ISLAMABAD — An anti-graft crusade promoted by Pakistani Prime Minister Imran Khan has led to swathes of arrests of politicians, but critics say the economy is suffering as vital projects are put on hold by officials fearful of being caught up in the dragnet.
Khan won power last year vowing to root out corruption among what he cast as a venal political elite and views the probes into veteran politicians — including jailed former premier Nawaz Sharif and ex-President Asif Ali Zardari — as long overdue.
While few dispute the need to clean up Pakistani politics, the National Accountability Bureau (NAB) campaign has become a topic of fierce political debate.
Some in the business community say they worry the drive is hurting an ailing economy, which has just received a $6 billion International Monetary Fund bailout.
And the focus of the NAB so far on the new government’s political foes has prompted accusations it is a one-sided purge backed by Pakistan’s powerful military, which is seen to favor Khan. The government denies targeting political opponents.
NAB did not respond to a request for comment. The military also did not respond, but in the past it has denied interfering in politics or influencing NAB, an independent body within Pakistan’s legal system with its own investigators and courts.
The crackdown has also ensnared civil servants, who say they have become collateral damage in the accountability drive.
Six high-ranking officials who spoke to Reuters painted a picture of a civil service in disarray and decision-making at a standstill, with senior officials avoiding signing off projects or making decisions that could open them to bribery accusations.
“If a project works out, I don’t get a gold medal,” said one senior federal official. “But if it doesn’t work out, I might go to jail.” A second official spoke of an administrative “go-slow” amid a climate of fear in the bureaucracy.
POLITICAL CASES?
The government rejects accusations that NAB is impacting the economy, calling such allegations opposition propaganda, and says graft is to blame for Pakistan’s current economic woes.
Khan last month launched a commission to investigate projects and agreements that helped increase overall debt between 2008-2018, staffing it with members of NAB and military intelligence agencies.
Science Minister Fawad Chaudhry said government officials make up a small number of NAB cases, but their concerns had reached Khan and a special cell had been created within NAB to deal with bureaucrats’ issues.
“The rise of Imran Khan is basically a middle class revolution against corruption,” Chaudhry added. “You can’t expect from us that we will take the issue of corruption lightly.”
NAB last month arrested former President Zardari and his sister over alleged false bank accounts and money laundering. They both deny wrongdoing and call the arrests politically motivated.
Since Khan assumed power last August, NAB has continued investigating jailed former Prime Minister Sharif, who has alleged the military’s hidden hand is behind many of the anti-corruption cases against his family.
Fresh probes have also been opened involving Sharif’s brother and many of his closest allies, including at least eight ministers from the previous government. They all deny wrongdoing and say they are victims of persecution.
“Everybody who is against this government has a NAB case,” said one opposition politician who was a minister in the previous government.
Inquiries have also been launched against some prominent businessmen.
“KILLS CONFIDENCE”
Pakistan’s new liquefied natural gas (LNG) infrastructure, erected at breakneck speed by the previous administration, has emerged as a major anti-corruption battlefield.
LNG terminals built in 2016 and 2017 were vital to ending a decade of electricity shortages and turned Pakistan into one the world’s hottest LNG markets, with Qatar and Italy’s Eni signing long-term gas deals worth billions.
But Khan’s Pakistan Tehreek-i-Insaf (PTI) party has for years alleged corruption. In April, on NAB’s instructions, the government barred former Prime Minister Shahid Khaqan Abbasi, ex-Finance Minister Miftah Ismail, and six bureaucrats involved in the Qatar deal for the first terminal from leaving the country. They all deny wrongdoing. No allegations of wrongdoing have been made against the Qatari side.
Abbasi, who as petroleum minister masterminded Pakistan’s embrace of LNG, said he had to take a lead role because many officials were afraid of multi-billion dollar projects.
“Nobody wanted to do anything as they were scared of NAB,” said Abbasi, who said bureaucrats were now paying a price despite helping end electricity shortages. “We had good people who stuck their neck out and they’re all suffering today.”
A third LNG terminal and a new gas pipeline needed to keep up with rising energy demand have been on the “backburner” for more than a year as no decision making is taking place across ministries, according to an energy official.
“Bureaucrats being barred from leaving the country kills confidence,” he said. “We are going to have a (energy) crisis in a year or two.”
The result, say the officials who spoke to Reuters, is that senior colleagues nearing retirement are refusing to sign off on projects due to fears of being dragged out of retirement to answer NAB inquiries for years.
“If I have to make a decision about a $10 billion refinery... I’ll sit on this file for six months, and get the next guy to make that decision,” said the first senior federal official.
A senior civil servant in the Khyber Pakhtunkhwa province said he hasn’t approved any major project since late 2018.
“All bureaucrats know that once you are tagged with NAB, no matter if you’re innocent or you really did some corruption, you have no future,” he said. “You’re finished.”
’Government go-slow’, as Pakistan’s anti-corruption drive bites
’Government go-slow’, as Pakistan’s anti-corruption drive bites
- Anti-graft crusade promoted by PM Khan has led to swathes of arrests of politicians
- Focus so far on government’s political foes has prompted accusations of a one-sided purge
Texas hedge fund manager close to Trump leads investment delegation to Pakistan— state media
- Gentry Beach is leading “high-level” investment delegation on two-day visit to Pakistan, says state media
- State broadcaster says several agreements between Pakistan and US were signed during delegation’s visit
Islamabad: A high-level delegation of American investors featuring a business partner of US President Donald Trump has arrived in Pakistan, state broadcaster Radio Pakistan reported on Tuesday, adding that several agreements between the two countries were signed.
The delegation, led by Texas hedge fund manager Gentry Beach, has arrived in Pakistan for a two-day visit to the country. Pakistani state media said that the delegation’s arrival days after the new American administration taking office is of “great importance.”
“The visit of the US delegation to Pakistan will open new avenues for investment, economic and bilateral relations between the two countries,” Radio Pakistan said.
The development takes place as cash-strapped Pakistan engages with countries to secure foreign investment in its key economic sectors such as energy, agriculture, mining and minerals, livestock and others.
Prime Minister Shehbaz Sharif’s government has sought increased foreign trade and investment as a remedy to Pakistan’s economic woes. Pakistan, which came to the brink of a sovereign default in 2023, has suffered from a prolonged macroeconomic crisis that has drained its economic resources, weakened its currency and exacerbated its balance of payments crisis.
The South Asian country had a flurry of high-level exchanges with Saudi Arabia, Japan, Azerbaijan, Qatar and Central Asian countries last year in a bid to support its $350 billion fragile economy.
Islamabad formed a hybrid civil-military investment body in June 2023 to fast-track decisions related to investment in Pakistan’s key economic sectors. The government credits the Special Investment Facilitation Council (SIFC) for aiding its efforts to turn Pakistan’s economy around and increasing its exports over the past year-and-a-half.
However, ties between Pakistan and the US have always remained complicated. Both countries shared close defense and security cooperation in the past, particularly during the Cold War after the 1979 Soviet invasion of Afghanistan and post-September 11, 2001 attacks.
However, more recently, US officials criticized Pakistan for not sufficiently supporting their military efforts against the Taliban following the 9/11 attacks. Islamabad denies sheltering Taliban fighters and helping them regain control of Afghanistan in August 2021.
Pakistan Navy’s ‘Yamama’ holds bilateral exercise with Saudi ship in Jeddah
- Navy says exercise aimed to strengthen naval cooperation and enhance interoperability between the two allies
- Ship’s crew held table-top discussions on maritime issues with Saudi naval leadership, says Pakistan Navy
ISLAMABAD: Pakistan Navy said its newly commissioned Yamama ship visited Jeddah on Tuesday where it met the Royal Saudi Naval Forces (RSNF) leadership and held a passage exercise (PASSEX) with the Kingdom’s ‘Makkah’ ship, saying the activities were designed to strengthen cooperation and foster interoperability.
Yamama is Pakistan Navy’s fourth Offshore Patrol Vessel (OPV) that it says is equipped with advanced technologies and designed to operate in contested maritime environments. Upon its arrival at Jeddah port, the ship was received by senior RSNF officials and representatives from the Pakistan Embassy, the navy said.
During its stay, the ship’s crew engaged in professional activities, including cross-ship visits, table-top discussions on maritime issues and meetings with the RSNF leadership.
“Following the port visit, PNS YAMAMA conducted a PASSEX with HMS Makkah,” Pakistan Navy said. “The exercise was designed to strengthen naval cooperation and enhance interoperability between the two navies. Both forces reaffirmed their commitment to ensuring maritime security and promoting regional stability.”
The statement said Yamama’s visit to Saudi Arabia and the passage exercise further reinforced “strong brotherly relations” and defense collaboration between the two countries.
Pakistan and Saudi Arabia enjoy strong defense ties and bilateral security cooperation. The two nations regularly engage in joint air, ground and sea military exercises while several cadets from the Kingdom, along with counterparts from other Middle Eastern nations, annually visit Pakistan to undergo specialized military training.
Apart from defense and security ties, Pakistan enjoys strong economic and trade relations with Saudi Arabia. The Kingdom is home to over two million Pakistani expatriates, serving as the top source of remittances for the cash-strapped South Asian country.
Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly
- US last week paused all foreign assistance to countries, saying will review if they are consistent with foreign policy
- Washington has invested in Pakistan’s critical energy, economic development and agriculture sectors over the years
KARACHI: Pakistani economists and former diplomats on Tuesday brushed aside the new American administration’s decision to suspend foreign assistance for countries around the world including Pakistan, saying it will not have a significant impact on the South Asian country and could even force Islamabad to undertake much-needed economic reforms.
US State Department confirmed on Sunday that Washington has paused all US foreign assistance funded by or through the State Department and US Agency for International Development (USAID), adding that America would review all foreign assistance programs to ensure if they are efficient and consistent with US foreign policy.
The program affects all recipient countries, including Pakistan, where numerous US-funded programs are currently in progress. For over 70 years, the US-Pakistan development partnership has been instrumental in supporting sectors such as energy, economy, agriculture, education and health. The South Asian country has been grappling with an economic crisis that in 2023 almost pushed it toward a sovereign default.
Washington has invested over $205 million in Pakistan’s energy sector, as per USAID’s website and has also provided assistance to economic development programs such as the Investment Promotion Activity ($16.8 million) and the Pakistan Private Investment Initiative ($43.5 million), aimed at enhancing Pakistan’s business climate and supporting small and medium enterprises (SMEs).
“I’m not sure if the suspension of aid will be very harmful because the real harm to the economy is coming from our own policy governance,” Kaiser Bengali, a leading Pakistani economist, told Arab News.
“On the whole at the macro level, we have seen that in the last 40 years, foreign assistance has not contributed to the economy.”
Bengali said Pakistan’s current economic issues were largely self-created.
“We have created this deficit, balance of trade, balance of payments [crisis],” he said. “We have created a huge debt burden, borrowing loan after loan for the past thirty years and not investing debt funds to increase the productivity of the economy.”
Pakistan’s Information Minister Ataullah Tarar and Khurram Schehzad, adviser to the government on finance, did not respond to Arab News’ request for comment. Pakistan’s foreign officer spokesperson Shafqat Ali Khan said he would address the queries during the foreign office’s weekly press briefing.
Zamir Akram, a former Pakistani ambassador, agreed with Bengali. He said Washington’s assistance to Pakistan is “limited” and its overall impact on the country’s economy is “negligible.”
“Since the US assistance for Pakistan is less and its funding is very low, it doesn’t have great impact,” Akram told Arab News. “We don’t know the amount of project-based assistance but its overall national assistance for Pakistan is negligent. So that’s why it won’t make any impact.”
However, Ahmed Bilal Mehboob, founder and president of Islamabad-based think tank Pakistan Institute of Legislative Development and Transparency (PILDAT), emphasized that the suspension could have significant consequences for Pakistan’s civil society and development sectors.
Mehboob said an estimated 10,000 to 15,000 people were working in organizations working to protect democracy and human rights in Pakistan.
“If funding is halted in the future, not only will thousands be left unemployed but governance and human rights work will also be severely affected,” Mehboob told Arab News.
However, he cited India’s example where civil rights groups grew indigenously, saying that they began receiving minimal foreign funding much later.
“Sincere people will continue their work using local resources,” he said.
Bengali said there might be a silver lining to the suspension of foreign assistance, adding that it may prompt Pakistan to seek local solutions and implement necessary reforms.
“If the entire world stopped funding Pakistan, that would actually be a big favor to the country,” Bengali said. “It would force us to make the necessary reforms and find our own solutions.”
Pakistan says ‘long’ Hajj package under government scheme to cost $3,805
- Long and short Hajj packages prices to cost $3,847 and $4,124, respectively, religion ministry says
- Pakistan introduced 20-25 day duration Hajj program for pilgrims’ convenience for first time this year
ISLAMABAD: Pakistan’s religion ministry announced the final cost of the government’s long and short duration Hajj packages, saying that the former will cost Rs1,075,000 ($3,805) per head while the cost for the shorter duration has been set at Rs1,150,000 ($4,120).
Saudi Arabia has allocated a quota of 179,210 Hajj pilgrims for Pakistan in 2025, with an equal split between the government and private schemes. Pakistan last year set the same cost for Hajj 2024 under the government scheme.
Pakistan’s Ministry of Religious Affairs (MoRA) this month said the government had introduced a “shortened” Hajj program of 20 to 25 days for the first time which would make the journey easier and more accessible for Pakistani pilgrims. Pakistan’s Hajj Policy 2025 also allows pilgrims to pay for the pilgrimage in installments for the first time ever.
“The Ministry of Religious Affairs has announced the final Hajj package prices,” the religion ministry said. “The final price of the long Hajj package has been set at Rs10,75,000 while the short Hajj package has been set at Rs11,50,000.”
The statement added that the third installment of Hajj dues will be collected from Feb. 1-10.
It said limited seats were left for the government’s Hajj scheme, adding that its applications would be accepted until Jan. 30. The statement also mentioned that bookings for the short Hajj scheme had now been filled.
“New applications will be accepted on a first-come first-serve basis until Jan. 30,” it added. “Private Hajj pilgrims can continue booking until Jan. 31.”
The ministry also advised Hajj organizing companies to immediately upload the data of private pilgrims to the government’s e-portal.
The ministry has also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to guide pilgrims. Additionally, the government announced a reduction in airfare, lowering ticket prices for federal program pilgrims to Rs 220,000, down from last year’s Rs 234,000.
Pakistan International Airlines, Saudi Airlines, and private carriers have agreed to transport pilgrims this year.
Pakistani journalists rally against law regulating social media
- Proposed law contains three-year prison sentence, $7,200 fine for sharing fake news
- Pakistan Federal Union of Journalists say law is a “direct attack” on freedom of the press
ISLAMABAD: Hundreds of Pakistani journalists rallied on Tuesday against a proposed law to regulate social media content that they say is aimed at curbing press freedom and controlling the digital landscape.
The law would establish a regulatory authority that would have its own investigation agency and tribunals. Those found to have disseminated false or fake information face prison sentences of up to three years and fines of 2 million rupees ($7,200).
The Pakistan Federal Union of Journalists led rallies in cities including Islamabad, Karachi and Lahore, to demand the government withdraws the bill, which has been passed by parliament but has yet to be signed into law by the president.
“It is a direct attack on press freedom,” PFUJ President Afzal Butt said at the rally in Islamabad, before police blocked him and other protesters from marching toward the Red Zone, which houses the prime minister’s secretariat, parliament and diplomatic offices.
“Our movement will continue until the law is revoked.”
Digital media in Pakistan has already been muffled with measures by telecom authorities to slow down Internet speeds, and social media platform X has been blocked for more than a year.
Reporters Without Borders, an organization that defends press freedom, ranked Pakistan at number 152 out of 180 on its 2024 world Press Freedom Index. The group also says Pakistan is one of the most dangerous places for journalists to work.
Parliament passed the amendments to the law known as Pakistan Electronic Crimes Act last week.
The government has defended the new regulations, saying the law is being introduced to block fake and false news.
