KARACHI: Pakistan’s newly appointed finance minister, Shaukat Tarin, received a vote of confidence from some of the country’s most renowned economic experts on Sunday, as the reportedly ‘aggressive’ banker-turned politician faces the daunting challenge of spurring growth and curtailing inflation while meeting conditions attached with a $6 billion International Monetary Fund (IMF) program.
Pakistan’s Prime minister Imran Khan on Friday reshuffled his cabinet, appointing Tarin as Minister for Finance and Revenue. He is the fourth finance chief since the Pakistan Tehreek-e-Insaf (PTI) government came into power in 2018.
Before the formal announcement of Tarin’s appointment as finance minister, PM Khan met with financial experts to introduce his new appointee. Those who attended the meeting hard-talked the new finance minister about his economic vision.
“He is aggressive,” Samiullah Tariq, head of research at Pakistan Kuwait Investment (PKI), who attended the meeting, told Arab News.
“He wants to bring the growth rate to 6-7% to create more jobs,” he added.
The central bank of Pakistan expects that economic growth will be around 3% during the current fiscal year ending in June.
Those who attended the meeting say the new finance minister has targeted 10-12 areas for improvement, including energy, saving and economic growth.
“Out of these targets, if they achieve at least six, that would be a major turnaround,” Tariq said.
“Tarin also hopes to avail opportunities being offered by CPEC. During the meeting, he said China was offering 85 million jobs worldwide and Pakistan can grab at least 10 million,” Tariq said.
Earlier in its tenure, the PTI government has appointed Asad Umar, Dr. Abdul Hafeez Shaikh, and Hammad Azhar as finance ministers.
Tarin, 68, a banker-turned-politician, served as finance minister between 2008 and 2010 in the government of Pakistan Peoples Party (PPP) and played a crucial role in helping the country avert a default by securing a bailout from the IMF.
He has publicly called for the renegotiation of the IMF bailout program, and people familiar with Tarin say they are confident the incumbent finance minister will overcome current challenges.
“From member of advisory council to becoming federal finance minister to becoming member of National Assembly or Senate, Shaukat Tarin can succeed in overcoming numerous challenges on the economic front,” Dr Ikram ul Haq said, a senior economist told Arab News.
“The biggest challenge (for him) is meeting IMF conditions without hampering growth. This is not an easy task. They are no out of the box solutions,” he added.
Dr. Khaqan Najeeb who has served as advisor to the ministry of finance, said that the economic game plan at this stage should preserve, yet deliver beyond the IMF program.
“It should have at its heart a push for moving the economy to a higher growth trajectory,” he said and added: “Sensible economic governance is to keep the long-term perspective in mind, yet know the urgency of solving current issues.”
Pakistan needs to push on with the IMF program to meet its annual refinancing needs of around $25 billion.
One of the key reasons cited for the ouster of Dr Abdul Hafeez last week was his failure to tame inflation, which has increased by 9.1% on a year-on-year basis in March 2021, according to senator Shibli Faraz, then information minister.
Dr. Najeeb emphasized the need to coordinate a government approach to address immediate concerns including easing the supply of food items, dealing with issues of power sector efficiency, raising tax compliance and broadening the taxpayer base.
But experts also added that until fiscal consolidation is achieved and the debt trap is overcome, higher growth paths cannot follow.
For this, long-delayed and much-needed fundamental structural reforms are needed in tax administration, a rational tax policy and drastic cuts in wasteful and unproductive expenditures.
'He’s aggressive:' Experts weigh in on Pakistan’s new finance minister and challenges ahead
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'He’s aggressive:' Experts weigh in on Pakistan’s new finance minister and challenges ahead
- Pakistan needs to push on with IMF program to meet annual refinancing needs of $25 billion
- Tarin wants to spur growth rate to 6-7%, insiders say
Pakistan proposes anti-terror law changes, drawing criticism from lawyers, rights activists
- Draft law seeks to empower state agencies to detain suspects for three months for involvement in militancy
- Experts say the law can be used against dissidents and activists as it provides blanket detention powers
ISLAMABAD: The government has proposed amendments to Pakistan’s anti-terrorism law to empower military and civilian armed forces by granting them the authority to detain suspects for up to three months, with lawyers and rights activists on Saturday calling the changes a violation of basic constitutional and human rights.
Interior Minister Mohsin Naqvi introduced the bill in the National Assembly a day earlier, saying it would bolster national security and prevent potential militant attacks. The draft law requires separate approval by both houses of parliament with a simple majority to become law.
The Anti-Terrorism Act of 1997 was last amended in 2014, allowing the government and authorized civilian armed forces to conduct preventive detention of individuals suspected of involvement in militant activities.
The provision gave the law enforcement agencies the power to deal with security threats by detaining suspects for up to three months, enabling thorough investigations to prevent potential terrorist acts. However, the amendment included a sunset clause, limiting its validity to two years, which expired in 2016.
“The current security situation requires a robust response that goes beyond the existing legal framework,” the draft law said, adding that erstwhile amendments of the anti-terrorism act were required to be “reinserted to empower the government, armed forces, and civil armed forces with the necessary authority to detain individuals who pose a significant threat to national security.”
“This provision would allow for the preventive detention of suspects based on credible information or reasonable suspicion, thereby disrupting terrorist plots before they can be executed,” the bill added.
The draft law said it would provide law enforcement agencies with the legal backing to conduct “more effective operations against terrorism.”
“It would facilitate the use of Joint Interrogation Teams (JITS), composed of members from various law enforcement and intelligence agencies to conduct comprehensive inquiries and gather actionable intelligence,” the draft law said.
Legal experts and human rights activists said the proposed law would likely be used against human rights activists and dissidents, as it grants blanket powers to the armed forces and intelligence agencies.
“If this bill is passed, then it will be obviously in clear violation of the basic human rights provided in the constitution,” Barrister Ahmad Pansota told Arab News. “The security forces cannot keep any suspect in an inordinate detention just on the pretext of the national security.”
Pansota noted that the Pakistani constitution offers protection against prolonged detention by law enforcement agencies.
“This law could be struck down by the courts if challenged,” he said.
Ammar Ali Jan, a human rights activist, agreed with him, saying the draft law was designed to bypass objections raised about enforced disappearances of activists and dissidents.
“This law is aimed to provide legal cover to all illegal activities of the law enforcement agencies,” he said.
However, former attorney-general of Pakistan, Ashtar Ausaf, argued that the country faces a “unique kind of terrorism threat,” with militants targeting civilians, polio workers, and law enforcement agencies, and said the law would help combat militancy.
“It is the right of parliament to legislate on any matter of public importance, including protecting the life and property of citizens,” he told Arab News. “The draft law will be thoroughly debated in parliament before a vote, and parliamentarians will naturally consider all constitutional rights of citizens.”
Pakistan’s largest independent power producer expands into lithium mining, battery manufacturing
- Hub Power Company’s subsidiary signed a collaboration agreement with Chinese EV giant BYD this year
- Its lithium exploration is expected to further boost the manufacturing potential of Pakistan’s auto industry
ISLAMABAD: Pakistan’s largest independent power producer is set to enter lithium mining, battery manufacturing and electric vehicle (EV) production under Pakistan’s Special Investment Facilitation Council (SIFC), according to state media on Saturday.
Established in 1991, Hub Power Company (Hubco) has an installed generation capacity exceeding 3,500 megawatts and plans to diversify in other areas.
The planned initiatives, facilitated by the SIFC, a hybrid civil-military body established last year to assist foreign investors, aim to meet the country’s growing demand for batteries and electric vehicles.
A lithium exploration and battery production project is expected to reach completion in 12 to 18 months, meeting the rising demand for rechargeable batteries used in mobile phones, laptops and automobiles.
“Hub Power Company Limited’s exploration of lithium in Pakistan will further increase the manufacturing potential in the country’s auto industry,” Radio Pakistan reported.
“Work on establishing a manufacturing plant to produce electric vehicles in Pakistan is already underway, which will manufacture fifty thousand electric vehicles annually,” it added.
Earlier this year in June, Hubco’s subsidiary Mega Motor Company signed a collaboration agreement with Chinese EV giant BYD Auto Industry to assemble EVs in Pakistan.
Plans for the EV plant, with a projected annual production of 50,000 vehicles, include 30 to 40 percent allocated for export to markets in Australia and Africa.
HUBCO operates a diverse portfolio of power plants, including oil-fired, coal-based and hydropower facilities, and is also involved in coal mining.
Its new initiatives are expected to strengthen its market position, create employment opportunities and boost domestic capacity for battery production for electronic devices.
Pakistan’s northwestern province offers over Rs10 billion to keep national airline under state control
- Khyber Pakhtunkhwa says PIA is a critical state asset that should remain ‘within the national fold’
- Offer comes after PIA’s privatization process led to a low bid that fell far short of the minimum price
KARACHI: Pakistan’s Khyber Pakhtunkhwa (KP) province has formally offered to exceed the highest bid in the sale of Pakistan International Airlines (PIA), saying the national flag carrier should remain under government control to preserve its status, according to a letter from provincial authorities to federal officials that emerged on Saturday.
KP made the offer just a day after the government held the privatization process, receiving the sole bid of Rs10 billion ($36 million) from Blue World City, a real estate development firm, which fell far short of the minimum price of Rs85 billion ($305 million).
Critics, including PIA union representatives and independent analysts, called the low bid an “embarrassment” for the government, with airline employees suggesting Pakistani authorities should expand PIA’s fleet to restore its operational viability.
“On behalf of the Chief Minister ... and the people of KP, we would like to express our earnest interest in participating in the bidding process for the sale of Pakistan International Airlines (PIA),” read the letter from the provincial Board of Investment and Trade. “This letter serves as our formal intent to position the Government of KP as a competitive bidder in this strategic acquisition.”
The letter, which was addressed to Pakistan’s Privatization Minister Abdul Aleem Khan on Friday, emphasized PIA’s importance as “a critical asset that symbolizes our national identity and pride,” adding that the province wished to keep it “within the national fold.”
“The Chief Minister [Ali Amin Gandapur] has directed us to actively pursue this acquisition to ensure the airline remains under the control of the Government of Pakistan rather than transferring to any private or foreign-backed entity,” it continued.
“In line with this commitment, we are prepared to offer a bid that will surpass the current highest offer of PKR 10 Billion by Blue World Consortium, ensuring a strong and competitive position within this process,” it added.
Pakistan decided to move ahead with PIA’s privatization under terms agreed with the International Monetary Fund (IMF) for a 37-month, $7 billion bailout approved in September, aiming to divest over 51 percent of its stake in the financially struggling national carrier.
The KP administration requested a prompt meeting with federal officials to present its detailed proposal and outline its vision for PIA, affirming its readiness to proceed quickly to secure the acquisition.
Despite KP’s proposed plan, provincial ownership of PIA may not align with the privatization’s intended purpose under the IMF agreement, which is to reduce financial burdens associated with state-owned enterprises.
‘He never found peace’: Former Guantanamo detainee from Pakistan dies after years of suffering
- Abdul Rahim Ghulam Rabban died after prolonged illness due to a lack of proper medical care
- Arrested in Karachi in 2002, he spent about two decades at the US prison without ever being charged
KARACHI: A former Guantanamo Bay prisoner from Karachi, who spent about two decades at the detention center without being charged before his return home in February last year, died in his native city on Friday, his brother and a fellow former detainee confirmed on Saturday.
Abdul Rahim Ghulam Rabbani’s death was attributed by his brother, Muhammad Ahmed Ghulam Rabbani, to inadequate medical care during a prolonged illness, which he said extended their suffering even after their transfer to Pakistan.
According to Reprieve, a global legal action non-profit, the brothers endured 545 days of torture in CIA custody following their arrest in Karachi on September 10, 2002, before being transferred to Guantanamo in 2004.
“We spent over twenty arduous years together in Guantanamo,” said the late former Guantanamo detainee’s brother. “On Friday at 2 AM, he passed away in my arms.”
Guantanamo Bay, a US military detention facility established in Cuba to detain suspects in the “War on Terror” after the September 11, 2001, attacks, became notorious for holding prisoners without trials, drawing widespread condemnation.
International human rights groups criticized the facility for violating detainees’ rights to due process, with allegations of extreme interrogation techniques amounting to torture, including waterboarding and prolonged isolation.
Rabbani recalled that both brothers briefly felt relief when they learned they would be handed over to Pakistani authorities, believing their ordeal would end.
“But our suffering continued,” he said. “Over 19 months, we still lack identity cards. My brother had been ill for a long time, but we couldn’t access proper medical care without an ID.”
He added that his brother fell “seriously ill” more than 20 times, attributing it to injections administered upon their arrival at Guantanamo and the extensive torture they endured.
“He suffered such violence that his hand was broken, his leg was broken and his private parts were damaged, ruining his family life,” Rabbani said. “When he passed away, we even faced difficulties in burying him because an ID card was required.”
Overwhelmed by their circumstances, he questioned why they were returned to Pakistan when their own government was unwilling to issue identity documents.
“My dearest brother has left me behind,” he added. “He did not have peace for even a single day after the arrest. What was our crime? What is our crime?”
In the early 2000s, Pakistan apprehended and transferred hundreds of individuals to US custody, claiming they were linked to Al Qaeda. In his 2006 memoir, In the Line of Fire, then-President Pervez Musharraf said his government had received substantial CIA payments for these handovers.
Subsequent analyzes revealed that many of these detainees, mistakenly identified as militants, were likely innocent.
Lahore-based analyst Majid Nizami called the Rabbani brothers’ arrest “a case of illegal abduction by state agencies of Pakistan,” later justified as “mistaken identity.”
“It’s unclear whether this was intentional by Pakistani agencies or a severe negligence,” he told Arab News. “It has not yet been determined who was responsible, and no one seems interested in addressing the issue.”
According to some estimates, Pakistani authorities handed over nearly 370 people to the US after 9/11. The two brothers were among those transferred to American custody for $5,000 each.
Pakistan’s Khyber Pakhtunkhwa to establish power transmission line costing $28 million
- Official says this will be the first time ever that a province will lay a transmission line on its own
- In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat
ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa province has signed an agreement with a private firm to establish a power transmission line in the province, an official said on Saturday.
The power transmission line will be established in one and a half year with a cost of Rs8 billion ($28.8 million), according to Muhammad Ali Saif, KP chief minister’s adviser on information.
In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat to supply power to local industries and national grid.
“Industries will be provided very cheap electricity through the transmission line,” Saif said in a statement. “The completion of its first phase generate Rs7 billion for the province.”
Pakistan has enough installed capacity to meet its demand for electricity, but the South Asian country lacks adequate resources and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses.
In January 2023, the country suffered a nationwide blackout due to a frequency failure in the national grid, which happened because of a major mismatch between demand and supply. It was the second nationwide shutdown in three months.
In November last year, the Asian Development Bank (ADB) approved $250 million loan for Pakistan to help the South Asian country deliver reliable electricity by expanding and improving its power transmission network in the Khyber Pakhtunkhwa and Punjab provinces.
