Latest news with #PakistanMuslimLeague-Nawaz
Business Recorder
a day ago
- Business
- Business Recorder
Budget talks with IMF successful: PM Shehbaz
ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday that talks with the International Monetary Fund (IMF) over the forthcoming federal budget had been successful, paving the way for a new phase of economic growth. Talking to a select group of journalists, Sharif said the government had stabilised the economy and would now shift its focus toward sustained development. 'We have achieved economic stability; now we must embark on the journey of economic development,' he said, claiming that no corruption cases had emerged during the current tenure of his Pakistan Muslim League-Nawaz (PML-N) government. IMF disagrees with Pakistan over key targets, subsidies ahead of budget Sharif also signalled readiness to engage in dialogue with India, proposing talks on four key issues: Kashmir, water, trade, and terrorism. 'Pakistan is willing to hold talks anywhere in the world,' he said, adding that Indian Prime Minister Narendra Modi's recent remarks were driven by domestic political pressure. 'We have taken our revenge for 1971 from India,' Sharif claimed, stating that Pakistan had shot down six aircraft, including four Rafale fighter jets. He further said the government was committed to implementing sustainable reforms across national institutions, aiming to transform Pakistan into a stable and competitive global economy. It is pertinent to mention that the federal budget for the next fiscal year is expected to be a reform-driven, IMF-guided document focused on economic stabilisation, balancing fiscal consolidation with targeted relief. Finance Minister Muhammad Aurangzeb is scheduled to present the budget in National Assembly on June 10, following a delay caused by protracted discussions with the IMF over tax relief. The budget was initially slated for June 2. Development spending under the Public Sector Development Programme (PSDP), originally set at Rs1.4 trillion – including Public-Private Partnership projects – has been revised downward twice, first to Rs1.25 trillion and later to Rs1.096 trillion. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
Budget talks with IMF successful: PM
ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday that talks with the International Monetary Fund (IMF) over the forthcoming federal budget had been successful, paving the way for a new phase of economic growth. Talking to a select group of journalists, Sharif said the government had stabilised the economy and would now shift its focus toward sustained development. 'We have achieved economic stability; now we must embark on the journey of economic development,' he said, claiming that no corruption cases had emerged during the current tenure of his Pakistan Muslim League-Nawaz (PML-N) government. IMF disagrees with Pakistan over key targets, subsidies ahead of budget Sharif also signalled readiness to engage in dialogue with India, proposing talks on four key issues: Kashmir, water, trade, and terrorism. 'Pakistan is willing to hold talks anywhere in the world,' he said, adding that Indian Prime Minister Narendra Modi's recent remarks were driven by domestic political pressure. 'We have taken our revenge for 1971 from India,' Sharif claimed, stating that Pakistan had shot down six aircraft, including four Rafale fighter jets. He further said the government was committed to implementing sustainable reforms across national institutions, aiming to transform Pakistan into a stable and competitive global economy. It is pertinent to mention that the federal budget for the next fiscal year is expected to be a reform-driven, IMF-guided document focused on economic stabilisation, balancing fiscal consolidation with targeted relief. Finance Minister Muhammad Aurangzeb is scheduled to present the budget in National Assembly on June 10, following a delay caused by protracted discussions with the IMF over tax relief. The budget was initially slated for June 2. Development spending under the Public Sector Development Programme (PSDP), originally set at Rs1.4 trillion – including Public-Private Partnership projects – has been revised downward twice, first to Rs1.25 trillion and later to Rs1.096 trillion. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
A tax system built on evasion
Listen to article Those drafting the upcoming budget face a formidable set of challenges: the mammoth and still growing debt burden, the skyrocketing cost of living for the poor, and the seemingly intractable trade deficit, to name just a few. But by far the biggest challenge is the mismatch between income and expenses. This has led the government to run a perennial budget deficit. Of course, this is a situation that cannot continue forever. If the government were a corporation, it would have been declared bankrupt years ago. There are only two ways to address this problem: increase tax revenues or decrease expenses. On the latter, there's much the government can do to curb needless extravagance — think of the number of cabinet ministers it supports and their ancillary costs, or the number of MNAs and MPAs in our assemblies, whose presence or absence has zero impact on the country. But ultimately, cutting expenses is a game of diminishing returns. You can trim the fat only so far before you get to the meat. So, the solution to the budget deficit must rely on boosting revenues. And here lies the real problem. Pakistan is perhaps the only country in the world that gives its citizens the option to pay taxes — or not. We have a whole category of people called non-filers who can legally refuse to be part of the tax net. Only a slim — and some might say foolish — minority has opted to become filers, actually submitting tax returns. In an effort to improve tax compliance without broadening enforcement capacity, this filer versus non-filer distinction was introduced through the Finance Act 2013 under the Pakistan Muslim League-Nawaz (PML-N) government. It allowed the Federal Board of Revenue (FBR) to impose differential withholding tax rates on certain transactions — like vehicle registration, banking, and real estatebased on taxpayer status. This had several goals: encouraging non-filers to register and become filers, using third-party withholding as a substitute for weak enforcement, and generating quick revenue from high-volume transactions. Despite some early gains in revenue collection, the system created a host of negative consequences. It spawned a parallel economy which, rather than pushing non-filers into the formal system, effectively legalised non-compliance by allowing them to continue operatingalbeit at a higher cost. Instead of enforcing mandatory return filing, the government began collecting advance taxes from non-filers on transactions such as vehicle registration, bank withdrawals, and real estate deals. This turned non-compliance into a revenue stream. Many prefer to remain non-filers and simply absorb the higher withholding tax — it's often cheaper and less risky than formal registration. Cash-based and undocumented businesses continue to function outside the tax net, limiting the impact of broader economic reforms. A particularly troubling outcome is that filers often feel punished for their honesty, while non-filers continue with impunity. Filers face politically motivated audits, complex filing requirements, and penalties for minor errors. Non-filers avoid scrutiny altogether. This disillusionment fosters cynicism and erodes trust in tax authorities. Instead of encouraging compliance, the system paradoxically discourages it — especially when filers see no benefits in return for their transparency. Tax systems thrive on fairness and reciprocity. Yet this two-tier structure undermines both. Filers rarely witness improvements in public services or infrastructure proportional to their contributions, further dampening their motivation to comply. Knowing that non-compliance attracts no real penalty — beyond a slightly higher withholding rate — many make the rational decision to avoid filing. Certain sectors, like real estate and wholesale/retail trade, thrive despite being dominated by non-filers, making voluntary compliance appear naïve and burdensome. This split also introduces market distortions. Individuals and businesses structure transactions to dodge higher non-filer taxesusing intermediaries, splitting invoices, or underreporting. Genuine investors are deterred by sectors with high compliance burdens, creating a tilt toward low-visibility, low-regulation activities. Non-filers still invest in property— albeit at higher ratesfuelling speculation rather than productivity. While withholding taxes have boosted collection, actual compliance and accountability remain weak. The government may celebrate rising revenues, but much of it comes from advance taxes on non-filers who remain beyond the system's reach. There's been no expansion of the taxpayer base. Withholding doesn't equate to documentation or broader participation. Worse, the administrative burden has increased. Focusing on transaction-based tax grabs distracts from building institutional audit and enforcement capacity. This system undermines progressive taxation. A core tenet of modern tax policy is that those who earn more should pay morea principle weakened by our current regime. Withholding taxes are levied regardless of an individual's ability to pay, hitting poor and low-income non-filers hardest. Since non-filers are taxed per transaction, not income, the regime becomes regressive. Equity is eroded. The wealthiest often remain outside the net entirely by structuring their finances to avoid detection. Finance Minister Muhammad Aurangzeb has called the upcoming budget a "structural budget" — implying fundamental reforms are on the table. If he truly intends to walk the talk, he must begin by scrapping the non-filer category. It's iniquitous and untenable. But this alone won't suffice. The FBR's enforcement capacity must be enhanced to manage a larger filer base. Digitisation must also accelerate. Cashless, online transactions should be made mandatory. AI can automate many functions — like audit selection — that currently rely on human input. These reforms will take time, but eliminating the non-filer status can happen immediately. It's the necessary first step, and it alone could significantly boost revenues and help reduce the chronic budget deficit that continues to haunt the country. THE WRITER IS CHAIRMAN OF MUSTAQBIL PAKISTAN AND HOLDS AN MBA FROM HARVARD BUSINESS SCHOOL
Business Recorder
2 days ago
- Health
- Business Recorder
Nawaz leaves for London for medical check-up
LAHORE: Pakistan Muslim League-Nawaz (PML-N) supremo and former prime minister Nawaz Sharif left for London on Sunday for a medical check-up, party sources confirmed. Sharif departed from his residence in Jati Umra and boarded a special flight from Lahore's Old Airport. According to party insiders, the former premier will remain in the UK, during which he is expected to undergo a comprehensive medical examination. Nawaz Sharif is likely to stay in London for two weeks and will celebrate Eid-ul-Azha in London.
Express Tribune
3 days ago
- Politics
- Express Tribune
Imran to lead movement from behind bars
Listen to article Pakistan Tehreek-e-Insaf (PTI) founder and former premier Imran Khan announced on Saturday the launch of a nationwide protest movement against the Pakistan Muslim League-Nawaz (PML-N)-led ruling coalition, declaring that he will lead the campaign from behind bars. The announcement was conveyed by PTI Senator Ali Zafar following his meeting with the incarcerated party's supremo at Adiala Jail. Addressing the media outside the prison, the senator said the former PM had decided that the waiting game was over and the party would now take to the streets in a well-organised countrywide campaign. "The protest will not be limited to Islamabad," Zafar said. "It will be held across the country. The chairman [Khan] said we have been pushed to the wall. We are left with no choice but to go to the people." Khan, who has been behind bars since August 2023 on a raft of charges including corruption and incitement to violenceallegations he deniestold Zafar he would oversee the movement from jail and directly issue instructions to party leaders. According to Zafar, Khan has tasked him with preparing a comprehensive plan for the protest campaign, which will be finalised after further consultations with the party's legal team and senior leadership. "The chairman has full faith in the leadership, but he insists on leading the movement himself," Zafar said, "he [Khan] has asked me to draft the initial protest strategy, which will be presented in the next meeting." The announcement comes against the backdrop of months of political gridlock and PTI's persistent claims of being denied a fair shake. Khan and his party have maintained that the legal actions against him were politically engineered and aimed at erasing him from the political playing field. Khan's statement followed closely on the heels of his recent overtures to the country's powerful stakeholders, during which he expressed a willingness to engage in dialogue for national unity. He had reiterated openness to a "give and take" with the establishment, but "only for Pakistan's interest," not for personal relief. However, Saturday's message marked a shift in gears. "We are not getting any relief from the judiciary or the executive," Khan was quoted as saying. "No option has been left for us. We must now go to the streets." According to Zafar, Khan was adamant that this round of agitation would not be like previous attempts that fizzled out due to internal rifts and external pressures. "He wants the campaign to be fully planned and effective," Zafar said. "He knows there will be obstacles, but he believes we also have ways to overcome them." This is not the first time PTI has threatened to launch a street movement. The party had announced a protest after Eid earlier this year, but the plan never got off the ground, fuelling scepticism even among some supporters. However, Khan's renewed resolve suggests a return to a more confrontational path ahead. Moreover, the development is likely to dial up tensions between PTI and the military establishment. Despite Khan's earlier calls for reconciliation, relations remain fraught. Notably, PTI leaders were absent from a recent military-hosted dinner celebrating the success of Operation Bunyan-um-Marsoos, Pakistan's retaliatory operation following Indian aggression in May. The conspicuous absence of Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur from the event further underscored the lingering chill. Despite moments of cooperation during the Pakistan-India standoff, the mutual distrust between PTI and the establishment appears to have deepened. Meanwhile, ministers from the ruling PML-N coalition have continued to scoff at PTI's protest plans, pointing to the party's failure to mobilise mass support since Khan's arrest. However, Khan's call to action from a prison cell may still energise PTI's base, which has remained active online and during sporadic public gatherings. Party leaders have been hinting for weeks that a decisive moment was in the offing. "This time, the movement will not be symbolic," Zafar said. "It will be decisive. And the chairman will lead it from his prison cell." PTI insiders say the final contours of the protest strategy will be shaped in the coming days. Observers note that whether Khan's call translates into sustained public mobilisation remains to be seen, especially in a political climate where opposition space has been sharply curtailed.
