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Foreign shipping lines warn Pakistan of trade disruption over ‘ill-planned’ tax requirements

Foreign shipping lines warn Pakistan of trade disruption over ‘ill-planned’ tax requirements
A view of shipping containers at a warehouse yard near the port area in Karachi, Pakistan, on July 31, 2025. (REUTERS/File)
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Updated 23 September 2025

Foreign shipping lines warn Pakistan of trade disruption over ‘ill-planned’ tax requirements

Foreign shipping lines warn Pakistan of trade disruption over ‘ill-planned’ tax requirements
  • Association says officials compelling non-resident ship owners to register, obtain national tax number and take exposure to ‘unpredictable’ tax environment
  • Federal Board of Revenue says registering non-resident ship owners is a statutory requirement, aims to curb outflow of ‘illegal remittances’ from the country

KARACHI: Foreign shipping lines handling 90 percent of Pakistan’s seaborne trade have warned of a “total disruption” of the country’s imports and exports, citing “ill-planned” tax requirements that their agents say Pakistan’s Federal Board of Revenue (FBR) is trying to enforce.

In a letter written to Prime Minister Shehbaz Sharif dated Sept. 19, the Pakistan Ship’s Agents Association (PSAA) said FBR officials were compelling non-resident ship owners to register themselves on the national tax collector’s portal, obtain national tax number (NTN), file tax returns and take exposure to the country’s “unpredictable” tax environment.

Calling the move as “ill-planned”, the PSAA warned of an “impending crisis” that is likely to affect Pakistan’s entire seaborne trade.

“By arbitrary one-sided actions, FBR is creating extreme hardships for foreign flag vessels upon which Pakistan’s trade is entirely dependent,” PSAA chairman Mohammed A. Rajpar said in the letter addressed to the prime minister.

“You are requested to direct the concerned authorities to restore the previous system… rather than resorting to strong arm tactics which tantamount to threatening total disruption to Pakistan’s imports and exports.”

PSAA represents foreign shipping lines such as Maersk, China Ocean Shipping Company (COSCO), Mediterranean Shipping Company (MSC), CMA CGM and around 50 others.

The South Asian country depends on these shipping lines for the transportation of 90 percent of its seaborne trade, which amounted to $90.4 billion in the last fiscal year that ended in June, according to the Pakistan Bureau of Statistics (PBS). The remaining 10 percent cargoes, mostly comprising oil, are shipped by the state-run Pakistan National Shipping Corporation (PNSC).

Rajpar said all non-resident foreign shipping firms had their authorized representatives present in Pakistan and had been fulfilling and complying with all legal requirements as far as income tax was concerned.

“This move by FBR runs totally counter to the current government’s ease of doing business policies, particularly when dealing with foreign entities,” the PSAA chairman said.

REVENUE AUTHORITY REJECTS CLAIMS

The warning comes as Sharif’s government has joined hands with the International Monetary Fund (IMF) and bilateral partners like Ƶ, China and the United Arab Emirates (UAE) to revive Pakistan’s debt-ridden economy by increasing revenues.

The IMF’s $7 billion loan program, which Islamabad secured last year, requires the government to broaden the country’s narrow tax base and plug revenue leakages.

“The claim that FBR has introduced an unlawful requirement is misplaced,” Wasiq Mushtaq, a deputy commissioner at the FBR’s inland revenue service, told Arab News, citing relevant income tax law which “expressly requires every ship’s master to file voyage-wise freight returns in Pakistan.”

“The system is lawful, internationally consistent, and facilitates trade as process of ship’s assessment would be transparent and digitally handled thus more expedient rather than hindering it.”

He said registering non-resident ship owners was a statutory requirement and was being practiced globally, citing examples of India, Malaysia and Australia.

The non-enforcement of relevant law had resulted in the outflow of “illegal remittances” from the country, according to the FBR official. He did not specify a number for the said remittances.

It has “prima-facie resulted in huge revenue losses,” Mushtaq added.

POSSIBLE CONSEQUENCES

Syed Tahir Hussain, the PSAA secretary general, insisted that the tax requirements were causing difficulties for all foreign shipping lines, which might stop transporting shipments if the authorities did not address the issue.

“The shipping lines would either stop calling at Pakistani ports, while those already anchored at local ports would not be able to sail out for the want of clearance from income tax authorities,” Hussain warned.


Northwestern Pakistani province raises record $1.9 million from trophy hunting permits

Northwestern Pakistani province raises record $1.9 million from trophy hunting permits
Updated 6 sec ago

Northwestern Pakistani province raises record $1.9 million from trophy hunting permits

Northwestern Pakistani province raises record $1.9 million from trophy hunting permits
  • The trophy hunting program involves multiple hunts usually between November and April
  • Most funds raised from markhor, ibex and grey goral permits to be given to local population

PESHAWAR: Pakistan's northwestern Khyber Pakhtunkhwa (KP) province has raised $1.9 million in revenues from its 2025-26 Trophy Hunting Program, provincial authorities said on Tuesday, with majority of funds to be distributed among local populations.

The trophy hunting program helps authorities curb poaching and preserve rare species apart from creating livelihood opportunities for local populations by promoting eco-tourism in the northwestern Pakistani province.

The revenues include $946,000 from four exportable markhor permits, $553,300 from nine non-exportable markhor permits, $16,042 from 20 non-exportable ibex permits and $398,500 raised through six non-exportable grey goral permits.

Markhor, a wild goat with twisted horns, is Pakistan's national animal and found in the country's mountainous north. The trophy hunting season, which usually begins in Nov. and continues till Apr., involves multiple hunts.

"The trophy hunting program has emerged as a successful example of sustainable wildlife conservation in KP," the provincial wildlife department said in a statement.

"A major share of the revenue is distributed among local communities living near wildlife habitats so they can benefit directly from the program."

While trophy hunting is viewed worldwide as a controversial practice as it involves hunting rare animals, KP authorities say they have created strong incentives for the protection of species like the markhor by sharing a major share of revenues with local residents.

In 2024, the parks and wildlife department in Pakistan's Gilgit-Baltistan region auctioned trophy hunting permits for more than 100 endangered animals, with the Astore Markhor goat’s permit fetching the highest bid of $107,000.

 


Blast targets Jaffar Express train in Pakistan’s Balochistan, derails five coaches

Blast targets Jaffar Express train in Pakistan’s Balochistan, derails five coaches
Updated 23 September 2025

Blast targets Jaffar Express train in Pakistan’s Balochistan, derails five coaches

Blast targets Jaffar Express train in Pakistan’s Balochistan, derails five coaches
  • The is the second attack on Jaffar Express since Aug., while a hijacking in March killed dozens before military retook the passenger train
  • No group immediately claimed responsibility for Tuesday’s attack in Pakistan’s Balochistan, home to a decades-long separatist insurgency

QUETTA: An improvised explosive device (IED) blast on Tuesday derailed five coaches of Quetta-bound Jaffar Express train in Pakistan’s southwestern Balochistan province, officials and rescue workers said.

The latest bomb attack on the passenger train took place in Dasht area of Balochistan’s Mastung district, when it was heading to the provincial capital of Quetta from Peshawar in the country’s northwest.

Muhammad Kamran, an Edhi volunteer, told Arab News that two passengers received minor injuries in the incident, who were shifted to hospital. No group immediately claimed responsibility for the attack.

“Five coaches of Jaffar Express were derailed and one of them completely overturned after a powerful blast hit the train,” Imran Hayat, the Quetta divisional superintendent of Pakistan Railways, told Arab News.

“All passengers were evacuated and relief operation is continued along with the district administration.”

This is the fifth attack on passenger trains and railway track in Pakistan’s Balochistan since August.

On Aug. 10, a bomb attack targeted Jaffar Express and derailed five coaches near Quetta, while in March this year, fighters belonging to the separatist Balochistan Liberation Army (BLA) stormed the same train with hundreds of passengers on board and took them hostage. The military rescued them after an hours-long operation that left 33 militants, 23 soldiers, three railway staff and five passengers dead.

Balochistan, Pakistan’s southwestern province that borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces and foreigners, and kidnap government officials.

Pakistan Railways says it has beefed up security arrangements for passenger trains in the province and increased the number of paramilitary troops on Jaffar Express since the hijacking in March, but militants have continued to target buses and trains in the restive region.

Separatist groups operating in the region accuse the central government of stealing their resources to fund development elsewhere in the country. The Pakistani government denies the allegations and says it is working for the uplift of local communities in Balochistan.


Islamabad eyes stronger commerce links with Dhaka in pharma, auto and minerals

Islamabad eyes stronger commerce links with Dhaka in pharma, auto and minerals
Updated 23 September 2025

Islamabad eyes stronger commerce links with Dhaka in pharma, auto and minerals

Islamabad eyes stronger commerce links with Dhaka in pharma, auto and minerals
  • The development comes as Pakistan, Bangladesh move to reset ties scarred by the 1971 conflict but reshaped by shifting regional alliances
  • At a networking event in Dhaka, Pakistan PM’s aide on commerce vows to creating a conducive environment for businesses from both countries

ISLAMABAD: Pakistan is seeking to strengthen its commerce relations with Bangladesh in pharmaceuticals, automotive and mineral sectors, the Pakistani commerce ministry said on Tuesday, amid a thaw in bilateral ties between the two countries.

The development came after the Pakistan prime minister’s coordinator on commerce, Ihsaan Afzal Khan, attended a networking session between the Dhaka Chamber of Commerce and Industry (DCCI) and the Rawalpindi Chamber of Commerce and Industry (RCCI) in the Bangladeshi capital.

It follows a high-profile visit by Pakistani Deputy Prime Minister Ishaq Dar to Dhaka last month to reset Pakistan-Bangladesh relations, which were scarred by the bloody 1971 conflict but have been reshaped by shifting regional power balances in recent months.

During his meeting with DCCI President Taskeen Ahmed and others, Khan highlighted the uptick in commercial activity between Pakistan and Bangladesh, noting that business communities on both sides were increasingly exploring opportunities in pharmaceuticals, automotive and mineral sectors.

“Khan reaffirmed his commitment to creating a comprehensive and conducive environment for businesses from both countries,” the Pakistani commerce ministry said. “He stressed that enhanced cooperation between private sectors would unlock new avenues for bilateral trade and investment.”

During his visit to Dhaka, Dar met Chief Adviser Muhammad Yunus and apprised him of the key outcomes of his two-day visit, thanking for the “warm hospitality” extended to him and his delegation, according to the Pakistani foreign office.

Pakistan’s Commerce Minister Jam Kamal had also been in Dhaka around the same time, discussing trade and agricultural collaboration, while Pakistan’s foreign secretary Amna Baloch held in April the first bilateral consultations with Bangladesh in 15 years.

“The networking session [in Dhaka] was seen as an important step toward boosting business-to-business collaboration and deepening economic ties between Pakistan and Bangladesh,” the Pakistani commerce ministry said on Tuesday.


Hungary to provide 400 scholarships to Pakistanis under education cooperation — FO

Hungary to provide 400 scholarships to Pakistanis under education cooperation — FO
Updated 23 September 2025

Hungary to provide 400 scholarships to Pakistanis under education cooperation — FO

Hungary to provide 400 scholarships to Pakistanis under education cooperation — FO
  • Statement comes after Pakistani Deputy PM’s meeting with Hungarian FM at the UNGA
  • The two countries announced abolishing visas for diplomatic passport holders in April

ISLAMABAD: Hungary will grant 400 scholarships to Pakistani students under education cooperation between both countries, the Pakistani foreign office said on Tuesday.

The statement came after a meeting between Pakistan Deputy Prime Minister Ishaq Dar and Hungarian Foreign Minister Peter Szijjarto on the sidelines of the 80th United Nations General Assembly session in New York.

Both figures reaffirmed their commitment to further strengthening Pakistan-Hungary bilateral ties on the eve of 60th anniversary of the establishment of diplomatic relations, including by exploring new avenues of cooperation.

“DPM/FM thanked the Hungarian FM for the provision of 400 scholarships to Pakistani students,” the Pakistani foreign office said in a statement.

“The Hungarian FM expressed his government’s commitment to continue supporting education cooperation opportunities for Pakistani students in Hungary.”

During the meeting, both officials agreed to finalize abolition of visas for Pakistani diplomatic and official passport holders, mutual investments, civil aviation cooperation and initiation of direct flight operations between Pakistan and Hungary.

Dar told Szijjarto about the steps undertaken by the Pakistani government to facilitate Hungarian investments in Pakistan. The two leaders also discussed regional and international peace and security.

Szijjarto’s visit to Pakistan along with a business delegation in April saw the signing of the agreement to abolish visa requirements for diplomatic passport holders, along with two memorandums of understanding in the fields of culture and archaeology.

The visit came Islamabad’s push to attract investment from European countries in its priority sectors to achieve sustainable growth after pursuing multiple agreements with regional allies, including Gulf countries.


Islamabad urges ASEAN members to invest in Pakistan’s special economic zones under CPEC

Islamabad urges ASEAN members to invest in Pakistan’s special economic zones under CPEC
Updated 23 September 2025

Islamabad urges ASEAN members to invest in Pakistan’s special economic zones under CPEC

Islamabad urges ASEAN members to invest in Pakistan’s special economic zones under CPEC
  • Founded in 1967, Association of Southeast Asian Nations represents one of the world’s fastest-growing markets
  • Commerce minister urges ASEAN members to export to Pakistan, add value here and then re-export their products

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan on Tuesday invited Association of Southeast Asian Nations (ASEAN) member states to invest in Pakistan’s special economic zones under the China-Pakistan Economic Corridor (CPEC), amid Islamabad’s attempts to achieve economic stability.

Founded in 1967, ASEAN represents one of the world’s fastest-growing markets. Pakistan became a sectoral dialogue partner of ASEAN in 1993 and is seeking to upgrade to full dialogue partner status, despite the current moratorium on new partners.

Commerce Minister Khan on Tuesday hosted envoys of Indonesia, Malaysia, Philippines, Thailand, Brunei Darussalam, Vietnam and Myanmar in Islamabad, where he reaffirmed Pakistan’s commitment to expand trade, investment and people-to-people links with Southeast Asia.

He urged Southeast Asian firms to invest in Pakistan’s special economic zones, citing improved macroeconomic stability, single-digit inflation and a conducive business climate, according to the commerce ministry.

“Pakistan welcomes you to export to Pakistan, add value here, and then re-export your products,” Khan told ASEAN envoys, calling for stronger multilateral trade links.

CPEC, part of President Xi Jinping’s ambitious Belt and Road Initiative, is a $65 billion network of roads, railways, pipelines and ports in Pakistan that aims to build land and maritime trade routes linking Asia with Africa and Europe via the Arabian Sea.

Pakistan, currently bolstered by a $7 billion International Monetary Fund (IMF) program, is making rigorous efforts to establish itself as a pivotal trade and transit by leveraging its strategic geographical position.

“Pakistan seeks not only to increase bilateral trade but also to build comprehensive, long-term partnerships in technology, skills, and infrastructure,” Khan told the envoys.

“Through technology transfer, value addition in agriculture, and a skilled human resource base, we can take our trade from the current level to its true potential.”

The ASEAN envoys welcomed Pakistan’s outreach and said the region sees a “great potential” in expanding commercial cooperation, according to the commerce ministry.

“Meeting marked a renewed push by Pakistan to anchor itself more firmly in the ASEAN economic landscape, with both sides agreeing to chart a roadmap for increasing trade, investment, and institutional cooperation in the months ahead,” it said.