Thousands of supporters of Pakistan's ousted prime minister Imran Khan clashed with police in Islamabad on Wednesday as they defied a protest ban.
The defiant former prime minister had called followers to a rally outside Parliament to bring down the government and force early elections. The government of Mr Khan’s successor, Shehbaz Sharif, banned the rally and warned Mr Khan he could face arrest if he went ahead with the demonstrations.
Organisers had planned for crowds to travel by car and bus to Islamabad’s city limits, then march on foot.
Streets in major cities were blocked by shipping containers and security forces in an attempt to slow down or stop the protests. Police enforced entry restrictions around the Parliament building in the capital, where Mr Khan had called for his supporters to gather.
Later, clashes ensued and police used tear gas against demonstrators.
Emergency legislation banning gatherings, called section 144, was enacted in Karachi, Lahore, Rawalpindi and Islamabad, among other places.
The country’s Supreme Court ruled later on Wednesday that Mr Khan’s rally could go ahead — but only at a specifically allocated public grounds and on condition the demonstrators disperse after an address by the former prime minister. The court also asked Mr Khan’s lawyer, Babar Awan, to ensure that the rally remains peaceful.
Mr Khan, a former cricket star turned Islamist politician, served as prime minister for over three and half years until last month. He was ousted by a no-confidence vote in Parliament and, since then, he has held rallies with thousands of people across the country.
Mr Khan said his removal from office was the result of a US-organised plot and collusion with Mr Sharif. Washington has also denied any role in Pakistan’s internal politics.
The former leader travelled by helicopter to a highway some 100 kilometres north west of Islamabad, where he condemned the police operation and urged supporters to join the rally.
“My message for the nation: Everyone must break out of the grip of fear to achieve freedom,” he wrote on Twitter, before travelling from the Swabi interchange.
Local TV footage showed police fighting with Mr Khan's supporters and beating them. In some places, officers were even shown breaking protesters' vehicles' windscreens and bundling people into police vans.
Amjad Malik, an interior ministry official, told Reuters no one had been seriously injured in the clashes, which took place mostly in Punjab province.
Interior Minister Rana Sanaullah later said police had carried out a total of 4,417 swoops on Khan supporters' homes, offices and on protest rallies — and had arrested nearly 1,700 people. Of those, 250 were freed after they submitted affidavits that they had nothing to do with the protest march, he said.
Political and economic volatility has deepened in the South Asian nation before a likely announcement by the International Monetary Fund later in the day on whether it will resume a $6 billion rescue package.
With foreign reserves falling to $10.3 billion — lower than two months of imports — a fast-crashing rupee and double-digit inflation, Pakistan's political turmoil has compounded its social and economic discontent.
Mr Sharif said his government was trying to clear up an economic mess that he blamed Mr Khan for.
"You've handed over a sinking economy to us, and now you're planning sit-ins and protest," Mr Sharif said in Islamabad. "We are trying to energise this weak economy."
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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
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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