ISLAMABAD: Pakistan’s newly-formed ruling alliance is yet to finalize its finance minister, the person who has to lead an immediate effort to negotiate a new International Monetary Fund (IMF) bailout, sources familiar with the discussions said.
The struggling $350 billion economy has a narrow path to recovery and the current IMF agreement expires on April 11, with critical external financing avenues linked to securing another extended program.
Former four-time finance minister Ishaq Dar remains the top contender, according to two sources in his Pakistan Muslim League-Nawaz (PML-N) party, which is leading the coalition.
PML-N’s Shehbaz Sharif has been nominated by the alliance to be prime minister in an election scheduled for March 3. He will announce his cabinet, including the finance minister, shortly after being elected.
But Dar is not the only candidate being considered, the sources said. Despite being a relative of, and close aide to, PML-N chief Nawaz Sharif, many political allies have criticized Dar’s handling of the economy in the last coalition set up.
He, however, has defended his actions, saying he had to take tough measures to avert a sovereign default by securing the IMF program, which former Prime Minister Imran Khan had scuttled days before leaving his office, a charge Khan denies.
Pakistan struggled for over four months to lock in the stand-by arrangement last summer when Dar was finance minister, and it took the intervention of his prime minister, Shehbaz Sharif, to secure a last-ditch deal.
Dar also regularly criticized the IMF on public platforms in the middle of negotiations, and has long favored market interventions to prop up the Pakistani rupee – something the IMF has warned against.
If Dar doesn’t get the portfolio, his party might consider creating a position of deputy prime minister for him, one of the sources in the PML-N said.
Also being considered are caretaker Finance Minister Shamshad Akhtar, a former central bank governor, who is overseeing key policy measures under the current IMF program, both sources said.
Akhtar has been a key part of the caretaker set up that has been praised by the IMF for “decisive policy efforts” to maintain stability.
Another name being considered is Muhammad Aurangzeb, president and chief executive officer of the country’s largest bank, Habib Bank Limited, the sources said.
Aurangzeb had also served as the CEO of JP Morgan’s Global Corporate Bank based in Asia.
Akhtar did not respond to a Reuters request for a comment and Aurangzeb’s HBL said it would not comment on “rumors and speculations.”
A PML-N spokesperson did not respond to a request for comment.
Dar himself told reporters before the parliament’s inaugural session on Thursday that there was no decision yet when asked if he would be the choice for finance minister again.
PML-N senior leader Irfan Siddiqui told the local newspaper The News that Dar will “most probably” be picked for the post.
Aside from negotiating a new and extended IMF program, the new finance minister will have about three months to prepare a federal budget that will need to strike a difficult balance between tough reforms and rejuvenating a struggling economy.
The PML-N, leading a minority government, will be relying on the support of different parties to pass critical legislation, with alliance partner Pakistan Peoples Party saying it would support the government on an issue-to-issue basis.
Efforts to assuage growing public anger at record inflation hovering around 30 percent will also be challenging with limited fiscal space.
“Pakistan needs someone who has broad and in-depth international experience to introduce the kind of reforms that have helped many other countries to come out of economic crises,” said Yousuf Nazar, a London-based economist and former Citigroup banker.
He, however, declined to say who was best suited.
Race for new Pakistan finance minister heats up ahead of crucial IMF negotiations
https://arab.news/9r8tr
Race for new Pakistan finance minister heats up ahead of crucial IMF negotiations
- Ishaq Dar remains the top contender, though he may be declared deputy PM if he does not get the portfolio
- Pakistan’s interim finance minister and president of the country’s largest HBL bank are also said to be in the race
Pakistani conglomerate Descon announces local incorporation in Saudi Arabia
- Pakistan’s Descon Engineering operates in the engineering, power and chemical sectors
- It has a long-standing strategic partnership with the Olayan Saudi Holding Company
KARACHI: Pakistan’s Descon Engineering, which operates in the engineering, power and chemical sectors, on Tuesday announced the incorporation of Descon Engineering Arabia, a registered entity in the Kingdom of Saudi Arabia, in partnership with its long-standing strategic partner, Olayan Saudi Holding Company (OSHCO.)
OSHCO is a Saudi-based diversified business enterprise with commercial and industrial operations spread across Saudi Arabia and the wider Middle East and North Africa regions. The company’s portfolio includes more than 25 companies operating in five sectors, namely, food and beverages, restaurants, health and personal care, information and communications technology (ICT), and energy.
Descon, a group of companies headquartered in the eastern Pakistani city of Lahore, is active in UAE, Qatar, Saudi Arabia, Kuwait, Oman, Iraq, and South Africa.
“This significant development reaffirms Descon’s continued commitment to the Kingdom and highlights its focus on localization within Saudi Arabia,” Descon said in a statement.
“Through Descon Engineering Arabia, the company is further expanding its regional footprint, reinforcing its position as a trusted and established service provider dedicated to meeting the needs of customers across the Kingdom.”
The company said the “new chapter” had strengthened its resolve to make a broader global impact, ensuring enhanced value delivery to clients in Saudi Arabia, while supporting the development of local talent and capacity building.
“As we establish Descon Engineering Arabia in partnership with OSHCO, we reaffirm our commitment to the Kingdom of Saudi Arabia and its vision for sustainable growth. This step represents a deepening of our long-standing relationship with the region, enabling us to deliver tailored solutions while contributing to local talent development and capacity building,” Taimur Saeed, CEO of Descon Engineering, said.
“We look forward to fostering stronger collaborations and continuing to serve the Kingdom with the reliability and expertise that have defined our journey for nearly five decades.”
Through Descon Engineering Arabia, Descon Engineering is positioned to deliver even greater value, continuing its “dedication to excellence and local growth” for customers in Saudi Arabia and the region, the company added.
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.
