OBITUARY: Pakistan’s Musharraf, military ruler who allied with the US and promoted moderate Islam

Supporters of Pakistan's former military ruler General (r) Pervez Musharraf, hold his posters as they shout slogans during a rally outside his farmhouse in Islamabad on April 18, 2014. (AFP)
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Updated 05 February 2023
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OBITUARY: Pakistan’s Musharraf, military ruler who allied with the US and promoted moderate Islam

  • The four-star general who ruled Pakistan for nearly a decade after seizing power in a bloodless coup in 1999
  • Under Musharraf, foreign investment flourished and Pakistan saw annual economic growth of as much as 7.5%

ISLAMABAD: Pervez Musharraf, the four-star general who ruled Pakistan for nearly a decade after seizing power in a bloodless coup in 1999, oversaw rapid economic growth and attempted to usher in socially liberal values in the conservative Muslim country.

Musharraf, 79, died in hospital after a long illness after spending years in self-imposed exile, Pakistan media reported on Sunday. He enjoyed strong support for many years, his greatest threat Al-Qaeda and other militant Islamists who tried to kill him at least three times.

But his heavy-handed use of the military to quell dissent as well as his continued backing of the United States in its fight against Al-Qaeda and the Afghan Taliban ultimately led to his downfall.

Born in New Delhi in 1943, Musharraf was four years old when his parents joined the mass exodus by Muslims to the newly created state of Pakistan. His father served in the foreign ministry, while his mother was a teacher and the family subscribed to a moderate, tolerant brand of Islam.

He joined the army at the age of 18 and went on to lead an elite commando unit before rising to become its chief. He took power by ousting the then prime minister, Nawaz Sharif, who had tried to sack him for greenlighting an operation to invade Indian-held areas of Kashmir, bringing Pakistan and India to the brink of war.

In his early years in government, Musharraf won plaudits internationally for his reformist efforts, pushing through legislation to protect the rights of women and allowing private news channels to operate for the first time.

His penchant for cigars and imported whisky and his calls for Muslims to adopt a lifestyle of “enlightened moderation” increased his appeal in the West in the aftermath of the Sept. 11, 2001 attacks in the United States.

He became one of Washington’s most important allies after the attacks, allowing US forces to operate armed drones from secret bases on Pakistani soil that killed thousands and ordering domestic troops into the country’s lawless tribal areas along the Afghanistan frontier for the first time Pakistan’s history.

That helped legitimize his rule overseas but also helped plunge Pakistan into a bloody war against local extremist militant groups.

In a 2006 memoir, he took credit for saving Pakistan from American wrath saying the country had been warned it needed to be “prepared to be bombed back to the Stone Age” if it did not ally itself with Washington.

Musharraf also successfully lobbied then-President George W. Bush to pour money into the Pakistani military. Still, the army’s allegiances were never unambiguous: its powerful intelligence services cut deals with the Taliban and Al-Qaeda, and bolstered an insurgency fighting US troops in Afghanistan.

In other areas of foreign policy, Musharraf attempted to normalize relations between New Delhi and Islamabad.

At a regional summit in 2002, less than three years after launching the military operation against India, Musharraf shocked the world when, after finishing a speech, he suddenly moved toward Indian Prime Minister Atal Bihari Vajpayee to shake hands and offered to talk peace.

Analysts say the issue of Kashmir – which remains the most potent point of contention between India and Pakistan – was close to being solved during the Musharraf era. But the peace process was derailed soon after his rule.

Under Musharraf, foreign investment flourished and Pakistan saw annual economic growth of as much as 7.5 percent — which remains the highest level in nearly three decades, according to World Bank data.

The later years of his presidency were, however overshadowed, by his increasingly authoritarian rule. In 2006, Musharraf ordered military action that killed a tribal head from the province Balochistan, laying the foundations of an armed insurgency that rages to this day.

The next year, more than a hundred students calling for the imposition of Sharia law were killed after Musharraf shunned negotiations and ordered troops to storm a mosque in Islamabad. That led to the birth of a new militant group, Tehreek-e-Taliban Pakistan, which has since killed tens of thousands in suicide bombings and brazen assaults.

Later in 2007, a suicide attack that assassinated opposition leader Benazir Bhutto, triggered waves of violence. His efforts to strong arm the judiciary also led to protests and a besieged Musharraf postponed elections and declared a state of emergency.

In 2008, the country’s first democratic elections in 11 years were held. Musharraf’s party lost and facing impeachment by parliament he resigned the presidency and fled to London.

He returned to Pakistan in 2013 to run for a seat in parliament but was immediately disqualified. He was allowed to leave for Dubai in 2016.

In 2019, a court sentenced him to death in absentia for the 2007 imposition of emergency rule but the verdict was later overturned.


Saudi officials arrive in Karachi to carry out immigration procedures under Makkah Route Initiative

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Saudi officials arrive in Karachi to carry out immigration procedures under Makkah Route Initiative

  • Makkah Route Initiative allows for completion of immigration procedures at pilgrims’ country of departure
  • A total of 65,000 pilgrims in Karachi, Islamabad are expected to utilize Makkah Route Initiative during this year’s Hajj

ISLAMABAD: Saudi officials arrived in the southern port city of Karachi on Monday to carry out immigration procedures under the Makkah Route Initiative for Hajj pilgrims, the Pakistan Civil Aviation Authority (PCAA) said. 

Pakistani officials confirmed in April Saudi Arabia’s decision to approve the Makkah Route Initiative’s expansion to the airport in Karachi, the country’s most populous city. Launched in 2019, the program was initially extended only to the airport in Islamabad.

The Makkah Route Initiative allows for the completion of immigration procedures at the pilgrims’ country of departure, making it possible to bypass long immigration and customs checks on reaching Saudi Arabia. The facility significantly reduces waiting times and makes the entry process smoother and faster.

“A group of 44 Saudi immigration officials has arrived in Karachi as part of the Road to Makkah Project,” PCAA said in a statement. “The immigration team will carry out Saudi immigration procedures for Hajj pilgrims at Karachi airport who are traveling under the Road to Makkah Project.”

The Saudi immigration officials were welcomed by the acting counsel general of Saudi Arabia in Karachi, the director of Hajj in Pakistan, representatives of the Airport Security Force, Pakistan Customs, Anti-Narcotics Force, Border Health Services, and the Federal Investigation Agency.

Pakistan’s religious affairs secretary told a media briefing in April that a total of 65,000 Hajj pilgrims would utilize the Makkah Route Initiative at Karachi and Islamabad airports this year. The official said 41,000 of the 65,000 pilgrims will make use of the facility under the government’s Hajj scheme, while the remaining 24,000 will rely on private tour operators.

A total of 29,500 pilgrims will use the facility from Islamabad while 35,500 will be able to avail it from the Jinnah International Airport in Karachi. 

Saudi Arabia last year restored Pakistan’s pre-pandemic Hajj quota of 179,210 pilgrims and abolished the upper age limit of 65. More than 81,000 Pakistani pilgrims performed Hajj under the government scheme in 2023, while the rest used private tour operators.
Pakistan will launch Hajj 2024 operations from May 9 in eight airports across the country till June 9. This year’s pilgrimage is expected to take place from June 14-19.


Pakistan wants ‘larger, longer’ IMF bailout, PIA privatization by early July — FinMin

Updated 16 min 51 sec ago
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Pakistan wants ‘larger, longer’ IMF bailout, PIA privatization by early July — FinMin

  • Pakistan last month completed a short-term $3 billion program that helped stave off sovereign default
  • Finance minister says hopeful PIA and other privatization deals would get through “finishing line” by early July

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Monday Islamabad was seeking a “larger and longer” bailout program from the International Monetary Fund, whose mission would arrive in Islamabad within the next ten days to start discussing a new loan deal.

Pakistan last month completed a short-term $3 billion program, which helped stave off sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer term program.

Pakistan’s financial year runs from July to June and its budget for fiscal year 2025, the first by Sharif’s new government, has to be presented before June 30.

The IMF has not specified the dates of its Islamabad visit, nor the size or duration of any new program.

“We have requested the IMF … that we want to go into a larger and a longer program with the fund and they have acceded that request, and we are expecting the mission to arrive here within a week to 10 days, where we will start discussing the contours of the next program,” Aurangzeb said while addressing a conference in Islamabad. 

He said Pakistan needed a new IMF program to bring “permanence” to macroeconomic stability and continue to carry out “structural reforms.” 

The IMF has said accelerating reforms was more important than the size of a new program, which would be guided by a package of reforms and balance of payments needs.

Under the last $3 billion bailout, Pakistan implemented several IMF-mandated reforms, such as budget adjustments, increasing interest rates, and higher energy prices. 

Among expected reforms under a new program are strengthening public finances through gradual fiscal consolidation, broadening the existing tax base and improving tax administration, and debt sustainability, all while protecting the vulnerable.

Pakistan also needs to restore the viability of the energy sector and prevent further accumulation of circular debt arising from subsidies and unpaid bills. Other reforms will include cutting inflation, stimulating private sector growth and adopting a market-driven exchange rate to help balance external accounts and rebuild foreign reserves.

PIA PRIVATIZATION

“We have to broaden our tax base,” the finance minister said, outlining reforms under new IMF deal. “Our tax to GDP [ratio] is languishing at about 9 percent ... we have to start moving it toward 14- 15 percent.”

“We have to start resolving the complex energy equation … And the third one is the SOE [state-owned enterprises] reform,” Aurangzeb said. “Our prime minister has been very clear that the government has no business being in business … We need to and we will accelerate the privatization agenda.”

He said he hoped that PIA, the national carrier, and other privatization deals would get through the “finishing line” by early July. 

Last week, Pakistan pushed back the deadline for companies to express interest in buying PIA to May 18, a day before the expressions had originally been due. The privatization commission says 10 companies have already expressed an interest.

Pakistan’s government has previously said it was putting on the block a stake of between 51 percent and 100 percent in the loss-making airline.

The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on privatization is key to helping cash-strapped Pakistan pursue further funding talks with the IMF.


At OIC contact group meeting, Pakistan calls on India to restore Kashmir’s special status

Updated 20 min 1 sec ago
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At OIC contact group meeting, Pakistan calls on India to restore Kashmir’s special status

  • Delegations from Pakistan, Saudi Arabia and other member states attend OIC Contact Group on Jammu and Kashmir meeting in Banjul
  • Member states call for early and peaceful resolution to Kashmir dispute along the lines of OIC’s agenda UN resolutions, says foreign ministry 

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar stressed on India to release prisoners, lift curbs on political parties and restore the special status of the internationally disputed Jammu and Kashmir territory, the foreign ministry said on Monday, during the sidelines of the Organization of Islamic Cooperation’s (OIC) summit in The Gambia. 

These views were expressed by Dar as he led Pakistan’s delegation to a meeting of the OIC’s Contact Group on Jammu and Kashmir on Sunday in Banjul. The meeting reviewed the political and security environment in Jammu and Kashmir, and took stock of the “grim human rights situation” in the territory, Pakistan’s Ministry of Foreign Affairs (MoFA) said. The meeting was attended by member states of the contact group such as Saudi Arabia, Türkiye, Niger, Azerbaijan and officials of the OIC-Independent Permanent Human Rights Commission. 

Kashmir has long been a flashpoint between India and Pakistan, both of which claim all of the region but administer only parts of it. On Aug. 5 2019, Indian Prime Minister Narendra Modi withdrew Indian-administered Kashmir’s autonomy in a move that was seen by analysts as a strategy to tighten his grip over the territory. The decision provoked outrage in Pakistan and the downgrading of diplomatic ties and suspension of bilateral trade between the two countries. 

“He [Dar] also stressed that India must release all the political prisoners, lift curbs on the outlawed political parties, revoke the illegal and unilateral actions of 5 August 2019 and the subsequent steps aimed at demographic change and political engineering, and implement the relevant UN Security Council resolutions,” MoFA said. 

Dar informed the group that India was “systematically denying the Kashmiri people their fundamental rights and freedoms,” adding that Indian authorities had created “an environment of fear and intimidation” in the disputed territory. 

The delegations from member countries stressed the importance of the resolution of the Kashmir dispute along the lines of the OIC’s agenda, the foreign ministry said. They expressed support for the legitimate struggle of Kashmiris for the realization of their right to self-determination in accordance with the relevant UN Security Council resolutions, the ministry said. 

“They called for an early and peaceful resolution of the Jammu and Kashmir dispute,” MoFA said. 

The OIC has 57 member countries, making it the second largest intergovernmental organization after the United Nations. The OIC contact group on Jammu and Kashmir was established in 1994 to support the struggle of the people of Indian-administered Kashmir, including their right to self-determination, to voice the organization’s position, and coordinate joint actions on the dispute.

Dar is in Banjul to attend an OIC summit being held against a backdrop of widespread anger over Israel’s military actions in Gaza. The Jewish state has killed nearly 35,000 Palestinians and caused massive destruction of hospitals, schools and residential neighborhoods in the densely populated area since Oct. 7.

The Pakistani deputy prime minister arrived in Gambia on Wednesday to present his country’s perspective on a wide range of issues, including the war in Gaza and the rights situation in Indian-administered Kashmir.
 


Pakistan ‘high priority’ economic opportunity for us, Saudi top minister says in Islamabad

Updated 46 min 56 sec ago
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Pakistan ‘high priority’ economic opportunity for us, Saudi top minister says in Islamabad

  • 50-member Saudi delegation with representatives of 30 Saudi companies in Pakistan for investment conference
  • Pakistan and Saudi Arabia have been working closely in recent weeks to finalize trade and investment deals

ISLAMABAD: Pakistan is a “high-priority economic investment and business opportunity” for Saudi Arabia, the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak said on Monday, as a two-day Pak-Saudi investment conference kicked off in Islamabad.

A 50-member delegation led by Al-Mubarak arrived in Pakistan on Sunday, comprising some 30 Saudi companies from the fields of IT, telecoms, energy, aviation, construction, mining exploration, agriculture and human resource development.

“To the Saudi government and Saudi companies, Pakistan is considered a high-priority economic investment and business opportunity,” Al-Mubarak said as he addressed the investment summit. 

“We believe in the great potential of Pakistan’s economy, demographics and talent as well as location and natural resources.”

Al-Mubarak said this was his second visit to Pakistan in two weeks and many influential leaders from globally renowned Saudi companies were part of his delegation.

“Today, we want to connect you [Pakistan] all to Saudi companies who desire to continue building their international presence, for Saudi Arabia’s ambitions do not stop at our borders and we would like to see Pakistan as one of our leading international partners,” the Saudi official added. 

“So, this gathering provides a wonderful opportunity for them [Saudi companies] to develop a deeper understanding of the great opportunities available for investment in Pakistan and to learn about related regulations, requirements, and incentives.”

INVESTMENT PUSH

Pakistan and Saudi Arabia have been closely working in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.

The Saudi business delegation’s visit comes on the heels of one by Sharif to Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum. 

On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.

This was Sharif’s second meeting with the crown prince in a month. Before that he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh.

Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country. During the first half of the current financial year, bilateral trade between Pakistan and Saudi Arabia was recorded at $2.482 billion, with Pakistan’s exports of $262.58 million and Saudi exports of $2.219 billion.

Saudi Arabia has often come to Pakistan’s aid in the past, regularly providing it oil on deferred payments and offering direct financial support to help stabilize its economy and shore up forex reserves.

As things stand, Pakistan desperately needs to shore up its foreign reserves and is in talks with the International Monetary Fund (IMF) for a new bailout deal, for which it needs to signal that it can continue to meet requirements for foreign financing which has been a key demand in previous loan packages. 

Last year Pakistan set up the Special Investment Facilitation Council, a body consisting of Pakistani civilian and military leaders and specially tasked to promote investment in Pakistan. The council is so far focusing on investments in the energy, agriculture, mining, information technology and aviation sectors and specifically targeting Gulf nations.


Pakistan Securities And Exchange Commission approves PIA restructuring

Updated 06 May 2024
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Pakistan Securities And Exchange Commission approves PIA restructuring

  • Pakistan’s national airline has accumulated hundreds of billions of rupees in arrears and losses over the years
  • Pakistan last year agreed to overhaul loss-making public entities in exchange for a financial bailout from IMF

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has approved the restructuring scheme of the country’s national airline, the privatization ministry confirmed on Sunday, marking a significant milestone in the government’s endeavors to privatize the loss-making entity.

Pakistan has identified 25 public sector enterprises for privatization that have accumulated billions in losses, including the Pakistan International Airlines (PIA), banks, hotels and power generation and distribution companies. Pakistan agreed in June 2023 to overhaul its loss-making state-owned enterprises (SOEs) as part of a deal with the International Monetary Fund (IMF) for a $3 billion bailout package. The government resolved to privatize PIA shortly after finalizing the IMF agreement. 

However, the country’s progress in privatization has been stalled for decades due to political inertia and various challenges, including legal, licensing and ownership issues. In March, the government created PIA Holding Company (Holdco) to expedite the national carrier’s privatization by managing the airline’s liabilities and assisting in its transfer to potential investors.

On May 4, the Competition Commission of Pakistan (CCP) green-lighted PIA’s acquisition by Holdco, saying it would not have any material impact on the market. On Sunday, the privatization ministry said the SECP had agreed to the transfer of PIA’s non-core assets and liabilities to Holdco. 

“This order marks a significant milestone in the collaborative efforts of the Privatization Commission (PC), Finance Division, Aviation Ministry and Pakistan International Airlines to restructure the national carrier,” the ministry said. 

It said the SECP has directed the Pakistan Stock Exchange, the Central Depository Company and the National Clearing Company to ensure Holdco’s “smooth listing.” 

The PIA has accumulated hundreds of billions of rupees in arrears and losses over the years, forcing successive Pakistani governments to dole out billions of rupees from their budgets to keep the loss-making public entity afloat. 

The PIA’s woes were compounded after 2020 when the airline was already struggling financially while its flights were grounded due to the coronavirus pandemic. When the national airline resumed operations in May 2020, a domestic PIA flight crash in Karachi killed 97 out of 99 people on board, prompting an initial inquiry that pointed to a number of safety failures.

The inquiry sparked a disclosure from authorities that nearly a third of PIA’s pilots may have falsified their qualifications, prompting the European Union Aviation Safety Agency (EASA), the US Federal Aviation Administration (FAA) and other regulators to ban PIA flights.

Prime Minister Shehbaz Sharif has vowed to privatize the airline and warned Pakistan’s bureaucracy that he would not tolerate delays in the process. Sharif has assured Pakistan’s business community several times that the process to privatize the national airline would be a transparent one.