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PAKISTAN DECIDES TO RECALL AMBASSADOR FROM IRAN FOLLOWING ‘UNPROVOKED VIOLATION’ OF AIRSPACE thursday, 18 January, 2024 i 6 Rajab, 1445
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FO spokesperson states Pakistan reserves right to respond to this illegal act ISLAMABAD
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China calls on both sides to exercise restraint, avoid actions that lead to an escalation of tension
‘Pakistan reserves right to respond’, FM warns Iranian counterpart
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AKISTAN on Wednesday decided to recall its ambassador from Iran and suspend all high-level visits ongoing or planned between the two countries following the “unprovoked violation of its airspace” by Tehran with the latter claiming it targeted an “Iranian terrorist group” and “none of the nationals of the friendly and brotherly country.” The development comes after the FO, in a statement released late on Tuesday night, denounced the strikes in Pakistani territory that resulted in the “deaths of two innocent children while injuring of three girls”. It termed the incident a “violation of Pakistan’s sovereignty”. While the FO did not mention the location of the incident, Iranian state media said the attack took place in the border town of Panjgur in Balochistan. Iran’s state-run Nour News agency said the attack destroyed the Pakistan headquarters of the Jaish al-Adl. Iran’s semi-official Tasnim news agency said the “focal point of this operation was the region known as Kouh-Sabz (green mountain)” in Balochistan. “Two key strongholds of the Jaysh al-Dhulm (Jaish al-Adl) terrorist group in Pakistan” were “specifically targeted and successfully demolished by a combination of missile and drone attacks”, the Tasnim news agency said.
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China urges Iran, Pakistan to ‘exercise restraint’ following air strike BEIJING
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China on Wednesday urged Pakistan and Iran to show “restraint”, after Islamabad denounced what it described as the “unprovoked violation of its airspace by Iran”. According to a statement released by the Foreign Office (FO) after midnight, strikes in Pakistani territory resulted in “deaths of two innocent children while in-
juring three girls”. Speaking at a regular briefing on Wednesday, China Foreign Ministry Spokesperson Mao Ning said: “We call on both sides to exercise restraint, avoid actions that would lead to an escalation of tension and work together to maintain peace and stability.” “We consider both Iran and Pakistan as close neighbours and major Islamic countries,” she added.
Caretaker Foreign Minister Jalil Abbas Jilani on Wednesday told his Iranian counterpart Hossein Amir Abdollahian that Pakistan reserved the right to respond to Iran’s “provocative act” of attacking inside its territory. Jilani, who is currently leading the Pakistan delegation to the ministerial meeting of the Non-Aligned Movement (NAM) in Kampala, Uganda, made these remarks as he received a telephone call from the Iranian foreign minister, according to a statement issued by the Foreign Office (FO). The foreign minister firmly underscored that the attack conducted by Iran inside Pakistani territory, on January 16, 2024, was not only a serious breach of Pakistan’s sovereignty but was also an egregious violation of international law and the spirit of bilateral relations between Pakistan and Iran. Expressing Pakistan’s unreserved condemnation of the attack, the foreign minister said that the incident has caused serious damage to bilateral ties between
Suzuki’s stock market drama takes a new twist CONTINUED ON PAGE 03
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With introduction of a new minority shareholder, things are heating up over at Suzuki PROFIT
By ZaiN Naeem
The rollercoaster ride that has seen the price of Suzuki Pakistan’s stock soar in the past few weeks has taken a new turn. Almost immediately after the PSX announced a minimum share price of Rs 609, a surprise minority shareholder has made an entry with a recently acquired 10% stake in the company. Pak Suzuki, which is a publicly listed company, is in the process of delisting itself from the stock exchange. While the company is an independent entity, the majority of its shares are held by Suzuki Japan which owns roughly 60 million of the 82 million outstanding shares. This leaves a total of 22 million shares that are held by other investors. In order to delist, Suzuki Japan has to acquire over 90% of the shares in the company. The process behind this is simple enough. Pakistan Stock Exchange has given a price of Rs 609 per share to Suzuki — known as Pak Suzuki in Pakistan — to carry out their voluntary delisting from the stock exchange. The price quoted by the Pakistan Stock Exchange (PSX) is 50% compared to the price that the company quoted themselves. The question now is, will the shareholders sell at this price? This publication has covered this matter extensively in terms of the valuation of the company. The crux of the matter is that the company is looking to buy back all the shares in the market. Suzuki
Japan —Suzuki Motors Corporation that is the parent company of Pak Suzuki — owns Once the company has decided on the price, the next step is for the PSX to carry out its own due diligence and fix a price according to Regulation 5.14.2. This price has now been announced as Rs. 609 per share. Suzuki now has 10 days to accept this price or reject it. If the price is rejected, the buy back will be considered null and void. SO WHAT ABOUT THE SHAREHOLDERS IN ALL OF THIS? Currently, 22 million shares are held privately by individuals and institutions outside the company itself. At the price given by PSX, the value of the buyback will be around Rs 13.5 billion while at their own price, the cost would have been Rs 9 billion. This is the value that will be generated and distributed to the shareholders. Ever since the buyback was announced, the market has shown a positive response. The share price was languishing at Rs. 150 in October and has touched a high of Rs. 898 in January of 2024. This shows that the shareholders are expecting a higher price for their shares compared to the one announced by the company and the exchange. Once the market became cognizant of the price that would be given by the PSX, the share price actually decreased to Rs. 716 on 16th of January. Even if the cost is higher, there are murmurs that the price will be agreed upon as the company strongly feels that delisting is the best course of action going forward. Analysts stated that due to the market share and the footprint of the com-
Media in Pakistan ‘freer’ than in the West: PM Kakar g
pany, the premium of 50% is still attractive. In case that there is a disagreement over the price, the company has the opportunity to buy a minimum amount or the price, the company has a chance to appeal this decision but the decision taken by the PSX is considered final and bidding. The PSX has set a quantum or threshold that needs to be crossed. Clause 5.14.5 states that if a sponsor initially had a shareholding of less than 90%, they need to at least increase their holding to 90% to qualify for the delisting. In cases where their shareholdings are above 90%, they do not need to carry out any mandatory additional purchase to qualify for the delisting. This would mean that even if the company looks to meet the minimum threshold, they will still need to buy an additional 13.8 million shares which could cost them Rs 8.4 billion to cross the mark of 90% shareholding. WHY DELIST? The company has experienced losses in three out of the last four years and has not distributed any dividends. Additionally, the share price is currently at an all-time low, and shareholders face challenges exiting the market due to low volumes. As per the company’s version, it intends to repurchase all its shares and maintain a longterm commitment to the Pakistani market. While the company may view this as a plausible decision, some investors might perceive it as disregarding their preferences and imposing a choice upon them. However, there can be three possible reasons behind this buyback strategy. Firstly, the company may believe it is preferable to exit the country due to limitations on repatriating earnings imposed by the State Bank of Pakistan.
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After Meezan Bank, Faysal Bank receives a certificate of incorporation from the SECP for its exchange subsidiary PROFIT
maRiam UmaR faRooq
The country’s commercial banks are continuing to create their own exchange companies months after a massive crackdown on Pakistan’s currency market. The latest in the list is Faysal Bank, which has inched closer towards launching its own exchange company. On January 17, 2024, Faysal Bank notified the Pakistan Stock Exchange (PSX) that it had received a ‘Certificate of Incorporation’ for its exchange company subsidiary. This was the culmination of a process that began on September 28, 2023, when the bank announced its intention to set up a fully-owned exchange company with an initial capital of Rs 1 billion. The bank’s board of directors had given their approval for the project on September 27, 2023, subject to the clearance and approval of the State Bank
of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP), as per the bank’s filing on the PSX. The bank crossed the first milestone when it obtained a no-objection certificate (NOC) from the SBP on November 1, 2023, for establishing an exchange company named ‘Faysal Islami Currency Exchange Company (Private) Limited’. Previously, Meezan Bank received a certificate of incorporation from SECP for its exchange subsidiary, Meezan Exchange Company (Pvt.) Limited on November 14, 2023. Meezan Bank informed via PSX notification that it would submit an application to SBP for the issuance of a license to commence operations, as per the SBP Exchange Companies Manual. WHY ARE BANKS SETTING UP EXCHANGE COMPANIES? In early September, the SBP made a decisive move, signalling that it had had
enough. It unfurled a sweeping set of reforms targeting exchange companies. Under the new reforms, banks were asked to set up exchange companies. “Leading banks actively engaged in foreign exchange business will establish wholly owned Exchange Companies to cater to the legitimate foreign exchange needs of the general public,” read the press release. A source disclosed to Profit that the SBP with the full force of the state had been involved in a crackdown on exchange companies. As such the top 10 banks were asked to open exchange companies. While the National Bank of Pakistan and Habib Bank already had exchange companies, Meezan Bank, Allied Bank, Habib Metropolitan Bank, Bank Alfalah, Faysal Bank, Askari Bank and Bank Al Habib were also ordered to set them up. The orders “came from the very top”, the source said. Read: Big banks are all set to run the
Pakistan and Iran. “Pakistan reserved the right to respond to this provocative act,” the statement quoted Jilani as saying. Stressing that terrorism was a common threat to the region and required concerted and coordinated efforts to combat the menace, the foreign minister underlined that unilateral actions could seriously undermine regional peace and stability. No country in the region should tread this perilous path, he added. The strikes, which Tehran described as bases for the militant group Jaish al-Adl, in the Panjgur district of Balochistan killed two “innocent children” and wounded three girls. ‘TARGETED IRANIAN TERRORIST GROUP IN PAKISTAN’ Earlier in the day, Tehran’s top diplomat said that his country’s armed forces targeted an “Iranian terrorist group” in Pakistan the day before. “None of the nationals of the friendly and brotherly country of Pakistan were targeted by Iranian missiles and drones,” FM Hossein Amir Abdollahian said on the sidelines of the World Economic Forum in Davos, Switzerland.
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Says critics should first let polls take place after which conduct could be questioned DAVOS/ISLAMABAD News Desk
Caretaker Prime Minister Anwaarul Haq Kakar on Wednesday said that the media in Pakistan was “freer” than in the West, saying that the latter was under “stricter regulations”. The premier made the remarks in an interview with CNBC on the sidelines of the World Economic Forum. During the interview, Kakar talked about the economic outlook for the country, the upcoming election, and charges against ex-premier Imran Khan. Asked about concerns regarding the upcoming elections being “rigged”, the premier said critics should first let the polls take place after which the conduct could be questioned. “First they said, we are not going to have elections. Now, when we are having an election, they are saying, ‘Oh, it is one of the most rigged elections in history’,” he said. The prime minister said that there would be international observers as well as foreign and domestic media reporting on the polls. “Let them then report and decide, whether it was rigged or not that rigged,” he said. Asked whether the media was free and fair in Pakistan, the premier said, “I think so even freer than the Western media. If you do the comparison, the Western media is probably under more stricter regulations than the media in Pakistan.”
open market. What does it solve? United Bank wasted no time in announcing its venture into the exchange company arena on September 12, six days after the reforms were rolled out. UBL’s move triggered a domino effect, with a lineup of other banks swiftly joining the fray. Meezan Bank joined the list three days later. In the following weeks, more banks followed suit which included MCB Bank, Bank A lHabib, Allied Bank, and Faysal Bank. REFORMS IN THE EXCHANGE COMPANIES SECTOR The primary objective of these reforms was tightening control over the open market and fortifying governance, internal controls, and compliance standards within the sector. The reforms came a little over a year after the SBP suspended the operations of several branches and franchises of exchange companies over regulatory violations. The central bank had launched a crackdown against exchange companies on apprehensions that they were not selling foreign currency to customers despite availability, leading to exchange rate volatility and a wide difference in rates offered in the interbank market and
those quoted by the companies and commercial banks. Previously, exchange companies in category A had a higher minimum capital requirement — Rs 20 crore — while those in category B had a lower minimum capital requirement of Rs 2.5 crore. The latter could only act as money changers. Under the reforms, all exchange companies in categories A and B along with franchises of exchange companies were to be consolidated and transformed into a single category with a well-defined mandate. The minimum capital requirement for exchange companies for category A was bumped up from Rs 20 crore to Rs 50 crore, free of losses. Category B exchange companies were given three options: merge with an existing exchange company, upgrade to full exchange company status, or consolidate with other category B exchange companies to form a unified entity. They had to approach the SBP within one month for a NOC for one of these choices. After receiving the NOC, they had three months to meet regulatory and legal requirements for formal licensing, failing which, their licences would be cancelled. Similarly, franchises of exchange companies were given two options: either merge with the franchiser exchange company or sell the franchise to it. They had one month to seek the approval of the central bank for the merger or sale. The failure to do so would result in cancellation of licenses.
02 NEWS
SC’S DECISION ON PTI ELECTORAL SYMBOL ABSOLUTELY `CONSTITUTIONAL’: PPP’S ASMA ALAMGIR
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ENTRAL Secretary Information of Pakistan People’s Party (PPP), Asma Alamgir has termed the Supreme Court verdict in election symbol case of Pakistan Tehreeke-Insaf (PTI) as absolutely `constitutional’. “Those who are involved in the May 9 vandalism deserve severe punishment including a complete ban from participation in the electoral process,” she said while addressing a press conference at her residence here Wednesday. Asma Alamgir said in our country, the
Pakistan records current account surplus of $397m in December 2023: SBP PROFIT
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The State Bank of Pakistan has reported an improvement in its current account balance from July to December of the current fiscal year on Wednesday. According to the details, the latest figures revealed an improvement in the current account deficit with a loss recorded at $83.1 million during the period of July-Dec FY24, meanwhile $3.62 billion of loss was recorded in the current account balance during the period of July-Dec FY23. This positive trend is a testament to the efforts and strategies implemented by the bank to stabilize its financial standing. The current account balance for December 2023 reflected a surplus of $39.7 million compared to the figures recorded a loss of $36.5 million in December 2022. November 2023 saw a temporary setback, with a current account deficit of $1.5 million. However, the overall trend indicates a positive trajectory in the State Bank’s financial performance.
APHC leaders condemn India for using brutal tactics to muzzle Kashmiris’ voice for freedom SRINAGAR
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The All Parties Hurriyat Conference leaders have deplored that India is using every brutal tactic to muzzle the voice of the people of Indian illegally occupied Jammu and Kashmir for freedom. According to Kashmir Media Service, the APHC leaders including Ghulam Muhammad Khan Sopori, Syed Bashir Andrabi, Khawaja Firdous, Muhammad Shafi Lone, Farida Bahenji, Yasmeen Raja, Fayyaz Hussain Jafari, Syed Sibte Shabbir Qummi, Abdul Samad Inqilabi, Muhammad Aaqib, Israr Ahmed and Aamir Mughal in their statements issued in Srinagar said every Kashmiri feels suffocated in an atmosphere of fear and terror in occupied Kashmir. They said the Narendra Modi-led Indian government is using draconian laws, policies and unlawful practices to suppress all dissenting voices in the occupied territory. They pointed out that there has been an increased restriction of space for dissent since revocation of IIOJK’s special status in August 2019. They lamented that the world’s so-called largest democracy is denying basic rights to the Kashmiri people. The APHC leaders said that Modi must remember that popular movements cannot be defeated by suppression and oppression. They said the Kashmiri people have every right to speak their conscience and they are demanding their right to self-determination guaranteed by the United Nations through its several resolutions. The leaders said Modi cannot stop the Kashmiris’ march for freedom by gagging their voices of dissent. They urged the international community to put pressure on India to let the Kashmiris decide their political future by themselves.
Thursday, 18 January, 2024 | ISLAMABAD
law is supreme, and upholding the constitution is the responsibility of the institutions, especially courts. She said that in electoral politics, even those candidates were barred from participation who had not submitted their utility bills. Whereas in the case of PTI whose almost all party leaders are allegedly responsible in the vandalism of May 9, are still allowed to take part in elections in independent positions, she said. The whole PTI leadership, she said deserves disqualification from participation from elections because of damaging national assets, but the court just deprived it from its election symbol that’s too because of not holding party elections in accordance
with Election Commission regulation. The PPP leader also informed that the Party Chairman Bilal Bhutto will address a mammoth party rally in Peshawar on January 27. The venue and timing for the rally will be decided after holding of meetings with district administration and security officials. The PPP procession will serve as defining movement for upcoming general elections in the country slated for February 8, next, Asma said and claimed the Party will exhibit it prowess in Peshawar rally due to participation of a very large crowd of jiyalas. Flanked by other PPP leaders including Zahir Ali Shah, Ziaullah Afridi, Zulfiqar Afghani, Zarak Khan and others, Asma
Alamgir said Khyber Pakhtunkhwa has suffered a lot due to ten years rule of PTI. These ten years, she continued, will be remembered in history as `dark years’ because of the financial woes of the province and its people. Speaking on the occasion, Zahir Ali Shah dispelled the news spread on social media that he was quitting from contests at NA 32 and PK 83 because of seat adjustment with Awami National Party. No decision has been taken in this regard and this news is just a rumor viral on social media, confusing people and voters, Shah went on to say. He said time for withdrawal of nomination papers has been passed and now no candidate can withdraw his candidature.
President Alvi directs IESCO to refund Rs139,000 to complainant ISLAMABAD
Staff RepoRt
President Dr Arif Alvi on Wednesday directed the Islamabad Electric Supply Company (IESCO) to refund Rs 139,860 to a complainant who had been wrongly issued an additional demand notice for the installation of an electricity connection along with a transformer due to cost escalation. These directions were issued by President while deciding upon a representation filed by IESCO assailing the order of the Wafaqi Mohtasib directing IESCO to refund the amount to complainant Haji Akhtar Raheem and adopt proper procedure/rules/regulation, which were violated by IESCO, resulting in maladministration. By not installing the connection within 30 days, the IESCO had violated its own procedure and later sent an ad-
ditional demand notice to the complainant, who had already paid the original requisite amount, on account of the escalation of the cost of the material. The complainant had applied with IESCO for an electricity connection along with a 25 KVA transformer. Subsequently, a demand notice of Rs 305, 656, including the cost of allied material was issued to him. He deposited the amount, however, IESCO instead of installing his connection timely, issued an additional demand notice of Rs 139,860 on account of the escalation of the cost of the material. The complainant approached IESCO for withdrawal of the demand notice but to no avail. Feeling aggrieved, he approached the Wafaqi Mohtasib for the redressal of his grievance, who passed the order in his favour. IESCO, then, filed a representation against the
order of the Mohtasib with the President. Dr Arif Alvi after personally hearing the case and going through the record of the case, directed IESCO to refund the amount to the complainant. He referred to IESCO’s Consumer Service Manual which provided that once the demand notice had been issued by IESCO and paid by the applicant in full, no further charges/demand notice could be raised on account of the escalation of the cost of the material. The president further noted that as per the manual, IESCO was bound to install the connection within 30 days but it delayed the installation by seven months. Dr Alvi concluded that Wafaqi Mohtasib’s decision was based on sound reasoning and was sustainable in the eyes of the law. He, therefore, rejected IESCO’s representation and upheld the Mohtasib’s decision.
Chinese economy withstands international risks in 2023; says Chinese CG Yang Yundong KARACHI
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The Consul General of the People’s Republic of China (PRC) in Karachi Mr Yang Yundong Wednesday said that over the past year, China’s economy had successfully withstood international risks and the downward pressure resulting from a combination of multiple domestic factors and it has continued to rebound and show positive trends, with the solid promotion of high-quality development, he added. Addressing an august gathering of senior journalists and editors here, Mr Yang Yundong said China had achieved high-quality development targets in the year 2023 with an estimated Gross Domestic Product of 5.2 percent. “Expediting the pace of work in game changer China-Pakistan Economic Corridor project, major achievements were also made and several high-profile projects were in the completion stage that would benefit the people of Pakistan,” he said while addressing the ceremony for awarding certification of recognizing the contribution made by media friends in Pakistan here at Karachi Consulate. According to customs statistics, in 2023, the total value of China’s goods trade imports and exports reached 41.76 trillion yuan, representing a year-onyear growth of 0.2%. The combined exports of the “new three” products—electric passenger vehicles, lithium batteries, and solar cells— reached 1.06 trillion yuan, reflecting year-on-year growth of 29.9%, Chinese CG said, adding that this indicates a sustained optimization and upgrade of China’s export product structure, reflecting a new trend in high-quality development of the Chinese economy. Elaborating the achievements of the People’s Republic of China, the Consul General said the foreign capital and foreign enterprises continue to show confidence in China’s innovation resources
and business environment, as evidenced by their increasing investments in the country. In the first 11 months of 2023, the actual utilization of foreign investment in China exceeded 1 trillion yuan, maintaining a historical high. The Chinese market has become a stage for testing and honing the competitiveness of enterprises. Referring to Tourism development, he said the consumer demand continues to recover, with Chinese citizens showing increasing interest in tourism, fitness, entertainment and health maintenance. During the 3-day New Year’s holiday in 2024, domestic tourism in the country saw 135 million trips, marking a remarkable year-onyear growth of 155.3% and ushering in a strong start for consumption. In the first 11 months of 2023, investment in China’s high-tech industries grew by 10.5% year-on-year, surpassing the overall investment growth rate by 7.6 percentage points, Yang Yundong said. He said renewable energy has become a new force in ensuring China’s power supply, with an installed capacity reaching 1.45 billion kilowatts, accounting for over 50% of the country’s total power generation capacity and surpassing historical records in thermal power installations. He said the industrial economy was steadily recovering as on November 4th,
the domestically produced large cruise ship “Adora Magic City” was named and delivered, marking China’s capability to simultaneously build aircraft carriers, large liquefied natural gas transport ships, and large cruise ships. This achievement symbolizes the culmination of China’s shipbuilding industry, known as the “three pearls”, he added. Looking ahead to 2024, the world economy and trade face challenges of increasing trade protectionism and escalating geopolitical conflicts, the Consul General said China’s economy demonstrates strong resilience, substantial potential, and vitality. It benefits from the institutional advantages of a socialist market economy, the demand advantages of an enormous market, the supply advantages of a comprehensive industrial system, and the talent advantages of a large number of high-quality workers and entrepreneurs. He said in order to build China into a great modern socialist country in all respects, we have adopted a two-step strategic plan: basically, realize socialist modernization from 2020 through 2035, build China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful from 2035 through the middle of this century. He said over the past year, Chinese diplomacy had upheld fundamental principles while breaking new ground and forged ahead in China’s external work. We have created a favorable environment for building a great modern socialist country and advancing the rejuvenation of the Chinese nation. On the occasion, the CG gave away awards to senior journalists including Mian Abrar Hussain, Manzar Naqvi, Sarmad Ali, Javed Qureshi, Wamiq Zuberi, Dr Jamal Siddiqui, Abdullah Sarohi, Aftab Khan, Syed Turab Shah, Talha Hashmi, Irshad Sanjrani, Sallahuddin Ahmed, Zil e Haider, Sonia, Mariam Hassan, Zahid Karani, Mustafa Karani, Yousaf Karani and others.
Senate body calls law and finance ministers for clarification on legislative authority of caretaker govt ISLAMABAD
Staff RepoRt
The Senate Standing Committee on Finance and Revenue called upon the Law and Finance Ministers on Wednesday to provide their perspectives on the jurisdiction of the caretaker government to enact legislation. The summons were issued as the committee, headed by Senator Saleem Mandviwalla, deliberated on bills, with a committee member insisting that the caretaker government lacked the authority to legislate. The committee was reviewing two proposed bills, namely the Deposit Protection Corporation (Amendment) Bill 2024 and the Banking Companies (Amendment) Bill 2024, both referred to it by the upper house for vetting. Soon after the committee took up the bills for a discussion, Senator Sadia Abbasi said that the caretaker government lacked the authority to engage in legislation. “What is the stance of the law ministry on this matter?” committee head Mandiwalla enquired. In response, Jam Muhammad Aslam, law ministry’s additional draftsman, explained that a designated minister was “incharge in the upper house during the presentation of a bill.” “The caretaker government has the authority to legislate,” the ministry official said. He further mentioned the existence of a relevant committee capable of providing suggestions on the matter, emphasising that neither the Constitution nor the rules posed any hindrance to such proceedings. At this, Senator Abbasi asked, “How can unelected individuals introduce legislation in parliament?” Following a brief discussion, the committee decided to summon the ministers for law and finance in the upcoming hearing to seek their perspectives on the issue. In November last year, the Senate members had barred caretaker Information Minister Murtaza Solangi’s attempt to move the Motion Picture (Amendment) Bill in the Senate, calling it “a transgression of his constitutional domain”. At the time, PPP Senator Mian Raza Rabbani had stressed that caretaker governments did not have the power to make laws. “This was the first time in the parliamentary history a caretaker government has brought a bill in the Senate,” the senator had said. He had also referred to Section 230 of the Elections Act, under which the caretakers only tend to day-to-day matters necessary to run the government.
Sheikh Rashid gets green signal to contest election LAHORE
Staff RepoRt
The Lahore High Court (LHC) Wednesday allowed the former federal minister Sheikh Rashid Ahmed to contest the upcoming general election 2024. According to the details, a threemember bench of Lahore High Court heard the petition filed against the decision to approve the nomination papers of Sheikh Rashid. The Lahore High Court upheld the decision of the Appellate Tribunal. It was argued in the petition that Sheikh Rashid’s nomination papers were approved contrary to the facts, the court should annul the decision of the Appellate Tribunal. The appeal against acceptance of nomination papers of Sheikh Rashid from NA-56 was dismissed.
Japan to extend $3.62m grant assistance for polio eradication in Pakistan ISLAMABAD
Staff RepoRt
The Government of Japan has announced to extend a new US$ 3.62 million grant assistance to procure essential oral polio vaccines as part of its continued support to polio eradication efforts in Pakistan. The funds provided by Japan will be used by Pakistan Polio Programme to procure more than 21 million doses of vaccines to support polio campaigns in 2024. It should be mentioned here that Pakistan was one of only two countries globally that has yet to stop polio. In 2023, Pakistan reported a total of 6 cases of polio. With polio cases cornered to only a few locations in the country, the Government of Pakistan and partners are preparing to launch an aggressive plan of activities in 2024 to stop this life altering disease for children. Each national immunization drive targets over 44 million children under the age of five, with more than 370,000 frontline workers, predominantly women, playing a crucial role
to ensure the Polio Programme’s outreach. “Despite the challenges, Pakistan will remain relentless in our drive to put an end to polio in the next year,” said Dr. Nadeem Jan, Federal Health Minister, Government of Pakistan. “As we prepare to launch polio campaigns in 2024, together with our partners we will maintain an emergency focus
towards resolving the remaining challenges that stand in our way to reach all children. “ “The unwavering support of the Government of Japan has been instrumental in helping us get closer to reaching zero cases. We are thankful to the Government and people of Japan for their continued support towards polio eradication in Pakistan,” Dr.
Nadeem Jan added. Mr. ITO Takeshi, Charge d’ Affaires ad interim of Japan to Pakistan, appreciated the significant gains made last year in controlling the spread of poliovirus. “I would like to express my sincere respect to polio workers and law enforcement agencies for their dedicated mission for humanity”, said Mr. ITO. Noting the importance of a clear and strong commitment by the Pakistani leadership to end polio, he said, “Japan would like to renew its commitment to continuing its efforts toward the ultimate goal of polio eradication by promoting routine immunization.” The new funding is part of the continuous support from the Government of Japan to the Polio Eradication programme since 1996. To date, the grant and loan contribution from the Government of Japan has amounted to approx. US$ 242.16 million dollars to support the Polio programme in Pakistan through UNICEF. Senior Representative, Japan International Cooperation Agency (JICA) Pak-
istan Office, Mr. Tsuyoshi Hara said, “We appreciate the government’s commitment to making all-out efforts to ensure all children receive the essential vaccine. We believe that vaccines, the most effective way to strengthen children’s immunity, will be used effectively with the understanding of parents and communities and the efforts of frontline workers. We sincerely hope that all the polio campaigns of this year will be conducted successfully toward zero polio cases.” UNICEF Chief of Polio in Pakistan, Melissa Corkum said, “With fewer cases reported in 2023 compared to 2022, we find ourselves at the crossroads between progress and regression. Six cases are far too many, meaning six children affected permanently by polio.” “Today with this generous pledge from the Government and people of Japan, we renew our commitment to ensuring a poliofree world. One step forward, no steps back towards reaching all children with life-saving vaccines.”
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Thursday, 18 January, 2024 | ISLAMABAD
CHAIRMAN NAB ASSURES BUSINESSMEN OF ALL OUT SUPPORT TO TACKLE EXISTING CHALLENGES
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HAIRMAN National Accountability Bureau (NAB), Lieutenant General Retired Nazir Ahmed has leadership of the business community of extending all out support to tackle all challenges faced by them. He made the assurance during a series of meetings with the business leaders of Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Karachi Chamber of Commerce & Industry (KCCI) and other top business community leaders. During these meetings with Chairman NAB, the business leaders held significant discussions regarding addressing pressing economic challenges and propelling the nation toward growth. They suggested a number of proposals to help steer the country out of the economic turmoil. Lt Gen Retd Nazir Ahmed responded positively and said that he wants to assure the business communities that NAB will not harass them and they should openly play their key role in the development of the country. He said that they should be fully focused on wealth creation activities and should do business without any fear.
The Chairman NAB stressed that extreme importance would be given to wealth creation activities/ projects which will be encouraged and will be protected from unwarranted pressures and intimidation. It was agreed that the business community, being the very core of our economy, has to be given the respect and status that it deserves. He said that NAB will deal with all businessmen with utmost respect & dignity and will help in creating business friendly environment. Business leaders emphasized the im-
Quran, Seerah solution to all contemporary issues of world, says Aneeq Ahmed KARACHI inp
Caretaker Federal Minister for Religious Affairs and Interfaith Harmony, Aneeq Ahmed has said that Quran and Sirat e Tayyaba provide us guidance and set basic principles concerning to every field of life urging students to develop comprehension of religion as well as contemporary issues. While addressing a conference on “Sirat un Nabi (SAW) and contemporary challenges and their solutions” jointly organized by the Ministry of Religious Affairs and Iqra University here on Wednesday, he said that it had been imperative that students not only understand the religion of Islam but also comprehend requirements of the contemporary era as well as economic, social and other issues in the light of teachings of Islam and keep themselves abreast of developing global situation. Aneeq Ahmed said that religious obligations (Deen) and demands of worldly pursuits (Duniya) are intertwined and we have to search the solution of contemporary issues in the light of Quran and Sirat-e-Tayyaba adding that true comprehension of religion could not be achieved without understanding the worldly affairs. Islam emphasizes on practical action and application of knowledge and life of Hazrat Muhammad (PBUH) is a guiding example for every human being, he noted and added that Hazrat Muhammad (PBUH) set standards for individuals, society and state and those must be followed. While referring to his recent visit to Saudi Arabia, the federal minister informed that Hajj agreement was signed in Hajj Conference in Madina Munawarah which was attended by delegates from 80 countries. “I have floated an idea at the conference that all the rulers of Muslim countries should gather in Makkah Mukarama on the occasion of Hajj to discuss the issues being faced by Muslims across the world and come up with a unanimous agenda to deal with them,” he stated. Aneeq Ahmed while underscoring the significance of seeking knowledge in Islam said that Hazrat Muhammad (PBUH) never prayed to Allah for increasing anything but the knowledge because it helps human understanding the Creator and the religion and teach them to live the life in a dignified and upright manner. He expressed dismay that in the contemporary era, Muslims were lagging behind in education and knowledge and said that every Muslim should strive in pursuit of knowledge and adopt the teaching of Islam and its Prophet (PBUH) in letter and spirit. The minister said that government was making efforts to promote the Islam’s message of peaceful coexistence and conferences were being organized in different universities of the country for spreading awareness to students.
portance of an enhanced and sustained interactive dialogue between the business community and NAB. While responding positively, Chairman NAB said that a Business Facilitation Cell would be established initially at Karachi, Lahore and Islamabad including representatives of the business community for better coordination and facilitation of the business community. He said that he believes in participative accountability therefore general complaints against businessmen will be first referred to the Facilitation Cell for immediate resolu-
tion/rectification and necessary action as per law. The Chairman NAB updated the business community about his reforms in NAB and future plans. He said that no businessman will be subjected to a media trial during the process of complaint verification and inquiry. He further added that complaints written under fictitious names or anonymous will not be entertained by NAB henceforth. During the course of inquiry, businessmen would be addressed as respondents and their confidentiality would be ensured. It was further agreed that NAB will hold seminars regularly at different Business Forums in order to inform business community about NAB’s objective, operations and framework for better facilitation and also about their rights under the NAB Law. To bolster economic decision-making, Director General NAB Karachi Javed Akbar Riaz assured that all the pending cases against the business community would be completed expeditiously and all efforts would be made to create business friendly environment for the investors. Prominent Businessmen Aqeel Karim Dhedhi, Arif Habib, Bashir Jan Muhammad, Habibullah, Atif Ikram Sheikh, Zubair Motiwala, Ahmed Chinoy and many other business community members attended the meetings.
Power Division ensures appointment of market-based advisors in DISCOs ISLAMABAD
ahmad ahmadani
In order to improve the performance of power distribution companies (DISCOs), Power Division, instead of filling these positions with internal officers of the DISCOs, has issued guidelines for the recruitment of market-based advisors/professionals on key senior slots of DISCOs. According to sources, the Power Division is pushing for a comprehensive reform of departmental heads and Clevel positions within Distribution Companies (DISCOs). They said the division (power) has suggested that Board of Directors (BoDs) of DISCOs may consider creation or re-designation of the six new C-level positions in addition to the positions of Companies Secretaries, Chief Financial Officer. And, it (power division) has issued guidelines for the recruitment of professionals in DISCOs and asked the chairman Board of Directors (BoDs) and Chief Executive Officers (CEOs) of DISCOs to ensure filling few senior positions with market/experts/professionals. By encouraging experienced individuals to contribute, the Power Division anticipates a positive impact on the overall performance and responsiveness of DISCOs, ultimately contributing to the enhancement of the power distribution sector, said sources. The overarching goal is to instigate
a positive cultural transformation that will ultimately enhance the overall performance and efficiency of these distribution entities, said sources. Power Division, in a letter dated 10th January 2024 titled ‘Appointment of market-based advisors for strengthening human resource of distribution companies (DISCOs)’ to all chairman BoDs of DISCOs and CEOs of DISCOs said that DISCOs have multiple C-level positions which are mainly filled by the officers from within the company. Positions of Chief Financial Officer (VFO), Company Secretary (CS) and Chief Internal Auditor (CIA) are required to be filled as per Public Sector Companies (Corporate Governance) Rules, 2013 by the concerned Boards through market-based recruitments. Similarly, companies are required to fill the positions of CEOs through a competitive process as per relevant law. Power Division feels that the entire structure of departmental heads or C-level positions within DISCOs and the modus operandi to fill these posts are required to be reformed by opening a window for professionals to help reform these DISCOs through a cultural shift with the aim to improve performance of these DISCOs, said power division’s letter. Based on consultations, it is suggested that Boards of respective DISCOs may consider creation or re-designation of the following new Clevel positions in addition to the posi-
tions of company Secretary, Chief Financial Officer. 1. Chief Human Resource and Career Planning Officer 2. Chief Legal Officer 3. Chief Commercial Advisor 4. Chief Technical/ Engineering Advisor 5. Chief Information Technology Officer 6. Chief Supply Chain Management Officer It is relevant to note that in order to facilitate Boards (BoDs of DISCOs), power division has developed a policy and eligibility criteria along with job description for each post. However, power division has suggested that Boards may debate and finalize the same as they may deem it appropriate. Further, the power division advised that the Boards may draft a policy for such appointments. The sources further informed that power division in order to eliminate theft in DISCOs had earlier suggested that monitoring units should be established in DISCOs. But Finance Ministry vehemently opposed the proposal, and suggested running the DISCOs by experts/professionals, sources added. It is also learnt from sources that under the IMF agreement, the management of 304 government companies is to be taken out by the line ministries and placed under the management of the Ministry of Finance.
Faisalabad candidates seek court intervention for symbol change ahead of elections FAISALABAD
Staff RepoRt
Candidates contesting for National Assembly seats NA-101 and NA-104 in Faisalabad have approached the court seeking redress. According to media reports, the applicants have filed a plea in court requesting to alter the election symbols for both constituencies, replacing the current for NA-101 and for NA-104. Basharat Ali revealed that the candidate from my panel contesting for NA-101 has been assigned the symbol of ‘Minaret,’ while I have been designated the ‘Mace’ for NA-104. Basharat Ali expressed concerns about the unwarranted and diverse symbols assigned, causing complications in conducting the electoral campaign. It should be noted that candidates in previous elections who were given unfavorable election symbols had criticized the Election Commission of Pakistan.
Pakistan decides to recall ambassador from Iran following ‘unprovoked violation’ of airspace CONTINUED FROM PAGE 01
Local authorities said they had also received information about such an attack but had no further details. Reports from the area suggested that a missile hit a mosque, partially damaging it and injuring some people. According to AFP, hours before the attack, caretaker Prime Minister Anwaarul Haq Kakar had met Iranian Foreign Minister Hossein Amir-Abdollahian on the sidelines of the World Economic Forum in Davos, Switzerland. AMID ESCALATING SITUATION, CHINA URGES FOR ‘RESTRAINT’: Speaking at a regular briefing on Wednesday, China Foreign Ministry Spokesperson Mao Ning said: “We call on both sides to exercise restraint, avoid actions that would lead to an escalation of tension and work together to maintain peace and stability.” “We consider both Iran and Pakistan as close neighbours and major Islamic countries,” she added. It must be noted that both Iran and Pakistan are close partners of Beijing and members of the Shanghai Cooperation Organisation — a political and security union of countries spanning much of Eurasia, including China, India and Russia. In a press briefing in Islamabad today, FO spokesperson Mumtaz Zahra Baloch said last night’s “unprovoked and blatant breach of Pakistan’s sovereignty by Iran” was a violation of international law and the purposes and principles of the Charter of the United Nations. “This illegal act is completely unacceptable and has no justification whatsoever,” she asserted.
Iran claims it targeted ‘Iranian terrorist group’ in Pakistan ISLAMABAD
Staff RepoRt
Tehran’s chief diplomat stated on Wednesday that the armed forces of Iran had carried out a mission the previous day, targeting an alleged “Iranian terrorist group” in Pakistan. This comes in response to Islamabad’s claim that the strike resulted in the tragic death of two children. “None of the nationals of the friendly and brotherly country of Pakistan were targeted by Iranian missiles and drones,” Foreign Minister Hossein Amir-Abdollahian said on the sidelines of the World Economic Forum in Davos, Switzerland. “The so-called Jaish al-Adl group, which is an Iranian terrorist group, was targeted,” he added. The raid came late on Tuesday after Tehran also launched attacks in Iraq and Syria against what it called “anti-Iranian terrorist groups”. Pakistan denounced the strike near the
nations’ shared border, recalled its ambassador from Iran and blocked Tehran’s envoy from returning to Islamabad. “This illegal act is completely unacceptable and has not justification whatsoever. Pakistan reserves the right to respond to this illegal act and the responsibility for the consequences will lie squarely with Iran,” said FO Spokesperson Mumtaz Zahra Baloch in a brief statement. The spokesperson also added that Islamabad would suspend all high-level diplomatic exchanges with Tehran following the violation of the country’s sovereignty and added that the Iranian envoy to Pakistan, who is currently visiting Iran, will not be allowed back in the country. “We have conveyed this message to the government of Iran. We have also informed them that Pakistan has decided to recall its ambassador from Iran and that the Iranian ambassador to Pakistan, who is currently visiting Iran, may not return for the time being.”
However, Tuesday’s strike came as major surprise because Tehran opted for this option despite existence of channels of communication between the two countries. A few hours before the strike, Caretaker Prime Minister Anwaarul Haq Kakar met Amir-Abdollahian on the sidelines of the Davos Forum. Amir-Abdollahian said Iran’s attack on “Pakistan’s soil” was a response to the Jaish al-Adl group’s recent deadly attacks on the Islamic republic, particularly on the city of Rask in the province of SistanBaluchistan. An attack on January 10 on a police station in the city killed a policeman, almost a month after 11 police officers were killed in a similar attack in the area. Both attacks were claimed by Jaish al-Adl (Army of Justice). “The group has taken shelter in some parts of Pakistan’s Balochistan province,” Amir-Abdollahian said, adding that “we’ve talked with Pakistani officials sev-
Suzuki’s stock market drama takes a new twist CONTINUED FROM PAGE 01
Secondly, Pak Suzuki might aim to reduce compliance requirements and information dissemination by delisting from the stock market. Lastly, the company might be anticipating a positive turnaround, supported by recent financial performance that demonstrates a shift from losses to profits, as well as a recovery in vehicle sales. In addition, the expected decrease in the policy rate and potential increase in lending within the automobile sector contributes to this optimistic outlook.
WHAT WILL THE SHAREHOLDERS DO? The market, however, has already reacted. Initially the market saw an increase in the price from Rs 150 to Rs 898. This shows that the market expected that the price will be much higher than the one quoted by the company and the exchange. Since the announcement was made, the market has also seen the price crashing with the current price at Rs 716. It is expected that the price will finally settle at Rs 609 as that is the most that the company is willing to pay. Experts still feel that the price is below expectations. “We believe the proposed minimum buy back price may have fallen below street expectations keeping in view potential revaluation gains as well as the company’s
dominant position in the local automobile assembling space. Our view is that the investors will be unwilling to offer their shares at the proposed price keeping in mind that the market value of the company” says Kailash Kumar, an analyst at KTrade. “The Voluntary Committee’s decision to set the delisting offer for PSMC at Rs609/share, indicating a 50% rise from the initial minimum price of 406, might not be received favorably by PSMC investors. Their dissatisfaction could arise from the offer price being 21% below the stock’s last closing. In contrast, let’s consider another international deal of Unilever, where the final price of Rs15,000/sh was higher than the minimum price of Rs9,700/sh by 54%, but it was also about 35% higher than the stock’s last closing before the final price announcement by the Exchange.” states Waqas Ghani, senior analyst at a brokerage house. The price of Rs. 609 would seem attractive to investors who bought the shares initially. “Its 6x the price compared to when it was announced (which means its a) fair deal for shareholders who had bought before the announcement.” opines Yousuf Farooq, Director Research at Chase Securities. Farooq further states that some participants might argue that the price is low as Suzuki is a much more valuable asset but it needs to be put into context that the price being offered is 6 times the price when the buy-
back was announced. Chase Securities actually gave a buy recommendation for the stock back in August when it was trading at Rs. 100. They would be more than happy to sell the shares to the company. But what about the investors who bought at Rs. 898 expecting the price to keep increasing? Do they have a recourse in this matter? Past examples show that shareholders have shown their displeasure at the rate given by the exchange itself. Unilever Pakistan carried out their buyback in 2013 and gave a price of Rs. 9,700 per share. When the decision was left to the exchange, they settled on a price of Rs. 15,000. Acacia Partners — a New York based hedge fund — said in the case of Unilever that these rules overlook the minority shareholders and said that they would reduce their investment in Pakistan due to the existing rules. The rules are made in a way that the shareholders have to sell the shares at the price decided by the exchange or wait it out as a block. In case the company is not able to carry out the buyback of at least 90% of the shares in a period of 12 months, the buyback can be cancelled. On 12th January 2024, a letter was sent by Nadeem Nisar. In the letter sent to PSX, it was stated that Mr Nisar had accumulated more than 10% of the shareholding of Suzuki and that as he had crossed the 10% threshold, he was making the company and the exchange aware of this
eral times on this matter”. The foreign minister said Iran respected the sovereignty and territorial integrity of Pakistan but would not “allow the country’s national security to be compromised or played with”.
fact. In essence, it was an announcement by the individual that he had the power to cancel the buyback by not selling any part of his shareholding to Suzuki. For people who might not know, Nadeem Nisar is the son of famous trader Nisar Dunka who actively traded and held stocks during the 90s. This means that the buyback can be cancelled if this individual holds out and does not sell his shares at the price quoted and then the company and stock exchange will have to cancel the existing buyback and carry out a new one. Nisar sent the letter to PSX before the rate was disclosed by the exchange on 15th of January and controls the fate of this buyback all by himself. Now what are the options available to Nisar. First of all, he can let the buyback expire in 12 months time and not sell any of his shareholding in the company. This will mandate the company and exchange to make a better offer in the future. The second option he has is to carry out negotiations with the exchange and the company and look to broker a deal on the side which circumvents the buyback and looks to resolve the issue in timely manner. This option will have to go around the exchange as the exchange cannot revise its current rate as it is considered final and binding. Such an off-market deal might be quite profitable. These are the two most plausible options he has. The last option he has is to sell only a small part of his holding and allow the buyback to go through while staying a shareholder in a private Suzuki company. This seems unlikely as he will have little interest in an unlisted company having little to no say in how it is run.
04 COMMENT
Damaging democratic constitutionalism
Iranian attack
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HE Iranian attack on two targets in Balochistan was surprising, because it was made by a country which is supposed to be friendly. However, it also showed that there might be a limit to patience, and Iran feels that Pakistan has not taken enough steps to deal with Baloch separatists. Pakistan has also got a Baloch separatist problem. It is also of concern that the attack was not detected by Pakistan forces sufficiently in advance so that the various channels of communication between the two countries were not explored. Though Pakistan did lodge complaints with the Iranian Foreign Ministry as well as the Iranian charged affaires in Islamabad, Islamabad seems determined to take the attack in its stride, for it condemned the attack on the Rask police headquarters in which 11 were killed, and which was claimed by the Baloch sepratist Jaish-e-Adl, whose bases in Pakistan were attacked, as well as the attack on a rally in Kerman at Islamic Revoltionary Guard’s assassinated Islamic Revolutionary Guard’s commander Maj Gen Qasem Solaimani’s graveside, which killed 100 people. That attack had been on January 3, with responsibility claimed by the Islamic State of Lebanon and Syria. Iran has been taking strong measures even against allies, for it launched missile strikes on both Erbil in Iraq and Idlib in Syria. In Iraq Iran claimed it attacked an Israeli spy headquarters, though it is friendly to the Iraqi government which in turn invited the coalition forces in Erbil. Iran is allied to the Syrian government, which is also an ally. While it may seem that Iran is striking against opponents, its attack on Mossad must be seen within the It is also necessary to see its own position in the ongoing US-China conflict, in which it is as firmly aligned with China as Iraq is with the USA. Pakistan is trying to maintain good terms with China as well as the USA, while it is also tied by a common religion and culture, and a long border, to Iran. While the defence of its territory remains essential, it must recognize that Iran’s real target was not Pakistan, but the separatists that Pakistan is also fighting. It appears that better coordination is needed, rather than any sort of conflict. Iran should be reassured rather than offended. There must be some soul-searching too. Matters should not have reached this pass. Pakistan must try and work out if the fault lies with it, and convey to Iran that it too needs to work out why such a mishap occurred.
The ECP had no right to examine the PTI’s elections
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Mian RaUf
OR the success and growth of democracy, free and fair elections are a sine qua non. The progress of democracy is endangered when the political parties are ousted from participating in the electoral exercise and the citizens are deprived of exercising their fundamental right to elect representatives of their choice to Parliament. The Constitution of Pakistan 1973 has ensured that every citizen in Pakistan has the right to form or be a member of a political party subject to reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan. However, the citizens’ right to vote for a political party of their choice has suffered a major setback with the controversial ruling of the Supreme Court of Pakistan which has deprived the PTI, the most popular political party in the country, of its election symbol on technical and flimsy grounds. The ruling of the Supreme Court will have disastrous consequences for beleaguered democracy in Pakistan. It has made the general elections due on February 8 controversial as the most popular political party has been knocked out of the electoral race. Such a decision has the potential of affecting the future of the country as it is the fundamental principle of jurisprudence that the courts while interpreting the con-
stitutional and law provisions cannot ignore the political consequences of their decisions. The Election Commission of Pakistan, being an impartial and neutral body to organize and conduct free and fair elections in the country, has also lost its credibility by continuously targeting and discriminating against the PTI and its leadership. Both the Supreme Court and the ECP have caused severe damage to the democratic process through their fallible, fanciful and controversial decisions. The contention of the ECP, upheld by the three-judge bench of the Supreme Court, that the PTI has failed to hold intra party elections in accordance with the party’s own constitution involved a question of fact as well as law which could have been decided by a court of law after appraising the evidence. Neither the Constitution nor the Election Act, 2017 contain any explicit provision which gives the ECP power to deny a political party its election symbol on the bases of contested intra-party elections, but the Supreme Court has affixed its stamp on the illegal decision of the ECP without quoting any provision of the law. It is pertinent to mention here that the ECP has specifically placed reliance on sections 208, 209 and 215 of the Election Act, 2017. Under section 208, if the political party fails to conduct intra party elections within stipulated time period of the constitution, the ECP can only impose fine on that party to the tune of Rs 20,000 and it does not confer any jurisdiction on the electoral watchdog to probe into the irregularities of the party election. Similarly, section 209 makes it incumbent on the political party to submit a certificate signed by its office bearers authorized by the party head, within seven days from the completion of the intra-party election to the ECP to the effect that the elections were held in accordance with the constitution of the political party and the Act. Section 215 contains a non- obstante clause which reads as follows: (1) “Notwithstanding anything contained in another law, a political party enlisted under this Act shall be eligible to obtain an election symbol for contesting elections for Majlis-e-Shoora (Parliament), Provincial Assemblies or local government
Arif Nizami (Late) Founding Editor
Yousaf Nizami
Navigating the Complex Dynamics in the Middle East Editor Umar Aziz M. A. Niazi
The writer is a legal practitioner and columnist. He holds an LLM in constitutional law and can be reached at mianrauf2171@gmail.com
Executive Editor
Gaza violence continues to dominate
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on submission of certificates and statements referred to in sections 202, 206, 209 and 210. (2) “A combination of enlisted political parties shall be entitled to obtain one election symbol for an election only if each party constituting such combination submits the certificates and statements referred to in sections 202, 206, 209 and 210. (3) “An election symbol already allocated to a political party shall not be allocated to any other political party or combination of political parties. (4) “Where a political party or combination of political parties, severally or collectively, fails to comply with the provision of section 209 or section 210, the Commission shall issue to such political party or parties a notice to show cause as to why it or they may not be declared ineligible to obtain an election symbol. (5) “If a political party or parties to whom show cause notice has been issued under sub-section fail to comply with the provision of section 209 or section 210, the Commission may after affording it or them an opportunity of being heard, declare it or them ineligible to obtain an election symbol for election to Majlis-e-Shoora (Parliament), Provincial Assembly or a local government, and the Commission shall not allocate an election symbol to such political party or combination of political parties in subsequent elections.” From plain reading of the above section it becomes crystal clear that the ECP power to declare a political party ineligible to obtain an election symbol will come into play if it fails to hold elections. In the case of PTI, an election certificate duly signed by office bearers authorized by Chairman Barrister Gohar Ali Khan was filed with the ECP, which was bound to allot PTI its election symbol but the electoral body has transgressed its mandate by denying the party its symbol. The question whether the intra party elections were held in accordance with the constitution cannot be decided by the ECP for being not a court of law. The Supreme Court in Sardar Bahadar Khan Bangulzai case has held that “where the question relates to inbuilt organizational structure disputes of the political party involved, in that event the Election Commissioner may ask the parties to get the question resolved through civil proceedings”. The Supreme Court through its controversial ruling has deprived millions of voters of their constitutional right to vote for the political party of their choice. Like many controversial rulings in the past, this decision will also haunt the judiciary.
The Supreme Court through its controversial ruling has deprived millions of voters of their constitutional right to vote for the political party of their choice. Like many controversial rulings in the past.
Dedicated to the legacy of late Hameed Nizami
Joint Editor
Thursday, 18 January, 2024
Ubaid Sahil
RISES and bloodshed in the Middle East are escalating into a regional war, as the war front extends into Yemen and Lebanon. Israel’s deadliest genocides against the innocent and helpless people of Gaza have claimed over 23,000 lives to date, with more than 10,000 being innocent children— an unimaginably brutal and cruel genocide. Thousands of Gazans are forcibly displaced, many in critical condition due to severed health and food facilities. According to reports, two journalists are killed in Gaza every day. In the combat zone, where there are no medical facilities, no food, and no anesthesia for surgeries, 180 Gazan women give birth each day. About 150 United Nations workers have been killed. The Gazan landscape is completely destroyed by bombardments and tank fires. Israel has suspended rescue missions and aid supply. During these brutal times, the Western world, particularly the USA, staunchly supports Israel’s deadliest genocides by providing advanced military weapons, further extending the warfront into neighbouring states. The world’s most widely read and viewed media outlets are also presenting biased narratives, justifying and defending Israel’s genocides while disregarding the voices of helpless Palestinians. This biased approach is causing Western media outlets to lose credibility and viewership on an international scale. While the silence of the entire Muslim world over the genocides is notable and unjustifiable, Iran and its “Axis of Resistance” strongly support Gazans both militarily and financially. Alongside Hezbollah and Yemeni Houthis, the Axis of Resistance has initiated warfronts in Lebanon and the Red Sea. The Red Sea, responsible for 12 percent of global trade, faces attacks by Iranianbacked Yemeni Houthis on trade shipping connected to Israel. On the Lebanon front, the Iranian-backed Hezbollah has launched attacks on Israel. The Houthis have declared their intention to continue shipping attacks until Israel and its alliances cease genocidal actions in Gaza. Recently, the USA and the UK initiated
bombardments targeting Houthis in Yemen to ensure the Red Sea remains navigable and secure the shipping route through it. They have bombed Houthis in Yemen, including the capital city Sana’a. The Houthis control approximately 80 percent of Yemen’s population. Simultaneously, Israel is targeting Hamas leaders in Lebanon. The Red Sea route is crucial; its closure could escalate global inflation, as the alternative route around the Horn of Africa is longer and more expensive. Some argue that if Israel eliminates Hamas and gains control of Gaza, it might consider constructing the Ben Gurion Canal as an alternative to Egypt’s Suez Canal. Some others argue that the warfront could escalate to a global scale if the shared ideology of other Islamic militants worldwide joins the conflict. Various militant organizations share the same intentions as groups like Hamas and Hezbollah. These militants have gained confidence following the failures of the USA’s military interventions in Afghanistan and other regions. If the genocides persist, they may join the resistance front to support their Palestinian counterparts. Potential organizations that might participate include Al-Qaeda, Al-Shabab, and others. South Africa has filed a genocidal case against Israel in the International Court of Jus-
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tice at The Hague. The case is in its initial stages, with lawyers from both sides presenting their evidence to either dismiss the case or prove it worthy of consideration at the ICJ. The world is closely watching this development, as it could signify the future of the war. Initial hearings suggest favourable outcomes for South Africa, as their lawyers have presented more compelling points against Israel’s genocidal actions. On the contrary, Israel’s less confident lawyers have provided weak evidence to justify their actions in Gaza. The hearings will continue and may take time, but an immediate ceasefire is the need of the hour to prevent further killings of innocent Gazan people and children. If the ICJ favours Israel in the case, over half of the world, including Muslim nations and other liberal nations, may stop crediting ICJ as the provider of justice. They will not consider the ICJ a fair court. On the other hand, if the ICJ declares Israel a genocidal criminal, the Western World along with the USA may find themselves in trouble, as they are justifying genocides and even directly acting militarily in Yemen. The ICJ has to provide justice for the innocent Gazans, and Muslim states and nations worldwide should support South Africa in the ICJ to stop the genocides. The writer can at ubaidsa9@gmail.com
be
reached
If the ICJ favours Israel in the case, over half of the world, including Muslim nations and other liberal nations, may stop crediting ICJ as the provider of justice. They will not consider the ICJ a fair court. On the other hand, if the ICJ declares Israel a genocidal criminal, the Western World along with the USA may find themselves in trouble, as they are justifying genocides and even directly acting militarily in Yemen.
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Tough economic times
IN our tough economic times, with prices going through the roof, especially for electricity, it’s getting harder for regular folks to manage their bills. At the same time, tons of solar companies are popping up, trying hard to sell us on the idea of clean and affordable energy. Sure, using solar panels can save money in the long run, but the upfront cost is no joke. Only rich folks can really afford it, and it’s the same deal for community welfare groups. Plus, there’s a worry about all those solar panels becoming big environmental problems down the line, with not enough ways to recycle them. Even if we’re not hitting the waste levels of big countries, our trash is still adding up, adding to our carbon footprint. With all this in mind, the solar companies in Pakistan need to think about who can actually afford their stuff. Instead of spending big bucks on fancy ads and celebrity endorsements, they could focus on helping out the community. Donating solar panels to schools, hospitals, and other non-profits could be a win-win. It helps these groups keep doing their good work, and it gives the solar companies a good name. Maybe it’s smarter for these companies to show they care about the community, rather than just trying to be the flashiest in town. That way, they can build a positive image and get more support in the long run. Going heavy on Corporate Social Responsibility (CSR) might just be the way to go, rather than going all out on flashy ads. MOBASHIR SANDILA KARACHI
Forced marriages
FORCED marriage is a deeply concerning phenomenon wherein individuals are compelled to marry against their will. Forced marriage represents a significant problem as it deprives people of the freedom to choose their life partners. The thought of being coerced into a marriage one does not desire is not only unfair but also has the potential to bring immense unhappiness. The adverse effects of forced marriage are most pronounced among girls and women. They often face the unfortunate consequence of leaving school prematurely, hindering their educational pursuits. This denial of opportunities to learn and grow is inherently unjust. Every individual deserves the chance to receive an education and pursue their dreams. Beyond education, forced marriage takes a toll on individuals’ emotions and mental well-being, leading to feelings of sadness, anxiety, and isolation. In some instances, victims even endure physical and sexual abuse, which is utterly appalling. To combat forced marriage, collective efforts are essential. Governments can play a pivotal role by enacting laws that render forced marriage illegal and impose penalties on those who coerce others into marriage. SAJJAD WAHID LAHORE
Inflation struggle
I am highlighting a pressing concern: the high inflation rate in Pakistan, posing numerous challenges for our citizens. Inflation has evolved into a critical issue demanding urgent intervention from the government. According to official statistics, inflation in Pakistan averaged 12% per year between 1990-91 and 1995-96, although many economists believe it exceeded 20%. Inflation, defined as the persistent rise in general prices across the country, significantly impacts the financial status of a nation. It may range from creeping to galloping, affecting the economic landscape of the entire country. Currently, inflation in Pakistan has entered a phase of crumbing inflation, introducing various difficulties to the country’s survival. The high rate of inflation continues to increase instead of decreasing, presenting multiple challenges to the nation’s finances. Unfortunately, authorities have not adequately addressed this matter, and it urgently requires resolution.” RAHAT NAZEER AHMAD PESHAWAR
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COMMENT 05
Global warming Thursday, 18 January, 2024
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All must do their bit
MaRYaM NISaR ahMED
HE Earth was formed about 4.5 billion years ago, and its temperature has evolved through history. It has experienced periods of gradual warming and cooling throughout its existence. Moreover, the Earth has become a global village, and modernization has seized the attention of humans with its ease or facilitating capacity. Since the rapid growth of the industrial revolution, Earth’s temperature has increased by a little more than one degree Celsius (1°C). This rise in Earth’s temperature is known as global warming. It has today become a threatening remark to mankind. Due to the enhancement of temperature, climate is being predominantly changed. Some major indications of climate change include a decrease in the winter season, an increase in the summer season, and unseasonal rains. Meanwhile, without human force, the Earth has already experienced climate change in various ways. But now, humans are more responsible for the rise in Earth’s temperature. According to an independent analysis obtained by the National Aeronautics and Space Administration (NASA) and the Atmospheric Administration, Earth’s surface temperatures in the year 2016 were the warmest since modern record-keeping began in 1880. The globally average temperature in 2016 was 1.78°F (0.99°C) warmer than the mid-20th century. So, this analysis makes 2016 the third year to set a new record for the average surface temperature. Furthermore, global warming dominates the ecosystem and the planet’s temperature, which is the ultimate sign of danger. It is inevitable, no matter what we do. It is not the result of two or just some activities but is the outcome of various acts, and it is the result of a myriad previous situations and present influences. It is a fact that human activities and
trends have led us towards the world scenario of global warming. Apart from that, the main causes which contribute to it include greenhouse gases, a large population, excessive utilization of fossil fuels, deforestation, and many more. Global warming is mostly caused by human activities such as burning fossil fuels for energy and transportation. When we burn them, a large amount of carbon is released as part of the gas carbon dioxide. It is naturally emitted from volcanoes, but humans and machines are originating it more than ever before. Among the main causes, greenhouse gases are mainly involved in promoting such prime issues. When they are emitted into the atmosphere, they trap heat from the sun in the shape of solar energy, which makes it impossible for animals and plants to live. The air is also being polluted because of which hazardous diseases have made individuals weak, exhausted, and made their lives less sustainable. Though nobody pays much attention to these injurious issues, in reality, they exist. On the other hand, exhaust gases emerging from mills and factories are spewin forth a huge amount of pollution. The harmful gases coming out from the vehicles as waste pollute the environment and make the Earth warmer, while some of those gases may create acid rain and smog. Particularly in this silicon era, the increasing extent of this pollution is a threat to the country as it demands resources. A substantial population can lead to numerous
mental as well as physical issues. Have you ever wondered whether without basic equipment you can survive? Definitely, compromises can be with luxuries, but not with necessities. Acknowledging the priorities with the fact that they are essential, so know their worth instead of hoping things will get better in the future. “Earth provides enough to satisfy every man’s need but not every man’s greed,” was rightly said by Mahatma Gandhi. Similarly, our planet’s forests are some of the most valuable resources we have. They provide food, clean air, construction material, and much more. Even more importantly, they are major lines of defence. It is
We must not apply this quotation; rather, we all should prove it wrong by marking consistent efforts to control it. If we make a small change now in the way we live, we can avoid huge changes in the future. Collective efforts by governments, individuals, and scientists across the world are needed because the value of working together for peace and development is greater than ever. The government should also be focusing on this crisis by implementing new policies for its eradication at the international level.
Modi’s juggernaut steaming toward a third term
Unless India’s leader flies too close to the sun, it’s highly unlikely he or his ruling BJP falls at this year’s general election
I
EAST ASIA FORUM aRUN SWaMY
N domestic politics, economics and international clout, Indian Prime Minister Narendra Modi enjoyed a stellar 2023. At home, his Bharatiya Janata Party (BJP) won most state elections. Regionally, India passed China to become the most populous country — and India’s GDP growth rate underscored her aspiration to replace China as the world’s factory. Globally, Modi was courted by all sides. Even space cooperated when India landed a craft on the moon. Foreign affairs took center stage. In 2022, India refused to condemn Russia’s invasion of Ukraine and increased purchases of Russian oil. In 2023, India seemed more adept at balancing its competing alignments. In May, Modi met with fellow leaders of the Quad while at the G7, where he was an invited guest. In June, India signed a landmark defense cooperation agreement with the United States, and Modi received red-carpet treatment at a state dinner in Washington. But in July, India hosted the “other side” at the Shanghai Cooperation Organization — which includes Russia and China and just added Iran. In August, Modi attended the landmark BRICS summit in South Africa. Here, the BRICS (Brazil, Russia, India, China and South Africa) grew to include many states unfriendly to the United States and discussed reducing their dependence on the US dollar. In September, the G20 summit in Delhi came full circle. In the absence of Russia or China, India’s relationship with the United States took center stage. The event, which India billed as a meeting focused on the Global South, produced three notable pronouncements. Unlike 2022, references to Ukraine in the joint declaration were more limited and buried in a long list of climate and developmental goals. US President Joe Biden announced funding to develop a new trade route connecting India to Europe via the Middle East. Finally, in a boost to India’s leadership aspirations, the African Union was made a member. The afterglow of the G20 was short. Weeks later, Canadian Prime Minister Justin Trudeau charged that Indian officials were complicit in the murder of a Canadian naturalized citizen active in the Khalistan movement, which seeks an independent Sikh state in India’s Punjab. India responded with indignation and diplomatic retaliation, while Indians largely attributed the charge to Trudeau’s ostensible political dependence on the Canadian Sikh community. Then in December, the United States charged an Indian official with attempting to hire an assassin to kill another Khalistan activist, a US citizen. With CIA director William Burns heading to Delhi to discuss the matter,
also undeniable that forests and trees have made the atmosphere clean by absorbing the dangerous gas (carbon dioxide) which is then used up by trees and other plants as a reactant to start photosynthesis, and in exchange, it produces oxygen as a product which we utilize for breathing. But sadly, humans are cutting them down and thus making them vanish for getting benefits but thus wounding the planet due to their intemperate nature. Deforestation is an issue of atrophy; it reduces agriculture and limits natural resources. In spite of being a significant environmental issue because of the massive loss of wildlife involved, it has many other impacts
the charge that India kills Sikh activists overseas had the potential to upend the Modi government’s diplomatic progress. Notably, India’s loud protests at the Canadian charges have been replaced with muted assurances that the actions were not government policy, reflecting the much higher costs of conflict with the United States. Domestic politics intruded on foreign policy in other ways. India jeopardized its bid for soft power by banning rice exports over political concerns about food price increases at home. Even more brazenly, India scheduled a G20 working session on tourism in Indian Occupied Kashmir — a region claimed by Pakistan, with an active insurgency and whose special autonomy the Modi government controversially revoked. Official invitations to the G20 used “Bharat” – the Sanskrit-derived Hindi name preferred by Hindu nationalists – rather than “India.” This sparked speculation the BJP was getting ready to drop the name “India”, though both names are recognized in the Constitution. If Indian agents are assassinating Khalistan activists, it speaks to something larger. Even if operations were not sanctioned by political leaders, they suggest an out-of-control security apparatus empowered by the arrogance and paranoia that characterizes the Modi government at its worst. The Khalistan movement has no real support in India today, so a campaign of assassinating diasporic activists is a vast overreaction. This arrogance and paranoia continue to target dissenting voices and inconvenient news. Through official and unofficial means, film icons, novelists, internet users, civil society organizations and even opposition politicians felt the pressure. In May, a horrific gang rape committed during ethnic violence in the BJP-ruled border state of Manipur was covered up by local police and an internet blackout until a video of the crime went viral worldwide. In 2023, Reporters Without Borders downgraded India’s ranking on press freedom again, from 150 to 161 of 180 countries. In March, Indian National Congress leader Rahul Gandhi was expelled from Parliament after his conviction on spurious defamation charges, a conviction later suspended by the Supreme Court. Gandhi’s expulsion galvanized the fractured opposition into a new alliance. But this alliance failed to hold in November’s state elections, a reminder of the obstacles to forging a united front against Modi in 2024. Congress did beat a regional party to take power in the southern state of Telangana and had earlier defeated the BJP to recapture neighboring Karnataka, but the party lost power in three northern Hindi-speaking states, arguably because of its refusal to share seats with its putative allies. The odds strongly favor Modi’s reelection to a third consecutive five-year term, which no one since the first prime minister, Jawaharlal Nehru, has achieved. But it is not a foregone conclusion. In India’s fractured party landscape, elections are won and lost as much by party alliances as by shifts in popular sentiment. Popular sentiment is more closely tied to food prices and other domestic issues than international triumphs. And hubris could yet lead the Modi government to commit a fatal error. But unless Modi flies too close to the sun, it is difficult to see him falling in 2024.
Arun Swamy is Professor of Political Science at the University of Guam.
on the atmosphere which can lead to more frequent and intensive heatwaves, droughts, changes in weather patterns, and melting ice caps or glaciers that can raise sea levels, causing disasters, coastal flooding, erosion, and as a result, the ocean gets warmer. Additionally, global warming can affect food security by affecting crop yields and the availability of fresh resources. This can have negative impacts on ecosystems and human communities. Mostly, these evident choices have made the human lifestyle less sophisticated. Furthermore, the last few decades have been calamitous in terms of climate change and nature loss. Many agencies, agreements, and treaties have been made to control global warming, and nations support it, but these measures can’t be enough to reduce the temperature of the Earth. The United Nations (UN) has served as a source for coordinating various actions for global welfare and has provided mechanisms for socio-economic development since its creation almost 81 years ago. But unfortunately, those who have not contributed to eliminating the global warming rate can’t even throw a glance at such humanitarian crises. While the environment is a global priority, and more action is demanded for maintaining its maximum probability to be at ease. It is quite challenging to control global warming; however, it is not unmanageable. Reducing the use of conventional vehicles and going for alternatives like electric and solar-powered vehicles is crucial. It’s crucial for us to take action by reducing the carbon footprint, promoting renewable energy, and advocating for sustainable practices. There is a saying by a legendary personality that states that “when it comes to global warming, everybody wants to change the world, change themselves for the world.” We must not apply this quotation; rather, we all should prove it wrong by marking consistent efforts to control it. If we make a small change now in the way we live, we can avoid huge changes in the future. Collective efforts by governments, individuals, and scientists across the world are needed because the value of working together for peace and development is greater than ever. The government should also be focusing on this crisis by implementing new policies for its eradication at the international level.
The case for capping wealth at $10 million The writer is a freelance columnist
The superrich at Davos do not deserve their hoards, and the rest of the world desperately needs those resources
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NATION, US
INGRID ROBEYNS
HE annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, began on January 15. As has become a yearly ritual, the global business and political elite have gathered to discuss how public-private partnerships can tackle what the WEF sees as the world’s most urgent problems: geopolitical instability, wars, and the consequences of AI. Yet one issue on which the WEF has been largely silent is the extreme and growing wealth inequality. Well-meaning businesspeople do sometimes care about inequality, but they mostly understand it as a problem of poverty—not of wealth concentration. Unsurprisingly, since so many of them of are billionaires, Davos participants tend to avoid the moral and political questions raised by extreme wealth concentration. But critics of this system, even wealthy ones, are getting louder. On January 15, Oxfam released its annual report on global wealth inequality, with the revealing title “Inequality Inc.: How Corporate Power Divides Our World and the Need for a New Era of Public Action.” And multimillionaires Stefanie Bremer and Marlene Engelhorn are in Davos to protest and deliver a letter signed by 250 millionaires in which they demand that governments tax the richest much more than they currently do. When they argue for taxing the rich, both Oxfam and the activist millionaires typically refer to the dangers of societal instability and the harmful effects of rising inequalities. As the millionaires argue in their letter, the current economic system with its unfair tax system “has given us stagnating wages, crumbling infrastructure, failing public services, and destabilizing the very institution of democracy.” They are right, of course. But we should oppose the concentration of wealth on even more grounds than the ones Oxfam and the activist millionaires raise in their reports. As I argue in Limitarianism: The Case Against Extreme Wealth, there should be an upper limit to how much personal wealth any individual can have. And that limit does not lie at a billion: Instead, we should look more in the range of $10 million as a hard cap on personal wealth. And we should encourage everyone to voluntarily not keep more than they need for a decent lives— and in countries with a proper safety net, that implies not keeping more than $1 million in wealth.
Oxfam and the activist millionaires rightly sense that at some point having more money doesn’t add to a person’s quality of life and that we need to have that money invested in infrastructure and public services. They are also right about the negative effects of excess wealth on democracy. The superrich have a disproportionate influence on political parties and in Congress, given that they have the resources for campaign funding, as well as for lobbying. This has led to changes in economic policies that have increased the economic power of their corporations and allowed them to get away with paying fewer taxes. They have also bought up media—newspapers, television, Twitter—and in that way have shaped public, even if these media spread misinformation and undermine democracy. Further, we see very many fortunes built on the exploitation of vulnerable people—often people of color and often in faraway countries, which presumably makes it easier for the shareholders who get rich to look away. We can atone for some past abuses by compensating people whose ancestors were enslaved. (This would have the added benefit of reducing some large fortunes and shrink the racial wealth gap.) Capping wealth would make it pointless to try to endlessly increase profits at the expense of the lives of the most vulnerable people, as is currently the case. But the immediate point is that much of the money on which billionaires are sitting is stained with the blood of the poor, and therefore they should not keep it. Another reason we should limit personal wealth is that wealth concentration accelerates ecological destruction. Very wealthy people are disproportionally responsible for climate change, both because of their luxurious lifestyles and their investments in the fossil industries. While the annual emissions per person for the poorest 50 percent of the world population are less than one and a half tons of CO2 per year, the top 1 percent emits on average 101 tons per person and billionaires’ luxurious lifestyles can cause carbon footprints of several thousand tons. The truth about climate injustice is, however, an uncomfortable one for a much larger group of people than the 1 percent. A recent study from the Stockholm Environmental Institute commissioned by Oxfam showed that the 1 percent are responsible for 16 percent of all emissions, yet the next 9 percent are also responsible for a disproportionate share—some 34 percent of all emissions. Yet, while the lesson to draw from this is that we need a new economic system as well as a shift in personal lifestyle choices to bring emissions down, there is an important difference between the 1 percent and the next 9 percent—and that is that the 1 percent are sitting on the fortunes that can address the climate crisis. Rather than letting the ultra-rich accumulate their wealth further in polluting
industries, there should be a global push to take all the surplus money that the richest do not need for their own quality of life and use it to save the lives of billions of people who will suffer from a climate breakdown that they did not cause. Since there are no signs that they are volunteering to do so, governments must force them. These arguments have typically been used to argue for increased taxation on the superrich. But raising taxes will not be enough, since once they have acquired fortunes, most superrich will do what they can to avoid paying taxes. We must also transform the economic system (including the fiscal system) to make it impossible for anyone to become too rich. Excessive wealth and the extreme inequality that comes with it harm people and harm the planet. Moreover, the very wealthy have something to gain with capping wealth too, since the endless quest for money corrodes the soul. There is one reason we should limit inequality that is independent of its harmful consequences: Extreme wealth is undeserved. For anyone who grew up in the neoliberal era in which meritocracy is the ideal, this argument might be the most difficult to grasp, given that it requires a change of perspective on human nature and society. Indeed, some of the activist millionaires who advocate higher taxation still cherish meritocracy. But let me be clear: No one deserves to be a multimillionaire. Some limited inequalities in income and wealth can be justified: those based on the amount of time one devotes to work, the burdens of the work, and if one makes exceptional efforts or takes exceptional risks. Or as an incentives-payment in case society needs more people to choose to do certain kind of work. But none of these factors justify the inequalities that we are witnessing today. There are two factors that most influence our ability for economic success. The first factor is luck. Our parents and family, our health, impairments and talents, the people who raised and educated us: all factors that to a very large extent are beyond our control. One important source of economic wealth is completely undeserved: inheritance, as well as gifts that parents make to educational institutions and start-ups. Even the structures of markets are such that luck plays a very large role in deciding who becomes a CEO, the billionaire pop star, or makes the product that beats the competition. The second factor is the structures that previous generations have built and that allow us to economically flourish. Our economic success stands on the shoulders of investments made by previous generations and innovations initiated by governments or non-profit-seeking scientists. The superrich who worked hard can say they deserve a decent amount of money, but they cannot claim that they deserve the fortunes they currently have.
06 NEWS
XI CALLS FOR STRENGTHENING PATRIOTIC UNITED FORCES AS SECURITY AUTHORITY WARNS SECESSIONISTS
T
TAIWAN
AgeNcies
HE united front work should strengthen the patriotic united forces in Taiwan, and oppose the separatist acts of “Taiwan independence” forces, Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, said in an article published in the flagship magazine of the CPC Central Committee on Tuesday. Also on Tuesday, the Ministry of State Security (MSS) warned in a WeChat article that the Anti-Secession Law is “a sharp sword hanging over the heads of Taiwan secessionists,” stating that the sword is only targeting secessionists instead of Taiwan compatriots, in order to safeguard China’s sovereignty and territorial integrity. Chinese mainland experts believe that the two articles highlighted the mainland’s differentiated treatment of the Taiwan com-
Thursday, 18 January, 2024 | ISLAMABAD
patriots and the Taiwan secessionists: to encourage the patriotic united forces and to contain “Taiwan independence” forces. In the future, the mainland will be more precise and targeted in combating secessionists and will not give up any prospect of reunification in a peaceful way. The article by Xi, also Chinese president and chairman of the Central Military Commission, was published in this year’s second issue of the Qiushi Journal. The article stressed the importance of improving the Party’s united front work in the new era, and provided a set of new concepts, ideas and strategies to enhance and improve the united front work from 12 aspects. United front work in Hong Kong, Macao, and Taiwan region and among overseas Chinese should be improved to rally support, Xi said in the article. United front work should implement the Party’s overall strategy for resolving the Taiwan question in the new era, develop and
strengthen the patriotic united forces in Taiwan, oppose the separatist acts of “Taiwan independence” forces, and promote the complete reunification of the motherland, Xi noted. According to Zheng Jian, a professor of Taiwan Research Institute of Xiamen University, “consolidating and developing the broadest patriotic united front” was clearly put forward in the report of the 18th National Congress of the CPC in 2012, with multiple supporting policies and measures launched afterwards. Rallying support from Taiwan people, which the mainland has been consistent on in its policies, will not be halted despite that the Democratic Progressive Party’s (DPP) Lai Ching-te won the regional leadership election, Zheng said, noting that the mainland will still promote the construction of the demonstration zone for cross-Straits integration and development in Fujian Province. Remarks from Xi show that the mainland seeks to differentiate DPP authorities and secessionist groups from Taiwan com-
patriots, Wang Yingjin, director of the Center for Cross-Straits Relations Studies at the Renmin University of China, told the Global Times on Tuesday. The mainland will resolutely suppress and contain the “Taiwan independence” secessionist forces, but for the Taiwan people and groups from different sectors who support the 1992 Consensus, the mainland still welcomes cross-Straits interaction and integrated development, Wang said. The mainland has not given up on continuing to push for peaceful reunification, Wang said, adding that the mainland will think more about how to strike at “Taiwan independence” secessionist forces in a targeted manner without hurting the Taiwan people and win over their hearts and minds. On the other hand, the article released by MS involves more warnings, as Lai, the diehard secessionist, did not show any kindness to the mainland even in his post-election speech.
The article introduced the Anti-Secession Law adopted in March 2005, after DPP’s Chen Shui-bian was re-elected to a second term as Taiwan regional leader in 2004. The article compared the law to “a sword hanging over the heads of the Taiwan secessionists,” to deter their acts of splitting the country, and to maintain peace and stability across the Taiwan Straits, rather than against the ordinary people in Taiwan. The article stressed three circumstances stipulated in the law that allow the state to employ non-peaceful means and other necessary measures to protect China’s sovereignty and territorial integrity, including the event that the “Taiwan independence” secessionist forces should act under any name or by any means to cause the fact of Taiwan’s secession from China, or that major incidents entailing Taiwan’s secession from China should occur, or that possibilities for a peaceful reunification should be completely exhausted.
Red Sea crisis sparks trade disruption, impacting key Pakistani industries, report PROFIT
News Desk
Recent developments in the Middle East, particularly the Yemeni Houthi attacks targeting commercial vessels, are causing significant disruptions in global trade. The conflict has forced shipping companies to adopt longer routes to avoid the Red Sea, leading to a surge in freight charges and impacting various sectors. The Intermarket Securities Limited (IMS) in its recent research report stated that the ongoing situation poses varying implications for different sectors in Pakistan. The Pakistani oil and gas sector, particularly companies like POL and OGDC, could benefit from rising international oil prices. Their revenues are directly linked to the international oil price basket, making them poised to benefit from any price increases. The disruption could adversely affect Pakistan’s fertiliser sector, especially for imported fertilisers like DAP. Companies such as FFBL, which rely on imports via the Red Sea route, face potential supply chain challenges which may lead to higher DAP prices in local market. Chemical sector will also be hit and key commodities in this sector, including ethylene, propylene, and polymers, are likely to see price increases, affecting the
Service Industries to invest Rs1.5b in its subsidiary PROFIT
News Desk
Service Industries Limited on Wednesday announced authorisation to make a long-term equity investment of Rs 1.5 billion in Service Long March Tyres Limited, an associated/subsidiary company. According to a notice sent to the Pakistan Stock Exchange (PSX), shareholders of Service Industries conducted an extraordinary general meeting on January 17, 2024, and approved long-term equity investment in its subsidiary. Service Long March Tyres commenced its operations in March 2022. Therefore, Service Industries’ authorisation of Rs 1.5 billion for equity investment in its subsidiary must be based on some strong ground footing. Service Industries reported a profit of Rs 1.12 billion in the first nine months of FY2023 from Service Long March compared to a Rs 513 million loss in the same period last year.
margins of companies like EPCL and LOTCHEM. Higher freight charges and increasing feedstock prices could also impact gross margins. The textile industry risks delays in fulfilling orders due to higher lead times and freight charges. Companies like ILP, NML, and GATM may face increased distribution costs and the need for higher short-term borrowings to maintain inventory levels. The cement industry could face challenges in export viability and increased costs for imported coal. South-based companies like LUCK, DGKC, and ACPL, which rely more on imported coal, might experience adverse effects. Potential delays in scrap imports could result in increased steel scrap prices, raising working capital needs and prompting higher shortterm borrowings for steel companies.
The report noted that while some sectors like E&P may see positive effects, others like the fertiliser, chemical, textile, cement, and steel sectors could face significant challenges due to the ongoing Red Sea crisis. Approximately 21,000 vessels annually passing through the Red Sea and Suez Canal, carrying commodities such as crude
oil, LNG, chemicals, and coal, the recent attacks have led to an estimated 40-50% of ships diverting from this critical route. This shift in maritime traffic is raising concerns over a potential commodity super-cycle, driven by increased freight charges due to rerouting and possible shortages leading to higher global commodity prices.
Thursday, 18 January, 2024 | ISLAMABAD
SAPM, QATAR’S MINISTER PLEDGE TO SUPPORT LAWFUL MOVEMENT OF PAKISTANI WORKERS
NEWS
CORPORATE CORNER
DOHA
staff report
HBL, Visa announce winners of first edition, she's next program in Pakistan KARACHI
Special Assistant to the Prime Minister (SAPM) on Overseas Pakistani and Human Resource Development, Mr. Jawad Sohrab Malik, commenced his inaugural official visit to Qatar with a pivotal meeting with Dr. Ali bin Samikh Al Marri, the Minister of Labour in Qatar. During the meeting, SAPM, Jawad Sohrab Malik provided an overview of Government of Pakistan's ongoing efforts and initiatives aimed at enhancing labor skills to align with and meet the demand and standards of the Qatari labor market. The discussion underscored the commitment of both leaders to encourage as well as enhance safe and legal migration of the Pakistani workforce to
Qatar. SAPM, Jawad Sohrab Malik and Qatar’s Labor Minister, Dr. Ali bin Samikh Al Marri pledged to foster a collaborative environment that supports the secure and lawful movement of Pakistani workers to contribute to Qatar's dynamic labor market. The leaders affirmed their commitment to ensuring the welfare and prosperity of the Pakistani workforce in Qatar. Both leaders also discussed opening of more Qatar Visa Centers (QVCs) in Pakistan for ease of Pakistani migrant workforce. As part of the official visit, SAPM Malik is scheduled to engage with Qatari conglomerates to explore and sign agreements aimed at providing and enhancing employment opportunities for the Pakistani workforce. These agreements are expected to contribute significantly to the mutual economic growth and cooperation between Pakistan and Qatar.
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Mr. Muhemmed Aejaz, Pakistan's Ambassador in Qatar and Community Welfare Attachés (CWAs) also accompanied SAPM in the meeting. The visit of the SAPM to Qatar intends to strengthen ties, enhance collaboration and create more opportunities for the Pakistani workforce in the State of Qatar.
staff report
Visa (NYSE: V), a world leader in digital payments, together with HBL, Pakistan’s leading Bank today, announced five winners of Pakistan’s inaugural edition of the She’s Next program, Visa’s global platform dedicated to supporting women in their efforts to fund, run and grow their small businesses. Winners included Ziana Sakhia, CEO & Cofounder of Bechlo, Sadaf Rehman, Cofounder of CodeSchool, Rida Zainab, Cofounder of Porter Pakistan, and Ayesha Awan, Cofounder of SocialBlu. The program also included a People’s Favorite award, where members of the public voted online for their favorite finalist, Hira Javaid, CEO of Foster Learning. Winners were chosen from a pool of almost 2,500 applicants from a range of sectors including textiles, education, food and beverage, professional services, beauty and wellness within Pakistan. The five winning woman-owned small businesses received a US$10,000 grant each, along with a tailored training program by Katalyst Labs, and access to the She’s Next Club where they will have access to multiple resources including a workshop library and a community of entrepreneurs for mentorship. A jury evaluated entries based on the progression of the applicant’s entrepreneurial journey, the robustness of their business metrics, their digital presence; and demonstrated ability to confidently solve problems. The members of the jury included: Carl Manlan, Visa’s Vice President for Social Impact in Central Europe, Middle East and Africa (CEMEA), Maya Inayat Ismail, Chief of Staff to the Chairman and Chairperson, Sustainability Forum – HBL, Aatif Awan, Founder and Managing Partner of Indus Valley Capital and Sheema Sultan, CEO of Core Gym.
Dr Amjad’s vision of ending global poverty through microfinance bags int'l acclaim ISLAMABAD
staff report
Dr. Amjad Saqib has emerged as a unique symbol of hope and innovation in the realm of combating global poverty. As a pioneering advocate for microfinance, Dr. Saqib and his friends have been at the forefront of a transformative movement that seeks to empower individuals, families, and communities by providing them with the financial tools they need to break the chains of poverty. Dr. Saqib has been recently appointed as the chairperson of the Benazir Income Support Programme (BISP), which is a 1.5 billion dollars annual federal unconditional and conditional cash transfer poverty reduction programme in Pakistan, the global praise was showered on Dr Saqib in an article published in the Independent UK, a British online newspaper. Microfinance, as championed by Dr. Saqib, is not merely a financial strategy but a powerful tool for social change. It involves providing small loans, which are free of interest or mark up, often to those who are seeking support in operational costs but lacking access to traditional banking services, allowing them to start or expand small businesses, invest in education, and improve their overall quality of life. The impact of microfinance is not limited to economic upliftment alone. It is a catalyst for positive change that reverberates through entire communities. Dr. Amjad elucidated," Philanthropy and microfinance are powerful tools in our battle against poverty.
UW in collaboration with POFs, organizes 3rd UW-POFs joint conference on CACIO ISLAMABAD
staff report
The conference aimed to bridge the gap between industry and academia by promoting research training, career development, and knowledge enhancement. Director General Production POF graced the opening ceremony as the Chief Guest. In his address, he highlighted the significance of Industry-Academia Linkages (IAL) and the crucial role that educational institutions can play in addressing the challenges faced by the industries in Pakistan. He stressed the importance of bright ideas from academic institutes in reducing the budget of significant industrial set-ups, which can lead to the country's overall prosperity. Prof. Dr. Jameel-Un Nabi, Vice Chancellor, University of Wah, also accentuated the significance and certainty of the industrial-academic bond as a prerequisite for harnessing mutual benefits. To contribute actively towards achieving the goal of active IAL, one MoU between UW and Wah Nobel Group of Companies was signed on this occasion. Dignitaries, esteemed individuals, and representatives from renowned industrial and academic sectors of Pakistan, such as Pakistan Ordnance Factories (POFs).
Capital Police’s ‘ICT 15’ App promptly assists urban residents in emergencies ISLAMABAD
staff report
In the past three months, over two thousand cases have been reported on the "ICT-15" app. Through the "ICT-15" app, citizens can inform the police about any unlawful activities, illegal resident foreigners in urban areas, and criminal elements. Additionally, citizens can obtain immediate assistance from the police by sending images, videos, or audio messages related to any incident or occurrence. According to the details, following the special directives of the Islamabad Capital City Police Officer (ICCPO), Dr. Akbar Nasir Khan, Islamabad Capital Police’s "ICT-15” application promptly assists urban residents in emergencies in the federal capital, a public relations officer said. He said that this app proves to be extremely helpful in providing immediate assistance to urban residents
during any emergency. In the past three months, 2,158 cases were recorded on the "ICT-15" app, with 43 cases related to the police, distributed as 23 in October, 15 in November, and 5 in December. Moreover, Islamabad Capital Police promptly resolved these cases, considering merit and transparency. Citizens can use this mobile app to report any unlawful activities, observe illegally residing foreigners, and identify criminal elements in the federal capital. Additionally, they can inform the police about any incident or occurrence through audio messages, videos, or images. The city police can also address citizens’ complaints related to the police through this app. The “ICT-15” app ensures that the police can reach the scene of assistance in minimal time upon receiving information. It has proven to be a valuable tool for urban assistance in the federal capital, allowing citizens to contribute to crime prevention.
IGI Life inks agreement with Mahaana Wealth to provide technology & i nvestment management for pension fund KARACHI
staff report
Mahaana Wealth, Pakistan's pioneering digital asset management company operating within the SECP regulatory sandbox, has sealed a partnership with IGI Life Insurance, a leading insurance provider with 29 years of local experience offering life, health, takaful and wealth management solutions, to collectively introduce a Pension Fund (Voluntary Pension Scheme). The collaboration aligns with IGI's previous announcement at the Pakistan Stock Exchange, where the board allowed the management to explore the possibility of jointly launching a Pension Fund and appointing Mahaana Wealth as the investment advisor and technology partner for the fund. To mark the occasion, the partnership between Mahaana Wealth and IGI Life was officially signed on 9th January 2024 at IGI Life's Head Office in Karachi. Both CEOs, Shamoon Tariq of Mahaana and Ali Nadim of IGI Life were present, along with other company representatives. Backed with a mission to provide a safety net for Pakistani’s post-retirement, the two companies aim to transform the retirement landscape in Pakistan.
Talking about how Mahaana plans to bring successful pension and saving models from developed nations into Pakistan based on digitization and hassle-free onboarding, Shamoon Tariq said, “Pakistanis deserve a dignified retirement, free from financial anxieties like inflation biting into their traditional saving accounts. The current system is simply not cutting it. With IGI Investments as our investor and strategic partner, we’re committed to democratizing financial security, ensuring everyone has the chance to retire with peace of mind.” Emphasizing the importance of pension plans in a country experiencing increasing life expectancy, Ali Nadim, CEO of IGI Life said, “Our collaboration with Mahaana is not just a business venture but a collective step to bridge the gap in the current retirement system. Mahaana's expertise, led by globally experienced in-
vestment advisors who have successfully navigated emerging markets like Pakistan, makes them the ideal partner to launch our VPS Fund.” About Mahaana: Mahaana is Pakistan's first digital-only Asset Management Company licensed as an AMC and Investment Advisor by the Securities and Exchange Commission of Pakistan (SECP). The company emerged as a fintech startup in 2022, and is the brainchild of two team members from the globally renowned Tundra Fonder, known for their successful track record in driving innovation within emerging markets. Mahaana raised $2.1 million following a pre-seed funding round led by Swedish investment firm Vo s t o k Emerging Finance (VEF), Hong Kong based SparkLabs group, Y Combinator (United States), and IGI Investments (A Packages
Alternative Dispute Resolution essential to alleviate strain on judiciary: Mushaal ISLAMABAD
OGDCL to send Christian and Hindu employees to sacred religious places ISLAMABAD
staff report
In a display of commitment to diversity and inclusion, the Oil and Gas Development Company Limited (OGDCL) on Wednesday organized a draw to select members from the Christian and Hindu communities for special visits to their respective sacred religious places. The draw was conducted here at OGDCL Head Office Islamabad in the presence of OGDCL CBA leaders, members from both communities and OGDCL Senior Management. Seven deserving members from the Christian community were selected for a trip to the Vatican City, with an additional five persons placed on the waiting list.
RIU leads national symposium, igniting dialogue on revolutionary healthcare research KARACHI
staff report
Riphah International University (RIU), in collaboration with the Health Research Advisory Board (HealthRAB), proudly organized the National Symposium on Health System Research. The event was hosted by the esteemed National Institute of Health (NIH) in partnership with the Health Services Academy (HSA) on Tuesday 16 January 2024. The National Symposium on Health System Research provided an esteemed platform for researchers, healthcare professionals, policymakers, and academicians to exchange insights, present cutting-edge research findings, and explore innovative approaches within the realm of health system research. The symposium facilitated discussions on critical issues impacting the healthcare sector, fostered collaboration, and advocated for evidence-based strategies to enhance the overall health system. The program commenced with the recitation of the Quran. Subsequently, distinguished speakers addressed the audience, including Dr. Nighat Murad (NIH), Dr. Abdul Basit (HealthRAB), Mr. Hassan Muhammad Khan (Chancellor Riphah), Dr. Naveed Asghar (WHO), and Maj. Gen (R) Prof. Dr. Amir Ikram (Ex ED NIH).
staff report
Special Assistant to Prime Minister for Human Rights and Women Empowerment, Mushaal Hussein Mullick, has said that Alternative Disputes Resolution (ADR) is gaining considerable recognition in Pakistan due to its potential to alleviate the burden on the overburdened court system. She was addressing a Workshop organized by Legal Aid and Justice Authority (LAJA), Ministry of Human Rights. The Workshop was aimed at capacity building and imparting training to ADR practitioners in ADR methods such as mediation, arbitration, and negotiation. The workshop was addressed by distinguished panel consisting of Senior Judge Federal Sharia Court Justice Syed Muhammad Anwar, DG National Police Bureau Ehsan Sadiq, DG. LAJA Dr. Rahim Awan, DG HR Ministry of Human Rights Abdul Sattar, and Executive Director PCHR Choudhary Shafique. The workshop was attended by a large number of aspiring ADR practitioners. In her address to the Workshop, Special Assistant to Prime Minister said that the Government, legal community, and various institutions had been taking initiatives to promote ADR and integrate it into the legal framework. She further said that ADR had many advantages to benefit from including; efficiency, cost effectiveness, Confidentiality, and Flexibility.
Mushaal underscored the transformative potential of Alternative Dispute Resolution (ADR) in alleviating the strain on the judicial system. She emphasized that the core objective of ADR was to complement traditional courts and mitigate the backlog of cases. She pointed out that there were 750 cases per judge in Pakistan rendering the conventional court trial process resource intensive and time consuming. Special Assistant to Prime Minister said that one of the key functions of LAJA were to provide legal aid/assistance to poor and vulnerable groups, particularly women and children and enhance public awareness of legal aid and laws in Pakistan. She further said that ADR if institutionalized would prove to be a valuable tool in empowering women, girls and marginalized communities because of its quick dispensation of justice.
Digital Healthcare solutions: EFU health and Sehat Kahani's collaboration KARACHI
staff report
Sehat Kahani, Pakistan's leading digital healthcare platform, is forging a strategic alliance with EFU Health Insurance Ltd – Pakistan’s First Specialized Health Insurer, to extend online healthcare services to EFU Health’s covered members. This collaboration heralds a breakthrough for EFU Health enabling policyholders to connect with 24/7 available general physicians within 60 seconds. Additionally, policyholders can easily schedule online appointments with preferred specialists for personalized and specialized care.
Raqami selects Euronet Pakistan partner to launch first Islamic Bank KARACHI
staff report
Raqami Islamic Digital Bank and Euronet Pakistan Pvt. Ltd. entered into an exclusive agreement to promote digital payments in the country. In January 2023 Raqami Islamic Digital Bank (RIDB) obtained a no objection certificate (“NOC”) from the State Bank of Pakistan (SBP) to establish an Islamic digital retail bank in the country. In September 2023 SBP awarded in-Principal Approval (IPA) to
Raqami and four other aspirants for the digital bank license. Under the IPA, RIDB is in the process of developing its operational readiness for pilot, followed by commercial launch as a digital retail bank. Euronet Pakistan is a division of Euronet Worldwide, a NASDAQ listed company (EEFT) and an industry leader in processing secure electronic financial transactions. Euronet Pakistan brings with it the experience of the world’s largest global provider dedicated to banking and payments technologies. Euronet
Pakistan will be providing RIDB services such as Payment Switch, Card Management Solution, Credit Cards, ATM Controller, POS/E-Commerce Acquiring, Fraud Management Solution and Card Tokenization. Procuring a payment system by a bank is a strategic process aimed at selecting and implementing a technology platform that facilitates a range of payment services for the bank's customers, covering a wide range of financial transactions, including fund transfers, bill pay-
ments, card processing, acquiring and more. With the objective to have a robust, integrated, scalable and cloud-ready middleware platform Raqami will leverage Euronet’s system for integration between payment systems, core banking system, non-core applications, and digital channels. The move aims to build operational efficiency, reduced costs, improved service availability, and ensure a seamless digital banking experience for Raqami’s customers.
IMRAN SUGGESTS PUTTING NAWAZ’S NAME ON ECL UNTIL ELECTIONS
Thursday, 18 January, 2024
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ORMER prime minister and founder of Pakistan Tehreek-e-Insaf (PTI), Imran Khan, has suggested that the name of PML-N supremo Nawaz Sharif should be placed on the Exit Control List (ECL) until the election, expressing concern that if Sharif loses, he might attempt to flee to London once again. Addressing the media at Adiala Jail on Wednesday, he said that the scenes on February 8, the election day, will be shocking for his opponents. Regarding his covert ‘Plan C,’ he mentioned its confidentiality before the elections to prevent interference by ex-
ternal forces. Khan referred to the Holy Quran once again, highlighting the consequences for societies that deviate from the principles of good and evil. He noted that the Quran mentions hypocrites aligning with evil and opposing good, emphasizing that a just society is essential for development. Khan commented on the ongoing “software updates” by authorities, stating that individuals are being picked up, and it is later revealed that their “software has been updated”. He cited the case of PTI’s leadership facing challenges, including the theft of their electoral symbol ‘bat’ and the allocation of undesirable symbols to PTI candidates. The PTI founder questioned the focus on
PTI members’ arrests related to the May 9 riots, urging authorities to inquire about alleged misconduct by figures like Maryam Nawaz and Asif Ali Zardari. Khan stressed the need for the Supreme Court to investigate human rights violations, particularly the registration of FIRs against PTI candidates during election campaigns. Turning attention to foreign affairs, Khan lamented the damaged relations with Afghanistan and criticised the lack of focus on foreign policy. Imran Khan recalled his arrest while undergoing biometrics in a wheelchair, contrasting it with Nawaz Sharif’s biometric verification at the airport. He emphasized that Pakistan’s progress relies on political
stability and urged the nation to decide between being a slave or a free nation. Khan expressed his determination to fight for freedom, rejecting the idea of accepting slavery. He accused political rivals
Pakistan seeks extension for completion of WB-funded NTM-I project g
Request follows delays encountered in essential procurement and land compensation activities PROFIT
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The Government of Pakistan has officially requested an extension to complete the National Transmission Modernization-I (NTM-I) project, valued at $425 million, financed by the World Bank. This request comes in the wake of delays experienced in procurement and land compensation activities critical to the project’s progression. This proposed restructuring represents the second such adjustment for the NTM-I project. The initial restructuring occurred in October 2023, introducing a new withdrawal category in the Financing Agreement. This change facilitated the capitalization of both Commitment Charges (CC) and Interest During Con-
struction (IDC). According to the World Bank’s official documents, Pakistan’s government has sought a 35-month extension. This period aims to cover all ongoing contracts and the Islamabad West Substation (IWS) works, which have a 30month completion timeline. The World Bank management has consented to process this extension in two phases, starting with an initial 15-month period. The restructuring includes a proposal to extend the closing date of the International Bank for Reconstruction and Development (IBRD) loan to April 30, 2025. This extension is intended to allow the finalization of current contracts. A subsequent extension will be considered, dependent on the progress of the IWS package and the completion of land compensation payments.
Torkham border closure enters fourth day, disrupting bilateral trade g
Shutdown has significantly impacted perishable items, leading several transporters to choose to head back to Peshawar
Govt plans to reduce industrial power tariff to boost economy g
Last year, as a requirement stipulated by IMF, industrial power tariff was increased from 9 cents to around 12.5 cents per unit PROFIT
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The NTM-I project, approved in December 2017, focuses on three main components: the expansion and upgrade of Pakistan’s transmission network (Component A), the implementation of an Enterprise Resource Planning System (ERP) for the National Transmission & Despatch Company (NTDC) (Component B), and providing technical assistance for strengthening NTDC’s operational and maintenance capabilities (Component C). To date, only $79 million of the total $425 million loan has been disbursed. The project’s development objective is currently rated as “moderately satisfactory”, while its implementation progress is deemed “moderately unsatisfactory” due to procurement and land compensation delays. However, safeguard and fiduciary
ratings are assessed as “moderately satisfactory”. Recent months have seen improved implementation progress, particularly with the Islamabad West Substation package, which is the largest under the project and is close to being awarded. Disbursements from the project have also shown improvement. In terms of the project components, the NTDC is close to issuing an award notification for the IWS package under Component A. While land compensation payments for IWS were progressing, there has been a recent slowdown, with 77 percent of the Resettlement Action Plan (RAP) payments completed. Other contracts under Component A are progressing well. For Component B, the ERP program’s implementation is advancing satisfactorily, especially regarding the data center. Lastly, under Component C, a comprehensive system study on NTDC’s power system is in its final stages, and a detailed capacity building plan is under review by the bank.
The Torkham border, a vital trade route between Pakistan and Afghanistan, has been closed for four days, disrupting trading activities and causing concern among local traders. As per reports, the closure has particularly affected perishable goods, with some transporters opting to return to Peshawar to prevent their cargo from spoiling. A delegation of local traders and members of the Sarhad Chamber of Commerce and Industries met with Caretaker Chief Minister Khyber Pakhtunkhwa Justice (R) Arshad Hussain. They discussed the economic impact of the visa policy and the risk of losing the Afghan market for Pakistani exports. The delegation proposed a twomonth deferment of the new policy to allow Afghan transporters to obtain necessary travel documents. However, the caretaker chief minister expressed his inability to alter the visa policy, noting that it falls under federal jurisdiction. He promised to convey the concerns of traders to the federal government. Meanwhile, senior customs and security officials also held a meeting to discuss the situation. They reiterated the global norm of requiring legal travel documents, stating that Pakistan and Afghanistan are no exception. They noted that Afghan authorities had been informed about the visa policy but had not taken steps to comply with international border crossing regulations. The situation remains tense, with the potential permanent closure of these key border crossings looming, which could have farreaching effects on bilateral trade and economic relations between the two countries.
In a strategic move to rejuvenate the economy, the Power Division has finalised a proposal to lower electricity tariffs for the industrial sector. This decision comes ahead of the upcoming final review with the International Monetary Fund (IMF) for the $3 billion Stand-By Arrangement scheduled next month. During a session with the Senate Standing Committee on Power, Asad Rehman Gilani, Secretary-InCharge Power Division, confirmed that the plan aims to cut the industrial tariff from 14 cents per unit to 9 cents. He emphasized the importance of this reduction in fostering industrial growth, creating employment opportunities, and tackling the issue of circular debt in the power sector. The committee, chaired by PMLN Senator Azam Nazeer Tarar, also addressed the escalating circular debt in the power sector, which has surpassed Rs2.7 trillion. It requested a comprehensive briefing from the Secretary of Finance in the next meeting, which will be arranged in coordination with the Ministry of Finance. The industrial power tariff had
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in the PDM alliance of seeking a National Reconciliation Ordinance (NRO) deal with powerful circles and clarified his stance against forming alliances with those who have accepted NROs.
PML-N, PPP engaged in friendly wrestling to attain masses’ attention: Siraj LAHORE
Staff RepoRt
Ameer Jamaat-e-Islami (JI), Sirajul Haq has said that Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) are engaged in friendly wrestling to attain the attention of the masses, emphasizing that they are essentially two sides of the same coin. While addressing election rally in Fort Abbas on Wednesday, he said that both former ruling parties are attempting to stage a drama of the 90s, creating an artificial rift solely to garner votes. However, Sirajul Haq said that the people were well-informed and have grown weary of dynastic rule. Referring to the ruling parties as dynasties, he expressed the belief that the public would not accept their imposition on the country by institutions. Accusing the former ruling parties of maintaining the status quo, he claimed that they denied the people their basic rights. He argued that if the nation’s 35 years were marred by army dictators, the remaining period was squandered by so-called democratic parties. He urged the people to use the power of their vote to break free from the status quo parties, appealing to the masses to vote for the JI on February 8. “I believe the politics of dynasties would no longer thrive in the country.” The JI chief said those who remained in power during past five years failed to deliver. He pointed out that these parties distributed tickets among relatives, sidelining party workers. He called on those seeking the position of prime minister for the fourth time to present their past performance. He questioned the PPP’s claims to change the destiny of the people, urging them to account for their actions during their 15-year rule over Sindh. The PML-N, he said, had been in power since 1985 yet it longed for more. Siraj said, “The country has abundant resources. Bad governance and corruption are main issues which could be addressed if the people would elect the honest and dedicated leadership in the election.” The JI chief said tested parties utilized state resources for personal gain, depriving the masses of essential services.
ECP to release final list of candidates after resolution of court cases ISLAMABAD
Staff RepoRt
previously been raised from nine cents to approximately 12.5 cents per unit last year as part of the requirements set by the IMF. Additionally, the committee has ordered a new investigation into allegations of misconduct and irregularities in the awarding of contracts for major foreign-funded projects, notably those sponsored by the World Bank and the Asian Development Bank. The Power Division has been instructed to establish an internal
inquiry committee, led by the Secretary Power Division, to scrutinize pending projects, including the construction of a 765kV double circuit transmission line from Dasu Hydro Power Station to Islamabad and the ADB-funded ACSR Bunting Conductor LoT-II A project. Senator Tarar advised a thorough review of previous reports and the tendering process for these projects, with a comprehensive report due to the Senate panel within three weeks.
With polls merely three weeks away, the Election Commission of Pakistan (ECP) has yet to issue the final list of candidates for the February 8 general elections. On Dec 15, the electoral watchdog issued the poll schedule, detailing the step-by-step procedures leading up to the poll day along with their dates. As per the schedule, the ECP was to issue its final allocation of electoral symbols to candidates on Jan 13. However, four days after the passage of the due date for the issuance of symbols, the commission has yet to issue the final list of candidates. As per sources, ECP spokesperson Syed Nadeem Haider said that cases pertaining to the allocation of electoral symbols were currently being heard in court, leading to a delay in issuance of the final lists. He said that the ECP would release the list as soon as the pending court cases were resolved. The electoral watchdog had on Tuesday warned that the polls might have to be delayed if orders keep coming for changing the election symbols already allocated to candidates. Without naming any specific court, the ECP had pointed out that election symbols were being changed through various forums. Following the allotment of election symbols, the ECP said it had already ordered the printing of ballot papers to the three printing corporations and the printing work had started a day before. “If the process of changing the election symbols continues in the same way, there is a fear of election delay, because the ballot papers will have to be reprinted for which time is already limited and on the other hand, the special paper available for the ballot papers will also be lost,” it had reasoned.
Pakistan plans buying Chinese FC-31 stealth fighter jets to bolster PAF’s capabilities ISLAMABAD
MoNitoRiNg RepoRt
Pakistan recently announced a plan to procure FC-31 stealth fighter jets from China to enhance the Pakistan Air Force’s capabilities, a move experts said will open up the international market for the Chinese aircraft, according to a Global Times report on Wednesday. According to the report, the Pakistan Air Force introduced its transformative modernization initiative in a press release posted on its social media platforms on Tuesday. A key milestone in this strategic transformation has been the acquisition of fifthgeneration stealth fighter jets, the foundation of whose induction into the Pakistan Air Force has already been laid, the Pakistan Air
Force said. According to a video attached with the press release, the fifth-generation stealth fighter jet to be inducted is China’s FC-31. This confirmed media reports earlier this month that Pakistan is seeking to purchase the FC-31. Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu said at an induction ceremony for new equipment on January 2 that the FC-31 would enter service in the near future, US media outlet Defense News reported. Independently developed by the stateowned Aviation Industry Corporation of China (AVIC), the FC-31 is a single-seat, twin-engine, medium stealth fighter jet that analysts said is comparable with, if not superior to, the US’ F-35. The FC-31 has strong comprehensive air
combat capabilities, including its stealth advantages that allow it to spot opponents first and launch surprises attacks, Wei Dongxu, a Beijing-based military expert, told the Global Times on Wednesday. The aircraft has outstanding situational awareness and can carry a wide selection of munitions, including not only air-to-air missiles, but also precision bombs as well as airto-ground and air-to-surface missiles, Wei said. The Pakistan Air Force has long been using weapons and equipment procured from China, including J-10C medium fighter jets, JF-17 light fighter jets, HQ-9BE longrange surface-to-air missile systems, HQ16FE mid-to-long-range surface-to-air missile systems and the YLC-8E anti-stealth 3D surveillance radar systems, according to the video it published.
Pakistan will have no difficulties integrating the FC-31 into its combat systems, and the stealth aircraft will in return significantly enhance its military capabilities by a generation, experts said.
Published by Asad Nizami at Plot # 7, Al-Baber Centre, F/8 Markaz, Islamabad, for PT Print (Pvt) Limited. Ph: 051-2204545. Email: newsroom@pakistantoday.com.pk
The FC-31 will allow the Pakistan Air Force to enjoy a generational gap over its rivals with fast delivery, while Pakistan’s main rival will not likely get stealth fighter jets anytime soon, Wei said.