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Iran seeks greater control over Hormuz as Gulf states back fee plan
Iran has proposed to Oman a temporary arrangement to reopen the Strait of Hormuz under which one direction of traffic would pass through Iranian waters and part of the opposite route would also be in Iranian waters, Deputy Foreign Minister Kazem Gharibabadi told state television on Tuesday.

Gharibabadi said Tehran rejected an Omani proposal for an equal division of transit routes between the two countries, saying such a plan did not address Tehran’s security concerns until long-term regional stability is achieved.

He said the Strait of Hormuz would remain closed if Muscat rejected Iran’s proposal, adding that Tehran had never recognised the southern route along Oman’s coast.

Gharibabadi also said Tehran had made it clear to Muscat that it no longer recognised the Traffic Separation Scheme (TSS), arguing that this pathway roughly in the middle of the waterway lies mostly within Omani waters and runs contrary to Iran’s need to monitor transiting vessels after being attacked by the U.S. and Israel in late February.

The TSS, adopted by the International Maritime Organisation, is currently unusable due to the risk of mines and has been replaced with Iran’s northern route and Oman’s southern route.

 “This is for national security and not bullying because when the TSS was for 60 years in Omani waters, we didn’t say anything,” Gharibabadi said.

The Iranian diplomat also warned that Tehran would not allow any third country, even if invited by Oman, to de-mine the Strait of Hormuz.

Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat told Reuters on Tuesday.

Under the Omani proposal, Iran would not exercise sole control and fees would be voluntary, the Gulf source and Western diplomat briefed on the matter told Reuters.

Gulf Cooperation Council foreign ministers met via video call on Tuesday to discuss the latest developments in the conflict, including ways to intensify cooperation on issues related to freedom and safety of vessels through the waterway, a statement from the Qatari Foreign Ministry said.

Iran’s joint military command again rejected a plan put forward by Trump for damages to vessels to be paid from frozen Iranian assets, state media reported. It said that any country or company that accepted such payments would be denied passage through the Strait of Hormuz by Iran’s armed forces.

Late on Tuesday, the Houthis said they had fired ballistic missiles at a Saudi oil tanker, which they said was forced to turn back.

In an interview with Fox News on Tuesday ahead of a meeting with Israeli Prime Minister Benjamin Netanyahu in Washington, Trump said the US was in a strong position right now. He reiterated he was prepared to strike more Iranian targets, but said he would prefer to avoid doing so.

 “I think about 91 million people without power, without bridges, would have to live, and it’s a very, very delicate balance. So I think we have a very strong position right now, they know I’m going to do that if they don’t make a deal.”

Trump also repeated a threat to potentially target Iran’s Pickaxe Mountain, a fortified facility buried deep underground near one of Tehran’s main nuclear sites, saying: “If we don’t make a deal we’ll take it out very easily”.

Beijing has asked the Houthis directly to promise safe passage for its tankers, according to the sources, who included a senior Iranian official.

At least four tankers have loaded crude from Saudi ports bound for China and transited Bab el-Mandeb since the Houthis announced their restrictions, according to Kpler analysis and LSEG and MarineTraffic ship tracking data.

The number of vessels passing through Bab el-Mandeb rose to 28 on Monday, a four-day high, while traffic through the Strait of Hormuz remained low, according to Kpler shipping data, amid optimism about a potential resolution to the US-Iran conflict. Traffic was still below the month’s peak of 46 vessels recorded on July 14, the data showed.

Iran lost around 230 million cubic metres of its gas production capacity because of the war with the US and Israel, Iranian government spokesperson, Fatemeh Mohajerani, said in a televised news conference on Tuesday.

Brent crude futures extended Monday’s nearly 9% plunge, falling 1.87% to $86.71 a barrel, as a lull in hostilities between the U.S. and Iran followed Washington’s abrupt suspension of air strikes on Saturday.

The European Union has condemned an “aggression” this month by Iranian security services against two French diplomats in Tehran.

”The EU unequivocally condemns the aggression against two diplomats of the Embassy of France in Tehran perpetrated by Iranian security forces on July 19,” the EU’s foreign policy chief Kaja Kallas said in a statement.

At least 14 drone strikes have hit Iranian Kurdish rebels in Iraq’s Kurdistan region since Monday, an opposition commander said, blaming the attacks on Iran.

Israeli defence minister Israel Katz on Tuesday said that American warplanes used Israeli bases during their attacks on Iran, reiterating that his country was prepared to retaliate if targeted.

Saudi Arabia said on Tuesday that its air defenses intercepted and destroyed several drones that attempted to target oil facilities in the kingdom’s Eastern Province.

US President Donald Trump voiced irritation with Benjamin Netanyahu ahead of their White House meeting on Tuesday, complaining that details of the Israeli prime minister’s planned talking points on Iran had surfaced publicly, in a fresh sign of strain between the two leaders.

Asked about reports that Netanyahu wanted to talk to him about Pickaxe Mountain, a fortified facility buried deep underground near one of Iran’s main nuclear sites, Trump said, using Netanyahu’s nickname, “I don’t need Bibi to tell me that. Bibi’s telling me that because he wants me to stay involved.”

 “Why don’t you just tell it to me? Why do you have to announce it to the world?” Trump said in an interview with “Fox & Friends.”

In a video released on social media following the meeting, however, Netanyahu described the meeting as “excellent” and “one of the best conversations” he has had with Trump.

Meanwhile, Deputy Prime Minister/Foreign Minister Ishaq Dar on Tuesday received a telephone call from Deputy Prime Minister/Foreign Minister of Jordan Ayman Safadi, where the two leaders expressed grave concern over the worsening situation in Palestine, particularly the continued Israeli military actions in Gaza and the Occupied West Bank, including intensified air strikes, ongoing ground operations, and escalating settler violence.

During the interaction, the two leaders strongly condemned the repeated mass incursions into the Al-Aqsa Mosque compound in occupied East Jerusalem by Israeli settlers and far-right groups, as well as the restrictions imposed on Palestinian worshippers, stressing that such provocative actions violate the sanctity of the holy site, inflame tensions, and undermine prospects for peace.

Meanwhile, Minister of Foreign Affairs of the State of Kuwait, Sheikh Jarrah Jaber Al-Ahmad Al-Sabah on Tuesday arrived here on an official visit at the invitation of Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar.

During the visit, the two sides will hold talks covering the full spectrum of bilateral relations and exchange views on regional and international issues of mutual interest.

There are going to be no tolls and no fees for passage through the Strait of Hormuz in a coordination deal being discussed in relation to the waterway restricted by the Iran war, a US official said on Tuesday.

The US official said Iran was making unreasonable demands that were rejected by Oman and the United States.
https://e.thenews.pk/detail/?id=497806

 

Provinces demand 2.2MMT of wheat
Provinces have demanded over 2.2 million metric tonnes of wheat to arrest prices of wheat flour that soared up to Rs150 per kilogramme, as the Centre plans to import roughly 1 million metric tonnes of the commodity through the Trading Corporation of Pakistan (TCP).

The federal government has so far decided to import the commodity through the official channels – the TCP – which might prove expensive in terms of price and incidental charges compared to private sector imports.

Official wheat flour prices have already jumped on average by 74% to Rs129 per kilogramme as of last Friday compared to a year ago, according to the Pakistan Bureau of Statistics. The rates were as high as Rs150 per kilogramme in Peshawar, according to the office of the Rationing Controller of the provincial government.

According to a decision taken in the federal Wheat Board meeting, the provincial governments would provide back-to-back Letters of Credit (LCs) against the imports. In case of any shortfall in payments against the imported wheat, the federal government would deduct money from their shares in the National Finance Commission award.

These decisions were taken on Monday during the board meeting, which was presided over by the Federal Minister for National Food Security Rana Tanveer Hussain, with four provincial governments in attendance. The board reviewed the prevailing wheat supply situation and provincial requirements to ensure food security and market stability.

The officials said four provincial governments placed their final demands for the requirement of wheat during the board meeting to fill the supply gaps. The shortages were pushing prices high despite officially claimed production of 29.7 million metric tonnes of wheat and another 2 million tonnes of stocks.

The food ministry believes that total availability was still slightly higher than requirements, yet wheat and flour prices were constantly on the rise despite the announcement to import the commodity.

The officials said the government of Punjab placed a demand for one million metric tonnes of wheat, to be supplied either from stocks held by the Pakistan Agriculture Services and Storage Corporation (PASSCO) or by importing the commodity. Punjab produced nearly 22 million metric tonnes of wheat this year but badly failed to meet the 3 million metric tonnes procurement target, contributing to the national wheat management crisis.

The officials said Sindh demanded 720,000 metric tonnes of wheat, including 500,000 metric tonnes to be supplied through imports and the rest to be provided from PASSCO stocks available in the province. Likewise, Khyber-Pakhtunkhwa sought 200,000 metric tonnes of imported wheat and another 225,000 metric tonnes of local wheat. Balochistan demanded only 57,500 metric tonnes against stocks held by PASSCO.

The federal food ministry officials said that after finalising financing arrangements with the provinces and signing written agreements, a summary will be tabled before the Economic Coordination Committee of the Cabinet for the import of wheat through TCP.

However, the sources said the federal government has not yet decided to allow the private sector to import the commodity, which could prove more cost-effective compared to imports through official channels. During the wheat board meeting, a representative of the private sector asked the government to allow private sector import, but the board did not accept the request, said officials. The government stated that provincial requirements would be met only through TCP import.

The private sector also sought free movement of wheat across the country by relaxing inter-provincial restrictions to meet demand where there are shortages.

During the meeting it was transpired that due to the anticipated supply gap with available stocks at PASSCO and the need to stabilise the wheat market, there will be a need to import approximately one million metric tonnes of wheat, said the officials.

The provinces were again asked to submit their confirmed written requirements by Tuesday to finalise the import plan and determine the modalities before submitting the summary for ECC approval.

The wheat board decided that import would be made through transparent competitive bidding by TCP. Representatives of provinces will be requested to view the procurement process as well as become technical committees to ensure transparency in quality specifications and procurement procedures.

The imported wheat would be allocated among participating provinces proportionate to their confirmed requirements, along with their share of existing PASSCO wheat stocks, according to the decision.

The Punjab government representative reiterated the requirement for one million metric tonnes. Punjab had no objection whether this requirement was met through existing PASSCO stocks, imported wheat, or a combination of both. But the provincial representative stated that the Punjab cabinet would make a decision regarding the proposed import mechanism, including provincial participation in procurement, back-to-back LCs, recovery of payments through NFC deductions where applicable, and proportionate allocation of imported wheat with PASSCO stocks.

Sindh also informed that the provincial cabinet had approved import of 500,000 metric tonnes through TCP and procurement of 220,000 metric tonnes from PASSCO stocks.

It was decided that technical experts and nominated representatives of the provinces will be included in the technical committees engaged in procurement to ensure transparency and direct provincial participation throughout the import process. The quality specifications of imported wheat shall be finalised by the respective provincial governments.

The landed cost of imported wheat, based on the agreed quality specifications, would also be borne by the respective provincial government. Wheat allocations to each province will comprise its proportionate share of both imported wheat and available PASSCO wheat stocks, as determined by the federal government, according to the decision.

 

Govt hikes petrol, diesel prices despite expectations of relief
The government has raised the prices of both petrol and high-speed diesel, dashing widespread expectations of cheaper petroleum products amid a sharp decline in international crude oil prices.

According to a notification issued by the Petroleum Division on Tuesday, the ex-depot price of high-speed diesel (HSD) has been increased by Rs1.55 per litre to Rs388.38 from Rs386.83, while petrol prices have gone up by Rs1.63 per litre to Rs335.81 from Rs334.18.

The revised prices will take effect for July 29, 2026, under the federal government’s revised petroleum pricing mechanism, the notification said.

The decision is likely to raise questions among consumers and transporters, who had been anticipating a reduction in domestic fuel prices following the recent decline in international crude oil prices.

 

PM directs increase in strategic petroleum reserves
Prime Minister Shehbaz Sharif has directed an increase in the country’s strategic reserves of petroleum products to bolster energy security and ensure uninterrupted supply in case of any disruption.

The directive came during a meeting of the Cabinet Committee on Energy (CCoE) on Tuesday, which the prime minister chaired and which approved the long-awaited amended Brownfield Refining Policy 2023, paving the way for refinery upgrade projects worth an estimated US$5-6 billion. The amended policy includes six new provisions, among them stability and parity clauses aimed at reassuring foreign investors expected to finance the refinery modernisation projects. However, refineries that failed to sign Upgrade Agreements with the Oil and Gas Regulatory Authority (Ogra) by the October 22, 2024 deadline will face financial penalties with retrospective effect.

The prime minister commended Petroleum Minister Ali Pervaiz Malik and his team for steering the amended Brownfield Refining Policy through the CCoE, describing the modernisation of Pakistan’s refining sector as a national priority for strengthening the country’s long-term energy security.

Shehbaz said upgrading existing oil refineries was essential to meet the country’s growing energy demand, reduce reliance on imported refined petroleum products and enable the production of cleaner Euro-V compliant fuels. He directed all relevant ministries and institutions to ensure timely implementation of the amended policy, warning that delays would not be tolerated.

He also instructed authorities to undertake reforms within Ogra to promote transparency, competition and investment in the energy sector. To attract foreign investment, he directed the Petroleum Division to organise investment roadshows in Qatar, Saudi Arabia and other Gulf countries to showcase opportunities under the amended Brownfield Refining Policy.

The CCoE was informed that the revised policy would facilitate the production of Euro-V gasoline and diesel, significantly reduce furnace oil output, improve environmental standards and strengthen Pakistan’s energy security. Officials also briefed the committee on the progress of refinery upgradation projects and ongoing reforms in the downstream petroleum sector.

Reacting to the approval, Attock Refinery Limited (ARL) Chief Executive Officer Adil Khattak welcomed the government’s decision, calling it a landmark step after more than six years of consultations, policy revisions and engagement among the government, refineries and independent financial and legal advisers.

Khattak said the approval of the amended policy would finally enable the country’s refineries to move ahead with much-needed modernisation projects involving investments of around US$5-6 billion.

Khattak, however, expressed disappointment that the amended policy unfortunately and unfairly penalises refineries such as ARL and National Refinery Limited (NRL), despite the fact that both companies had authorised the signing of their Upgrade Agreements before the October 22, 2024 deadline, initialed the agreements with Ogra and arranged the required bank guarantees.

Nevertheless, he welcomed the approval of the amended policy and looked forward to initiating the upgrade project without further delay, while also stating that they would approach the appropriate forum for redress of their grievance.

The 129-page summary approved by the CCoE mentions a comprehensive overhaul of Pakistan’s Brownfield Refinery Policy, offering existing refineries a fresh seven-year package of fiscal incentives in exchange for multi-billion-dollar investments to produce Euro-V compliant fuels while introducing an elaborate compliance, monitoring and enforcement regime through legally binding Upgrade Agreements with Ogra.

The amendments, which will supersede the Refining Policy 2023 after approval, are intended to modernise the country’s ageing refining sector by increasing the production of motor gasoline (MS) and high-speed diesel (HSD), significantly reducing furnace oil output, improving fuel quality and enhancing Pakistan’s energy security.

Under the newly approved policy, all existing refineries opting for upgradation, modernisation or expansion will become eligible for incentives provided they execute a legally binding Upgrade Agreement with Ogra within 90 days of notification of the amended policy.

Among the six new insertions approved by the CCoE are stability and parity provisions designed to provide confidence to international lenders and foreign investors financing refinery upgrade projects. The stability regime seeks to protect refiners against adverse changes in taxation, fiscal policies, environmental regulations, licencing requirements, foreign exchange regulations and other government actions that could negatively affect project economics or implementation timelines. The Upgrade Agreements will also include provisions dealing with political force majeure, prolonged force majeure, government-related delays and mutually agreed exit mechanisms.

The policy envisages significant changes in refinery configuration and product mix across the country’s five refineries.

Meanwhile, chairing a review meeting on Right-Sizing of the Federal Government and Enhancing Government Efficiency, Prime Minister Shehbaz Sharif observed that implementation of the policy had positively impacted the national economy. He directed authorities concerned that implementation of right-sizing measures be accelerated to further improve government performance.

Under the right-sizing initiative, the Utility Stores Corporation, Pakistan Public Works Department (Pak PWD) and Passco have already been closed, resulting in savings for the national exchequer, he said.

The prime minister instructed the Right-Sizing Committee to finalise its remaining recommendations within one month.

Also on Tuesday, the prime minister met a US Congressional delegation, comprising Rep Ryan Zinke and Rep Michael Baumgartener, at the PM House and felicitated the Congressmen and American people on the 250th anniversary of US Independence, and conveyed his warm regards and best wishes for President Donald Trump.

Deputy Prime Minister/Foreign Minister Ishaq Dar, Foreign Secretary Ambassador Amna Baloch and US Chargé d’Affaires Natalie Baker were also present on the occasion, a PM Office news release said.

During the meeting, the prime minister welcomed both US Congressmen to Pakistan and said that their visit was a welcome step towards building stronger Pakistan-US ties.

The two sides agreed to increase the number and frequency of visits by Congressional delegations to Pakistan as well as visits of parliamentary delegations to the US. The visiting Congressmen lauded Shehbaz for Pakistan’s leading role in regional peace efforts.

After the meeting, the prime minister hosted a reception in honour of the delegation of US corporate sector executives who are visiting Pakistan. The delegation includes representatives of diverse sectors, including IT and technology, energy, mining and manufacturing.

Meanwhile, the prime minister chaired a high-level meeting to review the ongoing monsoon rains and resulting flood situation across Pakistan, the PM Office Media Wing said in a press release. He directed all relevant authorities to remain on high alert and ensure timely response measures in the ongoing monsoon season, by maintaining close coordination.

He directed the National Disaster Management Authority (NDMA), Provincial Disaster Management Authorities (PDMAs) and provincial governments to maintain continuous coordination and remain fully prepared to deal with any emergency arising from the ongoing monsoon season.

The prime minister directed the NDMA to provide timely weather forecasts and updates on the monsoon situation to all the federal and provincial institutions. He further asked Minister for Planning Ahsan Iqbal to chair the Flood Committee’s meetings on a daily basis to review the evolving situation and finalise response strategies.

The meeting was apprised that a major spell of monsoon rains was expected over the next two days in Azad Jammu and Kashmir, Gilgit-Baltistan and southern Sindh. Another significant monsoon spell is forecast to affect the country from the second week of September.

According to the briefing, the current monsoon spell had so far claimed 110 lives, 360 people were injured, 796 houses were damaged, besides causing death of 376 livestock.

The meeting was also informed that 700 sites had been identified across the country to store rainwater during the monsoon season, enabling its use for agricultural purposes during the dry season.

Separately, the prime minister chaired a review meeting on the progress of the Prime Minister’s Apna Ghar Scheme and directed the relevant authorities to accelerate the pace of its implementation, the PM Office Media Wing said in a press release. He urged both public and private sector banks to maximise financing to ensure the success of the initiative. He also instructed officials to formulate a comprehensive strategy for both vertical and horizontal housing development models under the scheme.

During the meeting, officials briefed the prime minister on the progress made in financing under the Apna Ghar Scheme.

They informed him that banks had so far approved financing worth Rs204 billion, while Rs27 billion had already been disbursed.

Chairing yet another meeting to expand access to finance for the business community, particularly small and medium enterprises (SMEs), the prime minister directed banks to speed up lending to the sector, a Prime Minister’s Office news release said. He directed the relevant authorities to expedite SME loan access and approved a three-tier governance structure to double business financing by 2028.

Prime Minister Shehbaz Sharif directed that access to loans for the business community, especially small and medium-sized enterprises, be expedited without delay. He also announced that the bank extending the highest volume of credit to the business sector, particularly SMEs, would be given a special award every year.

To institutionalise the push for improved access to finance, the prime minister approved a three-tier governance structure.

 

Power sector circular debt rises to Rs1.67tr despite govt’s zero-growth claim
Pakistan’s power sector circular debt rose to Rs1.671 trillion by the end of fiscal year 2025-26, up from Rs1.614 trillion a year earlier, exposing a fresh setback to the government’s repeated claims that it would contain the debt and achieve zero growth by the end of FY26.

The increase came despite the government securing Rs1.275 trillion in financing from a consortium of 18 commercial banks last year and shifting the repayment burden onto electricity consumers through a Rs3.23 per unit debt service surcharge, which generates about Rs323 billion annually.

The government had used Rs683 billion of the bank financing to clear liabilities of the Power Holding Company (PHL) and another Rs592 billion to settle arrears owed to independent power producers (IPPs).

However, the Power Division attributed the latest increase in circular debt to a reduction in budgetary payments to the power sector, rather than an operational deterioration.

Although, the division did not release detailed circular debt data, its spokesperson said the debt had fallen from Rs2.393 trillion in FY2023-24 to Rs1.614 trillion in FY2024-25.

In the federal budget for FY2025-26, the government allocated Rs893 billion for the power sector but subsequently deducted Rs98 billion from the allocation. “Had the power sector received the full allocated budgetary payment, the circular debt would have further reduced to Rs1.577 trillion. Due to the budget deduction of Rs98 billion, the circular debt witnessed an increase of Rs61 billion during this fiscal year.”

The latest figures, however, highlight the continuing difficulty of containing the debt despite repeated government interventions, including expensive bank financing and additional charges imposed on consumers.

The Power Division pointed to progress in reducing distribution company losses, claiming losses fell from Rs591 billion in FY2023-24 to Rs397 billion in FY2024-25 and further to Rs326 billion in FY2025-26.

Over two years, it said, the losses of power distribution companies (Discos) had been reduced by Rs265 billion.
https://e.thenews.pk/detail/?id=497804

 

Pakistan clears restructuring plan for three Discos
Pakistan’s Privatisation Commission Board on Tuesday recommended approval of restructuring plans for three major power distribution companies, paving the way for the privatisation of Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company amid strong interest from domestic and international investors.

The board, chaired by Adviser to the Prime Minister on Privatisation Muhammad Ali, recommended that the Cabinet Committee on Privatisation (CCoP) approve the restructuring plans and schemes of arrangement for the first batch of Discos.

The plans, based on audited financial statements for the three companies through March 31, 2026, are aimed at maximising value for the government while creating commercially viable structures attractive to private-sector investors.

Under the proposed framework, the government will establish a special-purpose vehicle (SPV) to carve out selected assets and liabilities of the three Discos, facilitating their privatisation through a more efficient transaction structure.

The board was informed of strong interest from domestic and international investors in the first batch of Discos. The deadlines for submitting expressions of interest are August 7 for Fesco, August 21 for Gepco and September 7 for Iesco.

In a separate decision, the board constituted two transaction committees to oversee the outsourcing of Islamabad, Lahore and Karachi airports.The Asian Development Bank has already been appointed financial adviser for outsourcing Islamabad International Airport, while the process of appointing financial advisers for Lahore and Karachi airports is underway.

The board also approved RSM Avais Hyder Liaquat Nauman, Chartered Accountants, as auditors for privatisation transactions completed during the 2024-25 through 2026-27 financial years. The firm will conduct separate audits of each completed transaction.

BDO Ebrahim & Co, Chartered Accountants, will conduct the annual audit of the Privatisation Commission’s financial statements for the 2025-26 through 2027-28 financial years, following its earlier appointment through competitive bidding.airports is underway.

The board also approved RSM Avais Hyder Liaquat Nauman, Chartered Accountants, as auditors for privatisation transactions completed during the 2024-25 through 2026-27 financial years. The firm will conduct separate audits of each completed transaction.

BDO Ebrahim & Co, Chartered Accountants, will conduct the annual audit of the Privatisation Commission’s financial statements for the 2025-26 through 2027-28 financial years, following its earlier appointment through competitive bidding.

 

Erstwhile FATA/PATA: FBR asks banks to deduct WHT on transactions, specified payments
The Federal Board of Revenue (FBR) has directed all commercial banks to start deducting withholding taxes on financial transactions/ specified payments in the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) following the withdrawal of tax exemptions under the Finance Act, 2026.

In a letter issued to the chief executives of banks, the FBR’s Regional Tax Office (RTO) Peshawar stated that the Finance Act, 2026 has amended the Income Tax Ordinance, 2001, abolishing the tax exemptions previously available to the erstwhile FATA/ PATA. As a result, income arising in these areas is now taxable in accordance with the applicable provisions of the Ordinance.

The tax authority instructed banks to ensure deduction of withholding tax on profit on debt paid to residents of the erstwhile FATA/PATA under section 151, rent payments made to landlords of bank premises in these areas under section 155 and withholding tax deduction on salary payments under section 149 of the Income Tax Ordinance, 2001.

The FBR urged banks to implement the statutory changes across their branch networks and ensure full compliance with the amended tax regime, adding that its offices would provide any necessary clarification regarding the implementation of the new provisions.

Meanwhile, the FBR has formally notified local government offices in Ex-PATA that, following the Finance Act, 2026, the income tax exemptions have been withdrawn and withholding tax provisions under the Income Tax Ordinance, 2001 are now fully applicable.

Authorities have been directed to immediately begin deducting, depositing, and reporting withholding taxes.

The Office of the Inland Revenue Officer, Unit-03, Mardan Zone has been written to the Tehsil Municipal Officer (TMA), Samarbagh, Lower Dir on the implementation of Withholding Tax Provisions in ex-PATA.

The letter informs the TMA that an FTN (Free Tax Number) has been issued to TMA Samarbagh.

The FTN is to be used for the deduction, collection, deposit, and reporting of withholding taxes under the Income Tax Ordinance, 2001.

Under the Finance Act, 2026, the income tax exemptions previously available to former-PATA areas have been withdrawn.

Consequently, the withholding tax provisions now apply in Ex-PATA, and all withholding agents must deduct applicable withholding taxes; collect and deposit them into the government treasury and report the taxes in accordance with the law.

The TMA is directed to deposit all applicable withholding taxes using its allocated FTN, submit copies of the relevant Computerized Payment Receipts (CPRs) to the Inland Revenue Office, and comply immediately, Mardan Tax Office added.

 

Non-operational IPPs: Senate panel questions billions in capacity payments
The Senate Standing Committee on Cabinet Secretariat expressed serious concern over billions of rupees in capacity payments to non-operational Independent Power Producers (IPPs) and strongly criticized the National Electric Power Regulatory Authority (NEPRA) and IPPs for undermining the government’s solar energy policy.

The Committee also unanimously called for accountability, directed a comprehensive performance audit of NEPRA, and decided to refer the matter of the unauthorized increase in the salaries and allowances of its Chairman and members to the Public Accounts Committee (PAC) for detailed examination.

The Committee discussed issues relating to telecommunications regulation, NEPRA’s salaries and performance, circular debt, IPPs, and implementation of the Committee’s recommendations regarding the upper age limit and number of attempts for the CSS Competitive Examination.

During the briefing on circular debt and capacity payments to IPPs, members raised serious concerns over substantial capacity payments being made to non-operational power plants, describing the practice as an unnecessary burden on electricity consumers.

The Committee also criticized NEPRA for failing to provide tariff determination details despite repeated directions and observed that certain IPPs had, prima facie, played a role in undermining the government’s solar energy policy.

The Committee further discussed the installation of imported coal- and RLNG-based power plants in Punjab instead of coastal areas. While officials explained that these plants were established near major load centres, the Committee directed NEPRA to submit comprehensive tabulated details of all IPPs, tariff determinations, generation capacity, installation costs, and rate analyses.

The Chairman of the Committee also emphasized the need to review electricity tariffs, renegotiate IPP agreements where necessary, and consider terminating contracts with unnecessary projects in order to reduce electricity prices for consumers.

Questioning the Authority’s overall performance, the Committee observed that NEPRA had remained reluctant to undergo a performance audit by the Auditor General of Pakistan. The Committee unanimously called for accountability and directed that a comprehensive performance audit of NEPRA be conducted. It also decided to refer the matter of the unauthorized pay increase to the Public Accounts Committee (PAC) for detailed examination.

The Committee also received a detailed briefing on the salaries, allowances, and benefits of the Chairman, Members, and senior officials of NEPRA.

The Secretary, Cabinet Division, informed the Committee that NEPRA had enhanced the salaries and allowances of its Chairman and Members without obtaining the approval of the Federal Government, contrary to its own law.

Members expressed serious concern over the unilateral increase, noting that although NEPRA had proposed revised market-based remuneration in 2018, the summary was still awaiting government approval.

Taking notice of frequent changes in petroleum prices on a daily basis, the Committee decided to place the matter on the agenda of its next meeting for detailed discussion.

The Committee also reviewed the implementation status of its recommendations regarding enhancement of the upper age limit and increase in the number of attempts for the CSS Competitive Examination.

Expressing dissatisfaction over the lack of progress, the Chairman directed the Federal Public Service Commission (FPSC) and the Establishment Division to implement the Committee’s recommendations and submit a compliance report at the earliest.

The Committee was scheduled to examine the Pakistan Telecommunication Authority’s (PTA) criteria for enforcing rollout obligations in the absence of a regulatory framework on the “Right of Way.” However, deliberations were deferred due to the absence of the relevant officials.

The Chairman of the Committee directed the Federal Minister for Information Technology, Secretary IT, Chairman PTA, a representative of the Law Division, and the Member (Legal) of the Ministry of IT to ensure their presence at the next meeting.

The meeting was attended by Senators Mohammed Abdul Qadir and Aimal Wali Khan, while Senator Saleem Mandviwalla and Senator Amir Waliuddin Chishti participated virtually. Senator Shahadat Awan and Senator Saifullah Abro attended as movers of agenda items, whereas Senator Dr. Afnan Ullah Khan and Senator Dost Ali Jeesar attended as special invitees.

 

Dar seeks US partnership to double bilateral trade to $20bn
Pakistan is confident that, together with the United States, it can double bilateral trade to $20 billion over the next five years by fully harnessing the complementarities of both economies.

 “At a time of evolving regional and global dynamics, regular parliamentary exchanges are more important than ever in building trust, enhancing mutual understanding and reinforcing the long-term foundations of the Pakistan-US partnership,” Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said while addressing an interactive session at the Ministry of Foreign Affairs with a visiting US Congressional Delegation (CODEL), comprising Representatives Ryan Zinke and Michael Baumgartner, along with a 33-member US business delegation.

Pakistan believes in fair, balanced and reciprocal trade that creates value for both economies and ensures a mutually rewarding partnership.Dar underscored the immense potential for enhancing trade, investment, innovation and collaboration in technology, energy, agriculture, manufacturing, mines and minerals, and other sectors of mutual interest, the Foreign Office said.

“By enhancing trade and investment linkages, we can create mutually beneficial opportunities for businesses in both countries, generate employment, foster innovation and deliver shared prosperity for our peoples. In today’s world, strong and mutually beneficial economic ties are the true measure of a mature strategic partnership,” he said.

While the US remains Pakistan’s largest single-country export destination, Dar invited American businesses to invest in Pakistan, reaffirming the government’s commitment to facilitating investment, advancing economic reforms and fostering long-term partnerships that promote shared growth and prosperity.

“We sincerely hope that the US EXIM Bank, the US International Development Finance Corporation (DFC) and the US Trade and Development Agency (USTDA) will continue supporting enhanced trade and investment between our two countries. In this regard, we appreciate the US EXIM Bank’s US$1.25 billion financing for the Reko Diq project, which reflects growing confidence in Pakistan’s economic future. I am confident that this will be the first of many such investments,” he added.

The foreign minister said the US Congress has long played an important role in advancing constructive Pakistan-US engagement, adding that Pakistan deeply valued members of Congress who have demonstrated sustained interest in South Asia and in strengthening bilateral relations.

“Over the past year and a half, Pakistan’s engagement with the US Congress has expanded significantly through sustained dialogue with members on both sides of the aisle and close interaction with key congressional committees, particularly the House Foreign Affairs Committee, as well as other influential offices,” he said.

Dar said a strong Pakistan-US relationship also contributed to regional stability and international peace at a time of global uncertainty.Encouraging US businesses that have already engaged with the Special Investment Facilitation Council (SIFC) and benefited from its facilitation mechanisms, he urged them to continue working closely with the forum, which he said is ready to facilitate investments and help translate opportunities into successful commercial partnerships.

Turning to recent developments, Dar said both countries are working closely towards the common objective of achieving lasting peace, stability and prosperity. He expressed appreciation for the role of US President Donald Trump and his administration in facilitating the ceasefire understanding between Pakistan and India in May last year.

“With humility and a deep sense of responsibility, Pakistan also played the role of a sincere and honest facilitator in the US-Iran dialogue. We remain grateful for the trust and confidence reposed in Pakistan by both the United States and Iran. With the support of our brotherly countries and international partners, these efforts culminated in the signing of the Islamabad Memorandum of Understanding in June this year,” he added.

Dar said Pakistan will continue to support dialogue, diplomacy and peaceful resolution of disputes, as it believes these remained the only sustainable pathways to lasting peace and stability. He expressed hope that such efforts will continue to contribute to regional and international peace and stability.

 “We sincerely hope that the US EXIM Bank, the US International Development Finance Corporation (DFC) and the US Trade and Development Agency (USTDA) will continue supporting enhanced trade and investment between our two countries. In this regard, we appreciate the US EXIM Bank’s US$1.25 billion financing for the Reko Diq project, which reflects growing confidence in Pakistan’s economic future. I am confident that this will be the first of many such investments,” he added.

The foreign minister said the US Congress has long played an important role in advancing constructive Pakistan-US engagement, adding that Pakistan deeply valued members of Congress who have demonstrated sustained interest in South Asia and in strengthening bilateral relations.

“Over the past year and a half, Pakistan’s engagement with the US Congress has expanded significantly through sustained dialogue with members on both sides of the aisle and close interaction with key congressional committees, particularly the House Foreign Affairs Committee, as well as other influential offices,” he said.

Dar said a strong Pakistan-US relationship also contributed to regional stability and international peace at a time of global uncertainty.Encouraging US businesses that have already engaged with the Special Investment Facilitation Council (SIFC) and benefited from its facilitation mechanisms, he urged them to continue working closely with the forum, which he said is ready to facilitate investments and help translate opportunities into successful commercial partnerships.

Turning to recent developments, Dar said both countries are working closely towards the common objective of achieving lasting peace, stability and prosperity. He expressed appreciation for the role of US President Donald Trump and his administration in facilitating the ceasefire understanding between Pakistan and India in May last year.

 “With humility and a deep sense of responsibility, Pakistan also played the role of a sincere and honest facilitator in the US-Iran dialogue. We remain grateful for the trust and confidence reposed in Pakistan by both the United States and Iran. With the support of our brotherly countries and international partners, these efforts culminated in the signing of the Islamabad Memorandum of Understanding in June this year,” he added.

Dar said Pakistan will continue to support dialogue, diplomacy and peaceful resolution of disputes, as it believes these remained the only sustainable pathways to lasting peace and stability. He expressed hope that such efforts will continue to contribute to regional and international peace and stability

Amid deadly clashes, rigging claims...: PMLN secures 9, PPP 4 seats in AJK LA
Amid deadly clashes, allegations of rigging under the patronage of the state security apparatus and a deepening political row, Pakistan Muslim League-Nawaz (PMLN) has secured nine of the 13 seats in the first phase of Azad Jammu and Kashmir (AJK) Legislative Assembly elections, with Pakistan People’s Party (PPP) winning four, according to unofficial and provisional results.

Polling was held on Monday across all 13 constituencies in Mirpur, Kotli and Bhimber districts. Voting officially ended at 5pm, with an additional hour allowed for voters already present at the polling stations before counting began.

According to the unofficial results, PMLN won nine seats, while Pakistan People’s Party (PPP) secured four, reports Geo News.

According to the unofficial and provisional results, PMLN won LA-1 Mirpur-1, LA-4 Mirpur-4, LA-5 Bhimber-1, LA-6 Bhimber-2, LA-7 Bhimber-3, LA-9 Kotli-2, LA-11 Kotli-4, LA-12 Kotli-5 and LA-13 Kotli-6.

Pakistan People’s Party won LA-2 Mirpur-2, LA-3 Mirpur-3, LA-8 Kotli-1 and LA-10 Kotli-3.

In LA-1 Mirpur-1, PMLN candidate Azhar Sadiq won with 15,427 votes, defeating PPP’s Muhammad Afser Shahid, who secured 9,832 votes.

In LA-2 Mirpur-2, PPP’s Qasim Majeed was declared successful with 12,904 votes, while PMLN’s Azeem Bakhsh Chaudhry finished second with 8,182 votes.

PPP candidate Chaudhry Yasir Sultan won LA-3 Mirpur-3 with 11,676 votes, ahead of PMLN’s Chaudhry Muhammad Saeed, who received 9,832 votes.

In LA-4 Mirpur-4, PMLN’s Chaudhry Rukhsar Ahmed secured victory with 20,172 votes, while PPP’s Chaudhry Sohaib Arshad obtained 13,865 votes.

PMLN candidate Waqar Ahmed Noor won LA-5 Bhimber-1 with 30,259 votes, defeating PPP’s Chaudhry Pervaiz Ashraf, who received 29,574 votes, by nearly 700 votes.

According to the unofficial and provisional results from all 195 polling stations in LA-6 Bhimber-2, PMLN candidate Chaudhry Muhammad Razaq won the seat with 32,732 votes, while Istehkam-e-Pakistan Party (IPP) candidate Ali Shan Chaudhry finished second with 26,718 votes.

In LA-7 Bhimber-3, PMLN’s Chaudhry Tariq Farooq secured 35,490 votes to defeat independent candidate Chaudhry Anwar-ul-Haq, who polled 25,100 votes.

PPP’s Zafar Iqbal Malik won LA-8 Kotli-1 with 19,535 votes, while PMLN’s Malik Muhammad Nawaz Khan came second with 11,966 votes.

In LA-9 Kotli-2, PMLN’s Umair Naeem was declared successful after securing 31,080 votes, ahead of PPP’s Javed Iqbal Budhanvi, who received 28,509 votes.

According to the unofficial and provisional results from all 169 polling stations in LA-10 Kotli-3, PPP candidate Chaudhry Muhammad Yasin won the seat with 12,431 votes, while PMLN candidate Fateh Mehmood-ul-Hassan finished second with 9,245 votes.

PMLN candidate Muhammad Asif won LA-11 Kotli-4 with 26,190 votes, defeating PPP’s Chaudhry Muhammad Akhlaq, who secured 21,751 votes.

In LA-12 Kotli-5, PML-N’s Muhammad Riasat Khan secured 35,168 votes to defeat PPP’s Chaudhry Muhammad Yasin, who received 30,320 votes.

The results from the first phase of elections drew a hard-hitting statement from Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari on Tuesday, reports Asim Yasin from Islamabad.

Addressing a workers’ convention in Muzaffarabad, he said the state of Pakistan must decide whether its priority was the national interest or the interests of PMLN.

Bilawal said every decision taken by the state appeared to have prioritised the interests of PMLN over those of the nation. “This harms not only the state but, more importantly, the people of Pakistan,” he emphasized.

“We are not prepared to help anyone protect the political interests of PMLN,” he said.

Bilawal urged the state to “open its eyes” and said PPP would never allow Azad Kashmir to resemble Occupied Kashmir.

Many of those killed, he said, were young people who had responded to political calls or taken to the streets after remaining confined to their homes because of the internet shutdown.

He said lower voter turnout would make rigging easier and alleged that the PTI leadership had conspired against its own party by participating in the boycott. Urging people to vote, he said PPP representatives would regard every individual as a citizen rather than as a supporter of any political party.

He congratulated Malik Zafar, Qasim Majeed, Yasir Sultan, Chaudhary Yasin, Chaudhary Akhlaq and Javed Badhanvi on what he described as their victories.

He alleged that around 30 union councils in Chaudhary Yasin’s constituency had been taken over, polling agents had been forcibly removed from polling stations and neither the returning officer nor the police responded despite repeated requests. Bilawal said the public had been told that phased elections were intended to ensure peaceful and transparent polling.

Reacting to Bilawal’s reaction to the election results, Punjab Chief Minister Maryam Nawaz Sharif on Tuesday thanked Allah for what she described as PMLN’s ‘resounding victory’ in the first phase of AJK elections in Mirpur Division, urging PPP to accept the electoral verdict with grace instead of alleging rigging.

Congratulating the people of Mirpur and Kotli, she said they had made the ‘best decision’ by voting for development and a better future for their children, reports Ali Raza from Lahore.

She congratulated PMLN President Nawaz Sharif and Prime Minister Shehbaz Sharif, saying the people had listened to and understood the party’s message and had endorsed the promises made by Nawaz Sharif.

She said their party had secured nine of the 13 key seats in the first phase and expressed confidence that the party would also win the remaining constituencies.

Expressing disappointment over the reaction of PPP Chairman Bilawal Bhutto Zardari, she said the PPP should have accepted the results in the spirit of democracy instead of using an ‘inappropriate language’ and making allegations.

“When you won Gilgit-Baltistan, we accepted the result wholeheartedly. Now that you have lost Mirpur, you are alleging rigging,” she said.

Referring to Sindh, where the PPP has remained in power for 17 consecutive years, she said the party had failed to showcase any significant development projects or present a roadmap to the public despite enjoying uninterrupted rule.

She alleged that the province still suffered from broken roads, weak infrastructure and inadequate public services.

Describing today’s youth as politically aware, she said voters no longer responded to complaints or allegations.

She criticised Bilawal Bhutto for targeting senior political leaders during the campaign, saying parties with a strong manifesto and performance record did not need to rely on personal attacks.

Calling repeated allegations of rigging “regrettable”, she claimed that videos circulating on social media showed bags of votes allegedly recovered from the homes of PPP candidates. She challenged PPP to produce similar evidence against her party.

According to her, people coming from Sindh often expressed the desire for a province like Punjab and a Karachi comparable to Lahore in terms of development.

The fresh unrest began on Monday, the day voting began in parts of the region, with the clashes mostly taking place around the city of Rawalakot, the epicentre of weeks of demonstrations, reports AFP.

“One security force official was killed and three others wounded in clashes that have continued since Monday evening between security forces and protesters near Rawalakot,” the city´s top civilian official Sardar Waheed told AFP.

He added that the standoff was continuing as protesters surrounded the outskirts of Rawalakot, with security personnel holding them back from entering the centre of the city.

There were fears the confirmed death toll could rise.

A spokesperson for Joint Awami Action Committee (JAAC) said around 20 of their supporters had been left dead during the clashes. Waheed said authorities could not confirm that toll.

“Different groups are claiming 18 to 20 deaths, but we cannot verify these figures,” he said, saying civilian casualties were not being brought directly to government hospitals.

Earlier in the day, the AJK government said the banned JAAC attempted to disrupt the ongoing electoral process through acts of violence and unrest.

Speaking at a press conference in Muzaffarabad alongside AJK police spokesperson DIG Irfan Masood Kashfi, AJK Secretary Information Muhammad Rashid Hanif said the state’s primary responsibility was to maintain law and order and assured that authorities would take all necessary measures to ensure public safety and the smooth conduct of elections.

The information secretary added that the banned group included armed individuals, militants and people linked to Fitna al-Khawarij, claiming that evidence of such involvement was available with state institutions.

Hanif further said that some elements within JAAC had used civilians as human shields during demonstrations.

Pakistan People’s Party Parliamentarians (PPPP) on Tuesday urged the Punjab Chief Minister Maryam Nawaz to respond to the allegations of electoral rigging instead of making accusations and diverting attention from the controversy.

Responding to Maryam Nawaz’s recorded televised remarks, the PPPP Central information Secretary Shazia Marri said the PPP Chairman Bilawal Bhutto Zardari was leading the struggle to protect the public mandate and democracy.

The PPP spokesperson called for an immediate, transparent and impartial investigation into the alleged irregularities in LA-12, stressing that the constituency’s electoral mandate must be protected at all costs.

She said the PPPP Secretary General Nayyar Bukhari had formally informed the Election Commission of the alleged irregularities.

Prime Minister Shehbaz Sharif on Tuesday felicitated PMLN on the successful conduct of the first phase of Azad Jammu and Kashmir Legislative Assembly elections and securing a clear lead, reports Radio Pakistan.

Shehbaz said PMLN conducted a highly successful election campaign under the leadership of Nawaz Sharif.

He said active participation of political parties in the first phase of the elections reflected the successful conduct of the democratic process.

Shehbaz urged the people to participate in the remaining phases of the elections with the same enthusiasm to further strengthen the democratic process.

In a related development, State Minister for Interior Talal Chaudhry on Tuesday said the federal government would fully support AJK administration to crush agitators seeking to disrupt the electoral process and undermine peace in the region.

He stated this while speaking at a press conference in Islamabad alongside Federal Information Minister Attaullah Tarar, reports Geo News.

Criticising the banned committee, the minister said its campaign was “not a movement to secure rights, but one aimed at taking rights away from the people”.

He alleged that the proscribed group was seeking to deprive Kashmiris of their right to vote and undermine the democratic process.

The minister further said both domestic and foreign elements were involved in the unrest, alleging that the banned JAAC was attempting to divert international attention from the elections by fuelling instability in the region.

Talal maintained that 37 of the committee’s 38 demands had already been accepted, describing the continued protests as unjustified.

He also claimed that acts of terrorism were being carried out under the guise of protest, adding that the use of weapons had no place in a genuine public demonstration.

Information Minister Tarar said the people of AJK had overwhelmingly rejected the violent elements by participating in the electoral process. He said around 600,000 votes were cast across Mirpur Division, demonstrating public support for democracy despite attempts to create unrest.

He claimed that the banned JAAC was pursuing a foreign agenda and receiving funding from India, adding that its actions had exposed its intentions before the people of Kashmir and the international community.

Meanwhile, the convoy of former Azad Jammu and Kashmir (AJK) prime minister and President of the Istehkam-e-Pakistan Party (IPP) AJK, Sardar Tanveer Ilyas Khan, narrowly escaped an alleged ambush by unidentified assailants in Neelum Valley district on Tuesday, leaving two people injured and causing extensive damage to two vehicles.

The attackers severely damaged two vehicles in the convoy. Driver Muhammad Ali and party worker Kamran Ali sustained injuries after being struck by stones and were provided medical assistance. Sardar Tanveer Ilyas remained unharmed in the incident.

In Islamabad, the opposition leadership condemned the use of force in AJK, accusing the government of suppressing protesters instead of addressing their genuine demands. Speaking at a news conference along with Pakistan Tehreek-e-Insaf (PTI) Secretary General Salman Akram Raja and others, Leader of the Opposition in the Senate Allama Nasir Abbas lamented that shots were fired at people in the November 26 incident, the Mureed incident and now in Kashmir, saying the victims were raising slogans in favour of Pakistan and considered themselves part of it. Salman Akram Raja claimed facts about the AJK situation were emerging through social media. He alleged that Kashmir was currently witnessing bloodshed.

Referring to the AJK elections, he alleged that people’s votes were being changed and the sanctity of the vote violated, adding that such practices were harming Pakistan.

He claimed that the PTI founder Imran Khan had been unjustly imprisoned while the “corrupt regime” remained occupied with appeasing others, and demanded the state end what he described as its “barbarity”.