Pakistan successfully flight tests Fatah-II guided rocket system; IHC grants Imran Khan bail in 190 million pound corruption case
In Brief
EXTERNAL
China wants to upgrade CPEC
On 15 May, Chinese Foreign Minister Wang Yi and his Pakistani counterpart Ishaq Dar co-chaired the fifth round of China- Pakistan Strategic Dialogue. Wang Yi reiterated the “ironclad” relationship between the two countries and China’s keenness to work with Pakistan to develop an “upgraded version” of the China-Pakistan Economic Corridor (CPEC) project. He further stated that “Both sides should effectively implement the Framework Agreement on Industrial Cooperation, strengthening our cooperation in areas like industry, agriculture, mining, new and energy and information technology.” Anadolu Agency quoted Mr Yi who reaffirmed “China’s determination to deepen cooperation with Pakistan will not waver,” Wang Yi also called for greater cooperation on counterterrorism security and urged Pakistan to ensure the safety of Chinese nationals and projects in the country. In this regard, he stated that he hoped “Pakistan will do its best to safeguard Chinese personnel in Pakistan and ensure the security of Chinese businesses and projects so they may continue their work in Pakistan without concern”.
In response, Ishaq Dar described relations with China “as the cornerstone of Pakistan’s foreign policy.” Dar assured Wang Yi of securing Chinese nationals and assets in the country and pledged greater efforts to punish the perpetrators of the attack on Chinese nationals in March. He further called upon the international community to practice “zero-tolerance” against terrorism. Both leaders recognized the strides made by CPEC in the realms of energy and infrastructure and expressed hope of subsequent “positive dividends.”
Mr Dar expressed his condolences over the Shangla attack of 26 March during his meeting with Chinese Vice-Premier Ding Xuexiang stressing that there would be zero tolerance for such crimes. According to the state broadcaster CCTV, Mr Xuexiang revealed that China was interested in maintaining “high-level strategic communication with Pakistan” in order to ensure that the CPEC’s development was “high quality”. (“In talks with Dar, China vows to ‘upgrade’ CPEC,” Dawn, 16 May 2024)
SECURITY
Pakistan successfully flight tests Fatah-II guided rocket system
On 16 May, Dawn reported that the test-launch of Fatah-II guided rocket system by the Pakistani Army has been successful. It will be inducted in the artillery divisions of the army giving it an edge in conventional warfare and capacity for “stand-off and precision engagement of deep target strikes.” The rocket has a range of 400 kilometres. The guidance system makes the rocket “a precision weapon” making it lethal and potent. Further, “the trajectory mode” and “terminal guidance technology” gives it the capability to elude the enemy’s anti-ballistic missile systems. The participating troops and scientists were congratulated by the President, prime minister, chairman Joint Chiefs of Staff committee and army chief for the achievement. (“Fatah-II rocket system launched,” Dawn, 16 May 2024)
POLITICS
IHC grants Imran Khan bail in 190 million pound corruption case
On 15 May, a two-member bench of the Islamabad High Court granted Imran Khan bail in the 190 million pound corruption case on “reasonable ground” and called for “further inquiry” into the allegations of corruption. Imran and his wife Bushra Bibi had been indicted in the case by a Rawalpindi accountability court in February. The NAB had alleged that they played a “pivotal role in the illicit transfer of funds meant for the state of Pakistan into an account designated for the payment of land by Bahria Town, Karachi”. The NAB had also accused them of not providing relevant information and operating with malafide intention. A day earlier, the bench comprising IHC Chief Justice Aamer Farooq and Justice Tariq Mehmood Jahangiri had reserved its decision after listening to the concluding arguments made by the National Accountability Bureau (NAB)’s prosecution team and Khan’s counsel Sardar Latif Khan Khosa. Imran Khan, however, will remain incarcerated as he is serving out his sentences in the cipher and the iddat cases. Khan is set to appear before the Supreme Court today via video as a petitioner in a case relating to changes in country’s accountability. (Umer Burney, “IHC approves Imran Khan’s bail in £190m corruption case,” Dawn, 15 May 2024; Malik Asad & Ikram Junaidi, “Imran to ‘appear before SC’ today after big relief,” Dawn, 16 May 2024)
ECONOMY
Pakistan’s total debt and liabilities has increased to a record PKR 81 trillion
On 16 May, The Express Tribune reported that Pakistan’s total debt and liabilities has increased to approximately PKR 81 trillion in the last year, out of which PKR 4.4 trillion pertains to liabilities. The rate of increase entered double-digits and was clocked at 12 per cent. The average debt accumulation was PKR 31 billion per day over the past year. According to the State Bank of Pakistan, the country’s total debt and liabilities increased by PKR 8.4 trillion at the end of March as compared to the previous year. The PKR 81 trillion debt burden “equals three-fourths of the nation’s economy and is approximately 15 per cent of the GDP.” This is higher than the limit set out in the Fiscal Responsibility and Debt Limitation Act. Successive governments have either failed to make efforts or their economic measures have remained theoretical and not been implemented. At the end of March, Pakistan’s external debt and liabilities stood at USD 130.4 billion, its debt from the IMF amounted to PKR 2.2 trillion and the federal government’s total domestic debt increased to PKR 43.4 trillion. As a result, the country spent PKR 5.8 trillion the total debt servicing compared to PKR 2 trillion earlier, marking an increase of 53 per cent compared to the previous year. (Shahbaz Rana, “Pakistan’s debt soars to record Rs81tr,” The Express Tribune, 16 May 2024)
Power sector demands PKR 1.25 trillion in subsidy for the next fiscal
On 16 May, The News International reported that the power sector has put forth a demand for PKR 1,250 billion in subsidy for the upcoming budget 2024-25. This demand comes amidst an allocation of PKR 23 billion additional subsidy to Pakistan Occupied Kashmir in the current fiscal after the region was rocked by protests. Part of this subsidy is for the power consumers in the region. However, in the case of the power sector demand, if the electricity tariff is not rebased in consultation with Nepra, then the requirement of subsidy would subsequently increase in the next budget. This has turned the situation tricky for the government where if it decides to rebase tariffs on demand, it will require an increase in the range of PKR 7 to PKR 8 per unit with effect from July 2024. Separately, in a meeting chaired by the Finance Minister Aurangzeb at the Finance Division to address the challenges of the industrial sector on energy, the industrial sector demanded reduced tariffs for export-oriented sectors which seem impossible under the IMF mandated reforms. (“Power sector seeks Rs1.25tr subsidy in next fiscal,” The News International, 16 May 2024)
Petrol and High Speed Diesel prices slashed by the government
On 16 May, The Express Tribune reported that the federal government has approved the slashing of petrol price by PKR 15.39 per litre for the next 15 days. This has led to a reduction in price of petrol from PKR 288.49 to PKR 273.10 per litre. The decision comes in the wake of decreasing trend in oil prices in the international market in the last fortnight. The decision will be effective from today. Similarly, the price of high speed diesel has also been redubbed by PKR 7.88 per litre from PKR 281.96 to PKR 274.08. This would mark a major relief for the “inflation-hit nation” and the consumption of oil is expected to grow in the coming days. (“Govt slashes petrol price by Rs15.39/litre,” The News International, 16 May 2024)
JUDICIARY
Universities being destroyed systematically, remarks CJP Isa
On 15 May, while hearing a petition on non-appointment of permanent non-appointment of permanent vice chancellors in government universities, Chief Justice of Pakistan (CJP) Qazi Faez Isa stated that even though universities are the future of Pakistan they were being systematically destroyed. A three-member bench of the apex court which was hearing the case showed dissatisfaction over a report submitted by the Higher Education Commission (HEC) on the public universities across the country as it was incomplete. Further, the court asked for a progress report to be submitted within a month, detailing the appointment of permanent vice chancellors in the public sector universities, the ratio of academic and non-academic staff there, vacant posts of controller examinations as well as director finance of the universities and the details of the budget. The submitted report had revealed that out of 154 public universities across Pakistan, 66 either did not have an appointed vice chancellor or the additional charge of the post had been given. (“Universities being systematically destroyed: SC,” The News International, 16 May 2024)
PROVINCES
Balochistan: Talks between a government delegation and Chaman protestors fail
On 15 May, talks between a government delegation and protestors in Chaman, who have been staging a sit-in for several months now, remained inconclusive. The delegation comprising Balochistan Assembly Speaker Captain (retd) Abdul Khaliq Achakzai and Home Minister Mir Ziaullah Langau met with leaders of the Laghari Ittehad which is “an alliance of daily wage earners and members of other political parties” to find an acceptable solution to the protestors demand. The protest is being carried out by hundreds of local tribesmen and daily wage earners who are against “the requirement of new visa and passport restrictions on people of the border town to cross into Afghanistan and vice versa.” Despite the failure of talks, Balochistan Chief Minister Mir Sarfaraz Bugti reiterated the government’s commitment to solving issues through “dialogue” and urged the delegation to keep up their efforts. The Chaman border crossing is one of the most important border crossings between Pakistan and Afghanistan, both for communication and trade. The protests have brought trade and travel through the transit point to a virtual standstill. (Syed Ali Shah, “No headway in talks with Chaman protestors,” The Express Tribune, 16 May 2024)
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“Sindh Govt's new Day-Care center at Police HQ in Saudabad is a milestone for empowering female officers. Aligning with SMBB's vision, it offers a safe space for childcare, enabling officers to focus on duties with peace of mind.”
- Sharjeel Inam Memon
“Economy of Pakistan has been witnessing extremely high inflation and very low economic growth for more than two years. The reason is to rising energy prices in international.”
-Civil Learning
“Resources, Mukhtar Babayev called for collective efforts to protect the environment and deal with the issue of climate change.”
- Ministry of Climate Change & EC Govt of Pakistan
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Faisal Bari, “Merging for what?”
Dawn, 16 May 2024
“The Punjab education minister recently announced that his government is going to merge the Punjab Curriculum and Textbook Board (PCTB), the Punjab Examination Commission (PEC) and the Quaid-i-Azam Academy for Educational Development (QAED), which is the training wing of the education department. The stated reasons for the merger are the need for a) better coordination among these departments, b) reforms in each of these bodies, and c) the introduction of private sector expertise in these areas. No doubt, a lot of reforms are needed in each of these departments. The PCTB does not do much curriculum work, following, instead, the federally suggested curriculum. However, it has made textbook publishing a lucrative and rent-seeking business. Many call the textbook publishing business a ‘mafia’. The entire textbook industry needs reforms.”
Khurram Husain, “The road ahead”
Dawn, 16 May 2024
“For one, a report in this newspaper quotes finance ministry sources as saying that Rs1.6 trillion worth of new FBR revenues will have to be located in the next budget, equal to 1.5 per cent of GDP. Going by the figures given in the second review of the just concluded Stand-by Arrangement (SBA), tax revenues for FY25 are projected to be about Rs2 trillion above what is expected to come in by end FY24. This is not some sort of insurmountable figure. In the current fiscal year, for example, they are on track to bring in a Rs2.9tr hike in tax collection, despite crashing growth. So it can be done, but a credible revenue plan will need to be shared because the populace is more or less at breaking point with the heavy tax burden. Salaried classes cannot bear any further burden, given how much inflation has already eaten into their purchasing power. The rich can bear more, but the real burden of this added revenue requirement has to come from broadening the tax base, because endlessly squeezing those within the net is no way of doing things.”
Ali Tahir, “Should you ban a political party?”
The News International, 16 May 2024
“Under the Elections Act, a political party is defined as an association of citizens or a combination or group of such associations formed with a view to propagating or influencing political opinion and participating in elections for any elective public office or for membership of a legislative body, including an Assembly, the Senate, or local government. The Elections Act in perfect tandem with the constitution itself therefore provides that it shall be lawful for individuals or association of citizens to form, organize, continue or set up a political party.But the said party should not propagate any opinion, or act in a manner prejudicial to the fundamental principles enshrined in the constitution; undermine the sovereignty or integrity of Pakistan, public order or public morality or indulge in terrorism; promote sectarian, regional or provincial hatred or, animosity; bear a name as a militant group or section or assign appointment titles to its leaders or office-bearers which connote leadership of armed groups; impart any military or paramilitary training to its members or other persons; or be formed, organized, set up or convened as a foreign-aided political party.”
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“Deep reforms are the only way to repair economic fundamentals,”
-An opinion in Dawn, ‘Breathing Space.’
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