The debate over Canals and Resources continues I The Debate over Increase in Remittances
In Focus
Constitutional bench finds nothing unconstitutional in military trials
On 15 April, Justice Muhammad Ali Mazhar who is in the constitutional bench of Supreme Court informed that the court did not find anything which went against the constitution in the “military court trials.” These trials were against those found guilty of the 9 May 2024 riots/violence. The constitutional bench which had seven judges in total had received petitions which were directed by “federal and provincial government, Shubda forum against the October 2023 decision.” (Nasir Iqbal, “No evidence of malice in military trial of civilians, Constitutional Bench notes,” Dawn, 16 April 2025)
The debate over Canals and Resources continues
On April 15, Sindh’s Irrigation Department remonstrated against the opening of the Taunsa Panjnad link canal by Punjab’s Irrigation Department despite a long-standing water scarcity in the Indus. 2,981 cusecs of water flow were reported in the link canal, indicating diversions of flows to the Jhelum Chenab. It warned that it could worsen water shortage in Sindh’s barrages. In his message, Sindh’s Irrigation direction regulations to the Indus River System Authority director reminded him of the existing water scarcity in the province as the river flows that normally enhance flows in the Indus at Tarbela and Nowshera were 21 and 23 per cent less, respectively. Whereas the Jhelum river witnessed inflows that exceeded the minimum flows by 20 per cent. In fact water available in the Jhelum Chenab system was far higher in the Indus in the beginning of April. Hence, water release to Panjnad must be carried out according to river inflow patterns and not by starting the operation of link canals. Separately, Pakistan People’s Party Senator Sherry Rehman deemed the unilateral move of opening the Taunsa-Panjnad Link Canal as “highly irresponsible.” She lambasted how it threatened inter-provincial harmony and demanded the canal's immediate closure and the convening of a Council of Common Interests meeting at the earliest.
On 16 April, an editorial titled “Water dispute” in Dawn discussed the political ramifications of the Cholistan canals project has on the ongoing ruling coalition. The Pakistan Muslim League (N) government’s Green Pakistan Initiative has come under fire with its coalition partner and ruling party of Sindh PPP. The PPP has threatened to withdraw its support from the government if the canal project is not withdrawn. While the Punjab government claims that Sindh is “eating into” its share of water from the Indus River system and the system has been “cheated.” The editorial forecasted this to take an “ugly” turn and potentially motivate “ethno-nationalist tensions.” To allay the dispute, a Council of Common Interests must be convened for the fair allocation to the respective provinces, especially in the drought-like situation prevailing as it will directly impact agricultural output across parts of Pakistan.
Another editorial titled “Resource talk,” in The News International discussed the importance of delicately dealing with provincial issues, especially those linked to resources. Narratives surrounding provincial autonomy and resources have gained traction in Pakistan due to the six-canals project on the Indus. The 18th Amendment may have granted greater autonomy to the provinces, but governance challenges continue to exist between the provincial government and the federation. The federation’s economic development priorities, as seen in Sindh and Balochistan have impeded the realization of provincial rights. Hence, the editorial called for transparent, inclusive, and equitable decision-making regarding resource management. (Mohammad Hussain Khan, “Sindh cries foul after Punjab opens link canal,” Dawn, 16 April 2025; “Water dispute,” Dawn, 16 April 2025; “Resource talk,” The News International, 16 April 2025)
On increased remittance inflows:
“Pakistan has to focus on course correction if it is serious about becoming a prosperous, economically strong country,” argues an editorial in The News International
On 16 April, an editorial titled “Improved outlook,” in Dawn indicated contentment with the recent tally of remittance inflows into Pakistan. A near record of USD 4.1 billion has broken the USD three billion per month streak from July to February. 37 per cent annual increase in March has driven the State Bank to expect USD 38 billion in remittances, up from previous projections of USD 35 billion in 2025. The editorial attributed this growth to the increase in immigration of tech professionals to the Gulf, Ramzan and Eid, and the stable exchange rate among other factors. These flows are important to Pakistan as they support the current account and have a tendency to override the trade deficit. It also bridges the availability of finances as “foreign official and private capital inflows dry up.” However, Pakistan also owes its stable outlook to the Fitch Ratings upgradation from CCC+ to B-. This will help Pakistan gain more access to foreign debt markets, raise funds from bond markets and attract investors.
On the other hand, an editorial titled “Surprising increase” in The News International remained doubtful of the high remittance inflow. The policymakers ought to stop depending on such inflows as they are temporary. Income sources must be diversified to overcome dependency on inflows to fix the economy. Instead of relaxing, the government must work towards making Pakistan an export-oriented state from an import-dependent one. The rise in remittances may imply that Pakistanis are availing better job opportunities abroad. However, a significant amount of it is being used for basic consumption in Pakistan instead of productive activity. It is a consequence of high inflation levels and rising cost of living. Hence, “short-term gains like a rise in remittances would not mean much” for the economy. (“Improved outlook,” Dawn, 16 April 2025; “Surprising increase,” The News International, 16 April 2025)
In Brief
POLITICS & GOVERNANCE
Imran Khan dismisses speculations of a backdoor agreement with the establishment
On 16 April, The News International reported that PTI supremo Imran Khan who is currently lodged in Adiala Jail, Rawalpindi has dismissed any sort of talks with the establishment for a “settlement.” There have been speculations that backchannel talks have been going on for an understanding between the two sides. As per PTI Chairman Barrister Gohar Khan, Imran Khan said “there is no deal. I have not authorized anyone to negotiate on my behalf.” Further, he stated that all the speculations regarding a “deal” between Khan and the establishment is utterly “false.” Further, the PTI Chairman alleged that there is a “conspiracy” to create a divide among Imran Khan’s family members. He pointed out how his wife Bushra Bibi is being allowed to see Imran Khan whereas his sisters are not. Imran Khan had also instructed the leaders in his party to not publicly speak against each other. In addition to that, Imran Khan has advocated for giving more time to “Afghan refugees” who are settled in Pakistan to go back to their country. (Mumtaz Alvi, “Imran denies secret talks for release,” The News International, 16 April 2025)
PM Sharif introduces incentives to wheedle expatriates
On 15 April, Prime Minister Shehbaz Sharif announced the revival of the Green channel facility while addressing the Overseas Pakistanis Convention attended by Pakistani expatriates. The Green Channel initiative is a programme aimed at facilitating “smooth” customs and immigration procedures for Pakistani nationals abroad. He also announced the setting up of special courts in all provinces to expedite the disposal of cases linked to overseas Pakistanis. He added that digital modalities will be like video link facilities and e-filing of cases will be introduced to enhance convenience for overseas nationals. Separately, while addressing the occasion, Chief of Army Gen Asim Munir praised the expatriates for contributing to the country. He censured those who pushed the narrative of a brain drain. He said: “This is not a brain drain but a brain gain, and the overseas Pakistanis are the finest example of that.” (Syed Irfan Raza, “PM Shehbaz showers incentives to entice expats,” Dawn, 16 April 2025)
Federal government all set to dispense 260 “development projects”
On 16 April, The News International reported that the federal government will terminate close to 24 per cent “development projects” in the financial year 2024-25. These development projects are valued at “billions of rupees.” The Public Sector Development Programme (PSDP) is yet to complete 1092 projects that would need “trillions of rupees.” The Ministry of Planning has formulated some benchmarks for terminating 260 of the development projects. The Minister for Planning Ahsan Iqbal stated that for the financial year 2024-25, roughly PKR 1000 billion could be used. He further informed that there would be an increase in the use of PSDP funds in the “period” between April to June. The numbers however paint a different picture. Up until July 2024 to February 2025 only PKR 631 billion has been “authorized” and only 312.3 billion has been used. (Mehtab Haider, “24% uplift projects being dropped,” The News International, 16 April 2025)
ECONOMY
Petroleum levy law amended to maintain prices
On 16 April, according to Dawn, the government amended the Petroleum Products (Petroleum Levy) Ordinance 1961 to curb a reduction of PKR 10 per litre on major petroleum products. The rationale is to maintain the maximum permissible petroleum levy on high-octane blending component and high-speed diesel despite a fall in petroleum prices in the global markets in the last two weeks. The government also seeks to reduce the demand for petroleum which could result in higher carbon emissions and costs of foreign exchange. Hence, the amendment to the petroleum levy law has resulted in a PKR 80 per litre increase. The funds raised will be directed toward road construction in Balochistan and Sindh as the Pakistan Muslim League (N) seeks to maintain political support from its coalition partners. (Khaleeq Kiani, “Fuel price relief ‘denied’ as govt raises levy to PKR 80,” Dawn, 16 April 2025)
Funds raised from petroleum levy to be diverted to Balochistan projects: PM Sharif
On 15 April, Prime Minister Shehbaz Sharif announced a diversion of funds raised from oil prices despite its price reduction in international markets to Balochistan. It will be utilized for the reconstruction of the N-25 Highway and completion of the Kacchi Canal Project’s Phase II. While addressing a federal cabinet meeting, he stated the need to address disparities. He promoted the transformation of the N-25 from a “highway of tragedy to a high of prosperity” as “Balochistan has waited for too long.” It is infamously known as the “deadly road” connecting Karachi to Chaman as more than 2,000 people have died due to its poor conditions and single-lane infrastructure. In this regard, the PM announced PKR 300 billion for the project’s reconstruction. The same funds will also be utilized to complete Phase-II of the PKR 70 billion Kacchi Canal. “If completed, this project will irrigate vast area of Balochistan’s arid land. It can transform agriculture, improve livelihoods, and address food security” he claimed. (Syed Irfan Raza, “Savings from lower oil prices diverted to Balochistan projects,” Dawn, 16 April 2025)
EXTERNAL
Dead bodies of murdered Pakistani laborers in Iran yet to arrive
On 16 April, it is anticipated that the dead bodies of the eight Pakistani laborers who were slaughtered in Sistan-Baluchestan, Iran would arrive in the country. The eight laborers who were killed, all hailed from Bahawalpur, Punjab. The laborers were first “tied down” and then an unknown militant “shot” them. The laborers were employed in the mechanical workshop for close to five years. The dead bodies have been given to the “consul general of Pakistan” who would send them back to Pakistan. (Saleem Shahid, “Bodies of Pakistanis killed in Iran expected to reach today,” Dawn, 16 April 2025)
On growing bilateral ties between Turkiye and Pakistan: “recent development in relations will not only benefit both nations but add to the stability and prosperity of local economies” says an opinion in The News International
On 16 April, an opinion in The News International written by Turkey’s minister of energy and natural resources discussed the growing partnership between Turkey and Pakistan. The Minister highlighted how the two countries have long standing cultural and economic relations. He reminds about the visit of President HE Recep Tayyip Erdogan to Pakistan in February. During the visit, the Minister met PM Sharif and inked an MoU. As per the MoU, Turkish Petroleum would collaborate with oil firms of Pakistan to place “bids” in “Indus offshore basin.” He highlights how the excavation of "critical minerals" have become extremely crucial in today’s era. Further, he highlighted how the two countries have been partnered for developing expertise in “critical minerals.” He also shed light on how reforms which were carried out in Turkey has led to more than “USD 100 billion of investments.” The Minister opines that Pakistan is also on the path towards a “similar reform” and that Turkey is willing to assist Pakistan. (Alparslan Bayraktar, “Turkiye-Pakistan energy ties,” The News International, 16 April 2025)
WORLDVIEW
On Iran-US engagement “while developments are positive, no one should be under the illusion that the US-Iran stand-off has ended” says an editorial in Dawn
On 16 April, an editorial in Dawn titled “A positive start” discussed the recent “indirect talks” held between Steve Witkoff, who is US President Donald Trump’s special envoy and Foreign Minister of Iran, Abbas Araghchi in Muscat. The editorial mentions that the two also met separately. The editorial warns that the meeting should not be seen as the end in the existing rift between US and Iran, given the dubious “nature of US President Donald Trump. According to the editorial, it is extremely improbable that Iran would pay heed to the US demands. The editorial, however, notes that Iran might consider putting reasonable restrictions on its nuclear programme if the US, in return, waives off certain economic sanctions. The editorial highlights how economic sanctions have broken the backbone of the economy in Iran. The editorial also claims that Israel is not happy with the meeting in Muscat. The editorial warns that if the US decides to attack Iran, it would be devastating for the entire region. (“A positive start,” Dawn, 16 April 2025)
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Sardar Ramesh Singh Arora first proposed the Kartarpur Corridor in 2013 at the Capital Talks. At that time, permission was not given to start the project. In 2018, Imran Khan laid the foundation stone of the project. Arora gives credit to Imran Khan, but considers Nawaz Sharif to be the founder of the project.
- Hamid Mir
Until the nation unites and stands against evil, this country cannot move forward!
- PTI
Half of Pakistan is living below the poverty line, 2.5 million youth do not have jobs every year, the question is whether the economic indicators have been good for the people?
Mustafa Nawaz Khokhar
- Nadeem Malik
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"Why does Karachi, despite being Pakistan’s financial hub, lack most of the attributes of great cities?."
- An opinion in Dawn, 'Lamenting a glorious city.’
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