Gender gap crisis
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Pakistan's rock-bottom ranking in the World Economic Forum's Global Gender Gap Report 2025 is a damning indictment of the government's claims regarding women's empowerment. Pakistan fared even lower than Iran, which has several social restrictions on women, and war-torn Sudan, where a large share of the women are internally displaced and unable to access proper healthcare or work, while enduring high rates of sexual violence.
Among the most telling gaps in the report is that women still account for only 22.8% of the labour force, almost all of which is in agriculture or 'women's work', such as maids and other domestic work for those with less education, or teaching, and occasionally medicine, for educated women. Even here, it is worth noting that women who study medicine are often referred to as "lady doctors", rather than just doctors, in a manner that often comes across as pejorative. Women are also chronically underpaid, with many employers intentionally underpaying white-collar workers because they probably are not their families' breadwinners.
As for political participation, the only reason we have any significant political representation for women is because of reserved seats. Currently, only 12 women members of the National Assembly are directly elected, and almost all of them are from political families. While many women in politics have proven themselves to be competent, the fact that they are only allowed into the field if a male relative opens the door is emblematic of problems across society and in all walks of life.
Meanwhile, even data for education — which on the face suggests slight improvements in women's enrolment — is skewed by the fact that male enrolment declined, artificially inflating the improvement for girls.
Experts believe that improving women's workforce participation alone could increase GDP by 60%. Female participation in politics and society could also improve professional, educational and health outcomes for women. Bridging the gender gap is, thus, not just a women's issue, but of everyone.
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Express Tribune
9 hours ago
- Express Tribune
Salaried class to pay Rs535b despite minor relief
Listen to article A National Assembly panel on Friday termed a nominal reduction in the salaried class income tax rates a "joke", as discussions revealed that the salaried individuals would still pay around Rs535 billion in next fiscal year due to a paltry relief of Rs56 billion. According to details shared by Federal Board of Revenue Chairman Rashid Langrial with the National Assembly Standing Committee on Finance, 981,051 individuals would get a direct benefit of 2% to 4% reduction in their tax rates. This translated into Rs56 billion in relief against the estimated Rs540 billion income tax collection in this fiscal year. However, due to the proposed 10% increase in salaries and nominal economic growth, the FBR has estimated again receiving over Rs535 billion from the salaried class in the next fiscal year, according to the tax authorities. "The proposed reduction in the income tax rates is a joke with the salaried persons," remarked Syed Naveed Qamar, chairman of the standing committee and former finance minister. The FBR chairman agreed that the reduction was lower than desired but repeated that the government did not have much fiscal space to give any major relief. In the last budget, the government disproportionately increased the salaried class burden, which pushed their contributions from Rs368 billion of the previous year to around Rs540 billion this year. From Prime Minister to the Finance Minister everyone had acknowledged the undue burden put on the salaried persons but they did very little. However, the height of insensitivity was that despite agreeing with the IMF to reduce the income tax rate on up to Rs1.2 million annual incomes from 5% to 1%, the federal cabinet set the rate at 2.5% to pay higher salaries to the federal government employees. In the slab of up to Rs1.2 million annual earnings, there are 431,206 individuals who have been forced to pay 1.5% income tax over and above the threshold agreed with the IMF to pay higher salaries to the government employees. To a question, the newly appointed Minister of State for Finance Bilal Azhar Kayani said that due to the federal cabinet's decision to increase the proposed salaries from 6% to 10%, the income tax rates were also increased. However, Bilal remarked that the standing committee may suggest reducing the proposed increase in salaries. Hardly one million individuals will get direct benefit of Rs56 billion reductions. Out of the five slabs, the government reduced the rates for the first three slabs while leaving it unchanged for the last two slabs of 30% and 35% income tax rates. About 387,345 individuals earning up to Rs2.2 million annually have been offered a 4% reduction in their income tax rates compared to the current 15% rate. Another 162,000 persons earning up to Rs3.2 million would receive a mere 2% reduction in the rates. Langrial said that individuals falling in the two higher slabs of 30% and 35% will also get indirect benefit of reduction in the lower slab rates due to reduction in their effective income tax rates. According to the presentation, there are about 235,391 individuals falling in these two higher slabs. The government also marginally reduced the income tax surcharge rate from 10% to 9% due to lack of fiscal space. Langrial said that the super tax rate for the medium sized firms is reduced by half percentage, admitting it was just aimed at giving signals rather than any relief. The estimated benefit is mere Rs2 billion. The FBR chairman finally admitted that imposing 3% federal excise duty on immovable property in the last fiscal year was a "theoretical mistake and unjust". The government has proposed to abolish the duty in the budget. But those who proposed it and defended it till recently were still sitting in the same room with him. In a meeting of the Senate Standing Committee on Finance that is also discussing the budget, Finance Minister Muhammad Aurangzeb backed a proposal to increase the retirement age of the federal government employees. Senator Farooq H Naek advocated raising the retirement age of bureaucrats to save pension costs and said that a bureaucrat is fit and experienced at 60; instead of benefiting from experience, we retire them prematurely. Senator Anusha Rahman pointed out that retired officers instantly join semi-government institutions and increasing the retirement age makes practical sense. The Finance Minister said that in the HBL the retirement age was 65 years and after the budget, he will evaluate this proposal seriously. The finance minister made a surprising claim that the government has not imposed any new tax in the budget. However, contrary to the Finance Minister's claim that the government has slapped 5% new income tax on pensioners, Rs2.5 per liter carbon levy on petroleum products and car engine levy. The finance minister said that the government proposed new tax measures worth Rs312 billion through compliance and enforcement. The National Assembly Standing Committee on Finance also showed its dissatisfaction over the government's budget proposal to slap taxes on the digital economy, particularly cash on delivery. "Our youth is already angry with us and you have put more burden on them", said Syed Naveed Qamar. The Member Policy FBR Dr Najeeb Ahmad claimed that the 2% withholding tax on cash on delivery will be part of the cost of the product ordered online a stance that does not appear true. To which Naveed Qamar said that if the claim was true, the committee would not object to the proposal. The committee members were of the view that the 2% cost would be paid by the purchaser, not by the seller. The standing committee also asked the FBR to increase the cash withdrawal limit for collecting 0.8% tax from Rs50,000 to above Rs75,000. The Chairman FBR promised to look into the proposal. The committee also suggested that instead of charging an increased 20% income tax on interest earned on banking deposits, the FBR should introduce a new slab to charge 15% rate from the pensioners and small-income earners. The FBR did not oppose the proposal.
Business Recorder
10 hours ago
- Business Recorder
Dar says steps under way to enhance financial ties with Turkiye
ISLAMABAD: Deputy Prime Minister and Federal Minister for Foreign Affairs Ishaq Dar said that Pakistan is exploring opportunities to enhance cooperation in financial and logistics services including opening of Turkish banks in Pakistan to support bilateral trade flows. In a written reply to a question in the National Assembly on Friday, the minister said that in support of these efforts, the government is also planning to convene the 6th session of the Pakistan-Turkiye Joint Ministerial Commission (JMC) in Islamabad, revitalising institutional framework for economic cooperation. He said that Turkiye has also expressed strong interest in investing in Pakistan's Special Economic Zones (SEZs). He said that in response, the prime minister has directed the Board of Investment to develop a dedicated investment package for Turkish investors. He said that Pakistan wants to enhance trade and investment cooperation with Turkiye, in line with mutually agreed target of $5 billion by 2025. He said that bilateral trade volume currently stands at approximately $1.02 billion. He said that Pakistan's growing IT sector over $2.6 billion in exports annually, presents substantial opportunities for Turkish investment and joint ventures. He said that Turkish companies are being invited to participate in the Jinnah Medical Complex Project, which aligns with both countries' vision for accessible healthcare. In another written reply to a question, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari said that renegotiating agreements with 36 IPPs (Independent Power Producers) and GPPs, leading to a reduction in the consumer end tariff. He said that the government has also terminated contracts of 06 IPPs leading to saving in capacity cost reduction. He said that the government saved Rs3.612 trillion over the life of the projects through these renegotiations. He said that the negotiations with remaining IPPs are under process and the relief shall be passed on to the consumers once the negotiations are finalised. The minister said that the amount of the circular debt as of March 2025 is Rs2,396 billion. He said that the matter relating to circular debt is being managed under Circular Debt Management Plan (CDMP). Moreover, efforts are being made by the Task Force/ Ministry of Energy (Power Division)/Ministry of Finance to curtail the circular debt. He said that further, an amount of Rs1.2 trillion is being arranged to finance/ refinance the current stock of circular debt. He said that the tenure of this loan will be six years with the interest rate at 6-months KIBOR minus 0.9 per cent. He said that the same will be paid through the Debt Service Surcharge collected from the electricity consumers. Copyright Business Recorder, 2025
Express Tribune
11 hours ago
- Express Tribune
Sadiq, Gilani deny role in salary hike
National Assembly Speaker Sardar Ayaz Sadiq on Friday clarified he had no role in the phenomenal raise in the salaries of the custodians of the upper and lower house of parliament, and that those who had given that raise could also withdraw it. Sadiq was responding to a comment of the leader of opposition in the National Assembly, Omar Ayub, who during the budget session on Friday, said the government speaks of austerity but is committing "financial obscenity". The phrase — financial obscenity — was earlier used by the defense minister, Khawaja Asif, to describe a 500% raise in the salaries of the NA speaker and deputy speaker and the Senate chairman and deputy chairman. A report citing sources had claimed that Senate Chairman Yousaf Raza Gillani, who belongs to the PPP, presided over a meeting of the House Finance Committee a few months back to approve the raise in his own salary as well as that of the deputy chairman, Sardar Syedaal Khan Nasar of the PML-N It also claimed that NA Speaker Sardar Ayaz Sadiq of the PML-N chaired a similar meeting of the NA's House Finance Committee to "quietly" greenlight a raise in his own salary and that of the NA deputy speaker, a post held by PPP's Syed Ghulam Mustafa Shah. Responding to Omar's comment on Friday, Ayaz Sadiq said that neither the finance committees nor they themselves raised their salaries. "Those who have raised our salaries can also withdraw that raise. Any increment in our salary can be reversed by the government if it wishes," he added. Meanwhile, Senate Chairman Yousaf Raza Gilani on Friday also reportedly distanced himself from the massive hike in the salaries of senior parliamentarians including himself, saying he was not consulted before the raise was approved. A May 29 notification revealed that the Senate chairman and NA speaker's salaries had been raised from Rs205,000 to Rs1.3m, besides 50% of the revised salary (Rs650,000) as the sumptuary allowance. The hike took effect from January 2025.
