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KARACHI: Pakistan’s defense minister said on Saturday he believes Afghanistan wants peace but that failure to reach an agreement during talks in Istanbul would mean “open war,” days after both sides agreed to a ceasefire following deadly border clashes.

The talks in Istanbul, which began on Saturday and are expected to continue into Sunday, mark the latest attempt by Pakistan and Afghanistan to prevent a relapse into violence after the worst border fighting since the Taliban’s 2021 takeover of Kabul.

The talks are meant to devise a mechanism to enforce the Doha ceasefire longer term.

Khawaja Muhammad Asif said there had been no incidents in the four to five days since it was agreed, and both sides were complying with the truce.

“We have the option, if no agreement takes place, we have an open war with them,” he said in televised remarks from Pakistan. “But I saw that they want peace.”

The clashes erupted earlier this month after Islamabad demanded that the Taliban curb militants it says are attacking Pakistan from sanctuaries inside Afghanistan.

Pakistan launched airstrikes across the border and both sides exchanged heavy fire, killing dozens and prompting the closure of key crossings that remain shut.

Islamabad accuses Kabul of sheltering militants who target Pakistani forces.

The Taliban reject the charge and says Pakistan’s military operations violate Afghan sovereignty.

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.”

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.”