1. Cash Purchase Penalty in Pakistan’s New Finance Bill
Pakistan’s upcoming 2025 Finance Bill is set to introduce discouraging penalties on cash transactions. According to sources, petrol prices may increase by up to Rs. 3 for cash buyers, and a 2% additional tax could be imposed on cash sales made by manufacturers and importers. The Federal Board of Revenue (FBR) aims to promote digital payments, including QR codes, debit/credit cards, and mobile wallets, especially at petrol pumps.
While restaurants already enjoy tax exemptions on digital payments, there's no proposed tax relief for other sectors like jewelers, wedding halls, doctors, and lawyers. Surprisingly, there are no suggestions to include these professions under the tax net either.
2. Tax Burden Shift & IMF Negotiations
The government is considering increasing the tax rate by 2% on profits earned from deposits in banks and savings schemes, which could negatively impact pensioners and low-income savers. According to Mehtab Haider’s report in "The News," the International Monetary Fund (IMF) has asked for detailed justifications to cover the losses caused by offering relief to salaried individuals and other sectors.
A top official revealed that the IMF has yet to give final approval to these proposals. Former FBR Member Dr. Mohammad Iqbal warned that such tax hikes could severely affect people relying on fixed-income sources.
More rounds of negotiations between Pakistan and the IMF are expected within the week. Government sources state that a final framework for expected tax revenues from various sectors is being prepared.
3. Pakistan Responds to Indian Hostility
In another development, Pakistan strongly condemned recent provocative statements from Indian leadership. Islamabad stressed that India's narrative prioritizes hostility over peace. The Foreign Office reiterated that Pakistan desires peace but remains resolute in defending its sovereignty.
Officials also highlighted evidence of Indian involvement in cross-border terrorism. According to Pakistan, lasting peace in South Asia requires addressing the core issue of Jammu and Kashmir.
4. Pakistani Delegation Heads to the UN
To counter India's allegations and raise awareness about water aggression and civilian deaths caused by Indian actions, a nine-member Pakistani delegation led by Bilawal Bhutto Zardari will meet with UN representatives in New York. The delegation will also hold talks with ambassadors from China, Russia, and the OIC to present Pakistan’s stance.
Notable names in the delegation include Hina Rabbani Khar, Sherry Rehman, Khurram Dastgir, Faisal Sabzwari, and others.
5. Modi May Skip G7 Summit 2025
For the first time in six years, Indian Prime Minister Narendra Modi is unlikely to attend the upcoming G7 summit hosted by Canada from June 15-17. Indian media reports suggest that Modi hasn’t received an official invitation, and even if invited, may decline due to strained Canada-India relations, especially concerning the Khalistan movement.
G7 officials have not confirmed whether Modi will be formally invited.
6. Ukraine’s Massive Drone Strike on Russia
In a bold operation named Spider Web, Ukraine launched 117 drones targeting Russian strategic bomber bases deep within Russian territory. The Ukrainian security agency claims damages amounting to over $7 billion, affecting aircraft and infrastructure across five regions.
Russian authorities acknowledged the attacks and confirmed multiple aircraft were set on fire. Some individuals linked to the drone operation were arrested.
7. Israeli Strikes Continue in Gaza
The humanitarian crisis in Gaza has deepened as Israeli forces carried out yet another attack, this time targeting aid seekers at a distribution center in Rafah. Three Palestinians were martyred and 35 injured. A day prior, 31 others were killed during a similar incident.
Humanitarian organizations have condemned the attacks, emphasizing that aid distribution is becoming impossible. Videos of malnourished children have emerged online, highlighting the dire need for unrestricted access to food supplies.
Saudi Foreign Minister Faisal bin Farhan criticized Israel’s denial of permission for Arab foreign ministers to visit Ramallah, calling it an act of extremism and arrogance.
Final Thoughts
From domestic tax reforms to international conflicts, Pakistan stands at a critical juncture both economically and diplomatically. As global alliances shift and financial negotiations continue, the nation’s leadership faces the complex challenge of balancing relief for its citizens with commitments to international partners like the IMF.
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