Photo : Dawn
NIAS Area Studies
PAKISTAN READER
Photo : Dawn
In Focus
Salaried class emerges as key revenue contributor in FY2024
On 15 January, The News International reported that the salaried class boosted Pakistan’s revenue generation in FY2024 and contributed PKR 368 billion. This is a 39.3 per cent increase from PKR 264 billion in FY2023. This PKR 103.7 billion rise highlights their greater tax contribution when compared to exporters, who paid PKR 93 billion. The Withholding Tax (WHT) collection also surged in FY2023-24 by 36.5 per cent and reached a whopping PKR 2740 billion. This is an increase from PKR 2007 billion in the previous fiscal year. The highest WHT increase from dividends was 69.9 per cent, technical fees were 53.6 per cent, profit on debt was 52.8 per cent, salaries were 39.3 per cent, and property sales were 37 per cent. The contract payments and profit on debt each accounted for 18 per cent of WHT, while salaries contributed 13 per cent. WHT now represents 29 per cent of the Federal Board of Revenue’s total collection and 60 per cent of income tax revenue. The collections from the Workers Welfare Fund, Workers Profit Participation Fund, and Capital Value Tax together grew by 12.4 per cent. (Mehtab Haider, “FY2024: Salaried class contributes Rs368bn to become third-largest taxpayer,” The News International, 15 January 2025)
World Bank pledges USD 40 billion
On 15 January, The News International reported that the Ministry of Economic Affairs has revealed that the World Bank has promised to give USD 40 billion to Pakistan under its 10-year Country Partnership Framework (CPF). From the total of USD 40 billion, USD 20 billion will be allocated through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). The CPF will target six key areas, reducing child stunting, combating climate change, improving education, and expanding access to clean water. The International Finance Corporation (IFC) will contribute an additional USD 20 billion to support these initiatives. It also includes the specific goals of increasing tax revenue to over 15 per cent of GDP, generating 10 GW of renewable energy, and ensuring quality education for 12 million students. The plan also aims to deliver healthcare to 50 million people, safe drinking water to 60 million, family planning services to 30 million women, mitigate disaster risks to 75 million people, and increase food security for 30 million individuals. (“WB pledges $40bn to Pakistan under 10-year framework,” The News International, 15 January 2025)
Cybercrime conviction rate remains alarmingly low
On 15 January, Dawn reported that the Interior Ministry has revealed that since 2020 there have been over 7020 arrests for cybercrime with only 222 convictions. This marked a conviction rate of only 3.16 per cent. Officials stated that this was due to capacity issues, unclear cybercrime laws, and frequent changes in investigative authorities. From 2020 to 2024, FIA’s cybercrime cell received 639564 complaints and verified 414,260 of them. This led to 73825 inquiries and 5713 cases filed. Despite the rising number of internet users, the 160000 complaints in 2024 fell short of expectations. A senior FIA official stated that the complaints should have exceeded 200000, given 143 million internet subscribers. The confusion from shifting investigative authority also hindered reporting. In 2024, the National Cyber Crimes Investigation Agency (NCCIA) briefly replaced the FIA as the lead investigative body but was disbanded within months which disrupted public awareness. The recent amendments to the Prevention of Electronic Crimes Act (Peca), 2016 now allow police to handle cybercrime cases, with dedicated desks established in Islamabad and Punjab to address growing digital offences. (Kalbe Ali, “Cybercrime conviction rate ‘very low’,” Dawn, 15 January 2025)
In Brief
POLITICS
Senate debates over PTI Senator’s absence and national issues
On 14 January, PTI lawmakers staged a protest in the Senate and denounced the Punjab government’s failure to comply with a production order for incarcerated Senator Ejaz Chaudhry. Opposition leader Syed Shibli Faraz stated the delay was “contempt of parliament” and urged bipartisan action. The session also witnessed criticism of the Supreme Court’s recent ruling that stripped PTI of its iconic bat symbol. Furthermore, Faraz labeled this an effort to “disenfranchise millions.” Faraz accused the government of political oppression and cited alleged fabricated cases against PTI leaders and economic failures. This also included Pakistan International Airlines’ (PIA) stalled privatization bid. Planning Minister Ahsan Iqbal countered this statement and blamed the PTI for census delays and alleged mismanagement of PIA. He further highlighted a USD 3 billion Chinese investment and progress on a nuclear power plant. Law Minister Azam Nazeer Tarar rejected PTI’s demand for a blanket release of jailed party members and advised court intervention. Meanwhile, Deputy PM Ishaq Dar addressed concerns over PIA’s operations and revealed inquiries into controversial advertisements and plans to restore UK flights and revive grounded aircraft. (Iftikhar A. Khan, “PTI senators take issue with ‘contempt of parliament’,” Dawn, 15 January 2025)
Cabinet approves key reforms to reduce costs and boost national development
On 14 January, the federal cabinet approved revised agreements with 14 Independent Power Producers (IPPs) and shifted to a ‘take-and-pay’ model. These changes are set to save PKR 802 billion and reduce electricity costs by PKR1.37 per unit annually. The RoE (return on equity) payments will be in rupees at a fixed 17 per cent rate, replacing US dollar-based indexation. The future RoEs will align with actual energy generation. PM Sharif, at the federal cabinet meeting, also highlighted educational initiatives and urged strong federal-provincial coordination to enrol 22.8 million out-of-school children, mostly girls. Sharif also commended PIA’s resumed flights to Paris and anticipated beginning of operations to London. Other approvals included merging the Anti-Narcotics and Aviation Divisions into the Interior and Defence Ministries, saving PKR 328 million annually. The cabinet also recognized the security forces’ sacrifices and noted the successful operations against terrorists. Additionally, PM Sharif expressed optimism over a new Pak-Iran border crossing at Panjgur to curb smuggling and enhancinglegal trade. Furthermore, the administrative, maintenance, salaries and other operational expenses were also finalized. ( Khalid Mustafa, “Govt okays revised IPP deals, eyes major saving,” The News International, 15 January 2025)
JUDICIARY
Supreme Court queries if any military personnel were held accountable for 9 May “breaches”
On 14 January, a member of the Supreme Court’s Constitutional Bench, Justice Syed Hasan Azhar Rizvi questioned if any army official had been held accountable for the 9 May security “breaches” targeting military properties. This also included Lahore’s corps commander’s residence. Rizvi observed this during a hearing on appeals against a Supreme Court ruling nullifying civilian trials in military courts. Observing the need to identify masterminds, Justice Rizvi also inquired about non-lethal measures taken to deter protesters and said: “After all, there must be some mastermind behind the conspiracy.” Senior counsel representing the Ministry of Defence, Khawaja Haris Ahmed stated that no military personnel faced charges and explained that restraint was exercised since protesters caused no casualties. He argued that civilians disrupting military operations, even in peacetime, could be tried by military courts under the Pakistan Army Act (PAA). Furthermore, he labeled such acts as severe crimes. Justice Jamal Khan Mandokhail emphasized the assessment of the constitutionality of PAA provisions and critiqued expanding the Official Secrets Act into the PAA without clear justification. The counsel cited the 1999 Sheikh Liaquat Hussain case and affirmed military court trials for civilians were linked to national defence violations. (Nasir Iqbal, “SC asks if any armymen were held accountable for May 9 breaches,” Dawn, 15 January 2025)
On delay incurred in getting justice in enforced disappearances cases “each delay not only denies justice but erodes public faith” highlights an editorial in Dawn
On 15 January, an editorial in Dawn titled “Missing justice” discussed the problem of long delays which the plaintiffs have to face while fighting cases against “enforced disappearances.” The editorial contested the position taken by Chief Justice of Pakistan who stated that enforced disappearances cases are to be heard by high courts. As per the editorial, this would lead to further delay in getting justice. The editorial also reminded that it is the Supreme Court which has to guarantee the protection of fundamental rights. The editorial highlighted the pain of the families who have not heard from one or more of their disappeared members. An exhausting legal system further adds to their woes. The editorial stated that the high court views the cases of enforced disappearances as “routine litigation” and not outright “human rights emergencies.” This is because the high courts are already overburdened with multiple cases. The editorial arguedthat the delay incurred in getting justice leads to diminishing of public trust in institutions. Further, it suggestedthat the Supreme Court must make sure that the cases of enforced disappearances must be heard with a sense of “urgency.” (“Missing justice,” Dawn, 15 January 2025)
ECONOMY
On the use of new technology in custom processes “faceless customs assessment is expected to usher in a significant change in overall working of custom department” says an editorial in Dawn
On 15 January, an editorial in Dawn titled “Faceless customs” discussed the introduction of new technology which will bring more transparency in the custom processes. The editorial mentioned that the new “faceless customs assessment system” was first executed in Karachi in December 2024. It would become fully operational in Karachi from February. The editorial highlighted PM Sharif’s intentions towards extending the use of this technology to other ports of Pakistan. . In this new process, “a goods declaration” which is put forward by an importer would be arbitrarily allocated to an assessment officer. This assessment officer would, however, not be present at the site of import and would operate from a different location. The editorial highlighted how this measure would lead to a decrease in authority of custom officials who earlier would place or waive off tariffs at theirdiscretion. The editorial also pointed out that this measure would lead to a reduction in corruption cases and tax dodging which earlier used to take place as often importers and custom officials would have an off-the-books understanding. (“Faceless customs,” Dawn, 15 January 2025)
SOCIETY
Prime Minister Shehbaz emphasizes on education, IT growth, and trade expansion
On 14 January, Prime Minister Shehbaz Sharif urged the federal and provincial governments to enhance coordination in order to address the issue of out-of-school children especially girls’ education. He also commended the international conference on girls’ education in the Muslim world. In a separate IT sector meeting, Sharif set a target to increase exports to USD 25 billion within five years. He directed authorities to simplify the Right of Way rules to promote broadband services, enhance IT training, and facilitate foreign investors. The initiatives include visa issuance within 24 hours for foreign clients of Pakistani IT firms and increasing the freelancer base to two million within two years. (“‘Centre, provinces must collaborate to enrol 23m out-of-school kids’,” Dawn, 15 January 2025)
PROVINCES
Balochistan: CM Bugti insists upon regular inspection and strict adherence to safety standards after Sanjdi coal mishap
On 15 January, Dawn reported on the mishap in Sanjdi coal mine in Balochistan. 12 coal miners who were stuck in the mine lost their lives. Their bodies have been recovered from the mine after a rescue operation was launched which lasted for six days. The 12th body was retrieved by the rescue team on 14 January. Balochistan CM Sarfraz Bugti has suspended the mine inspector who was responsible for monitoring the Sanjdi coal mine. The enquiry on this matter has been given to CM’s inspection team. CM Bugti, who chaired a “high-level meeting” on 14 January, emphasized on the need to execute “safety measures” for operating in coal mines. He also insisted that “regular inspections” of the mining sites must be carried out. The meeting also saw the presence of Khyber Pakhtunkhwa’s opposition leader Dr. Ibadullah Khan and Balochistan Minister for Finance and Mineral Development Mir Shoaib Nosherwani. CM Bugti instructed that the “Rescue and Training Wing” must be provided with state-of-the-art technology. He asked the Mines and Mineral department to formulate a “comprehensive proposal” for the same. (Saleem Shahid, “Sanjdi coal mine rescue operation concludes; all bodies retrieved,” Dawn, 15 January 2025)
Khyber Pakhtukhwa: World Food Programme suspends Benazir Nashunama Programme over multiple irregularities
On 15 January, The News International reported that in the execution of Benazir Nashunama Programme (BNP) in KP, grave improprieties have come to light. As a result of that, the World Food Programme (WFP) has suspended the programme in KP and urged for an “independent financial audit” to bring out the level of improprieties and make sure that those who are involved in misappropriations are held accountable. BNP was started under Benazir Income Support Program with an objective to enhance the “maternal and child health” by giving necessary services and “nutritional food supplements” to “pregnant and breastfeeding” mothers whose children are below the age of five. As per the official documents, “irregularity of PKR 799 million” was observed in remuneration of workers engaged in the project. It was found that workers and staff had not received “payment slips” that mention discounting their actual earnings. It is also found that the Provincial Nutrition Cell of BNP is asking for reimbursements from WFP for “monitoring BNP activities” despite it itself being responsible for execution of such projects.
(Arshad Aziz Malik, “’Serious irregularities’” detected in Benazir Nashunama Programme in KP,” The News International, 15 January 2025)
Khyber Pakhtunkhwa: Limited relief supplies reach Parachinar
On 14 January, a caravan of 25 trucks which were transporting necessities for the residents of Kurram arrived in Parachinar. PM Sharif conveyed to the federal cabinet that there has been some improvement in Kurram’s security situation. Some of the security contingents have been directed to leave. He stated “All stakeholders will maintain peace and such incidents would never happen again.” He also informed that all the bunkers in the region would be destroyed. KP Deputy Commissioner Asfaq Ahmed stated that measures were taken to make sure that Thall-Parachinar road is safe for the travelers. Residents of Parachinar were not happy as 20 more trucks which were supposed to arrive with the convoy were stopped for not having clearance. This resulted in “limited relief” supplies for the residents. PML-N Member of National Assembly Hamid Hussain also pointed out scarcity of the relief supplies and insisted the concerned authorities to speed up the clearance of the remaining 20 trucks. (Javid Hussain, “PM promises peace as second aid convoy reaches Parachinar,” Dawn, 15 January 2025)
On bringing back normalcy to Kurram “KP government must show genuine commitment to resolving Kurram’s underlying issues” argues an editorial in The News International
On 15 January, an editorial in The News International titled “Saving Kurram” discussed the shortcomings in the approach of the Khyber Pakhtunkhwa government in dealing with the violence in Kurram and suggested what more can be done to curb the spread of violence. The editorial mentionedthat the skirmishes in Kurram in 2024 had resulted in more than 130 people losing their lives. More than 180 people were wounded. The editorial further highlighted that the violence in Kurram is due to a long unsolved dispute over ownership of land which has further become nuanced due to the involvement of multiple sectarian groups. PTI has been in power in Khyber Pakhtunkhwa for 12 years, however, their focus has not been on solving the dispute and lowering the tensions between the communities. The editorial suggested that the KP government must push for a dialogue between Shia and Sunni groups to create a bridge of trust between them. It further suggests that the KP government must employ mediators who can prevent the conflict from going out of hand. In addition to that, the government should make sure that there is no scarcity of necessary supplies and that it should work with the federal government to ensure that the peace accord is not violated.(“Saving Kurram,” The News International, 15 January 2025)
EXTERNAL
Pakistan and Bangladesh remain committed to strengthening defence ties
On 14 January, Chief of Army Staff Asim Munir met the Principal Staff Officer of the Armed Forces Division of Bangladesh Lt Gen S M Kamr-ul-Hassan in Rawalpindi. Both the dignitaries emphasized upon the significance of enhancing bilateral defence relations and combat threats from outside. COAS Asim Munir pushed for collective efforts to maintain “peace and stability” in the sub-continent. Lt Gen Kamr-ul-Hassan appreciated the extraordinary “professionalism” of Pakistani Armed forces and also took note of those soldiers who laid down their lives while combating terrorism. He also had a discussion with Chairman Joint Chiefs of Staff Committee General Sahir Shamshad Mirza. During their discussion, the two dignitaries delved upon the possible areas where they can strengthen their mutual defence cooperation. On a separate note, COAS pointed out the terror operations carried out by Fitna Al Khwarif on Pakistani soil as one of the major causes that have led to tensions between Afghanistan and Pakistan. He confirmed that until Afghanistan takes action against anti-Pakistan terrorists the differences between both the countries would not cease to exist. (Muhammad Anis and Muhammad Saleh Zaafir, “Pakistan, BD keen on boosting military ties,” The News International, 15 January 2025)
On the rise in illegal immigration “exodus reflects a failure to provide an environment where people can envision a promising future” says an editorial in The News International
On 15 January, an editorial in The News International titled “The emigration dream” discussed the reasons behind the rise in illegal migration from Pakistan and what the government must do. The editorial presented an interesting statistic which shows that overall emigration numbers are lesser in 2024 than what it was in 2023. However, the editorial points out the undocumented migrants who are not included in these numbers and who take dangerous routes to reach their desired foreign destination. The editorial highlighted reasons such as Pakistan’s ailing economy which has compelled a section of the population to opt for illegal immigration. Pakistan’s economy suffered huge jolts due to Covid-19, Ukraine-Russia war and the uncertainty existing in its domestic politics. The editorial also sketched another side of the story in which the migrants who manage to reach foreign destinations are often not treated well and are under continuous pressure to send remittances back home. The editorial suggested that the government should expedite their work on improving the economy and focus upon creating more jobs. The editorial opines that job creation and “investment in human capital” could possibly bring down the emigration numbers. (“The emigration dream,” The News International, 15 January 2025)
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- An opinion in Dawn, 'Felon in the White House' |
