ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to intensify enforcement efforts to boost revenue collection during the current fiscal year and ensure the achievement of the annual target.
The directive was issued during a meeting chaired by the premier to review progress on FBR reforms. He received a detailed briefing on the status of key tax reform initiatives and their implementation timelines.
According to an official statement from the Prime Minister’s Secretariat, the meeting was informed that FBR’s enforcement measures and reform initiatives have resulted in a historic 1.5pc increase in the tax-to-GDP ratio.
The number of tax return filers has surged from 4.5 million to 7.2m. In the retail sector, income tax collection grew by Rs455 billion as of June 30 compared to the preceding year, the meeting was told.
Reforms lift tax-to-GDP ratio by 1.5pc, returns filing to 7.2m
The FBR’s Faceless Customs Clearance System was also highlighted as a major reform, significantly contributing to revenue growth. The system is expected to reduce average clearance time from 52 hours to just 12 hours within the next three months.
The prime minister said enhancing the tax system to boost national revenue while reducing the burden on the common citizen remains one of the government’s top priorities. He welcomed the progress made through recent FBR reforms but stressed the need for timely action to develop a tax framework aligned with modern needs.
He also called for the formulation of a comprehensive plan to restructure the FBR’s digital wing, with clearly defined goals and deadlines.
The premier underscored the importance of stakeholder engagement in the reform process, urging that the concerns of the business community, traders, and taxpayers be addressed proactively.He further instructed that additional enforcement measures be adopted to curb the informal economy, the statement added.
CONSIDER two things carefully. First, the burden on compliant taxpayers is spiralling higher and higher every year, with a marked acceleration in the preceding three years. Second, dollar-buying by the State Bank is continuing with unchecked ferocity, leaving behind little for the rest and starving private markets.
Both these phenomena are symptoms of a single problem: a state apparatus that can no longer generate the resources required for its own upkeep. In short, this relentless tightening of conditions in the economy, despite the much-vaunted stabilisation that has taken place, reflects the erosion of the underlying financial and economic viability of the state, and by extension, of Pakistan’s economy. As presently constituted.
These last three words are key, because it is equally important to remind ourselves that it does not have to be like this. But for the time being it is. And the problem is going to aggravate with time.
Just consider two stories from the week thus far. On Tuesday, a well-connected group of business leaders from Lahore and Karachi met with the army chief, Field Marshal Asim Munir, to convey their concerns about the ramped-up powers being given to the FBR, particular the powers of arrest.
“The delegation presented a comprehensive overview of the challenges faced by the industrial sector” their press release said following the meeting, “with particular emphasis on the recently enacted expansions of the Federal Board of Revenue’s powers”.
The expansion in powers refers to the powers of arrest that the FBR enjoys, which have been strengthened in the latest budget. Other things came under discussion too, but the press release suggests this was the primary reason for the visit, while the opportunity was used to also convey other concerns regarding interest rates and power tariffs.
The relentless tightening of conditions in the economy reflects the erosion of the underlying financial and economic viability of the state.
The second story, published in this paper, points to an enduring dollar shortage that has gripped financial markets in Pakistan for a number of months now and refuses to go away. And on Wednesday, a statement was released by Malik Bostan, the head of the Exchange Companies Association of Pakistan, announcing that on Tuesday he met with the ISI in which they were asked to explain why the rate of the dollar has been rising in the open market in recent days.
In his response, Bostan blamed the black market operators, saying their hand is strengthened the more the state clamps down on exchange company operations in the formal sector. Meanwhile, the shortages in the banking system persist despite rising inflows into the country in the last fiscal year.
Initially, a few months ago, we were told this shortage exists because of delays in the rollover of some Chinese debt obligation. But those rollovers were secured by the end of June, and another $1.5 billion secured through loans from two Middle Eastern commercial banks, and government sources confirmed to news reporters that their IMF-mandated target for foreign exchange reserves by end June 2025 had been met.
Then came news that remittances posted a record high (they post a record high almost every year so not a big deal really), but more importantly, the current account posted a surplus of $2.1bn whereas the IMF programme had projected a deficit of $200 million. Foreign exchange reserves held by the State Bank were projected by the Fund to be around $13.9bn by end FY25. They came in at $14.5bn instead, higher by $600m.
So, if the external sector of the economy has performed better than expected, and foreign currency reserves are even higher than what they were projected to be, why is there still a shortage of dollars in the financial markets? Why are black markets springing up, and pressures mounting in the open market to the point? One answer is that all the dollars flowing into the country from high remittances and ‘resilient exports’ are being bought up by the State Bank, leaving behind little for private players. And the open market, which is also fed by remittances and foreign currency brought in by travellers from abroad (as per their own telling anyway), is finding black market customers for foreign currency at higher price points and therefore preferring to keep a growing share of their transactions there as opposed to the regulated market, where they are compelled to sell dollars at a rate agreeable to their friends in Pindi. As a result, reserves are outperforming their projections while private market players wonder aloud where all the dollars are going. “I am surprised why the State Bank has tightened the market so severely when it has already met the IMF target,” a story published in this paper quotes a market analyst as saying.
Why indeed? The government over-performed on fiscal and external sector metrics in FY25, and they waste no opportunity to remind the rest of us of what a great achievement this is, to have stabilised the economy following the epic upheavals that wracked it post-2021. But yet here we are. The hunger for dollars continues, the hunger for revenues leaves the state famished despite having not just met but blown past some key targets in the Fund programme, and this hunger drives them to press harder and harder on financial markets and compliant taxpayers to extract more and more from them.
This is not going to end by itself. It will continue like this because the pressure for resources — fiscal and FX in this case — is not coming only from the need to meet IMF programme targets. It is in significant measure also coming from the need to rearm following the recent war with India. But in very large measure, the pressure is mounting because the failure to reform the system over the preceding years has yielded a rigid economy that cannot meet the emerging requirements of a growing economy. Until those reforms or an external bailout come, these pressures will only keep mounting.
“Youth is easily deceived because it is quick to hope.” — Aristotle.
DUE to the increased influence of social media, talking about ‘the youth’ has become a trend. From political parties to militant organisations, everyone wants to lure them. However, neither civil society nor the media seems to give priority to the role of youth in peacebuilding.
The youth must be our central focus. Investing in them is investing in the future, as the youth have the energy to pursue ideals and the passion to learn, excel and bring change. The challenge lies in saving them from crime, extremism, terrorism, drug addiction and social disorder.
Given the spread of virulent extremism, it is essential to focus on educational institutions and motivate them to enhance preventive measures. Out-of-school children and drop-out students need special attention from the community and government. Disillusioned youth are easily targeted by militant groups, who present themselves as alternative sources of purpose and identity. The majority of suicide bombers, target killers, and street criminals have been youth. A significant challenge for states is thus to protect future generations from extremism and effectively counter such narratives.
The youth have a crucial role in preventing conflict.
In Pakistan, 125 million people (60 per cent of the population) are under the age of 30, making this the largest young generation in Pakistan’s history. They have a crucial role in preventing conflict, promoting social cohesion, and building sustainable peace. When engaged constructively, they can become mediators, educators, digital peacebuilders and community leaders. Dialogue and mediation are the best ways to engage them. Youth-led forums can promote interfaith, interethnic and interprovincial dialogue. To counter hate speech and misinformation, the youth can be effective in leading social media campaigns and promoting tolerance. Through community engagement, the youth can act as ambassadors in their neighbourhoods to resolve disputes, prevent violence and promote inclusion.
In 2023, some 196m mobile phone connections were in use in Pakistan. By early 2025, the country had 116m internet users, representing 45.7pc of the total population. Social media allows militants to attract uneducated social media addicts. Digital misinformation and hate speech spread faster than the truth. Lack of digital literacy and weak regulation exacerbate the issue, often resulting in mob violence. Digital peacebuilding through social media campaigns can challenge hate speech, religious bigotry and fake news. Digital storytelling and peace narratives can promote diversity, tolerance and resilience. Universities can offer online peace education during vacations. Social media influencers can be engaged for the dissemination of messages of coexistence and inclusion.
Political instability and polarisation are other irritants that keep youth away from peacebuilding efforts, as parties often mobilise youth for protest and confrontation rather than for dialogue or peace. Consequently, youth engagement becomes politicised rather than peace-oriented. Ethnic and sectarian divides also fuel mistrust among youth as do weak rule of law and injustice. When the criminal justice system fails to resolve issues and the youth experience human rights violations that alienate them, they may resort to violence. Finally, gender inequality is another significant barrier. Women are excluded from most peace processes, even though they suffer the most from conflict. Cultural and religious barriers li-mit women’s visibility in public and peace efforts. Conseq-uently, women are sidelined in reconciliation and reform.
Social empowerment requires more investment, and when planning youth em-powerment, gender gaps need to be addressed. According to the Pakistan Economic Survey 2023-24, 4.5m individuals are unemployed, with youth aged 15-24 having the highest unemployment rate of 11.1 pc. Addressing this issue requires opportunities for career counselling, education, skills enhancement, employment, inclusive governance and justice, not just kinetic measures.
Pakistan’s youth possess potential, but without channelling their energy, their talent is useless. Therefore, the inclusion of the voice of youth in policymaking is necessary. It is essential to recognise youth as key peace stakeholders in local and national frameworks, fund youth-led projects, integrate peace education by teaching empathy, dialogue and civic engagement, and include youth representation in local peace committees. Art, music and culture are other attractive avenues through which youth may be educated about identity, trauma, healing and the softer aspects of life.
The writer is the author of Pakistan: In Between Extremism and Peace.
In a significant step towards strengthening bilateral ties, Pakistan and Bangladesh have agreed in principle to allow visa-free entry for holders of diplomatic and official passports.
The breakthrough was achieved during a high-level meeting between Interior Minister Mohsin Naqvi and Bangladesh’s Home Minister Lieutenant General (retd) Jahangir Alam Chowdhury in Dhaka on Wednesday. Naqvi, who is also head of the Pakistan Cricket Board (PCB), is in Dhaka to attend the Asian Cricket Council (ACC).
On the sidelines, he held talks with his Bangladeshi counterpart as part of ongoing efforts by the two sides to reset their ties.
Relations between Pakistan and Bangladesh have seen a positive turnaround since the ouster of Sheikh Hasina Wajid government in August 2023.
Following the end of 15-year Awami League rule, Pakistan and Bangladesh stepped up efforts to restore their bilateral ties.
There have been increased bilateral exchanges between the two sides. The visit of Naqvi was the latest example of those increased interactions.
Foreign Minister Ishaq Dar was also supposed to visit Dhaka in late April but tensions between Pakistan and India led to the delay in the landmark trip.
The decision by the two sides to allow visa free entry to those who hold diplomatic and official passports is seen as significant step.
During the Hasina government, Pakistani diplomat had to face increase scrutiny and surveillance. Pakistani exports to Dhaka also faced non tarrif barriers. But those restrictions have been lifted by the interim Bangladesh government.
A statement issued here by the interior ministry said, the Bangladeshi Home Minister extended a warm welcome to his Pakistani counterpart, who was presented with a guard of honour upon his arrival at the Ministry of Home Affairs. Describing the visit as “of great significance for strengthening bilateral relations,” Chowdhury thanked Minister Naqvi for offering training opportunities for Bangladeshi police officers.
During the talks, both sides agreed to enhance cooperation in internal security, police training, counter-narcotics, anti-human trafficking, and counter-terrorism efforts. Exchange programs between police academies of the two countries were also discussed.
It was decided to establish a joint committee to further boost bilateral cooperation, which will be headed by Pakistan’s Federal Secretary for Interior, Khurram Agha. Additionally, a high-level Bangladeshi delegation will soon visit the National Police Academy in Islamabad.
The meeting was attended by Bangladesh’s State Minister for Home Affairs Khuda Bakhsh, Secretary for Home Affairs Nasim Al-Ghani, Additional Secretary Security Division Shamim Khan, Pakistan’s Charge d’Affaires Muhammad Wasif, Political Counsellor Kamran Dehingal, and other senior officials.
• Expresses alarm over mismanagement, loan defaults, widespread irregularities • Secretary claims production declined despite increase in cultivation area; no buffer stock exists • Minister warns mills, says hoarding won’t be tolerated; crackdown underway
ISLAMABAD: As a nationwide crackdown on sugar hoarders is underway, the Public Accounts Committee (PAC) has raised serious concerns over mismanagement in the sugar sector, loan defaults by mills, and large-scale irregularities involving public institutions.
During its sitting on Wednesday, National Food Security Secretary Amir Mohyuddin revealed that although the area under sugarcane cultivation increased this year, overall production had declined compared to the previous year.
Out of 82 registered sugar mills, only 79 participated in the crushing season, which typically begins in November. The secretary admitted that Pakistan currently has no buffer stock of sugar, and a summary has been sent to import 500,000 tons, of which 300,000 tons are already planned.
Committee members, particularly Riaz Fatyana and Junaid Akbar, criticised what they described as a “massive sugar cartel” that manipulates supply and prices.
Mr Fatyana asked why 7.5 million metric tons of sugar were allowed to be exported, alleging it was done to artificially inflate local prices.
He also questioned the Federal Board of Revenue (FBR) for issuing a Statutory Regulatory Order (SRO) that reduced the sales tax on sugar imports. “This export was designed for profiteering,” he claimed.
PAC Chairman Junaid Akbar Khan condemned the influence of sugar barons, stating, “These mill owners are part of every government. Why is the International Monetary Fund (IMF) silent on their profiteering?”
He questioned why tax exemptions were given to sugar importers while the general public was denied relief. FBR officials responded that the tax exemption was a cabinet decision and the board acted on official instructions.
MNA Naveed Qamar argued that the government should refrain from intervening in the sugar market. “Every time the government steps in, things get worse. Bureaucracy cannot run markets,” he said, adding that two main cartels — sugar and fertiliser — continue to operate without oversight.
MNA Shazia Marri demanded a report detailing how much subsidy was granted to sugar mills over the past five years and identifying the top beneficiaries. The committee also expressed dissatisfaction with the composition and transparency of the Sugar Advisory Board and directed the Ministry of Industries to attend the next meeting and clarify decisions related to sugar export and import, as the Ministry of Food Security claimed it had no access to that data.
But despite the government’s best efforts, the sugar crisis persists. In this backdrop, Minister for National Food Security and Research Rana Tanveer Hussain warned all sugar mills that are not releasing their existing stocks and hoarding them, will not be tolerated under any circumstances.
In a meeting with representatives of the Pakistan Sugar Mills Association (PSMA) and other key stakeholders, he directed provincial governments to ensure the timely lifting of sugar from mills and to facilitate its smooth transportation to markets.
He stated that a nationwide crackdown is currently underway against those disrupting the sugar supply chain. Expressing serious concern over the artificial increase in sugar prices, the minister warned of strict action against hoarders.
Meanwhile, a press release from the Ministry of National Food Security noted that sugar prices have started to decline significantly—from Rs200 per kilogram to Rs175 per kilogram—as a result of the government’s crackdown.
Islamabad – Chairman Senate Syed Yousuf Raza Gilani on Wednesday termed poverty, unemployment, and illiteracy the root causes of terrorism and extremism. In a Senate Secretariat press release, he emphasised the need for a comprehensive strategy to address these fundamental issues so that the youth can actively contribute to the country’s development and prosperity. He expressed these views while addressing the inaugural session of the Senate of Kalam Bibi International Women Institute, Bannu, He presided over the session on behalf of the president of Pakistan. This important session held today at the Parliament House, was attended by Governor Khyber Pakhtunkhwa Faisal Karim Kundi, Chairman HEC Dr Mukhtar Ahmed, Vice Chancellor of the Institute Professor Dr. Aurangzeb Khan, MNA Mrs. Shahida Akhtar Ali, Engineer Ahmad Khan Kundi, Member of the Provincial Assembly of Khyber Pakhtunkhwa, and other senior officials. Chairman Senate welcomed the establishment of the Kalam Bibi International Women Institute Bannu and said that this institution will facilitate higher and professional education for women in the southern districts of Khyber Pakhtoon Khwa. He also appreciated the efforts made for the establishment of the institute and stressed that steps should be taken to provide the institution with maximum facilities. The Chairman Senate noted that education and health are very close to his heart, and both sectors are deeply interconnected. He further stated that the welfare of women and the inclusion of minorities in the national mainstream have always been his top priorities. Expressing his views, he directed the HEC to take immediate steps to ensure the provision of modern technology, internet, and other essential facilities.
ISLAMABAD – In a major diplomatic breakthrough on Wednesday, Pakistan and Bangladesh agreed in principle to grant visa-free entry to holders of diplomatic and official passports on Wednesday during a high-level meeting between Pakistan’s Federal Interior Minister Mohsin Naqvi and Bangladesh’s Home Minister Lieutenant General (Retd) Jahangir Alam Chowdhury in Dhaka.
Minister Naqvi, who is on an official visit to Bangladesh, was warmly received by his counterpart upon arrival at the Ministry of Home Affairs. He was presented with a guard of honour before the two sides began discussions.
During the meeting, the two ministers held wide-ranging talks on bilateral issues and matters of mutual interest, with a particular focus on strengthening cooperation in internal security and law enforcement. Both sides expressed a strong desire to deepen collaboration in key areas, including counter-terrorism, combating drug trafficking, and preventing human smuggling.
One of the most significant outcomes of the meeting was the mutual agreement to allow visa-free travel for officials and diplomats, a move seen as a step towards easing bureaucratic barriers and enhancing bilateral engagement.
The ministers also discussed plans to exchange training programs between police academies, aiming to improve professional capacity and technical expertise. Bangladesh’s Home Minister thanked Minister Naqvi for offering support in police training and described the visit as an important milestone in advancing ties between the two countries.
“I wholeheartedly welcome my brother upon his arrival in Dhaka. Your visit is of great importance for the promotion of Pakistan-Bangladesh relations,” said the Bangladeshi minister.
To follow up on the decisions taken during the meeting, both sides agreed to form a joint committee. Pakistan’s Federal Interior Secretary Khurram Agha will lead the Pakistani side in this coordination effort. The committee will oversee implementation of the agreed initiatives and explore further avenues for cooperation.
As part of the growing partnership, a high-level delegation from Bangladesh is expected to visit Islamabad soon to study Pakistan’s Safe City Project and tour the National Police Academy.
The meeting, attended by senior government officials and diplomats from both countries, marks a new chapter in efforts to build trust and collaboration between Islamabad and Dhaka. It underscores a shared commitment to regional security, institutional development, and diplomatic engagement.
QUETTA: An anti-terrorism court in Quetta on Wednesday extended the physical remand of Sardar Sherbaz Satakzai and Bashir Ahmed for 10 more days in a case pertaining to the brutal killing of a man and a woman in the Dagari mines area of Quetta district, in the name of ‘honour’.
Bano Bibi Satakzai and Ehsan Samalani were killed on June 4 on the order of a local jirga, and a video of the incident went viral over the weekend. After their arrests, the court initially remanded the suspects in police custody for two days on Monday.
After the expiry of the remand on Wednesday, they were produced before the ATC under strict security. The Serious Crimes Investigation Wing Quetta officer requested an extension of the physical remand for further investigation for 15 days. However, the court ordered a 10-day extension in the remand.
Meanwhile, Balochistan police chief Moazzam Jah Ansari told Dawn that 15 arrests had been made in the case. The police chief said efforts were underway to arrest the primary suspect, Jalal, the brother of the slain woman. He said several raids had been conducted and the police were using technology to make further arrests.
Police chief says 15 arrests made, efforts underway to nab prime suspect
Video message
On the other hand, a viral video — which could not be independently verified by Dawn — purportedly showed the mother of the slain woman holding the Holy Quran in her hands.
The woman, speaking in Brahvi, said she was the mother of the slain woman and claimed that the deceased had five children, ranging from 6 to 18 years old. She claimed that the victim eloped with her neighbour and she was killed in line with “Baloch traditions”.
She added that her husband forgave her after her return, but the man she ran off with allegedly threatened them and “did not stop”. Addressing Chief Minister Sarfraz Bugti, she asked why their homes were being raided by the police.
“Whatever we did, we did in the name of honour. We have not committed any sin,” she said in her video message.
Earlier this week, police arrested at least 14 suspects for their involvement in the killing of the man and a woman shot dead on the orders of a tribal jirga ahead of Eidul Azha.
The horrific video of the incident went viral on Sunday, prompting a countrywide outcry, and the Balochistan Assembly also passed a joint resolution against the killings.
CHAKWAL: A tragedy befell a family in Ghanwal village of Chakwal during the recent rains that battered the region on July 16 and 17, where two minor children lost their lives.
However, their deaths were not recorded by the district administration as the family was unable to contact Rescue 1122 despite repeated calls. As a result, they did not receive the compensation announced by Punjab Chief Minister Maryam Nawaz Sharif during her visit to Chakwal on Saturday.
Dawn learned that a six-year-old girl died after being buried under the rubble of a roof that collapsed, while an infant was swept away in a torrent after the van carrying both children to the hospital fell into a culvert.
Bilal Hussain, 34, had three daughters, while his elder brother had three sons. Two weeks ago, the elder brother was blessed with a fourth son, whom he gave to Bilal as a gesture of goodwill.
On Wednesday, July 16, to celebrate the arrival of the new male child, Bilal arranged a meal for his relatives and fellow villagers. The infant was named Ahmed Bilal.
That night, while Bilal, his wife, his three daughters, and the newly adopted child were asleep in their bedroom, a portion of the roof caved in. Six-year-old Maryam Bibi, a grade-one student, was buried under the rubble, while the infant was struck by a falling tile. Villagers retrieved Maryam Bibi’s body from the debris. She was unconscious and likely died on the spot.
As the family rushed to a nearby hospital, another tragedy struck. “The rainwater gushing from the fields was overflowing onto the road. As we tried to cross the culvert, the vehicle fell about four feet, as the culvert had already been washed away by the deluge,” Bilal told Dawn.
The torrent swept the vehicle 150 to 200 metres downstream. There were eight people in the vehicle, including the two children. “We managed to get out of the water, but Maryam Bibi and Ahmed Bilal were lost. We found Maryam, but the baby could not be found,” Bilal said in a barely audible voice as he tried in vain to hold back his tears.
The family was left stranded in the fields during the night as the rain continued to lash the area. Bilal said they managed to return home in the early hours of Thursday.
MPA Malik Tanveer Aslam, who visited the family, told Dawn that he had requested the deputy commissioner to forward the case to the chief minister. DC Sarah Hayat told Dawn that all ten compensation cheques had already been distributed. “We do not have more funds, and the case of both children has been sent to Lahore,” she said.
ISLAMABAD: Pakistan and Bangladesh on Wednesday agreed to grant visa-free entry to holders of diplomatic and official passports from the other side.
The deal in principle marking a breakthrough in bilateral relations between the two states was reached during a meeting between Interior Minister Mohsin Naqvi and Bangladesh’s Home Minister Jahangir Alam Chowdhury.
The two sides discussed matters of mutual interest and bilateral ties between Pakistan and Bangladesh, said a communication received here from Dhaka through the media wing of the interior ministry.
The ministers agreed to enhance cooperation in internal security and police training. They also held discussions on increasing collaboration in counter-narcotics and anti-human trafficking efforts, along with joint measures for counterterrorism.
The Bangladeshi home minister said: “I extend a heartiest welcome to my brother Mohsin Naqvi on his arrival in Dhaka. Your visit is of great significance for strengthening bilateral relations between our two countries.”
On Pakistan’s side, federal secretary for interior, Khurram Agha, will head the committee. A high-level Bangladeshi delegation will soon visit the National Police Academy in Islamabad.
Bangladesh’s State Minister for Home Affairs Khuda Bakhsh, secretary Nasim Al-Ghani, additional secretary of security division, Shamim Khan, and other officials attended the meeting.
Earlier, on his arrival at the Bangladesh home ministry, Mr Naqvi was presented the guard of honour.
