Tue, 21-Oct-2025

Pakistan faces challenges in combating tobacco menace

Pakistan

ISLAMABAD: The Society for the Protection of the Rights of the Child (SPARC), in a recent press release, shared statistics highlighting the significant burden tobacco use imposes on Pakistan, both in terms of public health and economic costs. Instead of increasing taxes on utilities such as electricity and gas, the government should prioritize increasing taxes on cigarettes to reduce the health cost burden and economic crisis.

Malik Imran Ahmad, Country Head of the Campaign for Tobacco-Free Kids (CTFK), stated that Pakistan faces a considerable challenge in combating the tobacco menace. He also presented statistics showing a high prevalence of tobacco use in the country, with 31.9 million adults (15 years and above) consuming tobacco products, accounting for about 19.7% of the adult population.

He further added that tobacco-related illnesses, such as cancer, diabetes, and heart disease, contribute to over 160,000 deaths annually in Pakistan. These deaths not only affect individuals but also have broader impacts on families, communities, and the healthcare system.

Malik Imran proposed an immediate 30% FED increase in 2024, which can recover 19.8% of costs, narrowing the gap between health burdens and tax revenues.

This tax proposal represents a clear ‘win-win’ in terms of health and revenue for the government and the people of Pakistan. Moreover, the recently initiated track & trace system on cigarettes is expected to reduce counterfeiting, restrain tax evasion, and maintain accountability.

Dr. Khalil Ahmad, program manager at SPARC, highlighted that low cigarette prices are the reason why children and youth initiate smoking. He added that smoking-related illnesses and deaths incur substantial economic costs, amounting to 1.6% of Pakistan’s GDP each year.

These costs encompass healthcare expenses, productivity losses due to illness and premature death, as well as other indirect economic impacts. Additionally, he addressed that the tobacco epidemic requires comprehensive strategies encompassing public health interventions, strong tobacco control policies, and awareness campaigns.

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FBR freezes bank accounts of PIA over non-payment

PIA
  • Bank accounts frozen over non-payment of Rs 8b FED.
  • FBR also decided to file an FIR against the PIA officials.
  • PIA Spokesperson said flight operations will not be affected.

KARACHI: The Federal Bureau of Revenue (FBR) on Thursday froze 13 bank accounts of Pakistan International Airlines (PIA) over non-payment of Federal Excise Duty (FED).

FBR authorities say that 13 bank accounts of PIA have been frozen while taking action on the non-payment of Rs 8 billion Federal Excise Duty (FED).

According to the officials, FBR has also decided to file an FIR against the PIA officials for not depositing the FED, despite opening the accounts last month, the money was not deposited.

According to the officials, FBR also decided to file an FIR against the PIA officials for not submitting the FED, despite opening the accounts last month as well.

The spokesperson of PIA said flight operations of PIA will not be affected due to account freezing. He said communication is underway at the government level and hoped that PIA accounts will be restored soon.

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Fed’s Barkin claims to “absolutely” see signs of a slowing of the economy

Barkin

The Fed is undertaking one of its fastest-ever shifts.  The central bank is trying to control inflation. Barkin says he expects inflation to come down. Thomas Barkin, Richmond Federal Reserve president said that the U.S. economy is easing back as buyers are rocked by expansion and pandemic-driven interest for products gets back to additional ordinary … Read more

Wall Street increases as traders’ irrational concerns of rate increases

Wall Street

U.S. stock markets have stabilized in July after a brutal selloff in the first half. The benchmark S&P 500 index (.SPX) has risen 3% so far this month, after recording its steepest first-half percentage drop since 1970. The S&P 500 rose 1.36%, while the Dow Jones gained 0.89%, and the Nasdaq added 2.21%. Wall Street … Read more

Dollar increases, rates decrease following Powell’s comments on inflation

Dollar

The S&P 500 ended slightly lower and looked set to put in the worst first half for the U.S. benchmark index in more than five decades. have worried that an aggressive push by the Fed to dampen inflation will tip the economy into recession. Treasury yields slipped as inflation worries hounded investors. The yield on … Read more

Reduced rate-hike expectations help US stocks break a losing streak

US markets

First weekly gain for global markets this month. Reduced rate-hike expectations help stocks break a losing streak. Nasdaq posted its highest weekly gain since March, rising 7.5%. FTSE All-World index of developed. Friday marked the first weekly gain for global financial markets this month, as investors reassessed how active central banks will need to be … Read more

Fed says American banks can comfortably endure a catastrophic slump

banks

The largest U.S. banks pass the Federal Reserve’s annual stress test. Results pave the way for them to issue share buybacks and dividends. 34 lenders with more than $100 billion in assets would suffer a combined $612 billion in losses under this year’s scenario. The average capital ratio for the 34 banks was 9. That … Read more

European stocks open downward after Fed issues a recession warning

European shares

Fed Chair Jay Powell told US senators that a recession is “certainly a possibility”. The possibility of a recession decreased the price of Brent oil by 1.6% to $110 a barrel. regional Stoxx 600 index fell 0.6%, while the FTSE 100 index fell 0.9% and Germany’s Dax index fell 0.4%. As markets processed statements from … Read more

US stock bounce slows as oil price decline hits energy businesses

oil price

S&P 500 index surrendered early gains to turn negative in the final 30 minutes of the New York trade. Oil companies, notably Marathon Oil and ConocoPhillips, fell as Brent crude decreased by 2.5%. US consumer price inflation reached a 40-year high in May. A fledgling rise in US stocks waned on Wednesday evening, as a … Read more

According to Fed, inflation will not reach the 2% objective for two years

Fed

Inflation at its highest level in 40 years has made hawks of nearly all Fed policymakers. It will take two years for inflation to fall to the central bank’s 2% target, a Cleveland Fed official said on Thursday. Mester said she was not predicting a recession despite slowing growth. Cleveland Federal Reserve Bank President Loretta … Read more

Fed is reportedly considering raising interest rates by 75 bps this week

Fed

According to the Wall Street Journal, Fed policymakers are considering a 75-basis-point rate hike this week. Bond yields alluded to a more aggressive Fed, with the 10-year Treasury yield rising to 3.37 percent, while the 2-year yield, which closely reflects Fed intentions, rose to 3.34 percent. Markets are beginning to anticipate even faster rate hikes, … Read more

Government to impose Rs300 FED on tobacco at GLT stage

FED on tobacco

Regularising Green Leaf Threshing Units (GLT) is crucial to combat illegal cigarette sales. The FBR is debating whether or not to collect tax at the GLT stage. Another suggestion is to increase the adjustable FED on tobacco to at least Rs500 per kg. KARACHI: In the 2019 budget, the government is mulling a proposal from … Read more

Fed’s Brainard says pause in rate hikes unlikely

rate hikes

The Fed has increased the benchmark interest rate twice. Brainard: “It’s very hard to see the case for a pause” during the Fed’s meeting. She said it was too early to tell when demand would soften and labor supply. In the face of rising inflation, the US Federal Reserve’s vice chair stated on Thursday that … Read more

US stocks begin June on positive note

US stocks

US stocks on Wall Street started the month of June on a positive note. Salesforce shares soared more than 13% after the software giant. The Dow Jones Industrial Average was up 0.1 percent at 33,034.24 in early trading. US stocks on Wall Street started the month of June on a high note Wednesday, rising early … Read more

Biden, Fed chair discuss US inflation at White House

President Joe Biden will hold a rare White House meeting with Federal Reserve Chairman Jerome Powell on Tuesday to discuss soaring inflation and White House efforts to tame the politically damaging price surge ahead of the midterm elections. Biden and Powell will “discuss the state of the American and global economies,” according to the White … Read more

US stocks climb ahead of Fed minutes

US stocks

Wall Street shares climbed early Wednesday beforehand of Federal Reserve assembly mins as investors desire a pivot from the bearish sentiment that has dominated 2022. Orders for US-made, huge-price ticket manufactured items endured their upward fashion final month, rising 0.4 percent in April, slightly much less than what analysts had predicted however still indicating fantastic momentum. The … Read more

Markets on edge as Fed prepares renewed salvo against inflation

Fed

Wall Street has grown fearful as the Federal Reserve is set to make its biggest fee hike in greater than two many years to overwhelm inflation that has reached tiers no longer seen because of the 1980s. The critical bank’s coverage-placing Federal Open Market Committee (FOMC) opened the final session of its -day assembly on … Read more

Petrol use surges as cars demand go up

cars

KARACHI: The demand for the automobiles in Pakistan has witnessed a significant surge in the last few years, resulting in an increase in oil consumption. In the wake of the higher oil prices in the international market, which are hovering around $100 due the recent Russia-Ukraine war, Pakistan’s foreign exchange reserves are under severe pressure. … Read more

Ukraine war complicates Fed’s inflation fighting effort

inflation

WASHINGTON: The uncertainty created by Russia’s invasion of Ukraine and its impact on the global economy is piling more complexity onto the US central bank’s already tough fight to contain rising prices. Soaring energy and food costs have pushed inflation in the world’s largest economy to the highest pace in four decades, and the Federal … Read more

Ukraine war complicates Fed’s inflation fighting effort

russia

WASHINGTON: The uncertainty created by Russia’s invasion of Ukraine and its impact on the global economy is piling more complexity onto the US central bank’s already tough fight to contain rising prices. Soaring energy and food costs have pushed inflation in the world’s largest economy to the highest pace in four decades, and the Federal … Read more

High US inflation ‘not acceptable’ but recovery on track: Yellen

WASHINGTON: Soaring US inflation rates are “not acceptable” but the health of the world’s largest economy is fundamentally sound thanks to policies that have mitigated the impact of the pandemic, Treasury Secretary Janet Yellen told AFP. Yellen conceded in an interview she is “concerned” about inflation running at its highest level in decades, and warned … Read more

Fed formally adopts investment rules for officials after outcry

fed

WASHINGTON: Top officials at the US Federal Reserve will be banned from holding individual stocks, bonds, cryptocurrencies and certain other investments under new rules adopted on Friday, after controversial trading activity led to high-profile resignations last year. Under the regulations adopted unanimously by the policy setting Federal Open Market Committee (FOMC), central bank leaders including … Read more

Fed says central bank digital dollar could offer benefits

Fed

WASHINGTON: An official US digital currency could offer potential benefits to American consumers and businesses, but it is not clear they would outweigh the potential risks, the Federal Reserve said. In a long-awaited report on central bank digital currencies (CBDC), the Fed stressed that it is not taking a position nor does the paper signal … Read more

US economy grew 5.7% in 2021

us economy

WASHINGTON: After contracting in 2020, US economic growth saw its biggest increase since 1984 with a rebound to 5.7 per cent in 2021, the second year of the Covid-19 pandemic, the government reported. But the hit from the Omicron variant of the virus held down the recovery in the final quarter of the year, when … Read more

Host of issues hurting rupee stability

Rupee

KARACHI: High dollar demand for external payments, depleting foreign exchange reserves and the rising oil prices in the international market are likely to keep the Pakistani rupee under pressure, experts said. However, they brushed off speculation that the rupee may fall to 200 against the dollar. “The Federal Board of Revenue (FBR) had issued notices … Read more

Emerging economies and Fed tightening

economies

WASHINGTON: For most of last year, investors priced in a temporary rise in inflation in the United States given the unsteady economic recovery and a slow unravelling of supply bottlenecks. Now sentiment has shifted. Prices are rising at the fastest pace in almost four decades and the tight labor market has started to feed into … Read more

Facing questions on trades, Fed vice chair to leave early

Fed

NEW YORK: Federal Reserve vice chair Richard Clarida announced on Monday he will exit the US central bank early; following questions over his equity trading activity early in the Covid-19 pandemic. Clarida, whose term on the Board of Governors was set to expire on January 31, will instead resign on January 14. He gave no explanation … Read more

IMF warns developing countries of ‘economic turbulence’

IMF

WASHINGTON: Emerging economies should gird for possible rough times as the US Federal Reserve prepares to raise interest rates and world economic growth slows because of the Omicron variant of Covid-19, the IMF warned on Monday. The International Monetary Fund, which is scheduled to release updated economic forecasts on January 25, said that for now global … Read more