Dawn Editorials 19th September 2025

Farm income tax

SINDH Chief Minister Murad Ali Shah’s call for a ‘review’ of agricultural taxation to help relieve the burden on farmers affected by the ongoing floods is understandable. Thousands of farmers, particularly smallholders, across Punjab and Sindh have seen their crops destroyed, livestock swept away, livelihoods lost and homes collapse. In such circumstances, taxing them would deepen their misery. Tax relief for the affected farmers is not only justified, it is also necessary to help them recover. However, Mr Shah did not elaborate much on his comments, and it remains unclear whether he was talking only about temporary tax waivers or long-term exemptions, too. Neither was it clear whether he was suggesting an across-the-board waiver or relief only for the disaster-hit areas.

These distinctions matter because of the reluctance traditionally shown by provincial governments to tax agricultural income fearing the loss of political support from powerful landowners. The farm sector constitutes nearly a quarter of the economy. But its contribution to tax revenues is negligible. It was only under IMF pressure that the provinces amended their agriculture income tax laws to align them with the federal personal and corporate tax regimes. The willingness to implement the law to collect the levy is still to be tested. While immediate tax concessions are warranted in the flood-hit areas, the consequences of using the deluge as an excuse to give waivers to those who have escaped the flood devastation or to reverse the progress on agricultural income tax would negatively impact efforts to reform the inequitable tax system. For decades, large landowners have hidden behind the plight of smallholder farmers to avoid paying income tax. The result is an unjust system where the salaried and compliant corporate sectors carry the major tax burden to create resources for running the state. Equity demands that everyone pays their tax dues irrespective of the source of their income when it crosses the minimum exemption threshold.

Published in Dawn, September 19th, 2025

Security concerns

PAKISTAN’S intimation to the UN Security Council that terrorist outfits operating from sanctuaries inside Afghanistan now pose “the gravest threat” to its national security should not be viewed as a bilateral matter, but a timely warning on the resurgent threat of terrorism and militancy that could eventually spill over to the wider region. Pakistan has specifically sought stronger international action against various violent actors that have been utilising both physical and digital means to target the country from “more than 60 […] terrorist camps” in Afghanistan, which are “serving as hubs for enabling cross-border infiltration and attacks”. More alarmingly, Pakistani authorities now have evidence that terrorist entities like the IS-K, Al Qaeda, TTP, ETIM and BLA have been collaborating in areas like “joint training, illicit weapons trade, [providing] refuge to terrorists, and coordinated attacks — all aimed at targeting civilian and law-enforcement agencies and disrupting and sabotaging infrastructure and development projects in Pakistan”. This is a deeply worrying development: disparate terrorist outfits cannot be allowed to reorganise as a unified threat that could potentially become a bigger problem for the region.

It is, therefore, hoped that Pakistan’s warning has not fallen on deaf ears. It is also commendable that Pakistan seems to have consciously avoided antagonising the Taliban regime in Afghanistan while raising this matter at the UNSC forum. For context, UN Ambassador Asim Iftikhar Ahmed’s statement began with a long preamble about the challenges being faced by the Afghan people and the world’s obligation to help them find solutions. In particular, the representative was careful to point out that Afghanistan’s problems stem “not only from Taliban policies and the country’s turbulent history but also from shifting global priorities, lack of unity and slow response of the international community” when it came to addressing the country’s needs. It is hoped that the Taliban regime keeps this genuine concern for the Afghan people in perspective when engaging with Pakistan on security-related matters. The onus is on the Kabul regime to prevent cross-border attacks against Pakistan. It must realise that it is in its own interests that all problematic elements are brought under control. It makes no sense for the two countries to be at odds over this matter, especially when Islamabad seems genuinely concerned about the challenges being faced next door.

Published in Dawn, September 19th, 2025

Saudi defence pact

THE signing of the Strategic Mutual Defence Agreement between Pakistan and Saudi Arabia in Riyadh on Wednesday is indeed a significant development for both states.

Though defence ties between Islamabad and Riyadh go back to at least the 1960s, and Pakistani troops have been stationed in the kingdom during various periods, the fresh pact strengthens earlier agreements, and most importantly, reiterates the principle that “aggression against either country shall be considered aggression against both”.

While the defence deal was reportedly being discussed over the past few years, timing is everything, and the fact that it was inked mere days after the Israeli attack on Qatar has not gone unnoticed globally. The Gulf Arabs, including Saudi Arabia, have seemingly come to the realisation that despite their deep ties with the US, America is unlikely to come to their defence. Hence they are now exploring other options. Pakistan, which maintains excellent ties with the Gulf monarchies, and which has a battle-tested military, appears to be a natural partner.

However, some questions remain. For one, the situation in the subcontinent remains volatile. While the Saudis may have friendly ties with New Delhi, will Riyadh help defend Pakistan if India attacks this country again? These queries need clear answers, especially when India has refused to rule out further aggression against Pakistan. Reacting to the development, the Indian external affairs ministry has said it is “[studying] the implications” of the deal.

Yet the importance of the Pak-Saudi defence pact cannot be overstated, and it is without doubt a diplomatic and geopolitical victory for Pakistan. Hopefully, the pact will deepen the already cordial ties between both states.

It is also possible that other Gulf states may sign similar pacts with Pakistan in future. While bilateral defence ties should be pursued by Pakistan, looking at the bigger picture, especially where the collective security of the wider Middle East is concerned, there is still a void.

Here, the Islamic Military Counter Terrorism Coalition, founded in 2015 and headed by former army chief Raheel Sharif, can be repurposed for collective defence of the Muslim world. Currently, the 43-member body is underutilised. If it were expanded to include Iran and other Muslim states not currently members, it could send a strong message to Israel, which is arguably the biggest current security threat to the Palestinians as well as the larger Muslim and Arab world. Redefining the coalition’s aims could help end the genocide in Gaza, and prevent further attacks by the Zionist state on regional countries.

The infrastructure of a ‘Muslim Nato’ already exists; all that remains is opening its doors to all Muslim states, and strengthening mutual defence capabilities. Such a coalition could also serve as a warning to states hostile to Pakistan to think twice before launching further attacks.

Published in Dawn, September 19th, 2025