Nice ( Imran Y. CHOUDHRY):- Pakistan has called for ambitious global action to protect oceans for the future generations.

Ambassador of Pakistan to France, Madam Mumtaz Zahra Baloch gave the statement at the Third United Nations Ocean Conference being held in Nice, France.

In her statement, the Ambassador highlighted Pakistan’s efforts to address the challenge of degradation of marine resources and ecosystems. She emphasized the importance of international collaboration underlining that isolated national efforts alone would not suffice to conserve and sustainably use the marine and coastal resources.

Ambassador Mumtaz Zahra Baloch called for finding global solutions to protect the oceans through scaled up means of implementation, such as financing, technology transfer, and capacity building. She also expressed the centrality of the principle of Common But Differentiated Responsibilities and Respective Capabilities in combating climate change. She expressed Pakistan’s intention to become a signatory of the BBNJ Agreement.

The Ambassador expressed Pakistan’s concern at the grave implications for the ecosystem of the Arabian Sea because of the unilateral measures taken by one country in the neighborhood, in disrupting long-standing cooperative water-sharing agreement and arrangements. She urged the international community to condemn these attempts to weaponize water, and call for upholding international law and treaty obligations.

• Next year’s revenue target set at Rs14.13tr
• Provinces’ contribution helps Centre outperform fiscal target, record lowest budget deficit in a decade
• Subsidy allocations have been reduced by 14pc
• Reduced debt servicing drives expenditure containment of nearly Rs2.26tr
• Generous tax relief, incentives for construction sector
• Fuel levy, electricity surcharges to rise next year
• Tough crackdown planned on non-filers, tax evaders
• Development spending squeezed to cut deficit

ISLAMABAD: Maintaining an aggressive stance on fiscal consolidation, as required by the Int­ernational Monetary Fund (IMF), Finance Minister Muhammad Aurangzeb on Tuesday still managed to offer some notional relief to the salaried class in the federal budget for fiscal year 2025-26, along with incentives for the real estate and construction sectors, in an effort to revive the struggling industrial sector and stimulate economic growth.

At the same time, however, the government announced it was imposing a ‘carbon levy’ of Rs2.5 per litre on petrol, diesel and furnace oil in the upcoming fiscal year, to be doubled the following year. It also introduced a 5 per cent tax on large pensions, an 18pc tax on imported solar panels, and an increase in the debt servicing surcharge on electricity to finance not only interest payments, but also principal debt. Additionally, it announced the gradual elimination of tax exemptions for the tribal areas beginning this year.

Ambitious targets

Despite a record tax shortfall of Rs1.07 trillion recorded for the current fiscal year, the finance minister set next year’s revenue target at Rs14.13tr — an 18.7pc increase from this year’s revised estimate of Rs11.9tr, against the original budget target of Rs12.97tr. This would include approximately Rs840 billion in additional revenue measures, on top of a Rs1.39tr automatic tax increase supported by projected inflation of 7.5pc and economic growth of 4.2pc and expenditure containment of nearly Rs2.26tr (equivalent to 2pc of GDP), driven primarily by reduced debt servicing costs, and also at the expense of development and public welfare initiatives.

Not only the Federal Board of Revenue (FBR), but the provincial governments, too, were unable to meet their commitment of maintaining a Rs1.22tr surplus for the current year. Still, they provided vital support to the federal government with a surplus of Rs1.01tr.

This contribution enabled the federal government to outperform its fiscal target and record a budget deficit of just 5.6pc of GDP (Rs6.44tr) — the lowest in a decade since FY2015-16 — compared to a higher projected deficit of 5.9pc (Rs7.28tr). This notable fiscal tightening was achieved through punishing additional taxation measures amounting to Rs2.2tr (1.8pc of GDP) alongside a reduction in expenditure as interest rates declined from a historic peak of 22pc.

Accordingly, the FY2025–26 budget sets an ambitious target to reduce the budget deficit to 3.9pc of GDP (Rs5.04tr), contingent upon a cash surplus of Rs1.46tr from the provinces. As a result, the primary budget surplus is projected to rise to 2.4pc of GDP, or Rs3.17tr, for the next year — up from this year’s 2.2pc of GDP (Rs2.5tr).

Relief for select groups

The government found sufficient fiscal space to offer some relief to the salaried class, who have been burdened by high tax rates, declining real incomes, and severe inflation over the past two years.

The finance minister proposed a reduction in income tax by half, to 2.5pc, on annual income between Rs600,000 and Rs1.2 million. It is pertinent to mention that there was a discrepancy in the income tax rate for the lowest taxable bracket announced by the finance minister and the tax rate mentioned in the finance bill, which was even lower at 1pc.

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Clarity is awaited on this matter. Similarly, the annual tax on a salary of Rs1.2m was proposed to be reduced to Rs6,000, down from the current Rs30,000. Mr Aurangzeb added that the income tax rate for those earning up to Rs2.2m per annum would be cut to 11pc, down from the current 15pc. Similarly, the tax rate has been reduced to 23pc from 25pc for salaried income between Rs2.2m and Rs3.2m. In addition, the finance minister acknowledged that oppressive tax rates were driving highly skilled professionals to migrate, contributing to a “brain drain”. As a corrective measure, he announced a 1pc reduction in the surcharge on annual incomes exceeding Rs10m.

Apart from this, a 10pc increase in salaries and 7pc rise in pensions was announced for government employees. The salaries of armed forces personnel would also be increased by 25pc, including a special relief allowance in recognition of their recent heroic performance in response to Indian aggression, the finance minister said.

At the same time, the government introduced a generous tax relief and incentives for the construction sector, including access to cheaper mortgage financing, in a bid to revive large-scale manufacturing, which has been contracting for the past three years due to unprecedented increases in energy and borrowing costs. To this end, the finance minister announced a reduction in the withholding tax on the purchase of real estate from 4pc to 2.5pc. The next two current withholding tax rates of 3.5pc and 3pc will also be reduced to 2pc and 1.5pc respectively.

Additionally, a 7pc federal excise duty imposed last year on the transfer of commercial properties, plots and houses has also been proposed to be abolished.

As a new initiative, the budget includes a tax credit on mortgages for homes of up to 10 marla (250 square yards) and flats of up to 2,000 square feet. This is in addition to a new scheme aimed at promoting mortgage financing. The finance minister also announced a reduction in stamp duty on property purchases in Islamabad Capital Territory, from 4pc to 1pc, and expressed hope that provincial governments would follow suit by reducing heavy taxation on immovable property.

The government also succeeded in persuading the IMF to exempt fertilisers and insecticides from taxation for the current year, in an effort to position agriculture as the engine of economic growth.

Tightening the net

On the other hand, the finance minister announced an increase in the tax rate on interest income from 15pc to 20pc, a move that may discourage savings. However, he clarified that this would not apply to small savers or investments in national saving schemes.

Similarly, digital marketplaces and online businesses are to be brought into the tax net through courier companies, it was announced. The minister also announced a 5pc income tax on pensions exceeding Rs10m per annum for pensioners under the age of 70. In a move to promote a cashless economy, non-filers will now be subject to a 1pc advance tax on cash withdrawals, up from the existing 0.6pc. Taxpaying businesses will be discouraged from making cash sales exceeding Rs200,000. Additional measures have also been introduced to encourage online transactions and digital payments.

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Strict steps will be taken against non-filers. Only taxpayers who submit their wealth statements will be allowed to undertake large financial transactions, such as the purchase of vehicles, immovable properties, securities, mutual funds, or the opening of certain bank accounts.

Tightening the noose around unregistered traders, the finance minister proposed the freezing of bank accounts, restrictions on property transfers, and the sealing of business premises in cases of serious violations of sales tax laws, with the involvement of trade bodies. In the same vein, he also announced a notional 0.5pc reduction in the super tax for corporate firms with annual incomes between Rs200m and Rs500m.

Improved tax collection

The finance minister noted a rise in the tax-to-GDP ratio, which has historically been one of the weakest aspects of Pakistan’s economy, from 8.8pc in June 2024 to 10.3pc in the first nine months of the current year. This figure is projected to reach 10.4pc by June 30, 2025. Including non-tax revenue, the federal tax-to-GDP ratio has improved to 11.6pc, representing an increase of 1.2 percentage points, up from 0.8 percentage points last year. The consolidated tax-to-GDP ratio, the finance minister added, has reached 12.3pc, including a 0.7pc contribution from the provinces. “The 1.6pc of GDP increase in FBR revenue is not only the highest in Pakistan’s history, but is also rarely seen anywhere else in the world in recent times,” the minister boasted.

Balancing the budget

The government has set the non-tax revenue target for the next year at Rs5.15tr, slightly higher than the current year’s Rs4.9tr. This brings the total gross federal revenue (FBR plus non-tax) to Rs19.28tr, up from the current year’s original budget target of Rs17.8tr, which was later revised down to Rs16.8tr. After transferring Rs8.2tr to the provinces, the net federal revenue is estimated to be Rs11.07tr for the next year, compared to Rs9.8tr this year. This leaves a projected federal deficit of Rs6.5tr, a reduction from the current year’s budgeted Rs8.5tr, which was later revised to Rs7.44tr.

Subsidy allocations have been reduced by 14pc to Rs1.19tr for the next year, down from Rs1.38tr in the current year. This is primarily due to a 13pc (Rs154bn) cut in power sector subsidies. The tariff differential subsidy for ex-Wapda distribution companies has been reduced by 9.7pc (Rs27bn) to Rs249bn, from Rs276bn this year. Meanwhile, the tariff subsidy for K-Electric has been cut by 28pc (Rs49bn), to Rs125bn from Rs174bn. An even larger reduction has been applied to the tariff subsidy for Azad Jammu and Kashmir, which has been reduced to Rs74bn from Rs108bn, reflecting a cut of 31.5pc.

The major non-tax revenue item is expected to be the petroleum levy on POL products, projected at Rs1.47tr, which is a 26pc increase from the current year’s Rs1.16tr. An even larger contribution is anticipated from State Bank of Pakistan profits, estimated at Rs2.4tr for the next year, though this marks a slight decline from Rs2.6tr this year.

The debt servicing cost for next year has been estimated at Rs8.2tr, representing an 8pc decline from actual repayments of Rs8.95tr, and 16pc lower than the original budget estimate of Rs9.78tr. Pension expenditure is expected to rise by around 4pc, reaching Rs1.06tr, up from Rs1.01tr this year. Military pensions are projected to grow by 12pc to Rs742bn, compared to a 10pc increase in civil pensions, which are expected to reach Rs243bn.

As a result, total current expenditure has been set at Rs16.29tr for the next year, slightly below this year’s figure of Rs16.39tr.

Published in Dawn, June 11th, 2025

Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : In international relations, genuine friendships are tested not during moments of comfort, but amid adversity. Prime Minister Shehbaz Sharif’s recent visit to Istanbul to meet President Recep Tayyip Erdoğan was not merely ceremonial—it was deeply symbolic and strategically significant. It came in the wake of the four-day military confrontation between India and Pakistan (May 5–10, 2025), during which Turkey stood firmly by Pakistan’s side. In doing so, Turkey did not just display diplomatic courtesy, but reaffirmed a timeless and resilient brotherhood.
Sharif’s meeting with Erdogan was marked by warmth and fraternity. A photo he posted on social media—walking hand-in-hand with Erdogan—went viral as a powerful image of solidarity. “Had the honour of meeting my dear brother President Recep Tayyip Erdogan in Istanbul this evening,” Sharif wrote on X. “Thanked him for his resolute support to Pakistan in the recent Pakistan-India standoff which resulted in Pakistan’s overwhelming victory, Alhamdolillah! Conveyed the sentiments of gratitude from the people of Pakistan to their Turkish brothers and sisters.”
Turkey’s support for Pakistan extended beyond verbal endorsements. Reports suggest that Turkish-manufactured drones played a tactical role in the conflict, helping Pakistan gain an upper hand. Ankara’s vocal alignment with Islamabad, despite its formal ties with India, marked a bold geopolitical stance that came with repercussions.
India, a global economic heavyweight, responded swiftly. Calls for boycotting Turkish goods began trending across Indian media. Prime Minister Modi urged citizens to prefer domestic travel over international destinations such as Turkey. More consequentially, the Indian Bureau of Civil Aviation Security revoked the operating clearance of Turkish ground-handling firm Celebi, which serviced major Indian airports including Delhi, Mumbai, and Bengaluru. These measures reflect growing diplomatic strain and an increasingly adversarial posture from New Delhi toward Ankara.
Yet, Erdogan stood his ground. In a response to Sharif’s message, he reiterated, “We reaffirmed and strengthened our determination to enhance the deep-rooted historical, human, and political relations between Türkiye and Pakistan in all areas. May our Lord make our unity, togetherness, and brotherhood everlasting…”
Turkey’s consistent alignment with Pakistan is not new. From the Kashmir issue to global Islamic causes like Palestine and Gaza, Ankara has persistently echoed Pakistan’s voice. This enduring partnership has transcended changing governments, strategic calculations, or economic dependencies.
During Pakistan’s power crisis when Turkish floating power plants provided electricity to Karachi. Similarly, during natural disasters and political isolation, Turkey has always extended its hand. This is not transactional diplomacy—it is principled alignment born of shared faith, common causes, and historical memory.
The emotional bond stretches back to the Khilafat Movement in the early 20th century, when Indian Muslims rallied to save the Ottoman Caliphate. Though the movement eventually faded, Turks never forgot the solidarity of South Asian Muslims—a memory that remains alive in the hearts of both nations.
Sharif’s visit also reinforced the institutional mechanisms that underpin this friendship. The High-Level Strategic Cooperation Council (HLSCC), co-chaired by both leaders, held its seventh session earlier this year in Islamabad, underscoring the continuity of engagement. Their recent discussions covered trade, defense, tourism, education, and media collaboration—areas ripe with potential.
Currently, the Preferential Trade Agreement (PTA) between Pakistan and Turkey, signed in 2022, grants tariff concessions to various products. In 2023, bilateral trade reached $602.9 million—with Pakistan exporting $352.1 million and importing $250.8 million worth of goods. However, this figure represents a fraction of the potential that exists.
According to economic analysts, bilateral trade between Pakistan and Turkey can conservatively grow to $5 billion over the next five years if both sides implement the proposed Free Trade Agreement (FTA), ease non-tariff barriers, and create export facilitation zones. Pakistan’s textile, leather, and sports goods can find major Turkish markets, while Turkey’s automotive parts, construction materials, and advanced defense equipment can fill key gaps in Pakistan’s industrial ecosystem.
Investment potential is equally significant. Turkish companies have already shown interest in Pakistan’s energy, construction, food processing, and logistics sectors. If Pakistan offers dedicated Turkish Special Economic Zones (SEZs) and ensures policy continuity, foreign direct investment from Turkey could increase from the current $200 million to over $1 billion by 2030. Joint ventures in shipbuilding, cement production, and tourism infrastructure are also under discussion.
Turkey’s transformation under Erdogan—from a turbulent parliamentary system to a relatively stable presidential model—also offers instructive lessons for Pakistan. Turkey has successfully redefined its civil-military relations, with its armed forces now playing a stabilizing, rather than interventionist, role.
In contrast, Pakistan’s political ecosystem has been mired in cyclical instability. A strong, transparent, and accountable governance model—similar to Turkey’s balance between democratic authority and institutional support—could serve as a framework for reform and progress in Islamabad.
The people-to-people connection between Pakistan and Turkey is one of the strongest elements of this bilateral relationship. Turkish television dramas have become a staple in Pakistani households, with Diriliş: Ertuğrul enjoying a cult following. Similarly, Pakistani dramas—famous for their emotional depth—are gaining traction in Turkey. During the visit, Sharif proposed formal cooperation in media content exchange, film production, and cultural diplomacy that echoes shared values and aesthetics.
During the formal bilateral meetings, the leaders explored new horizons in educational exchange, tourism development, and counterterrorism. Erdogan emphasized the value of cooperation in intelligence, technology, and internal security. Turkey’s advanced UAV and cybersecurity infrastructure could benefit Pakistan’s national security framework, particularly in border management and urban counterterrorism.
Educational collaboration, including scholarships, student exchanges, and faculty training programs, was also discussed. Erdogan offered assistance in developing Pakistan’s tourism sector, drawing from Turkey’s world-class experience in heritage conservation and hospitality.
Tourism potential between the two countries is largely untapped. In 2024, less than 50,000 Pakistanis visited Turkey, and fewer than 10,000 Turks visited Pakistan. With targeted initiatives and improved flight connectivity, this number can increase tenfold over the next decade—bringing not just revenue, but also cultural enrichment.
The friendship between Pakistan and Turkey is not based on shifting interests or short-term gains. It is a profound relationship shaped by Islamic brotherhood, cultural closeness, and historical solidarity. It has translated into multifaceted cooperation in trade, investment, defense, education, and humanitarian causes—and it continues to evolve.
As Pakistan reflects with gratitude on this enduring support, it looks forward with optimism to a future of even stronger ties—a future where the Pakistan-Turkey partnership becomes a model of strategic brotherhood for the world to emulate. The visit of Prime Minister Shehbaz Sharif to Ankara was not just an act of appreciation—it was a reaffirmation of a shared vision: to build a just, prosperous, and peaceful world, side by side.