NIAS Area Studies
PAKISTAN READER
Photo : Dawn
In Brief
POLITICS
KP CM booked for violence during the Lahore rally
On 23 September, The Express Tribune reported that an FIR has been filed against Khyber-Pakhtunkhwa Chief Minister Ali Amin Gandapur and 300 other unknown people in Lahore for allegedly damaging public property and attacking police constables. The group of men who arrived at the Sialkot-Lahore Motorway and were booked for vandalizing toll plaza, breaking CCTVs and windows. The FIR registered at the Manawan police station details charges of attempted murder, terrorism, and other violations when the police tried to intervene. Apparently, events took a drastic turn when the mob turned violent and tried to set the police personnel on fire and rammed vehicles into them. It has also been claimed that the mob had used firearms, forcing the officers to look for safety. The spectators claimed that on his way to the Lahore rally, Gandapur was seen smashing a truck window with his rifle, as he was frustrated by the roadblocks created by local authorities, who placed containers on the road. (“K-P CM Gandapur booked in Lahore for violent clashes at toll plaza ,” The Express Tribune, 23 September 2024)
JUDICIARY
Reserved Seats case: Supreme Court’s detailed judgement
On 23 September, the Supreme Court released the long awaited “detailed” judgment in the reserved seats case. This development follows National Assembly Speaker Ayaz Sadiq’s letter to the the Election Commission of Pakistan (ECP) wherehe had argued that the 12 July short order was “incapable of implementation” since the Election Act 2017 has been amended. The detailed judgment observed that the lack of an electoral symbol did not affect a party’s constitutional right to participate in the 8 February 8 elections. The court also declared the ECP’s 1 March decision as having “no legal value,” as it deprived the Sunni Ittehad Council (SIC) of reserved seats and distributed them among other political parties on the basis of proportional representation. The commission had implemented an amendment with retrospective effect on the election law which does not allocate reserved seats to a political party if it fails to submit a list of reserved seats within the notice period. The court also deemed the imposition of the returning officers’ act on Pakistan Tehreek-e-Insaaf (PTI) candidates as independent candidates in Form 33 “unconstitutional and unlawful.” The verdict read: “The Commission must therefore fully recognize its constitutional position and the critical role it plays in a democracy while performing its duty to conduct free and fair elections. As a central pillar of democratic electoral processes, the Commission, in its role as a guarantor institution and impartial steward, is tasked with ensuring the transparency and fairness of elections to maintain public trust in the electoral system.”
The court noted its authority and not being bound by any technicalities or rules of procedure, as in this context of this case, the Commission was a “proper party.” The court criticized the election body for behaving as a primary contesting party against the PTI and the SIC instead of assisting the court’s jurisdiction. The court reaffirmed its intervention when the ECP makes significant errors that impact the electoral process and even condemned the Commission for lending an ear to outsiders instead of implementing the Full-Court Bench’s order. The detailed verdict said: “The procedural formality of first accepting PTI’s application and then granting it the relief does not carry much weight where the court’s concern is the protection of the right to vote of the people (the electorate) guaranteed under Articles 17(2) and 19 of the Constitution, more than the right of any political party — whether it be SIC or PTI or any other party.”
Separately, on 24 September, Dawn revealed that that the Election Commission of Pakistan (ECP) is set to hold another meeting with legal experts on the Supreme Court’s (SC) order to implement its 12 July verdict. During the earlier discussions, legal experts and other entities have pointed out that the 1 March amendment seems like an an attempt at circumventing the SC’s authority and sap the PTI’s representation within the Parliament. (Ifthikar A Khan, “ECP to deliberate on SC’s reserved seats judgement today ,” Dawn, 24 September 2024; Sohail Khan, “Detailed judgment issued in reserved seats case ,” The News International, 24 September 2024)
ECONOMY
Standing Committee inquires into SBP’s measures against commercial banks
On 23 September, the Senate Standing Committee on Economic Affairs criticized the State Bank of Pakistan (SBP) for being lenient while holding commercial banks accountable for profits on supplying foreign exchange to business in 2022, at the height of foreign exchange crises. The committee has taken up this issue after receiving complaints and inquired into what measures SBP has taken to recover the PKR 65 billion earned via over-invoicing letters of credit (LC). At the meeting, Senator Saifullah Abro called for details of the profits earned by banks and also the creation of a special team to monitor foreign-funded projects. However, in their response, the SBP officials stated that the central bank had looked into the issue and imposed fines worth PKR 1.4 billion on banks for “over-invoicing.” The Senator was not satisfied by the SBP’s reasoning and he called upon the central bank to provide a detailed report. He observed how the Federal Revenue Board (FBR) had imposed 10 per cent income tax on foreign exchange and the banks took up this matter with the court. But now the SBP officials are not ready to address the PKR 65 billion loss. (Khaled Kiani, “Senate committee slams SBP inaction over banks’ Rs65bn ‘unlawful’ profits ,” Dawn, 24 September 2024)
ADB approves USD 200 million credit to distribution companies
On 24 September, The News International reported that the Asian Development Bank (ADB) is likely to approve a USD 200 million loan in 2024 to fund the Power Distribution Strengthening Project in Pakistan. The initiative aims at modernizing obsolete systems, reducing technical losses and improving revenue collection in Hyderabad, Sukkur, Multan and Lahore Electric Supply Companies. The project’s larger goal is to implement climate resilient measures, improving institutional governance and even help Pakistan reduce its circular debt. It is expected to improve power supply and even benefit those who do not receive adequate supply. As Pakistan suffers from prolonged financial instability leading to inefficient cost recovery and poor revenue collection, the ADB project is set to enhance the operation of distribution companies by improving their billing systems and carrying out institutional reforms. (Israr Khan, “ADB to okay $200m loan for power distribution project in Pakistan,” The News International, 24 September 2024)
Power division projects inflated circular debt of PKR 2.8 trillion
On 24 September, sources from the Ministry of Energy informed The Express Tribune that the power sector’s circular debt has jumped to PKR 2.8 trillion despite increasing electricity tariffs to 51 per cent in July in the previous fiscal. This statistic already stood at PKR 2.383 trillion in June, higher than what was promised to the International Monetary Fund (IMF) and the threshold approved by the cabinet under the Circular Debt Management Plan 2023-24. As a result, the IMF and the government have agreed upon an arrangement where PKR 381 billion will be set aside in subsidy as it will help restrict debt to PKR 2.42 trillion by June. However, June-end has recorded poor debt reduction. Sources say that the new Circular Debt Management Plan has projected an increase of PKR 245 billion to Rs2.63 trillion in the first quarter of the current fiscal year and this is owed to low payment of subsidies. Additionally, the Power Division has projected an escalation of debt to over Rs2.7 trillion in fiscal 2025. (Shahbaz Rana, “Circular debt may swell to Rs2.8tr ,” The Express Tribune, 23 September 2024)
SECURITY
TTP denies participation in diplomatic convoy attack in Swat
On 24 September, the Counter-Terrorism Department of Khyber Pakhtunkhwa police filed an FIR against the unknown assailants who were involved in the murder of a policeman escorting a diplomatic convoy. The FIR has been filed under sections 324, 353 and 427 of the Pakistan Penal Code; sections 3, 4 and 5 of the Explosive Substances Act; and Section 7 of the Anti-Terrorism Act (ATA). However, according to the AFP, the (Tehreek-i-Taliban Pakistan) TTP has denied its involvement in the attack. A statement released by the outlawed group said that it had “nothing to do with the attack” which had targeted foreign diplomats. (Shahbaz Rana, “TTP ‘denies’ involvement in Swat attack on diplomats ,” Dawn, 24 September 2024)
EXTERNAL
PM Sharif to engage in bilateral talks with various country representatives on the sidelines of the UNGA
On 24 September, The News International reported that Prime Minister Shehbaz Sharif is set to visit New York to attend the United Nations General Assembly session and meet various country officials on the sidelines. For instance, on 25 September, PM Sharif is set to meet newly elected British Prime Minister Keir Starmer, the Crown Prince of Kuwait and President Tayyip Erdogan on 24 September. He will also meet the EU president and engage in bilateral talks with Bangladesh, Nepal, Iran, Maldives and others but not India. He is to attend the ‘High-Level Meeting on Existential Threat posed by Sea-level Rise,’ SDG Moment 2024, and the UN Security Council’s Open Debate on ‘Leadership for Peace’ sessions and meetings with UN Secretary-General Antonio Guterres, UN General Assembly President Philemon Yang, European Commission President Ursula von der Leyen, Bill and Melinda Gates Foundation Founder Bill Gates, World Bank President Ajay Banga, and International Monetary Fund (IMF) Managing Director Kristalina Georgieva are a part of his agenda. He has a meeting scheduled with President of Palestine, Mehmood Abbas and Sultan of Brunei Darussalam Hassanal Bolkiah. ” (Azim M Mian, “PM to meet world leaders on sidelines of UNGA session ,” The News International, 24 September 2024)
Pakistan and Tajikistan sign sugar export deal
On 23 September, Pakistan and Tajikistan mutually agreed upon enhancing their bilateral trade by inking an agreement which would entail exports of 40,000 metric tons of sugar to the latter. This agreement was approved during a meeting between the Minister for Food Security and Research, Tajikistan’s Director of State of Tajikistan and Tajikistan’s Ambassador to Pakistan. It was further facilitated by the State Material Reserve of Tajikistan, the Pakistan Sugar Mills Association and the Trading Corporation of Pakistan. Both countries have also planned to constitute a joint working team which will work to strengthen trade relations on food commodities. In a statement the minister announced: “We are ready to assist Tajikistan in meeting its food needs.” He further added that the country would have a lucrative market for the sale of Pakistani products. (“Pakistan, Tajikistan agree on sugar export deal ,” The News International, 24 September 2024)