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Photo : Dawn

Energy in Pakistan: Five Takeaways

In Brief
POLITICS
Imran Khan announces his party’s readiness to hold talks with the military, receives criticism from PML-N leaders
On 30 July, Imran Khan announced his party’s readiness to hold talks with the military and the army to appoint its “respresentative.” He laid down three preconditions for starting the negotiations: “the return of his party’s ‘stolen mandate’, the release of all detained party workers and the holding of transparent elections.” He further clarified that his party had never “leveled allegations” against the army but had only given “constructive criticism,” which Khan argued to be necessary for democracy. When asked about the negotiations with political parties, he refused to hold talks with Interior Minister Naqvi, stating: “What is the SIFC? Who is Mohsin Naqvi? There is an undeclared martial law.” He further termed Punjab Chief Minister Maryam Nawaz a “fascist” for the continuous arrest of PTI leaders in the province.
In response, the Pakistan Muslim League-Nawaz (PMLN) government slammed Khan’s’s call for negotiations. Punjab Chief Minister Maryam Nawaz referred to Khan as a “self-proclaimed revolutionary figure” and critized his deviation from his earlier stance. She further questioned the purpose of these negotiations. She also asked Khan to apologize for “attacking GHQ, martyrs monuments, corps commander’s house and an airbase, instead of demanding talks.” In response to the “fascist” comment by Imran Khan, shestated: “A fascist is an individual who violates the Constitution to stay in power. A fascist is a person who arrests a daughter before his imprisoned father to torture political opponents.” Similarly, Federal Information Minister Attaullah Tarar blamed Khan for changing his stance and described him as a “security risk for this country.” Both Tarar and Nawaz lashed out at Imran Khan with the former calling him a “brat,” and the latter a “fascist.” (Malik Asad, “
Imran signals willingness to sit down with military,” Dawn, 31 July 2024; Khalid Iqbal and Shabbir Dar, “Imran wants army to nominate representative for talks,” The News International, 31 July 2024; “Imran Khan's offer for military talks draws fierce criticism from PML-N leaders,” The Express Tribune, 30 July 2024)
 

 Anti-terrorism court remands TLP leader for inciting people against the chief justice
On 30 July, Tehreek-i-Labbaik Pakistan (TLP) leader Maulana Muhammad Tahir Saifi was remanded into police custody in a case related to him inciting people against the chief justice. The “prime instigator” Pir Zaheerul Hassan Shah, however, has not been apprehended yet. Saifi was presented before the Anti-terrorism court Judge Khalid Arshad and the video of his speech delivered last week was played before the Judge. The TLP leader had given a speech about an apex court decision on the Mubarak Sani case. The judge remanded Saifi for seven days granting the investigating officer request’s to conduct the photogrammetric test. The police were also directed to produce him on 6 August.
Similarly, two other TLP leaders were arrested fromOkara and several FIRs were registered against the party leaders and workers. This development has come after Hassan Shah’s speech during a rally outside the Lahore Press Club on 28 July in which he called for “violence against Chief Justice Qazi Faez Isa.”  (Wajih Ahmad Sheikh, “
TLP cleric remanded as incendiary leader evades arrest,” Dawn, 31 July 2024)
 

PML-N tables Election Act (Amendment) Bill, 2024
On 30 July, the PML-N tabled the Election Act (Amendment) Bill, 2024 in the National Assembly. The bill argues that independent lawmakers should be restricted from joining political parties after a certain period as per Articles 51 and 106 of the Constitution. The bill proposes that the independent candidates can join a political party only within three days of the publication in the official Gazette of the names of the returned candidates. The statement reads: “To provide clarity in the law in the true spirit of the Constitution, this bill has been designed to provide for that no independent candidate expressly or candidates shall exercise his/their right to join a political party at a subsequent stage after the period specified for the purpose in the Constitution and the law.” The bill states that the independent candidates will not be considered as party candidates if they miss the deadline. Additionally, the bill proposes that if any political party fails to submit their list of reserved seats within the allotted time frame, then the assembly will not consider the list. Further, Law Minister Azam Nazeer Tarar suggested that the bill be referred to a committee and inputs be sought from all political parties. (Irfan Sadozai, “PML-N presents bill in NA against independent lawmakers joining political parties after time lapse,” Dawn, 30 July 2024)
 

Rawalpindi police submit its report on cases against Bushra Bibi to the Islamabad High Court
On 30 July, The Express Tribune reported that the Rawalpindi CPO has submitted a detailed report claiming that Imran Khan’s wife Bushra Bibi is a suspect in eleven cases, including the General Headquarters (GHQ) attack. The report was presented to the Islamabad High Court (IHC). While Rawalpindi and Islamabad police have submitted their reports, the FIA and Balochistan police have yet to do so. The court also issued fresh notices to the FIA and Balochistan police regarding the report. Separately, Bushra Bibi has been charged with several cases such as “the Army Museum, GHQ Gate 4 attack case, the burning of a sensitive military building in Saddar Cantt, attacking an intelligence agency office on Murree Road, and other incidents of arson, rioting, and vandalism in different areas.” (“Bushra Bibi named suspect in 11 cases including GHQ attack,” The Express Tribune, 30 July 2024)
 

ECONOMY
Pakistan achieves primary balance of PKR 0.952 trillion in line with IMF conditions
On 30 July, the Ministry of Finance released fiscal operations for 2023-24 where it reported “insufficient” net revenue receipt that could not even meet “one major expenditure item” during the fiscal year 2023-2024. The report by indicating ongoing issues, noted that the net revenue receipts dwindled to PKR 7.09 trillion, mainly due to the huge burden of debt servicing (PKR 8.2 trillion). This primary balance is equal to 0.9 per cent of the GDP, a developmeNt which is in line with the IMF conditions. The Finance Ministry also reported a PKR 281 billion statistical discrepancy. It further detailed that the other expenditures like “defence, development, running of civil government, pay and pensions, as well as subsidies and grants” were financed through additional borrowing. The report delineated that the last year recorded PKR 13.3 trillion in total revenue and PKR 20.5 trillion in total expenditure. Out of the revenues, PKR 10.08 trillion came from government revenues, PKR 9.311 trillion from the Federal Board of Revenue (FBR), and the provinces generated PKR 0.774 trillion. Other than this, the non-tax revenue collection accounted for PKR 3.2 trillion (PKR 2.96 billion from the federal government and PKR 0.23 trillion from the provinces). Regarding the expenditure, it revealed that a huge portion is consumed by current expenditures (PKR 18.57 trillion). In addition, to finance the budget deficit of PKR 7.2 trillion, the government secured PKR 6.9 trillion in financing. (Mehtab Haider, “Pakistan reports primary surplus in FY24 after gap of 20 years,” The News International, 31 July 2024)
 

Finance Minister Aurangzeb suggests further interest rate cuts
On 30 July, Federal Finance Minister Mohammad Aurangzeb emphasized the possibility of further interest rate cuts by expressing his anticipation that the State Bank would gradually lower the rates. During his address at the Karachi Chamber of Commerce, Aurangzeb highlighted the importance of macroeconomic governance for economic growth by stressing that structural issues will lead to a balance of payment problems. He further pointed out his meeting with banks and urged them to avoid direct lending and directed them to avoid loans against houses or cars. Further, he encouraged banks to provide lending to farmers and small businesses. He urged all the sectors such as “retailers, builders, and realtors,” to contribute to the country’s economy. Additionally, he confirmed Sindh’s decision to tax the agricultural sector and noted that these measures are required for economic stability. He emphasized addressing the balance of payment issues and the goal of increasing monthly exports to USD 4 billion. (“Finance Minister Aurangzeb hints at more interest rate cuts,” The Express Tribune, 31 July 2024)
 

“We have a long way to go before the economy is back on a faster growth trajectory,” says an editorial in Dawn
On 31 July, an editorial in Dawn titled, “SBP’s rate cut,” explained the State Bank of Pakistan’s (SBP) decision to cut interest rates for the second time that is “relatively bullish on a slower but stable recovery.” The article highlighted that these cuts have been made due to “declining inflation, a narrowing current account deficit, the build-up of reserves despite substantial debt and other repayments, and the conclusion of a preliminary agreement with the IMF for a USD 7 billion loan.” Further, monetary authorities also noted that the decision cut interest rates resulted from an accumulation of reserves. The article also observed caution noted by the banks that the “continuation of monetary easing is contingent on fiscal consolidation, realization of planned external flows and structural reforms addressing the economy’s underlying weaknesses.” It detailed the Fitch ratings and asserted that even though there are risks, the “danger of Pakistan defaulting is over for now.” The editorial also projected hope that the positive credit rating will help the country to raise international debt though against higher interest rates. This will, however, help increase reserves and reduce borrowing costs through Eurobonds and Panda bonds. The editorial emphasized that these developments reflect economic stabilization. In conclusion, the editorial cautioned that the next three years will be hard on the people as the economy will remain “fragile and in low growth mode.” The editorial also highlighted that as for the policymakers, there is “no more room left for them to backtrack on their pledge to reform.” (“SBP’s rate cut,” Dawn, 31 July 2024)
 

SOCIETY
“Beyond enrolments, education reforms addressing systematic disenfranchisement should be pursued,” asserts an opinion in The News International
On 31 July, an opinion by Zahra Mughis in The News International titled, “What next after enrolment?” discussed ways in which 26 million out-of-school children and adolescents (OOSCA) in Pakistan can be brought back to schools. The article argued that 39 per cent of the country’s population of school-going children ought to be learning. Highlighting the government’s national education emergency to increase enrolment, the author argued that this process should not leave “those who are left out by the system.” He further argued that bringing children who have never been to school so far is crucial and added that keeping them until their completion of secondary school certification is “equally important and difficult.” He further detailed that the estimated dropouts are consistent in all the provinces and urged the country to increase the enrolments. He asserted that economic constraints and social norms are the factors that deprive children from going to school. He also observed through data that the major reason for quitting school was “the child’s unwillingness (over 30 per cent of dropouts)” rather than “cost or distance.” He underlined that the crisis that Pakistan’s education system is facing is “dual” in nature “as both the number of OOSCA and the learning poverty rates are high.” He underscored the role of language as a factor leading to “disenfranchisement in an education system.,” For instance, in Pakistan, neither English nor Urdu is spoken by the large majority of the population but is a medium of instruction in schools.  He pointed out that children learn best in their language (mother tongue) and argued that language barriers, poor teaching, inadequate resources, and uninteresting content disrupt education progress. He also highlighted that factors like cash incentives, free meals, evening programmes, and other such interventions fail to keep students in schools as the “opportunity cost” for boys (who work) and girls (who do household work) is “high.” Stressing “Article 25-A’s promise,” the author argued along with the focus on increasing enrolments, “reforms addressing systematic disenfranchisement should be pursued.” (Zahra Mughis, “What next after enrolment?” The News International, 31 July 2024)
 

SECURITY
Baloch protests continue amid demands for release of detained protestors
On 30 July, the Baloch Solidarity Committee rallied from Balochistan University to Zarghun Road, with lawyers and civil society members demanding the release of arrested leaders and workers of the committee and the restoration of internet services. Following this, they staged a dharna in front of the Balochistan Assembly and threatened that the full province would be closed if their demands were not met. Both the rally and the sit-in disrupted normal life, with a shutter-down strike in Khuzdar and businesses remaining shut in other areas against the alleged sabotage of a rally organized in Gwadar by Raji Machi. As per an online report, the leaders of the committee announced a national gathering in Gwadar on 28 July. The leaders alleged: “Caravans coming from different areas of Balochistan and Sindh were stopped. Firing in Mastung injured our workers. They killed one of our comrades.” According to a different report, the sit-in and strike in Gwadar and Mastung claimed that multiple pilgrims, including women and children, were stuck at the Pak-Iran border where they faced food shortages. Also on 30 July, Amnesty International called for an end to a crackdown on the protests, expressing concern over the arrest of organizers. It demanded an immediate and unconditional release of everyone who had been detained for exercising their right to protest peacefully. (“Sit-ins, rallies in Quetta, Khuzdar demand release of protesters,” The News International, 31 July 2024)
 

“Unless those who actually control the levers of state act with alacrity, the forces of darkness may be further emboldened,” argues an editorial in Dawn
On 31 July, an editorial in Dawn titled ‘Extremism unbound’ noted the state’s initiation of action against those suspected to have threatened the country’s chief justice, with several federal ministers denouncing the threats made against the top judge by TLP clerics. Though the incident emerged from the recent Supreme Court judgement in the Mubarak Sani case, the matter “reflects the existential danger extremist forces pose to the nation, and the weakness of the state before these outfits.” The state’s pursuit of “suicidal policies where extremist groups are concerned” is why Pakistan is at this “perilous juncture.” Though other Muslim countries do not give vigilantes and extremists any freedom to operate, in Pakistan, they can “effectively blackmail the state, and issue death warrants against the highest officials of the land.” The state responds by either “meekly” asking them to desist or taking “belated action” after the groups cross “red lines.” Meanwhile, political parties or marginalized groups are dealt with the full force of law when they protest peacefully. The editorial warned that a lack of firm action against extremist groups will eventually empower these outfits to “set the nation alight, using emotive slogans to misguide radicalised sections of the populace.” It is the duty of the state to bring those responsible to justice and shut down these outfits, instead of making one or two arrests. Additionally, the ulema have a “major responsibility to restore sanctity.” Established scholars, especially those from the Barelvi school, need to join the Council of Islamic Ideology in condemning the death threats and denouncing “violent vigilantism.” (“Extremism unbound,” Dawn¸ 31 July 2024)
 

“Angry protesters have brought life to a halt in all major towns in southern Balochistan,” says an opinion in Dawn
On 31 July, an opinion in Dawn titled ‘Trouble in Balochistan’ by Zahid Hussain highlighted how despite Balochistan becoming “dangerously polarized” after authorities used “brute force” to stop a peaceful rally, inflaming a volatile situation, those in power have not realized the gravity of the situation. Thousands of protestors in Gwadar have been protesting enforced disappearances and demanding their democratic rights; however, a number of them have reportedly been killed or injured in clashes. Though the march, which has been organized by the Baloch Yakjehti Committee, is not the first such protest against enforced disappearances, it has been the “most consequential in years.” Major towns in southern Balochistan have become the “centre of discontent,” where the administration’s use of violence and roadblocks has infuriated the public. Hussain pointed out how the spread of anti-establishment protests reflects the “growing alienation of the Baloch population, which has long been deprived of its fundamental rights.” Many of the demonstrators were women whose family members were either missing for years or were killed after allegedly being picked up by security personnel. Though the protest was aimed at drawing “attention to the plight of the hapless population,” authorities have been stifling their voices instead of “assuaging their woes.” With the people losing trust in the “manipulated political system” in the province imposed through “rigged elections,” the state’s authority is increasingly being challenged. While Baloch grievances are of long-standing, force has been used to crush their voices. It is the most underdeveloped region in Pakistan in spite of its natural wealth and the “much-touted development under CPEC.” The Gwadar seaport, CPEC’s flagship project, is the “main centre of public unrest” as the local population lives in absolute poverty. Hussain argued that these circumstances are why the Baloch youth who lost hope in the “flawed democratic political process,” have been inclined to join militant groups. Militancy has risen in the province due to “draconian measures and denial of democratic rights.” While there may be some external support for Baloch militant groups, “state repression” is the real cause of militancy. (Zahid Hussain, “Trouble in Balochistan,” Dawn, 31 July 2024)
 

PROVINCES
Khyber Pakhtunkhwa: 22 killed in rain-related accidents, PM calls for coordinated efforts
On 31 July, accidents, landslides, and flash flooding caused by heavy rains killed at least 22 people and injured several others. In the Bazikhel area of Kohat, ten members of a single family were killed after their basement was flooded. Though rescuers demolished the front wall and pumped the water out, they were not able to find any survivors. In Mansehra, Lower Chitral, Bajaur, Charsadda, and Lower Dir, two people each were killed, while one person each was killed in the Haripur and Hangu districts. In Lower Chitral, gushing floodwater killed two people and washed away 16 homes. Several houses were also damaged in villages of Upper Chitral, leaving 63 people homeless. Both Lower and Upper Chitral were left without electricity after a 108-megawatt hydropower station on the Golen Gol stream was closed. After a bridge washed away in Mahandri, thousands of tourists were left stranded in the Kaghan Valley. Hotels in the area provided free room service for tourists for the night. Separately, three people were killed in two rain-related incidents in Sindh, where there was moderate to light rainfall. In response to the situation, Prime Minister Shehbaz Sharif instructed the National Disaster Management Authority (NDMA) to take the required steps to protect lives and properties, including the restoration of highways and roads affected due to rains and landslides. He also called for improved coordination with provincial disaster management teams while speaking to NDMA Chairman Lt Gen Inam Haider Malik. (“10 of a family killed as rains wreak havoc across KP,” Dawn, 31 July 2024)

 

Pakistan on Twitter

Another case of Tosha Khana has been made against Imran Khan Sahib. A case has been made for the third time on the gifts Imran Khan took from Tosha Khana. If there is a crime, there is only one trial. There cannot be separate trials for one offence. This is ridiculous. When it goes to court, Imran Khan will get bail immediately and the matter will be over. This case may be over.
- PTI

Imran Khan is currently sending a message to the army chief to be neutral while he knows that the army has become neutral. This proof of the apolitical nature of the army is that Imran Khan's government fell when the army became neutral.
- PML(N) Digital

PTI has done more harm to Pakistan than India. Only a complete ban on PTI can fix things. That’s the only way forward now.
-Safdar Leghari

 


 

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