In Brief
POLITICS
Pakistan’s federal cabinet approves privatisation of loss-making Pakistan International Airlines
On 11 September, Pakistan's federal cabinet, led by caretaker Prime Minister Anwaarul Haq Kakar, approved the privatization of Pakistan International Airlines (PIA), which has amassed substantial losses amounting to PKR 750 billion. The cabinet also approved the hiring of a financial advisory consortium to facilitate the sale of PIA, with Federal Minister for Privatisation Fawad Hasan Fawad emphasizing the necessity of the airline’s sale due to its substantial losses and grounded fleet. He stated that they were “suffering such a huge loss only to fly 22 planes,” most of which “completed their flying life.” Fawad further assured that no PIA employees would lose their jobs during the privatisation process. Kakar, however, has expressed concern over the delays in decision-making on PIA matters, calling for complete transparency in the privatisation while determining who is responsible for PIA’s losses. (Zaheer Abbasi, “PIA, other loss-making SOEs: PM for accelerating privatisation process,” Business Recorder, 12 October 2023; Syed Irfan Raza, “Cabinet okays PIA sale amid skyrocketing losses,” Dawn, 12 October 2023)
Imran Khan Challenges Special Court's Indictment Order in IHC
On 11 October, Imran Khan challenged the special court’s 17 October indictment order in the Islamabad High Court (IHC) in the cypher case. Khan, along with PTI Vice Chairman Shah Mahmood Qureshi, is facing charges related to the Official Secrets Act. The special court initiated the indictment process on 9 October, despite Imran Khan's pending petition challenging the in-camera proceedings of the case. He has requested the court to nullify the special court’s 9 October order, stating that the process of indictment was being initiated without the IHC’s ruling on his plea. Khan further stated that he and Qureshi had not received copies of the case as he had requested, and thus refused to sign relevant documents. Separately, Khan has petitioned the IHC to avoid a different arrest in the NAB investigation and corruption cases. (“Cypher: Imran challenges indictment,” The Express Tribune, 11 October 2023)
EXTERNAL
Pakistan signs MoU with UNICEF for securing polio vaccines
On 11 October, Pakistan and the United Nations International Children's Emergency Fund (UNICEF) signed a Memorandum of Understanding (MoU) in relation to procuring vaccines for the Polio Emergency Programme. Polio has been on the rise in Pakistan, prompting the government to commit USD 155 million to support the cause and secure USD 100 million in aid from the Islamic Development Bank (IsDB) and the Bill and Melinda Gates Foundation (BMGF). Pakistan’s Secretary of National Health Services Iftikhar Shallwani appreciated the contribution, stating that “the meticulous groundwork is evident as all necessary documentation was completed.” (Ikram Junaidi, “Pakistan, Unicef sign MoU for procurement of polio vaccines,” Dawn, 12 October 2023)
ECONOMY
World Bank discusses privatisation of Discos in Pakistan
On 12 October, Business Recorder reported on the meeting between a team of World Bank officials led by South Asia Practice Manager for Energy at the World Bank, Simon Stolp, with the Federal Minister for Privatisation, Fawad Hasan Fawad, to discuss the government's agenda for privatisation. The meeting, which took place in Islamabad, focused majorly on discussing the performance of distribution companies (Discos) in Pakistan's power sector. Fawad emphasised the need for a two-step strategy for privatising Discos, potentially involving a concessional model of management control followed by a divestment strategy. Both ministers agreed that this approach is suitable for alleviating the financial burden on the national exchequer and supporting ongoing power sector reform efforts. The World Bank pledged to present a privatisation template for Discos to the ministers of Energy and Privatisation within a week. (“Govt’s sell-off agenda attracts World Bank’s attention,” Business Recorder, 12 October 2023; “DISCOS’ privatisation discussed,” The Express Tribune, 12 October 2023)
IMF forecasts increased government expenditure and reduced debt for Pakistan in 2024
On 12 October, the Business Recorder reported that as per the International Monetary Fund’s (IMF) “Fiscal Monitor” report, Pakistan’s government expenditure will increase in 2024. This rise is projected to be from 19.5 per cent of GDP in 2023 to 20.1 per cent in 2024. The report also anticipates a decline in government gross debt from 76.6 per cent of GDP in 2023 to 72.2 per cent in 2024. Net debt is expected to decrease while government revenue may increase. The government's primary balance is forecasted at 0.4 per cent for 2024, improving from -1.2 per cent in 2023, while the overall balance is expected to be -7.6 per cent for 2024, down from -8.1% in 2023. (Tahir Amin, “IMF sees slight rise in govt expenditure,” Business Recorder, 12 October 2023)
ELECTION
“I feel the elections will be announced and conducted on time,” says Caretaker PM
On 11 October, Caretaker Prime Minister Anwaarul Haq Kakar issued a statement which ruled out any possibility of a delay in Pakistan’s upcoming general elections. In an interview, he stated that the polls would be announced and conducted on time, refuting growing demands for an immediate poll date. The Election Commission of Pakistan (ECP) had earlier announced the elections for late January, following the dissolution of assemblies. Kakar emphasized the government’s commitment to ensuring free and fair elections and encouraged all registered political parties to exercise their rights to canvas, mobilise the masses, and attract public support. (“PM sees ‘no possibility’ of delay in polls,” The Express Tribune, 11 October 2023)
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“The Arab-Israeli conflict is not as old as 1948, just as India-Pakistan conflict is not as old as 1947. They are 1391 years old. That’s when Jews and polytheists were othered. Peace of mind was fought over much before piece of land.”
– Anand Ranganathan
“Afghan refugees expressing satisfaction and gratitude to Pakistan while going voluntarily back.”
– M Faiz Siddiqui
“Pakistan has dispatched 3 retired army generals to Egypt to enter Gaza to train Hamas fighters. These generals are experienced in the art and protocol of surrender.”
– Imitiaz Mahmood
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Shahid Kardar & Mian Mansha, “Privitisation for economic recovery”
Dawn, 12 October 2023
“Privatisation or the winding up options are, understandably, challenged by the employees of these entities and politicians who have been major contributors to their bloated structures. Unfortunately for them, there is overwhelming information on the positive outcomes following privatisation or the opening up of economic sectors such as banking, telecom, etc, that were hitherto closed to private entities.”
Editorial, “Last call”
Dawn, 12 October 2023
“Though the print and electronic media have not been allowed to dwell too long on the topic, the public knows well that it is being ruled by a regime whose priorities and policies are completely at odds with the aspirations of the majority.”
Durdana Najam, “CPEC in the crosschairs of disinformation”
Dawn, 12 October 2023
“One of the most significant threats facing CPEC right from the day it started is the onslaught of fake news and disinformation. Pakistan and China jointly took up this issue during the 7th CPEC Media Forum in Islamabad. Some fake news and propaganda spread against CPEC are: Pakistan falling into China’s debt trap; absence of transparency in the projects, and environmental impacts, especially from the coal-based power projects. The Chinese chargé d’affaires Pang Chunxue, while speaking about the seriousness of the challenge, said: “False propaganda and disinformation on CPEC are on the rise. Hostile forces are trying to undermine the development of CPEC, as well as the unity and mutual trust between the two countries.”
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“As the war in Gaza gets going — and the real war is yet to begin — Pakistan will have to shout even harder to be heard,”
-An opinion in Dawn, “The pear-shaped curve”
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