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28 DEAD, OVER 40 INJURED AS BACK TO BACK BLASTS ROCK PISHIN, QILA SAIFULLAH thursday, 8 february, 2024 i 27 Rajab, 1445

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Blasts target election campaign of independent candidate, JUI-F office

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PISHIN/QUETTA

Deadly incidents on eve of elections raise serious concerns about security of polling stations

Staff RepoRt

S many as 28 persons were killed and over 40 sustained multiple injuries after two blasts rocked powerful Balochistan’s Pishin and Qila Saifullah areas on Wednesday, the police and health authorities said.

According to police, the blast in Pishin targeted the election campaign office of independent candidate Asfandyar Khan Kakar in PB-47 constituency, Khanozai Tehsil of Pishin district while the other blast occurred outside the election office of JUI-F in Qilla Saifullah.

The fresh terror incidents come at a time when the nation is going to polling for general elections scheduled across the country on Thursday (tomorrow). Pakistan has been grappling with a sharp rise in terrorism, particularly in Khyber Pakhtunkhwa and Balochistan, which raises serious concerns about security during polling.

The police said the blast in Pishin occurred in Khanozai union council in after noon. Pishin Deputy Commissioner Jumma Dad Mandokhail informed the media that the incident occurred outside the election office of independent candidate Asfandyar Kakar, who is contesting polls from PB-47 (Pishin 1).

The district’s administrative head informed that 14 bodies and 23 injured were shifted to the Tehsil Headquarters Hospital. However, later, Khanzai Hospital’s medical superintendent Dr Habib Kakar said the death toll had risen to 18 after four of the injured people succumbed to their injuries.

DC Mandokhail claimed the explo-

sive material was planted in a motorcycle parked in the area. The police, bomb disposal squad and other law enforcement agencies immediately cordoned off the area and began collecting evidence, he added.

Meanwhile, the second blast was reported in Qila Saifullah in which, according to Deputy Commissioner Yasir Bazai, 12 people lost their lives and 20 were wounded in the incident, which took place outside the Jamiat Ulema-iIslam Fazl (JUI-F) election office.

Bazai later revised the death toll down to 10, adding that critical persons were being shifted to Quetta via a helicopter.

Maulana Abdul Wasay, the JUI-F candidate from Qilla Saifullah, was present inside the party’s electoral office at the time of the explosion.

The attack came as political parties wrapped up their campaigning in the

Hamas proposes 135-day Gaza truce with total Israeli withdrawal GAZA

ReuteRS

Hamas has proposed a ceasefire plan that would quiet the guns in Gaza for four-and-a-half months, during which all hostages would go free, Israel would withdraw its troops from the Gaza Strip and an agreement would be reached on an end to the war. The resistance group’s proposal – a response to an offer sent last week by Qatari and Egyptian mediators – comes in the biggest diplomatic push yet for an extended halt to the fighting and was met with hope and relief in the Gaza Strip.

There was no immediate public response from Israel, which has said it will not pull its troops out of Gaza until Hamas is wiped out. According to a draft document seen by Reuters, the Hamas counterproposal envisages three phases of a truce, lasting 45 days each.

The remaining Israeli hostages captured on October 7 will be exchanged for Palestinian prisoners. The reconstruction of Gaza would begin, Israeli forces would withdraw completely, and bodies and remains would be exchanged. US Secretary of State Antony Blinken arrived overnight in Israel after meeting the leaders of mediators Qatar and Egypt in an attempt to reach an extended truce. A source close to the negotiations said the Hamas counterproposal did not require a guarantee of a permanent ceasefire at the outset, but that an end to the war would have to be agreed upon during the truce before the final hostages were freed. According to the document, during the first 45-day phase, all Israeli women hostages, males under 19 and the elderly and sick would be released, in exchange for the release of Palestinian women and children from Israeli jails.

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quiet period mandated by electoral rules the day before the election.

Balochistan’s caretaker Minister for Home and Tribal Affairs Mir Zubair Khan Jamali took notice of the blast. Expressing regret over the deaths caused by the explosion, the minister sought a report from the deputy commissioner.

Security forces cordoned off the areas and emergency services initiated a rescue operation at both attack sites. The injured were shifted to nearby medical facilities.

ECP TAKES NOTICE OF BLASTS In separate statements, the Election Commission of Pakistan (ECP) took notice of the blasts and summoned reports from the Balochistan chief secretary and the provincial police chief.

Interim Balochistan Chief Minister Mir Ali Mardan Domki also took notice of the incident and sought a report from the provincial interior ministry. Express-

ing grief over the loss of lives, he directed the officials concerned to utilise all available resources to arrest the culprits. Balochistan Chief Minister Ali Mardan Khan Domki condemned the attacks and sought a report from the interior minister. He also expressed deep sorry over the lives lost and instructed concerned officials to arrest the perpetrators of the attacks, said a statement.

Domki maintained that the attacks were a “conspiracy to undermine the process of peaceful elections” and said the elements involved would be brought to justice. The chief minister added that all resources are being utilised to ensure the security of the people.

CONDEMNATIONS Caretaker Prime Minister Anwaarul Haq Kakar said that all efforts to sabotage tomorrow’s elections will be defeated.

Kakar expressed grief on the loss of lives in the explosions in Pishin and Qilla Saifullah, and ordered for the injured to be provided all medical assistance.

He said the government is resolute in ensuring the electoral process is concluded peacefully.

Interim Interior Minister Gohar Ejaz strongly condemned the twin attacks in Balochistan and said he shared the grief of the families who lost their loved ones in the attack.

“Anti-state elements want to create chaos before the general elections and stop the public from exercising their right to vote,” said the minister in a post on X. He maintained that the government would not “let the evil intentions of the enemy succeed at any cost”.

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ECP establishes ‘Election City’ for instant sharing of election results

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Devises guidelines for vote recount after polls ISLAMABAD

Staff RepoRt

The Election Commission of Pakistan (ECP) has set up an Election City in its premises, equipped with the latest technology to swiftly disseminate election results of 855 constituencies to the media.

Director of Information Technology, Muhammad Khizer Aziz while briefing media on Wednesday said that a comprehensive strategy was in place to receive election results via WhatsApp, email, and fax.

He informed that the ECP had also set up an alternative website to ensure uninterrupted dissemination of results in case of any disruptions.

Election Management System (EMS) will operate if internet connectivity is unavailable, with satellite communication had also been deployed in some areas facing connectivity issues.

Muhammad Khizer Aziz said that the EMS comprises two components adding that the initial capture of results through photos (of results) by the Presiding Officer, followed by the swift transmission to the respective Returning Officer to Form-45 for onward transmission to ECP and media. In case of connectivity issues, the results would be compiled threw off line modules. Presiding officers in all constituencies have been instructed to photograph Form 45 and send it to their respective Returning Officers.

The Returning Officers will then compile the results on Form-47 and share them with the media.

He said that media walls had been installed at each

Returning Officer’s (RO) office to share results, while five media walls had been set up in the ECP Election City to offer continuous updates on the results of one national and four provincial assemblies.

SOPS FOR VOTE RECOUNT PETITIONS Meanwhile, the Election Commission of Pakistan (ECP) has devised clear guidelines for submitting petitions requesting a recount of votes in the upcoming elections. These Standard Operating Procedures (SOPs) aim to streamline the process and ensure transparency and fairness in addressing recount requests.

ECP Secretariat will be open on February 10th and 11th, 2024, from 8:30am to 4:30pm to receive recount petitions from applicants or candidates. Hearings will also be held on these dates. Petitions must be submitted in 9 copies: one original and eight photocopies with complete details and date of filing. A soft copy of the petition in PDF format along with any supporting documents in a USB drive must be attached to the application. Petitioners must include their identity card copy, valid current address, and contact number in the application.

Complete details and address of the defendants (usually the winning candidate or party) must be provided. If an advocate is representing the petitioner, a letter of attorney, advocate’s card, and additional contact numbers are required.

Presentation: All applications need to be properly indexed, page-numbered, and flagged for easy reference.

Cost of shutting down internet g

Rs 20.00 | Vol XIV No 221 I 8 Pages I Lahore Edition

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‘Ord Promulgation’: President ‘returns’ summary unsigned seeking IRSA’s restructuring ISLAMABAD

Staff RepoRt

President Dr Arif Alvi Alvi has returned a summary unsigned to the Caretaker Prime Minister, seeking the promulgation of an ordinance to restructure the Indus River System Authority (IRSA). According to official sources, the president declined to sign the summary and has urged the caretaker premier to review the summary, given the sensitivity of the issue which could cause controversy between provinces. The federal cabinet had approved the summary of the Water and Resources Ministry, aimed at the promulgation of an ordinance to restructure the water regulator. It mandated the prime minister to initiate a summary to the president for promulgation of the ordinance. On the other hand, the Election Commission of Pakistan (ECP) has also stopped the interim government from restructuring the IRSA through the ordinance. Earlier, the ECP had prevented the government from restructuring the FBR and privatizing PIA. Earlier in the CCLC meeting, caretaker Federal Planning, Development, and Special Initiatives Minister Muhammad Sami Saeed had objected to the summary, and argued that the ministry had initiated the summary without taking the provinces on board. During the meeting, the law division had clarified that IRSA could be restructured by the federal government, although the Common Council of Interests (CCI) is the forum to discuss and decide water-related issues. The ministry’s, however, officials had insisted that the ministry would move the summary to the federal cabinet for approval.

Consequently, the federal cabinet approved the summary and the prime minister forwarded it to the president for a final approval, but the president returned it to the premier for “a review.” Currently, IRSA consists of five members, one nominated by each province and one by the federal government. If the IRSA ordinance is approved, the prime minister would have the authority to appoint a serving or retired employee of the federal government in BPS-21 or above as chairman of IRSA, without voting rights. However, the chairman would possess veto powers to review grievances from any provincial government, IRSA member or Wapda against the authority’s decisions before making any reference to the Council of Common Interests (CCI). According to the summary, a vice chairman position would be established, held by one of the four provincial members on a rotational basis annually.

Pakistan fully committed to inclusive democratic process: Foreign Office

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ISLAMABAD

Staff RepoRt

Foreign Office Spokesperson Mumtaz Zahra Baloch on Wednesday said that Pakistan was fully committed to foster an inclusive democratic process and uphold the rule of law. The spokesperson’s remarks came in response to the media queries on the statement by UN Human Rights High Commissioner Volker Türk who had urged authorities in Pakistan to ensure that parliamentary elections this week were free and fair. He also appealed to ensure a fully free and fair vote and to recommit to the democratic process and an environment that promotes and protects human rights. In response, the FO spokesperson remarked “Pakistan is fully committed to fostering an inclusive democratic process, upholding the rule of law and protect human rights and fundamental freedoms guaranteed in its laws and Constitution.” Mumtaz Baloch said the security plans have been finalized to hold the elections on February 8, 2024, as per the electoral laws of Pakistan. The spokesperson said that Pakistan’s judicial system provided for fair trial and due process. Domestic legal remedies are available in case of any complaints in the electoral process, she added.

Caretaker government seems to be playing a game of Schrodinger's internet outage PROFIT

abdullah Niazi

The caretaker government seems to be playing a strange game of will-they-won’t-they when it comes to the topic of internet outages. On the one hand, they claimed that election day would go by with no disruptions in internet services or social media.

On the other hand, the caretaker interior minister Gohar Ejaz said in a press conference on Wednesday that the government had not ruled out the possibility of shutting down internet services and would do so based on the situation that arises during election day in different districts.

This is despite the fact that the Sindh High Court (SHC) directed the government and the PTA to ensure uninterrupted internet services till the polling day. The court had to take up the issue after multiple disruptions in internet services in recent months.Internet services have been affected

thrice in the past two months. The first time on December 17th, then again on January 7th and the latest one on January 20th. The suspensions coincided with virtual events of the PTI. The government has since claimed that the shutdowns happened because of technical issues. The claim is difficult to believe, and the Human Rights Commission of Pakistan (HRCP) issued a statement condemning the shut downs as targeting just one party.

It is very clear why the government shuts down the internet. It seems to have less to do with security threats and more to do with silencing certain political factions. The only problem is that there is a cost to shutting down the internet beyond freedom of speech as well. It greatly affects businesses.

What is the cost of internet shutdowns?

One of the groups most immediately affected by internet shutdowns are gig workers.

These are daily workers that earn their money on platforms such as Careem, Foodpanda, and

Indrive. These people require stable internet access through mobile phone data to do their jobs. Over these days, Foodpanda and services such as Careem were out of service because their captains and riders had no way of accepting rides/orders or of following maps.

To put things in context, there are over 13000 foodpanda and Bykea riders, 30,000 Uber and Careem captains, and around 12,000 Foodpanda home chefs whose daily wages are dependent on broadband data.

Similarly, the shutdowns also have a serious impact on freelancers. A large number of Pakistanis work for foreign clients remotely on platforms such as Fivver and Upwork providing services ranging from coding to content writing and search engine optimization. The gig-economy is an emerging sector in Pakistan. Freelancers in the country earned around $400 million in both 2021 and in 2022 which accounts for about 15% of Pakistan’s total $2.6 billion ICT (information-communication-technology) exports.

On top of this, Point of Sale (POS) machines, often known as debit/credit card machines, use sims to establish a network connection and make digital payments. The severance of mobile internet signals has rendered these machines temporarily obsolete, limiting everyone to cash payments only.

Back in May 2023 when former prime minister Imran Khan had been arrested, internet services had been shut down. Back then Reuters had reported that Pakistan’s

main digital payment systems fell by around 50% the day after former Prime Minister Imran Khan’s arrest. HBL, Pakistan’s largest bank, said that it had seen a decline of 60% in the throughput of the POS machines.

At the same time, telecom operators estimated the extent of the damages to be Rs. 820 million. On the other hand, the government incurred a loss of approximately Rs. 287 million in tax revenue.

02 NEWS

QataR to supply IndIa wIth 7.5m metRIC tons oF lnG annually In majoR 20-yeaR deal

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Thursday, 8 February, 2024 | LAHORE

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News Desk

N a significant move towards enhancing India’s liquefied natural gas (LNG) infrastructure, QatarEnergy and Petronet LNG, India’s leading gas importer, have entered into a historic agreement.

Under this new pact, announced on Tuesday, QatarEnergy commits to supplying 7.5 million metric tons of LNG annually to Petronet LNG. This supply chain is sched-

mari petroleum to boost energy portfolio with new acquisitions from spud energy PROFIT

uled to commence in 2028 and extend over a 20-year period, ending in 2048.

This arrangement, which is notably the largest single deal between the two entities to date, is structured on a delivered ex-ship (DES) basis, ensuring the delivery of LNG

Mari Petroleum Company Limited (MPCL), a prominent player in the energy sector, has officially announced its acquisition of significant stakes in two key assets from Spud Energy Pty Limited (SEPL). In a strategic move, MPCL has secured a 40 percent working interest in the Zarghun South Development & Production Lease (D&PL) and a 27.55% working interest in the Nareli Block. The announcement was made through a notice issued to the Pakistan Stock Exchange (PSX) earlier today (Wednesday).

The completion of these acquisitions is contingent upon receiving the necessary regulatory approvals and fulfilling all related formalities. Both companies have expressed their optimism about the positive impact these acquisitions will have on their operations and the broader energy sector in Pakistan.

Court halts caretaker govt’s move to reform FBR PROFIT

The Islamabad High Court recently issued a suspension on the caretaker government’s plan to restructure the Federal Board of Revenue (FBR). This move came after the court received a petition from an FBR officer, challenging the caretaker government’s authority under the Election Act 2017 to make significant changes. According to the petitioner, the caretaker setup is meant to perform only routine functions and is barred from initiating any major policy reforms or projects that could affect the future elected government’s policies. The court’s intervention has put a stop to the formation of a committee, which was announced by the caretaker government to lead the restructuring of the FBR. This committee, named the “Implementation and Asset Distribution Committee,” was to be established swiftly and led by the Caretaker Finance Minister, Dr. Shamshad Akhtar. This decision has sparked a debate across various circles. Supporters of the court’s ruling praise it for maintaining the constitutional limitations placed on a caretaker government. Conversely, there are concerns about how this decision may delay necessary reforms aimed at improving the efficiency and effectiveness of the FBR. As of now, the caretaker government has not publicly responded to the court’s decision. It is anticipated that the government may seek to overturn the court’s suspension or find alternative pathways to proceed with its plans for reforming the FBR. This event adds to the complex political dynamics in Pakistan, especially with the upcoming general elections.

The judiciary’s action against the caretaker government’s initiative is seen as a crucial moment, reflecting on the delicate balance between governance and legal oversight in the country’s evolving political landscape.

directly to Petronet LNG. The agreement marks a renewal of an existing contract set to expire in 2028, under which Petronet LNG has been importing an identical volume of LNG from Qatar, albeit on a free-on-board (FOB) basis.

The previous contract terms were linked to Brent crude oil futures prices, with specific pricing mechanisms in place, although the financial details of the new deal have not been disclosed. Qatar, holding the position as the world’s second-largest LNG exporter, is strategically expanding its reach in key markets across Asia and Europe.

This is part of its broader aim to increase its liquefaction capacity from the current 77 million tons per year to 126 million tons by 2027, amidst growing competition, particularly from the United States, the global

Minority shareholder challenges delisting price of Pak Suzuki Motors PROFIT

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News Desk

News Desk

MoNitoriNg Desk

QATAR, AS WORLD’S SECOND-LARGEST LNG EXPORTER, IS STRATEGICALLY EXPANDING ITS REACH IN KEY MARKETS ACROSS ASIA AND EUROPE

Pak Suzuki Motors, one of the leading automobile manufacturers in Pakistan, is facing a legal challenge from a minority shareholder over its proposed delisting from the Pakistan Stock Exchange (PSX).

Nadeem Nisar, who owns 10% of the company’s shares, has written a formal letter to the PSX authorities, the Securities and Exchange Commission of Pakistan (SECP), and the Chairman of Pak Suzuki, contesting the delisting price determined by EFG Hermes, an independent valuation firm.

Nisar claimed that the delisting price of Rs 609 per share is grossly incorrect and does not reflect the fair market value of the company “when tested with foreign and local standards.” “The independent delisting price markedly deviates from the discerned fair market value. The evaluated independent valuation merely adopted preferred income return trends; disregarding its peers in terms of fair values, notably in this regard, read the letter.

Nisar cited various metrics and reports to support his claim, such as the fair price based on EPS of last three diluted MNC’s, which is around Rs 1217-28 per share, and the fair price based on comparable transactions, which ranges from Rs 925 to Rs 874 per share.

However, existing disparities cast

NISAR URGES PSX AND SECP’S ACTION CLAIMING DELISTING PRICE OF RS 609/SHARE IS NOT FAIR AS PER MARKET VALUE

significant doubt on valuation methodologies potentially leading to undervalue over-pricing in Pakistan’s market, he added.

“Recent favorable developments, including a substantial increase in earnings per share (EPS) – 33.38% April to June as Rs 24.44 from Rs 18.32 September 2023 – showcase the buoyant institutional support for Pak Suzuki Motors due to the factor complementing its profitability,” Nisar mentioned in his letter.

He also raised concerns over the delisting process, alleging that it is marred by procedural and fiscal improprieties, financial mismanagement, and disenfranchisement of minority shareholders. He accused the company’s management of withholding critical information and documents from the shareholders, and of manipulating the shareholding pattern to favor the delisting.

He requested the PSX and the SECP to conduct a thorough investigation into the delisting process, and to initiate an equitable outcome for all shareholders, which may require a revision of the delisting price. He expresses his trust in the regulatory bodies to safeguard the shareholder interests and uphold the principles of market integrity and fairness.

Pak Suzuki Motors, which is a subsidiary of Suzuki Motor Corporation of Japan, announced its intention to voluntarily delist from the PSX in December 2023. The company held a Voluntary Delisting Vote (VDV) on January 15, 2024, in which the majority of the shareholders approved the delisting proposal. The company also convened an Extraordinary General Meeting (EGM) on February 9, 2024, to finalise the delisting process.

WHO IS NADEEM NISAR? For people who might not know, Nadeem Nisar is the son of famous trader Nisar Dunka who actively traded and held stocks during the 90s.

On 12th January 2024, a letter was sent by Nadeem Nisar to PSX, stating that he had accumulated more than 10% of the shareholding of Suzuki and that he had crossed the 10% threshold.

In essence, it was an announcement by the individual that he had the power to cancel the buyback by not selling any part of his shareholding to Suzuki.

The company has not yet responded to Nisar’s challenge to the delisting. The PSX and the SECP have also not issued any official statement on the matter.

Govt approves deregulation of medicine prices outside NEML g

DEREGULATION ALLOWS FOR ADJUSTMENTS IN NON-ESSENTIAL MEDICINE PRICES, EXEMPTING THEM FROM DRUGS ACT 1976 PROFIT

News Desk

The federal caretaker cabinet on the recommendation of the Ministry of National Health approved the proposals regarding the deregulation of the prices of the medicines which were not included in the national list of essential medicines (NEML).

This deregulation allows for adjustments in non-essential medicine prices, exempting them from the Drugs Act 1976 and prompting updates to the 2018 Drug Pricing Policy.

As per DRAP 2018 policy, the market retail price of pharmaceutical products had been linked to the Consumer Price Index (CPI) effective from Jul 01, 2018. This pricing formula allows pharma companies to increase prices

by giving 30 days’ notice to DRAP (no need for prior approval) vs. 6 months lag that used to delay increase in prices.

The DRAP pricing policy of 2018 has categorized drugs into two segments i.e. essential and non-essential drugs. Essential drug prices can be increased by up to 70% of annual CPI or a maximum of 7% while for non-essential drugs, prices can be increased by full annual CPI with the maximum allowed limit of 10%.

In hardship cases, prices are reviewed once in three years where (i) locally manufactured drug price is set considering the cost of API, excipients, and packaging cost; (ii) imported drug prices are set at landed cost plus markup of 45% for anti-cancer, biologicals while 40% mark-up on anti-retroviral, and (iii) imported drugs with the local

labelling price set at landed cost plus packaging cost plus a mark-up of 45%.

To recall, last year in May-2023, Cabinet approved one-time dispensation, enabling manufacturers and importers to increase their existing MRPs of essential drugs and biologicals equal to a 70% increase in CPI (with a cap of 14%) and MRP of all other non-essential biologicals up-to increase in CPI (with a cap of 20%) on the basis of average CPI for current year i.e. Jul-2022 to April 2023 subject to few conditions.

This was done because pharmaceutical companies were facing severe pressure on margins due to abnormally high inflation and PKR devaluation.

Additionally, the Pakistan Medical and Dental Council has been tasked with ensuring that healthcare providers refrain from prescribing non-essential vitamins, minerals, multivitamins, and over-the-counter products.

The Drug Regulatory Authority of Pakistan (DRAP) is set to curate a list of these products, adhering to international standards and coordinating with provincial governments.

leader in LNG exports.

The LNG supplied under this renewed agreement will be distributed among major Indian energy corporations, including GAIL (India) Limited, Indian Oil Corporation Limited, and Bharat Petroleum Corporation Limited. These entities will receive the regasified LNG in proportions of 60%, 30%, and 10% respectively, for further distribution to end-users. The regasification process will take place at Petronet’s Dahej import terminal, reinforcing the terminal’s pivotal role in India’s gas supply chain.

FBR to tighten baggage rules following Customs’ call to stop scheme misuse

PROFIT

News Desk

Karachi’s customs authorities have called on the Federal Board of Revenue (FBR) to overhaul baggage rules to curb the widespread abuse of the current system and to introduce the “Overseas Pakistanis Door to Door Service Rules 2024” aimed at aiding overseas Pakistanis. This move comes after the Federal Tax Ombudsman (FTO) identified significant misuse of the baggage scheme, where high-value luxury goods were being imported in the guise of personal baggage, often involving collusion with customs officials. The FTO’s directive seeks to redefine what constitutes a commercial quantity of goods to better distinguish between regular personal effects and items brought in for commercial purposes. The current regulations under SRO 666(I)/2006, which govern unaccompanied baggage, are deemed inadequate in preventing the import of goods in commercial quantities under the facade of personal and household effects. An investigation initiated by the FTO revealed instances of goods being cleared with minimal duty and taxes, exploiting the passports of overseas Pakistanis with limited financial means. These practices not only undermine the integrity of the baggage system but also result in significant economic losses. The customs authorities’ recommendations include amending the definition of commercial quantity to prevent misdeclaration and misuse of the baggage scheme. The Directorate General of Intelligence and Investigation, Customs in Karachi, has also echoed similar concerns, highlighting the need for stringent measures to ensure that the import of goods through baggage does not circumvent import restrictions and foreign exchange limitations.

In response, the Collectorate of Customs Enforcement (Ports), Karachi, has taken steps to improve the clearance process, resulting in a noticeable reduction in complaints related to the import of commercial quantity goods as personal baggage. The FBR is now tasked with reviewing and implementing the proposed changes to the rules and procedures to mitigate misuse and facilitate genuine overseas Pakistanis.

pakistan stock exchange gains ahead of general election PROFIT

News Desk

Proposal for temporary vehicle import, export faces FBR opposition g

COMMERCE MINISTRY SUGGESTED AMENDMENTS TO IMPORT POLICY ORDER 2022 TO ESTABLISH THIS SERVICE-ORIENTED SECTOR PROFIT

News Desk

The Ministry of Commerce’s proposal to permit the temporary import and export of damaged vehicles for repair purposes has encountered resistance from the Federal Board of Revenue (FBR).

The initiative aims to allow businesses with automobile repair facilities to import, refurbish, and then re-export vehicles without involving foreign exchange at the import stage, instead earning foreign revenue through service fees.

The Commerce Ministry, responding to industry calls for policy support, suggested amendments to the Import Policy Order (IPO) 2022 to establish this serviceoriented sector.

This proposal, also discussed by the Special Investment Facilitation Council

(SIFC), aligns with efforts to bolster exports through schemes like International Toll Manufacturing (ITM), which involves producing goods for re-export using materials supplied by a foreign principal.

Despite support from the State Bank of Pakistan (SBP) and the Ministry of Industries & Production (MoI&P), who recommended effective controls to prevent misuse of the scheme, the FBR voiced concerns.

The FBR argues that vehicle repair does not fit the definition of ITM under the Export Facilitation Scheme (EFS) 2021, citing the practical challenges in issuing authorizations and analysis certificates for vehicles requiring varied parts and accessories replacement.

The Commerce Ministry contends that the current ITM definition is overly restrictive and advocates for its amendment

to encompass refurbishment and restoration works, which would not only generate employment and foreign exchange but also diversify the market.

The Ministry has laid out proposals for the Economic Coordination Committee (ECC) of the Cabinet, including amending EFS 2021 rules to accommodate ITM for vehicle repair works, allowing temporary

vehicle imports under specific conditions, and prohibiting domestic sales of such vehicles. The ECC, after deferring an initial decision, has called for detailed consultations with relevant stakeholders, indicating a cautious approach towards resolving the inter-agency dispute and considering the broader implications of the proposed policy changes.

On the eve of Pakistan’s General Election 2024, the Pakistan Stock Exchange (PSX) saw a significant upswing, with the KSE-100 Index climbing by 345 points to close at 64,143.87, marking a 0.54% increase. This rally was spurred by a late-session buying frenzy, with investors engaging in value buying fueled by election optimism. Wednesday’s trading session witnessed an initial range-bound movement, later transformed by a surge in buying, pushing the index above the 64,000 threshold for the first time in nearly two weeks. According to Ismail Iqbal Securities, the rally was driven by sectors such as power generation and distribution, commercial banks, and fertilisers. This upward movement follows a robust gain on Tuesday, particularly within the oil and gas sector. With nearly 129 million voters set to cast their ballots, this election marks a critical juncture for the world’s fifthlargest democracy. However, the election’s backdrop is tense, with recent attacks in Balochistan province resulting in at least 24 fatalities, highlighting security concerns amidst a rise in terrorist activities in 2024.

Trading volume slightly decreased to 327.6 million from 331 million in the previous session, with K-Electric Ltd, Oil & Gas Development Company, and Pak Elektron leading in volume. The day concluded with 203 companies registering gains, 125 recording declines, and 28 remaining unchanged, reflecting a cautiously optimistic market sentiment as the nation heads into a pivotal election.

Thursday, 8 February, 2024 | LAHORE

pta to pRovIde unInteRRupted InteRnet seRvICes on eleCtIon day

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to be available without interruption or obstacles on the day of the election. Importantly, the government has not issued any directives to shut down internet services on polling day. The confirmation comes a day after Information Minister Murtaza Solangi stated that the government has not issued any guidelines for the shutdown of mobile phone services and the internet during the elections.

Highlighting that in case of a deterio-

ISLAMABAD

staff report

HE Pakistan Telecommunication Authority (PTA) assured on Wednesday that internet services will not be suspended in the country on February 8 (tomorrow) as the nation heads to polls.

According to an official statement from the PTA, users can expect internet facilities

‘ord promulgation’: president ‘returns’ summary unsigned seeking IRsa’s restructuring

The appeal came in response to a statement made by Caretaker Interior Minister Gohar Ejaz earlier on February 6, acknowledging the possibility of internet disruptions and shutdowns during Thursday’s polls. Addressing a news conference in the federal capital Ejaz dispelled rumours surrounding the elections on Feb 8, saying until now the authorities had not received any directives to shut down the internet services on the day.

Pakistan’s reserve assets decline to $13.53bn in January, SBP reports g

CONTINUED FROM PAGE 01

Additionally, an independent water expert committee would be formed to assist the chairman and the authority on technical matters.

IRSA would also be empowered to take action against individuals and entities engaged in water theft, tampering with water data and other illegal or fraudulent activities as per the law.

Independent water experts emphasise that Sindh, as a low-riparian federating unit, is particularly sensitive to water availability issues, as water is essential for both Sindh and Balochistan. During the Musharraf regime, when the country had faced water scarcity due to a prolonged drought, a federal member position was created to resolve disputes between provinces regarding water releases.

Initially appointed from Sindh, the federal member has since been primarily from Punjab.

If the chairman is appointed from the bureaucracy by the prime minister, Punjab and the federal government would effectively have greater representation in the authority, potentially exacerbating the sense of deprivation among the smaller provinces in decision-making processes. Currently, the chairmanship of IRSA rotates among the four provincial members, although the federal government contends that provincial appointees tend to prioritise their provinces’ water interests, leading to conflicts when they assume the chairmanship.

28 dead, over 40 hurt as back-to-back blasts rock pishin, Qila saifullah CONTINUED FROM PAGE 01

rating law and order situation in any location, the local administration will evaluate the circumstances and make a decision accordingly. Two days ago, Amnesty International (AI) , in collaboration with several other human rights organisations, issued a call to authorities in Pakistan, urging them to guarantee uninterrupted access to the Internet and digital communication platforms for all citizens across the country during the upcoming elections.

PPP Chairman Bilawal Bhutto Zardari also condemned the terrorist attacks in Pishin and Qilla Saifullah and added that those responsible would be brought to justice.

“Targeting innocent people is a barbaric act,” said Bilawal as he offered condolences to the families of the deceased. PML-N President and former premier Shehbaz Sharif expressed grief and sorrow over the lives lost in the twin bombings and said these “cowardly terrorist attacks a few hours before the elections cannot dampen our spirits”. He also prayed for the deceased and the affected families. The blasts come a day after two separate blasts rocked the Kech and Panjgur districts of Balochistan. There were no immediate reports of any casualties but the explosions prompted apprehensions about security, as the country approached the February 8 elections. Unidentified assailants lobbed a grenade at the office of the National Database and Registration Authority (NADRA) in the Hoshop area of Kech district. In another incident in the Surdu area of Panjgur, the residence of National Party (NP) leader Abdul Qadeer Sajdi was targeted. Reports indicate that the explosion coincided with a crucial meeting concerning the general elections, adding a political dimension to the incident.

GOLD RESERVES, INCLUDING BOTH DEPOSITED AND SWAPPED GOLD, DECREASED MARGINALLY TO $4.27 BILLION FROM $4.32 BILLION PROFIT

News Desk

In January 2024, Pakistan’s official reserve assets experienced a slight decrease to $13.53 billion, down from $13.67 billion in December, according to the latest figures released by the State Bank of Pakistan (SBP).

The reserves include foreign currency reserves, the reserve position in international funds, Special Drawing Rights (SDRs), gold, and other assets.

The foreign currency reserves,

comprising securities, currency, and deposits within both domestic and international banks and central banks, were reported at $5.03 billion.

Gold reserves, including both deposited and swapped gold, decreased marginally to $4.27 billion from $4.32 billion in the preceding month. Other reserve assets saw a more significant drop, from $4.39 billion to $3.7 billion.

However, there was a notable increase in SDRs, which rose to $531.43 million, primarily due to a second installment of SDR 528 million from the

International Monetary Fund (IMF).

SDRs serve as an international reserve asset, valued based on a basket of five major currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.

The reserve position in the IMF, reflecting Pakistan’s quota within the fund, remained stable at $0.16 million.

This financial update underscores the fluctuations within Pakistan’s reserve assets amidst ongoing economic challenges and international financial support.

The SIFC has a new plan to tackle circular debt. Will it work?

CONTINUED FROM BACK PAGE

The scheme will work in this manner.

Let’s start by assuming that the government passes a grant. The grant will be given to the Gas distribution companies (Sui Cos) who will then be able to adjust their receivables by transferring them to pay off gas suppliers. Once the payments are received by suppliers, they will be able to pay out dividends to its investors which includes the Government of Pakistan (GOP).

Given GOP’s majority stake in the sector, the funds will actually cycle back to the national treasury which will recoup the majority of the cash injection which was carried out in the beginning.

NUMBERS TO BACK THE PLAN AKD Research has looked to quantify the impact of this plan and its impact on the listed companies of OGDC and

PPL in addition to other companies which will see a cash injection owned wholly by the government.

Additionally, a technical supplementary grant alongside debt support through other entities will add to the settlement amount. A technical supplementary grant involves reallocating funds from one budget area to another, without increasing the total budget.

Once the cash injection takes place, OGDC will see an inflow of Rs. 556 billion which will decrease its receivables. As the company comes flushed with funds, the company will give out dividends of Rs 467 billion from which Rs 397 billion will go to the government while Rs 70 billion will be earned by the shareholders other than the government. This will come to around Rs. 109 per share. Similarly, PPL will be able to give out dividends of Rs. 126 billion from which Rs. 95 billion will

go to the government while Rs. 32 billion will be given to the minority shareholders. This will come to around Rs. 46 per share in the form of dividends.

The injection will also pay off some of the outstanding amounts that Sui owes to PSO, against the purchase of RLNG, which will improve the financial and liquidity situation at PSO. Further, the tax on dividend paid out to minority shareholders is expected to amount to Rs. 15 billion which will again be raised by the FBR on behalf of the government.

Muhammad Ali, caretaker minister for energy, power and petroleum, has defended this move by saying that this is a new move to deal with the circular debt issue. This measure will mean that the Finance Ministry will have to release funds for only two days and will actually end up getting a large chunk of this grant back into its coffers.

Hamas proposes 135-day Gaza truce with total Israeli withdrawal CONTINUED FROM PAGE 01

Israel would also withdraw its troops from populated areas during the first phase. Implementation of the second phase would not begin until the sides conclude “indirect talks over the requirements needed to end the mutual military operations and return to complete calm”.

The second phase would include the release of remaining male hostages and “the withdrawal of Israeli forces outside the borders of all areas of the Gaza Strip”.

Bodies and remains would be exchanged during the third phase. The truce would also increase the flow of food and other aid to Gaza’s desperate civilians, who are facing hunger and dire shortages of basic supplies.

“People are optimistic, at the same time they pray that this hope turns into a real agreement that will end the war,” said Yamen Hamad, a father of four, liv-

ing in a U.N. school in Deir Al-Balah in the central Gaza Strip.

“People are awaiting news of a ceasefire, they are a bit hopeful despite the continued bombardment,” he told Reuters via a messaging app. Israel’s brutal military offensive has killed at least 27,585 Palestinians, with thousands more feared buried under rubble.

Israel’s recent war on Gazans came after Hamas resistance fighters raided into Israeli-occupied territory, killing 1,200 people and taking 253 hostages on October 7, 2023, in response to Israel’s prolonged settler colonial violence. So far, the only truce lasted just a week at the end of November.

BLINKEN TO MEET NETANYAHU: Blinken is set to discuss the Hamas counterproposal with Israeli Prime Minister Benjamin Netanyahu later on Wednesday. Washington has cast the hostage and truce deal as part of plans

for a wider resolution of the Middle East conflict, ultimately leading to reconciliation between Israel and Arab neighbours and the creation of a Palestinian state.

“We will be working as hard as we possibly can to try to get an agreement so that we can move forward with – not only a renewed but an expanded agreement on hostages – and all the benefits that that would bring with it,” Blinken said at a news conference in Doha late on Tuesday. Netanyahu has rejected a Palestinian state, which Saudi Arabia, the biggest prize in Israel’s quest for acceptance from Middle East neighbours, says is a requirement of any deal to normalise relations with Israel. The diplomatic push comes at a time of intense combat in Gaza, with Israel pushing to capture the main city in the south of the enclave, Khan Younis, and fighting also resurging in northern areas Israel claimed to have subdued months ago.

The rising cost of democracy: From modest campaigns to billion-rupee battles CONTINUED FROM BACK PAGE

The party evaluates the candidate’s popularity and other factors before deciding whether to issue a ticket. For instance, major political parties, such as the People’s Party, currently require a bank draft of 40,000 rupees for a National Assembly ticket and 30,000 rupees for a Provincial Assembly ticket along with the application. In Balochistan, an underdeveloped province, the Balochistan Awami Party (BAP) has set the application fee at 1.5 lakh rupees for National Assembly and 1 lakh rupees for Provincial Assembly candidates. Similarly, the Muslim League-N requires a fee of 2 lakh rupees for National Assembly tickets and 1 lakh rupees for Provincial Assembly tickets.

Believing that popularity in your constituency and the financial capability to contest are sufficient for securing a party ticket is a misconception. In reality, every hopeful candidate is expected to contribute a considerable sum as a donation to party officials. This unofficial ‘rate’ for securing a ticket varies across different constituencies, cities, and regions. While some individuals may obtain a ticket due to their political connections, this often comes with the responsibility of covering additional expenses imposed by the party.

Assuming a National Assembly candidate manages to obtain a ticket from a well-known political party, it is likely that

the process would cost no less than 5 crore rupees. This is particularly true for parties that are popular and have a higher likelihood of winning. The cost for a ticket can vary significantly depending on the party, with fluctuating rates observed among parties like Pakistan Tehreek-e-Insaf, Muslim League-N, and the People’s Party.

Presently, it’s reported that even the ticket prices set by the Balochistan Awami Party (BAP) are exceptionally high.

While the Election Commission of Pakistan (ECP) has imposed a campaign expenditure cap of 1 crore rupees, candidates often incur expenses between 5 to 6 crore rupees even before the formal campaign begins. National Assembly constituencies cover extensive areas, leading to significant costs. Many individuals working within these constituencies are directly compensated by the candidate. Additional expenses include setting up campaign offices, conducting door-to-door canvassing, and creating visible campaign materials like flexes and banners. The expense of providing food at rallies, processions, and corner meetings can approach 1 crore rupees.

In today’s digital age, substantial amounts are also spent on social media campaigns. Furthermore, some candidates engage in vote-buying, which adds to their expenses. On election day, candidates often bear the cost of transporting numerous voters to polling stations.

The candidate questions the practi-

cality of the ECP’s spending limits, pointing out that adherence is rare. He suggests that campaign funds are often channeled through supporters and investors, allowing candidates to maintain a degree of separation from these expenditures. Considering the recent surge in inflation, the candidate estimates that a National Assembly campaign now requires a budget of at least 5 crore rupees.

This estimate does not include the spending of independent candidates.

Reflecting on his own experience, the candidate disclosed that in the previous election, his expenditure was around 7 crore rupees. In the current campaign, he has already surpassed this figure, spending over 7 crore rupees, and anticipate that the total cost may reach up to 10 crore rupees. The perspective of a Provincial Assembly ticket holder from Multan, belonging to a renowned political party, echoes a similar sentiment.

This candidate notes that while the expenditure for contesting a Provincial Assembly election is marginally lower compared to a National Assembly election, it significantly exceeds the expenditure cap established by the Election Commission of Pakistan (ECP).

The candidate highlighted that typical expenses such as obtaining party tickets, organizing rallies, holding corner meetings, producing printing materials, and covering transportation costs are well-known. Notably, in this elec-

tion cycle, there has been a marked increase in using social media to promote electoral campaigns and party platforms. Social media has become a crucial tool for political parties to connect with the wider public. In preparation for the 2024 election, political parties and candidates are increasingly turning to social media, investing considerable sums in their online presence. However, the Election Commission of Pakistan (ECP) lacks a system to monitor and regulate the expenses incurred for social media campaigning. Major political and religious parties, including PML-N, PTI, PPP, Jamaat-e-Islami, JUI, MQM, and others, have developed dedicated social media divisions, allocating millions of rupees for digital campaigning and making extensive use of social media for election activities.

There are two primary strategies for conducting advertising campaigns on social media. The first involves sharing messages, videos, and images on platforms such as Facebook, Twitter, Instagram, and YouTube at no cost. The second strategy entails spending money to enhance the reach of these posts. This paid promotion, often known as ‘boosting’ a post, is priced based on the desired reach and the duration of the campaign.

The cost for boosting can vary widely, starting from as little as five dollars a day to several thousand dollars, depending on the scale and scope of the campaign.

NEWS 03

new €45m German aid to bolster pakistan’s development initiatives PROFIT

News Desk

Germany has announced a €45 million aid package for Pakistan to initiate several new development projects, underscoring the strong partnership between the two countries.

The agreement was signed in the presence of Dr. Kazim Niaz, Pakistan’s Secretary for Economic Affairs, and Mr. Alfred Grannas, German Ambassador to Pakistan. This funding will support projects focused on climate and energy, sustainable economic development, training and employment, health, social protection, and population policy. The initiative is part of a broader, holistic approach to address global challenges like climate change and social inclusion, particularly of women and youth. This effort reflects decades of fruitful cooperation between Germany and Pakistan, aiming to enhance development in critical sectors. The commitment reinforces the “Shana ba shana” (shoulder to shoulder) partnership between the two nations, striving for sustainable progress and mutual development goals.

Cdwp approves Rs24b Indus River telemetry project PROFIT

News Desk

The Central Development Working Party (CDWP) approved a Rs23.8 billion project for the installation of a telemetry system at 27 key sites along the Indus River. This initiative aims to monitor water discharge accurately in real time. However, the CDWP did not approve two other projects exceeding Rs63 billion due to various concerns, including technical, financial, and legal issues. Chaired

by Dr. Jehanzeb Khan, Deputy Chairman of the Planning Commission, the CDWP meeting evaluated projects across the energy, transport, communication, and water resource sectors. It directed relevant authorities, including the Ministry of Communications, National Highway Authority (NHA), and the Gilgit-Baltistan government, to resolve objections on certain projects before resubmission. The telemetry project, presented by the Ministry of Water Resources, is set to be funded through the Public Sector Development Programme (PSDP), with an additional Rs500 million from the Indus River System Authority (Irsa) for operational costs. This decision comes after a similar but unsuccessful attempt by the Water & Power Development Authority (Wapda) during the Musharraf era, which was eventually abandoned due to technical failures. Despite previous deferrals and concerns over cost escalations and stakeholder engagement, the CDWP has now endorsed the project. This system is expected to enhance water management through online, accurate data on water availability, fostering transparency and equitable distribution by government policies.

eCp establishes ‘election City’ for instant sharing of election results CONTINUED FROM PAGE 01

Only applications received during the designated dates and times will be scheduled for hearings. These SOPs provide clear instructions for submitting recount petitions, ensuring a standardized and organized process.

This helps prevent confusion and facilitates timely review of applications by the ECP. Transparency in the recount process is crucial for maintaining public trust in the electoral system, and these guidelines contribute to achieving that goal. It is important to note that these SOPs only cover the initial submission of petitions. The ECP will likely release further information regarding the hearing process and decision-making criteria in the coming days.

04 COMMENT

Call for urgent action against Myanmar junta

Thursday, 8 February, 2024

The polls

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They could be an inflection point for the country

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HE choice before the voters today is by no means simple. The contest is oddly distorted, for it is not a simple binary, of the PPP versus the PML(N), which was the main theme of all contests between 1993 and 2013. In 2018, the PTI intruded, and is one of the main contenders in this election, but is nowhere on the ballot. Also, its leader, ousted PM Imran Khan, is nowhere on the ballot, not even as an independent, which is how PTI candidates are contesting. At the same time, the voter is confronted by a poverty of choice. There is little clarity amongst the parties about how to tackle the major economic crisis facing the nation, and which shows itself in the combination of stagnant growth and high inflation, or stagflation. Major debt servicing payments coming up mean that the country needs IMF loans to keep afloat, and while its conditionalities ensure that growth remains low, no major party has indicated how it intends to tackle this issue. In other words, the voter is going in blind, and there is a strong suspicion that no party really knows what to do.

There is also the elephant in the room. All three parties have had problems with the military. The PPP and the PML(N) have both been ousted by martial law, not to mention having PMs removed by presidential dissolutions. The PTI was also blaming the establishment for its ouster. At the same time, the election was supposed to deliver the kind of political stability that would allow an economic recovery.

Without a universal acceptance of election results, it seems that stability will not be achieved. If the economy does not recover, which means for most people inflation going down, much of the sheen will be rubbed off the result, making it even more difficult to stabilize the economy.

Though the economy is the biggest challenge to the incoming government, it will face many other issues, such as surviving in a tough neighbourhood. Relations with both western and eastern neighbours are offlimits, which defeats the purpose of popular government. Both also involve issues of trade, which should not be made hostage to politics. Also of vital significance is how the country will continue to balance between China and the USA, even though both are heading ever closer to conflict. The country might like to stay on the fence forever, but that may not be possible. When to get off, and on which side, is for the incoming government to decide.

When elections are not the solution

nava ThaKuria

S Myanmar marked the third anniversary of its military coup a large number of global prodemocracy organizations urged the United Nations Security Council to act in accordance with its mandate for peace and security and take concrete actions against the military junta. These actions must reflect the gravity of the mass atrocity crimes against the people of Myanmar committed by the junta for which the UN High Commissioner for Human Rights called on the UNSC to refer the Myanmar crisis to the International Criminal Court, said an open letter addressing the members of the UNSC. “We find that the UNSC’s adoption of Resolution 2669, which passed its one-year mark in December 2023, not only came too little and far too late– after decades of atrocities by the Myanmar military– but also produced no concrete progress towards halting the military’s genocide, war crimes, and crimes against humanity, which have only intensified since the adoption of the resolution,” asserted the letter, endorsed by 462 civil society organizations, adding that since its adoption, the military junta has launched at least 909 airstrikes, killing more than 364 civilians including scores of children, and torched nearly 80,000 houses.

Over the last year, it is undeniable that the military junta’s violence has become more targeted against civilian populations with blatant attacks on villages, towns, internally displaced person camps, and religious sites where the refugees were seeking space, schools, and hospitals. Since the coup attempt, the junta has killed at least 4,450 people and arrested more than 25,900 people, with more than 19,900 individuals still detained, including President U Win Myint and State Counsellor Daw Aung San Suu Kyi. “Today, dire humanitarian needs are alarmingly increasing across the southeast Asian country, with more than 2.6 million people having been displaced.

Civil society has repeatedly called on international actors, including ASEAN, UN agencies, and international non-governmental organizations, to cease any attempts at partnership with the junta in the name of humanitarian aid. Partnering with the junta only exacerbates the crisis at hand, including by allowing the military rulers to continue to block aid from reaching the populations under its attacks,” added the letter.

Myanmar’s future can only be defined by the will of its people, not the misguided initiatives of the international community. The people of Myanmar have bravely and courageously proven their aspirations and determination to end the military’s decades-long violence and to achieve long-lasting peace in Myanmar where people of diverse backgrounds can co-exist with equal rights and dignity in a truly inclusive federal democracy. It is time for the international community, particularly the UNSC, to align itself with the will of the people of Myanmar through swift, meaningful action.

Dedicated to the legacy of late Hameed Nizami

Arif Nizami (Late) Founding Editor

Let the people win M. A. Niazi

Babar Nizami

Editor Pakistan Today

Editor Profit

The people must decide

P

Dr Zafar Khan SafDar

AKISTAN is witnessing its 14th General Elections today in which more than 128 million registered Pakistani voters will have the chance to cast their vote for candidates to Provincial and National Assemblies. There are a total of 336 seats in the National Assembly, out of which 266 are general seats while the remaining 70 are special, reserved for women and minority candidates. Provincial Assemblies including Punjab (371), Sindh (168), Balochistan (65), and Khyber Pakhtunkhwa (145) have a total number of 751 seats, out of which 593 are general seats and 156 are reserved for minorities and women.

According to the statistics available with the Election Commission of Pakistan, 22,711 candidates belonging to more than 150 political parties or no political party are contesting these elections on general seats. The data shows that 23 million registered voters are aged between 18-25, 33 million 26-35, 28 million 36-45, 18 million 46-55, 12 million 56-65, and 12 million are above 65.

These general elections would lead to a new government that may continue to face economic, political and strategic challenges. There is little chance of improvement in civil-military

The general elections today will significantly impact Pakistani politics. It is crucial to let the people decide their destiny, as political engagement fosters political consciousness and builds effective democracies. Let the people cast their vote to win a democracy for the future of Pakistan

relations and the strategic scenario will remain in flux not only in the context of Afghanistan, Iran, India, Saudi Arabia, and other Middle Eastern countries, but also in terms of relations with the USA, Russia and other global powers.

It is also unclear whether there be a genuine change of heart and direction.

A fundamental point is, who decides what is best for Pakistan? The military has for too long arrogated to itself this right, which belongs to the people and the electorate. If there had been no military interventions, from 1958 onwards, we too might have had the kind of democracy as across the border, that falters in many key areas but also delivers in many others.

The ‘weakening of democratic process’ through military interventions, directly and indirectly, has accentuated negative effects on Pakistan’s future and economy.

In the midst of an explosion of electronic media, the general public has acquired a certain level of independence of thought and is no longer buying official narratives. Most of the people in the country are certain that the establishment has changed its direct intervention and is now playing its political role indirectly so as to enjoy power but no responsibility. For nearly 70 years, the military has defined Pakistan’s national security priorities, be they foreign policy or defence, sometimes from the seat of government itself, with many commanders placed on prominent economic and political positions. In the nation’s 76-year history, not one prime minister has served out a full five-year term. They have been thrown out by military or judicial coups.

Pakistan was established as a nation-state to ensure the supremacy of the people, rule of law, active citizen participation in politics, and protection of human rights. The first Constituent Assembly passed an Objective Resolution, which remains a preamble of the 1973 Constitution. It emphasized the principles of democracy, freedom, equality, tolerance, and social justice enunciated by Islam.

The Quaid-i-Azam supported active citizen participation in electing representatives. He felt that Muslims, who value liberty, equality, and brotherhood, are inherently democratic.

Throughout his career, the Quaid’s dedication to rule of law and constitutionalism was unwavering. However, military interventions have

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Meanwhile, the anti-junta outfits of Myanmar denounced the plan of military dictators to conduct the elections arguing that 27.5 million voters had already given their mandate in the November 2020 general elections to rule the country without the intervention of militaries. The pro-democracy groups pointed out that the current batch of military rulers are planning ‘to hold a sham election as one of its hallmark attempts to claim a democratic mandate, gain international legitimacy, and normalize its relations with foreign countries’.

“The military junta, which is plunging the country into a dire human rights, humanitarian, and economic catastrophe, lacks any legitimacy to conduct a national election,” said Progressive Voice, a participatory rights-based policy research and advocacy organization of Myanmar, adding that the last national polls showcased the unwavering commitment of its nationals for a democratic future without military control.

But the military dictator Min Aung Hlaing led a coup on 1 February 2021 to oust the democratically elected government in Naypyidaw.

“Since the military coup, the Myanmar people have united and coordinated a resistance movement

Needless to mention, the juntaÊs election plans go hand in hand with its relentless violence against the unarmed civilians across Myanmar.

made these values mocked in the past seven decades.

Many, including those from abroad, who back democracy and applaud democratic governance, believe that representative governments are unavoidable options to put the country on track. The struggle between democracy and the military has led to a loss of popular trust, resulting in economic and social issues.

Pakistan needs a future beyond past and present conflicts to ensure its well-being.

Democracy requires unreserved recognition of the people’s right to govern themselves. However, democracy is complicated due to weakened structures like the Constitution, Parliament, and the judiciary. The Quaid’s ideals have been so weakened that some question their relevance as a reference frame, making the democracy more confusing. But it would be a grievous mistake if we fell into the error of seeking to compromise further on his faith in democracy as the only course for Pakistan to follow. With our repeated deviations from universally accepted principles, we are often spoken of as an anachronism in today’s world moving towards political and social emancipation.

It is no pleasure, year after year, to repeat a litany of failure. We must squarely confront the challenge of discovering our direction and identity if we want the times to come to be more purposeful and productive. Pakistan can move towards stability and consolidation if the constituent units are given a strong stake in its strength and vitality. This means not only economic development in backward provinces and regions but also a proper devolution of powers from the centre downwards. For the people at large, democracy essentially means a proper sense of participation at all levels of government, federal, provincial and local. There is neither freedom from want for millions living in urban slums and the less developed regions nor would freedom for the creative urges of the people to find expression that lend dynamism to the country.

The general elections today will significantly impact Pakistani politics. It is crucial to let the people decide their destiny, as political engagement fosters political consciousness and builds effective democracies. Let the people cast their vote to win a democracy for the future of Pakistan.

The Writer has a PhD in Political Science, and is on the visiting faculty at QAU Islamabad. He can be reached at zafarkhansafdar@yahoo.com and tweet@zafarkhansafdar.

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against the military junta. They have collectively prevented the junta from seizing an effective control over the country. Today, because of the people’s resistance, the junta lacks the administrative control of major parts of Myanmar. Across the country, resistance groups have been building Myanmar’s federal future from the ground up with inclusive, people-centric governance,” said Khin Ohmar, chairperson of Progressive Voice, asserting that the illegal and murderous junta has no legitimacy to organize and conduct an election.

“The international community must not fall prey to the junta’s desperate grasp at legitimacy that would only be weaponized to misrepresent the grave reality of Myanmar’s multi-faceted crisis and prolong the military junta’s decades-long oppression of the people,” stated Ohmar, while talking to this writer from an undisclosed location of Myanmar. She also insisted that the international community ‘must denounce the military junta’s sham election plans, and instead actively support the people of Myanmar in their pursuit of genuine federal democracy and sustainable peace’.

Needless to mention, the junta’s election plans go hand in hand with its relentless violence against the unarmed civilians across Myanmar. Over the last three years, the junta has imposed illegal draconian laws to terrorise the opponents, disband many political parties (including the Suu Kyi-led National League for Democracy) and also guarantee its success in the polls. The National Unity Government, an interim government formed by the elected lawmakers, who were not allowed to function, seemingly holds the public mandate to work with ethnic councils and various resistance organizations for establishing a genuine federal democracy in Myanmar.

Nava Thakuria is an independent Indian journalist based in Kamrup, Assam

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

Appreciation of rupees and inflation

WITH continuous appreciation of the pound and improving overall economic indicators, one had expected that inflation would come down.

But the prices of most of the commodities and services are going up.

The oblivious reason for the upward flight of prices is that they benefit the ruling elite and their support base. The teeming millions who suffer the most don’t matter in the scheme of things. The times have changed.

The voter and consumer are no more kings but weak pawns in the exploitative system.

The common masses are thrown to the cruel market forces, where lifesaving drugs and private medical fees are beyond the purchasing power of the average household with an income of £20,000 to £30,000.

The fertilizers and other agriculture input prices are artificially kept high by hoarders and profiteers to crush already battered farmers who face irrigation water shortage and bear the brunt of overall inflation. The transport mafia continues to charge high fares despite the drastic reduction in oil prices. The army of regulators is nowhere to be seen in Sindh. If this exploitation is not checked, the seething anger of the common Pakistani can burst one day. But despite daily reporting of the suffering and exploitation of the common Pakistani, nobody cares.

GULSHER PANHWER JOHI

Overpopulation

OVERPOPULATION poses multifaceted challenges globally, straining resources, exacerbating environmental degradation, and impacting socioeconomic dynamics. Pressures on land, water, and energy resources intensify as populations burgeon, leading to resource depletion and environmental stress. Urbanization burgeons, leading to overcrowded cities, inadequate infrastructure, and housing shortages. The strain on healthcare, education, and employment opportunities amplifies societal disparities. Environmental degradation escalates as consumption rises, contributing to climate change and biodiversity loss.

Addressing overpopulation necessitates comprehensive strategies— accessible family planning, education, and empowerment of women, coupled with sustainable resource management. Balancing population growth with equitable resource distribution and environmental stewardship remains pivotal for a sustainable, harmonious future.

AYESHA RAFIQ RAWALPINDI

Political melodrama

POLITICS of vengeance, a routine practice in Pakistan, once again received legal validation, leaving a stain on the country’s political image.

No matter if you like or dislike, support or oppose; wrong stands wrong at any cost. The episode premiered yesterday in which the symbol of the ‘bat’ was snatched from PTI, was aggrieving. Such a shock to a political party merely 25 days before elections is a setback, weakening, all in all, the democracy. It’s an inalienable right of every person or political party to contest elections without any impediment. Producing such hurdles makes the elections seriously rigged even before their conduct, and that raises eyebrows throughout the world, thus upsetting the already stricken politics of Pakistan. This needs to be stopped; a complete check on vengeful politics remains the only way out and way forward for political stability. To recapitulate, whatever unfolded yesterday in the Supreme Court was nothing but a political melodrama, which is condemned.

ALI MUHAMMAD KHAN SUKKUR

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COMMENT 05

Selection before elections Thursday, 8 February, 2024

The process has been tilted to one side

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Qamar BaShir

N late 2015, key PML(N) figures, including Information Minister Pervaiz Rashid, former Sindh Governor Muhammad Zubair, Daniyal Aziz, and Mr. Talal, a prominent associate of the Incharge of the PML(N)’s social media cell, convened in a critical meeting. They expressed deep concerns over the diminishing visibility and influence of the PML(N) leadership, including the Prime Minister, across media platforms and governance arenas.

This meeting highlighted a sense of urgency and helplessness in countering the narrative that was constricting the party’s political space. The discussion underscored the challenges it faced in maintaining its presence and authority within the public sphere and governance structures, signaling a significant moment of introspection and strategizing within the party ranks.

During a pivotal period in late 2015, the PML(N) leadership faced a stark realization that their tenure in power was nearing an end and their successor was being groomed. The systematic campaign to marginalize the PML(N) was lodged culminating in the dramatic ousting of former Prime Minister Nawaz Sharif. The campaign extended beyond legal actions to include media bans and a broad range of measures aimed at erasing PML(N)’s political footprint. This orchestrated effort not only targeted Nawaz with convictions and lifetime disqualification, his daughter who never held a public office was jailed, but it also ensnared his allies, signaling a concerted effort to reshape the country’s political landscape by sidelining a once-dominant party.

Following the ousting of PTI in 2022, the legal cases against numerous PML(N) figures began to collapse with astonishing rapidity,

raising questions about the initial validity or motivations behind these charges. Observers were left to ponder whether these cases were inherently flawed, perhaps motivated by political vendettas, or if their rapid dismissal was itself a departure from legal propriety. This situation highlighted a dilemma regarding the judiciary’s effectiveness, especially when influential interests are at stake.

Imran Khan’s political saga unfolded like a meticulously plotted hunt, reminiscent of the enthralling tales of yore. Strategically cornered, Khan found himself ensnared, leading to his incarceration. The legal onslaught against him is staggering, with a plethora of cases culminating in convictions that have led to substantial prison sentences in the Cypher and Toshakhana cases while the verdict against alleged illegal Nikah with Bushra Bibi merely adds another layer to his already full plate.

This strategy mirrors the treatment previously meted out to PML(N) and its affiliates, emphasizing a pattern of political retribution. Notably, Khan’s wife, Bushra Bibi, also faced constraints, despite her nonpolitical role, similar to Maryam Nawaz’s predicament. The decision to confine her to their Bani Gala residence, effectively transforming it into a ‘sub-jail,’ has sparked controversy, with official denials adding layers of intrigue. The circumstances surrounding Bushra Bibi’s house arrest, described by her lawyer, paint a picture of overt control and isolation, highlighting the intense scrutiny and pressure faced by Khan’s family.

To ensure a favorable electoral landscape for the PML(N), the PTI has been significantly fragmented. The party faces numerous challenges: loss of its iconic election symbol, the incarceration of its chairman, leaders either imprisoned or in hiding, workers facing intimidation, and public assemblies being curtailed or forcefully disbanded. The PTI’s campaign efforts were hamstrung by restrictions on media access and other forms of electoral campaigning.

Despite these hurdles, the PTI perseveres, aware of the unpredictable nature of Pakistan’s political climate, where democratic processes are seldom left to their own devices. The prevailing political environment in Pakistan is characterized by a tightly controlled system where Parliament, the government, the judiciary, and the media operate under significant constraints, often yielding to pressures that skew the natural course of expression and decision-making towards preordained outcomes.

Maryam Nawaz’s candid admission in a spirited address, that the PML(N)’s only competition is within its own ranks, starkly highlights the altered political landscape favoring the PML(N) and the constriction of political space for the PTI, its principal competitor. Despite facing numerous challenges, the PTI continues to hold significant public support, as evidenced by various polls. According to a Gallup Pakistan survey from 2023, Imran Khan was deemed the most popular leader with a 61 percent approval rating, outpacing other political figures.

However, this support has seen a decline, tilting towards PML(N), as newer surveys indicate a shifting preference among the

Drawing on decades of experience within the bureaucracy, itÊs clear that the civil service adeptly senses and aligns with the prevailing political currents, now veering towards the PML(N), distancing itself from the PTI and others. This pivot reflects a broader understanding, shared by political entities, the populace, and global observers, that in Pakistan, the sequence of Âselection before electionÊ is a recognized norm, shaping the political landscape and influencing the bureaucratic stance. This adaptation by the bureaucracy underscores the intricate dance between governance and power dynamics in Pakistan

Will US oil boom keep booming?

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OILPRICE.COM irina Slav

HEN last October Hamas attacked Israel, oil prices jumped higher, as always happens when armed conflict breaks out in the Middle East. Just a week or so later, however, prices had retreated. Even as the war spread and lit up surrounding countries, oil prices remained stubbornly range-bound, with analysts predicting that it would take an actual supply disruption for traders to start caring about geopolitical risk.

All this was made possible by one factor: U.S. oil production. That expanded surprisingly strongly last year. And many traders and analysts alike seem to assume that this year will be the same. But will it?

Earlier this month, Saudi Arabia ordered Aramco to stop work on The Kingdom’s oil production capacity expansion.

That work would have raised Aramco’s maximum production capacity from 12 million bpd to 13 million bpd. It turned out, however, that Riyadh had reconsidered the plan.

Bloomberg was quick to note the role of U.S. shale as the Saudis’ “nemesis for much of the past decade.”

The suggestion appears to assume that U.S. shale production will continue growing at last year’s robust rate, which surprised most industry watchers who had expected production to reflect drillers’ newfound capital discipline and focus on shareholder returns and debt repayment.

The reason for this assumption is quite simple. Most of the production gains last year came despite a consistently lower rig count and no meaningful increase in spending on new production. They came from efficiency gains such as longer laterals in horizontal wells and improved drilling technology. The question some are asking is whether these could be maintained at last year’s rate. The more important question is, however, will drillers want to do that?

Reuters’ John Kemp posed the first question in a column this week, in which the market analyst noted that the strong increase in U.S. oil output last year had interfered with OPEC’s expectations from its own output cuts. “The critical question,” he wrote, “is how much longer efficiency

Sextortion racket

It is vital for people to be vigilant as cybercrime grew by a whopping 61 per cent between 2022 and 2023, with over Rs 10,000 crore lost to it in the past three years. Along with investment and banking frauds, sextortion is among the top cybercrimes nationwide

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TRIBUNE

Editorial

electorate. In Punjab, a 2024 IPOR poll showed PML(N) in the lead with 45 percent support over PTI’s 35 percent. Conversely, in Sindh, PPP led with 42 percent in a Gallup Pakistan survey, while PTI trailed at 19 percent. Yet, PTI maintained a strong foothold in Khyber Pakhtunkhwa with 45 percent backing, as per a Gallup Pakistan survey conducted in January 2024. This evolving political sentiment underscores the dynamic and fluid nature of Pakistan’s political arena.

Despite polling data suggesting PTI’s leadership position, it’s evident that the full weight of state resources has been leveraged to undercut the party’s presence. Across the nation, the state apparatus has been deployed to thwart PTI’s attempts at organizing public gatherings. In instances where PTI has managed to conduct rallies, especially within the KP province, against the odds of state intervention, their visibility has been significantly diminished by the mainstream media’s reluctance to broadcast these events, thereby diluting their potential impact.

Pakistan’s position in various global in-

HE busting of a multi-crore sextortion racket, in which an elderly man of Haryana’s Bhiwani was last month blackmailed into paying Rs 36.84 lakh in two instalments to swindlers operating on WhatsApp, highlights the vulnerability of crores of smartphone users to various kinds of fraud. This instance

gains can keep driving significant output growth without an increase in prices and drilling.”

If the Dallas Fed Survey is any indication, we may well see a slowdown in the rate of output growth this year. In the latest edition of the survey, the Dallas Fed noted waning optimism among producers and a significant slowdown in the growth rate of production over the final quarter of the year.

Indeed, figures from the Energy Information Administration support this. While for much of 2023, production grew by leaps and bounds—with the occasional slight monthly drop—in the three months between September and November, growth slowed to around 100,000 bpd, with October even seeing a slight dip in output growth.

On the other hand, the EIA recently estimated the change in production over the last two weeks at a hefty positive 700,000 bpd, which would signal that U.S. production growth is still going strong. It bears noting, however, that estimates are not the most accurate of figures, and final data, such as the production numbers for September, October, and November are much more reliable as indicators of future production.

The question of whether producers would want to continue expanding their output as strongly as they did last year is an interesting one. The short answer is yes, in the context of surging exports amid the Red Sea crisis. That crisis has been a boon for U.S. oil as it has hampered the movement of crude from the Middle East to Europe, forcing Europe to look west for supply. The longer the crisis lasts, the longer Europe will remain an extra-big market for U.S. crude, motivating production gains. But countering the strategy of constant output growth are suspicions about future demand and the merit of investment in new production capacity— because sooner or later, efficiency gains will not be enough.

There is also the issue of finite resources. There is an argument against the finite nature of hydrocarbons, but that argument rests on the recognition that not all oil is economical to extract at any price. In other words, there is still plenty of crude untapped in the U.S., but tapping it requires a certain price level that hasn’t yet been reached. In short: dripping sweet spots are running out. At some point, drillers will need either higher prices or lower output.

So, while the assumption that U.S. oil production will continue growing at a breakneck speed seems to be quite popular, it might not be the safest assumption out there. For now, it is being fed by last year’s surprising output gains and a perception that these will continue because they don’t require additional investments. On the other hand, however, we have traders fretting about demand amid Chinese manufacturing activity updates and IEA forecasts about peak oil demand, even though these are based on massive assumptions themselves. These factors are keeping prices subdued.

And U.S. producers can’t keep pumping more with everlonger laterals alone. At some point, they would need to start spending more to produce more—but only if it’s worth it.

holds a lesson to phone users: to be wary of the calls similar to those that the hapless victim received, for it is now a common modus operandi employed in the virtual world of crime. According to reports, when he answered a video call, he saw a woman undressing. He then received a video clip with his face morphed on that of the person who was with the woman. It was followed by threatening calls by the fraudsters posing as police officials, asking for money.

The case also throws light on the way in which people can protect not only themselves from being targeted by online sharks but also save many others from falling prey to the gangs of tech-savvy fraudsters by helping the police catch them. The victim saved himself from shelling out a further Rs 20 lakh as he finally chose to confide in his family, which approached the police. Within three weeks, the cops had nabbed eight suspects and seized 19 mobile phones and found leads to around Rs 3 crore extorted by the gang by making calls to 728 persons across various states.

It is vital for people to be vigilant as cybercrime grew by a whopping 61 per cent between 2022 and 2023, with over Rs 10,000 crore lost to it in the past three years. Along with investment and banking frauds, sextortion is among the top cybercrimes nationwide, with Haryana’s Nuh emerging as a hub of such illegal activities.

dices underscores deep-seated concerns about its governance, rule of law, and freedoms. The World Bank’s political stability percentile, Lowy Institute’s ranking, and the Fragile States Index’s “Warning” category highlight Pakistan’s volatile political climate, marred by frequent leadership turnovers and military influence.

The World Justice Project’s Rule of Law Index 2023 places Pakistan alarmingly low, underscoring deficiencies in regulatory enforcement, civil, and criminal justice systems. Similarly, the Global Competitiveness Report 2022 reflects concerns over the efficiency of Pakistan’s legal-regulatory framework. Moreover, Freedom House’s 2023 report on judicial independence categorizes Pakistan as “not free,” with a notably low score, revealing a judiciary under duress.

These rankings collectively paint a grim picture of a nation grappling with systemic challenges that hinder democratic processes and the safeguarding of fundamental freedoms.

Drawing on decades of experience within the bureaucracy, it’s clear that the civil service adeptly senses and aligns with the prevailing political currents, now veering towards the PML(N), distancing itself from the PTI and others. This pivot reflects a broader understanding, shared by political entities, the populace, and global observers, that in Pakistan, the sequence of ‘selection before election’ is a recognized norm, shaping the political landscape and influencing the bureaucratic stance. This adaptation by the bureaucracy underscores the intricate dance between governance and power dynamics in Pakistan.

The writer retired as Press Secretary the President, and is former Press Minister at Embassy of Paikistan to France and former MD, Shalimar Recording & Broadcasting Company Limited

Asian defence spending ambitions outstrip growth The ambitious spending plans may clash with financial realities given signs that economic momentum, particularly in Asia’s advanced economies, is slowing. Advanced Asian economies are expected to grow by just 1.7% in 2024, raising questions over the sustainability of rising defence budgets in the long term

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INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES (IISS) Karl dEwEy

sia’s defence spending reached a record USD510 billion in 2023. Sustained Chinese military modernisation and North Korean belligerence have increased tensions in the region, while the prospect of a return of former United States president Donald Trump, with his isolationist tendencies, suggests the figure will only grow.

This year’s spending consolidates the wider regional trend of increasing defence budgets, with a nominal 2.8% increase on the previous year, and a 4.6% increase in real terms. However, with defence spending growing faster than economic growth, the affordability and sustainability of defence plans is questionable.

SPENDING FOR AN ARMS RACE: Beijing announced a defence budget of RMB1.55 trillion (USD219.5bn) in March 2023, representing a nominal increase of 7.2% over the previous year. It marked the 29th consecutive year of increasing Chinese defence expenditure. China is outspending its neighbours – The Military Balance 2024 assesses that China represented 43% of regional defence spending in 2023 – at a time it is also becoming more assertive, prompting concerns about Beijing’s military intent.

China’s potential use of force against Taiwan, increasing aggression in the South China Sea, establishment of overseas military bases and enhanced expeditionary operations are fuelling anxiety in the region.

Neighbouring states have responded by hiking spending plans. In August 2023, Taiwan proposed its largest-ever defence budget of TWD606.8bn (USD19.1bn) for 2024. The figure represents a 3.5% increase on the previous year and will contribute towards ongoing acquisition programmes such as the 2021 Sea–Air Combat Power Improvement Plan. The plan aims to build up Taiwan’s defence industrial capacity and field locally produced weapons ranging from precision missiles to air defence capabilities.

While Taiwan prepares for acute threats, major defence spenders in the region, such as Australia, Japan and South Korea, are positioning themselves for the longer term. For example, in addition to nuclear-powered submarines, Australia is investing in multiple areas of advanced capabilities – including artificial intelligence, hypersonic missiles and quantum technologies – through its AUKUS partnership with the United Kingdom and the US. Although

major increases in Australian spending are only expected from 2027 onwards, current government estimates suggest that defence spending will jump ninefold by the mid-2030s.

Japan’s defence plans are similarly ambitious.

In November 2022, Tokyo disclosed plans to raise defence and related security spending to 2% of GDP by 2027, effectively doubling military expenditure. A month later, it issued a national security strategy that said the country faced the ‘most severe and complex security environment’ since 1945. The document identified China and North Korea as the main drivers of Tokyo’s military planning. As a result, Japan’s 2023 defence budget increased sharply, with the country focusing on air and missile defence and long-range counterstrike capabilities.

To counter North Korean hostility, South Korea has also increased its defence budget. In December 2023, the defence ministry released its 2024–2028 mid-term spending plan. It proposes a total budget of KRW348.7trn (USD266.07bn), with KRW113.9trn (USD86.91bn) going toward improving defence capabilities and KRW234.8trn (USD179.16bn) allocated for maintaining troops, equipment and facilities.

The new mid-term plan calls for the acquisition of more reconnaissance satellites, submarines, advanced missile interceptor systems and the development of electromagnetic pulse weapons.

Not every country in Asia is on trend, though.

India’s defence spending increased by just 1.5% over the previous year’s revised budget in 2023.

Given the country’s inflation rate of over 5%, the figure represented a spending reduction in real terms. Moreover, much of the nominal increase between budgets fed into military pension obligations rather than new capabilities.

AFFORDABILITY CONCERNS: The ambitious spending plans may clash with financial realities given signs that economic momentum, particularly in Asia’s advanced economies, is slowing. Advanced Asian economies are expected to grow by just 1.7% in 2024, raising questions over the sustainability of rising defence budgets in the long term. For example, it is unclear how Japan seeks to finance its expenditure given the country’s large national debt and widespread opposition to tax increases. Similarly, Australia’s AUKUS-related costs are significant, with the submarines alone representing the country’s largest-ever modernisation expenditure. The costs are not just in buying the vessels, but the decades-long bills associated with staffing and maintaining them over their operational lifespans. In South Korea, the equipment shopping list is also extensive, but the reality is that the nation’s 2024 budget represents the smallest annual spending increase since 2005.

The budget predicament isn’t likely to ease any time soon. If a second Trump presidency leads to a more isolationist US Indo-Pacific policy, many of the capitals that have been increasing outlays may need to find ways to dig even deeper to minimise the impact of reduced US military might in the region.

Karl Dewey is a Research Associate for Defence and Military Analysis.

06 NEWS

SAUDI ARABIA: NO ISRAEL TIES WITHOUT RECOGNITION OF PALESTINIAN STATE

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RIYADH

REUTERS

AUDI Arabia has told the United States it will not open diplomatic relations with Israel unless an independent Palestinian state is recognised on 1967 borders with East Jerusalem as its capital, its foreign ministry said on Wednesday.

Riyadh reiterated its call for permanent members of the UN Security Council that have not recognised a Palestinian state on the 1967 borders with East Jerusalem as its capital to do so, a ministry statement said.

It was referring to a state the Palestinians have long sought to establish alongside Israel in territories Israel occupied in a 1967 war: the West Bank including East Jerusalem, and the Gaza Strip.

The statement added that “Israeli aggression” against the Gaza Strip must also stop and Israeli forces must withdraw from the territory.

The United States had led months of

diplomacy to get Saudi Arabia to normalise ties with Israel and recognise the country until the Gaza war began in October, leading Riyadh to shelve the matter in the face of Arab anger over Israel’s offensive.

Reuters reported last week that Saudi Arabia would be willing to accept a political commitment from Israel to create a Palestinian state, rather than anything more binding, to try to get a defence pact with Washington approved before this year’s US presidential election.

US Secretary of State Antony Blinken, who is touring the region, said Saudi Crown Prince Mohammed bin Salman had “reiterated Saudi Arabia’s strong interest in pursuing” normalisation when they met this week.

“But he also made clear what he had said to me before, which is that in order to do that two things are required: an end to the conflict in Gaza and a clear, credible, timebound path to the establishment of a Palestinian state,” Blinken said.

On Tuesday, White House National Security spokesperson John Kirby said that the

US lawmakers reject $17.6b Israel aid bill WASHINGTON AGENCIES

US lawmakers voted Tuesday to reject a standalone Israel aid bill denounced by critics as a “cynical” bid to thwart a cross-party border security and foreign assistance package that would include cash for war-torn Ukraine. Republicans in the House of Representatives scheduled the vote after the Democratic-led Senate released a bipartisan bill Sunday pairing billions of dollars for Israel and Ukraine with some of the strictest immigration curbs in decades. But support for that $118 billion package has dwindled, with Donald Trump — who is running for a second White House term — pressuring Republicans to avoid handing President Joe Biden a legislative victory ahead of November’s election. Republican House Speaker Mike Johnson said after the border and foreign aid bill was unveiled that it would be “dead on arrival” if it reached the lower chamber of Congress. The standalone Israel bill would have provided $17.6 billion in military aid for the country, which is strongly supported by the vast majority of lawmakers in both parties as it responds to the deadly October 7 attacks by Hamas militants.

Biden administration has received positive feedback that Saudi Arabia and Israel are willing to continue to have normalisation discussions.

MINISTRY STATEMENT The Saudi foreign ministry statement said the “Kingdom has communicated its firm position to the US administration that

Thursday, 8 February, 2024 | LAHORE

there will be no diplomatic relations with Israel unless an independent Palestinian state is recognized on the 1967 borders with East Jerusalem as its capital”.

It reiterated “its call to the permanent members of the UN Security Council that have not yet recognized the Palestinian state, to expedite the recognition of the Palestinian state on the 1967 borders, with East Jerusalem as its capital”.

The Gaza war has put renewed focus on the idea of the two-state solution to the Israeli-Palestinian conflict, even though negotiations have been moribund for years.

Israeli Prime Minister Benjamin Netanyahu has said he will not compromise on full Israeli security west of the Jordan River and that this stands contrary to a Palestinian state. Countries including the United States and Britain have reiterated their support for the two-state solution. British Foreign Secretary David Cameron said last week there would be a time when Britain would look to recognise a Palestinian state, including at the United Nations.

China beefs up efforts to stabilize stock market BEJING

AGENCIES

China’s A-share market climbed for two days straight on Wednesday, responding positively to the country’s securities regulator’s recent announcements of a series of policies to stabilize the stock market.

As of the market close on Wednesday, the Shanghai Composite Index rose 1.44 percent, the Shenzhen Component Index climbed 2.93 percent, and the ChiNext Index was up by 2.37 percent.

INSTITUTIONAL INVESTORS ENTER MARKET Central Huijin, a state-owned investment company, said in a statement on Tuesday it has increased its investment scope of exchange-traded funds, and it fully recognizes the current market allocation value of A shares.

The China Securities Regulatory Commission (CSRC) said it supported the move and will continue to coordinate and guide various institutional investors – such as public funds, private funds, securities companies, social security funds, insurance institutions and annuity funds – to enter the market more vigorously.

It will also encourage and support listed companies to increase the intensity of repurchases and holdings, introduce more incremental funds into the A-share market, and spare no effort to safeguard the stable operation

of the market.

NEW SECURITIES LENDING SUSPENDED CSRC has also suspended new securities lending and strengthened supervision of the business. Outstanding securities lending transactions will be settled gradually, the commission noted. It also reminded securities firms of the importance of cracking down on illegal practices such as improper arbitrage that utilize securities lending.

Since the implementation of relevant supervision measures, the balance of securities lending transactions has fallen by 24 percent, the commission added.

REGULATOR ANNOUNCES M&A MEASURES Other measures announced by the CSRC include encouraging the merger, acquisition and restructuring among listed companies.

Specifically, the CSRC will en-

hance the inclusiveness in pricing restructuring and diversify the methods for overseeing performance commitments.

Industry leaders with high market values will enjoy a fast-tracked approval process, enabling them to acquire quality assets more efficiently.

CSRC: IMPROVE INVESTOR RETURNS The CSRC called for listed companies to proactively improve investor returns and maintain market stability.

It urged efforts to establish a longterm mechanism for increasing investment value, as well as to better utilize their toolboxes such as share buybacks, regular dividends along with mergers and acquisitions.

Listed firms are required to actively strengthen communication with investors effectively in order to improve market expectations.

Nikki Haley loses Nevada’s Republican primary despite no Donald Trump on ballot WASHINGTON AGENCIES

China welcomes more foreign friends to China CHINA

AGENCIES

Foreign Ministry spokesperson Wang Wenbin hosted a regular press conference on February 7, 2024. Wang stated that China has consistently been dedicated to promoting a high-level opening to the outside world and expanding personnel exchanges between China and other countries.

Recently, to make it easier for foreigners to apply for mobile phone numbers upon entering the country, multiple mobile phone operators have established nine service outlets at airports in cities such as Beijing, Shanghai, Guangzhou, Kunming, Chengdu and Xiamen. Additionally, six new service outlets have been added in key areas of these cities, which have significant foreign in-

teractions.

Wang mentioned that Chinese authorities and telecom operators have recently taken steps to enhance telecom service levels, providing greater convenience for foreigners traveling, working, studying and living in China. As China continues to improve its measures to facilitate the exchange of personnel with other countries, Chinese citizens can travel abroad more safely and conveniently. This also makes it more convenient for foreign friends coming to China.

The National Immigration Administration of China has officially implemented five measures to facilitate the entry of foreign nationals into China recently. These include relaxing visa application requirements and simplifying visa application materials. This move represents that China continues to speed up its opening up to the outside world.

Republican presidential candidate Nikki Haley embarassingly lost in Nevada’s primary falling behind votes marked “none of these candidates” by Donald Trump supporters, Reuters reported citing findings of Edison Research. Haley, the last remaining rival to Trump, was the only major Republican candidate contesting the party’s Nevada primary on Tuesday as the former president was not on the ballot.

Meanwhile, US President Joe Biden won Nevada’s Democratic presidential primary, securing 90% support with over 70% of votes counted. As an incumbent, Biden faces minimal opposition within his party to run for re-election in a likely November general election rematch with Trump. Trump will secure all of Nevada’s delegates in a separate caucus vote on Thursday, as he moves closer to clinching the nomination after back-to-back wins in Iowa and New Hampshire. Trump did not compete in Tuesday’s primary, which carried no weight in the Republican presidential nominating contest. Haley is not on the ballot in Thursday’s caucus. Republican voters could vote for “none of these candidates” in Tuesday’s primary, and Haley has infuriated Trump by refusing to drop out of the contest. With over two-thirds of the ballots counted, Haley had 32% of the votes, with “none of these candidates” at over 61% and the winner, according to Edison Research. The Republican caucus, run by the Trump-friendly state party, is expected to win with only Trump on the ballot, ensuring his victory and all 26 delegates to the Republican National Convention in July. Voters can participate in both the Republican primary on Tuesday and the Republican caucus on Thursday.

China replaces head of securities regulator amid market turmoil g

Yi's removal comes as Chinese markets are on a knife edge as institutional and retail investors scramble to cut their losses PROFIT

REUTERS

China has replaced the head of its securities regulator, the official Xinhua news agency said on Wednesday, as policy makers struggle to stabilise the country’s main stock indexes after a plunge to five-year lows. The cabinet removed Yi Huiman as chairman of the China Securities Regulatory Commission (CSRC), replacing him with Wu Qing, a veteran securities regulator who had led the Shanghai Stock Exchange and served as a key deputy in Shanghai’s municipal government, Xinhua said.

Yi’s removal comes as Chinese markets are on a knife edge as institutional and retail investors scramble to cut their losses, with the sputtering economy and a lack of forceful government stimulus measures

weighing heavily on confidence.

Numerous market-focused support moves such as restrictions on short-selling or reductions in trading duties have failed to staunch the selloff, as have a number of government statements promising support but lacking details. “As a knee-jerk reaction, I can see how this would be viewed as positive. But in addressing the well understood issues of the Chinese economy, it doesn’t address anything at all,” said Tim Graf, the head of EMEA macro strategy at State Street.

The FTSE China A50 Index Futures edged up after the announcement, with a gain of 0.2% as of 1027 GMT. Hong Kong’s Hang Seng futures were little changed on Wednesday evening.

Foreign investors sold a net 18.2 billion yuan ($2.5 billion) in Chinese equities last month to notch

a sixth straight month of outflows, and the central bank has been persistently supporting the yuan currency.

World stocks (.MIWD00000PUS) went up 20% last year, gold rose 13% and bitcoin 155%. China’s blue-chip CSI300 (.CSI300), fell 11% and collapsed to a five-year low in recent sessions.

Fresh vows of support by state-linked buyers and a Bloomberg report that President Xi Jinping would meet market regulators drove a sharp rally on Wednesday, but the mood remains fragile and investors sceptical. Yi, a veteran of the Industrial and Commercial Bank of China – which he joined as a junior loan officer at a branch in Zhejiang in 1985 – was appointed to head the CSRC in January 2019. Chinese markets have been roiled by near constant turmoil since – first by a trade spat with Washington, then

by the collapse of developer China Evergrande under debts emblematic of the crisis that has enveloped the real estate market. A series of regulatory crackdowns on sectors from technology to education has also tested investors’ patience and China’s underwhelming recovery from COVID-19 pushed them to outright flight. “The selloff is clearly the last straw for Yi – it’s not the first time China fired a CSRC chairman during a market rout. Thus change signals leaders’ willingness to turn the market around,” said Xu Tianchen, senior economist at the Economist Intelligence Unit (EIU). In 2015, a plunge in China’s stock market and a surprise devaluation of the yuan roiled global markets, and a botched stock market rescue attempt tarnished Beijing’s pledges of reforms and broad policy-making credentials.

Thursday, 8 February, 2024 | LaHOrE

CORPORATE CORNER

KE prepares for 2024 elections; fullest support to be extended to polling stations KARACHI

staff report

K-Electric is taking all necessary measures in preparation of the 2024 General Elections. Polling stations and other supporting offices identified by the Election Commission of Pakistan (ECP) will remain exempt from loadshed from 7th February to 9th February until the completion of the electoral process. A dedicated Power Monitoring Cell has been established within KE to maintain close vigilance and ensure safe and smooth power supply. KE also remains in close contact with all relevant stakeholders including the Election Commission of Pakistan (ECP), local government and law enforcement authorities to extend maximum possible support throughout the proceedings. Spokesperson KE stated, “We are committed to facilitating a smooth electoral process, and our technical teams will be available around the clock to address any local faults.

KE Live App, KE WhatsApp, and social media channels will be available 24/7 for customer support.

10 Perals expands its digital capabilities KARACHI

staff report

10 Pearls has merged two foreign entities Likeable and Pixel506, which it acquired in recent years, to consolidate its digital and creative capabilities under 10Pearls Studio. This initiative seamlessly consolidates its digital media acquisitions into a unified, full-service digital powerhouse, according to officials. The studio brings together our existing digital capabilities and past digital marketing acquisitions, such as Likeable, an acclaimed social media agency based in New York City, and Pixel506, a digital services agency based in Costa Rica. It offers brands a one-stop solution for comprehensive digital marketing services spanning creative services, branding, social media management, digital advertising, digital engineering & AI. “We have created a compelling value proposition for our customers.

MKP Group hosts dinner in honor of caretaker Sindh CM KARACHI

staff repoert

Caretaker Provincial Interior Minister Brigadier (R) Haris Nawaz has said that the steps taken by the Caretaker Provincial Government hope that the elected government will continue this continuity.

We have tried hard to control the crime as well as to prevent the spread of drugs, smuggling . He was speaking as the chief guest at a dinner hosted by Chairperson Sana Aqeel and CEO Raza Waqar in honor of the businessmen community on behalf of MKP Corporate Group Pakistan at a local hotel.

MKP Corporate Group Patron General Anees Younis, Majeed Aziz, Sana Aqeel, Raza Waqar and others also spoke on this occasion. Apart from diplomats from Russia, Turkey, Malaysia, Sri Lanka, Morocco, Philippines, Aqeel Hashmi, Mirza Ishtiaq Baig, Faizan Wahid, Mahmood Ahmad Khan, Zubair Jhaya, Hussain Thibo, Anjam Nisar, Fazal Karim Dadabhai, Muhammad Ali Haider were present in the ceremony. , Sajid Hanif, Ali Azmat, Mukesh Kumar Wakwani, Dr. Zubair Ibrahim Shah, Sadia Gul, Javed Iqbal and other people from the business community participated.

Commissioner imposes ban on pillon-riding in Quetta QUETTA

staff report

Commissioner Quetta Division Hamza Shafqaat on Wednesday imposed a complete ban on double riding of motorcycles in Quetta division till Thursday night given security reasons. He said that Quetta snap-checking had been extended, and vehicles and motorcycles without number plates were being stopped. He said that special directives were issued to concerned officials to arrest those walking outside without ID cards in Quetta. All the bazaars, markets etc. around the polling stations will remain closed till Thursday night in Quetta, Commissioner Quetta Division said. He also urged the people to cooperate with security forces to maintain peace in the area.

Bilawal, Asif Zardari condemn terrorist incidents in Qila Saifullah, Pishin KARACHI

staff repeort

Pakistan Peoples Party (PPP) Bilawal Bhutto Zardari and Co-Chairman Asif Ali Zardari on Wednesday strongly condemned terrorist incidents in Qila Saifullah and Pishin areas of Balochistan. The two leaders sympathized with the families of those who lost their lives in the bomb blasts and prayed for the speedy recovery of the injured. Bilawal said the criminals involved in cowardly acts of terrorism should not be spared and urged federal and Balochistan governments to arrest them at the earliest.

07

PROPOSAL FOR TEMPORARY VEHICLE IMPORT, EXPORT FACES FBR OPPOSITION NEWS

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COMMERCE MINISTRY SUGGESTED AMENDMENTS TO IMPORT POLICY ORDER 2022 TO ESTABLISH THIS SERVICE-ORIENTED SECTOR PROFIT News Desk

HE Ministry of Commerce’s proposal to permit the temporary import and export of damaged vehicles for repair purposes has encountered resistance from the Federal Board of Revenue (FBR).

The initiative aims to allow businesses with automobile repair facilities to import, refurbish, and then re-export vehicles without involving foreign exchange at the import stage, instead earn-

ing foreign revenue through service fees.

The Commerce Ministry, responding to industry calls for policy support, suggested amendments to the Import Policy Order (IPO) 2022 to establish this service-oriented sector.

This proposal, also discussed by the Special Investment Facilitation Council (SIFC), aligns with efforts to bolster exports through schemes like International Toll Manufacturing (ITM), which involves producing goods for re-export using materials supplied by a foreign principal.

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Despite support from the State Bank of Pakistan (SBP) and the Ministry of Industries & Production (MoI&P), who recommended effective controls to prevent misuse of the scheme, the FBR voiced concerns.

The FBR argues that vehicle repair does not fit the definition of ITM under the Export Facilitation Scheme (EFS) 2021, citing the practical challenges in issuing authorizations and analysis certificates for vehicles requiring varied parts and accessories replacement.

The Commerce Ministry contends that the current ITM definition is overly

Faysal Bank doubles operating profit for year ended 2023 KARACHI

staff report

Faysal Bank Limited (FBL) a prominent Islamic bank in Pakistan, has shown strong performance in the inaugural year as an Islamic Bank, showcasing its healthy business fundamentals as well as prudent risk management.

The Bank’s recently published financial report reveals that FBL has doubled the operating profit and reached PKR 42.3 billion along with a key milestone of achieving a 1 trillion mark in deposits. The Bank is now positioned as a key player in Pakistan's Islamic banking sector. On a standalone basis, FBL has set a new record with a Profit Before Tax (PBT) of PKR 41.4 billion, 85% higher than PKR 22.4 billion in the last year. FBL’s net profit reached PKR 20.0 billion and an impres-

sive growth of around 80%.

Earnings per share have shown an increase, from PKR 7.40 to PKR 13.21. Additionally, the Bank declared a final cash dividend of Rs. 2/- per share i.e. 20%. This in in addition to the interim cash dividend of Rs. 2/- already paid during the year.

The Bank’s total assets witnessed a 27.5% increase, reaching PKR 1.4 trillion, compared to Dec 2022. FBL's expansion is a testament to its strong foundation and its commitment to play its role in the economic development of the country, while maintaining a prudent approach to risk management.

FBL's strong and diversified business model, along with proactive credit policies, has been pivotal in driving growth Main Muhammad Younis, Chairman of Faysal Bank on this occasion said, “This significant

milestone of achieving PKR 1 trillion in deposits marks a reaffirmation of trust and confidence reposed in us by our customers.” He added that “We look forward to continuing this journey of excellence, innovation, and best in class Shariah Compliant Islamic Banking, ensuring a positive impact on all our stakeholders."

Yousaf Hussain, President & CEO of Faysal Bank said, “We are grateful for the unwavering support from all our stakeholders, which has been a driving force behind this unprecedented journey of growth of Faysal Bank.

It is our aspiration to not only sustain this momentum but to elevate Faysal Bank to the pinnacle of excellence in Islamic Banking whist focusing on our strong and growing customer base and through our customer centric products and services.”

restrictive and advocates for its amendment to encompass refurbishment and restoration works, which would not only generate employment and foreign exchange but also diversify the market.

The Ministry has laid out proposals for the Economic Coordination Committee (ECC) of the Cabinet, including amending EFS 2021 rules to accommodate ITM for vehicle repair works, allowing temporary vehicle imports under specific conditions, and prohibiting domestic sales of such vehicles.

The ECC, after deferring an initial decision, has called for detailed consultations with relevant stakeholders, indicating a cautious approach towards resolving the inter-agency dispute and considering the broader implications of the proposed policy changes.

Minister for Religious Affairs, his team formally greeted for winning award ISLAMABAD

staff report

Saudi Minister of Hajj, Dr. Tawfig bin Al-Rabiyyah, congratulated the Minister of Religious Affairs, Aneeq Ahmed, on his excellent and active performance related to Hajj arrangements. In a letter received by the Saudi Embassy on Wednesday, Minister of Religious Affairs Aneeq Ahmed and his team were formally congratulated for winning the award. It should be noted that on the occasion of the Int'l Hajj Expo held in Jeddah last month, Pakistan Hajj Mission was presented with the award for the best and active Hajj Mission. In his letter, the Saudi Hajj Minister also directed the Pakistani counterpart to complete the service contracts for the pilgrims before February 25 i.e., transport, Makatib, food, accommodation, air tickets and other services through Saudi "e-Hajj". Saudi Hajj Minister Dr. Tawfig reiterated his commitment to continue full support for Pakistani pilgrims under the auspices of the custodians of the Holy Haram.

Arrangements for general elections finalized: Lahore’s New Icon: World leading lighting Information Minister

designer ZKLD studio comes to Pakistan LAHORE

PESHAWAR

staff report

staff report

Pakistan’s leading luxury real estate developer, One Homes, in a first for Pakistan is bringing internationally acclaimed light design consultants ZKLD Studio for their landmark Lahore development, One Canal Road.

ZKLD is an Istanbul-based, award-winning design firm celebrated for its innovative use of light and darkness to enhance visual environments. Boasting a remarkable three-decade legacy, the company has left an indelible mark on the global design landscape with a diverse portfolio ranging from illuminating grand civic structures to crafting intimate community spaces.

With a clientele that includes prestigious names like Rixos Hotels, Emaar, Foster + Partner, and Al-Fattan Properties, ZKLD has proven its expertise in creating captivating visual experiences, making it the perfect partner for One Homes' ambitious vision to deliver Lahore’s new icon.

One Homes, a pioneer in lifestyle-centric living spaces, is guided by a commitment to excellence and a customer-centric ethos.

The international real estate group started their journey in Pakistan in 2017 and since then have consis-

tently set new standards by bringing world-leading brands to Pakistan including Versace Ceramics, The Haute Interiors, Varabyeu Partners, and Savills.

One Homes currently has over 11.7 Million square feet of projects completed and under development across Pakistan with a Gross Development Value exceeding $500 Million.

Mr. Aqib Hassan, Chief Commercial Officer of One Homes, expressed enthusiasm about the collaboration, stating, "While any lighting could adorn a building, we have chosen to appoint a worldleading consultant in ZKLD Studio.

This decision goes beyond our initial commitment to our clients; it reflects our promise to leave no stone

unturned in delivering the best. We believe that the difference between good and extraordinary lies in attention to detail, and this partnership exemplifies our dedication to exceeding expectations."

This exciting collaboration between One Homes and ZKLD Studio promises to infuse One Canal Road, Lahore, with a unique visual language, where light becomes an integral part of the architectural narrative. Together, they aim to create a living space that transcends the ordinary, fusing cutting-edge design with international standards to deliver an iconic landmark that captivates and inspires. Get ready for a luminous transformation that will redefine luxury living in the heart of Lahore.

Modern Customers’ Service Centre inaugurated at LESCO HQs LAHORE

staff repoert

Lahore Electric Supply Company (LESCO) Chief Executive Officer (CEO) Engineer Shahid Haider inaugurated a state-of-the-art Customer Services Centre equipped with all modern facilities here at LESCO Headquarters on Wednesday.

Director (Customer Services) Rai Muhammad Asghar, Director (Admin.) Zameer Hussain Kolachi, Director (HR) Nauman Ghafoor, Chief Engineer (Operations) Sarwar Mughal, Chief Engineer (P&D) Imran Mehmood, Chief Engineer (Safety) Fawad Khalid, Director (Credit Management

Unit) Rai Masood Kharl, SE (Civil Works) Furqan Ali Ghazanfar, Deputy Manager (Admin) Salman Haider, Assistant Manager (Customer Services Center) Fauzia Umeer and others were also present. The CEO also reviewed the facilities provided to the customers at the centre. He said, "Today, an important milestone has been achieved in this regard, the staff working in the customer services centre should treat the customers with good behaviour and resolve their problems as much as possible.

He mentioned that the Customer Services Centre established at the LESCO Headquarter will provide with facilities including bill installments, deadline extension, and marketing etc.

PEC review distribution of polling material at display centres KARACHI

staff report

Provincial Election Commissioner (PEC) Sindh, Sharifullah visited display centres set up in different districts of Karachi division on Wednesday and reviewed the arrangements for distribution of election material to polling staff.

PEC along with Joint Election Commissioner Nazar Abbas and Commissioner Karachi Muham-

mad Saleem Rajput visited display centre set up in district South and asked questions from staff deputed in the centre.

The provincial Election Commissioner also visited the display centres set up in district Keamari, Central and the East districts and reviewed disbursement of polling material to the concerned staff.

Speaking on the occasion, Sharifullah said polling material is being distributed among election staff on fixed time and in peaceful manner.

Provincial Caretaker Minister for Information, Barrister Feroze Jamal Kakakhel Wednesday said that all the necessary arrangements had been completed for general elections which was the mandate of caretaker government. Addressing a press conference here, the minister said that control rooms had been established by election commission, home department and police to monitor the election process. Barrister Feroze Jamal Kakakhel said that Quick Response Force had also been deployed to meet any emergency in an effective way. He said that steps had been taken for security of sensitive polling station adding that about 15000 polling stations had been established among which some are declared sensitive.

The minister said that strict action would be taken that were planning to challenge of state. Regretting May 9 incident, he said that youth were misguided on the day by certain elements to fulfill their nefarious designs.

Barrister Feroze Jamal Kakakhel said we must join hands to end mutual hatred and perception of mistrust.

He said that decision had not been taken to suspend internet service however the service might be suspended in areas where needed

Rescue 1122 arrangements for polls reviewed DI KHAN

staff report

District Emergency Officer of Rescue service 1122 Awais Babar on Wednesday said the comprehensive arrangements had been made to meet any emergency during general elections in the district. He expressed these views during a visit to Rescue Station 11 and 33 city and inspected arrangements for tackling emergencies. During the visit, Awais Babar was briefed about matters about ongoing rescue activities, checked the attendance of staff and arrangements made for the polls.

He also inspected the cleanliness condition of vehicles and the equipment used by the rescue service for coping with emergencies in the district. The DEO said that rescue service workers had been alerted, they would be available round the clock for meeting any emergency during the polls. He expressed satisfaction with the performance of the station, adding staff of the service was efficiently tackling emergencies. Awais Babar also awarded a cash prize to LTV Muhammad Ramzan for his best performance.

ECP issues notice to Daniyal Aziz over violation of code of conduct ISLAMABAD

staff report

The Election Commission of Pakistan (ECP) on Wednesday issued notice to NA-75 Narowal candidate Daniyal Aziz over violation of the code of conduct and fixed February 10 for hearing of the case. The ECP Spokesman said that the commission had decided that if Daniyal Aziz would be declared successful in the general election, the issuance of his final notification would be subject to decision of the ECP. The commission took the decision in the light of the report of the District Monitoring Officer Narowal, in which it has been stated that the above-mentioned candidate is repeatedly violating the code of conduct and neither respond to the notices issued by the District Monitoring Officer. Daniyal was fined Rs 50, 000 for violating the code of conduct, which he did not pay, due to which legal action would be taken against him, he added.

Thursday, 8 February, 2024

SIFC HAS A NEW PLAN TO TACKLE CIRCULAR DEBT. WILL IT WORK?

pRayeR timiNgS

NEWS

Council looking to woo IMF with a unique new solution they are proposing

S g

ANALYSIS PROFIT

zaiN Naeem & ahtaSam ahmad

INCE its inception, the Special Investment Facilitation Council (SIFC) has looked to expand itself and take over the reins of the economic underpinnings of the country with limited success. The military and bureaucracy based chimera has looked to stimulate the economy while looking to bring in investment from foreign countries.

And now the council is trying to take on one of Pakistan’s most persistent issues: circular debt.

As talks begin between the IMF and Government of Pakistan resume, one of the salient features of the talks is going to revolve around the circular debt and measures taken to decrease it. The circular debt at the end of January stood at Rs. 5.7 trillion, with the power sector accounting for Rs. 2.703 trillion and the gas sector contributing Rs. 3.022 trillion.

Despite past measures, such as tariff increases, little progress has been made in addressing it.

HOW DID WE GET HERE? The circular debt is an ever growing monkey on the back of the government which has been persistent in the energy sector for the last 3 decades.

In the power sector, circular debt is the payment withheld by the Central Power Purchasing Agency (CPPA) due to cash flow deficit leading to cash flow problems for other players in the supply chain.

The main causes of circular debt according to the Arif Habib Pakistan Strategy 2024 report are: “Inadequate sector governance, Delays in tariff determination and notification, Lag in fuel price adjustments, Insufficient revenue recovery from both government and private consumers, High Transmission and Distribution (T&D) losses.”

Poor collections revenue collection of power distribution companies (DISCOs) from private and government customers along with delayed and incomplete tariff differential subsidies (TDS) payment by the government to DISCOs and K-Electric adds

Fact Check: Viral Imran Khan mask has not been sold a million times on Daraz SPECIAL FEATURE PROFIT

NiSma Riaz

If you are a frequent user of social media applications X and Instagram, you have probably seen the viral Imran Khan mask that gained popularity overnight after a man was sighted wearing it, along with a Pakistan Tehreek e Insaf (PTI) flag wrapped around his neck.

Soon people learnt that the mask was available on the ecommerce platform Daraz and several social media users either jokingly or seriously expressed an interest in it. A message has been circulating on Whatsapp claiming that this mask, which was originally retailing for Rs 345 on Daraz, is now out of stock after a million of them were sold in just one day. The message also says, “All factories are buzzing with orders and the product website is down.” The message is misleading because it falsely claims that 1 million Imran Khan masks have been sold. Profit verified this claim with Daraz and it was revealed that even though the retail price of the mask had gone up from Rs 345 to Rs 499 and even Rs 999 by some sellers, a million copies had not been sold. In fact, the item was sold less than a 1000 times on Daraz. This confirms that the viral message, marked as ‘forwarded many times’ on Whatsapp contains misinformation regarding the popularity of the product. The same mask was being sold on Daraz by different sellers for different prices. The last remaining seller of the Imran Khan mask had only sold 36 masks for Rs 499, before the item was removed from the website, like it had been for other sellers of the same stock keeping unit (SKU). However, that does not negate the fact that despite low sales, the mask had caught people’s attention. According to google trends, which shows how many times a particular prompt is searched

Aircraft with Pakistan’s humanitarian aid for Gaza people arrives in Egypt ISLAMABAD

Staff RepoRt

A special aircraft carrying hundred tons of relief goods donated by Pakistan for the suffering people of Gaza arrived in Egypt on Wednesday. The plane carrying sixth tranche of Pakistan’s humanitarian assistance comprising winterized tents, tarpaulins and blankets landed at ElArish International Airport of Egypt. The senior diplomatic officials of Pakistan received the relief goods for their onward delivery to Gaza. This ongoing support underscores Pakistan’s continued commitment to addressing urgent humanitarian needs of the people of Gaza.

to the shortfall in inflows.

This sets in motion a series of outstanding receivables in the books of multiple companies in the supply chain including fuel suppliers, generation companies and transmission companies.

Further, the accumulation of gas circular debt is also a pressing concern, exacerbating the challenges faced by the already fragile gas distribution sector. Initially, a significant portion of the circular debt was attributed to natural gas, but recently, the share of RLNG has also been increasing. The differential margin, which is the difference between the tariff approved by the government and the tariff recommended by OGRA, adds to the mounting debt. Additionally, issues like Unaccounted For Gas (UFG) and gas theft further contribute to the amount that needs to be recovered from the government. Subsidized tariffs, combined with delays in subsidy release, weaken the ability of distribution companies to repay RLNG suppliers such as PSO and PLL. UFG refers to gas loss that occurs due to various technical factors as gas travels from fields to end consumers. It is calcu-

lated by comparing the metered gas volume injected into the transmission and distribution network (Point of Dispatch/Delivery) with the metered gas delivered to consumers (Consumer Meter Station) during a financial year. Adjustments for self-consumption and other factors in the operations of gas utilities are also taken into account while determining UFG. OGRA, as the regulator, establishes the UFG benchmark for both Sui Companies. Any UFG percentage or value that exceeds the fixed benchmark is considered disallowed and is deducted from the revenue of the gas utility companies.

SOURCE: PACRA In the past, gas was provided with inadequate pricing being implemented. This meant that the revenues being generated were not able to cover the cost of providing those services. Sui was taking gas from Exploration and Production (E&P) companies like Oil & Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL) but was not able to pay the total cost of fuel. Further, RLNG was being

PROFIT

It has been one of the slowest election campaigns in Pakistan’s history. Major political parties did not begin mobilising their workers until a few weeks ago, and major national leaders have addressed a limited number of jalsas and rallies.

Election campaigns usually run for at least a couple of months. Leaders get to tour the country and spread their rhetoric and their opponents get to respond in turn. Battles are waged in the media and in shows of street strength. All of this takes not just effort but investment. And since Pakistan is a parliamentary democracy with 272 electable seats of the national assembly, there are 272 different campaigns taking place within the country during general elections.

In every constituency this massive economic activity is governed by rules and regulations of the Election Commission of Pakistan. The problem is that these regulations are outdated and completely ignored.

The ECP says that the campaign spend for a national assembly seat is a maximum of Rs 1 crore while the limit is Rs 40 lakhs for a provincial constituency. The problem is that

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supplied by Pakistan State Oil (PSO).

As per an analysis note published by AKD research,“The gas sector circular debt, in particular, has surged over the past three years due to stagnant gas prices, increasing well-head costs, and the diversion of expensive RLNG to the fertilizer sector and households. Presently, the gas circular debt stock is around Rs. 3.0 trillion (including Late Payment Surcharge), and its burden is primarily borne by the three major fuel suppliers such as OGDCI, PPL, and PSO, with total receivables on their balance sheets as of 1QFY24 amounting to Rs. 595 billion, Rs. 543 billion and Rs. 510 billion respectively.”

WHAT IS IN THE NEW PLAN? The new plan relates to addressing the circular debt primarily in the gas sector. Its objective is to rationalize tariffs, eliminate cross subsidies, and inject cash into the system.

The IMF will be informed about the new program, and there are already indications that the Fund will approve the plan. As per the news flow. the proposal involves injecting Rs 645 billion into the system, which will be provided by the Ministry of Finance (MoF) as a supplementary grant.

In the past, budgeted grants were used to settle the receivables which were piling up. The new plan will create a dual solution to the problem by addressing liabilities and receivables of the company at the same time.The budgetary grants will adjust the receivables and will also make sure that these grants go towards the power sector.

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PTI founder’s ex-wife, sons motivate Control room set up by Interior supporters to vote PTI candidates

Ministry to monitor security situation

LONDON

Staff RepoRt

On the eve of general elections, former spouse of incarcerated PTI founder Imran Khan, Jemima Goldsmith, and his sons — Kasim Khan and Suleman Khan — on Wednesday announced support for Pakistan Tehreek-e-Insaf (PTI) candidates.

Kasim, son of the former premier, took to X and said: “Tomorrow’s a huge day for Pakistan. Your vote is important. As soon as you’re able to, please post a photo or video saying “I voted PTI” with the hashtag #votePTI to show your support!

Pakistan Zindabad!”

Kasim’s tweet from his unverified account came to attention only after Jemima retweeted it to her millions of followers.

Kasim Khan’s tweets — in Urdu and English — carried a picture of him posing with his elder brother Suleman Khan with both brothers holding PTI’s flag, asking for votes for PTI on 8 February.

The same picture — Kasim and Suleman holding up the PTI flag – was tweeted by Jemima Goldsmith with the caption: “Pakelection 8th February”. Ten minutes later the

ISLAMABAD

Staff RepoRt

tweet disappeared from Jemima’s timeline which means she deleted her social media post on X — formerly Twitter. However, her repost of Kasim Khan’s tweet remains available on her timeline and has been shared by thousands of users.

By the time Jemima deleted her post, over 7000 users shared it.

Jemima and Kasim only posted pictures of PTI flags and not the symbol of the iconic “bat” as PTI has lost its case to use it as their electoral symbol. Thousands of PTI candidates are now contesting as independents using various election symbols.

The Election Commission of

Pakistan (ECP) on December 22 revoked PTI’s bat symbol on the technical grounds that the party had not held intra-party elections – as required under the law. This rendered the party ineligible for having a symbol for the 2024 elections.

Earlier, Jemima had called out a fake X account set up last week in her son’s name to support the PTI’s election campaign.

Jemima, who was married to former premier Imran Khan till around two decades ago, asked her followers to report the fake account but it has now been confirmed that Kasim Khan has set up his genuine account.

The Ministry of Interior to monitor the overall security situation of the country during the general elections 2024 has established a control room.

According to details, the control room will remain operational at all times and the security situation would be monitored to avoid untoward incidents.The control room included representatives of all relevant institutions including the Interior department, police and Election Commission of Pakistan (ECP) to perform their duties in the control room and will remain vigilant in this regard. Continuous liaison was being maintained with the provincial, regional and district control room. Additionally, information sharing between law enforcement agencies and other relevant agencies is being ensured through this room. The control room will give timely response to resolve the complaints or accident in case of any emergency.

Communication, infrastructure development imperative to boost tourism in GB: PM Kakar Caretaker FM holds separate ISLAMABAD

Staff RepoRt

Caretaker Prime Minister Anwaar-ul-Haq Kakar on Wednesday said tourism in Gilgit-Baltistan can be further promoted by developing a communication system and necessary infrastructure in the area.

This was stated by him while talking to a 17-member delegation of the Royal Foundation of Gilgit Baltistan led by its Chairman Raja Nazimul Ameen which called on him in Islamabad.

Anwaarul Haq Kakar said developing tourism in Gilgit-Baltistan will also help create opportunities for economic development in the region.

He said a positive trend in tourism was witnessed after upgradation of the Skardu Airport to international level. He said Gilgit-Baltistan was rich with natural re-

sources and its people were very hospitable.

Several countries have expressed their interest to have joint ventures with Pakistan in the field of tourism, he added.

PM Kakar also instructed the concerned officials to devise a strategy to look for a sustainable solution to address electricity problems in Gilgit-Baltistan. Besides, he directed to enhance quota of GB students in all disciplines of higher and technical education in all the provinces. The prime minister also appreciated services of the Royal Foundation for the development of Gilgit-Baltistan.

The delegation presented suggestions to the Prime Minister for the improvement of various departments in Gilgit-Baltistan.

PM Kakar was briefed on the occasion that over 1.6 million tourists visit the area last year.

Rising cost of democracy: From modest campaigns to billion-rupee battles Shahab omeR

FAJR SUNRISE 6:15

in many of these constituencies this amount is not even enough to cover transportation costs. In fact, on average, from getting a ticket to ending a campaign large NA campaigns have ended up spending up to Rs 15 crore on a single campaign this year.

So how do they get away with spending this much money? And what exactly are the expenditures of a campaign?

What is the maximum amount of money a candidate is allowed to spend on their election campaign?

Considering the impact of inflation, ECP has revised upwards the expenditure limits for electoral campaigns. This revision marks the seventh instance in the nation’s history where such an increase has been enacted. Now, a candidate contesting for a seat in the National Assembly is permitted to spend as much as Rs 1 crore, while a candidate for the Provincial Assembly is allowed a budget of up to Rs 40 lakhs. In addition, the Commission has introduced a stipulation requiring candidates to maintain a separate bank account specifically for their campaign expenditures. They are also obligated to keep and preserve all expenditure receipts, which must be available for presentation upon request.

A HISTORY OF CAMPAIGN FINANCING REGULATIONS Between 2018 and 2023, the average annual inflation rates in the country stood at 5%, 9.4%, 9%, 9.5%, 19.73%, and 33%, in that order. During the 2018 elections, the spending caps for candidates were determined based on the Election Act of 2017.

This legislation permitted candidates for the National Assembly to spend a maximum of 4 million rupees, while those running for Provincial Assembly seats were allowed up to 2 million rupees. Reflecting changing economic conditions, the Election Commission has adjusted these campaign expenditure limits on six occasions across the past 10 general elections.

During the 1970 general elections for the National and Provincial Assemblies, the spending limits set by the National and Provincial Assemblies Election Ordinance 1970 allowed candidates to spend up to 25,000 rupees on National Assembly campaigns and 15,000 rupees on Provincial Assembly campaigns. This was an increase from the previous limits of 15,000 rupees for National Assembly and 10,000 rupees for Provincial Assembly candidates.

By the time of the 1977 elections, these

meetings with Norwegian, Australian envoys ISLAMABAD

Staff RepoRt

Caretaker Foreign Minister Jalil Abbas Jilani on Wednesday held separate meetings with Ambassador of Norway to Pakistan Per Albert Ilsaas and Australian High Commissioner in Pakistan Neil Hawkins.

During these meetings, the discussions were focused on enhancing Pakistan’s engagement and cooperation with Norway and Australia, Ministry of Foreign Affairs Wednesday, posted on its official account on social media platform X.

limits were raised further: candidates for the National Assembly could spend up to 40,000 rupees, representing a 60% increase, and those for the Provincial Assembly could spend up to 25,000 rupees, a 66% increase.

During the non-party elections in 1985, these revised spending limits were maintained.

For the 1988 general elections, the campaign expenditure caps experienced a dramatic increase of 1150%, setting the spending limit at 500,000 rupees for National Assembly candidates and 300,000 rupees for Provincial Assembly candidates. These limits were retained for the 1990 elections. In the 1993 elections, the expenditure limits were again adjusted, this time doubling the allowed spending. National Assembly candidates were permitted to spend up to 1 million rupees, while Provincial Assembly candidates could spend as much as 600,000 rupees.

During the 1997 elections, the Election Commission decided to retain the existing expenditure limits. However, in 2002, with the introduction of the Election Commission Ordinance 2002, these limits were revised upwards. For National Assembly candidates, the limit was increased by 50%, setting it at 1.5 million rupees, and for Provincial Assembly candidates, the limit was raised by

66% to 1 million rupees. These revised expenditure caps were then maintained through the 2013 elections.

In 2017, the Election Commission implemented the Election Act 2017, which significantly raised the campaign expenditure limits. The new regulation marked a 166% increase in the spending cap, allowing National Assembly candidates to allocate up to 4 million rupees for their campaigns, and Provincial Assembly candidates up to 2 million rupees.

IS THIS LIMIT FEASIBLE FOR THE CANDIDATES? The response is unequivocally negative, particularly for candidates affiliated with major political parties. Unfortunately, even after Profit’s attempts to engage in discussions with various candidates, there was no clear consensus on the actual amount of money spent on election campaigns. A National Assembly candidate from the Pakistan Muslim League-N, representing a constituency in Lahore, conveyed to Profit that running and securing a victory in a National Assembly election typically requires a candidate to spend a minimum of 15 to 20 crore rupees.

This amount makes the established spending cap of 1 crore rupees seem insignificant, comparable to a mere speck in the grand scheme of things. The candidate detailed the financial requirements for contesting elections through a political party, explaining that the initial step involves submitting an application.

Published by Asad Nizami at Qandeel Printing Press, 4 Queens Road, Lahore, for PT Print (Pvt) Limited. Ph: 042-36300938, 042-36375965. Email: newsroom@pakistantoday.com.pk

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