PAKISTAN READER

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IMF ready to hold talks on new programme in coming months

In Focus
IMF ready to hold talks on new programme in coming months

On 6 April, Business Recorder reported that as per the Director of the Communications Department at IMF, Julie Kozack, the IMF is ready to engage in new programme discussions in the upcoming months to resolve Pakistan’s fiscal and external stability challenges and enable inclusive growth. Earlier on 19 March, IMF staff and Pakistani authorities reached a staff-level agreement on the final review under Pakistan’s Stand-By Arrangement (SBA), under which Pakistan will get USD 1.1 billion subject to the Board’s approval. This agreement, as per Kozack, recognized the strong programme implementation by the State Bank of Pakistan, the caretaker government, and the new government’s proposed policy reforms. She noted an improvement in Pakistan’s economic and financial situation since the completion of the first review and stated: “Growth and confidence are continuing to recover. And we will be releasing in the next weeks as part of our World Economic Outlook, our latest growth forecasts for Pakistan.” Kozack added that authorities expressed interest in a successor IMF-supported programme to resolve economic challenges, and the Fund officials stand ready to engage in discussions in the coming months.
 
On 3 April, an official from the IMF asserted that the IMF board will decide the release of its “last tranche” to Pakistan by the end of this month. According to Dawn, in July 2023, the IMF approved USD 3 billion in order to bolster the country’s economic situation. Following that on 20 March, both IMF and Pakistan reached a staff-level agreement on the final review of the approval, upon approval, Pakistan will be granted USD 1.1 billion. IMF’s Communication Director Julie Kozack, when asked about the fund talks with Pakistan said the executive board will finalise the tranche. On 04 March, while addressing the federal cabinet, PM Shehbaz Sharif said that the government is planning to avail ‘new programme’ with IMF.
 
On 30 March, Dawn reported that the IMF staff-level agreement (SLA) is anticipated to be reached by the end of the fiscal year (30 June), according to Finance Minister Muhammad Aurangzeb, who also noted that no final talks have yet taken place with the Fund.  The finance minister stated that specifics of the agreement will be reviewed at the spring meetings and that he would be leading a group to Washington on 14 or 15 April. He made this announcement during an appearance at the Pakistan Stock Exchange (PSX) gong ceremony. Aurangzeb addressed the important topic of a new IMF program, stating that in his recent discussions with them, the Fund has been “very receptive” to a “lar­ger and longer program.” He said: “There hasn’t been any final discussion or agreement with them, but it is our wish that by the time we wrap up this fiscal year, the SLA is reached.” “We need the Extended Fund Facility (EFF) to execute the structural reforms programme, with the key word being ‘execute’, and not being bogged down in debate,” he added. (Tahir Amin, “Talks on new program: IMF stands ready: Julie,” Business Recorder, 6 April 2024; “IMF to finalise release of final instalment this month,” Dawn, 5 April 2024; Fatima S Attarwala, “Aurangzeb eyes new IMF deal by end of June,” Dawn, 30 March 2024)
 

In Focus
Judges and officials receive more suspicious letters with “toxic” powder
On 5 April, authorities found ten more suspicious letters, of which some were laced with “toxic” powder and threatening contents, addressed to Prime Minister Shehbaz Sharif, Punjab Chief Minister Maryam Nawaz, and judges of higher courts, including Chief Justice Qazi Faez Isa. Police officers explained to Dawn that the police team took the letters into custody after being informed by the Supreme Court’s staff about the receipt of the letters. A fresh case will not be registered; instead, the five new letters to the judges will be mentioned in a supplementary statement in the FIR already registered at the Counter-Terrorism Department (CTD). Security officials are additionally using surveillance cameras of the Punjab Safe City Authority to trace the dispatchers of the letters, with the home department deciding that the judges’ staff should be given scanners with which suspicious envelopes can be scanned before opening. With regard to the letters addressed to Sharif, Nawaz, and Isa, a senior police officer said that the letter contained a newspaper clipping in which there was “nothing serious, only fake news.” On the same day, the Director General of Pakistan Post directed postmasters to alert offices throughout the country to be vigilant while handling mail addressed to high-profile offices. (Mohammad Asghar & Munaweer Azeem, “More judges receive letters with ‘toxic’ powder,” Dawn, 6 April 2024) 

In Brief
POLITICS
Sharif announces decision to personally review security SOPs
On 5 April, Prime Minister Shehbaz Sharif announced his decision to regularly review and audit Pakistan’s security standard operating procedures (SOPs) in the wake of increasing terrorist activities. He will personally monitor Pakistan’s security situation and audit SOPs. Further, as per the Prime Minister's Office, Sharif  “also instructed (officials) to chalk out a comprehensive strategy for the regular audit of the security SOPs.” He will “personally review the meetings with respect to the overall security of the country, especially the security of the Chinese citizens.” The interior ministry briefed Sharif about its performance and the overall law and order situation and was directed to enhance collaboration with provinces to improve the provincial anti-terrorism departments. As per Dawn’s source, Sharif will chair meetings on the audit of security SOPs monthly. He was additionally satisfied with the security procedures and called for their vigorous implementation. (Syed Irfan Raza & Baqir Sajjad Syed, “PM takes charge of security amid spike in terrorism,” Dawn, 6 April 2024)
 
Maryam Nawaz blames political instability for lack of investment
On 5 April, during her maiden Punjab apex committee meeting, Punjab’s Chief Minister Maryam Nawaz linked “political instability” to fear among foreign and local investors who are “afraid” of investing in the country. Referring to the 9 May riots, she stated: “A political party resorted to terrorism. What the TTP (Tehreek-i-Taliban Pakistan) could not do, a specific political party did by attacking the military installations.” Nawaz also spoke on the various forms of terrorism taking shape. Since terrorism has become “digitalized,” the government needs to “be ahead of them.” Further, “terrorists have the latest weapons and technology.” Nawaz described weapons being smuggled from Afghanistan as a huge challenge and held that the gangs in south Punjab “have more sophisticated weapons” and are technologically ahead of the government. She also spoke on the need to counter right-wing terrorism, under which “social media is one of the major tools” being used to brainwash the youth. Emphasizing the government’s resolve to provide security to the Chinese nationals working in Punjab, Nawaz condemned the Bisham terror attack but pointed out that the “Chinese are resentful when they are asked to follow security protocols” and “don’t want to come under any discipline.” (Zulqernain Tahir, “Political instability keeping investors at bay, says Maryam,” Dawn, 6 April 2024)
 
JUDICIARY
PBC calls for investigation by commission of sitting SC judges into allegations of “meddling”
On 5 April, the Pakistan Bar Council (PBC), the premier regulatory body of lawyers, called for a judicial commission of sitting Supreme Court (SC) judges to look into complaints over alleged meddling of intelligence agencies in judicial affairs. During the 242^nd meeting, the PBC said the commission was necessary for an impartial investigation without external interference. The council’s Vice Chairman, Riazat Ali Sahar, noted the demand for the resignation of the Chief Justice of Pakistan and the Islamabad High Court (IHC) Chief Justice and condemned the social media campaign against them. In the course of the meeting, the PBC said the trolling was uncalled for as it strengthened the hands of those who wanted divisions in the judiciary, leading to the judiciary being undermined and existing issues remaining unresolved. The issue of the alleged interference by intelligence agencies in judicial affairs in the wave of the 25 March letter by six IHC judges to the Supreme Judicial Council was discussed. A seven-judge SC bench took suo motu notice of the case, and the PBC in its resolution urged the SC to decide the case as expeditiously as possible. Further, the resolution highlighted how judges epitomize the legal system’s foundation, and when judges express concern through a written letter, it should be considered a moment of concern to the independent working of the judicial system of Pakistan. Thus the council asserted that a comprehensive investigation into the allegations was “not only justified but necessary” to safeguard the law. The PBC also expressed fear that the fact that judges raised the issue meant they had been “cornered” by the agencies. (Nasir Iqbal, “Pakistan Bar Council proposes sitting SC judges’ commission on ‘meddling’ issue,” Dawn, 6 April 2024)
 
EXTERNAL
FO describes alleged Indian network of extra-judicial killings as “global phenomenon”
On 5 April, the Foreign Office (FO) claimed that the alleged Indian network of extra-judicial and extra-territorial killings had become a “global phenomenon,” and raised a warning that India’s assassination of Pakistanis on Pakistani soil violated the country’s sovereignty and breached the UN Charter. The statement came following a report by The Guardian which cited intelligence officials from both countries and detailed how the Indian government assassinated individuals in Pakistan. The FO brought to light a press conference by Foreign Secretary Syrus Sajjad Qazi in January, where he alleged that there was “credible evidence” of links between Indian agents and the assassination of two Pakistani nations in Sialkot and Rawalkot. In its statement, the FO asserted: “These cases exposed the increasing sophistication and brazenness of Indian-sponsored terrorist acts inside Pakistan, with striking similarities to the pattern observed in other countries, including Canada and the United States.” The FO also emphasized the need to “bring to justice the perpetrators, facilitators, financiers and sponsors of these extrajudicial and extraterritorial killings, and added that
India must be held accountable internationally for its blatant violation of international law.” (“Extraterritorial killings by India need ‘coordinated response’,” The Express Tribune, 6 April 2024)
 
FM Dar and Blinken hold first phone call and discuss “key bilateral issues”
On 5 April, Foreign Minister Ishaq Dar received his first phone call from his US counterpart Antony Blinken, in which both officials reaffirmed their commitment to working together in various fields, including counter-terrorism in the light of a spike in terror cases in Pakistan. Earlier on 4 April, The Guardian published a report revealing that the Indian government under Prime Minister Narendra Modi “ordered killings” on Pakistan’s soil, while in January 2024, Pakistan’s Foreign Secretary Syrus Qazi claimed Pakistan had “credible evidence” of a link between Indian agents and the killing of two Pakistani citizens on Pakistani soil. Following the phone call, Dar wrote on X: “Pleased to receive a congratulatory telephone call from US Secretary of State Antony Blinken. Discussed key bilateral issues and reaffirmed commitment to work together to promote cooperation in the fields of trade, economy, investment and counter-terrorism. Looking forward to continued collaboration between the two countries.” They also discussed matters of regional significance, including the situation in Gaza, the Red Sea, and the developments in Afghanistan. (“In first phone call, FM Dar, Blinken reaffirm commitment to promote cooperation against terrorism,” The News International, 5 April 2024)
 
AF-PAK
Investigation finds involvement of TTP in recent terror attacks in Pakistan
On 6 April, Business Recorder reported that Pakistani investigators looking into the recent terror incidents, including the Besham suicide attack, collected evidence pointing towards the involvement of the Tehreek-e-Taliban Pakistan (TTP). Claiming that the terrorists involved in these attacks received active support from Afghanistan, officials are set to take the matter up with Kabul shortly. A senior government official pointed out: “Pakistan’s stated policy has thus far been that it would not hold any talks with the TTP and that the Afghan interim government is bound under Doha agreement to take action against all militant organizations, including TTP that have taken refuge in Afghanistan.” Earlier on 4 April, Foreign Office spokesperson Mumtaz Zahra Baloch clarified that Pakistan has “no plans to hold talks with TTP,” and expects “the Afghan authorities to take action against these terror groups and their leadership for the crimes they are committing and the terrorist attacks for which they are responsible in Pakistan.” This was said following a recent statement by senior Taliban official Muhammad Nabi Omari, in which he advised Pakistan and the TTP to resolve issues through talks. (Ali Hussain & Nuzhat Nazar, “Islamabad will take up matter with Kabul: Evidence shows TTP’s involvement in terror attacks,” Business Recorder, 6 April 2024)
 
PROVINCES
Punjab: Farmers to hold protests if wheat prices are not revised
On 5 April, the President of the Kisan Board Pakistan, Sardar Zafar Hussain, lamented during a press conference that Punjab’s Chief Minister Maryam Nawaz had “failed her first trial on the agriculture front in the province.” This came after Nawaz decided to retain the previous year’s wheat support price, which was met with disappointment by farmers across Punjab and threats of legal action and protests. Hussain pointed out that Nawaz “decided to maintain the last year’s minimum support price of PKR 3,900 per 40kg of wheat, while the Sindh province has enhanced it to PKR 4,600 per 40kg.” Citing a rise in the rates of fertilizers, pesticides, and other inputs, Hussain demanded the government fix the minimum support price at PKR 5,000 per 40kg to maintain farmers’ interest in the all-important crop. Lamenting that the interests of the rural population had been sacrificed at the altar of “feared reaction” by the urbanites in case of an increase in the prices of wheat flour, he warned that farmers might shift to an alternative and more profitable crop, forcing the government to import wheat at higher prices. Hussain added that the failure of the government to revise the wheat support price would lead to the Kisan Board approaching a court of law against the injustice with the farming community, and a protest staged by farmers. (Amjad Mahmood, “Farmers threaten protests over wheat price stagnation,” Dawn, 6 April 2024)

As I mentioned, we've regressed to a state worse than that of Guatemala, El Salvador, and African banana republics concerning the rule of law and governmental integrity. -Atif Khan   Shahbaz Gill reported that the exposé by Guardian paints a chilling picture of the extent to which Pakistan's intelligence agencies have brazenly meddled in the judiciary, coercing judges into delivering verdicts aligned with their political agenda. The abhorrent tactics described – from the despicable act of kidnapping judges' relatives to the egregious violation of privacy through bedroom surveillance – represent a grotesque assault on the pillars of justice and human decency. It's a harrowing reminder of the lengths authoritarian regimes will go to silence dissent and consolidate power. Such brazen interference not only undermines the credibility of Pakistan’s judiciary but also tarnishes the country’s global reputation. -PTI Canada Official   "The government will not spare any terrorist who disturbs the peace of the country, no matter in which corner of the world they are." Defence Minister Rajnath Singh on the report of International media about the covert operation of India against terrorists in Pakistan. -Baba Banaras

“Instead of expanding its revenue base, the centre is impoverishing the provinces.” -An opinion in Dawn, ‘It’s not the NFC award’