Pakistani farmers fearful as China eyes agricultural sector

In this file photo, a Pakistani farmer arrives at his fields in dense fog in Lahore on Dec. 18, 2013. (AFP)
Updated 17 December 2018
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Pakistani farmers fearful as China eyes agricultural sector

  • Farmers’ association says not consulted about potential agreements
  • Pakistan expected to sign agricultural cooperation deals in Beijing this week

ISLAMABAD: Pakistani farmers say they have been kept out of the loop and fear exploitation by Chinese businesses as Pakistan heads to Beijing later this week for the eighth meeting of the Pak-China Joint Coordination Committee where agricultural cooperation deals are expected to be signed between the two countries. 
Earlier this year, Pakistan announced that a new sub-group had been set up within the $60 billion China Pakistan Economic Corridor (CPEC) of energy and infrastructure projects. The new category includes sectors like education, health skills development, housing, and most importantly, agriculture, which accounts for 20 percent of Pakistan’s GDP.
A top official at Pakistan’s largest farmers’ association said the government had not taken farmers into confidence “at any level” about agricultural cooperation with China.
“We are worried about the government’s plans of entering China into our agriculture sector without holding any prior consultations with farmers,” Mian Muhammad Umair Masood, the secretary-general the Pakistan Kissan Ittehad, told Arab News. “We fear Chinese businessmen will create a monopoly here in the name of cooperation and exploit local farmers.”
A June 2017 report in Pakistan’s Dawn newspaper outlined that agricultural cooperation with China could potentially include allowing the Chinese to lease or purchase large tracts of Pakistani farmland and operate their own farms and processing facilities using capital grants and loans from Beijing and the Chinese Development Bank.
Officials also foresee technology transfers, infrastructure upgrades, and extensive cooperation between Chinese and Pakistani farming enterprises under CPEC.
But Masood said farmers had been kept in the dark over the exact contours of the deals being planned.
“Farmers at this stage don’t know whether Chinese will be leased out the agricultural land, or allowed to purchase vast tracts of the farming land,” Masood said. “If China grows crops in Pakistan to fulfil its growing food requirement and then simply exports them to Chinese markets from here, this will be of no benefit to the local farmers and the country’s economy.”
There are also concerns about how much input provincial governments will have in planning and implementing future agricultural cooperation deals. Most CPEC negotiations so far have been carried out by the federal government whereas, under the 18th amendment, agriculture is an exclusively provincial subject. 
Already, there are ever-increasing fears that energy and infrastructure deals signed under the CPEC portfolio were badly negotiated, too expensive or overly favored China. Now experts fear the same may happen with new agricultural contracts.
But Minister for Planning Khusro Bakhtyar said Pakistani farmers had nothing to fear, though he did not give any details of planned regulations to ensure greater equity in Pakistan’s arrangement with China.
“We will protect the interests of our local farmers at all costs,” he told Arab News. “Chinese cooperation will be sought in modernizing our agriculture, improving our supply chain and setting up of cold storages. Improvement in the agriculture sector remains our top priority and this is now going to be an important component of CPEC,” he added. 
The first phase of CPEC included mainly ports, power plants, roads, and railway projects. Ministry of Planning officials say the government now wants to focus on medium-term projects, expected to be completed by 2015, that include the agriculture sector and the establishment of industrial zones.
Some measures the Pakistan government could consider to secure the interests of its farmers include quotas for Pakistani laborers on Chinese-owned and operated farms and requirements that specific infrastructure projects such as post-harvest storage facilities be completed before Chinese enterprises are allowed to access Pakistani farmland. Economists and experts say Pakistan can increase its agrarian exports to China manifold in the coming years if it succeeds in removing tariff and non-tariff barriers for agricultural trade.
Senior economist Dr. Athar Ahmad said China is the world’s largest importer of agricultural products and Pakistan can grab its due share of the pie by revising the Free Trade Agreement (FTA) between the two countries.
He said China’s annual imports of agricultural products are over $160 billion while “Pakistan’s share in these exports is negligible.”
“We will have to diversify our agriculture by using modern techniques and technology to increase our exports to China,” Ahmad said.
Pakistan’s agriculture sector has long been hindered by water scarcity, energy shortages, and poor post-harvest infrastructure which result in about half of the country’s perishable produce going to waste before it reaches the market.
Chinese investment in the agriculture sector can help address these issues if “the government takes a strong position in negotiations with Chinese authorities and tries to get maximum benefits for its farmers,” business editor Khurram Husain told Arab News.
He said Pakistani agriculture needed foreign investment, modern technology in harvesting and even cold storage to improve its poor agricultural supply chain.
“From use of pesticides and fertilizers to new seed varieties and especially post-harvesting handling of both perishable and non-perishable items and transportation, we are far behind in all these things,” Hussain said. “If we can improve our harvesting and post-harvesting handling just in fruit and vegetables, we can double output, but to what extent the Chinese can help, this all depends on our government’s negotiating power.”


Pakistani privatization chief pitches sale of PIA, other state entities to Azerbaijani officials

Updated 5 sec ago
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Pakistani privatization chief pitches sale of PIA, other state entities to Azerbaijani officials

  • Pakistan is looking to sell debt-ridden state enterprises as envisaged under $7 billion IMF program approved in September
  • Pakistan wants to position itself as pivotal trade and transit hub connecting China and Central Asia with the rest of the world

ISLAMABAD: Pakistan’s privatization chief Abdul Aleem Khan on Wednesday met Azerbaijan’s economy minister Mikayil Jabbarov and discussed, among other issues, the sale of national carrier PIA and other loss-making state entities.

Cash-strapped Pakistan is looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program approved in September. The process, however, hit a snag last month when the final bidding round attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the national flag carrier.

PIA’s existing liabilities stand at approximately Rs250 billion ($896 million).

Pakistan is also trying to sell power distribution (discos) and other loss-making state owned companies that are a main hole in its $350 billion economy.

“Discussions with the Azerbaijani government on government-to-government and business-to-business partnerships regarding privatization in Pakistan were discussed in the meeting,” Khan’s office said in a statement after he met Jabbarov in Baku. 

“Participation in privatization of PIA, Agricultural Development Bank, discos, utility stores and other projects offered.”

According to the statement from the Pakistani side, Khan said Pakistan and Azerbaijan could make “mutual investments” in the LNG and renewable energy sectors.

“There can be huge investments in the IT sector, telecom, agriculture, energy and other sectors,” Khan said, apprising the Azerbaijani official of cooperation opportunities in Pakistan’s communication sector as well. “We have to take concrete and practical steps to increase the volume of bilateral trade.”

Khan is in Azerbaijan on a two-day visit, and will attend various meetings aimed at discussing investment opportunities and strengthening bilateral relations. 

Pakistan wants to position itself as a regional trade hub, leverage its strategic geopolitical position and enhance its role as a pivotal trade and transit hub connecting China and Central Asia with the rest of the world. In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan, China and Central Asian states, including Uzbekistan, Azerbaijan, Tajikistan and Turkmenistan.


Pakistan, Saudi Arabia discuss exchange of police, paramilitary forces, joint trainings

Updated 32 min 40 sec ago
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Pakistan, Saudi Arabia discuss exchange of police, paramilitary forces, joint trainings

  • Military and security cooperation is a strong aspect of close relationship between Islamabad and Riyadh
  • They regularly engage in joint exercises, training programs to enhance their respective defense capabilities

ISLAMABAD: Pakistani interior minister Mohsin Naqvi on Wednesday met Saudi Deputy Interior Minister Dr. Nasser bin Abdulaziz Al-Dawood in Islamabad and discussed the exchange of police and paramilitary forces, as well as joint training programs between the two brotherly nations.

Military and security cooperation is a strong aspect of the close relationship between Islamabad and Riyadh. They regularly engage in joint military exercises and training programs to enhance their respective defense capabilities. Pakistan is also a member of the Saudi-led Islamic Military Alliance, which aims to combat terrorism and promote regional security. Since the 1970s, Pakistani soldiers have been stationed in Saudi Arabia to protect the Kingdom while Pakistan has also been providing training to Saudi soldiers and pilots.

“Discussion held on mutual exchanges of paramilitary forces and police and joint trainings,” the Pakistani interior ministry said in a statement after Naqvi’s meeting with Al-Dawood. 

A day earlier, Pakistan’s Prime Minister Shehbaz Sharif also met Al-Dawood and expressed “satisfaction” over the implementation of recently signed business agreements between the two countries.

Pakistani and Saudi businesses signed 27 memorandums of agreement (MoUs) worth $2.2 billion on Oct. 10 during the Saudi investment minister’s visit to Islamabad. On Oct. 30, while Sharif was visiting Riyadh, Saudi Arabia announced it had enhanced the number of business agreements from 27 to 34 and increased their value to $2.8 billion.


Pakistan approves winter power package to spur demand, cut gas use

Updated 20 November 2024
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Pakistan approves winter power package to spur demand, cut gas use

  • Move to provide relief to businesses and citizens after steep increases in electricity tariffs following energy reforms pushed by IMF
  • Utilities in Pakistan, many of which have had to curtail or completely cease operations in winter months, will also benefit 

ISLAMABAD: The Eco­nomic Coordination Com­m­i­ttee (ECC) of the Pakistan government on Tuesday formally approved subsidy-neutral discounted electricity rates during winter in a bid to boost consumption and cut the use of natural gas for heating, the finance ministry said. 

The move is expected to provide relief to businesses and citizens, who have suffered from steep and sudden increases in electricity tariffs following energy sector reforms suggested by the International Monetary Fund (IMF). Utilities in Pakistan, many of which have had to curtail or even completely cease operations in winter months due to demand dropping by up to 60 percent from peak summer levels, will also benefit from the move.

Pakistan relies heavily on expensive natural gas and burning wood for heating during winter. Power consumption in Pakistan has declined 8-10 percent year on year over the past three quarters, according to energy ministry figures. 

The new winter package, which will apply between Dec. 2024 to Feb. 2025, has been approved for the industrial, domestic, commercial and general services consumers of state distribution companies (discos) and K-Electric, the main utility in the port city of Karachi, “to enable optimum use of system generation capacity besides reducing gas demand due to shifting of favorabe demand toward electricity.”

“The ECC discussed the proposal and approved it, calling the subsidy-neutral interim relief initiative worked out by the Power Division as being timely and relevant in view of recent surge in electricity tariffs and the reduced demand across various consumer categories,” the finance division statement added. 

The package would apply to incremental consumption over the past years and includes 18-50 percent discounts depending on various consumer categories and consumption slabs. 

Incremental consumption will be calculated using a weighted average formula based on the last three years’ usage.

According to the power division, the base rate for domestic consumers is a minimum of Rs37.49 per unit and a maximum of Rs52.07 per unit, but additional consumption would be charged at Rs26.07 per unit for both categories. This would be 30 percent cheaper (Rs11.42 per unit) compared to a minimum rate of Rs37.49 and 50 percent (Rs26 per unit) compared to the maximum rate.

The energy ministry has previously said the move to slash winter tariffs will help industries reduce electricity costs by 7-8 percent at an optimal level, while stimulating industrial growth in the process.


Pakistan approves ‘comprehensive’ military operation against separatist militants in Balochistan

Updated 42 min ago
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Pakistan approves ‘comprehensive’ military operation against separatist militants in Balochistan

  • The remote province has seen an increase in strikes by separatist ethnic militants this year
  • Islamabad says hostile neighbors support the insurgency to impede economic development

ISLAMABAD: Pakistan on Tuesday approved a “comprehensive military operation” against separatist militant groups operating in its southwestern Balochistan province, amid a surge in attacks across the region.

The remote province, Pakistan’s largest by area but least developed, is home to a decades-long insurgency by separatists who carry out frequent attacks against the government, army and Chinese interests in the region to press their demands for a share in regional resources. The state denies it is unfair in its treatment of Balochistan.

Last month, the Baloch Liberation Army (BLA), the most prominent of separatist groups operating in the province, claimed a suicide bombing that targeted Pakistani army troops at a railway station minutes before they were due to board a train to return home for vacations. It killed 27, including 19 soldiers, who were in civilian clothing. 

Last week, militants stormed a paramilitary checkpoint in Balochistan’s mountainous Kalat district, some 150 km south of the provincial capital of Quetta, killing seven troops and wounding at least 18. In October, in two separate incidents, five people were killed in an attack by armed men on the construction site of a small dam, while 21 miners working at privately run coal mines were also gunned down. The BLA group also claimed a recent suicide bombing outside the southern Karachi international airport, in which two Chinese engineers were killed. 

“The participants approved a comprehensive military operation against terrorist organizations operating in Balochistan including the Majeed Brigade, BLA, BLF and BRAS who are targeting innocent civilians and foreign nationals to scuttle Pakistan’s economic progress by creating insecurity at the behest of hostile external powers,” said a statement from Prime Minister Shehbaz Sharif’s office after a meeting of the National Action Plan’s apex committee in Islamabad, attended by the cabinet, provincial chief ministers and the three armed services chiefs, including Chief of Army Staff (COAS) Gen Asim Munir. 

“COAS reiterated the Pakistan Army’s unwavering resolve to eliminate all threats to national security and provide robust support to the government’s initiatives aimed at ensuring peace and stability.”

The statement did not give any details of the military operation such as when it would be launched and in which parts of the province and which security agencies will participate. 

Ethnic Baloch insurgents say they are fighting what they see as the unfair exploitation of the province’s mineral and gas wealth by the federation at the center. The province is home to major China-led investment projects such as a strategic port and a gold and copper mine.

The Pakistani government and military deny they are exploiting Balochistan and have long maintained that neighbors such as India, Afghanistan and Iran foment trouble in the region and support and fund the insurgency there to impede its development and economic potential.


Imran Khan’s party, government rule out talks ahead of Nov. 24 protest in Islamabad

Updated 20 November 2024
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Imran Khan’s party, government rule out talks ahead of Nov. 24 protest in Islamabad

  • PTI is planning protest in Islamabad against alleged election rigging, to demand independence of judiciary, release of political supporters
  • Government spokesman says law will “take its course” if PTI and supporters violate ban on public gatherings in federal capital 

ISLAMABAD: Former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party as well as a government spokesman both ruled out negotiations ahead of a planned protest by the PTI in the federal capital on Nov. 24, while police warned of action against supporters if they violated a ban on public gatherings.

The denials follow widespread reports on electronic and social media of negotiations between PTI and the government as the party prepares to lead a ‘long march’ to the capital on Sunday over alleged rigging in Feb. 8 general elections and to call for the release of political prisoners, including Khan, and in support of the independence of the judiciary. 

On Monday, just days ahead of the protest, the district magistrate imposed a two-month-long ban on the gathering of more than five people in Islamabad using Section 144 of the Pakistan Penal Code, which allows the government to prohibit various forms of political assembly, gatherings, sit-ins, rallies, demonstrations, and other activities for a specified period.

Pakistan’s parliament also passed a law earlier this year to “regulate” public gatherings in Islamabad, including by specifying timings for rallies and designating specific areas. The law has set three-year jail terms for participants of ‘illegal’ assemblies, with ten-year imprisonment for repeat offenders.

“There is no contact between the PTI and government,” Khan’s close aide, Sayed Zulfikar Bukhari, told Arab News, saying the party intended to go ahead with its protest plan.

 “We intend to stay within the law and within our constitutional right of peaceful assembly,” he added.

Barrister Daniyal Chaudhry from the Pakistan Muslim League-Nawaz (PMLN) ruling party, who is a parliamentary secretary of information and broadcasting, said the law would “take its course” against violators of the newly passed Peaceful Assembly and Public Order Act, 2024.

“Section 144 has been imposed, and under the clearly defined process of the Peaceful Assembly and Public Order Act, 2024, anyone violating the law will be dealt with strictly, as it is the government’s responsibility to protect the lives and property of the people,” Chaudhry told Arab News.

“There will be no tolerance for [breaking the law] and definitely the law will take its course.”

Chaudhry also said there had been no contact between the PTI and the government ahead of Sunday’s protest.

“As of now, there is nothing from the official channel and if it has not been done till now then I don’t think they [PTI] are in a mood to take the government on board,” he added.

Responding to a question about the deployment of paramilitary, army and other security agencies to assist police on the day of the protest, the PMLN leader said the government would do everything necessary to ensure the security of the residents of Islamabad:

“It is an utmost priority for the government to ensure the protection of the people.”

Nazia Rafiq, a spokesperson for Islamabad Police, said the law enforcement agency would ensure that laws were followed. 

“Section 144 has been imposed by the district administration, and it is our responsibility to adhere to state policies and ensure the implementation of the rule of law but so far, everything is under control,” she told Arab News.

“However, if any unlawful activity occurs, the police will handle it in accordance with the law and the directions provided.”

The PTI’s recent rallies and marches, organized to create pressure for Khan’s release from prison, have been thwarted by similar bans on public gatherings. 

Khan has been in jail since August 2023 and has faced dozens of cases since he was removed as prime minister in 2022 after which he launched a protest movement against a coalition of his rivals led by current Prime Minister Shehbaz Sharif and backed by the all-powerful military, which denies interfering in politics. 

Khan says the cases against him, which disqualified him from contesting the February elections, are politically motivated.