Abu Dhabi crown prince arrives today
At the invitation of Prime Minister Shehbaz Sharif, Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, on Thursday will arrive here on his first official visit to Pakistan.
"He will be accompanied by a high-level delegation, including Ministers and senior officials, as well as prominent business leaders. This visit underscores the deep-rooted fraternal ties between Pakistan and the United Arab Emirates (UAE) and reflects the shared commitment to further strengthen bilateral economic partnership," Foreign Office spokesperson said in a statement on Wednesday.
During the visit, the crown prince will engage in wide-ranging interactions with the leadership of Pakistan, to exchange views on matters of mutual interest, reinforce historical bonds and promote economic as well as investment cooperation.
Several agreements and Memorandums of Understandings will be signed during the visit to bolster existing robust framework for long-term collaboration in multifaceted sectors.
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Express Tribune
4 hours ago
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Anti-digital, pro-realty sector budget
Finance Minister Muhammad Aurangzeb on Tuesday unveiled a Rs17.6 trillion budget, which attempted to limit fiscal expansion but taxation measures were clearly self-contradictory that on one hand would promote cash economy and fossil fuels but discourage these too on the other. The government of Prime Minister Shehbaz Sharif also introduced new taxes on the digital economy, pensioners and clean energy. Some of these measures were contradictory to the stated policy to discourage the cash economy. However, the Finance Bill 2025-26, also gave incentives for clean energy by taxing the internal combustion engine cars and fossil fuels. Despite high poverty and high unemployment, the government proposed to drastically reduce import duties from raw materials to finished goods, which the industry feared would lead to de-industrialisation of Pakistan. The economy has been opened for the foreign competition by lowering protection available to local industries. 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Likewise, it increased the tax on cash withdrawals from banks from 0.6% to 0.8% to discourage cash economy and generate more easy money but it also imposed a new tax on digital services platforms in the range of 0.25% to 5%. The government also increased sales tax on 850 cc cars of the middle class from 12.5% to 18%. A new tax has been introduced on pensioners where the monthly pension of Rs833,000 has been taxed at the rate of 5%. The FBR was once again lacking in determining the policy, whether the government wanted to promote digital economy or cash economy. FBR Chairman Rashid Langrial cancelled the media briefing on the Finance Bill 2025-26, which was tantamount to compromising transparency and the right of the people to know about the measures that impact their futures. In his budget speech, the finance minister surprisingly stated that the "rapid growth in the online business and digital market places was creating problems for traditional businesses, therefore, it is proposed that e-commerce platforms, couriers and logistic services should be taxed at the rate of 18%. A tax official told The Express Tribune that the FBR would earn Rs64 billion by taxing the digital economy. The Finance Bill 2025-26 showed that the economic managers preferred the 19th century economy by providing some relief on purchase of properties but taxed the digital platforms of the 21st century. It has also proposed to ban economic transactions of ineligible persons, which include ban on purchase of properties, cars and investment in securities by persons whose assets do not match these purchases. Through the Finance Bill, the government also amended a host of other non-tax laws besides introducing two new legislations, the Digital Presence Proceeds Act 2025 and the New Energy Vehicles Adoption Levy Act, 2025. There might be constitutional questions, whether the new laws can be introduced through the Finance Bill. The government has proposed a total of over Rs415 billion worth of tax measures in the budget, said the senior tax official. These include Rs292 billion worth of FBR-related measures, Rs111 billion additional earnings by imposing Rs2.5 per litre carbon levy on petrol, diesel and furnace oil and Rs9 billion worth levy on conventional cars. Finance Minister Aurangzeb said that the IMF had also accepted the Rs389 billion worth enforcement measures. But he admitted that the FBR's tax-to-GDP ratio would remain below the IMF target of 10.6% in this fiscal year. 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The prime minister decided that in order to give a 10% increase in the salaries, the tax rate for the lower middle income group should be increased from the proposed 1% to 2.5%, said the sources. On annual income of up to Rs2.2 million, the government has proposed to reduce the rate from 15% to 11%, on annual income of Rs3.2 million, the rate is reduced from 25% to 23%. There is no relief for the annual salaried income earners of over Rs4.1 million. However, the fine on highest income earners has been reduced from 10% to just 9%, which the finance minister called was necessary to stop "brain drain". Advance tax on sale or transfer of immovable property has been increased from 3% to 4.5% on the value of Rs50 million property. The rate is jacked up to 5% from 3% on Rs100 million property while it is further increased to 5.5% from 4%, if the value exceeds Rs100 million. 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5 hours ago
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ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday that after defeating India in conventional warfare, the country must now outperform it economically, noting that Pakistan has reached a position of economic take-off with satisfactory indicators. Addressing a meeting of the federal cabinet before approving the fiscal budget for 2025-26, PM Sharif stated that the cabinet would deliberate on and approve the new budget. He highlighted that all economic indicators were stable and satisfactory due to the government's efforts, the sacrifices of the people, and stakeholders contributing to the national economy's health. Sharif acknowledged that the nation faced a hard situation and challenges over the past one and a quarter year, but steering the country out of them was no ordinary achievement. He noted that the common man and the salaried class had made sacrifices, with the salaried class contributing about Rs400 billion to the national kitty in taxes, questioning how much the wealthy and opulent had given. PM Sharif further observed that due to the nation's sacrifices and the government's striving, Pakistan had reached a point of take-off with satisfactory stability indicators. He said that exports and remittances had increased significantly, with IT exports showing continuous growth, emphasising the potential for further growth in these sectors. He expressed concern for the people of Palestine and Indian Illegally Occupied Jammu and Kashmir (IIOJK), facing what he termed the worst kind of tyranny and barbarism, calling for immediate ceasefire in Gaza and stressing that influential countries should ensure it. PM Sharif reiterated that it was time for influential countries to ensure immediate ceasefire in Gaza, where the blood of innocent people was being shed. He expressed strong conviction that the people of Palestine and Kashmir would achieve freedom, having made unprecedented sacrifices. He asserted that Pakistan would prevent India from weaponising water resources and would take all necessary steps to ensure uninterrupted access to its water share, adding that India was already unable to do so. He noted that if the same national unity and passion displayed during the armed conflict were applied to the economic sphere, Pakistan could achieve its objectives, stating that nothing was impossible. He appreciated Deputy Prime Minister Ishaq Dar and provincial governments for their consultations on the water storage issue. He also commended Finance Minister Muhammad Aurangzeb, his team, and all stakeholders for their efforts in preparing the fiscal budget for the upcoming year. Earlier in the day, the cabinet, chaired by the prime minister, approved the federal budget for the 2025-26 fiscal year. Copyright Business Recorder, 2025
Express Tribune
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Prime Minister Shehbaz Sharif intervened on Tuesday to alter the budgetary proposal to increase the salaries of government employees by 10% during a cabinet meeting he chaired for the approval of the federal budget on Tuesday, sources said. The cabinet held a detailed discussion on various budgetary proposals, including pay and pensions. During the meeting, Shehbaz rejected a proposed 6% salary increase, insisting instead on a 10% hike. The cabinet later approved a 10% raise in salaries and a 7% boost in pensions. Previously, the Pakistan Peoples Party (PPP), a key coalition partner, had demanded a substantial increase in salaries. However, Finance Minister Aurangzeb maintained that the government was already extending the maximum possible relief to the common man through the budget. Addressing the cabinet — live on national television — Shehbaz said that all economic indicators were now stable and satisfactory due to the government's efforts, the sacrifices of the people, and contributions from key stakeholders supporting the national economy. "The common man and the salaried class have made sacrifices," the prime minister said, adding that salaried individuals were rightly asking: they contributed around Rs400 billion to the national exchequer in taxes — how much have the wealthy paid? He noted that over the past five quarters, the county had faced tough conditions and multiple challenges, stressing that steering the nation through them was no small feat. "Pakistan has now reached the point of take-off, as all key stability indicators are satisfactory," he said.
