Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge’ exports

Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge’ exports
A man walks out of the Federal Board of Revenue (FBR) office in Islamabad on July 4, 2024. (AFP/File)
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Updated 19 July 2025
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Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge’ exports

Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge’ exports
  • Pakistan recorded monthly IT exports of $338 million in June, up by 14% year on year and by 3% month on month
  • Tech firms say they aren’t seeking subsidies, but predictability, digitalization and administrative simplification

KARACHI: Pakistan can unlock billions in tech investment if it gives investors predictable taxes, friction-free remittances and a single digital compliance experience, the Pakistan Software Houses Association (P@SHA) said on Friday.

P@SHA said it presented a “Continuity & Consistency reform package” to the Ministry of Finance earlier this year, laying out a small number of high-impact changes that would slash compliance costs, bring tens of thousands of remote digital workers into the formal tax net, and catalyze both domestic and foreign investment into Pakistani tech firms.

The requested changes are not subsidies; they are predictability, digitalization, and administrative simplification. Most steps can be budget-neutral or revenue-positive once increased documentation, broadened compliance, and higher recorded export flows are taken into account.

“Every serious investor, local or international, asks the same two questions: What will my tax exposure be, and will the rules change after I invest?” P@SHA Chairman Sajjad Syed said.

“Right now, innovators spend too much time navigating overlapping regimes and too little time building export-earning products. If we hard-code continuity and make compliance near effortless, capital will move to Pakistan.”

Pakistan tech firms have been demonstrating their growing potential in the IT sector by showcasing their products and services at global forums, including the LEAP tech conference in Riyadh and GITEX global exhibition in Dubai.

Pakistan recorded monthly IT exports of $338 million in June, up by 14% year on year and by 3% month on month, according to Karachi-based Toplines Securities brokerage and market research firm. This took Pakistan’s annual IT exports to $3.8 billion, up by 18% YoY, in the outgoing fiscal year that ended in June.

In its statement, P@SHA urged continuation of the 10-Year Final Tax Regime (FTR) on information technology/IT-enabled services (IT/ITeS) export income, removal of discrepancies in tax rates where Pakistani IT companies get penalized for running payrolls from Pakistan, exemption of the Capital Gains Tax to secure investor’s confidence among other measures.

The association proposed joint working sessions with the Federal Board of Revenue, Ministry of IT & Telecom, State Bank of Pakistan, National Tax Council, and provincial revenue authorities to translate its proposed reforms package into draft language, digital filing flows, and phased rollout milestones, recommending immediate start of technical work.

“Pakistan stands at an inflection point: with its young talent base, global client footprint, and expanding startup ecosystem, the country can compete for high-value digital work, if investors trust the rules,” it said. “P@SHA urges policymakers to seize this moment to send that signal.”


Pakistan vows to intensify Gaza ceasefire call at upcoming UNGA session

Pakistan vows to intensify Gaza ceasefire call at upcoming UNGA session
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Pakistan vows to intensify Gaza ceasefire call at upcoming UNGA session

Pakistan vows to intensify Gaza ceasefire call at upcoming UNGA session
  • The 80th session of the UN General Assembly will be held in September in New York
  • Shehbaz Sharif says Pakistan will send two aid consignments to Gaza via Egypt, Jordan

ISLAMABAD: Prime Minister Shehbaz Sharif said on Wednesday that Pakistan would join other countries in calling for an immediate ceasefire in Gaza at the upcoming United Nations General Assembly (UNGA) session, criticizing Israel for its military operations in the Middle East.

The 80th session of the UNGA will open on Tuesday, September 9, while the first day of the high-level General Debate will begin on Tuesday, September 23.

All eyes will be on the upcoming UNGA as French President Emmanuel Macron announced last week he would formally recognize Palestinian statehood during the summit, provoking strong opposition from Israel and the United States.

“And at the upcoming [United Nations General Assembly] session in September, we will strongly present Pakistan’s position and join voices with all those countries calling for an immediate ceasefire in Gaza, and subsequently, for securing the rights of the Palestinian state,” Sharif said in an address to members of the federal cabinet.

Pakistan Prime Minister Shehbaz Sharif chairs federal cabinet meeting in Islamabad on July 30, 2025. (Handout/PMO)

“Pakistan’s voice will not only be aligned with those countries, but it will also be an energetic one.”

His statement comes amid renewed calls for a ceasefire in Gaza, as Israel has killed over 57,000 Palestinians in the territory since October 7, 2023.

Several countries, including international rights organizations and charity institutes, have raised alarm at the outbreak of diseases and starvation in Gaza amid the worsening conditions there.

The Pakistani premier criticized Israel’s military operations in Gaza, saying that such barbarity has “never been witnessed before.”

Sharif said he had issued directives to the chairman of Pakistan’s National Disaster Management Authority (NDMA) to immediately dispatch two consignments of relief items for Gaza.

He said the relief items will be sent via Egypt and Jordan.

“God willing, preparations will be completed soon and these food aid consignments will take off at the earliest possible time,” he added.

Pakistan’s Deputy Prime Minister Ishaq Dar took part this week at a high-level UN summit co-chaired by France and Saudi Arabia on the two-state solution in the Middle East.

Dar pushed for an immediate ceasefire in Gaza and called on other countries to recognize Palestine as an independent nation at the conference. He also demanded Palestine be recognized as a member of the UN.


German biathlete Dahlmeier dies after mountaineering accident

German biathlete Dahlmeier dies after mountaineering accident
Updated 30 July 2025
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German biathlete Dahlmeier dies after mountaineering accident

German biathlete Dahlmeier dies after mountaineering accident
  • Accident occurred around Monday afternoon at an altitude of 5,700 meters in Hushe Valley in Gilgit-Baltistan
  • A recovery operation to ewaxuw Dahlmeier was launched but ultimately called off on the evening of July 29

PESHAWAR: German double Olympic biathlon champion Laura Dahlmeier has died after a mountaineering accident in Pakistan, her management and local authorities confirmed on Wednesday.

The accident occurred around noon on Monday, at an altitude of approximately 5,700 meters at Laila Peak, the Alpine Club of Pakistan said on Tuesday.

Dahlmeier was climbing with her mountaineering partner when she was struck by a sudden rockfall in the Hushe Valley, part of the northern Gilgit-Baltistan region. Poor weather conditions prevented a rescue helicopter from reaching the site.

Two teams of expert climbers from Germany and the United States deployed to search her confirmed that she had died, regional government spokesperson Faizullah Faraq said.

“Laura Dahlmeier died on 28 July in a mountain accident on Laila Peak (6,069 meters) in Pakistan’s Karakoram range,” her management said in a statement.

“A recovery operation was launched but ultimately called off on the evening of 29 July.”

Her representatives added that Dahlmeier most likely died instantly, while her mountaineering partner was unharmed.

“It was Laura Dahlmeier’s express and written will that in a case like this, no one should risk their life to recover her,” they said.

“It was her wish to leave her body behind on the mountain in this case. This is also in line with the wishes of her relatives.”

Faraq said the regional authorities would respect any decision by her family.

The provincial government spokesperson also identified the climbing partner as Marina Eva Krauss.

Krauss successfully descended to base camp and is reported to be in good health, he added.

The 31-year-old Dahlmeier retired from biathlon in 2019, aged 25, a year after becoming the first female biathlete to achieve a sprint and pursuit double at the same Olympics.

OLYMPIC TRIBUTE

“Laura made history at the PyeongChang 2018 Winter Olympics as the first female biathlete to win sprint and pursuit gold at the same Games edition. She will be remembered forever,” the President of the International Olympic Committee Kirsty Coventry said.

The German Olympic Sports Confederation expressed deep sorrow at the news.

“She was more than an Olympic champion — she was someone with heart, attitude and vision,” it said in a statement on X.

Dahlmeier, who was born in the Bavarian ski town of Garmisch-Partenkirchen, was also honored by the premier of her home state, Markus Soeder, who said “she was ambitious and successful, yet always remained humble and close to her homeland.”

The International Biathlon Union also expressed its condolences.

“Laura’s energy and passion for life touched so many around the world. Her legacy, both within biathlon and beyond, will never be forgotten and will continue to inspire countless athletes and adventurers for generations to come,” it said.


Divorced daughters entitled to father’s pension, rules Pakistan’s top court

Divorced daughters entitled to father’s pension, rules Pakistan’s top court
Updated 30 July 2025
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Divorced daughters entitled to father’s pension, rules Pakistan’s top court

Divorced daughters entitled to father’s pension, rules Pakistan’s top court
  • Supreme Court says daughters deserve pension irrespective of whether their divorce occurred before or after father’s demise
  • Rights activists welcome the ruling, say will ensure women are not left destitute if widowed or divorced after father’s death

ISLAMABAD: Pakistan’s top court on Wednesday ruled that divorced daughters are entitled to their father’s pension irrespective of whether their divorce occurred before or after his death, calling for a review of pension regulations that it said were built on patriarchal assumptions and negative stereotypes about women.

The 10-page verdict was authored by Justice Ayesha Malik, who upheld a Sindh High Court ruling in favor of a woman named Sorath Fatima, the daughter of a deceased employee of Sindh’s Road and Transport Department. After Fatima’s father passed away in 2002, her mother received his pension until she also died in 2012.

As an unmarried daughter, Fatima initially received the pension, which was ceased by the provincial government after she got married. However, following her divorce in August 2022, Fatima requested the resumption of the pension, which was rejected by the Sindh government. It issued a circular that stated that a daughter who got divorced after her father’s demise is not entitled to his pension. Fatima challenged the decision at the Larkana bench of the Sindh High Court, which ruled in her favor.

The Sindh government challenged the high court’s decision at the Supreme Court, which dismissed the appeal and said that a divorced daughter’s right to pension is not dependent on the timing of her divorce.

“We find that the [Sindh government’s] circular, which imposes restrictions unsupported by the Act or the Rules, is void ab initio, unconstitutional, and of no legal effect,” the judgment read.

It added that the timing of the pensioner’s death cannot lawfully be used to extinguish a surviving daughter’s right to claim the pension.

“Accordingly, this civil petition, having no force, is dismissed and leave refused,” the verdict read.

The judgment said it is deeply concerning, in the context of family pension, that the admissibility of pension to a surviving daughter continues to depend entirely on her marital status.

The judgment added that this dependency model revealed that there was a systematic bias that treats a daughter as a dependent, with her financial dependency shifting from parent to spouse.

“This assumption not only perpetuates the stereotypical mindset about women being dependent members within the family structure but also fails to recognize women as individuals or autonomous individuals who may have the capacity to be financially independent,” the judgment read.

The verdict added that women have independent rights and are autonomous and should be entitled to family pension where financial needs are established.

The court said as a party to the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), Pakistan is required to abolish discriminatory laws and practices that impair women’s enjoyment of rights on an equal footing with men.

The Supreme Court noted that it was important to revisit the law surrounding pensions in Pakistan.

“The Rules should be reconsidered to remove marital status as a condition for entitlement,” it said. “What we require is a need-based and dignity-affirming framework,” the judgment added.

‘COMMENDABLE JUDGMENT’

Women’s rights activists welcomed the ruling as a progressive step toward dismantling patriarchal norms, saying it reinforces divorced women’s right to financial security and reflects a growing judicial sensitivity to gender equality.

“I appreciate the Supreme Court’s decision, as granting a divorced woman entitlement to her father’s pension can help her lead a dignified life and achieve financial stability,” Farzana Bari, a prominent rights activist and academic, told Arab News.

Another rights activist, Samar Minallah, said the ruling would make a significant difference in advancing the rights of women in Pakistan.

She added that the ruling reinforces the idea that a daughter remains an integral part of her family, similar to a son.

“The ruling recognizes the financial rights of women, ensuring they are not left destitute, once widowed or divorced after the father’s death,” Minallah noted.


Pakistan says India’s statement on alleged Kashmir attackers ‘replete with fabrications’

Pakistan says India’s statement on alleged Kashmir attackers ‘replete with fabrications’
Updated 30 July 2025
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Pakistan says India’s statement on alleged Kashmir attackers ‘replete with fabrications’

Pakistan says India’s statement on alleged Kashmir attackers ‘replete with fabrications’
  • Indian Home Minister Amit Shah this week said Delhi has killed three militants, allegedly Pakistanis, involved in Pahalgam attack
  • Pakistan’s foreign office says Islamabad remains a responsible state committed to peace, regional stability via “meaningful dialogue”

ISLAMABAD: Pakistan’s foreign office on Wednesday rejected Indian Home Minister Amit Shah’s statement claiming New Delhi had killed all three militants involved in the Pahalgam attack, whom he said were allegedly Pakistani nationals, as ” replete with fabrications.”

Shah told parliamentarians during a debate on Tuesday that three militants involved in the April 22 attack in Indian-administered Kashmir’s Pahalgam town had been killed in a joint operation by the military, paramilitary and police on the outskirts of Srinagar. Shah had also said that all three alleged attackers were Pakistani nationals.

Gunmen opened fire on tourists in Pahalgam on April 22, killing 26 in total. India blamed Islamabad for supporting the attack, which Pakistan denied. The attack started a four-day conflict between India and Pakistan in which over 70 people were killed on both sides of the border.

“The account given by the Indian Home Minister is replete with fabrications, leading to serious questions about its credibility,” the Pakistani foreign office said.

“Is it a mere coincidence that the alleged perpetrators of the Pahalgam Attack were killed at the start of the Lok Sabha debate?“

The foreign office said India did not avail Prime Minister Shehbaz Sharif’s offer of a transparent inquiry into the Pahalgam attack, saying that it instead chose “the path of belligerence and aggression.”

The foreign office also rejected Delhi’s assertion that it had established a “new normal” in bilateral relations with Pakistan by carrying out strikes against alleged “terrorist” camps in the country in May.

“As we have already shown through our resolute actions in May 2025, we shall forcefully counter any future aggression,” the statement said.

“For us, the only ‘normal’ in bilateral relations is respect for sovereignty and territorial integrity, and adherence to the principles and purposes of the UN Charter.”

The foreign office concluded by saying that Pakistan remains a responsible state committed to peace and regional stability.

He said Islamabad wanted to pursue a “meaningful dialogue” for the resolution of all outstanding issues between the two nations, including that of the disputed Kashmir territory.

India and Pakistan, both nuclear-armed neighbors, have gone to war thrice since 1947 after gaining independence from British colonial rule. Two out of these wars have been over the territory of Kashmir.

Both claim the territory in full but administer only parts of it. India accuses Pakistan of arming and funding Kashmir militants, which Islamabad denies and says New Delhi fuels militancy in Balochistan and Khyber Pakhtunkhwa (KP) provinces.


Punjab, Beijing review protection of Chinese nationals in eastern Pakistan

Punjab, Beijing review protection of Chinese nationals in eastern Pakistan
Updated 30 July 2025
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Punjab, Beijing review protection of Chinese nationals in eastern Pakistan

Punjab, Beijing review protection of Chinese nationals in eastern Pakistan
  • Chinese nationals have increasingly come under attack in Pakistan, mostly by separatist militants, in recent months
  • Frustrated by the attacks, Beijing has been pushing Islamabad to bolster security for Chinese nationals

ISLAMABAD: Dr. Ahmad Javed Qazi, the home secretary of Pakistan’s Punjab, met Chinese Consul General Zhao Shiren on Wednesday to discuss security arrangements for Chinese nationals in the eastern province, the home department said in a statement.

The move follows Pakistani Prime Minister Shehbaz Sharif’s announcement last week to enhance security measures for Chinese nationals across Pakistan, aiming to boost bilateral engagement under the second phase of the China-Pakistan Economic Corridor (CPEC).

Beijing has been frustrated by a string of attacks on Chinese nationals in Pakistan since last year. These attacks have mostly been carried out by separatist Baloch militant groups, who accuse Pakistan and China of depriving locals in Balochistan of a share in the province’s mineral resources. Beijing has invested in the province with a key port and has mining interests there as well. Both Islamabad and Pakistan deny the allegations.

“The meeting focused on the law and order situation in Punjab and the security arrangements for Chinese nationals,” the provincial home department said in a statement issued after the Shiren-Qazi meeting.

One of the attacks included a bombing at the Karachi airport last October that killed two Chinese engineers returning to work at a power plant. Beijing has called on Islamabad to bolster security for its nationals in Pakistan in recent months.

Qazi assured Shiren that ensuring the safety of Chinese tourists and officials working on CPEC projects was a top priority, the home department said.

“We are committed to the security and facilitation of all Chinese nationals residing in Punjab,” he added. “The capacity of the Special Protection Unit is being enhanced to further strengthen security for Chinese citizens.”

Pakistan announced forming the special police unit last year to protect foreigners, particularly Chinese nationals, living in the country amid increasing attacks on Chinese citizens.

Qazi highlighted that foolproof security arrangements were in place across all industrial zones across the province. He said the federal government’s guidelines regarding the movement of Chinese nationals should be followed strictly.

“Our offices are always open to Chinese citizens and government representatives,” Qazi said.

Beijing has been pressing Pakistan in recent months to allow Chinese security personnel to protect the thousands of its citizens working there amid frustration over the attacks.

Thousands of Chinese officials live and work in Pakistan, where Beijing has invested in the multi-billion-dollar CPEC project. The CPEC is a network of roads, railways, and energy projects designed to link China’s Xinjiang province with Pakistan’s Gwadar port on the Arabian Sea.