Electricity Distribution companies (DISCOS) add PKR 600 billion to “circular debt” I Sharp decline in Pakistan’s agriculture sector with 1.15 per cent growth
In Focus
China and Pakistan reassert their “commitment” towards CPEC 2.0
On 10 January, China-Pakistan Economic Corridor Joint Working Group met in Beijing. This was the fifth such meeting where dignitaries from Pakistan and China were present. Both the countries reasserted their pledge to “high-quality development of CPEC 2.0.” Both the countries are especially focusing upon initiatives related to “industrialization, Special Economic Zones, clean energy, agriculture and livelihood.” The meeting recognized the significant role played by CPEC in enhancing “regional connectivity, cooperation and mutual prosperity.” Officials from both countries evaluated the progress since the last meeting which was held in Islamabad. They expressed contentment over improved relations between the two countries and pledged to further deepen their ties. Both countries also discussed increasing their “mutual coordination” at platforms like the United Nations. On another note, China’s ambassador to Pakistan expressed optimism regarding the cooperation between the two countries. He further informed that President Xi Jinping is in touch with President Zardari and PM Sharif and have decided to enhance “China-Pakistan strategic cooperation.” (“Pakistan, China commit to top-notch CPEC 2.0,” Dawn, 12 January 2025)
DISCOS contribute PKR 50 billion/month to circular debt
On 13 January, The News International reported that the electricity Distribution companies (DISCOS) are adding more than PKR 600 billion to “circular debt” yearly. When calculated month wise, it turns out that PKR 50 billion is added to circular debt each month owing to inefficiencies of DISCOS. The total debt has now reached PKR 2.467 trillion. It is also reported that DISCOS have not been able to recuperate their “dues” which were owed to them by consumers of private and public sector firms. The dues have now surged by 69.94 per cent and amount to PKR 2.017 trillion. The influential politicians and industrialists at present have a debt of PKR 1.094 trillion which they have to pay to DISCOS. For enhancing the liquidity of DISCOS, it is essential that they are able to “materialize” more than half of what others owe to it. However, reportedly the people who are involved in decision making of DISCOS are continually ignoring this serious problem.
(Khalid Mustafa, “Discos add Rs600bn to circular debt a year,” The News International, 13 January 2025)
Pakistan’s agriculture sector shows a sharp decline; registers only 1.15 per cent growth
On 13 January, an article in Dawn reported that Pakistan’s agriculture sector registered only 1.15 per cent growth in Q1 FY2024-25 with a sharp decline from last year’s 8.09 per cent. This is due to a 5.93 per cent contraction in crop production which necessitates strategic intervention. The sector’s annual growth averaged only 2.94 per cent over the past decade. This barely surpassed the population growth of 2.55 per cent. The key challenges include a lack of coherent government policies, state initiatives and crop selection and its acreage. The poor implementation of announced support prices for crops like cotton and wheat led to disillusionment among farmers despite initial success. Furthermore, climate-induced issues such as erratic rainfall and rising temperatures resulted in low yields. The authors stated that there should be adaptive measures, targeted subsidies, and crop-specific incentives to ensure food security, value addition, employment generation, import substitution, and exports. The authors also stated that without proactive reforms agriculture risks are going toward stagnation and unpredictable outcomes. (Khalid Saeed Wattoo and Dr Waqar Ahmad, “Farm sector on autopilot,” Dawn, 13 January 2025)
In Brief
POLITICS
PTI sets judicial commission deadline on 31 January
On 12 January, PTI leaders met Imran Khan in Adiala Jail to break the deadlock in talks with the PML-N-led government. The meeting took place a day after National Assembly Speaker Ayaz Sadiq reportedly convinced the government to permit the PTI leaders’ meeting with Imran Khan before the third round of the ongoing talks. The PTI spokesperson Sahibzada Hamid Raza stated to the media that talks could not progress without the PML-N accepting the demand for the constitution of a judicial commission led by senior Supreme Court judges to probe the 9 May and 26 November incidents by 31 January. Raza emphasized PTI’s flexibility and urged the government to present concrete proposals and address demand which also included the release of jailed workers. He clarified that Imran Khan was committed to release only through legal means. He also warned that the £190 million corruption reference would only stain Pakistan’s reputation and that neither Imran Khan and his wife nor his family members benefited from this. These talks have come following after the November crackdown, when both sides agreed to bridge differences and hash out the thorny issues between them. (Rizwan Shehzad, “PTI puts its foot down on judicial probe demand,” The Express Tribune, 13 January 2025)
JUDICIARY
Verdict in Al-Qadir trust case postponed again to 17 January
On 13 January, the verdict in the £190 million Al-Qadir Trust case against Former Premier Imran Khan and his wife, Bushra Bibi was postponed for a third time due their non-appearance in court.Currently, the decision is expected to be announced on 17 January. The decision, which was initially scheduled for 23 December 2024, was delayed due to winter vacations. It was further postponed on 6 January when Judge Nasir Javed Rana was on leave. Allegations claim that billions of rupees and land worth hundreds of kanals were illegally acquired from Bahria Town Ltd to legitimize PKR 50 billion returned by the UK under the PTI government. PTI Central Information Secretary Sheikh Waqqas Akram dismissed accusations against Imran Khan and Bushra Bibi by stating that the Al-Qadir Trust was a university and that it was not the private property of Imran Khan as the land was registered under the trust. Pakistan’s Defence Minister Khawaja Asif also denied claims of US involvement in seeking relief for Imran. (Tahir Naseer, “Verdict against Imran, Bushra in £190m Al-Qadir Trust case postponed for 3rd time,” Dawn, 13 January 2025)
ECONOMY
World Bank identifies six areas of implementation, including poverty alleviation, climate change, air quality, private investments, and child stunting
On 13 January, The News International reported on the World Bank’s Country Partnership Work (CPF) agreed upon with Pakistan. Under CPF, funds worth USD 20 billion would be disbursed to Pakistan for the next ten years. Previous CPFs had lasted for three to five years. The World Bank will emphasize on six main issues for its USD 20 billion disbursement. The areas include poverty alleviation, enhanced efforts to combat climate change, improving the quality of air, efforts to bring a surge in private investments, reducing the number of cases of child stunting, moving towards adoption of clean energy and dedicating more public resources to ensure development for all. The World Bank will also have “scorecards” for “monitoring and evaluation mechanism.” The World Bank is aiming to increase tax collection which is presently at 8.8 per cent of the total GDP to 15 per cent. Further, it envisions 12 million students would be given enhanced education that would stress upon “foundational learning of primary and secondary education.” In addition to that, the World Bank aims to provide 30 million with food security. Close to 75 million would be supported so that they can fight the impact of climate change and 30 million women would be targeted for providing them with “modern contraceptives.” (Mehtab Haider, “World Bank to focus on six major areas under $20bn CPF,” The News International, 13 January 2025)
SECURITY
Bunkers continue to exist in Kurram despite orders from the Deputy Commissioner
On 13 January, The News International reported that the Deputy Commissioner of Kurram Ashfaq Khan’s order was not adhered to regarding the destruction of all bunkers in the region. The Deputy Commissioner had directed the Communication and Works Department engineers to ensure the razing down of all the bunkers. The Communication and Works Department members had ordered the razing down of bunkers in Balishkhel and Khaar Killay, however, their orders were not executed as of yet. On another note, “trader leaders” have put forward their concerns regarding their trucks being stalled in Thall for the past 21 days. The traders warned that they will initiate a demonstration on 13 January if “convoy facility” is not given to them. (“Bunkers in Kurram not demolished despite orders,” The News International, 13 January 2025)
Two miners die in a mine collapse in Balochistan
On 13 January, Dawn reported that two miners lost their lives in the Khost area of Harnai district, Balochistan due to the collapse of a coal mine. The other six miners who got stuck under the mine were rescued on 12 January. The collapse of mine occurred because of development of cracks in the mine. The cracks resulted in “mine cave.” This took place when the eight miners were working in the mine. The leaders of the Labor federation issued condemnation against the death of the miners. They targeted the government and accused it for not ensuring safety standards. They claimed that no one from the government inspected the site. They further called for reforms to ensure that no future deaths occur during mining operations. In a separate incident, on 9 January, 12 coal miners got stuck under the Sanjdi mine when there was an eruption of methane gas. 11 bodies have been retrieved so far. The rescue team is trying to recover another body from the mine. (Saleem Shahid, “Two killed in fresh mishap in Harnai; 11 bodies recovered from Sanjdi mine,” Dawn, 13 January 2025)
EXTERNAL
52 Pakistani nationals face deportation from seven different countries
On 13 January, The News International reported that 52 Pakistani nationals faced deportation from seven different countries. The list of countries comprises the US, Sweden, Saudi Arabia and UAE. Three of the 52 deportees were detained at Karachi Airport. In Sweden, one Pakistani national was deported for staying illegally. In the US, two of the deportees attempted to illegitimately entering the country. In Saudi Arabia, two of the deportees were debarred from the country. One of the deportees was accused of drug related crimes while the other was held for begging. 11 of the deportees sent back from Saudi Arabia were accused of having expired visas while seven others lost their passports and nine were held after their visa sponsors lodged a complaint against them. One of the deportees was sent back from Oman on charges of having expired visa. Two deportees each from Nepal, Saudi Arabia and Malawi were sent back for remaining in the country illegitimately. (Afzal Nadeem Dogar, “52 more Pakistanis deported from different countries,” The News International, 13 January 2025)
Bangladesh to strengthen trade ties with Pakistan by easing the visa process
On 11 January, Bangladesh eased visa processes for Pakistanis by removing the requirement of clearance from Dhaka for heads of missions to strengthen trade ties with Pakistan. Bangladesh’s High Commissioner Iqbal Hussain while speaking at the Lahore Chamber of Commerce & Industry (LCCI) stated the need to increase trade and investment between the two countries. He also highlighted Bangladesh’s 180 million population as a key market for Pakistan. Furthermore, he stressed on regional cooperation and the need for collective efforts to overcome South Asia’s challenges through SAARC. While reflecting on the pandemic, Hussain said: “It is essential to recognize that nations must collaborate in times of crisis to keep trade flowing smoothly.” LCCI President Mian Abuzar Shad stated that bilateral trade between Bangladesh and Pakistan reached USD 718 million in FY 2023-24 where Pakistan exports were at USD 661 million. He also called for collaborative action to raise trade to USD 2 billion and identified IT, pharmaceuticals, rice, and sports goods as high-potential sectors. (Khalid Hasnain, “Bangladesh eases visa process for Pakistanis,” Dawn, 12 January 2025)
Bill introduced in the US to end Pakistan’s major non-NATO ally status
On 13 January, Dawn reported on the tabling of a legislation in the US which calls for removal of Pakistan from US’s major non-NATO ally (MNNA) status. The legislation has been introduced by a Republican congressmen named Andy Biggs. The legislation mainly stresses upon taking action against the Haqqani Network. US had classified Haqqani Network as a “foreign terrorist organization” in the year 2012. According to the experts, the legislation, in the event of it getting passed would not have much ramifications as Sirajuddin Haqqani is currently the interim foreign minister of Afghanistan. Sirajuddin is the son of Haqqani Network institutor Jalaluddin Haqqani. The bill proposes to remove Pakistan’s status of MNNA unless it initiates “military operations” against Haqqani Network’s bases in Pakistan. Further, Pakistan should not allow the Haqqani Network to use its land and detain those who are affiliated to it. Passing of the bill would not allow the US president to reinstate the MNNA status of Pakistan unless the latter decides to fulfill the requirements and takes actions against the Haqqani network. (Anwar Iqbal, “US lawmaker looks to scrap Pakistan’s ‘non-NATO ally’ status,” Dawn, 13 January 2025)
On the recent deportations of Pakistani nationals “governance and societal behavior” bear the blame says an editorial in The News International
On 13 January, an editorial in The News International titled “Deported” discussed the recent deportations faced by Pakistani nationals and what issues have led to a surge in the problem. The editorial mentioned that Pakistani nationals have been accused of working illegally, indulging in drug related crimes and begging which has resulted in many of them getting deported from countries like Saudi Arabia, UAE and China. The gulf countries are now taking stricter actions against the problem of begging owing to a surge in numbers of Pakistani beggars. The editorial views both government and society as part of the problem. The poor economic situation of the country has resulted in lack of job opportunities which has compelled people to illegally migrate to other countries. Deportees who do not have passports indicate the inefficacy of government officials in making sure that everyone travels with appropriate documents. The editorial also criticized the “normalization” of begging at the time of Hajj and Umrah in the society. The editorial viewed the same as “moral transgression” in addition to it also being an illegal activity. The editorial stressed upon the fact that the illegal activities carried out by Pakistani nations bring national shame to the whole country. (“Deported,” The News International, 13 January 2025)
Pakistan to face strained ties under Trump’s 2.0 Presidency
On 13 January, The Express Tribune reported that Pakistan is bracing for strained ties under Donald Trump’s second term as key cabinet members like Trump’s special envoy Richard Grenell hold unfavorable views of Islamabad. The Pakistani mission in Washington is struggling to gain influence as Pakistan is no longer a US priority. During President Biden’s term, the Pakistani mission had limited access. Furthermore, Biden never contacted Pakistani leaders, and US Secretary of State Antony Blinken skipped Islamabad on regional visits. Additionally, a US aide recently claimed Pakistan’s missile program as a threat to the US. This statement was firmly rejected by Islamabad. A Washington-based think tank’s member linked US’s policy towards Pakistan to the latter’s past actions during the war against terrorism. While Biden’s administration helped Pakistan secure IMF bailouts, it fears Trump’s presidency may adopt a tougher stance. The Express Tribune stated that Saudi Arabia could be a crucial diplomatic lifeline where Crown Prince Mohammed bin Salman’s ties to Trump could potentially help counter adverse moves. (Kamran Yousaf, “Pakistan anticipates 'tough times' under Trump 2.0 presidency,” The Express Tribune, 13 January 2025)
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Holding talks does not mean that Imran Khan's crimes will be forgiven
Bilal Azhar Kayan
- PMLN Digital
The wave of terrorism in Pakistan is due to Imran Khan, Khawaja Asif
- PMLN Digital
Imran Khan is a prisoner. To say that the prisoner did not appear in court and therefore put the responsibility of delaying the court's decision for the third time on the prisoner is a weak interpretation.
- Hamid Mir
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"Amidst a severe economic crisis, the failure to appoint qualified leadership is inexcusable."
- An opinion in Dawn, 'Institutional debacle.'
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