SC rules in favor of FBR, rejects input tax adjustment claim on construction materials


Islamabad: The Supreme Court of Pakistan has ruled that claims for input tax adjustment on construction materials, such as cement and steel used in the construction of factories or other immovable structures, are not admissible under the Sales Tax Act, 1990.



The court further emphasized that mandatory legal requirements, particularly those concerning banking channels and the deposit of tax into the national exchequer, could not be overlooked.



A three-member bench, comprising Chief Justice Yahya Afridi, Justice Irfan Saadat Khan, and Justice Shakeel Ahmed, accepted the civil appeal (No. 939/2018) filed by the Commissioner Inland Revenue. The court set aside the decisions of the Sindh High Court and the Appellate Tribunal Inland Revenue (ATIR), effectively restoring the original order of the tax department. The judgment was reserved on July 7, 2026.



The court declared that the input tax adjustment claim on cement and steel filed by Bawany Sugar Mills for the period of July to December 2013 was in violation of the law and relevant SROs.



Furthermore, essential legal requirements, including payments through banking channels, the submission of tax by the supplier, and the provision of required records, had not been fulfilled.



The Supreme Court clarified that a concession made by any government representative or lawyer on a point of law was not binding on the court, as there could be no estoppel against the law. It was the court’s responsibility to ensure the correct interpretation of the law. The verdict noted that the issues in this case were not merely matters of fact but involved significant questions of legal interpretation; therefore, the High Court and the ATIR erred by treating them solely as factual disputes.



Zawiya, Akhuwat Foundation host launch of Dr Amjad Saqib’s book Moloo Musalli at PAL


Islamabad: The literary and cultural organization Zawiya, in collaboration with the Akhuwat Foundation, hosted the launching ceremony of Moloo Musalli, a new book by renowned social worker, humanitarian, author and founder of the Akhuwat Foundation, Dr. Muhammad Amjad Saqib, at the Pakistan Academy of Letters (PAL) on Friday.



The ceremony was held at the Conference Hall of the PAL and was attended by prominent literary figures, scholars, writers and book lovers from Rawalpindi and Islamabad.



Renowned poet and literary icon Iftikhar Arif presided over the event, while PAL Chairperson Dr. Najeeba Arif and eminent poet and columnist Muhammad Izhar-ul-Haq attended as chief guests.



Director General of the National Language Promotion Department (NLPD), Prof. Dr. Muhammad Saleem Mazhar, was the guest of honour.



Speaking on the occasion, noted poet Harris Khalique and literary scholar Dr. Humaira Ashfaq highlighted the literary and social significance of Moloo Musalli. They described the book as a moving portrayal of the lives of people affected by poverty, deprivation and injustice, while emphasizing its powerful message of humanity, compassion and social responsibility.



The speakers lauded Dr. Amjad Saqib’s contribution not only as a humanitarian and social reformer but also as a writer whose work reflects the struggles, resilience and dignity of marginalized communities.



They termed Moloo Musalli a valuable addition to contemporary Urdu literature, saying it reflects human values and social realities while encouraging readers to develop empathy and a deeper understanding of the challenges faced by the underprivileged.



Finance minister reviews progress on implementation of National Faceless Centre


Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb here on Friday chaired a meeting to review the implementation roadmap and operational readiness of the Federal Board of Revenue’s (FBR) National Faceless Centre, a key initiative under the new Tax Operating Model aimed at establishing a technology-enabled, centralized, and transparent framework for tax administration.



The meeting received a detailed briefing on the implementation roadmap, including the establishment of the Project Management Unit (PMU), governance arrangements, technology development, operational preparedness, and the phased rollout strategy.



Participants also outlined the key milestones identified for the pre-pilot, pilot, and implementation phases to ensure timely execution of the project, said a press release issued by finance ministry.



Aurangzeb appreciated the progress made in establishing the Project Management Unit and emphasized that effective coordination between operational and technology teams would be critical for successful implementation.



He noted that the National Faceless Centre represents an important reform initiative to modernize tax administration through greater digitalization, standardization, and transparency.



The meeting reviewed the governance framework supporting the new operating model, including institutional arrangements for project oversight, risk management, and implementation monitoring.



Participants also briefed the meeting on the development of the risk engine and the progress made in defining rules-based case selection for the faceless system.



The finance minister emphasized the importance of a carefully designed pilot phase to validate the new operating model before its nationwide rollout.



He underscored the need to ensure operational readiness, identify implementation challenges at an early stage, and incorporate lessons learned to support a smooth transition to the new system.



Participants also discussed progress on technology development, business requirements, digital infrastructure, and system integration required for the National Faceless Centre. The meeting was informed that an agile implementation approach is being adopted to enable continuous collaboration between business and technology teams throughout the development process.



Recognizing the importance of protecting digital infrastructure, Senator Muhammad Aurangzeb emphasized that information security and data governance should remain integral to the implementation process.



He underscored the need for continued investment in cybersecurity capabilities and secure digital infrastructure to safeguard taxpayer information and support the long-term sustainability of the new operating model.



The finance minister also called for regular progress reviews to closely monitor implementation milestones, address emerging challenges in a timely manner, and ensure that the project remains on schedule.



He reaffirmed the Government’s commitment to supporting the successful implementation of this important tax administration reform.



IHC seeks reports from ICT Officials in Shisha Cafes, HIV case


Islamabad: The Islamabad High Court (IHC) has directed the Chief Commissioner, Deputy Commissioner, Inspector General of Islamabad Police and other respondents to submit their reports and para-wise comments within seven days in a case concerning the operation of shisha cafes and the reported increase in HIV cases in the federal capital.



Chief Justice Sardar Muhammad Sarfraz Dogar issued a two-page written order on a petition filed by citizen Abdul Jabbar.



According to the order, the petitioner’s counsel submitted that a large number of shisha cafes were operating within Islamabad, with some functioning after obtaining no-objection certificates (NOCs) while others were operating without the required approvals.



The counsel further argued that shisha cafes were contributing to the spread of HIV and other diseases and alleged that the relevant authorities had failed to take action against establishments violating the applicable rules and regulations.



Issuing notices to the respondents, the court directed the Chief Commissioner, Deputy Commissioner, Inspector General of Police and other concerned authorities to file their reports and para-wise comments within seven days.



The court also ordered the Deputy Commissioner and the Inspector General of Islamabad Police to appear in person at the next hearing.



The written order further directed that a copy of the petition be provided to the law officer, who was instructed to ensure compliance with the court’s directions and assist the court during the next hearing.



The case was adjourned until September 9.



Haroon Akhtar invites Chinese companies for joint innovation, manufacturing


Islamabad: Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan on Friday invited Chinese companies to not only invest in Pakistan but also innovate, manufacture and grow together.



Addressing the Pakistan-China Pharmaceutical and Healthcare Business-to-Business (B2B) Investment Conference, Haroon Akhtar said Pakistan envisioned a new era of cooperation with China where both countries would jointly advance science, strengthen healthcare, create opportunities and improve the lives of millions of people.



He said every great nation was transformed by leaders who refused to accept the limits of the present and possessed the courage to shape the future by turning vision into action and ambition into national progress.



Paying tribute to Prime Minister Muhammad Shehbaz Sharif, the SAPM said Pakistan was fortunate to have visionary leadership that consistently encouraged institutions to think bigger, move faster and compete globally.



He said the prime minister had made it clear that Pakistan could not achieve sustainable prosperity by following outdated models and must instead embrace innovation, strengthen its industrial base, invest in science and technology, and build partnerships capable of unlocking the country’s full potential.



Haroon Akhtar said Pakistan was determined not merely to participate in the industries of the future but to help shape them. He added that the prime minister’s recent visit to China had opened a new chapter in Pakistan-China economic cooperation by creating fresh opportunities for investment, technology transfer and industrial collaboration.



He said the prime minister’s emphasis on implementation reflected true leadership, adding that success should be measured not by the agreements signed but by the transformation delivered.



Highlighting China’s remarkable development, Haroon Akhtar described the country’s transformation as one of the defining development stories of modern times, driven by visionary leadership, long-term planning and relentless innovation in pharmaceuticals, biotechnology, advanced manufacturing and healthcare.



He said Pakistan greatly valued China’s experience and looked forward to expanding cooperation in research, technology transfer, innovation and high-value manufacturing.



The SAPM said the government was creating an investment-friendly environment through the National Industrial Policy, National Tariff Policy and the Regulatory Guillotine Initiative to strengthen industrial competitiveness, simplify regulations and make Pakistan a more attractive destination for investors.



“Our objective is simple-less bureaucracy, more facilitation; less complexity and more competitiveness,” he said.



Haroon Akhtar said healthcare had become one of the world’s most important drivers of innovation, industrial growth and economic resilience, while the COVID-19 pandemic had underscored that the ability to produce medicines, vaccines and medical technologies was a strategic necessity.



He said Pakistan had therefore placed pharmaceuticals, biotechnology and vaccine manufacturing among its highest industrial priorities, adding that the National Vaccine Policy would strengthen local manufacturing, promote technology transfer, encourage research collaboration and help build a resilient healthcare ecosystem capable of serving Pakistan and the wider region.



Court rejects bail of 4 suspects in human organ trade case


Islamabad: The District and Sessions Court of Islamabad on Friday rejected the post-arrest bail applications of four suspects accused in a case involving the illegal trade of human organs and human placenta.



The court ruled that the available evidence points to a serious offence and does not justify granting bail at this stage.



According to a written order issued by Additional Sessions Judge Muhammad Afzal Majoka, the bail pleas of Muhammad Waqas, Li Ganglei, Wang Bao, and Pengfei Gaowere dismissed in connection with an ongoing investigation by the Federal Investigation Agency (FIA).



The court noted that FIA officials conducted a raid in Islamabad and recovered human organs along with a large quantity of placenta. Investigators stated that placenta is commonly used in the production of creams, anti-aging products, and injectable materials used in plastic surgery procedures.



The written judgment said that a forensic examination confirmed the presence of human DNA in the seized placenta. The court observed that placenta is a part of the human body and that its unauthorized sale and purchase constitutes a serious criminal offence under the law.



Judge Majoka further stated that the recovery of a substantial quantity of placenta raises concerns about possible illegal activities linked to the handling and trade of human biological material. The court held that the evidence collected so far establishes a prima facie case against the accused.



The order emphasized that the nature of the allegations, the forensic findings, and the quantity of material recovered make the case serious. As a result, the court concluded that the accused were not entitled to post-arrest bail.



The FIA investigation into the alleged illegal trade of human organs and related biological material remains underway, while the suspects will continue to remain in custody as legal proceedings move forward.