Power sector contributes the most to circular debt; National mourning on the death of Iranian President Raisi
In Brief
POLITICS
Pakistan announces day of national mourning on the death of Iranian President Raisi
On 20 May, President Asif Ali Zardari and Prime Minister Shehbaz Sharif expressed sorrow over the sudden death of Iranian President Ebrahim Raisi, with the government announcing a day of mourning in the country. Zardari noted that during his discussions with Raisi, he found the Iranian president to be “very keen” on strengthening bilateral relations. Highlighting that the Islamic world has lost a leader who supported the Muslim cause, he said that Raisi will be “dearly missed and fondly remembered in Iran, Pakistan, and the Islamic World for his efforts to enhance relations with regional and Islamic countries.” Separately, Sharif announced that Pakistan would observe a day of mourning with the flag flying at half-mast as a mark of respect for Raisi and solidarity with Iran. Describing Raisi and Iranian Foreign Minister Hossein Amir Abdollahian (who also died in the helicopter crash) as “good friends of Pakistan,” he said that Pakistan’s “sympathies and prayers are with the family members of the martyrs and the people of Iran.” Sharif visited the Iranian embassy and called Raisi a “sincere brother with high qualities” whose services to Iran and Paksitan would always be remembered. (“Nation to observe day of mourning on Raisi’s demise,” The Express Tribune, 20 May 2024)
Senate Chairman Gilani assumes office of acting president, calls for increased maritime cooperation with Malaysia
On 20 May, Senate Chairman Yousuf Raza Gilani assumed charge as acting president as President Asif Ali Zardari went to UAE for a private visit for four to five days. As per a notification, Zardari made Gilani the acting president and Deputy Senate Chairman Syedaal Khan the acting chairman of the upper house of parliament. After assuming office, Gilani pointed out that “Pakistan and Malaysia enjoy cordial cooperation at all international fora, which need to be further strengthened for the benefit of the two sides.” He made this statement during a meeting which included a delegation of the Chief of the Malaysian Navy, Admiral Tan Sri Abdul Rahman bin Ayob, and Chief of the Naval Staff, Admiral Naveed Ashraf. Gilani expressed satisfaction over the regular conduct of bilateral naval exercises while remaining hopeful that further exploration of avenues of maritime cooperation could cement naval cooperation between the countries. Praising the Malaysian Navy for its regular participation in AMAN exercises, he said “Pakistan is looking forward to the continued support of Malaysia for Pakistan’s bid to become the Full Dialogue Partner of ASEAN.” Separately, during a special investiture ceremony at the Presidency, Gilani conferred the award of Nishan-i-Imtiaz (Military) upon Rahman bin Ayob. (Syed Irfan Raza, “Senate Chairman Gilani takes charge as acting president,” Dawn, 21 May 2024)
Imran Khan and other PTI leaders acquitted in Azadi March cases by local court
On 20 May, a local court acquitted Imran Khan and other PTI leaders in the cases registered against them two years ago on allegations of violence, riots, obstructing public service, and mischief by fire or explosive substance during the 25 May Azadi March. The cases were registered at Karachi Company in 2022 and registered under sections 109, 148, 149, 188, 427, and 435 of the Pakistan Penal Code in the Karachi company police, with an identical FIR being filed at the Kohsar police station. Before the judicial magistrate, the counsel for the PTI, Naeem Panjotha, argued that the FIR was invalid as the case was filed by an “unauthorized person,” and claimed there was no video evidence to substantiate the case against Khan. He defended before the court that the cases were baseless and politically motivated. He also claimed that the trees caught fire due to police shelling and PTI was not responsible for it. (“Imran, others acquitted in ‘Azadi March’ violence cases,” Dawn, 21 May 2024)
PkMAP chief warns of resistance towards attempts to impose martial law
On 20 May, the Pashtunkhwa Milli Awami Party Chief (PkMAP), Mehmood Khan Achakzai, in a seminar organized by Tehreek-i-Tahafuz-i-Aain-i-Pakistan at the National Press Club, warned any attempt to impose martial law in the country will be resisted. He asserted: “So far, we have faced three martial laws. I want to make it clear that if the Constitution is derailed again, we will take to the streets to protect it.” Achakzai lamented that despite having “all the blessings of God,” the country is still lagging due to the hindrance in the implementation of the constitution. To solve this, he advised all institutions to stick to their constitutionally determined domains to prevent difficulties in keeping “the country united.” He claimed that there is “immense pressure” on the judiciary to rule in favour of influential people. Further, Achakzai questioned why “some institutions” feel that they are being spoken against whenever discussions regarding the Constitution are held. (Ikram Junaidi, “Attempt to impose martial law will be resisted, says Mehmood Khan Achakzai,” Dawn, 21 May 2024)
ECONOMY
Report says power sector contributed the most to circular debt in first seven months of FY24
On 20 May, Dawn reported on the recent data published by the Power Division of the Ministry of Energy, as per which the circular debt surpassed PKR 2.636 trillion in the first seven months of FY24, with a PKR 463 billion increase from January to July. Though the government had committed to containing it within PKR 2.31 trillion, circular debt rose by PKR 84 billion in January 2024 to reach PKR 2.63 trillion. Despite the repeated tariff increases through base annual tariffs, quarterly adjustments, and fuel cost adjustments it continued to rise. The Circular Debt Report of January 2024 pointed toward a sustained upward trend in debt during both FY24 and FY23. This increase in circular debt can be attributed to poor recoveries by distribution companies, high system losses, pending generation costs, non-payments by K-Electric, and interest charges regardless of the government's efforts to recover PKR 116 billion from consumers. However, the biggest increase of PKR 284 billion was caused by distribution companies, up by 19 per cent. This included PKR 198 billion under-recoveries, with the government claiming the cost of Discos’ inefficiency losses at PKR 86 billion, an increase by 25 per cent from last year.
With the report being made public while talks with the IMF are ongoing, the government wrote to the IMF that “Pakistan’s ongoing sustainability will be at risk” without addressing energy sector viability. It also committed to continuing “regular, timely, and automatic notifications of adjustments to natural gas and electricity tariffs in a manner that is consistent with full cost recovery and to reduce natural gas price disparities between regions and industries and within industries.” Further, the government will find “cost reductions” and also “accelerate structural reforms to address the sector’s fundamental issues, including reforming the governance of Discos, moving captive power demand to the electricity grid, finalising a proposal on tube well subsidy reform by end-FY24 and expanding renewable energy capacity.” (Khaleeq Kiani, “Circular debt over Rs2.6tr, surpassing govt commitments,” Dawn, 20 May 2024)
EXTERNAL
Government committed to ensuring the safety of Pakistani students in Bishkek, says information minister
On 20 May, Dawn reported that the Pakistani government assured over 500 students who came from Kyrgyzstan via special flights, that it would facilitate their return once the “alarming situation” in Bishkek stabilizes. Despite the government saying a day earlier that the situation in the capital was under control, Information Minister Attaullah Tarar said there was an “alarming situation” in Bishkek. While receiving 170 students who landed in Lahore, he assured that “all possible measures will be taken to facilitate the students returning from Bishkek.” Tarar also explained how Prime Minister Shehbaz Sharif had been in contact with the Pakistani ambassador in Bishkek to address their concerns, and how the government is “committed to ensuring the safety and education of Pakistani students.” After students who returned to Pakistan expressed concerns over not being able to complete their education, the Pakistani embassy in Kyrgyzstan asked students wishing to return to share their contact information. (Mohammad Asghar & Zulqernain Tahir, “Over 500 more students repatriated from Bishkek,” Dawn, 21 May 2024)
Pakistani and Turkish foreign ministers agree to increase bilateral trade to USD five billion
On 20 May, Foreign Minister Ishaq Dar spoke at the Foreign Office (FO) after meeting Turkish Foreign Minister Hakan Fidan and stated that both countries have agreed on increasing annual bilateral trade to USD five billion and intensifying their defence collaboration. Currently, the annual bilateral trade volume stands at USD one billion. Both sides went over the state of bilateral relations and discussed arrangements for the upcoming seventh session of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC). Dar said that the next meeting, which will be hosted by Pakistan and co-chaired by chief executives of both countries, would be held “very soon.” An FO statement added that mutually beneficial cooperation would be strengthened in the fields of trade, investment, defence, and security. Dar recalled the history of defence collaboration between the two countries and appreciated Turkey’s “firm and consistent support” for the people of Kashmir. The two leaders also spoke on regional and global issues, including the rise in Islamophobia and the ongoing crisis in Gaza. They called for an immediate and unconditional ceasefire, highlighted the need for humanitarian aid, and the importance of establishing an independent Palestinian state. (Baqir Sajjad Syed, “Pakistan, Turkiye vow to hike trade to $5bn,” Dawn, 21 May 2024)
SECURITY
Amnesty International chief expresses concern over the “shrinking” space for free speech in Pakistan
On 21 May, Dawn reported that during an interview it held with Amnesty International’s Secretary General Dr Agnès Callamard, the chief contended that while the military trials for civilians are a “no-no” under international law, it has “sadly” happened “throughout Pakistan’s political history.” She underlined the importance of the principles of transparency, due process, and judicial independence, urging Pakistan to uphold the same and guarantee its right to a fair trial. Callamard asserted: “The use of military courts is threatening the constitutionality of what’s happening right now.” On the “disproportionate, unnecessary” ban on X which went “against international law,” she expressed concern over how the “space for free speech in Pakistan is shrinking.” The chief claimed that in Pakistan, “everything is being targeted, the means of expression and the people who are expressing themselves. This includes journalists.” Given this situation, she advised Pakistan to “do the opposite of what it is doing right now.” (Niha Dagia, “Military trials of civilians ‘no-no’ in international law,” Dawn, 21 May 2024)
PROVINCES
Punjab: Assembly passes Defamation Bill, 2024, amid SIC protests
On 20 May, the Punjab Assembly passed the Defamation Bill, 2024, deciding to reject all the amendments put forward by the opposition, resulting in protests by the SIC and journalists. After the PML-N government refused to delay voting on the bill, the bill was tabled by Punjab’s Finance Minister Mujtaba Shajaur Rehman. Press gallery members boycotted the proceedings and rejected the bill for being a “curb on free media.” This draft law proposes a special tribunal to try individuals involved in drafting, publishing, or airing “fake news.” It gives the tribunal the power to decide the case within six months and impose a fine of up to PKR three million. The high court will hear the case in case the allegations are against individuals holding constitutional posts. Further, the bill says the government will give legal assistance to women and transgender individuals in defamation cases through an official legal team. As the government earlier did not agree to send the draft bill to a selected committee which had opposition members, opposition leader Ahmed Khan Bhachhar questioned why the treasury was “in a hurry to pass the bill before midnight.”
A PTI-backed SIC member, Rana Shahbaz Ahmed, also claimed that opposition members of the special committee were not there during the vetting of the bill, while PTI-backed SIC lawmaker Ahmar Rashid Bhatti said the law violated Articles 8, 202 and 203. Another concern raised by PTI-backed SIC lawmaker Jam Amanullah was that the law would benefit SHOs and ‘shoe-shiners,’ a term for individuals with close connections to the military establishment. Following the boycott, journalists protested against the “black law” outside the assembly building. Lahore Press Club’s President Arshad Ansari said that the government did not agree to postpone the bill’s approval for a week, during which time the stakeholders could reach a consensus on the matter. He also said that since Punjab Chief Minister Maryam Nawaz’s “party’s government in the federation,” Punjab is “implementing laws aimed at gagging the media.” (Amjad Mahmood, “Amid protests, Punjab Assembly passes defamation law,” Dawn, 21 May 2024)
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I have received with great concern news about the health of His Majesty King Salman bin Abdulaziz. His Majesty is not only a loyal friend of Pakistan, but in his capacity as Custodian of the Two Holy Mosques, he is a leader, pioneer and guide for the entire Islamic nation. The entire Pakistani Muslim people join me in praying to the Almighty, the Almighty, to grant His Majesty a complete and speedy recovery and a speedy return to full health.
- Shehbaz Sharif
Elections in 50 days in #Iran must be held as per their constitution following the President’s death who was widely believed to be the successor of the spiritual leader the Ayatollah Seyyed Ali Hosseini Khamenei
- Reham Khan
God willing, this system is going to be defeated very soon. Victory is always for truth and the people of Pakistan are standing with truth at this time, God willing
- Shahnawaz Gujjar
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Arifa Noor, ‘Budgeting without people’
Dawn, 21 May 2024
“Indeed, other than having a finance minister who says the IMF is unavoidable, little else has changed. The constants in terms of our ‘solutions’ have been around well after 2018. We continue to look for manna to drop from the heavens to bail us out. This manna, for as long as I can remember, continues to be an injection of foreign funds. If earlier it was in the shape of foreign aid and development for the troublesome part of the world we are located in, during the PTI’s times, it was going to be a sudden and miraculous increase in ‘exports’ once Ishaq Dar’s exchange rate policy had been consigned to the dustbin. But a couple of years of a punishing deterioration in the value of the currency and it dawned on many that exports couldn’t provide the miraculous solution. Then came the latest eureka moment — Pakistan needed foreign direct investment (FDI).”
Ajaz Ahmed, ‘Climate resilience’
Dawn, 21 May 2024
“Since Pakistan has yet to invest in decarbonisation to achieve Nationally Determined Contributions targets etc, investing in climate-resilient infrastructure could be a win-win situation. It would allow the economy to decarbonise and also develop resilience to climate shocks. Making infrastructure resilient to climate shock would mean a marginal increase in the total investment cost. But, not only would these be recouped soon, the extra effort will increase the lifetime of an asset. Nevertheless, investments in climate-resilient and low-carbon infrastructure need a fundamental transformation of critical infrastructure systems, which should be reflected in the projects’ planning, design, and delivery. A crucial element is to incorporate this aspect into the public procurement process, while considering different proposals.”
Myrah Nerine Butt, ‘The value of domestic work’
The News International, 21 May 2024
“The compensation is also gendered; we are willing to pay men more for the same work than women, often citing reasons like they are the primary breadwinners or perform better quality of work or have stronger work ethic. There is no recognition that a man’s uninterrupted work ethic may rest on the labour of a woman taking care of his family back home. Women’s income is seen as supplementary to support household expenses without the recognition that they may still be the primary breadwinners or be running single-family households. There is also little to no recognition that this work requires a certain level of skill. There is little additional compensation for a more skilled or experienced worker.”
Imtiaz Gul, ‘Pak-US CT partnership: are we missing the point?’
The Express Tribune, 20 May 2024
“Curiously, the joint statement does not mention those Baloch groups that regularly claim responsibility for terrorist attacks. Nor does it allude either to Jaish al-Adl, which Iran considers a direct threat to its integrity, or the Chinese-centred ETIM, also called Turkestan Islamic Party, TIP. Secondly, we don’t find the word ‘Afghanistan’ in the joint statement, although everybody knows where the TTP, Jaish al-Adl, TIP, ISKP as well as the Baloch groups enjoy safe havens.”
Editorial, ‘Reproductive health’
Dawn, 21 May 2024
“These appalling numbers outline the drastic impact patriarchy and prejudice have had on women’s progress by hindering the right to contraceptives, safe birth facilities, maternity care and necessary sexual and reproductive health services. Experts believe that girls and women will be a wasted opportunity for Pakistan’s fiscal health and social framework. The exclusion of sexual and reproductive health from political agendas and educational curricula is seen as a primary reason for this, alongside censorship of sexual health knowledge in a conservative culture. For matters to improve, the media should play a constructive part in birth control programmes and disseminate information regarding family planning and choice.”
Editorial, ‘Problematic frontiers’
The Express Tribune, 20 May 2024
“The unrest in Kurram district of K-P is a case in point, where tribal clans across the Kharlachi border crossing were in a gunfight. Same is the case even inside ex-FATA agencies where locals and foreign elements, who have made Pakistan their new home, are often at odds. The attack on security forces in North Waziristan and the revulsion in Chitral and elsewhere in the frontier-province underscores the element of human contraction in perceptual horizons. This is where opting for a militaristic solution is ill-advised, and the solution should be carved out in a conventional negotiated manner.”
Editorial, ‘Bishkek violence’
The News International, 21 May 2024
“The Bishkek incident is a sign of the growing racism and xenophobia in Central Asian states where local residents see foreign students as a threat. These feelings of animosity rise because the new immigrants compete with the locals for jobs and other resources. On the government level though, international students are a vital cog for running the economy. These complexities are not in a government’s hands. But what Pakistan can do is to provide consultancy and counselling services to students to teach them how they can prepare themselves for any untoward incident.”
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“There is no official law — just the official who is the law.”
-An opinion in Dawn, ‘Law that rules’
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