Pakistan petroleum union announces strike against new tax from July 5, government rejects ‘blackmailing’

A worker pumps petrol in a motorbike at a fuel station in Rawalpindi on July 16, 2023. (AFP/File)
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Updated 03 July 2024
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Pakistan petroleum union announces strike against new tax from July 5, government rejects ‘blackmailing’

  • Petroleum dealers association says government’s move to impose 0.5 percent advance tax will “devastate” their business
  • Pakistani official says government has taken steps to ensure “smooth” supply of petroleum products across the country 

ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) have announced it would close petrol pumps across the country on July 5 to protest the government’s decision to impose an advance tax on turnover, saying the move would “devastate” their businesses already reeling from high taxes and inflation. 

Petroleum dealers in Pakistan are demanding the government withdraw an advance income tax of 0.5 percent imposed in the recently passed federal budget 2024-25.

Pakistan’s tax-heavy $67.76 billion budget for the new fiscal year came into effect on Monday amid an annual inflation projection of up to 13.5 percent for June. The ambitious budget with a challenging tax revenue target of Rs13 trillion ($46.66 billion) has drawn the ire of the government’s allies and opposition alike. The revenue collection target for the new fiscal year is almost 40 percent higher than the last fiscal year. 

The PPDA says its members are earning minimal profit due to staggering inflation and high taxes. Talks between the government and the association this week failed to break the deadlock between the two sides. 

“We are going on a nationwide strike starting July 5 and plan to close petrol pumps across the country,” PPDA Chairman Abdul Sami Khan told Arab News on Wednesday. 

“Our demand is simple: the government should immediately withdraw the advance tax decision.”

Khan said the move would “devastate” the petrol pump business in the country, adding that dealers would be left with no other option but to wind up their businesses for good if the government does not reverse its decision.

“We are ready to discuss our concerns and possible solutions with the government,” Khan said. “We request the prime minister, petroleum minister and finance minister to immediately abolish this tax, otherwise we will be unable to continue running our businesses.”

Imran Ahmed, the director general of oil at Pakistan’s petroleum ministry, rejected the strike call. He said the government would not entertain “blackmailing tactics” but was willing to discuss petroleum dealers’ genuine concerns. 

“We will not support the strike or such tactics,” he told Arab News. “This new advance tax applies to all traders, not only petroleum dealers.”

Ahmed said the government is in talks with the dealers and their representatives, whom he said have also met officials of the Federal Board of Revenue (FBR), Pakistan’s tax authority. 

He said the ministry has instructed oil marketing companies to keep as many sites open as possible to ensure a smooth supply of petroleum products in the country. 

“We have also instructed PSO [Pakistan State Oil] to ensure maximum supply and storage of petroleum products by keeping their sites open,” Ahmed said. 


Islamabad urges Oman to expand deep-water port’s reach to Pakistan to enhance regional trade

Updated 6 sec ago
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Islamabad urges Oman to expand deep-water port’s reach to Pakistan to enhance regional trade

  • The development comes during Commerce Minister Jam Kamal Khan’s official visit to Oman
  • The minister reaffirms Pakistan’s commitment to boosting trade in industrial, logistics sectors

ISLAMABAD: Pakistani Commerce Minister Jam Kamal Khan has urged Oman to expand the reach of its deep-water port and free zone by connecting it through Pakistan to Central Asia and China to enhance regional trade cooperation, Khan’s ministry said on Tuesday.
The statement came during Khan’s three-day official visit to Oman where he spent his first day in the industrial hub of Sohar to discuss bilateral trade, investment and industrial collaboration between the South Asian nation and the Middle Eastern state.
Pakistan aims to leverage its strategic geopolitical position to enhance its role as a key trade and transit hub connecting landlocked Central Asian republics with the rest of the world. In recent months, there has been a surge of visits, investment talks and economic activity involving Gulf and Middle Eastern nations.
During his visit to Sohar Port, the Pakistani commerce minister was given a detailed briefing on the port’s state-of-the-art facilities and its role as a major trade and logistics hub.
“He emphasized the potential for enhanced trade cooperation, particularly in expanding Sohar Port and Free Zone’s reach through Pakistan to Central Asia and China,” the Pakistani commerce ministry said in a statement, following Khan’s meeting with Omani officials.
Khan, who was accompanied by Pakistan’s ambassador to Oman Naveed Safdar Bokhari and other officials, was presented with an overview of the integrated free economic zone and industrial city, highlighting Sohar Port’s strategic role in handling 80 percent of Oman’s international trade and industrial activities.
The commerce minister urged joint ventures between Pakistani and Omani businesses during his meeting with industrialists and business leaders.
“The minister reaffirmed Pakistan’s commitment to boosting trade with Oman, particularly in the industrial and logistics sectors,” the commerce ministry said.
Later, Khan was taken on a city tour where he offered prayers at the iconic Sultan Qaboos Mosque in Sohar.
Last August, Islamabad invited Oman to invest in Pakistan’s agriculture, mineral and IT sectors through the Special Investment Facilitation Council, a Pakistani civil-military body aimed at attracting foreign investment.
The South Asian nation has been making efforts to boost foreign investment in order to reduce its reliance on foreign debt to support its fragile $350 billion economy. There has recently been a surge in economic engagements between Pakistan and Saudi Arabia, United Arab Emirates, Uzbekistan, Azerbaijan and other nations.


Pakistani architect Yasmeen Lari turns down Israel’s Wolf Prize over ‘genocide’ in Gaza

Updated 1 min 49 sec ago
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Pakistani architect Yasmeen Lari turns down Israel’s Wolf Prize over ‘genocide’ in Gaza

  • The Wolf Prize is an international award granted in Israel to scientists, artists for achievements in ‘interest of mankind and friendly relations among people’
  • Lari, who works in the intersection of architecture and social justice, says declining the award was ‘the very least I could do’ given the situation in Gaza

KARACHI: Renowned Pakistani architect Yasmeen Lari has refused to accept the prestigious Wolf Prize 2025 in the field of architecture over the “continuing genocide” of Palestinians in Gaza, she confirmed on Tuesday.
The Wolf Prize is an international award granted in Israel since 1978 to living scientists and artists for their “achievements in the interest of mankind and friendly relations among people.”
It is awarded in six fields, including agriculture, chemistry, mathematics, medicine, physics, and an arts prize that rotates between architecture, music, painting and sculpture.
Lari, who works in the intersection of architecture and social justice, wrote to Wolf Foundation that she was grateful for the honor, but could not accept it “in view of the unfortunate continuing genocide in Gaza.”
“I declined the award because of the ongoing genocide in Gaza, a reason I explicitly stated in my response to them. Given the current situation in Gaza, accepting the award was out of the question,” she told Arab News.

Pakistani architect Yasmeen Lari speaks during an interview with Arab News at her office in Karachi on July 20, 2024. (AN Photo/File)

The development came as Israeli fire killed eight people in the Gaza Strip in the past 24 hours, Palestinian officials said on Tuesday, even as a fragile ceasefire with Hamas has largely held. Israel last week suspended supplies of goods and electricity to the territory of more than 2 million Palestinians as it tries to pressure Hamas to accept an extension of the first phase of their ceasefire, which ended on March 1.
Israel wants Hamas to release half of the remaining hostages in return for a promise to negotiate a lasting truce. Hamas instead wants to start negotiations on the ceasefire’s more difficult second phase, which would see the release of remaining hostages from Gaza, the withdrawal of Israeli forces and a lasting peace. Hamas is believed to have 24 living hostages and the bodies of 35 others.
Israel’s war on Gaza, which began after Oct. 7, 2023 attacks by Hamas, has killed more than 48,000 Palestinians, a majority of them women and children. The 15-month Israeli military campaign has laid waste to the Gaza Strip, destroying hospitals, schools and entire residential neighborhoods.
“Declining the award was the very least I could do,” Lari told Arab News.
Lari is known for her socially conscious works on humanitarian grounds and for catering to the spatial needs of Pakistan’s most marginalized communities. She co-founded the Heritage Foundation of Pakistan with her husband, Suhail Zaheer Lari, in 1980, and has constructed over 50,000 sustainable self-built shelters and over 80,000 ecological cooking stoves using natural materials like mud, lime, and bamboo.
The philanthropic architect, who advocates that traditional construction techniques can lead to low-impact carbon-neutral buildings, was awarded the prestigious Royal Institute of British Architects Royal Gold Medal in 2023 for her humanitarian work.


Pakistan police arrest three after father commits suicide over forced marriage of minor girl

Updated 11 March 2025
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Pakistan police arrest three after father commits suicide over forced marriage of minor girl

  • The 11-year-old was forcibly given in marriage by a village council in Dera Ismail Khan to settle a dispute
  • Police say neither the girl’s father nor villagers reported the incident on time to help prevent it

PESHAWAR: Police have arrested three suspects and members of a local Panchayat (village council) in connection with the forced marriage of a minor girl under Vani, a tribal custom used to settle feuds, in a remote area of Khyber Pakhtunkhwa, according to a senior police official and a local elder.

The incident, which took place in the Bhagwani Shumali area of Paharpur, the main town in Dera Ismail Khan district, involved an 11-year-old girl from a low-income family being forcibly given in marriage to resolve a dispute last Friday.

Vani is an illegal practice where minor girls are handed over as compensation in cases involving murder or allegations of illicit relations.

Gohar Ali, Superintendent of Police (SP) for the Paharpur region, told Arab News that police acted swiftly upon receiving audio messages from the girl’s father, whom he identified only by his first name, Adil, and who died by suicide following the Panchayat’s decision.

Adil, a local barber, ingested poisonous pills after recording distressing audio messages naming the accused.

“The police immediately launched raids, rescued the minor girl and handed her over to her family,” the police officer said. “Three main suspects identified by the deceased person have been arrested, along with two members of the Panchayat. Additionally, Rs600,000 [$2,144] extorted from Adil by the makeshift council has been recovered,” the police officer added.

Malik Inayatullah, a local elder and chairman of the village peace committee, told Arab News he witnessed how the entire incident unfolded.

“The deceased left behind six daughters, including the one given to the rival family under the custom of Vani, and had no male child,” he said.

“The decision of the Panchayat is regretful,” Inayatullah continued. “It has not only robbed a young girl of her future but also cost her father his life. We have already extended our support to the girl’s family and will provide all possible help to rebuild their lives.”

The local elder said the dispute began when a local landlord accused Adil’s nephew of having illicit relations with the daughter of an influential figure in the area.

The latter convened the Panchayat before abducting Adil, subjecting him to torture and forcing him to sign a stamp paper agreeing to give his daughter in Vani to settle the matter.

“Neither Adil nor any villagers reported the incident to the police [on time], which could have prevented this tragic outcome,” police officer Ali said.

He said police were now investigating the case from multiple angles to ensure justice is served to the aggrieved family.


PM expresses satisfaction over progress as IMF in Pakistan for first review of loan program

Updated 17 min 46 sec ago
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PM expresses satisfaction over progress as IMF in Pakistan for first review of loan program

  • An IMF mission is currently in Pakistan to analyze Islamabad’s progress on key conditions as part of first review of its $7 billion program
  • Shehbaz Sharif says the program is vital to Pakistan as its federal reserves, inflation, banking system and policy rate are all linked with it

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday expressed satisfaction over Pakistan’s progress regarding an ongoing International Monetary Fund (IMF) program and macroeconomic stability in the country.
The South Asian country, which has faced an economic meltdown in recent years, is treading a long path to economic recovery under a $7 billion IMF program it secured in Sept. last year.
An IMF mission is currently in Pakistan to analyze Islamabad’s progress on key conditions as part of first review of the facility. A successful review will result in the release of around $1 billion to Pakistan as second installment under the program.
Speaking to his cabinet members, Sharif said the ongoing negotiations with the IMF were “satisfactory” and moving forward in a good manner.
“The IMF mission is here [in Pakistan]. The foreign minister and his team, and other ministers are holding talks with it,” the prime minister said in televised comments.
“I believe this program is important for our growth because our federal reserves, inflation, core inflation, your banking system, lowering of policy rate, all these are linked with this.”
Finance Minister Muhammad Aurangzeb last month said they were confident of meeting targets of the IMF program. Pakistan was able to build some trust with the IMF by completing a short-term, nine-month program last year.
Previous loan programs in Pakistan ended prematurely or saw delays after the governments at the time faltered on meeting key conditions.
Sharif said Pakistan’s growth was vital to meeting these conditions and for that, agriculture, industries, commerce, finance, IT, mines and minerals and maritime sectors were of great significance, hoping his cabinet’s members would transform their ministries to this effect.
“A complete transformation of railways is required. Similarly, there is huge potential in maritime,” he said.
“There would be a review of our ministries every three months, I will sit with you and the results of the review will be presented before the nation.”


Pakistan sets sights on record $36 billion remittances this year

Updated 11 March 2025
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Pakistan sets sights on record $36 billion remittances this year

  • Pakistan recorded year-on-year growth of 38.6 percent in remittances with record inflows of $3.1 billion in February, central bank said on Monday
  • Among factors driving up remittances are reforms to curb illegal foreign exchange trading and incentives implemented by the central bank

KARACHI: Pakistan hopes to receive record $36 billion remittances this fiscal year through June, the finance minister said on Tuesday, as the South Asian nation seeks to boost its foreign exchange reserves in line with the tough conditions of an International Monetary Fund (IMF) loan program.

The lender wants Islamabad to increase its foreign exchange reserves to a level that can finance three months of imports. Presently, the country holds $11 billion reserves, providing two months of import cover.

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting balance of payments.

Pakistan recorded year-on-year growth of 38.6 percent in remittances with record inflows of $3.1 billion in February, the central bank said on Monday.

“In this fiscal year [2024-2025], we will again complete it at an all-time high,” Finance Minister Muhammad Aurangzeb said in a televised speech. “At this moment, our estimate is that about $36 billion remittances inflow will come into the country.”

In February 2025, according to central bank data, Pakistan received its highest inflows from Saudi Arabia, $744.4 million, followed by the UAE, which contributed $652.2 million. Remittances received from the United Kingdom and the United States stood at $501.8 million and $309.4 million respectively.

“Cumulatively, with an inflow of $24 billion, workers’ remittances increased by 32.5 percent during July to February FY25 compared to $18.1 billion received during July to February FY24,” the central bank said in a statement. 

Among factors driving an increase in remittances are reforms that have curbed illegal foreign exchange trading and incentives implemented by the State Bank of Pakistan. Decreased global inflation rates have encouraged Pakistani migrants to send more money back home. 

Families in Pakistan are also relying more on financial support from relatives working abroad due to inflation at home.

Pakistan’s consumer inflation rate slowed to a near decade low of 1.5 percent in February, largely due to a high year-ago base. That was below the government’s forecast and significantly lower than a multi-decade high of around 40 percent in May 2023.

The central bank’s policy committee said on Monday it expected inflation to fall further before gradually inching up and stabilizing within the state bank’s 5-7 percent target range.

The state bank kept its forecast of full-year GDP growth at 2.5 percent to 3.5 percent and said it expected economic activity to gain further momentum.

Pakistan’s economy grew by 0.92 percent in the first quarter of the fiscal year 2024-25 which ends in June.

On Monday, the central bank unexpectedly halted its easing cycle, keeping its key policy rate at 12 percent, saying there could still be price risks including from an escalation in global tariffs even though inflation was falling for now.