PARCO, Cnergyico lead $1bn refinery exports

The Federal Constitutional Court has issued an important ruling in favour of corporate taxpayers. The court has declared the adjustment of tax credits against super tax legally valid. It has also overturned an earlier decision of the Islamabad High Court. Justice Amir Farooq authored the six-page detailed judgment. The court accepted the appeals filed by a private mobile phone company. The case relates to the adjustment of tax credits against super tax. The company had challenged a demand raised by the Federal Board of Revenue (FBR). The FBR had issued a notice to the private company. The notice required the company to pay super tax. The company approached the Islamabad High Court after receiving the notice. It argued that its available tax credit should be allowed to adjust against the super tax liability. The Islamabad High Court rejected the company’s petition. The company then challenged that decision before the Federal Constitutional Court. The Federal Constitutional Court has now accepted the company’s appeals. It has declared that tax credits available to a taxpayer can be adjusted against super tax. The court referred to the relevant provisions of the tax law. It observed that the tax credit available under Section 168 is a separate and legally recognised right. According to the judgment, a taxpayer should not be prevented from using this credit for adjustment. The court said forcing a taxpayer to seek only a refund would not be consistent with the intention of the law. The judgment also addressed the interpretation of financial and tax laws. The court observed that such laws should be interpreted in a manner that facilitates taxpayers. The court emphasised that taxpayers should be able to exercise rights provided to them under the law. A legal right to a tax credit cannot be unnecessarily restricted through an interpretation that creates additional difficulties for taxpayers. The court also issued directions to the FBR. The FBR has been directed to examine the taxpayer’s claim for adjustment. The department must consider the claim in response to the tax notice. The FBR will now have to decide the matter according to the applicable law and the court’s ruling. The judgment provides an important clarification for corporate taxpayers. It establishes that an eligible tax credit can be considered for adjustment against a super tax liability. The ruling may also have wider implications for companies facing similar tax demands. Businesses with legally available tax credits may now rely on the court’s interpretation when seeking adjustments against their tax liabilities. By setting aside the Islamabad High Court’s decision, the Federal Constitutional Court has clarified the legal position on the issue. The case also highlights the continuing dispute between taxpayers and the FBR over the interpretation and application of tax laws.

Deputy Prime Minister and Foreign Minister Ishaq Dar held important diplomatic meetings in Manila during the ASEAN Regional Forum 2026, discussing regional security, global developments, and ways to strengthen Pakistan’s relations with other countries. Dar met Australian Foreign Minister Senator Penny Wong and reviewed the current state of Pakistan-Australia relations. Both sides agreed to further expand cooperation through regular high-level contacts and closer engagement. The two foreign ministers also discussed recent regional tensions and international challenges. They stressed that dialogue, diplomacy, and respect for international law are essential for achieving long-term peace and stability. Australia appreciated Pakistan’s efforts to support dialogue and reduce tensions in the region. Both countries agreed to continue cooperation on matters of mutual interest. During another meeting, Dar held talks with Oman’s Foreign Minister Sayyid Badr bin Hamad Al Busaidi. The two leaders expressed satisfaction over the positive progress in Pakistan-Oman relations and agreed to strengthen bilateral cooperation. The discussions focused on increasing trade, promoting investment, improving business-to-business links, expanding people-to-people contacts, and enhancing cooperation through international forums. Both sides also exchanged views on regional and global developments. They emphasised the need to uphold ceasefires, respect international law, and work together to promote peace and security. Oman praised Pakistan’s constructive role in encouraging dialogue and supporting regional stability. The two ministers agreed to remain in close communication on important issues. Earlier in Manila, Dar also met senior officials of the Asian Development Bank and called for faster progress on financing for Pakistan’s Main Line-1 railway project. He highlighted the long-standing partnership between Pakistan and the development institution and discussed expanding cooperation in different sectors. Dar also held separate meetings with Russian Foreign Minister Sergei Lavrov and Bangladesh Foreign Minister Khalilur Rehman. The discussions covered bilateral relations, trade, energy cooperation, connectivity, and future diplomatic engagement. The ASEAN Regional Forum has brought together foreign ministers and senior officials from several countries to discuss major global and regional challenges, including security issues, energy supplies, trade, food security, and ongoing conflicts.