LONDON/KARACHI // Exiled Pakistani politician Altaf Hussain, leader of the powerful Muttahida Qaumi Movement, was arrested in London on Tuesday, sparking fears of a violent backlash in Pakistan.
A spokesman at the London headquarters of MQM, one of Pakistan’s major political parties, confirmed that Mr Hussain had been arrested.
He said further details would be released later.
Metropolitan police said a 60-year-old man was arrested on suspicion of money-laundering during an early morning raid on a house in northwest London but declined to confirm his identity. Police in Britain do not name suspects until they are charged. Special operations officers were searching the property.
Mr Hussain, one of Pakistan’s most divisive and controversial leaders, is wanted at home in relation to a murder case.
He has lived in self-imposed exile in London since the early 1990s.
Known for his fiery addresses to his supporters in Karachi through a loudspeaker connected to a telephone, he effectively controls the violent port city from London.
His hold on Karachi is so strong that he is capable of shutting down entire neighbourhoods of the city of 18 million.
Supporters praise him as a business-oriented leader of Pakistan’s middle class, but opponents describe him as a tyrant and accuse him of murder and violence.
Within minutes of his arrest, panicked shop-keepers and market stall owners rushed to close their businesses for fear of violence, Karachi residents said.
“We deployed extra security at the British High Commission in the southern part of Karachi as soon we learnt about Altaf Hussain’s arrest in London through media,” deputy inspector general Abdul Khalique Shaikh said.
“We have increased police patrolling and we are making further deployments at sensitive spots in the city,” he added.
Mohammad Moosa, a resident of Karachi, said: “All shops and markets are shut. Even small cigarette shops are closed. Petrol station operators have also closed down, fearing violence.”
The MQM party’s support base is millions of Muslim Urdu-speaking people whose families migrated to Pakistan at the time of the 1947 partition.
* Reuters, with additional reporting from Associated Press
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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
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en