Photo : Reuters
Photo : Reuters
In Focus
Pakistan mulls its response to US’s reciprocal tariffs; stock market hit
On 8 April, an article in Dawn revealed that Pakistan is still mulling its response to the reciprocal tariffs imposed by the US. In this regard, a meeting was held by Commerce Minister Jam Kamal on 7 April for textile exporters. It is to be noted that the textile sector accounts for nearly 77 per cent of all of Pakistan’s exports to the US rendering it the most crucial sector. Kamal informed that Pakistani officials, including the Ambassador are engaging in talks with “relevant authorities” in the US. However, the exporters expressed skepticism over the ministry’s “lack of readiness” in the aftermath of Trump’s announcement. Dawn quoted a participant who revealed that the ministry did not disclose its “strategy.” The participant further felt that the discussions were “superficial.”
Separately, the Policy Research and Advisory Council (PRAC) of the Karachi Chamber of Commerce and Industries has evaluated the impact of the tariffs and suggested that Pakistan should “finalize its response promptly” as this will enable it to “extend reciprocal” tariff reductions to the US. The PRAC views this as a solution. Further, it also suggested Pakistan must charge zero duty on exports to “China and Gulf Cooperation Council (GCC) countries as part of its preferential trade agreements.” According to the report, this is the only way forward.
In a difference of opinion, Pakistan Textile Exporters Association Patron-in-Chief Khurram Mukhtar claimed that the tariffs under discussion were not “definitive” and that the “disruption appears strategic.” He also claimed that Pakistan will retain its “competitive advantage” over other major textile exporters to the US due to the former’s “comprehensive supply chain, commitment to quality standards, and robust trade relationships.” He also suggested lowering tariffs on some imports from the US, especially those on cotton, soybean, scrap, and petroleum products so that Pakistan can, in return, negotiate for “reciprocal preferential tariffs on its exports.”
On the same day, an editorial in Dawn titled “Meltdown” discussed the tanking of the stock market following the imposition of reciprocal tariffs by the US and reviewed the responses being suggested in the country. The stock market fell drastically by 7.31 per cent, however, it recovered some of the losses by closing time. The editorial described the response of the stock market as a fear among investors of the likelihood of a recession. The editorial also referenced Finance Minister Muhammad Aurangzeb’s hopeful statement that “You should never let a good crisis go to waste. We are looking at it both as a challenge as well as an opportunity” and cautioned that there is a difference in being optimistic and “discerning.” The editorial highlighted two reasons for optimism. First, a suggestion from various quarters that Pakistan can get concessions from the US by removing import duties on US products. Second, Pakistan can benefit from higher tariffs imposed on its textile-exporting competitors. The editorial, however, disagreed and pointed out that even if Pakistan tried to expand its market in the US, it would not make “high-quality garments and textiles as well as other products our rivals sell to the US.” It is also unclear how Pakistan can fulfill President Trump’s demands of lowering the trade deficit in favor of the US. The editorial also pointed out that changes that are taking place are fundamental as “stability and clarity international trade relations had under the WTO framework would no longer be available.” (Mubarak Zeb Khan, “Govt yet to finalise policy to counter US tariffs,” Dawn, 8 April 2025; “Meltdown,” Dawn, 8 April 2025 )
Pakistan’s Foreign Minister and US Secretary of State discuss bilateral relations, counterterrorism and Afghanistan
On 7 April, Foreign Minister Ishaq Dar engaged in a telephonic conversation with Secretary of State Marco Rubio. This is the first such high-level call between the two countries since President Donald Trump’s re-election. The two sides discussed a host of issues, including the recently imposed tariff of 29 per cent on Pakistan by the US. Rubio thanked Dar for the handover of ISIS-K operative Mohammad Sharifullah and emphasized further cooperation on “counterterrorism, law enforcement and addressing illegal immigration.” Dar echoed Rubio’s sentiment and stressed on Pakistan’s interest in cooperating with the US on counterterrorism and trade and investment. A Foreign Office (FO) statement also revealed that the US was keen on working with Pakistan on critical minerals. In this regard, the FO quoted Rubio as saying “Secretary Rubio reciprocated the desire to collaborate with Pakistan in trade and investment in various sectors, especially critical minerals. He said that cooperation in economy and trade would be the hallmark of future relations between the two countries.” It is to be noted that a US delegation is currently in Pakistan to attend the Pakistan Minerals Investment Forum being held today. Dar also highlighted the role played by Pakistan in fighting terrorism between 2013 and 2018 which caused the country both human and economic loss. Dar also raised the issue of armaments left by the United States in Afghanistan and the threat that it poses to Pakistan. Rubio agreed that the issue needed to be tackled. It was, however, not clear if both sides discussed Pakistan’s allegations that Afghanistan is being used by the TTP to launch attacks into Pakistan. (Azim M. Mian & Mariana Baabar Dar, “Rubio discuss tariffs, immigration in icebreaker phone call,” The News International, 8 April 2025)
Pakistan to showcase 600,000 sq km mineral landscape during Minerals Investment Forum 2025
On 8 April, Dawn reported on the arrival of 2,000 participants, including 300 foreign delegates including companies from Kenya, Finland, Denmark, and the UK for the Minerals Investment Forum 2025 which is to be held from from 8 to 9 April. In an official statement, Petroleum Minister Ali Pervaiz Malik hinted at the probable inking of several MoUs and agreements with China, the US, Saudi Arabia, Turkiye, and Azerbaijan as Pakistan will exhibit an investment potential in mining and mineral resources. Investment opportunities are open across all provinces, Pakistan Occupied Kashmir, and Gilgit-Baltistan as a 600,000 square kilometers mineral landscape exists in the country. A significant portion of the Tethyan mineral belt lies in Balochistan, but its contribution to the GDP has been less than a per cent of the GDP. Speaking at a news conference organized by Inter-Services Public Relations, he alluded to how Pakistan’s mineral and mining sector had separate policies, regulations, and departments to deal with the sector. Currently, six separate minerals policies, 36 rules, and eight Acts regulate the sector. At the summit, a streamlined framework drafted by an international and US consulting firm will be introduced. This framework has borrowed from the successful models of Indonesia, Kazakhstan, and British Columbia to provide investment incentives. (“Pakistan hosts forum on minerals investment today,” Dawn, 8 April 2025; “Pakistan set to market 600,000 sq-km mineral landscape today,” The News International, 8 April 2025)
In Brief
POLITICS & GOVERNANCE
Barrister Gohar expresses interest in a “breakthrough” with the establishment
On 7 April, Pakistan Tehreek-e-Insaaf Chairman, Barrister Gohar Ali Khan called for a breakthrough in talks with the establishment to find “solutions to the problems.” In his media statement, he clarified that the PTI had limited contact with the establishment. He acknowledged Senator Azam Swati’s claim of trying to initiate backchannel talks with the military’s associates and its alleged rejection by the establishment back in 2022. Khan also responded to a bill introduced in the House of Representatives that sought to impose sanctions on Pakistan for alleged human rights violations. It also charged “persecution” of former Prime Minister Imran Khan. He clarified that the PTI had no connection with this. He added that the timing and context in which the bill was introduced were not relevant as the Pakistan-US bilateral relations are positive and based on respect for one another’s sovereignty. (Mumtaz Alvi, “Gohar wants breakthrough with establishment,” The News International, 8 April 2025)
Balochistan protests continue
On 7 April, Senior Vice President of Balochistan National Party (BNP-M), Sajid Tareen claimed that the government has arrested 70 people of which 13 were jailed under the Maintenance of Public Order law. This development comes as the BNP carried out a peaceful protest, marching to Quetta on 6 April. It came to a halt as forces were deployed at Lakpass. These protests were launched against the arrest of Baloch Yakhjecti Committee leader Mahrang Baloch and other activists. He stated that the detainees were unaware of the charges against them and criticized the government for suppressing dissent instead of lending an ear. However, the BNP will continue its protests until its demands are reached, he maintained. Separately, four protestors sustained serious injuries after security forces opened fire in Wadh while FIRs have been reportedly registered against leaders and workers of the BNP. Tareen further claimed that the National Assembly speaker contacted BNP-M President Sardar Akhtar Mengal four times but there was no breakthrough. He added: “We are also unaware of which of our demands the chief minister claims to have accepted.”
In light of government attempts to prevent the marchers from entering Quetta, Mengal announced a shutter-down strike across Balochistan and vowed to hold the sit-in until demands were met. Meanwhile, a contingent of law enforcers was deployed to arrest Mengal. According to the provincial government’s spokesperson, the personnel encircled the sit-in camp at Lakpass for the arrest of Mengal, “who refused to” cooperate with the police after being informed of the authorities’ decision.
On the other hand, a partial strike was observed by the business community in Quetta while all activity was suspended in Mastung, Sibi, Kharan, Noshki, Khuzdar, Kalat, Dera Murad Jamal, Dalbandin, Bela, Uthal, Hub, Turbat, Panjgur and Gwadar. (Mohammad Zafar Baloch. “BNP alleges crackdown in Quetta, denies any breakthrough in talks,” 8 April 2025; Saleem Shahid, “Govt keeps BNP-M long march to Quetta at bay,” Dawn, 7 April 2025; Saleem Shahid, “We are also unaware of which of our demands the chief minister claims to have accepted,” Dawn, 8 April 2025)
On federation:
“Unity cannot be forged by ignoring provincial concerns, silencing dissent or undermining political allies,” argues an editorial in The News International
On 8 April, an editorial titled “Challenges for the federation,” in The News International, highlighted how all is not well within the ruling coalition. It seems likely that the Pakistan Muslim League (N) (PML-N) will successfully complete its five-year term with positive economic indicators, stability, and shrinking opposition from the Pakistan Tehreek-e-Insaaf as the latter is busy dealing with its internal affairs. However, there remain “political and administrative crack” that cannot be overlooked. The PMLN and Pakistan People’s Party are unable to see eye-to-eye on matters, including the six-canal project on the Indus River to irrigate Cholistan. While the federation views it as a development initiative, the PPP sees it as a threat to equitable water distribution. The PPP’s opposition was piqued when President Asif Ali Zardari raised the matter in his address at the joint session of parliament. The editorial observed how this is not a mere inter-coalition issue. It is “representative of a fundamental issue of federal governance.” The editorial warned that by pushing legislation lacking consensus, the center risks “political backlash” and a “legitimacy crisis.” It cites political observers who claim that the project may be the last straw that could “unravel the ruling coalition.” The editorial also highlights another issue. It is the mishandling of ongoing protests in Balochistan. Arrest threats launched against Balochistan National Party (M)’s leader Sardar Akhtar Mengal, if he proceeds with the demonstrations is another example of flawed policy while he calls for the release and justice for the imprisoned Baloch activists. In this situation as well, the government risks alienating people of the province who have already been marginalized. ( “Challenges for the federation,” The News International, 8 April 2025)
ECONOMY
Minister for Planning calls for revitalizing the textile sector to gain global competitiveness
On 8 April, Ahsan Iqbal who is the Minister for Planning, Development and Special Initiatives called for ameliorating Pakistan’s textile sector so that it can survive the competition from other “global brands.” He highlighted the need to emphasize on formulating “competitive value chains” so that Pakistani goods can be sold in other international markets. This statement from the Minister for Planning came during the “meeting of the committee” that has been formulated by PM Sharif to examine the “Export Facilitation Scheme.” The meeting saw the presence of senior members of “Commerce Ministry, Federal Board of Revenue and from other ministries.” Iqbal reaffirmed the federal government’s resolve to facilitate a pro-business “environment” and asked the entrepreneurs to focus on upcoming “global trends.” He also spoke about the need to surge the value of exports to USD 60 billion by the year 2029. Iqbal believes that exports from Pakistan have the capacity to be internationally “recognized,” if the firms focus on “productivity, quality and innovation” (“Textile industry needs upgrade to compete with global brands: Ahsan Iqbal,” The News International, 8 April 2025)
ENERGY
PM Sharif hints at further reduction in electricity prices
On 7 April, PM Sharif stated that the federal government is making attempts to “further” decrease power tariffs. The federal government has chosen to decrease the electricity rates over petroleum prices even with the fall in “global oil prices.” He said “as petroleum prices fall in the global market, we will once again focus on reducing electricity tariffs rather than petrol.” This was confirmed by PM Sharif in a “high-level meeting” that took place in Islamabad. PM Sharif is hoping that a decrease in electricity rates would prove to be beneficial for “all the sectors.” He further informed that the administration is attempting to provide the advantages of decreasing “global oil prices” to the common “public.” (“Power tariffs to drop further in coming months: PM,” The Express Tribune, 7 April 2025)
Ministry of Energy sends letters to DISCOS in Sindh and Balochistan condemning their unsatisfactory performance
On 7 April, the federal government expressed its disappointment with power distribution companies (DISCOS) for not being able to provide satisfactory “performance.” The DISCOS which are owned by the government have been incurring losses. The firms are based in Balochistan and Sindh. The Ministry of Energy wrote letters to Sukkur Hyderabad and electric supply companies, criticizing them for not being able to decrease their losses as was agreed between the federal government and DISCOS. As per sources of Dawn, letters from the Ministry of Energy were sent after a meeting was held where all DISCOS were present and their overall “performance” was being “reviewed.” The meeting praised the DISCOS which were based in “Islamabad, Gujranwala, Faisalabad, and Multan” for exceeding the set targets. The meeting also expressed content over how DISCOS in Peshawar and Lahore have performed. The meeting, nevertheless, condemned the unsatisfactory performance of Sindh-based Hesco and Sepco and Balochistan-based Qesco. In letters to the three DISCOS, the Ministry of Energy criticized them for not being able to bring down “transmission and distribution losses.” (“Loss-making Discos told to put house in order,” Dawn, 8 April 2025)
SECURITY
Security forces neutralize nine militants in an intelligence based operation in Khyber Pakhtunkhwa
On 6 April, security forces initiated an intelligence-based operation in D.I Khan, Khyber Pakhtunkhwa and neutralized nine militants. One of the killed militants was a “high-value target.” Law enforcement agencies were extensively looking out for the “high-value target” militant as he was guilty of being involved in several “terrorist activities.” In addition to that, he was also found guilty of taking the lives of innocent citizens. A clearance operation was launched after the militants were killed to root out any other miscreants in the region. PM Sharif and President Zardari appreciated the efforts put in by security forces. President Zardari stated that the military operations to eradicate militancy would remain uninterrupted. PM Sharif expressed his resolve to eradicate “all forms of terrorism” from Pakistan. (“Security forces kill ringleader among 9 terrorists in DI Khan operation,” The News International, 8 April 2025)
AF-PAK
Pakistan’s envoy to Afghanistan gives ultimatum to Taliban government
On 7 April, Muhammad Sadiq Khan, Pakistan’s special representative to Afghanistan cautioned that the earlier made commitments with Kabul would not stand if the Taliban government does not act upon the anti-Pakistan terrorists present in Afghanistan. Pakistan has continually voiced its concerns regarding anti-Pakistan terrorists getting safe havens in Afghanistan. However, Afghanistan has rejected Islamabad’s claims. He said TTP was a “big challenge” for the Pakistani state and that it cannot afford to sit back as “young” Pakistanis are losing their lives at the hands of TTP terrorists. The statement from the Pakistani envoy read “Afghanistan will have to work with us on this. If they are not working with us, then all deals are off.” The remarks from the envoy were preceded by his discussion with the Taliban government held two weeks back. He also stated that Pakistan would be able to help Afghanistan more if the latter controls “terrorism” emancipating from its territory. (“‘All deals off’ with Taliban if concerns not addressed, says Pakistan envoy,” Dawn, 8 April 2025)
KP adamant on not deporting Afghan refugees forcefully
On 8 April, The News International reported that the Khyber Pakhtunkhwa is locating the refugees from Afghanistan settled in the province. However, in accordance with what KP CM Ali Amin Gandapur directed, stringent measures have not been taken against the refugees. KP CM had earlier vowed that no one would be forcefully deported to Afghanistan. One of the police officials in KP also confirmed the police not taking any “actions” against the refugees. Further, he stated that the people who are going back to Afghanistan have not been forced. The federal government had warned earlier that refugees who do not leave Pakistan by 31 March would face forceful deportation. The deportation process has already started in other provinces like Punjab and Sindh. In spite, of the KP CM assuring that forceful deportation would not take place in the province, many of the refugees have started going back to Afghanistan amid an “uncertain future.” Some of the people going to Afghanistan were “born in Pakistan” and have never been to Afghanistan. On 5 and 6 April, as per the UN International Organization for Migration (IOM), more than 8200 refugees from Afghanistan who possess no documents or have Afghan Citizen Cards have gone back. The Taliban government acknowledged that some of the people have returned to Afghanistan, however, it disagreed with the number provided by IOM. As per the spokesperson of the Refugee Ministry of Afghanistan, close to 7000 Afghan refugees have come back in April. He is anticipating that close to one million Afghan refugees might come back in the coming times. He urged Pakistan to not forcibly repatriate the refugees from Afghanistan and that they should be sent back with “dignity.” (Javed Aziz Khan, “No strict action being taken against Afghan families in KP,” The News International, 8 April 2025; “Thousands of Afghans leave Pakistan as pressure to return intensifies,” The Express Tribune, 7 April 2025)
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- An opinion in Dawn, 'In fight mode.’ |
