Business
Can new authority resolve cybersecurity paradox? | The Express Tribune
Questions remain unanswered about funding, institutional coherence and tension with telecom firms
ISLAMABAD:
As the federal IT minister is all set to present the new Cybersecurity Act 2025 for establishing an independent National Cybersecurity Authority (NCA), fundamental questions remain unanswered regarding funding, institutional coherence, and the inherent tension between security and telecom companies.
The government has stated that new secure digital infrastructure will be built under the World Bank-backed Digital Economy Enhancement Project (DEEP). This strategic choice prompts a key question: why is a World Bank-funded project (DEEP), focused on digital public services, being positioned as the backbone for a national security law?
This proposed law pertains to the fourth component of the World Bank’s DEEP, which is Contingent Emergency Response Component (CERC) and is being financed with zero dollars and is primarily about development of a CERC manual that entails an emergency action plan. DEEP is specifically funding the assessment of Pakistan’s cybersecurity infrastructure and the development of a comprehensive cybersecurity roadmap by the end of this year.
By embedding the new Cybersecurity Act’s architecture directly into the DEEP project, the government is seeking to achieve two goals: tapping into international investments and standardisation.
NCA would utilise moderately sized international investment (DEEP) to finance the otherwise expensive development of secure, government-wide infrastructure, bypassing reliance solely on the national budget. At the same time, it shall enforce global best practices, as World Bank projects require stringent standards for data governance and security. Logically, these good practices could be then followed by our National CERT.
However, the question remains: what happens to the existing National Emergency Response Team (PK CERT) and will the Act lead to institutional redundancy? And what roles related to cybersecurity shall remain with the Pakistan Telecommunication Authority (PTA)?
PK CERT (Pakistan Computer Emergency Response Team) is the officially designated National CERT, formally established under the CERT Rules 2023 to handle cyber incident response, threat intelligence sharing, and coordination across national and sectoral CERTs.
Now establishing a new, overarching National Cybersecurity Authority with response powers could create bureaucratic overlaps with the operational functions already mandated to PK CERT. Will the NCA become the policymaking body while PK CERT remains the technical implementation arm, or will the NCA attempt to incorporate the functions of PK CERT in entirety?
Similarly, the PTA has its own comprehensive cybersecurity framework for the telecom sector that is built on six pillars of legal framework, cyber resilience, proactive monitoring and incident response, capacity building, cooperation and collaboration, and public awareness. Collectively, these pillars represent a holistic approach, ensuring a resilient and secure digital infrastructure across Pakistan’s telecom sector.
It remains to be seen whether the new Cybersecurity Act and the establishment of the National Cybersecurity Authority would rationalise or rather confuse the PTA’s security mandate?
The PTA currently operates under a regulatory framework focused on communication and content. The proposed NCA, however, is meant to be the apex technical and policy body for national cybersecurity. If the NCA focuses strictly on national defence and critical infrastructure protection, the PTA’s security role might be limited to telecom operators. This could lead to a clear division of labour.
But if conversely, the NCA demands sweeping powers over all digital infrastructure, it would create a conflict over who sets the technical standards for telecom networks – the established telecom regulator (PTA) or the new cyber authority (NCA).
The PTA’s current dual role as a regulator as well as an enforcer of censorship means its actions are often perceived through a lens of political control rather than technical security. The NCA must ensure that the overall cybersecurity strategy prioritises technical defence and rights protection over the PTA’s tendency towards mass restriction. So, the true test of the new framework is whether the NCA, as a high-level authority focused on technical resilience, will advocate for alternative, targeted security measures instead of blanket shutdowns enforced by the PTA.
In essence, the new Cybersecurity Act provides an opportunity to either formalise the PTA’s necessary security functions under the NCA’s umbrella, thereby improving coherence, or it could simply add another layer of bureaucracy, further muddying the lines of authority over Pakistan’s critical digital space. The need for a “beefed-up incident response” system is undeniable, but it must build on the technical expertise that PK CERT is tasked with developing.
If the new authority is primarily a political or bureaucratic body, it risks sidelining the technical competency of PK CERT, replacing expert-driven incident management with top-down political control.
A similar fiasco happened a few years back when we tried to transfer powers for managing state-owned companies to a newly established withholding company – Sarmaya-e-Pakistan – a move that totally backfired and resulted in wastage of taxpayers’ money.
The writer is a Cambridge graduate and is working as a strategy consultant
Business
D-St blues! Sensex sheds 1.5K, biggest drop on a Budget day – The Times of India
At a time when global markets are witnessing high volatility due to geopolitical uncertainties, the hike in securities transaction tax (STT) on derivatives trades hit investor sentiment on Dalal Street on the Budget day. This in turn led to a sharp sell-off that pulled the sensex down by nearly 1,500 points—its biggest points loss on a Budget day—to close at 80,773 points. The sell-off also left investors poorer by Rs 9.4 lakh crore, the biggest Budget day loss in BSE’s market capitalisation.The day’s trading was marked by high volatility. The sensex rallied over 400 points as FM started her speech, fell about 1,100 points after the STT hike proposal was announced, partially recovered by mid-session to trade 600 points down on the day and then sold-off to close below the 81K mark for the first time in four months.On the NSE, Nifty too treaded a similar path to close 495 points (2%) lower at 24,825 points. Fund managers and market players feel the day’s sell-off was overdone, compounded by the absence of most institutional players since it was a Sunday. “The market’s reaction (to the hike in STT rates) was a bit overdone, although the decision itself was unexpected,” said Taher Badshah, President & Chief Investment Officer, Invesco Mutual Fund. “I think markets should settle down in 2-3 days.” Badshah said the Budget was in line with govt’s set path of the past few years, showing a conservative approach to setting targets.“The revenue and expenditure targets for FY27 are achievable. And since the rate of inflation is lower now, the nominal GDP growth rate of 10% may turn out to be on the higher side as inflation normalises during the year,” the top fund manager said. In Sunday’s market, of the 30 sensex stocks, 26 closed in the red. Among index constituents, Reliance Industries, SBI and ICICI Bank contributed the most to the day’s loss. Buying in software services majors Infosys and TCS cushioned the slide. In all, 2,444 stocks closed in the red compared to 1,699 that closed in the green, BSE data showed.STT hike aimed at curbing F&O speculation The decision to raise securities transaction tax (STT) for trading in equity derivatives means trading futures & options (F&O) will be more expensive from April 1. STT on futures trading rises from 0.02% to 0.05% now, and on options premium and exercise of options to 0.15% from 0.1% and 0.125% respectively. This could more than double statutory costs of trading F&O contracts.While the move is to curb excessive speculation by retail traders who mostly suffer losses, investors sold stocks of those companies that derive a large portion of their turnover from this segment. Stock price of Angel One crashed nearly 9%, BSE crashed 8.1%, Billionbrains Garage Ventures that runs the Groww trading platform, lost 5.1% and Nuvama Wealth Management lost 7.3%. STT hike follows a Sebi survey that showed that 91% of the retail investors lost money in the F&O market with average loss per investor surpassing Rs 1 lakh per year. Institutional and some high net worth players took home most of the profits from the segment.18% GST on brokerage for FPIs removedThe Budget proposed to do away with 18% GST charged on the brokerage that foreign portfolio investors pay in India. Among the host of changes to the GST laws that the finance minister proposed, one was abolishing clause (b) of sub-section (8) of section 13 of the Integrated Goods and Services Tax Act, 2017. This is being “omitted so as to provide that the place of supply for ‘intermediary services’ will be determined as per the default provision under section 13(2) of the IGST Act,” the Budget proposal said.
Business
Buying property from NRIs? Time to lose the TAN – The Times of India
Buying property from an NRI? Worried about obtaining TAN? Not anymore. To relax the compliance burden, the Budget has proposed that resident individuals and HUFs need not have a Tax Deduction and Collection Account Number (TAN) if they are purchasing a property from a non-resident Indian (NRI). The amendment will take effect from Oct 1, 2026.Under the proposed framework, resident individuals or HUFs can report the tax deducted at source (TDS) by quoting PAN, as is done when the transactions are between two residents. Presently, if a person buys an immovable property from a resident seller, the person is not required to obtain TAN to deduct tax at source. However, where the seller of the immovable property is a non-resident, the buyer is required to obtain TAN to deduct tax at source.Ameet Patel, partner at Manohar Chowdhry & Associates, said this used to be a detailed process. “At present, if a resident were to purchase an immovable property from an NRI, there is no separate relaxation regarding compliance with TDS responsibilities. As a result, in such cases, the buyer needs to obtain a TAN, register on the portal, and then deduct TDS u/s. 195, and pay to the govt. Under section 195, as with all other regular TDS sections, a quarterly e-TDS statement is required. A buyer would need professional help for all this.”Hinesh Doshi, CA, welcomed the move. “There used to be an unnecessary compliance burden due to this. While the process to obtain TAN is simple, people used to obtain TAN for just one transaction. So, this is a good riddance.”
Business
Harry Styles and Anthony Joshua among UK’s top tax payers
The former One Direction member-turned-solo artist appears on the Sunday Times list for the first time.
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