Fitch upgrades Pakistan’s credit rating to ‘B-’ on improving deficits and reforms

ISLAMABAD: Pakistan’s national tax authority has withdrawn a levy on goods and services ordered online and supplied from abroad, a notification announced on Wednesday, rolling back a key provision giving relief to international retailers operating in the national cyberspace.

The government introduced new measures including the Digital Presence Proceeds Tax Act 2025 in the federal budget passed on June 26 to tax income earned by foreign vendors.

The measures included a five percent fixed income tax on digital retailers on goods delivered by foreign firms such as Temu, Shein and AliExpress, and a reduction in the duty-free threshold for imported parcels from Rs5,000 ($18) to Rs500 ($1.80).

“The federal government is pleased to direct that the Digital Presence Proceeds Tax shall not apply to digitally ordered goods and services supplied from outside Pakistan, by any person, which are chargeable to tax under the said Act,” the Federal Board of Revenue (FBR) said in the notification, adding the decision would “come into force on and from the 1st day of July, 2025,” highlighting its retrospective implementation.

The government plans to collect over Rs14 trillion ($49.3 billion) in taxes in the ongoing fiscal year to meet targets set under the $7 billion International Monetary Fund loan program.

The government’s decision to impose the digital presence tax was welcomed by local retailers, who said foreign firms had been operating without paying taxes, allowing them to undercut domestic businesses.

Until the implementation of the new budget, foreign e-commerce platforms had been selling to Pakistani consumers through social media without being subjected to local tax laws.

Local retailers already paying up to 25 percent in taxes say they have struggled to compete with tax-exempt imports offering cheaper prices.

ISLAMABAD: Pakistan on Thursday expressed deep sorrow over the death of German double Olympic biathlon champion Laura Dahlmeier, who died earlier this week in a mountaineering accident on Laila Peak in the country’s Gilgit-Baltistan region.

The 31-year-old athlete was struck by falling rocks while climbing with a partner at around 5,700 meters in the Hushe Valley on July 28.

“Laura was an inspiration for athletes and dreamers across the globe,” Pakistan’s foreign office said in a statement.

“Her indomitable spirit and legacy as a true role model will shine on forever,” it added. “We extend our deepest condolences to her family, loved ones and the German people.”

The Alpine Club of Pakistan said poor weather conditions had prevented a helicopter rescue mission. Two international teams later confirmed her death on the mountain, which stands at 6,069 meters in the Karakoram range.

Dahlmeier’s body was not recovered in line with her previously expressed wishes, her management said. Her climbing partner, Marina Eva Krauss, was unharmed and has since returned to base camp in good health, according to the local authorities.

A winner of two gold medals at the 2018 PyeongChang Winter Olympics, Dahlmeier retired from professional biathlon in 2019 at the age of 25.

Tributes have poured in from sporting bodies across the world, including the International Olympic Committee and the International Biathlon Union.

Germany’s Olympic Sports Confederation described Dahlmeier as “more than an Olympic champion,” calling her someone “with heart, attitude and vision.”