Pakistan will continue to meet international financial obligations, finance minister assures US delegation

Robert Kaproth (L), Deputy Assistant Secretary of the US Department of the Treasury for Asia meeting the Federal Finance Minister Senator Mohammad Ishaq Dar on January 25, 2023, in Islamabad, Pakistan. (Photo courtesy: @FinMinistryPak/Twitter)
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Updated 26 January 2023
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Pakistan will continue to meet international financial obligations, finance minister assures US delegation

  • Ishaq holds a meeting with US treasury department officials, apprise them on the country’s economic outlook
  • A US official indicated earlier this week Pakistan was free to benefit from discounted Russian energy supplies

ISLAMABAD: Pakistan’s finance minister Ishaq Dar told a visiting United States delegation on Wednesday the government was doing it best to put the country’s economy on a positive trajectory and would continue to fulfil its international financial obligations.

The delegation was led by the deputy assistant secretary of the US Department of Treasury, Robert Kaproth, and included macroeconomists and other US officials.

Pakistan is facing huge economic challenges with a mounting current account deficit, depleting foreign exchange reserves and depreciating national currency. The country has also been reeling from last year’s devastating floods that caused damages of more than $30 billion while striving to generate money from friendly nations and international lending agencies.

Dar welcomed Kaproth and his team at the Finance Division in Islamabad and briefed them on the country’s overall economic outlook. He maintained the government had inherited a weak economy and was trying to reform energy sector and capital market to achieve growth and development.

“The finance minister apprised them on the economic priorities of the government to fix the economy to the right path while fulfilling its international obligations,” said a statement issued by his office after the meeting.

Dar also told the US team about damages caused by the recent floods in Pakistan and how they had impacted the country’s economy. He added the government was handling “all challenges with complete commitment.”

The finance ministry statement said the US official expressed confidence in the policies and programs of the government to bring about economic and financial stability in Pakistan.

He also extended his country’s support and cooperation to the government to deal with the prevailing economic challenges.

Earlier in the week, US State Department spokesperson Ned Price told a media briefing that Washington had been encouraging countries to benefit from discounted oil offered by Russia while answering a question about Pakistan.

Officials in Islamabad have been trying to reduce the country’s import bill by bringing down its energy costs that stood at about $23 billion in the last fiscal year.

Pakistan has also been seeking US help for the resumption of an International Monetary Fund (IMF) bailout program which requires it to carry out painful economic reforms.
 


Government announces Pakistan International Airlines auction on October 1

Updated 20 September 2024
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Government announces Pakistan International Airlines auction on October 1

  • Decision is significant since it has been recommended by IMF to privatize lossmaking state entities
  • PIA is burdened with debt amounting to $2.9 billion and has lost some lucrative routes in recent years

ISLAMABAD: Pakistan’s Privatization Commission Board on Friday announced the auction of the country’s national air carrier on October 1 in an official statement released after holding a meeting to evaluate the ongoing sales process.

The government has been seeking to sell Pakistan International Airlines (PIA), which has been burdened with debt amounting to Rs800 billion ($2.9 billion), after approving several bailout packages at the request of its management to cover operational expenses in the past.

The country initially wanted to finalize the airline’s privatization deal on its Independence Day, August 14, but the process was delayed following requests from bidders awaiting PIA’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which have remained suspended for nearly four years.

“The bidding for PIA’s privatization is scheduled to take place on October 1, 2024,” the statement said.

It informed the board meeting considered the recommendations of its financial adviser to amend the document containing the criteria related to potential bidders to ensure a smoother sales process.

“The board reviewed the current status of PIA’s privatization and considered the financial adviser’s recommendations regarding permissible changes under the Request for Statement of Qualification (RSOQ) terms,” it said.

The Privatization Commission has pre-qualified six bidders, which include Fly Jinnah, a consortium led by YB Holdings (Private) Limited, Air Blue Limited, a consortium led by Pak Ethanol (Private) Limited, Arif Habib Corporation Limited and Blue World City.

The process is also significant since it has been recommended by the International Monetary Fund (IMF) that wants the country to privatize all lossmaking state-owned entities as part of the rationalization of national economy.

Pakistani officials have already taken up the issue of PIA flight restoration to Europe, with Deputy Prime Minister Ishaq Dar describing it as a “major priority” for the government during a five-day visit to London earlier this month.

The suspension of PIA flights followed a 2020 plane crash in Karachi that killed 97 people.

The incident was followed by a controversial statement by a former aviation minister, Ghulam Sarwar Khan, who said that a significant number of Pakistani pilots held fake licenses.

This led the European Union Aviation Safety Agency to impose a ban on PIA.


Constitutional Amendments: In new challenge to government, key Pakistani politician urges judicial reforms

Updated 20 September 2024
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Constitutional Amendments: In new challenge to government, key Pakistani politician urges judicial reforms

  • Government reached out to Maulana Fazlur Rehman to push the constitutional amendment package in parliament
  • Rehman says the package limited the scope of human rights, expanded the role of Pakistan’s powerful military

ISLAMABAD: The chief of a leading Pakistani religio-political party said on Friday he had suggested that the government undertake judicial reforms instead of passing an elaborate constitutional amendments package, posing a new challenge to the ruling coalition of Prime Minister Shehbaz Sharif, which is pushing for the changes. 
The government last week sought to get a package of 52 constitutional amendments passed in parliament but postponed the move after it was unable to gather the two-thirds majority parliamentary votes required, most importantly as it did not get support from Fazl-ur-Rehman, the president of the Jamiat-e-Ulama-e-Islam (JUI-F) party.
The amendments propose increasing the retirement age of superior judges by three years, revisiting the seniority principle in the appointment of the country’s top judge and establishing a federal constitutional court, among other changes.
Opposition parties, mainly the Pakistan Tehreek-e-Insaf (PTI) party of jailed former premier Imran Khan, have criticized the package, calling it an “attack” on the independence of the judiciary. The PTI says the amendments are being done solely to grant an extension to incumbent Supreme Court Chief Justice Qazi Faez Isa, widely believed to be aligned with the ruling coalition and in opposition to its chief rival, the PTI. 
The government has repeatedly said the amendments are not “individual specific.”
“We [Jamiat-e-Ulama-e-Islam] adopted a stance that instead of amending the constitution with individuals in mind, why not head toward judicial reforms?” Rehman said at a televised news conference in Multan.
He said that his party had sought a draft of the constitutional amendment package from the government, saying the government was initially not willing to share it but when it managed to get hold of a copy, it reflected a lack of preparation.
“When we received the copy [of the proposed constitutional amendments] and our lawyers reviewed it, we were deeply saddened by the fact that the constitution, which protects the fundamental rights of every citizen, but over here, human and fundamental rights had been restricted, and the role of [Pakistan’s] military had been significantly expanded.
“Additionally, matters relating to the appointment and transfer of judges, even in the high courts, were alarming. If a judge is not trusted or cannot deliver a favorable decision, they could be immediately transferred, or the case could be reassigned to another judge.”
He said he had met with a key coalition partner, Bilawal Bhutto Zardari, chairman of the Pakistan People’s Party, about the amendments package. 
“We agreed that we could also make a draft [of amendments] and he could also create a draft before sharing them with each other,” Rehman said. 
“We want consensus. The job of parliament is to legislate, bring constitutional legislation, make amendments, and pass laws. This is our job. And we are not ready to accept any restriction on this.”
The issue of the constitutional amendments has raised widespread concerns among opposition parties and independent experts who say the moves are aimed at increasing the government’s power in making key judicial appointments and dealing with the defection of lawmakers during house votes.


Ex-PM Khan’s party to hold Lahore rally today, complains of crackdown on supporters

Updated 20 September 2024
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Ex-PM Khan’s party to hold Lahore rally today, complains of crackdown on supporters

  • PTI says law enforcement agencies have arrested 49 of its leaders and supporters from across the city
  • Party wanted to hold rally at Minar-e-Pakistan monument but designated venue on Lahore’s outskirts

ISLAMABAD: Jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party vowed on Friday to hold a rally in Lahore despite a police crackdown and arrests of its workers and leaders, as the local administration allowed them to hold the public gathering on the outskirts of the city.
The PTI aims to mount pressure on the authorities by holding rallies to get the ex-premier released from prison. Khan has been in jail since August last year on multiple charges including corruption, sedition and terrorism.
Earlier this month, the PTI held a rally on the peripheries of Islamabad after which the local administration registered criminal cases against its leadership for violating their agreement with it. About 10 party lawmakers were arrested from the Parliament House in Islamabad on charges of intimidating the police at the venue of the rally.
Initially, Khan’s party planned to organize the Lahore rally at the historic Minar-e-Pakistan monument, but the district administration gave them a different venue.
“We have got the permission [to hold the rally] in Kahna, Lahore,” Ayesha Ali Bhutta, PTI secretary-information Lahore, told Arab News over the phone. “We are okay with this venue as our primary focus is to hold the rally in Lahore irrespective of the location.”
Prior to getting the permission, she maintained that her party would hold the public gathering under all circumstances.
“We will be holding the rally in Lahore tomorrow, come what may,” she said. “The security agencies have arrested our 49 leaders and workers so far in Lahore in a crackdown, but we are committed to mobilizing the public for a stunning show.”
Speaking to Arab News about the rally, Director of Public Relations of the Punjab Police Syed Mubashar Hussain said his department would perform its usual duties.
“The political party’s leadership is responsible for the security of the rally, and the police will be maintaining law and order in the city as per routine,” he said.
He sidestepped questions about the police crackdown and arrests of PTI workers ahead of the rally.
The PTI secretary-information said the Lahore administration had blocked numerous roads in the city with shipping containers to prevent the movement of the PTI workers to prevent them from visiting the venue.
“We have clear instructions from Imran Khan to hold this rally, and we are ready to organize it on the venue given by the local administration,” she continued.
“The purpose of this rally is to highlight the atrocities of the fascist government against our party workers and leaders, and demand the release of Imran Khan who has been held illegally in jail for over a year now,” she added.
The Lahore High Court had directed the city’s deputy commissioner to decide by 5pm on the PTI’s application for a permission to hold the rally in the city, prompting the district administration to share its decision with the PTI in the evening.
Earlier, the party’s local leadership had reached the Minar-e-Pakistan to make arrangements for the rally, but the local administration denied them the entry.
“Our caravans from Wazirabad and other far-flung areas have already left for Lahore to participate in the rally,” Bhutta said, adding that hundreds of the PTI workers had reached the city to participate in the gathering.
“Some of our caravans will reach Lahore tonight while the remaining will converge on the venue by tomorrow afternoon,” she continued, urging the provincial government to remove all the blockades in the city and release the arrested party workers and leaders ahead of the rally.


Chinese group to set up textile parks in Pakistan, aiming for $5 billion boost in exports

Updated 20 September 2024
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Chinese group to set up textile parks in Pakistan, aiming for $5 billion boost in exports

  • Textile parks will utilize solar energy, modern automated technology and will operate with zero carbon emissions
  • The foundation stone of the parks will be laid by the end of the year and they will employ up to 500,000 people

ISLAMABAD: A major Chinese business group unveiled its plan to set up textile parks in two Pakistani provinces during a meeting with Prime Minister Shehbaz Sharif on Friday, saying these “international-standard” facilities will help generate up to $5 billion in textile exports from the country.
China’s Ruyi Shandong Group, one of the largest textile and clothing manufacturers, has expanded globally over the past decade through acquisitions and investments. It has also benefited from the multibillion-dollar China-Pakistan Economic Corridor (CPEC) in the past by investing in a coal power plant in the country.
The group’s chairman, Qiu Yafu, held a meeting with the prime minister to discuss the investment proposal and highlight its details.
“Ruyi Group will establish international-standard textile parks in Sindh and Punjab provinces, inviting around 100 major Chinese textile industries to invest,” he said in his briefing, according to an official statement circulated after the meeting.
“The primary focus of these textile parks is to boost Pakistan’s textile exports and make Pakistan a global hub for textiles and garments,” he continued.
The Chinese businessman added these parks will utilize solar energy, operate with zero carbon emissions and employ modern automated technology.
“In the first phase, these parks are expected to generate $2 billion in exports, with $5 billion anticipated in the second phase,” he noted. “The parks will create employment opportunities for 300,000 to 500,000 local individuals.”
According to the briefing, the foundation stone for the textile parks will be laid by the end of the year, with completion expected within three years.
Ruyi Group will also establish wholesale commodity centers in both Karachi and Lahore.
It was decided during the meeting to establish working groups in Islamabad and Beijing to advance matters between Pakistan and the Chinese business group.
“China has always stood by Pakistan in difficult times,” the prime minister said during the meeting. “Economic relations between China and Pakistan are growing stronger with each passing day.”
He also formed a special committee headed by Deputy Prime Minister Ishaq Dar to oversee the initiative.
A memorandum of understanding was signed between Pakistan’s Board of Investment and Ruyi Shandong Group regarding the establishment of the parks, with the prime minister in attendance.


PCB shifts second Test between Pakistan and England from Karachi to Multan

Updated 20 September 2024
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PCB shifts second Test between Pakistan and England from Karachi to Multan

  • The decision is taken due to the renovation of the cricket stadium in Karachi
  • England will be visiting Pakistan for three-match series between Oct. 7-28

ISLAMABAD: The Pakistan Cricket Board (PCB) on Friday announced a revised schedule of the International Cricket Council (ICC) World Test Championship between Pakistan and England, changing the venue of the second Test beginning on October 15 from Karachi to Multan due to the renovation of the National Bank Stadium.

England will be visiting Pakistan from October 7 to 28 and play three Tests, with the first and second match scheduled to be held in Multan between October 7 and 19 followed by the third Test in Rawalpindi from October 24 and 28.

“The second Test, which was originally planned at the National Bank Stadium in Karachi from Oct 15-19, will now be played at the Multan Cricket Stadium,” the PCB said in a statement. “The match has been shifted from Karachi to Multan as the National Bank Stadium is undergoing a major facelift for next year’s ICC Champions Trophy 2025.”

The remaining two Tests will be played as originally planned in Multan and Rawalpindi, it said.

The PCB said it was thrilled to welcome the England men’s cricket team back to Pakistan.

“Despite minor adjustments, we are committed to supporting fans and ensuring a memorable tour,” it said. “We look forward to a fiercely competitive Test series and showcasing Pakistan’s renowned hospitality.”

The England cricket team last visited Pakistan in 2022-2023, marking their first tour in 17 years that consisted of seven Twenty20 International matches, followed by three-match Test series.

England won the Tests 3-0, achieving a historic clean sweep in Pakistan.

Prior to that, England’s last visit to Pakistan was in 2005. They were also scheduled to visit in 2021 but pulled out at the last minute due to security concerns after New Zealand canceled their tour.