Amid mounting economic challenges, Pakistan’s PM seeks export-oriented budget for next fiscal year

Pakistan Prime Minister Shehbaz Sharif speaks on the floor of the National Assembly in Islamabad on April 4, 2023. (Photo courtesy: Twitter/NAofPakistan)
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Updated 02 June 2023
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Amid mounting economic challenges, Pakistan’s PM seeks export-oriented budget for next fiscal year

  • Pakistan recently experienced a decline in exports after commercial banks stopped opening LCs due to dollar crunch
  • The prime minister also wants special focus on the development of the country’s information technology sector

ISLAMABAD: Prime Minister Shehbaz Sharif issued instructions on Friday to increase the country’s exports during the next fiscal year while chairing a meeting to evaluate proposals related to the Public Sector Development Program (PSDP) ahead of the upcoming budget.

Pakistan has recently experienced a decline in exports after commercial banks refused to open letters of credit (LCs) due to a dollar liquidity crunch triggered by a massive financial crisis in the country.

Additionally, the government also limited imports due to rapidly declining forex reserves and a depreciating rupee, reducing the overall production potential of the industrial sector and further exacerbated the economic slowdown in Pakistan.

“The prime minister issued clear instructions to provide alternatives to domestic imports, increase exports and give priority to innovation projects of various sectors in the development projects of the Budget 2023-24,” said a statement issued by his office after the meeting.

During the gathering, participants were also informed about the progress of ongoing projects under the PSDP.

The prime minister emphasized that agriculture, renewable energy, higher education for youth, vocational training, and employment projects should remain central to the development budget.

It was also agreed that projects related to the development of the information technology sector would play a significant role in the country’s economic planning for the next fiscal year.

Pakistan has witnessed the highest inflation rate of about 38 percent in recent weeks. Its finance minister is scheduled to announce the federal budget amid mounting economic challenges on June 9.


Pakistani politicians urge dialogue with Imran Khan’s party as PM offers talks

Updated 54 min 16 sec ago
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Pakistani politicians urge dialogue with Imran Khan’s party as PM offers talks

  • National Dialogue Committee group organizes summit attended by prominent lawyers, politicians and journalists in Islamabad
  • Participants urge government to lift alleged ban on political activities and media restrictions, form committee for negotiations 

ISLAMABAD: Participants of a meeting featuring prominent politicians, lawyers and civil society members on Wednesday urged the government to initiate talks with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, lift alleged bans on political activities after Prime Minister Shehbaz Sharif recently invited the PTI for talks. 

The summit was organized by the National Dialogue Committee (NDC), a political group formed last month by former PTI members Chaudhry Fawad Husain, ex-Sindh governor Imran Ismail and Mehmood Moulvi. The NDC has called for efforts to ease political tensions in the country and facilitate dialogue between the government and Khan’s party. 

The development takes place amid rising tensions between the PTI and Pakistan’s military and government. Khan, who remains in jail on a slew of charges he says are politically motivated, blames the military and the government for colluding to keep him away from power by rigging the 2024 general election and implicating him in false cases. Both deny his allegations. 

Since Khan was ousted in a parliamentary vote in April 2022, the PTI has complained of a widespread state crackdown, while Khan and his senior party colleagues have been embroiled in dozens of legal cases. Prime Minister Shehbaz Sharif last month invited the PTI for talks during a meeting of the federal cabinet, saying harmony among political forces was essential for the country’s progress.

“The prime objective of the dialogue is that we want to bring the political temperatures down,” Ismail told Arab News after the conference concluded. 

“At the moment, the heat is so much that people— especially in politics— they do not want to sit across the table and discuss the pertaining issues of Pakistan which is blocking the way for investment.”

Former prime minister Shahid Khaqan Abbasi, who heads the Awaam Pakistan political party, attended the summit along with Jamaat-e-Islami senior leader Liaquat Baloch, Muttahida Quami Movement-Pakistan’s Waseem Akhtar and Haroon Ur Rashid, president of the Supreme Court Bar Association. Journalists Asma Shirazi and Fahd Husain also attended the meeting. 

Members of the Pakistan Peoples Party, the ruling Pakistan Muslim League-Nawaz (PML-N) and the PTI did not attend the gathering. 

The NDC urged Prime Minister Shehbaz Sharif, President Asif Ali Zardari and PML-N chief Nawaz Sharif to initiate talks with the opposition. It said after the government forms its team, the NDC will announce the names of the opposition negotiating team after holding consultations with its jailed members. 

“Let us create some environment. Let us bring some temperatures down and then we will do it,” Ismail said regarding a potential meeting with the jailed Khan. 

Muhammad Ali Saif, a former adviser to the Khyber Pakhtunkhwa chief minister, told participants of the meeting that Pakistan was currently in a “dysfunctional state” due to extreme political polarization.

“The tension between the PTI and the institutions, particularly the army, at the moment is the most fundamental, the most prominent and the most crucial issue,” Saif noted. 

‘CHANGED FACES’

The summit proposed six specific confidence-building measures. These included lifting an alleged ban on political activities and the appointment of the leaders of opposition in Pakistan’s Senate and National Assembly. 

The joint communique called for the immediate release of women political prisoners, such as Khan’s wife Bushra Bibi and PTI leader Yasmin Rashid, and the withdrawal of cases against supporters of political parties.

The communiqué also called for an end to media censorship and proposed that the government and opposition should “neither use the Pakistan Armed Forces for their politics nor engage in negative propaganda against them.”

Amir Khan, an overseas Pakistani businessperson, complained that frequent political changes in the country had undermined investors’ confidence.

“I came here with investment ideas, I came to know that faces have changed after a year,” Amir Khan said, referring to the frequent change in government personnel. 

Khan’s party, on the other hand, has been calling for a “meaningful” political dialogue with the government. 

However, it has accused the government of denying PTI members meetings with Khan in the Rawalpindi prison where he remains incarcerated. 

“For dialogue to be meaningful, it is essential that these authorized representatives are allowed regular and unhindered access to Imran Khan so that any engagement accurately reflects his views and PTI’s collective position,” PTI leader Azhar Leghari told Arab News last week.