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In Brief
POLITICS
PM mandates speeding-up the privatization and outsourcing of distribution companies
On 18 April, Prime Minister Shehbaz Sharif chaired a high-level meeting concerning the power sector and ordered the speeding up of the process of “privatization and outsourcing” of the distribution companies (Discos). He stressed the need to seek required expertise from the private sector and from globally accepted models in order to effectively manage the Discos. He emphasized the role of power sector reforms in reducing the burden of circular debt and asked for the presentation of a plan to that effect in the next meeting. Other issues discussed during the meeting were suggestions and plans to stop power theft and the reorganization of the National Transmission and Dispatch Company. Separately, Power Minister Awais Ahmad Khan Leghari accepted the existence of the problem of overbilling alongside electricity theft and the complicity of around 20 per cent officers and staff of his ministry and subsidiaries in instances of overbilling which has caused the national exchequer loss to tune of PKR 360 billion annually. He promised “end this menace” that had become “unaffordable.” (Syed Irfan Raza, “PM pushes for sell-off, outsourcing of Discos,” Dawn, 19 April 202 & Khaleeq Kiani, “Discos guilty of regular overbilling, government concedes,” Dawn, 19 April 2024)
Hafiz Naeemur Rehman takes oath as the sixth amir of Jamaat-e-Islami (JI)
On 18 April, Hafiz Naeemur Rehman, took oath as the sixth amir of Jamaat-e-Islami (JI) for five year term. The event was attended by party workers and party leaders including including the former amir Sirajul Haq and senior leader Liaqat Baloch. He reiterated the party’s commitment to “safeguarding Pakistan” and likened it to “protecting a mosque.” He criticized “corrupt politics and feudalism,” promised to address issues plaguing Balochistan and vowed to protect Punjab from injustices. He also announced that the party will initiate a protest against the current government against alleged rigging during 8 February elections. (“Hafiz Naeem takes oath as new JI chief,” The Express Tribune, 18 April 2024)
ECONOMY
Focus should be on reforms and not the size of the loan, stresses IMF
On 18 April, the International Monetary Fund (IMF) stressed that reforms to “revitalize” the economy must be prioritized over the “size of the new loan package” being sought. At a news conference in Washington, IMF’s Middle East and Central Asia Director Jihad Azour argued “I think what is important at this stage is to accelerate the reforms, double down on the structure of reforms in order to provide Pakistan with its full potential of growth.” This was in response to Finance Minister of Pakistan Muhammad Aurangzeb’s statement that the country was seeking “significant, extended loan package with the IMF.” The deal under negotiation if approved would be Pakistan’s twenty-fourth IMF loan and the largest until now. The Finance Minister reiterated Pakistan’s commitment to implementing reforms underlined both in the current package that ends this month and the one being negotiated. It is to be noted that before the new deal is finalized, the IMF wants Pakistan privatize loss-making state enterprises. (Anwar Iqbal, “IMF insists on reforms as talks progress for new loan,” Dawn, 19 April 2024)
Government seeks to deregulate fuel prices amid criticism
On 19 April, Dawn reported that the government has decided to deregulate the prices of petroleum products. The petroleum division directed the Oil and Gas Regulatory Authority (Ogra) “to share a presentation on the analysis and implications of deregulation of petroleum products” immediately. A senior government official told Dawn that the directive was issued as per an instruction from the prime minister’s office which urged a quick “deregulation framework for the petroleum sector.” This move comes in the wake of increasing fuel prices and the oil industry’s complaints over an increase in influx of smuggled oil products. The move is touted as one that aims to shift the blame to oil marketing companies (OMCs) from the government. The government has been under criticism for two reasons: first, for rising fuel prices even though it does not have the freedom to change tax rates under the “donor-dictated pricing mechanism” and second, for not being able to stop the smuggling of low-quality petroleum and its cheaper products, especially from Iran. (Khaleeq Kiani, “Government eyes deregulation of fuel prices,” Dawn, 19 April 2024)
SOCIETY
Pakistan ranked second in the list of countries with worst air quality
On 18 April, The Express Tribune reported that Pakistan is ranked second in the latest list of countries with worst air quality. In the recent report by Swiss monitor IQAir, Bangladesh, Pakistan and India were found to be “the world’s three smoggiest countries in 2023.” The average concentrations of PM2.5 which is known to cause lung cancer increased in Pakistan from 70.9 to 73.7 micrograms. This value is significantly higher than the World Health Organization’s recommendation of 5 micrograms. According to the report, Lahore is the fifth-most polluted city in 2023. Other cities with bad air quality include Faisalabad, Peshawar, Rawalpindi, Karachi and Islamabad. The major factors contributing to air pollution are “climate change, industrial and vehicular emissions, increasing solid waste generation, deforestation, unplanned urbanization, and a population influx towards big cities.” However, some environmentalists like, Islamabad-based Hamid Sarfraz, argue that this is a result of chronic “institutional and behavioural failures.” (“How Pakistan got unenviable second spot among countries with worst air quality,” The Express Tribune, 18 April 2024)
PROVINCES
Balochistan: Seven more dead as heavy rains continue to batter the province
On 19 April, Dawn reported seven more casualties in Chaman area due to heavy rains and thunderstorms that started last week and continue to inflict damage in the province. According to Chaman Deputy Commissioner Athar Abbas Raja, the seven deaths resulted from a car being swept away by the flash floods. He also revealed that there have been instances of houses being swept away, roads have been damaged, railways tracks have been affected and dams have also been washed away as a result of the flash floods. Trade with Afghanistan has also come to a halt due to a break down in connectivity. Collectively, 17 people have died and 5 injured in various incidents of roof collapses, lightning strikes and other mishaps. (Saleem Shahid, “15 killed in Chaman, AJK as rain continues to wreak havoc,” Dawn, 19 April 2024)
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