PM Sharif says coalition government favors dialogue amid political impasse

Pakistan Prime Minister Shehbaz Sharif chairs a meeting of the heads of coalition parties in Islamabad on April 26, 2023. (PID)
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Updated 26 April 2023
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PM Sharif says coalition government favors dialogue amid political impasse

  • PM's statement comes a day before top couraPM's statement comes a day before top court resumes hearing case on delay in electionst resumes hearing case on delay in elections
  • Government, ex-PM Khan's party remain at loggerheads over date for elections in Pakistan

ISLAMABAD: After months of acrimony between the government and the opposition, Prime Minister Shehbaz Sharif said on Wednesday that the parties in his coalition government were of the opinion that the "doors of dialogue" with ex-PM Imran Khan's party should not be closed.  

The prime minister's statement comes a day before Pakistan's top court resumes hearing an important case related to the delay in elections in Pakistan's eastern Punjab and northwestern Khyber Pakhtunkhwa provinces. The crisis was triggered when former PM Khan's party, in an effort to pressurize the government to hold snap elections, dismissed his government in both provinces. 

After much political wrangling, the Supreme Court ordered polls to be held in Punjab on May 14, angering the government which wants provincial and national elections to be held across the country on the same day. According to Pakistan's constitution, however, elections must be held 90 days after the dissolution of a provincial assembly before its term of expiry. 

Over the past couple of weeks, Khan's Pakistan Tehreek-e-Insaf (PTI) party and the ruling Pakistan Muslim League-Nawaz (PML-N) have showed willingness to hold talks to resolve the political impasse in the country. In an interview with a private news channel earlier this week, Khan said "joint elections" across the country could be held on the same day in July, provided Sharif dissolves the National Assembly in May. 

Pakistan is racked with political instability at a time when its economy is in the doldrums, as its national currency has undergone massive devaluation over the past couple of months while inflation has skyrocketed. Pakistan has so far remained unsuccessful in getting the International Monetary Fund (IMF) to revive a $1.1 billion loan program it desperately needs to avoid default. 

To discuss the political crisis in the country, Sharif chaired a high-level meeting with the heads of all coalition parties in the government at the PM House in Islamabad on Wednesday. 

“There is an overwhelming opinion [among the ruling alliance] that the doors of dialogue [with the opposition] should not be closed,” he said, reiterating the 13-party alliance’s stance that elections should be held throughout the country on the same date. 
Sharif said that while a format for the talks was yet to be decided, the ruling alliance was of the opinion that its stance could be conveyed to the PTI through the speaker of the National Assembly. 

“A parliamentary committee can take up the matter [of negotiations], so that the nation could know that this allied government has made all-out efforts to ensure everyone unites on one-day polls,” he said. 

The controversy over elections has also pitted the government against the judiciary, with the ruling party accusing three senior judges of the apex court of being "biased" against it. The Supreme Court had ordered the government to issue Rs21 billion ($72 million) to Pakistan's election regulator to hold polls in Punjab and KP. Last week, the top court ordered political parties to decide a date for elections through consensus. Otherwise, it said elections in Punjab would be held on May 14.

“Their [the Supreme Court] job is not arbitration, but their job is to give judgments as per law and constitution,” Sharif said, adding that the parliament had not accepted the apex court’s judgment that called for elections in Punjab on May 14. 

“This matter [of the election funds] should also be brought before the parliament,” he said.

Separately, National Assembly Speaker Raja Pervez Ashraf vowed to write a letter to Chief Justice Umar Ata Bandial and other judges of the apex court to convey the “sentiments and thoughts” of Pakistani legislators about the top court's orders to hold polling in Punjab and Khyber Pakhtunkhwa, and its verdict to release funds to the ECP in this regard.  

His announcement to do so came during a session of the National Assembly, in which Pakistani legislators thumped their desks loudly and called for all institutions to respect the supremacy of the parliament. 

"Whenever the judges express their thoughts, we call out to them with respect," Foreign Minister Bilawal Bhutto-Zardari said. "Likewise, they will also have to call out to us with respect."


PM forms committee of allies to deliberate amendments to Pakistan’s social media law 

Updated 14 May 2024
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PM forms committee of allies to deliberate amendments to Pakistan’s social media law 

  • Law minister says federal cabinet will take final decision after coalition partners give feedback on draft law
  • Critics say the amendments could be used to stifle dissent and free speech instead of protecting digital rights 

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a committee comprising representatives of allied parties to review amendments to Pakistan’s electronic crimes law, Law Minister Azam Nazeer Tarar said on Tuesday, highlighting that the federal government wanted to form political consensus before making changes to the law. 

The government says amendments to the Prevention of Electronic Crimes Act (PECA) 2016 are aimed at protecting the digital rights of millions of Pakistani users, encouraging responsible Internet use and regulating online content to prevent hate speech and disinformation. Critics say the amendments, like PECA itself, could be used to stifle dissent and free speech. In the past, PECA has been used against critics of Pakistan’s all powerful army as well as governments and cases under the blasphemy law among others have also been filed using the legislation.

Earlier this month, the government notified a new National Cybercrimes Investigation Agency (NCCIA) to probe electronic crimes, which digital rights activists described as yet another attempt to stifle online criticism of the state. The NCCIA was approved by the caretaker government-led federal cabinet last year to take over cybercrime investigations from the Federal Investigation Agency (FIA).

Addressing the media on Tuesday, the law minister said the draft legislation has been sent to the federal cabinet for approval after being drafted by the IT ministry according to Article 19, which deals mainly with freedom of speech.

“Despite this, the PM was of the view that a political consensus was necessary for legislation, the cabinet also agreed to the premier’s view,” Tarar said. 

“Now he has formed a committee in this regard which will include allied parties including the Pakistan Peoples Party (PPP), Muttahida Qaumi Movement-Pakistan (MQM-P), Pakistan Muslim League Quaid (PML-Q), Istehham-i-Pakistan Party (IPP).”

The law minister said allied party representatives would examine the draft legislation and report feedback to the federal cabinet which would then take a final decision.

PECA

PECA was passed in 2016 during the government of Sharif’s Pakistan Muslim League Nawaz (PML-N) party, which is once more in power and leading a fragile coalition at the center. 

The law was originally enacted to combat various forms of cybercrime, including cyber terrorism, unauthorized access, electronic fraud and online harassment.

But the law has variously been used to crackdown on journalists, bloggers and other critics of the state. 

The popular social media platform X has been blocked in the country since February when Pakistan held general elections marred by widespread allegations of manipulation and rigging. 


New coach Gary Kirsten to join Pakistan cricket team in England

Updated 14 May 2024
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New coach Gary Kirsten to join Pakistan cricket team in England

  • The 56-year-old South African has served as the batting coach of Gujarat Titans in the Indian Premier League
  • The PCB has also appointed Simon Helmot as the fielding coach and David Reid as mental performance coach

ISLAMABAD: Gary Kirsten will start his two-year assignment as the coach of Pakistan’s white-ball cricket team when he joins the squad in England on Sunday.
Pakistan will play four Twenty20s against England to prepare for the T20 World Cup next month in the Caribbean and the United States.
Pakistan has delayed naming its final 15-man squad for the T20 World Cup until the first T20 against England next Tuesday at Leeds.
Kirsten served as the mentor and batting coach of Gujarat Titans in the Indian Premier League. They were knocked out of playoff contention on Monday.
“I’ve missed the experience of coaching at the international level and nurturing talented players to reach their full potential,” Kirsten said in a statement issued by the Pakistan Cricket Board on Tuesday. “I’m committed to working closely with the (Pakistan) team to elevate their game and bring joy to fans around the world.”
Kirsten has coached India and South Africa.
Last month, the 56-year-old South African was confirmed as the white-ball coach along with Jason Gillespie as the red-ball coach.
Pakistan has done well in the last two T20 World Cups. It made the semifinals in 2021 and the final against England in 2022.
The PCB has also appointed Simon Helmot as the fielding coach and David Reid as mental performance coach of the national team for the T20 World Cup. Reid will join the team next Monday while Helmot will team up with the Pakistan side on May 31 after the T20 series against England.


Missile fired by drone kills four of a family in Pakistan near Afghan border, police say

Updated 14 May 2024
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Missile fired by drone kills four of a family in Pakistan near Afghan border, police say

  • Local police chief said strike occurred in South Waziristan district of Khyber Pakhtunkhwa province 
  • It was not immediately clear who fired the missile and officers were investigating, the official added

DERA ISMAIL KHAN: A missile fired by a drone struck a house in a former stronghold of the Pakistani Taliban in northwestern Pakistan along the Afghan border before dawn Tuesday, killing at least four villagers, including children, police said.

The strike happened in South Waziristan in Khyber Pakhtunkhwa province, local police chief Hidayat Ullah said. He said it was not immediately clear who fired the missile and officers were investigating. The Pakistan army evicted Pakistani Taliban insurgents from the region years ago, but they have been regrouping there.

Those killed in the missile strike were civilians with no known links to the insurgents. Villagers put their bodies on a road near a military camp and protested the killings and demanded information about who was responsible.

Most of the previous drone strikes in the area were carried out by the United States or the Pakistan army.

There was no immediate comment from the government or the military about the strike. The Pakistani Taliban, officially known as Tehreek-e-Taliban Pakistan, is separate from but a close ally of the Afghan Taliban. It has been emboldened by the Afghan Taliban’s takeover of Afghanistan in August 2021.


Any significant rise in energy prices may impact improved inflation outlook — Pakistan central bank

Updated 14 May 2024
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Any significant rise in energy prices may impact improved inflation outlook — Pakistan central bank

  • The bank says it is important for the government to set inflation target range in consultation with it
  • However, its latest report finds gaps in collective and up-to-date understanding of inflation dynamics

KARACHI: Pakistan’s central bank has warned that any significant increase in energy prices may offset the impact of recent positive developments on the inflation outlook, urging the government to set an inflation target range in consultation with it.

The State Bank of Pakistan (SBP) said it had revised its inflation projection range to 23–25 percent for the current fiscal year against the target of 21 percent after the inflation hit all-time high of 38 percent in May last year, and had taken measures during the ongoing high inflationary episode to contain demand pressures and prevent de-anchoring of inflation expectations. 

The central bank cumulatively raised the policy rate by 1,500 basis points during FY22 and FY23 and maintained it at 22 percent as adjustments in energy prices, in the backdrop of longstanding structural issues, continued to impact inflation outturns. As a result of monetary tightening, supported by some fiscal consolidation, lower global commodity prices, and improved domestic crop output, the inflation came down from its peak of 38 percent to 29.7 percent in December 2023, whereas core inflation has also gradually started to decelerate. 

“Any significant increase in administered energy prices may offset the impact of positive developments on inflation outlook,” the central bank warned in its half-yearly report issued on Tuesday.

Higher input costs, increase in indirect taxes, and implementation of upward revision in minimum wage announced in the FY24 budget, alongside the second-round effects of administered prices of food and energy items, were responsible for the persistence in the core inflation during the first half of fiscal year 2023-24 (H1-FY24), according to the report.

“Despite subdued domestic demand and decline in global commodity prices, a combination of lingering structural issues, PKR (Pak Rupee) depreciation compared to H1-FY23, increase in government spending, and supply shocks kept the National CPI inflation at elevated levels,” it read.

The central bank also warned that its 23-25 percent inflation outlook may also be at risk due escalating geopolitical tensions, unfavorable weather conditions, adverse movements in global oil prices, and subsequent external account pressures, saying that it expected inflation to come down to 5–7 percent by September 2025.

To effectively anchor inflationary expectations, the central bank said: “It is important that the government sets the inflation target range in consultation with the SBP — ala the practice of joint agreements between the government and central bank in other countries, such as Canada, India and England.” 

It also necessitates that deviations from planned fiscal policies, including the setting of administrative prices, are neither significant in magnitude nor in timing to avoid affecting monetary policy credibility and stoking long term inflationary expectations, according to the report. 

It is imperative to relax the policy of price administration and to de-cap prices to help increase competition in the medium to long term and thereby lower inflationary pressure. While productivity growth is needed to improve supplies and lower per unit costs, there is also a need to significantly lower the pace of population growth to ease underlying demand pressures in the long term.

“There are gaps in collective and up to date understanding of inflation dynamics in the country,” the bank stated. “Plugging these gaps in understanding requires concerted efforts by academia, government institutions, and policy research institutes alike.”

Pakistan’s macroeconomic conditions somewhat improved during H1-FY24 and real economic activities moderately recovered against the contraction last year, while a $3 billion Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) helped reduce stress on external account, according to the central bank. Continued tight monetary policy stance and fiscal consolidation are expected to keep domestic demand in check, with modest economic recovery expected in the second half of FY24.

In the backdrop of improvements in business confidence, high frequency demand indicators since November 2023 and prospects for a good wheat production during FY24, the SBP projected real GDP growth in the range of 2-3 percent for the current fiscal year.


Pakistan’s top court allows ex-PM Khan’s video link testimony in NAB amendment case

Updated 14 May 2024
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Pakistan’s top court allows ex-PM Khan’s video link testimony in NAB amendment case

  • Khan has largely been kept out of the public eye by the authorities since his arrest last year in August
  • Islamabad High Court reserved verdict over his bail petition in a case involving £190 million embezzlement

ISLAMABAD: In a significant political development, Pakistan’s top court on Tuesday instructed the government to arrange for former prime minister Imran Khan to present his arguments via video link from prison in a case involving amendments to the law regulating the country’s anti-corruption body.

The previous administration of Prime Minister Shehbaz Sharif in May 2022 amended the National Accountability Bureau (NAB) Ordinance, reducing several powers of the anti-graft body that was described as a tool of political engineering in the country.

One of the amendments restricted the NAB jurisdiction to cases involving over Rs500 million, leading the opposition to argue that these changes were designed to close corruption cases against leaders of the ruling Pakistan Muslim League-Nawaz (PML-N) party.

In June 2022, Khan challenged the amendments in the Supreme Court, claiming they would effectively “eliminate any white-collar crime committed by public office holders.” After reviewing the case, the top court reinstated the original provisions of the law in September 2023, but the government decided to challenge the decision the very next month.

“The Pakistan Tehreek-e-Insaf founder [Imran Khan] can present his arguments in the upcoming hearing via video link if he wishes to do so,” Chief Justice of Pakistan Qazi Faez Isa was quoted as saying by Pakistan’s Geo News TV. “Arrangements should be made for presentation of arguments via video link.”

Khan, who was arrested on corruption charges last year in August, has faced been through prison trial in many cases, though he has largely been kept out of the public eye, where he enjoys a massive following among his supporters.

If the video link is established, this will be the first time he will be seen and heard by people in the last several months. The court said during today’s proceedings it had allowed him to be represented through a counsel but he decided to personally argue the case.

The former prime minister, who was ousted from power in a no-confidence vote in April 2022, became tangled in a slew of legal cases, a frequent hazard for opposition figures in Pakistan.

In a separate development, the Islamabad High Court reserved its verdict while hearing his bail petition in an embezzlement case involving £190 million. The case is built around accusations that Khan and his associates misappropriated the amount sent by London-based National Crime Agency as part of a settlement involving seized assets of a Pakistani property tycoon in Britain.

According to the charges, instead of transferring this money to the state, it was adjusted by Khan’s administration against liabilities related to the property tycoon. As a result, Khan and others were accused of illegally benefiting from over 458 kanals of land for establishing a university.

The former prime minister’s wife, Bushra Bibi, also faced the charges in the case.