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ISLAMABAD: Pakistan’s Council of Islamic Ideology (CII) on Wednesday declared that withholding tax on cash transfer and withdrawal is an “excess,” declaring it as “un-Islamic.”

Withholding tax (WHT) is an advance payment of tax deducted at the time of economic activities specified under certain sections of Pakistan’s Income Tax Ordinance, 2001 and Sales Tax Act, 1990.

WHT on cash withdrawal or transfer is a tax that the bank automatically deducts on behalf of a customer when they withdraw money or transfer funds from their account. This tax is then deposited with the government on the person’s behalf.

“The council declared the withholding tax imposed on cash withdrawal or transfer to be an excess and therefore un-Islamic,” the CII said in a press release following its 243rd meeting. 

The CII is a Pakistani constitutional body that advises the government on whether laws are compatible with Islam or not. The CII meeting was chaired by the body’s head, Dr. Muhammad Raghib Hussain Naeemi and other members of the council.

Other matters were also discussed during the meeting, such as the permissibility of the use of insulin containing pig-derived ingredients by diabetic patients. 

“The council resolved that when insulin prepared with permissible (halal) ingredients is available, the use of insulin containing pig-derived ingredients should be avoided,” the press release said. 

The council also considered a request from the religion ministry and agreed that a ringtone instructing citizens to respect banners, flags and buntings bearing sacred words and inscriptions during the Islamic month of Rabi Al-Awwal, will be prepared. 

ISLAMABAD: Pakistan’s health minister on Wednesday set a bold $30 billion pharmaceutical export target over the next five years, vowing full government support for the sector at the 8th Pakistan Pharma Summit and 4th Pharma Export Summit & Awards (PESA 2025) in Islamabad.

The pledge comes as Pakistan’s pharmaceutical industry posts strong growth, with exports rising by 35% in the past year to nearly $500 million, according to the Pakistan Pharmaceutical Manufacturers Association (PPMA). 

The sector, which already produces more than 90 percent of the country’s medicines domestically, is now looking to expand into new markets such as Afghanistan and scale up to global standards through digitization, technology transfer, and regulatory reform.

“Although this is a challenging target, it is achievable with commitment and hard work,” Minister for National Health Services Syed Mustafa Kamal told the summit. “Let’s move forward and work round the clock to meet this target.”

He said Pakistan should aim higher given that some countries earn more than $300 billion from pharma exports. 

“The current figure of $475 million is a step forward, but not something to be satisfied with. We must think bigger,” Kamal said.

The minister said the government was removing bureaucratic hurdles by accelerating approvals and embracing digitization. 

“What used to take months or years to approve is now being cleared within weeks,” he said. 

Kamal also announced plans to upgrade Basic Health Units in Karachi and Islamabad with telemedicine facilities to deliver healthcare and medicines directly to communities.

On vaccines, the minister noted that Pakistan still imports 95 percent of its supply, mostly from neighboring countries, and urged industry to localize production. 

“There is dire and urgent need to develop indigenous capabilities for vaccine production. The pharmaceutical industry must step up to this challenge,” he said.

Industry leaders echoed the call for self-reliance and global competitiveness. 

PPMA Chairman Tauqeer ul Haq said exports could reach $500 million annually to Afghanistan alone but warned that 90 percent of raw materials are imported. 

He called for an independent trade body, PharmEx, to resolve industry challenges and boost exports. 

“Previously, we faced significant hurdles in export processes. Now, export registrations are being granted within a week, which is a major step forward,” he said, praising reforms by the Drug Regulatory Authority of Pakistan (DRAP).

Former PPMA chairman Dr. Sheikh Kaiser Waheed said the $30 billion target was realistic if backed by government reforms. 

“While we already produce more than 90 percent of the country’s medicines domestically, the true test ahead is to compete globally on innovation, quality, and trust — not price alone,” he said.

DRAP CEO Dr. Obaidullah said the regulator was modernizing to align with international standards, noting: 

“Despite various challenges, the pharma industry in Pakistan is continuously growing and its exports witness an upward trend with each passing year.”