g ASAD QAISER SAYS TALKS WILL ONLY TAKE PLACE IF GOVERNMENT AGREES TO PTI DEMAND
g RANA SANA CLAIMS GOVT HA S NOT YET RECEIVED A FORMAL MESSAGE FROM PTI
DPTI leader Asad Qaiser on Friday told the National Assembly that any negotiations with the government will take place only if the government agrees and will be conducted under the guidance of the party’s founding chairman Imran Khan
“I went to the speaker ’s office for a condolence visit not for talks Qaiser told the National Assembly Asad Qaiser clarified that he visited the office of the Speaker of the National Assembly only for condolence prayers and not for negotiations, as reported by the media He emphasised that talks would only occur when the government is willing and in accordance with instructions from PTI s founding chairman Imran Khan The National Assembly session, chaired by Deputy Speaker Syed Mir Ghulam Mustafa Shah, saw heated exchanges Qaiser criticised the government for its lack of seriousness stating that the government had failed to address the issues raised by the opposition He asked the Deputy Speaker, What agenda will you proceed with when the government members are absent?” In response the Deputy Speaker said that the Speaker’s office had written to the Prime Minister regarding the disrespect shown to the House adding We will not run the assembly in such a manner He adjourned the session for 10 minutes, warning that if no government minister showed up the session would be cancelled Qaiser also addressed the ongoing debate about dialogue stressing that the discussions would only take place once the government was ready, and under Khan’s directives
He questioned the use of force on November 26 during protests, asserting that the constitution allows peaceful demonstrations He also demanded the release of PTI leaders and supporters arrested during recent protests The law that bans protests in Islamabad violates the constitution, Qaiser said We want a judicial commission led by senior Supreme Court judges to investigate the events of November 26 and May 9 ” He further criticised the government for what he described as actions against PTI members including the alleged forced resignation of party lawmakers and raids on their homes Qaiser also raised concerns over the
targeting of Pashtuns, claiming that the government’s actions were aimed at dividing the country He accused authorities of imposing “martial law” in Punjab and disrupting trade with Afghanistan
Qaiser concluded by reiterating PTI s demand for a judicial investigation into the incidents surrounding May 9 and November 26, and for the release of PTI’s detained leaders and supporters Separately Chairman of the Sunni Ittehad Council and member National Assembly Sahibzada Hamid Raza said that the terms of reference for dialogues have been finalised, and it is now up to the government to decide whether it wishes to engage in negotiations or not
During a talk with media outside the parliament that the chief of the SIC the ally of the Pakistan Tehreek-e-Insaf said that as of now there have been no negotiations; however, the matter is being addressed in the party s meetings
He also mentioned that only the PTI founder will provide guidelines for the dialogues from jail Sahibzada Hamid Raza indicated that any developments concerning the talks will be communicated to the media by Friday evening
Meanwhile, an important meeting of opposition leaders has been convened to deliberate on the current political situation According to the information available the meeting will take place at the residence of PkMAP chief Mahmood Khan Achakzai
Pakistan war ns TTP could become Al Qaeda’s ar m with regional, global ter
rorist agenda
his speech Gandapur alleged that state forces had opened fire on his people killing them in cold blood He called for the nation to honour these martyrs and offer prayers for the injured He stressed the significance of attending an upcoming event on December 15 to pay tribute to those who had given their lives for the cause of freedom He further vowed that the sacrifices made by those who died at DChowk would not go in vain Our struggle will continue until we achieve true freedom he declared He also expressed concerns over the disappearance of several of his supporters, fearing that many of them might have been killed in state custody He urged the government to address their apprehensions and provide clarity on the fate of the missing individuals
The CM criticised the government for what he described as a daily display of theatrics accusing the media of being pressured to avoid covering the issue He demanded answers regarding the use of force and the individuals responsible for the shootings “We want to know who fired the shots and under whose orders ” Gandapur stated stating that those responsible must be held accountable He called out claims made by certain media personalities who denied the shootings, asserting that the deaths of twelve confirmed martyrs and over 100 injuries were irrefutable “We will not let this go unanswered ” he warned adding that further confirmation of additional casualties was still pending On the political front Gandapur denounced a conspiracy aimed at fostering division and hatred within the provinces, suggesting that certain individuals were orchestrating these efforts to protect their wealth and political interests
He asserted that these elements were attempting to tear the country apart and warned that their efforts would fail Our loyalty lies with Pakistan and we will not allow anyone to weaken it for personal gain he said
Pakistan has raised concerns over the rising threat posed by the Tehreek-i-Taliban Pakistan (TTP) warning the international community that the group which operates primarily from Afghanistan could evolve into an arm of Al Qaeda with both regional and global terrorist ambitions
The ongoing violence from TTP militants who frequently target Pakistani territories has strained Pakistan s relationship with the Afghan Taliban administration
Despite repeated calls for action against the banned TTP, the Taliban leadership in Kabul has dismissed these requests denying the group s use of Afghan soil to stage attacks on Pakistan
Speaking at the UN Security Council on Thursday, Ambassador Usman Jadoon, Pakistan’s perma-
nent representative to the United Nations, stressed that terrorism from and within Afghanistan is the most significant threat to Pakistan, the region and the world
While acknowledging Afghanistan s fight against ISIL-K (Da ish) Jadoon stressed that other terrorist groups, such as Al Qaeda and TTP, remain largely unchecked
Jadoon also revealed that Pakistan’s border officials have confiscated modern weapons used by TTP militants many of which were reportedly supplied by the Afghan Interim Government (AIG) from leftover foreign military stockpiles
Furthermore, the TTP allegedly receives external support, including funding from Pakistan’s regional adversary India
The ambassador warned that TTP s growing influence may turn it into a central hub for various terrorist groups, particularly those aimed at destabilising Pakistan
He cited TTP s links with the Majeed Brigade, a group actively working to disrupt Pakistan s economic cooperation with China, particularly in relation to the China-Pakistan Economic Corridor (CPEC)
Jadoon also highlighted TTP s longstanding ties to Al Qaeda, suggesting that the group could emerge as an extension of Al Qaeda’s operations with a broader regional and global agenda Pakistan he declared would take all necessary national measures to eliminate these threats, while cooperating with regional and international efforts to combat terrorism
In addition to security concerns the ambassador addressed the growing human rights violations under the Afghan Taliban regime, particularly the recent ban on women and girls from attending public and private medical institutions in Afghanistan
WORLD BANK APPROVES $240 MILLION TO ENHANCE WATER AND SANITATION IN K ARACHI
OGDCL strikes hydroc arbon reser ves in KP ’s S amanasuk formation
n e w S D e S k
Oil and Gas Development Company Limited (OGDCL) has announced gas and condensate discovery in Samanasuk formation an exploratory zone at the Bettani-02 (Slant) well located in District Laki Marwat, Khyber Pakhtunkhwa Province The E&P giant shared this development with the Pakistan Stock Exchange (PSX) through a notification on Friday in compliance with Section 96 of the Securities Act 2015 and Clause
Pakistan eyes
5 6 1(a) of PSX Regulations Oil and Gas Development Company is the operator of the Wali Exploration License with a 100% working interest The company said that the Bettani-02 (Slant) well was spudded in as an appraisal well and drilled to a depth of 5 080 meters into the Shinawari formation During drilling, a 247-meter-thick Samanasuk formation (exploratory effort) was penetrated Cased Hole DST1 was carried out and the well flowed at a rate of 2 14 Million Standard Cubic Feet per Day (MMSCFD) of gas and 74
US aviation approval for direc t flights star ting early 2025
barrels of condensate per day on a 32/64 choke with a wellhead flowing pressure of 435 psi
Based on initial testing results, the discovery marks the first-ever hydrocarbon find in the Samanasuk formation within the Wali Exploration License
This discovery has further extended the hydrocarbon play area in the southwestern part of the Bannu Basin and de-risked the exploration potential of deeper reservoirs for which OGDCL has formulated a comprehensive exploration program
Pakistan-China film ‘Ba’tie Girl’ premieres in Beijing
PR OFIT M o n i to R n g D e S k Pakistan has signed a Memorandum of Understanding (MoU) with the US Federal Aviation Administration (FAA) and is addressing pending financial obligations, paving the way for the resumption of direct flights to the United States by the second quarter of 2025 Director General of the Civil Aviation Authority (CAA) Nadir Shafi Dar disclosed in an interview with a local daily that US aviation officials
well-positioned to pass their assessment,” Dar said The development comes at a crucial time as the European aviation agency recently lifted the four-year ban on Pakistan International Airlines (PIA) flights to Europe Pakistan also plans to approach the UK s Department for Transport (DfT) to seek resumption of flights The clearance from the EU aviation agency for PIA flights and anticipated approval for UK flights have bolstered investor confidence PIA is expected to resume its flights to Europe in January, starting with Paris, after the EU aviation regulator lifted a ban on the national flag carrier
ta f f R e p o R t Ba tie Girl a groundbreaking co-production between Pakistan and China has made its grand debut, captivating audiences at its premiere in Beijing on Thursday The film is set to open in cinemas across China marking a new era of cultural exchange between the two nations Jamal Shah former Pakistani Minister for National History and Cultural Heritage, described the collaboration as a significant milestone, emphasizing its role in strengthening ties and fostering mutual understanding “Ba’tie Girl brings together our rich cultural heritages while exploring universal themes of friendship resilience and the pursuit of dreams said Shah at the premiere He highlighted the stark difference in cinema infrastructure between the two countries, with China boasting over 14 000 cinemas and 80 000 screens
Centre
Sindh leads with outstanding dues of Rs59 68b, followed by Balochistan at Rs39 6b, Punjab at Rs38 01b, and Khyber Pakhtunkhwa at Rs8.88 billion.
(-10 77%),
(-10
pulse masoor (-10 26%), onions (-8 92%), basmati rice (-7 46%), electricity charges for Q1 (-6 96%) sugar (-6 52%) bread (-5 99%) and tea (-5 09%) The mixed trend reflects fluctuations in food and energy markets impacting household expenses differently across various commodities
Huawei par tners with Punjab to make L ahore Pakistan’s
ISLAMABAD
S ta f f R e p o R t
Punjab Chief Minister Maryam Nawaz marked the fourth day of her official visit to China with a significant stop at Huawei Technologies in Shanghai s Longgang District on Friday She received a warm reception and announced a strategic partnership with Huawei to transform Lahore into Pakistan’s first state-of-the-art smart city
Inviting Huawei to invest in Pakistan particularly in Punjab the chief minister offered full support to establish an office in the Nawaz Sharif IT City We are eager to leverage Huawei s expertise in telecommunications, electronics, and digital innovation,”
Maryam Nawaz said, emphasizing the potential for partnerships that drive technological progress
The CM pledged complete cooperation to Huawei in setting up assembly and manufacturing plants in Punjab
Additionally she proposed the establishment of Huawei retail offices and after-sales service centers across the province
During her visit, Maryam Nawaz held talks with
Huawei s President for Government Affairs, Wang Chengdong, discussing areas such as e-commerce, ecosystem development and the digitization of health and education sectors Chengdong provided insights into Huawei s ongoing projects in Pakistan particularly in Punjab highlighting successful collaborations such as the Safe City initiatives in Lahore
The CM expressed keen interest in Huawei s role in advancing digital health and education systems, which align with Punjab’s vision for digital transformation She emphasized the importance of empowering the province’s youth with access to cutting-edge digital technologies proposing Huawei s assistance in capacity-building initiatives and IT research at Punjab s first fully AIpowered university
Maryam Nawaz reiterated her commitment to the vision of a Digital Punjab, underscoring the pivotal role of global partnerships with industry leaders like Huawei
The visit concluded with the CM touring Huawei’s facilities and exploring further opportunities for collaboration to make Lahore a beacon of technological innovation and progress
I s l a m a b a d
TH E government has taken a first step in removing the barriers to eclectic vehicles by obliging all petrol pumps to have a charging station, thus making it possible to have an electric vehicle in Islamabad However, this may be a matter of trying to seem woke and showing political correctness EV manufacturers have said there was a low offtake a low demand The charging stations might alleviate that but one problem shows the kind of difficulty that EVs will face and that is the charging time If there are enough EVs there is a prospect of long lines Drivers are used to quick turnover times when filling up on petrol, and may be irked by the relatively longer time it takes for charge Also, Islamabad is a city of outsiders, and thus EVs will be used only by those who can manage on a single-charge round-trip, which may not reach to Lahore It should be remembered that Islamabad residents returning to their villages will probably not find a charging station there
The charging station is not a necessity One can use a domestic connection The concept is that one charges the EV at home at night and then drives round discharging it One important issue is resale One of the phenomena associated with EVs is that their batteries have limited life but cannot be simply replaced as that is so expensive that one might as well buy a new EV That is the reason that the first EV made the Tesla are coming to the end of their battery lives, and are becoming piles of junk
Another issue is that it may not lead to as much of a saving of foreign exchange as thought Fuel will still have to be imported to generate the electricity to be sent to the charging station Can the distribution system support so much EV-charging? It had been thought that this power would be used to absorb IPP capacity, but now that IPPs are switching over to the take-and-pay model, it does not seem the capacity charge issue remains as big a problem as before However, there is a revolution coming in the transport sector, and the government is doing well to take steps that show it will do its duty and try to remain ahead of the curve
Dedicated to the legac y of late Hameed Nizami Arif Nizami (Late)
Founding Editor
M A Niazi Editor Pakistan Today Babar Nizami Editor Profit
in
TH E notion of “Greater Israel,” also known as the “Zionist Plan for the Middle East ” was floated by the founder of Zionism Theodor Herzl The idea envisions the extension of the Jewish state from the Brook of Egypt to the Euphrates
in the East In short this expanded territory would encompass Palestine, Lebanon, Western Syria, and Southern Turkey The idea of Greater Israel is a major threat to regional peace and stability because it envisions the annexation of many of Israel’s neighbouring territories Although the idea holds great significance for Zionists now it has also been a topic of discussion across the globe because of recent military actions carried out by the Israeli government in Lebanon and Gaza This ideologically based conflict has a very high potential to upscale from regional to international-level conflict as it is expected to involve
million, the demand for food continues to rise placing pressure on the country’s agricultural sector Limited arable land water scarcity climate change and outdated farming techniques add to the problem Collaboration with nations like China and Belarus, known for their advancements in agriculture, offers a solution to transform Pakistan into a greener and more food-secure nation China has become a leader in agricultural innovation using technology and research to improve food production Its expertise in hybrid seed development precision farming and efficient irrigation systems has improved its agricultural sector Belarus, a smaller player on the global stage, is recognized for its developments in mechanized farming, sustainable practices and dairy production Combining the strengths of these nations with Pakistan’s agricultural potential can lead to significant results
One area where Pakistan can gain from collaboration with China and Belarus is the use of advanced farming technologies China s work in precision farming using satellite data, sensors, and artificial intelligence to improve crop yields can help Pakistani farmers make better decisions about planting irrigation and pest control This approach reduces waste and ensures efficient use of resources like water and fertilizers which are critical in a waterscarce country like Pakistan Belarus can contribute through its expertise in creating reliable agricultural machinery that suits Pakistan’s varied terrain Updating farming equipment can improve productivity and reduce the workload on farmers Water management is another challenge that can be addressed through joint efforts Pakistan s reliance on traditional irrigation methods, such as flood irrigation, leads to water wastage China s experience in drip irrigation and water-saving technologies offers a practical solution By adopting these techniques, Pak-
istan can conserve its water resources while ensuring crops get sufficient hydration Belarus has been successful in managing wetlands and developing drainage systems, which could help Pakistan’s floodprone areas Projects focused on water management could ensure a steady supply of water for agriculture while reducing the risks of droughts and floods The use of high-yield and climate-resilient crop varieties is another area where China can contribute Chinese researchers have created hybrid seeds that are productive and resistant to pests and diseases Introducing these seeds in Pakistan can help farmers increase yields and lower dependency on chemical pesticides which often harm the environment Belarus with its dairy industry can assist Pakistan in improving livestock farming Sharing knowledge on cattle breeding, feed management, and milk production can enhance the output of Pakistan s dairy sector, which
This collaboration is not just about securing food but about creating a strong er and more sustainable agricultural system. As a nation, Pakistan must grab these oppor tunities, focusing on learning and implementing modern methods. China and Belarus offer tested pathways to effective agricultural practices, and by building on their strengths, Pakistan can transform its agricultural sector.
ternational peace and security The concept of Greater Israel is a major
cern for both regional and global
practical implementation of this idea would destabilize the neighboring territories of Israel, thus provoking many militant groups that will complicate the mediation efforts of the international community The ideology would lead to grave regional as well as global consequences as it will involve major regional and global actors The major concern that arises here is how the international community will respond to the implementation of Greater Israel and what measures will be taken to mitigate its conse-
proactive measures that can help mitigate the risks associated with the notion of Greater Is-
Damascus falls
have not completely withdrawn support, indicating a possibility of continued proxy conflict Meanwhile Turkey appears to be bolstering its influence in the region, aligning with opposition forces to further its strategic interests These developments suggest a reshaping of Syria’s future, but stability remains elusive as factions vie for dominance in the war-torn
Broadening
PaKeeza Rafique
Impor ting best prac tices from China and B elarus
CBY dr iMran khalid
Getting back on track
c o n o m i c a g e n d a
Notably, the December 9 meeting introduced the term „unconventional countercyclical adjustments‰ to ChinaÊs policy lexicon, hinting at a coordinated effor t to integrate monetar y and fiscal strategies beyond traditional levers like rate cuts. This proactive posture sugg ests BeijingÊs determination to maintain GDP growth at around 5%, steering its economy through global turbulence with a mix of innovation and pragmatism.
Israel can save the world from a nuclear Iran. It must strike now
could not penetrate some of the nuclear installations which are buried deep underground beneath layers of thick concrete and steel
The second fear was the practical price Israel would pay if it attacked Iran is believed to have about 2,500 long-range ballistic missiles capable of striking Israel; Hezbollah, until recently, had an arsenal of 150,000 missiles; Hamas had around 40 000 and the Houthis in Yemen have hundreds Lastly there was the regime of Bashar al-Assad in Syria which also until recently was in possession of hundreds of Scud missiles and several tons of chemical weapons These fears are no longer relevant In October, for example, more than 100 Israeli Air Force aircraft, including the advanced F-35I flew more than 2 000 kilometers and struck more than 20 targets throughout Iran The targets included some components of Iran s missile and drone production infrastructure as well as Iran s three remaining S-300 surface-to-air missile systems (a fourth had been destroyed in an earlier Israeli attack in April)
In the strike, Israel not only knocked out Iran’s ability to defend itself, but it also destroyed the regime’s ability to repel a future attack This means that Israel would have free reign in Iranian airspace
While the question of whether Israeli Air Force can
penetrate some of the fortified Iranian installations remains insight into this ability was provided in September when Israel eliminated Hezbollah s leader Hassan Nasrallah In the operation called New Order dozens of Israeli aircraft dropped more than 80 tons of munitions on a deep and heavily fortified bunker in Beirut, leading it to capsize Being able to carry out this type of attack dropping one bomb after the other in waves of precise and repeated airstrikes is an important skill that has been honed by Israel to penetrate bunkers and will work just as well in Iran
Fear of potential retaliation has greatly diminished as of last week Hamas, Hezbollah, and the Assad regime were supported by Iran, partially, to serve as a deterrent against Israel and to make Jerusalem understand that if it ever attacked Iran it would come under unprecedented missile barrages Up until a few months ago Israeli military officers were predicting that Hezbollah could fire up to 5 000 missiles a day anywhere inside Israel This is no longer the case In Syria after Assad s removal Israel has launched more than 300 bombing runs to eliminate any remnants of Syria’s air force, navy, missile arsenal, and chemical weapons stockpile
Hamas has also been destroyed as a military force thanks to the war Israel has waged against the group in response to the Oct 7 invasion and murder of 1 200 people And while the Houthis have a small arsenal of Iranian weapons, they are mostly intended for disrupting shipping routes in the Red Sea, not for attacking Israel
While Iran still has an impressive arsenal of its own ballistic missiles it is not a strategic threat In Iran’s April and October missile attacks against Israel the Israel Defense Forces together with the U S Central Command did a remarkable job at intercepting almost all the Iranian projectiles All this means Iran is today weak, isolated, and vulnerable Israel, whether on its own or in coordination with the United States, has a unique and historic opportunity to, once and for all, remove the primary threat that it has warned about for more than 20 years Iran s nuclear program
This window of opportunity is not unlimited If Israel or the U S fail to act Iran will rebuild its proxy armies it will continue to fortify its installations and could very easily take the final steps and build a nuclear bomb If there was ever a time to act, that time is now
Yaakov Katz is the author of “Shadow Strike: Inside Israel s Secret Mission to Eliminate Syrian Nuclear Power and is a senior fellow at JPPI a global Jewish think tank based in Jerusalem
e r o f S i k h r i g h t s w h o h a s c r i t i c i z e d t h e B i d e n a d m i n i s t r a t i o n f o r n o t t a k i n g a h a rd
e n o u g h l i n e o n N e w D e l h i f o r i t s a l l e g e d ro l e i n t h e f a i l e d
a s s a s s i n a t i o n o f a S i k h s e p a r a t i s t i n N e w Yo r k l a s t y e a r
T h e s e i n c l u d e U S s t a t e m e n t s
I n d i a , s e e n a s m e d d l i n g ; i t s a p p ro a c h t
LA S T week India’s Bharatiya Janata Party (BJP) accused the U S State Department of involvement in a conspiracy aligned with deep state actors in the United States and the political opposition in India to malign and destabilize New Delhi In a series of posts on Dec 5, the BJP’s official X account cited an article published by
TRussian missiles batter Ukraine’s embattled power grid
China ready to work with Pakistan to draw CPEC blueprint to the end: Amb Jiang Zaidong
history of the CPEC and look forward to the prospects of the CPEC Coincidentally the Commer-
just launched the Business Climate Index of Chinese Companies in Pakistan Overall, he said, the confid
grow, while some companies express their concerns about the security environment My personal opinion is that we must pay full attention to and work hard
tion he added He said the process of solving problems itself is a process of deepening understanding and promoting development
“At the same time, we must look at reality, trends and prospects and strengthen our confidence in practical cooperation between the two countries especially the CPEC con-
ity development and its contribution to world economic growth has remained at around 30% China is fully confident that this year s economic growth target will be achieved and will continue to play the role of the largest growth engine of world economy providing more new
ISL AMIC FINANCE PIVOTAL FOR ECONOMIC GROWTH
PRESIDENT Z ARDARI WARNS AGAINST REPERCUSSIONS FOR SIGNING MADRASSAH BILL INTO L AW
Sharif said: Lawmakers should keep in mind the international environment that when a madrassah is registered under a society which has conflicting interests [it] would invite international criticism/sanctions for Pakistan “If the existing procedure for madrassah registration is obviated it could be perilous as it may invite Financial Action Task Force Generalised System of Preferences-Plus and other international institutions to review their opinion about Pakistan
Iran ambassador, Aleem Khan discuss potential for increasing trade, investment
Ambassador of Iran to Pakistan, Reza Amiri Moghadam paid a courtesy call on Federal Minister for Privatization Investment Board and Communications Abdul Aleem Khan here Friday to discuss
road map In the meeting, both Federal Minister and Ambassador Reza Amiri Moghadam discussed ways to further enhance bilateral cooperation, emphasizing the importance of strengthening ties between Pakistan and Iran in these complex international circumstances Both sides agreed that such collaboration would prove mutually beneficial
Senate discusses measures against T V channels violating code of conduct
The president said that the preamble of the Societies Registration Act specified its fields and madrassah education was not reflected in them The president explained that one of the subjects was fine arts including dancing sculpturing music painting etc and thus including madrassah education in the law would contradict the preamble and could be challengeable in terms of Article 227 of the Constitution and vice versa Article 227 stipulates: “All existing laws shall be brought in conformity with the injunctions of Islam as laid down in the Holy Quran and Sunnah and no law shall be made which is repugnant to such injunctions The president further said that the establishment of madrassahs under the act would make societies established under the law vulnerable to “further sectarianism and other divisive tendencies” saying that the formation of a madrassah under one society would mean that few people would establish numerous madrassahs under one society and it would create fiefdoms”
S oftware payments to be treated as business income; S upreme Cour t
OFIT REPORT
In a landmark decision the Supreme Court of Pakistan has ruled that payments made for the use of computer software are classified as business income rather than royalty This verdict provides significant clarity for companies engaging in softwarerelated transactions in Pakistan A review bench comprising Justice Syed Mansoor Ali Shah Justice Athar Minallah and Justice Aqeel Ahmed Abbasi decided in favour of the taxpayer in the case of M/s Inter Quest Informatics Services vs Commissioner of Income Tax resolving a long-standing dispute on the nature of tax treatment for software payments
The bench unanimously overturned an earlier majority judgment, ruling that payments received for software usage should be categorised as business income This decision exempts such payments from income tax in Pakistan under certain circumstances The Case Background The petitioner, M/s Inter Quest Informatics Services is a Netherlands-based company categorised as a non-resident for tax purposes in Pakistan The company entered into agreements with Schlumberger Seaco, Inc , a firm operating in Pakistan, to provide software programs Under the terms of the agreements the petitioner classified its earnings as business profits and
sought exemption from Pakistani income tax under Article 7 of the Double Taxation Agreement (DTA) between Pakistan and the Netherlands This agreement prevents double taxation and fiscal evasion by defining clear rules for taxing cross-border income
However the Pakistani tax authorities argued that the payments should be treated as royalties” under Article 12 of the DTA, which imposes a 15% income tax on such receipts
Initial Tax Assessments: The tax authorities including the Income Tax Officer and the Commissioner of Income Tax (Appeals), categorised the payments as royalties and imposed a 15% tax Tribunal’s Decision: The Tax Tribunal upheld the classification of the payments as royalties further affirming the tax liability
High Court Ruling: Challenging these assessments, the petitioner approached the High Court which ruled in their favor
The court declared that payments made for leasing software did not qualify as royalties under the DTA and were exempt from Pakistani income tax
Supreme Court Majority Judgment: The tax authorities appealed to the Supreme Court which initially ruled against the petitioner in a majority decision restoring the tax assessments
Review Decision: In its latest decision dated November 28, 2024, the Supreme Court re-
viewed and reversed its earlier judgment It concluded that the payments were indeed business income, not royalties, and should not be taxed in Pakistan as per the DTA Implications of the Decision This ruling holds immense significance for both local and international companies engaging in software-related transactions in Pakistan Companies dealing in software programs can now classify payments as business income potentially reducing their tax liabilities under Pakistan s DTAs
Under the Double tax Treaty (DTT), business income is exempt from taxation in Pakistan unless the entity earning it has a permanent establishment (PE) in the country The petitioner being a non-resident company without a PE in Pakistan, can claim exemption from income tax under Article 7 of the DTT, which governs business income
The decision is expected to encourage foreign companies to collaborate with Pakistani entities fostering growth in the tech sector The judgment aligns Pakistan s tax treatment of software payments with international practices improving the country’s reputation in cross-border business operations
Overturning its earlier majority decision the court has set a precedent for ensuring fair and consistent application of international tax agreements
Attaullah Tarar currently visiting Turkiye toured the headquarters of Turkish state TV channel, TRT World During his visit, he held discussions with the channel’s Director General of International Broadcast Omer Faruk Tanriverdi on strengthening media cooperation producing joint documentaries promoting tourism and other mutual interests
Tarar emphasized that Pakistan attaches great respect to its fraternal relationship with Turkiye, not-
ing the strong historical, religious, and cultural ties between the two nations He highlighted ongoing agreements between Pakistan and Turkiye which include co-producing dramas and documentaries as part of their strategic partnership
The Information Minister also mentioned the success of Pakistani athlete Arshad Nadeem who set a world record in Javelin Throw at the Summer Olympics He suggested that a documentary on Nadeem s inspiring journey could be produced showcasing the immense talent present in both countries
The two sides further discussed the Shandur Polo Festival
a major cultural event in Pakistan, known for being held at the highest altitude in the world Tarar proposed producing a joint documentary on the event in collaboration with PTV World which could be broadcast globally, further promoting tourism and sports in Pakistan Moreover, Tarar pointed out that shared cultural and religious values were key to the popularity of Turkish dramas and documentaries in Pakistan He also emphasized the importance of producing a digital documentary on the ongoing atrocities in Indian-occupied Jammu and Kashmir, stressing the need for greater global awareness
