|
In Focus
Vaccine workers request police security amidst rising assaults
On 29 September, Dawn reported that health workers engaged in the national vaccination campaign have requested police protection following two recent assaults on HPV vaccination teams. On 27 September, a team of female health workers was assaulted at a non-formal education school in the village of Ratuwal while administering the Human Papillomavirus (HPV) vaccines to prevent cervical cancer. A similar attack had occurred two days prior in Mandi Bahauddin’s Chak No. 38. In the latest event, an attempted assault was directed at health supervisor Shamim Anjum. “The sudden attack caused a stampede in the school, and the vaccination process had to be stopped immediately,” a police officer stated. “The assurance of security given by the provincial health minister on the first incident of September 25 has not been fulfilled yet, and no practical action has been taken by the police,” stated Ms Anjum. Following the incident in Mandi Bahauddin, Punjab’s Provincial Health Minister, Khawaja Imran Nazeer, issued instructions to provide security to the health workers. However, the order was reportedly not implemented. Mandi Bahauddin’s Chief Executive Officer of Health declined to comment. “Vaccine hesitancy driven by misinformation, safety concerns, and a mistrust of authorities” are the key motivators of the public hostility, says Dawn. (“Vaccinators in fear after second attack on HPV team,” Dawn, 29 September 2025)
Aptma calls the government’s proposal to expand generation capacity by 50 per cent unrealistic; warns of “high-cost power,” and says demand forecasting methodology is flawed
On 29 September, Dawn reported that the All Pakistan Textile Mills Association (Aptma), the country’s largest export body, raised serious objections to the National Electric Power Regulatory Authority’s (Nepra) Indicative Generation Capacity Expansion Plan (IGCEP 2025-35), which proposes expanding generation capacity by 50 per cent to 64,000 MW. Aptma described the plan as unrealistic, as it would require around USD 50 billion and risk locking Pakistan into “high-cost power.”
The association argued that IGCEP’s demand forecast relies on a fundamentally flawed regression model linking grid consumption to GDP and population growth. Aptma noted that this approach fails to account for substitution effects from captive power, rooftop solar, or other non-grid sources, leading to “a systematic overestimation of future grid demand.” It added: “This upward bias encourages excessive generation additions, which in turn produce inflated capacity payments, stranded assets, and heightened financial stress in the system.”
The association warned that these demand forecasts underpin tariff determinations and planning codes, making the entire framework unreliable. It stressed that capacity payments have risen unsustainably, from PKR two per unit to PKR 17.06 per unit in a decade, consuming more than half of the consumer tariff and cumulatively exceeding PKR six trillion. “If the foundation is faulty, the entire edifice of planning collapses,” Aptma added.
In the backdrop of demand stagnation, industrial consumption falling by four per cent and agricultural use dropping by one-third, Aptma stated affordability to be made the central organising principle of energy planning and demanded a ceiling of PKR five per unit before new capacity is added. (Khaleeq Kiani, “All Pakistan Textile Mills Association slams ‘unrealistic’ plan of power generation,” Dawn, 29 September 2025)
Trade and travel through Kunjerab Pass resumes after 68-day sit-in; Gilgit-Baltistan traders win tax exemption capped at PKR four billion annually
On 29 September, Dawn reported that trade and travel between Pakistan and China through the Kunjerab pass had resumed after the 68-day sit-in by traders, blocking the Karakoram Highway (KKH), was resolved through an agreement with the federal government on 27 September. The traders of Gilgit-Baltistan (GB) had been staging protests to pressure the authorities to exempt GB people from paying sales tax, income tax, and other federal taxes on imported items from China through the Khunjerab Pass, the clearance of stuck consignments at Sost Dry Port, and the withdrawal of cases. The GB traders' representatives included GB Supreme Council Chairman Ashfaq Ahmed and the committee formed by Prime Minister Shehbaz Sharif to address concerns. The government representatives included the PM’s committee, headed by Federal Minister for Energy Awais Leghari, several federal ministers, and representatives from the NLC and FBR, besides security agencies.
The week-long negotiations culminated in a deal exempting the people of GB from sales tax, income tax, and federal excise duty items imported from China through the Khunjerab Pass for local consumption. The exemptions will be capped at PKR four billion annually and reviewed every two years. The agreement also stipulates that any attempt to smuggle exempted goods outside GB will lead to partial or complete withdrawal of the concession. Tribunal orders on pending consignments at the Sost Dry Port will also be expedited, as the terminal operator considers waivers on demurrage and port charges. Customs will continue to enforce compliance at Sost as it does at other ports.
GB Supreme Council members announced that Gilgit-Baltistan had been declared a non-tariff area. Ashfaq Ahmed, GB Supreme Council Chairman and the President of the Gilgit Chamber of Commerce, stated that the protests were a success, achieved by unity among GB’s political, social, and business leadership. Kamran Ghazi, from the negotiating team, outlined the four-point agenda pursued in Islamabad: tax exemptions, amnesty for stuck consignments, establishment of export facilities, and allocation of funds for border area development. He stated that the federal government had agreed to allocate a portion of the collections for Gojal through the federal finance division, to be reflected in the GB budget. (“Trade, travel via Khunjerab Pass resume after over two months,” Dawn, 25 September 2025)
In Brief
ECONOMY
Pakistan's debt crisis deepens amid record borrowing
On 29 September, The News International reported on Pakistan's public debt surging to a record PKR 80.5 trillion by June 2025, up PKR 9.3 trillion from the previous fiscal year. This rapid accumulation equates to an average of PKR 25.4 billion added daily, pushing the debt-to-GDP ratio to 70.2 per cent, well above statutory limits. Interest payments now consume over half of federal expenditures, leaving limited funds for development or social protection. Development spending dwindled to just 11 per cent of the budget, down from over 20 per cent two decades ago. The Public Sector Development Programme (PSDP) was initially set at PKR 1.4 trillion but was repeatedly cut, with actual spending falling to PKR 905 billion. In the first two months of the current fiscal year, only PKR 5.3 billion was spent, barely 0.5 per cent of the PKR one trillion allocation. The situation is further exacerbated by recent floods, with preliminary losses estimated at PKR 500 billion. The government's ability to respond is constrained by the existing debt burden and limited fiscal space. Growth projections have been revised down to zero to one per cent, against a budgeted 4.2 per cent and an IMF target of 3.5 per cent. (Furqan Ali And Arfa Ijaz, “Kafkaesque debt spiral,” The News International, 29 September 2025)
EXTERNAL
Pakistan offers Turkiye 1,000 acres of land, free of cost, in the Karachi Industrial Park to establish an Export Processing Zone (EPZ)
On 29 September, The News International reported that Pakistan offered Turkiye 1,000 acres of land, free of cost, in the Karachi Industrial Park to establish a dedicated Export Processing Zone (EPZ). The initiative, first proposed by PM Shehbaz Sharif to President Recep Tayyip Erdogan in April 2025, is intended to promote Turkish investment in Pakistan’s manufacturing and export sectors and advance bilateral trade toward the USD five billion target. A high-level Pakistani delegation, including officials from the Foreign Office, Special Investment Facilitation Council, Board of Investment, and Sindh EPZ Authority, recently concluded a two-day visit to Istanbul and Ankara. “Pakistan invited Turkish authorities to visit the Karachi Industrial Park, where the 1,000 acres have been exclusively reserved for Turkiye. They are expected to visit soon,” a senior official stated. The delegation highlighted Karachi’s strategic location, existing infrastructure, and access to Middle Eastern and Central Asian markets. Officials stated that the relocation of Turkish could reduce freight costs significantly from USD 4,000 to just USD 1,000 per ton. Bilateral trade between the two countries reached a record USD 1.4 billion in 2024, a 30 per cent increase from 2023. With plans to expand the Preferential Trade Agreement and move toward a Free Trade Agreement, the Karachi EPZ is seen as a potential game-changer in Pakistan-Turkiye industrial cooperation. (Khalid Mustafa, “Pakistan offers Turkiye 1,000 acres to set up Export Processing Zone,” The News International, 29 September 2025)
|
