State Bank of Pakistan eases monetary rate for the fifth time in 2024 I FO confirms death of four Pakistani nationals in the migrant boat tragedy
In Brief
POLITICS
Government moves port authority bill in NA
On 16 December, the government introduced a bill in the National Assembly for the constitution of a port authority to enable the movement of people and goods across the border as well as help cut costs involved in doing business. The bill was introduced by Law Minister Azam Nazeer Tarar on behalf of the Interior Minister and calls for the creation of a Pakistan Land Port Authority. It provides an outline for the regulation, oversight, declaration and security of all land ports to promote trade, adopt border control, meet Pakistan’s strategic interests, and encourage free competition. It is worth noting that such a bill was introduced by the Pakistan People’s Party back in 2012 and the Pakistan-Tehreek-e-Insaaf administration made a second attempt in 2021. If the bill receives approval then Pakistan will become the third state in the South Asian region, after Bangladesh and India, to establish a land port authority. (“Bill for port authority tabled after 12 years,” Dawn, 17 December 2024)
Federal government accused of delaying the madressah bill
On 16 December, Ittehad Tanzeemat-i-Madaris Pakistan (ITMP) called for a “gazette notification” which must be sent out for the Societies Registration (Amendment) Act 2024. ITMP is a union of all the main madressah supervising bodies in Pakistan. Parliament has passed a new bill in relation to the “regulatory affairs of madressahs”. President Asif Ali Zardari has not signed the bill as of now. He has cited some objections with the bill and informed the same to the National Assembly. The was passed by the Senate on 20 October. JUI-F has accused the political parties in the federal government for deliberately delaying the bill. He has further warned the government that the party might carry out demonstrations in order to compel the government for giving its assent to the bill. The federal government initiated the Societies Registration (Amendment) Act 2024 to get JUI-F’s support for passing the 26th constitutional amendment. As per the bill, the Deputy Commissioner will be in charge of the seminaries instead of the education department. It is anticipated that a joint session of Parliament would be held soon to discuss the issue. (“Ittehad Tanzeemat-i-Madaris demands gazette notification be issued for madressah bill,” Dawn, 16 December 2024)
Imran Khan impeding prospects of dialogue between PTI and government: Rana Sanaullah
On 17 December, The News International reported that during an interview, Prime Minister’s Adviser on Political Affairs, Rana Sanaullah, claimed that the major obstacle in talks between the government and the Pakistan Tehreek-e-Insaf was Imran Khan and not the military. Referring to the statement from the military, he stated that the establishment has already announced that it respects dialogue between political parties. “However, if any political group attacks its own army, no one will interact with it,” he added. While some PTI leaders have expressed interest in initiating dialogue, other PTI supporters inside and outside Pakistan have pushed an anti-military narrative in the aftermath of the 26 November protest crackdown. During a Formation Commanders meeting, it was discussed that the “lawful deployment” of the military in Islamabad has been illustrated in a false light as a result of “pre-planned coordinated and premeditated propaganda.” (Ansar Abbasi, “Imran, not establishment, major hurdle in talks: Sana,” The News International, 17 December 2024)
JUDICIARY
Justice Shah equates climate justice to climate finance
On 17 December, Dawn reported on Justice Syed Mansoor Ali Shah equating climate justice to climate finance. He stated that citizens of Pakistan are undergoing a “climate emergency,” however, not enough efforts have been made by the government to combat climate change in spite of several “court orders.” He attended the Pathways to Development Conference in Lahore University of Management Sciences where he emphasized that combating climate emergencies is not possible without climate financing. He said, “Climate finance is the new climate justice.” He further pointed out the requirement of looking into key issues like “food security, disaster management, and water security.” He also stated that climate justice comes under the ambit of human rights and for protecting human rights, it is essential to emphasize on climate financing. He also pointed out a legislation which was passed in 2017 to look into climate change, however, as of now, “no authority” has been formed. (Wajih Ahmad Sheikh, “Fighting climate emergency not possible without nature financing: SC judge,” Dawn, 17 December 2024)
ECONOMY
State Bank of Pakistan eases monetary rate for the fifth time in 2024
On 16 December, the State Bank of Pakistan (SBP), during a Monetary Policy Committee meeting, announced its plan to lower the rate of interest by 200 points to 13 per cent. This is the lowest cut since 2022 and a total reduction of 900 base points in 2024. These rate cuts have been carried out to reduce inflation rates that have caused sluggish economic activity. It was also a result of a contraction in food inflation. Now the question lies in whether the central bank is planning any further monetary reduction or will wait till 2025 as inflation is likely to be volatile in the near future. It is worth noting that the previous monetary cut led to a decrease in the inflation rate to 4.9 per cent in November on an annual basis, however, core inflation continues to be high at 9.7 per cent. In a statement, the SBP forecasted that despite the inflation may seem volatile until “stabilizing in the target range” and a reduction in the current account deficit in fiscal 2025. Simultaneously, the prospects of growth have “improved, as reflected by the recent uptick in high-frequency indicators of economic activity.” On the other hand, domestic businessmen did not receive this development well as they were looking forward to a 400-500 base point cut in the interest rate to contract the inflationary volume. (Erum Zaidi, “SBP cuts interest rate to lowest in over two years,” The News International, 17 December 2024; Aamir Shafaat Khan, “Trade, industry insist on single-digit policy rate,” Dawn, 17 December 2024)
Finance Minister Aurangzeb acknowledges the contribution of formal sector in sharing tax burden
On 17 December, Dawn reported that Finance Minister Muhammad Aurangzeb applauded the “formal sector” for bearing the majority load of tax reforms brought due to International Monetary Fund’s requirements. He stated that the government is making sure that it does not have to depend upon the IMF post completion of the current programme. The Pakistan Business Council (PBC) pointed out the disparity in tax collection from the formal sector as compared to the informal sector. The finance minister asked for the assistance of the formal sector in order to catch those who have managed to skip paying taxes. He informed about the transfusion of Federal Board of Revenue with technology so as to increase the “tax base.” PBC has also requested the federal government to work out a deal with the US government for reduction in tariffs on garments which are made from US cotton and exported to the US from Pakistan. Separately, Jane Marriott who is British High Commissioner to Pakistan has advised Islamabad to enact all the IMF requirements. She further warned that if all the commitments are not executed, it might imperil “critical loan disbursements.” She expressed her apprehension over government facilitating relief measures for the population which might put the disbursal of IMF loan at risk. (“Aurangzeb praises formal sector,” Dawn, 17 December 2024)(Baqir Sajjad Syed, “UK envoy urges Pakistan to implement IMF-agreed reforms,” Dawn, 17 December 2024)
While growth prospects seem favorable, taking account of the rapid growth in the population and the costs that entail it, growth will remain “far short” of meeting the people’s needs: The News International editorial
On 17 December, an editorial titled “Policy rate,” in The News International discussed how the anticipated reduction in monetary rate led the Pakistan Stock Exchange to rise to the 116,000 point mark. This development comes as a decline in food inflation and gas tariffs was observed. Additionally, on 16 December, the State Bank of Pakistan announced its decision to reduce the base points of the monetary policy by 200 points to 13 per cent. The SBP has predicted volatility in the inflation rates, however, there are prospects for growth. In this regard, the overall macroeconomic “outlook remained largely positive.” However, the government ought to look out for the widened gap in tax revenue collection and aim to bridge this gap to stay in the International Monetary Fund’s programme. For the common man, the improvement in their purchasing power remains doubtful. Despite a significant slowdown in price increases, consumers still have to deal with steep costs of living as their incomes and employment opportunities have not aligned with this rise. This situation is further going to worsen because the expected revenue collection measures are set to higher. At such a time, it becomes crucial for the government to retain political support in order to stay on its current economic trajectory as there is no guarantee of when the citizens’ tolerance to the increase in “prices and tariffs will run out.” (“Policy rate,” The News International, 17 December 2024)
SOCIETY
Telecom Authority report reveals 20 per cent fall in FDI during fiscal 2023-24
On 16 December, a report published by the Pakistan Telecom Authority (PTA) revealed that foreign direct investment inflow was lesser than the outflow of investment. It stated that while outflows stood at around USD 90 million in the 2023-2024 fiscal, the inflows stood at USD 46 million. It also reflected a continued reduction in sectoral investment from USD 1.657 billion in 2021-2022, USD 770 million in fiscal 2022-2023 to USD 765 million in 2023-2024. As the revenue collection hit PKR 955 billion in 2023-2024, thereby pushing an inflow of PKR 335 billion to the state treasury. On the other hand, the report suggested the need for investment in upgrading to 5G as existing networks and infrastructure have to be updated. In terms of strengthening its cyber security landscape, the PTA cautioned that a shortage of resources, low human capital, and public-private collaborations may hamper growth. (Mehtab Haider, “Telecom sector FDI declined 20% in 2023-24: PTA,” The News International, 17 December 2024)
Telecom Authority says it won’t block VPNs
On 17 December, according to The News International, Pakistan Telecommunication Authority (PTA) Chairman Hafeez-Ur-Rehman announced that the PTA will not resort to blocking Virtual Private Networks. While addressing the National Broadband Network Forum 2024 organized by the PTA in collaboration with Huawei , he stated that this action was up to the government’s discretion.. In this regard, the Senate Chairman, Syed Yousaf Raza Gilani, urged the government to focus on reducing the digital divide prevailing in urban and rural areas as well as adopt AI across all sectors. Additionally, the CEO of Jazz, Aamir Ibrahim, expressed that the government needs to avoid the mistakes it made during the previous 5G auction, as a new auction has been scheduled for April 2025. He also questioned why the government was not utilizing its 15 Mbps spare spectrum when the national demand was about 100 Mbps. (“PTA can but won’t block VPNs, says telecom regulator chief,” The News International, 17 December 2024)
“Digital Nation Pakistan Bill with its far reaching implications for privacy, data security and citizens rights deserves more thorough discussions”: Dawn editorial
On 17 December, an editorial in Dawn titled “Digital Bill” discussed issues which the government should have attended to before the enactment of Digital Nation Pakistan Bill 2024. The editorial mentioned that the bill which got the assent from the cabinet of the federal government was brought to the National Assembly on 16 December. Under the bill, two new authorities would be established which are the “National Digital Commission and Pakistan Digital Authority.” With the passing of the bill, Pakistanis would get a “digital identity” that would contain data regarding their “health, assets and other social indicators.” The editorial pointed out how the country does not have an exhaustive “data protection law,” in the absence of which, there is an inherent risk that the recorded citizens’ data might get leaked. The editorial also noted another challenge with the digital identity which is very often in the country where there are internet disruptions. This might lead to reduced access to “essential services.” The editorial also highlighted how digital identity is exploited by the government for monitoring the activities of the citizens. The editorial suggests that the government must work upon “data protection mechanisms” and clearly define how institutions like Nadra will work with the new incoming authorities. The editorial further argues for a “phased implementation plan” so that the federal government is able to identify possible threats that could arise. (“Digital Bill,” Dawn, 17 December 2024)
SECURITY
Unknown militants attack polio team in Khyber Pakhtunkhwa
On 16 December, unknown militants killed a police constable in Banda Daud Shah, Khyber Pakhtunkhwa. The militant fire also injured a polio vaccinator. The wounded polio worker was taken to Tehsil Headquarters Hospital Banda Daud Shah. The incident received condemnation from both PM Sharif and President Zardari. PM Sharif has instructed the concerned authorities to give “medical assistance” for people who were wounded in the firing. He stated that the lives of security officers who were protecting the polio workers would “not go in vain.” He further stated “the government will utilize all possible resources to ensure the safety of the polio workers till complete eradication of the disease in the country.” President Zardari stated that militants were the adversaries of the future of Pakistan as they created roadblocks for people to be “healthy and prosperous.” (“Cop martyred, polio worker injured in Karak attack,” The News International, 17 December 2024)
Security situation discussed in a high-profile meeting at PM’s residence in Islamabad
On 17 December, The News International reported that a meeting was convened on 16 December to discuss the present state of security in Pakistan. The meeting was attended by key ministers of the federal government, senior army and civilian officers and was presided by PM Shehbaz Sharif. As per the sources of The News International, the meeting was convened at the residence of PM Sharif in Islamabad. The attendees of the meeting were informed about the current state of law and order in Pakistan including the present condition in Parachinar. Separately, PM Sharif is set to travel to Egypt to attend the Eleventh summit of the Developing eight countries. The summit will take place from 18 to 20 December in Cairo. The D-8 summit is convened once in two years and in 2012 Pakistan organized the summit. The Foreign Office on the PM’s visit to Cairo informed: “Prime Minister will underline Pakistan’s principled position on the situation in Palestine and call for peace in the Middle East.” It is also anticipated that PM Sharif will meet Bangladesh’s Interim government head Muhammad Yunus on the sidelines of the summit. (Mariana Baabar, “Civil, military leadership briefed on security,” The News International, 17 December 2024)
EXTERNAL
FO confirms death of four Pakistani nationals in the migrant boat tragedy near Greece
On 16 December, Dawn reported on the boat tragedy near Greece. Migrants had boarded a boat made of wood which capsized leading to the death of many. As per the Foreign Office (FO), many Pakistani citizens were also aboard on the boat and due to the capsize incident, four of them lost their lives. FO informed that the Pakistani mission in Greece’s capital Athens was in touch with the local authorities. Further, it was conveyed that the Pakistani mission in Athens is trying to help its citizens who managed to survive and attempting to bring the dead bodies back to Pakistan. The migrants from Asia and Africa have been choosing to go to Greece as the first stop to enter the European Union. Between 2015 to 2016, close to 1 million migrants ended up on the islands of Greece. Previously, in June 2023, more than 200 Pakistanis boarded a vessel that turned over near Pylos in international waters. It led to the drowning of many migrants who were on board. (Abdullah Momand, “Pakistani death toll in Greek migrant shipwreck rises to 4: FO,” Dawn, 16 December 2024)
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Why are American Congressmen hesitant to support Imran Niazi?
And what are their interests in Imran Niazi?
Akbar S Babar
- PMLN Digitial
Imran khan has set a very high standard of resilience and sabr. His leadership is incomparable. Yet it's so unfair to him because he is not only innocent but a victim of a series of conspiracies from a backstabbing regime change to assassination attempts, hijacked elections of Feb 8th and 200 bogus, politically motivated cases, and a lot more!
It will never be forgotten or forgiven!
Najam Sheraz
- PTI
PTI is creating a narrative of negotiations to avoid punishment
Barrister Daniyal Chaudhry
- PMLN Digital
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"It has always seemed that the madresssah debate and prescriptions were not based on solid efforts."
- An opinion in Dawn, 'Maulana on board.'
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