Maritime Taskforce reports PKR 5.5 trillion discrepancy in trade with China I COAS dismisses Indian Army Chief’s remarks
In Focus
Government fails to meet public debt target
On 5 February, The News International reported that the government has been unable to fulfill its promise to the parliament regarding the reduction in total public debt under the Fiscal Responsibility and Debt Limitation Act. This failure stems from the existing fiscal imbalance leading to a PKR 8.34 trillion increase in public debt. Data published by the Finance Ministry revealed that the public debt of PKR 71.2 trillion in fiscal 2024 rose from PKR 62.8 trillion in fiscal 2023. Moreover, the public debt has continued to rise in the first quarter of fiscal 2025 by 1.3 per cent. A Debt Policy Statement was submitted by the Ministry of Finance before the parliament which envisaged a debt target of 61 per cent. However, in September 2024, the total public debt was at 61 per cent. On the other hand, the government had issued guarantees, particularly rollovers valued at PKR 274 billion. But in the first quarter of 2025 only one guarantee worth PKR 50 billion was rolled over. In this regard, the increase in debt between January and September 2024 is owed to the inclusion of guarantees to advance commodity financing for State Owned Enterprises. On the external debt side, more than half of Pakistan’s external debt is constituted of funding from multilateral financial institutions, while the second major lenders are bilateral partners who have a 28 per cent share of debt. (Mehtab Haider, “Pakistan’s public debt surges by Rs8.3tr in one fiscal,” The News International, 5 February 2025)
Maritime Taskforce reports PKR 5.5 trillion discrepancy in trade with China
On 5 February, according to The News International, while citing the findings of the Task Force on Revamping of the Maritime sector, the Defence Ministry of Pakistan highlighted a discrepancy of PKR 5.5 trillion in trade with China. This culmination is a result of under-invoicing and the exploitation of the non-integration of technology at the ports. This has led to tampering with cargo manifests, tax assessments, and declarations. The non-digitalization in port processes has led to a revenue collection shortfall and pilferages due to poor connectivity with the Federal Board of Revenue and the Customs authorities. In fact, the current Information and Communication Technology infrastructure found by the Task Force is outdated and does not assist in core business and support operations. In the case of Pakistan the declaration of “point of origin” and “goods declaration” is non-compulsory. This is compounded by poor digitalization, paving way for mis-declaration, smuggling, money laundering, evasion of taxes, and other illicit activities. (Ansar Abbasi, “Estimated Rs5.55tr trade discrepancy exposed,” The News International, 5 February 2025)
COAS dismisses Indian Army Chief’s remarks
On 4 February, Chief of Army Staff (COAS) General Asim Munir dismissed Indian Army Chief General Upendra Dwivedi’s assertion that 80 per cent of the militants who have taken refuge in Jammu and Kashmir are of “Pakistani origin.” COAS termed the Indian Army Chief ‘s remarks as “irresponsible and detrimental to regional stability.” As per the Inter-Services Public Relations (ISPR), COAS stated that the remarks made by India’s Army Chief was an attempt to shift the focus of the international community and people of India from internal problems and “human rights violations” in the valley. Pakistani Army has reaffirmed its continual support to people of Jammu and Kashmir. COAS further stated that the army is ready to counter India’s aggression at the border and that any “misadventure” would be answered with “full and resolute force of the state.” Separately, he also stated that the army would not allow miscreants to hamper peace in Balochistan. He further warned that any attempt made my foreign powers to “mislead and radicalize the youth of Balochistan” would be foiled. (Umar Bacha, “COAS rubbishes Indian military’s ‘hollow statements’, vows full throttle response to any ‘misadventure,’” Dawn, 4 February 2025; Muhammad Anis, “Indian military’s hollow threats testify to their frustration: COAS,” The News International, 5 February 2025)
In Brief
POLITICS
Senate Committee approves three bills related to human trafficking
On 4 February, the Senate Standing Committee on Interior approved three bills aimed at imposing stricter penalties on human trafficking. In this regard, amendments to the Prevention of Trafficking in Persons Act 2018, the Prevention of Migrants Act, 2018, and the Emigration Ordinance 1979 were given a go ahead by the committee. The first amendment aims at enhancing the prison sentence on human trafficking charges to 10 years, which was originally seven years. This is compounded by a fine of PKR 1 million. The prison sentence is raised to 14 years for crimes against women and children with a fine of up to PKR 2 million. This development comes following complaints from the embassies of Malaysia and Iraq against Pakistani nationals who arrive in the name of personal and religious visits but end up resorting to begging. The committee also approved amendments to the act aimed at curbing human smuggling. The punishment has been increased to 10 years, from five years of imprisonment while the fine has increased from PKR 1 million to PKR 10 million. Besides, the changes to the Emigration Ordinance 1979 have reduced the court’s power to release accused in return for a meager fine. The fresh amendment now imposes a mandatory sentence along with a fine. (Ifthikar A Khan, “Senate panel okays bill for stricter penalties on human smuggling,” Dawn, 5 February 2025)
COAS denies receiving any letter from Imran Khan, reports The Express Tribune
On 4 February, The Express Tribune reported on the speculation of Imran Khan writing to Chief of Army Staff (COAS) Asim Munir. As per the sources of The Express Tribune, COAS does not have any such information regarding a letter from Imran Khan. It was only after the news circulated in the media, that the army came to know about the “alleged letter” from Imran Khan. The speculations began after PTI’s Barrister Gohar Ali Khan conveyed to media sources that Imran Khan in his letter to COAS had requested him to reconsider his policies. Imran Khan’s lawyer Faisal Chaudhry further informed that the former PTI chairman wrote a “six-point letter” addressed to COAS. In the letter, Chaudhry claimed that Khan had urged for “national unity and support for the armed forces.” The letter also urged that a judicial commission must be formulated to put an end to contentious issues. Barrister Gohar Ali Khan stated that Khan does not have any ill intentions towards the Army and that there has been no change in the party’s policy. (“Imran Khan’s alleged letter to army chief refuted by security sources,” The Express Tribune, 4 February 2025)
Opposition leaders plan action against the government; Fazl calls for fresh elections
On 5 February, The News International reported that the Jamiat—Ulema-e-Islam (F) (JUI-F) founder, Maulana Fazlur Rehman, and other opposition leaders have decided to take action against the government. This comes as opposition leaders including Tehreek Tahafuz Aiyeen-e-Pakistan chief Mehmood Khan Achakzai, Rehman, former prime minister Shahid Khaqan Abbasi, Pakistan Tehreek-e-Insaaf’s Omar Ayub Khan, and the heads of other political parties attended a dinner hosted at the former National Assembly speaker, Asad Qaiser’s residence. The News learned that the meeting was held to discuss the prevailing political situation in Pakistan. Separately, while peaking with media, Rehman called the 8 February general elections “rigged.” He also called for the government to be dissolved and the announcement of fresh elections. (“Fazl demands fresh polls,” The News International, 5 February 2025)
On political parties: “The PTI chief, as well as the leaders of the PML-N and the PPP, must acknowledge that they share common problems,” argues an editorial in Dawn
On 5 February, an editorial titled “Letters from jail,” in Dawn highlighted the need for a dialogue between the major political parties of Pakistan, namely, Pakistan Muslim League (N) (PML-N), Pakistan People’s Party (PPP) and the Pakistan Tehreek-e-Insaaf (PTI). It cited the recent letters submitted by Imran Khan from jail. These letters have been addressed to the judiciary and the establishment. However, it raises questions as to why they were not extended to the leaders of rival parties. The editorial underscored that despite the extent to which these parties are pitted against one another, they have many commonalities. These parties have “suffered at the hands of an errant judiciary and an overreaching establishment.” Each has posited the other two as the largest villains of Pakistan, however, they have been unable to resolve issues independently. Hence, the editorial called for a collaboration between the PPP, PML-N and the PTI to build the strength of “civilian rule” as their “feuding has not benefited the common citizen.” (“Letters from jail,” Dawn, 5 February 2025)
JUDICIARY
IHC judges call for fresh oath of newly transferred judges under Article 194
On 4 February, five Islamabad High Court (IHC) judges sent a representation to Chief Justice of Pakistan Yahya Afridi and the Chief Justice (CJ) of IHC Aamer Farooq to regain their seniority. These are the same judges who wrote to the president, the Chief Justice of Pakistan (CJP) and chief justices of other high courts, strongly opposing the transfer of provincial judges to the IHC. This development has proved significant for Justice Sarfaraz Dogar from the Lahore High Court (LHC) as his transfer has made him eligible for the top position of IHC’s CJ. Consequently, Justice Dogar replaced Justice Mohsin Akhtar Kayani who was originally, the next senior judge. In this regard, in the representation sent to the CJP and the IHC CJ the judges cited Article 194 which calls for a fresh oath to be taken if there was a transfer to another high court. Hence, the newly transferred judges would be placed at the bottom of the seniority list as the seniority of the judges transferred would be determined from the date they take a fresh oath. (Malik Asad, “IHC judges want changes to seniority list undone,” Dawn, 5 February 2025)
MOU agreed upon between National Accountability Bureau and Public Procurement Regulatory Authority to combat corrupt practices in “public procurement”
On 4 February, a MOU was agreed upon between National Accountability Bureau (NAB) and Public Procurement Regulatory Authority (PPRA) for formulating a system that would enhance coordination between the two entities with respect to sharing of details of e-procurements. The two authorities are looking towards enhancing “fairness and transparency” in the procedure for “public procurement.” The signing protocol saw the presence of NAB Chairman Lt Gen (retired) Nazir Ahmad, Deputy Chairman NAB Sohail Nasir, and Prosecutor General Accountability Syed Ihtasham Qadir among several other key dignitaries. The objective of the MOU is to enhance “transparency and accountability” by mutual cooperation and formulating a system that would be immune to unfair practices. Both NAB and PPRA through the MOU look towards increasing their capacity and help each other in formulating guidelines that would discourage “corruption and fraud.” (Asim Yasin, “NAB PPRA sign MOU to promote transparency in procurements,” The News International, 5 February 2025)
ECONOMY
PM Sharif pushes for making Gwadar port functional for commercial purposes
On 4 February, PM Sharif adjured the formation of a of a committee to take prompt steps for making Gwadar port functional so that it could be used for commercial purposes. Ahsan Iqbal who is Minister for Planning Development would be leading the constitution of this committee. PM Sharif also urged for convening an “international conference” to spread information regarding the significance of Gwadar port. He said “there should be better marketing and awareness strategy and making diplomatic efforts to create awareness about the effectiveness of Gwadar port.” Ahsan Iqbal informed in a cabinet meeting that Gwadar port would bring down the cost and time required for the goods to reach “Persian Gulf for vessels less than 50,000 deadweight tonnage.” Gwadar port would also prove to be beneficial for China and Central Asian countries. He further informed that there would be no taxes imposed in Gwadar free zone. He recommended that AI must be utilized in improving the “inspection facility” present at the port. (“PM directs urgent steps to operationalize Gwadar port,” The News International, 5 February 2025)
On Agriculture tax: It will be difficult for Pakistan “to revamp” its collection system, argues an editorial in Dawn
On 4 February, while addressing a federal cabinet meeting, Prime Minister Shehbaz Sharif announced that all provinces have decided to implement tax on agriculture which was a key demand under the International Monetary Fund’s seven billion bailout package. Further, the imposition of taxes on agriculture will vary across provinces and a significant amount of revenue is expected to flow in from Punjab and Sindh provinces, a source reported by Dawn claimed.
On 5 February, an editorial titled “Agriculture tax,” in Dawn discussed the recent implementation of the Agricultural Income Tax law which aims at homogenizing tax rates in accordance with the personal and corporate income tax regime. This move was aimed at fulfilling the International Monetary Fund’s conditions ahead of Pakistan’s performance review likely to be scheduled in late February or early March. This step was not only necessary to broaden the tax net, it was also required to plug “big loophole that facilitates tax evasion due to a low slab rate.” It creates a fair national tax system. However, it would be illogical to expect an immediate increase in revenue collection. In the grand scheme of things, it reflects on a country with one of the lowest tax-to-GDP ratios, has to collect revenue from all segments of the economy. Furthermore, it lacks the flexibility to transfer the tax burden from one segment to another in order to fulfill its ever-growing revenue needs. Hence, the editorial commented that the passage of the law was the “easy part.” Instead, the government ought to focus on improving its collection system to reap the benefits of the tax law. (Syed Irfan Raza, “All provinces agree to impose agriculture tax: PM,” Dawn, 5 February 2025; “Agriculture tax,” Dawn, 5 February 2025)
EXTERNAL
Pakistan’s ambassador to UAE urges his countrymen to look for skilled professions
On 4 February, as per The Express Tribune, Niaz Tirmizi who is Pakistan’s ambassador to the UAE informed that the latter is moving towards recruiting more skilled professionals. In an interview he said “we now need to train accountants, IT professionals, bankers, AI experts, physicians, nurses and pilots for the UAE job market.” He urged that the Pakistanis must up skill themselves so that they can take the benefit of the UAE job market which is experiencing a surge in demand for skilled professionals. Further, he stated skilled professionals are paid significantly higher than the unskilled workers, thus focusing on skilled jobs would enhance “earning potential” of Pakistani nationals. He informed that the starting salary of skilled professionals is roughly AED 20,000 which is 20 times more than the starting salary of unskilled laborers. Speaking about remittances, he stated that it has surged by 53 per cent in the last six months and now amounts to USD 4.5 billion. He was confident that the annual remittance would exceed USD 9 billion by the time the current fiscal year comes to an end. (“UAE to halt work visas for unskilled Pakistani workers,” The Express Tribune, 4 February 2025)
WORLD VIEW
On the beginning of world interfaith harmony week: “global landscape remains fraught with inter-religious tensions and persecutions” says an editorial in The News International
On 5 February, an editorial in The News International titled “Elusive harmony” discussed the issues surrounding “inter-faith harmony” in Pakistan and around the world. The editorial mentioned that the first week of February is dedicated towards celebrating “World Interfaith Harmony” worldwide. The editorial noted the problems encountered in maintaining harmony among different religions and sectarian groups in Pakistan. It highlighted how sectarian divide in Kurram has resulted in the killing of more than 200 people in the region. Another problem, which the editorial pointed out is how false accusations over conduct of blasphemy has led to killing of innocent people and angry mobs destroying minority settlements. The editorial criticized PM Sharif’s statement on Word Interfaith Harmony which it claims should have been a firm stance against intolerance. The editorial also cited inter-faith tensions in other parts of the world. It alleged that Israel has been attempting to dehumanize the Palestinian population and refuses to acknowledge their right to exist as a sovereign nation. The editorial also criticizeed the right-wing parties around the world which dehumanize the minority groups especially the Muslim community. The editorial called for formulating “local solutions” in Pakistan for promoting harmony among different groups. (“Elusive harmony,” The News International, 5 February 2025)
INDIA VIEW
On the dispute over Jammu and Kashmir: “people residing in the region are unable to exercise their right to self-determination” alleges an editorial in Dawn
On 5 February, an editorial in Dawn, titled “Kashmir question” discussed Indian government’s alleged continual reluctance to solve the dispute over Jammu and Kashmir. The editorial claimed that the people of Jammu and Kashmir have been unsuccessful in their attempt to achieve their “right to self-determination” for roughly 80 years. The editorial argued that the Indian government’s decision to revoke article 370 has further exacerbated the humanitarian crisis in Jammu and Kashmir. The editorial attempted to remind the government of India that Jammu and Kashmir continues to remain “internationally disputed” despite the government’s alleged measures to change the demographics of the region. The editorial further claimed that concerns regarding the dispute over Jammu and Kashmir are not only raised by Pakistan but also by “neutral observers.” The editorial further claimed that the resolution to the dispute lies in holding the UNSC mandated plebiscite. The editorial called for looking towards temporary solutions such as one proposed by General Musharraf. The solution proposed by the former dictator had called for establishing a “soft Line of Control” so that “people and goods” from both sides can easily come and go. (“Kashmir question,” Dawn, 5 February 2025)
On Jammu and Kashmir dispute: “world must acknowledge and condemn the ongoing human rights violation in the region” argues an editorial in The News International
On 5 February, an editorial in The News International titled “Desire for freedom” discussed the alleged negligence of the international community in addressing the dispute over Jammu and Kashmir. The editorial highlighted that Pakistan has been resolute in its support for the people of Jammu and Kashmir. It observes “Kashmir Day” on 5 February every year and this has been continuing since 1990. The editorial claimed that the international community remains silent on the dispute as it prioritizes “economic and geopolitical interests.” The editorial claimed that world powers see India as a huge market for its goods and that India can counterbalance China in the South Asian region. The editorial lamented that the silence of the International community on the dispute has dwarfed Pakistan’s diplomatic urge to solve the problem. The editorial pointed out that despite the silence, Pakistan must stay committed towards the issue and continue to raise it on international platforms. The editorial claimed that the result of elections held in Jammu and Kashmir is a testimony that people have rejected the government of India’s “coercive policies.” The editorial urged the international community to call out the alleged atrocities committed by India in Jammu and Kashmir. (“Desire for freedom,” The News International, 5 February 2025)
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Writing an open letter is more credible, respectful, legal, constitutional, and in line with the principles of direct communication than sitting in cubicles and meeting.
Intazar Hussain Panjutha
- PTI
Pindi says he has not received Imran Khan's letter and is not interested in reading it, while Rana Sanaullah's position is that this letter is tantamount to separating the people and the army. Rest assured, those who are claiming not to have read the letter must have already imprinted it in their minds without reading it. Report by Indian media WION, who remembers the letter from across the border.
Waqas Mughal
- PTI
The economy has improved. Example: According to Geo News, debt increased by 8.34 trillion (8 thousand 340 billion rupees) in one year, although the government has failed to fulfill its promises made to Parliament regarding the reduction of public debt due to fiscal imbalances.
- Adnan Adil
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"What the political parties forget is that these laws can be used against them in the future."
- An opinion in Dawn, 'Spectre of authoritarianism.'
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