NIAS Area Studies
PAKISTAN READER
Photo : The Express Tribune
In Focus
Imran Khan guilty of “criminal conspiracy and abetment” in 9 May violence, rules LHC
On 3 July, The Express Tribune reported on the “detailed” verdict issued by the Lahore High Court regarding PTI Supremo Imran Khan’s involvement in the 9 May 2023 violence. The basis of the LHC’s verdict was the statements provided by two witnesses. The witnesses are two police personnel. As per the witnesses, Imran Khan clearly ordered the PTI leaders to “attack military installations, state institutions, and police officers” in the event of his detention. Further, the witnesses claimed that Imran Khan had ordered his supporters that “no one will go home until I am released.” According to the LHC, Imran Khan’s actions breached “Sections 120-B and 121-A of the Pakistan Penal Code.”
On 9 May 2023, violence had engulfed the country after Imran Khan’s arrest. PTI members had attacked “civil and military installations” in protest. Subsequently, the military had attempted to bring the demonstrators under the ambit of the “Army Act.” In December 2024, a military court found 25 people guilty. In January, 19 of the accused were given relief from the punishment. (Rana Yasif, “Imran involved in May 9 conspiracy, rules LHC,” The Express Tribune, 3 July 2025)
PM Sharif lands in Azerbaijan for the ECO summit
On 3 July, PM Shehbaz Sharif landed in Shusha, Azerbaijan. He is visiting Azerbaijan to take part in the 17th summit of the Economic Cooperation Organization (ECO). The delegation led by the PM includes Deputy PM and Foreign Minister Ishaq Dar, Information Minister Attaullah Tarar, and Special Assistant to the PM, Tariq Fatemi. The ECO summit, which is scheduled from 3-4 July, will take place in Khankendi, Azerbaijan. As per the Foreign Office, the PM will elaborate on Pakistan’s stance on “key regional and global challenges,” and reiterate the country's resolve towards the “ECO Vision 2025.” He is also likely to urge for increasing “intra-regional trade, transport connectivity, cooperation and sustainable development.”
On 4 July, an editorial in The Nation titled “ECO Summit,” highlighted the importance of the summit amidst increasing risks of climate change. The editorial highlighted how Pakistan has been regularly witnessing “deadly monsoons,” severe “heatwaves, and toxic winters.” As per the editorial, Pakistan has been paying the price for not taking enough measures to counter climate calamities. The editorial also pointed out how abrupt weather conditions have been taking a toll on the country’s infrastructure. Further, the editorial highlighted other repercussions of “climate inaction” such as an increase in crop failure and worsening air quality. The editorial argued that climate change is an international issue and calls on all the member countries to “act decisively.” Further, it demanded that the leaders move beyond the idea of prioritizing “national interest” in combating climate change.
References:
Syed Irfan Raza, “PM in Azerbaijan to attend ECO summit,” Dawn, 4 July 2025
“ECO Summit,” The Nation, 4 July 2025
SC’s ruling on reserved seats case: Opposition needs 20 seats to topple the KP government
On 4 July, The News International reported that opposition parties in Khyber Pakhtunkhwa need 20 more seats to gain a majority in the assembly. Currently, the party in power in KP, the PTI, has 92 seats. The Opposition alliance has 53 seats. The number of opposition seats increased after the SC ruled on the reserved seats case. Overall, the provincial assembly has 145 seats, out of which 30 seats fall in the category of reserved seats. For gaining a majority in the assembly, 73 seats are required. After SC's ruling, JUI-F’s seats in the provincial assembly increased from seven to 19. PML-N’s seats in the provincial assembly increased from six to 15, whereas PPP’s seats increased to 11 from four.
On 2 June, after the SC ruled on reserved cases, KP CM Ali Amin Gandapur “ confronted the federal government, daring it to overthrow the PTI government in the province via “constitutional means.” He said “if you succeed, I will quit politics.” He asserted that the current KP government possesses “full and legitimate constitutional mandate” from the KP voters and it can’t be changed unless “unconstitutional means” are employed. According to him, his government could be overthrown only by enforcing “Governor’s rule” or by compelling the PTI members to defect from the party. He added, “but you don’t have the muscle to do this.”
On 4 July, an editorial in Dawn titled “Restraint needed,” argued that the PTI leadership understands the risk of the KP government being toppled by the federal government by exploiting loopholes in law, which is why the disgruntled PTI leaders have come together to showcase their unity. The editorial pointed out how, within the ruling coalition, leaders have taken contrasting stances. KP governor Faisal Karim Kundi has claimed that PM Sharif has asked him to orchestrate a “regime change campaign” in KP. On the other hand, Senator Irfan Siddiqui dismissed the possibility of throwing KP “into a crisis.” The editorial strongly advocated against the toppling of the PTI government in KP, as it had received overwhelming support from the public in the provincial elections. The editorial also highlighted how any “engineered” move to overthrow the elected government can further result into “destabilization” of the province.
References:
Abubakar Saddiq, “53-strong opposition just 20 seats away from simple majority in KP,” The News International, 4 July 2025
“CM Gandapur challenges to topple PTI’s KP govt legally,” The Nation, 3 July 2025
“Restraint needed,” Dawn, 4 July 2025
In Brief
POLITICS
Mahmood Khan Achakzai proposes formation of unity government
On 3 July, The News International reported that Chairman of the Pashtunkhwa Milli Awami Party (PkMAP), Mahmood Khan Achakzai, wishes to engage in talks with Prime Minister Shehbaz Sharif to form a unity government. Achakzai, who is also the head of Tehreek-e-Tahafuz Ayeen (TTAP), stated that Pakistan is facing a “constitutional crisis, institutional corruption, and political victimisation.” He also condemned the “undermining of democratic values” and the arbitrary arrest of elected representatives from the parliament premises. Achakzai criticised the role of the Election Commission of Pakistan (ECP) and the judiciary, claiming manipulation against the Pakistan Tehreek-e-Insaf (PTI) in the 2024 general elections. Referring to SC’s verdict, which had declared PTI ineligible for reserved seats for women and minorities, Achakzai said political parties have “begged for seats” instead of upholding democratic principles. Additionally, he stated that “we may have differences with [Imran Khan], but the treatment meted out to his party is unjust,” highlighting that PTI parliamentarians were left waiting outside Adiala jail without being allowed to meet Imran Khan. (Haider Sherazi, “Achakzai proposes unity govt to deal with challenges,” The News International, 3 July 2025)
JUDICIARY
Peshawar High Court-mandated inquiry committee reveals departmental negligence in Swat tragedy
On 3 July, the Peshawar High Court (PHC) ordered the swift dismantling of encroachments along riverbanks, demanded an elaborate report from the chairman of the inquiry committee constituted to look into the Swat River tragedy On the same day, The Express Tribune reported on the report by the Malakand commissioner into the tragic incident in the Swat River had been submitted to the Provincial Inspection Team. The incident occurred last week when flash floods were triggered in the Swat River and nearby streams due to heavy monsoon rains, claiming multiple lives. The report details the circumstances surrounding the event, including the sequence of events. The report noted that on 24 June, Section 144 was imposed to prohibit swimming and boating in the Swat River. Preliminary findings of the report indicate that construction work along the river had diverted the water flow, which resulted in lower water levels at the accident site. This reduction in the water level led the tourists to enter the river. However, these tourists were unaware of the potential dangers. In light of the tragedy, on 28 June, Khyber-Pakhtunkhwa’s chief secretary visited the site and imposed a complete ban on all mining activities.
A two-member bench comprising Chief Justice SM Attique Shah and Justice Faheem Wali heard the case. Chief Justice Shah questioned the status of the inquiry and instructed the inquiry committee chairman to provide detailed information about the probe. The chairman of the inquiry committee informed the court that the committee team had completed the survey of the site and would finish the report and submit it within seven days. Further, he stated that initial findings have revealed “serious negligence on the part of various government departments.” The petitioners' counsel argued that immediate rescue efforts could have been undertaken but were not. The court directed the commissioner and RPO of Malakand Division to submit a “comprehensive report on the safety measures in place for tourists in the region.” (Ehtesham Khan, “Construction along Swat River diverted water flow, leading tourists into danger: report,” The Express Tribune, 3 July 2025; “Initial probe into Swat tragedy shows depts’ negligence, PHC told,” The News International, 4 July 2025)
ECONOMY
PM Sharif advocates for a transition to a cashless economy
On 3 July 2025, The Express Tribune reported that Prime Minister Shehbaz Sharif has called for the rapid implementation of a nationwide digital transaction system, stating that it was critical to improve transparency and modernize Pakistan’s economy. PM Sharif emphasised the need to facilitate a digital payments interface between citizens and businesses, and to promote public awareness of digital platforms. The prime minister was informed that the State Bank of Pakistan (SBP) is preparing a “streamlined digital payment strategy” to onboard more merchants and expand mobile adoption. He directed three committees: the Digital Payments Innovation and Adoption Committee, the Digital Public Infrastructure Committee, and the Government Payments Committee, “to collaborate closely with stakeholders and submit actionable recommendations.” Targets comprise increasing the number of merchants using QR codes from 0.9 million to 2 million and mobile app users from 95 million to 120 million. The total volume of digital payments is projected to grow from PKR 7.5 billion to PKR 12 billion. PM Sharif instructed that these targets should be doubled to accelerate coverage. (“PM pushes for cashless economy to boost transparency,” The Express Tribune, 3 July 2025)
Business leaders threaten of strikes against ‘draconian’ tax law
On 4 July 2025, Dawn reported that the Karachi Chamber of Commerce and Industry (KCCI) expressed its “full support” to conduct a complete countrywide strike if all chambers unanimously oppose Sections 37A and 37B of the Sales Tax Act, terming them “draconian” and “detrimental” to the business environment. KCCI President Jawed Bilwani said that the chamber, along with all seven industrial associations, would lend support to “any unified strike call against these provisions,” warning that protests will intensify until the government repeals Sections 37A and 37B in its entirety. He also criticised the sweeping arrest powers granted to Federal Board of Revenue (FBR) officials under these provisions, stating that these laws weaken Pakistan’s reputation as a “business-friendly destination,” highlighting that the law “unfairly” targets compliant taxpayers rather than resolving the root cause of tax evasion. He advocated for the government to prosecute those outside the tax net rather than burdening the already documented segment. Additionally, he pointed out the FBR’s poor enforcement record, arguing that most court verdicts in such cases decide in favour of taxpayers, with only a small fraction deciding in favour of tax authorities. Businessmen Group Chairman, Zubair Motiwala, also cautioned that granting such sweeping arrest powers to FBR officials would result in continuous harassment and rampant corruption, coercing taxpayers to submit to their demands for personal gain. (“Business leaders warn of strike over ‘draconian’ tax law,” Dawn, 4 July 2025)
Salaried class paid PKR 555 billion in income tax in FY24
On 4 July 2025, The Express Tribune reported that salaried individuals have paid PKR 555 billion in income tax in the last fiscal year, collecting PKR 188 billion more than the preceding year, in which the government had collected PKR 367 billion. In the last fiscal, total income tax payments amounted to PKR 5.8 trillion, and the salaried class paid PKR 1 out of every PKR 10 collected from the entire country under the head of income tax. This has significantly reduced the take-home salaries of a larger segment of Pakistan’s society. Last month, the federal government marginally reduced the tax burden of the people earning up to PKR 3.2 million annually, which it claimed would provide them with a benefit of PKR 56 billion. However, in light of current contributions, this nominal benefit of PKR 56 billion would fail to address the financial strain of salaried individuals. Despite imposing an enormous tax burden on the salaried class, the Federal Board of Revenue (FBR) failed to adhere to its annual collection target by a margin of approximately PKR 1.2 trillion. The federal government has failed to collect due taxes from the retailers, and the government has not announced any additional measures in this year’s budget to bring retailers within the tax net. Its enforcement measure to ban economic transactions by ineligible persons has become ineffective after the government exempted more than 90 per cent transactions from the purview of the new law.
An editorial in The News International titled ‘Squeezing the salaried’ expressed dissatisfaction regarding the disproportionate tax burden on the salaried class, which “paid a historic PKR 545 billion in income tax” in the previous fiscal year, making them the highest contributor among all sectors on account of direct taxes. The editorial asserted that the contribution of the salaried to national revenues is more than twice as high compared to the contribution of exporters and retailers. The editorial highlighted that these figures did not take into account the impact of indirect taxes like the GST, petrol levy, and gas and power tariffs. Further, the editorial criticised the government’s objective of expanding the tax net, terming it a “total mockery.” The editorial claimed that the Tajir Dost scheme has failed to yield desired outcomes, not particularly due to a lack of effort, but because of ineffective enforcement of punitive measures.
The editorial argued that punitive measures need to be strengthened to prosecute those who are non-compliant, while acknowledging that the gap between the income tax contribution of retailers and exporters, and salaried individuals is extremely wide, such that it cannot be bridged in a short period. The editorial speculated that the salaried class will continue to carry the tax burden. The editorial also stated that what is unfolding is a “classic case of path dependency,” i.e., it is much easier for the state machinery to keep doing what it has been doing for the longest, which in this case means continuing to disproportionately tax the salaried. The editorial pointed out that this is not just a “question of economic fairness and justice but also of growth and efficiency,” and the skilled professionals of Pakistan are central to the country's growth agenda. The editorial concluded by advocating for course correction, stating that the salaried class and the tax burden on them must not be ignored any longer. (Shahbaz Rana, “Salaried class paid Rs555b in FY24,” The Express Tribune, 4 July 2025; “Squeezing the salaried,” The News International, 4 July 2025)
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- An opinion in Dawn, 'No education' |