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AMID BENEFITS OF 1ST PHASE, PAKISTAN-CHINA GEAR UP FOR NEXT PHASE OF CPEC, SAYS PM KAKAR thursday, 25 January, 2024 i 13 Rajab, 1445

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Stresses Pakistan needs to focus on opportunities, including BRI, relocation of Chinese industr y

Highlights economic revival, transformation of tech, and taxation reforms as priorities of his govt

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ISLAMABAD

staff RepoRt

ARETAKER Prime Minister Anwaarul Haq Kakar on Wednesday said that Pakistan was harvesting the benefits of the first phase of China Pakistan Economic Corridor (CPEC) project and engaged with China for the execution of the next phase.

“We have already achieved the CPEC’s first phase and we are benefiting from its early harvest projects. We are entering the second phase. We do need more deliberations when it comes to the second phase,” the prime minister said in an interview with China Global Television Network (CGTN) during his visit to Davos to attend the World Economic Forum (WEF).

Premier Anwaarul Haq Kakar said that for second phase of CPEC, road and air connectivity around the industrialization projects were required.

“Both sides are engaged and we have developed a lot of connectivity – road, air and rest of connectivity corridor. We are benefiting from the ecosystem of doing trade with one another,” he remarked.

Responding to a question regarding his viewpoint about the Chinese economy, PM Kakar said, “I am always sanguine about it.

There are 1.5 billion consumers and 1.5 bil-

lion producers… How can you divorce 1.5 billion people from 8 billion people? It has to remain connected.”

He said being a huge marketplace, both China and the world were interested in each other. To a question about his government’s priorities, the prime minister highlighted the economic revival, the transformation of technology and taxation reforms.

He said Pakistan was on the middle ground amidst the discourse between Global North and South, and other conflicts in the

region. Domestically, he said, the government needed to earn more and spend less.

The prime minister said that Pakistan should remain focused on taking the advantage of opportunities in the region, including the Belt and Road Initiative (BRI) and the relocation of Chinese industry.

He advocated the policy envisaging encouraging business and providing them electricity on competitive price to help the businesses produce competitive goods for export to the international market.

Rs 15.00 | Vol XIV No 207 I 8 Pages I Karachi Edition

China all set to work with Pakistan to upgrade CPEC: Wang Wenbin

China on Wednesday said it was all to work with Pakistan for upgrading the China-Pakistan Economic Corridor (CPEC) and to accelerate the building of an even closer China-Pakistan community with a shared future in the new era.

Responding to a question during his regular briefing, Chinese Foreign Ministry Spokesperson Wang Wenbin said, “China stands ready to work with Pakistan to deliver on the important common understandings between the leaders of the two countries, deepen political mutual trust, and expand practical cooperation.”

Talking about the recent visit of Chinese Vice Foreign Minister Sun Weidong to Pakistan, he said that Sun Weidong visited Pakistan from January 20 to 22.

The Chinese Vice Foreign Minister paid courtesy calls on President Arif Alvi, Prime Minister Anwaar-ul-Haq Kakar, Chairman of the Joint Chiefs of Staff Committee General Sahir Shamshad Mirza,

Chief of the Army Staff General Syed Asim Munir and Foreign Minister Jalil Abbas Jilani to have in-depth exchanges of views on the bilateral relations and issues of mutual interest, the spokesperson added.

Wang Wenbin said that the Chinese vice foreign minister co-chaired the Fourth Meeting of the CPEC Joint Working Group on International Cooperation and Coordination with Foreign Secretary Muhammad Syrus Sajjad Qazi.

“China and Pakistan are all-weather strategic cooperative partners,” he said.

“China appreciates Pakistan’s firm commitment to the one-China principle, supports Pakistan in defending its sovereignty, independence and territorial integrity, and supports its unity, stability, development and prosperity.”

During the visit, the Chinese vice foreign minister and Pakistani leaders renewed commitment for the success of CPEC and expressed the desire for enhanced cooperation in the areas of information technology, economy, agriculture, and human resource development.

Prime Minister Kakar said the government was also focusing on the Special Economic Zones and formulating policies for the advantage of the foreign direct investment (FDI).

He said divide between Global South and North needed to be bridged for mutual

co-existence.

To yet another question, the prime minister said Pakistan was heading towards general elections and wished well for the contestants with a hope that they would have a plan for economic revival in their respective agendas.

BEIJING

staff RepoRt

As Bjarke leaves Daraz, more layoffs on cards at Pakistan’s biggest eCommerce company g

Up to 25% workforce at Daraz expected to be slashed, including people in senior management PROFIT

Nisma Riaz & taimooR HassaN

Pakistan’s biggest eCommerce company Daraz is going through management changes with the CEO Bjarke Mikkelsen leaving the company, and layoffs including in the higher management are on the cards as the company looks to cut costs.

Earlier this morning, Bjarke announced that he has stepped down as the CEO of e-commerce platform Daraz after eight years, with James Dong, the CEO of Lazada Group, another subsidiary of Alibaba, taking over as the acting CEO of Daraz in the interim.

While addressing his employees, Mikkelsen said, “My North Star has al-

ways been to build Daraz into a business that is strong enough to survive in our markets for the long term. This is the reason I’m now handing over the keys to the next generation of leaders in the company and my good friend James Dong, who will take over as acting CEO and work on a deeper integration between Daraz and our sister companies.”

The announcement points towards ‘personal reasons’ for the CEO’s decision to resign and highlights that this decision will enable the company to achieve a more concentrated strategy and streamlined business model. “I firmly believe that this structure is optimal for ensuring Daraz’s long-term success. Now, I will dedicate some time to

At least nine dead at UN complex as Israeli forces advance through Khan Younis GAZA

ReuteRs

prioritise my family and offer support to my exceptional wife in her new career,” Mikkelsen said.

According to a statement from Bjarke, the incoming interim CEO will work on a deeper integration between Daraz and sister companies Lazada, Trendyol, AliExpress and Alibaba.com.

Sources affiliated with Daraz have said that the outgoing CEO had been acting mostly as a figurehead at Daraz, implementing decisions given by bigshots at Alibaba. A former investment banker, Bjarke had been at the helm of Daraz for eight years. Daraz is a market of five countries – Pakistan, Bangladesh, Myanmar, Nepal and Sri Lanka – having over 450 million population.

At the same time, there are reports that Turkish eCommerce company Trendyol has been in talks to takeover Daraz. There are even reports that Daraz now operates under Trendyol, which is also an Alibaba Group company, 86% owned by the Chinese tech-

nology giant. Bjarke leaving the company could be a precursor to Trendyol taking over the management of Daraz. Daraz has not responded to Profit’s request for comment on Trendyol acquisition.

IS THERE MORE TO THIS DEVELOPMENT? With Bjarke leaving the company, there are also reports of Daraz announcing its annual layoffs spree, with plans to let up to 25% of its global workforce go. Without dispelling that the layoffs wouldn’t happen, representatives from Daraz only said that no layoffs have happened as of now.

Credible sources tell Profit that the company is planning to lay off around 25% of its employees at Daraz globally, which could be 250-400 people in Pakistan. Other sources have quoted as high as 800 people that Daraz could be laying off in Pakistan, including people holding C-level positions in the company such as Ammar Hassan Khan, their chief marketing officer.

Tank shells hit a UN training centre sheltering tens of thousands of displaced people in Khan Younis on Wednesday, killing at least nine people and wounding 75, a senior UN relief official said, as Israeli forces advanced through the southern Gaza city. Israeli forces cut off southern Gaza’s main hospitals in their assault, Palestinian officials said, and closed the main escape route for hundreds of thousands of residents and people who have sought refuge in the city. Footage circulating among Palestinians showed black smoke pouring into the sky above the training centre, run by UNRWA, the UN relief organisation for the Palestinians. An UNRWA team trying to reach the centre was blocked, the organisation’s director of Gaza affairs, Thomas White, said. In response to questions about the shelling, the Israeli military said the wider area was a significant base of Hamas fighters. “Dismantling Hamas’ military framework in western Khan Younis is the heart of the logic behind the operation,” it said. Several sources had earlier told Reuters that Israel and the Hamas group that runs Gaza had made some progress in proxy talks on a 30-day ceasefire, during which Israeli hostages and Palestinian prisoners would be freed and more aid would enter the enclave. But that prospect appeared distant on Wednesday. In their biggest operation in a month, Israeli tanks have pushed through Khan Younis, where many Palestinians are sheltering after leaving the north – the early focus of the war. Their main target appears to be the area around Khan Younis’ longstanding refugee camp, which includes the Nasser and Al-Amal hospitals and also the training centre run by UNRWA.

Negative social media propaganda ’causes’ uncertainty, hopelessness: COAS g g

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Says armed forces fully prepared against any threat, conspiracy

Urges youth to believe they belong to a great nation and are ‘torchbearers of bright traditions of country ’ ISLAMABAD

staff RepoRt

Chief of Army Staff (COAS) General Asim Munir on Wednesday said “negative propaganda” on social media was aimed at creating uncertainty and hopelessness in the country, the military’s media wing and staterun Radio Pakistan reported.

COAS General Asim Munir passed the remarks at the Pakistan National Youth Conference in Islamabad. The event was also attended by caretaker Prime Minister Anwaarul Haq Kakar.

During his address, the army chief stressed the need for double-checking news on social media. He said that without proper research and positive thinking, there would be chaos in the society, a ISPR’s statement said. He asserted that the armed forces of Pakistan were fully prepared against any threat and conspiracy. Pakistan would never

compromise on its sovereignty, he added.

COAS Munir expressed full confidence in the “bright future of Pakistan”, highlighting that Allah Almighty had bestowed Pakistan with numerous mineral resources, agriculture and young human capital.

“He said the sole objective behind the creation of Pakistan was that our religion, civilization and culture were totally different from that of Hindus but it does not mean that we should adopt Western culture. He said the youth should trust their country, nation, culture and civilization,” the ISPR release said.

The army chief further stated that the youth of Pakistan should believe that they belong to a great country and nation, adding that youngsters were the “torchbearers of bright traditions of the country” as well as the “true outcome of the dreams of Allama Iqbal and Quaid-i-Azam”.

Gen Munir added that the armed forces could fight terrorists but needed “coopera-

tion and support from the entire nation”.

Separately, a statement issued by the Prime Minister’s Office later said the army chief underscored that the youth was Pakistan’s biggest asset, and all optimism of a brighter future was associated with them.

He asked the youth to shun “despondency” and advised them to partake in building the nation through discipline, and a genuine quest for knowledge.

The army chief recounted the sacrifices made by the nation to counter the menace of terrorism and cautioned against “machinations of Pakistan’s ill wishers contributing towards extreme polarisation within the society”, the PMO statement said.

Meanwhile, PM Kakar appreciated the role of the armed forces in the fight against the menace of terrorism with full commitment and professional excellence.

“Pakistan’s successes in the war against terrorism would not have been possible with-

out the participation and support of the youth which makes 65 per cent of our population,” the PM was quoted as saying.

He affirmed that as responsible citizens of Pakistan, “we must all reject and collectively fight the vicious propaganda onslaught that the enemies of Pakistan have unleashed against Pakistan in the re-

cent past”.

“Youth can play a constructive role in dealing with this emerging national security challenge provided they remain focused, and fact-checked all details through authentic information from the state institutions rather than falling prey to propaganda,” the premier added.

02 NEWS

Thursday, 25 January, 2024 | KARACHI

GOVT PLANS UP TO 41PC GAS PRICE HIKE AMID IMF LOAN CONDITIONS g

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INCREASE EXPECTED TO CONTRIBUTE TO INFLATION, WHICH IS ALREADY A CONCERN IN CURRENT MARKET PROFIT

NewS DeSk

HE government is set to implement a significant increase in gas prices, which could rise by an average of up to 41% by mid-February.

This decision is part of the conditions tied to the ongoing $3 billion loan programme with the International Monetary Fund (IMF).

This increase is expected to contribute to inflation, which is already a concern in the current market. The IMF has emphasized the necessity of raising gas prices to address the growing issue of circular debt.

This would be the second fuel cost hike since November 2023. It is notable that Pakistan needs to implement its gas price in-

KSE-100 index gains over 300 points amid positive investor sentiment

crease by February 15, 2024, to meet IMF requirements.

IMF data indicates that the circular debt in the gas sector had reached Rs2.1 trillion, or 2.5% of the GDP, by the end of the last fiscal year, marking a 28% year-on-year increase.

State-owned gas distribution companies, including Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC), are expected to raise gas prices.

SNGPL may increase prices by 41% or Rs506 per million British thermal units (mmbtu) to an average of Rs1,753 per unit.

SSGC might raise fuel prices by 15% or Rs226 per mmbtu to an average of Rs1,696 per unit.

The price hikes are anticipated to help

these companies address their revenue shortfalls. For instance, SNGPL, with a shortfall of Rs251.32 billion, is expected to generate additional revenue through these tariff increases.

Similarly, SSGC, with a shortfall of Rs65.90 billion, plans to cover this deficit through raised prices.

Currently, the government provides subsidized gas to residential consumers and fertilizer manufacturers, while commercial and industrial consumers face higher tariffs under the cross-subsidy formula.

The IMF advises eliminating the crosssubsidy equation and implementing a uniform gas price for almost all consumers. The recommended changes include semi-annual gas tariff adjustments, eliminating subsidies to the fertilizer sector, phasing out captive power usage, and establishing uniform rates for export and non-export sectors.

The government is also expected to allocate Rs310 billion to government-owned

Govt raises Rs87.79b from Ijara Sukuk auction g

AMOUNT RAISED WAS SLIGHTLY LOWER THAN TARGET OF RS100 BILLION

PROFIT

MoNitoRiNg DeSk

The Pakistan Stock Exchange (PSX) experienced a significant rally on Wednesday, as the benchmark KSE-100 index soared by 368.21 points, reflecting a strong positive sentiment among investors.

The index, which is a key indicator of the market’s health, witnessed a notable increase, underscoring the growing investor confidence in the Pakistani market. Detailed data from the PSX revealed that by 12:04 pm, the KSE-100 index had risen sharply by 512.78 points, an increase of 0.8 percent.

This surge pushed the index to 64,967.0, up from its previous close at 64,454.22. Despite a minor pullback, the market closed on a high note at 64,822.43, registering a gain of 368.21 points or 0.57 percent from the previous close. This rally at the PSX is a clear indication of the strengthening investor confidence in Pakistan’s economic environment and the market’s potential for continued growth.

JDW Sugar Mills announces entire project land sale of paper pulp subsidiary PROFIT

NewS DeSk

JDW Sugar Mills on Wednesday announced that the shareholders of its paper pulp subsidiary, (FPML) granted the disposal and sale of the company’s entire project land – 243 Kanals and 18 Marlas situated at Mouza Mangowal, Tehsil and District Gujrat.

According to a notice sent to the Pakistan Stock Exchange (PSX), the FPML’s land will be sold in parts or their entirety, to the prospective buyer under the guidelines and procedures set out by the company’s board.

JDW Sugar Mills annual report 2023 suggests FPML, after obtaining the members’ approval, sold its entire assets (building, plant, and machinery) last year for Rs 1.6 billion (inclusive of taxes), except the project land, in response to the tender notice published in the newspapers. FPML also indicated selling its entire project land. JDW Sugar Mills controls 57.67% of the shareholding in FPML – it is the only subsidiary in which JDW does not control 100% of the total shareholdings. JDW Sugar Mills Limited was incorporated in Pakistan on 31 May 1990 as a private limited company under the Companies Ordinance, 1984 and was subsequently converted into a public limited company on 24 August 1991. The principal activity of the company is the production and sale of crystalline sugar, electricity, and managing corporate farms.

power plants and independent power producers to tackle circular debt. These funds would improve the cash flows of companies like SNGPL, SSGC, and Pakistan State Oil, enabling infrastructure investments.

The analysts noted that the gas companies foresee a Rs90 billion revenue shortfall from RLNG diversion. Timely revision of gas prices is expected to benefit Pakistan State Oil’s liquidity.

Additionally, Oil and Gas Development Company Limited is set to receive a settle-

PROFIT

NewS DeSk

The government has raised Rs87.79 billion from the sale of various types of Ijara Sukuk (GIS) bonds in a second auction conducted at the Pakistan Stock Exchange (PSX).

The amount raised was slightly lower than the target of Rs100 billion

set by the government.

The auction received bids worth Rs618.15 billion, indicating a strong demand for government debt instruments. The bids were divided into three categories: GIS Fixed Rental Rate (FRR), GIS Variable Rental Rate (VRR), and GIS Fixed Rental Discount (FRD).

The highest amount raised was

from the GIS VRR category, which generated Rs57.88 billion from the sale of 3-year and 5-year bonds. The margin range for these bonds was 15bps and 28bps respectively.

The second highest amount raised was from the GIS FRR category, which fetched Rs22.89 billion from the sale of 3-year and 5-year bonds1. The cutoff rental for these bonds was 16.05% and 15.49% respectively.

The lowest amount raised was from the GIS FRD category, which brought in Rs6.42 billion from the sale of 1year bonds. The cutoff price for these bonds was Rs83.7198.

The PSX was authorized by the Ministry of Finance to conduct the primary market issuance of government debt securities in November 2023, as part of the reforms to diversify the investor base and enhance the liquidity of the debt market.

The first auction held by the PSX in December 2023 witnessed an overwhelming response as it received bids worth Rs478.78 billion.

Drastic measures needed to enroll 26 million out-of-school children: President ISLAMABAD

Staff RepoRt

President Dr Arif Alvi has said that to enroll around 26 million out-of-school children in the country, drastic measures including the education emergency, double shifts in educational institutes and utilising the mosque for the teaching purposes were needed.

While addressing an event in connection with the World Education Day held here on Wednesday, he also suggested a mechanism to engage the newly graduates and intermediate students for teaching the out-of-school children offering them a stipend.

Dr Arif Alvi advocated the promotion of online education besides extending the facilities to doctors, engineers, and trained workforce in the country to discourage the trend of them moving abroad.

Alarming figure of 26 million outof-school children was worrisome for the country and exemplified other countries including Sri Lanka and Bangladesh where the children’s enrolment was around 98 to 100 percent, he added.

The president said that educating the children was of paramount importance to produce a skilled and qualified workforce, not merely the laborers.

Lauding the contribution of the partner organisations, he said the country should take advantage of their services for benefit of the future

generations.

Dr Alvi told the gathering that since Pakistan’s inception, around 55,000 schools were built and the enrolment of out-of-school children required another 50,000 schools which was extremely difficult considering education budget of the provinces. In such a scenario, the out-of-box solutions were a must to cope with the challenge, he added.

Reiterating his suggestion to use mosque’s platform as a centre of learning, he said the worship places were equipped with all basic facilities including electricity and clean drinking water.

The platform can be used to teach outof-school children in alternate timings including both boys and girls at separate mosques, he added.

President Alvi lauded the Benazir Income Support Program for its contributions to child and mother’s health and suggested to link that financial assistance with the enrolment of out-ofschool children.

Highlighting the ratio of 15-20 percent of Dyslexia disease in the country, he appreciated the measures taken for the suffering children.

The president also said the enrollment in higher education after intermediate was around 10-12 percent in Pakistan comparing 24 percent in the neighboring countries.

Calling for promotion of online education, he said that the Allama Iqbal Open University could also be used to teach out-of-school children as the university had considerably enhanced its admissions.

He said the educated and skilled workforce was moving abroad owing to the lack of opportunities in the country which necessitated the provision of facilities to them in the country.

Federal Education Secretary Waseem Ajmal Chaudhry, Special Secretary Mohiyuddin Wani, Director General of Pakistan Institute of Education Dr Muhammad Shahid Saroya, President of Islamabad Chamber of Commerce and Industry Ahsan Bakhtawari, head of Allahwala Trust Shahid Anwar and representatives of USAID, UNICEF, UNECSO and JAICA attended the event.

ment of Rs82 billion, enhancing its financial position. The government plans to convert term finance certificates to public debt, leading to savings. The power sector’s circular debt was reported at Rs2.5 trillion by September 2023, with a significant increase in the current fiscal year. The updated circular debt management plan aims to prevent further debt accumulation in the power sector.

The financial gap in the power sector will be addressed through the budget subsidy, covering various costs and payments.

NayaPay, Alipay+ partner to boost global payments into Pakistan PROFIT

MoNitoRiNg DeSk

NayaPay, a Pakistani fintech platform, has joined forces with Alipay+, a cross-border digital payments and marketing platform run

by Ant International, a subsidiary of Ant Group. The goal is to boost global payments into Pakistan. They will use QR codes that work with Raast – Pakistan’s instant payment system – and Alipay+ payment partners, such as e-wallets and bank apps. This will enable incoming foreign exchange flows and link global markets’ cashless payment systems with Pakistan. NayaPay will help Pakistani businesses – especially SMEs – access more than 25 Alipay+ global payment partners. The partnership will also tackle common challenges, such as low interoperability and high transaction fees. This move is part of Alipay+’s steady growth in Southeast Asia over the last few quarters. In September 2023, the company revealed integrations with digital payment platforms in the Philippines. It also established integrations for its mobile wallet ecosystem in Thailand, among other countries.

SSGC’s subsidiary gets license to sell natural gas, RLNG PROFIT

NewS DeSk

Sui Southern Gas Company Limited (SSGC), one of the leading gas utility companies in Pakistan, has announced that its subsidiary, SSGC Alternate Energy (Private) Limited (SSGC-AE), has obtained a license from the Oil and Gas Regulatory Authority (OGRA) to sell natural gas and RLNG to its consumers. According to a stock filing by the SSGC to the Pakistan Stock Exchange (PSX), the license was granted in accordance with the terms and conditions stipulated by OGRA. This announcement was made on January 24, 2024, as per the regulatory requirements.

This is a significant development for SSGC, as it shows its commitment to expanding its energy portfolio and ensuring a reliable supply of natural gas and RLNG to meet the growing energy demands in the country. The license also enables SSGC-AE to make substantial contributions to the energy sector and the national economy. SSGC is a publicly listed company that operates under the administrative control of the Ministry of Energy (Petroleum Division). It is responsible for the transmission and distribution of natural gas in the southern region of Pakistan, covering the provinces of Sindh and Balochistan. SSGC-AE is a wholly owned subsidiary of SSGC that was established in 2019 to explore alternative energy sources and solutions.

Govt forms inter-ministerial committee for swift FBR restructuring g

SOME TAX OFFICIALS REPORTEDLY HAVE CONCERNS REGARDING CARETAKER FINANCE MINISTER'S RAPID AND SELECTIVE APPROACH TO TAX ADMINISTRATION REFORM PROFIT

NewS DeSk

The federal cabinet on Tuesday established an inter-ministerial committee with the mandate to finalize recommendations for restructuring the Federal Board of Revenue (FBR) within a four-day deadline. This step aims to resolve differences among various tax groups.

The reform proposal, initially developed through private consultations led by Caretaker Finance Minister Shamshad Akhtar, led to the reappointment of Ms. Shamshad to chair this new committee.

Sources from the tax machinery revealed concerns among tax officials regarding the caretaker finance minister’s rapid and selective approach to tax administration reform. To address these issues, an intervention was made to facilitate the submission of

a summary to the federal cabinet.

Key to the proposed reforms is a political commitment to taxing agricultural income, retail sector, and services.

Past reform efforts have been criticized for focusing on creating positions and favoring individuals rather than addressing challenges of integrity and implementation.

The reform includes the reconstitution of the Federal Policy Board (FPB), to be headed by the finance and revenue minister.

The FPB will include experts in tax policy and administration, economists, and industry experts without conflicts of interest, with the revenue division secretary reporting to the FPB. The revenue secretary will be appointed from either the Customs or IRS service cadre.

The FPB and the revenue division secretary will be responsible for developing tax

policies, setting revenue targets, and coordinating strategic issues with stakeholders, moving policy formulation back to the FPB from the finance division.

A significant change includes the separation of Customs and the Inland Revenue Organisation. Each will be headed by a director general (DG) appointed based on the FPB’s recommendations, with a defined tenure. The DGs will have full control over

administrative, financial, and operational aspects of their respective organizations.

Furthermore, the finance minister will chair the Customs Oversight Board (COB) and the Internal Revenue Oversight Board (IROB), comprising various government secretaries and directors general, along with four independent members.

The customs board will also include an independent military expert for security and

border control.

These boards are tasked with ensuring effective policies and governance in their respective organizations, with DGs reporting to their boards. They will also develop key performance indicators and monitor performance and administrative matters.

To enhance tax policy function, a tax policy office (TPO) will be established within the revenue division, equipped with a dedicated team and resources. The TPO will focus on sector-specific tax potential studies, stakeholder policy input, and frequent tax expenditure analyses.

Customs will continue to collect various taxes at import and domestic levels, acting as a withholding agent for IR taxes at the import stage. The revenue division will oversee international taxes, valuation, IT and digitisation, data sharing, integrity, and human resources, with a joint committee from customs and IR for determining import values.

Finally, the finance minister will establish asset distribution and implementation committees for evaluating customs-IR asset transfers and drafting necessary legal and regulatory changes.

NEWS 03

Thursday, 25 January, 2024 | KARACHI

ECC SET TO DISCUSS GB WHEAT SUPPLY AFTER 30-DAY PROTEST AGAINST PRICE HIKE

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ISLAMABAD

GhulAm AbbAs

HE persistent protests against the wheat price surge in Gilgit Baltistan (GB), reaching its 30th day, have triggered a proactive response from the federal government. While steps have been taken to ease the financial strain and address discontent, the core demand of reversing the recent price hike remains unmet, creating a complex scenario for both regional and federal authorities.

In a significant move, the federal government has given the green light to shift to 100% local wheat supply, aiming to alleviate the financial burden on GB. This strategic decision is anticipated to reduce the subsidy requirement by Rs 700 million for the current fiscal year and Rs 1.43 billion for the upcoming fiscal year, 2024-25.

However, the primary demand of the locals, seeking a complete reversal of the recent wheat price hike, is yet to be addressed by both the regional and federal governments, intensifying the ongoing protests.

SBP introduces FX matching platform for enhanced interbank forex trading

A summary prepared for the Economic Coordination Committee (ECC) suggests approving a quota of 150,000 MT for the current fiscal year and 160,000 MT for the next fiscal year to counter potential food security challenges in GB. The summary, initially presented by the Ministry of Kashmir Affairs and Gilgit Baltistan, awaits discussion in the upcoming ECC meeting.

Chief Minister Haji Gulbar Khan and his team engaged in discussions with Caretaker Federal Minister for National Food Security & Research, Dr. Kausar Abdullah Malik, in Islamabad. Dr. Malik expressed commitment to supporting an agricultural revolution in GB, acknowledging the region’s unique potential for agriculture, commodities, and dry-fruits. The federal government, according to Dr. Malik, continues to supply 100% local wheat to GB and intends to do so in the future.

The Chief Minister expressed gratitude for the federal government’s efforts and discussed plans to further increase GB’s agricultural potential. Dr. Malik assured that directives would be issued to the Pak-

PROFIT

news desk

The State Bank of Pakistan (SBP) has announced the launch of a new centralized foreign exchange trading platform for interbank transactions.

Named FX Matching, this platform is designed to facilitate real-time and anonymous trading of US dollars against Pakistani rupees among authorized dealers.

As outlined in a recent circular by the SBP, the introduction of FX Matching aligns with the bank’s Vision 2028 objectives to innovate and expand the digital financial ecosystem in Pakistan. This platform is a critical step towards augmenting the interbank foreign exchange market’s transparency and depth. Authorized dealers, or ADs, have received specific instructions and key components for the FX matching system to initiate trading. The platform mandates a minimum trading lot size of $500,000 and its multiples. Notably, the trading will be conducted anonymously, allowing participants to quote or respond to quotes without revealing their identities until a trade match occurs. Furthermore, each participant can set credit limits for their counterparts in FX Matching, with the SBP advising them to establish limits with major market players for optimal quotes. Starting January 29, 2024, banks are required to utilize the forex matching platform for executing interbank foreign exchange transactions that affect the foreign exchange exposure limit. Additionally, in scenarios where the Federal Reserve Bank of New York is closed but the interbank FX market in Pakistan is open, trading on FX Matching will be conducted in Tom value.

This development comes in the wake of a recent International Monetary Fund (IMF) report, which urged the authorities to avoid formal or informal exchange rate restrictions.

The IMF emphasized that the SBP should limit its FX market interventions to building foreign exchange reserves and not hinder the rupee’s depreciation driven by market fundamentals. The authorities are also expected to intensify efforts to eliminate existing exchange restrictions and multiple currency practices in early 2024.

istan Agricultural Research Council (PARC) to form a team for this purpose.

Meanwhile opposition parties in the GB assembly are also actively collaborating with the Chief Minister to address the wheat crisis and seek intervention from the federal government.

Meanwhile, the Awami Action Committee has announced the next phase of protests, including a complete shutterdown strike in Skardu and region-wide protests starting Friday. The protesters not only demand the reversal of the wheat price hike but also improved electricity supply and the repeal of the finance bill.

In response to the protests, the GB government, previously proposing a hike to Rs 52/kg, has fixed the subsidised wheat price at Rs 36 per kilogram. Chief Minister Gulbar Khan asserted that this decision aims to stabilize wheat prices and ensure fair returns for local farmers.

The region’s dependency on subsidized wheat, initiated in the 1970s by Zulfiqar Ali Bhutto’s government to assist impoverished locals, faces challenges in meeting the in-

creasing demand. The protests in 2017, triggered by attempts to cut the subsidy, underscored the delicate balance between economic sustainability and public welfare.

The proposed solution emphasizes exclusive local wheat supply to GB to stabilize the subsidy, with additional financial support from the Ministry of Kashmir Affairs. This ongoing effort signifies a comto balancing economic mitment sustainability and public welfare in GB. However, challenges persist as the impact of subsidized wheat on GB’s economy and agriculture necessitates a targeted subsidy approach, excluding the top socioeconomic stratum. Previous exemptions for government servants above grade 17 and those earning over Rs 40,000 per month highlight the complexity of sustaining this subsidy amidst fiscal constraints.

As protests continue and discussions unfold, GB stands at a crucial juncture, grappling with the intricate dynamics of economic stability, public welfare, and the unique challenges posed by its mountainous terrain.

Punjab to extend support to Sindh-based GCT for extending schooling network in province LAHORE

stAff report

The Punjab government will extend its fullest support to a Sindh-based leading education sector non-profit whenever it decides to extend its schooling service to Punjab for educating children from the deprived and rural areas. The solemn assurance to this effect was extended by Punjab Health Minister, Prof Dr Javed Akram, as he spoke as the chief guest at a ceremony organised by the non-profit Green Crescent Trust (GCT) on the eve of International Day of Education. On the occasion, leading Lahore-based businessmen and industrialists lent support to the GCT’s charitable drive to enrol a total of 100,000 out-of-school children in Sindh by constructing 250 schools in backward and remote areas of the province.

The Punjab Health Minister appreciated that the GCT in its 29 years-long journey had established 166 charitable schools in underprivileged areas of Sindh having an enrolment of 31,799 plus children from deprived families. He said that a leading non-profit by establishing such a vast network of charitable schools had genuinely shared the burden of the state

whose solemn constitutional obligation is to provide quality education to each and every child in the country irrespective of his status and location. He praised that the GCT had recently extended the footprint of its charitable work for the first time beyond Sindh by establishing a charitable school in the Winder area of Hub district in Balochistan. He said the concerned charities should actively work to educate children from the underprivileged communities in Balochistan to support efforts to overcome the backwardness of the province. Dr Akram invited the GCT to extend its charitable work in the education sector to Punjab to enrol out-of-school children in the province.

“Punjab government is fully available and will provide whatever support the GCT needs to establish its schools in rural and deprived areas of the province whether in the form of land, funding, or availability of trained teachers,” he said.

He assured the audience that the Punjab School Education Department would work shoulder-to-shoulder with sincere charities and non-governmental organisations to educate children in remote and under-developed parts of the province.

The Punjab Health Minister mentioned

that educating a child from an underprivileged community meant providing support for ending the vicious circle of poverty for his entire family. Dr Shehla Javed Akram, the wife of the Punjab Health Minister who herself excelled as a woman entrepreneur, urged the charities in the education sector to strive hard to educate girls from deserving families to promote the cause of woman empowerment.

Attending the fundraiser as a guest of honour, Balochistan Health Minister, Dr Amir Muhammad Jogezai, said the concerned NGOs and charities could play a vital role in providing quality education, health services, water supply, and other basic necessities of life to people in remote areas in Balochistan.

CCoE may authorize a committee to engage with power plants for reduction in tariff for sugar mills ISLAMABAD

AhmAd AhmAdAni

In a bid to alleviate the burden of highpower tariffs on consumers, the Power Division is seeking approval from the Cabinet Committee on Energy (CCoE) to empower a five-member committee for negotiations with bagasse-based Independent Power Producers (IPPs).

The move is part of the caretaker federal government’s concerted efforts to address escalating electricity prices.

A meeting of the Cabinet Committee on Energy is scheduled for January 26, 2024, with a four-point agenda that includes water issues of Muzaffarabad city due to Neelum-Jhelum Hydropower Project, continuing negotiations with Independent Power Producers (IPPs), circular debt report and report on the progress towards implementation of competitive trading bilateral contracts market (CTBCM).

Sources informed that the Minister for Power Division has authorized the submission of a summary before the

CCoE, emphasizing the caretaker government’s commitment to making crucial decisions aimed at reducing electricity prices and providing relief to consumers grappling with exorbitant power tariffs.

Previously, the CCoE had considered a summary from the power division titled “Implementation of Master Agreements and PPA amendments with Wind Power Producers (WPPs) dated 25th May, 2023.” In response, the CCoE directed the power division to devise a new strategy for continued engagement with 14 wind power producers, with the objective of achieving savings for consumers and cost reduction.

In line with this directive, the power division established a five-member committee, led by the Managing Director of the Private Power and Infrastructure Board (PPIB), to engage with 14 wind power producers. Now, the power division is seeking an extension of the committee’s scope to include negotiations with bagasse-based IPPs, said sources.

According to sources, the said fivemember committee will enter into dis-

cussions with both wind power plants and power plants associated with sugar mills. It is expected to urge the 14 Wind Power Producers and bagasse-based IPPs to voluntarily reduce their tariffs.

And, in case otherwise, legal action may be taken if an agreement is not reached, and payments to these entities will only resume after the signing of new contracts. The government has already halted payments of Rs20 billion to 14 wind power plants, citing rates higher than the market, said the sources.

It is pertinent to mention that the power division had previously signed Memoranda of Understanding (MoUs) with 47 IPPs in 2020, converting 46 of them into initialed agreements. However, negotiations hit a roadblock with 14 Wind Power Producers, as lenders held divergent views on the initialed agreements, preventing further progress. The current proposal seeks to extend the negotiation scope, addressing both wind and bagassebased power producers, as the government aims to foster a more competitive and consumer-friendly energy market.

At least nine dead at UN complex as Israeli forces advance through Khan Younis CONTINUED FROM PAGE 01

“Attack on Khan Younis Training Centre this afternoon – two tank rounds hit building that shelters 800 people – reports now 9 dead and 75 injured” UNRWA’s White said on X. GUNBATTLES: Residents reported fierce gunbattles in the area, where the military said it had killed “numerous” squads of gunmen “with sniper, tank and aerial fire”. Gaza health ministry spokesman Ashraf Al-Qidra said in a statement: “The occupation is isolating hospitals in Khan Younis and carrying out massacres in the western area of the city.” The Palestinian Red Cross Society, which runs the Al-Amal hospital, said troops had blockaded its staff inside and imposed a curfew in the area, including its local headquarters, where three displaced individuals had been killed.

Israel says Hamas fighters operate in and around hospitals, which hospital staff and Hamas deny. Martin Griffiths, UN coordinator of emergency relief, said on Tuesday that 24 people had been killed in strikes on an aid warehouse, UN centre and humanitarian zone in the Khan Younis area, and that an aid distribution centre had come under heavy bombardment. The Israeli military had earlier ordered the evacuation of the area, which the UN humanitarian office said held half a million people, opens new tab, four-fifths of them displaced by fighting in other parts of the coastal strip. However, Israeli tanks advancing eastward down al-Bahar road towards Nasser hospital blocked the escape route from the city towards the Mediterranean coastal highway.

The highway leads towards Rafah on the Egyptian border – already crammed with more than half the enclave’s 2.3 million people.

Some resorted to dirt roads to try to escape, residents and reporters leaving the area said.

Palestinian health officials said at least 25,700 Gazans had been killed in the war, including 210 in the previous 24 hours, with thousands more feared lost under rubble. Israel says it has killed around 9,000 fighters, a figure that Hamas dismisses as an attempt to “portray a fake victory”.

Caretaker PM calls for immediate action on circular debt in energy sector PROFIT

news desk

Addressing the persistent issue of circular debt, Caretaker Prime Minister Anwaar-ulHaq Kakar has demanded swift and decisive action from the Ministry of Energy. In a meeting held in Islamabad this Wednesday, the Prime Minister stressed the urgent need for an effective, long-term strategy to manage and reduce the spiraling debt in the energy sector. Emphasizing the importance of teamwork, PM Kakar called for concerted efforts from all involved parties to tackle this financial hurdle. He assured that the government is proactively working to reduce the circular debt as a top priority, aiming to restore the country’s economic health. A key highlight of the meeting was the discussion on the positive outcomes of the anti-power theft campaign, which has significantly increased revenue collection for power distribution companies, a vital step towards debt reduction. Participants at the meeting were briefed in detail about the current state of circular debt, particularly in the petroleum and energy sectors. The meeting also served as a platform for various stakeholders to present suggestions on how to effectively reduce the debt burden plaguing different companies in these sectors. With this initiative, Caretaker PM Kakar has underscored the government’s commitment to addressing the circular debt crisis, a move seen as crucial for the nation’s economic recovery and stability.

As Bjarke leaves Daraz, more layoffs on cards at Pakistan’s biggest eCommerce company CONTINUED FROM PAGE 01

The decision to layoff employees comes as the company looks to boost its revenue and cut costs, according to courses. Daraz has in the past gone on firing sprees.

Around the same time last year as well, the now former CEO Mikkelsen had announced that the company would be letting go of 11% of the company’s global workforce, quoting reasons such as the conflict in Europe, substantial disruptions in the supply chain, surging inflation, escalating taxes, and the elimination of crucial government subsidies in target markets, for the tough decision. It was also said that the workforce had been reduced in order to enhance profitability and cut costs, entailing a renewed emphasis on the core business, streamlining the organisation, and adopting a more efficient approach across all departments.

The layoffs this time look different, however, and more like an AliBaba thing than a Daraz specific thing.

AliBaba Group’s valuation has been spiralling downwards due to increasing costs and competition and its companies have been cutting costs across the board, also letting senior executives go. Earlier this month, Lazada, whose CEO has now taken charge at Daraz in the interim, also went through a round of layoffs, sizing down the company by 30%. The layoffs at Lazada affected people in all roles including the C-Level executives.

According to Bloomberg, Alibaba, as of March last year, was gearing up for external fundraising through the IPO of the Alibaba International Digital Commerce Group (AIDC) and hence cutting costs. The AIDC includes all eCommerce entities such as Lazada, Daraz

and AliExpress, of the Alibaba Group. The AIDC was created in March last year as part of Alibaba’s move of splitting its businesses into six units. AIDC is one of those six units. For companies like Daraz, the easiest way to boost bottomline numbers is either to cut marketing budgets or cut employee numbers. Since cutting down marketing costs is going to slow down sales, it’s the employees that get the axe.

While Daraz Pakistan’s numbers have grown until 2019, its losses have also been mounting. For the financial year 2019, Daraz Pakistan’s GMV (gross merchandise value) was $130.1 million and its net losses $25.3 million, according to financials available with Profit. According to Rest of World, group level (all countries including Pakistan) losses at Daraz had amounted to $143 million in 2022. The losses had increased from $113 million in 2021.

In the context of Pakistan, growth for Daraz would have been affected because of the challenging macroeconomic situation. A CEO of a prominent 3PL (third party logistics) startup that does deliveries for eCommerce companies such as Daraz told Profit that there has been a decline in the eCommerce volumes because of the ongoing macroeconomic challenges since last year and the decline is going to continue further because of the election season and the holy month of Ramzan is also around the corner. Daraz’s growth would have been further affected by the rise of vertical eCommerce companies such as Bagallery that does fashion eCommerce and PriceOye which sells electronics. Vertical eCommerce companies are focused on certain segments instead of everything they can get their hands at. For instance, in fashion in the case of Bagallery which would give competition to Daraz

in that segment. Whereas PriceOye would be a competition to Daraz in the electronics segment. Both Bagallery and PriceOye have raised $4.5 million and $7.9 million in their last rounds.

In fact the creation of AIDC by Alibaba was to counter competition in bigger countries like Pingduodo in China and Shopee in Southeast Asia. The change is expected to bring efficiencies for all Alibaba eCommerce companies. One way would be by allowing cheaper prices through group buying for all of the eCommerce companies of Alibaba Group, according to Rest of World.

WHO ELSE IS GOING TO BE AFFECTED? Whatever pushes Daraz down is also going to push eCommerce delivery companies, also known as 3PL (third party logistics companies) down because Daraz, which is arguably the biggest in eCommerce in Pakistan, outsourced a portion of its deliveries to third-party logistics companies such as TCS, Leopards, Rider, Swyft and others. As of late 2021, Daraz outsourced as much as 50% of its deliveries to 3PL companies, while it did the remaining through its logistics arm DEX Logistics.

So if Daraz is planning to cut costs because of the slowdown, 3PL companies would also lose business.

04 COMMENT

The hidden enemy

Staying out of power

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The Cabinet has rejected PMUs but has no solution for DISCOs

Why are only Muslims thought to be terrorists

HE caretaker Cabinet had turned down the proposal to set up Performance Monitoring Units in five power distribution companies (DISCOs)suffering significant losses because this would have been a quick-fix and would not have worked in the long term. The PMUs would have been headed by a brigadier and included officers from the Pakistan Administrative Service, the FIA and an intelligence agency. The rationale was that the DISCOs were suffering losses because of the theft of electricity.

The Power Division itself had proposed the PMUs, but they were rejected because the basic problem had not been resolved: finding the right men as DISCO CEOs. The failure of leadership of the DISCOs was the cause of their current financial crisis, where they had receivables of Rs 1.8 trillion, while circular debt had gone up to Rs 2.3 trillion. However, instead of finding the right heads of the DISCOs, the PMU idea had been floated, a rather poor solution to other problems, with Rs 589 billion losses projected for the current fiscal year, comprising ‘under-recovery’ and line losses exceeding NEPRA’s acceptable threshold. These figures, which reflect a sclerotic organization, have made privatization that much more difficult, because while state-owned enterprises are expected to be lossmaking, the financial picture of the DISCOs may be enough to drive off any buyer.

To be fair to the Power Division, it is not the easiest of tasks to find a suitable CEO for a DISCO, one who can reduce theft and reduce line losses. If, as has been the practice, someone from inside the organization is appointed, he may be tainted with the atmosphere of the organization. Even if personally honest, he may find it difficult to act against acquaintances. If an outsider is appointed, he may not be acquainted with the ethos of the organization and the necessary acumen and expertise. The Cabinet may be right to decide against the PMUs, though it is a little disconcerting that it has taken the PMUs off the table with only about two weeks left before the elections. The next government has rightly been left to tackle the twin issues of circular debt and DISCO MDs, but the PMU decision could have been deferred for its decision.

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AlI SuKhAnVER

truth always ignored and always denied is that the terrorists never belong to some particular religious school of thought; they never come from some specific social community. Terrorists have their own philosophy, their own school of thought. That is the reason that we find multi-dimensional type of terrorist activities around us.

Some of the terrorist activities are very refined, clad in a decent robe. Recently the Michaela Community School in Brent, north-west London, has been challenged in the high court for its policy of banning prayer rituals on school premises. The Michaela Community School is well reputed for its marvelous results, immaculate discipline and very talented and competent teaching faculty and is ranked among England’s highest performing state schools.

The case has been brought by one of its Muslim students, who claims the ban is discriminatory. The Student told the honourable court that ‘Not being able to pray at school made me feel guilty and unhappy, it was like somebody saying they don’t feel like I properly belong here’. The lawyer of the student, Sarah Hannett KC, told the court that the ban policy had the practical effect of only ‘preventing Muslims from praying because their prayer by nature has a ritualized nature rather than being internal’.

The matter is still under discussion in the court; what would be the court’s decision, it is difficult to predict but one thing is very much clear, such kind of inhuman and merciless steps like banning someone from saying prayers, simply reflect an extremist approach of mind. If you stop some Hindu worshippers from bathing in Ganga or you forbid a Sikh to wear a turban or you restrict a Buddhist from bowing before the statue of Buddha, it would simply give birth to hatred.

This hatred sometimes becomes so intense that it gradually and silently turns into a reaction which is usually called extremism; at some later stage this reaction may lead to terrorism. If we seriously desire to curb and crush the menace of terrorism, we will have to review our approach and point of view regarding the religious philosophies followed by our fellow human beings.

It is no doubt a very prejudiced approach that since long, the whole world has been blaming the Muslims for promoting radicalism, fanaticism and extremism

Dedicated to the legacy of late Hameed Nizami

Arif Nizami (Late) Founding Editor

Yousaf Nizami

From conflict to calm Editor Umar Aziz M. A. Niazi Joint Editor

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Executive Editor

Abdul RAuf KhAn

N the intricate realm of global politics, Pakistan’s recent military operation “Marg Bar Sarmachar,” in response to an unexpected Iranian attack, highlights the delicate balance required for peace and security. Iran and Pakistan have a long-established relationship built on mutual understanding of regional concerns. The two countries faced a moment of strain as Pakistan swiftly countered Iran’s illegal airstrikes on its territory, resulting in the reported elimination of nine foreign elements within 48 hours.

This incident serves as a nuanced illustration of the tactical and diplomatic manoeuvres employed to safeguard Pakistan’s sacrosanct sovereignty. Pakistan’s immediate withdrawal of its ambassador from Tehran and the imposition of a ban on the return of the Iranian envoy were not merely symbolic gestures but indicative of an uncompromising stance against undesirable actions, even from traditionally friendly nations. This response reflects a zero-tolerance policy towards any threat to sovereignty and territorial integrity.

What sets Pakistan’s reaction apart is its commitment to delivering a proportional and distinct countermeasure. Operation Marg Bar Sarmachar’s planned military action demonstrates a calculated response that avoided unnecessary confrontation, aligning with the principles advocated by peace and conflict theorists regarding proportionate response to a provocation. Pakistan’s retaliatory strikes send across a broader message, not only to Iran but to any country contemplating actions that may jeopardize Pakistan’s peaceful diplomacy. A proportional response showcases the country’s ability to balance rationality and equilibrium in the face of unpredictable violations, preserving regional peace.

Despite public opinion in Pakistan, as indicated by survey data from Pew Research, traditionally favouring a positive attitude towards Iran, recent developments have strained the long-standing amicable relationship. The unexpected Iranian attack, conducted without prior warning, raised eyebrows considering Pakistan’s continuous support for Iran in various forms, such as joint naval exercises and high-

Thursday, 25 January, 2024

leading to terrorism. ‘Our World in Data’ is a researchbased website which compiles facts and figures about the world’s largest problems. In a recent report on the issue of terrorism it stated, “The number of terrorism deaths had been changing a lot from year to year; in 2010 this number was less than 8,000. In 2014, almost 45,000 people died in terrorist attacks, globally around 20,000 people died from terrorism in 2019; the average over the last decade was around 24,000 per year.” The World Fact Book has issued a list of terrorist organizations with reference to the US State Department.

This list includes more than 60 terrorist groups designated by the US State Department as Foreign Terrorist Organizations. Another list of the same type says that there are 21 designated terrorist organizations in the autonomous list of the European Union.

According to that report ‘The deadliest terrorist groups in the world in 2022 were Islamic State and its affiliates, followed by al-Shabaab, Baluchistan Liberation Army and Jamaat Nusrat Al-Islam-walMuslimeen and Boko Haram, among others. These organizations carried out around 13,600 attacks and killed 72,519 people between 2013 and 2017. It is something very interesting that all such lists comprise

only the Muslim terrorists; not even a single nonMuslim organization has been mentioned in these lists of terrorist organizations and terrorist groups. All these analyses and all these reports give an impression that all terrorism is brought up and nurtured only by the Muslims all over the world; all others are simply innocents.

If all terrorists were Muslims, they would never have targeted their own community anywhere in the world. On 20 January 2015, a very interesting article of Ruth Alexander and Hannah Moore was shared by the BBC with the title, ‘Are most victims of terrorism Muslim?’ The article said, “The Muslims suffered between 82 and 97% of terrorism-related fatalities over the past five years. Between 2004 and 2013 about half of all terrorist attacks, and 60% of fatalities due to terrorist attacks, took place in Iraq, Afghanistan and Pakistan- all of which have a mostly Muslim population.”

The fact of the matter is that terrorism is simply a commercial activity; simply a way to earn a living.

Different forces use or misuse them in their own interests. These terrorist groups, sometimes become so strong and influential that they even drag friendly countries to the brink of war but one thing is very much clear that these ‘ birds of a feather, flock together’ in reaction to some injustice or unfairness.

Moreover they are always patronized, supervised, guided and controlled by someone always invisible whom we may call the Hidden Enemy.

The writer is a freelance columnist

The fact of the matter is that terrorism is simply a commercial activity; simply a way to earn a living. Different forces use or misuse them in their own interests. These terrorist groups, sometimes become so strong and influential that they even drag friendly countries to the brink of war but one thing is very much clear that these Âbirds of a feather, flock togetherÊ in reaction to some injustice or unfairness.

Editor’s mail

Send your letters to: Letters to Editor, Pakistan Today, 4-Shaarey Fatima Jinnah, Lahore, Pakistan.

E-mail: letters@pakistantoday.com.pk Letters should be addressed to Pakistan Today exclusively

Not a private road

Navigating diplomacy in Pak-Iran relations

A private university situated in Block-6, PECHS, Karachi, considers the road between its two campuses as its own private road. The university has established barriers and speed-breakers on the road, while its staff members stop the traffic as if they have joined the traffic police. It seems that they will soon put barriers at the road entrance points to block the public from coming onto the road at all.

ADIL MUHAMMAD KHAN KARACHI

Obesity

level diplomatic missions.

The internal political instability within Iran has been underlined by internal divisions, including discord between Iran’s government and a nexus between clerics and the Islamic Revolutionary Guard Corps (IRGC). Both seem to be at loggerheads in terms of their foreign policy overtures. These fault lines are further exploited by social media campaigns, which are often fueled and supported by pro-Indian accounts. The same accounts are particularly responsible for tarnishing the reputation of the Pakistani Army, further complicating the delicate equilibrium between states. Moreover, revelations by Kulbhushan Jadhav about a Chabahar-based headquarters working against Pakistan with support from Iranian businessmen have added to the tensions.

Despite these challenges, Pakistan remains committed to political support, cooperation, and communication with its neighbours. The unwavering resolve of the Pakistan Army and the steadfast support of citizens against terrorism reflects a formidable determination. As the dust settles from the military operation, both Pakistan and Iran have engaged in diplomatic efforts to address the root causes of the conflict. High-level

While challenges remain, the trajectory of recent diplomatic engagements suggest a positive shift in the relationship between Pakistan and Iran. Both nations are navigating the complexities of the geopolitical landscape with a renewed commitment to open communication, cooperation, and a shared vision for a stable and secure future Lahore – Ph: 042-36300938, 042-36375965

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Karachi – Ph: 021-35381208-9

talks, communication channels, and cooperative initiatives have been initiated to foster understanding and pave the way for de-escalation.

In the spirit of exemplary statecraft, Pakistan’s approach to de-escalation has been marked by a commitment to dialogue and negotiation. Instead of allowing tensions to escalate further, the nation has prioritized diplomatic resolution over further military confrontation. This commitment to open communication and negotiation not only eased immediate tensions but also set an example for responsible statecraft, emphasizing the importance of regional cooperation for a stable and secure future. As the diplomatic efforts between Pakistan and Iran gained momentum, both nations demonstrated a willingness to rebuild trust and strengthen their historical ties. Engaging in constructive dialogue, the two countries have expressed a shared commitment to resolving differences and fostering a renewed era of cooperation. The official announcement of return of both ambassadors to their respective countries, signifies a positive step towards normalization.

The potential return of ambassadors is not merely a symbolic gesture but a practical demonstration of the earnest efforts to restore diplomatic channels and rebuild the foundation of mutual understanding. This positive development reflects the importance of diplomatic ties and the shared recognition of sustained dialogue for overcoming challenges and maintaining regional stability. While challenges remain, the trajectory of recent diplomatic engagements suggest a positive shift in the relationship between Pakistan and Iran. Both nations are navigating the complexities of the geopolitical landscape with a renewed commitment to open communication, cooperation, and a shared vision for a stable and secure future.

The writer can be at abdulraufkhan128@gmail.com

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Islamabad – Ph: 051-2204545

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reached

OBESITY is a condition indicating excessive body weight. It can cause many health problems, including, but not limited to, hypertension. Obesity is more commonly found in children as they tend to be couch potatoes in today’s world. The problem can be managed naturally through lifestyle modifications as well as medically. Natural ways to handle obesity include eating healthy food, adopting a healthy lifestyle, and, indeed, exercising.

Making people aware of how to adopt a better lifestyle and proper eating habits can reduce the chances of obesity, specifically in children.

MUQADDAS MUMRAIZ KARACHI

Fake promises

EVERY time there are elections in the country, politicians make big promises about the opportunities they will create and the prosperity they will bring to the people. However, nothing changes. The people of Larkana and surrounding areas are still deprived of their basic rights. The drainage system, education, healthcare and infrastructure in interior Sindh are in utter mess. The law and order situation in many areas is unspeakable. Our politicians neither bring the change they promise so often, nor do they bother to make an effort to that end.

ARSLAN SHOUKAT MEMON LARKANA

Poor administration

THE government has called off the recruitment process for teaching posts in the education department. This has been done as part of efforts to control prevalent corruption in government departments. What about the candidates whose time and money now stand wasted? The test was conducted by the Sardar Bahadur Khan Women’s University, which charged Rs1,000 per post. The aspirants had come from different parts of the country to take the test. They invested their time and money in the process. Can they be compensated? If teaching posts are announced again, the test fee should be exempted for the candidates who fell victim to negligence.

RAIS REHMATULLAH SHAHDADKOT

Cycle rickshaws

A few years ago, I was in the Indian city of New Delhi where I saw hundreds of cycle rickshaws on the roads. I wonder why the cycle rickshaw has been abandoned in Pakistan. It is a pollution-free means of transport that is noiseless and can provide inexpensive local transport for short distances in the cities. The cycle rickshaw has been replaced in Pakistan by motorcycle rickshaw, which is a massively noisy option and a huge source of pollution.

IMTIAZ AKHTER RAWALPINDI

Web: www.pakistantoday.com.pk

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Email: editorial@pakistantoday.com.pk

COMMENT 05

Fueling development in a turbulent world Thursday, 25 January, 2024

Pakistan has to be very careful about its future energy use

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Dr shahiD rahim

F the Covid-19 pandemic and RussiaUkraine conflict and the disruptions in energy supplies and price shocks in their aftermath were not enough to make the global energy landscape slippery, the recent clash in the Middle East has turned it even muddier, complex, and uncertain. This demands a thorough revisit of the challenges we face in the energy sector and seriously rethink our approach to dealing with them.

A quick glance through three prominent global energy outlooks, the IEA’s World Energy Outlook 2023, BP’s Energy Outlook 2023, and Bloomberg NEF’s Energy Outlook 2022, though slightly different in their approaches to reaching the common goal of decarbonizing the world’s energy system by 2050, have a consensus that the global energy scene will be dominated in the future by the following strategic drivers: Society’s concerns about the potential climate change will continue to force most nations to strive for more efficient and less energy- and carbon-intensive development pathways. Energy will remain the central to these efforts as over 75 percent of the greenhouse gas emissions originate from this sector.

Renewable energy technologies, mostly solar and wind, will play a vital role in serving future energy demands as the massive reduction in the levelized cost of producing electricity from these (about 90 percent for solar PV, 70 percent for onshore wind and 60 percent for offshore wind) makes them top contenders for future electricity supplies. This trend will gain further impetus because it’s far below the level needed to

meet the Net Zero Emission limits. IEA in its Outlook 2023 estimates that global investments in these technologies will rise from the present $1.0 trillion on average to $1.4 trillion by 2030 and will maintain that level through to 2050.

Electric vehicles (EVs) are making rapid inroads into the transport sector to replace oil. Globally, their sales have gone up from 3 million in 2020 to over 10 million in 2022 (15 percent of new sales) and are expected to reach 100 million (40 percent) by 2030.

EVs will not only reduce our appetite for oil but will also contribute significantly to provide backup storage to power grids.

Encouraged by successful development and deployment in the EVs field, utilityscale energy storage technologies are also expected to dominate the energy, and especially electricity, markets enabling the society to meet its energy demand from electricity derived from renewable resources, mainly solar and wind.

At present electricity is largely used in industries to drive motors (roughly 65 percent) only. It has the potential to power many other processes, especially heating. In the face of pressure to reduce dependence on fossil fuels, the industrial sector will be compelled to switch to electricity in the future, particularly for the processes that rely on oil and gas.

A smart grid will be critical in the future when the share of solar PV and wind generation is rising rapidly. Investment will be needed to provide adequate system flexibility (system’s ability to manage the supplydemand balance). Energy storage (including batteries) and demand response will be crit-

ical for smoothing out resource uncertainty and variability.

Following the footsteps of developed countries, developing nations will also strive to reduce energy intensity (the ratio of energy supply to GDP) in their systems. There is considerable scope of realizing this potential in built environment and consumer appliances. This will form an important component of most countries to squeeze more value from their existing resources and lessen their environmental footprint.

Uninterrupted and economic supplies of critical materials such as lithium, nickel, cobalt, and copper will be critical to keep clean energy transitions affordable. These supply chains today are highly concentrated, more so than the distribution of fossil fuel resources. Therefore, these will continue to pose risks to any country that depends largely on them.

Pakistan, being a low-income and importdependent, cannot remain immune from the above trends. We must rethink our energy strategies to reflect the new realities and turn them into opportunities. Fortunately, we have a host of options and policy choices available.

The crucial step is to put these into action.

Pakistan’s energy vision in the above backdrop, should build on seven strategic pillars: (i) deployment of renewable and sustainable technologies; (ii) shifting of its transport to renewable-derived electricity; (ii) deploying of energy storage technologies; (iii) production of alternative fuels from sustainable sources; (iv) electrification of industrial processes where practicable; (v) interconnection with neighboring electric grids; (vi) enhancing of energy conservation and efficiencies; and (vii) building a flexible, modular, and enabling energy transportation

The world around us is turbulent and is expected to remain so in the foreseeable future. Uncertainty, unpredictability, and instability will rule the global markets.

Pakistan should prepare for navigating through these turbulent times by avoiding its energy sector from becoming locked into any long-term fossil fuel-based schemes, especially those prone to disruption and price shocks from geopolitical conflicts

Why Trump is the favourite in 2024

The Iowa caucus has shown that Joe Biden’s mediocrity has made Americans yearn for an Orange Man comeback

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RT

BraDley Blankenship

N the symphony of American politics, the Iowa caucus has once again unveiled its complex dance as the first major contest in the run-up to the presidential election, leaving candidates and observers alike mesmerized in its wake.

Among the cacophony of contenders, one name resonates louder than the rest – Donald J. Trump. The maverick, the disruptor, the maestro of political showmanship, is back, and his showing in Iowa has stirred both supporters and critics into a fervor.

As the Iowa caucus unfurled its drama on Monday, Trump’s presence loomed large. Despite the unorthodox scenario of a former president participating in a caucus typically reserved for contenders and the fact that he has refused to participate in televised debates with his rivals, Trump’s decision to engage in the Hawkeye State signaled a reprise of the political opera that had captivated the nation during his presidency.

His opening gambit was nothing short of spectacular – a strategic dance between traditional Republican values and his unapologetic Trumpian brand. It was a calculated performance and a firm reminder that the GOP, as it stands today, is unmistakably Trump’s domain.

In short: Trump’s influence was palpable and he never had a chance of losing the caucuses. His base, a formidable force that has weathered storms and controversies, mobilized with a zeal reminiscent of a movement rather than a mere political campaign. The Trumpian faithful, armed with red hats and unwavering loyalty, stood as a testament to the enduring impact of the 45th president.

As the results trickled in, it became evident that Trump’s resonance with the Republican base remains unparalleled. His unique blend of populism, economic nationalism, and an unfiltered approach to politics has forged a connection that defies the norms of conventional Republicanism.

The Iowa caucus, with its intricate dynamics, exposed a conundrum within the GOP. The party finds itself at a crossroads, torn between the allure of Trump’s unapologetic approach and a desire to reclaim a semblance of its pre-Trump identity, with such carbon Republican cutouts as former UN ambassador Nikki Haley and former VP Mike Pence. Trump’s shadow, cast long over the proceedings, poses a challenge that the GOP must confront – embrace the Trumpian legacy or attempt a return to a more tradi-

and delivery infrastructure, especially a smart power grid.

There is nothing novel in the above list.

Our leaders may already be aware of these trends. The real issue is how quickly and effectively they can be put on ground. The following steps will help to manage the desired transition. We require a clear roadmap to define the ultimate shape and structure of the energy sector, by laying down its building blocks and how these are to tie with each other and charting a set of clear and concrete strategies to achieve the nation’s strategic objectives.

The world is moving to phase out its dependence on fossil fuels and switch to electricity derived from renewable and sustainable sources as the main carrier for serving its energy needs. This requires holistic thinking, close coordination, and collaboration among different entities within the energy sector. We need to merge the existing entities in a new entity (like a “national energy commission”) and entrust it with the task of strategic planning, policy formulation, and regulation in the country.

We also need an umbrella legal framework to guide the required transition by defining the nation’s strategic priorities and establishing ground rules and regulations to encourage schemes that are responsive to and supportive of the nation’s strategic energy vision. Future decisions must not base on least cost in any part or sub-sector but from a broader value addition such as security, affordability, and sustainability.

We will need strong modelling capacity to regularly study the threats and challenges posed by global trends. Local capacity for planning of efficient, clean, and renewable energy generation, transportation, and delivery schemes will be critical. A necessary in-

tional conservative narrative, the latter apparently next to impossible.

As the maestro orchestrates his political comeback, the legacy of Trumpism emerges as a defining force. It’s a legacy that transcends party lines and polarizes political discourse.

Trump, with his unfiltered rhetoric and dozens of standing felony charges related to his alleged attempts to overturn the results of the 2020 presidential election, continues to be a lightning rod for both adoration and disdain.

In Iowa, Trump’s legacy was not merely a campaign strategy; it was a spectacle that showcased the enduring influence of a political outsider who disrupted the established norms.

The latest polls show that he is edging out incumbent President Joe Biden in a head-tohead, with the most recent Morning Consult poll having Trump ahead by 2 percentage points. Other polls reflect the same basic direction. Additionally, a recent approval poll by McLaughlin and Associates commissioned by America’s New Majority Project for Biden has him at a 60% disapproval rating. Trump has also been leading Biden in seven swing states since December.

Despite all of his controversies, including his failure to responsibly manage the Covid19 pandemic, his dictatorial handling of the George Floyd protests, and his hints that he wants to transform the US into a dictatorship, Trump has managed to make people nostalgic for a time before Biden. The former vice president was meant to be a technocrat, and someone the American elite could trust to defend their interests and maintain US hegemony.

Biden’s administration has failed miserably at this task, consistently losing diplomatically vis-a-vis China and outright losing its proxy war in Ukraine.

As the curtain falls on the Iowa caucus, Trump’s encore resonates, setting the stage for a political drama that will unfold across the nation. The GOP, a party at a crossroads, must grapple with the echoes of Trumpism – a force that refuses to be confined to the annals of political history.

Trump’s results in Iowa may not be a mere prelude but rather the opening notes of a political saga that promises unpredictability, fervor, and a relentless pursuit of dominance. Some important Democrats recognize this, including Independent Senator Bernie Sanders, who caucuses with Democrats. Sounding the alarm on Trump’s strong showing, he said: “If Democrats hope to win this November, they must stand with working people and fight for an aggressive progressive agenda.”

This will never happen. Biden, whose own base does not believe he is a suitable candidate, once famously said during the 2020 elections that “nothing would fundamentally change” if he were elected, and so he was correct: Under his watch, the rich have gotten richer, the poor have gotten poorer, and the war machine has kept on a-chuggin’.

Biden’s mediocrity has made America yearn for Trump once again, and the results of the Iowa caucus show that Trump is the very clear favourite in this race.

Bradley Blankenship is an American journalist, columnist and political commentator.

gredient of this capacity will be acquiring the tools for planning and design of such schemes and the data for this process.

Suitable financial schemes will be needed to encourage investments in smallscale and distributed energy supply and demand management projects that might otherwise be unattractive to private investors. These can be introduced from the platform of public utilities to cover, or at least share, the initial costs of such projects and later recover these in customers’ bills.

A supportive Research & Development setup will be needed to inform energy sector decision-making. This R&D programme should be tasked to explore the scope of different potential strategies to realize each energy option, identify any hurdles and how these can be removed, and their cost-effectiveness. The new entity proposed above will be the best platform through which such R&D can be assigned and managed.

The world around us is turbulent and is expected to remain so in the foreseeable future. Uncertainty, unpredictability, and instability will rule the global markets.

Pakistan should prepare for navigating through these turbulent times by avoiding its energy sector from becoming locked into any long-term fossil fuel-based schemes, especially those prone to disruption and price shocks from geopolitical conflicts.

Remaining flexible, adaptable, and robust to any such episodes is the best approach for Pakistan to secure affordable, economic, and sustainable energy supplies for its economy and people.

The writer is an independent consultant, specializing in sustainable energy and power system planning and development.

He can be reached via email at: msrahim@hotmail.com

Can US pressure Netanyahu to accept Palestinian state for Israel-Saudi normalization?

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The Biden administration is pushing for a comprehensive deal that would see Prime Minister Benjamin Netanyahu accept the two-state solution in exchange for the Saudis agreeing to normalize ties with Israel

AL-MONITOR Ben Caspit

ILL Prime Minister Benjamin Netanyahu accept a compromise on Gaza and the two-state solution in exchange for normalization of ties with Saudi Arabia? This is the burning question in both the Israeli government and the Biden administration.

Netanyahu has gone to great lengths in recent weeks to express his opposition to a two-state solution in what’s broadly seen as a direct appeal to the right flank of his coalition government as his popularity sags and elections later this year grow more likely.

CNN reported on Jan. 19 that Netanyahu did not rule out the possibility of a Palestinian state when he spoke privately with President Joe Biden. Netanyahu’s office issued a response on Saturday, a rare occurrence on the Jewish Sabbath, likely to avert a storm among the far-right religious members of his government. Netanyahu’s office, however, did not issue a sweeping denial, saying rather that he insists on continued Israeli security control over the entire Gaza Strip, “which contradicts the establishment of a Palestinian state on this territory.”

Biden said on Saturday that he had discussed the issue of Palestinian statehood at length with Netanyahu in their phone call the day prior. When asked by reporters whether a two-state solution was impossible with Netanyahu in office, the president answered, “No, it’s not.”

“Sometimes the US administration seems to enjoy outing Netanyahu for all to see, tearing the mask off his face,” a senior Israeli political source told Al-Monitor on condition of anonymity.

As much as the administration seems to dislike Netanyahu, the White House leaks and other comments by Biden and US officials about Netanyahu may not have been intended to settle scores. They do reflect a pervasive sense in Washington that this might be the last opportunity to negotiate a historic peace deal with the Palestinians and Saudi Arabia. The administration clearly hopes that Netanyahu will embrace this plan as the last chance to salvage his legacy in the wake of the Oct. 7 disaster that occurred under his watch.

There was a sign of similar maneuvering by the Americans during US Secretary of State Blinken’s visit to Israel earlier this month. At a meeting of the Israeli war cabinet, Blinken surprised those

present by thanking Netanyahu for agreeing to allow 150 truckloads of flour into Gaza. The meaningful looks exchanged among the Israelis in the room made it clear that Netanyahu had not shared this decision with the broader cabinet.

The incident underscored Netanyahu’s ongoing effort to balance requests from Washington with trying to placate his extremist partners, ministers Itamar Ben-Gvir and Bezalel Smotrich, who remain angry at being excluded from the war cabinet. Notably, the war cabinet does include Benny Gantz and Gadi Eisenkot, Netanyahu’s centrist political rivals. “Ben-Gvir may not remain in the government for much longer at this rate,” one of Netanyahu’s associates later told Al-Monitor. “Biden is trying to dismantle our government by force. He probably knows exactly what he is doing.”

ALL PART OF THE PLAN? As previously reported by Al-Monitor, Netanyahu continues to talk enthusiastically about the prospects of a historic normalization deal with Saudi Arabia. The leaked American efforts to urge Netanyahu toward the two-state solution could have secretly been agreed upon by the Netanyahu and Biden camps to show that the Israeli premier is under mounting pressure to move forward on the Saudi and Palestinian tracks.

Former Defense Minister Avigdor Liberman told Al-Monitor last week that Netanyahu’s envoy and confidant, Strategic Affairs Minister Ron Dermer, had assured Saudi officials that the prime minister would agree to a clear price for normalization. Liberman claimed Dermer had told Riyadh that Netanyahu’s government would reach an agreement showing Israel’s commitment to eventual Palestinian statehood that would enable an Israeli-Saudi normalization pact to proceed.

In typical Netanyahu doublespeak for Israeli and foreign consumption, a recently launched social media campaign

by Netanyahu’s close associates goes, “Only Netanyahu will prevent the establishment of a Palestinian state,” and “Only Netanyahu will prevent the Palestinian Authority from returning to Gaza.”

Can Netanyahu have his proverbial cake and eat it? One of the prime minister’s associates told Al-Monitor on condition of anonymity, “At some point, he will have to choose, and this stage will not last much longer. Bibi knows the administration’s timetable better than even the administration.”

Netanyahu is caught up in a tangle as the war grinds on. On Tuesday, Israel buried 24 fighters killed when a Hamas RPG blew up the mines and explosives

the Israeli military had prepared to demolish buildings in Gaza. The buildings collapsed, killing those inside, marking the single deadliest day for the Israel Defense Forces since the ground war started.

Israeli troops have intensified operations in the southern Gaza town of Khan Younis, where the Hamas leadership and Israeli hostages are believed to be below ground, but a turning point is still out of sight. While Hamas chief in Gaza Yahya Sinwar clearly cannot stop the Israel juggernaut crushing Gaza, he is proving unexpectedly resistant to Israeli pressure, likely thanks to Hamas’ immense tunnel infrastructure. Sinwar may think time is on his side, as Netanyahu may not be able to carry out his vow to kill the Hamas leader quickly enough.

‘NETANYAHU WILL HAVE TO CHOOSE’: Washington is well aware of Netanyahu’s constraints and is deftly exploiting them. While clearly deeply frustrated with Netanyahu, the Biden administration will not fall into the trap that caught the previous Democratic administration under Barack Obama. “No one will enter lengthy negotiations of attrition with Netanyahu now, at the end of which he will flee once again,” a senior diplomatic source told Al-Monitor, referring to the 2013-2014 Obama peace initiative that eventually unraveled. “Biden has no time for that. The Americans intend to reach an agreed formula with the Saudis and present the grand plan on their behalf very soon.

Netanyahu will have to choose.”

The Americans are expected to present an outline for a tripartite arrangement under which Israel will end the war in Gaza, recognize the two-state solution in principle and agree to the presence of a reformed Palestinian Authority in Gaza and in return, Saudi Arabia will agree to normalize ties with Israel.

Still, a resolution of the conflict with Gaza would not necessarily end the ongoing fighting with Hezbollah, which fired dozens of rockets into northern Israel on Tuesday, including at a major air force control base. Hezbollah said the attack was a response to Israeli airstrikes deep within Lebanese territory on Monday.

Netanyahu’s agreement to swallow the bitter pill of a future Palestinian state, even in principle, will dismantle his farright government and leave him with two options. He could either call elections and hope his breakthrough with Saudi Arabia will make up for the Oct. 7 debacle, or abandon his dream of being the architect of Israel’s peace accord with the Kingdom of Saudi Arabia and instead devote himself to a plea agreement to settle his ongoing corruption trial.

06 NEWS

Thursday, 25 January, 2024 | KARACHI

CHINA’S ATTEMPTS TO LIFT CONFIDENCE IN ECONOMY FALL FLAT PROFIT

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Chinese Premier Li Qiang went to the World Economic Forum in Davos last week with a mission to present a positive image of the economy and schmooze financial elites: “Investing in the Chinese market is not a risk, but an opportunity.”

As soon as Chinese markets reopened the next day, a years-long sell-off in stocks and other assets accelerated, even as official data confirmed Li’s surprising early reveal that economic growth comfortably hit last year’s target.

“The news was not the data. It was Li Qiang in Davos,” said Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis. “It was really underwhelming and bewildering. It doesn’t show confidence.”

“To just give a number that everybody was expecting … it’s bewildering. Was there anything else?”

What markets were looking for was a clear roadmap for how China planned to resolve a deepening property crisis and a local government debt crunch, and how it plans to address a debt-fuelling imbalance of low consumption and high investment.

Advertisement · Scroll to continue The disconnect between the positive of-

ficial messaging and the concerns that nervous investors and penny-pinching Chinese citizens are raising over the economy is growing.

Analysts warn China’s struggle to get its message across to the broader public fuels uncertainty in the decision-making process at the top and risks eroding market and consumer confidence further.

Alfred Wu, associate professor at Lee Kuan Yew School of Public Policy in Singapore, says one of the root causes is the concentration of power in President Xi Jinping’s third term, which creates hesitation at lower levels in making policy choices, as well as communicating with the public.

“The information flow through the system has become very slow in Xi’s third term. The market started to worry, but no policies came out. And when policies were announced, they were too late,” said Wu. “As a market player, you have no idea what’s going to happen tomorrow. That’s a scary thing. At the end of the day, it’s confidence – people don’t believe the narrative.”

The Shanghai and Shenzhen stock exchanges have seen $3 trillion of value wiped out since the end of 2021.

Stocks rose slightly on Wednesday after central bank Governor Pan Gongsheng said China will cut the amount of cash that banks

must hold as reserves from next month, but questions about the economy’s near- and medium-term growth potential still linger.

“It’s one of the usual tricks the authorities resort to when they want to provide some support,” said Chris Scicluna, head of economic research at Daiwa Capital Markets. “It’s a welcome step, but it’s not going to be game-changer.”

REPEATED PLEDGES Investors raised eyebrows over China’s messaging as early as last March, after a speech Li Qiang made at a Chinese business forum where he declared the country “open for business” after years of stringent COVID-19 restrictions.

His words landed as Chinese authorities were raiding U.S. due diligence firms and detaining their staff.

In July, as the post-COVID recovery appeared to be sputtering, China’s leadership pledged to support the economy, raising expectations for policy stimulus.

The readout from a key Communist Party meeting that month removed the oftcited phrase “houses are for living in, not for speculation,” sparking a rally in the shares of property developers.

Policymakers also promised “a basket of measures” on local government debt. And they flagged their intention to make house-

hold demand a key driver of growth.

The measures that have been trickling through since have underwhelmed. Lower mortgage rates and the removal of some curbs on property purchases have failed to boost demand as investors and would-be home buyers worry about debt-laden developers collapsing before finishing housing projects. Authorities have still not announced a grand plan on how to tackle high levels of municipal debt, which are hobbling the central government’s efforts to boost local economic activity and raising worries about systemic risks to banks.

And there haven’t been any measures to redirect economic resources from infrastructure investment and the manufacturing sector to Chinese households, which have seen their wages fall, and the job market weaken.

“Communicating with markets is useful, but we must have forceful policy steps,” said Xu Hongcai, deputy director of the economic policy commission at the statebacked China Association of Policy Science.

“The market will not be fooled if you only shout empty slogans.”

‘BRIGHT THEORY’ At the end of last year, investors were glued to their screens awaiting highlights from the Party’s annual economic confer-

China, Uzbekistan upgrade bilateral ties BEIJING

Mian abrar

China and Uzbekistan upgraded bilateral ties to an all-weather comprehensive strategic partnership for a new era on Wednesday during talks between Chinese President Xi Jinping and his Uzbek counterpart, Shavkat Mirziyoyev, here in Beijing.

Experts noted that as China and Uzbekistan’s relationship has entered a new level, the two will see increased cooperation in both new and traditional sectors. Moreover, the turbulent international society highlights the urgency of stepping up security collaboration between China and Uzbekistan, as well as other Central Asian countries.

Xi pointed out that 32 years ago, Uzbekistan took the lead among Central Asian countries in establishing diplomatic relations with China. The two peoples have inherited the spirit of the Silk Road, and the friendship between China and Uzbekistan has deep roots and flourishing vitality.

Building a more meaningful and dynamic China-Uzbekistan relation is the common aspiration of the two peoples, Xi said. Both sides should take the development of the all-weather comprehensive strategic partnership for a new era as an opportunity to build a solid foundation for

the community of a shared future between China and Uzbekistan with high-level political mutual trust, and to promote their respective modernization endeavors through high-quality joint construction of the Belt and Road Initiative (BRI), he noted.

Xi emphasized that the China-Uzbekistan relationship is good because both sides have always treated each other with sincerity and trust. Faced with the current complex international situation, both sides should firmly support each other.

China firmly supports Uzbekistan in safeguarding national sovereignty, independence and territorial integrity, and firmly

supports Uzbekistan in independently choosing its development path.

For his part, Mirziyoyev said that he hopes this visit will be an important opportunity to further strengthen mutual trust, expand comprehensive cooperation, and promote high-quality joint construction of the BRI. Mirziyoyev said he hopes to achieve more fruitful results in practical cooperation in various fields such as economy and trade, agriculture, green energy, local development, tourism and people-to-people exchanges.

The elevation of bilateral ties signals that China’s relationship with Uzbekistan

has entered a new era, Zhao Huirong, an Eastern European studies expert from the Chinese Academy of Social Sciences, told media. Zhao noted that the Uzbekistan president’s visit reveals the great importance he attaches to ties with China.

Another dimension to Mirziyoyev’s visit is to promote cooperation, especially after the China-Central Asia Summit last year. China’s cooperation with Central Asia has now expanded, and there is vast potential for cooperation, Cui Heng, an assistant research fellow from the Center for Russian Studies of East China Normal University, told media. He noted that there are several projects being carried out between China and Uzbekistan, including the promotion of the China-Kyrgyzstan-Uzbekistan railway, and this visit serves to push them forward.

Cui said that as Central Asian countries are undergoing an energy transformation, they are eyeing cooperation with China, a leading country in green transformation, to help them speed up the process. Chinese Commerce Minister Wang Wentao met with Jamshid Khodjaev, Deputy Prime Minister of Uzbekistan on Tuesday. Wang said that in 2023, China and Uzbekistan achieved a record high in bilateral trade volume, with China being Uzbekistan’s largest trading partner for many years.

ence and the twice-in-a-decade financial policy meeting.

The first resulted in vague pledges of “policy adjustments,” while the latter flagged plans to step up Party oversight over a $61 trillion financial sector whose asset book is deteriorating due to the property and municipal debt woes. “After a crisis, you need banks to have animal spirits and to feel like they should lend, so if you crack down on them, it’s going to slow down the recovery,” said Marko Papic, chief strategist at Clocktower Group.

The country’s ministry of state security said in December there was a need to “sing the bright theory of China’s economy” warning of “clichés aimed at denigrating and casting doubt on the system and path of socialism with Chinese characteristics.” “If you look hard enough every day, there’s something positive in terms of China policy and relaxation of measures or a little bit of stimulus here and there,” said Paul Greer, an emerging debt fund manager at Fidelity.

“It’s almost got to the point where you’ve kind of become desensitised to it.”

Additional reporting by Kevin Yao, Liangping Gao, Ellen Zhang in Beijing and Karin Strohecker and Jorgelina Do Rosario in London; Writing by Marius Zaharia; Editing by Kim Coghill

Russia accuses Ukraine of killing 65 of its own POWs by shooting down plane UKRAINE

agenCieS

Russia accused Ukraine on Wednesday of deliberately shooting down a Russian military transport plane carrying 65 captured Ukrainian soldiers to a prisoner exchange in what it called a barbaric act of terrorism that had killed a total of 74 people. The Russian defence ministry said six Russian crew members and three Russian soldiers had been on the Ilyushin Il-76 military transport plane shot down near the Russian city of Belgorod near the Ukrainian border. “The Ukrainian leadership was well aware that, in accordance with established practice, Ukrainian servicemen would be transported by military transport aircraft to the Belgorod airfield today to be exchanged,” a ministry statement said. “According to an earlier agreement, this event was to take place in the afternoon at the Kolotilovka checkpoint on the Russian-Ukrainian border,” it said. “By committing this terrorist act, the Ukrainian leadership has showed its true face. It disregarded the lives of its own citizens.” Russia’s foreign ministry called the shooting down “a barbaric act”. Mykhailo Podolyak, a Ukrainian presidential adviser, told Reuters: “Comments will come a little later. Time is needed to clarify all the data.” Video posted on the Telegram messaging app by Baza, a channel linked to Russian security services, and verified by Reuters, showed a large aircraft falling towards the ground near the village of Yablonovo in the Belgorod region and exploding in a vast fireball.

Donald Trump closes in on Biden rematch after New Hampshire win US

agenCieS

Donald Trump won the key New Hampshire primary on Tuesday, moving him ever closer to locking in the Republican presidential nomination and securing an extraordinary White House rematch with US President Joe Biden.

With around 80 per cent of votes counted, Trump’s winning margin hovered at about 11 percentage points, but his sole remaining challenger Nikki Haley vowed to fight on.

Trump, 77, attacked Haley in a rambling victory speech and said that when the primary contest reaches her home state of South Carolina, “we’re going to win easily.”a Trump’s address was loaded with his trademark ominous warnings about immigration as he continued to lie about winning the 2020 election.

In her speech, Haley insisted the race was “far from over” and told supporters that Democrats actually want to run against her former boss, due to his record of sowing “chaos.”

“They know Trump is the only Republican in the country who Joe Biden can defeat,” Haley, 52, said.

Despite adding New Hampshire to his previous easy victory in Iowa — and looking near unstoppable as he seeks to become the Republican candidate in November — Trump kept to his hard-right messaging, with no hint of reaching out to the more moderate voters who supported Haley. At one point swearing on primetime TV, Trump said the United States was a “failing country” and claimed that undocumented migrants were coming from psychiatric hospitals and prisons and “killing our country.”

Biden responded by saying: “It is now clear that Donald Trump will be the Republican nominee.”

“And my message to the country is the stakes could not be higher. Our Democracy. Our personal freedoms — from the right to choose to the right to vote,” Biden said in a statement.

With strong turnout in the northeastern state, Haley had hoped for a major upset. But US broadcasters quickly projected her defeat as the first tallies came in.

Trump was already the runaway leader in national Republican polling, despite two impeachments as president, and four criminal trials hanging over him since leaving office.

While Haley repeatedly questioned Trump’s mental fitness, her efforts in New Hampshire were not expected to create much more than a speed bump for the populist rightwinger’s surge to November.

“I think it’s a two-person race now between Trump and Biden,” Keith Nahigian, a veteran of six presidential campaigns and former member of Trump’s transition team, told AFP. New Hampshire was markedly more Haley-friendly than the states she will subsequently face, should she stay in the race, and continuing into February and South Carolina will be a tough sell.

Trump won a crushing victory in the first Republican contest in Iowa last week, with Haley a distant third.

What was once a crowded field of 14 candidates then narrowed to a one-on-one matchup on Sunday after Florida Governor Ron DeSantis dropped out following his secondplace Iowa finish.a

Major Policy Package: China injects $140b into market to boost economy BEIJING

Staff CorreSpondent

Chinese policymakers on Wednesday issued a package of major policies to boost the country’s economy, including cutting the amount of cash that banks are required to hold as reserves to inject nearly $140 billion into the economy and lowering refinancing and rediscount rates, signalling that China is stepping up efforts to ensure stable economic recovery in 2024.

At a closely watched wide-ranging news conference, central bank officials addressed various hot topics facing the Chinese economy from the property sector to the capital market to local government debt, and they made it clear that they have plenty of room for policy maneuvers to tackle those challenges.

The growing policy signals evidently lifted market sentiment, as Chinese stocks on Wednesday reversed several days of declining.

Calling the policy measures “rare” and “exceeding expectations,” Chinese economists said the moves marked a significant easing in China’s monetary policies and underscored policymakers’ determination as well as capabilities to keep the world’s second-largest economy on a steady recovery trajectory in 2024, despite lingering downward pressure.

In the most significant move, Pan Gongsheng, governor of the People’s Bank of China (PBC), China’s central bank, announced at the press conference on Wednesday that China will cut the reserve requirement ratio (RRR) by 50 basis points from February 5. The move will inject 1 trillion yuan ($139.5 billion) of long-term liquidity into the market.

The RRR is a major policy tool for the PBC to manage liquidity. Wednesday’s announcement marks the first RRR cut in 2024. The PBC cut the RRR twice in 2023, with the last cut taking place in September 2023.

Signing of exploration licences and petroleum concession agreements at SIFC ISLAMABAD

Staff report

OGDCL's focus on aggressive exploration strategy resulted in acquiring of exploration blocks. OGDCL participated in Government announced Bidding Rounds for new Exploration Blocks in June, 2023 and November, 2023. OGDCL won four Exploration Blocks as Operator with 100% Working Interest and two Exploration Blocks as JV partners. The financial Investment by OGDCL would be around 12 Million USD. A signing ceremony of Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) for the Blocks was held on 24th January, 2024 at 1030 hours at SIFC Secretariat, Prime Minister Office, Islamabad. Signing Ceremony was graced by Minister of Petroleum, Director General SIFC. The ceremony was chaired by Secretary Petroleum, DGPC, MD/CEO OGDCL and other members. MD OGDCL signed the PCAs of Sehwan EL (Sindh), Zindan-ll EL (Punjab), Kotra East EL (Baluchistan) and Murradi EL (Sindh) with 100% Working Interest. Two non-Operated PCAs were also signed.

Saruna West EL (Baluchistan) and Gambat-ll (Sindh) with OGDCL's 30% Working Interest.

Thursday, 25 January, 2024 | KARACHI

CORPORATE CORNER

inDrive remains market lead ride-hailing company consecutively for two years

inDrive, a global mobility and urban services platform operating across 46 countries, was the world’s second most downloaded ride-hailing app in 2023, retaining this accolade for a second consecutive year, according to data.ai. inDrive became the market leader within six months of its launch in Pakistan in 2021. inDrive also achieved a notable milestone, ranking as the fourth most downloaded application worldwide in the Travel category. Data.ai shows the total downloads of the inDrive app amounted to 66.6 million in 2023, based on Google Play and App Store data (China is iOS only). Maintaining its position as the second most downloaded ride-hailing app globally, inDrive holds the number one position in many countries, including Pakistan, Egypt, Morroco, Peru and Columbia, Panama, Ecuador and Nepal, with staying in 2nd and 3rd position in more than 17 countries making inDrive the top choice for travelers as per the data.ai release. inDrive continues to enjoy robust growth as it adds new services, including freight, courier delivery, intercity rides and B2B delivery while expanding its core ridesharing offering to new geographies. Over the past year, in Pakistan, inDrive expanded its business to over 20 cities for ride-hailing and 200+ cities for city-to-city while running other vertices like couriers and inDrive.Freight successfully. Globally; inDrive launched in the Miami and South Florida region of the U.S. While scaling quickly, leveraging its unique peer-to-peer pricing model, inDrive remains committed to pursuing its super mission of challenging social injustice globally by helping create affordable transportation options for passengers and fair earning opportunities for drivers.

USC operating with largest digital network in Pakistan ISLAMABAD

staff report

The best database to simultaneously record online transactions of more than 4000 stores and more than 130 warehouses, Best Point of Sales System, Human Resource Management, Supply Chain Management, and Financial Management Masterpiece System, the provider of govt Targeted Subsidy on Foodstuffs to BISP customers with NADRA record is the only digital system of Utility Stores Corporation (USC). The discussion of this new system is now happening in the world, which is an honor for the entire country. Shakeel Ahmed, General Manager Information Technology, Utility Stores Corporation, described the computerization of Utility Stores in the best possible way at the World Economic Forum 2024 in Davos Switzerland, which is an important milestone and honor for Utility Stores Corporation and Pakistan.

CDA taking several steps to provide best facilities to citizens ISLAMABAD

staff report

The administration of the Capital Development Authority (CDA) is taking several steps to provide the best facilities to the citizens. In this regard, the CDA administration is fast-tracking the installation of pedestrian bridges at three different places in view of the facilities for pedestrians crossing the Srinagar highway, which is in the final stages so that road accidents can be reduced. According to the details, due to the installation of one of these three pedestrian bridge from 26 January 2024 at 10PM to 28 January 2024 at 10PM Sector G7/4 Opposite Chairman Office CDA, Metro Bus Station, Srinagar Highway will be completely closed for all types of traffic. Moreover, the Capital Development Authority has also appealed to the Islamabad Traffic Police to arrange timely alternative routes in view of the facilities of the public so that the citizens do not face any kind of difficulties. Likewise, the CDA administration has also appealed to the public to fully cooperate with the Islamabad Traffic Police to avoid any kind of accident.

NayaPay, Alipay+ boost global payments into Pakistan ISLAMABAD

staff report

NayaPay, a rapidly growing financial platform, has partnered with Alipay+, a cross-border digital payments and marketing platform operated by Ant International. The collaboration between NayaPay and Alipay+ is set to make a significant impact by deploying QR codes compatible with both RAAST and Alipay+ payment partners, including e-wallets and bank apps, thereby enhancing incoming foreign exchange flows and integrating the cashless payment systems of global markets and Pakistan. This strategic alliance is specifically designed to streamline digital payments, tackling prevalent issues such as limited interoperability and elevated transaction costs. Through this partnership, NayaPay is well-positioned to provide Pakistani businesses of all sizes, particularly SMEs, with a seamless connection to more than 25 Alipay+ global payment partners, which reaches a total of more than 1.5 billion consumer accounts, in addition to RAAST. This initiative ensures that transactions are not only efficient but also secure, marking a major step forward in the digitization of commerce in Pakistan. Furthermore, this partnership is anticipated to empower businesses in Pakistan to transact seamlessly with global visitors through a low-cost and fast payment system.

This will foster documented and cashless trade and tourism between the two countries.

07

KSE-100 INDEX GAINS OVER 300 POINTS AMID POSITIVE INVESTOR SENTIMENT NEWS

T

PROFIT

Monitoring Desk

HE Pakistan Stock Exchange (PSX) experienced a significant rally on Wednesday, as the benchmark KSE-100 index soared by 368.21 points, reflecting a strong positive sentiment among investors.

The index, which is a key indicator of the market’s health, witnessed a notable increase, underscoring the growing investor confidence in the Pakistani market.

Detailed data from the PSX revealed that by 12:04 pm, the KSE-100 index had risen sharply by 512.78 points, an increase of 0.8 percent. This surge pushed the index to 64,967.0, up from its previous close at 64,454.22.

Despite a minor pullback, the market closed on a high note at 64,822.43, registering a gain of 368.21 points or 0.57 percent from the previous close.

This rally at the PSX is a clear indication of the strengthening investor confidence in Pakistan’s economic environment and the market’s potential for continued growth.

Federal Govt would provide all possible support for agricultural revolution: Kausar Abdullah GILGIT

staff report

Caretaker Federal Minister for National Food Security & Research Dr. Kausar Abdullah Malik has said that the Federal Government would provide all possible support for the agricultural revolution in GilgitBaltistan. He said that the soil of Gilgit-Baltistan has unique potential for agriculture, commodities and dryfruits. He expressed these views during a meeting with the Chief Minister of Gilgit Baltistan Mr. Gulbar Khan on Wednesday.

Dr. Kausar Abdullah Malik said that the federal government is still supplying 100% local wheat to Gilgit-Baltistan and local wheat will be supplied next year as well.

On this occasion, Chief Minister of Gilgit-Baltistan Mr. Gulbar Khan thanked the federal government for the steps taken to solve the wheat problems on a prior-

ity basis.

The Federal Minister stressed that directives would be issued to the Pakistan Agricultural Research Council (PARC) to form a team for further increasing the agricultural potential of Gilgit-Baltistan so that GilgitBaltistan becomes self-sufficient in agriculture sector in the future.

He said that the Gilgit-Baltistan government should prepare a proposal regarding the supply and delivery of wheat for its convenience, which will be earnestly considered.

Gaming in Pakistan booms to 30m+ users fueled by Jazz super 4G and Innovative GameNow Platform ISLAMABAD

staff report

Jazz, Pakistan’s largest digital operator, has announced the launch of its groundbreaking GameNow app, set to revolutionize the gaming landscape for over 30 million enthusiasts who will get to enjoy exclusive gaming content with varying payment options. The innovative app promises a seamless and immersive gaming experience, catering to the diverse tastes and preferences of the vibrant gaming community in Pakistan.

With a dynamic blend of cutting-edge technology and usercentric design, GameNow is more than just another gaming app, offering a comprehensive platform designed to deliver diverse gaming experiences and create a robust local gaming ecosystem. The platform covers various gaming categories, including casual, hyper-casual, multiplayer, game streaming, and esports games to cater to a wide array of gaming

preferences. The platform also offers flexible payment options to users in Pakistan.

Sharing his thoughts on the development, Ali Fahd, Head of Marketing at Jazz, said, "With over 30 million users, the gaming landscape in Pakistan has flourished, thanks to Jazz Super 4G services and the innovative GameNow Platform. Proudly introducing the groundbreaking GameNow app, Jazz reaffirms its commitment to delivering an unmatched gaming experience, showcasing our dedication to elevating digital entertainment and connectivity for our valued users.”

The platform integrates digital vouchers within the app, streamlining the process of buying and redeeming vouchers for various in-game items, with its comprehensive merchant aggregation services making it a Play Store alternative for Pakistani gamers. GameNow offers flexible pricing plans catering to various preferences and budgets, allowing users to choose from Premium, Economy, and Basic Packages.

Besides serving as a central gaming hub, GameNow also offers streaming services, allowing users to watch live gameplay, tutorials, and reviews.

NCRC unveils comprehensive 3 year strategic plan ISLAMABAD

staff report

Addressing the pressing need arising from the swiftly changing factors impacting the child rights landscape in Pakistan, the National Commission on the Rights of Child (NCRC) unveiled a forward-thinking 3-year strategic plan and a policy brief on child trafficking.

This initiative is a result of a comprehensive desk review and consultative process with key stakeholders, child rights experts, and voices from civil society, demonstrating the NCRC's commitment to promote and protect child rights in line with Pakistan’s international obligations.

The NCRC's strategic vision is anchored in the promise to uphold the rights of every child. By the year 2026, the strategic plan aims to deliver a measurable improvement in the enforcement of child rights, making every effort that this promise is translated into impactful evidence-based actions by state entities and civil society.

A key priority outlined in the strategic plan is the focus on evidence generation and knowledge. The NCRC aims to build a robust foundation of evidencebased practices, equipping policymakers and stakeholders with the insights needed to inform impactful policies and interventions.

Emphasizing collaboration as a cornerstone, the NCRC's strategic plan prioritizes partnerships with diverse stakeholders. The collaborative approach recognizes the collective responsibility of all sectors to protect and promote the rights of children in

Pakistan. Finally, the strategic plan is not just a document; it represents a commitment to transformative actions.

During the launch, Chairperson NCRC Ayesha Raza Farooq emphasized the potential impact of the strategic plan. "This is not just a roadmap; it is a commitment to transforming the destiny of our children.

By implementing evidence-based strategies and fostering partnerships, we aim to actively enforce the rights of every child in Pakistan," stated Ayesha Raza Farooq.

Dr. Rinchen Chophel, Member of the United Nations Committee on the Rights of the Child (UNCRC) addressing the launch event stated “The Commission’s strategic plan is a beacon of hope, providing a roadmap for transformative actions. As a Member of the United Nations Committee on the Rights of the (UNCRC), I commend this initiative and believe it will contribute significantly to shaping a future where the rights of every child are not only acknowledged but actively protected and promoted."

NUST think tank holds high-level national seminar on ‘Pakistan’s Economic Crisis’ ISLAMABAD

staff report

Effective implementation of bold and ambitious reforms is imperative to usher in a new era of development and prosperity in the country. The accomplishment of this goal, however, is contingent upon addressing critical underlying institutional, governance, and structural constraints. Dr Shamshad Akhtar, Caretaker Federal Minister for Finance, Revenue & Economic Affairs, made these remarks during her keynote address at the national seminar on “Pakistan’s Economic Crisis: Challenges and the Way Forward,” organised by NUST Institute of Policy Studies (NIPS) at the university’s main campus. Dr Shamshad Akhtar highlighted five key areas that have increased the vulnerability of Pakistan’s economy to domestic and global shocks: first, unsustainable fiscal policy due to revenue gaps and unproductive expenditure; second, fiscal unsustainability has enhanced government recourse to public debt which has increased; third, climate shocks as the global warming model predicts that Pakistan’s weather patterns would become even more volatile and extreme in the decades ahead, with an average increase in temperatures by 1.3% to 4.9% by 2090; fourth, the lack of innovation and diversity in the structure of the economy; and fifth, the failure to integrate Pakistan’s economy with the rest of the world. Dr Shamshad further stressed five critical areas of reforms essential to reducing Pakistan’s vulnerabilities and fostering sustainable growth that included.

RTO Rawalpindi seals counterfeit cigarette manufacturing factory

On the directions of Member (IR-Operations) Mir Badshah Khan Wazir and under the supervision of Chief Commissioner Regional Tax Office Rawalpindi, a counterfeit cigarette manufacturing factory was raided and sealed in the area of Jhangi Syedan in Rawalpindi. The Additional Commissioner Headquarters Riaz Khan headed the raid which was carried out by Assistant Director Shujaat Khan and his team. The RTO Team recovered machinery and counterfeit cigarettes worth millions of rupees and then sealed the factory. The said factory was secretly built in the basement of a building, where counterfeit cigarettes of various brands were being manufactured and supplied all over Pakistan.

PTA invites public feedback on draft framework for MVNO services in Pakistan ISLAMABAD

staff report

Pakistan Telecommunication Authority (PTA) invites comments/ feedback on draft framework for Mobile Virtual Network Operator (MVNO) services. The draft consultation framework is available at PTA website (https://www.pta.gov.pk/en/data-&-research/consultation-papers). Comments (through email or in print form) on the draft MVNO framework may be submitted at faheemahsan@pta.gov.pk or Director General (Wireless Licensing), PTA Headquarters, F-5/1, Islamabad. The deadline for responding is 8th February, 2024. The draft framework may contribute in further growth of telecom sector of Pakistan by providing opportunities of new investments.

Ministry of OP&HRD celebrates remarkable academic accomplishment ISLAMABAD

staff report

The Special Assistant to the Prime Minister (SAPM) for Overseas Pakistanis and Human Resource Development (OP&HRD), Jawad Sohrab Malik, celebrated remarkable academic accomplishment of Miss Basimah Usman, a student of OPF College, at OPF Head office Islamabad. The event took place in the presence of her family, faculty, and peers at OPF College. Miss Basimah Usman, who secured the highest marks globally in the Urdu Cambridge IGCSE, June 2023, and was honored with the prestigious Out-

standing Cambridge Learner Award.

In his capacity as the Chief Guest, Mr. Jawad Sohrab Malik conveyed heartfelt congratulations to Miss Basimah Usman for her extraordinary dedication and academic excellence.

He emphasized that this achievement not only reflects the high standards of education at OPF College but also showcases the immense potential and talent of Pakistani students on the global stage.

"Miss Basimah Usman's accomplishment is a testament to the quality of education in Pakistan, and her success underscores our commitment to nurturing and recognizing exceptional talent within the country. This event

marks a significant milestone not only for Basimah but also for Pakistan, as she has brought international recognition to our nation.", stated SAPM, Jawad Sohrab Malik, during the occasion.

The ceremony served as a meaningful platform to acknowledge and celebrate the outstanding accomplishments of Miss Basimah Usman, highlighting Pakistan's dedication to fostering academic excellence and empowering its youth. SAPM, Jawad Sohrab Malik commended both OPF and OPF College for their unwavering dedication to providing quality education and producing students who make significant contributions to the global academic landscape.

WHY DID AUTOMOTIVE CKD/SKD IMPORTS SPIKE IN DECEMBER?

Thursday, 25 January, 2024

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Automotive industry is at record lows, but car companies imported more CKD/SKD kits than normal

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OR the first time since November 2022, the import of completely knocked down (CKD) and semiknocked down (SKD) automotive kits in Pakistan surpassed the $100 million mark, reaching a staggering $119 million. This figure not only eclipses the combined values of November and October, but also surpasses the average monthly import figure of $89 million recorded from July 2022 to December 2023. However, this comes amid the eighteenth month of the automotive industry’s turmoil, with no signs of respite. All of this has fuelled conjecture that the automotive industry might be poised

for a comeback.

SO, WHAT’S GOING ON? Let’s begin with the breakdown of the figure itself. The $119 million CKD/SKD imports are divided into three categories: bus, trucks, & heavy vehicles, cars, and motorcycles. Examining the specific breakdown of import categories, the cause for the increase is evident: a surge in CKD/SKD kits for cars.

CKD and SKD kits for cars amounted to $104 million in December. This is the single highest figure from July 2022, when the current economic crisis erupted, till date.

Before proceeding further, let’s elaborate on what the CKDs and SKDs that we’re talking about even are. Both SKD and CKD are terminologies used to delineate the extent to which a product has

been assembled prior to its arrival at the recipient’s end. SKDs are partially assembled products that require some assembly work to be undertaken by the recipient.

Some of the assembly work has been accomplished at the origin point, yet some remains to be executed. Conversely, CKDs are essentially individual components of a product that are shipped collectively, but necessitate full assembly at the destination by the recipient to render the product operational as intended.

The increase in import of CKD and SKD kits for cars defies logic. According to the Pakistan Automotive Manufacturers Association (PAMA) latest figures, car sales for December 2023 clocked in at 5,342 which was a drop of 10% compared to No-

vember, and a colossal 65% decline compared to December 2022. What is happening then? A correction by the looks of it.

“At first glance, it seems the industry is sanguine and gearing up for a post-election economic revival; however, the data suggests that the increase is due to a backlog cleared by customs,” explains Syed Asif Ahmed, General Manager of Sales and Marketing at MG Motors. Whilst there is still no clarity on when this backlog is from, October seems to be the most plausible candidate due to the $23 million in CKD/SKD imports that were recorded in that month — the low-

If elected, would form govt with independent candidates: Bilawal Bhutto LAKRANA

Staff RepoRt

PPP Chairman Bilawal Bhutto-Zardari has said he would prefer to form a government with independent candidates.

In an interview with Reuters in Larkana, Bilawal said, “You know, lots of independent politicians, probably the highest (number) in our history, are taking part in the coming elections.”

It should be noted that after the PTI was stripped of its iconic ‘bat’ symbol, most of the independents would comprise PTI leaders who are contesting the upcoming elections as independent candidates. Party leader Gohar Khan has also expressed fears of horse-trading and floor crossing.

Positioning himself as an alternate to the PML-N and PTI, Bilawal had recently called on supporters of ex-PM Imran Khan to vote for him while their leader is in jail.

In the 2013 elections, the PPP came second after PML-N, garnering 42 of the 342 seats up for grabs. In 2018, with 54 seats, it was runner-up to the parties of both Nawaz and Imran.

However, Bilawal ruled out joining hands with either contender saying he preferred to form a government with independent candidates.

The PPP chairman spoke to Reuters in an interview during a gruelling fourweek campaign that took him to more than 33 towns, while other parties began canvassing just last week.

Youth appeal and ambitious plans to combat climate change form the core of his effort to become the prime minister, which, if successful, would make him its youngest premier since his mother Benazir Bhutto was in office.

If Bilawal won the election, subject to the vagaries of government formation, calculations show he could be just 25 days short of his mother’s age on entering

office in 1988, at the earliest.

“I haven’t actually counted, but […]

I think she was the youngest,” he responded when asked how he rated his chances. Asked if he thought the military establishment backed former premier and PML-N supremo Nawaz Sharif, Bilawal responded: “He’s certainly giving the impression that he is relying on something other than the people of Pakistan to become prime minister for the fourth time.”

The 35-year-old called for new ideas and leadership to calm political and economic instability.

“The implications of the decisions taken today are going to be faced by the youth of Pakistan. I think it would be better if they were allowed to make those decisions.” Bilawal plans to tap into widespread anger, saying he has a concrete plan to provide free electricity and boost social safety programmes, despite fiscal constraints. “What we propose is to completely restructure Pakistan’s development model, putting the threat of climate change front and centre,” he said, in a reflection of his party’s election manifesto.

It aims to ensure that funds exceeding $10 billion pledged last year go to fight climate change, after super floods in 2022 that displaced more than 7 million people.

About two-thirds of Pakistan’s population of 241m is younger than 30, while its prime ministers since 2000 have been older than 61, on average.

‘Nomination Rejection’: Pervaiz Elahi challenges LHC’s Jan 13 decision in SC ISLAMABAD

Staff RepoRt

Former Punjab Chief Minister Chaudhry Pervaiz Elahi on Wednesday took legal battle to the Supreme Court, challenging the decision of the Lahore High Court’s January 13 ruling, which upheld the Election Tribunal regarding the rejection of his nomination papers.

In the appeal filed, Pervaiz Elahi has targeted the Lahore High Court’s ruling on January 13, seeking the annulment of the decision.

The rejection was based on objections raised by candidate Muhammad Salim, who alleged that Pervaiz Elahi

ECP asks LG representatives to refrain from facilitating election candidates ISLAMABAD

Staff RepoRt

The Election Commission of Pakistan (ECP) taking notice of complaints regarding abuse of powers by local government representatives has warned them to refrain from ‘facilitating’ them in political activities and electioneering. The electoral watchdog responding to the complaints against local government representatives issued writing orders to all provincial chief secretaries, and election commissioners. The ECP in the letter refrained local body representatives from providing “manpower and government machinery” to election candidates in political activities and electioneering, noting that such facilitation was a violation of “code of conduct”. “The representatives should refrain from facilitating candidates,” it said, adding that strict action will be taken against all violators of the ECP code. The election commission also directed district monitoring teams to intensify monitoring of election campaign. “The teams should take action on code of conduct violations”, it added. The general elections in Pakistan are scheduled to take place on February 8 for which arrangements are in the final stage. A day earlier, the ECP seized the development funds of local and cantonment boards across the country, until announcement of the results of the general elections 2024. According to the notification issued by the Election Commission of Pakistan, the development funds of the local and cantonment boards have been frozen to ensure free, fair, and transparent polls on February 8. The notification stated that the local governments will only carry out the day-to-day affairs of sanitation and cleanliness, but no development scheme will be announced or worked on. It has been further stated in the notification that local governments and cantonment boards will not award tenders till the results of the general elections 2024.

holds shares in Lahore Modern Flour Mills.

Pervaiz Elahi contends that not only are the accused flour mills inactive, but no bank account has been opened in his name, and he vehemently denies purchasing any shares in the said flour mill. According to him, an inactive flour mill should not be considered as an asset.

The petition argues that disqualifying him from the election based on this flour mill contradicts established principles. Merely not disclosing an asset should not automatically result in disqualification, and the intention behind non-disclosure should be scrutinized.

Pervaiz Elahi asserts that the attributed value of

the shares is a mere 24,850 rupees, a negligible amount compared to his total disclosed assets of 175 million rupees. Among these assets, he claims to have revealed over 57 million rupees in cash. He argues that the omission of such a small share cannot be considered malicious.

Furthermore, objections were raised regarding the non-disclosure of seven arms licenses. Pervaiz Elahi defends himself, stating that there is no column in the nomination papers for disclosing arms licenses.

The legal battle unfolds as Pervaiz Elahi fights to overturn the decisions that could impact his candidacy in the upcoming elections.

Country’s most parts to remain in grip of cold wave ISLAMABAD

Staff RepoRt

Pakistan Meteorological Department (PMD) on Wednesday said that the most parts of country will remain in the grip of cold wave in next 24 hours due to consistent low daytime temperatures.

According to PMD, dense fog was likely to continue in Islamabad, plain areas of Punjab, KhyberPakhtunkhwa and upper Sindh.

Due to continuously low daytime temperatures, very cold weather was likely to prevail in fog-affected areas.

On Thursday, mainly very cold and dry weather was expected in most areas of the country while partly cloudy in Kashmir, Gilgit-Baltistan, Khyber Pakhtunkhwa and Balochistan.

However, light rain/snow was expected at a few places in upper Khyber Pakhtunkhwa and GilgitBaltistan during the night.

In Islamabad, cold and dry weather is expected and surrounding. Dense fog is likely to persist during morning/night hours.

In Khyber-Pakhtunkhwa, cold and partly cloudy weather was expected in most districts of the province, while very cold in upper districts. However, light rain/snowfall was likely in Chitral, Dir, Swat, Kohat and Malakand during the night.

Dense fog was likely to persist in Charsadda, Mardan, Nowshera, Swabi, Peshawar, Laki Marwat, Bannu, Dera Ismail Khan and surrounding areas during morning/night hours.

In Punjab, cold and dry weather was expected in most districts of the province, while very cold and partly cloudy/cloudy in Murree, Galliyat and surrounding.

Dense fog/smog was likely to persist in Bahawalpur, Sahiwal, Okara, Kasur, Lahore, Sialkot, Narowal, Gujranwala, Rawalpindi, Attock, Jhelum, Mangla, Faisalabad, Jhang, Sargodha, Mandi Bahauddin, Toba Tek Singh, Khanewal, Multan, Khanpur, Rahim Yar Khan, Hafizabad, Bhakkar, Layyah, Dera Ghazi Khan and surrounding.

Day temperatures were likely to remain below nor-

est across the 18 months of data we’re looking at. However, this is not to rule out protracted backlogs that might have accrued.

“A $100 million of imports in a month shouldn’t be a surprise considering auto imports has been a least priority sector for letter of credits during the last year or so.

Hence, there could be some backlog/pending letter of credits of automobile manufacturers that may have gone through considering reserves buffer have been somewhat improving,” posits Azfer Naseem, CoFounder and Executive Director Research at Akseer Research.

Pakistan’s debt rises to Rs2.57trn in FY2024, with Rs86bn increase in one week PROFIT

NewS DeSk

The Pakistani government has added Rs86.28 billion to its debt in the week ending January 12, 2024, as reported by the State Bank of Pakistan’s weekly estimates. This increase brings the total net borrowing for the fiscal year 2024 to Rs2.57 trillion. Government sector borrowings are categorized into three main areas: budgetary support, commodity operations, and others. For the mentioned week, the net borrowing for budgetary support was Rs87.7 billion, while there was a reduction of Rs1.37 billion in commodity operations. Additionally, Rs48.4 million was retired from the ‘others’ category. Cumulatively for fiscal year 2024, the borrowing figures stand at Rs2.77 trillion for budgetary support, a reduction of Rs193.72 billion for commodity operations, and Rs1.1 billion borrowed for other purposes.

Gohar Ejaz appointed new caretaker interior minister ISLAMABAD

Staff RepoRt

Caretaker Prime Minister Anwaar-ul-Haq Kakar Wednesday assigned the additional portfolio of the Interior Ministry to Federal Minister for Commerce, Industries and Production Gohar Ejaz. “The Prime Minister, in terms of rule 3(4) of the Rules of Business, 1973, has been pleased to assign the portfolio of Interior to Mr [Gohar] Ejaz […] with immediate effect,” the cabinet division’s notification read. The development comes after now-former interior minister Sarfraz Bugti, citing personal reasons, stepped down from the post on December 13. Notification issued by Cabinet Division. As per sources, Bugti had decided to resign from the key ministry two months prior with the aim of taking part in the upcoming February 8 general elections.

After his resignation, the senator soon announced to join the Bilawal Bhutto-led Pakistan Peoples Party (PPP). Ejaz’s appointment comes after lobbying started for the new interior minister following Bugti’s resignation.

Religious scholars reject TTP’s terrorism; unite for national unity ISLAMABAD

Staff RepoRt

mal in most districts of the province due to dense fog.

In Balochistan, cold and dry weather was expected in most districts of the province, while very cold and partly cloudy in northern districts.

In Sindh, mainly cold and dry weather was expected in most parts of the province. Fog/smog was likely to persist in Jacobabad, Hyderabad, Mohenjodaro, Sukkur, Larkana, Dadu, Ghotki, Khairpur, Kashmore and Padidan. Day temperatures are likely to remain below normal in most districts of the province due to dense fog.

In Kashmir/Gilgit-Baltistan, very cold and partly cloudy weather was expected in Kashmir and GilgitBaltistan.

While light rain/snowfall was also likely at few places in Gilgit-Baltistan during the night.

During the last 24 hours, cold and dry weather prevailed over most parts of the country, while very cold in northern parts and north Balochistan. Dense fog/smog prevailed over Islamabad, Potohar region, plain areas of Punjab, Khyber-Pakhtunkhwa and upper Sindh.

The lowest minimum temperatures recorded were Leh -12C, Skardu -10, Kalam, Gilgit, Astore -07, Kalat, Gupis, Srinagar -05, Chitral, Mirkhani -04, Bunji, Dir, Hunza, Parachinar, Rawalakot and Quetta -03C.

In a resounding response to the Tehreek-e-Taliban Pakistan’s (TTP) recent encouragement of religious students to engage in acts of terrorism, prominent religious scholars from across the country have united in condemnation, stressing the importance of adhering to the constitution and laws of Pakistan.

Renowned scholar Prof. Dr Abdul Rehman, while addressing the issue, asserted that Pakistan, established in the name of Kalima Tayyaba, strictly prohibits any individual or group from participating in armed operations without the explicit permission of the government. He vehemently declared that such terrorist activities are in direct violation of the constitution and laws of Pakistan, emphasizing that the nation is a fortress of Islam, and inciting or misleading students within an Islamic state is strictly forbidden. Maulana Dr. Abdul Nasir echoed these sentiments, characterising the menace of Khawarij as a longstanding challenge for the kingdom of Godfather Pakistan. He commended the state institutions for successfully repelling the fitnah of Khawarij and called upon Pakistani students to resist the influence of these misguided elements. Urging students to contribute to the country’s development and prosperity, he warned against falling prey to the nefarious purposes of the Kharijites who manipulate innocent minds for their own ends. In a separate reaction, Maulana Rahmatullah Qadri emphasized that Khawarij should recognize that not only the people of Pakistan but the entire world has grasped the true nature of their propaganda. He underscored the need for global solidarity against extremism, emphasizing that the world stands united in rejecting any form of terrorism.

Published by Asad Nizami at Plot No 66-C, 1st Floor, 21st Commercial Street, Phase-II (Extension), DHA Karachi and printed at Ibn-e-Hassan Printing Press, Hockey Stadium, Karachi, for PT Print (Pvt) Limited. Ph: 021-35381208-9. Email: newsroom@pakistantoday.com.pk