Sharif's visit will send a "strong signal of solidarity and cooperation," says Chinese envoy; Rawalpindi's water crisis worsens
In Brief
ECONOMY
Increase in PSDP proposed after shortfall in FY24
On 3 June, Dawn reported on a summary presented by the Ministry of Planning, Development and Special Initiatives to the Annual Plan Coordination Committee (APERCENTC) and the National Economic Council (NEC). It said that the Public Sector Development Programme (PSDP) for the outgoing fiscal year was cut by 25 per cent from PKR 950 billion, approved by the NEC and the parliament, to PKR 717 billion. The PSDP is a critical component of Pakistan’s budget, aimed at funding development projects to stimulate economic growth and improve infrastructure. It is a tool used by the government to invest in uplifting people’s quality of life and turn the economy. Over the years, PSDP allocations and spending have experienced fluctuations due to varying fiscal policies, economic conditions, and government priorities. According to an editorial in Dawn, the cut was due to “fiscal constraints as well as to create space for a primary surplus of 0.4 per cent of GDP to meet the most important condition of the last IMF programme.”
For FY25, the target of over PKR three trillion set for the national development programme includes a federal PSDP of PKR 1.2 trillion. On this front, there is a reported clash between the finance ministry and the planning ministry, as the latter has opposed the former’s decision to cut development spending to meet IMF goals. However, the new budget will be included in actions required by the IMF that will help Pakistan secure a new Fund programme.
Fiscal Year 2023-24: Priorities and Spending
For FY24, there were a few key priorities- development projects in exports, equity, empowerment, environment and energy framework, CPEC, and projects to help mitigate the aftermath of the 2022 floods. The total outlay was PKR 950 billion, of which infrastructure was given over 52 per cent of the allocations, the social sector was given 25.5 per cent, and regional development was given 12.5 per cent.
In its summary, the Planning Commission noted: “The size of PSDP in terms of the percentage of GDP shrunk over time and reduced from 1.7 per cent of GDP in 2013 to 0.9 per cent of GDP in 2023-24.” The decrease was also caused by “inflation and depreciation of the rupee,” combined with the fact that “due to the IMF programme, the primary deficit has been managed with a cut on PSDP.” Earlier in 2023, the NEC had approved policy guidelines to ensure the smooth execution of ongoing development projects, including 25 per cent funds for each quarter. However, the “Finance Division issued a back-loaded release strategy at 15 per cent, 20 per cent, 25 per cent and 40 per cent, contrary to the NEC-approved release strategy for quarters Q1, Q2, Q3 and Q4, respectively.” Several cuts and diversions were also made- PKR 131 billion was earmarked for SDGs schemes, PKR 20 billion was given to the non-development side, and PKR 29 billion was deducted at source, reducing the actual size of the PSDP to PKR 717 billion.
Other major obstacles included procurement restrictions, a skewed release strategy, and the requirement of the rupee cover for executing foreign-aided projects. The inclusion of provincial projects also “hampered the financial and physical progress of the core mega-projects of national importance.”
Fiscal Year 2024-25: Proposed Allocations and Priorities
For FY25, the PSDP is projected to increase by approximately 30 per cent, with an allocation of PKR 1.221 trillion compared to the current year’s revised allocation of PKR 717 billion. This increase aims to support an economic growth target of 3.6 per cent, up from 2.38 per cent in the outgoing fiscal year. The overall national development plan (NAP) includes federal and provincial spending exceeding PKR 3.5 trillion. In order to meet IMF requirements, the finance ministry assured that the government will remain committed to “enhancing revenue collection, controlling expenditures, and maintaining fiscal discipline.”
The proposed allocations for the upcoming fiscal year continue to emphasize infrastructure development, with the federal government’s investments in infrastructure set to rise by 60 per cent to PKR 877 billion. The allocation for Science and Technology will increase by 148 per cent to PKR 104 billion. The social sector, however, will see further reductions in federal responsibility, with allocations decreasing to PKR 83 billion.
Among the new health projects proposed for the 2024-25 PSDP, there is a focus on significant infrastructure and facility upgrades across the country. Notable projects include the strengthening and upgradation of the Diabetes and Endocrinology Department at FG PER CENT Islamabad, the establishment of a Centre for Biologics and Cancer Research at PAQSJMS Gambit, and the Prime Minister’s National Programme for the Elimination of Hepatitis C Infection. The total allocation for ongoing and new health projects is PKR 8.9 billion, with PKR 5.5 billion allocated for ongoing projects and PKR 3.3 billion for new initiatives.
References
Khaleeq Kiani, “Uplift budget in tatters amid ‘misplaced priorities’,” Dawn, 3 June 2024;
Tahir Niaz, “Govt likely to add 30 new health projects in FY2024-25 PSDP,” The Nation, 3 June 2024;
“Large projects again?” Dawn, 3 June 2024;
Khaleeq Kiani, “Budget 2024-25: Govt eyes accelerating GDP growth to 3.6pc,” Dawn, 1 June 2024;
Khaleeq Kiani, “Govt hints at 27pc hike in PSDP,” Dawn, 3 May 2024;
Amin Ahmed, “PKR 950bn allocated for development,” Dawn, 10 June 2023
POLITICS
Government to decide on legal action against PTI after FIA investigation, says Information Minister
On 2 June, the Minister for Information and Broadcasting, Attaullah Tarar, stated that the government would decide whether legal action against the PTI should be taken, after the completion of the Federal Investigation Agency’s (FIA) inquiry into the party’s social media activity. The FIA summoned PTI leaders Barrister Gohar, Omar Ayub, and Raoof Hasan regarding the ‘misuse’ of Imran Khan’s X account, in which he blamed the former military dictator for Pakistan’s breakup. Tarar stated: “The FIA inquiry is a serious one. If we need to pursue legal action then we will do it once it is complete.” He cited the Prevention of Electronic Crimes Act (PECA), 2016 and said that he believed “there are legal grounds [to prosecute the PTI].” He also asserted that statements encouraging an attack on Pakistan’s “integrity and sovereignty should not be allowed.” Tarar accused Khan’s followers of creating a “narrative of Khan Nahi tou Pakistan Nahi (No Pakistan without Imran Khan) after a pattern of statements and actions.” Additionally, he accused the PTI of creating “political instability” through a “culmination of years of harmful statements and messages.” (“Legal action against PTI over social media activity to be mulled after FIA inquiry: information minister,” Dawn, 2 June 2024)
JUDICIARY
Supreme Court’s Justice Shah calls for protecting the rights of minorities
On 1 June, Justice Syed Mansoor Ali Shah of the Supreme Court expressed his wish for the elevation of judges from the minority communities in the higher courts, during the Justice A.R. Cornelius Conference hosted by a minority rights organization. He called for co-existence and tolerance in society, pointing to Pakistan’s lowest rank in the religious segment in the Freedom House Report by the European Union in 2023. He stated that all non-Muslim communities “are dear to us, and we all love them.” He emphasized: “There is only one flag in the world where you [minorities] are reflected. This white colour represents you. I also say that crescent and star are also white. All these things represent you. We must understand that you are recognized in the national flag.” Lamenting over the situation, Shah pointed out that the Constitution provides rights to minorities, and the Holy Prophet protected the rights of minorities through his actions while teaching Muslims to do the same. Shah also cited the example of Riasat-i-Madina and emphasized Pakistan’s history of supporting minorities. He highlighted the Judiciary’s minority concern and observed: “We should tolerate each other’s point of view so that we can move forward.” (Wajih Ahmad Sheikh, “Nation’s duty to guard rights of minorities, says SC judge Mansoor Ali Shah,” Dawn, 2 June 2024)
EXTERNAL
Sharif's visit will send a "strong signal of solidarity and cooperation," says Chinese envoy
On 2 May, the Chinese Ambassador to Pakistan, Jiang Zaidong, issued a statement saying that Prime Minister Shebhaz Sharif’s visit to China would “provide a constant boost to Pakistan’s economic and social development and send [a] strong signal of solidarity and cooperation between our two countries to the international community.” He went on to appreciate how the “strategic communication” between the leaders of both countries “guides” their relations, and how over the last 73 years, “leaders of the two countries frequently visited each other like close relatives.” This statement came as Sharif was set to leave for China on 4 June for a five-day state visit. Zaidong detailed that during the visit, both countries will reaffirm their support for each other on respective core interests and major concerns, and will reach a consensus on the development of the China-Pakistan Economic Corridor (CPEC). Highlighting the significant progress made with regard to CPEC, which has resulted in USD 25.4 billion in direct investment, 236,000 jobs, and 510 kilometres of highway, the envoy said that a consensus is important so China can “constantly level up its pragmatic cooperation to assist [Islamabad] to achieve sustainable development.” According to the Pakistani Foreign Office spokesperson, Sharif will visit the cities of Beijing, Xian, and Shenzhen during his trip to China. (“PM Shehbaz’s visit to bolster ties: Chinese envoy,” The Express Tribune, 2 June 2024)
European Union decides to continue restrictions on Pakistani Airlines
On 3 June, Dawn reported that the European Union (EU) has chosen to continue with its restrictions on Pakistani Airlines, including Pakistan International Airlines (PIA), following security concerns stemming from recent evaluations. The decision also came after the European Commission for Air Safety (PCAA) ruled that there were insufficient grounds to amend the list of air carriers subject to an operating ban within the union with respect to air carriers certified in Pakistan. It also came following an exhaustive assessment by the EU Air Safety Committee. In the latest meeting, the committee acknowledged the insufficient grounds to amend the current list of air carriers prohibited from operating within the EU, particularly air carriers certified by the Pakistan Civil Aviation Authority (PCAA). Multiple areas of safety concern were found during its on-site review conducted from 27 November to 30 November. In response, PCAA submitted the corrective action plan on 6 May 2024. However, during its hearing with the EU, the European Union Air Safety stated: “Particular attention should be given to the continuous monitoring of the safety situation and developments in Pakistan, through the regular organization of technical meetings in Brussels before each EU Air Safety Committee, and regular progress reporting from PCAA.” It said that the EU member states should continue verifying the effective compliance of air carriers certified in Pakistan with relevant international safety standards through prioritization of ramp inspections. (Mohammad Asghar, “EU bar on Pakistani airlines ‘unchanged’,” Dawn, 3 June 2024)
AF-PAK
Afghan consul general agrees on joint efforts to resolve Af-Pak transit trade issues
On 3 June, Business Recorder reported that the Consul General of the Afghan Consulate Peshawar, Hafiz Mohibullah Shakir, agreed to make joint efforts to resolve Pak-Afghan transit trade problems during a meeting with businessmen dealing in Pak-Afghan trade. The President of the Frontier Customs Agents Association (FCAA) in Khyber Pakhtunkhwa, Zia-ul-Haq Sarhadi, discussed issues faced by businesses, traders, industrialists, exporters, and transporters in Afghanistan. He called for equal opportunities in Afghan transit trade, similar to bilateral trade between the two countries. Engineer Manzoor Elahi noted that Afghan goods are often sent in Afghan and Pakistani trucks, while Pakistani goods are stopped for a week. Afghan consulate officials were informed about transport issues, including unregistered checking points at the Torkham border and harassment of Afghan transporters. Despite orders to load in local containers, implementation was not completed, leading to detention charges for Afghan businessmen. Zia urged government measures to remove obstacles in regional trade, including Afghanistan. (“Smooth bilateral trade: Afghan CG agrees to make joint efforts,” Business Recorder, 3 June 2024)
PROVINCES
Rawalpindi: Water crisis worsens due to prolonged power blackouts and high temperatures
On 2 June, The Express Tribune reported that the city of Rawalpindi is facing unexpected and extended power blackouts. These power outages, combined with the escalating summer temperatures, have significantly disrupted the water distribution system, particularly in the outskirts of the city. The private tank owners have taken advantage of the situation by increasing the price with small tankers costing between PKR 1200 and PKR 1500, medium tankers ranging from PKR 1600 and PKR 2000, and larger tankers costing from PKR 2000 and 2,600. The declining underground water level is exacerbating the water crisis in the inner city, with tube wells managed by the Water and Sanitation Agency (WASA), Cantonment Boards, and the deputy commissioner’s office drying up. Depths have dropped to 700-900 feet, even government tube wells constructed just 3.5 years ago at 500 feet are now dry. Since the motors are breaking down due to prolonged usage, a significant portion of the community is forced to fetch water. Women have protested against the situation and have called on Punjab’s Chief Minister, Maryam Nawaz, MNA Qamarul Salam, and MPA Imran Mehrban to take action. (Qaiser Shirazi, “Rawalpindi sizzles as water crisis deepens,” The Express Tribune, 2 June 2024)
Sindh: Northern Sindh’s dacoits move to Hyderabad’s katcha areas to avoid law enforcement operations
On 3 June, The Express Tribune reported that three residents of Hyderabad’s katcha area- Gulzar Palari, Raza Muhammad Malah, and Khan Muhammad Bhangwar- revealed that notorious gangs from northern Sindh are relocating to the city to avoid operations by law enforcement agencies. The gangs, known for kidnapping and murders, have been hiding in riverine forests and are now relocating to Hyderabad. During a press conference, the residents argued that if the Hyderabadi police do not take action, the situation in Hyderabad will become like a Ghotki, making it difficult for citizens to leave their homes and move around. The gangs are known for kidnapping children and the youth and are posing a threat to the city’s safety, as they often disguise themselves as farmers and cattle traders. Palari detailed that ‘katcha’ means the dry bed of the river which cannot be leased out against a ‘paka’ paper, meaning the land is encroached by landless farmers and grazers. Additionally, Mallah claimed that motorcycle thefts and robberies have become normalized. The residents urged the chief minister of Sindh, IG Sindh, and DG Rangers to carry out operations to arrest the criminals. (“Dacoits of northern Sindh moving to kacha areas of Hyderabad,” The Express Tribune, 3 June 2024)
Punjab: Senior minister announces ban on plastic from 5 June
On 2 June, Senior Punjab Minister Marriyum Aurangzeb announced that the province would enforce a ban on the manufacturing, distribution, sale, and purchase of plastic starting from 5 June. In a statement, Marriyum emphasized the need to crack down on factories involved in the production of these illegal goods, as the use of plastic has been contributing to the escalating problem of environmental pollution. The Punjab government is taking measures against plastic in line with Punjab Chief Minister Maryam Nawaz’s directive to launch the "No to Plastic" campaign. The campaign will strictly restrict the use of plastic bags for food in hotels and eateries. The Punjab government has completed arrangements to implement the plastic ban strategy. (Usman Bhatti, “Punjab bans plastic production, trade,” The News International, 2 June 2024)
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A very small number of students from Balochistan province have been able to study in Oxford University. The Government of Balochistan has concluded an agreement for a special scholarship in Oxford University for students from Balochistan under the Benazir Bhutto Endowment Fund and has decided to bear the educational expenses of Israr Kakar, a Balochistan student currently studying in Oxford University. Come join us in the journey of educated Balochistan.
- Sarfraz Bugti
PPP's Sindh Government has laid the foundation stone of Sukkur Industrial Enclave, a landmark project poised to drive economic growth and development in the country. Strategically located at the National Trade Route, the confluence of three provinces, and an ideal location, this industrial zone will provide seamless access to Gwadar Port, fostering economic prosperity and growth.
- Sharjeel Inam Memon
Chief Minister Balochistan said that under the guidance of Chairman Bilawal Bhutto Zardari, the mission of educational development and empowerment of youth is going on.
- PPP Digital
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Muhammad Ali Shaikh, ‘Federal funding for universities’
Dawn, 3 June 2024
“Accordingly, the federal government asked the Higher Education Commission (HEC) on May 24, 2024, to resubmit the budget proposal, reducing the demand to less than one-fifth of the original amount asked — from Rs126 billion to Rs25bn — catering for only the federally chartered universities. The cited logic behind the federal government’s decision is that, as education has been devolved to the provinces under the 18th Amendment, it is now the responsibility of the provincial governments to foot the bill of universities established and chartered by them.”
Dr Shahid Hussain Kamboyo, ‘Free speech and defamation — future of NCCIA in digital age’
The Express Tribune, 3 June 2024
“Article 19 of the Constitution of the Islamic Republic of Pakistan provides that “Every citizen shall have the right to freedom of speech and expression, and there shall be freedom of the press, subject to any reasonable restrictions imposed by law in the interest of the glory of Islam, or the integrity, security or defense of Pakistan or any part thereof, friendly relations with foreign states, public order, decency or morality, or in relation to contempt of court, or incitement to an offence.”
Dr Naazir Mahmood, ‘A night for literature’
The News International, 3 June 2024
“Nearly every corporate entity claims to make ‘a positive impact’ but hardly anybody actually does. The mad rush for profit generation by corporates has done more harm to society and the environment than any ordinary person would ever do. But still, there are some exceptions that one cannot ignore. The 11th UBL Literature and Arts Awards ceremony held recently in Karachi was one such exception. Nit-pickers point out that Alfred Nobel was the inventor of one of the most destructive weapons in history – dynamite – but that does not deprive him of recognition as the founder of the most prestigious awards in multiple fields of research and creativity.”
Editorial, ‘Child-friendly courts’
Dawn, 3 June 2024
“These considerations must be applied on a war footing because effects of trauma become visible in later years, often jeopardising the potential of youngsters. Moreover, empathy and sensitivity should be extended to every “child in conflict with the law”, such as juveniles, witnesses and victims. First, the Juvenile Justice System Ordinance, 2000, an exemplary law, which defines protections with the aim to rehabilitate juveniles in society, has to be enforced so that children are not subjected to handcuffs, corporal punishment, labour and harsh sentences.”
Editorial, ‘Let the girls study’
The News International, 3 June 2024
“Besides the fact that Pakistan has 26 million out-of-school children and a severe issue of poor learning outcomes, the country also has to deal with a low rate of girl’s education. And how can it go up when we have extremists that are out to sabotage girls’ education? In May alone, at least three girls’ schools were torched by unknown men: one in Balochistan and two in North Waziristan including a school building under construction. This is a reminder of the awful time Pakistan witnessed during the ‘war on terror’ when terrorists were waging a war against girls’ education. These recent incidents of violence targeting schools for girls in the tribal regions of Pakistan are not just attacks on buildings but assaults on the aspirations of young minds striving for a better future. These repeated assaults demand urgent action to safeguard educational institutions and the right to education for all.”
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“Government must focus on debt sustainability by curtailing its spending and mobilising more resources.”
-An opinion in Dawn, ‘Large projects again?’
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