ISLAMABAD: Pakistan’s outgoing President, Dr. Arif Alvi, leaves behind a legacy of political polarization, controversial ordinances and unflinching loyalty to his party leader, the jailed ex-premier Imran Khan, as termed by political parties and analysts on Friday, who called his over five-year tenure partial and contentious.
Dr. Alvi, who was sworn in as the 13th head of the Pakistani state on September 9, 2018, saw his five-year term end last year. However, he remained in office until Friday due to the absence of national and provincial legislatures, which, along with the Senate, constitute the electoral college for the presidency.
The presidential election is now set for today, Saturday, with the ruling alliance nominating the former president and co-chairman of the Pakistan Peoples Party (PPP) Asif Ali Zardari against Pashtoonkhwa Milli Awami Party chief Mahmood Khan Achakzai. The latter is backed by Khan’s Pakistan Tehreek-e-Insaf (PTI) party and the Sunni Ittehad Council (SIC) alliance for the coveted position.
A dentist by profession, Alvi entered politics in 1979 to participate in the elections on the Jamaat-e-Islami (JI) ticket from Karachi, but the contest was called off following a military coup by former army chief General Zia-ul-Haq. He later resigned from JI and became one of the founding members of PTI in 1996, eventually serving as its Sindh president.
Despite unsuccessful bids for a provincial seat in Karachi in the 1997 and 2002 elections, and PTI’s boycott of the 2008 national elections under another military ruler, General (r) Pervez Musharraf, Alvi’s political journey ascended. He secured a National Assembly seat from Karachi in 2013 on a PTI ticket and became an active parliament member. In 2018, he won against Muttahida Qaumi Movement-Pakistan (MQM-P) heavyweight Dr. Farooq Sattar for a national seat as PTI gained a majority, enabling it to form a government at the center and in Punjab and Khyber Pakhtunkhwa provinces.
As one of Khan’s closest confidants, Alvi was nominated for the presidency due to his reputation as a hardworking legislator and a loyal party member, although the President’s role in Pakistan is largely ceremonial. While his party lauds him as “one of the best” presidents, his detractors criticize his tenure for allegedly disregarding the constitution.
“I believe he was one of the best presidents we have had in recent times, full of intellect and wisdom,” Zulfi Bukhari, a PTI member and Khan’s close friend, told Arab News. “I wish he had more in his power to help the cause of Imran Khan, democracy and rule of law in Pakistan.”
Conversely, Khurram Dastgir, a senior member of the Pakistan Muslim League-Nawaz (PML-N) and former federal minister, described Alvi’s presidency as “diminished, marred by contempt for the constitution and blatant partisanship.”
“He emasculated Pakistan’s democracy with recurring unconstitutional actions, favoring his party over his symbolic role as the federation’s unifier,” Dastgir commented, criticizing Alvi’s tenure as marred by incompetence and bad faith.
Opponents accuse the President of undertaking “illegal and unconstitutional steps” to serve his party and leader. Alvi dissolved the National Assembly in April 2022 on Khan’s advice, amid a looming no-confidence motion. The Supreme Court later reversed this decision, reinstating the assembly. However, Alvi refrained from administering the oath of office to Prime Minister Shehbaz Sharif, opting for sick leave instead.
Following the recent general elections on February 8, Alvi delayed convening the National Assembly session for the swearing-in of newly elected legislators, attributing his decision to unresolved issues regarding the allocation of reserved seats to the PTI-SIC alliance.
“The President violated his oath and the constitution by taking these illegal and unconstitutional steps to please his party and the leader,” PPP secretary-information Faisal Karim Kundi told Arab News.
“President Alvi is leaving behind a legacy of political polarization as he failed to build consensus among political parties as the head of the state on major issues like the elections,” he continued, adding Alvi neither served his party nor the country well.
Dr. Farooq Adil, a former adviser to the President, noted that Alvi, utilized by his party to issue numerous ordinances, faced criticism for transforming the presidency into an ‘ordinance factory,’ bypassing parliament. Alvi promulgated over 70 ordinances during the PTI’s tenure from August 2018 to April 2022, detracting from the presidency’s stature.
“The president failed to act like a true representative of the state,” he told Arab News. “Instead, he preferred Imran Khan’s loyalty over the national interests in many crucial matters.”
Adil said Alvi would be remembered as a loyal worker of Khan “who reduced the stature of the presidency through his partisan acts.”
Another controversy arose last August when Alvi denied signing two crucial bills, accusing his staff of overriding his authority.
“As God is my witness, I did not sign Official Secrets Amendment Bill, 2023 and Pakistan Army Amendment Bill, 2023 as I disagreed with these laws,” Alvi said in an X post after the government notified both of the bills had become laws.
The bills, which give the authorities more power to prosecute people for acts against the state and its military, were approved by both houses of parliament and sent to the president for his approval.
Alvi’s leader and ex-premier Khan was later charged and handed down 10-year in prison under an earlier version of the Official Secrets Act on charges of leaking state secrets to the public. Dozens of PTI workers and leaders are were also charged under the Army Act for their involvement in violence last year in May when people attacked military installations in different cities following Khan’s arrest in a graft case.
“He was a controversial president not only for the opposition, but also for his party as he preferred to clinging to power instead of resigning from his position when his colleagues and party workers were put behind bars,” Munizae Jahangir, political analyst and TV talk-show host, told Arab News.
However, she lauded his role for speaking up for women’s rights, especially their land rights.
“He won’t be remembered as independent and impartial president,” she added. “He even failed to make an effective gesture through his resignation during the state crackdown on his party.”
Former Pakistan President Arif Alvi leaves legacy of controversy and polarization
https://arab.news/gv44k
Former Pakistan President Arif Alvi leaves legacy of controversy and polarization
- President Alvi retires after serving over five years in office, with his leader and ex-PM Imran Khan in jail with PTI supporters
- Alvi’s critics say he ‘emasculated’ Pakistan’s democracy with unconstitutional steps, prioritized party loyalty over his duties
Pakistan holds interest rate at 11% as Mideast conflict poses new economic challenges
- Central bank maintains cautious stance as heightened geopolitical tensions, volatile global oil prices add new inflation risks
- Leading Karachi-based business and trade body criticizes central bank’s decision, says will ‘dampen’ business sentiment
Karachi: Pakistan’s central bank kept its key interest rate unchanged at 11% on Monday, maintaining a cautious stance, as financial analysts warn heightened Middle East tensions and volatile global oil prices add new risks to the country’s fragile external sector and inflation rate.
A Reuters poll released earlier on Monday had shown analysts revising their expectations for a rate cut in light of Israel’s military strikes on Iran that began on Friday and have since intensified, pushing up global commodity prices.
“The [Monetary Policy] Committee noted some potential risks to the external sector amidst the sustained widening in the trade deficit and weak financial inflows. Moreover, some of the proposed FY26 budgetary measures may further widen the trade deficit by increasing imports,” the central bank said, announcing its decision to leave the rate unchanged.
“In this regard, the Committee deemed today’s decision appropriate to sustain the macroeconomic and price stability.”
Monday’s decision comes days after Pakistan announced its Rs16.7 trillion ($62 billion) annual budget targeting 4.2% growth, up from a provisional estimate of 2.7% for the current year.
The MPC noted that despite the widening trade deficit, the current account remained broadly balanced in April, and foreign exchange reserves rose to $11.7 billion as of June 6 after the completion of the first review under the International Monetary Fund’s Extended Fund Facility. The country expects $14 billion foreign exchange reserves by the end June.
The bank paused its policy rate easing cycle in March, following cumulative cuts totaling 1,000 basis points from a record high of 22%, and resumed it with a 100-basis-point reduction in May.
Inflation in Pakistan has slowed markedly since peaking at around 40% in May 2023. However, last month it rose to 3.5% year-on-year, above the finance ministry’s projection of up to 2%, partly due to the fading of favorable base effects. The central bank projects average inflation between 5.5% and 7.5% for the fiscal year ending this month.
“Going forward, inflation is expected to trend up and stabilize in the target range,” the MPC said.
The escalating tensions in key oil-producing regions have triggered a sharp surge in global oil prices with brent, West Texas Intermediate (WTI) and Arab Light crude oils showing a 12% week-on-week increase and daily spikes exceeding 6%, Arif Habib Ltd, a Karachi-based research firm, said in its latest note.
‘WAIT-AND-SEE’ STANCE
Amreen Soorani, the head of research at Al Meezan Investment Management, said the SBP’s decision was primarily driven by emerging geopolitical risks that had affected international oil prices.
“Even with substantial improvements in Pakistan’s inflation and external account, the central bank seems to have taken a cautious “wait-and-see” stance,” she told Arab News.
The regional tensions, she said, were posing potential challenges to Pakistan’s balance of payment and inflation rate. Cash-strapped Pakistan spent $17 billion on oil imports last year.
Soorani said petroleum was a major driver of Pakistan’s trade deficit, accounting for approximately 30% of all imports and consuming around 55% of export proceeds.
“All else being equal, a $5 per barrel increase in average oil prices for the year would worsen our trade deficit by an estimated $900 million annually,” the analyst said.
Pakistan is closely watching the global oil market, where brent and WTI crude traded at around $73.5 and $70.5 a barrel on Monday and fell 1% after opening lower in the Western markets, Finance Adviser Khurram Schehzad said.
“Global calls for increasing supplies is (are) one of the reasons among potential resolve of the Israel-Iran conflict by the US,” Schehzad said.
Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., said the SBP’s current monetary stance was aligned with the IMF’s recommendation to Islamabad to maintain a sufficiently tight monetary policy to anchor inflation.
“Additionally, the committee may have preferred to wait for greater clarity on the budget measures and their potential impact on inflation dynamics,” he told Arab News.
STOCKS GAIN, RUPEE DECLINES
Pakistani stocks gained by 82 points to close at 122,225 points “despite geopolitical risk amid speculations over SBP policy announcement,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities Ltd, said.
The rupee declined for the fifth consecutive session and inched down 0.07% to Rs283.17 per dollar. Qazi Owais Ul Haq, a currency dealer at Arid Habib Ltd. said Pakistan’s currency was “feeling the heat” as regional tensions surge.
“They are trying to hold the rate but as a third-world country war affects us,” Haq told Arab News.
Pakistan’s top trade body, the Federation of Pakistan Chamber of Commerce & Industry (FPCCI) and the Karachi Chamber of Commerce and Industry, (KCCI) said the central bank’s decision to maintain the policy rate at 11% was disappointing
“The SBP has not only ignored market signals but has also dampened business sentiment at a time when the economy urgently requires a boost,” KCCI President Muhammad Jawed Bilwani in a statement.
Pakistan’s Punjab unveils $18.9 billion budget, increases development spending by 47%
- Punjab allocates $4.40 billion for development budget, $2.88 billion for education and $2.24 billion for health sectors
- Provincial government proposes increase in minimum wage from $131 to $142 per month
ISLAMABAD: Pakistan’s largest and richest Punjab province on Monday unveiled its Rs5.33 trillion [$18.9 billion] budget for the fiscal year 2025-26, increasing its development spending by 47% and refraining from imposing new taxes on the masses.
Punjab, home to more than half of Pakistan’s over 240 million people, plays a dominant role in the national economy. It contributes roughly 60% to Pakistan’s gross domestic product and receives the largest share of federal funds under the National Finance Commission (NFC) Award.
Last year, Punjab’s budget for FY2024–25 was about $19.6 billion, with a development outlay of $3 billion. Punjab’s budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) party of Prime Minister Shehbaz Sharif, which has faced tough economic and governance challenges since forming its government at the center last year.
“The total outlay for [Punjab’s] 2025-2026 budget is Rs5,335 billion [$19.2 billion],” Punjab Finance Minister Mujtaba Shuja-ur-Rehman said while presenting the budget in the provincial assembly.
Rehman said the provincial government was presenting a “record-breaking development budget” this time.
“For which the total amount recommended is Rs1,240 billion [$4.36 billion], which is more than 47% compared to the current financial year,” he added.
The minister said the FY26 budget did not contain any new taxes on the masses, adding that the government wanted to widen the tax net to increase revenue.
Punjab’s own-source revenue is projected at Rs828.1 billion ($2.94 billion), including Rs524.7 billion ($1.86 billion) in tax receipts and Rs303.4 billion ($1.08 billion) in non-tax receipts.
According to budget documents seen by Arab News, the Federal Board of Revenue (FBR) has set a national target of Rs14,131 billion ($50.11 billion), with Punjab’s share estimated at Rs4,062.2 billion ($14.4 billion).
Rehman said the province has proposed a significant increase in education and health budgets to benefit the people of Punjab.
HEALTH, EDUCATION BUDGETS
“The total allocation for the education sector is Rs811.8 billion ($2.88 billion), which is 21% higher than last year, where development allocation stands at Rs148.5 billion ($526 million), the highest in the province’s history and 127% higher than the previous year,” he said.
He said Punjab would launch new education projects while continuing existing ones, allocating Rs15 billion ($53 million) for scholarships for high-achieving students and continuing with its Rs5.9 billion ($21 million) Undergraduate Scholarship Programme.
“To address infrastructure needs, Rs40 billion ($142 million) is set aside for building classrooms, while a Rs35 billion ($124 million) Education Delivery Programme aims to enhance access and quality across Punjab,” Rehman said.
The minister said the provincial government has allocated Rs630.5 billion ($2.24 billion) for the health sector in this budget, which is 17% higher than last year.
“Of this, Rs181 billion ($641 million) is earmarked for development, reflecting a 41% increase over the previous year,” Rehman said.
The minister said Punjab had allocated Rs494 billion ($1.75 billion) for the social sector, which accounted for 40% of the development budget.
Rehman said provincial government employees’ salaries would be increased by 10%, while pensions have been raised by 5% and the proposed increase in the minimum wage is from Rs37,000 ($131) to Rs40,000 ($142) per month.
The minister said that the new budget has given special priority to Pakistan’s agriculture sector.
“In the next financial year, Rs123 billion ($436 million) are allocated for development in the agriculture, livestock, irrigation, and water sectors, while Rs56.2 billion ($199 million) is allocated for non-development expenses,” he said.
The provincial minister said to ensure a climate-resilient Punjab, a record Rs795 billion (approximately $2.82 billion) worth of projects were included in the budget this year, accounting for 64% of the overall development budget.
Pakistan’s top revenue-generating Sindh province last Friday unveiled its Rs3.45 trillion ($12.41 billion) new budget while the northwestern Khyber Pakhtunkhwa (KP) province announced a surplus budget of Rs2,119 billion ($7.63 billion) for the next year on the same day.
Pakistan says armed forces ‘fully alert’ amid Israel’s ongoing conflict with Iran
- Israel attacked Iran’s nuclear facilities and military leadership last week, raising tensions in Middle East
- Deputy PM Ishaq Dar assures lawmakers Pakistan’s nuclear facilities remain safe amid ongoing conflict
ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Monday that Pakistan’s armed forces were “fully alert” amid Israel’s ongoing military conflict with Iran, vowing to safeguard the country’s nuclear assets.
Dar’s statement came as the military conflict between Iran and Israel entered its fourth day on Monday, with no signs of the two sides letting up. The worst fighting between the regional foes began late Friday when Israel carried out strikes against Iran’s nuclear facilities and military leadership. So far, Iran says 224 people have been killed due to Israeli strikes while Tel Aviv has said at least 18 people have been killed by Iran.
During a senate session, opposition lawmaker Shibli Faraz questioned whether Pakistan’s nuclear facilities were safe in light of Israel’s recent strikes against Iran, urging the government not to be complacent in safeguarding them.
“Israel dare not look to Pakistan,” Dar said in response. “By the grace of god, Pakistan has the strength to respond to a brick with a stone, to any mala fide [intentions].
“I assure my brother the armed forces of Pakistan are fully alert. As they were alert during the India-Pakistan conflict,” he added.
The deputy prime minister was referring to India and Pakistan’s military conflict last month. The two countries pounded each other with missiles, drone strikes, fighter jets and artillery fire in a military conflict that lasted for four days before Washington brokered a ceasefire on May 10.
Dar said the Pakistani nation had developed its nuclear and missile defense system at a great cost and would protect them.
“These are the nation’s assets, these are the nation’s trust. This is the trust for the coming generation,” he said. “It is our responsibility to safeguard it unitedly, which we will do, are doing and will do it together.”
Israel sees Iran’s nuclear program as a threat to its existence. It said its strikes on Friday were designed to avert the last steps to the production of an Iranian nuclear weapon.
Tehran insists its nuclear program is entirely civilian and it does not seek an atomic bomb. The UN nuclear watchdog, however, reported Iran last week as violating obligations under the global non-proliferation treaty.
Pakistan has criticized Israel in strong words and repeatedly said Iran has the right to retaliate under the UN Charter. Islamabad has also vowed to offer diplomatic support to Iran at international forums.
Pakistani delegation wraps up diplomatic tour to convince Western capitals after India conflict
- Bilawal Bhutto Zardari-led delegation urges Europe to steer region ‘away from the brink’ of war
- Before Brussels, delegation also visited New York, Washington and London on diplomatic blitz
ISLAMABAD: A Pakistani delegation formed by Prime Minister Shehbaz Sharif to present Islamabad’s perspective on its recent conflict with India wrapped up its Brussels tour on Monday, the chief of the mission said in a statement, calling on European leaders to help steer the region back “from the brink” of war.
Former foreign minister Bilawal Bhutto Zardari was heading the high-powered Pakistani delegation that visited the United States and the United Kingdom before arriving in Brussels last week.
India and Pakistan both dispatched delegations of diplomats and parliamentarians to world capitals. Both Islamabad and New Delhi engaged the international community following their days-long armed conflict in May, which ended in a fragile ceasefire on May 10 brokered by Washington.
During his visit to Brussels, the delegation met the European Union parliament, the EU Commission, the Belgian leadership, members of international think tanks and foreign media. Bhutto Zardari pushed for dialogue and counterterrorism cooperation with India during the tour, warning of the dangers of a nuclear-armed conflict between the two nations.
“Europe, as a champion of the rules-based international order and international law, must help steer the region back from the brink,” Bhutto Zardari wrote on social media platform X.
The former foreign minister highlighted that during his visit to Brussels, the Pakistani delegation called for restraint and dialogue after a “fragile ceasefire.” He said the delegation had also warned of the lowest-ever conflict threshold in South Asia and India’s” weaponization” of water and global mechanisms.
Bhutto Zardari in recent weeks severely criticized India’s move to suspend a decades-old water-sharing treaty with Pakistan in April. The Indus Waters Treaty of 1960 governs the usage of the Indus river system. The accord has not been revived despite the rivals agreeing on a ceasefire on May 10.
Islamabad had said after India suspended the Indus Waters Treaty that it considered any attempt to stop or divert the flow of water belonging to Pakistan to be an “act of war.”
About 80 percent of Pakistani farms depend on the Indus system, as do nearly all hydropower projects serving the country of some 250 million.
Former information minister Sherry Rehman, a prominent member of the delegation, said some members would head back to Pakistan while others would next visit the French city of Strasbourg.
“When the world needs diplomacy, multilateralism and the power of intl law to return to its centerstage, the rules that support order are under strain like never before,” she wrote on social media platform X.
Pakistan holds key rate at 11 percent as Mideast conflict overshadows growth push
- Central bank maintains cautious stance as heightened geopolitical tensions, volatile global oil prices add new inflation risks
- Bank paused its easing cycle in March, following cumulative cuts totaling 1,000 basis points from a record high of 22 percent
ISLAMABAD: Pakistan’s central bank kept its key policy rate unchanged at 11 percent on Monday, maintaining a cautious stance as heightened geopolitical tensions and volatile global oil prices add new risks to inflation and the fragile external sector.
A Reuters poll released earlier on Monday had shown analysts revising their expectations for a rate cut in light of Israel’s military strikes on Iran that began on Friday and have since intensified, pushing up global commodity prices.
“The [Monetary Policy] Committee noted some potential risks to the external sector amidst the sustained widening in the trade deficit and weak financial inflows. Moreover, some of the proposed FY26 budgetary measures may further widen the trade deficit by increasing imports,” the central bank said, announcing its decision to leave the rate unchanged.
“In this regard, the Committee deemed today’s decision appropriate to sustain the macroeconomic and price stability.”
Inflation in Pakistan has slowed markedly since peaking at around 40 percent in May 2023. However, last month it rose to 3.5 percent year-on-year, above the finance ministry’s projection of up to 2 percent, partly due to the fading of favorable base effects. The central bank projects average inflation between 5.5 percent and 7.5 percent for the fiscal year ending this month.
The bank paused its easing cycle in March, following cumulative cuts totaling 1,000 basis points from a record high of 22 percent, and resumed it with a 100-basis-point reduction in May.
Monday’s meeting came days after the government presented a tight annual budget, which increased defense spending by 20 percent but reduced overall expenditure by 7 percent. It projects GDP growth at 4.2 percent for the next fiscal year, up from a provisional estimate of 2.7 percent for the current year.
The MPC noted that despite the widening trade deficit, the current account remained broadly balanced in April, and foreign exchange reserves rose to $11.7 billion as of June 6 after the completion of the first review under the International Monetary Fund’s Extended Fund Facility.
Revised budget estimates show the primary surplus at 2.2 percent of GDP for FY25, up from 0.9 percent last year, with a higher target of 2.4 percent for the upcoming fiscal year.
Global oil prices have rebounded sharply, driven by the evolving Middle East crisis and some easing of US-China trade tensions, the MPC noted.
“Taking stock of these developments and potential risks, the Committee assessed that the real interest rate remains adequately positive to stabilize inflation within the target range of 5–7 percent,” the statement said.
It added that timely foreign inflows, planned fiscal consolidation, and structural reforms remained essential to maintain macroeconomic stability and achieve sustainable growth.
