Provinces miffed at IMF’s proposal to cut NFC share

Pakistani labourers sits on a roadside at a market in Rawalpindi on Oct. 9, 2018. (AFP)
Updated 12 October 2018
Follow

Provinces miffed at IMF’s proposal to cut NFC share

  • Move could impact health, education and welfare sectors, officials say
  • Governments say current distribution is fine and should not be reversed

KARACHI: Taking umbrage at the suggestion that they reduce their share from the federal pool of reserves, the four provincial governments of Pakistan said on Thursday that they would strongly resist the move.

The idea was proposed by the International Monetary Fund (IMF) as part of measures to strengthen Pakistan’s federal fiscal framework. And if the plan is brought to fruition, it would require the provincial governments to reduce their share in the National Finance Commission (NFC) Award.  

The NFC Award ensures financial resources are divided among the four provinces according to the 18th amendment, which dictates that the provinces have the autonomy to manage their budgets and expenditure. The constitutional framework demands that all four provinces have to mutually agree to any change made in the NFC Award. However, the president has the final authority to revise the provinces’ shares through an executive order if they fail to reach a consensus.

“The current distribution of resources under the NFC award is fine as once the power devolution has taken place and provinces are managing their finances themselves the distribution should not be reversed,” Taimor Saleem Khan Jhagra, Finance Minister of the Khyber Pakhtunkhwa (KP) province, told Arab News on Thursday. 

At present, the four provinces get 57.5 per cent of the resources from the divisible pool of taxes under the seventh NFC Award distribution, whereas the federal share stands at 42.5 per cent. Among the four, the Punjab province gets the lion share at 51.74 per cent, followed by Sindh at 24.55 per cent, Khyber Pakhtunkhwa at 14.62 per cent and Balochistan at 9.09 per cent. 

Reacting to the proposal, Spokesman of Chief Minister Sindh, Rasheed Channa, Rasheed Channa, told Arab News that “any move to curtail the funds would be resisted”, adding that: “Sindh is demanding that its share in NFC be increased  because of the large spending in the province in the backdrop of a large inflow of people coming in from other provinces as well”. 

Demanding a revision in the distribution of the NFC Award finances, Balochistan Finance Minister, Muhammad Arif Hasni, said: “We are suggesting that the government should also enhance our share by considering the factor of area of the province other than population and poverty.” 

Reasoning that the IMF’s aim was “to consolidate federal fiscalism” to ensure that the “federal governments are more empowered”, Dr Farrukh Saleem, Government’s spokesperson on Economy and Energy Issues, told Arab News that the proposal would be in the interest of the federation because “big expenditure including debt servicing is being incurred by the federal government”. 

Balochistan continued to raise alarm at the suggestion, adding that it had always been at the receiving end of such measures. “The successive government have misused the fund they received under the NFC award. The provincial government is in a rush position to get the funds from federal government as it is running out of funds to pay salaries to government employees,” Shaukat Populzai, president of the Baluchistan Economic Forum, said. 

He added that any cut in the federal government would not impact the province’s position towards Chinese investment – particularly in the China Pakistan Economic Corridor project – as that is being made under the federal government. “If China makes investment at the micro level such as in agriculture, mining and other social economic sectors then there will be trouble,” he added.  

Instead of curtailing the shares of the provinces, Jhagra said better engagement and coordination among provinces and the federal government could be the solution to the problem. “The center needs to enhance revenue generation by scaling up tax collections by the FBR [Federal Board of Revenue] and that is a daunting task for the government,” he said. 

Responding to a question about the financial health of the KP province, he said: “We are healthier than other provinces and we do not need to go into deficit. Our budget is higher than last year, but we do not have a comfortable fiscal space for the development in the province.”  

Pakistan on Thursday formally requested the IMF to provide financial assistance to tackle its depleting foreign exchange reserves. Confirming the news, IMF’s managing director, Christine Lagarde, said that a decision on the matter will be taken after more talks next week. 

As the country gears up for talks leading to a bailout, many at home fear that the IMF could force Pakistan to implement its proposal and ensure a provincial cut in the NFC Award share.


Pakistan province makes arrangements for safe travel to violence-hit Kurram district

Updated 4 sec ago
Follow

Pakistan province makes arrangements for safe travel to violence-hit Kurram district

  • More than 130 people have died in the remote district since Nov. 21 in clashes over land, sectarian disputes
  • On Wednesday, a council of tribal elders brokered a peace deal between warring tribes after weeks of efforts

ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province is making arrangements to facilitate people in safely traveling to a remote district where sectarian violence has killed more than 130 people in recent weeks, a government spokesperson said on Friday.
Kurram, a northwestern district of around 600,000 people in KP, has been rocked by tribal and sectarian clashes since Nov. 21 when gunmen attacked a convoy of Shia passengers, killing 52.
The attack sparked further violence and road closures in the district and its capital Parachinar, restricting access to medicine, food and fuel in the area as casualties surged to 136.
A grand jirga, or council of political and tribal elders formed by the KP government, on Wednesday brokered a peace agreement between the warring Shia and Sunni tribes after weeks of efforts.
“Travel and security arrangements are being made for the convoy [of passengers] leaving on Saturday,” Muhammad Ali Saif, who speaks for the KP government, said in a statement.
The clashes had resulted in the closure of the only road connecting Parachinar with the provincial capital of Peshawar. Local media reported that the convoy would leave on Saturday amid stringent security by police and Frontier Constabulary (FC).
Under the peace agreement, both sides have agreed on the demolition of bunkers and the handover of heavy weapons to the authorities.
“Both sides will give a coordinated plan of action within 15 days for the collection of weapons,” Saif said. “The bunkers already existing in the area will be dismantled within a month.”
After the demolition of bunkers, according to the official, any party that launches an attack will be considered a “terrorist” and action will be taken against it.
Another point of the peace agreement said that a fine of Rs10 million ($35,933) would be imposed on those who violate the terms of the deal by using weapons against each other. It said that families who had been displaced due to the clashes in recent weeks would be rehabilitated.
Land disputes in the volatile district would be settled on a priority basis with the cooperation of local tribes and the district administration, according to the peace agreement. Opening of banned outfits’ offices would be prohibited in the district, while social media accounts spreading hate would be discouraged via collective efforts backed by the government.


CNN names Pakistan’s scenic Gilgit-Baltistan among best places to visit in 2025

Updated 32 min 22 sec ago
Follow

CNN names Pakistan’s scenic Gilgit-Baltistan among best places to visit in 2025

  • GB, a sparsely populated region, is home to five of the 14 tallest peaks in the world, including K2
  • The region is frequented by hundreds of foreign climbers each year, tour operators also arrange trips

ISLAMABAD: US-based broadcaster CNN has curated a list of 25 destinations that are particularly worth visiting in 2025, naming Pakistan’s scenic Gilgit-Baltistan (GB) region among them.
GB, a sparsely populated northern region administered by Pakistan as an autonomous territory, is home to some of the tallest peaks in the world and a major tourist destination.
Thousands of tourists and foreign climbers visit the region each year for expeditions on various peaks, paragliding and other sports activities.
“The Gilgit-Baltistan region in the Karokoram Mountains isn’t the easiest place to get to — flight schedules can be unreliable, roads can be blocked off seasonally — but it has more tantalizing peaks than a lemon meringue pie,” CNN Travel said this week.

This picture taken on July 15, 2023 shows a view of K2, world’s second tallest mountain from its Base camp in the Karakoram range of Gilgit–Baltistan, Pakistan. (AFP/File)

“It’s home to five of the 14 ‘eight-thousander’ peaks recognized as the world’s highest. That includes K2, the world’s second-tallest mountain but No. 1 in terms of difficulty and danger.”

In terms of tourism and infrastructure, hiking in this region makes the Himalayas look like a traipse in Central Park, but GB is a place where going alone is not an option, according to CNN Travel.

The file photograph posted on October 21, 2019, shows a paraglider is airborne in Pakistan's Gilgit-Baltistan region. (GB Paragliding & Hang Gliding Association/File)

While 2024 saw a surge in mountaineering expeditions in GB, nine mountaineers died last year in their attempts to summit various peaks in the South Asian country, according to the Alpine Club of Pakistan, which arranges various expeditions. Of these climbers, five were from Japan, one from Russia, one from Brazil and two from Pakistan.

GB, however, is accessible through trips organized by reputable global tour operators, including G Adventures and Wild Frontiers, according to CNN Travel.
“Intrepid offers a 10-day, fully supported hike through the region known as ‘Little Tibet’ starting at around $3,000,” it said.

Foreign tourists attend Blossom Festival in Khaplu Valley in Pakistan’s Gilgit-Baltistan region on April 14, 2024. (AN/File)

Other top destinations on the CNN Travel list include Almaty in Kazakhstan, India’s Andaman and Nicobar Islands, Bolivia, Chemnitz in Germany, Morocco’s Rabat, Vancouver Island in Canada, and Turkiye’s Kaçkar Mountains.


Saudi Arabia, Pakistan to enhance maritime partnership at AMAN-25 exercise

Updated 03 January 2025
Follow

Saudi Arabia, Pakistan to enhance maritime partnership at AMAN-25 exercise

  • This multinational exercise in Karachi is aimed at promoting peace, enhancing cooperation among regional and global navies
  • The exercise is scheduled to take place from Feb. 7 to Feb. 11 to present a united front against terrorism and maritime crimes

JEDDAH: Saudi Arabia and Pakistan are united in their commitment to safeguard regional and global waters, using decades of naval collaboration to confront threats and foster stability.

This enduring partnership will take center stage at AMAN-2025, a multinational exercise in Karachi aimed at promoting peace and enhancing cooperation among regional and global navies.

With the participation of Saudi Arabia, the event is scheduled to take place from Feb. 7 to 11 in the capital of Sindh province on the Arabian Sea coast with the aim to also present a united front against terrorism and maritime crimes.

Speaking to Arab News, Pakistan’s Chief of the Naval Staff Adm. Naveed Ashraf highlighted the strong bond between the Royal Saudi Naval Forces and the Pakistan Navy, describing it as an “enduring maritime brotherhood.”

“The two navies have several forums for mutual interaction on issues ranging from training to information sharing and logistics. We regularly conduct exercises at sea — foremost being the Naseem Al-Bahr — seminars and training of personnel to enhance the RSNF’s potential to remain a formidable force in the Arabian Gulf and beyond,” Ashraf said.

The admiral underscored the evolution of the AMAN series since its inception in 2007, noting the exponential growth in the level and number of participants, which makes the upcoming edition distinct.

“In the last edition of 2023, Pakistan hosted 50 nations, and this time we expect even more participation from navies across the globe,” he said, adding that the former International Maritime Conference, previously an adjunct to AMAN, has now evolved into the AMAN Dialogue to allow more pragmatic, practitioner-focused discussions between naval leaders from regional and extra-regional navies on maritime security issues.

Ashraf explained how the Pakistan Navy aligns naval strategies and operational practices during such exercises, especially with increasing international participation.

“One of AMAN’s key objectives is to improve interoperability with regional and global navies. For that, we use an operational language that all participants can understand,” he said. “Collective understanding of naval strategies and operational practices is developed during planning phases and conferences held prior to the exercise.”

Emphasizing the role of AMAN-25 in fostering maritime security and stability in the Indian Ocean, he said: “Key objectives of AMAN are to foster regional and extra-regional cooperation to maintain good order at sea, enhance interoperability, act as a bridge between regions, share experiences, understand each other, and exhibit united resolve against terrorism and maritime crimes.”

Ashraf said that the understanding developed during these exercises helps organize collaborative efforts to ensure maritime security.

“In my plain view, AMAN offers a platform to showcase one’s concerns, capabilities, and willingness to cooperate,” he said.

Commenting on the effectiveness of AMAN in addressing piracy, terrorism, and other maritime crimes, Ashraf said that the AMAN Dialogue provides a forum for sharing awareness, experiences, and strategies to counter such threats.

“A significant number of harbor and sea exercises provide opportunities to improve the capacity of participating nations’ teams to combat maritime crimes effectively,” he said.

Discussing the inaugural AMAN Dialogue and its anticipated outcomes, Ashraf noted that the event has evolved from the International Maritime Conference into a practitioner-focused exchange of views.

“The dialogue seeks to promote shared understanding of maritime security issues, challenges confronting the region, and their linkages to the blue economy. It also deliberates on the efficacy of existing mechanisms for maritime cooperation and the need for innovative solutions to address evolving challenges at sea,” he said.

With maritime threats continuing to evolve, the Pakistan Navy employs technological advances to enhance interoperability with regional and extra-regional navies. Ashraf highlighted the transformative effect of technological innovation on naval warfare.

“We are paying focused attention to leveraging technology to achieve better combat readiness. That is the only way to remain effective against evolving threats. Regarding interoperability, we maintain operational linkages and information-sharing mechanisms with many countries through bilateral and multilateral arrangements, such as the Joint Maritime Information Coordination Center,” he said.

Addressing concerns about maritime pollution and climate change, the admiral said that AMAN-25 would prioritize sustainable practices at sea.

“Climate change and maritime pollution are areas of critical concern. These two issues will receive focused attention during AMAN Dialogue discussions,” he said.

On Pakistan Navy’s bilateral and multilateral agreements beyond the exercise, Ashraf said the force has a long history of cooperation with countries worldwide, even before AMAN’s inception in 2007.

“We have bilateral engagements with many navies through expert-level staff talks, training from basic to advanced levels, and exchange visits of key leadership. We became part of the Combined Maritime Forces in 2004 and have significantly contributed to collaborative security at sea,” he said.

Speaking of his vision for future maritime security amid emerging challenges such as cyber threats and artificial intelligence in warfare, Ashraf warned of the risks posed by disruptive technologies falling into the hands of non-state actors.

“I assess that threats at sea will range from ‘low-cost, high-impact’ technology to conventional weapons coupled with significant cyberattacks. That is why I say that future maritime security will greatly depend on collaborative efforts, where early warning will become a decisive factor,” he said.

Ashraf reiterated the Pakistan Navy’s commitment to maintaining deterrent capabilities against traditional and non-traditional threats. “Pakistan Navy, envisioned as a technologically adaptive military, will maintain its deterrent capability while also participating in regional and international efforts to maintain stability at sea.”

Highlighting AMAN-25’s focus on securing sea lines of communication, Ashraf emphasized the critical role of the Pakistan Navy in safeguarding these economic lifelines. Recognizing the Indian Ocean as a vital artery for global trade, including energy shipments, he said AMAN provides a platform for practical exercises, professional exchanges, and intellectual discourse on maritime security challenges in the region.

“The significance of sea lines of communication is part of the discussions during AMAN, as we alone depend 95 percent on the sea for our commerce. Regional maritime security patrols and participation in CMF’s task forces signify our role in safeguarding these economic lifelines,” he concluded.

Under the theme “Secure Seas — Prosperous Future,” this year’s AMAN Dialogue will address security challenges in the Indian Ocean, including strategic competition, regional conflicts, and piracy, as well as narco-trafficking, and the use of force by non-state actors.

The exploitation of ocean resources, climate change, and emerging technologies such as AI and unmanned systems are transforming the security landscape, posing risks to global trade and economic development.

The dialogue will focus on key themes such as maritime security in the Indian Ocean, perspectives on maritime security and cooperation, the blue economy, as well as the challenges and opportunities presented by emerging technologies.

These discussions will emphasize the need for collaboration to ensure a stable and prosperous maritime future.


Pakistan to optimize special economic zones to rejuvenate industrial landscape

Updated 03 January 2025
Follow

Pakistan to optimize special economic zones to rejuvenate industrial landscape

  • The development came two days after Pakistan unveiled its National Economic Plan, which aims to target $10 billion annual investment
  • The country plans to establish 35 special economic zones to facilitate businesses and industry, according to Board of Investment officials

ISLAMABAD: Pakistan has decided to optimize special economic zones (SEZs) to revitalize its industrial landscape, Prime Minister Shehbaz Sharif’s office said on Thursday, amid efforts to revive the $350 billion South Asian economy.
The decision was made at a meeting of the apex committee of the Special Investment Facilitation Council (SIFC), a hybrid civil-military body established last year to eliminate bureaucratic hurdles in foreign investment and provide a one-window operation to foreign businesses.
The development came two days after Pakistan unveiled its five-year, homegrown National Economic Plan, which aims to target an annual investment goal of $10 billion as the South Asian country seeks to recover from a prolonged macroeconomic crisis.
PM Sharif presided over the SIFC meeting to review various economic initiatives, during which the participants expressed satisfaction over improving macroeconomic conditions and emphasized the importance of collective efforts for unhindered economic growth.
“During the session, the Committee approved the Action Plan for Optimization of SEZs to rejuvenate industrial landscape of Pakistan,” PM Sharif’s office said in a statement.
Pakistan plans to establish 35 special economic zones to facilitate businesses and industry, Board of Investment (BOI) officials said last month. They said they had conducted a survey of these SEZs under the Geographical Information System (GIS) and had extensive data to accelerate the progress of projects in these zones.
The South Asian country aims to attract foreign investment from friendly nations, including China and Gulf countries, as it gradually recovers from a prolonged economic crisis after narrowly avoiding a default in 2023.
The SIFC apex committee reviewed a proposal for minerals harmonization framework, while the forum was briefed on various initiatives in the domain of human resource development for the improvement of skills and global standard accreditation, according to the PM’s office.
“The prime minister appreciated the role of SIFC, ministries, departments and affiliated stakeholders in setting the tone for future activities during 2025,” it said.
“He also emphasized upon the importance of collective efforts at all tiers in the larger interest of the country.”


Saudi Arabia gifts Pakistan 100 tons of dates as part of efforts to enhance humanitarian outreach

Updated 03 January 2025
Follow

Saudi Arabia gifts Pakistan 100 tons of dates as part of efforts to enhance humanitarian outreach

  • The consignment was presented by Saudi Arabia’s ambassador Nawaf bin Said Al-Malki, KSrelief director Abdullah Al-Baqami
  • ‘The noble act not only strengthens our ties but also reflects profound relationship our nations cherish,’ Pakistani official says

ISLAMABAD: The Kingdom of Saudi Arabia has gifted 100 tons of dates to Pakistan, Pakistani state media reported on Thursday, reinforcing the strong bond between the two nations.
Pakistan and Saudi Arabia enjoy strong trade, defense and brotherly relations. The Kingdom is home to over 2.7 million Pakistani expatriates, serving as the top destination for remittances for the cash-strapped South Asian country.
The annual donation of dates is part of Saudi Arabia’s efforts to enhance its humanitarian outreach and foster bilateral relations with Pakistan, the Associated Press of Pakistan (APP) news agency reported.

The consignment of dates was presented to Director-General Military Wing of Pakistan’s Cabinet Division, Brig. Alamgeer Ayub, by Saudi Ambassador Nawaf bin Said Al-Malki and King Salman Humanitarian Aid & Relief Center (KSrelief) Director Abdullah Al-Baqami in Islamabad.
“The gift exemplifies the enduring bonds of friendship and brotherhood between the two countries, rooted in shared values of generosity and mutual support,” the report read.
It said the Saudi government reaffirmed its commitment to supporting the Pakistani people through this heartfelt gesture.
On the occasion, Brig. Ayub expressed his gratitude to the Kingdom for its “unwavering generosity and consistent support” for Pakistan.
“This noble act of solidarity not only strengthens our ties but also reflects the profound relationship our nations cherish,” he was quoted as saying.
Saudi Arabia’s KSrelief has implemented more than 200 projects, including emergency relief for natural disasters and initiatives to address food security, health care and education, in Pakistan worth millions of dollars to improve the lives of vulnerable communities.