50 per cent of all inland cargo to be brought via Gwadar port
PAK-CHINA
50 per cent of all inland cargo to be brought via Gwadar port
On 19 August, speaking at a meeting, Prime Minister, Shehbaz Sharif called upon authorities to bring 50 per cent of all public sector cargo through the Gwadar Sea port. The forum was briefed upon a Chinese delegation visit. They met with top leaders of the Chamber of Commerce and Industry. Additionally, Chinese experts would be signed up for technology transfer thereby removing all barriers and encouraging Pakistan’s exports. The meeting was also briefed upon how a Chinese auto spare parts company has successfully established itself in Pakistan and that steps are being taken to facilitate renting out of land for Special Economic Zones. Even Pakistani students and researchers are involved where they will be provided with agricultural training in China. At the same time, PM Sharif stated that authorities involved in the IT projects will have to ensure that they are completed on time. The forum was also briefed upon the creation of access to Health and Education to citizens via mobile applications. It was also informed about IT exports which rose by 30 per cent from the previous year and that three lakh students have registered to train in IT programme skills. The meeting was briefed on how the IT Park project is a fast pace one and that collaboration with a Korean company reduced the period for completion from June to February 2025. (“PM orders shifting 50pc public cargo to Gwadar,” The News International, 20 August 2024)
POLITICS
Opposition parties to hold peaceful rally against government
On 20 August, The News International revealed that the opposition party leaders have decided to carry out a peaceful rally against the ruling government. A senior leader said: “It is our moral, constitutional and public duty to speak on issues and challenges being faced by the nation and the incompetence of the government will find even a little way forward and way out.” However, this rally will be held only after receiving administrative approval. It has been planned that Pakistan Tehreek-e-Insaf (PTI) will hold the rally on 22 August, at Tarnol in Islamabad and other opposition parties will actively participate in it. All workers across the country, belonging to the PTI and the opposition party have been ordered to attend. At a meeting of opposition parties, they discussed the current political and economic state of affairs and even reiterated the supremacy of the constitution and the parliament. The participants were uniformly concerned about the government’s “self-serving” actions “at the cost of the Constitution and its spirit.” PTI member and National Assembly Opposition Leader, Omar Ayub said: “Efforts will continue to restore the Constitution and rule of law in Pakistan and a nationwide campaign against the government will be announced soon.” (Mumtaz Alvi, “Opposition vows to hold rally at Tarnol on 22nd,” The News International, 20 August 2024)
Ministries of Industries and Production, and Energy set to be abolished
On 20 August, the Senate Functional Committee on Devolution has agreed to abolish the ministries of Industries and Production and Energy and suggested the devolution of their responsibilities to provinces or the Council of Common Interest. Looking at the track record of the ministry over the last two years, the committee noted that the ministry had become a provincial matter. On the other hand, Senator Zarqa Suharwardy who chaired the committee meeting inquired why the Pakistan Steel Mills (PSM) was closed when private steel mills were functioning well and why 2,200 employees had been hired if the PSM was closed. To this, the ministry responded that laying off half of the labor force needed the labor court’s approval. Senator Suharwardy also expressed concern upon why the PSM’s gas bill amounted to PKR 440 million as the non-functioning PSM was receiving more gas when the general public is suffering a shortage. To this, officials responded that gas supply has been discontinued to the mill. The committee asked for a detailed report on fertilizer factory’s sales and exports. As the current non-development budget for industries and production is at PKR25 billion, Senator Zarqa Taimur asked how it would benefit Pakistan and what good would subsidizing urea do. The secretary responded that the subsidy is to help address gas shortages. In response, the committee called for a detailed report on which companies and individuals were receiving this subsidy. Looking at the petrol division’s performance over the past two years, Senator Samir Hussain Ghumro expressed concern as to why 70 new companies were formed even though it was beyond government authority. He warned that if this practice persisted then the Prime Minister would be called upon to address them as the petrol division falls under the purview of Federal Legislative list 2. ( Amin Ahmed “Senate devolution body agrees to abolish industry, energy ministries,” Dawn, 20 August 2024)
Imran Khan suspects Lt General Faiz Hameed will be forced to implicate him in 9 May events
On 20 August, Dawn reported that Pakistan Tehreek-e-Insaf leader Imran Khan is of the opinion that ex-Inter-Services Intelligence, Lt General Faiz Hameed was being pitted against him. Speaking at Adiala Jail, he claimed that the cases filed against him were false. They lacked substance and the recent arrest of General Hameed was a forced attempt at making him an approver against Khan in 9 May incidents. The former prime minister said that General Hameed’s testimony was not a matter of concern for him as the CCTV footage of 9 May will provide sufficient evidence revealing culprits behind the violence. He opined that the ruling regime feared its “theft of the public mandate” coming to light after Chief Justice of Pakistan Qazi Faiz Isa retires. Khan also highlighted that all cases filed against him have ended. Hence, plans are now being hatched to take him to the Martial Court where General Hameed will claim that 9 May was a conspiracy. He dismissed allegations that General Hameed had issued orders to his wife Bushra Bibi. Further, he decried the Former Army Chief Qamar Javed Bajwa for betraying him. In a separate TV interview, a PTI Member of National Assembly claimed that General Hamed had caused more harm than benefitted the party. He said, “Being a lawyer, I cannot approve of Gen Faiz’s acts as spy chief such as victimizing political opponents, harassing them, lodging cases against them.” He also alleged that Bajwa had entered an agreement with Nawaz Sharif which led to General Hameed’s removal from his post. (Malik Asad, “Imran fears Faiz will be forced to turn against him ,”Dawn, 20 August 2024; “Will be taken to military court after Gen Faiz’s statement: Imran,” The News International, 20 August 2024)
JUDICIARY
IHC accepts Imran Khan’s plea barring trial court from final verdict in the £190 settlement case
On 19 August, the Islamabad High Court (IHC) heard a plea filed by Pakistan Tehreek-e-Insaf (PTI) leader Imran Khan requesting the court to bar the trial court from declaring its final verdict in a £190 settlement case. Khan’s lawyer Salman Safdar informed the bench that they had requested records for a past National Accountability Bureau (NAB) decision but the trial court had rejected the plea. Further, he also argued that accountability courts were restricted from delivering final verdicts. The £190 million case involves the PTI premier causing a loss to the state exchequer. The case also involves a property tycoon. As per the details of the case, Khan had allegedly carried out billions of rupee settlement with the tycoon. ( Awais Yousafzai, “IHC bars trial court from issuing final verdict on Imran’s request ,” The News International, 20 August 2024)
ECONOMY
Government quietly expands trader’s tax bracket to meet IMF’s demands
On 20 August, The Express Tribune reported that the federal government has quietly extended the retailers’ scheme, “bringing 100- square- foot shops in residential areas” in the tax bracket. They were previously not liable to pay a fixed tax income ranging from PKR 100 to PKR 60,000 every month. While this was necessary to address the International Monetary Fund’s concerns of a narrow base, the government did not make the decision public to avoid backlash as it is already under pressure from traders and the Jamaat-e-Islami. A senior Federal Board of Revenue (FBR) spokesperson said that the government will make the announcement at a favorable time. The government is also levying a tax of PKR 100 per month on makeshift shops, small shops with an area of five by three square feet and kiosks. In the previous month, the government had implemented a scheme to collect PKR 50 billion from traders in the current fiscal year. But tax exemptions for 100-square-foot shops and 50-square-foot commercial area shops have impeded the FBR’s ability to reach its target. About 62 traders have registered under the scheme and have contributed PKR 115,000. This expansion comes against the backdrop of uncertainty about the IMF executive board meeting scheduled to be held next month\ as announced by Finance Minister Muhammad Aurangzeb. While the IMF management is set to decide upon approving its loan to Pakistan, Pakistan is yet to fulfill its demands surrounding external financing gap. (Shehbaz Rana, “Govt expands traders' tax scheme ,” The Express Tribune, 20 August 2024)
Independent Power Producers at a tax advantage since 1990s
On 20 August, an article in Dawn revealed that according to official sources, Independent Power Producers (IPPs) have received tax exemptions valued at PKR 1.217 trillion starting from the mid 1990s all the way up to 2023-2024. The capacity payments of these IPPs are lower than the exemption rates. Ever since the electric power plants were established, after 1 July, 1988, democratic and autocratic regimes have enforced five power policies resultantly allowing a lifetime tax concession. Official records display these exemptions in government data up to 2018-19. Soon after, the information was not only not disclosed by combining it with other sectors but also the rate of exemption increased. It should be noted that IPPs are owned by 40 affluent families. A renowned economist, Dr Hazeef Pasha said that IPPs exemplified favorable pricing mechanisms. The power tariffs were priced in a manner in which the government finances the capacity and fuel costs. Consequently, this reduced the market risk for IPPs to underutilization of the capacity. A 25-30 per cent return on equity over the years was incentive enough to establish IPPs in Pakistan. (Mubarak Zen Khan, “Independent power producers enjoyed tax breaks of PKR 1.2 trillion since 1990,” Dawn, 20 August 2024)
HEALTH
Second mpox case arriving from Gulf country detected
On 19 August, the Border Health Security detected another Mpox case in a person arriving from a Gulf Country. The suspected patient is a resident of Pakistan Occupied Jammu and Kashmir. The 47 year old male has been shifted to the Pakistan Institute of Medical Sciences and has been kept in isolation. According to Dr Naseem Akhtar, his sample has been sent to the National Institute of Health. She informed that his condition is not serious and that contact tracing will be done in order to contain the spread. Health Ministry spokesperson Sajid Shah commented that this incident reflects the country’s seriousness in “strictly following international health regulations.” He added that such practices will “reduce the chances of outbreak of local transmission of the disease. He added that the Prime Minister’s Coordinator for Health Dr Malik Mukhtar visited the Islamabad International Airport to inspect “arrangements made for screening of passengers at all entry points.” However, this wasn’t the second mpox case. The first one who reported positive came from a Gulf country and arrived at Mardan. Shah also outlined the classification of the mpox virus. He said: “Mpox virus is categorized into two primary clades: Clade I and Clade II. The previous global outbreak from 2022 to 2023 was predominantly linked to Clade II, which is known to cause milder symptoms compared to Clade I. Currently, the ongoing outbreak in the Democratic Republic of the Congo (DRC) is primarily associated with CladeIb. As of now, there have been no reported cases of Clade I in the country.” In other news, the health ministry notified that the man who arrived at Mardan was classified under Clade IIb. It said “Currently, the ongoing outbreak in the Democratic Republic of the Congo (DRC) is primarily associated with Clade 1b. Notably, as of now, there are no reported cases of Clade 1b in Pakistan.” (“Another traveller from Gulf hospitalised in Islamabad for mpox test,” Dawn, 19 August 2024; “Health officials confirm last week's mpox case not a new variant,” The Express Tribune, 19 August 2024)
SECURITY
3 soldiers dead and 5 TTP members killed along Afghan border
On 19 August, as per a press release issued by the Inter Services Public Relations (ISPR), three soldiers and five members of the Fitna Al Khawarij, formally known as Pakistan Tehreek-e-Taliban were killed on 18 August. The forces were successful in preventing an infiltration attempt along the Pakistan-Afghanistan border in the Bajaur District of Khyber Pakhtunkhwa. The forces came face to face with the insurgents to prevent their entry into Pakistan. This resulted in a gunfight in which four sustained injuries. The ISPR repeated its request to the Taliban regime to maintain effective management on their side of the border. It also deemed it importantto prevent Afghan terrorists from using the shared territory to launch attacks on Pakistan. (“Three soldiers martyred, five Fitna al Khawarij terrorists killed in Bajaur: ISPR,” The Express Tribune, 19 August 2024)
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It cannot be disputed that weakening the army of any state is like weakening the state, but is the state affected only by weakening the army? Who is weak when the Parliament is placed before the Supreme Court and the decisions of the Supreme Court are not implemented?
- Hamid Mir
Despite the 4 bomb blasts in Quetta, on the call of Imran Khan, the brave founder of Tehreek-e-Insaf, a real freedom rally was held in Quetta under the leadership of his soldier Provincial President Dawood Shah Kakar, in which thousands of people participated. And proved that they are real soldiers of Khan...!
- PTI
Freedom is the greatest blessing in the world. Punjab Chief Minister Maryam Nawaz
- PMLN Digital
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