Frankly Speaking: What challenges face Pakistan’s new PM?

This screengrab, taken on March 10, 2024, shows Dr. Ali Awadh Asseri, former Saudi ambassador to Lebanon and Pakistan, speaking during an interview on Frankly Speaking with Arab News. (AN Photo)
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Updated 11 March 2024
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Frankly Speaking: What challenges face Pakistan’s new PM?

  • Ex-Saudi ambassador says “experience, patriotism, wide acceptability” of Shehbaz Sharif makes him optimistic about Pakistan
  • Dr. Ali Awadh Asseri hopes “love and affection” in already strong Saudi-Pakistan relationship will translate into good economy

DUBAI: A veteran Saudi diplomat and keen observer of Pakistani politics says that what he sees today makes him “very optimistic” about the country’s future under the leadership of Shehbaz Sharif, the new prime minister.

Appearing on “Frankly Speaking,” the weekly Arab News current affairs show, Dr. Ali Awadh Asseri also expressed hope that the 2024 election outcome would cement the already strong relationship between Pakistan and Saudi Arabia.

Sharif was elected Pakistan’s prime minister for the second time on March 3 after securing 201 votes in the newly formed parliament. Elections were held last month amid runaway inflation, high unemployment, energy shortages and a rise in the cost of essential items.

“Shehbaz Sharif is a very well-experienced individual who was chief minister of the Punjab, which is the biggest province in Pakistan. So, he has the experience and also he seems to have selected so far a really good professional team,” said Asseri, who served as Saudi Arabia’s ambassador to Pakistan from 2001 to 2009.

Guiding Pakistan through its economic woes will be no easy task. The country is saddled with more than $270 billion in foreign and domestic debts, according to a February report by the Islamabad-based think tank Tabadlab.

Compounding Pakistan’s woes were a series of floods in 2022, which the World Bank estimated resulted in more than $30 billion in damage and economic losses from which the country has yet to recover.

Asseri considers Sharif the best politician to lead Pakistan under the circumstances because of “his experience, his patriotism, his loyalty to his country and his acceptance to most people.

“I would say for the time being, what I know of his experience, Sharif’s personality, his loyalty to his country, this leads me to always repeat my optimism and prayers for them to succeed,” he told Katie Jensen, the host of “Frankly Speaking.”

He added: “Pakistan, hopefully, will pick up and deal with its own economy. I think that was the slogan during the election.”

Sharif has ordered an immediate launch of talks with the IMF regarding an Extended Fund Facility program that would provide financial assistance and a longer repayment period.

The IMF has provided 22 loans to Pakistan since the inception of the country, which avoided defaulting on loan repayments and secured a $3 billion Stand-by Arrangement loan from the fund last year.

“I think Pakistan will get help from the IMF. The government is a credible government, a professional government, so I think their bargaining with the IMF will not be as difficult as it has been in the past without a government,” Asseri said.

“They are experienced; they know what to do. ... What I see is great progress in the selection of professional ministers. Relevance is very important when you put a minister in the seat. Hopefully, everything will be better than it is today.”

Asseri highlighted the need for Sharif to take a multifaceted approach to economic recovery, including enhanced exploitation of resources, industrialization and development of strong international trade and investment.

“There are a lot of resources in Pakistan that have not been touched at all. (For instance), manufacturing. One of the best industrial cities I have seen is called Sialkot, where the FIFA football is produced,” Asseri said.

“They have products. They have surgical equipment. So, if they could focus on those and upgrade those factors, then attract investment, whether from Saudi Arabia or the GCC countries, that would help a great deal.”

Sharif’s re-election came after years of political turmoil, which began in 2022 when Imran Khan was removed from office and jailed on corruption charges. That year, Pakistan Muslim League Nawaz — headed by Nawaz Sharif, a former prime minister — joined forces with the Pakistan People’s Party to oust Khan as prime minister and install Shehbaz Sharif as his successor.

Khan and his followers say the people’s mandate was stolen in the Feb. 8 election. Candidates backed by him did remarkably well, securing about 93 seats, even though he was hit by a number of criminal charges and disqualified from holding any kind of public office.

Asked if the elections were fair and transparent, Asseri said: “I spent nine years in Pakistan and every election you would have the same slogan from the opposition. The point here is, who’s going to help Pakistan?

“Obviously, the opposition will always have something to say against the government, whether it’s Imran Khan or all the others.”

Asseri believes fighting corruption and building good governance are necessary to restore the trust of the Pakistani people in their leaders and officials.

A Gallup survey conducted last month revealed that about 70 percent of Pakistanis are mistrustful of their country’s elections, with 88 percent of the population believing that corruption is widespread in Pakistan.

“I think the governance in the past was not as good and professional as it should have been,” he said.

“The Pakistani people know exactly what can help them to pick up their economy. Their currency has lost a lot of value in the last three or four years. The answer (to these problems) is to have good governance and what we see today leads me to be very optimistic.”

Asseri also expressed hope that the election outcome will bring about an even stronger relationship between Pakistan and Saudi Arabia — one previously cemented and continuously strengthened by a shared faith.

“With Pakistan, the (foundation) of the relationship is our strong (faith). And Pakistanis are a very conservative Muslim society,” he said.

Recalling a time when one of the imams of the Grand Mosque in Makkah visited Pakistan, “500,000 people prayed behind him, even outside the mosque in Islamabad,” Asseri said: “That should reflect their love and affection toward the holy places and toward Saudi Arabia.”

He added: “Saudi Arabia and Pakistan really enjoy a great relationship, ever since before even Pakistan was Pakistan, since 1943. King Abdulaziz and his sons went to Karachi when they had floods to help Pakistan. And their relationship grows with every leadership: It’s a people-to-people relationship.”

During the devastating 2022 floods, Saudi Arabia’s King Salman Humanitarian Aid and Relief Center sent large quantities of aid, by air, to the worst-hit regions in Pakistan.

As heavy rainfall this week causes catastrophic floods in Pakistan’s southwest, KSrelief has once again arranged for humanitarian aid deliveries — consisting of 873 tons of aid including 9,000 food packages and 9,000 shelter kits — to support more than 63,000 flood victims.

“Saudi Arabia has never let Pakistan down in its time of need,” Asseri said, noting that Crown Prince Mohammed bin Salman has visited Pakistan several times “because he knows how important Pakistan is and how important our relationship is.”

Going forward, the Saudi-Pakistan relationship may bring great economic benefits to both countries, he said.

Referring to the Saudi sovereign wealth fund, he said: “We have the Public Investment Fund. It could really go to Pakistan and invest in great factories and upgrade them to produce more.

“There are many areas now with the leadership, the dynamic Saudi leadership we have, and the strategy, the economic strategy that we have. I think we can help Pakistan more and they will help themselves also.”

Asked what advice he would give to Sharif from a Saudi perspective, Asseri was forthright: “Look into the economy to find the corruption. Try to upgrade the industrial cities because they have really good materials. Attract investment from everywhere. The economy is the answer to help Pakistanis and Pakistan.”

Asseri also reflected on the longtime animosity between Pakistan and its neighbor, India. Previously, he has written about the potential benefits of cooperation between the two countries. Now, he says, improved relations are still possible.

“What is needed is to reduce the tension between the two countries to allow — because there are families in Pakistan, families in India, who are relatives. (What is needed is to) ease access and travel between Pakistan and India, to ease business deals between Pakistan and India.

“This would, hopefully, lead to a very constructive discussion between both countries, and, ultimately, hopefully, would lead to peace and stability in both countries.”

Asseri has “no doubt” that Saudi Arabia and the UAE could play a pivotal role in mediating relations between Pakistan and India.

Both Saudi Arabia and the UAE “enjoy a very good relationship with both countries, India and Pakistan,” he added.

“It’s a process. It cannot really be done in a short time. The process ultimately leads to a good compromise; a good solution between both countries.”


Ex-president Alvi denies being picked to head PTI amid reports of rapprochement with army

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Ex-president Alvi denies being picked to head PTI amid reports of rapprochement with army

  • The statement came amid speculation about Alvi being made PTI chairman to resolve party’s issues with establishment
  • These speculations create confusion in a party whose leadership is ‘wrongfully and unjustly incarcerated,’ Alvi says

ISLAMABAD: Arif Alvi, former president and a close aide of jailed former prime minister Imran Khan, on Saturday denied being appointed chairman of Khan’s Pakistan Tehreek-e-Insaf (PTI) opposition party.

The statement came amid widespread speculation about Alvi being made the PTI chairman to resolve the party’s issues with the powerful military establishment whom Khan has accused of sidelining him, according to some media reports.

The reports suggested the former president had been tasked with the “important” job following his meeting with Khan at Adiala jail in Rawalpindi, however, Alvi denied these reports.

“There is unnecessary speculation that Mr.@ImranKhanPTI intends to appoint me as Chairman of the party. There is no such thing being envisaged by my leader nor was it discussed in my meeting with him,” he said on X.

“These speculations create confusion in a party whose leadership is wrongfully & unjustly incarcerated.”

Alvi said the incumbent PTI chairman Gohar Khan was leading the party well. “I would like to put this inaccurate non-issue to rest with a clear denial,” he added.

Alvi’s meeting with Khan came a day after the ex-premier reportedly turned down the Pakistani military’s demand to apologize for the violent protests, allegedly staged by his supporters over his brief arrest in a graft case, that targeted military installations and public property on May 9, 2023.

Hundreds were arrested in the aftermath and some were tried by military courts after the authorities promised to bring the perpetrators and instigators of the violence to justice.

During the alleged crackdown against the PTI, Alvi, who was the then president, was said to be making efforts to bridge the gap between his party and Pakistan’s powerful military.

Khan was ousted in 2022 after falling out with Pakistan’s powerful military leaders who many say backed him into power in 2018. In opposition, he waged an unprecedented campaign of defiance against the military establishment which has directly ruled the South Asian nation for nearly half of its history.

Arguably Pakistan’s most popular politician, Khan says the cases against him are “politically motivated,” aimed at keeping him from returning to power. The military denies it.


Service Long March Tyres to invest Rs300 billion in Pakistan

Updated 11 May 2024
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Service Long March Tyres to invest Rs300 billion in Pakistan

  • The development came during Group Chairman Jin Yongsheng’s meeting with PM Shehbaz Sharif in Lahore
  • Jin lauded the government’s investment-friendly policies and appreciated the measures to prevent smuggling

LAHORE: Service Long March Tyres has decided to invest an additional Rs300 billion in Pakistan that will help create new job opportunities and increase its exports, Pakistani state media reported on Friday.

The development came during Service Long March Tyres Chairman Jin Yongsheng’s meeting with Prime Minister Shehbaz Sharif in the eastern city of Lahore.

Jin lauded the government’s investment-friendly policies and appreciated the measures to prevent smuggling, the state-run APP news agency reported.

“Jin Yongsheng said that the new investment would help produce 1000 new jobs whereas the company’s exports from Pakistan might also reach $100 million annually by 2025,” the report read.

Pakistan, which narrowly averted a default last year thanks to $3 billion International Monetary Fund (IMF) bailout, is currently looking to attract foreign investment to support its fragile, $350 billion economy.

Over the last one year, the South Asian country has signed investment deals worth billions of dollars with friendly countries.

During Friday’s meeting, PM Sharif welcomed the decision of Service Long March Tyres Group to expand its operations in Pakistan, maintaining his government was taking measures on priority to boost investment in the country.

“A comprehensive framework was being shaped up to further facilitate the business community and the investors,” Sharif was quoted as saying.


More than 3,400 Pakistani Hajj pilgrims arrive in Madinah via 15 flights

Updated 11 May 2024
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More than 3,400 Pakistani Hajj pilgrims arrive in Madinah via 15 flights

  • Pakistan on Thursday launched its pre-Hajj flight operation which will continue till June 9
  • Out of all, seven flights were operated from Islamabad, Karachi under Makkah Route initiative

ISLAMABAD: More than 3,400 Pakistani Hajj pilgrims have arrived in Madinah via 15 flights during the first two days of the country’s pre-Hajj flight operation, Pakistani state media reported on Friday.

Out of these, seven flights were operated from Islamabad and Karachi under the Makkah Route project, an initiative of the Saudi government to streamline the immigration process for pilgrims.

Currently, only Islamabad and Karachi airports in Pakistan are functioning under the initiative to facilitate pilgrims during the Hajj days.

“Filled with excitement and devotion, the pilgrims, who have been preparing for this moment for years, stepped foot in the Prophet’s (SAW) city, marking the beginning of the Hajj season,” the state-run APP news agency reported.

“Approximately three million pilgrims from around the world, including 179,210 Pakistanis, will converge on the holy cities to perform the sacred Hajj.”

From the airport, the passengers were transported to residential buildings located in Markazia, some 20-minute away from the Prophet’s Mosque.

Hajj is one of the five pillars of Islam, and requires every adult Muslim to undertake the journey to the holy Islamic sites in Makkah at least once in their lifetime, if they are financially and physically able.

Pakistan has a Hajj quota of 179,210 pilgrims this year, according to the Pakistani religious affairs ministry. Of them, 63,805 pilgrims will be performing the pilgrimage under the government scheme, while the rest would be accommodated by private tour operators.

Pakistan began its pre-Hajj flight operation on May 9, which will continue till June 9. This year’s pilgrimage is expected to run from June 14 till June 19.


Pakistan signs contract with consulting giant McKinsey in push to digitize tax collection system 

Updated 11 May 2024
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Pakistan signs contract with consulting giant McKinsey in push to digitize tax collection system 

  • IMF-led structural reforms require Pakistan to raise tax to GDP ratio from around 9 percent to 13 percent-14 percent
  • Global lender wants Pakistan to broaden its existing tax base and improve tax administration

KARACHI: Pakistan signed an agreement with McKinsey and Company on Friday for the digitalization of its tax system, the finance ministry said, as the South Asian nation strives to deliver reforms amid talks with the International Monetary Fund for a new bailout loan.

Among reforms the IMF will likely push for a new package, like the last two packages, are strengthening public finances including through gradual fiscal consolidation, broadening the existing tax base, improving tax administration, and debt sustainability.

In a media brief in December 2023, Pakistan’s main tax collection agency, the Federal Board of Revenue (FBR), said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people. The FBR said it plans to add 1.5 million new taxpayers to the existing base during the current fiscal year.

A high-level meeting was held at the FBR headquarters on Friday, following the signing of the contract with the global consulting firm, McKinsey and Company. The meeting was attended by officials from the ministry of finance, FBR, McKinsey and Karandaaz, a not-for-profit company promoting access to finance for small and medium sized enterprises and financial inclusion for individuals.

“The digitalization of the tax system is a pivotal step toward modernizing tax collection which will enhance transparency and revenue growth,” the finance division said in a statement.

“Digital transformation is a key priority for the government, and this collaboration [with McKinsey] underscores the government’s commitment to improving tax collection for promoting sustained economic growth. We look forward to seeing the positive impact of this initiative on Pakistan’s economy,” Finance Minister Muhammad Aurangzeb was quoted as saying in the statement. 

FBR Chairman Malik Amjed Zubair Tiwana said FBR was committed to enhancing revenue collection by leveraging technology to modernize its operations.

“This project [with McKinsey] is a significant step toward achieving FBR’s goals of transparency and efficiency to better serve the people of Pakistan,” Tiwana added. 

With a chronic balance of payment crisis, Pakistan needs $24 billion in payments for debt and interest servicing in the next fiscal year starting July 1 — three times more than its central bank’s foreign currency reserves.

The South Asian nation is seeking yet another long-term, larger IMF loan, with finance minister Aurangzeb saying Islamabad could secure a staff-level agreement on the new program by early July.

If successful, this would be the 25th IMF bailout for Pakistan.

The IMF-led structural reforms require Pakistan to raise its tax to GDP ratio, stop losses in state-owned enterprise and manage its energy sector losses which run into trillions of rupees. 

Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the current fiscal year ending June, while average inflation is projected to stand at 24 percent, down from 29.2 percent in fiscal year 2023/2024.

Inflation soared to a record high of 38 percent last May but eased to 17.3 percent this April after staying above 20 percent for almost two years


Balbirnie leads Ireland to T20 win over Pakistan

Updated 11 May 2024
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Balbirnie leads Ireland to T20 win over Pakistan

  • The opener’s innings was pivotal as Ireland reached a target of 183 with a ball to spare
  • It was Ireland’s second win against Pakistan since their shock triumph at 2007 World Cup

DUBLIN: Andrew Balbirnie’s 77 helped guide Ireland to their first victory over Pakistan in 17 years as they won the opening Twenty20 international by five wickets in Dublin on Friday.

The opener’s innings was pivotal as Ireland reached a target of 183 with a ball to spare.

Victory gave Ireland a 1-0 lead in a three-match series against a Pakistan side they will also face in the group stage of next month’s T20 World Cup in the United States and the West Indies.

It was just Ireland’s second win against Pakistan following their shock triumph at the 2007 50-over World Cup.

Pakistan skipper and star batsman Babar Azam top-scored for the tourists on Friday with 57 in a total of 182-6 that also featured Saim Ayub’s 45.

“I didn’t watch the last over. (I) went to the tent and put a towel over my head,” said Balbirnie, who shared a third-wicket stand of 77 with Harry Tector, at the presentation ceremony.

“I felt it was my job to get the team over the line... Harry said if we could bat normally till the 13th over, we could get the runs. That was a partnership which set it up.”

Azam, meanwhile, absolved his bowlers of blame for the defeat.

“I think 190 would have been a par score,” he said.

“We lost in the fielding and batting. (I) don’t think we executed the plans. Few fielding lapses cost us.

“We attacked in the first six overs but didn’t finish well.”

Ireland needed 40 to win from the last four overs, with Abbas Afridi dismissing George Dockrell for 24.

Next over, with Ireland requiring another 28 from 17 balls, Shadab Khan gave Balbirnie a reprieve by failing to hold a tough chance.

Come the penultimate over, Ireland’s target was down to 19.

But Pakistan quick Shaheen Shah Afridi bowled Balbirnie with a low full toss to end the opener’s impressive 55-ball innings, which featured 10 fours and two sixes.

With Ireland needing 11 off the last over, Curtis Campher under-edged a boundary off Abbas and eventually sealed victory with a leg bye.

The teams meet again in Dublin on Sunday and Tuesday.