Lawyers and journalists call for repeal of PECA
I IMF Visit to Pakistan
In Focus
Pakistan and Azerbaijan to boost “bilateral investment”
On 24 February, as a part of his visit to Azerbaijan, PM Shehbaz Sharif held discussions with President Ilham Aliyev in Baku. Both countries agreed to expand the “bilateral investment” to USD 2 billion. PM Sharif highlighted on the inadequate current state of trade between the two countries worth USD 40 million and stated that “all the political parties in Pakistan” were on the same page when it came to enhancing ties with Azerbaijan. PM Sharif was optimistic that the agreed MoUs between the two countries would play an important role in improving the economy.
An important MoU was on cooperation in the “Machike-Thallian-Tarujanna white oil pipeline project” between the State Oil Company of Azerbaijan and Pakistan’s Frontier Works Organization and Pakistan State Oil. He also pointed out the enhancement of defence ties, with both countries agreeing to collaborate for the “manufacturing of defence equipment.” PM Sharif praised Baku’s proposal for building an “international infrastructure corridor.” He stressed the importance of the Gwadar port. Further, he spoke of a “permanent bureau” in Pakistan that would have members from both countries. The permanent bureau will make use of AI for formulating “effective mechanisms,” which would reap benefits to both countries. (“Pakistan, Azerbaijan agree to enhance bilateral investment to $2bn,” The Express Tribune, 24 February 2025; “Shehbaz, Aliyev discuss $2bn investment,” Dawn, 25 February 2025)
Lawyers and journalists call for repeal of PECA
On 24 February, journalists and lawyers called upon the government to repeal the recently amended Prevention of Electronic Crimes Amendment Act (PECA) after a consultative session. The meeting convened by the Supreme Court Bar Association also urged the government to lift restrictions imposed on independent journalists. In this regard, a unanimous resolution was adopted by lawyers and journalists to uphold the freedom of expression as it was a pillar of democracy and safeguards from any kind of force. In their discussions, both parties deliberated over the defective nature of the Peca (Amendment) Act, 2025. It noted how it infringed upon the rights of the media workforce under Article 19 of the International Covenant on Civil and Political Rights (ICCPR) and the fundamental rights guaranteed by the domestic constitution. Furthermore, some clauses were deemed ambiguous and undefined thereby making room for varying interpretations. Terms and phrases such as “any person/ individual” and the “place of occurrence” in the law remain unclear, the resolution stated. This in turn may lead to the registration of several First Information Reports at different locations regarding the same incident.
On the same day, a two-judge bench of the Sindh High Court took up the petitions that challenged the amendment to PECA. However, two respondents asked for some more time to collate comments gathered from journalists and vloggers, seeking the court’s assistance in declaring the amendment ultra vires. (Nasir Iqbal & Ishaq Tanoli, “Lawyers, journalists call on govt to repeal Peca tweaks,” Dawn, 25 February 2025; “SCBA says Peca Amendment Act 2025 defective legislation,” The News International, 25 February 2025)
IMF Visit to Pakistan: Carbon levy and PSDPs under Uraan Pakistan
On 25 February, a report in Dawn revealed that the Ministry of Planning and Development has issued a set of policy guidelines and scorecards to meet a benchmark set by the International Monetary Fund (IMF). They will be circulated through the Public Sector Development Programme over the course of three years, 2025-26, 2026-27, and 2027-28 to evaluate development projects and their financing. Furthermore, provincial projects will be excluded from the federal portfolio, while those in the 20 poorest districts in Pakistan will make an exception. Besides, the decision to continue with ongoing PSDP projects will be ranked based on key factors that align with the Uraan Pakistan. The factors include urgency and need, social impact and SDG, economic impact, environment sustainability, economic and financial return and fiscal risk among many others. In addition, projects of each sector will be assessed on the basis of technical consideration for climate change and environment and financial and economic factors in a 60:40 ratio. For social sectors, a 50:50 consideration will be made for technical and economic facets.
On 24 February, an article in The News International highlighted the background within which the IMF’s technical team has initiated discussions on Pakistan’s request for USD 1.2 to 1.5 billion in climate financing under the Resilience and Sustainability Facility. The potential of imposing a carbon levy and green taxonomy was explored in the meeting. An official source reported by The News divulged that a proposal is underway to include carbon levy with petrol levy by “jacking up the maximum limit of up to PKR 20 per litre and its collection will be utilized for green initiative-related development projects.” Furthermore, this visit comes days ahead of another IMF technical mission’s first review under the Extended Facility Fund (EFF) programme of USD seven billion. Hence, it is expected that the findings of the current team shall firm up the conditions for the first review of the EFF. (Khaleeq Kiani, “Guidelines for clearing PSDP projects issued,” Dawn, 25 February 2025; Mehtab Haider, “IMF opens talks on carbon levy, $1.5bn climate finance,” The News International, 25 February 2025)
In Brief
JUDICIARY
Political targeting of Establishment may lead to anarchy, says a Judge
On 24 February, member of the constitutional bench, Justice Azhar Rizvi expressed unease over the trend in political parties targeting the military instead of other police stations, leaders or the Governor House for its grievances. This could lead to a state of anarchy towards the state, he opined. These statements came as the bench resumed hearing the intra-court appeals against the Supreme Court’s 23 October 2023 decision which declared the abolishment of civilians involved in the 9 May violence, in military courts. In this regard, Justice Aminuddin Khan observed that the parliament cast the duty of trying the accused in military courts however, an impression has been created in which armed personnel take up such cases by themselves. On the contrary, Justice Muhammad Ali Mazhar stated how the military asked the National Assembly to take the accused into custody. (Nasir Iqbal, “Tendency to target military may lead to anarchy: SC Justice Rizvi,” Dawn, 25 February 2025)
ECONOMY
Government to make PKR 1.5 savings in future payments from IPPs
On 24 February, a presentation by a power division team before the Senate Standing Committee on Power revealed that the government has secured PKR 1.571 trillion in savings in future payments from 27 independent power producers (IPPs). Savings determined via negotiations will be transferred to the consumers via alterations in tariffs and agreements during the contract period. The power division team consisting of Power Minister, Ahmed Leghari and two others provided a breakup of the savings where PKR 411 billion was secured via the termination of contracts with five IPPs. On the other hand, PKR 238 billion and PKR 922 billion were acquired via the revision of tariff contracts with bagasse and thermal plants, respectively. Furthermore, the committee was apprised that discussions with 45 public sector power plants are underway, to determine more savings. Separately, the team was questioned over why forensic audits had not been conducted as IPPS profited billions and trillions in payments from the government. To this team member, Special Assistant to the Prime Minister Muhammad Ali, stated that in the past Pakistan lacked the right expertise to carry out a forensic audit of 50-60 plants and that it also demanded a lot of money. He reflected on how back in 2020 his committee had asked for PKR 22 million to conduct an audit however, the request was rejected. But now, a forensic examination of IPPS that refused to negotiate on tariff revisions is being performed, he added. (Khaleeq Kiani, “Govt claims saving Rs1.5tr by revisiting IPP contracts,” Dawn, 25 February 2025)
On power sector inefficiencies: “Do the consumers have it in them to bear the cost of the government’s flawed policymaking, and the inefficiencies and corruption of the power distribution firms?” questions an editorial in Dawn
On 25 February, an editorial titled “Bearing the brunt,” in Dawn highlighted the government’s “talks” with IPPs to slash tariff prices in a “big way” by reducing capacity payments. However, matters may be going the other way round as the consumers may end up paying an extra price as the government seeks to partially liquidate power sector’s circular debt that is crossing nearly PKR 2.40 trillion. Citing media reports, the editorial stated that the government is planning to obtain loans from banks to reduce the debt by PKR 1.24 trillion. However, the brunt of interest payments may fall on the consumers under the guise of debt-servicing surcharge. Despite a reduction in interest rates since June 2024, at 12 per cent, the editorial remarked that “authorities believe they can borrow money at lower rates” and make the consumers pay it back to the banks. However, irrespective of the reduced borrowing rates, it is a strategy that will punish consumers for the “government’s bad policies and the losses” incurred by the distribution companies’ “uncontrolled system” of “losses and theft.” In this regard, the editorial suggested the reason behind this. It said: “It seems that the authorities are in a hurry to close the deal with the banks because of the upcoming IMF review of its funding programme.” If this was the case, then it raises the question of whether the means justify the ends. (“Bearing the brunt,” Dawn, 25 February 2025)
ENERGY
LNG imports pose a threat to domestic pipelines, The News reports
On 24 February, a Senate Standing committee was apprised of the shutdown of Pakistan’s gas fields as an LNG agreement with Qatar is straining the existing pipeline infrastructure. The meeting was informed of how Pakistan imports 10 LNG cargoes from Qatar every month, thereby obstructing local gas production. Furthermore, there is a growing risk as the pipelines further deteriorate and rupture. This is compounded by inadequate storage facilities that worsen supply management. In addition, delays have been noted in the Iran-Pakistan gas pipeline due to restrictions in the development project. (“Pakistan’s LNG imports threaten local gas fields,” The News International, 25 February 2025)
SOEs on the brink of default, reports The News
On 25 February, a report in The News International discussed the recent annual report of the State Owned Enterprises of Pakistan. It projected a growth in liabilities by six per cent, at PKR 8,914 billion in fiscal 2024 along with a negative equity of PKR 915, 879 million or 13 percent despite a five per cent increase in assets compared to fiscal 2023. Taking these indicators into consideration, this domain calls for immediate structural reformation. Additionally, the power sector’s indebtedness remains considerably high as the debt-to-equity ratio stands at 974 per cent when the ideal ratio ranges between 100 per cent and 300 per cent. This in turn raises concerns regarding the power sector’s solvency. It not only impedes fiscal flexibility but also raises borrowing costs which has a significant impact on the interest payments. Besides, improvements in fiscal flows and contributions were recorded in terms of tax revenues as collection increased by 22 per cent, net financial flows as it indicated a 55 per cent improvement. Additionally, the government’s financial consolidation efforts were reflected in the 18 per cent reduction in subsidies and a 67 per cent decline in equity injections. Furthermore, a reduction was recorded in the operating losses and net losses however, it was by a minimal rate. (Khalid Waleed, “Power sector on the brink,” The News International, 25 February 2025)
MEDIA
Pakistan Telecom Authority authorizes two firms for imparting VPN services to commercial entities
On 25 February, Dawn reported on Pakistan Telecom Authority (PTA) imparting licenses to two firms that would give Virtual Private Network (VPN) service. The VPN service could only be availed by businesses and commercial entities. The use of VPN by the common public remains “unlawful.” The banning of X in 2024 escalated the demand for VPNs. The federal government has thereafter put in efforts to block the “use of VPN” by the common public. A senior member of PTA had informed Dawn, that VPNs cannot be banned legally. In addition to that PTA did not have “technical expertise” to ban all existing VPNs. Head of Pakistan Software Houses Association(P@SHA), Sajjad Mustafa Syed praised the move of the PTA and stated that it was a “welcoming step.” He further stated how it would benefit close to 25 lakh freelancers in Pakistan. However, the chief of P@SHA did not comment on how it would facilitate the freelancers as the VPN services would only be given to commercial entities. (Kalbe Ali, “PTA grants license to two companies for VPN services,” Dawn, 25 February 2025)
SECURITY
13 terrorists killed in KP; bomb blast in Balochistan injures six security personnel
On 24 February, a check-post in North Waziristan came under attack from terrorists. Security forces responded by opening backfire on the terrorists. The attack resulted in the killing of four security personnel. As per the sources of Dawn, three terrorists were also neutralized. Inter-Services Public Relations did not release any “official statement” on the attack. Separately, on the same day, security forces in Khyber managed to neutralize ten militants in an intelligence-based operation.
On the same day, a “truck convoy” that was providing security to the “copper project” in Kalat came under attack. The trucks were fetching “blaster copper” to Karachi and the attack took place on the Quetta-Karachi National Highway. Bombs were placed in front of the National Database and Registration Authority (NADRA) office located on the highway. The blast wounded six security personnel.
Separately, on the same day, an unidentified gunman shot four in Hub, Balochistan. Another murder took place in Kalat where unidentified attackers killed a man. (“Four security men martyred in North Waziristan post attack,” Dawn, 25 February 2025; Saleem Shahid, “Six security men among eight injured in Kalat attack,” Dawn, 25 February 2025; Abdul Wahid Shahwani, “Four people shot dead in Hub, Kalat,” Dawn, 25 February 2025)
AF PAK
On Afghan refugees residing in Pakistan: “Sending back refugees who worked for the former West-backed Afghan administration is akin to a death sentence” says an editorial in Dawn
On 25 February, an editorial in Dawn titled “Afghan resettlement” discussed the decision taken by the new US administration regarding resettlement of Afghans in the US. The editorial highlights the grim future of the Afghan citizens who are being denied by the Trump administration to enter the US. Previously, some of the Afghan citizens were granted permission to settle in the US. The editorial points out the ramifications on Pakistan of the decision taken by the US. Pakistan has been giving refuge to Afghan nationals for more than 50 years. To add on the distress of Afghan refugees, Deputy PM and Foreign Minister Ishaq Dar has stated that the refugees present in Pakistan who are not being allowed to enter the US would be deported to their “country of origin.” The editorial highlights how sending back refugees, who previously assisted the US forces, to Taliban-governed Afghanistan is like a death penalty for them. The Taliban government views the Afghans who assisted the US and its allies as “traitors.” On the other hand, Pakistan too, does not have the financial capacity to look after the refugees. The editorial claims that it is the moral responsibility of the US to take in the refugees. (“Afghan resettlement,” Dawn, 25 February 2025)
EXTERNAL
Arrival of Africa-1 submarine cable in Karachi brings positivity among businessmen
On 25 February, The News International reported on the arrival of “Africe-1 submarine cable” in Karachi. As per the Chairman of Wireless and Internet Service Providers Association of Pakistan (WISPAP), it would improve the “digital infrastructure” of the country. He also stated that the development would help in countering Pakistan’s bandwidth issue. The new cable will connect Pakistan to important markets such as “Saudi Arabia, UAE, Sudan, Algeria, France, Kenya and Djibouti.” The businessmen of Pakistan are optimistic that the new cable would enhance the country's “digital vision” and would generate “new opportunities” for development in technology. The enhancement in bandwidth is anticipated to bring a surge in “business operations,” and would significantly enhance “user experience.” The new cable is set to come into play from 2026. The enhancement in digital connectivity is anticipated to lure investment from foreign countries in Pakistan’s “IT and telecom” industries that would give a boost to the economy. (“Pakistan strengthens global connectivity with Africa-1 submarine cable: Wispap,” The News International, 25 February 2025)
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Everyone destroyed you for their own interests, My country needs you, Imran!
- PTI Islamabad
Our Armed Forces are the backbone of Pakistan.
- PMLN
It is not the agenda of any political party to discuss the problems faced by the people, education, women's rights, the widespread drug addiction in educational institutions and other such issues.
- Jamaat-e-Islami Pakistan
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"Recent moves simply reveal the attitude of all governments towards education."
An opinion in Dawn, 'Education under attack'
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