KARACHI: Prime Minister Imran Khan is working on another mini-budget, this time with an eye on increasing energy and power rates, ahead of Pakistan’s final round of negotiations with the International Monetary Fund (IMF), officials said on Thursday.
Finance Minister Asad Umar said on Wednesday that the government had assured the IMF that it will continue to reform its financial system by implementing policies across all departments.
Umar briefed the IMF officials through a video call from Islamabad about the prices of gas and electricity and the government’s efforts to limit power theft.
Earlier, while updating members of the Senate’s Standing Committee on finance and revenue about the negotiations with the IMF, Umar hinted at the possibility of introducing another mini-budget in the parliament next month reasoning that the “fiscal deficit at the current levels is not sustainable”.
He told committee members that while a proposal to increase taxes and tariffs exists, a final decision on the matter has not been taken yet.
If present, it will be the second mini-budget to be presented by the incumbent Pakistan Tehreek-e-Insaaf government after assuming office in August this year. The first was introduced in September.
The minister added that Pakistan will pay 3.18 percent interest on the $3-billion loan extended by Saudi Arabia, in addition to the $274 million worth of oil on deferred payments which the country is expected to receive from the Kingdom.
He said that Pakistan is expecting a commercial loan from China as well.
Without divulging any further details, Umar said that the mini-budget would be based on the recommendations forwarded by the Economic Advisory Council (EAC).
“Government may take measures to fix the problems which the country’s exports are facing, including tariff, duties, and rebate issues. Imports of raw materials for exportable goods may be duty free,” Dr. Abid Qaiyum Suleri, member of the EAC, told Arab News, adding that “there will be major positive change”.
“There is clarity on the policy makers’ side that Pakistan’s fundamental challenges, including tax revenue, direct taxes, public sector improvement, energy circular debt, rupee overvalue, and foreign exchange reserves must be corrected.”
“One thing may be problematic and I hope the finance ministry would be mindful. The energy prices should not be increased beyond certain level,” Dr. Suleri said, warning that “the energy inflation would be very dangerous.”
“The first mini-budget had cut development spending and increased tax rates. The second mini-budget should focus on revenue measures. The government should consider creating a digital record of all assets owned by Pakistanis and then force non-filers to become tax filers,” Dr. Mushtaq Khan, a senior economist, said.
However, some economists believe that apart from the conditions set by the IMF, the PTI government is working on its manifesto of increasing revenue collection as well.
“PTI has claimed to increase the revenue collection to Rs8 trillion in five years term...it could be a step toward that direction apart from the fund’s condition which the government is imposing,” Dr. Ayub Mehar, a Research Economist at the Asian Development Bank Institute, told Arab News.
Commenting on the government’s decision to avail the IMF program, Dr. Suleri said that “there is a state of uncertainty from the people’s perspective but from the government’s point of view, the program would impact the livelihood of people in a short span of time due to fast-paced implementation”.
Pakistan has devalued its currency six times since December 2017, even as it increased key interest rates and gas tariffs. It also increased electricity rates by an average of Rs 1.27 per unit on Wednesday as part of prior actions to avail the IMF program.
“The steps that have already been taken (rupee devalue and interest rate hike) are not the end. We expect more prior actions (on the rupee and interest rates) just before the start of the program, which is expected sometime in February 2019,” Dr. Mushtaq Khan said.
“Going to the IMF for the first time may be the compulsion of the incumbent government but if they go again for the program it would be their incompetence,” Dr. Mehar said.
Dr. Mushtaq Khan added that the government “appeared unprepared when it took power.”
“The economic direction was announced in mid-September, when the country was already facing a foreign exchange crisis. The IMF or no-IMF comments by the Finance Minister have not been helpful,” he said.
“The fact that six months into the fiscal year (FY)19, the central bank/finance ministry has not announced a balance of payment picture for the full year is unprecedented – this does not help instill confidence in the markets. I assume that the second mini-budget will be a revival strategy for the country, but announcing it in January 2019 when the year started in July 2018, is disappointing,” he added.
Pakistan raises power tariffs ahead of final talks with IMF
Pakistan raises power tariffs ahead of final talks with IMF
- Will pay 3.18% interest on $3bn loan extended by Saudi Arabia, Finance Minister says
- Further fiscal and monetary measures expected before start of bailout program, experts say
Ayub century helps Pakistan crush Zimbabwe, level series
- Ayub struck unbeaten 113 as Pakistan beat Zimbabwe by 10 wickets to level one-day international series with one match to come
- Zimbabwe were all out for 145 at Queens Sports Club as they sought a second victory over the tourists
ZIMBABWE: Saim Ayub struck an unbeaten 113 as Pakistan crushed Zimbabwe by 10 wickets in Bulawayo on Tuesday to level a one-day international series with one match to come.
Zimbabwe were all out for 145 at Queens Sports Club as they sought a second victory over the tourists in three days having won by 80 runs in a rain-shortened tour opener.
Pakistan then atoned for a poor batting show on Sunday with Ayub and fellow opener Abdullah Shafique (32 not out) unstoppable as they reached their target in 18.2 overs.
Ayub struck 17 runs and three sixes off 62 balls in a 75-minute stand while Shafique claimed four fours in the southern city.
Ayub reached his century off 53 balls — the second fastest in an ODI international by a Pakistani after Shahid Afridi.
Zimbabwe, seeking a first ODI series win over Pakistan, utilized five bowlers, but none made an impression with Brandon Mavuta, who conceded 47 runs in four overs, particularly expensive.
After winning the toss, Zimbabwe were quickly in trouble with openers Joylord Gumbie (five) and Tadiwanashe Marumani (four) back in the pavilion with less than four overs bowled.
Only Dion Myers, who struck six fours in his 33, and veteran Sean Williams, who posted 31 before being trapped leg before by Ayub, impressed for the home team.
Pakistan-born all-rounder Sikandar Raza, often the batting savior for Zimbabwe, made just 17 before becoming one of three victims of Salman Ali Agha.
Abrar Ahmed took four wickets and Ali Agha three for Pakistan, who arrived in southern Africa after a 3-0 ODI series loss in Australia.
The Zimbabwe ODI series decider is set for Thursday, followed by three Twenty20 internationals from Sunday, also in Bulawayo. Pakistan then visit South Africa for an all-format tour.
VPN demand increased 253% in Pakistan between Nov. 24-26 — Top10VPN
- Pakistani authorities have suspended mobile Internet services and blocked several VPNs amid a protest by PTI opposition party
- Social media platform X has been blocked since February and the government is also moving to implement a national firewall
ISLAMABAD: Top10VPN, an independent VPN review company, said this week VPN demand had more than tripled in Pakistan following the tightening of social media restrictions between Nov. 24-26, days that coincide with the launch of a protest movement by the opposition Pakistan Tehreek-e-Insaf (PTI) party.
Pakistani authorities have suspended mobile Internet services and blocked several VPNs amid a protest launched by supporters of former Prime Minister Imran Khan, who has been jailed since August 2023 on a spate of charges from corruption to terrorism.
The government has been cracking down on VPN use for weeks, with the Pakistan Telecommunication Authority announcing that businesses and freelancers would be able to legally use VPNs by registering with the government, but unregistered VPNs will be blocked in Pakistan after Nov. 30. Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online.
Digital rights activists say the move is part of government attempts to block vital tools that allow users to bypass restrictions amid a wave of digital crackdowns, particularly as the use of VPNs has sharply risen in Pakistan since February this year when the government banned X.
“Demand for VPN services initially increased by 102 percent in Pakistan on November 24 compared to the daily average over the 28 days prior,” Top10VPN said in a report.
The PTI had launched its ‘long march’ protest to the federal capital, Islamabad, on Nov. 24.
“VPN demand intensified the next day [Monday], at 253 percent above the baseline on November 25 and continues to remain elevated,” the website added. “The surge followed reports that WhatsApp had been targeted by the authorities, preventing media sharing.”
The federal government is also moving to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks. Internet speeds have dropped by up to 30-40 percent over the past few months due to the firewall, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP).
In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned last week Internet slowdowns and the restriction of VPN services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.
Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies.
“If the VPNs are blocked, most of IT companies, Call Centers, BPO [business process outsourcing] organizations of Pakistan will lose all the major Fortune 500 clients, as well as others – as data protection and cybersecurity are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world,” P@SHA Chairman Sajjad Mustafa Syed said in a statement released last Tuesday.
“Additionally, no international company of any size tolerates any intrusion into their security protocols by any private or public institution.”
Pakistan army says three militants attempting to infiltrate from Afghan border killed
- Kabul government denies it allows militants to use its soil to attack Pakistan
- Pakistan has seen sharp rise in militant attacks across the country in recent months
ISLAMABAD: The Pakistan army said on Tuesday it had killed three militants out of a group that had tried to infiltrate its frontier with neighboring Afghanistan in the northwestern North Waziristan district, calling on Kabul to ensure “effective border management” on its side.
Islamabad, facing a sharp rise in militancy in recent months, says the Tehreek-e-Taliban Pakistan (TTP) group uses Afghanistan as a base to launch attacks and that the ruling Taliban administration has provided safe havens to the group along their shared border. The Taliban government in Kabul denies this.
The TTP is separate from the Afghan Taliban movement but pledges loyalty to the group that has ruled Afghanistan after the US-led international forces withdrew in 2021.
“On night 25/26 November, movement of a group of khwarij [militants], who were trying to infiltrate through Pakistan-Afghanistan border, was picked up by the security forces in general area Hassan Khel, North Waziristan District,” the army said in a statement. “Own troops effectively engaged and thwarted their attempt to infiltrate. Resultantly, three Khwarij were sent to hell.”
The statement said Islamabad had “consistently” been asking the Afghan government to ensure effective border management on their side of the border.
“Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan,” the army added.
“Security Forces of Pakistan are determined and remain committed to secure its borders and eliminate the menace of terrorism from the country.”
What has caused Pakistan’s deadly clashes between police and supporters of Imran Khan?
- Topping the demands of Khan’s Pakistan Tehreek-e-Insaf party is the release of all its leaders, including Khan
- PTI supporters say they will hold ‘do or die’ sit-in at public square near parliament that is a popular protest site
Thousands of supporters of Pakistan’s jailed former Prime Minister Imran Khan marched on the capital Islamabad this week, breaking through barricades and clashing with police in response to his call for a sit-in protest.
Here is a look at what led to the protest and this chapter of political rallies in Pakistan:
WHAT DO PROTESTERS WANT?
Topping the demands of Khan’s Pakistan Tehreek-e-Insaf (PTI) party is the release of all its leaders, including Khan, who has been jailed on a series of corruption charges since August 2023.
They also seek the resignation of the current government over what they call rigged general elections this year.
PTI supporters from across the country, including Khan’s wife Bushra Bibi, have marched on the capital, with large numbers coming from the party’s stronghold in the northern province of Khyber Pakhtunkhwa.
They have vowed to enter the capital and rally at a public square near parliament that is a popular protest site, holding what leaders have called a “do or die” sit-in.
HOW HAS THE GOVERNMENT RESPONDED?
Prime Minister Shehbaz Sharif’s government has given no indication yet of bending to the demands. Authorities have used shipping containers to block major roads and streets in Islamabad, with police and paramilitary patrolling in riot gear.
Mobile Internet links are down and schools have been closed for several days in the capital and the nearby garrison city of Rawalpindi. Gatherings have been banned in Islamabad.
WHAT HAS HAPPENED SINCE THE MARCH BEGAN?
Thousands of supporters clashed with police and paramilitary troops on the weekend, as they tried to enter Islamabad.
Both sides have reported injuries and the prime minister’s office said members of the paramilitary were killed when they were run over by a car in the protest convoy. The interior ministry put the number of those killed at four.
WHERE DO THE PROTESTERS WANT TO GO?
The marchers aim to reach the roundabout near parliament that has long been a rallying point for protests and sit-ins that have marked Pakistan’s turbulent politics for decades.
The site is in Islamabad’s heavily fortified red zone, home to parliament, key government installations, luxury hotels, embassies and the offices of foreign organizations.
WHAT IS THE HISTORY OF POLITICAL PROTEST IN PAKISTAN?
Stormy politics and unrest during Pakistan’s 77-year history have included protests and sit-ins by opposition parties.
Khan led one of Pakistan’s largest sit-ins in 2014 when his supporters protesting against the PML-N government occupied the roundabout site for 126 days.
PTI supporters last marched on Islamabad in October, sparking days of clashes with police that killed one officer.
Ex-PM Khan party’s protest disrupts petrol supply in Islamabad, Punjab— oil transporters
- Authorities have sealed off roads leading to Islamabad with containers to deter protesters
- Several pump stations have run out of petrol due to non-delivery, says oil tankers association
ISLAMABAD: The supply of petrol to Islamabad and several cities in Pakistan’s eastern Punjab province has been “severely affected” due to a protest by former prime minister Imran Khan’s party, an oil tankers association said on Tuesday, as major roads and highways leading to the capital were sealed off.
Pakistani authorities started closing highways and motorways leading to Islamabad in many parts of the country with shipping containers on Saturday, ahead of a “long march” to Islamabad by Khan’s party.
Authorities also said on Sunday they were closing certain sections of the motorway due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot.
The closed routes had stalled the delivery of petrol to several parts of Punjab and Islamabad, Oil Tanker Contractors Association spokesperson Noman Butt said.
“Routes to Islamabad, Rawalpindi and North Punjab are closed due to which supply from petrol tankers is severely affected,” Butt said in a statement.
“Thousands of tankers are waiting for the route to open.”
Butt said petrol had not been supplied to Gujranwala, Jhelum, Sialkot and Kharian districts in Punjab for the last three days.
He said petrol supply has also been affected in Islamabad, Kohala, and the northern city of Gilgit.
“Petrol has run out at pumps in many cities,” he added.
Khan’s party aims to pressure the government to end his imprisonment, which has lasted for over a year on what his party contends are politically motivated charges.
The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this.
Thousands of Khan supporters arrived at D-Chowk, a high-security area in Islamabad’s Red Zone that houses key government buildings and is a popular site for protests, on Tuesday afternoon.
His supporters, led by the former prime minister’s wife Bushra Khan, braved teargassing, arrests and clashes to reach D-Chowk where they plan on staging a sit-in protest to demand his release.
Pakistan’s interior minister said three Rangers personnel and a Punjab Police constable had been killed in the clashes. The PTI rejects its supporters were responsible for their deaths.
