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In Brief
POLITICS
Pakistan seeks release of USD 10 billion pledged by donors for flood recovery
On 22 September, Pakistan's caretaker Prime Minister Anwaar-ul- Haq Kakar emphasized the importance of unlocking USD 10 billion in pledged donations from around the world to aid the country's recovery from devastating floods. He stated that they were “trying to ensure that the amounts promised and pledged to us are dispersed to Pakistan and are spent on those affected by the floods.” These funds represent over half of what Pakistan estimated it needed to rebound from the disaster. Kakar stressed that the allocated projects align with donor pledges and aim to provide tangible financial assistance to those affected by the floods. He expressed hope that their “development partners will accord priority to the allocation of funds,” as the funding is vital for Pakistan's economic stability. However, concerns have arisen over its future debt obligations, leading to delays in an IMF bailout. (“Pakistan pushing for $10b flood-relief fund disbursement,” The Express Tribune, 22 September 2023)
Former PTI leader joins IPP as PTI's election future uncertain
On 21 September, former National Assembly member and PTI women's wing president, Munazza Hassan, joined the Istehkham-i-Pakistan Party (IPP), dealing another blow to PTI. Former PTI Chairman Jahangir Khan Tareen, stated: “It will be premature to say whether the PTI will be in elections or not.” Some PML-N leaders doubt PTI's symbol will appear on ballot papers. Tareen asserted his eligibility to contest polls despite past disqualification. He expressed confidence in the January 2024 elections. Meanwhile, IPP remains focused on reshaping politics and the economy, while maintaining their “excellent relationship” with the Sharifs. (Zulqernain Tahir, “With another wicket down, PTI fate hangs in balance: Tareen,” Dawn, 23 September 2023)
Caretaker ministers seek bill payment in instalments to aid closed industrial units
On 23 September, Business Recorder reported that Pakistan's Caretaker Minister for Commerce and Industry, Gohar Ijaz, proposed allowing closed industrial units to pay their outstanding electricity bills in ten equal instalments. This would include a ten per cent down payment, aiming to provide relief to these units and help revive the industry. The proposal comes at a time when around one million people across the country are unemployed due to the closure of industrial units. The move seeks to address the economic impact of unpaid bills on industrial sectors, such as textiles and follows a crackdown on electricity theft and defaulters by the government. (Mushtaq Ghumman, “Closed industrial units: Minister advocates payment of power bills in instalments,” Business Recorder, 23 September 2023)
PAKISTAN ELECTIONS 2023
PR Exclusive Update 13
ECP faces criticism on poll dates
On 22 September, a senior official stated that the announcement of the election dates is “not technically possible”. He claimed that once an election date has been officially announced, a formal process that must adhere to certain deadlines will begin. The official elaborated on this reasoning by stating that Section 57 of the Elections Act requires that a polling date announcement be followed by the publication of an election timetable, which starts the electoral cycle. Additionally, PATTAN and Coalition38, a group of more than 150 civil society organizations and labour unions, released a joint statement criticizing the ECP's decision to make an incredibly ambiguous statement about the upcoming general elections, which further compounded the already existing uncertainty. (Iftikhar A. Khan," ‘Technical’ reasons for not giving poll date: official”, Dawn, 23 September 2023)
EXTERNAL
Pakistan's economy is on the verge of collapse, the World Bank warns
On 22 September, the World Bank issued a warning to the incoming government ahead of the new election cycle to make early decisions while making it clear that international lenders and development partners could only offer advice with international experiences of success and some financing; however, that difficult decisions and course corrections could only be made within the country. The positive aspect is that nations with higher rates of profitable growth, including Vietnam, Indonesia, and India, also made the right choices during the crisis and were able to overcome comparable obstacles. Najy Benhassine, Country Director for the World Bank in Pakistan, stated during a news briefing that "this may be Pakistan's moment in making policy shifts.” He also stated that "strong vested interests, including those of military, political, and business leaders, heavily influence policy decisions." According to another official from the World Bank, Pakistan's poverty rate for those living below the USD 3.20 per day middle-income level has decreased to 34.3 per cent by 2018 from 73.5 per cent two decades earlier. However, it has since risen to 39.4 per cent. Additionally, at USD 3.65 per day of income, over 12.5 million people had slipped below the poverty line. (Khaleeq Kiani, “Pakistan’s economy on edge of precipice, warns World Bank,” Dawn, 23 September 2023)
Iran and Pakistan gas pipeline set in motion
On 22 September, the interim Federal Energy, Power, and Petroleum Minister Muhammad Ali said that the long-delayed, billions dollar Iran-Pakistan gas pipeline has begun construction. According to him, the nation's natural gas supplies have declined by 20 per cent since last year, and the administration would work to control load shedding over the winter. He added that the administration was attempting to bring the population the most respite possible by importing additional Russian oil, correcting the refinery problems, and other measures. Ali went on to say that even if the government had purchased gas at greater costs, it was still not possible for it to offer it to the public at lower prices. He also stated that the government was attempting to work with private refineries to supply the demand. “The people will have to use gas wisely,” he continued while addressing the media after inaugurating the Sui Northern Gas Pipelines Limited’s (SNGPL) first Model Customer Service Centre in Lahore. ( “Work on IP gas pipeline launched,” The Express Tribune, 23 September 2023)
ENVIRONMENT/ENGERY
Pakistan’s energy future towards renewable energy
On 21 September, an editorial in The Friday Times “Can Solar Power Fix Pakistan’s Energy Crisis?,” by Sana Ullah sought to look into the future of Pakistan’s energy needs and challenges. Ullah points out that with the country facing exorbitant electricity costs and unrelenting inflationary prices, Pakistan needs to invest in Renewable sources of energy. The writer states that Solar energy that is in abundance has been never profited from. Miriam Katz’s “The Feasibility of Renewable Energy in Pakistan,” informs that if only 0.25 per cent area in Balochsitan at 20 per cent efficiency were used for solar power generation, it would provide enough electricity for the whole country. Additionally, investing in solar energy is beneficial for several reasons where a large portion of the population live in remote regions, solar power is the pragmatic solution. Ullah said: “Pakistan's energy future must be one that not only addresses immediate challenges but also foresees a sustainable, green, and economically vibrant path forward.”(Sana Ullah, “Can Solar Power Fix Pakistan’s Energy Crisis?,” The Friday Times, 21 September 2023)
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