Laws & Taxes

Pakistan's government has agreed to 11 new IMF targets, including tax hikes and spending cuts from next month, after missing 11 prior benchmarks in its $7 billion Extended Fund Facility.Immediate actions address FBR shortfalls of Rs430 billion in FY26's first five months by raising excise duties on fertilizers, pesticides, and sugary items, plus shifting goods to 18% GST if revenues lag. Waivers cover misses on social spending, deficits, and tax returns, unlocking $1.2 billion disbursement post second review. Plans include FBR reforms by March 2026, tax policy strategy by December 2026, agriculture tax optimization, SEZ incentive phase-out by 2035, power sector privatizations starting early 2026, asset declarations, NAB risk plans, and SOE/SWF law amendments by mid-2026

FBR has updated property valuation rates in Islamabad across 68 areas, raising taxes in premium sectors like E-7 and F-7 while adjusting others downward.Superstructures up to five years old are now valued at Rs 4,000 per square foot, older ones at Rs 3,000; residential plots in E-7 reach Rs 600,000 per square yard, with farmhouses in Gulberg Green at Rs 17.55 million per kanal and commercial spots in E-7/F-7 up to Rs 2.5 million. These immediate revisions aim to align with market rates, boosting transparency and impacting capital gains taxes.High-end zones like DHA, Bahria Enclave, and F-6/F-8 see sharp hikes, while rural valuations follow District Collector rates, streamlining real estate transactions citywide

The traffic police in Lahore have decided to strictly enforce rules against police officers using tinted glasses and non-standard number plates on their vehicles. Chief Traffic Officer Athar Waheed ordered that police vehicles must adhere to the same traffic regulations as the public, including removing black window tints and replacing unauthorized number plates. Violations will result in challans and legal action. This step aims to set a good example and ensure that no vehicle, including official ones, receives exceptions under the law

The Punjab government has banned the production of petrol-powered motorcycle rickshaws to combat severe air pollution. This move is part of a larger strategy that includes promoting electric and hybrid vehicles for all government departments, banning home vehicle washing, and enforcing penalties for environmentally harmful practices like burning plastic. The province has also expanded air quality monitoring and introduced digital tools for pollution tracking. These measures aim to improve public health by reducing smog and enhancing environmental standards throughout Punjab.

Interior Minister Mohsin Naqvi has assured that no passenger with genuine and complete travel documents will be barred from traveling abroad. During a visit to Islamabad Airport, he reviewed passenger concerns and ordered a crackdown on visa agents exploiting travelers. Naqvi stressed that only those with fake or incomplete documents would be denied boarding, as such actions harm Pakistan's reputation. He also addressed staffing issues at immigration counters and emphasized zero tolerance for agent mafias jeopardizing travelers' futures. The Federal Investigation Agency confirmed that legitimate passengers are being facilitated, and only those with suspicious documentation are stopped.

The Pakistan Telecommunication Authority (PTA) is launching a major renewal project to significantly upgrade its cybersecurity firewall. The project, which has an estimated budget range of Rs. 40 million to Rs. 120 million, will deploy Next-Generation Firewalls (NGFWs) at its headquarters and regional offices. This upgrade aims to give the PTA enhanced control and resilience against increasingly sophisticated cyber threats targeting Pakistan's digital and telecom systems

Federal government ministers are openly opposing the "excessive" mobile phone tax imposed by the PTA. The opposition includes a claim that even the PTA leadership is against the high tax burden. Critics warn the tax is restricting digital access for millions and slowing the country's technological progress. The Standing Committee on Finance has been urged to review the tax regime.

RAWALPINDI: Following instructions from the National Accountability Bureau (NAB), the Rawalpindi Development Authority (RDA) is developing a new online portal for the public. This platform will allow citizens to verify the legal status of any housing scheme or individual plot—checking if it is approved, under process, or illegal—before making investments. NAB is integrating data from both the RDA and CDA to enhance transparency and protect consumers from real estate scams and unapproved developments.

LAHORE: Punjab has enacted the Protection of Ownership of Immovable Property Ordinance 2025 to combat land grabbing. Penalties: Illegal property possession is now a criminal offense punishable by 5 to 10 years of imprisonment. Swift Justice: A new two-tier system is established: