Profit ELECTION DEFEAT FORCES TAREEN, SIRAJ TO CALL IT A DAY In partnership with
Tuesday, 13 February, 2024 I 2 Shaban, 1445
TAREEN QUITS POLITICS, SIRAJ STEPS DOWN AS JI CHIEF
D g
Rs 50.00 | Vol XIV No 226 I 36 Pages I Islamabad Edition
g
ISLAMABAD
PTI DEMANDS CEC’S RESIGNATION FOR ‘MASSIVE VOTE FRAUD’
STAFF CORRESPONDENT
AYS after the country went to polls, uncertainty continued to loom large on Monday after three well-known political leaders, Istehkam-e-Pakistan Party (IPP) chief Jahangir Khan Tareen and Jamaat-e-Islami (JI) chief Sirajul Haq, made shocking announcements of stepping down from party positions. Tareen and Khattak also decided to “step away from politics altogether”, while Siraj took responsibility for the party’s significant drubbing in the February 8 national polls. In a post on X, Tareen said he would like to thank everyone who supported him in the elections and offered his congratulations to his political opponents over their victories. However, he added that he had “immense respect for the will of the
people of Pakistan” and was therefore stepping down. Similarly, the newly-formed IPP with its core of former PTI leaders, only managed to secure two seats in the National Assembly and only one from Pun-
PTI mulls strategy to form govts in Punjab, KP and Centre ISLAMABAD
STAFF CORRESPONDENT
The Pakistan Tehreek-e-Insaf (PTI) on Monday started mulling over a strategy to form governments in Centre, Punjab and Khyber Pakhtunkhwa (KP) after independent candidates secured lead in Feb 8 general elections on Monday. According to a statement issued after the party’s core committee meeting, the top decision-making body of the party, the PTI has constituted special committees to strategise on government formation in the Centre, Punjab and Khyber Pakhtunkhwa (KP). The committee agreed to the early completion of the nomination process for important government and parliamentary positions as per the recommendations and strategies proposed by the committees. The party lauded the people of Pakistan for ‘showcasing’ their political and democratic maturity by casting votes on February 8. “PTI will resist unethical efforts to hand over Pakistan to criminals,” the statement said. A day earlier, PTI demanded the immediate resignation of Chief Election Commissioner (CEC) Sikandar Sultan Raja. According to PTI spokesperson, the CEC and ECP members should immediately resign from their posts for violating the constitution. The spokesperson stated that after gaining a majority in the general election 2024, PTI has the right to form government in the center. He maintained that PDM-2 is being imposed on Pakistan after rigged elections but people have rejected the dishonest parties through their vote. Voting took place on 51 seats of the Balochistan Assembly, 128 out of 130 seats of the Khyber Pakhtunkhwa Assembly, 296 out of 297 seats of the Punjab Assembly, and 130 seats of the Sindh Assembly. PTI-backed Independent candidates consolidated their lead in the general elections 2024 over mainstream political parties, especially in the National and Khyber Pakhtunkhwa Assemblies, throughout the result announcement process. According to the results announced so far, independent candidates have managed to win 101 seats. It is worth mentioning that out of these 101 independent candidates, 92 are supported by the Pakistan Tehreek-e-Insaf while nine are general independent candidates. PML-N is in the second position with 75 seats, while the PPP has won 54 seats. The MQM-P won in 17 constituencies, JUI-F in four, PML-Q in three, while IPP and BNP won two seats each.
jab Assembly. In a separate post on X, Siraj said, “I accept responsibility for the election defeat and have resigned from the post of party ameer.” The resignation by the Jamaat chief
comes after the party failed to secure any National Assembly seats and only secured three seats in the Sindh and Balochistan assemblies, one of which was vacated earlier today by JI Karachi chief Hafiz Naeemur Rehman. PTI DEMANDS CEC’S RESIGNATION: The Pakistan Tehreek-e-Insaf (PTI) has demanded the immediate resignation of Chief Election Commissioner (CEC) Sikandar Sultan Raja, accusing him of dereliction of his constitutional and legal duties and playing the role of a facilitator in what it termed as ‘poll fraud.’ The PTI further insisted that not only should CEC Raja step down, but the members of the Election Commission of Pakistan (ECP) should also tender their resignations. It alleged that they colluded to strip PTI-backed candidates of the mandate bestowed upon them by the people in the February 8 general elections, marred by widespread reports of vote rigging.
PM Kakar defends delays in election results ISLAMABAD
STAFF REPORT
Caretaker Prime Minister Anwaarul-Haq Kakar said Monday defended the delay in election results, noting that mobile services were disrupted — which hampered the gathering of votes — due to security threats. “We could afford delay, but terrorist attacks, we could not […] delay does not mean rigging,” Kakar, whose government was appointed to oversee the country through elections until an elected set-up takes charge, said during a post-election press conference. Political parties — including the Pakistan Tehreek-e-Insaf (PTI), whose candidates contested as independents, the Jamaat-e-Islami (JI), and the Jamiat Ulema-e-Islam (JUIF) — had deplored the delay in the results of the election, claiming that it was tantamount to rigging. The complete election results — despite the passing of more than three days — are still awaited as the total vote count from 264 constituencies is in, but one seat remains. Amid the delay, PTI, JI, and JUI-F held countrywide elections, with the former two warning of more demonstrations. Kakar, recalling instances of election results’ delays in Sweden and Indonesia, wondered whether their polls were “rigged”. “We are a country of 240 million with 92,000 polling stations […] this entire process had to consume some time, which should and can be explained.” The prime minister informed the journalists that in 2018, the entire result-gathering process took 66 hours; however, in 2024, it was completed in 36 hours — however, the official Election Commission of Pakistan (ECP) deadline was around nine hours. Moving on to the allegations of foreign governments, who deplored the disruption in connectivity and the events that transpired in the lead-up to electrons, Kakar said they would be probed if need be. “These friendly countries, un-
fortunately, frame their initial assessment on the fabricated and fractured information available on social media and the digital space.” “A responsible government should take time and then have a position; that would have been better. If we have to investigate, we will not do it on the demand of the United States, United Kingdom, or the EU.” Kakar noted that Pakistan has its law and will deal with it accordingly. “We did not ask a judicial inquiry on Capitol Hill riots. It is not for us to demand it and it is not for them. For me, the demand of a PTI individual than the US, UK, and EU combined.” The premier noted that these nations have their own issues in elections, but that’s not for Pakistan to comment on, and neither should these countries issue statements on Islamabad’s domestic affairs. Amid the nationwide protests by different political parties and large-scale criticism of the ECP over the alleged “massive rigging” and “results tempering”, the premier said: “Irregularities might have happened but there are certain forums [to lodge complaints about it].” Peaceful protest is people’s democratic right, he said, and warned of action against those involved in violence. To a question, PM Kakar said that the upcoming elected parliament would decide about the use of Electronic Voting Machines (EVMs) in the elections. “There
should be an open discussion on EVMS.” Two days back, expressing his annoyance over the delayed election results, President Dr Arif Alvi had said that the country would have been spared the ongoing crisis if the EVMs had been used during the February 8 general elections. It is pertinent to mention here that the ECP’s new Election Management System (EMS) fell flat despite the commission’s tall claims. Taking to his X handle, the president had said: “Had EVMs been there today, my dear beloved Pakistan would have been spared this crisis.” The premier said that PTI wanted to get 336 seats in the house, which he couldn’t do. PM Kakar claimed that a level-playing field was provided to all the political parties, including the PTI. “If a level-playing field was denied to the PTI, then how did such a large number of their supporters reach the NA,” wondered PM Kakar. “Which kind of level playing filed were they expecting?” Referring to the countrywide protests, the premier asked: “Could I postpone the election as an individual?” He maintained that what could he do when they did not the election results despite the deployment of army troops across the country during the elections?
IN TODAY’S ISSUE
ATTENTION Some readers have complained that they are not getting the magazine with their newspaper copy. Please call or WhatsApp us at the following number to register a complaint. Contact: 0307-7338168
PML-N 'names' Shehbaz Sharif for top slot irfan.farooq@pakistantoday.com.pk
ISLAMABAD STAFF CORRESPONDENT
Signs of formation of a coalition government at the federal level have emerged, as indicated by senior PML-N leader Khawaja Asif. In an exclusive interview with a private TV news channel, Khawaja Asif has also disclosed that Nawaz Sharif, the leader of the Pakistan Muslim LeagueNawaz (PML-N), will not be the party’s prime ministerial candidate. Instead, Shahbaz Sharif, Nawaz Sharif’s brother, is set to be the PML-N’s candidate for the prime ministership. Furthermore, Asif revealed that the coalition government will collectively decide on the name of the prime minister. This implies that various political parties involved in the coalition will have a say in determining the country’s leadership. Additionally, if the Pakistan Peoples Party (PPP) proposes a candidate for PM’s slot, the alliance will also consider that. The former minister expressed confidence that the coalition government will emerge within a couple of days, signalling progress towards a consensus among the participating political parties. However, he noted that the name of Ishaq Dar for the finance minister position has not yet been finalized. Like the prime ministerial candidate, the finance minister’s appointment will also be subject to the decision of the coalition alliance. Regarding the Punjab chief minister, Asif indicated that while the name is almost finalized, he refrained from disclosing further details, suggesting ongoing deliberations within the coalition. NAWAZ SHARIF TELEPHONES FAZLUR REHMAN TO DISCUSS UNITY GOVT Meanwhile, PML-N supremo Nawaz Sharif on Monday telephoned Jamiat Ulema-e-Islam-Fazl chief Mualana Fazlur Rehman to discuss matters related to the formation of a unity government. The General Elections 2024 brought a split mandate as not a single political party was in a position to form a government single-handedly. Both the leaders discussed matters related to the formation of a unity government in Pakistan. The sources said the meeting between Nawaz Sharif and Fazlur Rehman is expected to take in the upcoming two days. Earlier on Sunday, Pakistan Muslim League-Nawaz (PML-N) and Pakistan People’s Party (PPP) discussed a ‘power-sharing formula’ to bifurcate the prime minister’s tenure between the two parties for the next five years. The PML-N delegation led by Shehbaz Sharif reached PPP’s office in Lahore where they were received by PPP leadership including Bilawal Bhutto, Asif Ali Zardari and others. The sources close to the development revealed that during the meeting a suggestion was put forward that the PML-N and the PPP might get their respective nominee elected as the prime minister for two and a half years each. PML-N CONTRADICTS KHWAJA ASIF STATEMENT However, a few hours later, PML-N spokesperson Marriyum Aurangzeb claimed that the former defence minister’s statement had been presented out of context, claiming that the name of the party’s prime ministerial candidate had not been decided yet. “The name will be decided unanimously as a result of coalition and political consultation. No final decision has been taken in this regard yet,” she stressed. The former minister also said that discussions and contacts were underway, after completion of which the nation will be taken into confidence through the media.
Israel frees two captives as airstrikes kill 67 Palestinians DELHI
AGENCIES
Indian police on Monday blocked roads to halt farmers who were marching to New Delhi to press for the better crop prices promised to them in 2021 when thousands of growers camped out on major highways leading to the country’s capital. Some government ministers are expected to meet farm union leaders on Monday to avoid a repeat of the year-long protest, which was aimed at forcing the government to repeal farm laws designed to deregulate vast agricultural markets. The march comes just months before national elections in India, in which Prime Minister Narendra Modi is widely expected to win a
third term. India’s millions of farmers form an influential voting bloc and ruling parties try to keep growers on their side. Television footage showed farmers in tractors driving towards Delhi from the northern Indian breadbasket states of Punjab and Haryana, and barriers including barbed wire fencing and cement blocks put up on the edges of the city to stop them. Police also issued orders prohibiting public gatherings in Delhi. The farmers have come out after a call by union leaders to demand higher support or guaranteed prices for their produce and press the government to meet its promise to double farmers’ income. “We will move peacefully and
our objective is that the government listen to our demands,” Sarvan Singh Pandher, general secretary of Punjab Kisan Mazdoor Sangharsh Committee, told news agency ANI. The government announces support prices for more than 20 crops each year to set a benchmark, but state agencies buy only rice and wheat at the support level, which benefits only about 6 per cent of farmers who raise those two crops. In 2021, when Modi’s administration repealed the farm laws after the farmers protested, the government said it would set up a panel of growers and government officials to find ways to ensure support prices for all farm produce. Farmers accuse the government of going slow that promise.
Pakistan joins world to condemn Israel’s Rafah ‘massacre’
ISLAMABAD: Pakistan on Monday joined the rest of the international community to strongly condemn Israel’s latest military offensive in Rafah city in Gaza, where millions have taken refuge to avoid Israeli massacre. Despite calls even by Israel’s close allies including the United States, Benjamin Netanyahu government went ahead with the offensive. Dozens of people, including children, were killed as “extremely intense” Israeli airstrikes and shelling pounded multiple locations in Rafah overnight Monday, according to the Palestine Red Crescent Society, as international alarm mounts over Israel’s planned ground offensive in the southern Gazan city. More than 100 people were killed due to Israeli airstrikes as warplanes targeted different areas of the city and helicopters fired machine guns along the bor-
der areas, the PRCS said early Monday. “Israel’s offensive in Rafah violates the provisional measures indicated by the International Court of Justice to protect the people of Gaza from genocide. It will further aggravate the humanitarian disaster witnessed in Gaza over the last four months and jeopardise the ongoing efforts for a potential ceasefire,” said a statement issued by the foreign office. “We urge the international community, especially the UN Security Council, to take urgent measures to bring an immediate end to Israeli aggression and its incessant crimes against humanity,” the statement added. Qatar, Saudi Arabia, Egypt and the United Kingdom joined a growing list of countries to express concern over Israel’s planned offensive. STAFF REPORT
02 NEWS
MIDEAST GROWTH TO SLOW IN 2024 ON OIL CUTS, GAZA CONFLICT: IMF
T g
SEVERAL GLOBAL SHIPPERS HAVE BEEN DIVERTING TRAFFIC TO THE CAPE OF GOOD HOPE, A LONGER ROUTE THAN THROUGH EGYPT'S SUEZ CANAL PROFIT
reuters
HE International Monetary Fund said on Sunday that Middle East economies were lagging below growth projections due to oil production cuts and the Israel-Gaza conflict, even as the global economic outlook remained resilient. Despite uncertainties, “the global economy has been surprisingly resilient,” IMF managing director Kristalina
Georgieva told the Arab Fiscal Forum in Dubai, while warning of a potential wider impact on regional economies of continued conflict in Gaza. In a regional economic report last month, the IMF revised its GDP growth forecast for the Middle East and North Africa down to 2.9% this year, lagging below October projections, due in part to short-term oil production cuts and the conflict in Gaza. The IMF last month edged its forecast for global economic growth higher, up-
Dawood Lawrencepur to sell 75% stake in Tenaga Generasi to Artistic Milliners PROFIT
PHDL, SIUT extend execution period for Regent Plaza sale g
News Desk
Dawood Lawrencepur Limited has announced its decision to sell its 75% stake in Tenaga Generasi Limited (TGL), consisting of 227,027,613 shares, to Artistic Milliners (Pvt) Ltd. The decision was disclosed to the Pakistan Stock Exchange in line with the requirements of the Securities Act, 2015, and the Exchange’s Rule Book. The sale is part of a Share Purchase Agreement (SPA) with Artistic Milliners, which is still subject to approval from Dawood Lawrencepur’s shareholders and relevant regulatory bodies. Earlier on January 16, Kot Addu Power Company (KAPCO) placed a bid to acquire an equity stake in Tenaga Generasi Limited, which owns a 49.5 MW wind power project located in Sindh. Following the recent announcement, the company has ended the Closed Period traditionally observed before such significant transactions. Dawood Lawrencepur Limited has informed the PSX to update Trading Right Entitlement Certificate Holders accordingly. Further details about the transaction will be shared upon the finalisation of shareholder and regulatory approvals.
Remittances surge by 26% to $2.4b in January
PROFIT
News Desk
The State Bank of Pakistan (SBP) released data showing a 26.2 percent year-on-year increase in workers’ remittances, which soared to $2.4 billion in January from $1.9 billion in the same month of the previous year. The monthly comparison further highlights a modest growth, with remittances climbing by 0.64 percent month-on-month from $2.38 billion in December. The primary contributors to this increase were Pakistani expatriates in Saudi Arabia, who sent back $587.27 million. This was followed by remittances from the United Arab Emirates (UAE) amounting to $407.61 million, the United Kingdom at $362.14 million, European Union countries contributing $290.06 million, and the United States with $283.39 million. However, despite the positive growth in January, a broader view of the current fiscal year presents a more nuanced picture. Over the first seven months of fiscal year 2024 (7MFY24), total remittances amounted to $15.83 billion, a slight decrease of 2.98 percent compared to $16.32 billion received during the same period in the previous fiscal year (7MFY23). The fluctuations in remittance flows is a critical factor for Pakistan’s economic health, affecting foreign exchange reserves and balancing external payments.
grading the outlook for both the United States and China and citing faster-than-expected easing of inflation. Georgieva said economies neighboring Israel and the Palestinian territories saw the conflict weighing on tourism revenues, while Red Sea attacks weighed on freight costs globally. Those factors compounded “the challenges of economies that are still recovering from previous shocks,” she told the forum on the sidelines of the World Governments Summit in Dubai.
The Iran-aligned Houthis in Yemen have been targeting commercial vessels with drones and missiles in the Red Sea since mid-November, and say their attacks are in solidarity with Palestinians as Israel strikes Hamas militants in Gaza. But the U.S. and its allies characterize them as indiscriminate and a menace to global trade. Several global shippers have been diverting traffic to the Cape of Good Hope, a longer route than through Egypt’s Suez Canal. Egypt’s Finance Minister Mohamed Maait told Reuters on the sidelines of the summit that part of the impact of the diversion on Suez Canal revenues could be absorbed due to good growth in “the period before the events.”
BOTH SIDES MUTUALLY AGREED TO EXTEND THEIR SALE AGREEMENT'S EXECUTION PERIOD BY AN ADDITIONAL 90 DAYS PROFIT
News Desk
Pakistan Hotels Developers Limited (PHDL) and Sindh Institute Of Urology and Transplantation (SIUT) have mutually agreed to extend the execution period for the sale of PHDL-owned Regent Plaza by an additional 90 days from previous last date of agreement execution i.e. February 11, 2024. According to a notice sent to the Pakistan Stock Exchange (PSX), the new deadline is now set for May 11, 2024 following an Extraordinary General Meeting held in November 2023. DESPITE APPROVAL COMING THROUGH, REGENT PLAZA’S
SALE FAILS TO WOO PSX INVESTORS: Regent Plaza’s sale seems to be a classic case of insider trading. But will the regulators investigate? The extension comes as both parties continue to finalise details surrounding property transfer under terms initially agreed upon in their November contract. All other clauses within this binding document remain unchanged and fully enforceable. Stakeholders are advised to stay informed about ongoing developments as PHDL communicates further updates through official channels. On the same day, PHDL’s share price increased by about 7.4%. Regent Plaza Hotel and Conven-
tion Centre is situated on Shahrah-eFaisal, Karachi, and covers an area of 13,200 square yards. The total covered area of the building is 47,034 square yards. PHDL also owns two other pieces of real estate in Thatta with a combined area of about 14 acres. It is worth mentioning here that the hotel has 400 rooms with an occupancy rate of 20 percent for the 2021-22 financial year, a significant improvement from the 9 percent occupancy rate in the previous year, which was impacted by the COVID-19 pandemic. In the first nine months of the 2022-23 financial year, PHDL posted a net profit of Rs45.5 million, down 38.3pc from the previous year.
IMF visit to Pakistan delayed until new govt forms g
THIS VISIT IS CRUCIAL FOR CONCLUDING $3B STANDBY ARRANGEMENT (SBA) DUE TO EXPIRE ON APRIL 12 PROFIT
MoNitoriNg Desk
The International Monetary Fund (IMF) has postponed its review mission to Pakistan, originally scheduled following the February 8 general elections, until the new federal and provincial governments are established, a process expected to last two to five weeks. This visit is crucial for concluding the $3 billion Standby Arrangement (SBA) due to expire on April 12 and for discussing a medium-term bailout package essential for avoiding a default
on foreign debt repayments. The delay, necessitated by the need for government formation at both the national and provincial levels, puts the finalization of the IMF’s second review and the release of a $1.2 billion tranche on hold. Pakistan’s foreign exchange reserves have dwindled to $8.04 billion as of early February, emphasizing the urgency of the IMF’s financial support. The review, now rescheduled to March 15, 2024, aims to provide Pakistan with enough time to meet the program’s structural benchmarks. However, election controversies and calls for investigation
into alleged voting irregularities have further complicated the timeline. The successful completion of the IMF review is pivotal for Pakistan to avoid a balance of payments crisis and to secure a new financial agreement that will influence the country’s economic policy and reform agenda moving forward.
Stocks suffer bloodbath as PSX plunges nearly 3% PROFIT
News Desk
The Pakistan Stock Exchange (PSX) suffered a bloodbath on Monday as the benchmark KSE-100 Index plummeted by nearly 3% mainly due to clouds of uncertainty hovering over the political horizon. According to data available on the PSX website, the KSE-100 index started trading on a negative note by declining 670 points in the early hours. By 11:00 am, the index had fallen by 1,289 points or 2.05%. As of 2:30 pm, the bearish trend prevailed further and the benchmark index plunged by 2253.59 points or 3.58% to reach the 60,690.15 level. At day end, the 100-index closed at 61,065.31 points, down by 1878.43 points or 2.98% as compared to the previous close. This sharp decline was attributed to the investors’ fears over the political instability in the country following the inconclusive elections on February 8, 2024. No party was able to secure a majority in the parliament, raising the
g
DECLINE WAS ATTRIBUTED TO THE INVESTORS' FEARS OVER THE POLITICAL INSTABILITY IN THE COUNTRY
prospects of a hung government or a coalition with weak mandate. Bloomberg reported increasing investor apprehension, attributing it to the election’s outcome, which hints at a rise in political instability. Despite government efforts to dispel concerns regarding its circular debt reduction and tariff rationalization plans, the oil & gas exploration compa-
nies sector experienced the most significant impact. Other sectors, including cement, oil & gas marketing companies, power generation & distribution, and fertilizer, also negatively influenced the index. On a positive note, some companies managed to add points to the index, with COLG, FFC, SRVI, SHFA, and INDU making minor gains.
Tuesday, 13 February, 2024 | ISLAMABAD
IMF raises concerns over Pakistan’s energy reform efforts PROFIT
MoNitoriNg Desk
The International Monetary Fund (IMF) has expressed concerns over Pakistan’s proposed energy sector reforms, stating they fail to tackle the fundamental issues, as reported by Business Recorder. IMF Mission Chief Nathan Porter highlighted the need for comprehensive reforms to ensure economic recovery and fiscal stability. The proposals, according to Porter, miss crucial aspects such as reducing energy costs, enhancing compliance, addressing theft, and improving governance within the energy sector. Porter criticized the plans for not effectively addressing circular debt neutrality and potentially increasing the financial burden on vulnerable households. He also pointed out fiscal risks associated with the circular debt reduction strategy and its reliance on supplementary grants, which have previously strained Pakistan’s finances. Despite these criticisms, the IMF remains open to collaboration with Pakistan and its partners to develop a sustainable reform approach that could lower tariffs for all consumers. The government’s defense of its strategy and ongoing discussions with the IMF suggest an awareness of the challenges ahead, particularly in managing the sector’s circular debt, which is proposed to be settled through government funding.
State Bank of Pakistan reports rise in national debt
PROFIT
MoNitoriNg Desk
According to the latest figures from the State Bank of Pakistan, the nation’s external debt and liabilities climbed to $131.159 billion at the end of the first half of fiscal year 2024, registering a growth of $1.417 billion or 1.09% over the quarter, and a year-on-year increase of 1.99% from $128.605 billion. Public external debt, constituting 76.02% of the total, saw government external debt rise to $80.165 billion, reflecting increases of 2.11% over the quarter and 1.54% year-onyear. Long-term external debt also rose to $80.066 billion, with short-term debt significantly dropping to $99 million. The report detailed IMF loans totaling $5.069 billion to the central bank and $2.527 billion to the federal government, with foreign exchange liabilities reaching $11.939 billion. Non-governmental external debts included borrowings from public sector enterprises, banks, and the private sector, with notable figures being a slight decrease in PSEs’ debt to $7.869 billion and a reduction in private sector debt to $12.277 billion. Intercompany debt saw an increase, totaling $4.675 billion.
SECP cancels licenses of three brokerage firms PROFIT
News Desk
The Securities and Exchange Commission of Pakistan (SECP) has revoked the licenses of three brokerage firms, leading to the deactivation or suspension of their trading terminals, a notice from the Pakistan Stock Exchange (PSX) revealed on Monday. Xpert Securities Limited, one of the affected firms, saw its license canceled following its application for the voluntary surrender of the Trading Right Entitlement Certificate (TRE Certificate) and failure to seek renewal of its brokerage license. This action resulted in the deactivation of its trading terminals. CAMCO (Private) Limited faced the suspension of its trading terminals due to non-compliance with regulatory standards and the absence of an application for license renewal. Similarly, Enrichers Securities (Private) Limited experienced suspension for regulatory violations and for not applying for the renewal of its broker license. These measures have been taken to ensure compliance with regulatory standards and safeguard the interests of investors, highlighting the SECP’s commitment to maintaining the integrity of the trading environment.
PDWP approves over Rs9b in development projects for Punjab g
PROJECTS AIM TO ENHANCE PUNJAB'S INFRASTRUCTURE, ENERGY EFFICIENCY, AND PUBLIC SERVICE FACILITIES PROFIT
News Desk
The Provincial Development Working Party (PDWP) has sanctioned five key schemes across various sectors in Punjab, tallying an investment of Rs9.914 billion. The decision came during a session chaired by Iftikhar Ali Sahoo, the Chairman of the Planning and Development Board. The greenlit projects encompass a broad spectrum of areas including regional planning, energy conservation, governance improvements, and infrastructural upgrades. Notably, the projects aim to enhance Pun-
jab’s infrastructure, energy efficiency, and public service facilities, marking a pivotal step in the province’s development trajectory. Among the approved initiatives is the Regional Planning in Punjab project, allocated Rs477.647 million, aimed at strategic regional development. The Energy Efficiency & Conservation Programme (PGDP, DLI-5) (Revised) receives Rs3.445 billion, focusing on reducing energy consumption and promoting sustainable practices. Additionally, the revamp of Data Centre Services, with enhanced availability and backup facilities for the Punjab Forensic
Science Agency (PFSA), is set to proceed with a budget of Rs785.602 million. The rehabilitation and renovation of the LG&CD Building and H-Block (now Ravi Block) in the Punjab Civil Secretariat, Lahore, alongside improved parking facilities, have been assigned Rs657.776 million. A significant portion of the funding, Rs4.548 billion, is dedicated to constructing 313 residences for Police Officers/Officials (BS 1-20) in Lahore (Phase-II), addressing housing needs for law enforcement personnel. The meeting saw attendance from secretaries of the relevant sectors, members of the Planning and Development Board, heads of pertinent departments, and senior representatives from provincial departments, highlighting the collaborative effort towards provincial development.
CABINET WITHDRAWS APPOINTMENT OF PERVAIZ AHMED JUNEJO AS CHAIRMAN EOBI Tuesday, 13 February, 2024 | ISLAMABAD
T
tution (EOBI) and approved to assign additional charge of Chairman, EOBI to Dr Arshad Mahmood (BS-22). According to sources, federal cabinet has granted approval to withdraw the appointment of Pervaiz Ahmed Junejo on a proposal/ summary submitted by the Ministry of Overseas Pakistanis & Human Re-
ISLAMABAD
ahMaD ahMaDani
HE federal cabinet through circulation of summary has cancelled the appointment of Pervaiz Ahmed Junejo (BS-20) as Chairman of Employees Old-Age Benefits Insti-
sources Development in a summary. The Ministry of Overseas Pakistanis & Human Resources Development also proposed to the cabinet to allow assigning of the additional charge of Chairman, EOBI to the incumbent Secretary Ministry of Overseas Pakistanis & Human Resources Development, Dr Arshad Mahmood for a period of
three month or till the appointment of regular incumbent whichever is earlier, said sources. The approval of the cabinet through circulation of a summary was sought after securing the consent of Prime Minister in this regard, they added. The sources also said that after withdrawing the appointment of Pervaiz Ahmed Junejo as Chairman of
Impasse persists in stalemate over Suzuki’s delisting CONTINUED FROM BACK PAGE
In light of their shared concerns, the shareholders requested the company to not hold its Extraordinary General Meeting (EOGM) on February 9th 2024 to vote on the delisting and to take necessary actions in order to correct this wrong. In addition, PSX and SECP were asked to meet their regulatory duties and protect the interest of the shareholders in regards to the issue raised. As reported earlier, once PSX decides on a price, it is considered binding and final and that has to be followed. That is the limit to which the PSX can step into this situation. On the other hand, the company will try to pay as little as possible as it is financially prudent for it to do so. Lastly, the holding that was collected by Nisar went as high as Rs 877 in the market and he would want to be compensated accordingly as he had bought shares in the market at a price which he saw as justified based on his assumption and analysis. Since this letter was sent, no correspondence was received by the shareholders. As a part of its media strategy, the shareholders have sent another letter to PSX, SECP and the company on 6th of February 2024. Even though the letter was received by the exchange, it still hasn’t been made public as it was received near the end of business on the 7th. The letter has not been posted in the morning of 9th when this should have taken place. In the new letter, the shareholders have provided their own estimation on the share price which should be proposed which was carried out by independent valuators, analyst appraisals and recent market trends. Based on these valuations, the letter claims that using
market metrics, the price should be between Rs. 925 and Rs 4,799 which considered latest quarterly earnings, price to earning ratio and other comparative transactions that had been carried out in the past. The publication asked the representatives of the shareholder to provide the mentioned Annexure B for the calculations which has not been provided. In addition to that, based on the last three Multinational Companies that had been delisted, the shareholders claim that the delisting price should have been Rs. 12,704 based on the average PE ratio of the companies. They have attached an Annexure C to justify this valuation which has not been provided to this publication as well. The letter again alleges that the company was involved in financial mismanagement and unlawful practises which are against the interest of the shareholders and there was no participation of the shareholders in determining the price of the delisting. They also state that valuation of the company was done with no regard given to a business plan, goodwill determination and there was a lack of transparency in the delisting process. Goodwill, in terms of business valuation, represents the intangible value and reputation of a company. It is an asset that is not easily quantifiable and is often associated with factors such as brand recognition, customer loyalty, employee expertise, and relationships with suppliers and stakeholders. The Shareholders attached an analyst report by a corporate brokerage house of Aba Ali Habib Securities (Pvt) Limited which has not been provided to check for veracity to the publication as well.
The aggrieved group is now asking for the SECP and PSX to step in and investigate the whole process by which the delisting was carried out and provide transparency in the whole process which has been lacking from the start. Even though objections had been raised, it was evident to the shareholders that EOGM was going to be held on the 9th February 2024 as planned which was disregarding any earlier issues raised. Something that has been highlighted by this publication since the beginning is the fact that the valuation process and the annexures are not made public. The company’s valuation, the valuation by the PSX and now even the valuations done by the shareholders cannot be accessed by the market themselves. Much of the mystery behind these numbers will end once these valuations are released. Sunlight will prove to be the best disinfectant in the case of misinformation and undervaluation. In terms of the role of each of these parties in the future, the company will try to get as many votes as possible at Rs. 609 and try to make this buyback successful. The PSX has done all that it can do and now has given a price which is final and binding. The shareholders will stick to their guns and not sell at a lower price, as stated by them, and wait out a whole year to make the buyback unsuccessful and get a fairer price. PSX cannot even do anything about the price as its regulations do not allow it any room in this regard. There can be an exception made in this case with SECP, shareholders, company and PSX coming on board to revise the valuation that was done earlier and given a one time exemption to this buyback. This will allow for the price to be revised upwards and deal with the im-
passe in an amicable manner. Another way could be that the shareholders, under the guarantee of a third party, cut a deal with the company and circumvent the PSX to transfer the shares at a higher price. This will make sure that the buyback is successful while solving the problem by saving time and resources of both sides. The media blitz that has been launched by the shareholders might be a move in that direction where they negotiate with the company and this tactic of sending letters to the PSX could be a move to put pressure on the company. As things stand, something has to give before the situation can be resolved. In case the company is not willing to play ball, it can be expected that Nisar and his block will keep sending letters to PSX to get the company to come to the negotiation table. The planned EOGM of Pak Suzuki was held on the 9th of February and the motion was passed to carry out the buyback at the price set by the exchange. However, it seems that the shareholders have raised their voice to the company. Videos from the EOGM have come out showing shareholders lambasting the company for short changing them and giving them a low price for their shares. With the company having no regard for the minority shareholders, it seems this saga will continue long into the future. The shareholders will only become more stringent in their opposition to the move as they see that the company is not willing to budge from their stance. The problem still exists as there is little Pak Suzuki, shareholders or PSX can do in the current situation other than stick to their guns. Unless negotiations are held, nothing is going to change for the foreseeable future.
As B2B startups shut shop or scale down, Bazaar too struggles to tide over current crisis CONTINUED FROM BACK PAGE
In face of the difficult environment, Bazaar diversified to segments other than mom-and-pop stores, such as pharma and mobile phones. Other than the aforementioned verticals, Bazaar also moved into industrial raw materials, a fairly large market with only one startup Zaraye as competitor, and also launched verticals focused on restaurants and offices and provides them inventory.
ANOTHER DAY, ANOTHER WAVE OF LAYOFFS According to details received by Profit, a significant downsizing at Bazaar occurred in the non-core team, which roughly had over 3,000 employees. 20% of this entire force has been let go of, leaving some 600 people, primarily from the ground team, unemployed. Many have also resigned voluntarily. According to sources, the company has downsized its growth teams, commercial teams, and has let go of its entire field force in Lahore, opting for a more or-
ganic approach through its customer app. Two new verticals introduced early last year, including mobile phones and pharma have been discontinued, while still in their pilot phases. According to the company, both these wings were essentially non-performing verticals and contributed to less than 2% of the company’s overall business. The suspension of these two categories has resulted in approximately 50 contractual employees losing their jobs. The company’s CEO Saad Jangda acknowledged challenges in these business categories, citing market turbulence influenced by import restrictions, currency fluctuations, and inconsistent supply over the past 12-18 months. He also revealed that Bazaar is scaling other business segments, prioritising the core food and grocery business, offices and restaurants, as well as industrials. So, not all segments are suffering or facing the risk of shutdown. Some verticals, unlike the non-performing pharma and smartphones segment, sources claimed, were performing well
SECP prepares to launch ‘eZfile,’ a new corporate registry
Bazaar Technologies clarified that its B2B retail arm, one that provides inventory to neighborhood convenience stores, would not be shutting down, claiming further that the startup still serves tens of thousands of mom and pop stores across the country. It is unclear how Bazaar is still continuing to serve tens of thousands of stores after the scaledown and the company did not provide clarification regarding this. The company said it still holds a substantial portion of its funding, providing a runway for continued operations. However, when asked for how long the remaining runway is, Bazaar did not respond. Jangda told Profit, “We have a strong balance sheet, retain a majority of the capital raised in Series B and are quite confident on our path to profitability in the near future.” While struggling to maintain a positive unit economics without having to carry out a massive layoff spree, Bazaar has managed to devise a financing strategy that is efficient. And this is perhaps why it is only struggling and hasn’t al-
PML-N undermining democracy to seize power, says Salman Akram Raja
ISLAMABAD
ghulaM abbaS
The Securities and Exchange Commission of Pakistan (SECP) is gearing up to introduce a cutting-edge corporate registry called “eZfile”. This online portal, part of SECP’s digital transformation initiative LEAP—Leading Efficiency through Automation Prowess, is designed to streamline company registration and postincorporation filings with enhanced sophistication and user-friendliness. As per details, eZfile, poised to replace the current online filing system, ‘eServices,’ offers a modern interface and advanced features to simplify processes such as incorporation and statutory filings. Users will benefit from built-in checks and guidance messages, ensuring a seamless experience. The SECP has revamped the regulatory framework by consolidating multiple forms into a reduced set of 28, down from 75, eliminating redundancy and enhancing clarity. The newly issued “Companies Regulations 2024” cover various aspects including company incorporation, compliance, licensing under Section 42 of the Companies Act, 2017, share capital issuance, group registration, and exit procedures, among others. Standardized forms and application samples are included for easier compliance. Implementation of the Companies Regulations, 2024 will be phased in alongside the LEAP project rollout, as detailed in the Commission’s notification.
ready bitten the dust like some of its counterparts. The company is also clearly undergoing a realignment, revising its strategy and reducing topline numbers. Jangda did not comment on Bazaar’s plans to raise the next round, but did say that the startup was on a trajectory to achieve profitability soon, without disclosing when exactly. Some sources at Bazaar say that Bazaar was actively focused on increasing its net revenue (NR) and profitability to move towards positive EMC and EBITDA, which is why the cost-cutting measures had been taken, so that the company could raise the next round. In response to the market dynamics, the company is also reported to be making strategic adjustments. The core team remains intact, with talents from discontinued verticals being delegated to other departments, resulting in the layoff of fewer than five individuals from the core team over the last year. Currently Bazaar employs over 450 people and has over 1100 associated members, according to the company’s Linkedin profile.
ISLAMABAD
Staff RepoRt
Slamming the PML-N led by Nawaz Sharif, Salman Akram Raja, a PTI-backed independent candidate from Lahore’s NA-128 constituency, on Monday asserted that those who once advocated for the integrity of the vote were now aiming to seize power by undermining the very essence of democracy. The senior lawyer, while speaking to media outside the Election Commission of Pakistan (ECP) office, alleged that the election was rigged, stating that he was winning by a wide margin according to the Form 45, but his victory was turned into defeat the following day. Raja called this (rigging) an insult to the millions of people who used their franchise right on the polling day, recalling that he had been forcibly removed from the office of the RO (returning officer) so that the results could be manipulated. “What kind of magic turned a lead of 0.1 million into 12,000, the electoral candidate questioned, asserting that the election was rigged and we know how it was done. According to Salman Akram Raja, he won the election with a lead of at least 90,000 votes [against Istehkam-e-Pakistan Party candidate Awn Saqlain
Chaudhry]. He said he would take legal action and challenge this decision at every forum. Raja also mentioned the disruption of internet and suspension of cellular services on Feb 8, which according to him, was carried out to sow confusion and fracas. The Supreme Court lawyer held the view that only the state could end rigging, but added that it seemed as if the officials of the state themselves were involved in rigging. Rigging was done by electoral and police officers. It occurred in the ROs offices. The role of ROs was extremely regrettable, he went on to add. Announcing the future course of action [in response to the rigging], the PTIbacked independent candidate said they would hold peaceful protests. Asked about the efforts of the PML-N and the PPPP towards the formation of a collation government, Raja remarked that what a government would do for the country and the people if it was based on lies. It is important to note here that Salman Akram Raja has challenged the victory of Awn Chaudhry in the Lahore High Court.
NEWS 03
EOBI, the federal cabinet has directed him (Pervez Ahmad Junejo) to report to the Establishment Division. Pervaiz Ahmed Junejo had declined to assume the charge of Secretary, EOBI due to personal reasons, sources added. EOBI is an autonomous body, established under EOBI Act, 1976 and working under the administrative control of Ministry of Overseas Pakistanis and Human Resource Development. The appointment of the Chairman of EOBI is a prerogative of the federal cabinet as per Section 8 (A) of the Act. After posting out of Ms. Naheed S. Durrani, former Chairperson, EOBI, the post of EOBI chairman was lying vacant from 17th January 2024.
Pakistan’s inconclusive election increases default risk: Bloomberg PROFIT
MonitoRing DeSk
In the recent election held on February 8, Pakistan faces increased political uncertainty that could affect its economic stability and efforts to secure critical financial support from the International Monetary Fund (IMF), as reported by Bloomberg Economics. Without the essential support, Pakistan’s default risk could escalate, impacting the nation’s economic growth and prospects. The election did not result in a clear majority for any party. Instead, independent candidates, many of whom are supporters of the jailed former Prime Minister Imran Khan, emerged as significant contenders, securing 101 of the 265 National Assembly seats contested. This outcome has introduced complexities in forming a stable coalition government, raising concerns among investors and potentially delaying crucial investments in the country, states Bloomberg Economics. The unexpected election results have intensified the political landscape, with Imran Khan’s influence notable despite his incarceration and the ban on his party’s participation. The ongoing political instability poses a risk to Pakistan’s negotiations for a new aid package from the IMF. The situation underscores the urgent need for political consensus to navigate the economic challenges ahead.
IHC sets hearing for Bushra Bibi’s request to shift from Bani Gala to Adiala Jail ISLAMABAD
Staff RepoRt
The Islamabad High Court (IHC) has fixed for hearing a plea filed by former first lady and wife of Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan to transfer her to Adiala Jail from Bani Gala. According to the court’s cause list issued by the Registrar Office, Justice Mian Gul Hasan Aurangzeb will take up the case. Bushra Bibi’s petition challenges the January 31 notification that designated Bani Gala as a sub-jail, advocating for the annulment of the decision. In her plea, she asserts her desire to serve her sentence in Adiala Jail, citing the principle of equal rights. She argues that, like other political activists, she should be among the common prisoners in jails. Notably, Bushra Bibi was handed a 7year imprisonment sentence in the Iddat Nikah case and a 14-year sentence in the Toshakhana case by the court.
ECP notifies victory of PMLN candidates from Islamabad NA seats ISLAMABAD
Staff RepoRt
The Election Commission of Pakistan (ECP) on Monday issued a victory notification for Pakistan Muslim League-Nawaz candidates from three NA seats in Islamabad. As per details, the ECP notified Pakistan Muslim League-Nawaz’s Anjum Aqeel was victorious on the NA-46 seat. Tariq Fazal Chaudhry was also notified as MNA from Islamabad from NA-47 constituency. Raja Khurram Nawaz, the independent candidate, was also declared winner by the ECP from the NA-48 seat. Earlier on Sunday it was reported that the results of 10 National Assembly seats and 16 provincial assemblies’ seats in Pakitan have been withheld after being challenged by the losing candidates.
04 COMMENT
A cry for fair compensation: The struggle of young doctors in Pakistan
Tuesday, 13 February, 2024
If the economy has any chance of surviving, the political instability must end
T
I
HE first indications that a hung parliament will cause economic tremors in Pakistan have become apparent. An announcement from the IMF made it clear that the board’s staff would not be visiting the country to negotiate a $1.10 billion until a new government was formed. Pakistan is currently party to a ‘Stand-By-Agreement’ that the IMF signed with the PDM government back in June 2023. The SBA worth over $3 billion had been signed after Pakistan and the IMF failed to successfully conclude a programme that had been marred first by the imposition of a petrol subsidy by Imran Khan’s government, and later by the bull-headed negotiation tactics of PDM’s finance minister Ishaq Dar. The SBA had been signed as a sort of bridging agreement that would see Pakistan through its election period so that whoever came to power could then start negotiations anew with the fund. Two tranches of that $3 billion agreement have been made already. But now the fund is insisting that even the third tranche of the SBA will be negotiated by the new government. The problem is Pakistan’s politicians, military establishment, analysts, journalists, and population are as confused as the IMF as to what shape the new government will take. The PTI, which by all accounts has won the election and dealt an embarrassing blow to the PML-N, is handicapped by having their electoral symbol stripped. Despite being the largest force in parliament, they might find it hard to form a government. On the other hand the PML-N and PPP are already in talks to figure out a power sharing formula that works for both of them. Suggestions of split terms and different offices being distributed are the talk of the town. By the looks of things, it might be Shehbaz Sharif taking over the Prime Ministership once again. Will the IMF begin negotiations where they left off? And if so, will PDM 2.0 have the foresight to avoid giving Ishaq Dar another turn blustering about in Q-block? All guesses are equally plausible in this environment. What we do know is that the confidence of the markets is dipping because of the political uncertainty with the PSX behaving bearishly. On top of this, our international lenders are waiting and watching what becomes of this sorry state of affairs. The constitution demands that a leader of the house be elected within three weeks of elections. Will that be enough time for all the wheeling and dealing going on? Already there is plenty of political instability. All parties are claiming victory in this election. Resignations abound and candidates are rejecting their own victories because of what is being called very obvious rigging. What we do know is that there are plenty of economic challenges that await Pakistan. Only a politically stable government with a legitimate mandate can hope to crack them.
Dr Zain ul abiDeen
N the vast and bustling corridors of our hospitals, where the heartbeat of a nation echoes through the diligent efforts of medical professionals, a silent struggle ensues—one that speaks to the very foundation of our healthcare system. The young doctors of Pakistan, the lifeblood of our medical fraternity, find themselves grappling with an issue that strikes at the core of their dedication and service: inadequate compensation. As a Pakistani doctor who has witnessed firsthand the tireless commitment of these young healers, I feel compelled to shed light on a predicament that jeopardizes not only their well-being but also the future of healthcare in our nation. These individuals, fresh out of medical school, brimming with enthusiasm and a fervent desire to alleviate the suffering of their fellow citizens, are facing an uphill battle against financial strains that threaten to stifle their passion and potential. It is disheartening to acknowledge that the very professionals entrusted with preserving the health and vitality of our nation are confronted with economic hardships that diminish their morale. The dedication with which these young doctors navigate the demanding and emotionally taxing environment of hospitals is commendable, yet their financial remuneration does not reflect the gravity of their responsibilities. The disparity between the arduous nature of their work and the meager compensation they receive is alarming. Long, grueling hours, sleepless nights, and constant exposure to the suffering of others constitute the daily routine of these doctors. It is a testament to their unwavering commitment that they endure these challenges with resilience. However, it is disheartening to witness their financial struggles, which extend beyond mere inconveniences and verge on the brink of injustice. In a country where the healthcare sector is grappling with numerous challenges, it is imperative that we recognize the pivotal role played by these young doctors. They are not only the backbone of our healthcare system but also the driving force behind medical advancements and innovations. By undervaluing their contributions through insufficient compensation, we risk jeopardizing the very foundation upon which the health and well-being of our nation rest. The consequences of this predicament are farreaching. As the burden of student loans and living expenses mounts, the dreams of many aspiring doctors are deferred or, worse, abandoned altogether. The shortage of doctors, already a critical issue, is exacerbated by the financial hurdles that dissuade talented individuals from pursuing a career in medicine. It is imperative that we address this issue with urgency and foresight. Fair compensation is not merely a matter of financial justice; it is a strategic investment in the future of our healthcare system. By en-
Dedicated to the legacy of late Hameed Nizami
Arif Nizami (Late)
suring that our young doctors are adequately remunerated, we cultivate an environment that fosters excellence, dedication, and sustained commitment to the well-being of our citizens. As a nation, we must recognize that the health of our people is paramount and that the young doctors who stand on the frontlines of this battle deserve more than just our gratitude. They deserve fair compensation that reflects the magnitude of their sacrifices and the significance of their contributions. It is my fervent hope that we, as a society, can rise to the occasion and rectify this disparity, ensuring that our young doctors are not only valued but also provided with the means to thrive in their noble pursuit of healing. The essence of the issue lies in the incongruity between the monumental responsibilities shouldered by these young doctors and the compensation they receive. Their journey begins with years of rigorous education, laden with sacrifices and financial burdens that often lead to hefty student loans. Upon entering the field, they are met with the harsh reality of a system that undervalues their skills and dedication. The demanding nature of medical education leaves these young doctors with a mountain of debt, and as they transition into the professional realm, the financial challenges persist. The long hours spent in hospitals, attending to patients and honing their skills, are juxtaposed against meager paychecks that fail to reflect the intensity of their commitment. It is not uncommon for these individuals to work multiple jobs or endure financial strain simply to make ends meet. The toll this takes on the mental and emotional well-being of our young doctors cannot be overstated. The burnout rates among medical professionals are on the rise, and the financial stressors only serve to exacerbate this issue. A burnt-out doctor is not only detrimental to their own health but also poses a risk to patient care. The intricate balance between empathy and clinical detachment, so crucial in the medical field, becomes increasingly challenging to maintain
In a country where the healthcare sector is grappling with numerous challenges, it is imperative that we recognize the pivotal role played by these young doctors. They are not only the backbone of our healthcare system but also the driving force behind medical advancements and innovations.
Exaggerated Sponsorship Founding Editor
M. A. Niazi
Babar Nizami
Editor Pakistan Today
Editor Profit
I
A double-edged sword for cricket and other sports in Pakistan rafiq SiDDiqui
N recent years, Pakistan’s sports scene has been cricket-centric, and while cricket holds a special place in the hearts of millions of Pakistanis due to its rich history, exaggerated sponsorships have inadvertently harmed not only cricket but also other sports. Sponsorships are crucial for the sports industry, supporting growth, athletes and events. However, problems arise when sponsorships become overwhelming, overshadowing the essence of the game. Excessive commercialization is evident in Pakistan’s cricket, with the Pakistan Super League (PSL) being a prime example. While it has energized local cricket, it has led to an overreliance on T20 cricket, neglecting traditional formats like first-class and List A cricket. This focus on T20 leagues has hindered the development of local talent and grassroots cricket. Moreover, other sports have been overshadowed by cricket, with sponsorships primarily flowing into cricket, stifling the growth of sports like hockey, squash, and athletics. This also discourages potential athletes from pursuing careers in these disciplines. The solution lies in finding a balance, not eliminating sponsorships. The focus should be on sustainable development, ensuring that various sports receive their fair share of attention and investment. Sponsorships should be distrib-
uted more equitably, promoting a diverse sports culture. Schools and colleges should encourage a range of sports and provide opportunities for young talents. Brand managers, marketing heads, and media investment companies play a vital role in reshaping the sports sponsorship landscape. Diversifying investments beyond cricket will contribute to a more well-rounded sporting culture. By allocating resources to sports like scrabble, hockey, football, women’s football, wrestling, bodybuilding, javelin throw, swimming, and athletics, brands and media investment companies can nurture athletes and the growth of these disciplines. A well-balanced media mix, including promotion, coverage, and sponsorships, can gradually create opportuni-
ties for athletes beyond cricket. In doing so, stakeholders not only diversify their portfolios but also play a crucial role in nurturing a diverse and thriving sports ecosystem in Pakistan. It’s time to look beyond cricket’s boundaries and support the dreams and aspirations of athletes across the nation. In conclusion, exaggerated sponsorships have boosted cricket in Pakistan but have hindered the overall sports ecosystem. It’s crucial to distribute sponsorships more evenly, fostering a holistic sporting culture where cricket and other sports can coexist and thrive. Achieving this equilibrium will allow Pakistan to harness its potential as a sporting nation. The author is a marketing professional.
In conclusion, exaggerated sponsorships have boosted cricket in Pakistan but have hindered the overall sports ecosystem. ItÊs crucial to distribute sponsorships more evenly, fostering a holistic sporting culture where cricket and other sports can coexist and thrive. Achieving this equilibrium will allow Pakistan to harness its potential as a sporting nation.
Lahore – Ph: 042-36300938, 042-36375965
I
Karachi – Ph: 021-32640318 I
Islamabad – Ph: 051-2204545
I
under the weight of financial pressures. Moreover, the inadequate compensation perpetuates a cycle of discontent and disillusionment within the medical community. The dreams that once fueled the pursuit of medicine begin to wane as the stark reality of financial instability overshadows the noble intentions that led these individuals to choose this challenging profession. Many talented individuals are dissuaded from pursuing medicine altogether, further exacerbating the existing shortage of healthcare professionals. In addition to the individual struggles faced by young doctors, the systemic consequences of this issue are profound. A healthcare system is only as robust as the professionals who comprise it. By neglecting the financial well-being of our young doctors, we compromise the quality of healthcare provided to our citizens. The repercussions extend beyond the walls of hospitals and clinics, permeating into the fabric of our society. Addressing this issue requires a comprehensive and collaborative effort. The government, healthcare institutions, and society at large must recognize the urgency of the situation and work together to implement tangible solutions. It is incumbent upon policymakers to revisit and reform the compensation structures for medical professionals, ensuring that they reflect the significance of their contributions to society. Furthermore, healthcare institutions must prioritize the well-being of their staff and acknowledge the integral role played by young doctors. Adequate compensation is not just a matter of financial reward; it is a recognition of the sacrifices made by these individuals in the pursuit of a healthier and more resilient society. By investing in the financial stability and professional development of young doctors, we invest in the future of healthcare in Pakistan. As a society, we must also shift our perception of the medical profession. The stereotype of doctors as inherently wealthy individuals must be dismantled, and the reality of their financial struggles brought to the forefront of public consciousness. This shift in perception can pave the way for a collective understanding of the challenges faced by young doctors and garner support for the necessary changes. In conclusion, the struggle of young doctors in Pakistan is not just a personal plight; it is a reflection of the systemic issues plaguing our healthcare system. The disparity between the demanding nature of their work and the insufficient compensation they receive is a call to action for all stakeholders involved. The health of our nation is intricately tied to the wellbeing of those who dedicate their lives to preserving it. It is time for a concerted effort to rectify this imbalance and ensure that our young doctors are not only adequately compensated but also empowered to fulfill their noble calling without the shadow of financial instability looming overhead. The time for change is now, and the health and future of our nation depend on it. The writer is a medical professional.
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
Fueling hope
THE Government Girls Degree College in Turbat has only four buses for students’ daily commute. But that is not the actual tragedy. The real tragedy is that none of those four buses can be used because there is not enough fund to arrange fuel to keep the buses running. Therefore, students face immense difficulties during their commute to the institution and then the commute back home. Numerous appeals have been made to the office of the principal, but to no avail. This persistent problem affects students’ academic journey and bars them from attending their classes regularly. The relevant authorities should promptly take action to address this matter, which will certainly revive optimism and enthusiasm among students. JALASHK BALACH DASHT
Indian narrative
MOST Indian filmmakers these days are doing their best to carry forward the larger national narrative against Pakistan, while the mainstream media in Pakistan continues to project India as an emerging power that may displace China from its position in the global hierarchy. The fact, however, is quite the opposite. The gross domestic product (GDP) of China is $17,786 billion compared to India’s $3,730 billion. India is really light years behind China in all spheres of progress. AMJAD MIRZA RAWALPINDI
Solar synergy
I am writing to advocate for a noble initiative that could significantly benefit our communities — urging solar panel companies to reconsider their allocation of funds and installing free solar panels in government-run schools and hospitals. Solar energy has emerged as a crucial and sustainable solution for energy needs. Yet, many essential institutions, such as schools and hospitals, face financial barriers preventing them from adopting this environmentally friendly technology. Redirecting marketing budgets towards supporting these institutions with free solar panels presents an opportunity for solar companies to demonstrate their commitment to corporate social responsibility and make a tangible impact on society instead of investing in outdoor marketing. Conventional energy costs are escalating, burdening the operational expenses of schools and hospitals, particularly those serving underprivileged communities. By alleviating the financial strain associated with electricity bills, these institutions could redirect resources towards enhancing educational facilities and improving healthcare services for those who rely on them the most. Additionally, transitioning government establishments to solar energy aligns with broader environmental goals, aiding in reducing carbon footprints and dependence on non-renewable energy sources. This shift not only benefits these institutions but also contributes to our collective efforts in tackling climate change. I implore solar panel companies to consider this proposal earnestly. Investing in free solar panels for schools and hospitals is not just an act of goodwill; it represents an investment in the well-being of our communities. By leveraging their resources for the greater good, these companies can foster positive change that extends beyond commercial interests. Let us encourage and support solar panel companies in channelling their expertise and resources towards initiatives that uplift and benefit society at large. This endeavour holds the promise of a brighter and more sustainable future for everyone. Thank you for considering the importance of this matter. I hope this plea resonates within our community, prompting positive action and support from corporate entities. MOBASHIR SANDILA KARACHI
Web: www.pakistantoday.com.pk
I
Email: editorial@pakistantoday.com.pk
COMMENT 05
The art of indexing Tuesday, 13 February, 2024
T
Mahnoor LaLI
“Baaz logon ke bohat ajeeb-o-ghareeb kisam k achay buray shouq hotay hain, yeh bhi humain abhi tak tou shouq he para hua hai” (“Some people have very strange, all kinds of good or bad passions. This too, for now, is a passion of mine.”)
HESE are the words of Muhammad Shahid Hanif – a prolific indexer and cataloguer of Urdu periodicals – describing the behind this motivation underappreciated and often overlooked yet invaluable work. What exactly does he do? Imagine being a researcher in Pakistan and trying to access relevant material for your project. The public libraries are severely underfunded, the catalogs are incomplete, and the staff is primarily focused on ensuring that visitors either leave the reading room or to tell them that the required material is missing from the shelves. Those who mostly visit the public libraries is also for mainly to prepare for civil services exams or tests for admissions abroad. There is no research culture or a repository that you can turn to for planning and conducting an effective and rigorous project. But there are individuals who are doing the work of what research institutions should be doing. Muhammad Shahif Hanif is one such person. Over the last two decades, Hanif has worked meticulously to manually browse through hundreds of Urdu literary and journals, turned thousands of their pages, and made elaborate notes about their themes. He has collated this information to put together multiple indices of various Urdu journals. Consider the latest 20volume index of more than 50 Urdu journals that Hanif has recently published. You are an MPhil student who wants to work on the sufi heritage of Lahore. You can browse through this index which has been catalogued along author names and themes, narrow down your research to the peculiar Sufi shrine you are interested in, and then find dozens of articles published on it over the last 100 years. All of this has been digitized, which makes the index searchable and easier to locate the relevant article as well. Hanif’s
work, in this way, has revolutionized the research culture in local languages, and is equally important for even researchers from top universities abroad who routinely use his works for their research projects. Born in Mianwali in 1975 and raised in Lahore, Hanif did not come from a family of academics. Largely self-taught, it took Hanif years to first finish a private BA and subsequently complete an MA in Library Science from Allama Iqbal University Lahore. He was the first in his family to complete a masters and venture into the world of research. As a youth, his passion for reading and learning led him to build a small library in his house. For his collection, Hanif procured a complete set of a digest, Mahanama Hikyat, which had been publishing for 35 years at that time. However, Hanif soon realized how difficult it was to search for a particular essay in the collection, or look for the publications of a particular author or find essays based on a particular theme. He then took it upon himself to prepare a comprehensive index for it. And hence began Hanif’s journey into the quiet and tedious realm of literary preservation. His journey took an institutional turn when, over two decades ago, he joined the Islamic Research Council (IRC) in Model Town, Lahore. Here, Hanif’s mission expanded beyond personal projects to academic and religious journals/magazines he was commissioned to work on. These publications, though integral to Urdu literature, lacked complete files in any institution or library. Hanif, along with
Born in Mianwali in 1975 and raised in Lahore, Hanif did not come from a family of academics. Largely self-taught, it took Hanif years to first finish a private BA and subsequently complete an MA in Library Science from Allama Iqbal University Lahore. He was the first in his family to complete a masters and venture into the world of research.
New report measures attempts to impose, and evade, internet repression
T
fellow researchers at IRC, was successful in gathering more than one hundred literary magazines and has prepared indexes and contents for about one hundred of those over the years. Working under the supervision of mentors like Professor Saleem Mansoor Khalid, Dr. Hafiz Abdur Rehman Madni, and Dr. Hafiz Hasan Madni, Hanif’s passion grew and he further mastered the art of indexing. Urdu periodicals – repositories of cultural and historical snapshots – which are overlooked and underappreciated in mainstream academia, became Hanif’s focus. These periodicals offer a unique window into the past; they illustrate the social, political, and economic conditions specific to a particular time and people. Despite the wealth of information they contain, Hanif regrettably acknowledges, there exists no proper institution or library dedicated to their preservation. Hanif notes that while books remain in print for years, periodicals are published only once and run the risk of being completely lost if not collected and preserved. Maintaining a modest job at the Iqbal Academy Pakistan for the last eighteen years, Hanif has found a community of fellow researchers across Pakistan and continues to work both personally and on projects commissioned by individuals/institutions for preservation of such invaluable collections. He leads a team of eight individuals, half of them women, who share his passion. From gathering and safekeeping magazines to scanning, preparing contents, indexing, and digitizing, they do it all. The team’s
REASON
J.D. TUCCILLE
HIS week, government officials in both Pakistan and Senegal cut public access to the internet in moves clearly meant to crack down on political debate. Pakistan severed connections to limit information coinciding with a general election of questionable credibility while Senegal’s action occurred after the government postponed a presidential vote to the end of the year. The restrictions come amidst global concern about increasing online censorship and surveillance. “Global internet freedom declined for the 13th consecutive year,” Allie Funk, Adrian Shahbaz, and Kian Vesteinsson of Freedom House noted in last year’s Freedom on the Net 2023 report. “Ahead of and during electoral periods, many incumbent leaders criminalized broad categories of speech, blocked access to independent news sites, and imposed other controls over the flow of information to sway balloting in their favor,” they added. Controlling access to information regarding electoral politics is precisely what happened in both the recent incidents in countries where authorities are barely going through the motions of democracy. “Polls have closed in Pakistan after the authorities suspended mobile calls and data while millions voted for a new government in a controversial election,” report Yvette Tan, Caroline Davies, and Simon Fraser for the BBC. They noted that the prime minister, Nawaz Sharif, seeks approval for another term in office while the party of his predecessor, Imran Khan, who was jailed last year for corruption, called the internet cut a “cowardly act.” Meanwhile, “Senegal’s internet service was restored Wednesday, days after the government suspended it following the postponement of this month’s presidential election” and subsequent unrest, according to Deutsche Welle. “The government’s abrupt shutdown of internet access via mobile data and Walf TV’s broadcasting, along with the revocation of its license, constitutes a blatant assault on the right to freedom of expression and press rights,” commented Samira Daoud of Amnesty International. Senegal, notably, appears on a list compiled by Techopedia of places where internet searches on virtual private networks (VPNs), which mask users’ identities and provide a measure of anonymity, are soaring. MEASURING ONLINE REPRESSION AND RESISTANCE: “In the Western world, many people use VPNs for recreational reasons – whether that’s unlocking geo-restricted content while traveling (a motivating factor for 26% of users), or reducing the effects of throttling to enjoy faster internet speeds,” notes author Rob Binns. “In other countries, however, VPNs aren’t a matter of enjoyment or entertainment: they’re a matter of life and death. In these jurisdictions, the internet freedoms the Western world takes for granted are curtailed or non-existent.” Based on Google Trend data, nine of the 10
places where “VPN” is most searched have lousy records for respecting individual rights (the exception is St. Helena, a British territory). The countries are: Turkmenistan, Ethiopia, Iran, Myanmar, China, Syria, Afghanistan, St. Helena, Senegal, and Uganda. “Senegal saw the biggest increase in VPN demand in 2023, with a spike of more than a staggering 60,000%,” notes the report. Pakistan does not appear in the report among the top ten. But Techopedia told me the country comes in at number 12, after Cuba. That’s some awful company. While not all the Techopedia entries were included in Freedom House’s report, China, Cuba, Ethiopia, Iran, Myanmar, and Pakistan all rank as “not free” (China comes in dead last, followed by Myanmar) while Uganda is ranked as a marginally better “partly free.” St. Helena, while sharing the U.K.’s “free” status, has a single legalmonopoly ISP, Techopedia notes. The report speculates that VPNs are popular there for maintaining anonymity while accessing technically-illegal competitors, such as Starlink, and to evade rumored surveillance by the island’s government. “What all the countries in our top 10 have in common is this: they’ve all incited their populations to turn to VPNs as an important – sometimes the only – way to circumvent informational restrictions,” concludes Techopedia of the interest in privacy-protecting tech in so many authoritarian countries. If Techopedia is correct that interest in VPNs is evidence both of extensive digital repression and of popular efforts to evade such control, it’s apparent that old-fashioned censorship remains a huge concern for internet users. As Freedom House cautioned in its earlier report: “In a record 55 of the 70 countries covered by Freedom on the Net, people faced legal repercussions for expressing themselves online, while people were physically assaulted or killed for their online commentary in 41 countries.” That means that traditional threats to freedom of expression and to information access—and the dangers of challenging those threats—remain pressing for much of the world’s population living under authoritarian regimes in what are all-too-often increasingly repressive countries. Multiple measures of human freedom have been found backsliding in recent years when it comes to individual liberty. “Overall the story is one of stagnation, with the global average score remaining essentially unchanged,” the Economist Intelligence Unit’s Democracy Index 2022 mourned last year. “This is a dismal result given that in 2022 the world started to move on from the pandemic-related suppression of individual liberties that persisted through 2020 and 2021.” TECHNOLOGICAL THREATS—AND COUNTERMEASURES: This comes as Freedom House warns that high-tech innovations may ease the work of repressive regimes, allowing them to replace armies of snoops and trolls with artificial intelligence. “AI has allowed governments to enhance and refine their online censorship,” observes Freedom on the Net 2023. “Legal frameworks in at least 21 countries mandate or incentivize digital platforms to deploy machine learning to remove disfavored political, social, and religious speech.” Of course, VPNs are a technological innovation crafted to thwart surveillance and restrictions. AIdriven surveillance and censorship may well drive the creation of new technologies intended to shield people’s identities and protect individual freedom. At least, we should hope that tools crafted to protect liberty keep up with the tools of repression. It’s a technological arms race those of us who value freedom can’t afford to lose.
dedication is evident in their commitment to this passion project while working separate main jobs. Together, they navigate the complexities of magazine indexing, a task that extends beyond mere categorization. Due to his training and job in the IT sector for several years, technology played a pivotal role in Hanif’s evolution as an indexer. From the initial days of pen and paper, he swiftly transitioned to the efficiency of computers—using Excel to categorize essays and streamline the indexing process. Hanif has also brought these values and skills to his team. The team employs three different ways of categorization: chronological order, author-based, and theme-wise indexing for each magazine/journal. What used to take hours on paper now merely takes minutes on a computer, ushering in an era of efficiency and collaboration. Technology has also allowed them to reach across the border to fellow researchers and indexers in India. They are able to have their Indian colleagues scan and send over copies of periodicals not available in Pakistan. While technology has aided some parts of Hanif’s work, the complete process of collecting, reading, analyzing, indexing, proof-reading, cataloging, scanning and digitizing the magazines remains extremely laborious and tedious. While he has garnered some recognition for his work over the years, Hanif candidly admits that it has been in no way equivalent to the effort it takes. There are also no significant monetary gains. Hanif’s work thus remains a labour of love—his passion for the
obscure craft of indexing extending beyond materialistic concerns. Despite all the challenges and limitations in this field, Hanif is adamant on continuing this work. Hanif envisions a future where educational institutions collaborate with the government to create a proper mechanism for cataloging these invaluable Urdu periodicals. This would not only streamline the entire process but also bring recognition and financial stability for anyone working in the field. After working on projects such as preparing an encyclopedia of indexes for BA, MA, MPhil, and Post-doctoral Urdu theses from eighty-five Pakistani universities – published by the University of Lahore in twenty volumes and soon to be available online – Hanif is hopeful about the future of indexing and academic collaborations. He also hopes that his three daughters will follow in his footsteps into the world of academia and research, with the eldest already working with him. Muhammad Shahid Hanif, characterized by his modest family-man persona, thus emerges as an unsung hero in the realm of literary preservation. His endeavors have allowed researchers and academics access to obscure Urdu journals, magazines and newspapers that would have otherwise been impossible to find or navigate. Hanif’s dedication to indexing Urdu magazines and periodicals – despite the lack of recognition or institutional support – paints a portrait of a man driven by an unyielding passion for preserving and making Urdu literature widely accessible.
How US mainstream media incites hate of Arabs and Muslims
T
MIDDLE EAST EYE GrEGory ShUpak
HE last week has provided an object lesson in how propaganda functions. Three forms of misleading, pro-war coverage of the unfolding USIsraeli wars across the Middle East stand out. These concern US news outlets such as CNN, which says it reaches 80 million American households, and two of the country’s most widely circulated newspapers, The New York Times and The Wall Street Journal. Palestine is the fulcrum of the US-Israeli wars in Yemen, Syria, Iraq, and Lebanon. A Guardian report this week from Chris McGreal reveals that CNN has systematically distorted its coverage of Palestine-Israel since 7 October when the war in Gaza broke out. The article is based on accounts from six CNN staffers in several newsrooms and over a dozen internal memos and emails that The Guardian obtained. The picture emerging from the piece is of the outlet’s top brass seeking to exert maximum control over reporters to shape coverage so that it aligns with network leadership’s political preferences. For example, McGreal reports that CNN limits the space given to Palestinian points of view while routinely allowing Israeli officials’ claims to be aired unchallenged. That tendency led, for instance, the network to present the false story that Hamas beheaded 40 Israeli babies and toddlers as though it were true. The story remained live even after the Biden administration acknowledged that the president had not, as he previously claimed, seen non-existent proof of the decapitations. Moreover, CNN’s Palestine coverage has to be approved by its Jerusalem bureau, which CNN staffers say skews reporting in Israel’s favour. People working at CNN note that, especially in the early phases of the Israeli onslaught, CNN’s policies resulted in “a greater focus on Israeli suffering and the Israeli narrative of the war as a hunt for Hamas and its tunnels, and an insufficient focus on the scale of Palestinian civilian deaths and destruction in Gaza.” Likewise, my analysis of CNN’s coverage of Israel’s war on Gaza reveals a dearth of stories that contextualise the events of 7 October or focus on Palestinian suffering, both historic and ongoing. This has continued despite the massive civilian casualties suffered on the Palestinian side and the humanitarian catastrophe taking place in Gaza. That Israel has long colonised and oppressed Palestinians and is waging a war of annihilation against all aspects of Palestinian life is relevant information that CNN has omitted from the vast majority of its reports. Given the widespread failure of American news outlets to cover Palestine accurately, one suspects that a process similar to the one prevailing at CNN is operating at other news organisations. DEHUMANISING THE ADVERSARY: “Understanding the Middle East Through the Animal Kingdom” is the latest dispatch from New York Times columnist Thomas Friedman. The piece rests on the Orientalist conceit that the region is a “jungle” populated by beasts rather than people. “The US is like an old lion”, the author declares. “We are still the king of the Middle East.” Quite the complement for the Americans: lions are noble, brave, beautiful creatures. In contrast, according to Friedman, Iranians and their allies are parasitic bugs: “Iran is to geopolitics what a recently discovered species of parasitoid wasp is to nature.
The writer is a freelance columnist
What does this parasitoid wasp do? According to Science Daily, the wasp ‘injects its eggs into live caterpillars, and the baby wasp larvae slowly eat the caterpillar from the inside out, bursting out once they have eaten their fill.’ Is there a better description of Lebanon, Yemen, Syria and Iraq today? They are the caterpillars. The Islamic Revolutionary Guard Corps is the wasp. The Houthis, Hezbollah, Hamas and Kataib Hezbollah are the eggs that hatch inside the host - Lebanon, Yemen, Syria and Iraq - and eat it from the inside out. We have no counterstrategy that safely and efficiently kills the wasp without setting fire to the whole jungle. Hamas is like the trap-door spider.” This is exterminationist rhetoric - who, after all, does one call upon discovering a bug infestation? That the Times would publish an article that expressly longs for Iran to be “safely and efficiently kill[ed]” lays bare the paper’s ethical bankruptcy. Netanyahu, for his part, gets compared to a lemur - whether that’s a flattering analogy is debatable, but it beats being called a parasitic insect. Setting aside that there are, of course, “better description(s)” of Lebanon, Yemen, Syria and Iraq today than “caterpillars” (how stunning it is to have to write such a sentence!) - “rich, diverse societies” comes to mind - let’s pretend for a moment that Friedman deserves to be taken seriously (which he doesn’t). To claim that these nations, or Palestine, are being “eat[en]” from the inside out by Iranian “larvae” is to deploy a racist metaphor that papers over the American lion’s leading role in unleashing devastation on the civilian populations of Palestine, Lebanon, Yemen, Syria, Iraq, and Iran in very recent history. That groups like Ansar Allah (“the Houthis”), Hezbollah, and Hamas have large, organic, popular bases among the populations in which they exist is a further problem for Friedman’s entomology. INCITING HATE: Last week, Steven Stalinsky took to the pages of The Wall Street Journal to launch an Islamophobic rant against Dearborn, Michigan’s Muslim population. His evidence of this alleged menace includes, in his paragraph, images of “Protesters, many with kaffiyehs covering their faces, shout “Intifada, intifada”, “From the river to the sea, Palestine will be free”, and “America is a terrorist state”. The author offers no rationale as to why readers should regard it as malevolent and frightening that Dearborn residents wear a symbol of solidarity with the Palestinian struggle against Israel, call for an end to settler colonialism between the Jordan and the Mediterranean, and denounce the US government’s extensive history of mass violence against civilians. He unleashes the dual loyalty trope, invoking “Local enthusiasm for jihad against Israel and the West” and an area imam who Stalinsky says has “essentially declar[ed] allegiance to the Iranian ayatollah who regularly calls for the destruction of the US”. Stalinsky informs his readers that “Many current or one-time Dearborn residents have been convicted of terrorrelated crimes in recent years.” The snitch-piece concludes that “What’s happening in Dearborn isn’t simply a political problem for Democrats. It’s potentially a national security issue affecting all Americans. Counterterrorism agencies at all levels should pay close attention.” These remarks suggest that, for Stalinsky, American Muslims are dangerous and ought to be surveilled and harassed by US law enforcement, never mind its long record of targeting Muslims. Framing Muslims as a fifth column helps create a climate for war. Fostering fear and hatred of a domestic minority nurtures fear, xenophobia, and deference to state authorities, all of which are useful to getting a critical mass of the population to go along with their government’s militarism. What all of this bigoted, war-mongering propagandising illustrates is that it’s more necessary than ever to turn to and support independent media. Gregory Shupak teaches English and Media Studies at the University of Guelph-Humber in Toronto. He is the author of the book, The Wrong Story: Palestine, Israel, and the Media.
06 NEWS
Tuesday, 13 February, 2024 | ISLAMABAD
SaudI arabIa cIteS eNergy traNSItIoN for oIl capacIty u-turN SAUDI ARABIA HAS SAID IT AIMS TO REACH NET ZERO EMISSIONS BY 2060, WITH ARAMCO TARGETING NET ZERO EMISSIONS FROM ITS OWN OPERATIONS BY 2050
S g
PROFIT
REUTERS
AUDI Arabia’s U-turn on its oil capacity expansion plans was because of the energy transition, its energy minister said on Monday, adding that the kingdom has plenty of spare capacity to cushion the oil market. The Saudi government on Jan. 30 ordered state oil company Aramco (2222.SE) to halt its oil expansion plan and target maximum sustained production capacity of 12 million barrels per day (bpd), 1 million bpd below a target announced in 2020 and set to be reached in 2027. “I think we postponed this investment simply because … we’re transitioning,” Prince Abdulaziz bin Salman said at the IPTC petroleum technology conference in Dharan, adding that Aramco has other investments to make in areas including oil, gas, petrochemicals and renewables. Saudi Arabia has said it aims to reach net zero emissions by 2060, with Aramco targeting net zero emissions from its own operations by 2050. Prince Abdulaziz said that the king-
dom had a “huge cushion” of spare oil capacity in case of major disruptions to global supplies caused by conflict or natural disasters. Aramco Chief Executive Amin Nasser told reporters on the sidelines of the same conference that the state oil giant remained ready to raise capacity should it be needed. “We have adequate spare capacity of about 3 million barrels,” Nasser said.
“And as a company – because this is a decision for the government – we remain ready whenever they want to increase MSC (maximum sustained capacity); we are always ready to expand.” Under cuts agreed by the Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, Saudi oil production is about 3 million bpd below its 12 million bpd maximum sustainable capacity,
making it the world’s biggest holder of spare capacity. “We are ready to tweak upward, downward, whatever the market necessity dictates,” Prince Abdulaziz said. He criticised a decision coordinated by the International Energy Agency in 2022 to release oil from emergency reserves to cool global prices after Russia’s invasion of Ukraine. “Why should we be the last country to hold energy capacity, or emergency capacity, when it is unappreciated and when it is not recognised?” Nasser said he expected oil demand to increase to 104 million bpd this year and to 105 million bpd in 2025, downplaying suggestions that it will peak soon. OPEC figures show oil demand reached a record of more than 102 million bpd last year. When asked about a further offering of Aramco shares this year, Nasser said it would be a “shareholder decision”. The Saudi state remains overwhelmingly Aramco’s biggest shareholder and heavily relies on its dividend payouts. The government directly holds 90.19%, the kingdom’s Public Investment Fund (PIF) 4% and PIF subsidiary Sanabil 4%, LSEG data shows.
Two years into Russia-Ukraine war, negotiations remain a distant dream MOSCOW
AGENCIES
Qatar frees eight Indian spies months after dropping death sentences NEW DELHI
AGENCIES
Qatar has released eight Indian ex-naval officers after dropping their death sentences, India’s foreign ministry said on Monday, crediting the Qatari emir for the decision more than 18 months after their arrest challenged diplomatic ties. The men were charged with spying for Israel, according to sources, though India and Qatar did not confirm the charges. Their death sentence, handed down in October, was dropped in December. India said seven of these officers have returned back to the country. New Delhi engaged in talks for months with Qatar after the men were arrested in August 2022 and the case challenged ties with Doha, a crucial natural gas supplier to India, one of the world’s top energy importers. “We appreciate the decision by the Amir of the State of Qatar to enable the release and home-coming of these nationals,” the ministry said. The men were working on a submarine project with a private company for the Qatari authorities at the time of their arrest. The announcement came days after Qatari and Indian firms signed their biggest single deal for supplies of liquefied natural gas and after Modi met Qatar’s emir Sheikh Tamim bin Hamad Al Thani on the sidelines of the COP28 climate summit in Dubai in December and discussed the “well-being of the Indian community in Qatar”. More than 800,000 Indian citizens live and work in Qatar.
After two years of war in Ukraine, there is no prospect of negotiations to find a breakthrough as Russian President Vladimir Putin, emboldened by the erosion of Western support for Kyiv, girds for a long conflict. 2024 will be another year of war as Ukraine is determined to keep on fighting to recapture territory while Putin will only be satisfied with Kyiv’s full surrender, analysts and diplomats say. Putin may have signalled in last week’s interview with rightwing US talk show host Tucker Carlson that Russia was interested in negotiations but this would be so much on Moscow’s own terms that Kyiv would not countenance such talks. “I don’t see any negotiations taking place any time soon,” Fyodor Lukyanov, head of the Kremlin-linked Council on Foreign and Defense Policy think tank in Moscow, told. “There’s nothing they can negotiate about.” While the winter of 2022 was
humiliating for Putin, who failed to take Kyiv within days, he has now regrouped and appears reinvigorated by Ukraine’s unsuccessful counteroffensive, the prospect of Donald Trump returning to the White House in a November presidential election and the rise of the far-right in Europe. “Wouldn’t it be better to negotiate with Russia?” Putin told Carlson, urging the United States to discuss a deal that would allow Moscow to
control 20 percent of Ukraine’s territory. “Sooner or later we’ll come to an agreement anyway.” Mykhailo Podoliak, an adviser to Ukrainian President Volodymyr Zelensky, reiterated Kyiv’s longheld position that no negotiations were possible until Russia withdraws from occupied territories. A European diplomat, speaking on condition of anonymity, also ruled out any talks under the current circumstances.
North Korea tests new rocket launcher control system PYONGYANG AGENCIES
North Korea said on Monday it had developed a new control system for a multiple rocket launcher that would lead to a “qualitative change” in its defence capabilities. Pyongyang’s Academy of Defense Science successfully carried out a “ballistic control test firing of 240-mm caliber multiple rocket launcher shells” on Saturday to develop a “controllable shell and ballistic control system” for the launcher, state news agency KCNA reported. The new rocket launcher would now be “reevaluated” and its battlefield role “increased”, KCNA said. Nuclear-armed North Korea this year declared South Korea as its “principal enemy”, closing agencies dedicated to reunification and outreach, and threatening war over “even 0.001 millimetres” of territorial infringement. Leader Kim Jong Un repeated on Friday that Pyongyang would not hesitate to “put an end” to South Korea if attacked, calling Seoul the North’s “most dangerous and first enemy state and invariable arch-enemy”. In January, North Korea fired an artillery barrage near two South Korean border islands, prompting a live-fire drill by the South and evacuation orders for residents. Kim has also ramped up weapons testing, including this year’s launch of a flurry of cruise missiles, which analysts said the North could be supplying to Russia for use in Ukraine. South Korean President Yoon Suk Yeol has vowed a strong response if Pyongyang attacks, calling on his military to “act first, report later” if provoked.
US Senate advances Ukraine aid bill despite Trump opposition WASHINGTON AGENCIES
A narrowly divided U.S. Senate moved closer to passing a $95.34 billion aid package for Ukraine, Israel and Taiwan on showing undiminished bipartisanship despite opposition from Republican hardliners and Donald Trump. The Democratic-led Senate voted 6727 in a rare Sunday session to clear the latest procedural hurdle and moved the foreign aid measure toward an ultimate vote on passage in the coming days. The money is viewed as crucial by Kyiv, as it grinds toward the second anniversary of Russia s invasion of Ukraine. But Senate passage would send the bill on to the Republican-controlled House of Representatives, where it faces
an uncertain future. Eighteen Republicans backed the legislation after Trump, the dominant Republican White House candidate, criticized the bill on social media by saying that the foreign aid should take the form of a loan. Trump also sparked exasperation at home and abroad by saying he would encourage aggression against NATO allies who do not pay their dues to the alliance. Ahead of Sunday’s vote, Senate Republican leader Mitch McConnell chided those who he said would disregard US global interests, bemoan American leadership and lament international commitments. “This is idle work for idle minds, and it has no place in the United States Senate,” McConnell said. “American leader-
ship matters. And it is in question.” Democratic President Joe Biden, who has been seeking the aid for months, on Friday said Congress would be guilty of “neglect” if it failed to pass the measure. The next Senate action is expected on Monday sometime after 8 pm EST (0100 GMT), when lawmakers are due to hold two procedural votes: one to adopt the foreign aid package as an amendment to an underlying House bill; and a second to limit debate ahead of a final vote on passage, which could come on Wednesday, according to aides. The legislation includes $61 billion for Ukraine, $14 billion for Israel in its war against Hamas and $4.83 billion to support partners in the Indo-Pacific, including Taiwan, and deter aggression
by China. It also would provide $9.15 billion in humanitarian assistance to civilians in Gaza and the West Bank, Ukraine and other conflict zones around the globe. House Speaker Mike Johnson, who has a slim 219-212 Republican majority, has indicated that he could try to split the aid provisions into separate measures once the bill arrives from the Senate. But a standalone aid bill for Israel fell victim in the House last week to opposition from Democrats who favor the broader Senate legislation and from hardline Republicans who wanted compensating spending cuts, in a pair of humiliating defeats for Johnson. During a visit to Kyiv on Friday, a bipartisan delegation of House lawmakers vowed to do their part to pass the measure.
China Coast Guard expels Philippine vessel for intruding into South China Sea waters BEIJING
STAFF CORRESPONDENT
PID (I) 4787/23
The China Coast Guard (CCG) announced on Sunday that it had expelled a Philippine Coast Guard vessel that illegally intruded into waters adjacent to Huangyan Island in the South China Sea multiple times from February 2 to 9, noting that China’s responses were professional and reiterating its firm resolve to safeguard China’s national sovereignty. Experts said that the Philippines’ deliberate provocations around the Chinese Lunar New Year are intentional, and the move would not bring any benefit but will further erode mutual trust, disrupt the political atmosphere, and even affect the perception of Chinese people toward the Philippines. Gan Yu, spokesperson for the CCG said Philippine Coast Guard vessel 9701 illegally intruded into the waters adjacent to Huangyan Island multiple times from February 2 to 9, despite warning calls from the CCG. The CCG took measures to control the course of the Philippine vessel and forcefully drove it away, handling the situation in a professional manner and in according with norms. China has indisputable sovereignty over Huangyan Island and its adjacent waters. The CCG will as always carry out law enforcement activities in waters under China’s jurisdiction and resolutely safeguard China’s national sovereignty and maritime rights and interests, Gan said. Ding Duo, deputy director of the Institute of Maritime Law and Policy at the China Institute for South China Sea Studies, told the Global Times that the move showed the Philippines.
Tuesday, 13 February, 2024 | ISLAMABAD
CORPORATE CORNER Faysal Bank supports 9th Special Olympics Pakistan Unified Marathon 2024
KARACHI: Promoting its mission of inclusivity, Faysal Bank Limited, one of the leading Islamic banks in Pakistan, was the platinum sponsor for the 9th Special Olympics Pakistan (SOP) Unified Marathon 2024. The Bank has been the lead sponsor of this event for the last five years and keeping up with its commitment to promote an equal and just social system, strives to instill tolerance and acceptance of differently abled people within the society.Identified as one of the big-scale social initiatives in Karachi, the event is held every year in advocacy of inclusivity and empowerment and promoting awareness around the need to encourage and understand the importance of equal participation of people with special needs. Held at Emaar Pakistan the event was inaugurated by Yousaf Hussain, President & CEO, Faysal Bank Limited, hosting 2,000 participants from all walks of life, including more than 300 differently-abled persons.Speaking at the event, Mr. Hussain said, “Health, diversity and social inclusion are at the heart of our Islamic values and today we are honoured to contribute to the promotion of a healthier lifestyle among our people and to create an inclusive environment that uplifts everyone regardless of their race, religion, gender or any other element.” PR
Mirza Ikhtiar Baig Wins NA – 241
KARACHI: Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has congratulated Dr. Mirza Ikhtiar Baig on winning his national assembly seat of NA – 241; and, pinned his hopes in his leadership skills to facilitate business, industry and trade community of Pakistan through advocating for enabling, conducive business and economic policies from the august platform of National Assembly of Pakistan. Mr. Atif Ikram Sheikh added that Dr. Mirza Ikhtiar Baig is not only a highly-respected former Senior Vice President of FPCCI; but, also a seasoned and accomplished governance leader as he has previously served as Advisor to the Prime Minister of Pakistan on Textiles. Furthermore, he has been active in social, philanthropic, economic and political circles for the past many decades. Mr. Atif Ikram Sheikh proposed that the new government should capitalize on his expertise and network in export markets and diplomatic circles. It is a testimony of his diplomatic credentials that he is an Honorary Consul General of Yemen in Pakistan. PR
Dun & Bradstreet Pakistan and Gallup Pakistan launch 14th edition of ‘Pakistan Consumer Confidence Index'
Dun & Bradstreet Pakistan and Gallup Pakistan have recently launched the fourteenth edition of the ‘Pakistan Consumer Confidence Index (CCI) Q2 2023-24’. This publication systematically evaluates consumers’ confidence in the economy and their personal financial situation from July 2023 to September 2023. The CCI report gauges sentiments across four critical parameters i.e. Household Financial Situation, Country’s Economic Situation, Unemployment Situation, and Household Savings. The index provides insights into both 'Current Sentiments’, reflecting economic changes experienced in the last six months, and 'Future Expectations’, anticipating changes for the next six months. It offers a comprehensive view of consumers' perspectives across the country, making it a valuable tool for understanding the economic landscape and how it can be expected to unfold. Mr. Niran Rehman, Chief Business Officer of Dun & Bradstreet Pakistan stated, “I find the Consumer Confidence Index (CCI) report to be a crucial tool for various stakeholders, including Policy Makers, Development Financial Institutions, and businesses across sectors. The insights gathered from this report will not only aid in understanding the current economic landscape but also provide valuable foresight into consumer sentiments. It is particularly relevant for industries directly impacted by consumer behavior. D&B Pakistan remains committed to providing insightful data that contributes to informed decision-making in these evolving economic times in Pakistan.” PR
SBP REVOKES LICENSE OF PBS EXCHANGE COMPANY NEWS
T g
COMPANY IS NO LONGER PERMITTED TO CONDUCT ANY FOREIGN EXCHANGE BUSINESS ACTIVITIES PROFIT
NEWS DESK
HE State Bank of Pakistan (SBP) on Monday revoked the authorisation/license of M/s PBS Exchange Company (Pvt.) Limited due to noncompliance with relevant laws and regulations. As a result of this action, the company, including its head office and all branches, is no longer permitted to conduct any foreign exchange business activities, the SBP said in a press statement. The SBP’s decision to revoke the li-
cense is in line with its regulatory responsibilities to enforce compliance among financial institutions. The specific details of the violations have not been disclosed by the SBP. Following this decision, PBS Exchange Company must cease all foreign exchange transactions immediately. The cancellation of its license signals the SBP’s commitment to upholding regulatory standards and ensuring the stability of the financial sector. There has been no response from M/s PBS Exchange Company regarding the revocation of their license at the time of this report.
NSU Celebrates Danish law banning sacrilege International Day of Women of Quran is great achievement: and Girls in Science 2024 Minhaj-ul-Quran
ISLAMABAD: The National Skills University Islamabad celebrated the International Day of Women and Girls in Science 2024, honoring their invaluable contributions to science, technology, engineering, and mathematics (STEM). Students, faculty, and employees came together to highlight the importance of recognizing and empowering women in the scientific community. The International Day of Women and Girls in Science is observed annually on 11 February to acknowledge and celebrate the remarkable achievements of women and girls in various scientific disciplines. The year 2024 theme for this day is "Women in Science Leadership: A New Era for Sustainability,". PR
LAHORE: Minhaj-ul-Quran International says it has achieved a landmark success by convincing the Danish government to enact a law banning desecration of the Holy Quran.A spokesperson has said in a statement that in order to prevent the sad incidents of desecration of the Holy Quran in Denmark, Minhaj-ul-Quran International’s Denmark chapter collaborated with the local Muslim community and civil society to initiate a dialogue both at governmental and nongovernmental level.This dialogue persuaded the Danish government to enact a law to check the desecration of the Holy Quran by criminalizing the act instead of considering it an issue of the fundamental right of freedom of speech, he said.The spokesperson said that prior to this legislation, there was the tragic incident of burning the Holy Quran every Friday outside some mosque in Denmark hurting feelings of the Muslim community.The spokesman said that wherever there was an incident of desecration of the Holy Quran, Minhaj’s Denmark chapter in collaboration with the civil society would distribute copies of the Quran with Danish translation among the people. The study of the Quran translation brought a positive change in the attitudes of the non-Muslims. PR
Verdict on Fawad Chaudhry's bail plea in fraud case reserved ISLAMABAD INP
The district and sessions court, Islamabad has reserved its verdict on the bail application of former federal minister Fawad Chaudhry in fraud case. Civil Judge Dr Sohail Thaheem heard the bail plea of the accused. Fawad s lawyer Qaiser Imam appeared before the court while wife of Fawad was also present there.
The lawyer argued that he never saw the plaintiff who filed the case against the former minister. The lawyer said the case was fabricated and many other politicians were victimised after the registration of such cases against them. He said no financial record of the plaintiff had been provided to court. It needed to be understood, he said, how an ordinary man could hand over Rs5 million against a job. After hearing the arguments, the judge reserved the verdict on the bail plea of the former federal minister.
A-71: ECP asks RO to give report till Feb 14 ISLAMABAD INP
The Election Commission of Pakistan (ECP) has barred the result of NA-71 and asked the report from Returning officer (RO) to present it till February 14. According to the details, Pak-
istan Tehreek-e-Insaf’s (PTI) backed candidate Rehana Dar’s plea has heard in ECP on NA-71. Rehana’s lawyer stated that Rehana has won the election by 50,000 votes according to the result of form-45. The form-47 which RO has made in that form Rehana lost by 47,000 votes.
Rehana’s lawyer said that ECP has upload another form-47 half an hour ago. Member Election Commission asked from Rehana’s lawyer is your request still the same now? New form-47 does not effect on your plea. He further said that there is no effect on uploading the new Form-47 on our plea.
Petitioners in Peshawar challenge election results in 8 constituencies
PESHAWAR: The battle over alleged election result manipulations in Peshawar reached the Peshawar High Court (PHC), with eight petitioners challenging outcomes in their respective constituencies. During the proceedings, a bench consisting of Justice Shakeel Ahmed and Justice Arshad Ali presided over the hearing. Advocates representing the petitioners contended that while Form 45 results favored them, discrepancies were evident in Form 47, suggesting potential manipulation. Lawyers representing the petitioners, including prominent political figures like Taimur Jhagra and Mahmood Jan, argued that results initially declared in Form 45 (polling station results) were altered in the final Form 47 (constituency-level declaration). They accused the Election Commission of Pakistan (ECP) of manipulating the final results. INP
Dellsons Group to help Nepal form freelancers' association
ISLAMABAD: Dellsons Group has signed an agreement with the Nepal Internet Foundation to build the freelancing ecosystem in Nepal, including a nationwide association, capacity-building programs, and conferences for freelancers.Chairman of Dellsons Group Ibrahim Amin said, “We have gained tremendous expertise to facilitate freelancers in Pakistan along with collaboration with various stakeholders, including commercial banks, broadband internet providers, and universities, which ultimately empower freelancers and enhance their contribution to the economy of South Asia. And now, we are delighted to share the expertise with the regional country."President Nepal Internet Foundation Bikram Shrestha said accessibility to the Internet is indispensable for every country to adopt it for faster growth in the economy; hence, our think tank is committed to introducing every essential and emerging trend among the masses in Nepal. There is immense potential for the youth of Nepal to contribute to the national economy while providing services to their clients on global freelancing platforms. PR
Jordan embassy delegation visits Safe City Islamabad; meets ICCPO
According to the details, the Ambassador of Jordan to Pakistan, Dr. Maan Abdel Fattah Khurisat, visited the Central Police Office Islamabad along with a delegation and met with Islamabad Capital City Police Officer (ICCPO) Dr. Akbar Nasir Khan, a public relations officer said. He said that, the Jordan embassy delegation discussed various matters with ICCPO Dr. Akbar Nasir Khan and was briefed about the measures taken by the Islamabad capital police to maintain foolproof security. During the visit, the delegation was briefed on Safe City's centralized system, cutting-edge technologyequipped cameras, and monitoring facilities and coverage across various sectors of the city and its integration with private buildings, toll plazas, and the metro bus system was highlighted, with ongoing upgrades continuing to expand its reach. The delegation was briefed about the important measures taken by the Islamabad Police during the recent General Elections 2024, to maintain the law and order situation in Islamabad and to ensure the protection of life and property of the citizens. Moreover, the delegation also visited the control room in Safe City. The delegation was also briefed about its role in the security of the city and the prevention of crimes through Safe City Islamabad. Furthermore, emergency facilities have also been brought together under one roof at Safe City so that all facilities can be provided to the citizens in a timely manner. PR
Gwadar Port reshaping geopolitical currents, maritime futures
ISLAMABAD SANA ASGHAR
Blue economy is now acknowledged by the marine industry as one of the major global drivers of sustainable economic growth. The vast Gwadar Port project is one of Balochistan’s major economic growth projects reshaping the global economy.
07
Furthermore, Pakistan’s Gwadar port is a perfect hub port in the region, drawing trade from Central Asia, Afghanistan, west China, and other countries due to its advantageous position near the Straits of Hormuz (SoH), the main transportation route that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. These days, Gwadar’s geopolitical location allows it to monitor and manage the oil routes for trade and Sea Lines of Telecommunications (SLOCs) connecting Africa, Central Asia, West Asia, and South Asia. The Gwadar project will be key in helping Pakistan’s economy recover as a hub port. The Gwadar port’s initial phase was mainly financed and finished by China in 2005. Chinese involvement in the Gwadar port project is likely to be regarded with reservations by the US and other important regional powers. To handle any upcoming unrest in the local region, the US may ask for army basing rights at the Gwadar port. In the event of such an event, Pakistan would have to weigh being both an ally and a reliable friend. To support the country’s financial recov-
ery, Pakistan must articulate a policy allowing foreign nations to use the port of Gwadar in a non-military capacity. The China-Pakistan Economic Corridor (CPEC), is a 2,000-kilometer road and development link that connects Gwadar to the western Chinese region of a region known as one of the most significant development projects for Gwadar Port. The port is going to be linked to the rest of the nation by rail and road as part of the CPEC, although the project’s scope stretches beyond the development of transportation infrastructure. Actually, it is expected that the Gwadar-Kashgar industrial corridor will help around three billion people in the area. As part of the port facilities in Gwadar, China is also building a 300-sleep hospital, a 19-km Eastbay Motorway that connects the ports to the coastal on the highway, challenges and facilities for the export development zone and free market zone. In addition to sponsoring each project, China has also committed to cover the cost of constructing a power plant powered by coal in the port create a single plan of action to create an ideal setting for business and
link the Gwadar with China via the famous Silk Road and the Central Asian Republics via Afghanistan. Finally, even though Gwadar Port has a lot of opportunities for trade, there are a few challenges that need to be solved. Historically, the nation’s bordering Gwadar port in South Asia and the Middle East have a long history of conflict and rivalry over power. Powers both regional and extra-regional have made attempts to seize control of the region to safeguard their strategic goals and financial goals. Particularly among the US, the Chinese presence in the development and management of Gwadar Port caused worries about strategic distrust. They worry that in the future, the Chinese Navy might make use of the port of Gwadar. Should China establish an armed force in the Indian Ocean, particularly in proximity of the Persian Gulf, the United States is anticipated to react to comply with the Carter Doctrine. According to this idea, any effort by a foreign nation to seize control of the Persian Gulf region will be viewed as an imminent
danger to the US’s essential interests. The US will retaliate against such a move by using every tool at its disposal, including force. Currently, work has been done on the M8 motorway, which will link Gwadar and Ratodero across an expanse of 852 kilometres. Furthermore, building railways between Gwadar and Jacobabad, Naukundi, Chaman, Karachi, and Naukundi will open up new trade routes for nations like Afghanistan and the rest of the Central Asian Republics. However, the degree of connection with China will depend on how the China-Pakistan Economic Corridor evolves. Making timely and accurate decisions and creating environmentally friendly initiatives are crucial for the success of massive initiatives like the Gwadar Port for the Pakistani government. The successful completion of the task has been supplied even more hard by Pakistan’s ever-changing political environment and the participation of regional and global factors. Author is completing MS degree in International Relations at Comsats University, Islamabad.
IMPASSE PERSISTS IN STALEMATE OVER SUZUKI’S DELISTING NEWS
T g
WITH A BUYBACK IN DANGER OF FAILING, ALL PARTIES NEED TO COME TO A RESOLUTION PROFIT
ZAIN NAEEM
HE last we left the buyback saga of Pak Suzki, a buyback price had been set by the Pakistan Stock Exchange (PSX) and Pak Suzuki was going to accept the price that was set. This was going to be a smooth process. But then there was a twist in the tale. Nadeem Nisar, a substantial shareholder, had announced to the PSX that he had amassed more than 10% of the shareholding of the company. Under the PSX regulations, a company needs to cross the threshold of 90% in order to make the buyback successful. It seemed that Nisar was going to end up holding all the cards and would be able to chart the course of the future of the buyback. Since then, Nisar has been able to create a block of shareholders who now hold a total of 15.39% of the shares of the company which means that Pak Suzuki will not be successful unless this block sells at least 5.39% of their shares, thereby increasing Suzuki’s holding to the 90% threshold. And now it seems its task has become even more difficult. Sensing that Pak Suzuki will go through the formal-
ities of accepting the price set by PSX of Rs. 609 per share, the block has decided to show their dissatisfaction with the price and the process being followed. In a scathing letter sent to PSX on 29th of January 2024, Pak Suzuki and the Securities and Exchange Commission (SECP), the shareholders have said that the whole process of delisting including its manner and procedure are a huge cause of concern. The letter states that they formally reject the delisting proposal and the price that has been set by the PSX. They have given a point by point justification for rejecting the price. The shareholders, under the leadership of Nadeem Nisar, feel that the interests of the shareholders are not being looked after and that they allege the company has been operating in an unlawful and oppressive manner over the last few years. They have done so by siphoning off billions of rupees from Pak Suzuki to the parent company and are now trying to evade accountability by carrying out the delisting at a very low price. In addition to that, they allege that through different pricing mechanisms like transfer pricing, discounts, commissions, royalty and technical fee, a significant portion of the profits that
should have come to the company have been diverted to the parent company which has led to losses for the company in Pakistan. Due to these losses, the company has seen a devaluation in its share price. Transfer pricing occurs when goods or services are exchanged between divisions of the same company. It’s like one part of the company doing business with another part. A transfer price is based on market prices, similar to what would be charged if the transaction happened outside the company. Companies use transfer pricing to reduce the overall tax burden of the parent company. They may charge a higher price to divisions in hightax countries (reducing profit) while charging a lower price (increasing profits) for divisions in low-tax countries. Suzuki, however, started to see an improvement in its financial performance from 2023 which was reported as losses earlier. This coincides with the change of the auditors potentially pointing towards more transparent financial reporting as per the aggrieved shareholders. There were attempts made on the part of the shareholders to ask the company to revise its earnings per share reported for previous years in order to reflect the actual performance which
had taken place. In the past, related party transactions with the holding company had been used to show losses. Based on the most recent performance, the shareholders feel that using price multiples, the price of the delisting is understated and should be revised upwards while no business plan or annexures have been shared by Pak Suzuki or PSX to rationalize the valuation that has been determined. The price to earnings multiple approach is derived from the recent earnings of a company and the price to earnings multiples of similar companies in the market. This approach aims to determine a reasonable market price. However, due to the economic turmoil that Pakistan has faced in the past two years, these multiples have decreased significantly across various industries. As a result, they may not accurately reflect the actual value of companies once the economy starts recovering. The shareholders alleged that the recent EPS of Rs 39.36 per share and Rs 46.24 per share for the last two quarters respectively show that the company was improving its performance and this has been disregarded which led to the undervaluation of the delisting price.
CONTINUED ON PAGE 03
As B2B startups shut shop or scale down, Bazaar too struggles to tide over current crisis g
Lahore police decide to arrest Imran Khan in seven more May 9 cases
LAHORE: The Lahore police have decided to arrest PTI founder chairman and former prime minister Imran Khan in another seven cases relating to May 9 vandalism. Joint Investigation Team (JIT) will move anti-terrorism court for the arrest of Imran Khan. After arresting PTI leader, the JIT will seek his remand in Adiala Jail where the former prime minister is already undergoing his prison terms awarded in cypher, Toshakhana and illegal marriage cases. The police in Lahore had registered 14 cases in connection with May 9 violence and had already found Imran Khan guilty in seven other cases. STAFF REPORT
PTI shares election ‘rigging evidence’ with President Alvi
ISLAMABAD: Leaders of Pakistan Tehreek-e-Insaf (PTI) held a meeting with the President Dr Arif Alvi on Monday and briefed him on the alleged rigging evidence during the recently held general elections. According to a statement issued by the president’s office, Dr Alvi met with PTI leaders Raoof Hassan and Umer Niazi, during which they informed the president about the evident irregularities during the February 8 polls. The PTI delegation apprised the president of the party’s stance regarding the alleged irregularities and reiterated that Form-45, issued in various constituencies, accurately reflects the true facts of the electoral outcomes. They emphasised that despite attempts to pressurise the party, snatching of electoral symbols, and numerous arrests, PTI emerged victorious against all odds. The PTI delegation highlighted that despite the atrocities, the public had shown trust in the party’s candidates in the general elections. The development comes as the PTI-backed independent candidates outperformed all other political parties in the general elections. Addressing a news conference on Saturday, PTI Chairman Barrister Gohar Ali Khan said that President Arif Alvi would invite his party to form the government as they had secured a majority in the National Assembly. Gohar emphasised that everybody should respect the public mandate. “We have no quarrel with anyone, we want to move forward. We will proceed and form a government in accordance with the constitution and the law,” he clarified. STAFF REPORT
STARTUP SHUTS DOWN NASCENT PHARMA AND MOBILE VERTICALS AND LAYS OF ABOUT 600 PEOPLE AS IT EYES PROFITABILITY PROFIT
NISMA RIAZ
Bazaar Technologies, a B2B marketplace startup based in Pakistan, has shut two of its newly launched verticals, and laid off a workforce of about 600 people, completely wiping out field force in Lahore, in a fresh sign of distress for one of Pakistan’s most prominent startups. Founded in May 2020, Bazaar at its core is a distribution business, providing inventory to neighborhood convenience stores – a market of about 800,000 retailers in Pakistan. The company achieved a significant milestone back in 2022, when it successfully raised $70 million in SeriesB funding round, the largest after Airlift’s $85 million round. On the back of the massive round raised about two years back, Bazaar is confident it would
be able to avoid a complete shutdown of operations. In distribution business in Pakistan, big distributors hold massive sway. The market is dominated by big companies such as Burque Corporation and Abu Dawood Group that move inventory worth hundreds of billions of rupees yearly from manufacturers to convenience stores and bigger marts, and give attractive offers and incentives to keep the retailers hooked. On the other hand, according to numbers available from 2021, Bazaar reached a scale of $4-6 million in monthly gross merchandise value (GMV), which translates to slightly above a billion rupees per month for the year – not a bad number but significantly less than big distributors, that would now have gone down. Bazaar provided inventory not only to retailers but also wholesalers on an app-based service and
through an in-house delivery fleet. Things would always have been tough for B2B startups as an earlier survey of about 50 convenience stores in Lahore by Profit revealed that big and small traditional distributors remained priority for these stores for ordering inventory, followed by wholesalers such as Metro and at places like Shah Alam market or the B2B apps, making them the second or the third option for ordering store inventory. The perilous nature of the market, and the economic and funding downturn have already forced Jugnu to shut down operations completely in July last year, Retailo to shut down distribution operations in October last year and Dastgyr laying off about 85% of the workforce few weeks ago. All three were heavily funded, having raised $161.4 million between the three startups.
CONTINUED ON PAGE 03
LHC turns down 18 petitions against election results LAHORE
STAFF REPORT
Lahore High Court Justice Ali Baqar Najafi has turned down 18 petitions challenging the results of constituencies after the general elections on the basis of Form 47s. The petitions included those against the electoral wins of PMLN leaders Nawaz Sharif, Shehbaz Sharif, Maryam Nawaz, Hamza Shehbaz, Khawaja Asif, Attaullah Tarar and IPP leader Awn Chaudhry. The judge directed the petitioners to approach the Election Commission of Pakistan regarding the matter. LHC had sought responses from the Election Commission of Pakistan (ECP) on Monday on petitions challenging
the electoral victories of multiple prominent candidates including PML-N’s Maryam Nawaz and Khwaja Asif, and Istehkam-e-Pakistan Party’s (IPP) Aleem Khan among others. The court heard pleas of PTIbacked independents and other candidates who claim the returning officers (ROs) manipulated vote counts in Form 45 and 47. PML-N Vice President Maryam Nawaz’s victory was challenged by PTI-backed candidate Mian Shahzad Farooq. The candidate urged the court to stop the ECP from issuing a final result of the poll. The LHC reserved its verdict on the admissibility of the plea. PTI-backed candidate challenged IPP President Abdul Aleem
Khan claiming that Khan had lost the election as per Form 45, but was declared the winner in Form 47. He maintained that the ECP had failed to fulfill its responsibility and urged the court to nullify the notification declaring Aleem Khan as the winner. PTI-backed candidate from PP-169 Mian Mehmood-ur-Rashid challenged the victory of PML-N’s Malik Khalid Khokhar. He also stated that as per Form 45, the latter had lost the election but was declared the winner in Form 47. The court ordered to stop the release of the final poll results and sought the ECP’s response on the matter. Umair Khan Niazi, a PTIbacked candidate, claimed having won the election from PP-170.
Tuesday, 13 February, 2024
PRAYER TIMINGS FAJR SUNRISE
ZUHR
ASR MAGHRIB ISHA
6:10
1:30
4:30
Session to form new NA expected to be held on Feb 29 6:50
RAWALPINDI
Two terrorists were killed by security forces during an intelligence-based operation (IBO) in Khyber Pakhtunkhwa’s Mardan district, the army’s media wing said on Monday night. According to a statement by the InterServices Public Relations (ISPR), security forces conducted an IBO in the district on the reported presence of terrorists. “During the conduct of the operation, after an intense fire exchange, two terrorists were sent to hell,” the ISPR said. It added that weapons, ammunition and explosives were also recovered from the slain terrorists, who “remained actively involved in numerous terrorist activities in the area”. It further said that a sanitisation opera-
tion is being conducted to eliminate any other terrorists found in the area. “Local populace appreciated the operation and expressed their full support to security forces in eliminating the menace of terrorism,” the ISPR statement concluded. A day earlier, the ISPR said a militant ringleader was killed during an operation in KP’s Khyber district. Last week, two militants, including a senior commander, were killed in an IBO in North Waziristan district. On February 5, 10 police officials were martyred and six others injured in a predawn attack by dozens of militants on a police station in Dera Ismail Khan, as violence escalated ahead of the general elections. On February 2, the ISPR said that 24 terrorists were killed during firefights and
clearance operations in the Mach and Kolpur towns of Balochistan over three days. The statement had come after security forces had thwarted three “coordinated attacks” launched by terrorists using rockets and sophisticated weapons in Mach. The terrorists also targeted a hotel and six shops in the Kolpur area and set them on fire. Pakistan has witnessed an uptick in terror activities in the past year, especially in KP and Balochistan after the banned militant Tehreek-i-Taliban Pakistan ended its ceasefire with the government in November 2022. According to an annual security report issued by the Centre for Research and Security Studies, Pakistan witnessed 1,524 violence-related fatalities and 1,463 injuries from 789 terror attacks and counter-terror operations in 2023 — marking a record six-
7:30
ISLAMABAD
STAFF REPORT
The National Assembly’s first session after the general elections is expected to be held on Feb 29. According to sources, the new assembly’s session must be held within 21 days after general elections are conducted under Article 19 of the Constitution. The newly elected members of the assembly will take the oath in the inaugural session. Speaker Raja Pervez Ashraf will preside over the inaugural session and newly-elected members will take the oath from him for the National Assembly. The members will be notified within 14 days after the elections, and the 60 and 10 seats reserved for women and minorities, respectively, will be granted afterwards. The notification is expected to be released on Feb 21 or 22 for the session. Independent candidates are obliged to join any party within three days after the release of the notification.
GDA rejects poll results, announces forfeiting Sindh Assembly seats KARACHI
STAFF REPORT
The Pakistan Muslim League-Functional (PML-F) and Grand Democratic Alliance (GDA) chief, Pir Sibghatullah Shah Rashidi, popularly known as Pir Pagara, has announced his refusal to accept the results of the recent general elections. In a press conference held at Pagara House in Karachi on Monday, Pir Pagara declared his intention to vacate his two Sindh Assembly seats, citing concerns over alleged election rigging and result manipulation. “We will not take any charity seats,” asserted Pir Pagara during the media briefing, expressing his discontent with the electoral process. He went on to claim that the manipulation of election results was not the work of Returning Officers (ROs) but rather the result of interference by unidentified entities. “I don’t feel like giving a speech. This election has come after the worst government, and we reject this election,” Pir Pagara declared, emphasising the severity of his disapproval. Describing the election as “anti-state”, Pagara drew parallels with the historical 1971 elections, where he claimed that the losing side had refused to recognise the mandate. He highlighted that he had faced pressure to dissolve the GDA before the election and had even been offered an alliance with PPP co-chairman Asif Ali Zardari. However, he rejected these proposals, asserting his commitment to the GDA’s independent political stance. Commenting on the alleged manipulation of results, Pagara stated, “All this is not the work of the ROs but of someone else,” indicating his belief that external forces played a role in shaping the election outcome. GDA leader Safdar Abbasi echoed Pir Pagara’s sentiments and announced plans for a protest against election rigging and result changes. Abbasi mentioned that the protest is scheduled for Friday at 11am at Hyderabad Bypass, emphasising their commitment to peaceful demonstrations until transparent elections are conducted. “We will not let the next government run… we will continue to protest peacefully until transparent elections are held… we will expand the scope of the protest,” affirmed Abbasi, underlining the GDA’s determination to challenge the election results and demand electoral integrity.
Sanjrani, Sanaullah Zehri, Jam Kamal, Aslam Raisani in race for Balochistan CM slot QUETTA
STAFF REPORT
As the dust is settling after general elections 2024, the battle for the new chief minister of Balochistan is picking up pace with some of the top names of the province in the line on Monday. Names of Sanaullah Zehri from the PPP, Jam Kamal Khan from the PML-N, Nawab Aslam Raisani from the JUI-F and Senate Chairman Sadiq Sanjrani from BAP are among the prominent candidates vying for this coveted provincial post. The question of which political party will be at the top in Balochistan awaits a definitive answer as negotiations and alliances continue to unfold. For the role of chief minister in Balochistan, few notable figures from the respective parties have emerged as strong contenders. PPP, PML-N, and JUI-F are set to join forces in a coalition government in Balochistan. However, optimism within the PML-N is directed towards incorporating independent members into their fold. Six newly-elected independent members of the Balochistan Assembly are being approached by various political parties to woo them into their ranks.
2 terrorists killed in intelligence-based operation in KP’s Mardan: ISPR STAFF REPORT
5:50
year high. KP and Balochistan were the primary centres of violence, accounting for over 90
Published by Asad Nizami at Plot # 7, Al-Baber Centre, F/8 Markaz, Islamabad, for PT Print (Pvt) Limited. Ph: 051-2204545. Email: newsroom@pakistantoday.com.pk
per cent of all fatalities and 84pc of attacks, including incidents of terrorism and security forces operations.