Shehbaz Sharif becomes prime minister of Pakistan, nation politically divided and in economic crisis

This handout photograph taken and released on March 3, 2024 by the Pakistan National Assembly, shows Pakistan's former Prime Minister Nawaz Sharif (front L) and leader of the Pakistan Muslim League (PML-N) party greeting his younger brother and newly-elected Pakistan's Prime Minister Shehbaz Sharif at the Parliament House in Islamabad. (Photo courtesy: Pakistan National Assembly)
Short Url
Updated 03 March 2024
Follow

Shehbaz Sharif becomes prime minister of Pakistan, nation politically divided and in economic crisis

  • PM Sharif lists frail economy and precarious security situation as challenges in his maiden speech, vows to fix them through ‘strong will’
  • Political analysts urge PM to constitute parliamentary committee to probe vote-rigging claims as opposition demands release of members

ISLAMABAD: Pakistan’s newly elected lower house of parliament on Sunday elected Shehbaz Sharif as prime minister for a second time, putting him back in a role he had stepped down from ahead of general elections on Feb. 8.
Sharif, the candidate for his Pakistan Muslim League-Nawaz (PML-N) and coalition allies, secured a comfortable win over Omar Ayub of the Sunni Ittehad Council (SIC), backed by the Pakistan Tehreek-e-Insaf (PTI) party of jailed former PM Imran Khan.
Elections last month threw up a hung National Assembly and have been followed by weeks of protests by opposition parties over allegations of rigging and vote count fraud.
In his first speech as PM, Sharif, 72, spoke of Pakistan’s burgeoning debt, saying it would be his government’s top priority to resolve the economic woes of the nation of 241 million people.
“The parliament that we are sitting in, even the expenses of its proceedings are being paid through loans … Your salary and the salaries of all these people are being paid through loans,” the new PM said, as PML-N lawmakers cheered and opposition members chanted slogans against the leader of the house.

“We will make Pakistan great and raise our heads high and move forward.” 
General visitors were not allowed into the session as speaker canceled the passes to avoid any untoward incident in view of political polarization in the country.
Sharif, the younger brother of former three-time premier Nawaz Sharif, played a key role in keeping together a coalition of disparate parties for 16 months after parliament voted Imran Khan out of office in April 2022, and in securing a last gasp International Monetary Fund (IMF) bailout deal in 2023.

“CHALLENGES”
Independent candidates backed by Khan gained the most seats, 93, after the elections, but the PML-N and the Pakistan Peoples Party (PPP) of the Bhutto dynasty agreed to an alliance to form a coalition government on Feb. 20. No single party won a majority.
The Sunni Ittehad Council backed by Khan alleges that the election was rigged against it and has called for an audit of the polls. Lowering political temperatures will thus be a key challenge for Sharif as Khan maintains mass popular support in Pakistan, and a continued crackdown on his party and his remaining in jail would likely stoke tensions at a time when stability is needed to attract foreign investment to shore up the economy.
Sharif’s main role will also be to maintain ties with the military, which has directly or indirectly dominated Pakistan since independence. Unlike his elder brother, who has had a rocky relationship with the military in all his three terms, the younger Sharif is considered more acceptable and compliant by the generals, most independent analysts say.
For several years, the military has denied it interferes in politics. But it has in the past directly intervened to topple civilian governments three times, and no prime minister has finished a full five-year term since independence in 1947.
Sharif also takes over at a time when the new government will need to take tough decisions to steer the country out of financial crisis, including negotiating a new bailout deal with the IMF. The current IMF program expires this month. A new program will mean committing to steps needed to stay on a narrow path to recovery, but which will limit policy options to provide relief to a deeply frustrated population and cater to industries that are looking for government support to spur growth.
Inflation touched a high of 38 percent with record depreciation of the rupee currency under Sharif’s last government, mainly due to structural reforms necessitated by the IMF program. Pakistan continues to be enmeshed in economic crisis with inflation remaining high, hovering around 30 percent, and economic growth slowing to around 2 percent.
Other big moves by Sharif will include the privatization of loss-making state-owned enterprises such as the flagship carrier Pakistan International Airlines (PIA). The Sharifs have close ties with rulers in Saudi Arabia and Qatar, which could help in securing investments in several projects Pakistan has lately showcased for sale.
Although defense and key foreign policy decisions are largely influenced by the military, Sharif will have to juggle relations with the US and China, both major allies. He is also faced with dealing with fraying ties with three of Pakistan’s four neighbors, India, Iran and Afghanistan.
Pakistan is also facing a troubling rise in militancy, which Sharif’s government will have to immediately tackle.
“There are certainly difficulties but nothing is impossible if there is a will to do,” Sharif said in his maiden speech.
“It is a long journey, thorny journey, full of hurdles but those nations who surmounted these huge obstacles, they became again, one of the most growing nations around the world.”
Speaking on the floor of the house, Ayub described the Feb 8 election as a “selection,” claiming the coalition knew that his party’s mandate was stolen in polls.
“You talk about rule of law, but you never even enforced rule of law,” he said, referring to the prime minister.
He said more than 10,000 PTI workers and supporters were behind bars in the country and called for the release of his party’s leadership, including Khan and his wife Bushra Bibi, saying they were all “political prisoners.”
Political analysts have urged all parliamentary parties, including the PTI-SIC opposition alliance and the government’s coalition partners, to sit together in parliament to devise a strategy to overcome the looming challenges for the good of the people.
“The government should constitute a parliamentary committee to investigate the rigging allegations to the satisfaction of the opposition,” Sohail Warraich, a political analyst and television host, told Arab News.
“Pakistan is faced with multiple challenges, including political and economic instability, therefore the political forces should join their hands to address these crises, instead of quarrelling and hooting in parliament,” he said.
“This is just the start of the new government, so let’s hope for the best.”
“CAN-DO ADMINISTRATOR”
Sharif, born in the eastern city of Lahore, belongs to a wealthy Kashmiri-origin family that was in the steel business. He started his political career as the chief minister of Punjab in 1997 with a signature “can-do” administrative style. Cabinet members and bureaucrats who have worked closely with him call him a workaholic.
As chief minister, the younger Sharif planned and executed a number of ambitious infrastructure mega-projects, including Pakistan’s first modern mass transport system in Lahore.
He was caught up in the national political upheaval when his brother was ousted from the premiership by a military coup in 1999 and he went into exile in Saudi Arabia.
Sharif entered the national political scene again when he became the chief of the PML-N after the elder Sharif was found guilty in 2017 on charges of concealing assets related to the Panama Papers revelations. The Sharifs have been emboriled in multiple corruption cases over the decades, which they say are politically motivated.
Married twice, Shehbaz Sharif has two sons and two daughters from his first marriage. Only one of his sons, Hamza, is in politics and was briefly CM of Punjab in 2023.

With inputs from Reuters


Pakistan stocks surge by more than 3,000 points on hopes of policy rate cuts

Updated 30 December 2024
Follow

Pakistan stocks surge by more than 3,000 points on hopes of policy rate cuts

  • Investor activity remained vibrant on Monday, with a total volume of 1,058 million shares traded
  • Pakistan cut its key policy rate by 200 basis points to 13 percent on Dec. 16, marking fifth straight reduction

ISLAMABAD: The Pakistan Stock Exchange (PSX) opened the week on a positive note and surged by more than 3,000 points on Monday, amid hopes of further policy rate cuts.
The benchmark KSE-100 index soared by 3,907 points, or 3.51 percent percent, to close at 115,258 points, compared to Friday’s close of 111,351 points.
Investor activity remained vibrant, with a total volume of 1,058 million shares traded and a turnover of Rs40.8 billion, while hopes of further policy rate cut boosted market confidence.
“This upward momentum was fueled by optimism surrounding anticipated increases in equity fund allocations by local institutions ahead of the new year,” Topline Securities said in its market review.
“Adding further impetus was a statement from the finance minister over the weekend, suggesting a potential decline in interest rates to single-digit levels in the future.”
Pakistan’s central bank cut its key policy rate by 200 basis points to 13 percent on Dec. 16, it said in a statement. This was a fifth straight reduction since June as the country keeps up efforts to revive a sluggish economy with inflation easing.
The move followed cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 900 bps since June.
Pakistan’s economy also grew by 0.92 percent in the first quarter of the fiscal year 2024-25, despite a contraction in the industrial sector, according to data approved by the National Accounts Committee, and released by its Statistics Bureau on Monday.
The growth was driven by positive performances in the agriculture and services sectors, which grew by 1.15 percent and 1.43 percent, respectively, in the first quarter of the fiscal year which ends in June 2025.


Pakistan reports 68th polio case of this year amid virus resurgence

Updated 30 December 2024
Follow

Pakistan reports 68th polio case of this year amid virus resurgence

  • Pakistan on Monday began a week-long anti-polio vaccination in worst affected Balochistan province
  • Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world





ISLAMABAD: Pakistan has reported another case of polio virus in its northwestern Khyber Pakhtunkhwa (KP) province, authorities said on Monday, taking the nationwide tally to 68 this year.
Polio is a paralyzing disease that has no cure. Multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five is essential to provide children high immunity against this terrible disease.
The Regional Reference Laboratory for Polio Eradication at the National Institute of Health (NIH) Islamabad confirmed the wild poliovirus type 1 (WPV1) case in KP’s Dera Ismail Khan district. This is the 10th polio case of the district this year.
“Pakistan is responding to the resurgence of WPV1 this year,” the country’s polio program said in a statement. “It is crucial for parents to ensure vaccination for all their children under the age of five to keep them protected.”
Of the 68 cases reported this year, 27 were from Balochistan, 20 from Khyber Pakhtunkhwa, 19 from Sindh, and one each from Punjab and Islamabad, according to the polio program.
It said a sub-national polio vaccination campaign was conducted across Punjab, Sindh, KP, Azad Kashmir, Gilgit-Baltistan and Islamabad on December 16–22, vaccinating over 42 million children.
The Balochistan government had postponed the anti-polio drive for two weeks due to security threats and a lack of preparedness stemming from a boycott of the campaign by provincial health staff.
“The campaign’s second phase started today [Monday] in Balochistan,” the polio program said. “To keep children safe, it is critical for parents to welcome vaccinators among them and bring their children forward for vaccination.”
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world.


Pakistan’s economy grows 0.92 percent in Q1 of ongoing fiscal year

Updated 30 December 2024
Follow

Pakistan’s economy grows 0.92 percent in Q1 of ongoing fiscal year

  • The country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the IMF
  • The growth was driven by positive performances in agriculture and services sectors, which grew by 1.15 percent and 1.43 percent, respectively

KARACHI: Pakistan’s economy grew by 0.92 percent in the first quarter of the fiscal year 2024-25, despite a contraction in the industrial sector, according to data approved by the National Accounts Committee, and released by its Statistics Bureau on Monday.
The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.
The growth was driven by positive performances in the agriculture and services sectors, which grew by 1.15 percent and 1.43 percent, respectively, in the first quarter of the fiscal year which ends in June 2025.
Pakistan’s economy grew by 2.69 percent year-on-year in the first quarter of the previous 2023-24 fiscal year.
However, the industrial sector contracted by 1.03 percent, mainly due to a decline in mining and quarrying activities during July-September, read the report.
The committee compiling the national accounts approved the introduction of quarterly estimates of expenditure of the economy.
On the basis of latest figures of the national accounts aggregates for the last fiscal year, the overall size of the economy stood at 105.6 trillion Pakistani rupees ($379.31 billion).
Annual per capita income in rupees was recorded at 472,263 Pakistani rupees ($1,696.35).
The committee also approved an updated annual growth rate for the last fiscal year 2023-24, which stood at 2.50 percent, slightly lower than the previously estimated 2.52 percent.


Pakistan’s new Gwadar airport set to launch flights to Muscat from Jan. 10

Updated 30 December 2024
Follow

Pakistan’s new Gwadar airport set to launch flights to Muscat from Jan. 10

  • The Chinese-funded airport is capable of handling A-380 aircraft and accommodating up to 4 million passengers annually, PM’s Office says
  • The start of operations at Gwadar airport was delayed because of security review due to militant attacks in Pakistan’s Balochistan in August

ISLAMABAD: Pakistan’s new Gwadar International Airport is set to begin flights to Muscat from January 10, the Pakistan prime minister’s office announced on Monday, following a months-long delay in the opening of the airport.
A security review prompted by deadly attacks by separatist militants in Balochistan in August delayed the airport’s opening to the end of this year. The $200-million Chinese-funded airport, which will handle both domestic and international flights, is expected to become one of Pakistan’s largest, according to the Pakistan Civil Aviation Authority.
China has pledged over $65 billion in infrastructure, energy and other projects in Pakistan under the China Pakistan Economic Corridor (CPEC). Part of President Xi Jinping’s Belt and Road Initiative, the program in Pakistan is also developing a deep-water port close to the new airport in Gwadar, a joint venture between Pakistan, Oman and China that is close to completion.
On Monday, Prime Minister Shehbaz Sharif presided over a meeting to discuss the airport’s operations and directed authorities to develop a strategy to establish it as a major transit hub, emphasizing the need to improve road connections between the airport and other parts of the country, particularly Balochistan.
“Flights from Gwadar to Muscat will start from Jan.10 next year,” the PM’s office said in a statement. “The Gwadar airport can handle A-380 aircraft and will be capable of accommodating 4 million passengers annually.”
The statement noted that the Gwadar International Airport has obtained necessary certifications from the Pakistan Airports Authority. Additionally, personnel from the Airports Security Force, Pakistan Customs, Anti-Narcotics Force, Federal Investigation Agency, and Border Health Services have been deployed at the airport.
The Pakistan International Airlines (PIA) plans to increase flights between Karachi and Gwadar to three times a week, while discussions are ongoing with private airlines and carriers from China, Oman and the United Arab Emirates (UAE) to launch both domestic and international services, according to the PM’s office. The airport will feature various facilities, including cold storage, cargo sheds, hotels and shopping malls, with banking services arranged through the State Bank of Pakistan.
Although no Chinese projects were targeted in militant attacks in August, they have been frequently attacked in the past by separatists who view China as a foreign invader trying to gain control of impoverished but mineral-rich Balochistan, the site of a decades-long insurgency.
Recent attacks, including one in which two Chinese workers were killed in a suicide bombing in Karachi, have forced Beijing to publicly criticize Pakistan over security lapses and there have been widespread media reports in recent weeks that China wants its own security forces on the ground to protest its nationals and projects, a demand Islamabad has long resisted.
In his remarks, Sharif highlighted that the Gwadar International Airport symbolized the strong China-Pakistan friendship, expressing gratitude to Beijing for constructing an airport with international standards and modern facilities. He also directed the implementation of comprehensive security measures at the airport.
The meeting was attended by Defense Minister Khawaja Asif, Law Minister Azam Nazeer Tarar, Economic Affairs Minister Ahsan Khan Cheema, Finance Minister Muhammad Aurangzeb, and senior government officials. Deputy PM Ishaq Dar, along with Federal Minister for Privatization, Investment, and Communications Abdul Aleem Khan, also participated via video link.


Pakistan, Kenya agree to promote free trade amid Islamabad’s push for economic growth

Updated 30 December 2024
Follow

Pakistan, Kenya agree to promote free trade amid Islamabad’s push for economic growth

  • Pakistan to export pink salt, marble and cement to Kenya under fresh agreement, says state media
  • Islamabad has sought to bolster international trade in its bid to achieve sustainable economic growth

ISLAMABAD: Pakistan and Kenya on Monday agreed to promote free trade between their countries, state-run media reported on Monday, as Islamabad seeks to achieve sustainable growth and attract investment in its vital economic sectors. 

After narrowly escaping a sovereign default last year before clinching a last-gasp International Monetary Fund (IMF) bailout program, Pakistan has sought to enhance business and investment ties with regional allies and countries such as Russia, Central Asian states and Gulf nations to escape a prolonged macroeconomic crisis. 

According to Pakistan’s Ministry of Foreign Affairs, Kenya is one of Pakistan’s largest African trading partners. Trade between the two countries is dominated by two commodities, rice and tea. Pakistan is the largest buyer of Kenyan tea in the world while Kenya is the largest destination for Pakistani basmati and non-basmati rice in the world.

“Pakistan and Kenya have agreed on a free trade agreement and mutual cooperation to enhance business and investment opportunities,” state broadcaster Radio Pakistan said. “Under the agreement, Pakistan is expected to export pink salt, marble and cement to Kenya while bilateral trade in pharmaceuticals will also be increased.”

The fresh agreement between the two countries is expected to foster economic stability and growth, apart from enhancing their global market positions, Radio Pakistan said. It added that the agreement will also help lower prices, develop industries and increase business opportunities in both Pakistan and Kenya. 

Islamabad and Nairobi established a Joint Ministerial Commission in 1992. Till date, three sessions of the commission have been held since then. The two sides have also established a Joint Trade and Investment Committee (JTIC), the first session of which was held in April 2021.

Pakistan’s total trade with Africa was recorded at $ 4.44 billion in 2022-23 of which $ 2.89 billion were imports and $ 1.55 billion were exports. The top three exports destinations for Pakistan in Africa are Kenya, South Africa, and Tanzania. Pakistan’s major exportable items to African countries include rice, textile and clothing, pharmaceuticals, cement, agriculture machinery and paper. 

The South Asian country mainly imports coal, petroleum, diphosphorus, tea, cotton and copper from African countries in return.