World Bank approves additional loan for two key projects; Another IED blast in Kurram kills five soldiers
In Brief
POLITICS
PML-N faces criticism from its own lawmakers over budget for FY25
On 21 June, during the second day of the budget debate, the ruling PML-N party experienced backlash from its own lawmakers who lashed at Finance Minister Muhammad Aurangazeb for presenting a “tax-loaded and IMF-dictated budget.” PPP continued its protest against the budget with only “token participation.” PPP’s protest was seen as a blow to all the members amid reports that both parties had resolved the budget related issues. Separately, opposition members belonging to the Sunni Ittehad Council (SIC) participated in the debate and alleged the political victimization of the party, demanding the release of Imran Khan and other party members. The session had the presence of very less members which drew criticism from many lawmakers. Most of the lawmakers protested the ongoing load-shedding in their constituencies despite the increase in electricity prices. They also questioned the finance minister over indirect taxes and claimed that the country is collecting 70 per cent of revenue through indirect taxes. MQM’s Arshad Vohra sarcastically suggested for “online debate” on the budget. (Amir Wasim, “‘Isolated’ PML-N faces flak from own legislators,” Dawn, 22 June 2024)
ECONOMY
Pakistan records a “significantly lower” Current Account Deficit
On 21 June, the State Bank of Pakistan released data which revealed that Current Account Deficit in this fiscal’s first eleven months stood at USD 464 million. This is significantly lower in comparison to the same period of the previous year when deficit amounted to USD 3.76 billion. The data also revealed that in May 2024, the current amount deficit stood at USD 270. However, there has been a notable shift from April 2024 when the current account posted a surplus of USD 499 million. Low economic growth, high inflation, a hike in exports and remittances have aided in curbing the deficit. Further, “a high interest rate and certain import restrictions” have helped policymakers in lowering the deficit. (“Current account deficit reaches $464m in 11 Months: SBP,” The Express Tribune, 21 June 2024)
World Bank approves additional loan for two key projects
On 21 June, the World Bank’s Board of Executive Directors approved USD 535 million for funding two key projects in Pakistan: Crisis-Resilient Social Protection (CRISP) and the Sindh Livestock and Aquaculture Sectors Transformation (LIVAQUA). An additional funding to CRISP of USD 400 million is aimed at strengthening the country’s social protection system and developing shock resilience among poor and vulnerable households. This will also focus on efforts to improve the national cash transfer programme’s effectiveness. Similarly, additional funding of USD 135 million for the LIVAQUA project is aimed at promoting climate-smart and competitive small and medium producers in Sindh’s livestock and aquaculture sectors. In this regards, World Bank Country Director for Pakistan Najy Benhassine stated that “The catastrophic floods that hit Pakistan in 2022 were a tragic reminder of the importance of building resilience to such disasters, including by strengthening both social protection and sectors that support economic growth and recovery.” The project is also proposed to boost public and private providers’ ability to deliver essential knowledge, inputs, and services such as disease surveillance and control, diagnostic laboratory services, breeding programs, food safety, and the development and transfer of green technologies. Further, it will include all the districts of Sindh. This will benefit more than 940,000 farm families and measures to promote female farmers’ participation and narrow gender gaps. (“World Bank approves $535m loan for social protection, livestock and aquaculture sectors,” The Express Tribune, 21 June 2024)
SECURITY
Another IED blast in Kurram kills five soldiers
On 21 June, Inter-Services Public Relations (ISPR) revealed that a blast caused by an Improvised Explosive Device (IED) on a vehicle killed five Pakistan Army soldiers in Khyber Pakhtunkhwa’s Kurram district. ISPR also stated that “sanitization of the area” was being done to neutralize the terrorists and reiterated that the “Security forces of Pakistan are determined to eliminate the menace of terrorism and such sacrifices of our brave soldiers further strengthen our resolve.” President Asif Ali Zardari condemned the attack and praised the security forces’ patriotism and their role. In addition, Prime Minister Shehbaz Sharif, National Assembly Speaker Ayaz Sadiq, and Interior Minister Mohsin Naqvi also condemned the heinous attack. Earlier, on 16 June, another IED blast had killed four members of a family in Kurram. Separately, at least four security personnel were injured due to cross-border attacks on checkpoints in the district last month These reports show a hike in terrorism in KP and Balochistan, particularly after the end of the ceasefire by the banned Tehreek-i-Taliban in November 2022. The Centre for Research and Security Studies reported that KP and Balochistan were the primary centers of violence with 90 per cent of fatalities and 84 per cent of the attacks. (Tahir Khan, “5 soldiers martyred in IED blast in KP’s Kurram district: ISPR,” Dawn, 21 June 2024)
Punjab imposes Section 144 after PTI announces nationwide protests
On 21 June, the Punjab government imposed Section 144 for seven days to “prevail law and order situation” following a call by the PTI for nationwide protests demanding the release of Imran Khan. No link has, however, been hinted at by the Punjab government between the two developments. The Home Department issued the order stating that all type of protests and public gatherings are banned to prevent any unrest. The order reads: “It has been observed that in view of the prevailing law and order situation and security threats, any gathering/ assembly is likely to provide soft targets to terrorists and miscreants, which not only pose serious security threats but is also likely to cause a threat to the public at peace and order as well as inconvenience to public at large.” Opposition leader Omar Ayub condemned the imposition of Section 144 and asked the Speaker to rule that the ban was a violation of the constitution. The Speaker, however, responded that this was a “provincial matter.” Separately, the PTI noted “multiple illegal police raids” on the PTI leaders’ house in Khanewal. (Ali Waqar, “Section 144 imposed in Punjab for 7 days as PTI calls for protests,” Dawn, 21 June 2024)
FIRs registered following lynching case in Madyan
On 21 June, two FIRs were registered by the Swat police following the lynching of a man in Madyan. However, there have been no arrests so far. Regional Police Officer Muhammad Ali Gandapur stated: “We have launched an inquiry into the incident to gather information. The police have filed two first information reports, one against the deceased and the other against the mob for breaking into the police station, breaking and torching records, and vehicles.” Madyan Station House Officer (SHO) Islamulhaq reported that the FIRs were sealed for “security purposes.” He further revealed that the deceased had been identified as Mohammed Suleman, a Sunni Muslim resident of Sialkot. The deceased had also denied committing the alleged act. Swat District Police Officer (DPO) Dr Zahidullah Khan assured that the situation in Madyan and in Swat was “completely normal and peaceful.” This is the latest development of the lynching incident that took place on 20 June. Separately, the Pakistan Ulema Council (PUC) strongly condemned the attack and underscored that neither Islamic law nor the constitution and Pakistani laws allow the “killing or immolating of any human being.” The council urged the government and all the state institutions especially the police and judiciary to handle such cases “decisively and without any compromise, vested interests or fear.”Further, PML-N former federal minister Khawaja Saad Rafique also condemned the act and called on the KP government to bring the perpetrators to justice. Violence against non-Muslims has witnessed a hike ever since an amendment in blasphemy law made it punishable by death. (Fazal Khaliq, “Swat police register 2 FIRs over man’s lynching in Madyan; arrests yet to be made,” Dawn, 21 June 2024)
PROVINCES
Balochistan: PPP-led coalition government presents the budget for FY25
On 21 June, the PPP-led coalition government of Balochistan province presented a budget of PKR 955.6 billion for the fiscal year 2024 -2025. The budget revealed a development expenditure of PKR 321 billion and a cash surplus of PKR 25.4 billion. Finance Minister Mir Shoaib Ahmed Nosherwani presented the budget which is 36 per cent larger than originally estimated due to the anticipated increase of 39 per cent from the federal tax divisible pool. This is likely to increase from PKR 647 billion to PKR 467.7 billion under the National Finance Commission (NFC) arrangement. Other revenue receipts from the federal government are PKR 20 billion in straight transfer, PKR 20 million in non-developmental grants, and PKR 59.1 billion in development grants. On the other hand, the development expense rose to PKR 321.2 billion from PKR 313.3 billion.
The Finance Minister announced the allocation of PKR 32 billion for education and noted that all the possible efforts were being taken to promote education by providing education to children from ages five to 16 under Article 25-A. He mentioned that 535 new posts will be created in the next financial year. Apart from this, allocation was made for improvement in education in 22 ‘backward’ districts, public sector universities which are facing financial crisis and development spending on higher education.
For the health sector, PKR 20 billion has been allocated, of which PKR 67.3 billion is for non-developmental expenditure (30 per cent increase) and PKR 20 billion for development spending. In this, 242 new posts will be created and PKR 1.3 billion allocated to Pakistan China Friendship Hospital.
The climate change sector was emphasized by the government by introducing different plans to mitigate its negative impacts. PKR10 billion had been allocated under the Green Balochistan Initiative to address the challenges of climate change and the grant for the Disaster Management Authority had been increased to PKR 7.9 billion.
Additionally, the government increased the funds to local governments. Likewise, the federal government, the province also increased the employees’ salaries by 25 per cent for Grades one to 16, 22 per cent for Grades 17 to 22. It has also introduced a contributory pension scheme from 1 July. (Saleem Shahid, “Balochistan budget 2024-25: Nosherwani announces Rs956bn surplus budget,” Dawn, 22 June 2024)
Khyber Pakhtunkhwa: KP government “challenging the writ of the state”, says KP Governor
On 21 June, Khyber Pakhtunkhwa Governor Faisal Karim Kundi met Prime Minister Shahbaz Sharif and Federal Minister for Inter-Provincial Coordination Rana Sanaullah to inform that the KP government is challenging the “writ of the state” by forcefully enteringthe grid station and restoring power supply to many areas. The issue of load-shedding was resolved after months between the center and the province. However, it was revived when the Peshawar Electric Supply Company (Pesco) reduced outages on all grids to 12 hours a day. Energy Minister Awais Leghari details that Pesco power losses are as high as 60 per cent and 20 to 80 per cent of loss would face 15 to 16 hours of outages. To resolve this, the government signed an agreement with Pesco in May. However, the government reneged on the deal after a group of protestors entered the power station to reschedule their load-shedding.
Separately, KP CM Gandapur met Imran Khan and informed his meeting with the federal government. They also discussed the national political situation and the KP’s political strategy. (“KP govt challenging state writ, Kundi tells PM,” Dawn, 22 June 2024)
EXTERNAL
Ambassador Munir urges an international instrument to address “malicious activities” in cyberspace
On 22 June, Ambassador Munir Akram told a United Nations Security Council during a high-level debate that a legally binding international instrument is needed to address growing “malicious activities” in cyberspace. He also mentioned the alleged involvement of an Indian network running a vicious disinformation campaign against Pakistan. The debate was convened by South Korea where Ambassador Munir stated: “This was a systematic and state-led campaign carried out to spread disinformation and misuse the UN as well as European institutions to malign Pakistan.” He expressed concern that several countries including Pakistan are victims of disinformation. He also highlighted the EU DisinfoLab, a Brussels-based NGO report from 2019 and 2020 on anti-Pakistan propaganda and cyber warfare involving ten NGOs, more than 750 fake media outlets, and 550 fake websites. (“Pakistan urges int’l cybersecurity deal,” The Express Tribune, 22 June 2024)
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Time is a fickle thing. There is never too much of it when you need it and always too much when you don’t. A hundred years more would not have been enough with you. Happy birthday to my mother, Shaheed Mohtarma Benazir Bhutto, On what would have been her 71st birthday. Pakistan misses you, and we miss you.
-Bilawal Bhutto Zardari
Is He does not hesitate to abuse his father to assure Imran Khan of his loyalty. The said Umar Ayub himself has also been a member of this group of robbers, his picture is also presented. I could not even imagine that our politics will fall so much.
- Khawaja M. Asif
These people are not equal to Nawaz Sharif's shoes and even if Nawam Sharif dies, these people will earn dollars by using his name.
- Pervaiz Sandhila
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Sakib Sherani, ‘Rearranging the deck chairs’
Dawn, 22 June 2024
“The fiscal pressure has been mounting over many years without serious attention or corrective action. Ten years ago, for fiscal year 2014-15, interest payments on public debt were 62pc of net federal revenue, an elevated but still barely manageable figure. But it was increasingly clear that the pressure was only set to increase further. With the trajectory of capacity payments to IPPs and public sector pension liabilities rising inexorably well into the future, in addition to mounting losses of state-owned enterprises, it was transparent that the fiscal framework was completely unsustainable without major surgery. Yet, despite the warning signs, successive governments have dilly-dallied on structural reform and continued to borrow to finance their unchecked spending spree. Key political constituents such as traders continue to remain untouched, while the federal government’s bloated employee-related expenses continue to soar.”
Imtiaz Gul, ‘Iran’s presidential election: implications for neighbours?’
The Express Tribune, 22 June 2024
“Dr Reza Amiri Moghadam, Iran’s ambassador to Pakistan, offered responses to some of these questions during a recent interview I had with him. “The Islamic Republic of Iran draws its strength from institutions such as the High Council of National Security, Expediency Council, Guardian Council, and a constitution. They all work under the guidance of the Supreme Leader. This rules out any compromise on the fundamental policy principles. Individuals therefore don’t matter in the system,” was the implied reference to the martyrdom of President Raisi. The ambassador insists that over four decades of Western efforts to weaken Iran have failed. The nation is united in its resolve to resist Western imperialism and hence little chance of any individual subverting that national resolve”
M Shahzar Ilahi, ‘Justice beyond the courtroom’
The News International, 22 June 2024
Pakistan faces a case pendency of 2.3 million with only 4300 judges across the country to adjudicate them. Roughly 60,000 cases are pending before the 16 judges of the highest court of law in the land. According to official figures by the Law and Justice Commission of Pakistan, it takes 15 years on average for a civil case to conclude. To make matters worse, Pakistan’s judiciary currently operates with 20-25 per cent vacant positions, primarily due to the unwillingness or lack of adequate skills among the legal fraternity to qualify as judges. The highly litigious nature of society, lack of alternative mechanisms to resolve disputes, and dearth of an effective case management system to filter frivolous suits and FIRs are primarily to be blamed for the enormous case backlog, along with an adversarial, centralized, and overly regulated judicial system inherited from former colonizers. Countries faced with similar challenges have tried various methods to rid themselves of their case backlogs; however, only one mechanism seems to stand out in terms of its efficiency and effectiveness: Alternative Dispute Resolution (ADR).”
Editorial, ‘Another lynching’
Dawn, 22 June 2024
“As per reports, the unfortunate individual was visiting the area from Punjab, and was accused of committing an act of desecration. While police had hauled him away, announcements were allegedly made from local mosques urging people to storm the police station where he was being held. The ensuing events are the stuff of pure horror, as the mob torched the police station, burning alive the victim in the process upon the law enforcers’ refusal to hand him over. This sort of ghastly behaviour has become the norm in Pakistan, as such incidents are occurring with frightening frequency. In most cases, individuals are lynched over accusations of blasphemy, while in others, suspected criminals are beaten to death or shot by mobs. Both varieties of ‘mob justice’ reflect the receding writ of the state.”
Editorial, ‘Power struggle’
The News International, 22 June 2024
“The KP-centre chasm only seems to be widening. Things are not helped by Gandapur alleging that the federal government is punishing the people of KP through loadshedding as some kind of "revenge". However, experts say that the federal government resorts to excessive loadshedding in areas where electricity bill recovery is low and/or there is power theft. KP has a very high number of power theft and line losses, leading to low recovery of bill payments. This is not something new and has been going on for over two decades now. Excessive loadshedding isn’t just a KP-specific issue in any case. Almost all through the country, cries of outrage are now becoming louder as people have to deal with an oppressive summer, disturbingly high-power tariffs, and disappearing power. Last month, there was a resolution passed by the Sindh Assembly against three power supply companies with a demand to reduce power cuts and improve their performance. However, instead of taking law into their own hands, Sindh lawmakers protested on the floor of the house and passed a resolution against power supply companies. This is how civilized governments work.”
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