Remittances increase by 32.8 per cent in the second half of 2024 I Foreign Minister laments low intra-regional trade in South Asia
In Focus
EU threatens to stop rice imports from Pakistan
On 11 January, The News International reported on the European Union’s threat to stop the import of rice from Pakistan. On 10 January, Federal Minister for National Food Security and Research Rana Tanveer Hussain held a discussion with the Rice Exporters Association of Pakistan. The discussions were conducted in Karachi. Hussain reminded that the EU has no tolerance when it comes to compromised quality standards of exports. He stated that the EU has threatened to put an end to rice imports from Pakistan. Exporters of rice in the country have also put forward their concerns regarding the obstructions created by the government. Rice exporters have alleged that the government puts pressure on them to show old records and compels them to come for “unnecessary meetings.” The Minister took note of the concerns of the exporters and stressed the government's intent to encourage the export sector. He said “The Prime Minister and the entire government stand with the business community. When you thrive, it benefits the economy and reaches the labor force.” (“EU warns Pakistan on rice exports,” The News International, 11 January 2025)
Remittances increase by 32.8 per cent in the second half of 2024
On 11 January, The News International highlighted a surge in remittances from Pakistani nationals settled abroad. It noted that remittances in the last six months of 2024 rose by 32.8 per cent and amounted to a whopping USD 17.8 billion. This is an improvement from USD 13.4 billion in the same period of 2023. Additionally, the cash flow increased by 29.3 per cent annually while the inflows also grew by 5.6 per cent. This increase has been attributed to the continuous flow of finances via banking channels after a crackdown was launched on the informal purchase and sales of dollars. Besides, a report from Ismail Iqbal Securities pointed out that the growth might be due to the increasing number of Pakistanis working overseas, particularly in Europe, North America and the Gulf. Interestingly, these remittances are expected to rise even more and perhaps reach USD 36 billion or even cross it during the current fiscal and the upcoming month of Ramadan. (Erum Zaidi & Sher Ali Khalti, “Govt, PTI trade barbs as monthly remittances see surge,” The News International, 11 January 2025)
Foreign Minister Ishaq Dar laments low intra-regional trade in South Asia
On 11 January, The News International reported on Deputy PM and Foreign Minister’s Ishaq Dar’s concerns regarding the low volume of trade among the South Asian countries. Just 5 per cent of the trade is carried out in the region. He stated that trade integration is extremely less in the region is a roadblock to South Asia’s growth. He highlighted how South Asia constitutes 25 per cent of the total population of the world. However, despite that, intra-regional trade in South Asia is disappointingly very low. He stated that in current times, “governance and policy reforms” were essential. In this regard, he said, “For Pakistan, this means addressing structural bottlenecks, strengthening institutions, and ensuring transparency and accountability at every level.” He further claimed that Pakistan has chosen a path of “reforms and transformation” which would lead to economic revival and “sustainable growth.” (Dar asks South Asian countries to boost regional trade,” The News International, 11 January 2025)
In Brief
POLITICS
PTI open to extension of deadline; Imran Khan may move International human rights bodies: Aleema Khan
On 11 January, Dawn reported on Pakistan Tehreek-e-Insaaf (PTI) leader, Shibli Faraz’s statement on a televised program that the talks with the government may extend beyond 31 January and that it was “not a big deal.” He said: “The deadline is still 20 days away, and by that time, it would become clearer which way the dialogues are headed.” Ahead of the third round of negotiations, he claimed that if there were positive developments then an extension would not matter too much.
Separately, while speaking to journalists, Imran Khan’s sibling, Aleema Khan claimed that her brother has resolved to approach international human rights bodies for the unfair treatment of his party supporters. After she met with Khan, she quoted her brother saying that he had no option left. Further, she lamented that despite approaching the high court, the chief justice, and the constitutional court, “no court in the country is ready to hear our plea.” (“PTI ‘ready to extend deadline’ for talks with govt,” Dawn, 11 January 2025; “Imran wants world HR bodies moved: Aleema,” The News International, 11 January 2025)
PPP’s objections to canals are “a baseless debate”: Planning Minister
On 10 January, while speaking with reporters, Planning Minister Ahsan Iqbal waved off some of the concerns raised by the Pakistan People’s Party (PPP) over the construction of six new canals on the Indus River. The government has insisted that the new canals will not have adverse effects on Sindh’s share of water. Speaking on the matter, the minister claimed that the objections raised against the canal construction were “a baseless debate.” He further stated that the Pakistan Muslim League (N) (PML-N) had arranged a foolproof plan for the water distribution to provinces back in 1990. Hence, each province should be allocated water in an equitable manner. He also stated that the Indus River System Authority has ensured “the transparency and fairness of the water distribution system.” These statements come as the PPP has expressed unease towards the federation’s plans to construct new canals on the Indus River, for irrigation in Punjab’s Cholistan. (“Coalition not threatened by PPP’s concerns over new canals: Ahsan Iqbal,” Dawn, 11 January 2025)
ECONOMY
Federal government retains E&Y as consultant for PIA’s second privatization bid
On 9 January, the federal government informed that E&Y would continue to be the “advisory firm” as it makes yet another attempt to privatize the Pakistan International Airlines (PIA). Minister of Privatization Abdul Aleem Khan had previously blamed E&Y for not maneuvering the “first privatization bid” properly. In November 2024, he had expressed his unhappiness with the “cooperation and feedback” of E&Y for which the government had paid PKR 2 billion. Secretary of Privatization Usman Bajwa informed that a “new advertisement” will shortly be published for interested parties to apply and take part in the bidding process. Up till now, no foreign firm has shown interest in acquiring the PIA. Bajwa claims since restrictions are removed on PIA to operate to and from Europe, there would be a renewed interest to acquire it. He further informed that the International Monetary Fund has agreed to the government's request for discounting the taxes put on “aircraft leases.” As a result, the market value of PIA has further increased now. (Shahbaz Rana, “Govt rehires E&Y for PIA sell-off,” The Express Tribune, 10 January 2025)
Finance ministry plans to abolish posts vacant beyond three years
On 11 January, an article in The News International outlined a circular issued by the Finance Division. The notification stated that all redundant posts which have been idle for more than three years should be abolished as per the Financial Management & Powers of PAOs Regulations, 2021. This applies to job postings across all ministries and departments. Additionally, no new posting will be created in the government divisions, or departments, unless the Finance Division says so. The circular further read that details on employee-related expenses must be derived from all the divisions and ministries. Only after filling out a form and providing job-related details will it be accepted for employee-related claims. Among other functions within the Finance Ministry, all ministries, divisions, departments, and other entities like the provincial governments will be obliged to provide a Foreign Exchange budget estimate for Fiscal 2025-26. (Mehtab Haider, “Finance ministry moves to get all posts vacant for over three years abolished,” The News International, 11 January 2025)
On economic recovery: “the economy is yet to recover the kind of strength it needs to support faster expansion,” suggests an editorial in Dawn
On 11 January, an editorial titled “Fragile recovery,” in Dawn, discussed the economic trajectory of Pakistan. State authorities have expressed optimism over the country’s latest economic gains after nearly being at the brink of default. It has also been predicted that the economy may finally experience stability after three years of crisis. However, the editorial suggested that the recovery is a fragile one as it continues to remain dependent on the International Monetary Fund and the rolling back of debts. Additionally, the depleting private and formal capital inflows also pose as a matter of concern. The economy continues to be in a “low-growth equilibrium despite improving macro indicators.” In this regard, Pakistan will require more “strength” to avoid delving into another crisis. (“Fragile recovery,” Dawn, 11 January 2025)
SOCIETY
On the recent collapse of mine “This is not negligence, it is systemic oppression” claims an editorial in Dawn
On 11 January, an editorial in The News International titled “Miner’s dirge” discussed the challenges faced by miners in Pakistan and how mine owners are only concerned about their own profits. The editorial cited the the recent mishap in the Sanjid coal mine as an example which has resulted in the death of one miner. Additionally, 11 miners are still stuck inside the mine. The editorial highlighted how the safety standards for operating in mines are not adhered to in the country which has resulted in a number of accidents. The editorial also pointed out that insufficient resources have resulted in incompetency in rescue operations. Non-availability of proper “medical facilities” further aggravates the miseries of the rescued miners. The editorial noted how miners do not have access to proper ventilation systems which are essential for life-threatening gases to have an escape route. The editorial claimed that the mine owners are only interested in profit making and investing minimal amounts in ensuring the safety of miners. It also criticized the regulatory authorities who are not concerned about safety standards being flouted in the mines. Further, the editorial also criticized the government for empty promises. The editorial called for the introduction of state-of-the-art technology for ventilation purposes in mines and appropriate training of “rescue teams.” The editorial also suggested that miners should have “strong independent unions” to raise their concerns with the mine owners and government. (“Miner’s dirge,” The News International, 11 January 2025)
SECURITY
IED blast injures four in Chaman; TTP claims responsibility
On 10 January, Chaman, a small town in Balochistan which is at the Afghanistan-Pakistan border witnessed an improvised explosive device (IED) blast that resulted in injuries to four people. As per the police officials, the bomb was kept on a motorbike with an intention to attack a Frontier Corps (FC) truck. The FC truck sustained the explosion as it took place when the truck already crossed the motorbike on which the bomb was planted. One of the four by-passers who were wounded in the blast suffered serious injuries. Tehreek-e-Taliban Pakistan which is a proscribed terrorist organization took responsibility for the explosion. In another incident, unidentified militants set ablaze a “levies post” in Mastung. The militants took possession of the “official weapons.” Militants had choked the Quetta-Sibi highway. They began inspecting the vehicles which were traveling through the highway. After that, the militants reached Dasht where they torched a “levies post.” On another note, unidentified militants tried to attack the assistant commissioner of Zehri. The assistant commissioner, however, was reported to be safe and unhurt. (Saleem Shahid, “Four injured in Chaman blast, Levies post torched in Mastung,” Dawn, 11 January 2025)
EXTERNAL
On Pakistan International Airlines
On 10 January, the Pakistan International Airlines began its flight operations again, after a four-year hiatus. Its first flight took off from Islamabad to the Charles-de-Gaulle Airport in Paris. In this regard, PIA flights will travel to Paris from Islamabad every Sunday and Friday to create opportunities for tourism and trade. This comes after the European Union Aviation Safety Agency (EASA) had earlier imposed a four-year ban on the air vessel by citing concerns over whether it conforms to international aviation standards. Addressing the occasion, Prime Minister Shehbaz Sharif was quoted saying: “By the grace of Allah Almighty, the incumbent government has restored the identity of the national airlines.” He also noted how the suspension of the flight caused the airline to suffer from economic losses and damage to its reputation. However, from now on, the PIA will help the country move towards new progress and advancement, he added.
On 11 January, an editorial titled “Destination Europe,” in Dawn discussed the resumption of flights by the Pakistan International Airlines to Paris after a four-year hiatus. As it was banned from flying in the European skies, the airline suffered a significant loss. The ban was imposed as there were concerns if the air vessel really complied with international standards for aviation. For instance after the crash of PK-8303 near the Karachi airport, it was learned that the airline did not have pilots with adequate training or air safety measures. In this regard, the PIA has made an effort to reverse “global perceptions” of it. Hence, this PIA’s resumed operations provides an impetus for the country to have its next direct flight to the UK. Additionally, the airline’s privatization bid has suffered as there have been no serious takers. Its new entry in the market also provides it the opportunity to “sweeten the deal” via privatization. However, the editorial observed that irrespective of the privatization process of the aircraft, it ought to focus on its international operations as it has a significantly large Pakistani emigrant population living abroad, especially the UK. ((Muhammad Anis, “PIA’s first flight off to Paris after 4-year hiatus,” The News International, 11 January 2025; “Destination Europe,” 11 January 2025)
INDIA VIEW
On Afghan Taliban and India rapprochement “Pakistan must reassess and readjust its strategy” with Afghanistan says an editorial in Dawn
On 11 January, an editorial in Dawn titled “Afghan outreach” discussed the recent meeting between the Afghan Foreign Minister and Indian Foreign Secretary in Dubai and how it is a matter of concern for Pakistan. The editorial highlighted India’s past investments in Afghanistan. India had infused USD 3 billion in Afghanistan for various “reconstruction projects.” The Northern Alliance which was earlier in control of Afghanistan had good ties with India. The editorial argued that despite the recent tensions in relations between Pakistan and Afghanistan, it would be disastrous to have an adversary on the western border for Pakistan. The editorial cited the opinions of experts who have called for engaging with the Kandahar faction of the Taliban to combat the threat of Tehreek-e Taliban Pakistan (TTP). The editorial was of the view that Pakistan should not have any problem with Afghanistan if it decides to give refuge to the TTP, provided “they pose no harm to Pakistan.” not carry out terror operations in Pakistan. The editorial suggested that Pakistan must engage with other countries in the region to pressurize Taliban and make sure that it does not harbor militants who are a security threat to neighboring countries. (“Afghan outreach,” Dawn, 11 January 2025)
|
"Despite what happened to us, what happened to our people, the way live bullets were fired on November 26, our people made sacrifices, yet Imran Khan is negotiating for Pakistan"
Chief Minister Khyber Pakhtunkhwa Ali Amin Khan Gandapur
- PTI Khyber Pakhtunkhwa
Attempts to sabotage the talks, PTI is spoiling the atmosphere, these people do not want success in the talks
Senator Afnanullah
- PMLN Digital
The image of the country is ruined when mandate thieves sit in the government through Form 47, it happens when you do not have seats but you are made the Prime Minister and Chief Minister.
Sheikh Waqas Akram
- PTI
|
|
|
|
"Sindh’s potential to enhance agriculture productivity is untapped."
- An opinion in Dawn, 'Parched Sindh.'
|
|
|
