PM Sharif approves relocation of joint ventures between China and Pakistan; Two Frontier Corps killed in attack in Balochistan
In Brief
POLITICS
PM Sharif calls for fresh talks with the opposition, PTI makes dialogue conditional
On 26 June, during the National Assembly proceedings, Prime Minister Shehbaz Sharif offered to hold negotiations with the PTI. The PTI, however, made the dialogue “conditional,” demanding the release of Imran Khan and other party leaders. PTI leader Ali Muhammad Khan in his speech accused the government of high-handedness against PTI members. In response, PM Sharif stated that the PTI had meted out the same treatment to him and his party members when it was in power. He cited incidents like how Rana Sanaullah and Khawaja Asif were allegedly forced to sleep on the floor inside the jail and reiterated that he did not want to impose the same on PTI members and was hence calling for negotiation. He stated: “Once again I say today, come, let’s sit and talk, and we can sort out the problems.” In addition, the PM responded to the allegations of “political victimization” of PTI and stated that “If any hardships are being faced by your [PTI’s] founder in jail, then [let’s] talk about them.” Opposition leader Omar Ayub responded by stating: “Form 47 prime minister has talked (about reconciliation). Had there been (members elected on) Form 45 people, Imran Khan would have been the prime minister today.” Separately, JUI-F chief Maulana Fazlur Rehman forcibly took the floor and stated his opposition to anti-terror operation Azm-i-Istehkam. He also warned the government that there is a possibility that Khyber Pakhtunkhwa would fall within the control of the “government of Islamic emirate. He cited the lack of state writ in the area. (Amir Wasim, “PTI spurns premier’s latest call for dialogue,” Dawn, 27 June 2024)
121 grant demands approved by National Assembly
On 26 June, the National Assembly started the process for implementing the federal budget for the fiscal year 2024-25, approving 121 demands related to ministries, divisions, and departments amounting to PKR 8,780 billion. Further, it vetoed 216 cut motions of the opposition pertaining to three ministries and divisions. The next session on 27 June will forward the grant demands to four ministries. In addition, the house passed 12 demands for grants moved by Finance Minister Muhammad Aurangzeb amounting to more than PKR 41.7 billion after rejecting the opposition’s 60 cut motions. Two demands for grants worth more than PKR 701 billion were approved after 97 cut motions on energy division were rejected. (“NA approves 121 budget demands worth Rs8.7tr,” The Express Tribune, 27 June 2024)
21 PTI lawmakers hint at the possible formation of a new forward bloc
On 26 June, sources revealed to Geo News that 21 PTI lawmakers who are now part of the Sunni Ittehad Council (SIC) have hinted at the possible formation of a new forward bloc. The lawmakers stated that this was due to the top leaders’ inability to secure Imran Khan’s release.Through this announcement, they “conveyed a message” to PTI Chairman Barrister Gohar Ali Khan and Secretary General Omar Ayub Khan to “start serious efforts”for Khan’s release. The News International quoted sources that revealed “More than 21 PTI lawmakers held consultations after Shehryar Afridi’s statement about his resignation. Meanwhile, Shandana Gulzar Khan, Sher Afzal Marwat, and several lawmakers also protested over the incompetence of the party’s top leadership.” The lawmakers claimed that some leaders vying for higher posts had “compromised” instead of focusing on the PTI. After the heightened differences between PTI leaders, MNA Shandana stated: “Resignations would be a better option if we cannot take the PTI founder out of jail. We are now beating the desk [here in the assembly] and wasting our energy on committees. It is quite better to sit at home. I have also threatened to tender our resignations after Afridi’s call.” (Haider Sherazi, “Rifts in PTI as ‘21 lawmakers hint at forming forward bloc’,” The News International, 27 June 2024)
ECONOMY
IMF turns down grants and concessions on majority of the items
On 27 June, the International Monetary Fund (IMF) turned down the grant concessions on the majority of items proposed in the Finance Bill 2024- 25. The proposals agreed until now relates to abolishing GST on textbooks, restoring rebates for professors/researchers, withdrawing Federal Excise Duty (FED) on cement, and some other technical changes. To reduce the FED charges on cement, the government had come up with enhanced FED on air tickets on international travel.. In addition, the IMF also declined to agree on restoring export proceeds into an affixed income tax regime. Due to the disagreement with IMF, the government stumbled to adjust the fiscal policy of PKR 250 billion which was created through reduction in the Public Sector Development Programme (PSDP). The government also asked for funds to withdraw GST on stationery items. However, the IMF only agreed to withdraw GST on textbooks and the other items might remain under 18 per cent. The Fund also refused to agree on the property and tax rates for salaried and non-salaried classes. It opposed the government’s move to withdraw the GST rate of 6 per cent for FATA. This means that there will only be minor changes in the Finance Bill proposed earlier. (Mehtab Haider, “IMF rejects govt move to cut tax rates, grant concessions,” The News International, 27 June 2024)
Government raises PKR 908 billion through sale of PIBs and T-Bills
On 27 June, The Express Tribune reported that the government had sold debt securities like Pakistan Investment Bonds (PIBs) and treasury bills (T-bills) to domestic commercial banks and raised a debt of PKR 908 billion. The government sold the T-bills in an auction for PKR 777 billion before its original auction target of PKR 450 billion. This will likely fill the financial gap faced due to banks’ demands on longer-tenure PIB auctions. These funds will be used to repay the maturing debt worth PKR 301 billion. The Ministry of Finance raised PKR 459.5 billion through six-month T-bills at a cut-off yield of 19.96 per cent, down 6 basis points from the previous auction. It also raised PKR 221.9 billion through 12-month T-bills at a cut-off yield of 18.54 per cent, down 41 basis points, and PKR 95.3 billion through three-month T-bills at a stable yield of 20.15 per cent. Additionally, the government borrowed PKR131 billion through longer-tenure PIBs, with PKR116.03 billion raised through three-year PIBs at 16.60 per cent (down 4 basis points), PKR13.90 billion through 10-year PIBs at 14.25 per cent (down 5 basis points), and PKR1.48 billion through five-year PIBs at 15.44 per cent. The government continues to depend on domestic commercial financing to meet its expenditures. Also, its tax revenue collection is projected to increase by 30 per cent to PKR9.41 trillion in the outgoing fiscal year 2023- 24, despite moderate economic growth and a slowdown in industrial activities. (“Govt raises Rs908b in new debt via T-Bills, PIB,” The Express Tribune, 27 June 2024)
SECURITY
Two Frontier Corps killed in attack on Pakistan Petroleum Limited in Balochistan
On 25 June, around 50 armed men attacked the Pakistan Petroleum Limited (PPL) oil and gas exploration site in the Iskalku area of Kakat district in which two security personnel were killed. The two killed belonged to the Frontier Corps (FC). Banned Baloch Liberation Army (BLA) spokesperson claimed accountability for the attack. Further, Home Minister Ziaullah Langove revealed: “In a heavy exchange of fire, two FC soldiers lost their lives.” Troops rushed to the spot and foiled the militant's attempts. According to Langove, the militants initially attacked the FC camp in the Khaliqabad area of the Kakat district where they also fired rockets. After two hours, they targeted the PPL gas exploration project site. (Saleem Shahid, “Two FC men martyred in Kalat attack,” Dawn, 27 June 2024)
EXTERNAL
PM Sharif approves relocation of joint ventures between China and Pakistan
On 26 June, Prime Minister Shehbaz Sharif approved the relocation of joint ventures between Chinese and Pakistan companies to Pakistan. He also emphasized “there was significant potential for relocating China’s textile, leather, footwear, and other industries to Pakistan.” He announced this while holding a meeting to discuss matters related to the Board of Investment (BoI) and highlighted that the promotion of local and foreign investments is the country’s priority. The BoI Secretary confirmed steps were being taken to relocate Chinese industries and detailed that the services of Chinese experts are being hired for the Business Facilitation Centre in the federal capital. In addition, he also averred that the government is taking all the steps needed to create a business-friendly environment for traders and investors. Further, he ordered the authorities involved to present a comprehensive report on the follow-up of Memorandums of Understanding (MoUs) signed between Pakistani and Chinese companies during the PM’s recent visit to China. In addition, he asked for the review of the Special Economic Zones One Stop Shop’s draft law. Additionally, the PM emphasized special focus on promoting alternative energy like solar, besides the strategy for Thar coal gasification. He chaired a meeting to discuss the Petroleum Division and underlined the importance of Thar coal to cope with Pakistan’s energy needs. He noted that Pakistan was among the top five vulnerable countries. (“PM okays China industry relocation,” The Express Tribune, 27 June 2024)
Foreign Office spokesperson Mumtaz Zahra Baloch condemns US resolution on “rigged elections”
On 26 June, Foreign Office spokesperson Mumtaz Zahra Baloch gave a strong reply to the US House of Representatives resolution which demands an independent investigation into the alleged “rigged elections” held on 8 February. She stated: “Such resolutions are therefore neither constructive nor objective. We hope that the U.S Congress will play a supportive role in strengthening Pakistan-US ties and focus on avenues of mutual collaboration that benefit both our peoples and countries.” She also highlighted that Pakistan as a second largest parliamentary democracy and fifth largest democracy overall, abided by the values of constitutionalism, human rights, and rule of law in pursuance of our national interest.” She further detailed that the resolution's time and context do not align well with the bilateral relations. In addition, Defense Minister Khawaja Muhammad Asif also criticized the resolution. He recalled the US’s history of “overthrowing democratic governments and supporting regimes that perpetuate human rights abuses, such as the oppression of Palestinians.” He also raised questions as to why the United Nations and international community should not investigate claims by both Democrats and Republicans of election interference in the US. (Kamran Yousaf, “FO defends Feb 8 elections,” The Express Tribune, 27 June 2024)
INDIA VIEW
Editorial in Dawn urges India to respond positively to Deputy PM Ishaq Dar’s call for “good-neighbourly relations”
On 27 June, an editorial in Dawn titled “Positive feelers” reflected on the state of India-Pakistan relations and called for a “peaceful region” as it would “create a better future for the more than two billion people of the subcontinent” and bring “economic and other dividends for the entire subcontinent.” The editorial stated that any possible reengagement between the two countries appeared dim under Modi 3.0. However, the editorial argued that Deputy Prime Minister Ishaq Dar’s recent statement at an event calling for “good-neighbourly relations” with India including an emphasis on a “just and peaceful solution” to the Kashmir dispute must be seen as “a serious attempt to mend ties.” Referring to bilateral relations, Dar had also stressed that it was time for “sober reflection.” In the light of Dar’s statement, the editorial emphasized that the “onus” was now on India to “reciprocate.” The editorial suggested that restoration of full diplomatic ties can be the beginning of a process towards normalization of relations as both countries have been “without the other state’s high commissioner for nearly five years” now. Further, the editorial recommended the resumption of the “stalled dialogue process,” both at the official level and through backchannel. Though the editorial agrees that Pakistan must stand its ground on its “principled stance” on Kashmir, it argues that the country must be amenable to discussing “all other outstanding issues.” The editorial urged India to take a “less rigid stance” it if was serious about “regional peace.” (“Positive feelers,” Dawn, 27 June 2024)
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On a surprise visit to inspect model streets, I met a woman in the street and was heartened to know and appreciate that her husband was benefiting from free medicines and provided them at their doorstep. are going the lady showed me the box which had 2 months stock of medicines. He told me that earlier his son used to wait for hours in long queues at hospitals to get these medicines.
- Maryam Nawaz Sharif
The leadership of PTI in the National Assembly is not much interested in the release of IK - they continue to enjoy the spotlight in the absence of IK - they talk about the release for a little show - various facilities for themselves from government benches. The members sitting on the opposition benches are expressing open criticism and mistrust of the leaders of tomorrow sitting on their front line.
- Khawaja M. Asif
The ironic thing about discussing election results & democratic values is that those who are the candidates are also selected in an undemocratic fashion. How many in our parliament are actual representatives of the people or upholders of democracy? Every PM comes via a deal. A deal here a deal there. Don’t call them candidates or leaders. Call them Dealers!
- Reham Khan
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Tariq Khosa, ‘The despotic state’
Dawn, 27 June 2024
“Economic and political freedoms have deep connections. Can a nation have one set of rights without the other? Unfortunately, we in Pakistan have lost the core value of freedom. Extremes of want and fear haunt us daily. The wolves (the elite corporate sector, real estate tycoons, feudal class) have gained ‘freedom’ at the expense of the sheep (workers, the salaried class and the poverty-stricken masses). Financial debt traps and dependence on foreign loans have created an atmosphere of slavish adherence. The current environment is akin to a jungle in which only power matters, determining ‘who gets what and who does what’. We have been reduced to a nation of bootlickers.”
Imran Jan, ‘The most unrepresentative PM would be Imran Khan’
The Express Tribune, 27 June 2024
“Governments in the United States are elected by the people or rather their delegates, but that’s another debate, and somehow those governments after getting elected turn around and do the things the people never elected them for. President Bush, the first one, said, “read my lips, no new taxes” during his campaign and once elected, one of the first things he did was to impose new taxes. Obama was elected chiefly because he was the senator who had opposed the Iraq war when Bush was preparing to invade that country. He promised change to a nation that had become tired of fighting endless wars on foreign lands. After being elected, he increased the US troops presence in Afghanistan and started mini wars in various Middle Eastern countries. The drone war became his legacy.”
Naveed Ahmed Shaikh, ‘How to manage this education emergency’
The News International, 27 June 2024
“A closer look at these 14 points reveals that these plans have been tested, achieving varying levels of success. While there is no harm in revisiting these reforms, one struggles to find a single point that necessitates declaring an emergency. These directives include initiatives to reduce the number of out-of-school children; improve the quality of teaching staff; enhance the health and nutrition of students; promote community-based teaching; establish financial support systems for students; replicate successful educational models; launch skill development programmes; develop online education resources; expand financial aid programmes; promote financial literacy; and foster innovation in education.”
Editorial, ‘Polio problem’
Dawn, 27 June 2024
“Somewhere, somehow, the authorities will have to put their foot down. It is unacceptable that the number of children being disabled by an entirely preventable disease continues to rise while the government fails to rein in or penalise elements spreading spurious rumours and encouraging vaccine rejection. There is, of course, an ethical reason why no one should be forced to take medication. At the same time, there are also good ethical reasons to start formally penalising anyone who refuses to either take the anti-polio vaccine or administer it to their children, including officially sanctioning their movement, which would limit the possibility of the virus spreading in previously cleared places, and placing social checks on them, so that others can be made aware of the risk the unvaccinated pose to larger society.”
Editorial, ‘Debating disinformation’
The News International, 27 June 2024
“On the way from Sarajevo airport to my accommodation near the city centre, I saw many buildings with holes in their facades. I asked the taxi driver what these were and he said these were from the war in the early 1990s and that many building owners had not fixed them as a reminder of what had happened in the past and the sacrifices the people had made. The city was placed under siege for many months and hundreds of civilians were killed. I was told there is also a bridge in the city over a river where many sniper deaths took place. My host later mentioned that there are colour markings on some roads and these are to signify locations where people died in mortar attacks during the war. But as I said, the city and the country have moved decisively forward and it shows in how its citizens lead their lives and how economic activity is going full steam ahead.”
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“It makes little sense to tax juice.”
-An opinion in Dawn, ‘Taxing health’
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