Pakistani flour mills observe nationwide strike over withholding tax dispute

A worker checks flour during the wheat grind process at a mill in Karachi on January 21, 2020. (AFP/File)
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Updated 11 July 2024
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Pakistani flour mills observe nationwide strike over withholding tax dispute

  • Flour mills vow to continue indefinite strike until government reverses 5.5% withholding tax on flour
  • Strike takes place as Pakistan navigates tricky path to economic recovery amid staggering inflation 

ISLAMABAD: Hundreds of flour mills across Pakistan remained shut on Thursday as their owners announced an indefinite strike against the government’s move to impose a new withholding tax, exacerbating fears of a food shortage in many parts of the country. 

The Pakistan Flour Mills Association (PFMA) says the government has imposed a 5.5 percent withholding tax on sales of flour mills in the national budget. Javed Yusuf, a former chairperson of the PFMA, said the government has also directed flour mills to collect another 2.5 percent withholding tax on the sale of essential commodities to retailers (non-filers) and 2 percent from wholesalers (non-filers). The association says it has been tasked to collect a 0.5 percent withholding tax on the sale of flour from retailers (filers) and a 0.10 percent tax from wholesalers (filers).

Pakistan’s president last month signed the tax-heavy controversial budget into law. The ambitious budget has a tax revenue target of 13 trillion rupees ($46.66 billion) for the current fiscal year, up about 40 percent from the previous one. Pakistan’s government took the unpopular measures amid negotiations with the International Monetary Fund (IMF) for a fresh loan program. The IMF has insisted the government undertake tax reforms to raise revenue and generate fiscal space. 

“We are observing a nationwide strike against the government for imposing taxes and making flour millers the tax collection agents,” Yusuf told Arab News. “Our strike will continue till the government accepts our demand of withdrawal of all taxes levied in the budget.”

He said 1600 flour mills across the country remained shut on Thursday, adding that they employed over 4,000 people directly. 

“We cannot collect taxes on behalf of the FBR, it’s not our job,” Yusuf said. 

Speaking to a private news channel on Wednesday, PFMA Chairman Asim Raza criticized the government for taxing an essential commodity such as flour. 

“If the government does not provide us this [tax] exemption like it did previously, then we won’t be able to run the industry,” Raza said. “Then it will be an addition of Rs200 [$0.72] to the price. The government will notify the prices and we will sell it at the inflated rate.”

The strike takes place as Pakistan navigates a tricky path to economic recovery amid staggering inflation and a macroeconomic crisis. The South Asian country has been scrambling to secure foreign investment and external funding from allies in a bid to keep its fragile $350 billion economy stable. 

Pakistan has been grappling with an acute balance of payments crisis, a weak currency and double-digit inflation that reached a record high of 38 percent in May 2023. 
 


Thousands rally across Pakistan against Israeli airstrikes in Gaza, urge Muslim states to act

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Thousands rally across Pakistan against Israeli airstrikes in Gaza, urge Muslim states to act

  • Jamaat-e-Islami, the country’s key religio-political party, called the protest across Pakistan
  • JI chief urges building a strong pro-Palestine movement and preparing for a nationwide strike

KARACHI: Thousands of supporters of a prominent Pakistani religio-political party poured into the streets of Lahore and other major cities on Friday to protest Israel’s military strikes in Gaza, with their leaders demanding urgent action from Muslim states to stop the bloodshed.

The call for nationwide demonstrations came from Jamaat-e-Islami (JI) after intensified conflict in Gaza, which began in October 2023. International efforts for a ceasefire have not held, with reports indicating the Palestinian death toll has surpassed 50,000, with a significant number of women and children among the casualties.

Pakistan has long advocated for an independent Palestinian state based on pre-1967 borders with Al-Quds Al-Sharif as its capital and does not recognize Israel.

Addressing a large gathering in Lahore, the JI chief, Hafiz Naeem-ur-Rehman, urged Muslim leaders to get united.

“Liberating this occupied land is the duty of every Muslim,” he said. “When our paths are blocked [as individuals], it becomes the responsibility of [Muslim] rulers and their armies. Even a small step forward can lead to a ceasefire.”

In his speech, Rehman emphasized the historical and ideological connections between Pakistan and Palestine, remembering how his country's founder, Muhammad Ali Jinnah, made them clear.

“When Israel was imposed as an illegitimate entity [over Palestinian territory and people] in 1948, Quaid-e-Azam [Jinnah] said that Israel was the illegitimate child of the West, a tool created for their use,” he continued.

The JI chief also highlighted the engagement of Dr. Muhammad Iqbal, Pakistan’s national poet-philosopher, with the Palestinian issue, mentioning his attendance at a conference in Palestine in 1931.

“That is the foundation of Pakistan’s connection with Palestine, and it was a stated policy of our country that we promised never to recognize Israel,” he added. “So, if anyone talks about a two-state solution, or speaks in favor of Israel in secrecy, we want to make it clear that there is only one state — the state of Palestine — and it is under occupation.”

Rehman called for sustained public pressure on governments around the world, hoping it would force them to address the issue.

“Pressurize your government through public protest,” he said. “Protests have erupted in Bangladesh, in India and across Europe and America — people are rising. Don’t let this flame of resistance die. Be ready for the struggle.”

He maintained he would consult religious scholars and speak with other parties to unite for a powerful movement.

“We are already in communication with the Palestinian leadership. One day, we will call for a complete nationwide strike across Pakistan,” he said, appealing to traders and the general public to prepare for future mobilization and boycott of Israeli and Western products.

“We do not stand with the oppressors,” he continued. “The Palestinian resistance is legitimate under the UN Charter.”

Meanwhile, in Karachi, hundreds gathered outside the Bait-ul-Mukarram Mosque in the Gulshan-e-Iqbal neighborhood, where the city’s JI chief, Munem Zafar, addressed the protesters.

“The massacre in Gaza continues unabated. Zionist forces are committing genocide. Over 60,000 people have been martyred in the last 18 months,” he said, adding that 90 percent of Gaza’s infrastructure had been destroyed by Israeli airstrikes.

Zafar announced a “Solidarity with Gaza March” to be held in Karachi on April 13 along Sharah-e-Faisal, to be led by Rehman, the party’s central chief.

“We want to awaken the conscience of the Muslim rulers,” he said. “We urge families — children, elders, women — to join in large numbers.”

The party also called for a boycott of goods produced by companies supporting Israel.

Hundreds of protests were also held outside various mosques after the Friday prayer congregations in Karachi and other Pakistani cities on JI’s call.


Pakistan, China agree to boost air force ties with joint drills, tactical training

Updated 11 April 2025
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Pakistan, China agree to boost air force ties with joint drills, tactical training

  • The two countries reaffirm commitment to revitalizing military ties during Pakistan air chief’s Beijing visit
  • The air chief invites Chinese firms to collaborate on drones, electronic warfare and space programs

ISLAMABAD: Pakistan and China have agreed to enhance cooperation between their air forces, focusing on joint exercises and advanced tactical training, during a visit by the Pakistani air chief to Beijing, according to an official statement released on Friday.
The two countries maintain close defense, diplomatic and economic relations. Their strategic partnership is exemplified by their collaboration on the JF-17 Thunder fighter jets, co-developed by Pakistan Aeronautical Complex and China’s Chengdu Aircraft Corporation. The aircraft has been inducted into Pakistan’s fleet and exported to countries including Myanmar, Nigeria, and Azerbaijan.
The Pakistan military’s media wing, Inter-Services Public Relations (ISPR), said in a statement that Air Chief Marshal Zaheer Ahmed Baber Sidhu held a meeting with China’s Defense Minister Admiral Dong Jun wherein both officials reaffirmed the joint commitment of the two countries to revitalize the existing bilateral military ties strategic cooperation.
“Both sides agreed on enhancing Air Force-to-Air Force cooperation, particularly through complex and aggressive tactical-level scenarios during aerial exercises,” the ISPR said. “The cooperation is aimed at addressing challenges in multiple domains during joint exercises, equipping air and ground crew of both Air Forces with the skills necessary to counter modern Air and Space Warfare challenges effectively.”
During his visit, the Pakistani air chief also met with China’s Air Force Commander General Chang Dingqiu and Major General Cao Xiaojian, Director General of the Bureau of Military Equipment and Technical Cooperation.
Sidhu’s conversation with the Chinese officials focused on technology transfer and collaborative development of advanced military hardware.
He also invited Chinese defense companies to participate in its National Aerospace Science & Technology Park, offering incentives for developing projects in unmanned aerial systems, electronic warfare and space programs.
The air chief’s visit underscored the strategic partnership between Pakistan and China, which extends beyond defense to include economic initiatives like the China-Pakistan Economic Corridor.


Etihad Airways announces new Peshawar route, expanding Pakistan network

Updated 11 April 2025
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Etihad Airways announces new Peshawar route, expanding Pakistan network

  • Five weekly flights to Peshawar will launch in September, increasing to daily service from November
  • Peshawar will become Etihad’s fourth gateway to Pakistan and its sixteenth new destination in 2025

ISLAMABAD: Etihad Airways said this week it would launch a new route to Pakistan’s northwestern Peshawar city in September as part of a broader expansion of its global network.
The route will link Abu Dhabi’s Zayed International Airport with Bacha Khan International Airport in Peshawar starting September 29.
Etihad, the national carrier of the United Arab Emirates, already operates flights to Karachi, Lahore and Islamabad, making Peshawar its fourth nonstop destination in Pakistan.
“We are thrilled to further expand our presence in Pakistan with the launch of our daily service between Abu Dhabi and Peshawar,” Antonoaldo Neves, the airline’s chief executive officer, said.
“This new route reflects our commitment to providing vital connectivity for travelers between Pakistan and the Gulf, Africa, Europe and North America,” he added.
Etihad will initially operate the route five times a week using Airbus A320 family aircraft, with daily service beginning November 22. The aircraft will feature eight Business Class and 150 Economy Class seats.
The announcement comes amid a busy year for the airline, which has added 16 new destinations in 2025, including Prague, Warsaw, Algiers, Tunis, Atlanta and Addis Ababa.
Etihad is also boosting frequency to Karachi to 17 flights a week starting October 1 and expanding service to major European cities such as Paris, Milan and Frankfurt.
Passengers traveling through Abu Dhabi will also have access to the airline’s Stopover program, offering up to two complimentary nights at premium hotels in the UAE capital.


Pakistan eyes fan exports to Gulf, Africa in push to boost economy

Updated 11 April 2025
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Pakistan eyes fan exports to Gulf, Africa in push to boost economy

  • Muhammad Aurangzeb calls for enhanced productivity to compete in global markets
  • Pakistan’s exports rose 8 percent to $24.7 billion in the current fiscal year through March

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Friday hinted at the export of locally produced electric fans with new and improved technology to Gulf and African countries, saying it could potentially boost the country’s export economy.
Pakistan’s fan industry is primarily concentrated in the Punjab cities of Gujranwala and Gujrat, both of which play a key role in domestic production through numerous small and medium enterprises. The country’s leading brands in the sector are all based in these two urban centers, supplying products nationwide.
The finance minister’s statement comes as Pakistan looks to diversify its export base and reduce reliance on traditional sectors like textiles. With energy-efficient appliances such as fans in growing demand globally, particularly in warmer regions like the Gulf and Africa, the government is exploring ways to modernize local manufacturing and align with international standards to reinvigorate industrial output and foreign exchange earnings.
“We are looking forward for these products to not only be used in Pakistan but also have a very good market share in the exports market going forward,” Aurangzeb said while speaking on the sidelines of the “Made in Gujranwala Exhibition” at a local hotel in Islamabad.
“Our efforts now should be to take it to the exports level if we have this much productivity and it is internationally competitiveness as well,” he continued, adding it was important to figure out “how we have to take this initiative ahead to move old fans and the new technology forward.”
According to the Pakistan Bureau of Statistics, Pakistan’s exports rose by 11 percent to $30.7 billion in the last fiscal year ending June 2024. As of March this year, the country has exported $24.7 billion worth of goods, marking an eight percent increase compared to the same period a year earlier.
Aurangzeb said African and Gulf markets were ideal for the export of Pakistani products.
“We have to move toward an export-led growth,” he noted, assuring businesses of the full support of the finance ministry. “Every single sector in this country has to export.”
The government is working to revive Pakistan’s economy with the help of the International Monetary Fund (IMF). The IMF’s executive board is expected to approve a $1 billion tranche for Pakistan under its new loan program in the coming weeks.


Pakistan, Belarus sign MoUs for cooperation in defense, commerce, environment sectors

Updated 11 April 2025
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Pakistan, Belarus sign MoUs for cooperation in defense, commerce, environment sectors

  • PM Sharif is on official visit to Republic of Belarus, holds talks with President Aleksandr Lukashenko
  • Corresponding with Sharif’s arrival, second Pakistan-Belarus Business Forum held on Thursday in Minsk

ISLAMABAD: Pakistan and Belarus on Friday signed a series of agreements and memorandums of understanding (MoUs) aimed at enhancing cooperation across sectors such as defense, commerce and environmental protection, state-run APP news agency said.
Pakistani Prime Minister Shehbaz Sharif is on an official visit to the Republic of Belarus during which he held talks with President Aleksandr Lukashenko on Friday to review progress on bilateral cooperation. Delegation-level talks were also held between the two sides encompassing discussions on bilateral cooperation as well as regional and international issues. 
Over the past six months, a series of high-level bilateral engagements, including the 8th Session of the Joint Ministerial Commission (JMC) in February 2025 and a subsequent visit by a high-powered mixed ministerial delegation to Belarus in April 2025, have laid the groundwork for Sharif’s visit. 
“The governments of Pakistan and Belarus signed a Readmission Agreement as well as an Agreement on Cooperation between the interior ministries of two countries,” APP said, saying another agreement was signed on cooperation between the defense ministries of the two countries.
“The two sides signed a Program (Roadmap) of the Military-Technical Cooperation between the State Authority for Military Industry of the Republic of Belarus and the Ministry of Defense Production for 2025-2027,” APP added. 
“Bilateral accords were also signed for cooperation on environmental protection, postal services, business support, trade development and cooperation between trade bodies.”
Pakistan has moved in recent months to increase trade and economic cooperation with landlocked Central Asian republics and other states, hoping to leverage its strategic position as a key trade and transit hub to connect these nations to the global market, while earning much-needed foreign exchange.
Speaking at a ceremony during his visit, Sharif said Belarus was very strong in manufacturing of equipment used in mining, emphasising a closer collaboration between the two countries.
“I think there is no reason why we shouldn’t benefit from your experience because Pakistan, by the grace of God, has mineral deposits to the tune of trillions of dollars,” he said.
The prime minister maintained an air link between the two state could prove pivotal in further strengthening their partnership. He also thanked President Aleksandr Lukashenko for allowing nearly 150,000 young, highly skilled Pakistan laborers to contribute in nation building efforts in Belarus.
Sharif also spoke of strengthening Pakistan’s agriculture sector with mutual cooperation, saying 65 percent of the country’s population lived in rural areas.
“We need your expertise,” he said. “We need to have joint ventures between Belarus and Pakistani companies to manufacture agricultural equipment in Pakistan so we can offer to the farmers at very economical rates, both companies from Belarus and Pakistan, they will have win-win situation.”

Pakistan-Belarus Business Forum

Corresponding with Sharif’s arrival, the second Pakistan-Belarus Business Forum was held on Thursday in Minsk, marking a “significant step toward strengthening bilateral trade and economic cooperation between the two countries,” state-owned Pakistan Television reported. 
Senior government officials, business leaders and other key stakeholders from both nations attended. 
In recent years, the volume of trade between Belarus and Pakistan has ranged between $50 to 65 million annually, according to foreign office data. 
“Our presence here is part of a journey that reflects the evolving and deepening partnership between our two countries,” Pakistani Commerce Minister Jam Kamal Khan said as he addressed the forum. 
He said the eighth session of the Pakistan-Belarus Joint Ministerial Commission (JMC), held earlier this year in Minsk, had opened “new avenues of cooperation” in sectors such as trade, agriculture, education, technology, and pharmaceuticals, emphasizing that both governments were committed to removing trade barriers and promoting involvement of the private sector.
Discussing potential trade opportunities, Khan identified key areas for joint ventures including textile machinery, agro-processing, pharmaceuticals, renewable energy, information technology, and e-commerce.
He also announced recent cooperation agreement between the Trade Development Authority of Pakistan (TDAP) and the Belarusian Chamber of Commerce and Industry (BelCCI), describing it as an active platform for trade promotion and partnership development.
Khan invited Belarusian investors to explore opportunities in Pakistan’s Special Economic Zones, saying they offered attractive incentives and access to markets of over three billion people. He also noted the recent reduction in Pakistan’s energy tariffs as an additional facilitative measure for investment.
“Today’s forum is not just a ceremonial gathering but a practical advancement. We are witnessing the signing of a cooperation agreement between TDAP and BelCCI that will provide an institutional foundation. This includes participation in trade exhibitions, B2B events, exchange of market intelligence, and facilitation of sector-specific delegations,” Chief Executive of the Trade Development Authority, Faiz Ahmed, said in his address at the business forum. 
“This formal collaboration will ensure that the momentum created today translates into tangible outcomes in the coming months.”