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PAKISTAN, IRAN CAN ADDRESS ‘MINOR IRRITANTS’ THROUGH DIALOGUE, DIPLOMACY: NSC

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Saturday, 20 January, 2024 I 8 Rajab, 1445

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FORUM URGES UTILISATION OF EXISTING COMMUNICATION CHANNELS TO ADDRESS MUTUAL SECURITY CONCERNS

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ISLAMABAD STAFF REPORT

HE National Security Committee (NSC) meeting on Friday concluded that, in accordance with universal principles governing good neighbourly relations, Pakistan and Iran can address minor irritants through dialogue and diplomacy, further strengthening their historic ties.

The tensions escalated earlier in the week when Iran launched a missile strike against what it termed as militant Jaish Al Adle headquarter in Balochistan’s Pangur district bordering Iran. In a retaliatory move, Pakistan conducted air strikes against separatist militants inside Iranian territory, marking the first such incident since the Iran-Iraq war of 1980-88.

Earlier in the day, Caretaker Foreign Minister Jalil Abbas Jilani engaged in a crucial diplomatic conversation with his Iranian counterpart, Hossein Amir Abdollahian, marking a significant turning point in the recent escala-

tion of tensions between Pakistan and Iran.

According to a short statement issued by the foreign office, Jilani expressed Pakistan’s commitment to fostering collaboration with Iran, emphasising the importance of mutual trust and cooperation, particularly in the realm of security.

The NSC meeting, chaired by Caretaker Prime Minister Anwaarul Haq Kakar, focused on national security matters, as per a statement issued by the Prime Minister’s Office.

The forum conducted a comprehensive review of the situation and commended the armed forces of Pakistan for their professional, calibrated, and proportionate response to the unprovoked and unlawful violation of Pakistan’s sovereignty.

Participants in the meeting received briefings on political and diplomatic developments affecting the ongoing situation between Pakistan and Iran, discussing their impact on regional security. The forum also evaluated ‘Operation Marg Bar Sarmachar,’ successfully executed against Baloch terrorists of Pakistani origin residing in un-

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Rs 15.00 | Vol XIV No 202 I 8 Pages I Lahore Edition

PM TERMS RESTORING MUTUAL TIES TO PRE-JAN 16, 2024 STATE IN INTEREST OF BOTH NATIONS

governed spaces inside Iran.

An update on the border situation and the comprehensive preparations made to respond to any further violation of national sovereignty were also discussed.

The NSC reiterated an unwavering commitment to the absolute inviolability and sanctity of Pakistan’s sovereignty and territorial integrity. The meeting emphasised that any attempt to breach it, on any pretext, would be met with the full might of the state.

Ensuring the security and safety of the people of Pakistan was declared paramount, and the state would spare no effort to guarantee it.

Recognising Iran as a neighbourly and brotherly Muslim country, the forum urged the utilisation of existing communication channels between the two nations to address mutual security concerns for the larger interest of regional peace and stability.

The meeting underscored Pakistan’s commitment to the sovereignty and territorial integrity of all countries in accordance with the UN Charter and international norms. The committee reiterated its resolve to combat terrorism in all its forms and manifestations with an iron hand, emphasising that Pakistan has endured more than any other country due to this scourge.

In line with universal principles governing good neighbourly relations, the NSC expressed confidence that through dialogue and diplomacy, both countries could overcome minor irritants and further deepen their historic relations.

The meeting was attended by the Caretaker Ministers for Defence, Foreign Affairs, Finance, and Information, along with the Chairman of the Joint Chiefs of Staff Committee, Chief of the Army Staff, Chief of Naval Staff, and Chief of Air Staff, as well as heads of intelligence agencies.

Following the NSC meeting, the Ministry of Foreign Affairs provided the Caretaker Federal Cabinet with a comprehensive

Pakistan, Iran agree to work together to ‘de-escalate’ situation

ISLAMABAD: Pakistan and Iran on Friday agreed to strengthen coordination on counter-terrorism and work together “based on the spirit of mutual trust and cooperation” to “de-escalate the situation.”

The development came during a telephonic conversation between Foreign Minister Jalil Abbas Jilani and his Iranian counterpart Hossein Amir-Abdollahian, the Foreign Office (FO) spokesperson said in a statement. On Tuesday, Iran had launched attacks in Pakistan targeting what it described as bases for the militant group Jaish al-Adl in the border town of Panjgur in Balochistan, Iranian state media reported, prompting strong condemnation from Islamabad and downgrading of diplomatic ties. The Iranian strikes were part of a series of attacks carried out by Iran in recent days in Syria and Iraq as a response to recent terrorist attacks on its territory. They have heightened concerns about regional stability, particularly amid ongoing conflicts in the Middle East.

On Thursday, Pakistan targeted precision strikes on “hideouts used by terrorist organisations namely Balochistan Liberation Army (BLA) and Balochistan Liberation

briefing on the aftermath of the Iranian attack on Pakistan on January 16.

In a session of the Federal Cabinet convened here on Friday with Caretaker Prime Minister Anwaarul Haq Kakar in the chair, details of the attack and Pakistan’s response were shared, said a PM Office statement.

The Cabinet commended the high professionalism demonstrated by the Pakistan Armed Forces in responding to the breach of the country’s sovereignty, highlighting the

Front (BLF)” in Iran’s Sistan-Baluchestan province, in an intelligence-based operation codenamed ‘Marg Bar Sarmachar’. Iran’s IRNA news agency had reported that nine people were killed in the attack targeting a village in the city of Saravan, with Iranian Interior Minister Ahmad Vahidi saying all the dead “were foreign nationals”. Iran had condemned the strikes, and summoned Pakistan’s charge d’affaires “to protest and request an explanation from the Pakistani government,” according to a statement by foreign ministry spokesman Nasser Kanani.

However, the Iranian foreign ministry later said in a press release that it was committed to good neighbourly relations with Pakistan while condemning what it said was an “unbalanced and unacceptable drone attack on non-Iranian villagers”. Following Pakistan’s tit-for-tat response to Iran’s missile attack, caretaker Prime Minister Anwaarul Haq Kakar cut short his stay in Davos, Switzerland for the 54th annual meeting of the World Economic Forum (WEF) while FM Jilani, who was in Uganda to attend a ministerial meeting of the non-aligned movement, also returned to the country.

coordinated efforts of the entire government machinery.

Addressing the federal cabinet, the prime minister emphasised Pakistan’s commitment to being a law-abiding and peaceloving nation, seeking amicable relations with all countries, especially its neighbours.

He underscored the historically fraternal and cooperative relationship between Pakistan and Iran, characterised by mutual respect and affection.

Stripping PTI of electoral symbol ECP gives directive to security personnel to remain a ‘big punishment’: Gohar ‘impartial’ on Feb 8 ISLAMABAD

ISLAMABAD

STAFF REPORT

As the general elections draw near in a matter of weeks, the Election Commission of Pakistan (ECP) has provided directives to law enforcement agencies responsible for safeguarding the security of the February 8th polls.

In a comprehensive code of conduct for security personnel, the electoral watchdog emphasised the need to remain “neutral and impartial”, particularly during the voting process, and “not act in favour of or against any political or candidate in any manner”.

The directions from the commission came after caretaker Prime Minister Anwaarul Haq Kakar constituted a seven-member committee mandated with ensuring the smooth conduct of the upcoming general elections as well as overseeing their security arrangements.

In a notification dated Jan 18, a copy of which is available with Dawn.com, the ECP clarified that its code of conduct would not apply to the armed forces and civil armed forces, as distinct guidelines were being issued specifically for them.

It said the security personnel must perform their duties in accordance with the law and assist the election commission in conducting free, fair,

transparent and peaceful polls.

The watchdog added that security officials must also render their “fullest cooperation to the presiding officer for maintenance of order and for ensuring uninterrupted voting on the polling station”.

As per the code, the security personnel must “observe politeness, display immaculate behaviour in dealing with voters and polling staff, while remaining firm and just in dealing in accordance with the law while addressing any given situation”.

It added that security officials must ensure that voters were neither intimidated nor prevented from voting in any manner. The personnel must not allow any voter carrying a weapon into a polling station, the ECP guidelines highlighted.

According to the commission, personnel should also be aware of the fact that the polling agent of each candidate who observed the counting process was allowed to take a copy of Form-45 (result of the count) and Form-46 (ballot paper account) from the presiding officer.

The security personnel, the ECP continued, must also provide security to the premises of the office of returning officers till the completion of the consolidation of results and ensure the safe deposit of polling bags and other material to the ECP. Security personnel were also in-

structed to permit accredited observers and media personnel to enter polling stations.

Further, the code of conduct outlined that media persons would be allowed to carry cameras to capture footage of the voting or counting processes, except in the screened-off compartment, to uphold the secrecy of the ballot.

In specific instructions directed towards law enforcement, including police officials, the ECP emphasised that personnel should refrain from asking voters to present their “perchees” or prove their identity, as the responsibility lied with the polling officer.

It said no “eligible voter” should be disallowed from entering a polling station. Security personnel should “not interfere in any manner whatsoever in the function of presiding officer, assistant presiding officer or polling officer”. “[Personnel must] not arrest any person at the polling station unless explicitly instructed by the presiding officer to do so.”

It added that personnel must “not interfere in the counting process in any manner rather shall continue to provide peaceful environment outside the polling station for completion of counting process unless a malpractice in counting process has been identified.”

STAFF REPORT

PTI leader Barrister Gohar Ali Khan Friday expressed deep disappointment over Supreme Court’s ruling on party electoral symbol, saying called it a “big punishment”.

During an interview with a private channel, Barrister Gohar expressed surprise at the verdict and questioned the role of Justice Isa, whom he had previously respected.

Barrister Gohar Ali Khan, who also lost the chairmanship of PTI as result of SC’s verdict, voiced his dismay over the decision, labeling it as a “big punishment” for the party.

Last week, the Supreme Court upheld the Election Commission of Pakistan’s decision to declare PTI’s intra-party polls as “unconstitutional” and revoke the party’s iconic electoral symbol, the ‘bat’.

The three-member apex court bench, presided over by Chief Justice of Pakistan Qazi Faez Isa, upheld the ECP’s ruling. Consequently, PTI members will now have to contest the upcoming elections as independent candidates with different electoral symbols, and the party has lost the right to reserved seats for women and minorities.

Expressing concerns about potential increased horse-trading due to the Supreme Court judgment, Barrister Gohar highlighted the implications of the decision.

“This is not the Qazi Faez Isa I

was expecting,” he responded, saying that he had always respected the CJP during the latter’s time at Balochistan High Court. “In this case, I was 100 per cent expecting a different output,” Barrister Gohar said.

When asked whether the reference filed against Justice Isa during the PTI government’s tenure had a role in recent judgments against the party, Gohar said the CJP should have set aside all the other things.

“You cannot give such a big punishment to a political party,” he said.

Meanwhile, PTI founder Imran Khan, who is currently incarcerated, has delegated the task of awarding party tickets to Omar Ayub and Shibli Faraz, indicating minimal involvement in the decision-making process.

Gohar Khan also alleged that PML-N supremo Nawaz Sharif played a significant role in the rev-

ocation of the PTI’s electoral symbol, claiming that “the umpire is with Nawaz”.

Moreover, the PTI leader addressed the controversy surrounding PTI founding member Akbar S. Babar, describing him as a “planted individual.” “When has he done anything for this party?” he questioned. “He is not our member, nor has he been in the past 13 years.”

Gohar also confirmed that no one had been in contact with Imran at Adiala Jail, saying that the PTI founder was in “no mood” to meet anyone.

The PTI leader also appreciated President Arif Alvi, who he confirmed was “still with” the PTI. He requested Alvi to fulfill his role as the head of state and ensure that elections were held in a free, fair and transparent manner.

‘Cypher Case’: Govt challenges IHC order on jail trial in SC ISLAMABAD

STAFF REPORT

The caretaker government on Friday moved the Supreme Court, challenging the Islamabad High Court’s November 21 verdict declaring PTI founder Imran Khan’s jail trial in the cypher case illegal.

The ministries of law and interior have filed the petition, contending that the IHC order was “not in consonance with the law and “is beyond the jurisdiction”.

The petitioners have made Imran, the FIA DG, Islamabad police chief, district magistrate/deputy commissioner of Islamabad, Judge Abual Hasnat Zulqarnain of the special court established under the Official Secrets Act and superintendents of Adiala and Attock jails respondents in the case.

In the petition, the government raised a number of questions, including the legality

of the IHC proceedings and the maintainability of Imran’s appeal.

It argued that the high court’s order was “not sustainable” as the ex-premier’s appeal was “not competent” and the “assumption of jurisdiction” by the IHC divisional bench was “erroneous”.

“Hence, the impugned order dated 21.11.2023 is liable to be set aside,” the petition prayed, elaborating that Imran’s intracourt appeal was “not competent”.

“Divisional Bench of the hon’ble Islamabad High Court, Islamabad has traveled beyond the jurisdiction and relief not claimed in the writ petition was also allowed,” the application contended.

Further, it said the IHC order was “not maintainable in the eye of law” and the high court had gone beyond the prayer made in the petition.

Citing previous apex court orders, the

plea stated that “proceeding is something having the backing of judicial order or judicial process” and “action of the executive cannot be termed as proceedings in any manner whatsoever”.

“The Official Secret Act does not revolve around ouster of some secrets and if unauthorised ouster of secret can be made public by way of judicial proceedings conducted in public may prejudice the national security and might adversely affect the state sovereignty,” the government said.

It added that Section 14 [exclusion of public from proceedings] of Official Secret Act, 1923 was not properly discussed by the IHC bench. “[The] principle of open trial has not been rightly applied in the cases of Official Secret Act and the intention of legislature in introducing Section 14 of OSA was to protect state-level secrets,” the petition stated.

The plea further said that the “doctrine

of open trial in a secret matter like a cipher is injurious to the entire scheme of law”.

“It is respectfully submitted that leave to appeal may please be granted from the impugned judgment dated 21.11.2023 passed

by Divisional Bench of Islamabad High Court, Islamabad in ICA No.367/2023 in the interest of justice,” it concluded.

IHC’s Nov 21 order In its order, the IHC had said the law ministry’s notification of August 29 to conduct the trial in jail was “without lawful authority” and had “no legal effect”.

The requirements — to conduct the trial in jail — provided in Section 352 of the Criminal Procedure Code and Rule 3 in PartA of Chapter-1 in Volume-III of the Rules and Orders of the Lahore High Court were not met, the order had reasoned.

The rule in question states: “The place where a criminal court is held shall be

deemed an open court to which the public generally may have access so far as the same can conveniently contain them,” but the discretion to exclude the public from the ordinary courtroom rests with the presiding magistrate. When, however, the presiding magistrate, for any reason, excludes the public by holding his Court in a building such as a jail, to which the public is not admitted (and he is not entitled to do so without permission of the Department concerned) he should obtain the sanction of Government thereto, through the District Magistrate, and should inform the High Court that sanction has been accorded.“ In its August notification, the ministry had cited “security concerns” to justify the trial in Attock jail. Later, proceedings continued at Adiala Jail in Rawalpindi when Mr Khan was relocated there following a court order.

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Saturday, 20 January, 2024 | LAHORe

SPI SHOWS 0.34% INCREASE IN WEEKLY INFLATION

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Inflation rate was recorded at 44.64% YoY for the week ended on January 18, 2024 PROFIT

stAFF rePort

HE Pakistan Bureau of Statistics (PBS) released its weekly Sensitive Price Indicator (SPI) report on Friday, showing a 0.34% increase in the prices of essential commodities for the week ending on January 18, 2024. The year-on-year inflation rate was 44.64%, indicating a sharp rise in the cost of living compared to the same period last year.

The SPI is computed on a weekly basis to assess the price movement of 51 essential items collected from 50 markets in 17 cities of the country.

According to the report, the major items that contributed to the increase in inflation were onions (8.69%), tomatoes (7.51%), energy savers (2.72%), chicken (2.26%), garlic (2.18%), bananas (2.14%), eggs (1.89%), matchboxes (1.67%), pulse mash (1.59%) and pulse moong (1.46%). The prices of these items increased by 2.00%, 183.16%, 2.72%, 2.26%, 60.45%, 2.14%, 47.54%, 1.67%, 1.59% and 1.46%, respectively, on a year-on-year basis.

On the other hand, the items that showed a weekly decrease in prices were potatoes (-3.85%), petrol (2.99%), sugar (-0.90%), tea (-0.20%), vegetable ghee (-0.14%), cooking oil (-0.08%), wheat flour (-0.07%) and

gur (-0.04%).

The price of potatoes decreased by 3.85%, Petrol by 2.99%, sugar by 57.26%, tea by 0.20%, vegetable ghee by 1.17%, cooking oil by 0.08%, wheat flour by 65.03% and gur by 49.45%, respectively, on a year-on-year basis.

The report also revealed that the highest inflation rate was observed in the third quintile (Rs 22,889 – 29,517 rupees monthly income), followed by the fourth quintile (Rs 29,518 – 44,175 monthly income).

The PBS also provided monthly, quarterly, and halfyearly SPI data for the lowest consumption quintile, showing the trends and changes in prices over time.

SBP enforces new measures to control US dollar transactions g

Pakistan tightens currency controls, biometric verification required for large dollar transactions PROFIT

monitoring desk

The State Bank of Pakistan (SBP) has introduced new regulations requiring biometric verification for all transactions over $500 at exchange companies. This measure is part of a broader strategy to stabilize the foreign exchange market as reported by The News.

Officials from the central bank, during

a meeting with the Special Investment Facilitation Council (SIFC) Apex Committee on January 3, 2024, disclosed these new rules.

The decision comes in response to Pakistan’s dollar crisis, fueled by inadequate exports and remittances and the extensive use of dollars for import financing. The situation has also led to the illegal hoarding of US dollars.

Significant changes have been made

MARI confirms successful drilling of second well in Sindh’s Ghazij formation

Refineries halt fuel oil exports amid rising local demand, energy shortages g

PROFIT

news desk

to the US dollar purchase limits. For travel, the maximum purchase amount is now $5,000 per transaction, reduced from the previous limit of $10,000, and the annual limit has been cut from $60,000 to $30,000. Additionally, any purchase of $2,000 or more requires payment directly from the buyer’s Pak Rupee account.

Individuals are now limited to purchasing $10,000 in US dollars per day,

with an annual limit of $100,000. To enforce these rules, the Federal Investigation Agency will collaborate with the SBP and other entities to target illegal foreign exchange operations.

These reforms are set to be formally announced after their approval in the upcoming SIFC meeting. This initiative is a continuation of the government’s crackdown on dollar smuggling and hoarding, which intensified when the dollar’s value exceeded 300. The Ministry of Interior has identified groups involved in these illegal activities, some of which are linked to government officials.

Mari Petroleum Company Limited (MARI) announced today a successful outcome from its second appraisal well in the Ghazij formation, located in the Mari Development and Production Lease (D&PL) in Sindh. This development was shared in the company’s latest filing with the Pakistan Stock Exchange (PSX). The drilling of the well commenced on December 20, 2023, reaching a depth of 1,014 meters. Tests conducted post-drilling revealed a gas flow rate of 6.57 million standard cubic feet per day (MMSCFD), with a wellhead flowing pressure (WHFP) of 306 pounds per square inch (Psi). The testing was done using a 64/64inch choke size. Mari Petroleum plans to initiate test production from this well, following the completion of necessary regulatory formalities. The company holds a 100% working interest as the Operator of Mari D&PL. Earlier in the month, Mari Petroleum also reported a gas discovery at the Shewa-2 appraisal-cum-exploratory well in the North Waziristan district of the Khyber Pakhtunkhwa Province. This well, reaching a depth of 4,577 meters, was drilled on November 01, 2023. Its primary objective was to appraise the Lockhart and Hangu formations, initially discovered at the exploratory well Shewa1, and to assess the hydrocarbon potential of the well’s exploratory targets, namely the Samanasuk and Kawagarh formations.

Over 160,000 tonnes of fuel oil were exported in December, the highest monthly figure recorded PROFIT

news desk

The refining sector in Pakistan has suspended the export of fuel oil due to a significant increase in domestic demand.

This surge is attributed to reduced hydropower generation and colder weather conditions, as stated by industry officials on Thursday.

January saw the country’s fuel oil consumption escalate to 8,000-10,000 tonnes per day, a sharp rise from the previous consumption of less than 4,000 tonnes per day.

Previously, refineries were exporting their surplus fuel oil.

Officials explained that the increased demand for fuel oil began when canal desilting operations in the country halted water releases from dams, subsequently reducing hydropower generation.

This reduction in hydropower output necessitated the higher utilization of furnace oil-based power plants to fulfill the country’s electricity needs.

Additionally, the extreme weather, including heavy fog in populous regions like Punjab, led to increased gas consumption for heating, thereby reducing the power generation from gas-fired plants.

Earlier, power plants were not purchasing fuel oil from local refineries during the first half of the current fiscal year due to lower demand.

However, this situation has recently reversed, with refineries declining offers to export fuel oil.

One refinery canceled an export plan for 50,000 tonnes of fuel oil, and another is now selling all its fuel oil domestically.

Furthermore, Pakistan State Oil (PSO) is reportedly approaching a refinery that had 50,000 tonnes of fuel oil at Port Qasim, which was imported a few weeks ago, to purchase for power plants.

Oil export data indicated that over 160,000 tonnes of fuel oil were exported in December, the highest monthly figure recorded, bringing the total export to 460,000 tonnes in the first half of the current fiscal year.

However, despite the trend of increasing fuel oil consumption in recent months, exports are expected to decline in January, as per officials’ statements.

Pakistan’s cotton production reaches 8.2m bales, still below domestic demand g

Ginners are holding onto 487,000 bales, with 165 ginning factories currently operational PROFIT

monitoring desk

Pakistan’s cotton production has hit 8.2 million bales in the 2023-24 period, with Punjab and Sindh provinces contributing almost equally, as reported by the Pakistan Cotton Ginners Association (PCGA).

As of January 15, the country has produced 8.258 million bales, marking a 67 percent increase from the previous year’s total yield of 4.9 million bales, as reported

by Dawn. The increase is significant, considering that last year’s yield was heavily impacted by rains and floods.

Sindh’s production stood at 4.1 million

bales, just slightly below Punjab’s output.

The current distribution of cotton includes 292,000 bales purchased by exporters, including private companies, and 7.478 million bales bought by textile mills.

Meanwhile, ginners are holding onto 487,000 bales, with 165 ginning factories currently operational. Naseem Usman, chairman of the Karachi Cotton Brokers Forum, estimates that the total cotton production might reach around 8.4 million bales. Including unregistered bales, he believes the figure could touch 9.5m bales.

Ihsanul Haq, Chairman of the Cotton Ginners Forum, pointed out that despite a lower cotton acreage, Sindh has produced

an amount almost equal to Punjab’s output and might even surpass it next year, as more growers are inclined towards this cash crop. However, the domestic demand for lint is conservatively estimated at around 12.5 million bales. Pakistan is still awaiting the delivery of 1.6 million bales of imported cotton from last year, with an additional 0.8 million bales expected through land routes. Usman noted that the rising domestic cotton prices have led textile mills to start importing cotton, which is comparatively cheaper.

Approximately 0.4 million bales have been contracted for import in the last month, with more contracts underway.

However, border tensions, particularly at the Pakistan-Afghan border, are causing concerns among importers as numerous vehicles carrying cotton and other commodities are delayed.

Haq stressed the necessity for the textile industry to import cotton on a large scale due to the shortfall in local production. This need is further amplified by the local textile mills securing export orders worth around $3 billion at the recent Heimtextil Messe in Frankfurt, Germany, where 277 Pakistani mills participated.

With the expected reduction in power rates for the textile export sector and potential cuts in markup rates on bank loans, as recommended by the Special Investment Facilitation Council (SIFC), Haq anticipates that the domestic cotton market will intensify, increasing the industry’s reliance on imports.

SBP injects Rs 2.17 trn into banking system through OMOs PROFIT

news desk

The State Bank of Pakistan (SBP) injected cumulatively Rs 2.17 trillion into the market through reverse repo and Shariah-compliant Modarabah-based Open Market Operations (OMOs) on Friday. According to the SBP, Rs 2.09 trillion was injected through reverse repo, and Rs Rs 82 billion was injected through Modarabah-based OMO. The SBP received bids worth Rs 2.24 trillion in the conventional OMO and Rs 132 billion in the Islamic OMO. The bids were offered in three different tenors: 07-day, 14-day, and 28-day. The rates of return for the accepted bids ranged from 22.04% to 22.07%, which is in line with the SBP’s policy rate of 22%. The SBP stated that the OMOs were conducted to meet the liquidity needs of both conventional and Islamic banking systems and to ensure smooth functioning of the money markets.

PSX suspends shares’ trading of three companies PROFIT

news desk

Pakistan Stock Exchange (PSX) suspended the trading of three companies on regulatory noncompliance, ranging from non-payment of dues to not holding annual general meetings and non-submission of the annual audited financials. According to notices issued on Friday, these companies failed to comply with the regulatory clause(s) 5.11.1 of PSX regulation that falls under the heading of defaulters’ segment, suspension and de-listing.

Trading of shares of Chenab Limited and Fatima Enterprises Limited was suspended due to reasons of not holding the annual general meeting, non-submission of the annual audited financials and non-payment of dues of the exchange. Clause 5.11.1 (c) of the PSX regulations suggests that a company should hold one annual general meeting, and clause 5.11.1 (d) suggests that a company should submit its annual audited accounts for the preceding financial year. First Capital Equities Limited was stopped from trading shares because it suspended commercial / business operations in its principle line of business and non-payment of dues of the exchange. The PSX made this decision to suspend shares trading in the exercise of the powers vested in the Exchange under Sub-Section (7) of Section 19 of the Securities Act, 2015 and clause 5.11 of the PSX Regulations. Additionally, BankIslami Pakistan Limited announced the dates of Book Closure from January 30, 2024, to January 31, 2024, for the profit payment of their Sukuk. Given the above, trading in the said Sukuk will be suspended during the period from January 29, 2024, to January 31, 2024, and will resume on February 01, 2024.

NEPRA renews power supply & distribution license of KE for 20 years

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KE's previous 20-year license had reached its term in July 2023 ISLAMABAD

AhmAd AhmAdAni

The National Electric Power Regulatory Authority (NEPRA) has renewed the power distribution and supply licenses of K-Electric (KE) for a period of 20 years. This nonexclusive license renewal follows KE’s request for a non-exclusive license ahead of the liberalization of the power sector. KE’s previous 20-year license had reached its term in July 2023. Subsequently, NEPRA had provided KE with an interim distribution license for six months, which was nearing its expiration in January 2024. The decision for renewal followed a comprehensive hearing that concluded on 28 November 2023. Posthearing, NEPRA has now authorized K-Electric to continue its power supply operations in Karachi, Uthal, Bela, Vinder, Hub, Dhabeji, and Gharo. K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).

Textile exports reach $8.28b with 5% decline in first half of FY2023-24: PBS g

Cotton yarn exports also grew significantly by 54.25 percent, from $381.545m to $588.529m PROFIT

news desk

Pakistan’s textile sector earned $8.283 billion from exports during the first half of the current financial year (2023-24), the Pakistan Bureau of Statistics (PBS) reported on Friday.

However, this represents a 4.97 percent decline compared to the $8.716 billion earned in the same period of the previous

year (2022-23).

Among the various textile products, certain commodities showed an increase in export value.

Notably, raw cotton exports surged by 374.66 percent, rising from $11.253 million last year to $53.412 million this year. Cotton yarn exports also grew significantly by 54.25 percent, from $381.545 million to $588.529 million, and towel exports experienced a modest

increase of 1.72 percent, from $491.696 million to $500.133 million.

Conversely, several textile commodities experienced a decline in exports. Cotton cloth exports decreased by 13.10 percent, falling from $1.066 billion to $926.677 million.

Other products such as cotton carded or combed, yarn other than cotton yarn, and knitwear also saw declines of 27.33 percent, 13.85 percent, and 10.65 percent,

respectively.

Additional decreases were noted in the exports of bedwear, which fell by 3.55 percent to $1.377 billion, tents, canvas, and tarpaulin by 1.45 percent to $60.941 million, and ready-made garments by 8.93 percent to $1.669 billion.

Exports of art, silk, synthetic textile, madeup articles, and other textile materials also witnessed decline.

On a positive note, textile exports in December 2023 increased by 3.33 percent year-on-year, from $1.354 billion in December 2022 to $1.399 billion. On a month-on-month basis, there was a 6.15

percent growth compared to November 2023’s exports of $1.318 billion.

In the broader economic context, Pakistan’s overall merchandise trade deficit saw a significant contraction of 34.29 percent in the first half of the current fiscal year compared to the same period last year.

The trade deficit was recorded at $11.148 billion, down from $16.965 billion in the previous year. The exports during this period rose by 5.17 percent to $14.981 billion, while imports saw a decrease of 16.28 percent, totaling $26.129 billion.

Saturday, 20 January, 2024 | LAHORe

03

BUSINESS COMMUNITY DEMANDS REDUCTION IN INTEREST RATE newS

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SBP and GoP urged to make sure that industries flourish PESHAWAR

Aziz Buneri

Members of the business community urged the government and State Bank of Pakistan to cut interest rates to make sure that the industries flourish.

The business community said that the prices of import items and raw materials increased exorbitantly owing to gradual increase in policy rate by the central bank, consequently cost of doing business also

increased and inflation also jacked up.

A meeting of businessmen was held under the chairmanship of Industrialists Association Peshawar president Ayub Zakori in the IAP office. The aforementioned demands were made in a press release issued here on Friday.

On this occasion, IAP’s former presidents, executive members, senior members and industrialist members of the business community were present.

The participants of the meeting said that

the further increase in policy rate will work under the prevailing scenario.

Ayub Zakori said that the previous increase in policy rate to 22% has struck a mortal blow to an already struggling business community.

The decision has further pushed up the cost of doing business and dampen prospects for reining in cost-push inflation, he added.

“At 25-26 % interest rate, it is hard to borrow from the banks,” he said, adding that

it will be hard for the government to earn revenue due to the decline in large-scale manufacturing.”

Participants of the meeting said it is very hard for business and industry to survive on high interest rates at a time when the soaring power and gas tariff has already pushed up the cost of doing business, making exports uncompetitive in the world market.

Despite several rounds of negotiations between the government and the business community, no remedial measures have been proposed to spur industrialisation.

Instead, industries have been burdened with countless taxes and duties, added the IAP chief. The IAP chief also said that every sector of trade and industry is severely affected due to the stoppage of imported goods. As a result the economy is going towards a total closure and default.

Ayub Zakori said many industries are now facing shortage of raw material and are on the verge of cutting their production.

The participants added that production has stopped and operational expenses are also becoming difficult to meet, which increases the fear of a rise in unemployment rates.

‘in awe’ at eCP to move LHC over its remarks Minister UoG progress, calls in electoral symbol allotment case for austerity ISLAMABAD

stAFF rePort

The Election Commission of Pakistan (ECP) has decided to file a civil miscellaneous application (CMA) in the Lahore High Court (LHC) over the court’s remarks in the verdict pertaining to the election symbol case.

The electoral body’s move comes after an LHC Bahawalpur bench on January 16 — in response to writ petitions filed by several candidates over the election symbol allotment issue — had remarked that the ECP and one of its returning officers (RO) were “not performing their duties in accordance with the law”.

Lamenting as to why the electoral body was not issuing a particular symbol to a candidate despite the fact that the symbol charpai was not allotted to anyone

else, the court had issued notices to Chief Election Commissioner Sikander Sultan Raja and the Punjab election commissioner along with the relevant ROs directing them to appear in person.

In response, directing its law wing to file the CMA, the electoral body has underscored that the candidates, who had approached the LHC complaining of not being able to obtain symbols of their choice, have “misled” the court as they didn’t approach the electoral body on the said issue, to begin with.

It also stressed that ROs have the mandate to allot election symbols under Section 67 of the Elections Act 2017. Complaining that the LHC passed verbal directions to the ROs and the ECP without hearing them on the said issue, the electoral body stressed that it has directed its ROs against changing candidates’ symbols owing to the fact that the printing of ballot papers has

already commenced on January 14.

The ECP further highlighted that any change in Form 33 “will result in the delay of election in the constituency concerned”, adding that the February 8 polls require the printing of around 260 million ballot papers. “The honourable court has passed remarks against the commission without attributing any failure on the part of the commission particularly when the petitioners themselves have sought issuance of a writ against the ROs for allotment of symbol,” the petition reads. “The ECP is cognisant of its constitutional duties […] the remarks of the honourable court are without any rhyme or reason.”

“Therefore, the commission has decided to approach the court by filing a CMA for the expunction of the remarks,” the ECP said adding that it will approach a higher forum if the said petition is rejected.

China donates sportswear to Gwadar players ISLAMABAD

stAFF rePort

Chinese Government has donated Sportswear to local youngsters of Gwadar.

Around 200 shirts and trousers were distributed with the help of China Overseas Ports Holdings Company (COPHC), operator of Gwadar Port.

The young boys playing on beach and playgrounds expressed their heartfelt gratitude to the Chinese government for the generous assistance.

By now, there are 22 football teams registered under District Football Association (DFA). Whereas 18 clubs are enlisted to District Cricket Association Gwadar.

The need for providing kits to the young players

was felt when they were observed playing in random cloths. Facilitating the local sportsman with basic sportswear is first of its kind friendly gesture in Gwadar.

“This gesture has opened up a new era of cementing people of people bond between China and Pakistan and promoting local players in Gwadar,” local football player Zahid Baloch told Gwadar Pro. COPHC official said that such act of benevolence will steer to engender people to people connectivity and boosting up social contact with local people of Gwadar.

“In my opinion, it will also lay down robust foundation of resilient relationship between Gwadar sports community and China,” he added saying continuous cooperation in games will bring beget

First batch of cooked beef imported from Pakistan cleared customs in Tianjin TIANJIN

stAFF rePort

500 kilograms of frozen boiled beef from Pakistan passed the territorial inspection of Tianjin Customs and entered the Chinese market, being the first batch of cooked beef imported by China from Pakistan.

In recent years, cooperation between China and Pakistan in various fields has been continuously strengthened. Since last year, both sides have signed protocols on the export of Pakistani cooked beef and dried chili peppers to China, achieved access to Pakistani fresh cherries to China, and reached an agreement on the export of Pakistani dairy products and animal skins to China.

An increasing number of Pakistani products of high quality and qualified companies are entering the Chinese market, Gwadar Pro reported on Friday.

In 2022, global beef consumption reached 56.961 million tons, with China’s beef consumption reaching 9.87 million tons, accounting for 17% of the total.

In contrast, Pakistan only contributes .5% to the world’s beef consumption. According to a report released by China Animal Agriculture Association, China’s beef consumption is projected to continue increasing until 2025. It is expected that by 2035, China’s beef consumption will reach 14 million tons, with a projected gap of more than 3 million tons.

“We learned through the import access list published by the General Administration of Customs that Pakistani cooked beef has recently gained access.

Tax revenue from electricity bills skyrockets to Rs 1410bn in last three years PROFIT

news desk

Recent official documents have disclosed that the government has collected a substantial Rs 1410 billion in taxes from electricity bills over the last three years. This revenue stream has demonstrated a significant increase in a relatively short period. The breakdown of these figures shows a steady and remarkable rise: in 2021, the tax collected was over Rs 345 billion. This amount increased to more than Rs 461 billion in 2022 and reached a peak of Rs 603 billion in 2023, effectively doubling the tax collection rate in just two years. It’s important to note that these taxes are over and above the actual cost of electricity.

The government’s revenue includes Rs 25 billion 70 crores collected as the PTV fee and over Rs 180 billion accumulated as income tax. Moreover, consumers have had to pay an extra Rs 89 billion 69 crores in additional taxes. This significant increase in electricity bill taxes reflects a growing trend in the government’s revenue generation strategies and highlights the financial impact on consumers.

After contacting Pakistan Organic Meat Company Limited through the online platform, we learned more about their product, then signed a cooperation agreement,” Ma Weilong, General Manager of Tianjin Longing International Logistics Co., Ltd., which imported the goods, told the reporter of Gwadar Pro. “Pakistan is a viable export partner of China due to its proximity and logistics advantages. We are also the cheapest nation in providing goods to the world.

The quality and price of Pakistan’s beef are far superior to those of many other countries,” CEO of Organic Meat said.

Pakistani heat-treated beef that is allowed to be imported refers to meat products that are made from boneless skeletal muscle of cattle under 30 months of age, which are pre-boned and fat-removed and then heated to an internal core temperature of above 70? for at least 30 minutes.

“It only took less than one day from pick-up at the port to customs clearance, which greatly saved customs clearance costs and allowed imported food to be put on domestic shelves for sale as soon as possible,” said Liu Haizhou, deputy general manager of Longing.

“Beijing and Tianjin Customs attach great importance to this batch of goods. They greatly improve customs clearance efficiency through the application of automated electronic customs declaration and inspection technology,” Ma added, “This is the first time we have cooperated with a Pakistani partner. In the future, Longing will have more in-depth trade cooperation with Pakistani cooked beef factories.”

Vote PTI to liberate country from ‘gang of criminals’: Imran ISLAMABAD

stAFF rePort

Pakistan Tehreek-e-Insaf (PTI) Chairman-forlife, Imran Khan, has called upon the nation to come out in massive numbers on February 8 to cast their votes and help realize the dream of true independence by freeing the country from the clutches of certified criminals. In a special message for his nation from Adiala Jail, PTI Founding Chairman made it clear that February 8 was the day to differentiate between freedom and slavery. “I firmly believe that my nation will stand with freedom and they will guard and secure true independence of Pakistan with the power of their vote in the forthcoming general elections,” he added. Imran Khan warned that the clique of criminals wanted to keep the nation enslaved by robbing the elections scheduled for February 8. PTI Funding Chairman reminded that a certified criminal was brought back to the country under the infamous London Plan.

deep harmony and closeness between both the countries.

China also patronized 1st of its kind “Pak-China Friendly Football Match” at Futsal Football ground alongside Marine Drive on September 14, 2022.

District Football Association official said that current Chinese donation to local sportsmen as well friendly Football Match was a tangible success of China’s sincere efforts of nurturing warm bond and ties with local people of Gwadar. “Gwadar youth possess natural talent and they need just a pat on their back. Fortunately, China is with us to extend maximum financial and other sort of assistance to them so that Gwadar footballers may prove their mettle on national, regional and international arenas,” he added.

GUJRAT

stAFF rePort

Provincial Minister for Higher Education Punjab Mansoor Qadir has lauded the progress made by the University of Gujrat (UoG), saying the varsity’s state-of-the-art infrastructure, its achievements in the field of research and innovation are exemplary.

“If only I had time and opportunity, I would have paid off what I owe to my country by devoting all my efforts to the development of the University of Gujrat,” Mansoor Qadir said. Earlier, Vice Chancellor Prof Dr Muhammad Mushahid Anwar along with his team of senior academics and administration officials welcomed the provincial minister upon his arrival at the campus. In a meeting of senior faculty and staff that the minister chaired, Dr Muhammad Mushahid Anwar gave a detailed introduction of the varsity, throwing ample light on the role and achievements of the university.

Mansoor Qadir said that the development of educational institutions is our shared national responsibility. “Pakistan is a developing country.

Each one of us in our individual capacity must sincerely contribute towards its progress and development,” Mansoor Qadir said. He said that universities are centres of research that have the potential to bring about revolution in every sphere of human engagement. “Despite the ongoing economic crisis and political unrest, we must not lose hope,” said the minister, adding that universities need to find ways of self-reliance and take recourse to austerity by devising responsible fiscal and monetary policies. The meeting was attended by UoG registrar, deans, directors, controller of examinations, the treasurer and other senior staff. Later, Mansoor Qadir visited the Quaid-e-Azam Library, Data Centre and Faculty of Arts, Design and Architecture, interacted with the students and teachers and appreciated their work.

04 COMMENT

From Gaza to Indian occupied Kashmir

Saturday, 20 January, 2024

Attack on Iran

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Pakistan’s response may satisfy national honour, but does solve the problem of separatism

The Kashmiris also need an international movement

AKISTAN’S attack on Baloch separatist camps in Iran may have satisfied national honour, but has left the issue of Baloch separatism unsolved.

Pakistan has shown that it too can strike at terrorist camps even if they are on Iranian soil. The two countries should realize that they have a common problem, that of Baloch separatism, and it needs to be addressed together, rather than as separately. Part of the problem seems to be that there are separate separatist movements, with no crossover. Organizations working for the separation of Iranian Balochistan seem separate from those working for the separation of Pakistani Balochistan, and they have bases in the other country. This means that the host country has a very low incentive to seek out the other’s separatists. It would seem only logical for the two countries to work together on this issue.

Once a terrorist camp is identified, there seems no reason why the ‘host’ country should either act itself and hand over any captured terrorists to the other, or allow the other country’s law enforcement agencies the necessary access for action.

Until there is some such agreement, the two countries will keep on offering the world such exhibitions.

Already, Iran has lost more than Pakistan. Its attack on Pakistan was a response to the bombing at the Soleimani anniversary commemoration, as was its attacks on Iraq and Syria, but now Pakistan’s response has ensured that all those events have been thrown into the background. Also thrown into the background for both countries has been the continuing Israeli attack on Gaza. Indeed, it allowed US President Joe Biden to pontificate about the region, and say that Iran is not wellliked in the region. The USA cannot help but be satisfied by a turn of events which pits a diehard opponent against an ally which is trying to keep the relationship on even keel. China’s offer to mediate, follows its earlier call to both countries to show restraint is because of this: it cannot look on diligently as two of its friends quarrel with each other.

It is now up to Iran what will be the next move. Pakistan may consider its honour satisfied, and will probably not want to take the matter much further. In principle, that means agreeing to target a menace which both countries face, and that too in the same place. The various ties between them run too deep for them to afford a quarrel.

ALI SUKHANVER

N January 12, during a public hearing at the International Court of Justice, Israel ironically, rather stubbornly, rejected accusations of genocide in Gaza and claimed that the case filed by South Africa with the top UN court was a distortion of truth that amounted to distorting the facts.

Israel asserted that whatever it did was in self-defence in response to the attack by Hamas in southern Israel on October 7. There was no intention of ‘genocide’ against the Palestinian people, said Israel’s authorities. On the other hand, different groups of peace activists from all over the world observed January 13 as a global day of action for Gaza. According to the Associated Press, thousands of demonstrators converged opposite the White House on January 13 to call for an end to Israeli military action in Gaza, while children joined a pro-Palestinian march through central London as part of a global day of action against the longest and deadliest war between Israel and Palestinians in 75 years.

On January 14, the Associated Press reported that people in the US capital held aloft signs questioning President Joe Biden’s viability as a presidential candidate because of his staunch support for Israel in the nearly 100-day war against Hamas. Some of the signs read: ‘No votes for Genocide Joe’, ‘Biden has blood on his hands’ and ‘Let Gaza live’.

France 24 said, “In Washington, large crowds waved Palestinian flags as the mostly young protesters -- many wearing the traditional keffiyeh -- gathered in a show of solidarity on the 99th day of the Israel-Hamas war in the Gaza Strip.

‘Cease-fire now’ people chanted, while carrying banners and posters that read ‘Free Palestine’ and ‘End the War on Gaza.’ On a stage a few blocks from the White House, several Palestinian-Americans -- originally from Gaza, but now living in US states from Michigan to Texas - offered emotional accounts of friends and relatives killed or wounded in Gaza.”

The Press TV said, reporting on the observance of the Global Day of Action for Gaza in Jakarta, “Thousands of members from the Muslim community gathered in front of the US Embassy in Jakarta on Saturday to protest against ‘genocide’ in Palestine and express their support for the Palestinian people, marking a Global Day of Action for Gaza. Israel declared war on the group and made a 'complete siege' of Gaza, with a large-scale campaign of air strikes. Since the start of the aggression, Israel has killed more than 23,843 Palestinians, mostly women and children. Nearly 60,317 Palestini-

ans have also been wounded, according to Gaza’s Health Ministry.”

In short it was a brave show all over the world against Israel’s brutality and the helplessness of the people of Palestine. Certainly all this was against the expectations of the Israeli policy-makers. This reaction of all peace-lovers must have been very much alarming for those who are dreaming of wiping out s whole generation of Palestinians with the help of ruthless air strikes.

Bordered by Egypt on the southwest and by Israel on the east and north, the Gaza Strip is 41 km long and almost 6 to 12 km wide, a small area with a total population of around 2 million Palestinians. It is said that this small area has one of the world's highest population densities. According to the Palestinian Central Bureau of Statistics, Gaza is a Muslim-majority area with a Palestinian Christian minority.

Gaza's unemployment rate is among the highest in the world but at the same time its population has one of the highest literacy rates in the world. The Gaza strip has been facing a siege-like situation for the last many weeks. Before 2005, the Gaza Strip was under Israel’s military control but then on international pressure, Israel had to withdraw its forces from Gaza though the United Nations and different international human rights organizations regard the ‘Gaza Strip still to be under military occupation by Israel as Israel still maintains direct control over Gaza's air and maritime space.’ The UNO still regards the Gaza Strip as an occupied territory. Presently, apparently

The horrible situation in Palestine, particularly in Gaza, is not very much different from the situation in Indian Occupied Kashmir. In reality, the people of Kashmir have been in a prison for a long time. India has deprived them of their basic human rights. They have no access to justice, the lives of their sons and daughters are in danger, their properties and businesses are at stake. They are continuously victimized and pressured by the illegally deputed Indian troops. They have to face all that brutality just because they are demanding to exercise their fundamental right to self-determination

Dedicated to the legacy of late Hameed Nizami

Arif Nizami (Late) Founding Editor

Yousaf Nizami Editor Umar Aziz M. A. Niazi

this area is under the command of Hamas.

The basic purpose of observance of the global day of action on January 13 was to highlight the world-

Religious Manipulation in Pakistan's Politics Joint Editor

R

Executive Editor

Editor’s mail

Market turmoil

ASAdULLAH

Socialism during the first-ever general elections of 1970, and then by declaring Ahmadis as nonMuslim through Parliament, as well as organizing the second Islamic Summit in 1974 to remain in power.

Moreover, in 1977 after the second general elections alleged by the Pakistan National Alliance (PNA) led by Mufti Mehmood against Z. A. Bhutto thus, the political demonstrations were converted to demand the implementation of “Nizam-e-Mustafa” by using religion to depose Bhutto's government. Even Bhutto declared Friday as a public holiday instead of

chief Lt Gen Hameed Gul during the 1988 general elections to oppose Benazir Bhutto, exploiting religion to assert that "women could not be accepted as the Prime Minister of a Muslim state."

In recent decades, the Pakistan Awami Tehreek (PAT), led by Maulana Tahir ul Qadri, misused religion twice, against the PPP in 2012 and the PML(N) in 2014 to destabilize their respective governments.

Additionally, Tehreek Labaik Pakistan led

by Maulana Khadim Hussain Rizvi organized a massive Dharna (sit-in) against the PML(N) in 2017 and PTI in 2020 to pressurize their governments.

Similarly, during the campaign for the 2018 elections, Imran Khan exploited the religious card in the name of establishing the "Riyasate-Madina'' to manipulate the masses for political gains. Similarly, the JUI(F) of Maulana Fazlur Rehman also exploited madressa students during its Azadi March of 2019, and then in 2022 under the umbrella of PDM to overthrow the PTI's government.

Consequently, individuals can be easily manipulated in the name of religion due to a lack of awareness regarding the authentic essence of religion as elucidated by the Quran, Hadith, and Sunnah. Religion inherently fosters the prosperity of human beings without any discrimination of caste, colour, or creed; however, its positive impact depends on its proper use. Prevention of such manipulation is achievable through a profound understanding of the true spirit of religion which neither allows exploitation nor permits individuals to be exploiters.

Religion inherently fosters the prosperity of human beings without any discrimination of caste, colour, or creed; however, its positive impact depends on its proper use.

Prevention of such manipulation is achievable through a profound understanding of the true spirit of religion which neither allows exploitation nor permits individuals to be exploiters

Sunday to stabilize his power, but he could not succeed.

Furthermore, religion was tremendously manipulated during the Afghan Jihad of the 1980s against the USSR, that had posed an adverse impact on Pakistan’s politics and social life under the umbrella of General Zia’s Islamization. According to Arif Jamal, author of Shadow War, the Jamaat Islami had played a decisive role in the Afghan Jihad along with the military and later in creating the insurgency in Indian Occupied Kashmir in 1990s under the rubric of holy war. Besides, the Islami Jamhoori Ittehad was founded by former ISI

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People’s devotion has been exploited even before Independence

ELIGION has played a double role in a society like ''world maintaining and world shaking''. Sometimes it has been used to legitimize power, getting privilege or liberty, and sometimes it is used to dethrone the rulers. The dictation of religion was misinterpreted, and religion was misused by the officialdoms of the state to justify their rule as well as to orchestrate the social settings of the society before and after the European imperialism in the Subcontinent.

Pakistan has a colourful history of religious exploitation where religion is being exploited either by theologians or ruler elites to serve their interests, before and after Independence.

The division of the Sub-continent was based on the ''Two-Nation Theory'' propounded by Sir Sayed Ahmed Khan that was entirely based on religions (Hinduism and Islam); it means nationalism was created in the name of religion to advocate the Muslim interests of India. However, Quaid-i-Azam Muhammad Ali Jinnah underscored the cultural differences between Hindus and Muslims rather than the religious dissimilarities between them.

Nevertheless, the same vision had been observed by the Muslim Leaguers. Even the Quaid's 1940 and 1947 speeches have differences in emphasis. In 1940 the Quaid’s main argument was to create a separate Muslim state for Muslims only, but when his object was fulfilled in 1947 his view seems to have changed, and he welcomed all the people from different religions and walks of life in the newborn state. If the Muslim League’s goal was only to establish an Islamic state, then Maulana Maududi, the founder of Jamaat e Islami, and Maulana Hussain Ahmed Madani, a renowned Indian Islamic scholar, were not against the Pakistan movement. Thus, the twonation theory failed when East Bengal seceded from Pakistan in 1971.

Since the inception of Pakistan, the political gains have been accomplished by exploiting the religion either by religious or political parties and this exercise has been observed in both military as well as in civilian governments. Hence, the first time this religious card was played by Mufti Mahmud against Fatima Jinnah by declaring that “women do not have right to contest the election” during the presidential elections of 1965, when she contested in the opposition to Field Marshal Ayub Khan.

Similarly, Z. A. Bhutto replicated this to appease the Ulema by raising the slogan of Islamic

wide condemnation of Israel’s atrocities in the Gaza Strip. A permanent ceasefire and lifting of siege are the only steps which could bring to an end the slaughter in Gaza. Moreover these steps would help out more than 1.7 million Palestinians displaced from their native homes and who are facing grave danger of an outbreak of major epidemics. The motive behind this solidarity movement is to mobilize millions of people from all around the world to the streets and materialize this demand of a permanent ceasefire in Gaza.

The horrible situation in Palestine, particularly in Gaza, is not very much different from the situation in Indian Occupied Kashmir. In reality, the people of Kashmir have been in a prison for a long time. India has deprived them of their basic human rights. They have no access to justice, the lives of their sons and daughters are in danger, their properties and businesses are at stake. They are continuously victimized and pressured by the illegally deputed Indian troops.

They have to face all that brutality just because they are demanding to exercise their fundamental right to self-determination.

Recently, just three weeks back, three Kashmiris were tortured to death while in army custody in Indian-occupied Kashmir. According to different media reports, the Indian Army had arrested at least 15 civilians a day ago for interrogation; three of them couldn’t bear the torture inflicted upon them by the Indian security officers and died in a nearby military camp.

Mehbooba Mufti, who had been the ninth Chief Minister of Jammu and Kashmir from 4 April 2016 to 19 June 2018, said, condemning this brutality, “Had this happened under any other government, the media would have raised questions. They picked up 15 people from their homes who were tortured. Three of them have already been killed. So, how is this ‘Khushal Kashmir’ or ‘Naya Kashmir’ where neither Army-men nor common people are safe?” The same type of international movement for the people of Indian Occupied Kashmir as for the Gazans is also the need of the time.

at

THE recent sharp decline in the Pakistan stock market, following its historic highs, has raised concerns about the volatile nature of the market. This pattern, where large capitalists withdraw capital at extreme highs, causing a sudden crash, has been observed for a considerable period. This has led to a growing perception that the stock market operates on an artificial basis, seemingly disconnected from the overall economic situation of the country.

Over the past few weeks, the stock exchange experienced a record boom, reaching a high of 67,000 points. However, this trend abruptly reversed as investors chose to sell on Monday and Tuesday, plunging the market into a deep bear market. The market lost a staggering 3 trillion 62 billion rupees, reducing the total capital from 94 trillion rupees to 90 trillion rupees. The SE 100 index fell by 2372 points, failing to maintain the 63 thousand points mark.

Economists attribute this down turn to various factors, including fears of a weak government post-elections, increasing tension in political parties, the current ac count deficit, and the exclusion of Pakistan Steel Mill from the pri vatisation list. Analysts have pre dicted a negative impact on share prices in the Pakistan Stock Ex change, leading to profit-taking by investors.

During trading, index-heavy sectors such as automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, OMC pharmaceuticals, and refineries witnessed significant selling. After a decline of more than 900 points in the 100 index, investors had to resort to profit-taking strategies.

The stock market’s fluctuations persist, and while some experts foresee chances of improvement in the coming days, the overall sentiment remains uncertain.

AMIN WASTOO HOSHAB

Expensive education

THE increasing cost of education in Pakistan has been a significant obstacle for many individuals and families, preventing them from accessing quality learning opportunities. The cost of education not only affects students but also poses significant challenges to the nation’s development and socioeconomic progress.

The rising costs of private schools and universities are a major cause of the high cost of education. These institutions often make promises of better facilities and resources, but they also demand higher tuition fees, making quality education a luxury for a significant portion of the population. This economic barrier exacerbates educational inequality and limits the potential for social mobility.

Public education, intended to be a more affordable alternative, faces its own set of challenges. Insufficient funding, outdated infrastructure, and a shortage of qualified teachers hinder the quality of education provided by government schools. This, in turn, forces some families to turn to expensive private institutions in search of a better learning environment for their children.

The rising cost of textbooks, uniforms, and other educational materials is putting more pressure on families trying to educate their children.

Pakistan can strive to create an educational landscape that is more equitable and accessible, guaranteeing that every person has the opportunity to pursue their educational aspirations, regardless of their socio-economic background.

MEHRAJ HAYAT MEERABAD

Web: www.pakistantoday.com.pk

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Email: editorial@pakistantoday.com.pk

COMMENT 05

Pak Army’s practical contribution towards Society Saturday, 20 January, 2024

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The Army’s nation-building activities cover a wide range AbDuL bAsIT ALVI

NQUIRIeS often arise about the Pakistan Army's involvement in the country's development and its tangible contributions to societal improvement.

Some assert that the Army prioritizes its interests over the well-being of the people; but these claims lack foundation. While the primary focus of the Army is national defence, it is also committed to supporting civilian infrastructure.

Dedicated to national security, the Army expands its mission to healthcare. Beyond its core responsibility of defence, it has transformed into a formidable force providing healthcare.

With a nationwide network of state-ofthe-art military hospitals and medical facilities, the Army ensures access to modern medical technology and highly skilled healthcare professionals. These facilities offer a broad spectrum of services, ranging from general healthcare to specialized treatments. The Army consistently plays a pivotal role in emergency medical responses and disaster relief. Army medical teams are often the first on the scene of natural disasters or medical emergencies, delivering critical care to affected communities.

Acknowledging the necessity for healthcare in remote areas, the Pakistan Army deploys mobile medical units to provide services, preventive care, and health education. This proactive approach aims to bridge healthcare gaps, ensuring even the most marginalized populations receive essential medical attention.

The Army actively participates in medical research and development, focusing on infectious diseases, trauma care, and medicine. These insights not only benefit military healthcare but also have broader implications for civilian healthcare. Veterans receive specialized healthcare services, encompassing rehabilitation, mental health support, and geriatric care.

In collaboration with civilian healthcare institutions, the Army enhances healthcare services for the general population, sharing resources, expertise, and contributing to joint initiatives addressing public health chal-

lenges. The Army plays a crucial role in training healthcare professionals, thereby contributing to a robust healthcare workforce.

The Army is regularly called upon nationwide to participate in the desilting and cleaning of barrages, canals, and interconnected waterway arteries. It afforestation initiatives have effectively transformed extensive wastelands into cultivable areas, simultaneously nurturing saplings. A comprehensive afforestation campaign has been implemented along the border belt and other designated regions.

The Army assumes a crucial role in the domains of agriculture and animal husbandry, managing animal dairy, agriculture farms, and breeding high-quality milk-producing animals. Furthermore, the Army takes a lead in promoting sports, providing not only sports facilities but also coaching for promising young talent.

The Fauji Foundation, a self-sustaining welfare organization, significantly contributes to nation-building by supporting exservicemen, their families, and dependents of martyrs through revenue-generating industrial and commercial projects.

The Army Welfare Trust generates funds for the welfare and rehabilitation of orphans and widows of martyrs, disabled and retired personnel, while also creating employment opportunities for both retired soldiers and civilians. Addressing the challenges in Pakistan's education sector, the Army has played a substantial role. The Army Public Schools and Colleges System, encompassing 230 schools nationwide for children aged 3 to 18, accommodates a diverse student population, including civilians from various socio-economic backgrounds. This system contributes to improving education accessibility and quality, addressing the national issue of approximately 22.8 million out-of-school children.

Additionally, the armed forces play a pivotal role in establishing higher education institutes to impart quality education, collaborating with the Government of Pakistan through major universities such as the National University of Sciences and Technology (NUST), National University of Modern Languages (NUML), National University of Medical Sciences (NUMS), National University of Technology (NUTeCH), Bahria

Davos: 'When will you tax extreme wealth?' super-rich ask

University, and Air University.

In collaboration with the Khyber Pakhtunkhwa government, the Pakistan Army and Frontier Corps are actively involved in spreading knowledge across the province.

Under the "Ilam Tulo Da Para" (education for All) programme, nine pilot projects have been initiated in Mohmand, Tirah, Hasankhel, Dara Adamkhel, Karam, Janikhel, Tank, Sararogha, and Angar Adda. Over 4000 boys and girls have already benefited, with over 500 girls participating in digital skills courses at four centres. Additionally, 24 inactive schools have been re-activated, and under the Adult Learning Programme, 250 adults are receiving training in various courses. The Composite Youth Programme focuses on fostering creativity among youth through step-by-step extracurricular training. The Army is committed to making knowledge acquisition accessible to every child.

Despite being tasked with responsibilities beyond its traditional role, the Army utilizes its disciplined manpower, organizational proficiency, technical acumen, accountability, sincere intent, and extensive experience to make positive impacts in remote areas. This involves the development of roads, educational facilities, water supply projects, and the provision of medical services through Combined Military Hospitals (CMHs) and medical camps in regions like Gilgit-Baltistan, former FATA, Chitral, and Balochistan. The Frontier Works Organization stands as a military engineering entity, positioned as a significant science and technology command within the Army. Its mission encompasses diverse objectives, including civil, combat, structural, and military engineering projects, all overseen by a major general. Notably, the FWO took the lead in planning and constructing the Karakoram Highway, showcasing its proficiency in both civil and military infrastructure development for the Government of Pakistan and the Pakistan Armed Forces.

Simultaneously, the National Logistic Cell (established 1978) became vital for the swift movement of imported wheat from Karachi. Primarily composed of manpower from the Army, the NLC operates under the Planning and Development Ministry, collaborating with the Planning Commission. Beyond its role in transportation during emergencies and wars, the NLC plays a piv-

According to the World Inequality Report 2022, some 38% of the global increment in wealth between 1995 and 2021 went to the top 1%. Only 2% went to the bottom half, namely the 4 billion poorest people in the world

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THoMAs LATscHAn

e are surprised that you have failed to answer a simple question that we have been asking for three years: when will you tax extreme wealth?" begins the open letter by an initiative called Proud to Pay More. Directed at "global leaders gathering in Davos," it was handed over to world leaders gathered at the Swiss ski resort for the World economic Forum (WeF). The signatories are demanding higher taxes be levied on the super-rich. Notably, many of the signatories are among the wealthiest people in the world.

Proud to Pay More comprises at least 260 billionaires and millionaires who say that steps must be taken "to address the dramatic rise of social inequality." They say a "tipping point" has been reached, whose "cost to our economic, societal, and ecological stability risk is severe — and growing every day. In short, we need action now."

They say their drive for fairer taxes represents "a return to normality, " arguing that taxing the rich will "turn extreme and unproductive private wealth into an investment for our common democratic future." "every moment of delay entrenches the dangerous economic status quo, threatens our democratic norms, and passes the buck to our children and grandchildren," write the signatories, who include heiresses Valerie Rockefeller, Abigail Disney and Marlene engelhorn, an Austrian national whose forefather Friedrich engelhorn founded German chemicals company BASF. "Not only do we want to be taxed more but we believe we must be taxed more." engelhorn, who has criticized the fact that Austria does not have an inheritance tax, recently made the headlines when she said she wanted to redistribute €25 million ($27 million) of her inherited wealth. "I have inherited a fortune, and therefore power, without having done anything for it," she told reporters. She has set up a Good Council for Redistribution to develop solutions in the "interest of society as a whole."

THE RICH GET RICHER — AND RICHER AND RICHER The gap between the rich and the poor continues to widen worldwide. According to the World Inequality Report 2022, some 38% of the global increment in wealth between 1995 and 2021 went to the top 1%. Only 2% went to the bottom half, namely the 4 billion poorest people in the world. And after the outbreak of the COVID pandemic in 2020, global billionaire wealth rose more than ever. Around the world, there have already been several attempts to tax large fortunes more. For example, in the 2019

presidential campaign in the United States, Senator elizabeth Warren proposed an "ultra-millionaire tax" on every dollar of net worth above $50 million. But it isn't easy to implement such measures. "The signatories of the petition in Davos are mainly heirs who do not actively run a company, and therefore feel uncomfortable with great wealth that they have not generated themselves," explained Stefan Bach from the German Institute for economic Research (DIW) in Berlin. "But they tend to be isolated voices."

He said the vast majority of the super-rich were more reserved in this regard. Indeed, there was strong political resistance from business associations, which, thanks to their work with lobby groups, were generally well-connected to high-ranking politicians. "Many large fortunes are also tied up in business," Bach said.

The idea, business associations argue, is that low taxes for entrepreneurs provide incentives to invest and create jobs, meaning higher taxes could jeopardize jobs and investment — and potentially even lead to company heirs choosing not to run the company they could inherit. "This argument essentially stifles all possible political debates on wealth or inheritance taxes," Bach said.

EUROPE'S SHIFT TO RIGHT MAKES CHANGE UNLIKELY Generally, it does not make sense for a country to act alone when imposing taxes on large fortunes. "Bigger, international companies and, of course, the super-rich all play to the tune of international law," continued Bach, explaining that billionaires could easily relocate to other countries with more favorable tax legislation. "Nothing is gained if, in the end, it's only the well-behaved German small and mediumsized companies that get fleeced because they remain loyal to their country."

However, he pointed out that generating more income for state coffers through a balanced combination of tax increases on the top income bracket or with a wealth tax was possible. "But, of course, this can only be done in a way that is coordinated internationally," he said, adding that there had been some successful attempts to curb tax evasion by large corporations in 2021.

More than 130 countries, which together account for 90% of the world's economic output, had also agreed on a minimum 15% tax rate for companies, and in so doing were trying to prevent companies from just moving onto other countries with better tax rates.

Last year, several eU lawmakers proposed a similar global minimum tax on extremely high private wealth. But Bach doubted that there would be any developments on this front in the near future, and this was partly to do with the general shift to the right across europe. "There are hardly any leftwing majorities left," he said, explaining that when it came to tax measures, it was important to have conservative and liberal parties on board, but these were inherently more business-friendly. He said that in Germany, nothing would happen "in the foreseeable future," and it was "even more difficult to coordinate something like this on an international scale."

This article was translated from German.

otal part in the nationwide construction of roads, bridges, and grain storage facilities.

The Army has played a crucial role in providing valuable assistance during natural disasters and in the construction of roads and bridges. establishing communication infrastructure in Azad Kashmir and GilgitBaltistan exceeded the capabilities of civilian organizations. The Special Communication Organization was instrumental in preventing Azad Kashmir and GilgitBaltistan being isolated from the rest of the country by providing telephone, telegraph, and satellite communication services. Additionally, the SCO operates with a strategic defence orientation and significantly contributes to the country's economy.

The Pakistan Ordnance Factories (POF), a substantial industrial complex, stands out as one of the country's largest manufacturers of engineering tools, weapons, and ammunition. It plays a pivotal role in the national economy as the leading exporter of arms and ammunition. Heavy Industries Taxila (HIT), in collaboration with China, is actively involved in the production of defence-related goods, employing both military and civilian personnel in the manufacturing of armoured personnel carriers (APCs), tanks, and artillery guns. In 1998, the Pakistan Army was enlisted to revitalize the Water and Power Development Authority (WAPDA). Serving officers were brought in to manage the offices of the electricity board and vigilance wings, with the primary objective of recovering the organization from financial losses by extracting funds from defaulters.

Known for its rapid response capabilities in the aftermath of natural disasters, the Army consistently ranks among the first responders, delivering immediate relief and support to affected populations following earthquakes, floods, or other calamities.

A core responsibility is the execution of search and rescue operations. Specially trained personnel are dispatched to affected areas, skillfully locating and rescuing individuals trapped in debris or stranded in flooded regions. Precision, skill, and a profound commitment to human life underscore these operations.

Recognized as one of the country’s most transparent institutions, the Army places transparency at the forefront of its governance and accountability principles. Acknowledging

the significance of openness and accountability, the Army consistently endeavours to uphold these values, contributing to the overall welfare and resilience of the nation. The Pakistan Army has taken substantial measures to enhance public disclosure and information sharing. Regular updates on military operations, exercises, and official statements are distributed from ISPR through official channels, ensuring the public receives accurate and timely information. This commitment to openness serves to dispel misinformation and foster trust between the military and the civilian population. Transparency is closely tied to accountability, and the Pakistan Army has implemented robust internal mechanisms at various levels. Military personnel adhere to a strict code of conduct, and any instances of misconduct or ethical breaches are investigated. The accountability process is designed to maintain the highest standards of discipline and professionalism.

Financial transparency is a crucial aspect of accountability, and in alignment with broader national initiatives, the Army has made strides in budget transparency. Publicly accessible information on defence expenditures and budget allocations contributes to a clearer understanding of resource distribution and spending priorities.

Institutional reforms have been undertaken by the Army to bolster transparency and efficiency, with a focus on streamlining administrative processes, reducing bureaucratic obstacles, and enhancing decision-making structures. These initiatives contribute to a more transparent and accountable military organization.

Furthermore, the Army plays a pivotal role in facilitating the smooth conduct of elections and censuses. Leveraging their extensive resources, they effectively reach every corner of the country. The Army is called upon by civilian governments to provide such services, and allegations of self-initiated interference in elections are unfounded.

The sectors mentioned above offer just a glimpse of the diverse fields where the Army actively assists the civilian government, making significant contributions to the country's development and systems while steadfastly fulfilling its primary mandate of defending the nation.

Water is the new oil in the Gulf

The writer is a freelance columnist

Saudi Arabia, which accounts for over 60% of the GCC population, is now the third highest per capita water consumer in the world, behind only the U.S. and Canada

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TIME MAGAZINE

RAHA HAKIMDAVAR

N the arid desert landscapes of the Gulf, where oil has long been the region’s economic bedrock, a new narrative is unfolding—one where water’s increasing recognition as a critical and finite resource demands a reckoning. Under the most extreme climate scenario, temperatures in the region, already among the highest in the world and warming faster than elsewhere, could rise by nearly 6°C by the end of the century. Four of the six most water scarce countries in the world are in the Gulf—a phenomenon that is reshaping nearly every sector, from agriculture to energy—pushing leaders to tackle the issue in the face of climate change.

Water stress in the Gulf Cooperation Council (GCC) countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAe—is mostly driven by low supply. But it has been exacerbated by rapid population growth, which has nearly doubled in 20 years, alongside decades of skyrocketing incomes. Saudi Arabia, for example, which accounts for over 60% of the GCC population, is now the third highest per capita water consumer in the world, behind only the U.S. and Canada.

Water scarcity has led the GCC to heavily rely on food imports from countries that are facing their own water and climate uncertainties. An estimated 60% of the world’s irrigated agriculture faces extremely high-water stress, adding another layer of vulnerability. This has motivated many GCC countries to increase national agricultural production. Although arable land in GCC countries is less than 5%, average agricultural water use accounts for 70-80% of the region’s renewable water resources. Agricultural water demand is primarily met through the massive exploitation of groundwater, causing a significant lowering of groundwater levels. (A 2019 study using NASA satellite data revealed the Arabian Peninsula as the most stressed of the world’s 37 largest aquifers.)

In response to these realities, the Gulf is increasingly relying on seawater desalination. The GCC countries now generate about 40% of the world’s desalinated water from over 400 plants. Desalinated water provides some 42% of drinking water in the UAe, 70% in Saudi Arabia, 86% in Oman, and 90% in Kuwait. By 2025, Saudi Arabia aims to achieve a desalination capacity of 8.5 million cubic meters per day, equivalent to meeting the daily water needs of around 34 million households (four times the current number of households in Saudi Arabia). Desalination capacity of this volume requires multi-billion-dollar investments over many years.

But doubling down on desalination is a blessing and a curse. While desalination provides a crucial freshwater supply, the emissions and ecological costs cannot be ignored. By 2050, the worldwide emissions from desalination is expected to reach 0.4 billion tons of CO2 equivalents per year—equal to the carbon footprint of producing over 8 billion barrels of oil. The energy-intensive nature of desalination poses challenges as Gulf nations aim to reduce their greenhouse gas emissions and transition to sustainable energy sources.

Use of the more energy efficient reverse osmosis membrane-based desalination technologies, rather than the thermal variety using energy from plants, is growing but the region as a whole still relies on the more energy-intensive method. There are some bright spots; membrane desalination accounts for 50% and 60% of capacity in Saudi Arabia and Oman, respectively, and it continues to grow by the day.

Saudi Arabia’s planned smart city initiative, NeOM, will

rely on water from a reverse osmosis desalination facility entirely powered by renewable energy.

There is also the matter of brine, which is a byproduct of desalination. every 1 liter (0.26 gallons) of desalinated water requires 1.5 to 2 liters (0.4 to 0.53 gallons) of seawater intake—1 liter will be potable water and the rest will be brine. The brine is then typically dumped back into the sea.

It is estimated that around 55% of the world’s brine is produced by Saudi Arabia, the UAe, Kuwait, and Qatar. As a result, the waters of the Gulf are now believed to be 25% saltier than seawater elsewhere. The excess salt decreases oxygen levels in the water, suffocating marine life on the seafloor. More research is needed to better understand the ecological impact of brine.

Desalination also carries geopolitical threats. Changing policies related to energy distribution or fluctuations in the global oil market could impact the operation and management of desalination plants. They are also vulnerable to physical and cyber threats, and if they were to cease running, most GCC countries only have a few days of water reserves. The likelihood of a successful attack is low but the consequences nevertheless catastrophic. For these reasons, there is an increasing recognition of the need for holistic and sustainable water management strategies. The best course of action would focus on four key areas to reduce water security threats.

Firstly, that means reducing water demand through smart policies and conservation awareness campaigns. Recalibrating agricultural practices, promoting efficient irrigation methods, fixing excessive leakage in distribution networks, and considering imports for water-intensive crops are essential steps. That also means scrapping water subsidies and even enacting reasonable tariffs. Complementary regulatory measures, such as instituting green building specifications and establishing standards for water-efficient utilities, are also avenues to mitigate demand pressures.

Secondly, increasing and diversifying the water supply.

Treated effluent reuse for non-drinking water and groundwater replenishment are significant and untapped opportunities for the region. Currently about 40% of wastewater is being reused in the Gulf; the World Bank estimates that GCC countries could treat and reuse up to 90% of this effluent for agricultural, industrial, and domestic use. Although scarcer and variable, rainwater capture can also effectively replenish groundwater in some GCC countries.

Thirdly, investing in research and development to decarbonize desalination and reduce the environmental costs of brine. Accelerating the commercialization of less energy-intensive desalination facilities powered by renewable energy, increasing the overall efficiency of desalination technologies, and exploring ways to reduce and reuse brine effluent are key parts of that. Research into the social, cultural, religious, and political dimensions of these emerging water resources is also important to promoting their acceptance and adoption. Attitudes toward the reuse of wastewater are especially terse due to religious and cultural norms.

Fourthly, greater collaboration among GCC countries is essential. Collaborative efforts will allow these nations to pool their experiences, best practices, and innovative solutions to address common issues more effectively. Importantly, this would also enable the region to develop solutions that are culturally appropriate and uniquely suited to the Gulf, while also using science and technology as a diplomatic tool.

With a projected 30% population increase in the next decade, the Gulf must take significant steps to secure its water future. The water crisis has the potential to reshape regional priorities, affecting economic stability, political alliances, and social dynamics. But they also present an opportunity for innovation and adaptation. Leadership by GCC countries to decarbonize, diversify, and reduce the demand on their water resources will not only help the region adapt to increasing water security risks, but also provide tools for other arid countries dealing with similar challenges.

Raha Hakimdavar is senior advisor to the dean of Georgetown University Qatar, and dean of the Earth Commons Institute.

06 NEWS

CHINA, US HOLD ‘PRAGMATIC’ FINANCIAL TALKS AT START OF 2024

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BEIJING

STAFF CORRESPONDENT

HINA-US exchanges in financial and economic fields got off to a good start in the new year, with the world’s two largest economies signaling a deepening of engagement in various fields from financial stability to trade policies in the first month of 2024.

The interactions are what the Chinese and US societies as well as the international community are hoping for amid complex regional conflicts, Chinese observers said, calling on the two governments to encourage and nurture that momentum, and thus bring

Saturday, 20 January, 2024 | LAHORE

stability and offer businesses stable expectations for the year ahead.

Moreover, observers also pointed out that as Chinese officials and diplomats have consistently emphasized peaceful coexistence and win-win cooperation in developing bilateral ties, the US needs to meet China halfway, rebuild basic political mutual trust, and not categorize China as a “threat” and intensify sanctions against it.

MORE EXCHANGES: China and the US held the third meeting of the Financial Working Group from Thursday to Friday in Beijing, the first meeting of the working group in 2024, and its first face-to-face meeting held in China.

Iran launches air defence drill after Pakistan strikes

TEHRAN: Iran said on Friday that it successfully carried out an air defence drill using drones designed to intercept hostile targets in an area stretching from its southwestern to southeastern coasts, amid heightened tensions in the region. On Thursday, Pakistan launched strikes on terrorists’ hideouts inside Iran in a retaliatory attack two days after Tehran violated the country’s sovereignty by launching a strike in Balochistan that left two children dead and injured three girls.

In a statement, the Pakistan Army said the hideouts used by terrorist militant organisations, namely Balochistan Liberation Army (BLA) and Balochistan Liberation Front (BLF), were successfully struck in an intelligence-based operation, code-named — “Marg Bar Sarmachar”. AGENCIES

PID (I) 4363/23

The two engaged in professional, pragmatic, candid, and constructive discussions on issues related to the stability of the two countries’ currencies and finance, financial regulation, financial markets, cross-border payments and data, sustainable finance, antimoney laundering and counter-terrorism financing, global financial governance, and other key issues of common concerns, according to a statement on the official website of China’s central bank.

The meeting was co-chaired by Xuan Changneng, Deputy Governor of the People’s Bank of China (PBC) and US Treasury Assistant Secretary for International Finance Brent Neiman. Pan Gongsheng, governor of

the PBC also attended the meeting.

The two sides agreed to continue to maintain communications. China is willing to work with the US to implement the important consensus reached at the summit in San Francisco between the two leaders, promoting the healthy, stable, sustainable development of bilateral ties, Chinese Vice Premier He Lifeng said while meeting with the US delegation of the China-US financial working group in Beijing on Friday.

Both sides should continue to make good use of the financial working group mechanism, steadily accumulate achievements, and strengthen cooperation in the financial sector, He said.

Red Sea shipping attacks pressure China’s exporters as delays, costs mount PROFIT REUTERS

For Chinese businessman Han Changming, disruptions to Red Sea freight are threatening the survival of his trading company in the eastern province of Fujian.

Han, who exports Chinese-made cars to Africa and imports off-road vehicles from Europe, told Reuters the cost of shipping a container to Europe had surged to roughly $7,000 from $3,000 in December, when Yemen’s Iran-aligned Houthi movement escalated attacks on shipping. “The disruptions have wiped out our already thin profits,” said Han, adding that higher shipping-insurance premiums are also taking a toll on Fuzhou Han Changming International Trade Co Ltd, the company he founded in 2016.

The rupture of one of the world’s busiest shipping routes has exposed the vulnerability of China’s export-reliant economy to supply snarls and external demand shocks. In a speech at the World Economic Forum in Davos on Tuesday, Premier Li Qiang emphasised the need to keep global supply chains “stable and smooth”, without referring specifically to the Red Sea. Some companies, such as U.S.based BDI Furniture, have said they are relying more on factories in places such as Turkey and Vietnam to mitigate the impact of the disruptions, adding to recent moves by Western countries to reduce dependence on China amid geopolitical tensions.

At stake for China now is the danger that other firms will follow suit and reassess their de-risking strategy, opting potentially to shift production closer to home, an approach known as “near-shoring”.

“If it’s permanent, and it could be permanent, then the whole mechanism will be readjusted,” said Marco Castelli, founder of IC Trade, which exports Chinese-made mechanical components to Europe. “Some (companies) may also consider moving more production to India, which is one

week closer to Europe. Companies need to reevaluate everything.”

Further Red Sea disruptions would pile pressure on a struggling Chinese economy already contending with a property crisis, weak consumer demand, a shrinking population and sluggish global growth.

With Europe and Africa trade accounting for 40% of Han’s overall business, he said he had been pleading with suppliers and customers to shoulder some of the additional costs to keep his company afloat. Shipping times for some orders were delayed by up to several weeks, he said. Compounding the pain for some firms, the disruptions come as many are navigating a logistics challenge ahead of Lunar New Year in February, when some 300 million migrant workers go on leave and almost all factories in China shut, creating a scramble in the preceding weeks to get goods shipped.

Mike Sagan, the Shenzhen-based vice president for supply chains and operations at KidKraft, a maker of outdoor play equipment and wooden toys, said many European customers are slamming on the brakes, saying: “Don’t ship anything, hold it”. “A lot of suppliers, they’re screaming about money today,” said Sagan, whose company supplies retailers including Walmart and Target.

A worry for larger manufacturers, he said, is the snowball effect on smaller suppliers with tight margins, as they would be among the last to receive payments but are critical to the supply chain. Attacks by Yemen’s Houthi militants on ships in the Red Sea are disrupting maritime trade through the Suez Canal, with some vessels re-routing to a much longer East-West route via the southern tip of Africa.

Rerouting vessels from the Red Sea – the shortest route from Asia to Europe via the Suez Canal – around the Cape of Good Hope can add two weeks to shipping schedules, reducing global container capacity and cleaving supply chains as it takes longer for vessels to return to ports to reload. That probably means delays for goods scheduled to arrive on Western shelves in April or May. Some logistics companies are already reporting a container shortage at Ningbo-Zhoushan port in China, one of the world’s busiest by cargo tonnage, according to BMI.

In the financial sector, both parties may find it relatively easy to reach consensus that aligns with their mutual interests. Therefore, it is easier to establish a framework of trust starting from this area, and that’s a good start for further interactions, Gao Lingyun, an expert from the Chinese Academy of Social Sciences who closely follows China-US relations, told the Global Times on Friday.

Communications in economic and trade areas have also been accelerated. On January 11, the Chinese and US commerce chiefs held their first talks in 2024, during which the two ministers had “in-depth and pragmatic” communication on economic and trade issues of concern to each side.

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FAIZABAD COMMISSION: SC TO HEAR EXTENSION PLEA NEXT WEEK NEWS

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ISLAMABAD

STAFF REPORT

HE Supreme Court (SC) will take up the federal government’s plea seeking an extension in the committee’s tenure probing the Faizabad sit-in, next week. The committee was scheduled to submit its report in the third week of January.

On January 8, the commission investigating the Faizabad Interchange sit-in in Islamabad, sought a month extension from the Supreme Court (SC) to complete the probe.

According to details, the federal government submitted a formal request to Supreme Court (SC), seeking extension to complete the probe and identify those who planned, financed, and supported the 2017 Faizabad sit-in. A three-member bench of the Supreme Court will take up the plea next week.

The committee has so far summoned former ISI director-general Lt.General (retired) Faiz Hameed, former prime ministers Shahid Khaqan Abbasi, She-

hbaz Sharif and others.

Earlier on Jan 5, former director general ISI retired Lt-Gen Faiz Hameed submitted a written response to the inquiry commission. The federal government had established this Faizabad commission, headed by retired Inspector General Akhtar Ali Shah, in response to the Supreme Court’s rejection of the FactFinding Committee report.

Constituted under Section 3 of the Pakistan Commission of Inquiry Act, 2017, the commission is led by Syed Akhtar Ali Shah, a former civil servant, who also served as Khyber Pakhtunkhwa’s police chief.

It also comprises Tahir Alam Khan, also a former police officer, and Khushal Khan, an additional secretary at the Ministry of Interior.

Back on November 08, 2017, Tehreeke-Labbaik Pakistan (TLP) organized a sitin at Faizabad interchange against the amendments in the Election Bill 2017, changing the word oath to declaration. The protesters demanded the resignation of Minister for Law and Justice Zahid Hamid to “protect the identity of the country”.

As a result of the protest, the then PML-N government had to sack its law minister Zahid Hamid. The Supreme Court had taken suo motu notice of the sit-in on November 21, 2017. Later, a division bench led by Justice Qazi Faez Isa on February 6, 2019 unveiled its verdict in the sit-in case, criticizing the role of intelligence agencies in the saga.

Soon after assuming office of the chief justice of Pakistan (CJP) in September this year, Justice Isa listed for hearing the petitions that had been filed against the SC’s February 2019 verdict.

On Nov 1, the bench rejected the fact-finding committee formed by the government to investigate the matter and ordered it to form a commission of inquiry to unveil the mastermind behind the sit-in.

Why are Pakistan’s furnace oil exports booming? g

PPP to facilitate destitute, end subsidies of elites after elected to power: Bilawal LIAQUATPUR

STAFF REPORT

Chairman Pakistan People’s Party (PPP) Bilawal Bhutto Zardari has said, after elected to power, his party would facilitate the marginalized sections of the society and end Rs1500 billion subsidy being ‘given’ to elites every year. While addressing a public gathering in connection with the General Elections 2024 in Liaquatpur on Friday, the PPP Chairman said that his party presented a 10-point agenda to combat inflation, unemployment and poverty. He said that Rs. 300 billion were spent on seven ‘unnecessary’ federal ministries, vowing to abolish the same. He said that Rs300 billion being wasted on unnecessary ministries would be spent on welfare of the public.

Benzair Bhutto and Asif Ali Zardari had always fulfilled their promises with the people, Bilawal said adding that he would also live up to the expectations of the people after ‘becoming’ the prime minister.

The PPP’s would give free electricity up to 300 units and establish three million houses for the needy people, he said adding that Benezir Income Support Programme was launched earlier and now farmers will get the card. The Chairman PPP said that his party’s government provided financial assistance to the people through Benazir Income Support Programme in the previous tenure and now it would issue, Mazdoor Card, Kisan Card and Youth Card “Our government would provide financial support to unemployed youth for one year through Benazir Youth Card,” he added. The PPP chief also promised to start hunger eradication program at Union Councils level.

Bilawal also took a jibe on the Pakistan Muslim LeagueNawaz (PML-N) and said that its Supremo Nawaz Sharif wanted to be the prime minister for the fourth time at any cost. “He (Nawaz Sharif) has done nothing during his three tenures and now he wanted to be the premier for the fourth time,” the PPP chairman said.

HALFWAY INTO YEAR, PAKISTAN’S 6MFY24 FURNACE OIL EXPORTS OUTSTRIP ALL OF FY-2023’S NUMBERS PROFIT

DANIYAL AHMAD

Pakistan is witnessing a historic surge in its exports of furnace oil — or fuel oil, as it is also known.

The first half of the fiscal year 2024 has already eclipsed the total volume exported in the entirety of the previous fiscal year.

What is behind this phenomenon?

The answer lies within the evolving preferences of power plants, which have pivoted towards more cost-effective and efficient alternatives, leaving the once-dominant furnace oil plants languishing in their wake.

In the six-month period spanning from July to December 2023, Pakistan has dispatched a mind-boggling 433,945 million tonnes of furnace oil to foreign shores. This figure utterly overshadows the 276,979 million tonnes it exported throughout the entire fiscal year of 2023 — from July 2022 to June 2023.

This staggering quantity also signifies the zenith of furnace oil exports in the annals of Pakistan’s history.

So, one might ask — what precisely is going on?

The first thing at play is Pakistan’s plummeting electricity generation is in freefall. The most recent example being December’s generation output being the nadir since December 2017. The most recent manifestation of this decline was in December, when generation output hit its lowest point since the same month in 2017. This downturn has led to a multitude of power plants lying idle, particularly those at the lower end of the National Transmission & Despatch Company’s merit order. The plants operating on

furnace oil — colloquially known as residual fuel oil (RFO) plants — languish at the very bottom of the merit order.

“The low priority and merit order list stipulates that the low or no furnace oil consumption trend in Pakistan will persist in the future,” clarifies Aftab Hussain, Director and former Managing Director & CEO at Pakistan Refinery.

The reason for their relegation to the bottom? Their cost of electricity generation dwarfs that of other alternatives.

“RFO plants generate electricity at a rate of Rs 38/kWh, in stark contrast to the reliquified natural gas plants which operate at Rs 26/kWh, and the coal plants that generate electricity at Rs 17/kWh and Rs 12/kWh, contingent on whether they utilise imported or local coal,” expounds Mohammad Aitazaz Farooqui, the Head of Research at Providus Capital.

“The RFO plants had a paltry share of 2.4% across the calendar year 2023 due to their exorbitant costs. Their current Rs 38/kWh is a staggering increase from the 26/kWh from December 2022,” adds Faizan Kamran Khan, the dynamic Chief Executive Officer at FRIM Ventures.

Pakistan also harbours longterm plans to phase out furnace oil altogether, with initiatives such as the Indicative Generation Capacity Expansion Plan 202231. This is further bolstered by the burgeoning interest in Tharbased power plants that Pakistan has witnessed of late.

“The influx of new nuclear plants, and coal plants such as Thal Nova, Shanghai Powergen, and Thar Energy have further diminished the appeal of RFO plants,” asserts Kamran.

Currently, there is a dearth of

data regarding the final destinations for Pakistan’s furnace oil, and the foreign exchange it’s accruing. However, the numbers are likely to be trifling — that is, if they exist at all. Furnace oil is a low to negative margin product for local refineries. Its survival is solely due to it being an unavoidable byproduct of refining crude oil at a refinery. Modern refineries across the globe produce minimal to no furnace oil, however, refineries in Pakistan are yet to attain such technological prowess.

At best, it is a nuisance. At worst, it obstructs storage facilities and compels refineries to find a means to discard it before they can resume refining crude oil.

The cost of transporting the furnace oil also contributes to the loss in some instances.

“The export of furnace oil is the last resort for the refineries to operate and safeguard their refinery margins from motor spirit and high speed diesel production until their upgrade projects materialise in the coming six years period as per the Refinery Policy (2023/4),” adds Hussain.

The only deviations to the continuous increases in export are likely to be the sporadic resurgence of local demand, particularly when other sources of fuel are incapable of meeting demand or on the rare occasion that Pakistan’s electricity demand spikes to levels closer to its total installed capacity.

“Ephemeral surges in local demand may materialise under the influence of seasonal variations or extraordinary events, yet its persistence and sustainability remain dubious. It’s akin to the annual canal cleaning ritual that occurs in January and February,” Hussain muses.

Pervaiz Elahi expresses unwavering support for Imran Khan ISLAMABAD

STAFF REPORT

In a defiant stance during his appearance in an anti-corruption court on Friday, the incarcerated Central President of Pakistan Tehreek-e-Insaf (PTI), Chaudhry Pervez Elahi, declared his unwavering support for ousted prime minister Imran Khan.

Elahi, a key figure within PTI, expressed solidarity, taking a veiled swipe at political rivals Nawaz Sharif and Bilawal Bhutto-Zardari. “I am standing

with Imran Khan. For fear of Imran Khan and PTI, both ladlas (darlings) have lost sleep,” Elahi remarked, addressing the alleged unease of Sharif and Bilawal.

Speaking informally to journalists, Elahi emphasised his loyalty, stating, “I have never left anyone in difficult times; I stand with Imran Khan.

The former chief minister of Punjab raised concerns about the democratic process, questioning the denial of PTI, the largest political party in the country, to contest elections. Elahi confidently

predicted success for PTI nominees on February 8, expressing determination.

Elahi did not mince words in his criticism of the Pakistan Muslim LeagueNawaz (PML-N), stating that the sparse attendance at PML-N public gatherings is evidence of the public’s rejection of these “ladlas” (darlings).

He accused political opponents of resorting to fear tactics, claiming that the fear of Imran Khan and PTI has made sleep “haram” (forbidden) for them.

Responding to allegations of inter-

ference in PTI’s election campaign, Elahi asserted, “We are not being allowed to run the election campaign with full freedom. The houses and election offices of our candidates are being raided.” He questioned the motives behind spreading fear and panic within PTI, challenging those responsible.

Despite the challenges, Elahi declared PTI’s readiness for political competition and affirmed their full participation in the upcoming national and provincial assembly elections.

Saturday, 20 January, 2024

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Shipping agents defend charges after KPT Chairman’s critique

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UNIFORM CHARGES CANNOT BE IMPLEMENTED DUE TO CONCERNS ABOUT CARTELISATION: PSAA PROFIT

GHULAM ABBAS

The Pakistan Ship’s Agents Association (PSAA) has strongly responded to recent allegations of charging exorbitant rates traders by Chairman Karachi Port Trust (KPT). Expressing surprise at the one-sided press coverage, of their meeting with the KPT on January 11th, PSAA emphasized that the media’s coverage seemed to rely on a Karachi Chamber of Commerce and Industry’s (KCCI) press release, neglecting input from other stakeholders and violating journalistic norms.

PSAA stated that KPT, as a landlord port, is not a regulator; thus, shipping lines and agents are not obligated to report to or be regulated by KPT, as demanded by As per PSAA, the shipping sector in Pakistan adheres to various regulations, reporting to entities such as the State Bank of Pakistan, Tax Authorities, and Pakistan Customs. Responding to the allegations, the PSAA clarified that outward remittances are under the State Bank of Pakistan’s authorization. The PSAA rejected KCCI’s demand for uniform charges, citing potential cartelisation concerns and emphasizing adherence to Competition Commission of Pakistan’s laws.

PSAA expressed concerns that the allegations by KCCI, supported by KPT, could negatively impact foreign shipping lines’ interest in Pakistan, potentially jeopardizing trade and tarnishing the country’s business-friendly reputation.

This statement of PSAA follows Chairman KPT’s recent critique of shipping companies for allegedly overcharging traders. The KPT Chairman, in that meeting, demanded details justifying charges from shipping companies within a 10-day timeframe.

During the meeting, KCCI President Iftikhar Ahmed Sheikh voiced concerns, proposing changes to “free days” and advocating for exemptions on Saturdays, Sundays, and public holidays. Sheikh urged transparency in charges, uniform fees through stakeholder consultations, and addressed issues of reducing shipping charges, lowering security deposits, and expediting container security deposit refunds.

According to the statement earlier issued by KPT, representatives of all the shipping companies failed to defend their position during their meeting with KPT at the KPT office. Sheikh proposed establishing an autonomous regulatory body to monitor shipping companies. That meeting involved key representatives from KCCI, KPT, Customs, shipping associations, and terminal operators, highlighting the urgency and complexity of the discussed issues.

PML-N likely to unveil its written manifesto in next couple of days: Irfan Siddiqui

ISLAMABAD: Senior Pakistan Muslim LeagueNawaz leader Senator Irfan Siddiqui said on Friday that his party will unveil its written manifesto in the next two days. Talking to a private news channel, he said that his party would win the general elections based on its commendable performance. PML-N would come to power with the help of public voters to resolve the issues of common people and remove the sense of deprivation among its people living in remote areas, he added. He said that his opponents had performed poorly during their government in the past and they could not compete with PML-N again.

In response to a question, he said that if the voter turnout increases in this election, it will be a big success for all political parties where women, men and youth need to participate equally. STAFF REPORT

Agencies issue security alert for Baloch protesters in Islamabad

ISLAMABAD: The intelligence agencies have issued a security alert for the participants of a protest being held these days in the Red Zone area of Islamabad, reported on Friday. The Baloch Yakjehti Council (BYC) and Balochistan Shuhda Forum (BSF) have been staging a protest camp outside the Islamabad National Club for the last several days. According to the letter by the agencies, due to tension on the IranPakistan border, there is a security threat as anti-national elements and terrorists can target these protest camps to sabotage peace and order in the country. STAFF REPORT

PSO starts new year with a twin crisis of receivables and payables g

PSO’S RECEIVABLES RISE TO RS 853 BILLION WITH PAYABLES COMING IN TO TUNE OF RS 142BN PROFIT

AHMAD AHMADANI

As the New Year unfurls itself, Pakistan State Oil (PSO) finds itself ensnared in a formidable conundrum — a burgeoning pile of customer receivables amounting to a staggering Rs 853 billion, juxtaposed with a daunting Rs 142 billion of payables it has accrued with its suppliers. Among the latter, PSO was indebted to four different refineries for Rs 37 billion — a sum that has surpassed its due date. This was the most acute crisis the company had ever faced, and that too within a year after PSO had received a lifeline of Rs 27 billion from the Govern-

ment of Pakistan in March 2023.

It is crucial to note that we have made concerted efforts to solicit a response from PSO, to which they have agreed, but have yet to deliver. It is equally crucial to underscore that accounts payable and accounts receivable are two facets of the same financial prism. While accounts payable represent the funds your business owes to suppliers, accounts receivable encapsulate the money owed to your business by its customers.

PSO is not required to amass the entirety of the Rs 853 billion to settle the Rs 142 billion. The specifics of PSO’s cash flows remain elusive as the company has not filed its financials beyond September

30, 2023. However, PSO does have recourse to both syndicated loan facilities and periodic financial injections from the Government of Pakistan. Now, let’s delve into the numbers.

Turning our attention to the receivables, the primary debtor of PSO is Sui Northern Gas Pipeline (SNGPL), with outstanding dues amounting to Rs 571 billion, of which Rs 375 billion is overdue. The power sector of Pakistan owes PSO Rs 187 billion, with state-owned generation companies and the Hub Power Company (HUBCO) responsible for Rs 72 billion and Rs 18 billion respectively.

The Government of Pakistan and Pak-

istan International Airlines (PIA) also feature on the list, with the former owing PSO Rs 66 billion and the latter Rs 28 billion.

On the flip side, PSO’s payables are categorised into two types: those owed to local refineries and those to international suppliers.

On the domestic front, PSO owes Rs 22 billion to Pak Arab Refinery (PARCO), Rs 8 billion to Pakistan Refinery (PRL), and Rs 7 billion to Attock Refinery (ARL) — all of which are overdue. PSO also owes Rs 585 million to the ENAR Petroleum Refining Facility in Karachi. One of the aforementioned refineries has reportedly taken umbrage at PSO’s delayed payments and, according to our anonymous sources, has

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

suspended its jet fuel supplies to PSO. If accurate, the cessation of jet fuel supplies could have immediate repercussions, as the jet fuel stocks at airports in Lahore, Faisalabad, and Multan are anticipated to require replenishment. We have endeavoured to contact the refinery in question, but no response has been forthcoming.

Externally, PSO’s predicament is at its most critical. The company’s cumulative payables to the Kuwait Petroleum Corporation (KPC) and its standby letters of credit for liquified natural gas payments amount to Rs 141 billion. According to sources, this is the payment that PSO has urged the government to prioritise in terms of assistance.