Pakistan expected to clinch IMF deal this month; Former Senator Hidayatullah Khan killed in an IED blast in Bajaur
In Focus
PM Sharif at SCO summit: Talks trade, investment, and cooperation with Putin, Rasulzoda, and Mirziyoyev
On 3 July, Prime Minister Shehbaz Sharif met with Russian President Vladimir Putin, Tajikistan’s Prime Minister Qohir Rasulzoda, and Uzbekistan’s President Shavkat Mirziyoyev, to strengthen bilateral ties and economic cooperation. Sharif is on a two-day visit to Astana, where he will attend the Shanghai Cooperation Organisation Council, Heads of State (CHS) and SCO Plus summits. He called on Putin to increase trade with Pakistan, offered the Karachi port to Rasulzoda, and committed to expanding mutually beneficial cooperation in the fields of defence, connectivity, and security with Mirziyoyev.
With Putin, Sharif discusses barter trade
Following his talks with Putin, he said that during the “cordial meeting,” on the sidelines of the SCO meeting, both leaders “exchanged views on bilateral cooperation in multiple areas of mutual interest,” and also spoke on “regional and international issues.” He appreciated the growing ties between both countries through a shared desire and mutual resolve. Putin also mentioned his discussion with Sharif during his remarks, noting that both countries enjoy improving cordial relations due to trade linkages. He also highlighted the possibility of enhancing cooperation in energy and agriculture, expressing resolve to promote cooperation in the sector of food security as well. As per the Prime Minister’s Office, Sharif suggested “renewing” and “expanding” trade “under a barter” system to help “overcome financial and other banking issues.” With trade currently at USD one billion, he said to Putin: “I would like to work with you closely to further cement our relations. We have a whole lot to do and we can benefit from your experience.” Further, he underscored how diplomatic relations between the two are not “driven by any geopolitical contingency” and are not “impacted by relations with other countries.”
With Rasulzoda, Sharif discusses sharing Karachi Port
While talking to Rasulzoda, Sharif invited his Tajik counterpart to use the Karachi Port for trade in order to establish road and rail links between both countries. He expressed hope that the signing of the Strategic Partnership Agreement by both countries would open up areas of mutually beneficial cooperation, helping Pakistan pursue relations in line with Sharif’s “Vision Central Asia” policy. Both leaders vowed to explore potentially granting preferential market access to each other’s goods, including holding discussions on a Preferential Trade Agreement (PTA). Additionally, both remained committed to finishing the CASA-1000 power project early.
With Mirziyoyev, Sharif discusses trade agreements
Separately, during his discussion with Mirziyoyev, both leaders said they would work towards further improving bilateral trade and economic relations. To help achieve this, both expressed confidence in the operationalization of the preferential trade agreement and the Pakistan-Uzbekistan transit trade agreement. Karachi Port’s connectivity to Tirmez was also discussed, along the lines of enhancing bilateral trade. Further, Sharif and Mirziyoyev spoke on the situation in Afghanistan, where both countries noted a common interest in a peaceful and stable Afghanistan that could become a partner in regional development and prosperity.
In his remarks during an inaugural session of the Pakistan-Turkey-Azerbaijan Trilateral Summit held on the sidelines of the SCO Summit, Sharif said that Pakistan deeply valued its ties with Azerbaijan and Turkey, which have roots in cultural and historic bonds. He also proposed establishing tripartite institutional mechanisms in economic and investment sectors, to strengthen commercial and economic cooperation between all three countries.
An editorial in The News International titled ‘Ties with Russia’ pointed out that by “advocating for the reintroduction of a barter trade system,” Sharif wants to both “circumvent existing financial and banking challenges” and also “strengthen bilateral trade.” However, this “renewed focus” on enhancing ties is “not an isolated development,” as Pakistan under Imran Khan’s government also “made significant strides in building a more robust relationship with Russia.” The editorial highlighted the “pragmatic solution” that a barter system brings, as it allows countries to bypass the “complexities of international financial transaction.” This could help Pakistan develop a “more stable and resilient trade relationship” with Russia which is “less susceptible to external economic pressures.” Sharif’s “emphasis on the non-contingent nature” of ties between both countries is especially important in the current global landscape. The “positive trajectory” of relations can help boost collaboration which could provide Pakistan support in areas such as food security and energy sustainability. However, the success of a barter trade system will “depend on the meticulous implementation of agreed-upon terms and the political will to sustain such arrangements.” (Syed Irfan Raza, “PM wants ‘barter system’ to push trade with Russia,” Dawn, 4 July 2024)
In Brief
JUDICIARY
“In Pakistan, justice of any form is, more often than not, difficult to come by,” says an editorial in Dawn
On 4 July, an editorial in Dawn titled “Elusive justice” enumerated and discussed the major barriers to justice in Pakistan. The editorial revealed that in a seminar in Karachi on the matter, judges and prosecutors from across the country agreed that there is a “need to urgently reform the colonial-era Code of Criminal Procedure” as it was “the biggest hurdle they faced in ensuring justice.” Other suggestions put forth in the seminar included: “improved coordination and communication between investigators and prosecutors” to avoid “insufficient or defective evidence,” preventive measures to tackle “frivolous and false litigation,” “depoliticisation of the police” and “proactive legislation on legal reforms.” Further, the editorial described the legal system as “fundamentally broken.” Some of the problems plaguing the legal system delineated by the editorial include: “antediluvian laws,” corruption, understaffing and “inept prosecution and perverse penal systems.” The editorial urged the legislators to proactively fill the existing gaps in the judicial apparatus and emphasized that “the fundamental principles of justice — fairness, equality and entitlement” need to be “institutionalized” before the judicial system in Pakistan can “fulfill its responsibilities.” (“Elusive justice,” Dawn, 4 July 2024)
ECONOMY
Pakistan expected to clinch IMF deal this month
On 4 July, Dawn reported that Pakistan is expected to clinch an IMF deal worth more than USD 6 billion this month having considered and met all of the conditions put forth by the international lending agency. In order to fulfill demands set by the IMF the government has set “challenging revenue targets in its annual budget.” In this regard, the Minister of State for Finance, Revenue and Power, Ali Pervaiz Malik stated “We hope to culminate this (IMF) process in the next three to four weeks.” He further stated ““There are no major issues left to address, now that all major prior actions have been met, the budget being one of them.” The government has set a tax revenue target of PKR 13 trillion for the current the fiscal which is a 40 per cent increase from the previous fiscal. Similarly, the fiscal deficit target has been fixed at 5.9 per cent of gross domestic product which is a significant drop from 7.4 per cent target of the previous year. Malik conceded that these targets have made the budget “unpopular” and would prove to be “burdensome for the local economy.” (“All conditions met for new IMF bailout, says minister,” Dawn, 4 July 2024; Mehtab Haider, “All IMF demands met, new deal to fetch over USD 6 billion: govt,” The News International, 4 July 2024)
Auto industry concerned over duty exemption
On 4 July, Dawn reported that the financial bill of 2024-25 has introduced a fifteen per cent regulatory duty on imported vehicles valued above 1300 cc. Chairman of Pakistan Association pot Automative Parts and Accessories Manufacturers (PAAPAM), Abdul Rehman Aziz, stated that there was an anticipation for “strong measures to discourage the illegal trade of used car imports” as it enables accumulation of black money. He added that the expected sales volume was to arrive at 135,000 units with 35,000 units of imported used cars. However, in the FY 2023-2024, more than 50,000 Pakistanis lost their jobs due to an “influx” of used cars in the market. Aziz also spoke about the “illegal hawala channels” used to make transactions with Japan and the sale of such vehicles locally. An assembler has suggested withholding tax on the vehicle price instead of the engine size. (Aamir Shafaat Khan, “Duty exemption for small used cars irks auto industry,” Dawn, 4 July 2024)
SECURITY
Former Senator Hidayatullah Khan killed in an IED blast in Bajaur
On 3 July, five people were killed in an improvised explosive device (IED) blast that happened in Sesai village of Mamund tehsil, Bajaur tribal district. Former independent Senator Hidayatullah Khan was also among those killed. Deputy Superintendent of Police Bakht Munir revealed that “Mr Khan was on his way to attend a planned campaign event for his nephew when his vehicle was targeted by an IED.” Malik Irfanullah, a police officer and the senator’s close relative was also killed in the blast. The bomb disposal squad revealed that around 5 kg to 7 kg of explosives were used in the explosion. The police spokesman termed the incident an act of terrorism even though no group has claimed responsibility for the attack.
The attack has been widely condemned in Pakistan, including by President Asif Ali Zardari, Deputy Prime Minister Ishaq Dar, KP Chief Minister Ali Amin Gandapur, the Awami National Party,the Jamiat Ulema-i-Islam and several others. Separately, according to Inter Services Public Relations (ISPR), a “high-profile terrorist” named Irfan Ullah alias Adnan, was killed in an intelligence based operation in Bajaur district. He was alleged to be involved in acts or terror against the security forces and extortions and targeted killings of civilians. (Anwarullah Khan & Adam Khan Wazir, “Ex-senator among five killed in Bajaur blast,” Dawn, 4 July 2024)
Land-to-Air missile FN-6 successfully test-fired by the Pakistan Navy
On 3 July, the firing of FN-6 missile which is a land-to air missile was tested by the Pakistan Navy (PN). The test was successful. A statement by the ISPR revealed that Pakistan Navy’s ground-based air defense system was used to test the firing of FN-6 missiles. PN’s Ground-Based Air Defense System successfully engaged the aerial objectives during the test. Commander Coast Vice Admiral Raja Rab Nawaz, who was the chief guest for the occasion “expressed full satisfaction over the operational preparedness of Pakistan Navy’s Ground-Based Air Defense System.” (“PN successfully test-fires land-to-air FN-6 missile,” The News International, 4 July 2024)
“A streamlined military operation is urgently needed,” argues and editorial in The Nation
On 4 July, an editorial titled “Bajaur Again” in The Nation lamented the killing of Former Senator Hidayat Ullah Khan in an IED blast in the Bajaur district of Khyber Pakhtunkhwa province. The editorial revealed that the slain senator had also highlighted “the issues plaguing former FATA, including the vulnerability of politicians in the constituency.” The editorial further referenced the killing of independent political candidate Rehan Zeb Khan before the elections in January in Bajaur and revealed that such targeted killings of politicians are not a novelty in the region. The editorial also revealed that “Bajaur remains one of the areas hardest hit by terrorism” with deep penetration of the terrorists. Lamenting the “ever-compromised” security situation in the area, the editorial has emphasized the need for a “streamlined military operation.” The editorial also suggested that the recently announced counter-terrorism operation, Azm-e-Istehkam, “must take shape sooner rather than later.” (“Bajaur Again,” The Nation, 4 July 2024)
PROVINCES
Southern Punjab can play an important role in the “political economy” of Pakistan, argues an opinion in The News International
On 4 July, in an opinion titled “Southern Punjab needs attention” in The News International, Hassan Baig has argued that policymakers must direct their attention to Southern Punjab as given its “semi- or quasi-provincial status, it is expected to play an important role in the “political economy” of Pakistan. Despite being the country’s biggest province, the region has not received appropriate attention leading to a situation that is “dismal.” Southern Punjab has a huge “demographic” and “economic potential.” It is the most productive region when it comes to the agriculture sector with all three of its divisions – Multan, Bahawalpur and Dera Ghazi Khan, being highly fertile. This region alone contributes 52 per cent to Punjab’s total agricultural production. 40 per cent of the province’s population also lives in this region. Some issues that need focus are: water scarcity in the region, climate change induced problems, poverty, low literacy rate and “deprivation leading to alienation.” The editorial points out that the alienation has resulted in calls for a separate province. The editorial agrees that efforts need to be made “to create a full-fledged province, as promised to the people of southern Punjab.” (Hassan Baig, “Southern Punjab needs attention,” The News International, 4 July 2024)
INDIA VIEW
Motivations behind external support for terrorist activities warrant further investigation, argues an opinion in The Express Tribune
On 4 July, in an opinion titled “RAW-backed alliance of TTP and BLA out to target CPEC” in The Express Tribune, Durdana Najam highlighted four reasons that that has pushed India in “the international spotlight” in recent times. She discussed in detail the fourth reason: “India’s influence on the Taliban government in Afghanistan its role in fostering an alliance between the Tehreek-e-Taliban Pakistan (TTP) and the Balochistan Liberation Army (BLA) to sabotage the China-Pakistan Economic Corridor (CPEC).” Najam argues that this alleged role played by India was confirmed by TTP’s Khawaraj Defence Shura Commander Nasrullah alias Molvi Mansoor in a video played by Balochistan’s Home Minister Mir Ziaullah Langove during a press conference. In the aforementioned video, Nasrullah who was arrested by the Pakistani security agencies in an intelligence based operation, points fingers at the Indian Intelligence Agency, RAW for extending “full support” to the Afghan Taliban government, the TTP and the BLA Majeed Brigade group. He revealed that RAW’s mail goal was to “disrupt the CPEC project.” He claimed that “building terror hideouts in Khuzdar, Balochistan, sabotaging the Pakistan-China relationship, and carrying out kidnappings for ransom to create a narrative of forced disappearance” were all part of this strategy. Further, Nasrullah alleged that TTP Chief Noor Wali Mehsud and and BLA Majeed Brigade Commander Bashir Zaid regularly meet with the RAW official at the Indian Embassy in Kabul and both the TTP and BLA have received “financial and logistical support from the agency.” With this information as backdrop, Najam has argued that there is a need to thoroughly investigate the motivations behind external support for terrorist activities in Pakistan. She has also emphasized that terrorists should not be allowed to flee and regroup in Afghanistan, “even if it requires crossing into Afghanistan.” (Durdana Najam, “RAW-backed alliance of TTP and BLA out to target CPEC,” The Express Tribune, 4 July 2024)
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New tariff being applied in electricity means only one thing. PMLN and PPP hates the poor and middle classes of Pakistan.
- Virk Shahzaib
CPEC: The estimated cost of these Chinese projects is nearly $21 billion, with Chinese debt for energy projects totalling around $16.5 billion. The country needs foreign exchange of about $2.4 billion toward debt and dividends in addition to the payment of power generation charges.
- Yousuf Nazar
Pakistan: Three family members of political workers from the opposition party Pakistan Tehreek-e-Insaf (PTI) have been forcibly disappeared since June 2024. Two brothers of PTI member Azhar Mashwani, Professors Mazhar-ul-Hassan and Zahoor-ul-Hassan, and Shahbaz Gill’s brother, Ghulam Shabbir, were disappeared on 6 June and 9 June respectively. The whereabouts of all three individuals remain unknown. Take action by calling for their immediate release
- Amnesty International South Asia, Regional Office
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“Most women in Pakistan lack the autonomy to take decisions that impact their sexual and reproductive health.”
-An opinion in Dawn, ‘Right to reproductive health’
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