Pakistan

Karachi: The Pakistan Business Forum says that the government could collect up to Rs 480 billion annually if a fixed tax of Rs 10,000 per month is imposed on shopkeepers in the upcoming budget, with no further questioning or documentation requirements, aiming to simplify compliance and broaden the tax base. In its budget proposals for the fiscal year 2026–27 to the Ministry of Finance, the forum urged a comprehensive strategy to steer the economy toward sustainable growth. President of the Pakistan Business Forum, Khawaja Mehboob ur Rehman, stated that the business community is currently facing significant frustration and uncertainty, emphasizing the need for immediate, business-friendly measures to restore confidence. The PBF has strongly recommended the complete abolition of the Super Tax, noting that it was initially introduced as a temporary measure but has effectively become permanent. The Forum underscored that Pakistan’s cost of doing business is currently estimated to be approximately 34 percent higher than that of regional competitors, making it imperative for the government to introduce targeted reforms to enhance competitiveness and attract investment.In this context, the Forum emphasized that the upcoming Federal Budget must prioritize reducing the cost of doing business while ensuring sustainable and equitable revenue generation. It stressed the need for policy measures that support economic growth, industrial expansion, and improved competitiveness in both domestic and international markets. To facilitate business activity, PBF reiterated its recommendation to repeal Sections 37AA, 37B, 14AC, and 14AD of the Finance Bill. It also proposed a gradual reduction in corporate tax rates to provide relief to the business community. To broaden the tax base and improve documentation of the economy, the Forum suggested the introduction of a fixed monthly tax of PKR 10,000 for traders, with simplified compliance mechanisms, and collection through electricity bills. As 4 million shops are in the country. The Forum further recommended rationalizing taxes and surcharges on electricity bills across domestic, industrial, and commercial sectors to reduce operational costs. It also called for improved access to credit finance, particularly for small and medium enterprises (SMEs) and startups, to promote entrepreneurship and inclusive economic growth. To support textile exports and revive the agriculture sector, PBF called for the abolition of sales tax on local cotton seed and oil cake, noting that domestic cotton production has declined sharply from approximately 15 million bales to nearly 5 million bales over the past four decades. Under the Green Pakistan Initiative, the Forum proposed a seven-year tax holiday for corporate farming to encourage large-scale agricultural investment and bring more land under cultivation. In the construction sector, the Forum recommended abolishing Section 7E and introducing amendments to Sections 8 and 8B to revive investment. The PBF also suggested reviewing the continuation of tax exemptions for FATA/PATA, noting that sufficient transitional time has already been provided under previous finance measures. Additional proposals include restricting non-filers from owning more than three vehicles, implementing effective measures to curb under-invoicing. The forum also proposed for enhancing transparency in housing societies (existing and new) all companies may directed to convert their status into a public limited structure with a requirement of 7 directors and this change would be introduced through the next Finance Bill. According to PBF, these measures will improve corporate governance, enhance tax collection, and safeguard public investment.

Emirates remains the world’s most profitable airlineKarachi, Pakistan, 7 May 2026 – The Emirates Group today released its 2025-26 Annual Report, achieving new record profit, revenue, and cash balance levels, despite a disruptive and challenging 12th month in its financial year. Emirates is the world’s most profitable airline in the 2025-26 reporting period. For the financial year ended 31 March 2026, the Emirates Group reported: record profit before tax (PBT) of AED 24.4 billion (US$ 6.6 billion), up 7% from last year, and a PBT margin of 16.2%record revenue of AED 150.5 billion (US$ 41.0 billion), up 3% over last year’s resultsrecord level of cash assets at AED 59.6 billion (US$ 16.2 billion), up 12% from last yearEBITDA of AED 41.1 billion (US$ 11.2 billion), reflecting its strong operating profitability.Emirates retains its place as the world’s most profitable airline, reporting: record profit before tax (PBT) of AED 22.8 billion (US$ 6.2 billion), up 7% from last year, and a PBT margin of 17.4%record revenue of AED 130.9 billion (US$ 35.7 billion), an increase of 2% over last yearhighest-ever level of cash assets at AED 54.9 billion (US$ 15.0 billion), 10% higher compared to 31 March 2025.dnata delivered solid growth and performance across its business units, reporting: record profit before tax (PBT) of AED 1.6 billion (US$ 437 million), up 2% from last year, and a PBT margin of 6.8%record revenue of AED 23.6 billion (US$ 6.4 billion), up 12%strong cash assets of AED 4.7 billion (US$ 1.3 billion), up by 28%.The Group declares a dividend of AED 3.5 billion (US$ 1.0 billion) to its owner, the Investment Corporation of Dubai (ICD). The UAE corporate tax rate applied to the Emirates Group increased from 9% to 15% this year, due to the adoption of Pillar Two tax rules in the UAE. After accounting for the tax charge, the Group’s profit after tax is AED 21.0 billion (US$ 5.7 billion), up 3% from 2024-25 His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group said: “These outstanding results, despite significant challenges in the last month of our financial year, reaffirm the strength and resilience of the Emirates Group’s business model, which is rooted in safety, excellence, innovation, people and partnerships. “For the first 11 months of 2025-26, the picture across the Group was very positive. Strong demand for our products and services was driving revenue, and we were achieving healthy margins thanks to our sustained investments in product, people, technology and brand. Month after month, we were surpassing our targets. “On 28 February, military activity massively disrupted global commercial air traffic in the Gulf region, including in the UAE. Emirates and dnata quickly mobilised to support our people and affected customers, protect our assets, and ensure business continuity. “We are fortunate to be based in Dubai, where years of infrastructure investments and a cohesive aviation ecosystem has enabled the government to quickly secure safe corridors for commercial flights. Emirates and dnata have since gradually restored operations at DXB. Although we are still operating at a lower passenger capacity than pre-disruption, cargo operations have ramped up to support the movement of essential goods into and through the UAE.” HH Sheikh Ahmed added: “The Emirates Group has navigated crises and disruptions before. Each time, we placed our focus on our customers and our people, and each time, we have bounced back stronger. “Our people are a big part of our success, enabling us to respond with agility in a dynamic operating environment. I’d like to thank all our employees – they have truly exemplified the qualities that set the Emirates Group apart during testing times. “I am grateful to HH Sheikh Mohamed bin Rashid Al Maktoum, and his sons HH Sheikh Hamdan and HH Sheikh Maktoum, for their stewardship of Dubai and unshaken support for aviation – the Emirates Group is proud to contribute to Dubai’s strategy under their leadership. Also, a big thank you to all our ecosystem partners who keep global aviation moving. Their collaboration and solidarity are invaluable and reflect the spirit of partnership that is central to how the Emirates Group operates.” In 2025-26, the Group collectively invested AED 17.9 billion (US$ 4.9 billion) in new aircraft, facilities, equipment, and the latest technologies to support its growth plans. The Group’s total workforce grew by 8% to 130,919 employees, as Emirates and dnata continued recruitment activity around the world to support its expanding operations and boost its future capabilities. The Group’s UAE national workforce also grew to surpass 4,000, showing the success of its programmes to attract, grow and retain local talent. Dnata Performance dnata increased its profit before tax by 2% to AED 1.6 billion (US$ 437 million) in 2025-26, with all business divisions reporting a solid performance, and notable contributions from its airport operations and catering and retail divisions. dnata’s profit after tax stood at AED 1.3 billion (US$ 367 million), a 4% decrease, which is primarily due to a higher UAE tax rate applied in 2025-26. dnata’s total revenue increased by 12% to hit a new record of AED 23.6 billion (US$ 6.4 billion), driven by increased flight and travel activity across the world, particularly in its major markets: Australia, Europe, the UAE, UK, and US. dnata’s international businesses account for 77% of its revenue, up 2% points from the previous year. The number of aircraft turns handled by dnata globally grew by 12% to 888,793; and cargo handled increased by 2% to 3.2 million tonnes, reflecting new contracts won, and increased flight activity by dnata’s airline customers across markets, particularly in its international operations. More details on the Group’s environmental, social and governance initiatives can be found in the full 2025-26 Emirates Group Annual Report.