Displaced Afghan families gather to receive food distributed by an Islamabad-based Christian aid group on the outskirts of Chaman, a border town in Pakistan. AP
Displaced Afghan families gather to receive food distributed by an Islamabad-based Christian aid group on the outskirts of Chaman, a border town in Pakistan. AP
Displaced Afghan families gather to receive food distributed by an Islamabad-based Christian aid group on the outskirts of Chaman, a border town in Pakistan. AP
Displaced Afghan families gather to receive food distributed by an Islamabad-based Christian aid group on the outskirts of Chaman, a border town in Pakistan. AP

Pakistan fears another refugee influx as Afghans assemble on its doorstep


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Afghans seeking safe refuge from Taliban rule poured in from all corners of the country to form jostling queues at the doorstep of neighbouring Pakistan, with which Afghanistan shares its longest border.

The vast frontier between the two countries known as the Durand Line stretches for 2,670 kilometres.

Afghan families sit outside their tents in an open area on the outskirts of Chaman, a border town in Pakistan. AP
Afghan families sit outside their tents in an open area on the outskirts of Chaman, a border town in Pakistan. AP

Tajiks from hundreds of miles to the north of Pakistan, Hazaras from the country's central highlands and the more usual local Pashtun traders from nearby Kandahar and Spin Boldak gathered at border crossings clutching small bags of possessions.

Two weeks after the Taliban's stunning takeover of Afghanistan, and after the end of the international airlift from Kabul's beleaguered airport, the country's land borders offer the only exit.

The last US plane left Afghanistan on Monday and Taliban fighters entered Kabul's airport immediately after, firing tracer rounds into the night sky in celebration.

Traffic at the border crossing at Chaman in Pakistan has risen four-fold, officials told The National, with as many as 20,000 entering the country each day.

People arriving from Afghanistan gather at the Friendship Gate crossing point at the border town of Chaman, Pakistan. Reuters
People arriving from Afghanistan gather at the Friendship Gate crossing point at the border town of Chaman, Pakistan. Reuters

Pakistan said it would not allow refugees across and those coming insisted they were travelling for weddings or on family business.

"I am coming from Bamyan province, I am going to my relatives in Quetta," said Jawad Hussain, declining to comment on the Taliban takeover or how they were treating people from his Hazara ethnic group.

Afghans crossing at Chaman arrived amid reports of reprisals against their compatriots who might have worked for the government or its foreign backers, as well as a looming economic and humanitarian crisis.

Muhammad Usman, a resident of the eastern city of Jalalabad, would only say there was “uncertainty” in Afghanistan and he had decided to leave.

Pakistan's politicians fear that the country will again experience a large influx of refugees, as it did in the 1980s and 1990s.

“Pakistan has been hosting about 3.5 million Afghan refugees for years and years now. At the height of the war in that country, we had 5 million refugees,” Information Minister Fawad Chaudhry told reporters at the weekend.

“The conflict in Afghanistan actually scares us ... one major reason is that we don't want more people from Afghanistan here in Pakistan. Our economy is not that strong."

Hundreds of kilometres to the north-west of Chaman, the border at Torkham is closed.

The turbaned Taliban border guards exchange friendly chat with the Pakistani officials on the other side, but the wire gates between them remain firmly closed to Afghans who might flee. There are no crowds to be seen and the Taliban guards are keeping people well back from the frontier.

Qaiser Khan Afridi, spokesman for the United Nations refugee agency, said about 550,000 Afghans had left their homes so far this year, but that internal displacement had not yet turned into a rush to cross into the country's neighbours.

“The Afghanistan crisis remains overwhelmingly within Afghanistan itself. We haven’t seen any large-scale movement of those Afghans wanting to seek asylum in Pakistan. We are closely observing the trends as the situation in Afghanistan remains fluid and uncertain.”

At Chaman, there is a two-way flow across the border. While more are leaving, there are still significant numbers returning to Afghanistan, officials said.

Abdul Salam, a 27-year-old religious student, for one, said he was returning to Afghanistan to live under the new Taliban government.

“The Islamic emirate is established, I am going back to my country. I am excited to see the return of Sharia law in my country,” he said.

Pakistan has been accused by the US of supporting the Afghan Taliban, as it was one of the few countries to recognise the Taliban government that was taken down by the western alliance war with Afghanistan after the 9/11 attacks on New York and Washington in 2001.

Islamabad hasn't yet announced its position towards the change of the political balance in its troubled neighbour nor established any direct contacts with Taliban.

Russia's Muslim Heartlands

Dominic Rubin, Oxford

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The Bloomberg Billionaire Index in full

1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion

SPECS
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Planes grounded by coronavirus

British Airways: Cancels all direct flights to and from mainland China 

Hong Kong-based Cathay Pacific: Cutting capacity to/from mainland China by 50 per cent from Jan. 30

Chicago-based United Airlines: Reducing flights to Beijing, Shanghai, and Hong Kong

Ai Seoul:  Suspended all flights to China

Finnair: Suspending flights to Nanjing and Beijing Daxing until the end of March

Indonesia's Lion Air: Suspending all flights to China from February

South Korea's Asiana Airlines,  Jeju Air  and Jin Air: Suspend all flights

Updated: September 01, 2021, 2:40 PM