Record 10 million taxpayers in Pakistan, but only 4.4 million file annual returns: World Bank report

Morning! In the first week of Israel's genocide against Palestinians, approximately one million Gazans have been displaced, as reported by the United Nations agency aiding Palestinian refugees.

To help support those affected, here are a few links to donate:

• Al-Khidmat Foundation Pakistan 

• The Palestine Red Crescent Society (PRCS) - supports Debit Card & SadaPay

• Palestine Children’s Relief Fund (PCRF) - supports SadaPay

In this week’s edition:

🏋️‍♂️ World (post-pandemic) 🤝 Us (post-workout)

😬 Millions registered, but few paid up

👾 Money doesn’t grow on trees (even for OpenAI)

✋ PTA’s campaign against Afghan WhatsApp intrusion

- The Itla Squad 💼

Business

Global 🌎️

World (post-pandemic) 🤝 Us (post-workout)

Just like us post a workout session, the global economy is limping, struggling to find its financial fitness in these challenging times.

When slow and steady is taken to heart: "The global economy is limping along, not sprinting," IMF Chief Economist Pierre-Olivier Gourinchas said during a press conference on Tuesday. The world economy is slowing down because of higher interest rates, tensions like the Ukraine crisis, and the Israel-Hamas war - hinting at a slowdown in our recovery from the pandemic.

Worries about oil prices: While IMF Chief Economist said it is "too early" to assess the long-term economic impact of the days-old war between Israel and the Palestinian militant group Hamas, it has started to cause concerns about oil supply disruptions (which is obviously much more important than people losing lives). The concern is related to oil prices being pushed up by 4%. If this keeps up, it could hurt the world economy and make prices for everything go higher.

Everyone is dealt with different cards: The U.S., boosted by strong consumer spending and energy exports, is faring better than the Eurozone, and other regions struggling with higher energy costs. Geopolitical tensions are also affecting global trade, with countries imposing more trade restrictions, creating uncertainty.

Big picture: Prices for things are high everywhere. To handle this, central banks are being careful with money policies. Jobs are stable in many places, which helps a bit. But countries, especially the U.S., need to manage their money wisely to avoid more problems.

TLDR: The world economy is slowing due to higher interest rates, Ukraine crisis, and Israel-Hamas war. Concerns about oil supply disruptions from the conflict have led to a 4% increase in oil prices, potentially impacting the global economy. Different regions face varying economic challenges; the U.S. is relatively stable due to strong consumer spending, while other areas struggle with higher energy costs.

What else is new in news

✶LinkedIn is downsizing once more, saying goodbye to over 700 employees. This move follows a previous round of job cuts in May and several more at its parent company, Microsoft, which has owned LinkedIn since 2016.

Local 🇵🇰

Millions registered, but few paid up

In Pakistan, despite having a record 10 million registered taxpayers, only 4.4 million actually file their returns, a World Bank report reveals. That's a huge of gap, highlighting the struggle of FBR to capture 55% of registered taxpayers.

Tax-to-GDP: Pakistan's tax-to-GDP ratio has dropped to a concerning 9%, far from the targeted 17%. This economic imbalance is causing financial stress, leading to increased borrowing and instability.

Data-sharing challenges: While 84 entities share data, ongoing government debates create uncertainty around efficient data collection. Meeting the 2024 target of 20 entities seems shaky, revealing challenges in managing data effectively.

Tax errors arrears: Handling tax arrears, the overdue taxes owed to the government, is challenging due to incomplete data as FBR faces difficulty tracking specific amounts owed by individuals and entities, hampering efforts to recover these unpaid taxes.

Final grade: Similar to our college grades, The Bank's evaluation gives Pakistan’s tax initiatives a "moderately satisfactory" grade, highlighting implementation delays. To tackle these issues, Pakistan needs more than just data sharing—it requires smart strategies and strong enforcement for improved tax compliance.

TLDR: Pakistan struggles with tax compliance as only 4.4 million out of 10 million registered taxpayers file returns. The tax-to-GDP ratio is at 9%, causing financial stress and increased borrowing. Data-sharing challenges persist, hindering efficient collection. The tax initiatives receive a "moderately satisfactory" grade, indicating implementation delays.

News Flash

✶If your business deals in exports to Europe, you might wanna listen up as a new EU rule demands that firms must report carbon-heavy imports now, and offset emissions by 2026.

Tech

Global 🌎️

OpenAI is taking matters into its own artificial-hands

If your favorite pizza place in town is always full, will you start making your own pizza or start looking at other pizza-making places? OpenAI is in a similar spot, but instead of pizza, they're thinking about something less delicious - AI chips.

What’s up: OpenAI, the creators of ChatGPT, is thinking about creating its own AI chips, which are specialized microprocessors made for artificial intelligence tasks, due to a market shortage. OpenAI's options include developing its own chips or exploring alternative suppliers beyond Nvidia - a leading manufacturer, that produces GPUs (graphics processing units), a type of AI chips.

Money doesn’t grow on trees (even for a global AI powerhouse like OpenAI): Running ChatGPT isn't cheap - it costs about 4 cents for every query. If demand keeps growing, OpenAI might end up spending billions annually. Moreover, the recent AI demand surge signals a scarcity of advanced processors.

To build or buy? Like tech giants Google and Amazon, they're considering designing their own chips. An acquisition might speed things up, but it's risky and costly. Plus, it might result in some bad blood with OpenAI's partnership with Microsoft, which is also into custom AI chips.

Zooming out: The demand for specialized AI chips, especially after ChatGPT's launch, is reshaping the market. Nvidia leads, but the shortage has everyone hunting for solutions. OpenAI's decision, whichever path it takes, could reshape the landscape of AI chip production, impacting the industry in the years to come.

TLDR: OpenAI, facing a shortage of specialized AI chips, is contemplating making its own or seeking alternatives beyond Nvidia. The high costs and potential strain on partnerships pose challenges. The scarcity of advanced processors is reshaping the market, and OpenAI's decision will impact the future of AI chip production.

What else is new in news

✶Say goodbye to passwords as Google's rolling out passkeys as the new default login. Now, Google will let you in with your fingerprint, PIN, or physical key.

Local 🇵🇰 

PTA’s campaign against Afghan WhatsApp intrusion inside Pakistani borders

The Pakistan Telecommunication Authority (PTA) is worried about Afghan numbers using WhatsApp in Pakistani border regions. Blocking these signals has been difficult. While measures were taken in the past, including blocking certain SIM cards linked to terrorism, technical challenges continue.

Seeking solutions: PTA wanted to resolve this through administrative and diplomatic channels, following global telecom guidelines but there has been no response from the Afghan government regarding the use of Afghan SIMs in Pakistan.

Free Wi-Fi troubles: Terrorists have exploited free Wi-Fi services for WhatsApp calls, especially at BRT Bus Stops in Peshawar. PTA’s solution? Implementing a one-time password for Wi-Fi access tied to the phone number to counter this.

Security measures: PTA proposes binding SIM stock to franchises and linking sellers' thumbprints to device identification for added security. Temporary blocking of identity card numbers associated with terrorism is suggested for re-verification.

TLDR: PTA struggles to block Afghan numbers on WhatsApp in Pakistani border areas. Seeking diplomatic solutions, PTA hasn't received a response from the Afghan government. To combat terrorists using free Wi-Fi for WhatsApp, PTA suggests one-time passwords tied to phone numbers. Enhanced security includes linking SIM stock to franchises and sellers' thumbprints for device identification.

Tech tour of news

✶The Cabinet's Economic Coordination Committee (ECC) has given a thumbs-up to the first-ever Telecom Infrastructure Sharing Framework. Plus, they're forming a core group to keep an eye on essential commodity prices and manage product stocks.

More interesting Itla (اطلاع) we consumed:

🎥 This segment from John Stewart's sketch on The Daily Show "We Need to Talk About Israel" would have been witty and not heartbreaking, if it hadn't stayed relevant even after 9 years. It’s a must-watch.

📝 This article on Claudia Goldin's Nobel Prize-winning research on why women often earn less and work less than men, was fascinating. Goldin's work sheds light on challenges faced by women, especially regarding marriage and parenthood, and highlights the need for better support systems (read: supportive men stepping up at home 🧹🧺👶🏻) Fun fact: Goldin is only the third woman among 93 Nobel Prize in Economics winners and the first woman to be the sole recipient in any year.