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Pakistan denies salaried workers carry disproportionate tax burden amid revenue push

Pakistan denies salaried workers carry disproportionate tax burden amid revenue push
A man sits outside a bank along a street in Rawalpindi, Pakistan on July 15, 2023. (AFP/File)
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Pakistan denies salaried workers carry disproportionate tax burden amid revenue push

Pakistan denies salaried workers carry disproportionate tax burden amid revenue push
  • Khurram Schehzad says salaried class contributed only 5 percent of total FBR revenues last fiscal year
  • Government is pursuing $50.7 billion revenue target set for FY26 amid IMF-backed reform plan

ISLAMABAD: The government on Friday dismissed a widely held perception that salaried workers bear a disproportionate share of the tax burden, saying the salaried class contributed only about 5 percent of total revenues in the last fiscal year and that income-tax rates for middle- and higher-income earners were cut in the latest budget.

The remarks by Khurram Schehzad, adviser to the finance minister, come amid public concern over shrinking disposable incomes and the government’s efforts to meet ambitious revenue-generation targets of Rs 14.13 trillion ($50.7 billion) under a $7 billion International Monetary Fund (IMF) loan program.

“During the last fiscal year, the salaried class contributed about 5 percent of total FBR revenues, and roughly 4 percent of total federal income,†Schehzad said in a social media post, referring to the Federal Board of Revenue.

“Last year, the salaried class paid Rs 555 billion [$2 billion] in taxes, while wholesalers, retailers and traders contributed nearly Rs 700 billion [$2.5 billion] (Rs 693 billion [$2.48 billion]), which was a 100 percent increase from the previous year,†he added. “These are verified, official figures.â€

Schehzad said around 600,000 individuals in Pakistan fell in the salaried class.

He added that for those earning about Rs 600,000 ($2,155) a month, the income tax rate was reduced from 5 percent to 1 percent.

For individuals earning between Rs 250,000 ($889) and Rs 300,000 ($1,078) a month, it was lowered from 15 percent to 13 percent.

Similarly, those earning around Rs 250,000 are now required to pay 23 percent tax, down from 25 percent previously.

Pakistan has sought to modernize its revenue-collection system through automation, with the FBR integrating artificial intelligence to detect misreporting and curb tax evasion.

The country’s tax-to-GDP ratio remains among the lowest in South Asia, about 10.6 percent in fiscal year 2024-25, below the 13 percent target set under the IMF program.

“The government is not targeting anyone,†Schehzad said. “We no longer have the luxury of avoiding tough decisions. We must do what’s right for the country’s long-term interest.â€Â 


Pakistani tech firm to open nation’s first Apple retail store in Lahore this year

Pakistani tech firm to open nation’s first Apple retail store in Lahore this year
Updated 25 October 2025

Pakistani tech firm to open nation’s first Apple retail store in Lahore this year

Pakistani tech firm to open nation’s first Apple retail store in Lahore this year
  • The announcement came during a corporate briefing by Airlink Communication, which manufactures, distributes and retails smart devices in Pakistan
  • In September 2024, GNEXT Technologies, Apple’s authorized distributor for Pakistan, tapped Airlink Communication as its premium partner in the country

ISLAMABAD: Airlink Communication, a Lahore-based Pakistani smart gadgets manufacturer, will be opening the nation’s first Apple retail store in Lahore this year, a Pakistani brokerage and market research firm said this week.

The announcement came during a corporate briefing by Airlink Communication, which manufactures, distributes and retails smart phones, TVs and wearables, attended by officials of the Topline Securities brokerage and market research firm.

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, in Silicon Valley, best known for its software, online services and consumer electronics, including iPhone, iPad, Apple Watch, Mac and Apple TV.

“Airlink plans to open Pakistan’s first ever Apple retail store by the end of 2025, along with a Xiomi retail outlet, in Dolmen Mall Lahore,†Topline Securities shared on X, citing the Airlink management.

The development comes weeks after Apple launched its much-awaited iPhone 17, which the US tech giant said has a brighter, more scratch-resistant screen and a better front camera.

In Pakistan, iPhones remain aspirational products for many consumers not only because of their built quality and software support, but also as “social status symbols.â€

In September 2024, GNEXT Technologies, Apple’s authorized distributor for Pakistan, tapped Airlink Communication as its premium partner in the country.

“This strategic appointment aims to significantly expand the availability of Apple products through structured retail channel coverage,†Airlink Communication said at the time.

“This will ensure that customers have convenient access to a wide range of Apple products, including iPhones, iPads, MacBooks, Apple watches and accessories.â€


More than 60 UN members sign cybercrime treaty opposed by rights groups

More than 60 UN members sign cybercrime treaty opposed by rights groups
Updated 25 October 2025

More than 60 UN members sign cybercrime treaty opposed by rights groups

More than 60 UN members sign cybercrime treaty opposed by rights groups
  • The new global legal framework aims to strengthen cooperation against child pornography, transnational cyberscams and money laundering
  • Critics say the broad language of the framework could lead to abuses of power and enable the cross-border repression of government critics

HANOI: Countries signed their first UN treaty targeting cybercrime in Hanoi on Saturday, despite opposition from an unlikely band of tech companies and rights groups warning of expanded state surveillance.

The new global legal framework aims to strengthen international cooperation to fight digital crimes, from child pornography to transnational cyberscams and money laundering.

More than 60 countries were seen to sign the declaration Saturday, which means it will go into force once ratified by those states.

UN Secretary General Antonio Guterres described the signing as an “important milestone,†but that it was “only the beginning.â€

“Every day, sophisticated scams, destroy families, steal migrants and drain billions of dollars from our economy... We need a strong, connected global response,†he said at the opening ceremony in Vietnam’s capital on Saturday.

The UN Convention against Cybercrime was first proposed by Russian diplomats in 2017, and approved by consensus last year after lengthy negotiations.

Critics say its broad language could lead to abuses of power and enable the cross-border repression of government critics.

“There were multiple concerns raised throughout the negotiation of the treaty around how it actually ends up compelling companies to share data,†said Sabhanaz Rashid Diya, founder of the Tech Global Institute think tank.

“It’s almost rubber-stamping a very problematic practice that has been used against journalists and in authoritarian countries,†she told AFP.

‘WEAK’ SAFEGUARDS

Vietnam’s government said this week that 60 countries were registered for the official signing, without disclosing which ones.

But the list will probably not be limited to Russia, China, and their allies.

“Cybercrime is a real issue across the world,†Diya said. “I think everybody’s kind of grappling with it.â€

The far-reaching online scam industry, for example, has ballooned in Southeast Asia in recent years, with thousands of scammers estimated to be involved and victims worldwide conned out of billions of dollars annually.

“Even for the most democratic states, I think they need some degree of access to data that they’re not getting under existing mechanisms,†Diya told AFP.

Democratic countries might describe the UN convention as a “compromise document,†as it contains some human rights provisions, she added.

But these safeguards were slammed as “weak†in a letter signed by more than a dozen rights groups and other organizations.

TECH SECTOR

Big technology companies have also raised concerns.

The Cybersecurity Tech Accord delegation to the treaty talks, representing more than 160 firms including Meta, Dell and India’s Infosys, will not be present in Hanoi, its head Nick Ashton-Hart said.

Among other objections, those companies previously warned that the convention could criminalize cybersecurity researchers and “allows states to cooperate on almost any criminal act they choose.â€

Potential overreach by authorities poses “serious risks to corporate IT systems relied upon by billions of people every day,†they said during the negotiation process.

In contrast, an existing international accord, the Budapest Convention on Cybercrime, includes guidance on using it in a “rights-respecting†way, Ashton-Hart said.

The location for the signing has also raised eyebrows, given Vietnam’s record of crackdowns on dissent.

“Vietnamese authorities typically use laws to censor and silence any online expression of views critical of the country’s political leadership,†said Deborah Brown of Human Rights Watch.

“Russia has been a driving force behind this treaty and will certainly be pleased once it’s signed,†she told AFP.

“But a significant amount of cybercrime globally comes from Russia, and it has never needed a treaty to tackle cybercrime from within its borders,†Brown added.

“This treaty can’t make up Russia’s lack of political will in that regard.â€


Lahore, Karachi among world’s most polluted cities as smog deepens over parts of Pakistan

Lahore, Karachi among world’s most polluted cities as smog deepens over parts of Pakistan
Updated 25 October 2025

Lahore, Karachi among world’s most polluted cities as smog deepens over parts of Pakistan

Lahore, Karachi among world’s most polluted cities as smog deepens over parts of Pakistan
  • Lahore, a city of around 14 million people, has been shrouded by toxic haze for days
  • Authorities warn weather conditions may lead to rise in smog levels in coming days

ISLAMABAD: Pakistani cities of Lahore and Karachi ranked among the world’s most polluted city on Saturday morning, according to Swiss monitoring group IQAir, as dense smog blanketed the capital of the Punjab province and surrounding areas.

Lahore ranked the second most polluted city in the world with an air quality index of (AQI) of 191, categorized as unhealthy, at around 2:30pm on Saturday. Karachi, in the country’s south, ranked 11 worldwide, with an AQI of 119.

The development comes a day after the Punjab Provincial Disaster Management Authority (PDMA) warned of a rise in smog levels in major cities in the coming days, citing stable and dry weather conditions.

“The rise in smog levels may trigger an increase in respiratory illnesses, asthma cases, and other pollution-related health problems,†the authority said.

“Vulnerable populations, including children, the elderly, and people with pre-existing health conditions, are at high risk.â€

Calm wind pattern, lower temperatures and humidity may prevent pollutants from dispersing and causing thick layers of smog in Lahore, Gujranwala, Sheikhupura, Kasur, Nankana Sahib, Faisalabad, Multan, Bahawalpur, Rahim Yar Khan, Bahawalnagar and Khanpur districts, according to the PDMA.

Lahore, a city of around 14 million people and the capital of Pakistan’s most populous Punjab province, has been shrouded by toxic haze for days, with authorities using anti-smog guns for the first time in an effort to reduce airborne pollutants.

Cold, heavy air traps pollutants, including vehicle emissions, industrial smoke and dust, from November to mid-December. The seasonal crisis is often exacerbated by crop residue burning and lasts until February.


In Islamabad, school meals program sees attendance surge, health gains among students

In Islamabad, school meals program sees attendance surge, health gains among students
Updated 25 October 2025

In Islamabad, school meals program sees attendance surge, health gains among students

In Islamabad, school meals program sees attendance surge, health gains among students
  • Pakistan has 26 million out-of-school children, with 2.14 million suffering from acute malnutrition
  • The free meal program caters to around 65,000 students from marginalized communities in Islamabad

ISLAMABAD: As the lunch bell rings, a wave of excitement sweeps across a bustling government-run primary school in the Pakistani capital of Islamabad as students walk out of classrooms under the supervision of their teachers.

For principal Shafia Khan, it has been one of the most rewarding sights of the day to see hundreds of children opening their lunchboxes, filled not just with hot, nutritious food but also with newfound “energy and hope.â€

The free meals are distributed as part of the government-backed Islamabad School Meals Program (ISMP), launched in May 2024, to combat malnutrition, improve academic performance and promote attendance among children from marginalized communities.

Over 200 schools benefitting from the program have since reported 99 percent attendance and 88 percent student retention rates, with increase in energy levels among students translating into better academic performance and more active participation in extracurricular activities.

“As we have more than 1200 students in our school, so each and every child gets this opportunity to take this food,†Khan told Arab News at her Islamabad Model School in Islamabad’s I-8 sector.

“Most of the students bring tiffin from their home, they take it to home as well. This food is not only creating a sense of sharing, caring among the students, but it is also very beneficial for their character building.â€

The ISMP, which functions under the Federal Directorate of Education (FDE), initially provided meals to 40 schools, according to Riffat Jabeen, the FDE director of academics and quality assurance.

Children having free meal at a school in Islamabad on October 23, 2025. (AN Photo)

The program has now been expanded to 210 schools in less than a year and currently, it provides meals to 65,000 primary school students.

Students are served healthy and nutritious meals from a weekly menu that includes chicken ‘biryani,’ chicken ‘haleem,’ chickpea rice, chicken, potato curry and ‘zarda’ (sweet rice).

“Meals are prepared in kitchens by 7am and delivered to classrooms by noon,†Jabeen said. “In addition to hot meals, the program includes health screenings such as BMI (body mass index) tracking and eye exams, reinforcing its holistic approach to student well-being.â€

“It’s actually a complete health program,†she added.

NOURISHING BODIES, SHARPENING MINDS

In Pakistan, around 2.14 million children suffer from acute malnutrition, according to the Integrated Food Security Phase Classification (IPC). Official figures suggest the country has more than 26 million out-of-school children.

The ISMP represents a vital step toward a more equitable education system, according to Jabeen. At just Rs70 ($0.25) per student a day, the program is not just feeding students, it’s fueling a generation with dignity, hope and the promise of lasting change.

“Initially, students [from the marginalized communities] would come to the school, leave the school because of poverty,†Jabeen said.

“Now the meal is being served and the parents who cannot afford two times meal a day, they are very happy with the initiative and they are sending the students to the school every day.â€

‘HAPPIER, MORE ACTIVE’ STUDENTS

Teachers say the results have been “striking,†with a visible change in student enthusiasm and discipline.

“Food is a basic necessity for us,†Salmi Noor, a teacher at the Islamabad Model School, told Arab News. “So, when the child gets the energy, they are able to play well and able to concentrate on whatever is being taught.â€

Children having free meal at a school in Islamabad's I-8 sector on October 25, 2025. (AN Photo)

Nazia Waseem, a 40-year-old mother from Dhok Kala Khan, drops her son, Jahanzaib, to the government school daily.

“My child often leaves home without breakfast, but thanks to the school meal, he never remains hungry. When he eats at school, I see a difference in his energy returns, and he’s full of life,†she said of her bright-eyed, 5-year-old son who is in kindergarten.

“He’s happier, more active, and looks forward to going to school every single day. As a mother, that brings me so much relief and joy.â€
 


Pakistan PM extends condolences to Thai royal family over passing of Queen Mother Sirikit

Pakistan PM extends condolences to Thai royal family over passing of Queen Mother Sirikit
Updated 25 October 2025

Pakistan PM extends condolences to Thai royal family over passing of Queen Mother Sirikit

Pakistan PM extends condolences to Thai royal family over passing of Queen Mother Sirikit
  • Sirikit, who brought elegance to a postwar revival in the country’s monarchy and would occasionally wade into politics, died aged 93
  • PM Shehbaz Sharif says their thoughts and prayers are with His Majesty King Maha Vajiralongkorn, the Royal Family and the Thai people

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday extended his heartfelt condolences to the royal family and the people of Thailand over the passing of Queen Mother Sirikit.

Sirikit, who brought elegance to a postwar revival in the country’s monarchy and who, in later years, would occasionally wade into politics, died aged 93, the Thai Royal Household Bureau said on Saturday.

She had been out of the public eye since a stroke in 2012. The palace said she had been hospitalized since 2019 due to several illnesses and developed a bloodstream infection on October 17 before passing away late on Friday.

In his message on X, Sharif said he was deeply saddened at the passing of the beloved Queen Mother of Thailand.

“The people and Government of Pakistan join me in extending our deepest condolences to His Majesty King Maha Vajiralongkorn, the Royal Family, and the people of Thailand,†he said.

“Our thoughts and prayers are with them at this time of national grief.â€

The Thai government said public offices would fly flags at half-mast for a month and asked government officials to observe mourning for one year. Entertainment venues were asked to suspend activities for a month.

Thai PM Anutin Charnvirakul canceled trips to the ASEAN summit in Kuala Lumpur and the APEC summit in South Korea next week due to the Queen Mother’s death. He told reporters he would travel to Malaysia to sign a ceasefire agreement with Cambodia on Sunday but return to Thailand afterwards.