Tawfik, the head of research at Arif Habib Ltd. brokerage company, told Arab News.
The current IMF review is critical for debt-ridden Pakistan, which has been grappling with a balance of payment crisis and has so far recorded a $691 million surplus this year in eight months till February, compared with its $1.7 billion deficit a year earlier.
Pakistan is carrying out IMF-backed structural reforms and expects to expand its economy by 3.6 percent this fiscal year.
“We are committed to structural reforms for sustainable long-term growth and prosperity,” Pakistan’s finance adviser Khurram Schehzad told Arab News.
Pakistan’s stock index rose 89 percent to 78,445 points last year in June, according to data from the Pakistan Stock Exchange.
Tawfik said she expected the index to increase to a record 123,000 points by June this year, once Pakistan receives the IMF’s first tranche under review.
“The overall market sentiments are IMF-driven,” Tawfik noted.
STABLE RUPEE OUTLOOK
Pakistan’s national currency also appreciated on Wednesday, inching 0.1 percent up to close at Rs280.2 against the US dollar in the interbank market.
After depreciating about 0.7 percent this year since July, the rupee has stabilized in the range of Rs280-281 against the dollar.
“The rupee would have taken a hit had this agreement not been made,” Owais ul Haq, a foreign exchange dealer at Arif Habib Ltd., told Arab News.
Haq said he expected the rupee to remain stable at the Rs280-281 mark, adding that anything below this rate would hurt exporters.
A healthy inflow of remittances stabilizes the supply of dollars in the country, helping the rupee stay stable against the greenback.
Pakistan expects to receive more than $35 billion in remittances this year through June, as overseas Pakistan remitted a record $1.3 billion in February, primarily due to “seasonal factors” such as Ramadan and Eid.
“I see a stable outlook for the rupee going forward,” Haq said.
Muhammad Zafar Paracha, secretary general at the Exchange Companies Association of Pakistan, agreed the IMF agreement would help the rupee stay stable against the dollar.
“The investors were feeling a bit jittery, but this IMF agreement has eased market sentiments,” he said.
“The rupee has shown some appreciation in the interbank and open market and will strengthen more in the days to come,” he added.
Addressing the federal cabinet on Wednesday, Prime Minister Shehbaz Sharif said Pakistan’s agreement with the IMF would help it ensure long-term economic stability.
Sharif noted that Pakistan was able to increase its tax-to-GDP ratio to 10.6 percent, exceeding the IMF’s target of 10.2 percent.
“This is the highest tax collection ratio in the last four years,” he said.
The prime minister said that the IMF required his government to collect Rs12.9 trillion in taxes this year but then agreed to revise its target to Rs12.1 trillion rupees.
Pakistani authorities fixed the tax collection target to Rs12.33 trillion and were able to increase collection by 26 percent, he said, describing it as a “quantum jump.”
Pakistan says seeking investment and technical support from China, not aid
- Finance Minister Muhammad Aurangzeb is in China for four-day Boao Forum for Asia economic conference
- Aurangzeb highlights agriculture, information and technology as important sectors for bilateral collaboration
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb said on Wednesday that Islamabad was seeking investment and technical assistance from China rather than just aid, identifying agriculture, information and technology as important sectors for bilateral collaboration.
Aurangzeb is currently attending the four-day Boao Forum for Asia Annual Conference 2025 in China. The forum, often referred to as the “Asian Davos,” is a high-level platform where leaders from government, business and academia across Asia and other continents gather to discuss pressing global and regional issues.
China is a major ally and investor in Pakistan that has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC), a part of the Belt and Road Initiative that is a massive China-led infrastructure project that aims to stretch around the globe.
“We are grateful [to China] on the financing side but going forward, we now want investment from China not aid,” Aurangzeb told the China Global Television Network (CGTN) at the sidelines of the conference. “Secondly, we want technical support and assistance.”
The finance minister said China could immensely help Pakistan in boosting its agriculture, information and technology sectors.
Aurangzeb praised China for taking strides in green projects, saying that Pakistan would try its best to learn from its neighboring country on how to tackle the climate change crisis.
“The way Beijing’s pollution was eliminated in record time, we have the same problem in Lahore,” he said. “So there are various sectors where we are working with China and will continue to do so.”
During his address at the conference earlier on Wednesday, Aurangzeb proposed the formation of a global coalition of developing nations to collectively advocate for fair trade and better representation in international financial institutions, criticizing the global economy as unequal.
“Developing countries must unite to demand fair trade principles and improved representation in global financial institutions,” Aurangzeb said, according to a finance ministry statement.
China’s help for Pakistan is crucial at this stage, given the 241-million-strong country has been grappling with a macroeconomic crisis that has adversely impacted its foreign reserves, weakened its national currency and caused a balance of payments crisis.
The country has undertaken some economic reforms in recent months which seem to have yielded fruit as its inflation has gone down and its foreign reserves have increased.
Pakistan has increasingly sought to attract international investment from China, Central Asian states and Middle Eastern allies such as the UAE and Saudi Arabia as it seeks to reduce its dependency on the International Monetary Fund (IMF) for financial bailout packages.
It formed the Special Investment Facilitation Council (SIFC) in 2023 to fast-track decisions related to foreign investment in mining and minerals, agriculture, livestock, tourism and other priority sectors.
Pakistan to restore train services from Quetta this week after deadly hijacking
- 31 soldiers, staff and civilians killed as BLA separatists hijacked Jaffar Express train in Balochistan earlier this month
- BLA is largest and strongest of several ethnic Baloch groups fighting for decades to win independence for Balochistan
QUETTA: Pakistan Minister for Railways Hanif Abbasi said on Wednesday train operations from Quetta Railway station in the southwestern Balochistan province would be fully restored from Mar. 28 while Jaffar Express, the victim of a deadly hijacking by militants earlier this month, would resume services to Peshawar from tomorrow, Thursday.
The separatist Baloch Liberation Army claimed responsibility for the Mar. 12 attack on the Jaffar Express, during which they blew up train tracks and held passengers hostage in a day-long standoff with security services in a remote mountain pass. The death toll included 31 soldiers, staff and civilians.
Addressing a news conference in Quetta, Abbasi said Jaffar Express would depart for the northwestern city of Peshawar tomorrow, Thursday, but full-scale train services from Quetta would be restored on Mar. 28.
“Although we don’t have enough strength of Railway Police Forces, many stations require fencing and other security equipment,” he told reporters, admitting that railways facilities in the province faced security challenges.
“We are recruiting 500 soldiers in the Pakistan Railway Police and 70 percent of the recruitment would be for Balochistan,” the minister added. “We have planned new security strategies with the frontier corps and other law enforcing agencies.”
He also announced a special Eid train from Quetta Railway station with fool-proof security for passengers.
“We are very much optimistic about better security to the railway’s passengers in Balochistan,” Abbasi said.
“We have repaired all damaged carriages of the attacked Jaffar Express, and new rack of carriages would be included in the train operations from Balochistan.”
The BLA is the largest and strongest of several ethnic Baloch insurgent groups which have been fighting for decades to win independence for the mineral-rich province, home to major China-led projects including a port and gold and copper mines.
