ISLAMABAD: The government’s key coalition allies criticized its tax-heavy federal budget during a parliamentary session on Friday, urging authorities to adopt “people-friendly” policies as Islamabad’s hopes the document will prove instrumental in securing another International Monetary Fund (IMF) bailout package.
Pakistan’s parliament kicked off the debate into the federal budget on Thursday, with opposition party Sunni Ittehad Council (SIC) labelling the government’s move to present the budget as “economic terrorism” against the people. Islamabad has set an ambitious tax revenue generation target of about Rs13 trillion ($46.55 billion) in the budget, which was presented on June 12 by Finance Minister Muhammad Aurangzeb.
When the budget debate resumed in the National Assembly on Friday, the government’s key coalition allies distanced themselves from the taxes imposed in the finance bill, calling on authorities to levy them on landlords and the affluent class rather than the salaried group.
“If sanity fails to prevail and a public-friendly budget is not prepared, then this traditional budget is going to be the biggest threat to the country’s security,” Dr. Farooq Sattar, a senior lawmaker of the government’s coalition partner, Muttahida Quami Movement-Pakistan, (MQM-P) said during the parliamentary session.
He said the budget signaled that the status quo continued to wield power in Pakistan.
Meanwhile, Pakistan Peoples Party (PPP) lawmaker Shazia Marri confirmed that no breakthrough had been reached in talks held between the ruling Pakistan Muslim League-Nawaz (PML-N) party and the PPP’s senior leadership on their differences regarding the budget.
PPP Chairman Bilawal Bhutto-Zardari led a high-level delegation of his party to meet Prime Minister Shehbaz Sharif and the government’s senior leadership on Thursday. The two sides attempted to iron out their differences over the federal budget.
The PPP has accused the government of ignoring its recommendations in the budget. While not a member of the federal cabinet, the PPP voted for Sharif in the prime minister’s election and forms the government in Pakistan’s southern Sindh province. The PML-N-led government requires the PPP’s votes for the budget to pass.
After the meeting between the two sides ended on Thursday, a handout issued by the Prime Minister’s Office (PMO) said both sides had agreed to form committees to work out their differences over the budget.
Speaking during the National Assembly session on Friday, Marri pointed out that the government’s ministers had not attended the session.
“Relevant ministers must be present in the house during budget session,” Marri said, adding that her party was reluctant to participate in such sessions till it resolved its differences with the government on the budget.
Another PPP leader Sharmila Faruqi said both parties’ relevant committees would hold meetings to reach a consensus on the budget before voting on the finance bill takes place next week.
“Not much of a breakthrough, subsequent meetings to follow,” Faruqi told Arab News about the meeting between the two sides. “PML-N must honor its commitments to PPP.”
Meanwhile, SIC lawmaker Sajid Khan criticized the government for imposing heavy taxes in the budget on medicines and food items.
“The government should reopen border with Afghanistan from Angoor Ada [town in northwestern Pakistan] to resume trade and business activities,” he recommended.
Khan said the government should review tax measures and allocate a special budget for the development of the erstwhile tribal regions bordering Afghanistan.
“The government should allocate the promised 3 percent of the National Finance Award for the development of the tribal regions,” he said.
Pakistani government’s coalition allies distance themselves from ‘tax-heavy’ budget in parliamentary debate
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Pakistani government’s coalition allies distance themselves from ‘tax-heavy’ budget in parliamentary debate
- Dr. Farooq Sattar, a lawmaker of government ally MQM-P, demands a more “people-friendly” budget
- PPP lawmakers confirm no breakthrough reached with ruling party PML-N on budget differences
Pakistan set to hold policy rate as Israel-Iran conflict overshadows growth push
- Eleven of 14 respondents in a snap poll expected central bank to leave the benchmark rate unchanged at 11 percent
- Central bank paused its easing cycle in March after cumulative cuts of 1,000 basis points from a record high of 22 percent
KARACHI: Pakistan’s central bank is expected to hold its policy rate today, Monday, a Reuters poll showed, as many analysts shifted their previous view of a cut in the wake of Israel’s military strike on Iran, citing inflation risks from rising global commodity prices.
Israel said on Friday it targeted nuclear facilities, ballistic missile factories and military commanders in a “preemptive strike” to prevent Tehran from building an atomic weapon.
Several brokerages had initially expected a cut but revised their forecasts after the Israeli strikes sparked fears of a broader conflict.
The escalating hostilities triggered a sharp spike in oil prices — a worry for Pakistan given the broader impact on imported inflation from a potentially prolonged conflict and tightening of crude supplies.
Eleven of 14 respondents in a snap poll expected the State Bank of Pakistan (SBP) to leave the benchmark rate unchanged at 11 percent. Two forecast a 100 basis-point cut and one predicted a 50 bps cut.
“There remains an upside risk of a rise in global commodity prices in light of geopolitical tensions which could mark a return to inflationary pressures,” said Ahmad Mobeen, senior economist at S&P Global Market Intelligence.
“The resultant higher import bill could also threaten external sector performance and bring pressure to the exchange rate.”
Inflation in the South Asian country has been declining for several months after it soared to around 40 percent in May 2023.
Last month, however, inflation picked up to 3.5 percent, above the finance ministry’s projection of up to 2 percent, partly due to the fading of the year-go base effects. The SBP expects average inflation between 5.5 percent and 7.5 percent for the fiscal year ending June.
The central bank paused its easing cycle in March after cumulative cuts of 1,000 basis points from a record high of 22 percent, and resumed it with a 100-basis-point reduction in May.
The policy meeting follows the release a tight annual budget, which saw Pakistan raise defense spending by 20 percent but overall expenditure was reduced by 7 percent, with GDP growth forecast at 4.2 percent.
Pakistan says its $350 billion economy has stabilized under a $7 billion IMF bailout that had helped it staved a default threat.
Some analysts are skeptical of the government’s ability to reach the growth target amid fiscal and external challenges.
Abdul Azeem, head of research at Al Habib Capital Markets, which forecast a 50-bp cut, said a lower rate could “support the GDP target of 4.2 percent and reduce the debt financing burden.”
Pakistanis rally to demand Muslim solidarity with Iran as conflict with Israel deepens
- Israel’s surprise attack on targets across Iran on Friday has been followed by four days of escalating strikes
- Israeli attacks in Iran have killed over 220 people, mostly civilians, since Friday, 23 dead from Iran’s retaliatory strikes
LAHORE: Hundreds of demonstrators gathered in the Pakistani city of Lahore on Sunday to protest Israel’s military strikes on Iran, calling for unity among Muslim nations and stronger action against what they described as Israeli aggression.
Israel’s surprise attack on targets across Iran on Friday has been followed by four days of escalating strikes, as both sides have threatened more devastation in the biggest ever confrontation between the longstanding enemies.
Clutching banners and chanting slogans, protesters in Lahore urged Muslim countries to stand with Iran and resist Israel’s actions.
“The only solution to this is that the atrocity and barbarism that Israel started is put to an end by getting together with Iran,” said Nida Fatima, a student who joined the rally. “For every Muslim, every proud Muslim, every proud individual in any Muslim nation, it is their duty to stand up for Palestine with Iran.”
Hussnain Zaidi, a local marketing manager in his 50s, demanded immediate international pressure on Israel.
“The oppression and brutality that Israel has committed against Iran must end, and the international community must propose a punishment for it so that it does not attempt to destroy any country in the future like Israel did with Gaza,” he told AFP.
The death toll in Iran since Friday has reached at least 224, with 90 percent of the casualties reported to be civilians, an Iranian health ministry spokesperson said. At least 23 fatalities have been reported in Israel, including in Tel Aviv and Haifa, as per Israel’s national emergency services/.
Pakistan’s Foreign Office has condemned Israeli missile strikes on Iran as a “grave violation of international law” and urged the United Nations to take immediate steps to halt the aggression and hold Israel accountable.
Pakistan, which does not recognize Israel, has for decades called for the establishment of an independent Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.
The Lahore demonstration reflects growing domestic pressure on the Pakistani government to take a stronger stance against Israel as the conflict deepens and oil prices rise, potentially squeezing Pakistan’s economy and foreign exchange reserves.
Israel has long been determined to prevent Iran, its fiercest enemy, from obtaining a nuclear weapon. Since the rise of the Islamic Republic at the end of the 1970s, Iran’s rulers have repeatedly pledged to destroy Israel.
Military-linked Fauji Fertilizer to bid for stake in Pakistan’s PIA
- Islamabad is trying to offload 51-100 percent stakes in PIA under $7 billion IMF program to overhaul state-owned firms
- 2024 auction drew only one offer of $36 million, far below government’s $305-million floor price, and was rejected
ISLAMABAD: Fauji Fertilizer Company Ltd. (FFC), a unit of the Pakistan army-run Fauji Foundation, said on Monday its board had approved submitting an expression of interest to acquire a stake in loss-making national carrier PIA, according to a filing with the Pakistan Stock Exchange (PSX).
Islamabad is trying to offload a controlling stake of 51-100 percent in PIA under a $7 billion International Monetary Fund program aimed at overhauling state-owned firms. Authorities last month pushed back the deadline for expressions of interest to June 19.
“The board … has approved submission of an expression of interest and pre-qualification documents to the Privatization Commission … and undertaking a comprehensive due-diligence exercise,” FFC said in the filing.
FFC is Pakistan’s biggest fertilizer maker and has diversified interests in energy, food and finance. Any deal on PIA would expand the military group’s footprint into aviation, though final terms will hinge on the government’s privatization process and regulatory approvals.
FFC’s move marks Pakistan’s second attempt to sell PIA.
A 2024 auction drew only one offer – Rs10 billion ($36 million) for 60 percent of the airline from real-estate developer Blue World City – far below the government’s Rs85 billion ($305 million) floor price and was rejected.
Pakistan had offloaded nearly 80 percent of the airline’s legacy debt and shifted it to government books ahead of the privatization attempt. The rest of the debt was also cleaned out of the airline’s accounts after the failed sale attempt to make it more attractive to potential buyers, according to the country’s privatization ministry.
In April, PIA posted an operating profit of Rs9.3 billion ($33.1 million) for 2024, its first in 21 years.
The airline has for years survived on government bailouts as its operational earnings were eaten up by debt servicing costs.
Officials say offloading the debt burden and recent reforms like shedding staff, exiting unprofitable routes and other cost-cutting measures led to the profitable year.
Ahead of the attempt to sell the airline last year, PIA had faced threats of being shut down, with planes impounded at international airports over its failure to pay bills and flights canceled due to a shortage of funds to pay for fuel or spare parts.
The state carrier’s 34-plane fleet commands only 23 percent of Pakistan’s domestic market, while Middle Eastern rivals take about 60 percent of overall traffic, thanks to wider route networks and direct connections.
Punjab to unveil new budget today, pledges ‘people-friendly’ spending amid economic pressures
- Punjab, home to over half of Pakistan’s 240 million population, contributes roughly 60 percent to GDP
- Punjab’s budget for fiscal year 2024–25 was about $19.6 billion, with development outlay of $3 billion
ISLAMABAD: Pakistan’s Punjab province, the country’s most populous and economically crucial region, will present its budget for the 2025–26 fiscal year today, Monday, with officials promising a “people-friendly” plan, Radio Pakistan reported.
Punjab Finance Minister Mujtaba Shuja-ur-Rehman is scheduled to table the budget in the provincial assembly in Lahore after the cabinet’s formal approval.
Punjab’s budget is seen as politically significant for the ruling Pakistan Muslim League-Nawaz (PML-N) of Prime Minister Shehbaz Sharif, which faces tough economic and governance challenges nationwide.
“This budget reflects Chief Minister Maryam Nawaz Sharif’s vision to prioritize people’s welfare and accelerate development projects across the province,” Rehman was quoted as saying by state-run Radio Pakistan.
Punjab, home to over half of Pakistan’s 240 million people, plays a dominant role in the national economy, contributing roughly 60 percent of the GDP. It also 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.
Officials have said the upcoming budget will maintain a focus on infrastructure upgrades, agriculture support and social welfare schemes to help shield the population from rising prices.
Local media reports suggest the government could announce new initiatives in education, health care and urban transport, along with efforts to address power shortages in rural areas.
In parched Karachi, mosques give back to the earth by saving ablution water
- Project started at Jamia Uloom Islamia Banuri seminary has now spread to 20 city mosques
- From India to Indonesia, communities have long explored ways to reuse water from places of worship
KARACHI: On a sweltering afternoon in Karachi’s Gulberg neighborhood earlier this month, rows of men lined up under shaded arcades at a seminary to perform wudu, the ritual ablution Muslims perform before prayers.
In a city battered by chronic water scarcity, each drop of this cleansing water is precious but until last year, gallons of it flowed straight into Karachi’s aging sewer lines, lost forever.
Now, at over 20 mosques scattered across this sprawling megacity of more than 20 million people, this water has found a second purpose. It is being stored underground to help replenish the city’s shrinking aquifers, drop by precious drop.
The unconventional fix is the brainchild of Dr. Syed Imran Ahmed, who heads the Panjwani Hisaar Water Institute at Karachi’s NED University. He convinced the administrators of Jamia Uloom Islamia Banuri, one of Pakistan’s biggest seminaries, to store ablution water in underground wells instead of letting it drain away.
And what started as a pilot at the Banuri mosque has since spread to more than 20 mosques citywide.
“A lot of people go to the mosque and use water there without any thinking. Now this water directly goes to wastewater, so it becomes part of wastewater,” Dr. Ahmed told Arab News.
“But what if you divert it to a tank or to a well in the mosque?”
Karachi is Pakistan’s economic engine but also one of its thirstiest cities. Official estimates show it needs about 1,200 million gallons per day but gets barely half that on average.
As residents bore deeper and deeper wells to tap the ground beneath them, they have left behind hollow pockets in the earth, literal sinkholes that are swallowing parts of the city.
A landmark study by Singapore’s Nanyang Technological University found Karachi ranks second in the world for urban land subsidence, just behind China’s Tianjin. Between 2014 and 2020 alone, parts of the city sank by as much as 15 centimeters due to excessive groundwater pumping.
“And that rate of sinking is higher than the sea level rise due to climate change. Now they are calling them bowl cities ... the city is like a bowl because different areas of it are sinking.” said Yasir Husain, founder of the Climate Action Center in Karachi.
The mosque project, he explained, addressed this destructive cycle in which countless homes had bore ever deeper into the earth for water.
“People have on every street two or three houses which have bores, and they suck water from the ground,” he said. “And they’ve gone deeper and deeper.”
Recharging wells, however small, could help restore the balance, Hussain added.
OTHER FAITHS, OTHER CITIES
The idea isn’t unique to Karachi. From India to Indonesia, communities have long explored ways to reuse water from places of worship.
In India’s Hyderabad, the centuries-old Charminar mosque installed a water recycling system in 2019 that filters ablution water for reuse in gardens.
In Kuala Lumpur, Malaysia, a green mosque project uses treated wudu water for toilet flushing and irrigation.
In the Middle East, where water stress is even more acute, countries like the UAE have pioneered mosque greywater reuse for landscaping, transforming prayer halls into unexpected allies for urban water security.
At the Jamia Masjid Falah in the city’s Gulberg neighborhood, Abdullah Malik, a mosque committee member, said he could see the water recycling results firsthand.
“It’s essential that any sweet water used should be saved instead of being wasted into the gutter lines,” he said, estimating that 700–800 people performed ablution at his mosque daily.
Even saving three liters per person could mean thousands of liters recharging the earth every day, Malik added, a small, steady buffer against Karachi’s mounting water emergency.
Indeed, encouraged by the community response, Dr. Ahmed has mapped 27 flood-prone areas in the city where monsoon rain can also be stored in recharge wells.
He hopes local authorities will greenlight the proposal soon.
“I think that these 27 wells would be soon active, god willing,” he said.
Meanwhile, supporters like Husain believe mosques and local leaders could play a crucial role in changing habits.
“The water which is used for wudu [ablution] will not end up in your gutter,” he said. “That water is precious.”
No doubt, for Karachi, every drop saved, and returned to the earth, is a promise that the city’s lifeline might yet endure.
