"\u003chtml xmlns:v=\"urn:schemas-microsoft-com:vml\"\r\nxmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1252\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 11\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 11\"\u003e\r\n\u003clink rel=File-List href=\"2014J25_files/filelist.xml\"\u003e\r\n\u003clink rel=Edit-Time-Data href=\"2014J25_files/editdata.mso\"\u003e\r\n\u003c!--[if !mso]\u003e\r\n\u003cstyle\u003e\r\nv\\:* {behavior:url(#default#VML);}\r\no\\:* {behavior:url(#default#VML);}\r\nw\\:* {behavior:url(#default#VML);}\r\n.shape {behavior:url(#default#VML);}\r\n\u003c/style\u003e\r\n\u003c![endif]--\u003e\r\n\u003ctitle\u003eASSESSMENT OF INCOME TAX EXPENDITURES\u003c/title\u003e\r\n\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:DocumentProperties\u003e\r\n  \u003co:Author\u003eMaher RDX\u003c/o:Author\u003e\r\n  \u003co:Template\u003eNormal\u003c/o:Template\u003e\r\n  \u003co:LastAuthor\u003eOratier\u003c/o:LastAuthor\u003e\r\n  \u003co:Revision\u003e2\u003c/o:Revision\u003e\r\n  \u003co:TotalTime\u003e0\u003c/o:TotalTime\u003e\r\n  \u003co:Created\u003e2015-01-12T13:22:00Z\u003c/o:Created\u003e\r\n  \u003co:LastSaved\u003e2015-01-12T13:22:00Z\u003c/o:LastSaved\u003e\r\n  \u003co:Pages\u003e3\u003c/o:Pages\u003e\r\n  \u003co:Words\u003e5251\u003c/o:Words\u003e\r\n  \u003co:Characters\u003e29933\u003c/o:Characters\u003e\r\n  \u003co:Lines\u003e249\u003c/o:Lines\u003e\r\n  \u003co:Paragraphs\u003e70\u003c/o:Paragraphs\u003e\r\n  \u003co:CharactersWithSpaces\u003e35114\u003c/o:CharactersWithSpaces\u003e\r\n  \u003co:Version\u003e11.5606\u003c/o:Version\u003e\r\n \u003c/o:DocumentProperties\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003cw:WordDocument\u003e\r\n  \u003cw:PunctuationKerning/\u003e\r\n  \u003cw:ValidateAgainstSchemas/\u003e\r\n  \u003cw:SaveIfXMLInvalid\u003efalse\u003c/w:SaveIfXMLInvalid\u003e\r\n  \u003cw:IgnoreMixedContent\u003efalse\u003c/w:IgnoreMixedContent\u003e\r\n  \u003cw:AlwaysShowPlaceholderText\u003efalse\u003c/w:AlwaysShowPlaceholderText\u003e\r\n  \u003cw:Compatibility\u003e\r\n   \u003cw:BreakWrappedTables/\u003e\r\n   \u003cw:SnapToGridInCell/\u003e\r\n   \u003cw:WrapTextWithPunct/\u003e\r\n   \u003cw:UseAsianBreakRules/\u003e\r\n   \u003cw:DontGrowAutofit/\u003e\r\n  \u003c/w:Compatibility\u003e\r\n \u003c/w:WordDocument\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003cw:LatentStyles DefLockedState=\"false\" LatentStyleCount=\"156\"\u003e\r\n \u003c/w:LatentStyles\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\r\n\u003cstyle\u003e\r\n\u003c!--\r\n /* Font Definitions */\r\n @font-face\r\n\t{font-family:Wingdings;\r\n\tpanose-1:5 0 0 0 0 0 0 0 0 0;\r\n\tmso-font-charset:2;\r\n\tmso-generic-font-family:auto;\r\n\tmso-font-pitch:variable;\r\n\tmso-font-signature:0 268435456 0 0 -2147483648 0;}\r\n@font-face\r\n\t{font-family:Calibri;\r\n\tmso-font-charset:0;\r\n\tmso-generic-font-family:swiss;\r\n\tmso-font-pitch:variable;\r\n\tmso-font-signature:-536870145 1073786111 1 0 415 0;}\r\n /* Style Definitions */\r\n p.MsoNormal, li.MsoNormal, div.MsoNormal\r\n\t{mso-style-parent:\"\";\r\n\tmargin-top:0in;\r\n\tmargin-right:0in;\r\n\tmargin-bottom:10.0pt;\r\n\tmargin-left:0in;\r\n\tline-height:115%;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:11.0pt;\r\n\tfont-family:Calibri;\r\n\tmso-fareast-font-family:\"Times New Roman\";\r\n\tmso-bidi-font-family:\"Times New Roman\";}\r\na:link, span.MsoHyperlink\r\n\t{color:blue;\r\n\ttext-decoration:underline;\r\n\ttext-underline:single;}\r\na:visited, span.MsoHyperlinkFollowed\r\n\t{color:purple;\r\n\ttext-decoration:underline;\r\n\ttext-underline:single;}\r\np.Style2, li.Style2, div.Style2\r\n\t{mso-style-name:\"Style 2\";\r\n\tmargin-top:5.4pt;\r\n\tmargin-right:0in;\r\n\tmargin-bottom:0in;\r\n\tmargin-left:.2in;\r\n\tmargin-bottom:.0001pt;\r\n\tline-height:130%;\r\n\tmso-pagination:none;\r\n\ttext-autospace:none;\r\n\tfont-size:10.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\np.Style4, li.Style4, div.Style4\r\n\t{mso-style-name:\"Style 4\";\r\n\tmargin-top:.1in;\r\n\tmargin-right:.05in;\r\n\tmargin-bottom:0in;\r\n\tmargin-left:.45in;\r\n\tmargin-bottom:.0001pt;\r\n\ttext-align:justify;\r\n\tmso-pagination:none;\r\n\ttext-autospace:none;\r\n\tfont-size:10.5pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\nspan.CharacterStyle1\r\n\t{mso-style-name:\"Character Style 1\";\r\n\tmso-style-parent:\"\";\r\n\tmso-ansi-font-size:10.0pt;\r\n\tmso-bidi-font-size:10.0pt;}\r\nspan.CharacterStyle3\r\n\t{mso-style-name:\"Character Style 3\";\r\n\tmso-style-parent:\"\";\r\n\tmso-ansi-font-size:10.5pt;\r\n\tmso-bidi-font-size:10.5pt;}\r\np.ListParagraph, li.ListParagraph, div.ListParagraph\r\n\t{mso-style-name:\"List Paragraph\";\r\n\tmargin-top:0in;\r\n\tmargin-right:0in;\r\n\tmargin-bottom:0in;\r\n\tmargin-left:.5in;\r\n\tmargin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:12.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\n@page Section1\r\n\t{size:8.5in 11.0in;\r\n\tmargin:1.0in 1.0in 1.0in 1.0in;\r\n\tmso-header-margin:.5in;\r\n\tmso-footer-margin:.5in;\r\n\tmso-paper-source:0;}\r\ndiv.Section1\r\n\t{page:Section1;}\r\n /* List Definitions */\r\n @list l0\r\n\t{mso-list-id:204416833;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:918060554 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l0:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l1\r\n\t{mso-list-id:206798258;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-404447996 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l1:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l2\r\n\t{mso-list-id:274487994;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-831355504 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l2:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l3\r\n\t{mso-list-id:304895828;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:227200980 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l3:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l4\r\n\t{mso-list-id:408506572;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-294737728 67698703 67698713 67698715 67698703 67698713 67698715 67698703 67698713 67698715;}\r\n@list l4:level1\r\n\t{mso-level-tab-stop:none;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;}\r\n@list l5\r\n\t{mso-list-id:512455416;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-572106232 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l5:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l6\r\n\t{mso-list-id:873424024;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-329581754 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l6:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l7\r\n\t{mso-list-id:907499345;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:735839488 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l7:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l8\r\n\t{mso-list-id:1091972982;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-30103604 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l8:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l9\r\n\t{mso-list-id:1388339827;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:1718259186 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l9:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l10\r\n\t{mso-list-id:1459058637;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-1352389848 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l10:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l11\r\n\t{mso-list-id:1569149411;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:1479052332 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l11:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l12\r\n\t{mso-list-id:1610045837;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-2004089604 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l12:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l13\r\n\t{mso-list-id:1618441039;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-765821444 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l13:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l14\r\n\t{mso-list-id:1739860462;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-1909193640 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l14:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l15\r\n\t{mso-list-id:1904366980;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-556526368 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l15:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\n@list l16\r\n\t{mso-list-id:2003849517;\r\n\tmso-list-type:hybrid;\r\n\tmso-list-template-ids:-745012778 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}\r\n@list l16:level1\r\n\t{mso-level-number-format:bullet;\r\n\tmso-level-text:\\F0B7;\r\n\tmso-level-tab-stop:.5in;\r\n\tmso-level-number-position:left;\r\n\ttext-indent:-.25in;\r\n\tfont-family:Symbol;}\r\nol\r\n\t{margin-bottom:0in;}\r\nul\r\n\t{margin-bottom:0in;}\r\n--\u003e\r\n\u003c/style\u003e\r\n\u003c!--[if gte mso 10]\u003e\r\n\u003cstyle\u003e\r\n /* Style Definitions */\r\n table.MsoNormalTable\r\n\t{mso-style-name:\"Table Normal\";\r\n\tmso-tstyle-rowband-size:0;\r\n\tmso-tstyle-colband-size:0;\r\n\tmso-style-noshow:yes;\r\n\tmso-style-parent:\"\";\r\n\tmso-padding-alt:0in 5.4pt 0in 5.4pt;\r\n\tmso-para-margin:0in;\r\n\tmso-para-margin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:10.0pt;\r\n\tfont-family:Calibri;\r\n\tmso-ansi-language:#0400;\r\n\tmso-fareast-language:#0400;\r\n\tmso-bidi-language:#0400;}\r\n\u003c/style\u003e\r\n\u003c![endif]--\u003e\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:shapedefaults v:ext=\"edit\" spidmax=\"3074\"/\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:shapelayout v:ext=\"edit\"\u003e\r\n  \u003co:idmap v:ext=\"edit\" data=\"1\"/\u003e\r\n \u003c/o:shapelayout\u003e\u003c/xml\u003e\u003c![endif]--\u003e\r\n\u003c/head\u003e\r\n\r\n\u003cbody lang=EN-US link=blue vlink=purple style=\u0027tab-interval:.5in\u0027\u003e\r\n\r\n\u003cdiv class=Section1\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003eASSESSMENT OF INCOME TAX EXPENDITURES\u003cbr\u003e\r\nIN PAKISTAN\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eBy\u003cbr style=\u0027mso-special-character:\r\nline-break\u0027\u003e\r\n\u003c![if !supportLineBreakNewLine]\u003e\u003cbr style=\u0027mso-special-character:line-break\u0027\u003e\r\n\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt;\r\nmso-bidi-font-style:italic\u0027\u003eBilal Hassan\u003csup\u003e1\u003c/sup\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eIn recent times, tax\r\nexpenditures have widely been criticized as \u003cspan style=\u0027letter-spacing:-.15pt\u0027\u003eineffective\r\nand inefficient policy instruments,-lobbying by special interest \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003egroups in Pakistan. In this article, the author\r\nreviews the economic \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003esituation of\r\nPakistan and revisits the structure of income tax law with a \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003efocus on income tax expenditures over the period\r\nof 2007/08 to 2011/12. \u003c/span\u003eAfter presenting major beneficiaries of tax\r\nexemptions, reduced tax rates \u003cspan style=\u0027letter-spacing:-.15pt\u0027\u003eand reduced\r\ntax liability under the income tax code, tax expenditures are \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003ediscussed from tax policy and economic efficiency\r\npoint of view. In \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003econclusion, income\r\ntax expenditures are proved to be an important \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003econtributing factor to lower tax-to-GDP ratio, enhancing tax evasion, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003epromoting horizontal inequalities and causing\r\neconomic inefficiency in \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003ePakistan and\r\ntherefore, require to be rationalized, in particular in the \u003c/span\u003ewake of\r\nincreasing budget deficits.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.6pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.6pt\u0027\u003e1. Introduction\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003ePakistan\r\nhas been facing serious economic problems since \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e2007/08 as the fiscal\r\ndeficits are ballooning and the tax revenues as \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003epercent of GDP are\r\nmore or less stagnating. In 2011/12, the fiscal deficit \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003ewas\r\n8.6%, ever highest since 1960s\u003csup\u003e2\u003c/sup\u003e. Consequent upon, the State Bank \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003eof\r\nPakistan (SBP) has issued warning that this fiscal deficit is not \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003esustainable\r\nand can push the country towards a debt trap as the public \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003edebt-to-GDP\r\nratio has reached 62.6% in 2011/12.\u003csup\u003e3\u003c/sup\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eFederal\r\ntax revenue remains the most important source for the government to balance the\r\nbudget. However, tax revenue collection fell \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eshort of targets\r\nevery year, lead to higher budget deficit. For instance, \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eagainst\r\nthe target of PKR 1951.7 billion for 2011/12, the Federal Board \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eof\r\nRevenue (FBR) collected PKR 188r.5 billion, indicated a shortfall of \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003ePKR\r\n70.2 billion. Sources of federal tax revenue include income tax, \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003esales\r\ntax, federal excise duty and customs duty.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.9pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.9pt\u0027\u003eThe\r\ntax-to-GDP ratio was 9.1% in 2011/12, which was \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003eimproved from 8.6%\r\nin the previous year. However, Pakistan tax-to  \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.6pt\u0027\u003eGDP ratio is lowest among\r\nsimilar economies of the world and is \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003eattributable to many\r\nreasons. One most important reason is the loss of \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.85pt\u0027\u003etax\r\nrevenue mainly caused by \u0026quot;tax expenditures\u0026quot; (exemptions, \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003econcessions,\r\nreduced rates). For instance, the amount of tax exemptions \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003eexceeded\r\nthe loans acquired from International Monetary Fund (IMF) \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eover\r\nthe period of 2007/08 to 2011/12, as the government took loans of \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003ePKR\r\n604 billion from the IMF and granted tax exemptions amounting to \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003ePKR\r\n719 billion.\u003csup\u003e4\u003c/sup\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eIn\r\nrecent times, tax expenditures have widely been criticized as \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003eineffective\r\nand inefficient policy instruments, lobbying by special interest \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003egroups\r\nin Pakistan.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eThe\r\nestimated loss of revenue due to income tax and sales tax \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eexpenditures\r\nwas PKR 298.046 billion between 2008/09 to 2011/12. \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eLoss\r\nof revenue due to waiver off customs duty through the Statutory \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eRegulatory\r\nOrders (SROs) stood at PKR 420.72 billion during that \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eperiod.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003eSo\r\nwhopping exemptions gives rise to the question of who are \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003ethe\r\nmain beneficiaries of those exemptions and what are the effects of the \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eexemptions\r\non the economy.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\nletter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.45pt\u0027\u003e2. Major Income Tax Expenditures in\r\nPakistan\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eIncome\r\ntax code of Pakistan provides a list of incomes, which \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eeither\r\nhas been exempted fully from tax or subject to concessional tax \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003erates\u003csup\u003e5\u003c/sup\u003e.\r\nIn addition, there are taxpayers whose tax liability is reduced \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eunder\r\nthe income tax code. Moreover, certain incomes are exempt from \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003ethe\r\noperation of specified provision of the income tax law. The cost of \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003eexemptions,\r\nexclusions, subtractions, deductions, rebates and credits \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eetc.,\r\nunder the income tax code is presented in table 1. The average \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eannual\r\nloss of income tax revenue on account of income tax expenditures over the\r\nperiod of 2007/08 to 2011/12 has been estimated at PKR 46.163 \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003ebillion\r\nwith a peak of PKR 69.608 billion in 2011/12.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.35pt\u0027\u003eTable-1: Income Tax Expenditures for\r\nthe period of 2007/2008 to \u003c/span\u003e\u003c/b\u003e\u003cb style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e2011/12\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.1pt\u0027\u003e(PKR in Billion)\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003ctable class=MsoNormalTable border=1 cellspacing=0 cellpadding=0\r\n style=\u0027border-collapse:collapse;border:none;mso-border-alt:solid windowtext .5pt;\r\n mso-yfti-tbllook:1184;mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-border-insideh:\r\n .5pt solid windowtext;mso-border-insidev:.5pt solid windowtext\u0027\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:0;mso-yfti-firstrow:yes\u0027\u003e\r\n  \u003ctd valign=top style=\u0027border:solid windowtext 1.0pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eTax\r\n  Expenditure Items\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border:solid windowtext 1.0pt;border-left:none;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e2007/08\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border:solid windowtext 1.0pt;border-left:none;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n  -.3pt\u0027\u003e2008/09\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border:solid windowtext 1.0pt;border-left:none;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  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mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;text-align:justify;line-height:normal;mso-pagination:\r\n  none;text-autospace:none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e%\r\n  of total tax revenue\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  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0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;text-align:justify;line-height:normal;mso-pagination:\r\n  none;text-autospace:none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.0\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;text-align:justify;line-height:normal;mso-pagination:\r\n  none;text-autospace:none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times 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1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;text-align:justify;line-height:normal;mso-pagination:\r\n  none;text-autospace:none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e7.5\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  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0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;text-align:justify;line-height:normal;mso-pagination:\r\n  none;text-autospace:none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.7\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:13;mso-yfti-lastrow:yes\u0027\u003e\r\n  \u003ctd valign=top style=\u0027border:solid windowtext 1.0pt;border-top:none;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n  -.3pt\u0027\u003e% of GDP\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e0.27\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e0.32\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e0.31\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e0.26\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd valign=top style=\u0027border-top:none;border-left:none;border-bottom:solid windowtext 1.0pt;\r\n  border-right:solid windowtext 1.0pt;mso-border-top-alt:solid windowtext .5pt;\r\n  mso-border-left-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027margin-top:5.4pt;margin-right:0in;margin-bottom:\r\n  10.0pt;margin-left:.2in;line-height:normal;mso-pagination:none;text-autospace:\r\n  none\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e0.34\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n\u003c/table\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eSource:\r\nEconomic Surveys of Pakistan 2007/08 to 2011/12, available at \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:blue;letter-spacing:\r\n-.05pt\u0027\u003ehttp://www.finance.gov.pk/survey_0809.html\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.55pt\u0027\u003e2. Beneficiaries of full Exemptions\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003eThe\r\nfollowing are the beneficiaries whose incomes are fully \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eexempt\r\nfrom tax.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.05pt;mso-bidi-font-style:italic\u0027\u003eRecipient of\r\nPensions and Gratuity\u003csup\u003e6\u003c/sup\u003e\u003c/span\u003e\u003c/b\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l6 level1 lfo1;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eany\r\n     citizen of Pakistan,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l6 level1 lfo1;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003emembers\r\n     of armed forces of Pakistan or employees of the\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.25pt\u0027\u003efederal government or a provincial government,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l6 level1 lfo1;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003edependents\r\n     of \u0026quot;Shaheeds\u0026quot;,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l6 level1 lfo1;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003ecommutation\r\n     of pension from government or under any pension\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\r\n     scheme approved by the FBR,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l6 level1 lfo1;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eany\r\n     amount received by a government employee on encashment\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.25pt\u0027\u003eof leave preparatory to retirement (LPR).\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eRecipient of Income from Funds\u003csup\u003e7\u003c/sup\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eAny\r\namount received by any person on account of \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l7 level1 lfo2;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eprovident fund, \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l7 level1 lfo2;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eaccumulated\r\n     balance of recognised provident fund,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l7 level1 lfo2;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003ebenevolent\r\n     fund,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l7 level1 lfo2;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eapproved\r\n     superannuation fund, and\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n     \"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l7 level1 lfo2;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eworkers\r\n     profit participation fund (WPPF)\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eBoards of Education, Universities\r\nand Computer Institutes etc.\u003csup\u003e8\u003c/sup\u003e\u003c/span\u003e\u003c/b\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eAny\r\nincome derived by\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l0 level1 lfo3;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003ethe\r\n     textbook boards,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n1.0pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l0 level1 lfo3;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eany\r\n     university or other educational institutions established solely\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.2pt\u0027\u003efor educational purposes,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l0 level1 lfo3;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eany\r\n     taxpayer from running of any computer training institute or\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.2pt\u0027\u003ecomputer training scheme,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l0 level1 lfo3;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eVocational,\r\n     technical or poly-technical institutes are exempt from\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.3pt\u0027\u003etax for a period of five years.\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.15pt;mso-bidi-font-style:italic\u0027\u003eCharitable\r\nOrganizations and Funds\u003c/span\u003e\u003c/b\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.15pt;mso-bidi-font-style:italic\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eAny\r\nincome of\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l15 level1 lfo4;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003ea\r\n     religious or charitable institutions derived from voluntary \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003econtributions,\r\n     and\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.65pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l15 level1 lfo4;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003ecertain\r\n     institutions, foundations, societies, boards, trusts and\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.2pt\u0027\u003efunds derived from donations.\u003csup\u003e9\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l15 level1 lfo4;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003ethe\r\n     Prime Minister\u0027s Special Fund for victims of terrorism, the\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.25pt\u0027\u003eChief Minister\u0027s (Punjab) Relief Fund for Internally\r\n     Displaced \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.4pt\u0027\u003ePersons (IDPs), the Prime Minister\u0027s Flood Relief\r\n     Fund, 2010 \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eand\u003cspan\r\n     style=\u0027letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l15 level1 lfo4;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003ethe\r\n     Provincial Chief Ministers\u0027 relief funds for victims of flood \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003e2010\r\n     derived from donations.\u003csup\u003e10\u003c/sup\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eIndependent Power Producers\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eAny\r\nprofits and gains from an electric power generation project \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003eset\r\nup in Pakistan\u003csup\u003e11\u003c/sup\u003e The Independent Power Producers (IPPs) were \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003egiven\r\nwhopping income tax exemptions worth PKR 46.939 billion in \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003e2011/12,\r\nan increase of 5295.3% over the last year as the exemptions \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003ewere\r\nworth PKR 0.870 billion in 2010/11.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.35pt;mso-bidi-font-style:italic\u0027\u003eCertain\r\nTrusts, Welfare and Charitable Institutions and Non-Profit \u003c/span\u003e\u003c/b\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eOrganizations\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eAny\r\nincome derived from donations, voluntary contributions, subscriptions, house\r\nproperty, investment in securities of the federal \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003egovernment\r\nby a\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l5 level1 lfo5;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003etrust,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l5 level1 lfo5;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003ewelfare\r\n     institutions or\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l5 level1 lfo5;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.0pt\u0027\u003enon-profit\r\n     organizations.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.05pt;mso-bidi-font-style:italic\u0027\u003eNon-resident\r\nIndividuals and Institutions\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.05pt;mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eProfit\r\non debt derived by:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l8 level1 lfo6;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003ea\r\n     non-resident person against an approved loan,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l8 level1 lfo6;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003eHub\r\n     Power Company Limited on its bank deposits or accounts\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.2pt\u0027\u003ewith financial institutions,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l8 level1 lfo6;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003ea non-resident\r\n     person in respect of the Islamic mode of financing \u003cspan style=\u0027letter-spacing:\r\n     .25pt\u0027\u003eincluding Istisna, Morabha, Musharika,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l8 level1 lfo6;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003ean\r\n     agency of foreign government, foreign national person\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.6pt\u0027\u003e(company, firm or AOP), or any other non-resident\r\n     person \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.35pt\u0027\u003eapproved by the federal government on moneys\r\n     borrowed under a loan agreement or in respect of foreign currency\r\n     instrument \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.25pt\u0027\u003eapproved by the federal government.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.3pt;mso-bidi-font-style:italic\u0027\u003eRecipient of\r\nProfits on Debt/interest from government securities and \u003c/span\u003e\u003c/b\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.2pt;mso-bidi-font-style:italic\u0027\u003ecertain\r\nforeign currency accounts/books\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eProfit\r\non debt derived:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l12 level1 lfo7;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003efrom\r\n     foreign currency account held with authorized bank \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003ePakistan\r\n     or certificates of investment issued by investment \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003ebanks,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l12 level1 lfo7;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003efrom\r\n     a rupee foreign currency account held with a scheduled\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:.25pt\u0027\u003ebank in Pakistan by a Pakistani abroad, if\r\n     the deposits are made \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003efrom\r\n     remittances from outside Pakistan,\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l12 level1 lfo7;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003efrom\r\n     private foreign currency account held with an authorized\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:.9pt\u0027\u003ebank in Pakistan or certificate of investment\r\n     issued by \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003einvestment banks,\u003c/span\u003e\r\n     \u003cspan style=\u0027letter-spacing:.55pt\u0027\u003eby any person other than bank and\r\n     financial institution on \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.85pt\u0027\u003eforeign\r\n     currency bearer certificates on existing till the \u003c/span\u003e\u003cspan\r\n     style=\u0027letter-spacing:.2pt\u0027\u003ecertificates are encashed,\u003c/span\u003e \u003cspan\r\n     style=\u0027letter-spacing:1.0pt\u0027\u003eon special US Dollar Bonds,\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l12 level1 lfo7;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003efrom\r\n     Pak rupee account or certificate created by conversion of\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:.2pt\u0027\u003eforeign currency accounts.\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.05pt;mso-bidi-font-style:italic\u0027\u003eRecipient of\r\nIncome from Export of Information Technology\u003csup\u003e12\u003c/sup\u003e\u003c/span\u003e\u003c/b\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt;\r\nmso-bidi-font-style:italic\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eIncome\r\nfrom export of\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l10 level1 lfo8;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.3pt\u0027\u003ecomputer\r\n     software or\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n1.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l10 level1 lfo8;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.7pt\u0027\u003einformation\r\n     technology (IT) services including software \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n     12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003edevelopment,\r\n     software maintenance, system integration, web \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003edesign,\r\n     Web development, web hosting, and network or\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n     12.0pt;font-family:\"Times New Roman\";letter-spacing:1.3pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l10 level1 lfo8;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eIT\r\n     enabled services including inbound or outbound call centres,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.3pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.7pt\u0027\u003emedical transcription, remote monitor*, graphics design,\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.5pt\u0027\u003eaccounting services, HR services, telemedicine\r\n     centres, data \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.45pt\u0027\u003eentry operations, locally produced television\r\n     programs, and \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.2pt\u0027\u003einsurance claims processing\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.3pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.45pt;mso-bidi-font-style:italic\u0027\u003eRecipient of\r\nCapital Gains\u003c/span\u003e\u003c/b\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\nletter-spacing:.45pt;mso-bidi-font-style:italic\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eCapital\r\ngains arising from sale of:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l16 level1 lfo9;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eModaraba\r\n     certificates,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l16 level1 lfo9;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003eRedeemable\r\n     certificates like Participation Term Certificates \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.9pt\u0027\u003e(PTCs),\r\n     Term Finance Certificates (TFCs), Musharika \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n     12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eCertificates,\r\n     any other security not based on interest excluding \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eshares,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l16 level1 lfo9;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003ePakistan\r\n     Telecommunication Vouchers issued by the government\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:.3pt\u0027\u003eof Pakistan, and\u003c/span\u003e \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l16 level1 lfo9;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:1.1pt\u0027\u003eshares\r\n     of public company\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\r\n     \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l16 level1 lfo9;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003ewere\r\n     exempt from income tax up to tax year 2010 (30 June, \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e2010.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eAny\r\ncapital gain arising from\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l11 level1 lfo10;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003ethe\u003csup\u003e\r\n     \u003c/sup\u003esale of shares of a public company, if shares have been sold \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003eby\r\n     a foreign institutional investor approved by the federal \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003egovernment\r\n     is permanently exempt from income tax.\u003csup\u003e13\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l11 level1 lfo10;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003efrom\r\n     the sale of shares of public company set up in any Special \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eIndustrial\r\n     Zone is exempt from tax up to five years from the \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003edate\r\n     of commencement of commercial production\u003csup\u003e14\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.6pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l11 level1 lfo10;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.6pt\u0027\u003efrom\r\n     the sale of shares of an industrial undertaking set up in\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.45pt\u0027\u003eExport Processing Zone is permanently exempt from\r\n     income \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003etax.\u003csup\u003e15\u003c/sup\u003e\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.2pt;mso-bidi-font-style:italic\u0027\u003eOther\r\nSectors/enterprises\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eIncome\r\nof certain other sectors and enterprises fully exempt from tax \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003einclude:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eAny\r\n     income derived by a company from foreign enterprise such \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003eas\r\n     by way of royalty, commission or fee for consideration of \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003eusage\r\n     of any patent, invention or other intangible property \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003erights,\u003csup\u003e16\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eProfits\r\n     and gains of a taxpayer from an industrial undertaking\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     are exempt from tax for a period of ten years starting from the later of\r\n     the month in which it is set up or has commenced the \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003ecommercial\r\n     production.\u003csup\u003e17\u003c/sup\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n     \"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eSalary\r\n     income of the employees of certain organisations,\u003csup\u003e18\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.6pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.6pt\u0027\u003eAny\r\n     allowance and perquisites paid by the government of \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003ePakistan\r\n     to a Pakistani appointed by the government in any \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eforeign\r\n     country,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eIncome\r\n     of National Investment (Unit) Trust\u003csup\u003e19\u003c/sup\u003e, Mutual Funds\u003csup\u003e20\u003c/sup\u003e,\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eModarban\u003csup\u003e21\u003c/sup\u003e\r\n     ,\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eSubsidy received by\r\n     a person from the federal government,\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003eAny\r\n     dividend received by the Investment Corporation of \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003ePakistan\r\n     (ICP) from any other company which has paid or will \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003epay\r\n     tax in respect of the profits out of which such dividends are \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003epaid,\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eincome\r\n     of sports boards,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eAgriculture income\u003csup\u003e22\u003c/sup\u003e\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.75pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.75pt\u0027\u003eIncome\r\n     of an individual entitled to privileges under the \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eDiplomatic\r\n     and Consular Privileges Act, 1972; or the United \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eNations\r\n     (Privileges and Immunities) Act, 1948,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003ePensions\r\n     income of a Pakistani received being an employee of\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.4pt\u0027\u003eUnited Nations or its specialized agencies including\r\n     the \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003einternational\r\n     court of justice,\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.75pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.75pt\u0027\u003esalary\r\n     income received by an employee from a foreign\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003egovernment,\r\n     if such an employee is foreign national and not a citizen of Pakistan,\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eany Pakistan source\r\n     income for which Pakistan is not permitted to tax under a tax treaty,\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003esalary\r\n     income of an individual performing services under an Aid \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eAgreement,\r\n     if he is foreign national and not a citizen of \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003ePakistan,\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eIncome\r\n     of a contractor, consultant or expert, if he is foreign\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:-.15pt\u0027\u003enational and not a citizen of Pakistan,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eany\r\n     allowance attached to any honor, award or medal; or any\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     monetary award granted to a person by the President of \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003ePakistan,\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eany profit on debt\r\n     received by a non-resident person on security\u003cspan style=\u0027letter-spacing:\r\n     .35pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003eissued by a resident\r\n     person,\u003csup\u003e23\u003c/sup\u003e\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eany scholarship\r\n     granted to a person to meet the cost of the person\u0027s education,\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.25pt\u0027\u003eany\r\n     income received by a spouse as support payment under an \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eagreement to live\r\n     apart,\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eincome of the\r\n     federal government, a provincial government and \u003cspan style=\u0027letter-spacing:\r\n     -.2pt\u0027\u003ea local authority, except income from business derived from a \u003c/span\u003ebusiness\r\n     carried on outside its jurisdiction,\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l2 level1 lfo11;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eforeign-source\r\n     income of short-term resident individual,\u003csup\u003e24\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eHowever,\r\n     the income of short-term resident is not exempt from \u003cspan\r\n     style=\u0027letter-spacing:.2pt\u0027\u003etax if such income is derived from business\r\n     established in \u003c/span\u003ePakistan or any foreign source income has been\r\n     brought into Pakistan or received in Pakistan, and\u003cspan style=\u0027letter-spacing:\r\n     .35pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.45pt\u0027\u003eforeign source income of\r\n     a Pakistani returning back in \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.4pt\u0027\u003ePakistan.\u003csup\u003e25\u003c/sup\u003e\u003c/span\u003e\u003cspan\r\n     style=\u0027letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eRecipients of perquisites\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eThe following\r\nperquisites received by an employee by virtue of \u003cspan style=\u0027letter-spacing:\r\n-.15pt\u0027\u003ehis employment are fully exempt from tax:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l9 level1 lfo12;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003efree or\r\n     concessional passage provided by transporters including airlines to their\r\n     employees or family members or dependents of \u003cspan style=\u0027letter-spacing:\r\n     -.2pt\u0027\u003ethe employees,\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l9 level1 lfo12;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003efree or subsidized\r\n     food provided by hotels and restaurants to its \u003cspan style=\u0027letter-spacing:\r\n     -.2pt\u0027\u003eemployees \u0027during duty hours,\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l9 level1 lfo12;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003efree\r\n     or subsidized education provided by an educational\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:-.15pt\u0027\u003einstitution to the children of its employees,\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l9 level1 lfo12;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003efree\r\n     or subsidized medical treatment provided by a hospital or a\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e clinic to its\r\n     employees,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l9 level1 lfo12;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eany other\r\n     perquisites or benefit for which the employer does not have to bear any\r\n     marginal cost, as notified by the FBR.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l9 level1 lfo12;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eAny\r\n     allowance received as flying allowance by pilots, flight\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:.05pt\u0027\u003eengineers and navigators of the Pakistan Air\r\n     Force, Pakistan \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003eArmy and\r\n     Pakistan Navy, Civil Aviation Authority or any \u003c/span\u003ePakistani Airline.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt;\r\nmso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.25pt;mso-bidi-font-style:italic\u0027\u003e4.\r\nBeneficiaries of Concessional Tax Rates\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003eThe\r\nfollowing incomes, if brought into Pakistan through normal banking \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003echannels, subject to one\r\npercent tax rate:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l1 level1 lfo13;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eGross\r\n     receipts from services rendered outside Pakistan,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l1 level1 lfo13;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eGross receipts from\r\n     construction contracts outside Pakistan, \u003cspan style=\u0027letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eImporters of Goods\u003c/span\u003e\u003c/b\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003eThe\r\nfollowing goods subject to concessional withholding tax rates instead \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003eof \u003cspan\r\nstyle=\u0027mso-bidi-font-style:italic\u0027\u003e5% \u003c/span\u003eof import value required to be\r\ndeducted under section 148 of the Income Tax Ordinance, 2001.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003e3%\r\n     on import of raw material by industrial undertaking for its \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eown use,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003e4%\r\n     on import of edible oil and packing material,\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e1%\r\n     on import of all fiber, yarn and fabrics and goods covered\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e \u003cspan\r\n     style=\u0027letter-spacing:.1pt\u0027\u003eby the zero-rating regime of General Sales Tax\r\n     Act,\u003c/span\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1% on import of\r\n     potassic fertilizers,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003e1%\r\n     import of urea fertilizers,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1% on import of\r\n     gold, mobile telephone sets, and silver,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l13 level1 lfo14;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003e2%\r\n     on import of pulses,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eNon-Resident Person\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003eRate\r\nof tax on payment from profit on debt to a non-resident having no \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003epermanent\r\nestablishment (PE) in Pakistan is 10% on the gross amount \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003epaid.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eCertain Recipient of Dividends\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eRate\r\nof tax is reduced to 7.5% on dividends declared or distributed:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l14 level1 lfo15;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.25pt\u0027\u003eby\r\n     purchasers of a power project privatized by Water and Power \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003eDevelopment\r\n     Authority of Pakistan (WAPDA) and\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l14 level1 lfo15;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eon shares of a\r\n     company set up for power generation.\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eAdvertising Agents\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eThe\r\nrate of tax on payment of brokerage and commission is reduced to 5% from 10%\r\nfor the advertising agents.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eUtility Store Corporation\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eRate\r\nof tax is 1% on the sale value of rice to be sold by the Rice \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.95pt\u0027\u003eExporters\r\nAssociation of Pakistan (REAP) to utility store \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\"\u0027\u003ecorporation.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:.1pt\u0027\u003e5. Beneficiaries of reduced tax liability\u003csup\u003e26\u003c/sup\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003eTax\r\nliability of following taxpayers is to be reduced by:\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l3 level1 lfo16;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003e50%\r\n     in case age of a taxpayer is 60 years or more,\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.25in;text-align:justify;line-height:\r\nnormal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.55pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l3 level1 lfo16;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e75%\r\n     in case a taxpayer is full time teacher or researcher in a\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003enon-profit\r\n     education or research institute,\u003cspan style=\u0027letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l3 level1 lfo16;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e80%\r\n     of minimum tax payable under section 113 for a company \u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003e\u003cspan\r\n     style=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\";letter-spacing:.85pt\u0027\u003eengaged in the\r\n     business of distribution of cigarettes \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n     font-family:\"Times New Roman\"\u0027\u003emanufactured in Pakistan,\u003cspan\r\n     style=\u0027letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l3 level1 lfo16;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003e80%\r\n     of minimum tax payable under section 113 for distributors\u003c/span\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003e\r\n     \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.05pt\u0027\u003eof pharmaceutical products, fertilizers, and\r\n     consumer goods,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\n     letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cul style=\u0027margin-top:0in\u0027 type=disc\u003e\r\n \u003cli class=MsoNormal style=\u0027margin-bottom:0in;margin-bottom:.0001pt;text-align:\r\n     justify;line-height:normal;mso-list:l3 level1 lfo16;tab-stops:list .5in\u0027\u003e\u003cspan\r\n     style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e80% of minimum tax\r\n     payable under section 113 for flour mills,\u003cspan style=\u0027letter-spacing:\r\n     .55pt\u0027\u003e \u003c/span\u003eimporters of old and used automobile vehicles, etc.\u003cspan\r\n     style=\u0027letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/li\u003e\r\n\u003c/ul\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eIn\r\naddition, flying allowance by pilots, flight engineers, navigators of \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003ePakistan Armed Forces,\r\nPakistani Airlines, or Civil Aviation Authority, \u003cspan style=\u0027letter-spacing:\r\n-.05pt\u0027\u003eJunior Commissioned Officers or other ranks of Pakistan Armed Forces, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eand submarine allowance by the officers of\r\nPakistan Navy is taxed at \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e2.5% as a\r\nseparate block of income.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.15pt\u0027\u003e6. Tax Policy and Economic\r\nConsiderations \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eTax Revenue\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003ePakistan\u0027s\r\ntax-to-GDP ratio is low by international standards.\u003csup\u003e27\u003c/sup\u003e The low \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003eand\r\ndeclining tax-to-GDP ratio is a matter of serious concern in \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003ethe\r\nrecent times, particularly when the fiscal deficits are increasing \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003e(Table\r\n1). More importantly, the income tax (individual and corporate) \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eas\r\na share of GDP is also low by international standards and is declining \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eas well. One important\r\nreason of low and declining share of income tax \u003cspan style=\u0027letter-spacing:\r\n-.05pt\u0027\u003erevenue is too many exemptions and concessions in the income tax code. \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003eThe income tax base in Pakistan is alarmingly low due\r\nto large income \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003etax exemptions and\r\nconcessions. This package of exemptions and \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.1pt\u0027\u003econcessions acts to make Swiss cheese out of the income tax base for \u003c/span\u003eboth\r\nindividuals and Association of Persons (AOPs).\u003csup\u003e28\u003c/sup\u003e The fiscal deficits\r\n\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003eover the period of 2007/08 to 2011/12 could\r\nbe easily reduced, if the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003eoriginal\r\ntargets for all federal taxes amounting to PKR 1,025 billion, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003ePKR 1,250 billion, PKR 1,380 billion, PKR 1,667\r\nbillion and PKR \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e1,952 billion were\r\nfully achieved. On the other, the original tax targets \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003ecould easily be achieved if the tax expenditures\r\non account of federal \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003etaxes (income\r\ntax, sales tax, federal excise duty and customs duty) \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003eamounting to PKR 86.657 billion, PKR 119.646\r\nbillion, PKR 150.291 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.05pt\u0027\u003ebillion, PKR\r\n175.211 billion and PKR 185.496 billion were rationalized \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003ethrough effective tax policy measures.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003eTable-1: Fiscal Deficit, Tax-to-GDP Ratio and Income\r\nTax-to-GDP Ratio\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003ctable class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=\"100%\"\r\n style=\u0027width:100.0%;border-collapse:collapse;border:none;mso-border-alt:solid windowtext .5pt;\r\n mso-yfti-tbllook:480;mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-border-insideh:\r\n .5pt solid windowtext;mso-border-insidev:.5pt solid windowtext\u0027\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:0;mso-yfti-firstrow:yes\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n  \"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-left:none;mso-border-left-alt:solid windowtext .5pt;mso-border-alt:\r\n  solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n  \"Times New Roman\";letter-spacing:-.2pt\u0027\u003eFiscal Deficit*\u003c/span\u003e\u003c/b\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan 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width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-left:none;mso-border-left-alt:solid windowtext .5pt;mso-border-alt:\r\n  solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n  \"Times New Roman\";letter-spacing:-.75pt\u0027\u003eNet Income Tax\u0026#8209;\u003c/span\u003e\u003c/b\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n  \"Times New Roman\"\u0027\u003eto-GDP\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:1\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  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mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.4\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e2.8\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:6\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e2006/07\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e4.4\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.8\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:7\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e2007/08\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e7.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.8\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:8\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e2008/09\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e5.3\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.1\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.3\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:9\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2009/10\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e6.3\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e8.9\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.3\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:10\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.4pt\u0027\u003e2010/11\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e5.9\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e8.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.1\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:11;mso-yfti-lastrow:yes\u0027\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e2011/12\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e8.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.1\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=\"25%\" valign=top style=\u0027width:25.0%;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e3.4\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n\u003c/table\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eSource: *Economic Survey\r\nof Pakistan 2011/12. \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eOwn calculations from\r\nFBR Year Books\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";letter-spacing:-.3pt\u0027\u003eTax Avoidance and Tax Evasion\u003csup\u003e29\u003c/sup\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.05pt\u0027\u003eThe\r\nextensiveness of exemptions and special treatments provided \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003efor\r\nthe income tax may create opportunities for tax avoidance and \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003eevasion.\u003csup\u003e30\u003c/sup\u003e\r\nFor instance, a taxpayer deriving income from agriculture as \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003ewell\r\nfrom business may inflate agricultural income and reduce income \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.45pt\u0027\u003efrom\r\nbusiness at the time of filing tax return, in particular when \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eeconomy\r\nis largely un-documented. Zaidi (2010) concluded that \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003ePakistan\u0027s\r\ntax evasion problem is caused by three things: poor legal \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.55pt\u0027\u003eframeworks\r\nand bureaucratic capabilities with regard to revenue\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eextraction; corruption in\r\nthe form of a predatory class that privileges \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003ecertain sectors and\r\nvested interests with unjustified tax \u0026quot;exemptions\u0026quot;; \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003eand\r\nelites who cut deals with the State to avoid taxation, made possible \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.15pt\u0027\u003eby\r\nan anaemic agriculture income tax (agriculture makes up 22 percent \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eof\r\nPakistan\u0027s GDP, but only 1 percent of its tax revenue).\u003csup\u003e31\u003c/sup\u003e The extent\r\nof tax evasion can also be estimated from the fact that only 800,000 people pay\r\ntaxes out of 180 million, only 0.5% of total population of Pakistan.\u003csup\u003e32\u003c/sup\u003e\r\n\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:\r\n.5pt\u0027\u003eAs a result, income tax-GDP gap\u003csup\u003e33\u003c/sup\u003e appears to be quite higher\r\nin \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003ePakistan.\u003cspan\r\nstyle=\u0027letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003eAhmed\r\nand Rider (2008) estimated the income tax-GDP gap for \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e2004/05 at PKR 262.8\r\nbillion or around 152% of the actual income tax revenue of PKR 172.5 billion.\r\nThe income tax gap estimated on salaried \u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eindividuals,\r\nnon-salaried individuals and corporations was PKR 13 \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003ebillion, PKR 7.3 billion and PKR 242.5 billion,\r\nrespectively or around 97%, 15% and 217% of the actual income tax collection of\r\nPKR 26.3 \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003ebillion, PKR 55.1 billion and\r\nPKR 353.9 billion, respectively.\u003csup\u003e34\u003c/sup\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eMoreover, such a scheme\r\nof exemptions discourages voluntary \u003cspan style=\u0027letter-spacing:.2pt\u0027\u003ecompliance\r\nunder self-assessment system and businesses already filing tax returns may opt\r\nto avoid or even evade taxes. In Pakistan, since \u003c/span\u003e2007/08 the number of\r\nincome tax returns have decreased steadily from \u003cspan style=\u0027letter-spacing:\r\n.3pt\u0027\u003ehistoric highest figure of 1.81 million in 2006/07 to currently 1.29 \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003emillion in 2011/12, indicated a decline of 28.7%\r\nduring this period \u003c/span\u003e(Table-2).\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003eTable-2: Trends in Income Tax Returns\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003ctable class=MsoNormalTable border=1 cellspacing=0 cellpadding=0\r\n style=\u0027border-collapse:collapse;border:none;mso-border-alt:solid windowtext .5pt;\r\n mso-yfti-tbllook:480;mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-border-insideh:\r\n .5pt solid windowtext;mso-border-insidev:.5pt solid windowtext\u0027\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:0;mso-yfti-firstrow:yes\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eYear\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-left:none;mso-border-left-alt:solid windowtext .5pt;mso-border-alt:\r\n  solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003eIncome\r\n  Tax Returns\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-left:none;mso-border-left-alt:solid windowtext .5pt;mso-border-alt:\r\n  solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eIncrease/Decrease\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:1\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n  \"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e(Million)\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e(%)\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:2\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003cspan\r\n  style=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.2pt\u0027\u003e2003/04\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1.03\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\n  style=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n  \"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:3\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n  font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2004/05\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n  font-family:\"Times New Roman\"\u0027\u003e1.23\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n  font-family:\"Times New Roman\"\u0027\u003e19.4\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:4\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2005/06\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e1.49\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e21.1\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:5\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2006/07\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.5pt\u0027\u003e1.81\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e21.5\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:6\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.4pt\u0027\u003e2007/08\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1.57\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e-13.3\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:7\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2008/09\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1.72\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e9.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:8\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2009/10\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1.60\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e-7.0\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:9\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.6pt\u0027\u003e2010/11\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e1.51\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\n  style=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e-5.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027mso-yfti-irow:10;mso-yfti-lastrow:yes\u0027\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border:solid windowtext 1.0pt;\r\n  border-top:none;mso-border-top-alt:solid windowtext .5pt;mso-border-alt:solid windowtext .5pt;\r\n  padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n  font-family:\"Times New Roman\";letter-spacing:-.2pt\u0027\u003e2011/12\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n  font-family:\"Times New Roman\"\u0027\u003e1.29\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=197 valign=top style=\u0027width:2.05in;border-top:none;border-left:\r\n  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;\r\n  mso-border-top-alt:solid windowtext .5pt;mso-border-left-alt:solid windowtext .5pt;\r\n  mso-border-alt:solid windowtext .5pt;padding:0in 5.4pt 0in 5.4pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\n  font-family:\"Times New Roman\"\u0027\u003e-14.6\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n\u003c/table\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eSource: Own Collection\r\nfrom FBR Year Books, Quarterly Reviews, and \u003cspan style=\u0027letter-spacing:.1pt\u0027\u003enewspapers\u0027\r\narticles\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eHorizontal Inequalities\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eIn case income of\r\ncertain taxpayer is fully exempt from tax or subject to \u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003econcessional tax rates, horizontal inequalities (taxpayers with the same\r\n\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003eincome or tax base should pay equal\r\ntaxes) are bound to increase. \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eAccording\r\nMatinez-Vazquez (2006), there are two most important \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003esources of horizontal inequalities: unequal\r\ntreatment of taxpayers with \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003esame level\r\nof income through exemptions and the like and different \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003eopportunities of tax evasion.\u003csup\u003e35\u003c/sup\u003e The\r\nunequal treatment of individuals with \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.25pt\u0027\u003ethe\r\nsame income arises because of the exemptions of some form of \u003c/span\u003eincome,\r\nsuch as is the case of agricultural income and the case of capital \u003cspan\r\nstyle=\u0027letter-spacing:.05pt\u0027\u003egains from the sale of securities.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";mso-bidi-font-style:italic\u0027\u003eEnergy, Efficiency and Economic\r\nGrowth\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eEnergy\r\nis considered to be the lifeline of economic development.\u003csup\u003e36\u003c/sup\u003e Despite\r\nhuge loss of income tax revenue in favour of IPPs in 2011/12, \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003ethe\r\ncountry faced a record shortfall of both power (electricity), and \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003enatural\r\ngas in 2011/12.\u003csup\u003e37\u003c/sup\u003e Electricity supply was inadequate to meet \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.7pt\u0027\u003erising\r\ndemand and the load shedding worsened as the country \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eexperienced\r\na record peak shortfall in 2011/12. For instance, the peak \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eshortfall\r\nfor the Pakistan Electric Power Company (PEPCO) system \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003eincreased\r\nfrom 2,645 Mega Watt in 2006/07 to 8,398 Mega Watt in \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e2011/12.\u003csup\u003e38\u003c/sup\u003e\r\nSupply remains less than demand while on demand side, \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003esubsidized\r\nenergy has reduced incentives for conservation, and has \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:-.15pt\u0027\u003eactually\r\nencouraged inefficient consumption.\u003csup\u003e39\u003c/sup\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.25pt\u0027\u003eThere\r\nis general consensus amongst economists that the tax \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eexemptions and\r\nconcessions make the income tax system unfair and non-\u003cspan style=\u0027letter-spacing:\r\n.35pt\u0027\u003eneutral, thus lead to economic distortions and inefficiencies. This \u003c/span\u003eappears\r\nto be particularly true in the case of Pakistan because the income \u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003etax system does not provide level playing field for\r\nall economic agents \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.15pt\u0027\u003eand sectors of\r\neconomy. Some economic agents or sectors are exempt from tax while others tend\r\nto be heavily taxed, and consequently the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.2pt\u0027\u003eallocation of resources gets distorted. A neutral tax system does not \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003einterfere with the allocation of resources and,\r\nthus, does not disrupt the \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003efunctioning\r\nof the market mechanism.\u003csup\u003e40\u003c/sup\u003e Matinez-Vazquez (2006) \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003econcluded that the tax system of Pakistan leads to\r\ndifferent marginal \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003erates of effective\r\ntaxation, which lead to significant distortions in \u003c/span\u003einvestment decisions\r\nand a lower level of efficiency of the economy and slower rates of economic\r\ngrowth.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003eTotal investment has\r\ndeclined from 22.1% of GDP in 2007/08 to \u003cspan style=\u0027letter-spacing:.05pt\u0027\u003e12.5%\r\nof GDP in 2011/12. Fixed investment has decreased to 10.9% of GDP in 2011/12\r\nfrom 20.5% of GDP in 2007/08. On the other, private investment witnessed a\r\ncontraction of 7.9% in 2011/12 compared to 15% \u003c/span\u003e\u003cspan style=\u0027letter-spacing:\r\n.1pt\u0027\u003eof GDP in 2007/08.\u003csup\u003e41\u003c/sup\u003e The gross domestic product (GDP) growth\r\nalso \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.05pt\u0027\u003edeclined from 6.8% in 2006/07 to\r\n3.7% in 2011/12.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cb\r\nstyle=\u0027mso-bidi-font-weight:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\"\u0027\u003e7. Conclusion\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eSince\r\nit has a considerable budget deficit and the lowest tax-to  \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.1pt\u0027\u003eGDP\r\nratio amongst many developing countries, Pakistan urgently needs to improve its\r\nfinancing situation. Since income tax expenditures erode \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003ethe\r\ntax base and, hence, reduce overall tax revenues, eliminating income \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003etax expenditures would\r\nhelp achieve an increase of the tax-to-GDP ratio \u003cspan style=\u0027letter-spacing:\r\n.05pt\u0027\u003efrom 8.9% in 2010/11 to 15% in 2014/15, as envisaged in the Seventh \u003c/span\u003eNational\r\nFinancial Commission (NFC)Award 2010.\u003csup\u003e42\u003c/sup\u003e Elimination of the \u003cspan\r\nstyle=\u0027letter-spacing:.15pt\u0027\u003eincome tax exemptions that are exclusively to the\r\nbenefit of inefficient \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.3pt\u0027\u003eproducers and\r\npolitically powerful lobbies would help make the income \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.25pt\u0027\u003etax system fairer and more equitable and more\r\ncompetitive for all sectors \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eof the\r\neconomy, and it would have a positive effect on tax revenues in \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.3pt\u0027\u003ethe sense the tax target of PKR 2,230 billion for\r\n2012/13 will become \u003c/span\u003eachievable.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.5pt\u0027\u003eIn\r\nthis context, it should be noted that, in many developing \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.8pt\u0027\u003ecountries,\r\ntax expenditures are commonly used instruments for \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.35pt\u0027\u003epromoting\r\neconomic growth, developing infrastructure, education and \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003ehealth\r\ncare, and reducing poverty, etc.\u003csup\u003e43\u003c/sup\u003e Therefore, only those tax \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.05pt\u0027\u003eexpenditures,\r\nwhich are relevant for the actual needs of the country or its \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.65pt\u0027\u003epopulation,\r\nand those which should be effective and efficient\u003csup\u003e44\u003c/sup\u003e in \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.2pt\u0027\u003eachieving\r\nthe objectives of promoting economic growth and, as a result, \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";letter-spacing:.3pt\u0027\u003eraising\r\ntax revenues, are to be retained.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e_____________________________\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e1.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003c!--[if gte vml 1]\u003e\u003cv:line id=\"_x0000_s1036\"\r\n style=\u0027position:absolute;left:0;text-align:left;z-index:1;\r\n mso-wrap-distance-left:0;mso-wrap-distance-right:0;mso-position-horizontal:left\u0027\r\n from=\"0,.8pt\" to=\"84.25pt,.8pt\" o:allowincell=\"f\" strokeweight=\".5pt\"\u003e\r\n \u003cw:wrap type=\"square\"/\u003e\r\n\u003c/v:line\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=114 height=2\r\nsrc=\"2014J25_files/image001.gif\" align=left v:shapes=\"_x0000_s1036\"\u003e\u003c![endif]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003eBilal\r\nHassan is working as a Deputy Director of Inland Revenue, Federal Board \u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003eof Revenue, Pakistan. He is a graduate in Tax\r\nPolicy and Management from \u003c/span\u003eKeio University, Japan. The opinions\r\nexpressed in this article are the author\u0027s \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eand\r\ndo not represent the opinion or position of the Federal Board of Revenue of \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003ePakistan or the Keio University.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e2.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003c!--[if gte vml 1]\u003e\u003cv:line id=\"_x0000_s1037\"\r\n style=\u0027position:absolute;left:0;text-align:left;z-index:2;\r\n mso-wrap-distance-left:0;mso-wrap-distance-right:0;mso-position-horizontal:left\u0027\r\n from=\"0,-7.7pt\" to=\"143.65pt,-7.7pt\" o:allowincell=\"f\" strokeweight=\".5pt\"\u003e\r\n \u003cw:wrap type=\"square\"/\u003e\r\n\u003c/v:line\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=194 height=2\r\nsrc=\"2014J25_files/image002.gif\" align=left v:shapes=\"_x0000_s1037\"\u003e\u003c![endif]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.75pt\u0027\u003eSee Chapter 6 \u0026quot;Fiscal Policy\u0026quot; of the annual report of State\r\nBank of \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.2pt\u0027\u003ePakistan 2011/12, available at \u003c/span\u003e\u003ca\r\nhref=\"http://www.sbp.org.pk/reports/annual/arFY12/\"\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.2pt;\r\ntext-decoration:none;text-underline:none\u0027\u003ehttp://www.sbp.org.pk/reports/annual/arFY12/\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.2pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.15pt\u0027\u003eFiscal_Policy.pdf (accessed on 31 January\r\n2013). In 1960s, the fiscal deficit of \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.3pt\u0027\u003ePakistan was\r\n8.7%.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e3.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.25pt\u0027\u003eSee Chapter 7 \u0026quot; Domestic Debt and\r\nExternal Debt\u0026quot; of the annual report of State\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.15pt\u0027\u003eBank of Pakistan 2011/12, available at \u003c/span\u003e\u003ca\r\nhref=\"http://www.sbp.org.pk/reports/annual/\"\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.15pt;text-decoration:\r\nnone;text-underline:none\u0027\u003ehttp://www.sbp.org.pk/reports/annual/\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.15pt\u0027\u003e\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003e\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.25pt\u0027\u003earFY12/Domestic_External_Debt.pdf.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.75pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e4.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.75pt\u0027\u003eSee report \u0026quot;Tax Exemptions Surpasses\r\nIMF Loans\u0026quot; 29 January, 2013,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003eavailable at \u003c/span\u003e\u003ca\r\nhref=\"http://dawn.com/2013/01/30/tax-exemption-surpasses-imf-loans/\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt;text-decoration:none;text-underline:none\u0027\u003ehttp://dawn.com/2013/01/30/tax-exemption-surpasses-imf-loans/\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.3pt\u0027\u003e(accessed on 1 February, 2013).\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e5.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003c!--[if gte vml 1]\u003e\u003cv:line id=\"_x0000_s1038\"\r\n style=\u0027position:absolute;left:0;text-align:left;z-index:3;\r\n mso-wrap-distance-left:0;mso-wrap-distance-right:0;mso-position-horizontal:left\u0027\r\n from=\"0,-10.3pt\" to=\"98.95pt,-10.3pt\" o:allowincell=\"f\" strokeweight=\".5pt\"\u003e\r\n \u003cw:wrap type=\"square\"/\u003e\r\n\u003c/v:line\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=134 height=2\r\nsrc=\"2014J25_files/image003.gif\" align=left v:shapes=\"_x0000_s1038\"\u003e\u003c![endif]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.65pt\u0027\u003eSection 53 of the Income Tax Ordinance, 2001 empowers the Federal \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.2pt\u0027\u003eGovernment to specify the incomes or classes of incomes, persons or\r\nclasses of \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.45pt\u0027\u003epersons, which either be exempt from tax or\r\nwhose tax liability shall be\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003e\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.4pt\u0027\u003ereduced. Part I of the Second Schedule to the Income Tax Ordinance, 2001 \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.15pt\u0027\u003eprovides incomes, which are fully exempt from tax while Part II provides\r\nlist of \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.25pt\u0027\u003eincomes, which subject to concessional tax\r\nrates.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e6.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003c!--[if gte vml 1]\u003e\u003cv:line id=\"_x0000_s1039\"\r\n style=\u0027position:absolute;left:0;text-align:left;z-index:4;\r\n mso-wrap-distance-left:0;mso-wrap-distance-right:0;mso-position-horizontal:left;\r\n mso-position-horizontal-relative:page;mso-position-vertical-relative:page\u0027\r\n from=\"0,498.5pt\" to=\"126.5pt,498.5pt\" o:allowincell=\"f\" strokeweight=\".7pt\"\u003e\r\n \u003cw:wrap type=\"square\" anchorx=\"page\" anchory=\"page\"/\u003e\r\n\u003c/v:line\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=170 height=2\r\nsrc=\"2014J25_files/image004.gif\" align=left v:shapes=\"_x0000_s1039\"\u003e\u003c![endif]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.4pt\u0027\u003eSee clauses (8), (9), (12), (13), (16) and (19) of the Second Schedule to\r\nthe \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003eIncome Tax Ordinance, 2001 as amended up to\r\nJune 30, 2011.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e7.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003eSee clauses (22), (23), (23A), (24), (25)\r\nand (26) Part I of the Second Schedule\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.3pt\u0027\u003eto the Income Tax Ordinance, 2001. \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e8.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.4pt\u0027\u003eSee clauses (91), (92), (92A), and (93A)\r\nPart I of the Second Schedule to the Income Tax Ordinance, 2001.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e9.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.4pt\u0027\u003eSee clauses (60) and (61) Part I of the\r\nSecond Schedule to the Income Tax Ordinance, 2001.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.35pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e10.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003eSee clauses (64A), (64B), (64C) and (65)\r\nPart I of the Second Schedule to the \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.4pt\u0027\u003eIncome Tax\r\nOrdinance, 2001.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.55pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if 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o:connecttype=\"rect\"/\u003e\r\n\u003c/v:shapetype\u003e\u003cv:shape id=\"_x0000_s1040\" type=\"#_x0000_t202\" style=\u0027position:absolute;\r\n left:0;text-align:left;margin-left:0;margin-top:30.2pt;width:298.8pt;height:20.2pt;\r\n text-indent:0;z-index:5;mso-wrap-edited:f;mso-wrap-distance-left:0;\r\n mso-wrap-distance-right:0;mso-position-horizontal:left;\r\n mso-position-horizontal-relative:text;mso-position-vertical-relative:text\u0027\r\n wrapcoords=\"-62 0 -62 21600 21662 21600 21662 0 -62 0\" o:allowincell=\"f\"\r\n stroked=\"f\"\u003e\r\n \u003cv:fill opacity=\"0\"/\u003e\r\n \u003cv:textbox style=\u0027mso-next-textbox:#_x0000_s1040\u0027 inset=\"0,0,0,0\"\u003e\r\n  \u003c![if !mso]\u003e\r\n  \u003ctable cellpadding=0 cellspacing=0 width=\"100%\"\u003e\r\n   \u003ctr\u003e\r\n    \u003ctd\u003e\u003c![endif]\u003e\r\n    \u003cdiv\u003e\r\n    \u003cp class=Style2 style=\u0027margin-top:0in;line-height:3.6pt;mso-line-height-rule:\r\n    exactly;text-autospace:ideograph-numeric ideograph-other;mso-line-break-override:\r\n    restrictions\u0027\u003e\u003cspan class=CharacterStyle3\u003e\u003cspan style=\u0027font-size:10.5pt;\r\n    font-family:Arial\u0027\u003e12\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n    \u003cp class=Style4 style=\u0027margin-top:.1in;margin-right:0in;margin-bottom:0in;\r\n    margin-left:.25in;margin-bottom:.0001pt;line-height:8.3pt;mso-line-height-rule:\r\n    exactly;text-autospace:ideograph-numeric ideograph-other;mso-line-break-override:\r\n    restrictions\u0027\u003e\u003cspan class=CharacterStyle1\u003e\u003cspan style=\u0027font-size:10.0pt;\r\n    letter-spacing:.3pt\u0027\u003eSee clause (133) Part I of the Second Schedule of the\r\n    Income Tax Ordinance, \u003c/span\u003e\u003c/span\u003e\u003cspan class=CharacterStyle1\u003e\u003cspan\r\n    style=\u0027font-size:10.0pt\u0027\u003e2001\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n    \u003c/div\u003e\r\n    \u003c![if !mso]\u003e\u003c/td\u003e\r\n   \u003c/tr\u003e\r\n  \u003c/table\u003e\r\n  \u003c![endif]\u003e\u003c/v:textbox\u003e\r\n \u003cw:wrap type=\"square\"/\u003e\r\n\u003c/v:shape\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=403 height=32\r\nsrc=\"2014J25_files/image005.gif\" align=left\r\nalt=\"Text Box: 12\u0026#13;\u0026#10;See clause (133) Part I of the Second Schedule of the Income Tax Ordinance, 2001\u0026#13;\u0026#10;\"\r\nv:shapes=\"_x0000_s1040\"\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.35pt\u0027\u003e1998, and is owned and\r\nmanaged by a company formed for operating such \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.25pt\u0027\u003eproject\r\nand registered under the Companies Ordinance, 1984 and having its \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.15pt\u0027\u003eregistered office in Pakistan. For details see Clause (132) Part I of\r\nthe Second \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.25pt\u0027\u003eSchedule to the Income Tax Ordinance, 2001.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New 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\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.3pt\u0027\u003e2001 as\r\nomitted by the Finance Act, 2010.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e14.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.4pt\u0027\u003eSee clause (113) Part I of the Second\r\nSchedule to the Income Tax Ordinance,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003e2001.\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.4pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e15.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.4pt\u0027\u003eSee clause (114) Part I of the Second\r\nSchedule to the Income Tax Ordinance,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New 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style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.3pt\u0027\u003eThe royalty, fee, etc. should be received\r\nfrom a foreign enterprise for technical\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003eservices rendered outside Pakistan and the amount is received in\r\nPakistan. For \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003edetails, see Clause (131) Part I of the\r\nSecond Schedule to the Income Tax \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003eOrdinance,\r\n2001. \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e17.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.25pt\u0027\u003eThe exemption is allowed if the industrial\r\nundertaking is set up between January\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.3pt\u0027\u003e1, 1995 and December 31, 2002; it is set up in such area as is notified\r\nby the \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.15pt\u0027\u003eFederal Government as a Special Industrial\r\nZone; it is newly set up; owned and \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.45pt\u0027\u003emanaged by a\r\ncompany formed exclusively for operating such industrial \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003eundertaking and registered under the Companies Ordinance, 1984 having\r\nits registered office in Pakistan; and must not engaged in the following\r\nbusinesses:\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.25pt\u0027\u003e(i)\r\nmanufacturing of arms and ammunition; (ii) security printing, currency and \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.15pt\u0027\u003emint; (iii) high explosives, radioactive substances; (iv) alcohol except\r\nindustrial \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003ealcohol; (v) cotton ginning, spinning\r\nexcept as part of integrated textile unit; \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.45pt\u0027\u003e(vi) sugar\r\nmanufacturing (white), flour milling; (vii) steel re-rolling and \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.35pt\u0027\u003efurnace; (viii) tobacco industry, ghee or vegetable oil industry; (ix)\r\n[Contd.]\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.2pt\u0027\u003eplastic bags\r\nincluding polypropylene and polyethylene; (x) beverages excluding \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.45pt\u0027\u003efruit juices; and (xi) polyester industry, automobile assembly and\r\ncement \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.6pt\u0027\u003eindustry. See Clause (126) of the Second\r\nSchedule to the Income Tax \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.4pt\u0027\u003eOrdinance, 2001. Also see\r\nClauses (126A), (126B), (126C), (126D), (126E) \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.15pt\u0027\u003eand\r\n(126F) Part I of the Second Schedule for exemptions on profits and gains to \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.3pt\u0027\u003edifferent taxpayers operating industrial undertaking in prescribed areas.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e18.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003ee.g., an employee of Shaukat Khanum\r\nMemorial Hospital, if he is foreign nationality holder, non-resident, health\r\nprofessional and contract of his service \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.3pt\u0027\u003eis approved by\r\nthe federal government; an employee, if not citizen of Pakistan \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.2pt\u0027\u003eand working as expert, advisor, consultant, or senior management staff in\r\nany \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.4pt\u0027\u003einstitution run by Agha Khan Development\r\nNetwork Pakistan (AKDNP); \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.2pt\u0027\u003ePakistani seafarer working\r\non a foreign vessel or on Pakistan flag vessel for 183 \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.35pt\u0027\u003edays or more in a tax year; an employee of British Council, if he is not\r\ncitizen \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.2pt\u0027\u003eof Pakistani;\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e19.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.3pt\u0027\u003eAt least 90% of its units are held by the\r\npublic at the end of the relevant year\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.4pt\u0027\u003eand at least 90% of its income of the relevant year is distributed among\r\nthe \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New 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Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003eAt least 90% of their incomes whether\r\nrealized or unrealized are distributed \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.25pt\u0027\u003eamong the\r\nunit or certificate holders.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.2pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e21.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.2pt\u0027\u003eIncome should not be from trading activity\r\nand at least 90% of the profits of the \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.25pt\u0027\u003eyear should\r\nbe distributed among the certificate holders.\u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.5pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e22.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.5pt\u0027\u003eAgriculture income means rent or revenue\r\nderived from agricultural land \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.2pt\u0027\u003esituated in Pakistan.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e23.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.15pt\u0027\u003eFor the purpose of this exemption, payer\r\nand payee must not associates,\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n-.05pt\u0027\u003esecurity issued outside Pakistan for raising loan, profit paid outside\r\nPakistan \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New 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See\r\nsection 46 of the Income Tax Ordinance, \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099\u0027\u003e2001.\u003cspan style=\u0027letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e24.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.15pt\u0027\u003eFor the purpose of this exemption, the\r\nperson is resident only due to his\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n-.1pt\u0027\u003eemployment in Pakistan and he is resident in Pakistan for a period not\r\nmore than three years.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:-.25pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e25.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003c!--[if gte vml 1]\u003e\u003cv:line id=\"_x0000_s1042\"\r\n style=\u0027position:absolute;left:0;text-align:left;z-index:7;\r\n mso-wrap-distance-left:0;mso-wrap-distance-right:0;mso-position-horizontal:left\u0027\r\n from=\"0,24pt\" to=\"117.65pt,24pt\" o:allowincell=\"f\" strokeweight=\".5pt\"\u003e\r\n \u003cw:wrap type=\"square\"/\u003e\r\n\u003c/v:line\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=159 height=2\r\nsrc=\"2014J25_files/image007.gif\" align=left v:shapes=\"_x0000_s1042\"\u003e\u003c![endif]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n-.25pt\u0027\u003eSuch income is exempt for two years starting from the year in which the\r\nperson \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:-.15pt\u0027\u003ebecame resident if the income accrues or\r\narises outside Pakistan and the person \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:-.05pt\u0027\u003ewas non\r\n-resident of Pakistan in any of the four years immediately preceding \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n-.1pt\u0027\u003ethe year in which he became again resident.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.15pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e26.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.15pt\u0027\u003eSee Part III of the Second Schedule to the\r\nIncome Tax Ordinance, 2001 that\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e describes beneficiaries\r\nof reduced tax liability. \u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e27.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099\u0027\u003eJ\u003cspan style=\u0027mso-bidi-font-weight:bold\u0027\u003e. \u003c/span\u003eMatinez-Vazquez\r\n. Pakistan: A Preliminary Assessment of the Federal Taxes\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eSystem.\r\nInternational Studies Program, Working Paper 06-24, December 2006, \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:-.05pt\u0027\u003eavailable at \u003c/span\u003e\u003c/span\u003e\u003ca\r\nhref=\"http://aysps.gsu.edu/isp/files/ispwp0624.pdf.\"\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:-.05pt;\r\ntext-decoration:none;text-underline:none\u0027\u003ehttp://aysps.gsu.edu/isp/files/ispwp0624.pdf.\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e28.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099\u0027\u003eW. Thirsk. Tax Policy in Pakistan: An Assessment of Major Taxes\r\nand Options\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e \u003c/span\u003efor Reform. International\r\nStudies Program, Working Paper 08-08, December, 2008, p.5, available at \u003c/span\u003e\u003ca\r\nhref=\"http://aysps.gsu.edu/isp/files/ispwp0808.pdf.\"\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;text-decoration:none;\r\ntext-underline:none\u0027\u003ehttp://aysps.gsu.edu/isp/files/ispwp0808.pdf.\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e29.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.45pt\u0027\u003eTax avoidance comprises of activities which\r\nexploit the loopholes in the tax\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.35pt\u0027\u003esystem but run counter to the purpose of law whereas tax evasion\r\ndescribes \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.3pt\u0027\u003eillegal activities that involve element of\r\nconcealment. C. Fuest and N. Riedel. \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.35pt\u0027\u003eTax evasion,\r\ntax avoidance and tax expenditures in developing countries: A \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003ereview of the literature. Oxford University Centre for Business\r\nTaxation, June \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099\u0027\u003e2009. p. 3, available at \u003c/span\u003e\u003ca\r\nhref=\"http://www.sbs.ox.ac.uk/centres/tax/Documents/\"\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;text-decoration:none;\r\ntext-underline:none\u0027\u003ehttp://www.sbs.ox.ac.uk/centres/tax/Documents/\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003e\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e  \u003c/span\u003e\u003cspan style=\u0027letter-spacing:.35pt\u0027\u003ereports/TaxEvasionReportDFIDFINAL1906.pdf.\r\n(Accessed on 10 February, \u003c/span\u003e2013).\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.3pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e30.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.3pt\u0027\u003eMatinez-Vazquez, note 27. p.40.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.5pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e31.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.5pt\u0027\u003eS. A. Zaidi. Pakistan\u0027s roller-Coaster\r\neconomy: tax evasion stifles Growth.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003eCarnegie\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e           \u003c/span\u003ePolicy\u003cspan style=\u0027mso-tab-count:\r\n1\u0027\u003e            \u003c/span\u003eBrief,\u003cspan style=\u0027mso-tab-count:1\u0027\u003e    \u003c/span\u003eSeptember,\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003e2010,\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003ep.9,\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e      \u003c/span\u003eavailable\u003cspan style=\u0027mso-tab-count:1\u0027\u003e           \u003c/span\u003eat\u003cbr\u003e\r\n\u003c/span\u003e\u003ca href=\"http://www.carnegieendowment.brg/files/pakistan_tax.pdf.\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.3pt;text-decoration:none;text-underline:none\u0027\u003ehttp://www.carnegieendowment.brg/files/pakistan_tax.pdf.\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e32.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.4pt\u0027\u003eSee Dawn \u0026quot;FBR Chief Issues Warning to\r\nTax Evaders\u0026quot; 26 January, 2013, \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.3pt\u0027\u003eavailable at \u003c/span\u003e\u003ca\r\nhref=\"http://dawn.com/2013/01/26/fbr-chief-says-countrys-tax-system-needs-reforms/\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.3pt;text-decoration:none;text-underline:none\u0027\u003ehttp://dawn.com/2013/01/26/fbr-chief-says-countrys-tax-system \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.2pt;text-decoration:none;text-underline:none\u0027\u003eneeds-reforms/.\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e33.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.25pt\u0027\u003eThe tax gap is commonly defined as the\r\ndifference between the tax which would\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.3pt\u0027\u003ebe raised under a hypothetical, perfect enforcement of tax laws and the\r\nactual \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt\u0027\u003etax payments. See Fuest and Riedel, note\r\n29. p.15.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.35pt;\r\nmso-bidi-font-weight:bold\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e34.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.35pt;mso-bidi-font-weight:bold\u0027\u003eR. \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.35pt\u0027\u003eA. Ahmed and M. Rider. Pakistan\u0027s Tax Gap: Estimates by Tax Calculation\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.3pt\u0027\u003eand Methodology. Working Paper 08-11,\r\nDecember 2008, P.50.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e35.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003c!--[if gte vml 1]\u003e\u003cv:line id=\"_x0000_s1043\"\r\n style=\u0027position:absolute;left:0;text-align:left;z-index:8;\r\n mso-wrap-distance-left:0;mso-wrap-distance-right:0;mso-position-horizontal:left\u0027\r\n from=\"0,.6pt\" to=\"95.05pt,.6pt\" o:allowincell=\"f\" strokeweight=\".5pt\"\u003e\r\n \u003cw:wrap type=\"square\"/\u003e\r\n\u003c/v:line\u003e\u003c![endif]--\u003e\u003c![if !vml]\u003e\u003cimg width=129 height=2\r\nsrc=\"2014J25_files/image008.gif\" align=left v:shapes=\"_x0000_s1043\"\u003e\u003c![endif]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003eMatinez-Vazquez, note 27. p.40.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e36.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099\u0027\u003eSee Chapter 14 \u0026quot;Energy\u0026quot; of Economic Survey of Pakistan\r\n2011/12, available at\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e hup://\u003c/span\u003e\u003c/span\u003e\u003ca\r\nhref=\"http://www.finance.gov.pk/survey/chapter_12/14-Energy.pdf.\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt;text-decoration:none;text-underline:none\u0027\u003ewww.finance.gov.pk/survey/chapter_12/14-Energy.pdf.\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.7pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e37.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.7pt\u0027\u003eSee Annual Report 2011/12 of State Bank of\r\nPakistan, available at\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003ca\r\nhref=\"http://www.sbp.org.pk/reports/annual/arFY12/Energy.pdf.\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt;text-decoration:none;text-underline:none\u0027\u003ehttp://www.sbp.org.pk/reports/annual/arFY12/Energy.pdf.\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e38.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003eMatinez-Vazquez, note 27. p.28.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e39.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099\u0027\u003eSee, note 37.\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e40.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099\u0027\u003eJ. English, EU Perspective on VAT Exemptions, Oxford University\r\nCentre for\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e Business Taxation, WP 11/11, p.\r\n13, available at http://www.sbs.ox.ac.uk/\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003e\u003c/span\u003ecentres/tax/papers/Documents/WP1111.pdf (accessed on 23 January\r\n2013).\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e41.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003eSee Chapter 1 \u0026quot; Growth and\r\nStabilization\u0026quot; of Economic Survey of Pakistan \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003e2011/12, available at \u003c/span\u003e\u003ca\r\nhref=\"http://www.finance.gov.pk/survey/chapter_12/01-%20GrowthAndStabilization.pdf\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.25pt\u0027\u003ehttp://www.finance.gov.pk/survey/chapter_12/01- \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003eGrowthAndStabilization.pdf\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003e.\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:.5in;text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e42.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003eN. Iqbal and S. Nawaz, Fiscal\r\nDecentralization and Macroeconomic Stability: \u003c/span\u003e\u003cspan style=\u0027font-size:\r\n12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:.65pt\u0027\u003eTheory\r\nand Evidence from Pakistan, Pakistan Institute of Development\u003cbr\u003e\r\n\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003eEconomics,\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e       \u003c/span\u003e2\u003cspan style=\u0027mso-tab-count:1\u0027\u003e          \u003c/span\u003eDecember\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e        \u003c/span\u003e2010,\u003cspan style=\u0027mso-tab-count:1\u0027\u003e   \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.8pt\u0027\u003eavailable at \u003c/span\u003e\u003c/span\u003e\u003ca\r\nhref=\"http://mpra.ub.uni-\"\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.8pt;text-decoration:none;text-underline:none\u0027\u003ehttp://mpra.ub.uni\u0026#8209;\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003e\u003cbr\u003e\r\n\u003cspan style=\u0027letter-spacing:.2pt\u0027\u003emuenchen.de/27184/1/MPRA_paper_27184.pdf\r\n(accessed on 15 January 2013).\u003c/span\u003e\u003cspan style=\u0027letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027letter-spacing:.2pt\u0027\u003eAlso see \u003c/span\u003e\u003c/span\u003e\u003ca\r\nhref=\"http://www.financekpp.gov.pk/FD/attachments/article/154/7th%252ONFC%20A\"\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt;text-decoration:none;text-underline:none\u0027\u003ehttp://www.financekpp.gov.pk/FD/attachments/article/154/7th%2ONFC%20A\u003c/span\u003e\u003c/a\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.2pt\u0027\u003eWARD%202010.pdf.\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.45pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e43.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.45pt\u0027\u003eA.S. Suleiman, The Administration and\r\nProblems of Value Added Tax in \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.25pt\u0027\u003eNigeria, Finance and\r\nAccounting Research Monitor, Vol. 2, No. 2, September \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003e2008,\u003cspan\r\nstyle=\u0027letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=ListParagraph\u003e\u003cspan style=\u0027color:#000099;letter-spacing:.5pt\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-top:0in;margin-right:0in;margin-bottom:0in;\r\nmargin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in;\r\nline-height:normal;mso-list:l4 level1 lfo17\u0027\u003e\u003c![if !supportLists]\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e\u003cspan style=\u0027mso-list:Ignore\u0027\u003e44.\u003cspan style=\u0027font:7.0pt \"Times New Roman\"\u0027\u003e\u0026nbsp;\r\n\u003c/span\u003e\u003c/span\u003e\u003c/span\u003e\u003c![endif]\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.5pt\u0027\u003eH.P. Brixi, C.M.A. Valenduc and Z.L. Swift,\r\nTax Expenditures   Shedding\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\r\n\"Times New Roman\";color:#000099;letter-spacing:.1pt\u0027\u003e \u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.75pt\u0027\u003eLight on Government Spending through the Tax System, Lessons from\u003c/span\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099;letter-spacing:\r\n.1pt\u0027\u003e \u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.25pt\u0027\u003eDeveloped and Transition Economies, The\r\nWorld Bank Washington DC.\u003c/span\u003e\u003cspan style=\u0027font-size:12.0pt;font-family:\"Times New Roman\";\r\ncolor:#000099;letter-spacing:.1pt\u0027\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\";color:#000099\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center;line-height:normal\u0027\u003e\u003cspan\r\nstyle=\u0027font-size:12.0pt;font-family:\"Times New Roman\"\u0027\u003e***\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027line-height:normal\u0027\u003e\u003cspan style=\u0027font-size:12.0pt;\r\nfont-family:\"Times New Roman\"\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\u003c/body\u003e\r\n\r\n\u003c/html\u003e\r\n"