Pakistan’s tax deficit climbs I Militants kill three police personnel in Khyber Pakhtunkhwa
In Focus
Military Drills, Rallies, Slogans and Media Claims: Pakistan increases anti-India rhetoric
On 1 May, Dawn reported that despite attempts at diplomacy, tensions between India and Pakistan in the aftermath of the Pahalgam terror attack remain unabated. Dawn reported that “top Army officers” from both sides have met amid escalation and fear of direct confrontation. It also quoted the Associated Press of Pakistan which claimed that Pakistan had responded adequately to “India’s unprovoked ceasefire violation along the Line of Control (LoC)” resulting in the destruction of the Chakputra check post in Jammu and Kashmir. Further, it also quoted state media which reported that Pakistan had delivered a “timely and swift response” to patrolling by four Indian Rafales over Kashmir, forcing them to “retreat.” Amidst these developments, Pakistan has also closed its airspace over Gilgit-Baltistan, including cancelling domestic flights to Gilgit and Skardu.
On the same day, The Express Tribune reported that in a press briefing at the Foreign Office, Foreign Minister and Deputy Prime Minister Ishaq Dar emphasized that Pakistan will not initiate any attack against India and warned that if the latter does so, Pakistan will respond in a “befitting” manner. He said this in the presence of Director General Inter-Services Public Relations (DG ISPR) Lt General Ahmed Sharif Chaudhry who reiterated that Pakistan was not seeking “escalation” but nevertheless mull its response if India resorted to a “military route.”
On the same day, The News International reported that the Pakistan Army is conducting “live drills” using “modern weapons” to demonstrate its readiness for any impending attack by the enemy. The Army has also emphasized its resolve to “give a full and crushing response to any aggression by the enemy.” The Express Tribune also confirmed that the Army was conducting “full-scale military exercises” near the Line of Control (LOC) to demonstrate “combat readiness and modern weaponry” amidst rising tensions and exchange of fire on the LOC “after late-night aggression on April 29-30.”
Additionally, Advisor to Prime Minister Shehbaz Sharif, Rana Sanaullah, in a programme on Geo News, cautioned India would “suffer losses if it attempts to advance.” Further, Minister for Planning and Development, Ahsan Iqbal, in a statement to Geo News at a diplomatic reception in Dubai, said that Pakistan will “pressure India” to uphold the commitments under the Indus Water Treaty by using “diplomatic channels” and engaging with “friendly nations.”
Separately, The News reported that Permanent Representative of Pakistan to the UN Ambassador Asim Iftikhar has addressed the OIC Group of Ambassadors and intimated them over the situation in the subcontinent. He accused India of behaving in a “politically motivated, irresponsible and highly provocative” manner that threatens “regional peace and stability.” In response, the OIC members promised their “full support and solidarity” with the Pakistani government and its people.
Anti-India rally in Balochistan by Hindus
On 30 May, according to Dawn, a rally was organized in Quetta by a Hindu named Sanjay Kumar, who is a PPP “minority member” of the Balochistan Assembly, over India’s allegations against Pakistan after the Pahalgam terror attack. Demonstrators were allegedly witnessed carrying and chanting “anti-India and anti-Modi” slogans. Addressing the demonstrators, Sanjay Kumar said “The Hindu community in Pakistan stands united with the country’s armed forces. If India dares commit aggression, over 10 million Hindus in Pakistan will stand behind our military.” The demonstrators also criticized India’s suspension of the Indus Water Treaty.
US’s intervention
The United States has finally diplomatically intervened in the matter urging both India and Pakistan to “de-escalate tensions, re-establish direct communications, and maintain peace and security in South Asia.” In a call with PM Sharif, US Secretary of State Marco Rubio underscored the need to condemn the terror attack in Pahalgam. He urged Pakistan to cooperate with the investigation into the attack. In response, PM Sharif reiterated his call for a “transparent, credible, and neutral investigation” and requested the US to ensure that India “dials down the rhetoric and acts responsibly.” In a separate call with Indian External Affairs Minister Subrahmanyam Jaishankar, Rubio urged India to cooperate with Pakistan to “de-escalate tensions and maintain peace and security in South Asia.”
Communication with European Countries and Oman
Foreign Minister Ishaq Dar has also been in touch with leaders from European Union countries communicating Pakistan’s willingness to participate in a “transparent investigation.” Reportedly, Dar spoke with Spanish Foreign Minister José Manuel Albares and Oman’s Foreign Minister Sayyid Badr bin Hamad bin Hamood Al Busaidi and apprised them of “regional developments,” particularly India’s unilateral suspension of the Indus Water Treaty and its “propaganda” against Pakistan.
References
Syed Irfan Raza & Mohammad Asghar, “Diplomatic channels work overtime amid threat of ‘Indian adventurism’,” Dawn, 1 May 2025
Saleem Shahid, “Hindus in Quetta protest Indian accusations over Pahalgam attack,” Dawn, 1 May 2025
“Pakistan, India standoff: Live updates on escalating tensions,” The News International, 1 May 2025
Kamran Yousaf, “Message to India: Any attack won't go unpunished,” The Express Tribune, 1 May 2025
“US steps in to ease tension amid India's unabated sabre-rattling,” The Express Tribune, 1 May 2025
“Pakistan conducts military exercises near LoC,” The Express Tribune, 1 May 2025
In Brief
ECONOMY
President Zardari terms labor community “driving force” of the economy
On 1 May, which is observed worldwide as “labour day,” President Zardari pledged to ensure “fair wages, safe working conditions and social protection” for the Pakistani labor community. Expressing gratitude for the labor community, he said that “our working men and women have played an important role in the development of the country.” As per President Zardari, Pakistani “laborers and working classes are the driving force of our economy and national development.” He appealed to the “employers, trade unions, civil society and public sector” to collaborate for formulating a fair working “environment” which caters to the elevation of the labor community. As per Senate Chairman Yusuf Raza Gilani, the worker community formed the “backbone” of any county. He stressed on how for moving towards “sustainable development,” it is important that the worker community have “social economic and legal protection.”
On the same day, an editorial in Dawn titled “Labour rights” discussed the poor condition of Pakistani laborers. The editorial mentioned how in 2024, PM Sharif and President Zardari had reaffirmed the government's resolve to enhance and protect the rights of the labor community. As per the editorial, those pledges have not been translated into actions. The editorial highlighted how most of the Pakistani laborers are required to work for close to 16 hours/day. The laborers in Pakistan also remain devoid of “overtime” wages. The editorial pointed out how successive governments over the years have been misusing the Pakistan Essential Service Act 1952 to forbid “union activities.” One such example which the editorial provided is of the Pakistan International Airlines. As per the editorial, the government views laborers as “burden.” Further, the editorial noted how most of the laborers are not paid the current “minimum wage” because of delay in execution of policies. The editorial appealed to the government to make sure that the “dignity” of the worker community is unharmed. As per the editorial, this can be achieved by ensuring good wages, “safe” working environment and providing “health” insurance to laborers and their family members. (Bakhtawar Mian, “President promises fair wages, safe working conditions for labourers,” Dawn, 1 May 2025; “Labour rights,” Dawn, 1 May 2025)
Pakistan’s tax deficit climbs to PKR 83300 crores between July 2024 to April 2025
On 1 May, The Express Tribune reported that the tax deficit between July 2024 and April 2025 has gone up to PKR 83300 crores. The deficit has gone up in spite of the federal government enforcing record high numbers of “additional” levies. The head of the Federal Bureau of Revenue, Rashid Langrial cautioned that the upcoming budget would be “challenging.” The deficit has surpassed the “limit” decided by the International Monetary Fund by more than PKR 19,000 crores. In April, the IMF had realized that yearly tax collection of PKR 12.97 trillion was unachievable and thereby amended it. In April, the federal government “added” another PKR 139 billion in tax deficit which violates the pledge given to the IMF about the deficit not surpassing PKR 640 billion. Up until April, FBR has gathered PKR 9.3 trillion, thereby the deficit amounting to PKR 83300 crores. This deficit was incurred despite a surge in tax collection from “salaried class” by 56 per cent in comparison to the previous year.
On the same day, the leading chambers of commerce and industry have appealed to the Senate Standing Committee on Finance and Revenue for repealing of “anti-export levies and Special Tax Regime” for the former FATA region in the yet to come budget. As per the members of the commerce, the “special tax regime and anti-export” duties have stagnated the growth in the economy. They have appealed to the members of national assemblies for devising pro-business “policies.” The President of Karachi Chamber of Commerce and Industry, Jawed Bilwani highlighted how there has been an unusual surge in the imports of tea in comparison to the “population” for the former FATA region. He further pointed out how the import tariffs are very less for “raw materials of plastic industries” which is why the owners of the industries are keener upon importing. Further, he demanded that the federal government should consider about increasing benefits to the “export sector.” He stated that how there has been trafficking of 40 per cent and 60 per cent of motorcycle and automobile parts respectively into the country because of extravagant import tariffs.
On 1 May, an editorial in Dawn titled “Tax proposals” discussed the demands raised by the Chamber of Commerce and Industry to lower the import tariffs. The Chamber of Commerce and Industry has voiced its distress over the invariably high taxes. The editorial mentioned that the “trade body” has appealed to the government for bringing down the “corporate tax rate” to 25 per cent in the coming five years and revoke “super tax” in the next three years. As per the editorial, the body has also demanded that the starting point at which an earning is liable for taxes must be increased by two times. The editorial opineed that it is not a tedious task to reduce the taxes, however, one has to keep in mind that Pakistan falls in the category of countries which have one of the least “tax to GDP ratio.” The editorial suggested that before the government decides to reduce taxes, it must work towards enhancing the “tax base,” boosting the “compliance” rate and clamping down on tax evaders. The editorial called the current tax norms as “opaque, unpredictable and inequitable.” The editorial claimed that the tax norms discourage “investment” and do not aid in the expansion of businesses.
(Shahbaz Rana, “FBR misses target by Rs833b,” The Express Tribune, 1 May 2025; Mubarak Zeb Khan, “Chambers call for ending anti-export levies in next budget,” Dawn, 1 May 2025; “Tax proposals,” Dawn, 1 May 2025 )
MEDIA
Amendments to PECA negatively impacted freedom of media in Pakistan, highlights Freedom Network report
On 1 May, Dawn reported on the findings brought forward by the Freedom Network in their yearly Freedom of Expression and Media Freedom Report- 2025. As per the report, the media of Pakistan is under “existential threat.” The threat posed to the freedom of media in Pakistan was aggravated by the “amendments” in Prevention of Electronic Crimes Act (PECA). The amendments which were introduced in January 2025 empower the concerned authorities to “arrest, fine and imprison” critiques of the government. As per one of the contributors of the report, if crackdown on media professionals continues, Pakistanis would find it difficult to find “information” that they “need to know.” Among the provinces, Khyber Pakhtunkhwa ranked right at the top when it came to how “dangerous” the situation was in the “province” for media professionals. KP recorded 22 cases against media professionals which were followed by Islamabad that saw 20 cases against media professionals. Punjab stood at third with 18 cases recorded against media professionals. Balochistan reported four cases whereas there was one case reported against journalists in Pakistan Occupied Kashmir. As per the report, some of the reasons why the media is under “existential threat” in Pakistan were increase in “censorship,” attacks against media professionals and the increasing difficulties for the women journalists to exist. (Ikram Junaidi, “Pakistan’s media faces existential threat: Freedom Network,” Dawn, 1 May 2025)
SECURITY
Militants kill three police personnel in Khyber Pakhtunkhwa
On 30 April, in a skirmish took place between counter-terrorism (CTD) police personnel and militants in Bannu, Khyber Pakhtunkhwa. The skirmish resulted in three police personnel losing their lives while two others were wounded. The CTD personnel managed to neutralize two militants and wounded another two. The police were also able to confiscate “weapons, ammunition, IEDs and hand grenades.” The Regional Police Officer, Sajjad Khan warning the militants said “we will soon avenge our martyred brother and engage the terrorists with an iron hand till the very end.” KP Governor Faisal Karim Kundi denounced the assault and sent out his “condolences” to the people who lost their loved ones. (Tahir Khan, Umar Bacha and Zahid Imdad, “3 CTD police personnel martyred, 2 injured in Bannu in exchange of fire with terrorists,” Dawn, 1 May 2025)
Current DG ISI Lt General Muhammad Asim Malik assumes the position of National Security Adviser
On 1 May, Dawn reported that Lt General Muhammad Asim Malik who is currently the Director General of Inter-Services Intelligence (ISI) has been additionally assumed position of National Security Adviser. He is expected to hold both the offices. Lt General Malik would be the first to hold both the positions simultaneously. The additional responsibility of holding the NSA office comes at a time when “tensions” with India have gone up after the terror attack in Pahalgam. The post of NSA remained empty after former NSA Moeed Yusuf resigned in 2022. NSA is one of the most crucial advisers to the PM on issues relating to “national security, foreign policy and strategic affairs.” (“In a first, ISI chief made national security adviser,” Dawn, 1 May 2025)
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Incompetent illegal regime! The tax shortfall has ballooned to a staggering Rs833 billion in the first 10 months of the fiscal year, despite the government imposing record additional taxes
- PTI
It is time for the international community to take action to condemn India and stop it from targeting people based on Islamophobia and religious hatred.
- Ishaq Dar
Javed Akhtar is wrong. It is not one traffic. Indian actors like Daleep Kumar were given state honours in Pakistan. He was given highest civil award of Pakistan.
- Hamid Mir
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"When judiciary is perceived to be under thumb of those it is supposed to check, its credibility, standing and integrity come into question."
- An opinion in Dawn, 'Judicial despondency.’
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