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In brief
POLITICS
Imran Khan agrees to apologize for 9 May riots if PTI’s complicity is proven
On 7 August, Imran Khan agreed to apologize for 9 May riots if the involvement of Pakistan Tehreek-i-Insaf (PTI) supporters’ is proven. He remarked that if CCTV footage proved their involvement in the violent protests, he would not only apologize but also expel those members from the party and ensure that they are tried. He made this statement while interacting with the media at Adiala Jail after the case proceedings against him and Bushra Bibi in the Euro 190 million corruption. Additionally, Khan argued that he was also manhandled during his arrest on 9 May as he was dragged from the court premises by the Rangers. He demanded an apology for the same. He restated his demand for a judicial commission inquiry into the 9 May violence. Separately, on the same day, the National Accountability Bureau withdrew 14 witnesses in the aforementioned case against Khan. Dawn reported that the case is likely to conclude next week. In total, there were 59 prosecution witnesses. However, only 35 were produced and cross-examined as ten witnesses were given up by the anti-graft watchdog. (Malik Asad, “Imran ‘ready to apologise’ if PTI role in riots proved,” Dawn, 8 August 2024)
Fourth round of talks between the government and JI remain inconclusive
On 7 August, the fourth round of negotiations held between the government and Jamaat-e-Islami (JI) remained inconclusive. The government handed over a draft after addressing JI’s demands and scheduled the next meeting for 8 August. Federal Minister for Information Attaullah Tarar told the media, “Positive discussions were held with Jamaat-e-Islami. Some issues have been agreed upon in writing. The prime minister's agenda is to reduce electricity prices, with a subsidy of 50 billion rupees provided to consumers using up to 200 units for June, July, and August.” He also revealed that a task force primarily aimed at reviewing the Independent Power Producers (IPP) matters has been formed. He noted that many issues have been resolved yet more remain. be resolved. Liaqat Baloch of JI informed that they will march around 6 PM tomorrow and urged the government to consider the IPP issue seriously. (“Fourth round of talks between JI and govt ends without resolution,” The Express Tribune, 8 August 2024)
ECONOMY
Pakistan to pay USD 26.2 billion in foreign loans this year, says SBP Governor
On 7 August, the State Bank of Pakistan (SBP) Governor Jameel Ahmed told the National Assembly Standing Committee on Finance and Revenue that the country would have to repay USD 26.2 billion in foreign loans. Out of this, USD 12.3 billion deposits would be rolled over in the current fiscal year. He also noted that the SBP has removed all kinds of import restrictions. It remarked: “We are hopeful that there would be re-financing of USD 4 billion commercial loans. In net terms, the total repayment of foreign loans will be standing at USD 10 billion in the current fiscal year, out of which so far repayment of USD 1.4 billion has been made and the remaining external repayment will be standing at USD 8.6 billion for FY2025.” The SBP chief highlighted that there was a reduction in the import of POL (petroleum, oil, lubricant) products from USD 2.5 billion to USD 1.4 billion. He noted that China’s commercial loan for USD 4 billion would be re-financed. He added that there would be foreign loan disbursement of USD 4.4 billion from the Asian Development Bank and World Bank this year. Thus, he assured, “There is no pressure on external payments; therefore, the value of the rupee is likely to remain stable.” Furthermore, he maintained that the inflation will remain around 13.5 per cent in 2024 and 7 per cent in 2025. He additionally revealed that no more funds could be provided to the Benazir Income Support Programme (BISP) in 2024. Following his remarks, Minister of State for Finance Ali Pervaiz Malik urged the Ministry of Planning to provide an effective survey on poverty and asserted “We have full support of the IMF on BISP.” (“Pakistan will have to repay $26.2bn foreign loans this year: SBP chief,” The News International, 8 August 2024)
“IMF loan will provide only temporary relief,” warns an editorial in Dawn
On 8 August, an editorial in Dawn titled “Temporary relief” discussed the recent acceptance of Pakistan’s request by China, Saudi Arabia and UAE to “roll over Pakistan’s bilateral debt of USD 12 billion for yet another year.” Pakistan’s request was aimed at meeting the IMF’s conditions in order to secure a bailout later this month. The editorial explained that such a need for rollover arises when a country is unable to meet its debt obligations due to a “liquidity crunch.” The editorial, however, pointed out that Pakistan’s request to extend the maturity period of these debts by three to five years was either “declined” or “deferred,” which reflects “that even friendly nations are hesitant to bet on us over the long term.” The editorial agreed that the USD 3 billion emergency loan from the IMF has stabilized the economy to an extent but the economy is still “characterized by a shrinking GDP, a balance-of-payments crisis and high inflation.” Further, Pakistan’s “short- to medium-term outlook” also “remains uncertain.” The editorial opined that while the IMF loan will help secure this “newfound stability,” “the quest for faster and sustainable economic growth will remain elusive for years.” The structural reforms mandated under the IMF are important and should be implemented but what the country really needs is “tough and politically unpopular reforms “as the much sought after IMF bailout is only a “temporary relief.” (“Temporary relief,” Dawn, 8 August 2024)
SOCIETY
“Only timely measures can help Pakistan from losing out on the most important natural resource there is,” argues an editorial in Dawn
On 8 August, an editorial titled “Running out of water” in The News International discussed the current water crisis facing urban areas of Pakistan. Citizens have found a way around the issue by installing boring machines to draw out water from the ground instead of relying too much on the government. Private tankers benefit from the free function of demand and supply forces, making it a way of earning quick money in a short period of time. Due to the inflated pricing of water, the common man has found it more cost-effective to extract groundwater. This has become a common practice in the Punjab province. According to several NGOs, this is also because the line water “is contaminated with bacteria carrying serious diseases.” As per a report published by the Pakistan Council of Research in Water Resources (PCRWR), an alarming level of extraction cases has been recorded despite data discrepancies. This would mean that Pakistan is on the verge of losing its groundwater fast even as the governments both at the provincial and federal level continue to remain silent on this matter. The editorial compared this water scenario to the unmonitored use of natural gas which has led the country “to a point of hours-long gas load-shedding.” It also emphasized that groundwater is the only source of water. The editorial suggested that the government must adopt “timely measures” to ensure line water is available and accessible to all as “water woes” will further be exacerbated by climate change. Pakistan being mostly vulnerable to melting glaciers awaits a “darker and thirstier future” if it does not address the hornets. (“Running out of water," The News International, 8 August 2024)
ENERGY
“The imported coal power isn’t the villain in our power economy; the elephants in the room are the RFO- and LNG-based plants” suggests an analysis in Dawn
On 8 August, an analysis titled “Analysis: The bumpy road to Thar coal” in Dawn, Nasir Jamal explained how Pakistan’s proposal to switch to indigenous gas in three China-owned power plants may be a “a slip ’twixt cup and lip” situation. Jamal stressed that this move is a part of the larger sectoral reforms to meet IMF’s demands for a USD 7 billion bailout. Amid an accumulation of public debt of over PKR 2.6 trillion, this move is aimed at suppressing Pakistan’s “circular debt” to some extent. Additionally, Energy Minister Leghari has opined that such a switch will lead to a reduction in electricity prices and imports, saving the country millions. Though many energy experts claim that the transition to Thar lignite is a feasible solution, they also argue that it is not a “straightforward proposition” as it involves extra investment in not only retrofitting the plants to lignite but also includes a range of “regulatory approvals and renegotiations of tariffs and capacity payments.” An additional USD 500 million of capital expenditure would be required to reconfigure the plant, to use it to its entire capacity. According to a senior executive of a coal power company, the policy may look good on paper, however, its implementation poses a hitch Pakistan does not “have enough mining capacity to feed any of the three plants.” This was the case in the 660 MW Lucky power plant. It was built to use local lignite but is currently functioning on imported coal because of “a long delay in mining capacity expansion.” The problem of debt financing and delays in the expansion of mining capacity is due to the following factors. First, Pakistan’s banks are incapable of financing such projects for long periods. Second, foreign lenders from China have shown reluctance due to China’s policy shift from coal, Pakistan’s unpredictable economy and entailing risks, outstanding payments on current China-Pakistan Economic Corridor power projects and lastly Pakistan’s attempt to renegotiate power purchase agreements with Independent Power Producers of China. Another problem is the logistics of the Thar coal, as the plants are located “hundreds of miles away.” They demand “dedicated railway tracks and the construction of additional offloading and handling facilities and a jetty at these plants.” Needless to say, this requires an additional investment. Consequently, the benefits reaped from this project may not be as forecasted as power companies argue that there may be no change in the electricity prices. Granted that “the shift to local fuel resources will lighten the energy import bill” and “ease pressure on the external account;” the cost of production will remain the same as twice the amount of coal will have to be burned to derive the same amount of energy from one part of imported coal. (“Analysis: The bumpy road to Thar coal ," Dawn, 8 August 2024)
PROVINCES
Punjab: 55 dead, 145 injured in rain-related incidents, reports Provincial Disaster Management Authority
On 7 August, the Provincial Disaster Management Authority (PDMA) released a report detailing the casualties during the ongoing monsoon season in Punjab. The report noted that at least 55 people have died and 145 were injured in rain-related building collapses and due to lightening. Further, PDMA predicted that there would be more monsoon rain for the next two days in several districts of Punjab. It detailed, Murree, Rawalpindi, Attock, Mandi Bahauddin, Sialkot, Gujrat, Gujranwala, Lahore, Okara, Kasur, Sahiwal, Khushab, Faisalabad, Sargodha, Nurpor would experience heavy winds and thunderstorms. They also warned of flood possibilities as the water levels in the rivers, dams and canals is continuously increasing. PDMA Director General (DG) Irfan Ali Kathia claimed that complete arrangements have been made ahead of flood warnings.
Further, the report noted damages caused by floodwater in Dera Ghazi Khan, Taunsa and Kot Chitta tehsil. He pointed out that eight boats and 34 rescue workers have been deployed in flood-affected regions. He claimed food and transport provisions for the affected people. (“55 die, 145 injured during monsoon: Punjab PDMA,” Dawn, 8 August 2024)
Balochistan: BYC National Party chief approaches PM Sharif in a bid to resolve the impasse
On 8 August, Dawn reported that the Baloch Yakjehti Committee (BYC) National Party President, Dr Abdul Malik Baloch has approached Prime Minister Sharif in a bid to resolve the issue between the government and the BYC. He urged both sides to resolve the issue through dialogue. He warned against the use of force in protests as they could exacerbate the tension. He said: “The government should show restraint, and all matters should be resolved with Baloch Yakjehti Committee leadership through meaningful negotiations.” On 7 August, authorities conveyed that despite efforts, the impasse remains. Government authorities blamed the BYC for not calling off protests despite agreeing to fulfil the agreement demands. Mediators who convened the meeting expressed dismay over the inconclusiveness of the agreement, which was signed last week. Separately, BYC Organizer Dr Mahrang Baloch blamed the government for “marginalizing” both her and the youth. Baloch challenged the Director-General of Inter-Services Public Relations (ISPR)’s labelling of BYC as a “proxy for terrorist organizations.” In this regard, she wrote on X: “If the youth are accused of being proxies for foreign hostile agencies, intimidated, arrested, or forced into hiding, what alternatives do they have to make their voices heard?” Additionally, she asked DG-ISPR to produce the evidence and criticized the unfulfilled promises made to Gwadar residents. (Saleem Shahid, “National Party chief contacts PM to resolve BYC issue,” Dawn, 8 August 2024)
Gilgit-Baltistan should be given “maximum autonomy possible without compromising Pakistan’s stance on the Kashmir question,” argues an editorial in Dawn
On 8 August, an editorial in Dawn titled “GB tax grievances” discussed the recent protests in Gilgit-Baltistan “against the collection of federal taxes” on goods imported from China. Protestors have blocked the Karakoram Highway and trade with and travel to China has been adversely impacted. Tourists who are there to cross into “Xinjiang from the Khunjerab Pass” also remain stranded. The protestors have highlighted that the GB Chief Court has also ordered against “the collection of various taxes by the FBR and Customs on items imported from China.” Further, the GB Assembly has also adopted a resolution supporting the position of the traders on the matter. After highlighting the nature of the recent protests, the editorial also reminded us that the current protests are the latest in a series of protests that have rocked the region this year. The editorial referred to the earlier protests against an increase in prices of subsidized wheat and long hours of load-shedding. The editorial opined that maybe “what lies at the heart of these grievances is the fact that GB’s constitutional status remains in limbo,” owing to the “Kashmir dispute.” Agreeing with the GB’s reasoning that if the federal government is using its resources, then it should be given a “voice in national life,” the editorial emphasized that the region should be given “maximum autonomy possible without compromising Pakistan’s stance on the Kashmir question.” As far as the recent protests are concerned, the editorial suggested that the court order must be respected and levying of taxes should be done in consultation with the people and their representatives. (“GB tax grievances,” Dawn, 8 August 2024)
EXTERNAL
Pakistan expresses solidarity with the people of Bangladesh
On 8 August, The News International reported that Pakistan has finally broken its “studied silence” on the situation in Bangladesh and the Foreign Office (FO) of Pakistan has finally shared a strong message of support to the people of Bangladesh. The Foreign Office stated: “The Government and people of Pakistan stand in solidarity with the people of Bangladesh, sincerely hoping for a peaceful and swift return to normalcy.” The FO further stated, “We are confident that the resilient spirit and unity of the Bangladeshi people will lead them towards a harmonious future.” This statement comes after reports of an interim government headed by Nobel laureate Prof Muhammad Yunus to be sworn in on 8 August. It is to be noted that the student organizations which led the protests have nominated Prof Yunus for the post. (“Pakistan stands in solidarity with people of Bangladesh: FO,” The News International, 8 August 2024)
WORLD VIEW
“Mr Starmer has rightly condemned the hate-filled rhetoric fuelling these riots,” argues an editorial in Dawn
On 8 August, an editorial titled “Fear in Britian” in Dawn outlined that following the stabbing of three young girls in Southport, waves of riots by far-right groups have erupted and spread across the UK. False rumours of the attacker being identified as a Muslim and asylum seeker have led to demonstrations in and around towns and cities. Far-right spreads hatred both online and offline and has taken to smashing windows, looting shops and burning property, thereby disregarding “the rule of law.” Consequently, Muslims and ethnic migrants fear violence directed towards them. The editorial argued that these events will test Prime Minister Keir Starmer’s “moral leadership”. The editorial emphasized that PM Starmer must take action to not only subdue the riots and “protect those under threat” but also make efforts to “rebuild trust and unity” among communities which have been victim to politicians’ opportunistic intentions. Additionally, it is also necessary to keep a check on the “infiltration” of the far-right discourse on immigration in British politics. (“Fear in Britain ,” Dawn, 8 August 2024)
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