Category: 1. Pakistan

Published on: August 26, 2025 10:03 AM

The government has announced that accidental and low-quality used cars will not be allowed into Pakistan, while a hefty 40% tariff will be imposed on commercial imports of used vehicles starting next month, a move officials say is aimed at protecting the local auto industry.

The decision, however, means consumers will not see any immediate relief in car prices from the upcoming trade liberalisation, as local assemblers maintain that high government taxation, ranging from 30% to as much as 61% of the retail price, already keeps vehicles expensive in Pakistan.

The policy announcement was made on Monday during a joint meeting of the Senate Standing Committees on Finance and Industry. Joint Secretary for Trade Policy Mohammad Ashfaq told lawmakers that the government, under commitments made with the International Monetary Fund (IMF), will enforce additional tariff protection equivalent to 40% of the price of new cars.

Ashfaq said the government has yet to decide whether to continue with existing import schemes, such as transfer of residence, baggage, and gift, once commercial imports are formally allowed. At present, commercial imports are banned, and nearly one-fourth of market demand is met through vehicles brought in under these schemes, often mildly accidental but preferred by consumers over locally produced options.

As part of its $7 billion IMF bailout, Pakistan has agreed to gradually open the auto sector to imports. From September, commercial imports of used vehicles up to five years old will be permitted, with all age and quality restrictions slated to be lifted by July next year.

Over the next four years, the additional 40% tariff will be reduced to zero, paving the way for imports of six- to eight-year-old vehicles. Standards, however, will be introduced to minimise environmental risks, officials said.

Pakistan is also obligated under the IMF programme to slash its overall tariff regime from the current average of 20.2% to 9.7% within five years, a 52% reduction. In the first year (FY26), the average tariff will fall to 15.7%, a 22.3% cut in protection. This will be achieved by reducing customs duty to 11.2%, additional customs duty to 1.8%, and regulatory duty to 2.7%.

Additional customs duties are to be phased out in four years, regulatory duties in five, and exemptions eliminated within the same timeframe. The tariff structure will be simplified to just four slabs, with a maximum rate of 15%.

The Pakistan Automotive Manufacturers Association (PAMA) and the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) have launched a lobbying effort against the IMF-driven policy changes. Both groups have made representations to the Senate committee, warning that liberalization could undermine local industry.

Currently, auto sector products fall under the Auto Policy with customs duties as high as 35%. These protections will begin to phase out on July 1, 2026.

Analysts say the policy reflects Islamabad’s balancing act between IMF conditionalities and pressures from the local auto lobby, leaving consumers caught in the middle. For now, the import ban on accidental cars and the new 40% tariff mean vehicle prices are unlikely to come down anytime soon.

LAHORE: The interior ministry has decided to provide the Federal Constabulary (FC) force to the Pakistan Railways (PR) for the security of tracks and rolling stock, retrieving its precious commercial land from illegal occupants in major cities, and elimination of encroachments through joint operations.

Both interior and railways’ ministries also agreed to launch Diesel Multiple Units (DMUs) — a modern shuttle train — between Islamabad and Rawalpindi to provide better facilities to the passengers.

“We are ready to provide you our FC for launching joint operations to retrieve the precious commercial [railway] land from grabbers, in major cities,” Interior Minister Mohsin Naqvi told railways minister Hanif Abbasi during a meeting held here at the PR headquarters on Monday.

During the meeting, Mr Naqvi was briefed about the railway system, projects and revenue generation, etc by senior officers. He was also apprised of the challenges being faced by the department and strategies to overcome these problems.

The federal force will also be used to retrieve railway land from grabbers

Mr Abbasi, on the occasion, told the interior minister about the upgrade of various railway stations, including Lahore, Rawalpindi, Khanewal, Okara and Faisalabad.

While discussing the issue of absence of any shuttle train service between the twin cities (Rawalpindi and Islamabad Margala stations), Mr Naqvi assured Mr Abbasi that senior officials of the Capital Development Authority (CDA) would soon contact the railway’s officers concerned to discuss a plan in this regard.

In response, Mr Abbasi agreed to launch a DMU shuttle train between the twin cities.

According to a senior PR officer, DMU train consists of two specially designed small locomotives attached to a rake of 4-5 modern coaches on the front and rear ends, having a capacity to carry around 400 passengers.

During the meeting, the security measures for the PR assets were reviewed in detail. The interior minister was briefed on special measures taken for the security of railway lines and trains across the country, particularly in Balochistan.

“Every possible measure will be taken to ensure a foolproof security of railway tracks and trains, and full assistance will be provided to the Railway Police,” said Mr Naqvi, adding that the passengers’ safety was his top priority.

He also appreciated the measures taken by Mr Abbasi to improve the PR’s performance.

The PR Chief Executive Officer (CEO) Aamir Ali Baloch, Inspector General of Railway Police Rai Tahir and other senior officials also attended the meeting.

“The meeting remained very productive, as the interior minister has agreed to provide us FC troops for launching a coordinated operation to retrieve our precious commercial land and eliminate encroachments,” Mr Abbasi told Dawn after the meeting.

Meanwhile, Mr Abbasi reprimanded the PR’s mechanical department for slackness in resolving various issues. “The rolling stock is the lifeline of the railway, and all efforts to keep it running in good condition must be made,” he said while presiding over a meeting.

“Nothing should be pushed under the carpet, as everything must be crystal clear,” he said, adding that the officers concerned should avoid buying any parts for the trains without the third-party evaluation.

Published in Dawn, August 26th, 2025

LAHORE: The Punjab government and opposition Pakistan Tehreek-i-Insaf (PTI) have been wrangling over “exorbitant spendings, chartered jet and private persons in the delegation” of Chief Minister Maryam Nawaz’s Japan’s five-day tour.

Ms Nawaz concluded her Japan visit on Monday and reached Thailand. Questions are also being raised on social media regarding CM Maryam’s ‘official visit’ to Japan, in which ‘private individuals’, including her family members, as also a part.

It is being argued that even if such participants claim to bear their own expenses, the practice undermines the sanctity of official delegations and blurs the line between state affairs and personal interests.

Questions are also being raised on social media platforms over the inclusion of private persons as part of her visit, causing a huge sum of money to the exchequer.

Entourage comes under scrutiny; PTI’s Waqas claims bank borrowing spent on excursion; Azma says PTI will consume in its own frustration

Punjab Information Minister Azma Bokhari, who is also part of the CM delegation to Japan, rejected a list of the ‘participants’ of the CM’s visit circulating on social media, calling it “a pack of lies“.

She said Pakistan and Japan were entering a new era of diplomatic cooperation, but certain anti-national elements were trying to malign this relationship with disinformation and propaganda.

“For the first time, a woman CM made a ‘historic’ visit to Japan and the malicious campaign against this milestone is nothing short of a shameful act of hostility against the country’s progress. The individuals (the Sharif family members and its friends) mentioned in the

social media list were not part of the ‘official government delegation’. Only officially nominated delegates had their expenses covered by the government, while all others covered their own costs privately,” she said.

Ms Bokhari said those pained by Pakistan’s cooperation with Japan in urban development, technology, and youth skills enhancement must accept that the nation is moving forward. “The opposition PTI has nothing to offer except falsehood and propaganda. Just like in the past, it will continue to consume in its own frustration,” she added.

On the other hand, the PTI strongly criticised Maryam Nawaz for her foreign trip to Japan, demanding full disclosure of public funds ‘squandered’ on the tour.

“What did Punjab really gain from Maryam Nawaz’s Japan visit? Questions persist over public spending, use of a chartered jet, and the actual outcomes beyond photo optics and promises,” it asked.

PTI Information Secretary Sheikh Waqas Akram termed Maryam’s trip a “wasteful” excursion at the expense of the poor nation’s hard-earned money, undertaken when the country was navigating its ‘worst-ever’ economic crisis.

He pointed out that as per the State Bank of Pakistan (SBP), the Punjab government borrowed a staggering Rs405 billion in just first 38 days of the current fiscal year 2025-26 (July 1 to August 8), which were not utilised for any public welfare rather wasted on foreign trips, lavish advertisements, and political image-building.

“The people of Pakistan demand a full and transparent disclosure of how much has been spent on these useless advertisements and foreign excursions. The ‘fake’ CM Punjab must clarify whether her Japan trip, along with dozens of cronies, family members and sycophants, was paid from her personal pocket or from the funds of the Punjab and federal governments,” he said.

Analyst Imtiaz Gul said on X: “Massive advertisement campaign on @MaryamNSharif Japan visit: Isn’t it an affront to the poor of Punjab? Has she conquered Japan? Do donors ask about the rationale of the precious funds being spent on personal projection?”

Earlier, a local TV channel, citing official documents, had claimed that the Punjab government allocated Rs160 million for the CM ’s Japan trip which included expenses for luxury hotel stays in Japan and Bangkok, luxury cars for transport and diplomatic gifts.

Political observers are of the view that foreign visits by elected leaders should strictly focus on advancing provincial and national interests through professional representation, rather than projecting political families. They warn that such practices not only set a poor precedent but also raise concerns of nepotism, misuse of protocol, and dilution of credibility in the eyes of international counterparts.

(Ikram Junaidi and Mansoor Malik also contributed to this report)

Published in Dawn, August 26th, 2025

THE monsoons came earlier this year. But they were not unexpected.

The very people who had been warning us of a terrible summer with its punishing heat had also cautioned that the rains would come early and would come down hard. And yet, the country continued to be distracted by the usual business of politics.

It is no wonder then that the ferocity of the rains took most of us by surprise in the mountains, in the plains and in the cities — both those we claim are well run and those where the governance crisis is so severe that we discuss it ad infinitum.

Partisan views aside, there is little evidence anywhere of any of the governments — provincial or federal — being prepared to deal with the rage of climate change. In fact, in most places, when nature spins out of control, it is helped in its destruction by the mistakes of governance.

The mistakes have not been addressed even though it has been three years since the super floods of 2022. The havoc that the deluge caused should have convinced us to change our errant ways. But it seems that it has not.

The rains, their pattern, the rising temperatures, even the pollution in winters — how often has everyone been warning about them and about what some of these factors mean for our mountains and glaciers? But governments are said to have encouraged or turned a blind eye to those wielding the axe. According to those who keep an eye on the issue, the rate of deforestation has a direct link with the damage caused in the northern parts of the country.

The mistakes have not been addressed even three years after the super floods of 2022.

Even after the devastation, there is not much discussion of what needs to change. Judging from the actions of those in power to most of the reporting on the issue, there is little effort to understand what has happened. Had it not been for the footage on social media, I doubt most of us would even know about the level of destruction.

Indeed, our reporting and the ensuing discussion are about some missing technology — the early warning system — which got stuck in bureaucratic red tape. That is a story which appeals to us far more than the cutting down of trees in the north.

But I would be wrong to say that this is the only preferred topic. Encroachments are another favourite subject. The encroachments on riverbeds have been a recurring theme since the 2010 floods but neither the people, who have to pay to reconstruct the ‘encroachments’ again and again, or the government, which has to help the people pick up the pieces, makes any difference to the policies or administrations that allow this. Come the next floods, and the hotels by the river will still be there.

Sadly, despite this scenario, prime ministers and chief ministers will only talk about this. Shehbaz Sharif, who mentioned it during his trip to the affected areas up north recently, is no different.

If I make a guess, then encroachments and their removal tend to be a comfortable subject for most of our ruling elite, regardless of party or province. It is somehow linked with their idea of good governance — for instance, bigger, wider roads for cars or the space to build automobiles, as well as their discomfort perhaps with shabby buildings or carts owned by the poor. And because it is easy to implement their words in the case of poor segments, it’s a comforting promise to make.

The idea or notion of encroachments is complex and can also refer to the overreach of the rich, which is easily ignored. Rarely do we refer to the upmarket housing societies built on prime agricultural land as encroachments, or even to expensive homes whose construction involves covering water channels or altering the level of the riverbed.

Indeed, nearly every year, Islamabad is witness to chaos as rainwater makes its way through land where its path has been blocked or narrowed. And yet, the conversation about encroachments for us begins and ends with images of a shoddy hotel falling into a river in the north of the country. Or the cart of the poor person or the shantytowns where migrants live. But be it the environment or security, only some of these ‘encroachments’ are tackled.

All of this happens because none of us want to accept that a large part of this environmental disaster is caused by our development model — be it in the cities or the mountains.

A development model which thinks construction is progress — be it the hotels in the north or big interchanges, wide roads in the middle of cities or sprawling housing societies on their outskirts. Indeed, other than Karachi, no city in Pakistan is trying to encourage vertical growth; it’s far easier to allow property developers to cut down trees, take over agricultural land and build housing societies on it.

Of course, all of this is connected to Pakistan’s population explosion. And this is a topic that we just can’t be bothered to discuss — ever.

All of this ronadhona (and it is little else than lamenting) might sound familiar to regular readers (if there are any) of this space. But it is hard to avoid this as the environmental crisis grows with every passing season and every passing year. In the meantime, it appears hopeful that unlike three years ago, the entire focus of our ruling elite is not to speak of climate justice and ask the world for money to fix this.

Though only time will tell if this relative silence means they are ready to take some responsibility or not — responsibility which moves beyond announcing compensation and then providing it to some extent.

The writer is a journalist.

Published in Dawn, August 26th, 2025

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif launched 10 million digital wallets for beneficiaries of the Benazir Income Support Programme (BISP), terming it a historic milestone in Pakistan’s journey towards transparency, financial inclusion, and a cashless economy.

The prime minister symbolically inaugurated the system with a palm touch, in the presence of federal ministers, BISP leadership, and international development partners including GIZ. He congratulated BISP Chairperson Senator Rubina Khalid, the BISP team, and all partner institutions for this “landmark decision that will safeguard genuine recipients and protect them from undue difficulties.” “This digital wallet system is, in its true sense, blessed by the soul of Shaheed Mohtarma Benazir Bhutto, as it empowers BISP beneficiaries with safe, transparent, and direct access to financial assistance,” the PM stated.

He reaffirmed that BISP remains a significant initiative for poverty alleviation and employment generation, while urging continued efforts to expand its impact. Calling the launch “a great leap towards a cashless economy,” the prime minister recalled that during Ramazan, 78 percent of the relief package was successfully disbursed through digital channels—despite resistance from vested interests. “Cashless transactions are the pressing need of our times. They save time, reduce corruption, and increase efficiency, helping Pakistan progress rapidly,” he remarked.

He noted that he chaired multiple meetings on digitisation, despite early resistance and “indifferent attitudes” from some stakeholders, highlighting his commitment to shifting all government, business, and personal transactions to digital platforms. The prime minister also urged BISP leadership to integrate conditionalities into the programme, linking financial assistance to education and health. “If a family receives support, it should be conditional on all children attending school. Similarly, basic health compliance must be ensured. Only then will BISP become a true legacy benefiting millions,” he stressed. He called for shortening the current 8–10 month implementation cycle to just four months.

In conclusion, PM Shehbaz paid tribute to all stakeholders—including the State Bank of Pakistan, the Ministry of IT, Pakistani banks, and international development partners—for their contributions to this transformative initiative. “We are not just disbursing aid; we are raising an army of architects and workers to build the nation,” he said.

Earlier, BISP Federal Secretary Amir Ali Ahmed briefed the prime minister on the system’s rollout. He said ten million digital wallets will be created using beneficiaries’ CNICs, supported by biometric verification. He added that 10 million free SIM cards would also be distributed, with the first phase already underway in Hyderabad, Sukkur, and Rahim Yar Khan in partnership with Jazz/Mobilink.

BISP Chairperson Senator Rubina Khalid described the launch as an “important and historic milestone” in Pakistan’s social protection journey. “This programme is a pathway to social and economic empowerment,” she said. She noted that linking benefits to women’s CNICs has provided them with recognition and inclusion in the national database. The digital wallets, she added, will “open further opportunities” and be complemented by digital literacy programmes for women unfamiliar with technology.

Chairing a meeting on the National Industrial Policy, the PM said the government was working on a priority basis to enhance industrial production and find sustainable solutions to the challenges faced by industries.

The prime minister emphasised that industry played a central role in boosting national exports. “Our top priority is to develop an export-oriented economy through the growth of industries and by equipping domestic manufacturing units with world-class manpower and modern technology,” he stated. He directed the relevant officials to consult all stakeholders while formulating the National Industrial Policy. The meeting was briefed on proposals related to the upcoming industrial policy.

The meeting was attended by senior cabinet members, advisors, and representatives from the business community. Meanwhile, Prime Minister Shehbaz Sharif on Monday honoured three local heroes from Gilgit-Baltistan for their life-saving efforts during the recent floods in Ghizer district.

The three men — shepherds Sher Wali, Shakir Hussain, and Farmanullah — helped save around 300 lives by issuing timely warnings to villagers ahead of the disaster. In recognition of their bravery, the Prime Minister awarded each of them Rs2.5 million in cash.

The three men, who alerted villagers ahead of the devastating flood, met the Prime Minister in Islamabad along with PML-N Gilgit-Baltistan President and former chief minister Hafiz Hafeezur Rehman. “These shepherds did what no technology or government machinery could do at that critical moment — they saved lives by putting their own at risk,” Rehman told The News after the meeting. “Their example will always be remembered in Gilgit-Baltistan’s history.” The premier praised their bravery, describing their actions as “a model of selfless service.”

in a statement, Gilgit-Baltistan government spokesperson Faizullah Faraq, said the provincial government is grateful to the prime minister for acknowledging the shepherds’ sacrifice and timely action. “On behalf of the provincial government, we extend heartfelt gratitude to Prime Minister Shehbaz Sharif for recognising the heroic efforts of these brave men,” Faraq said. “Chief Minister Haji Gulbar Khan had already directed us to announce awards for the shepherds, and it is a matter of pride that their sacrifice has now been recognised at the national level.” The spokesperson further mentioned that Hunza’s Karimullah Baig and Nasir from Chitorkhand Dain also played a vital role in saving dozens of lives during the floods. He said the provincial government will host a special ceremony at the CM Secretariat to honour them as well.