Pakistan earmarks 10 state entities for possible privatization

In this file photo, a man walks past machines at the hot strip mill department of the Pakistan Steel Mills (PSM) on the outskirts of Karachi on Feb. 8, 2016. (REUTERS/File)
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Updated 21 September 2023
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Pakistan earmarks 10 state entities for possible privatization

  • Caretaker finance minister says the accumulated losses for state-owned entities amount to $1.74 billion
  • According to interim privatization minister, only one bidder is left for money-guzzling Pakistan Steel Mills

KARACHI: Pakistan’s caretaker government moved on Thursday to improve governance at state-owned companies and earmarked 10 for privatization or turnaround efforts, as it strives to deliver reforms under its International Monetary Fund (IMF) bailout.

Under the $3 billion bailout package from the IMF, that was critical in averting a sovereign debt default, state-owned entities (SOEs), whose losses are burning a hole in government finances, will need stronger governance.

As of 2020, the accumulated losses for SOEs amounted to 500 billion rupees ($1.74 billion), said caretaker finance minister Shamshad Akhtar at a press conference.

She said under the government’s draft policy on SOEs, the appointment of independent directors will be through a nomination process, adding that no ministry would be able to issue directives to SOEs in order to improve governance.

Later on Thursday, Pakistan’s caretaker privatization minister Fawad Hasan Fawad said there was only one bidder left for Pakistan Steel Mills (PSM).

He said that prior to COVID-19, there were four companies that were interested and qualified to bid for PSM, but three of them have backed out for a variety of reasons including global demand for steel.

Fawad added that the caretaker government was in talks with the financial planner appointed for the transaction; and that only PSM’s operational assets were up for sale.

Pakistan has also been discussing outsourcing operations of several of its state-owned assets to outside companies.

In March, it kicked off outsourcing of operations and land assets at three major airports to be run under a public-private partnership, a move to generate foreign exchange reserves for its ailing economy.

The government has budgeted only about 15 billion Pakistani rupees ($52.42 million) in receipts from a stalled privatization process in its budget for the fiscal year 2024.


Indian court halts release of Pakistani blockbuster “The Legend of Maula Jatt”

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Indian court halts release of Pakistani blockbuster “The Legend of Maula Jatt”

  • Movie starring A-listers Fawad Khan, Mahira Khan and Hamza Ali Abbasi was scheduled to release in India on Oct. 2 
  • Political tensions between India and Pakistan have led to minimum cultural exchanges between the countries 

KARACHI: An Indian court has issued a stay order halting the release of the Pakistani blockbuster “The Legend of Maula Jatt” in the country, the film’s distributor in Pakistan confirmed on Thursday. 

Released in October 2022, the movie is a reboot of a hyper-masculine Punjabi film that enchanted viewers four decades ago. It has not only won critical acclaim but also done incredibly well by breaking all previous records at the local and international box office for Pakistani cinema. It stars Pakistani A-listers Fawad Khan, Mahira Khan and Hamza Ali Abbasi in lead roles. 

The film’s director Bilal Lashari announced in August that the film would be released in theaters across India on Oct. 2, triggering excitement among movie buffs in both countries. 

“The Punjab court has issued a stay order on the release of the film [in India],” film distributor Nadeem Mandviwalla told Arab News. 

“It is alleged that the film has been stopped through a stay order which was applied by the Information & Broadcasting Ministry of India.”

Mandviwalla said he was in the dark about the exact reason why the movie’s release was halted in India. 

“I have no idea [why the release has been stopped],” he said. “We are also trying to find out what was the content of their appeal to the court.”

Indian politician Raj Shrikant Thackeray, chairman of the right-wing Maharashtra Navnirman Sena (MNS) party, had earlier posted on social media platform X that he would not allow the Pakistani blockbuster to be screened in Maharashtra theaters where his party holds sway. 

Tensions between Pakistan and India have led to minimal cultural exchanges between the two states. India banned Pakistani artists from working in their country after the Uri terror attack in 2016 while Pakistan has put a blanket ban on the release of Indian films across the country.

Both countries have fought three wars since gaining independence in 1947, two of them over the disputed Himalayan territory of Kashmir. Political tensions between the two nuclear-armed neighbors continue to dominate their relations.


Pakistani IT firms showcase AI, Big Data solutions at Amsterdam tech exhibition

Updated 03 October 2024
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Pakistani IT firms showcase AI, Big Data solutions at Amsterdam tech exhibition

  • Exhibition held from Oct. 1-2 was sponsored by Trade Development Authority of Pakistan
  • Pakistan’s participation shows its growing expertise in AI, big data, says commerce ministry 

ISLAMABAD: Four Pakistani information technology firms showcased cutting-edge artificial intelligence (AI) and big data solutions at an exhibition in Amsterdam this week, highlighting the country’s role as a key player in the global tech arena, the commerce ministry said on Thursday.

The AI and Big Data Expo Europe was held from Oct. 1-2 in Amsterdam, featuring next-generation technologies and strategies in the world of artificial intelligence. The event was sponsored by the Trade Development Authority of Pakistan and included various speakers from the fields of data science. 

AI technology enables computers and machines to simulate human learning, comprehension, problem-solving, decision making and creativity. Big data refers to extremely large and diverse collections of structured, unstructured, and semi-structured data that continues to grow exponentially over time. Big data is used in machine learning, predictive modeling, and other advanced analytics to solve business problems and make informed decisions. 

“Four leading Pakistani IT companies Reach the Globe, ICILtek, NorthBay Solutions and Sofizar/ ConstellationCK proudly represented Pakistan at the AI and Big Data Exhibition Europe at the RAI Convention Center in Amsterdam,” the commerce ministry said in a statement on Thursday.

Pakistan’s embassy in The Hague played an important role in promoting the participation of these companies by ensuring a “seamless setup” of the Pakistan Pavillion, the ministry said. It added that the embassy also facilitated booths for local companies and promoted Pakistani IT firms in front of visitors from different sectors. 

The Pakistani embassy hosted a networking dinner to bring together local IT firms and key stakeholders representing Dutch companies, the statement said. The dinner provided a platform for Pakistani and Dutch businesses to discuss collaboration opportunities. 

Muhammad Shafiq Haider Virk, Pakistan’s trade and investment councilor in the Netherlands, said the participation of the four local companies demonstrated the South Asian nation’s growing expertise in AI and big data.

“The Embassy of Pakistan in The Hague will continue to support and promote Pakistani businesses on the global stage, strengthening our trade ties with the Netherlands and Europe,” he said.


Relief for government as Pakistan top court rejects 2022 ruling on lawmakers’ defection clause

Updated 03 October 2024
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Relief for government as Pakistan top court rejects 2022 ruling on lawmakers’ defection clause

  • Pakistan’s top court barred lawmakers in 2022 from voting against their parliamentary party’s lines
  • Ruling comes ahead of government’s move to table key constitutional amendments in parliament 

ISLAMABAD: Pakistan’s top court unanimously accepted a review petition against its 2022 judgment related to a defection clause in the constitution that barred lawmakers from voting against party lines in parliament, with the decision expected to bring major relief to the government as it plans to introduce a set of constitutional amendments in parliament. 

Pakistan’s top court ruled in May 2022 that votes cast by lawmakers opposed to their parliamentary party in four instances mentioned in the constitution’s Article 63-A would not be counted and the lawmaker found guilty of doing so could be disqualified from holding membership of parliament. These four instances include the elections of a prime minister and chief minister, a vote of confidence or no confidence, a constitutional amendment bill, and a money bill.

Pakistan’s ruling coalition government is planning on introducing a set of constitutional amendments in parliament that lawyers, opposition parties and independent experts allege are aimed at increasing the government’s power in making key judicial appointments and dealing with the defection of lawmakers during house votes. 

However, the government had deferred its move to table the amendments last month, admitting it did not have the required two-thirds majority in parliament required for their approval. Jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party has warned that if the Supreme Court struck down its 2022 ruling, it would pave the way for floor crossing in parliament. 

“I strongly condemn this, I just heard that the decision of [Article] 63-A has been issued,” former president and PTI leader Arif Alvi told reporters, shortly after a five-member bench of the apex court led by Chief Justice Qazi Faez Isa accepted the review petition. 

“What was the need for this? They just want to pass these amendments through this fake assembly which was rejected by even Maulana Fazl-ur-Rehman, which can’t even pass a law let alone an amendment,” he added.

‘UNCONSTITUTIONAL AND UNJUST’ 

Khan’s lawyer in the case Ali Zafar had objected to the formation of the five-member bench and sought a meeting with the former prime minister in prison. 

Khan’s PTI has accused the government of attempting to grant an extension in tenure to Isa, who is widely viewed to be aligned with the ruling coalition and in opposition to its chief rival, the PTI, through the constitutional amendments.

The government denies these allegations and says the amendments are aimed at providing speedy justice to thousands of litigants in the country. 

Zafar later boycotted the court’s proceedings on Thursday, saying the ruling would open the door for “horse-trading” in parliament. 

Pakistan’s coalition government has criticized the Supreme Court’s 2022 ruling, with Information Minister Attaullah Tarar saying last month that it was akin to rewriting the constitution. 

Tarar had argued that no institution has the right to interpret the constitution as it pleases. 

“The Supreme Court finally admits its previous ruling on Article 63-A was unconstitutional and unjust,” the ruling Pakistan Muslim League-Nawaz (PML-N) party wrote on social media platform X. 

“They have corrected the blunder made by selected judges.”


Punjab bans public gatherings in Lahore ahead of rally by ex-PM Khan’s party

Updated 03 October 2024
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Punjab bans public gatherings in Lahore ahead of rally by ex-PM Khan’s party

  • Khan’s PTI plans to protest against proposed constitutional amendments, demand his release from prison on Saturday
  • Protest demonstrations by Khan’s party in Mianwali and Faisalabad on Wednesday resulted in clashes between police and supporters

ISLAMABAD: The Punjab government announced on Thursday that it has banned public gatherings in the eastern city of Lahore for six days to maintain law and order, days before former prime minister Imran Khan’s party planned protest in the city. 

Khan’s Pakistan Tehreek-e-Insaf party plans to protest in Lahore on Saturday against the government’s proposed constitutional amendments, which the ruling coalition of Prime Minister Shehbaz Sharif denies are meant to suppress judicial independence, and also demand his release from prison. 

Section 144 is a legal provision that allows a ban on the gathering of more than four people on account of security threats. The Punjab government this week imposed the provision in Bahawalpur, Faisalabad and Mianwali cities in the province ahead of demonstrations by Khan’s Pakistan Tehreek-e-Insaf (PTI) party on Wednesday. 

Social media footage showed clashes breaking out between Khan supporters and police, who fired tear gas to disperse the crowd.

“The Punjab government has imposed Section 144 in Lahore for six days from today to Tuesday,” state broadcaster Radio Pakistan reported. 

The state media said that political gatherings, sit-ins, rallies, demonstrations, protests and similar activities are banned under the provision. 

“The decision was made to maintain law and order and to protect human lives and property,” the state broadcaster said. 

The PTI is scheduled to hold another demonstration at the Democracy Chowk (D-Chowk) in Pakistan’s capital on Friday. The public square is situated near key government buildings in Islamabad, making it a place where political demonstrations and protests are frequently held. 

PREVIOUS PTI PROTESTS

The garrison city of Rawalpindi, bordering the federal capital of Islamabad, remained tense last Saturday as police fired tear gas shells to disperse hundreds of Khan supporters ahead of a protest in the city to demand the release of Khan, who has been in jail since August last year on multiple charges that he says are politically motivated to keep him and his party out of politics.

After a PTI rally in Islamabad on Sept. 8, over a dozen legislators from the party were arrested on charges of violating an agreement based on which permission for the gathering was issued, including abiding by a time limit and supporters sticking to certain routes to reach the designated venue for the rally on Islamabad’s outskirts.

Khan’s party says the challenges in holding rallies are part of an over-year-long crackdown it has faced since protesters allegedly linked to the party attacked and damaged government and military installations on May 9, 2023, after the former premier’s brief arrest the same day in a land graft case.

Hundreds of PTI followers and leaders were arrested following the riots and many remain behind bars as they await trial. The military, which says Khan and his party were behind the attacks, has also initiated army court trials of at least 103 people accused of involvement in the violence.

Khan, who has been in jail since last August, was ousted from the PM’s office in 2022 in a parliamentary vote of no confidence after what is widely believed to be a falling out with Pakistan’s powerful military, which denies being involved in politics.


Pakistan extends ‘full’ support as Israel bans UN secretary-general from entering country

Updated 03 October 2024
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Pakistan extends ‘full’ support as Israel bans UN secretary-general from entering country

  • UN envoy commends Antonio Guterres for “principled and courageous stance on situation in Middle East”
  • Israel has declared Guterres ‘persona non grata’ for not condemning Iran over Tuesday missile strikes 

ISLAMABAD: Pakistan on Thursday condemned Israel for its “unjustified and slanderous” attacks on UN Secretary-General Antonio Guterres and its announcement that it had banned him from entering the country over his failure to condemn Iran’s missile attacks earlier this week. 

Iran on Tuesday launched a salvo of missiles at Israel it said wefe in retaliation for Israeli killings of militant leaders and aggression in Lebanon against the Iran-backed armed movement Hezbollah and in Gaza. Fears that Iran and the US would be drawn into a regional war had already risen with Israel’s intensifying assault on Lebanon in the past two weeks, including the start of a ground operation there on Monday, and its year-old conflict in the Gaza Strip.

Following the Iranian airstrikes, the UN chief had condemned the “broadening” Middle East conflict and slammed “escalation after escalation” in the region but did not name Iran directly. Israeli Foreign Minister Israel Katz lashed out at Guterres, saying someone who could not condemn Iran’s attack on Israel did not deserve to step foot on Israeli soil. He said the UN chief would be remembered as a “stain on the history of the UN for generations to come” for what he described as his support for militant groups. 

“Pakistan stands in full solidarity with the UN Secretary-General and commends his principled and courageous stance on the situation in the Middle East, particularly the atrocities in Gaza and the aggression against Lebanon,” Pakistan’s ambassador to the UN, Munir Akram, said in an interview with state news agency APP.

“We strongly condemn Israel’s unjustified and slanderous attacks against the UN Secretary-General and the UN, which is a pillar of world order. Insult and abuse is the weapon of aggressors and oppressors.”

US State Department Spokesperson Matthew Miller later stated the US believed Israel’s step to ban Guterres was “not productive at all” due to the UN’s role in the region. 

“One of the things we’ve always said that Israel needs to be cognizant of throughout this conflict is its standing in the world, and steps like this are not productive to improve its standing in the world,” Miller added.