Epaper_23-07-28 ISB

Profit

SENATE PASSES AMENDS TO ARMY ACT TO PUNISH ‘UNAUTHORISED DISCLOSURE’ OF INFORMATION

g ANYONE DISCLOSES INFORMATION ABOUT INTEREST OF PAKISTAN OR ARMED FORCES SHALL BE PUNISHED WITH FIVE YEARS TERM

ISLAMABAD

S TA F F R E P O R T

TH E Senate on Thursday passed a bill to amend the Pakistan Army Act, 1952 which proposes up to five years in jail for anyone discloses sensitive information pertaining to the security of the country or the Pakistan Army Defence Minister Khawaja Asif introduced the bill, titled: “Pakistan Army (Amendment) Act, 2023 ”

The bill proposes adding Section 26A (unauthorised disclosure) to the act under which anyone who discloses or causes to be disclosed any information acquired in official capacity, which is or may be prejudicial to the security and interest of Pakistan or the armed forces of Pakistan shall be [ ] punished with rigorous imprisonment for a term which may extend to five years

However if someone does so after seeking prior approval from the chief of army staff (COAS), or any officer duly empowered by him, in the manner prescribed” then it shall not be deemed as an unauthorised disclosure

It also states that such a case will be dealt with according to Section 59 (civil offences) of the Army Act read with the Official Secrets Act 1923

The bill also proposes introducing Section 26-B which forbids any person subject to the Army Act from engaging in any kind of political activity for two years from the date of their retirement

g BILL FORBIDS ARMY PERSONNEL FROM ENGAGING IN ANY KIND OF POLITICAL ACTIVITY FOR TWO YEARS FROM DATE OF ‘ RETIREMENT, RESIGNATION, OR DISMISSAL FROM SERVICE’

to undermine ridicule or scandalize the armed forces of Pakistan shall be punished in the manner prescribed in the Peca law Section 55-C stated that a person subject to the Army Act who “ridicules scandalises brings into hatred or otherwise attempts to lower the armed forces of Pakistan or any part thereof in the estimation of others shall [ ] be punished with imprisonment which may extend to two years or fine or with both ”

China rolls over $2.4b loan to Pakistan

g PAKISTAN IS ALSO EXEMPTED FROM PAYING ADDITIONAL INTEREST ON LOAN

release resignation discharge removal or dismissal from the service

It further says that those who have remained posted, employed, seconded, tasked or otherwise attached on sensitive duties” are forbidden from taking part in political activity of any kind during a period of five years from the date of his retirement release resignation, discharge, removal or dismissal from the service

It states that anyone who violates the aforementioned conditions upon their conviction by the court constituted under the Army Act will be punished with rigorous imprisonment for a term which may extend to two years

The bill also proposes introducing Sections 55-A (conflict of interest), 55-B

Pakistan, KSA to work together on $10b green refiner y project at Gwadar

Four Pakistani state-owned oil and gas companies on Thursday signed a Memorandum of Understanding (MOU) amid advance level negotiation with Saudi Arabia to execute a $10 billion green refinery project at the strategic Gwadar Port in Pakistan

The project, expected to attract significant foreign investment from world-class oil and gas giants through equity participation, will be a joint venture between Oil and Gas Development Company Limited (OGDCL) Pakistan State Oil (PSO) Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL)

The signing ceremony was witnessed by Minister for State Musadiq Malik, and Secretary Petroleum, Capt (r) Muhammad Mahmood, who were present as chief guests

In his address, Mussadiq Malik revealed that the Saudi Arabian oil firm has shown keen interest in injecting the entire equity into the multibillion-dollar refinery project In response the Pakistani government decided to form a joint venture with key state-owned companies in the country

Under the proposed plan, PSO, OGDCL, PPL, and GHPL will collectively contribute 70 percent of the equity, while Aramco, the Saudi Arabian oil company, will initially inject 30 to 50 percent equity into the project State Minister Mussadiq Malik emphasized that the establishment of the Greenfield Refinery will play a pivotal role in reducing the country s trade deficit He highlighted the government s achievements over the past year, including the addition of 138 Million Cubic Feet of natural gas worth $570 million to the gas system, with an additional $500 million of indigenous gas production to be integrated soon

Furthermore the minister mentioned that the benefits of the agreement signed with Russia for crude oil will soon be realized by the masses He also informed the audience that negotiations are underway with friendly countries, such as Saudi Arabia, the United Arab Emirates and other member countries of the Gulf Cooperation Council to import affordable oil and gas to Pakistan

(electronic crimes) and 55-C (defamation)

Section 55-A forbids any persons subject to the Army Act in the past five years from directly or indirectly enter[ing] into employment, consultation or other engagement with an entity having conflict of interest with the activities of the Pakistan Army or its affiliates

However the law does not apply to those who seek prior approval from the COAS for the above

A person guilty of the said offence can be imprisoned for up to “two years with fine not exceeding Rs500 000 or with both the bill states Section 55-B states that any person who is or has been subjected to the Army Act, and commits an offence under the Prevention of Electronic Crimes Act (Peca), 2016 “with the malafide intention

Prime Minister Shehbaz Sharif on Thursday reiterated the government’s resolve to develop the Gwadar Sea Port as one of the best in the world and promised that the fruit of development in Balochistan would be directed towards the people of the province

The premier passed these remarks during a visit to Gwadar where he inaugurated several development projects along with Chief of Army Staff General Asim Munir Addressing a ceremony at the China-Pakistan Expo Centre, PM Shehbaz said the fate of the people of Balochistan especially those of Gwadar would be changed through the ongoing development operation across the province

He recalled that during the tenure of PML-N supremo Nawaz Sharif projects in power infrastructure and other sectors were launched in Gwadar However he claimed that all these projects had been abandoned by the PTI government

But in the last 15 challenging months, the coalition government managed to lay the foundation of development and prosperity in the country especially in Balochistan PM Shehbaz said Balochistan, he highlighted, was rich in minerals and other natural resources that needed to be explored He promised that the fruits of development in the province would be directed towards the locals in the form of clean drinking water, health, education and employment PM Shehbaz went on to say

The bill also proposes introducing of Section 176-AA (power to issue instructions) which states that the COAS may from time to time make and issue instructions for carrying into effect the provisions of this Act and the rules and regulations made thereunder, provided that all such instructions already made and issued shall always be deemed to have been validly made and issued under this act

A clause introduced to Section 176-C proposes that the COAS may delegate any of his powers and functions conferred by or delegated under this act to any officer or authority subordinate to him”

Meanwhile the addition of Section 176-E (overriding effect) proposes that the laws under the act shall have effect notwithstanding anything inconsistent contained in any other law, rules or regulations for the time being in force” adding that any such inconsistent law shall to the extent of any inconsistency cease to have effect

EXIM Bank of China has rolled over its loan of $2 4 billion with Pakistan for two years to strengthen Islamabad’s foreign reserves

The announcement was made by Finance Minister Ishaq Dar on his Twitter handle Dar in his tweet said that Chinese EXIM Bank has rolled over the loan of US$ 2 4 billion for two years including US$1 2 billion due in FY2023-24 and US$1 2 billion in FY2024-25: US$ 1 2 billion Dar said Pakistan will make interest payments only in both years

On Wednesday sources claimed that China has deferred the $2 billion debt payment to Pakistan for two years China Eximbank officially wrote to Pakistan about the delay in the recovery of debt Sources said that the federal government has revised the terms and conditions for the debt rollover Pakistan is also exempted from paying additional interest on the loan sources added

Weekly inflation rises by 3.7 3%; Annual rate touches 29.21%

the draft of the Gwadar port was one of the deepest among the world s top ports but regretted that dredging of the port which was a continuous process to prevent accumulating silt was not ensured by the previous government

N o w w e h a v e i n i t i a t e d t h e dredging process which would be completed by February next year, h e s a i d The prime minister also announced that the laptop quota for Balochistan had been increased to 14 per cent against the 6pc population share of the province and directed authorities to further increase the quota to 18pc for the next fiscal year Referring to the rollover of the $2 4 billion loan from China today PM Shehbaz said the default risk for Pakistan had been averted due to support from brotherly countries such as China, Saudi Arabia and UAE

He clarified that all the support from the friendly countries was completely “unconditional”

The premier further directed relevant authorities to put the security of foreigners in the province on top priority

Earlier addressing a laptop and cheques distribution ceremony here, he said when Nawaz Sharif was elected prime minister for the third time in 2013 he planned and launched multiple projects in power infrastructure and other sectors in Gwadar

However, he deplored that when he visited as prime minster last year here, he was shocked to note that, the previous government had abandoned work on all ongoing projects in the city The local people must enjoy all the basic facilities in all sectors including health and education

The prime minister announced that the laptop quota for Balochistan had now been increased to 14% against the 6% population share of the province

He also directed the relevant authorities to further increase the laptop quota to 18% for next fiscal year

Minister for Maritime Affairs Syed Faisal Sabzwari said the under the leadership of Prime Minister Shehbaz Sharif numerous welfare and development projects were being launched for uplift of the people of the province

g HBL ZARAI SERVICES WILL OPERATE A S A WHOLLY OWNED SUBSIDIARY MEANT TO INCREA SE CAPACITY IN COUNTRY ’S VA STLY UNDERSERVED AGRICULTURAL SECTOR

A week after

lending in these crucial sectors to foster their growth

and development

What will HBL Zarai do?

During an event hosted by HBL last week for the launch of their 2022 Impact and Sustainability report, the bank’s CEO and President Muhammad Aurangzeb said the bank received permission from the SBP two weeks ago to establish a special subsidiary called Zarai (agriculture) which will help small and medium-sized farmers improve their agricultural output For a long time, the biggest problem had been that banks have not understood agriculture crop cycles and the needs of farmers A subsidiary only focused on agriculture should help this process along and shed light on a vastly untapped n response to a question posed by Profit, Mr Aurangzeb agreed that

ISLAMABAD

S TA F F R E P O R T

Inflation in the last week surged by 3 73% brining the annual rate to a record high of 29 21% according to the Pakistan Bureau of Statistics (PBS) on Thursday highlighting the severity of the current economic situation in the country

The PBS report stated that within the last week, the prices of 20 key items, including eggs, tomatoes, chilli garlic potatoes onions jaggery electricity and LPG had seen a significant hike For instance the price of sugar ranged from Rs135 to Rs160 per kilo in various cities while live broiler chicken s cost escalated from Rs368 to Rs580 per kilogramme (kg) The statistics showed that specific items experienced substantial price jumps Tomatoes’ prices increased by 19 71% red chilli by 28 98% and eggs by 4 77%

The LPG prices rose by 4 12% garlic by 3 09% onions 2 58% and jaggery 2 18% Further potatoes and wheat flour became dearer by 2 09% and 132% respectively, on an annual basis

The data indicated soaring prices for other items over the last year Tea prices rose by 98%, rice by 79%, sugar 63% potatoes 62% tomatoes 60% and jaggery 57% Chicken and red chilli experienced a substantial increase of up to 55%

In addition to essential goods other sectors also witnessed significant price hikes Gas charges surged by 108% compared to the previous year, further exacerbating the economic challenges faced by the citizens

HBL from lending to the agriculture sector

Instead, HBL Zarai will will supply the nonfinancial services, while the farm finance will be managed on the HBL balance sheet according to the bank s CEO

there was a need for better understanding

We are going into this with a lot of clarity and detail about why we re doing HBL Zarai

And we wall appreciate if other institutions also go towards this direction,” he said “As you’ve said even HBL has been missing a trick up until this point Why weren t we in dairy and livestock farming? And by the way the repayment capacity is okay There isn t a higher risk of default or anything It is about understanding better, he added

The initiative aims to offer farmers a variety of facilities and services including storage space farming equipment crop production inputs including seed and fertiliser and agronomic advice according to HBL president The subsidiary, however, will not stop

The timing

The decision comes at a time when a realisation is starting to take hold in Pakistan that many unbanked sectors require attention

Last year the agriculture sector saw a 27 5% growth in agri loans after the agriculture lending financial institutions disbursed Rs 1 222 trillion on account of agricultural financing during the first nine months (July-March) of this fiscal year

As explained by Mr Aurangzeb, the bank’s top priority is agricultural financing, which is why the portfolio in 2022 hit an all-time high of Rs50 6 billion HBL has contributed over Rs4 billion – spread over a decade – to the social uplift of Pakistan In 2022 alone the bank contributed over Rs580 million

W h a t w i l l H B L’ s n e w a g r i - f o c u s e d s u b s i d i a r y d o ?

Gwadar por t to be developed as one of best in world: PM

ISLAMABAD

s tA f f R e p o R t

THE Islamabad High Court (IHC) on Thursday put off hearing of the appeal filed by former prime minister and PTI Chairman Imran Khan against the admissibility of Toshakhana reference for hearing until the Supreme Court (SC) gave its verdict in the case

Chief Justice (CJ) Aamer Farooq remarked Let s wait for the SC s decision first Khawaja Haris Imran s lawyer

told the court that the apex court was presently seized with the hearing of four different appeals by his client and it had said that it would give decision on them simultaneously “Of all these appeals, the one relating to Toshakhana is a major appeal ” he added T h e C J w e n t o n t o s a y t h a t f i r s t l y t h e r e w a s t h e i s s u e o f F a c e b o o k p o s t o f a t r i a l c o u r t judge What does the judge have to say on that?” he asked Haris replied that he had admitted that the Facebook account was his but the post was not

T h e C J r e m a r k e d h e h a d n o t r e c e i v e d a n y t h i n g f r o m j u d g e H u m a y u n D i l a w a r T h i s w a s t h e s i t u a t i o n y e s t e r d a y W h a t i s t h e l a t e s t , I c a n t s a y w i t h c e r t a i n t y, h e a d d e d I m r a n ’s c o u n s e l i n f o r m e d t h a t t h e t r i a l c o u r t j u d g e had mad e it clear that non- bailable arrest warrants would be issued for h i s c l i e n t i n c a s e h e d i d n o t a p p e a r i n t h e c o u r t t o d a y I n f a c t t h e j u d g e w a r n s u s o n e v e r y h e a r i n g t h a t t h e a r r e s t w a r r a n t s w i l l b e i s s u e d , ” H a r i s s a i d , a n d a d d e d , “ T h i s i

KP ulema denounce suicide attacks, terrorism incidents at worship places

PESHAWAR s tA f f R e p o R t

Eminent Ulema and religious scholars from different schools of thoughts here on Thursday strongly condemned the suicide attack at Ali Masjid mosque at Khyber district and declared that suicide attacks terrorism and militancy were totally prohibited in Islam T h e y s a i d t h a t u n d e r t h e P a g h a m e Pakistan national Fitawa , the renowned Ulama, Khatteeb, Mufties and Religious S c h o l a r s o f P a k i s t a n r e p r e s e n t i n g a l l schools of thoughts have jointly declared t h a t s u i c i d e a t t a c k s t e r r o r i s m a n d m i l i t a n c y i n P a k i s t a n w a s u n l a w f u l u n d e r a n I s l a m i c l a w a n d t h e r e w a s n o r o o m f o r t e r r o r i s m a n d s u b v e r s i v e activities in Islam

These views were expressed by noted ulema and Khateebs during a joint press conference at press club Khyber

Pakthunkhwa Chief Khateeb and renowned religious scholar Maulana

Tayyab Qureshi said that the recent suicide attack at Ali Masjid mosque at Khyber in which a police inspector was martyred,

was highly condemnable and declared that such terror acts were against the teaching of Quran and Sunnah of the Holy Prophet

(PBUH)

The Holy Quran says whosoever killed a person it shall be as if he had killed all mankind,” Maulana Tayyab Qureshi reiterated He said that the religious scholars of all faiths and schools of thoughts were unanimously agreed that attacks on security forces police and the

people of Pakistan were strictly prohibited as our religion did not allow terrorism in all forms and manifestations

Religious scholar, Dr Maulana Ataur Rehman said that Islamic ideology was the key for creation of Pakistan and that was why islam was declared the official religion of the country Strongly condemning suicide attacks on security forces of Pakistan including Ali Masjid attack at Khyber Maulana Ataur

NA passes Pakistan Air Safet y Investigation Bill, 2023

Rehman said that all the religious scholars had passed a unanimous Fitwa of Pagham e Pakistan against menace of terrorism and suicide attacks and demanded exemplary punishment to elements involved in killing of innocent people and attacking Ali Masjid mosque He also demanded for the reconstruction of the Ali Masjid so that people of the area could continue their worship in it Sheikhul Hadees Dr Maulana Abdul Nasir of Wafaqul Madaras said that attacks on Ali Masjid had exposed the evil mindset of the attackers who have no regard for Islam and humanity and demanded strict action against such elements

The Ulema said that attacks on Ali Masjid and Police Lines Peshawar Mosques exposed the barbaric mindsets of suicide bombers and their facilitators and abettors and the entire nation was backing the valiant security forces of Pakistan to frustrate the evil designs of the attackers and enemy of peace Later, the ulema prayed for eternal peace of the all martyrs of Pakistan including Shaheed Inspector of Ali Masjid suicide attack Adnan Afridi

Punjab bans drone coverage of Muharram processions

LAHORE

s tA f f R e p o R t

The Punjab government has imposed a complete ban on drone coverage of Muharram 9 and 10th processions across the province to prevent any potential security risk and maintain

ISLAMABAD

s tA f f R e p o R t

Defense Minister Khawaja Asif on Thursday refused to tender apology over his recent remarks against the Pakistan Tehreek-e-Insaf (PTI) women lawmakers

Yesterday Kh Asif during speech in the house had called PTI women senators garbage and remains of PTI in the senate During his address to the National Assembly, PTI women senators demanded an apology from Khawaja Asif regarding his comments

However the Defense Minister stood firm and defended his statements stating that he would only apologize if the PTI chairman apologizes for his remarks concerning Maryam Nawaz Khawaja Asif clarified that his remarks were not intended to be gender-specific, and he did not make any derogatory comments about women Earlier, Defence Minister Khawaja Asif ’s remarks about Pakistan Tehreek-eInsaf (PTI) women lawmakers created a furor in the National Assembly Earlier Khawaja Asif s comments about PTI women lawmakers caused uproar in the National Assembly The federal minister referred to PTI women senators as garbage and remains of PTI in the senate Following this, Law

Minister Azam Nazir Tarar requested the speaker to expunge the words spoken in the heat of the moment by both PTI senator Ali Zafar and Khawaja Asif PTI senator Ali Zafar had referred to the current members of the assembly as a herd of sheep The speaker granted the request and expunged both remarks from the assembly s proceedings In 2016, Khawaja Asif faced criticism from opposition leaders for referring to Shireen Mazari as a “tractor trolley” during her attempt to protest against Asif ’s briefing on loadshedding in the country during Ramazan

According to details, the decision was taken during a crucial meeting held here with Caretaker Punjab CM Mohsin Naqvi in the chair The participants reviewed various measures taken for security and directed the police officers to maintain public order and safeguard people during observance of the religious occasion

The key discussion of the meeting was centered on reviewing the security plan with a specific emphasis on Ashura Day, where large processions and congregations are expected

During the meeting special

attetion was given to ensure safety of foreign nationals, particularly Chinese nationals, in light of recent security concerns

To bolster security efforts it was decided that joint flag marches will be conducted by the Army Rangers and police forces to demonstrate a show of force and deter any potential threats

The Punjab s caretaker CM directed all Commissioners and RPOs to prepare advanced plans for processions and gatherings taking

into account the possibility of rains that might affect the arrangements

In line with promoting religious harmony and maintaining peace, the meeting stressed the enforcement of a compiled code of conduct to ensure discipline and safety during Muharram The security of mosques Imambargahs, and other places of worship was singled out as a top priority

Participants in the meeting also recognized the vital role that members of peace committees and elected representatives play in fostering unity and understanding among different communities

Additionally, Commissioners and RPOs were tasked with closely monitoring the performance of District JITs (Joint Investigation Teams) concerning incidents that occurred on May 9 demonstrating a commitment to addressing past incidents and ensuring accountability

S ino -Pak militar y cooperation delivering high-level per formance: Gen Li S hang fu

BEIJING Ag e n c i e s

Chinese State Councilor and Defense

Minister Gen Li Shangfu said that the military cooperation between China and Pakistan is delivering high-level performance, with close high-level exchanges and constantly improved cooperation mechanisms

“The cooperation between the Chinese and Pakistani air forces has yielded fruitful results The two sides

should make good use of the Shaheen (Eagle) joint training platform to actively carry out experience exchanges, further enhance synergy and expand the depth of cooperation ”

According to China Military Online here on Thursday Gen Li Shangfu said this during his meeting with Chief of Air Staff of Pakistani Air Force (PAF), Air Chief Marshal Zaheer Ahmed Baber in Beijing

In his opening remarks Gen Li Shangfu noted that China and Pakistan

s tA f f R e p o R t Pakistan Air Safety Investigation Bill 2023 was smoothly sailed through National Assembly here Thursday The Bill was moved by Parliamentary Secretary for Parliamentary Affairs Saad Waseem The House passed the Bill following its clause by clause reading The parliamentary secretary also introduced further amendments in the Newspapers Employees Condition of Service Act 1973 (the Newspapers Employees Condition of Service Bill, 2023) and a National Commission of Human Development Ordinance 2002 (National Commission of Human Development Bill 2023) A bill to provide the establishment of Pakistan Sovereign Wealth Funds to contribute in sustainable economic development through the management of funds assets to achieve optimal use according to best international standards policies and practices to maximize their values for future generations (The Pakistan Sovereign Wealth Funds Bill 2023) was also introduced in the National Assembly by Saad Waseem on behalf of Minister for Finance Mohammad Ishaq Dar

CJP summons JCP meeting on August 2

ISLAMABAD

s tA f f R e p o R t

Chief Justice of Pakistan (CJP) Umar Ata Bandial on Thursday summoned meeting of the Judicial Commission of Pakistan (JCP) on August 2 The chief justice has summoned the JCP meeting to consider the confirmation of Justice Ibrahim Khan as regular Chief Justice of the Peshawar High Court (PHC) Justice Ibrahim Khan is currently serving as acting CJP PHC The post of PHC chief justice fell vacant due to the elevation of then Chief Justice Musarrat Hilali to the Supreme Court of Pakistan With her elevation she became the first woman judge from the province in the apex court Born in Swabi on April 15, 1962, Justice Ibrahim was elevated to the high court as an additional judge on August 11, 2016, and subsequently he was confirmed as a judge of the high court on June 1 2018

c o m m u n i t y w i t h a s h a r e d f u t u r e i n t h e n e w e r a , ” h e a d d e d On the

are all-weather strategic cooperative partners and iron-clad friends Chinese President Xi Jinping attaches great importance to the relations between China and Pakistan and has provided overall guidance for the growth of bilateral relations he added We s h o u l d w o r k t o g e t h e r t o i m p l e m e n t t h e i m p o r t a n t c o n s e n s u s r e a c h e d b y t h e l e a d e r s o f t h e t w o c o u n t r i e s , c o o p e r a t e c l o s e l y i n v a r i o u s f i e l d s a n d p r o m o t e t h e b u i l d i n g o f a n e v e r - c l o s e r C h i n a - P a k i s t a n

He said that Pakistan highly values i t s t r a d i t i o n a l f r i e n d s h i p w i t h C h i n a a n d w i t h t h e p r o f o u n d c h a n g e s unfolding in the international situation a n d g e o p o l i t i c a l l a n d s c a p e , t h e t w o sides should forge a closer and stronger friendship

The air force is a key force in the future battlefield and the PAF is willing to further deepen cooperation and exchanges with China in combat, equipment and other fields, so as to make positive contributions to jointly addressing ever-changing regional security challenges

Noman, Abdullah shine as Pakistan whitewash S ri L ank a in Test series

CLOMBO

s tA f f R e p o R t

Noman Ali took seven wickets to lead

Pakistan s rout of Sri Lanka by an innings and 222 runs to clinch the second Test inside four days and sweep the series 2-0 on Thursday

The left-arm spinner took the first seven wickets and fast bowler Naseem Shah took the final three to bowl Sri Lanka out for 188 in the evening session in Colombo

Noman returned career-best figures of 770 in his 15th Test to hand Pakistan their biggest Test win over Sri Lanka and fourth overall in innings victories Sri Lanka suffered their heaviest Test defeat at home

Everyone stepped up and showed hunger to win this series skipper Babar Azam said Pakistan, who won the opening Test by four wickets, declared their first innings on

576-5 after just two overs in the morning session with a blowout lead of 410 runs

Opener Abdullah Shafique stood out with his 201 in an innings that saw three century stands including a 124-run partnership with Agha Salman who smashed an unbeaten 132

Runs came quickly for Pakistan s batsmen, whose approach had a touch of “Bazball” the aggressive style devised by England’s coach Brendon McCullum and skipper Ben Stokes Being aggressive was part of the plan it s something we had discussed before coming here said Azam We wanted to play positive cricket So all the credit to the boys It s not easy to play spin here but they played very well ”

Shafique was named man of the match for his maiden Test double ton Salman was man of the series for his 221 runs including a 177-run stand with double-centurion Saud

Shakeel in the first match in Galle

Sri Lanka started strongly with an opening stand of 69 until Noman bowled Nishan Madushka for 33 with his first ball of the day and ruled the roost thereafter

Skipper Dimuth Karunaratne fell for 41 after lunch and Noman soon sent back Kusal Mendis and Dinesh Chandimal before Dhananjaya de Silva attempted to resist in his brief stay with Mathews De Silva fell for 10 when he was caught out by Abrar Ahmed while attempting a big heave Angelo Mathews hit an unbeaten 63 and put up

he

with

‘Stubborn’ Kh Asif refuses to apologize over his remarks against PTI women

P T I ’ S A L I M O H A M M A D

K H A N F R E E D A F T E R

8 0 D AY S O F I N C A R C E R AT I O N

PESHAWAR

S ta f f R e p o R t

HOURS after the Peshawar High Court (PHC) instructed authorities to immediately release

him

PTI leader Ali Mohammad Khan was on Thursday set free from Mardan jail after nearly 80 days of incarceration

Confirming his release, Ali

Mohammad’s lawyer Shehryar Khattak told media that the PTI leader had departed for his village in Khyber Pakhtunkhwa s Hathian According to his lawyer, the former MNA was arrested eight times and kept behind bars for 80 days

Ali Mohammad was first arrested by the

Secretariat police on May 11 under Section 3 of the Maintenance of Public Order Order (MPO) in connection with the violence that took place on May 9 the day violent protests broke across the country following PTI Chairman Imran Khan’s arrest

“But despite getting bail he was arrested seven times by the anti-corruption

establishment in Mardan in several cases Khattak claimed

The lawyer said that his client was granted bail in a corruption case by a Peshawar sessions court on Wednesday against surety bonds of Rs200 000

However immediately after the court granted his release Ali Mohammad was rearrested under 3-MPO (Maintenance of Public Order) for one week on the orders of the Mardan deputy commissioner

Finally he was released today on orders of the Peshawar High Court Khattak added Earlier today, the PHC directed authorities to immediately release Ali Mohammad after his lawyer approached the court for bail

The proceeding was attended by Ali Mohammad s lawyers Nadeem Shah and Ali Zaman Mardan additional deputy commissioner was also present During the hearing, which was conducted by Justice Ijaz Anwar and Justice Fazal Subhan the court expressed displeasure over Ali Mohammad s arrests If one deputy commissioner is punished for indulging in illegal activities it would be a lesson for everyone else, Justice Anwar remarked

He asked the additional deputy commissioner

S enate panel passes Toshakhana bill proposing penalt y for hiding state gif ts

ISLAMABAD S ta f f R e p o R t

The Senate Standing Committee on Cabinet Secretariat

p u b l i c o ff i c e h o l d e r s T h e i s s u e h a s n o t a b l y b e e n b r o u g h t t o t h e f o r e f r o n t i n r e c e n t m o n t h s a f t e r a c c u s a t i o n s a g a i n s t P a k i s t a n Te h r e e k - i - I n s a f ( P T I )

C h a i r m a n I m r a n K h a n o f a l l e g e d l y c o n c e a l i n g s u c h g i f t s d u r i n g h i s t e n u r e a s p r i m e m i n i s t e r

The government bill comes as a respnse to address gaps and deficiencies in the current system aiming to establish clearer regulations governing the reporting and depositing of gifts received by government officials

During the committee’s deliberations, Senator Bahramand Khan Tangi, who had earlier formulated the ‘Toshakhana (Management and Regulation) Bill 2022 as a private member was commended for his valuable contributions

t i v e c o n t r o l o f t h e C a b i n e t D i v i s i o n w h i c h s t o r e s p r e c i o u s g i f t s g i v e n t o r u l e r s p a r l i a m e n t a r i a n s b u r e a u c r a t s a n d o t h e r o ff i c i a l s b y h e a d s o f o t h e r g o v e r n m e n t s a n d f o r e i g n d i g n i t a r i e s –h a s b e e n a t t h e c e n t r e o f a t t e n t i o n i n r e c e n t t i m e s d u e t o h i g h - p r o f i l e c a s e s i n v o l v i n g t h e c o n c e a l m e n t o f g i f t s b y

Tariffs

deliberation

Senate passes amends to Army Act to punish ‘unauthorised disclosure’ of information

CONTINUED FROM PAGE 01

According to a press statement from the Senate Secretariat, Tangi’s inputs were incorporated into the ‘Statement of Objectives’ of the bill enhancing its overall content and effectiveness

Senator Taj Haider s amendment to the bill which focused on the utilisation of funds from the disposal of gifts, was

also unanimously accepted by the committee Despite initial reservations expressed by the Secretary of the Ministry of Parliamentary Affairs the committee acknowledged the significance of the proposed amendment in strengthening the bill The session witnessed an engaging discussion on the definitions and scope of gifts with Senator Zuberi expressing concerns about the government bill s vagueness I n r e s p o n s e , t h e c o m m i t t e e c h a i r m a n e m p h a s i s e d t h e n e e d f o r a t h o r o u g h r e v i e w b e f o r e m a k i n g a n y decisions The committee also explored t h e p o s s i b i l i t y o f m e rg i n g S e n a t o r Ta n g i s p r i v a t e m e m b e r b i l l w i t h t h e g o v e r n m e n t b i l l w i t h p r i o r i t y g i v e n t o t h e f o r m e r To ensure clarity and coherence, it was proposed that Senator Tangi and the Ministry of Parliamentary Affairs undertake a detailed clause-wise review of the bill together Recommendations from the ministry would be considered for incorporation into Senator Tangi s sponsored bill, subject to further

After hours of careful consideration and deliberation the committee ultimately passed The Toshakhana (Management and Regulation) Bill, 2023 with a few amendments T h e b i l l , o n c e e n a c t e d , w i l l r e q u i r e t h e p r e s i d e n t , p r i m e m i n i s t e r, c h i e f m i n i s t e r s g o v e r n o r s p a r l i a m e n t a r i a n s b u r e a u c r a t s o ff i c e r s o f t h e a r m e d f o r c e s m e m b e r s o f t h e j u d i c i a r y a n d t h e i r f a m i l y m e m b e r s t o p r o m p t l y d e c l a r e a n d d e p o s i t a n y g i f t s r e c e i v e d i n t h e To s h a k h a n a N o nc o m p l i a n c e w i t h t h i s r e q u i r e m e n t c o u l d l e a d t o h e a v y p e n a l t i e s o f u p t o f i v e t i m e s t h e a s s e s s e d m a r k e t v a l u e o f t h e g i f t T h e b i l l w i l l n o w p r o c e e d t o t h e S e n a t e f o r f u r t h e r c o n s i d e r a t i o n a n d

for Thar coal Block I & II approved

have

would

dollarised supply chain ” Rauf adds further Pakistan benefitting as a whole is always advantageous However can consumers expect any direct benefits from this development?

Should we expect any cost savings in our electricity bills?

“The primary consumers for Thar Coal are power generation companies Rauf elucidates In terms of power generation there are two kinds: those located in Thar, and those outside Thar The former are set to be the immediate beneficiaries

CONTINUED FROM BACK PAGE

There s that We know what happened

However, this is where it gets interesting

“As the coal mines augment their production capacity they can spread their fixed costs over a larger quantity of coal produced elucidates Waqas Ghani Deputy Head of Research at JS Global Capital This would result in a decline in the average cost of production per tonne of coal,” he continues “With reduced production costs, the mine-mouth power plants that utilise coal from Thar coalfields to generate electricity can reap the benefits Ghani concludes Those outside of Thar will also benefit when the decision is weighed against the alternatives and the associated transportation costs to procure said alternatives

“In Karachi there is Lucky Electric

They purchase from them They incur transmission costs which are around $10, he explains Instead, if they were to order coal from Indonesia, for example, which is similarly priced, then they would have to incur maritime freight costs which are higher ” Rauf continues Similarly imported coal is subject to custom duties and other charges such as port handling he adds

“In Rupee terms, if I talk about Lucky Electric if they purchase coal from Thar now and purchase coal from Indonesia at the same dollar price then there would be a saving of around 15-20% because the transportation cost from here is lower and local coal is not subject to duties, Rauf expounds

“When power generation companies reap the benefits of utilising Thar Coal the electricity they produce and supply t o t h e g r i d w i l l b e m o r e e c o n o m i c a l R a u f c o n t i n u e s M o r e a ff o r d a b l e e l e c t r i c i t y w i l l u l t i m a t e l y b e n e f i t t h e c o n s u m e r T h i s i s a c o m p r e h e n s i v e c h a i n o f a d v a n t a g e s , ” h e e l a b o r a t e s “ D u e t o t h e s i g n i f i c a n t d e c l i n e i n i n t e r n a t i o n a l p r i c e s t h e p r i c e g a p t h a t previously existed has diminished If the benefit was 30-40% previously after accounting for transportation and other costs it now stands at 15-20% due to t h e c o l l a p s e i n t h e p r i c e o f f o r e i g n coal,” Rauf muses Finally how can we discuss coal without talking about the cement industry? Does the cement industry gain from this?

o t h e r h a n d ” H a q c o n t i n u e s “ d e m a n d f o r n e w v e h i c l e f i n a n c i n g h a s p l u m m e t e d b y more than 60% due to the aforementioned

factors

And what about the lack of defaults?

The contractions in automotive lending are not as straightforward as one might anticipate These contractions can be attributed to a dearth of new loans as well as premature loan terminations

Furthermore, even if either of these scenarios is transpiring, why isn t there a crisis of individuals defaulting on their car loans? After all Haq has depicted a rather dismal picture of the current state of the industry These are the more granular and arguably interesting facts that have emerged when looking back at FY 2023

INVESTIGATING THE DETAILS

So are there not enough new loans, or is the industry witnessing early terminations?

“A convergence of events has transpired ” explains Haq Due to a hike of up to 700-800 basis p o i n t s i n K I B O R w i t h i n a s i n g l e y e a r c o u p l e d w i t h t h e v a r i a b l e r a t e n a t u r e o f c o n s u m e r a u t o l o a n s a n d f i n a n c i n g , t h e r e has been a multifold increase in repayment a m o u n t s ” e l u c i d a t e s H a q “ F u r t h e r m o r e t h e s e c o n d a r y v a l u e o f v e h i c l e s h a s a p p r e c i a t e d c o n s i d e r a b l y e n a b l i n g c o n s u m e r s t o p a y b a c k t h e i r l o a n s a n d

That was after all a very significant feature of the 2007/8 crisis

“The current crisis is more profound than that of 2007/8 ” explains Haq “However consumers are now much more knowledgeable credit-savvy and disciplined primarily due to the advent of credit bureaus, which were in their infancy back then Additionally, Haq notes that the lessons and hardships of the 2007/8 crisis have prompted banks to approve only creditworthy consumers enhance their risk acceptance criteria and implement robust risk collections and recovery policies

Haq also highlights the role of the SBP i n g u i d i n g b a n k s t h r o u g h p r u d e n t i a l r e g u l a t i o n s a n d d e v i s i n g f a i r m a r k e t p r a c t i c e s e s s e n t i a l f o r b u i l d i n g h e a l t h y a u t o f i n a n c i n g p o r t f o l i o s “ M o r e o v e r ” h e a d d s t h e a p p r e c i a t i n g s e c o n d a r y m a r k e t v a l u e o f v e h i c l e s h a s p r o v i d e d a n a t u r a l hedge to consumers against default in auto l o a n s H e n c e , t h e o p t i o n o f r e s e l l i n g t h e v e h i c l e a t a m u c h h i g h e r v a l u e r e l a t i v e t o t h e o u t s t a n d i n g l i a b i l i t y i s a l w a y s a v a i l a b l e ”

“At present, cement manufacturers predominantly rely on Afghan coal or coal procured from Dara Adamkhel or Dukki Balochistan Despite Thar coal b e i n g m o r e c o s t - e ff e c t i v e i n c o m p a r i s o n t o o t h e r c o a l v a r i e t i e s i t s l o w e r c a l o r i f i c v a l u e r e n d e r s i t u n s u i t a b l e f o r u t i l i s a t i o n i n c e m e n t p r o d u c t i o n a t l e a s t f o r t h e foreseeable future ” asserts Ghani

In a similar vein Soomro states It is perhaps premature to make a definitive pronouncement I know that Power Cement is conducting experiments with it Thar coal possesses a higher moisture content and, as such, Pakistan requires drying technology on a larger scale to render it more viable ” Moreover Rauf emphasises that there are also supply-side constraints that exacerbate the aforementioned issues

The supply of coal is commensurate with the demand from power generation companies In instances where there is surplus coal from power generation for whatever reason then perhaps its utilisation for cement manufacturing can be investigated Rauf exclaims

According to a senior military official the changes made in the Army Act through these amendments will only be applicable to the serving and retired military personnel and not the civilians After the bill was tabled in the Senate, Jamaat-i-Islami Senator Mushtaq Ahmad said that lawmakers had received the copy of the legislation today “Such legislation should not be enacted in haste and in a haphazard manner ” he said Asserting his patriotism and admiration for the Pakistan Army he said that the Senate would pass the bill with consensus after a discussion but the procedure of the House should not be violated He demanded that the speaker send the bill proposed by Asif to the committee concerned At this, Senate Chairman Sadiq Sanjrani put the motion up for vote after which it was rejected In addition to the bill to amend the Army Act two other bills for amending the Cantonment Act 1924 and the Defence Housing Authority Islamabad Act, 2013 were also passed by the Senate Shortly after they were passed, PPP Senator Raza Rabbani staged a walkout over the haste in passing the bills, terming them “blind legislation” “I think that the three or four bills passed right now [ ] it is a black day in Parliament s history because this is blind legislation which means that we have no knowledge at all as to what each bill entails and how many sections there are in each bill so I stage a token walkout against this blind legislation, he said The Senate chairman sent Shahadat Awan to placate Raza Rabbani PTI senators also staged a walkout from the Senate while Tahir Bizenjo also walked out over sudden presentation of supplementary agenda

Pakistan, KSA to work together on $10b green refiner y project at Gwadar

CONTINUED FROM PAGE 01

The government has resumed talks on the Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline project previously shelved by the previous government, and signed a framework agreement with Azerbaijan for LNG procurement on flexible terms Under the agreement, Azerbaijan will offer one cargo of LNG each month, and Pakistan will have the option to accept or decline the cargo without facing any financial penalties Additionally the government plans to establish schools and hospitals in regions where oil and gas exploration projects will be launched to support and facilitate the local population The envisioned project aims to create an integrated refinery petrochemical complex with a crude oil processing capacity of at least 300 000 barrels per day (BPD) along with a petrochemical facility in Pakistan This complex will include various components such as marine infrastructure a petrochemical complex storage facilities for crude oil and refined products, pipeline connectivity, and more

T wo PIA aircraft standing in Jakar ta for two years

ISLAMABAD:

It has been revealed that two aircraft of Pakistan International Airlines (PIA) have been standing in Jakarta Indonesia for two years In the first year 7 2 million dollars have been lost from the monthly payment of 6 million dollars for the parking of the planes According to official documents available to this scribe, two aircraft of PIA have been parked in Jakarta, Indonesia, including an Airbus A320, which has been parked since September 2021 Monthly payments of 6 lakh dollars are also being made and they had to be brought back after maintenance for 12 months while the maintenance officers of these planes continued to travel abroad at the government expense which caused a loss of millions of rupees to PIA S ta f f R e p o R t

margins implementing cost control measures and introducing consumer-friendly product offerings

Haq also notes that banks are now giving due weight to appreciated secondary market car values and customer contributions (down payments) in their credit policies ” He adds that the ratio of used car financing has risen significantly Improving customer experience and the turnaround time of the credit approval process is becoming a priority, Haq states He reveals that digital initiatives are being undertaken to improve process efficiencies and cope with changing consumer expectations ”

TH E Federal Board of Revenue has frozen PIA s accounts, and though the national flagcarrier claims its operations were not affected, there have been reports of flight delays and cancellations, as well as problems in making bookings While the FBR claims PIA owes it Rs 2 8 billion, PIA concedes only Rs 1 3 billion It is merely another embarrassment in a long series, but for a state-owned enterprise to have such action taken against it by another government organization is a new low PIA has long been pampered child of the government because it is the national flagcarrier and has received numerous bailouts but all the plans to restructure it have failed to produce a turn-around In 2019-20 there was a massive loss of $120 million on revenues of $330 million This is a burden which the taxpayers continue to bear because the airline is always getting a handout from the public treasury A new handout is apparently being considered for a committee headed by Finance Minister Ishaq Dar is considering the restructuring of the airline

Previous attempts have come a cropper because the government cannnot find the political will to reduce the fat in the organization PIA has historically been a place for jobs for the boys with governments of all political affiliations military and civilian alike featherbedding PIA with a vengeance The result has been one of the world’s highest ratios of employees per customer in the world Another result is that every move aimed at trimming the unsustainable salary bill has been met by protests and strikes The latest example is probably the rejection by the officers’ association of the restructuring plan and the demand for a salary hike

Another reason given for PIA’s lack of profitability is the fact that it has to operate certain unprofitable routes in the national interest The solution of dividing the airline in two with one presumably to receive a subsidy for operating those routes and one to operate purely commercially has also been rejected Other SOEs should make sure their taxes are paid lest they face PIA’s embarrassing face With reference to the tax dispute PIA would have collected the taxes from customers so the money would have either been quietly pocketed or been used by PIA to plug its balance-sheets or both In either case it seems that PIA are not just great people to fly with but also to evade with

Dedicated to the legac y of late Hameed Nizami

Arif Nizami (Late)

Founding Editor

Yousaf Nizami

Editor

M A Niazi

Joint Editor Umar Aziz Executive Editor

The cascade effect

The shape of things to come is ugly

PE R H A P S the most dangerous IMF condition of them all is the raising of the power tariff, because it might finally unleash something which has been a nightmare for four decades in WAPDA a cascade effect

That this is also coming at a time of transformation for the power sector means that WAPDA which presently owns all of eight power distribution companies except K-Electric, may be rendered commercially unviable

That tariff hike is set to begin this month, and even though the Rd 7 50 hike is massive, it is just the beginning

The tariff is expected to go up Rs 50 which would lead to an average tariff of about Rs 75 per unit

It had already reached Rs 25 so what the IMF wants is a tripling of the tariff

Even at lower tariffs, there have been power protests, with at least one incident of a distribution company office being attacked There have also been cases of consumers driven to desperation and committing suicide Of course the attack was not because of bills but because of a power breakdown in summer As a sort of reminder that WAPDA is not just a power utility, but also deal with water, power breakdowns in the city also mean the water supply is cut, because Pakistan’s cities get their water from pumping groundwater by electricity-powered tubewells

Actually WAPDA is patterned on the Tennessee Valley Authority of the USA a US New Deal project

It not only built nine hydroelectric dams on the Tennessee River but also controlled the river s flooding navigation, and led to reclamation WAPDA was established not just to build storage dams along the Indus, but also to help irrigate large tracts of land, but also to generate electricity

Like the TVA WAPDA became a power utility

Today the TVA continues to flourish as a utility with nuclear coal-fired natural gas-fired hydroelectric, and renewable and though still wholly owned by the US government, is essentially what in Pakistan is called a GENCO, or generation company Its customers are mostly distribution companies H o w e v e r WA P D A h a s n o t o n l y b e e n u n b u nd l e d b u t m a r k e d f o r p r i v a t i z a t i o n WA P D A h a s only gone in for hydel projects and for the last four decades thermal projects have been in the private s ector, the Independent P ow er P roducers O ne of the main issues with the power sector in Pakistan is that of capacity payments, which is related to the guaranteed rate of return for the IPPs which was something they demanded before coming into Pakistan It should not be forgotten that the guarantee h a s b e e n m a d e b y t h e g o v e r n m e n t a n d t h u s i s a

c h a rg e o n t h e r e v e n u e s o f t h e g o v e r n m e n t T h i s makes the IMF very concerned that the government can pay, and that too in foreign exchange Loadshedding has been as big a headache for

Pakistani governments as it has been a tribulation for Pakistani consumers ever since the 1980s With ever expanding demand, Pakistani generation has been unable to keep up Governments build IPPs in a panic, and turns to such solutions as Thar coal generation (which would be a major pollutant at a time when the world is trying to go green)

At present furnace-oil generation places a heavy burden on the import bill This was once balanced by exports from power-consuming industries and agriculture, but with the fall in exports that argument does not work as well Even if projections of increased software exports come true though large numbers of computers will consume large amounts of power they still have a long way to go before equaling the demand by the textile industry at full blast

Furnace oil imports have also led to the development of circular debt

That debt is huge about Rs 2 6 trillion in April, and keeps rising The capacity payments have played their part This is why the IMF wants the circular debt paid and is making the consumer do so The idea of a tariff increase was thought of back when loadshedding started

would WAPDA like to rely on that?

More to the point would any government?

H ow ev e r, WA P DA h a s f i rs t

t o m a k e t h e c a p a c i t y

p ay m e n t s , a n d t h u s i t

n e e d s t o m a k e s u r e t h a t t h e

c o n s u m e r p ay s s o m e c a s h

s o t h a t i t c a n m a k e c a p a c i t y

p ay m e n t s I f Pa k i s t a n w a n t s

t o b r e a k o u t o f t h e fo s s i l

f u e l p a r a d i g m , a n d h e a d

The idea was that a higher tariff would lead to lower demand However the fear developed that if WAPDA put this into practice a cascade effect might develop The cascade effect is reasonably familiar in aeronautics medicine and ecology and postulates that an inevitable and sometimes unforeseen chain of events would occur due to an act affecting a system Then as now, electricity was an essential, and thus it is price-inelastic, in that fluctuations in the tariff do not affect demand If the tariff goes down consumption will not go up Conversely if it goes up consumption will not go down However there is a limit At some point consumers will simply refuse to pay If enough do for long enough, consumers will be disconnected en masse And at a certain point, WAPDA will no longer have enough consumers to be viable

t ow a rd s a g r e e n e c o n o my, i t

w i l l h av e t o b r e a k f r e e o f

t h e I M F Ês d e m a n d s . T h e

p r e s e n t t a r i f f h i k e , d e s p i t e

t h e p a i n i t w i l l c a u s e , w i l l

n o t r e a l ly s o l v e a ny t h i n g

Already there has appeared the first sign of a cascade effect in the 9 5 percent decline in generation in the fiscal year just ended This has not yet translated into disconnections, but is a severe anomaly in a developing country It should not be forgotten that there are still rural areas which have not been electrified Another development which will change the way things are done in the power sector, is still to be accommodated, the development of solar power wind power and other renewables This is apart from the hydel potential which remains immense Not many domestic consumers have gone offgrid, for the few who have installed solar power have retained a WAPDA connection for their installations produce more electricity than they consume And WAPDA is the default customer WAPDA deducts the sum payable from the electricity which means that night-time electricity does not cost the consumer One problem with this is that if consumers pay WAPDA less cash than they used to, it will not be able to make the capacity payments it had agreed to Thus we have the sight of WAPDA discouraging domestic consumers from making the switch As electricity is also set to replace fossil fuels for transport, both of people and goods, as vehicles go electric, it should have been WAPDA encouraging all its consumers to go solar WAPDA does not have any firm plans for solar power generation even though it should probably be the lead organization on this If it got into this it would be able to lower its generation costs tremendously

Unfortunately mass disconnections will be accompanied by a modicum of suicide So far there have not been any farmer s suicides resembling those that are taking place across the border, but it is worth noting that some of those suicides were committed when farmers were unable to pay tubewell bills There is a strong cultural and religious predisposition against suicide in both rural and urban areas but

T h e p o l i t i c i s a t i o n o f s o c i a l

m e d i a i n P a k i s t a n

S

FR O M the period of communication and information-sharing through letters and telegrammes, to telephonic communication and noe to social media the world of communication and informationsharing has been revolutionized Social media is a platform where one expresses one s opinions engages in political debates and mobilizes for various reasons The rise of social media in Pakistan has impacted its political landscape Despite facilitating easier connectivity and engagement the politicization of social media has brought many challenges and opportunities

The politicization of social media in Pakistan has impacted the various aspects of politics and society Social media has provided an interactive platform for political parties, leaders, and activists to engage with their followers, disseminate information among them and mobilize them for their political gains This engagement through the medium of social media has resulted in greater political participation especially in youth, which can be witnessed through the increasing voter turnout Along with that, social media has empowered people to hold politicians accountable, voice their concerns and have their say in critical issues of the state

However with all these facilitations provided by social media there have also emerged certain challenges to tackle Social media has an abundance of fake news, misinformation, and propaganda which keeps on spreading, and that can potentially lead towards the amplification of extremist narratives Such misinformation poses a potent threat to the existing pillars of democracy and trust in public institutions

These factors make social media a very difficult platform to extract facts from fiction

The world has moved way forward from traditional warfare If World War III happens, it would surely be a war of technology and information The weaponization of information is also a significant challenge faced by the social media users Social Media has become a tool of sharp power for the political parties and individuals who exploit the social media platforms to perform character assassinations, manipulate public opinion, and engage in structured disinformation campaigns This rapid spread of misinformation creates a societal divide and chaos which hinders the development of society and state

This spread of misinformation and propaganda through social media platforms can have consequences in the real world, especially during elections The politicians and political activists manipulate the public opinion, influence the electoral outcomes and undermine the integrity of the democratic process Due to the modernization

of technology there is a significant threat of foreign interference and use of bots and troll armies to exploit and manipulate the online discourse which further exacerbates the risks

The feature of anonymity is being misused that often causes harassment toxic online behaviour and threats

Most often the political discussions take extremist angles leading towards personal attacks which eventually increase the societal divide and hindrance in healthy societal atmosphere and dialogue Due to the lack of accountability, moderation, and regulation at the social media platform these hate speeches misinformation and threats keep on spreading

Despite all these challenges faced through social media the politicization of social media also provides opportunities and benefits Social media platforms being an essential tool for po-

litical mobilization can also help in grassroots activism, and citizen engagement Social media becomes the platform where marginalized people can raise their voice and highlight their issues It also facilitates the sharing of alternate narratives contrary to the state’s or the traditional media s narrative Political parties can interact with more people particularly youth through social media platforms and develop more inclusive political agendas

To address the issues faced through the politicization of social media platforms, a multi-faceted approach is necessary There is an immediate need to improve digital literacy programmes to provide citizens with the awareness and skills to critically evaluate the information and identify disinformation A regulating and monitoring mechanism should also be enforced by the social media platforms to counter the spread of misinformation, regulate content, and enforce guidelines

A multi-level effort engaging government civil society and social media platforms is also important to develop effective mechanisms to counter online harassment disinformation and hate speeches Strengthening the legal framework and enforcing cybercrime teams to hold individuals accountable for any online actions is crucial in banishing the toxic and extremist behaviour often witnessed on these platforms

There exist both positive and negative aspects of the politicization of social media in Pakistan While it is increasing the political participation, and greater access to information, the rapid spread of misinformation, online threats, harassments, and hate speeches are not neglible To empower the social media for positive political participation multi-pronged efforts are required By fostering responsible online behaviour promoting digital literacy and implementing robust regulation, Pakistan can navigate the challenges and embrace the opportunities provided by the politicization of social media

The writer is a freelance columnist

However, WAPDA has first to make the capacity payments, and thus it needs to make sure that the consumer pays some cash so that it can make capacity payments If Pakistan wants to break out of the fossil fuel paradigm and head towards a green economy it will have to break free of the IMF s demands The present tariff hike despite the pain it will cause will not really solve anything

The writer is a member of staff

E d i t o r ’ s m a i l

S e n d y o u r l e t t e r s t o : L e t t e r s t o E d i t o r Pakistan Today 4 - S h a a re y F a t i m a J i n n a h L a h o re P a k i s t a n E - m a i l : l e t t e r s @ p a k i s t a n t o d a y c o m p k L e t t e r s s h o u l d b e a d d re s s e d t o Pakistan Today e x c l u s i v e l y

The dair y sector

PA K I S TA N is a growing economy Pakistan s agriculture sector continues to be the largest sector and a dominant driving force for economic growth

The rural population seeks it as the main source of earning and a critical means to ensure food availability for people in both rural and urban areas Agriculture is also the main sector of the economy which provides raw material to industrial units, like textile, sugar, leather and feed mills In short agriculture itself has export potential like say in the shape of rice and it is raw material provider to several export-oriented industries

According to a report by the Small and Medium Enterprises

Development Authority (SM E D A) titled Dairy and Livestock Sector of Pakistan , the livestock subsector is contributing 60-70 per cent to valueadded agriculture and 11 53pc to the national gross domestic product (GDP) It is comparatively less inconsistent in terms of output compared to the other agriculture subsectors

In fact Pakistan ranks among top five milk producing countries globally Dairy and livestock sector comprises around 80 million cows and buffaloes and 100 million sheep and goats producing more than 60 million tonnes of milk besides producing, among other things, meat and hides

Within the domain of livestock, milk is the most important commodity, with demand growing 10-15pc annually Yet, the production is increasing by only 3-4pc annually Due to the supply gap of 3 5 billion litres in 202021 value-added products such as cheese butter and powdered milk were imported to meet rapidly rising domestic demand Bridging the milk supply gap is a big challenge for policymakers in Pakistan

There is a dire need to bring the livestock sector on the development agenda, conceiving a top-down framework to meet the demand and supply gap with the aim of improving its GDP contribution and ensuring larger socioeconomic development and growth The reasons behind this prevailing gap are efficiency losses in the production process lack of awareness in farmer and producer communities for increasing milk output lack of interlinkages with the value and supply chain policy issues and resource restraints regarding implementation of initiatives at the macro level

The current scenario within the dairy sector does not give a reason to expect much In order to meet existing and potential domestic demand, major reforms need to be introduced in the sector Conventional milk production, collection and distribution do not meet quality and hygiene standards which are further intensified by inappropriate facilities of storage and transportation as well as impurity of the product itself

These issues make it difficult to achieve desirable growth and trade targets Policy measures are needed to improve the sector s overall performance and growth

FURQAN HYDER SHAIKH HYDERABAD

A risky affair

T H E risky and illegal practice of one-wheeling has been on the rise in most urban areas for some time but it is a rather new phenomenon in Islamabad One-wheeling poses a threat to the rider s safety as well as to the safety of pedestrians and other commuters It is a violation of traffic laws and may lead to serious accidents and negative perceptions of young people in the community It also puts a strain on the already overburdened emergency healthcare services in hospitals, as they are often called upon to treat injuries resulting from these accidents The government should address this problem This can include increasing enforcement of traffic laws and educating the public about the hazards of one-wheeling Besides parents should also take responsibility in this regard and should educate and guide the younger ones to make safe and legal choices Such efforts may include providing mentorship and discussing at home the hazards and fallouts of one-wheeling

ShehbAZ RAjPeR

There exist both positive and negative aspects of the politicization of social media in Pakistan While it is increasing the political participation, and greater access to information, the rapid spread of misinformation, online threats, harassments, and hate speeches are not neglible

Need for a Neutral Caretaker Government

The past is replete with bad examples

and Gen Ayub ruled for 11 years, followed by Gen Yahya for another three years

T h e f i r s t g e n e r a l e l e c t i o n s u n d e r t h e s y s t e m o f

adult franchise were held 23 years after independence

(in December 1970) Held under the Legal Framework Order 1970 promulgated by General Yahya the elections were free and fair However the result was not accepted This led to agitation by the majority party (the Awami League), which was sought to be crushed by a military operation The action led to bloodshed, d e s t r u c t i o n a n d l a rg e - s c a l e e x o d u s o f B e n g a l i s t o

RI G G I N G in elections is a common phenomenon in Pakistan Elections are hotly contested to win by all means fair or foul Thus complaints of unfair means and corrupt practices almost always follow an election: be it election for National Assembly, Senate, Provincial Assembly or local body In the absence of electoral support, elections are avoided/evaded, just like the resistance of the incumbent PDM Government to holding snap elections in the Punjab and KP

It is an old malady suffered by our nation Earlier on the Founding Fathers of our first indigenous constitution i e , Constitution of 1956, deliberately delayed (for nine years), the framing of the constitution, lest they had to face the election! And even when the Constitution was adopted and operationalized they did not opt for going to the hustings Actually being indirectly elected (by the provincial legislatures) they hardly enjoyed any representative capacity; and some of them having migrated from India, had no territorial constituency to represent India, on the other hand, framed its Constitution and enforced it on 26 January 1950, followed by general elections And thereafter, periodic elections were routinely held which led to the gradual strengthening of their institutions and stability of the democratic system

Pakistan however was not so fortunate Here political instability prevailed throughout its existence Lacking popular mandate, successive governments were toppled, not through legal or constitutional means, but by adopting devious methods Thus, during the period 1947 - 1958 there were seven changes of Prime Ministers not through adverse votes in parliament but by political maneuvering palace conspiracies threats of intimidation of disqualification and lure of office etc

Ultimately, in October 1958, the Army (hereinafter referred to as Establishment) snatched the reins of power

India The end result was a big fiasco ending up in the abject surrender of the armed forces and dismemberment of Pakistan Thereafter the first general elections were held in March 1977, under the 1973 Constitution, but proved to be a disaster Disaster, because allegations of massive rigging surfaced The allegations were credible, as besides other illegal and corrupt practices during the election some 69 candidates of the ruling party (PPP) for seats in the National Assembly and Provincial Assemblies including the PM and four CMs returned unopposed! The Opposition Alliance (PNA) then rejected the result and launched agitation, which turned out to be bloody and destructive Some 241 persons died and thousands were injured in police action Besides, both public and private property was damaged or destroyed and the economy suffered due to stoppage of business commercial and industrial activities Ultimately, negotiations started and fresh elections were agreed; but just before the accord was signed the military struck again and Gen Zia assumed control Having tasted the usufructs of political power, they could hardly resist the temptation This was the dawning of a dark era lasting for 11 years and terminating only on the death of the Bonaparte in a plane crash

ticle 224 and adding Article 224A Such changes made the appointment of caretaker regimes subject to consensus between the head of the government and Leader of Opposition If no consensus is reached, then each nominates three names and sends the list to the Parliamentary Committee And in the event of disagreement in such Committee the matter goes to the Election Commission for final decision The caretaker set-ups are for the sole purpose of organizing free and fair elections

I t i s t i m e fo r r e t ro s p e c t i o n by l e a d e rs o f t h e p o l i t i c a l p a r t i e s ; t i m e t o fo r e g o t h e i r b i g e g o s a n d h a t r e d fo r e a ch o t h e r a n d r e s c u e t h e n a t i o n f ro m f a l l i n g i n t o a d e e p a by s s T h e i n t e g r i t y, s t a b i l i t y o f t h e c o u n t r y a n d w e l f a r e o f i t s p e o p l e i s s u p r e m e

T h e 1 9 7 7 d i s a s t e r p r e c e d e d b y t h e u g l y episode of the abuse of state machinery by General Ayub a g a i n s t F a t i m a h J i n n a h i n the 1964 General Elections put in motion a thought p r o c e s s t o f e n d o ff t h e m a n i p u l a t i o n o f e l e c t i o n s b y the incumbent Government Hence, neutral caretaker set-ups were provided by amending Article 48, under the Revival of Constitution Order 1985 The Constitution 20th Amendment Act (2012) introduced further changes to it by amending Ar-

Notwithstanding such arrangement, complaints of rigging and use of unfair means abound A recurring allegation is maneuvering and manipulating election results by the Establishment Thus, the Opposition Alliance (IJI) was formed and funded in 1990 to defeat the PPP headed by Benazir Bhutto The allegation was proved in the Supreme Court (in Air Marshal Asghar Khan s Case 2012), and the Court directed the Government to proceed against the former COAS (Gen Aslam Baig) and the former DG ISI (Lt Gen Asad Durrani) Alas, the verdict remains un-implemented till date Ye t a n o t h e r m a j o r i n t r us i o n w a s t h e i n s t a l l a t i o n ( i n 2 0 1 8 ) o f t h e P T I G o v e r nm e n t h e a d e d b y P M I m r a n K h a n I t w a s a n e w e x p e r im e n t i n h a v i n g a h y b r i d regime However, there were s u c c e s s i v e f a i l u r e s o n t h e economic fro-t and mismana g e m e n t i n a d m i n i s t r a t i o n T h i s c a u s e d p u b l i c d i s c o ntent and uproar primarily because of the rising cost of living and galloping inflation Finally there were differences on the appointment of a new DG, ISI So, the protégé was dumped (removed through vote of noc o n f i d e n c e ) a n d r e p l a c e d b y t h e i n c u m b e n t P D M G o v e r n m e n t T h u s , o n e b a n d o f i n e p t n i n c o m p o o p s w a s r e p l a c e d b y a n o t h e r b a n d o f e q u a l l y i n e p t n i n -

Containment of China will only lead to US being isolated in the world

GLOBAL TIMES

IN his book, The Asian 21st Century, Kishore Mahbubani (Mahbubani) a former diplomat who served as Singapore’s permanent representative to the United Nations and president of the UN Security Council pointed out the biggest thing happening in the world yet no Western media would talk about it - the arrival of the Asian century In an exclusive interview with Global Times (GT) reporters

Li Aixin, Qian Jiayin and Yu Jincui, Mahbubani shared his insights on why he believes the American century is over the Asian century is coming and how the US has focused on the wrong battlefields The China-US contest will not be in military dimension; it will be in economic dimension, Mahbubani said

GT: In the book The Asian 21st Century, you pointed out that we will see the end of the era of Western domination and the Asian renaissance What impact will the emergence of the Asia Century bring to the world geopolitical game? And will the impact in turn affect the Asian renaissance?

Mahbubani: There is an interesting story about this book, The Asian 21st Century When it came out as an open-access book in English language in January 2022 the publisher expected only 20 000 downloads of the book Instead now there have been over 3 million downloads in 160 countries So you can see the big gap between 20 000 and 3 million

Why have there been 3 million downloads of the book? The simple answer is that most people around the world understand that this 21st century will be the Asian century But they find that they cannot get information on it because the Western media refuses to accept the fact that the 21st century will be the Asian century So they always keep telling you stories - why Asia is failing; why China s economic growth is over; why the Asians will keep fighting each other They ll only give you negative stories about Asia without trying to explain why it is that the fastest growing economies in the world over the last 20-30 years have been in Asia; how it is that in the year 2000 the US Gross National Product (GNP) was in nominal market terms eight times bigger than China s but now it s only around 1 5 times bigger and China s economy could become larger than that of the US Even the ASEAN countries have done very well In the year 2000, Japan’s economy was eight times the size of ASEAN economies But by last year it’s only 1 5 times larger and ASEAN could become bigger than Japan

These are examples of how there s a phenomenal growth taking place in Asia I think this will continue The good news is that the countries in the Global South understand this, Africans understand this, the Latin Americans understand this To some extent, some Europeans understand it I think France and Germany understand it

There is resistance in the US The US would like to believe that the 20th century was the American century, the 21st century should also be the American century, but that s very unrealistic, because the 20th century was exceptional

In 1950 US GNP was almost 50 percent of the world’s GNP now it is closer to 20 percent The American century is over and the Asian century is coming

GT: We are witnessing that when the US resists the idea, it also carries out practical measures of containment against China

Will these measures work?

Mahbubani: It’s good that you use the word containment because what s interesting is that in the

W h e n e v e r t h e w o r l d ’s N o 1 e m e rg i n g p o w e r, w h i c h t o d a y i s C h i n a , i s a b o u t t o o v e r t a ke t h e w o r l d ’s N o 1 p o w e r, w h i c h t o d a y i s t h e U S , t h e w o r l d ’s N o 1 p o w e r w i l l a l w a y s p u s h d o w n t h e w o r l d ’s N o 2 e m e rg i n g p o w e r T h i s i s a n i ro n l a w o f g e o p o l i t i c s

Cold War the US openly declared that it was carrying out a policy of containment of the Soviet Union

Now in the case of the US-China contest the US government denies that it is carrying out a containment policy of China But what is interesting is that influential commentators, like Edward Luce of the Financial Times, Fareed Zakaria of CNN, have said this is a containment policy When you try to cut off trade ties with China that s containment When you try to stop a supply of chips to China that s containment Containment policy is real The only question is whether it can work I will make a prediction confidently that the containment policy will fail, because China has already integrated itself with the world more than the US has More countries do trade with China than they do with the US The Cold War is the opposite more countries traded with the US than they did with Soviet Union Because of that if the US tries to contain China, instead of the US isolating China, US will find itself isolated from the rest of the world And as a friend of the US, I tell them that’s not wise, don’t do it, take a wiser approach

GT: You raised a new version of the CIA - China, India and ASEAN as the next growth engine of world economy And you are quite optimistic about India’s global leadership in the future Do you think the US will accept the rise of India?

Mahbubani: I’m definitely optimistic for the new CIA which stands for China India and ASEAN which I think will be the fastest growing economies over the next decade or so

You are right that the US is trying to woo India very strongly That s a natural thing that the US is trying to do In the Cold War, Henry Kissinger came to Beijing in 1971 to try and get China to support the US in the contest against the Soviet Union Just as what Henry Kissinger did in 1971 Joe Biden is trying to do in 2023

But I think India is too big a country to become an ally of the US India wants to emerge as an independent pole in a multipolar world That will be good for the world and good for Asia And I think that s why I do not see an alliance developing between the US and India They are cooperating in many areas But I don’t see an alliance relationship between the two

G T: Yo u s u g g e s t e d t h a t i f B i d e n w a s s m a r t h e s h o u l d p r e t e n d t o b e h a r s h o n C h i n a o n t h e s u r f a c e b u t i n r e a l i t y t r y t o s e e k c o o p e r a t i o n W h a t w e a r e w i t n e s s i n g n o w s e e m s t o b e t h e o p p o s i t e T h e U S s a y s i t i s n o t s e e k i n g a n e w C o l d Wa r B u t m o v e s o f c o n t a i n m e n t , d e - c o u p l i n g , a n d d e - r i s k i n g a r e i n c r e a s i n g W h a t d o y o u t h i n k i s t h e m a i n r e a s o n f o r t h i s ?

Mahbubani: I think the main reason for this contest is the iron law of geopolitics which is about 2,000 years old - whenever the world s No 1 emerging power, which today is China, is about to overtake the world’s No

which today is the US, the world’s No 1 power will always push down the world’s No 2 emerging power This is an iron law of geopolitics

wiser policy of trying to integrate China in the global order that China and the US can build together

GT: With increasing high-level contacts between China and the US, and gradual resumption of people-to-people exchanges, what is your prediction for the outlook on the China-US relationship in the near future?

Mahbubani: It s actually good news if the Biden administration tries to have both cooperation and competition Because there are some voices in the US the more extreme voices, just want pure competition and not cooperation

I think the Biden administration was initially under the impression that many countries in the world would rush to support the US in their efforts to contain or isolate China But they have found that very few countries in the world even some of their closest allies, are enthusiastic about trying to contain China So it has taken two years for the Biden administration to understand that the world is not joining them

I think this is also one reason why the Biden administration has become in some ways less confrontational toward China and is now willing to engage in discussions with China again But even as it engages in discussions with China the Biden administration also knows that there s a very strong antiChina consensus in the American body politic, in Congress, in the Pentagon, and, frankly, in public opinion

So that’s why the Biden administration cannot afford to be seen as weak on China From time to time they have to come up with strong hostile statements just to pacify their domestic audience which is why I say that it is better for President Biden to keep talking tough on China to protect himself domestically but continue functionally to cooperate with China

GT: Are you optimistic about a return of rational voices in US political circle and public opinion in the future?

Mahbubani: I think the US has one of the most dynamic, open political systems in the world It is always changing At one stage, the pendulum was swinging toward more and more anti-China sentiment

But now I think more and more intelligent thoughtful rational people in the US are beginning to understand what I tried to say in my book Has China won that this isn t going to work as they say in America that no one s going to join the US in isolating China Therefore, it s better for the US to, in some ways, work with the rest of the world to find different ways of working with China I think that the pendulum may swing but it won’t swing all the way to the point where there will be the end of competition between the US and China; the competition will continue But if it s balanced with enough cooperation, then it s not too bad an outcome That s the most realistic outcome you can get

GT: In the book, you quoted an old strategic adage - in any great war, one should focus on the main battlefield and not get distracted by secondary issues What do you think the main battlefields of China and the US are today?

Mahbubani: I think the main contest between the US and China will play out in the economic arena At

compoops; and additionally, known corrupt! The result is increased miseries of the people, due to inflation in the cost of food, clothing and expenditure on utilities Consequently, there is a greater degree of discontent and desperation among the public

In short the game of thrones played by the power that be has gone on for too long inflicting a heavy toll on the nation s integrity sovereignty stability development and the wellbeing of people

Quite obviously, there has been deviation from the globally accepted norms of democracy and the principles of our Constitution Democratic governance through freely chosen representatives of the people is the norm; and free fair and periodic elections; are a means for sustaining such a system of governance As globally demonstrated, this is the best way to move forward and achieve progress, development and achieve the happiness and prosperity of the people Thus, holding free and fair elections, indeed, constitutes a basic tenet of the representative system and the foundation of democratic government It is so conceived in the Constitution of Pakistan Says the Preamble the State shall exercise its powers and authority through the chosen representatives of the people

Notwithstanding such tall claims, the nation stands today at the edge of a precipice: elections are due in the next quarter and a caretaker set-up at the Centre and two in provinces (Sindh and Balochistan) are to be installed for the sole purpose of organizing free fair and impartial elections

But the optics don t look good The PDM Government and Establishment are seemingly at one page in trying to oust the PTI from the contest The Election Commission, by its conduct in stalling elections in the Punjab and KP also shunned any pretense of neutrality

The Supreme Court too by ignoring its Order of 4 April 2023 for holding such an election also appears to have compromised its independence and impartiality

The caretaker setups in the Punjab and KP, by their conduct and functioning, are anything but neutral In such a scenario, the appointment of neutral caretaker governments tasked to hold free and fair elections will be a farce The results will not be accepted

It is time for retrospection by leaders of the political parties; time to forego their big egos and hatred for each other and rescue the nation from falling into a deep abyss The integrity, stability of the country and welfare of its people is supreme It is high time for a grand dialogue, joined by all stakeholders, including heads of all parliamentary parties at the national and regional level to enter into a dialogue and help reach a compromise on appointing a genuine neutral caretaker set-up and giving it strength and support to organize free fair and impartial elections in the country

The author served as Registrar, Supreme Court and Secretary Law & Justice Commission of Pakistan

the end of the day, the winner will be seen to be the country with a bigger economy That’s why it’s a huge mistake for the US to spend so much time boosting its military presence in East Asia because the contest will not be in military dimension; it will be in economic dimension When the US made the bad decision to withdraw from the TPP at a time when China had joined the Regional Comprehensive Economic Partnership, the US sadly didn’t understand that the name of the game is economics and trade By not participating in these trade agreements across the Pacific the US was actually giving China an advantage in the main economic contest and that s very unwise for the US to do so

PILL AGED ARTEFACTS

India must raise the pitch for their return TRIBUNE

TH E Parliamentary Standing Committee on Transport, Tourism and Culture has stated in its report tabled in Parliament that there is nothing to prevent India from seeking the restitution of the Kohinoor and other antiquities ‘stolen taken or removed in whatsoever manner before Independence or prior to the 1970 UN Convention on prohibiting and preventing illicit import export and transfer of ownership of cultural property It has asked the Ministry of Culture to make efforts to ensure that the famed diamond and other historical artefacts are returned to India The ministry had earlier told the panel that there was no legal basis for seeking the Kohinoor s return from the UK since it was taken away before the Convention came into force However, the committee has suggested that other options can be explored to make the parties concerned reach a ‘mutually acceptable agreement’

The Kohinoor bears testimony to the rampant loot and pillage that marked British rule in India

Other colonial powers were no less brazen in plundering territories under their control around the world Europe s leading museums proudly showcase artefacts whose rightful place is in other continents Earlier this year, a 1912 file accessed by The Guardian had revealed how priceless pieces were extracted from India as trophies of conquest and later given to Queen Victoria India must exert diplomatic pressure on the UK with the aim of getting these antiquities back, irrespective of the circumstances under which they were appropriated

Such an initiative is direly needed as India has historically been indifferent to appreciating and safeguarding its heritage The situation is hardly different today: the panel report mentions that only 30 per cent of the country s antique treasures have been documented so far, even as just 19 per cent of the heritage objects stolen from sites protected by the Archaeological Survey of India have been recovered till now

Dr Faqir Hussain

CHENGDU s tA f f c o r r e s p o n d e n t

CHINA and Indonesia vowed to deepen strategic cooperation on Thursday during a meeting between President Xi Jinping and his Indonesian counterpart Joko Widodo in Chengdu capital city of southwest China’s Sichuan Province

Widodo arrived in the city on Thursday to attend the opening ceremony of the 31st summer edition of the FISU World University Games and visit China

During the meeting, Chinese President Xi Jinping urged both sides to ensure the high standard and high quality of the JakartaBandung High-speed Railway (HSR) injecting more impetus to Indonesia s development

T h e u p c o m i n g r a i l w a y i s a l a n d m a r k project under the China-proposed Belt and R o a d I n i t i a t i v e , a l s o a n e x a m p l e o f t h e h i g h q u a l i t y c o o p e r a t i o n b e t w e e n C h i n a

and Indonesia DEEPEN STRATEGIC COOPERATION

This year marks the 10th anniversary of the establishment of the comprehensive strategic partnership between China and Indonesia

Xi said China is willing to take the occasion as an opportunity to deepen strategic cooperation, set an example for developing countries of sharing a common future pursuing solidarity and cooperation and boosting common development to inject more certainty and positive energy into the region and the world, he said China is willing to initiate the 2+2 dialogue mechanism for foreign and defense ministers of the two countries, with a view to building a high-level strategic mutual trust he noted He urged the two sides to continue to improve cooperation in comprehensive industrial parks focusing on promoting the construction of the Two Countries, Twin Parks cooperation project

China supports the construction of Indonesia’s new capital and the development of the North Kalimantan Industrial Park, and is willing to work with Indonesia to expand cooperation in the fields of new energy vehicles smart cities and jointly promote the industrial digital transformation he said China is willing to continue to expand Indonesia s imports of bulk commodities and high-quality agricultural products, implement the Regional Comprehensive Economic Partnership with high quality and strengthen cooperation in areas such as food security poverty reduction rural revitalization, vocational education, language education, medicine and health, and culture and tourism, Xi added

Noting that this year marks the 20th anniversary of China’s accession to the Treaty of Amity and Cooperation in Southeast Asia he said China is willing to deepen the comprehensive strategic partnership with the Association of Southeast Asian Nations (ASEAN), and support the work of Indone-

Investors dumping China load up on other emerging markets

REUTERS

Global investors are increasingly choosing to bypass China’s markets in favour of other emerging countries that are either gaining from the geopolitical and growth risks stalking the world s second-biggest economy or are far removed from them

Reuters analysis shows a massive jump in the assets of emerging market (EM) mutual funds and exchange traded funds (ETFs) that exclude China as U S and European investors turn more wary of being exposed to the Asian giant Investor aversion to China has intensified this year following a faltering postCOVID economic rebound, disappointment over the absence of robust policy response and renewed Sino-U S tensions over trade tech and geopolitics Some of the money is being diverted into markets directly benefiting from China s economic pain, such as Mexico, India, Vietnam and other locations that are replacing it across global manufacturing

supply chains Other investors are simply moving to markets with better growth prospects such as Brazil China s export dominance is ebbing, creating opportunities for other emerging market countries to fill the gap, including Mexico, India, and Southeast

Asian nations ” said Malcolm Dorson a New York-based senior portfolio manager at ETF manager Global X The scale of change needed in global supply chains could drive such capital flows for the next decade, he said R e f i n i t i v d a t a s h o w s C h i n a - f o -

sia as the rotating chair of the ASEAN China is willing to strengthen communication and collaboration with Indonesia in multilateral mechanisms such as the G20 and BRICS, Xi said For his part, Widodo said the Jakarta-Bandung HSR will be

Kuwait hangs 2015 mosque bombing convict among five

KUWAIT CITY

Ag e n c e s

c u s e d m u t u a l f u n d s s u ff e r e d a n e t o u tf l o w o f $ 6 7 4 m i l l i o n i n t h e s e c o n d q u a r t e r o f t h i s y e a r w h i l e i n c o n t r a s t n e a r l y $ 1 b i l l i o n w e n t i n t o E M e xC h i n a m u t u a l f u n d s The iShares MSCI Emerging Markets ex-China ETF , the

Kuwait put to death five people on Thursday, including a man convicted of involvement in a 2015 Islamic State group suicide bombing that killed 26 people, the Public Prosecution said In a statement, the Public Prosecution said it oversaw the “implementation of the death sentence in Kuwait s Central Prison against five people most of them accused of murder

South Korea and Taiwan and the supply chain changes were offering investors better opportunities than China he said

‘ We are dying’: Migrants ’ plea from Libya-Tunisia border

opened to traffic on schedule in August this year and strategic projects such as the construction of Indonesia s new capital and the development of the North Kalimantan Industrial Park, in which China is actively involved, are progressing smoothly RAS

African migrants pleaded to be saved from a desert zone between Libya and Tunisia, weeks after Tunisian authorities allegedly dumped dozens of them there with nothing We are dying We are dying by the minute a Nigerian who wanted to be identified only by his first name, George, told Please, I m begging you Take us from here now,” said George, 43 “Come and rescue us from this place ” On Tuesday Libya’s interior ministry said the bodies of five African migrants had been found near Tunisia s border The group of about 140 mi-

They include Abdulrahman Sabah Saud – the main convict in the 2015 bombing that struck a Shiite mosque in the capital during Friday prayers It was the bloodiest attack in Kuwait’s history Saud, a stateless Arab was convicted of driving the bomber to the mosque and bringing the explosives belt he used from near the Saudi border At his initial trial Saud pleaded guilty to most charges but in the appeals and supreme courts, he denied them all The other men executed on Thursday included a Kuwaiti, an Egyptian and a member of Kuwait’s stateless Bidoon minority, all of whom had been convicted of murder A Sri Lankan was put to death on drug charges The Public Prosecution said all five were executed by hanging The executions are the first since the oil-rich Gulf state put to death seven people in November last year ending a five-year moratorium Although Kuwait has executed dozens of people since it introduced the death penalty in the mid-1960s, the punishment is relatively rare Most of those condemned have been convicted of murder or drug trafficking

grants from sub-Saharan Africa are the latest to be taken to Tunisia’s borderlands with Libya or Algeria according to border guards migrants and NGO workers who reported previous cases

We don t know where we are living here We ve been suffering with no food and no water,” George said at the migrants’ makeshift camp among barbed wire 30 metres (33 yards) from a Libyan border post on the seashore at Ras Jedir He said he had been working as a barber for 18 months in the Tunisian coastal city of Sfax, where his wife and baby remained after he was forced out

“The Tunisian police they aim their weapons and say we are terrorists George said

The Libyans tell the migrants not to go further into their territory, leaving them “stuck in the middle ” George said as a heatwave grips the Mediterranean

Through the Red Crescent the Libyans have, however, brought them some food and water, which they share among themselves Another migrant Fatima 36 from Niger said Tunisian soldiers took everything from us including their mobile phones and left them there She also declined to give a last name Some held up torn pieces of cardboard with hand-written messages One asked the International Organization for Migration to help please

‘

CORPORATE CORNER SENATE PANEL PASSES TOSHAKHANA BILL PROPOSING PENALT Y FOR HIDING STATE GIFTS

‘O ne Life, O ne Liver ’: Protec t both with prevention & treatment

World Hepatitis Day is marked by the World Health Organization on July 28th as a public health issue of priority The theme this year is One Life, One Liver to highlight the importance of protecting both by prevention and treatment Pakistan has one of the highest rates of hepatitis B & C in the region, and unfortunately a large number of people suffering from chronic hepatitis remain unaware of their diagnosis If left untreated chronic hepatitis can progress to an irreversible stage of advanced liver disease and may lead to liver cancer, liver failure, or even death We cannot wait and must act now to fight both hepatitis and cancer to save lives PR

Mari Petroleum drills second horizontal well in Mari G as field

Building on the landmark success of the first-ever horizontal well last year, Mari Petroleum Company Limited (MPCL) has successfully drilled and tested a second horizontal well “Mari-123H” in the Habib Rahi Limestone (HRL) Reservoir at Mari Gas Field

The well was drilled to a total measured depth of 1 846 meters with a horizontal section of around 900 meters which is approximately 400 meters longer than the first well A longer horizontal section was achieved through utilization of the latest directional drilling and geo-steering technologies with real time data monitoring in subnormal pressure environment Better planning and execution resulted in 17% lower cost compared to the first horizontal well with an improved drilling efficiency After the acid stimulation, the well was tested at a rate of around 20 MMSCFD of gas with a flowing wellhead pressure of 318 psig The well has been put on production immediately after testing

The company is evaluating opportunities to drill additional horizontal wells to better manage the delivery pressure while sustaining the current production rates from HRL Reservoir PR

Pakistani oil companies collaborate with S audi Aramco for $10B greenfield refiner y projec t

iSLaMaBaD: In a historic collaboration, four leading Pakistani state-owned companies will join hands for Greenfield Refinery Project in Baluchistan The momentous Memorandum of Understanding (MoU) signing ceremony took place at OGDCL House Islamabad

The Pakistani state-owned entities Oil and Gas Development Company Limited (OGDCL), Pakistan State Oil (PSO), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL), will collaborate through a joint investment strategy The project will have significant foreign investment from world-class oil and gas giants through equity participation

The project envisions setting up an integrated refinery petrochemical complex with crude oil processing capacity of minimum 300,000 BPD along with petrochemical facility in Pakistan The integrated refinery petrochemical complex shall comprise of various components such as marine infrastructure petrochemical complex storages for crude oil and refines utilities pipeline connectivity etc PR

Professional Educ ation Foundation welcomes A sad Jamal to board of governors

K a r a c h i: Professional Education Foundation (PEF) a leading nonprofit organization dedicated to providing financial support for underprivileged students pursuing professional education, is thrilled to announce the appointment of Asad Jamal to its esteemed Board of Governors Mr Jamal, the Chairman of Good Planet Foundation and ePlanet Capital, brings with him a wealth of experience as a highly successful investor in the Silicon Valley and a renowned philanthropist PR

Environment & C limate

C hange Doc umentar y S eries:

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Voices from roof of world

K a r a c h i: The second season

ISLAMABAD S TA F F R E P O R T

TH E Senate Standing Committee on Cabinet Secretariat on Thursday unanimously passed a bill proposing heavy penalties on officials who fail to declare state gifts and refuse to deposit them in the Toshakhana (state gift repository)

The Toshakhana (Management and Regulation) Bill 2023 which was introduced by Minister for Parliamentary Affairs Murtaza Javed Abbasi in the Senate on Tuesday garnered widespread support from committee members during a session chaired by Senator Rana Maqbool Ahmad

The Toshakhana – a repository under the administrative control of the Cabinet Division which stores precious gifts given to rulers parliamentarians bureau-

crats and other officials by heads of other governments and foreign dignitaries –has been at the centre of attention in recent times due to high-profile cases involving the concealment of gifts by public office holders The issue has notably been brought to the forefront in recent months after accusations against Pakistan Tehreek-i-Insaf (PTI) Chairman Imran Khan of allegedly concealing such gifts during his tenure as prime minister The government bill comes as a response to address gaps and deficiencies in the current system aiming to establish clearer regulations governing the reporting and depositing of gifts received by government officials During the committee s deliberations, Senator Bahramand Khan Tangi, who had earlier formulated the ‘Toshakhana (Management and Regula-

tion) Bill 2022 as a private member was commended for his valuable contribu-

tions According to a press statement from the Senate Secretariat, Tangi’s inputs were incorporated into the ‘Statement of Objectives’ of the bill enhancing its overall content and effectiveness

Senator Taj Haider s amendment to the bill which focused on the utilisation of funds from the disposal of gifts, was also unanimously accepted by the committee Despite initial reservations expressed by the Secretary of the Ministry of Parliamentary Affairs the committee acknowledged the significance of the proposed amendment in strengthening the bill The session witnessed an engaging discussion on the definitions and scope of gifts, with Senator Zuberi expressing concerns about the government bill’s vagueness In response the committee chairman emphasised the need for a thorough review

C hinese authority approves 60 more GB orchards for C herr y expor t to C hina

BEIJING

S TA F F R E P O R T

The General Administration of Customs of China (GACC) has approved 60 more orchards from Gilgit-Baltistan for cherry export to China Commercial Counsellor at Pakistani Embassy Ghulam Qadir stated here on Thursday

According to China Economic Net (CEN), Ghulam Qadir said that approval of the Pakistani cherry orchards by Chinese customs holds significant potential for the agricultural sector in Gilgit Baltistan where cherry cultivation is a prominent industry

The endorsement by Chinese customs signifies that the cherries from Pakistan meet the required

standards and regulations for export to China

This not only opens up new avenues for trade but also showcases the quality and taste of Pakistani cherries to a wider international market”, he added Arman Shah CEO of Hashwan Group and Arman Shah Farm which is the largest farm approved by Chinese Customs told CEN that the collaboration between China and Pakistan in promoting agricultural exports, particularly cherries from Gilgit Baltistan highlights the mutual benefits derived from such partnerships It not only boosts economic growth but also strengthens bilateral ties

He further told that GB cherries have already been exported to other countries with the major market

being the Middle East adding that this year the price of export was between Rs 700-1000 per kg Gilgit Baltistan produces more than 4,000 tons of quality cherries in every season and my 7 5-arce farm produces around 1520 tons I also have cold storage facility which helps me export even after the season he mentioned

The approval of Pakistani cherry orchards by Chinese customs signifies a step towards enhanced trade relations and serves as a testament to the quality of produce originating from Gilgit Baltistan he mentioned

It is to be noted 15 cold storage and packing facilities are also approved by Chinese customs that can export cherries to China

S hia Muslims take out Muharram procession af ter 33-year ban lif ted in IIOJK

SRINAGAR: Thousands of Shia Muslims marched through Srinagar on Thursday for a major religious procession permitted in the Indian Illegally Occupied Jammu and Kashmir (IIOJK) for the first time since a ban was imposed decades ago The Islamic calendar is currently in the month of Muharram the holiest time for Shias across the world when large processions mark the martyrdom of the Prophet Muhammad s (PBUH) grandson Hussain (RA) in the seventh century But authorities in IIOJK had banned the traditional ceremony in 1990, the year after an armed revolt against Indian rule erupted in the disputed region

Since imposing direct rule on the territory four years ago, Indian Prime Minister Narendra Modi’s government has been eager to claim improved security in the territory after decades of unrest Top police officers and administrators walked alongside mourners who marched through the streets of Srinagar beating their chests and waving flags following several rounds of negotiations between officials and clerics to allow the march to proceed This is a dividend of peace the city s top administrator Mohammad Aijaz told reporters after the procession concluded without incident Some small Muharram processions have been permitted in the occupied territory since the 1990 ban but often ended violently, with mourners shouting slogans demanding independence and government forces dispersing crowds with tear gas and pellet-gun fire Shia Muslims are a minority in mostly Sunni Kashmir but authorities believe they account for at least 10 per cent of the region’s population of nearly 14 million This year ’s procession was by far the largest in a generation and the first time many of those who joined were allowed to participate Authorities allowed the procession on condition that mourners would not use anti-national slogans or propaganda or display any references to rebel groups and banned organisations Tens of thousands of civilians, soldiers and rebels have been killed in IIOJK since the outbreak of an insurgency against Indian rule in 1989 Insurgent groups demand independence or a merger with Pakistan and India has at least half a million troops permanently stationed around IIOJK to keep order A G E N C I E S

FBR launches IRIS 2.0, redefining user experience & efficienc y

Mr Asim Ahmad Chairman Federal Board of Revenue (FBR)/ Secretary Revenue Division launched IRIS 2 0, an upgraded version of the tax filing system developed by Pakistan Revenue Automation Limited (PRAL) at the FBR Headquarters, Islamabad on July 27, 2023 On this occasion Member IR Operations Member IT CEO PRAL and Chiefs / Secretaries of IR & IT wings were also present IRIS 2 0 marks a significant milestone in tax administration with improved user experience, enhanced efficiency, and cost saving for the FBR IRIS 1 0 and its successor IRIS 1 1, while pioneering, faced several challenges which impacted its performance and user satisfaction in addition to its costly hardware requirements during peak loads Addressing these concerns head-on, IRIS 2 0 has undergone a major transformation, with focus on robust backend enhancements and an intuitive frontend design ensuring a seamless experience for both users and the FBR This was made possible with the leadership and directions of Chairman FBR Member IR Operations and Member IT by transforming technologies updating PRAL culture and optimizing PRAL teams PR

Pakistani scientist receives Int ’l innovation award 2023

Dr Saqib Arif a Pakistani scientist working as a Principal Scientific Officer in the Pakistan Agricultural Research Council based in Karachi, was recognized as one of the top three winners and awarded €2,000 as a token of appreciation and acknowledgment His research focused on the potential of composite flour, which combines underused grains as a response to the worldwide rise in wheat prices and increasing sustainability concerns The results revealed that mixed flours have a superior nutrition profile, high fiber content, and bioactive compounds, making them a promising alternative to reduce dependence on wheat However, challenges remain regarding processability and sensory characteristics Wheat is a major staple food playing a significant role in meeting dietary requirements worldwide Approximately twothirds of the population relies on wheat, rice, and corn However, the increasing cost of wheat poses a significant challenge globally, affecting countries like Pakistan Despite being an agricultural nation Pakistan struggles to meet its domestic wheat demand and increasingly depends on imports PR

PC holds 210th board meeting under Chairmanship of Abid Bhayo

The Privatisation Commission (PC) convened its 210th Board meeting under the Chairmanship of Mr Abid Hussain Bhayo The meeting was attended by the Federal Secretary, board members, and senior officials of the Ministry/Commission It was last meeting with the current Board members as the government has recently reconstituted the PC Board The outgoing Board which was initially formed in year 2013, consisted of eight distinguished professionals with extensive experience in diverse areas During the meeting, the Chairman extended his heartfelt appreciation and recognition to outgoing PC Board members for their unrelenting efforts in making crucial decisions The Board s dedication over the past 10 years in achieving the objectives set forth in PC Ordinance was commendable The Chair emphasized that the contributions of the Board members, PC was instrumental in finalizing the privatisation of Habib Bank Limited (HBL), Allied Bank Limited (ABL) United Bank Limited (UBL) Pakistan Petroleum Limited (PPL) PR

before making any decisions The committee also explored the possibility of merging Senator Tangi s private member bill with the government bill, with priority given to the former To ensure clarity and coherence it was proposed that Senator Tangi and the Ministry of Parliamentary Affairs undertake a detailed clause-wise review of the bill together Recommendations from the ministry would be considered for incorporation into Senator Tangi’s sponsored bill, subject to further deliberation After hours of careful consideration and deliberation the committee ultimately passed The Toshakhana (Management and Regulation) Bill 2023 with a few amendments The bill, once enacted, will require the president, prime minister, chief ministers, governors, parliamentarians, bureaucrats officers of the armed forces members of the judiciary

Flood-affected people of Khairpur Nathan Shah provided houses

K a r a c h i: A ceremony was held in Khairpur Nathan Shah Tehsil of the flood-affected Dadu district on behalf of the Sindh government The purpose of the ceremony was to provide houses to the flood victims and grant them ownership rights Various dignitaries attended the event including MNA and District President of the People s Party Rafiq Jamali; MNA Irfan Zafar Leghari; MPA Abdul Aziz Junejo, and MPA Fayaz Butt During the ceremony, 500 flood victims received house ownership rights certificates Speaking at the event, PPP MNA Rafiq Jamali emphasized the party's commitment to providing roofs to flood victims He recalled the promise made by PPP Chairman Bilawal Bhutto Zardari who assured the people that houses would be built for them Rafiq Jamali proudly stated that Bilawal Bhutto Zardari fulfilled his promise to the people of Sindh PR

SIEHS deploys ambulances for Muharram processions

K a r a c h i: Sindh Integrated Emergency & Health Services (SIEHS) has announced to deploy 310 Ambulances on 9 and 10 of Muharram-ul-Haram across Sindh SIEHS has chalked out a comprehensive ambulance availability plan for Azadars after coordination with political leadership civil administration LEAs and relevant stakeholders especially the organizations of processions The SIEHS announced that no area will remain without availability of an ambulance (equipped with state of the art gadgets) staffed with highly trained and experiences team members The organization has already established alternate communication network options in case of closure of certain cellular network services as the organizations landline-based Command & Control Centers in Karachi, Hyderabad and Sukkur will remain functional 24/7 In addition to the special arrangements from 7th to 10th Muharram, the regular operations of the ambulance services will continue to run smoothly PR

Soyem and prayer of Haji Murad Ali, father of PPP MPA Abdullah Murad today

K a r a c h i: Fatiha Soyem and prayer of Haji Murad Ali the father of Pakistan People s Party s Shaheed member of Sindh Assembly Abdullah Murad and grandfather of Deputy Mayor Karachi Salman Abdullah Murad, will be held today, Friday, July 28 at 11 a m at Shayan Farm House near Pakistan Hotel Memon goth Road, Malir The condolence will continue till evening On Thursday Provincial Minister Saeed Ghani officials of various parties political leaders senior government officials and a large number of dignitaries of the city reached Shayan Farm House and expressed their condolences to the deputy mayor Karachi, Salman Abdullah Murad, on the death of his grandfather PR

Daraz to empower South Asian users’ shopping experience with Microsoft Azure Open AI Ser vice

K a r a c h i: Daraz, South Asia’s leading ecommerce platform in Pakistan, Bangladesh, Sri Lanka Nepal and Myanmar announced the latest integration of Microsoft Azure OpenAI Service in Daraz to launch AskDaraz an AI ChatBot to simplify the shopping experience for South Asian users Powered by OpenAI s ChatGPT, AskDaraz will enable users to naturally discuss with the AI chatbot and get offered personalized recommendations, streamlining the entire shopping process PR

Nazr Imam Hussain was organized by Afaq Ahmed, Chairman of Muhajir Qaumi Movement Pakistan at his residence On

occasion, host Afaq Ahmed along with senior journalists Mukhtar Aqil Saeed Khawar Jabbar Khattak Sabir Ali Jamshed Bukhari, Muhammad Javed Qureshi, Muddasir Alam, Abul Hassan, were present PR

TARIFFS FOR THAR COAL BLOCK I & II APPROVED

“This

ment The annual foreign exchange savings generated by these projects surpass an astounding one billion dollars per year, declares independent economic analyst Arslaan Arif Soomro “By expanding the scope of the mines and integrating them with the railway infrastructure Pakistan can produce electricity at a significantly reduced cost, while concurrently addressing its balance of payment challenges,” Soomro elaborates So how exactly will these savings work out? Furthermore what even is a levelised tariff? What is a levelised tariff

A levelised tariff is a methodology employed to recuperate the entire cost of a project over its lifespan It is a fixed rate proffered by the bidder for a specified number of years typically ranging from 25-30 commencing from the date the project is commissioned In this particular instance the levelised tariff would represent the average price of Thar Coal emanating from Blocks I and II However, it is imperative to note that lev-

Fiscal year 2023 ends with 12 consecutive months of contractions in automotive

credit

The State Bank of Pakistan (SBP) recently unveiled its credit data for June 2023 heralding the conclusion of a precarious fiscal year for automotive lending

Outstanding credit now stands at Rs 2 94 kharab the lowest it has plummeted since April 2021 Moreover, the SBP s data divulges that FY 2023 witnessed twelve consecutive months of contractions in outstanding credit the most successive periods since the tumultuous 2007/8 financial crisis Net automotive credit contracted by an astounding Rs 74 117 arab The auto industry is facing a long road to recovery states Yousuf Farooq Director of Research at Chase Securities It s going to take years for auto sales, and particularly credit to the auto sector, to bounce back ” Farooq adds that “interest rates should start gradually coming down from 3QFY24 but it all depends on the external account situation The SBP could also loosen the administrative controls that it has adopted in recent years

So what is going on within the industry?

Why has automotive lending collapsed?

First things first Why are we seeing the worst net credit flows since the economic crisis of 2007/8

“In fact ” explains Iftikhar ul Haq Group Head of Consumer Finance at Meezan Bank “the current crisis is much more severe as multiple factors have converged simultaneously In contrast in 2007/8 the crisis was primarily driven by the elevated Karachi Interbank Offered Rate (KIBOR)

Haq continues, There are currently a multitude of factors at play Firstly, we have the tightening of consumer finance regulations in conjunction with alltime high KIBOR levels Additionally there has been an unprecedented surge in car prices due to the Rupee s depreciation against the US dollar This has been further exacerbated by the disruption of the car manufacturing supply chain resulting from import restrictions arising from inaccessibility to letters of credit ”

“Inflationary pressures have also eroded disposable incomes ” Haq adds “while overall political and economic instability and uncertainty have caused customers to defer their buying decisions

When asked about the aforementioned regulations that have been tightened, Haq explains, There is now an upper cap of Rs 30 lakh on industry-wide auto finance exposure vis-à-vis a 100% increase in car prices in less than two years Furthermore the lowering of financing tenure and DBR (debt burden ratio) requirements has resulted in the nonaffordability of monthly repayments There are also restrictions on imported (used) car financing

So, why did the SBP do all of this? Why did it decide to destroy the automotive lending market? “This has largely happened due to the external account situation ” states Farooq “To control the situation it seems that the SBP has implemented a policy to reduce car sales and car financing in order to take some pressure off imports

Administrative measures are generally not an optimal way to control the current account situation,” explains Farooq He elaborates that “with a high marginal propensity to consume in Pakistan consumers will spend elsewhere when not allowed to buy a particular product and the current account situation would not improve However Farooq continues rate hikes and a free-floating currency were the right measures to get the external account situation under control

elised tariffs do not reflect the current rates at which the coal is accessible The ready access rate for coal from Block I is approximately $37, while for Block II it stands at roughly $45,” elucidates Fahad Rauf Head of Research at Ismail Iqbal Securities “The levelised tariffs demonstrate how the price of coal will be relatively high in the initial years due to various ancillary costs such as debt repayments, but will subsequently diminish over the course of its life cycle,” Rauf expounds So, what are the savings that have been touted?

Stemming forex outflows

The paramount advantage is the conservation of foreign exchange, elucidates Rauf Let s hypothesise, for instance, that if I utilise an indigenous resource and it incurs a cost of Rs 10 assuming that I am providing electricity to the consumer at Rs 10 That is still more advantageous than me importing the more affordable variant of that resource for say Rs 8 because I would need to pay for that in foreign ex-

change Rauf expounds The Rs 8 resource would undoubtedly benefit customers, but the indigenous resource, on the other hand, conserves foreign exchange The saving is tantamount because the dearth of foreign exchange is what has been Pakistan s primary economic failing recently Rauf continues

annually (having tripled since 2015) half of which is consumed

the power sector according to the International Growth Centre Subsequently, it is safe to say that there is a large room for stemming forex outflows

The Executive Committee of the National Economic Council (ECNEC) has approved Investment Project Financing (IPF) component of Pakistan Raises Revenue Project at a cost of Rs 21 518 billion ($80 million World Bank loan) to enhance tax to GDP ratio

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of ECNEC on Thursday The Planning Commission submitted a project to the Federal Board of Revenue

titled IPF Component of Pakistan Raises Revenue Project at a cost of Rs 21 518 billion ($80 million World Bank loan) to enhance tax to GDP ratio

Under the project, FBR will establish 30 mobile facilitation centers in the 1st phase and the second phase would be started after the successful execution of the 1st phase and after the approval of the planning commission The IPF component aims to eliminate the country s fiscal constraints by reducing tax expenditure, increasing tax receipts by broadening the tax base and to modernize and make FBR well equipped with advanced ICT based operations

The scope of the project includes replacement of end of life hardware active private cloud licensing and legacy data warehouse Business Intelligence tools with other software solutions; full connectivity for FBR field formation including LAN VoIP and control rooms, tax compliance initiatives, establishment of mobile tax facilitation stations , contractless scanning equipment for automated entry exit system and allied works; customs central risk management framework and technical assistance for business process improvement and automation

In line with the government s digital Pakistan policy FBR intends to improve its outreach service through citizen centric digital initiatives The main emphasis of the Pakistan Raises Revenue project is on sustainable increase in revenues and broadening of tax base and implementation of a developed strategy plan The ECNEC in its meeting also considered and approved a revised project by the Ministry of Communication titled Dualization of Rawalpindi –Kahuta road ( 28 4 kms) including 4-lane bridge over Sihala Railway pass, Sinhala bypass and Kahuta bypass ” The revised project had a rationalized cost

of Rs 23 545 021 billion on a financing share of 50:50 basis between the Federal and Provincial Govt

The project will be executed by NHA

The ECNEC also considered a revised project of the Ministry of Defence Production titled “Infrastructure Up-gradation of Karachi Shipyard and Engineering Works (KSEW) The project envisages renewed underwater repair capability and concrete rehabilitation/up-gradation works for restoration of existing two dry Docks for ships/ submarines The ECNEC approved the project at a revised updated cost of Rs 10 689 807 billion including FEC of Rs 4 934 564 billion Furthermore the ECNEC considered and approved a project titled Construction of Abdul Khel – Dhakhi- Kallurkot (45 kms) road at a cost of Rs 14 257 billion without FEC The project will be executed by NHA in Dera Ismail Khan district of KPK at 50:50 cost sharing between the Federal Govt and KPK Govt

The ECNEC considered a revised project of the Ministry of Water Resources titled Garuk Storage Dam district Kharan to be executed by Irrigation Department, Balochistan Government in Kharan district The project aims at mitigating and storing flood waters of Garuk River and providing water for irrigation The ECNEC approved the revised project at a cost of Rs 27 753 billion without FEC

Amongst other considerations m the ECNEC also considered and approved another project of the Ministry of Water Resources titled Remodeling of Pat Feeder Canal System in Balochistan, district Naseerabad at a cost of Rs 61 793 billion without FEC The project will be financed through the Federal and Provincial Government on an 80:20 cost sharing basis The ECNEC considered and approved a project of Pakistan Atomic Energy Commission (PAEC) titled Chashma Nuclear Power Project Unit-5 (C5) at a rationalized cost of Rs 104 7 billion with FEC of Rs 187 098 billion and Chinese credit of Rs 820 742 billion The project will install a nuclear power plant of 1200 MW capacity in Mianwali

The ECNEC also considered and approved in principle a project of the Sindh Government on Construction/Reconstruction of Existing Schools in Sindh affected by Rain/Flood 2022 The project was estimated at a cost of Rs 12 3 billion, with 50:50 cost sharing basis between Federal and Provincial Governments

‘C a s h - s t r a p p e d ’ g o v t i n c r e a s e s

Customs cracks down on smuggling of steel and t yres from Iran and Afghanistan

In response to an urgent appeal by Pakistan

Association of Large Steel Producers (PALSP), Prime Minister Shahbaz Sharif has directed the Federal Board of Revenue (FBR) to take immediate action against the rampant smuggling of steel from Iran and Afghanistan The Customs authorities have also been instructed to curb the illegal trade of Radial Tyres to safeguard the domestic industry

The Customs Intelligence and Investigation Wing has issued a letter to its major offices across the country, urging them to intensify efforts in combating the smuggling of steel from neighboring countries The unlawful import of steel billets and rebars has been identified as a serious threat to the survival of the local steel industry in Pakistan PALSP highlighted in their letter to the Prime Minister that the smuggling of steel from Iran and Afghanistan has been persisting unchecked, leading to adverse consequences for the domestic steel sector Pakistan’s steel industry which emerged as the sixthlargest exporting sector (ferrous & non-ferrous combined) with exports of one billion USD is facing a significant decline in its exporting ability due to the menace of smuggling The influx of (non-tax paid) Iranian Billets has been observed in major cities such as Quetta, Karachi, and Lahore, with large parts of Balochistan being flooded with smuggled steel billets and rebars This illicit activity has resulted in the closure of local steel industries in affected areas leading to a loss of numerous jobs and a substantial decline in government revenue

In a bid to counter the alarming situation, the Customs offices in Karachi, Hyderabad, Quetta, Gwadar, Multan, Lahore, Rawalpindi, and Peshawar have been directed to remain vigilant and take immediate action against steel smuggling Additionally there have been reports of Radial Tyres of buses and trucks being smuggled prompting the Customs authorities to extend their efforts to thwart this unlawful trade

The large steel producers’ association has urgently appealed to the government to address the escalating issue by implementing strict measures against smuggling activities The situation demands immediate action to protect the domestic steel industry from further deterioration

The government has assured the steel industry stakeholders of their commitment to curbing smuggling and safeguarding the interests of local businesses

Authorities are now working on devising effective strategies to prevent the illicit cross-border trade of steel and tyres The industry leaders believe that the Prime Minister s directive to the FBR and Customs marks a significant step towards protecting Pakistan s domestic industry and ensuring its sustainable growth

g IMF DEAL AND FOREIGN INVESTMENTS DRIVE PAKISTAN STOCK EXCHANGE TO 13 6% GAIN E X P L A I N E R C O N T I N U E D O N PA G E 03

‘d r i ve r a l l o w a n c e ’ t o a l l g r a d e 2 2 r e t i r e d c i v i l , m i l i t a r y o f f i c e r s ISLAMABAD

As the government takes concrete measures to clamp down on smuggling, industry leaders are hopeful that the menace will be effectively tackled providing a much-needed boost to the nation’s economy

Pak istan condemns Indian defence minister ’s threat to cross LoC

a k i s t a n o n T h u r s d a y c o n d e m n e d t h e p r o v o c a t i v e r e m a r k s b y I n d i a s d e f e n c e m i n i s t e r, m a d e i n D r a s s , L a d a k h a r e a , b o a s t i n g r e a d i n e s s t o c r o s s t h e L i n e o f Control in Kashmir In a statement issued in Islamabad the Ministry of Foreign Affairs said: We counsel India to exercise utmost caution as its belligerent rhetoric is a threat to the regional peace and stability, and contributes to destabilizing the strategic environment in South Asia

The statement further said This is not the first time that India s political leaders and senior military officers have made highly irresponsible remarks about Azad Jammu and Kashmir and Gilgit-Baltistan This kind of jingoistic statements must stop The Indian leadership is reminded that Pakistan is fully capable of defending itself against any aggression The Foreign Ministry said The practice of dragging Pakistan into India’s populist public discourse with a view to stoking hyper-nationalism and reaping electoral gains needs to end

Everything from history to law and from morality to the situation on the ground belies India’s claims about Jammu and Kashmir, which is an internationally-recognized disputed territory The relevant UN Security Council resolutions stipulate that the final disposition of the territory will be made in accordance with the will of the people expressed through the democratic method of a free and impartial plebiscite conducted under the auspices of the United Nations India would be well-advised to faithfully implement these resolutions rather than entertaining any notions of grandeur the statement concluded