Pakistan’s caretaker government faces daunting challenges on economic, security, political fronts— analysts

Commuters ride past a truck painted with a portrait of Pakistan's Army Chief General Syed Asim Munir, in Islamabad, Pakistan, on August 16, 2023. (Photo courtesy: AFP)
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Updated 17 August 2023
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Pakistan’s caretaker government faces daunting challenges on economic, security, political fronts— analysts

  • Caretaker governments are empowered to run day-to-day affairs of the government, ensure conducive environment for polls
  • Experts say caretaker setup must show competence to implement IMF program, handle political, security crises before polls 

ISLAMABAD: Pakistan’s caretaker government faces daunting challenges in maintaining law and order, neutrality, and ensuring economic stability before the country heads to the polls, political analysts said on Wednesday. 

Since Caretaker Prime Minister Anwaar-ul-Haq Kakar took an oath of office on August 14, Pakistan’s government has jacked up petrol prices by Rs20 per liter, raising fears of further inflation while the Pakistani rupee has depreciated against the greenback by over six rupees. 

Kakar takes over the country’s reins at a time when militants have stepped up attacks in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province as the South Asian country grapples with an economic crisis amid deepening political instability, with popular opposition politician Imran Khan behind bars on graft charges. 

Dr. Khaqan Hassan Najeeb, a former economic adviser to the government, said the caretaker administration would have to work on four “key areas” which include implementing the International Monetary Fund’s (IMF) program, multilateral agreements, privatization of state-owned entities, and intergovernmental transactions. 

“Pakistan’s new caretaker setup must show the ability, the competence, and [select] the set of people who can carry the IMF program,” Najeeb told Arab News. 




Pakistan's caretaker Prime Minister Anwaar-ul-Haq Kakar takes oath from Pakistan's President Arif Alvi, in Islamabad, Pakistan August, on 14, 2023. (Photo courtesy: REUTERS via PID)

In July, Pakistan secured a last-gasp $3 billion IMF bailout package that helped it narrowly escape a sovereign default. The benchmarks and quantitative performance criteria agreed with the IMF must be met so that the November review goes through, Najeeb said. 

He said Pakistan would also have to work on handling its energy crisis to ensure its circular debt “doesn’t rise further.”

Gharidah Farooqi, a prominent TV host and political analyst, said the biggest challenge for the caretaker prime minister would be to establish his “neutrality” as the general impression was that he was close to Pakistan’s powerful military. 

“It is a big challenge for him to move forward positively with that impression and how he maintains his neutrality instead of becoming a pawn prime minister,” she told Arab News. 

Farooqi said another challenge for the caretaker government would be to take decisions with every political entity on board, especially Khan’s Pakistan Tehreek-e-Insaf (PTI) party. “How long the caretaker setup extends [its tenure] and consequentially how much elections are delayed, this would be a big challenge for him,” she said. 

She said though it was the Election Commission of Pakistan’s (ECP) responsibility to hold polls, all eyes were on the caretaker government to see whether polls would be held within a constitutional timeframe or on a date decided by consensus among all political parties. 

“To maintain neutrality on transfer and postings, releasing funds will be a challenge for him to fix the economy, and provide relief to the public during his tenure,” Farooqi said. 

Journalist and security analyst Hassan Khan said the security situation in KP and Pakistan’s southwestern Balochistan province was “deteriorating with every passing day” adding that the caretaker government would not be able to handle it. 

“The caretaker government would not have the required capacity and decision-making space to handle the issue of terrorism in both provinces,” Khan told Arab News, adding that security forces were routinely being targeted in Pakistan’s northwestern cities of Peshawar, Bannu, Dera Ismail Khan, Orakzai, Kurram, Khyber, Swat, and Bajaur districts.

He said the state’s action was “largely limited” to issuing condemnations. 

“Tehreek-e-Taliban Pakistan and Daesh were quite active in all these regions and involved in target killings of politicians and religious leaders,” Khan said. “But the state was trying to externalize this issue by blaming it on Afghanistan.” 

He said it would be challenging for the government to maintain a conducive environment for polls in KP and Balochistan. 

“Some forces might use the recent wave of terrorism in these two provinces to postpone the elections in these regions,” Khan said. 

“If the government and election commission go ahead with elections in these provinces, political parties and candidates may not be able to hold public gatherings and corner meetings to mobilize voters,” he added. 


Pakistan conducts successful training launch of rocket system capable of engaging ‘deep targets’

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Pakistan conducts successful training launch of rocket system capable of engaging ‘deep targets’

  • Fatah II Guided Rocket System can defeat any missile defense system, says army’s media wing 
  • Pakistan sees its missile development as deterrent against nuclear-armed neighbor and rival India 

ISLAMABAD: Pakistan Army on Wednesday successfully conducted the training launch of the Fatah-II Guided Rocket System capable of engaging “deep targets” with high precision, a statement from the army’s media wing said, adding it can defeat any defense system. 

Pakistan sees its missile development as a deterrent against nuclear-armed neighbor India, with which it has fought three wars since independence from Britain in 1947. Both nations have been developing missiles of varying ranges since they conducted nuclear tests in May 1998. In December 2023, Pakistan Army successfully conducted the flight test of the Fatah-II missile, which has a range of 400 kilometers. 

“Equipped with state-of-the-art navigation system, unique trajectory and maneuverable features, Fatah-II is capable of engaging targets with high precision and defeating any missile defense system,” the Inter-Services Public Relations (ISPR), the army’s media wing, said. 

“Fatah -II is being inducted in Pakistan’s Artillery Divisions for stand-off, precision engagement of deep targets.”

The army said the rocket system would “significantly upgrade” the reach and lethality of Pakistan Army’s conventional arsenal.

The flight test was witnessed by Pakistan Army’s chief of general staff and senior officers of the country’s air force, army and navy forces, apart from scientists and engineers.

President Asif Zardari, Prime Minister Shehbaz Sharif, Chairman Joint Chiefs of Staff Committee General Shamshad Mirza and Army Chief General Syed Asim Munir congratulated the participating troops and scientists over the achievement.

As Pakistan and India continue to test missiles and build their weapons armor, analysts warn Asia may be sliding into an accelerating arms race. 
 


Ancient spring festival kicks off in Pakistan’s Chitral, drawing crowds with traditional music and dance

Updated 15 May 2024
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Ancient spring festival kicks off in Pakistan’s Chitral, drawing crowds with traditional music and dance

  • Chilm Josht festival is celebrated by the Kalash people, often described as pagan due to their religious practices
  • The annual event is integral to the identity of the Kalash community and the continuity of its ancient traditions

PESHAWAR: The Khyber Pakhtunkhwa (KP) Tourism Authority on Tuesday announced the beginning of a popular cultural festival in Pakistan’s northwestern Chitral region, saying the event had attracted large numbers of foreign and local tourists like in the past.

The Chilm Josht festival is celebrated by the Kalash people, who are often described as pagan due to their religious beliefs and practices involving the worship of multiple gods and spirits, to mark the arrival of spring and celebrate the bounty of nature.

Known for music, dance, and colorful clothes, the festival is also associated with the preparation for new crops, symbolizing hope and prosperity for the community.

“The ancient Kalash festival ‘Chilm Josht’ has kicked off in full swing,” the KP tourism authority said in a statement. “Young women of Kalash danced to the beat of drums while wearing intricately embroidered garments, enhancing the colors of the festival.”

The statement added that district administration officials, members of the Kalash Development Authority and a large number of domestic and foreign tourists were also attending the festivity.

“The district administration has arranged foolproof security for the festival,” it added. “Tourism police are also providing services for the guidance of tourists.”

Chilm Josht is said to be the oldest festival of the Kalash tribe. It involves various rituals, the most well-known being the one where people dance with walnut branches in hand.

The festival will last for three days in the area known for its rugged terrain and scenic beauty. The annual event is considered integral to the identity of the indigenous Kalash community and the continuity of its ancient traditions.
 


Pakistan shares hit fresh record on rate cut hopes, IMF talks

Updated 15 May 2024
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Pakistan shares hit fresh record on rate cut hopes, IMF talks

  • Pakistan last month completed a short-term, $3 billion IMF program, seeking fresh, longer-term bailout 
  • IMF mission is in Pakistan to discuss financial year 2025 budget, policies, reforms under potential new program

Pakistan’s benchmark share index touched a lifetime high on Wednesday, breaching the key level of 75,000, on hopes that easing inflation could pave the way for interest rate cuts as early as June.

Still attractive stock valuations, expectations of more foreign inflows, and the start of talks with the IMF on a new loan program added to the bullish sentiment.

The index was trading at 75,013 points at 0531 GMT, up 0.7 percent, after hitting an intraday high of 75,115. It has surged 80 percent over the past year, and it is up 16.1 percent year-to-date after an IMF rescue last summer helped the government avert a debt default.

On Monday, the index closed at a record of 73,822, up 1 percent.

Mohammed Sohail, CEO of Topline Securities, said Wednesday’s gains were fueled by foreign fund buying.

On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan, to the MSCI frontier market index. Its shares rose 1.6 percent on Wednesday, outperforming the benchmark index.

“We estimate Pakistan’s weight will also increase, thereby having the potential to attract more passive foreign funds,” said Sohail.

The market is picking up steam due to an anticipated decline in inflation to 13.5 percent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.

Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.

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

An IMF mission is in Pakistan to discuss the financial year 2025 budget, policies, and reforms under a potential new program.

Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July, and recommends going long on the country’s 2027 international bond.


Pakistani deputy PM discusses trade through Khunjerab pass, simplified visa regime with Chinese counterpart

Updated 15 May 2024
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Pakistani deputy PM discusses trade through Khunjerab pass, simplified visa regime with Chinese counterpart

  • Pakistani Deputy PM Ishaq Dar is on a visit to China to discuss second phase of CPEC initiative 
  • New phase shifts focus from infrastructure projects to industrial, agricultural, green energy cooperation 

ISLAMABAD: Pakistan and China are pushing to sustain the momentum of the China-Pakistan Economic Corridor (CPEC) as the project enters its second phase, the foreign office said on Wednesday, with the Pakistani deputy prime minister on a visit to Beijing to discuss enhancing trade, including through a major border crossing and a simplified visa regime. 

The multibillion-dollar CPEC initiative in which Beijing has pledged to invest $65 billion in Pakistan spans several phases, each with distinct goals and impacts on the region. The first phase began in 2015 and mainly focused on building critical infrastructure, particularly in the transportation and energy sectors.

The second phase expands the focus to include industrial cooperation, agricultural development and the promotion of social and economic development. This phase is also expected to include the development of Special Economic Zones (SEZs), efforts to boost green energy production like hydropower and solar energy and initiatives aimed at modernizing agriculture and increasing exports.

According to an official statement, Deputy Prime Minister Ishaq Dar discussed issues related to bilateral trade and connectivity in a meeting with Chinese Executive Vice Premier Ding Xuexiang during his ongoing visit to Beijing.

“The two leaders held in-depth discussion on the various aspects of bilateral relations including China Pakistan Economic Corridor (Phase-II), trade, economic cooperation and investment,” the foreign office said in a statement. 

“Connectivity through Khunjerab border crossing and a simplified visa regime were also discussed. They agreed to sustain the growing momentum of Pakistan-China relations in all areas of cooperation and to further deepen iron-clad Pakistan-China friendship.”

“Deputy Prime Minister and Foreign Minister Dar noted the progress made by CPEC in energy and infrastructure and expressed the confidence at the positive dividends under Phase-II in the fields of industry, agriculture and mineral development,” the statement added.

Pakistani Deputy PM Ishaq Dar (5L) meets Chinese Executive Vice Premier Ding Xuexiang in Beijing on May 15, 2024. (Foreign Office)

The foreign office said Dar also expressed condolences with the Chinese official over a March 26 suicide bombing that killed five Chinese workers and their Pakistani driver while they were on their way to the Dasu hydropower project in Pakistan’s northwestern Khyber Pakhtunkhwa province. 

The Chinese vice premier expressed his country’s full support to Pakistan in all areas, including the economy, trade and investment and reaffirmed the importance of fast-tracking the implementation of CPEC projects.


A taste of Indian wada pao, pav bhaji in Pakistan’s culinary hub of Karachi

Updated 15 May 2024
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A taste of Indian wada pao, pav bhaji in Pakistan’s culinary hub of Karachi

  • The beloved vegetarian Indian street foods were not easy to find in Karachi, promoting Kavita Solanki to start her stall
  • In a city that offers wide range of meat dishes, the young Hindu woman offers change of taste, alternative for vegetarians 

KARACHI: Kavita Solanki had worked for years as a marketing executive when the young Hindu woman decided last October to quit her job and set up a food cart selling two beloved Indian street foods in the Cantonment Area of Pakistan’s financial capital of Karachi. 

Though Karachi is considered the South Asian nation’s culinary hub, and all kinds of foods and cuisines can be found at its thousands of restaurants and street stalls, it was not easy to find wada pao and pav bhaji.

Wada pao comprises a deep fried potato dumpling and chutneys placed inside a bread bun sliced almost in half through the middle. Pav bhaji is a thick spicy vegetable curry served with a soft buttered bread roll. Both dishes originated in the Indian state of Maharashtra.

“I used to search on Google about where I can get pav bhaji and wada pao,” Solanki said as she handed a plate of food to a customer at her stall which has come to be called “Kavita Didi Ka Indian Khana,” or Sister Kavita’s Indian Food, or simply, Kavita Didi's Cart.  

“So, I thought that the thing which is very difficult to find in the city, why not start with that.”

Kavita Solanki (center) is seen interacting with her customers at her food cart in Karachi, Pakistan on April 20, 2024. (Kavita M Solanki/Facebook)

The stall started attracting large crowds within a short span of time after opening, Solanki said. 

“If you say, okay, let's have nihari today, you know you will go to Zahid Nihari,” she said, naming one of the most famous restaurants in Karachi that offers the slow-cooked beef stew dish. “For vegetarian options, people will recommend Kavita Didi, that okay, let's go to Kavita Didi's stall.”

Solanki said people were attracted to her stall not just because wada pao and pav bhaji were difficult to find elsewhere in the city but also due to the authenticity and taste of the food.

“We are giving proper homemade stuff, nothing artificial,” she said. "What we eat at home is what we are bringing here.”

Solanki, who has never been to India and is ethnically Gujrati, said she learnt to make pav bhaji and wada pao from YouTube videos:

“Once we tried it at home, we liked it. So, like every weekend at home, we would be making this for ourselves.”

The stall is also popular for those seeking vegetarian alternatives and a change of taste from meat-based dishes. And her customers include people from all faiths, the entrepreneur said. 

“These are some unique dishes that they offer and it's very clean and very yummy and very nice,” pharmacist Maha Ahmed, a loyal customer, told Arab News.

Sikandar Ali, who works at a private firm, said he was drawn to Solanki's stall after seeing videos on YouTube.

“I had a strong desire to come to Didi's place and taste wada pao. So today, I decided that I would come and have wada pao,” said Ali, who grew up hearing about the street food from his mother, who migrated to Pakistan from India.

“I must say, it tastes absolutely amazing. I had a huge desire to go to India and have wada pao. That same taste I have found in Pakistan, in Karachi.”