World Bank approves USD 149.7 million loan for floods and technology; Consumers to pay PKR 4.92 per unit extra for February electricity
In Focus
Saudi Arabia agrees to expedite USD five billion initial tranche of investment
On 7 April, following a meeting between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman, Saudi Arabia agreed to fast-track the initial tranche of USD five billion investment in Pakistan. In return, Pakistan will facilitate the process which seeks to enhance economic cooperation between the two countries. As per a joint communique issued from both countries, during the meeting focused on strengthening bilateral ties, emphasis was placed on the “Kingdom’s supportive role in Pakistan’s economy and the mutual desire to strengthen trade and investment ties.” The statement also added that both parties “affirmed their commitment to expediting the first wave of investment package worth USD five billion, which was discussed previously.” Earlier in 2023, Saudi Arabia promised it would invest USD 25 billion in the next five years under the Special Investment Facilitation Council (SIFC). This USD five billion is expected to be invested in the minerals sector. Aside from economic ties, the “two sides stressed the importance of dialogue between Pakistan and India to resolve the outstanding issues between the two countries, especially the Jammu and Kashmir dispute to ensure peace and stability in the region.” Saudi Arabia has been encouraging peace between India and Pakistan and a normalization of relations. Additionally, the leaders called for international efforts to end Israel’s military operations in Gaza and demanded that Israel adhere to international law and allow unhindered humanitarian aid to Gaza. (Baqir Sajjad Syed, “Riyadh to expedite $5bn initial investment in Pakistan,” Dawn, 9 April 2024)
In Focus
World Bank approves USD 149.7 million loan for flood protection and technology enhancement
On 9 April, The Express Tribune reported that the Board of Executive Directors of the World Bank approved financing USD 149.7 million for Pakistan’s ‘Digital Economy’ and ‘Flood Prevention’ projects, directed at enhancing economic efficiency, coordination, transparency and prevention of future floods. USD 78 million has been allocated for the ‘Digital Economy Enhancement Project’ which is aimed at improving the financial system through technology and data-based decision-making; USD 71.7 million has been allocated for improving the project of Sindh barrages to make the canal systems more resilient. As per a press release, the Special Investment Facilitation Council is dedicated to finding technology-based financial solutions to attract foreign investment and strengthen itself in the face of environmental pollution and calamities. (“$149.7m WB loan for flood protection, digitisation,” The Express Tribune, 9 April 2024)
In Brief
POLITICS
Senate holds maiden session to elect chairman amid PTI boycott
On 9 April, as the Senate held its first meeting, PPP’s Yousuf Raza Gilani remained poised to assume the role of the Senate chairman unopposed as a result of a power-sharing deal with the PML-N. The PTI decided to sit out of the elections for chairman and deputy chairman, both scheduled for the same day, giving Gilani a clear path to victory. Under the power-sharing agreement between the PML-N and the PPP, the latter was given the offices of the president, chairman of the Senate, deputy speaker of the National Assembly, and governorships in Punjab and Khyber Pakhtunkhwa. The PML-N, which received the office of the deputy chairman of the Senate among others, is yet to nominate a candidate, though insiders have suggested that Anusha Rahman may be the party’s candidate. Earlier on 8 April, the PTI decided to boycott the “unconstitutional” Senate elections, arguing that the house is incomplete since the senate polls were postponed to the extent of KP after the newly-elected lawmakers on reserved seats were not allowed to take the oath. A PTI spokesperson claimed that conducting elections for the chairman and deputy chairman without senators from KP was equivalent to a murder of democratic values and traditions. (Rizwan Shehzad, “Senate elects chairman amid PTI boycott,” The Express Tribune, 9 April 2024)
ENERGY/ENVIRONMENT
Consumers to pay PKR 4.92 per unit extra for February electricity
On 8 April, the National Electric Power Regulatory Authority (Nepra) notified that consumers would pay PKR 4.92 per unit extra in May for electricity consumed in February, after approving the hike as an additional fuel cost adjustment (FCA). This hike will impact “all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers,” creating a financial impact of roughly PKR 45 billion. Earlier, on behalf of the Discos, the Central Power Purchasing Agency (CPPA) asked for an additional FCA of PKR 4.99 per unit of electricity used in February, claiming that while January’s reference fuel cost was PKR 4.43 per unit, the actual fuel cost was PKR 9.42 per unit. With the additional FCAs remaining over 80 per cent higher than pre-determined fuel costs notified at the beginning of FY24, there are questions about the capabilities of the power sector bureaucracy to forecast fuel costs for six to seven months. The increase in the FCA along with a 26 per cent increase in annual base tariff and a 16 per cent hike in quarterly tariff adjustment means consumers will pay excessive bills despite lower consumption and 77 per cent share of the electricity coming from local resources. Nepra additionally expressed concern over the consistent fall in electricity demand. It noted that the 12 per cent reduction in demand till February 2024 would “consequently result in higher quarterly adjustments, leading to further increase in tariff.” It asked the CPPA and the government to “evaluate the possibilities of reducing capacity charges while remaining within the legal framework.” (Khaleeq Kiani, “Rs4.92 per unit extra for electricity used in Feb,” Dawn, 9 April 2024)
WORLDVIEW
The strike on the Iranian embassy’s consular section may mark a turning point, argues editorial in Dawn
On 9 April, an editorial in Dawn titled ‘Middle East heat’ noted the “sense of foreboding” prevailing over the Middle East, as the world is waiting for Iran’s response to “Israel’s attack on its diplomatic facilities” last week which led to several Iranian military personnel, including two generals, being killed. While the US and Iran have “so far managed the crisis carefully,” there is still scope for danger as the strike could be seen as a “stark provocation by Israel to draw Iran into a direct conflict, also possibly pulling in the US.” This can be proven by a military aide to Iran’s supreme leader warning that “no Israeli diplomatic facilities remain safe anymore,” and Israel’s defence minister asserting that his country can “deal with Iran.” A strong Iranian reaction could lead to Israel calling its Western allies and “playing the victim card,” while a lack of an Iranian reaction could lead to it being seen as “weak domestically” and unable to “defend its interests abroad,” thus emboldening Israel. Despite the “shadow war between Israel and Iran in Syria” being over a decade old, the strike on the Iranian embassy’s consular section may mark a turning point as the temperature in the region has “reached a boiling point.” The editorial contended that in order to prevent escalation, the US “must communicate to Israel that further provocations, particularly targeting sovereign states, will be unacceptable.” Simultaneously, the UN Security Council should send a “similar message to Israel and its backers.” As a “slow-boil conflict” is underway in many parts of the Middle East, if Israel’s “provocative behaviour” continues, the next big war may be “closer than we think.” (“Middle East heat,” Dawn, 9 April 2024)
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After Eid, the Pakistani American Community is gearing up for multiple activities advocating for the release of Chairman and all political workers and supporters detained for a year.
- Atif Khan
April 9th. 2 years, it feels like a lifetime. Where one feels trapped in a never ending twilight zone. Where an entire belief system was turned upside down. Yet, theres always a silver lining. Allah is the best of planners and one only loses when you give up.
-Jarrar Shah
Exactly two years ago, an elected Prime Minister was ousted through a fake vote of no confidence, where votes were bought with money and positions. That was the darkest day in Pakistan’s history. Since then, neither the poor class nor the economy of Pakistan has seen a good day.
-Ihtisham Ul Haq
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Arifa Noor, 'Spinning the ministers’
Dawn, 9 April 2024
“The Punjab information minister was on television the evening ‘fee-gate’ blew up. For those unaware of this great Lahori scandal, it erupted when it emerged that a federal minister, Ahad Cheema, had pushed for a fee waiver for his sons, who had moved to Islamabad but were retaining their seats at school, while the principal of their school was resisting this. Having automatically become a ‘scandal’, it was picked up by television channels in the evening as an example of a government using its influence to interfere in an institution’s affairs. And when scandals arise, government officials have no choice but to defend. It was no different for the Punjab information minister, who got into a heated argument with a talk show host who had decided to pick up the cudgels for the school.”
Muhammad Faisal Ali, ‘Polls & the environment’
Dawn, 9 April 2024
“Sustainable future needs a sustainable environment. In 2023, recorded temperatures reached unprecedented heights, underscoring the global warming trend. These circumstances are increasingly attracting the world’s attention to environment-friendly practices. Such an approach includes electoral procedures. Numerous countries have embraced electronic voting systems, which began to take shape in the late 20th and early 21st centuries. Countries like Brazil, Canada, and Australia were pioneers in adopting EVS on a significant scale. However, it was India that had a profound impact in the global context. In 1999, electronic voting machines were used on a limited scale during the Lok Sabha elections. By 2004, they had become the primary mode of voting nationwide. In fact, India’s adoption of EVMs inspired other nations, especially in the developing world.”
Dr Moonis Ahmar, 'Why is deterrence not working against Israel?'
The Express Tribune, 9 April 2024
"From every standpoint, Israel has been able to ensure its deterrence in the Middle East in terms of its military might and nuclear capability to an extent that no Arab state can match with the technological, economic and military edge of the Jewish state. Israel’s gradual enforcement of deterrence vis-à-vis its Arab neighbours could be gauged from the fact that since 1948, the Jewish state has never been defeated in any of the Arab-Israeli wars, which enabled Israel to occupy Arab territories of Golan Heights, West Bank, Gaza and Sinai. In 2005, Israel withdrew from Gaza but kept that Palestinian enclave under siege. Violating UN Security Council resolutions Israel annexed Golan Heights, East Jerusalem and established illegal Jewish settlements in the West Bank. Deterrence has, thus, worked for Israel while the Arab states have miserably failed to ensure a balance of terror."
Muhammad Hamid Zaman, ‘Posthumous inequity’
The Express Tribune, 9 April 2024
“Feeding the hungry has always been a noble act. Across religions, cultures, traditions and societies, those who feed the hungry are admired and respected. Perhaps it is the universality of admiration for those who feed the hungry that the killing of seven aid workers who worked for World Central Kitchen, an aid agency focusing on feeding the hungry in humanitarian emergencies and famine in Gaza provoked such a global response. There was widespread condemnation, and governments from the US and the UK to Australia and Poland wanted a swift, transparent and thorough investigation. Israeli government issued its apology, and two days later dismissed two senior officers who were supposedly involved in the deadly attack on the aid workers. While tragedy that unfolded in Gaza on April 2, with the killing of seven aid workers, has gotten many around the world upset, there are also important questions being asked. The seven incredible people who died doing the most noble of the deeds were among the many others who have been killed in this war while feeding the hungry and nursing the wounded.”
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