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Pakistan’s new government: Who will be the key players?

Pakistan's former Prime Minister Nawaz Sharif (C) and leader of the Pakistan Muslim League (PML) party, along with his younger brother and ex-PM Shehbaz Sharif (R) and his daughter Maryam Nawaz (L) attend a gathering with supporters in Lahore on February 9, 2024, a day after Pakistan's national elections. (AFP)
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Updated 14 February 2024
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Pakistan’s new government: Who will be the key players?

  • Nawaz Sharif has opted not to be prime minister and nominated brother Shehnaz as PM candidate of coalition government 
  • Asif Ali Zardari widely expected to become president, Maryam Nawaz Sharif could be first women chief minister of Punjab
Updated 14 February 2024
WAJAHAT ALI

ISLAMABAD: Following days of political uncertainty after general elections on Feb. 8, the party of Pakistan’s former prime minister Nawaz Sharif and its allies have announced they will jointly form a coalition government.
According to official results, the allied parties together hold 152 general seats in the National Assembly and are expected to surpass the simple majority mark of 169 members after securing their share of reserved seats. Along with the 266 directly elected seats in the National Assembly, parties are allocated 70 reserved seats — 60 for women, 10 for non-Muslims — in proportion to the number of seats won. This completes the National Assembly’s total 336 seats. Independents are not eligible for reserved seats.
The specifics of the new government will emerge in the coming days but it is clear that former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party will be in opposition, despite candidates backed by it winning the largest number of seats, 92, in the National Assembly.
The following people are expected to play a key role in the next administration:
Nawaz Sharif
Having buried a long-running feud with the country’s powerful military, most independent analysts believed three-time former prime minister Nawaz Sharif was the front-runner to lead the country. 
However, after his Pakistan Muslim League-Nawaz (PML-N) did not win enough seats to form a simple majority in parliament — it got 79 seats — it announced it would form a coalition government with allies, including the Pakistan Peoples Party (PPP), which got 54 seats. Sharif stepped aside and his younger brother Shehbaz was announced as the coalition set-up’s prime minister candidate. Analysts say the decision reflects Nawaz’s reluctance to navigate the complexities of a coalition government with a limited mandate for his PML-N.
However, despite stepping back from the top slot, Sharif, as the PML-N’s founding leader and a key figure in the coalition, is expected to wield significant influence in shaping policies and guiding the coalition’s direction from behind the scenes. 




Former Prime Minister of Pakistan Nawaz Sharif speaks at the party office of Pakistan Muslim League (N), at Model Town in Lahore, Pakistan, February 9, 2024. (REUTERS)

“If it is being deduced that Nawaz Sharif is avoiding politics by not accepting the post of Prime Minister, then there is no truth in it. In the next 5 years, he will not only do vigorous politics, but will patronize his governments in the Federation and Punjab, God willing,” his daughter Maryam Nawaz Sharif, the candidate for chief minister Punjab, said on X.
“In the three governments of Nawaz Sharif, the people gave a clear majority and he has made it clear in his election speeches that he will not be a part of any coalition government. Those who are devoted to Nawaz Sharif’s temperament know the principled stand of Nawaz Sharif. Shehbaz Sharif [Sharif’s younger brother] and I are his soldiers, bound by his orders and will work under his leadership and supervision.”

The 74-year-old chief of the PML-N returned from a four-year self-imposed exile in the United Kingdom late last year to lead his party in elections. His convictions for corruption — which he denies — and a lifetime ban from politics were overturned by courts after his return.
Shehbaz Sharif
Shehbaz Sharif, 72, is the younger brother of Nawaz Sharif, and led a coalition government for 16 months following the ouster of Imran Khan in 2022 until parliament was dissolved and a caretaker government took over in August to prepare for national elections.




Pakistan's former Prime Minister and leader of the Pakistan Muslim League-Nawaz (PML-N) party Shehbaz Sharif speaks during a press conference in Lahore on February 13, 2024. (AFP)

He has previously served multiple times as chief minister of Punjab, Pakistan’s most populous province, cementing his reputation as an efficient administrator. He has worked closely with China on Beijing-funded projects in the last decade and helped Pakistan avert a financial crisis last year by striking a deal with the International Monetary Fund after tenuous, delayed negotiations for another bailout package.
Shehbaz’s expected return to the prime ministerial role may involve balancing the demands of coalition partners and ensuring cohesive governance while also leveraging his diplomatic skills and administrative experience to foster unity and progress within the multiparty setup. He will take over a country faced with a crippling economic crisis, record high inflation, slow growth and a surge in militancy.
Asif Ali Zardari
Asif Ali Zardari, the co-chairman of the Pakistan Peoples Party (PPP) and the widower of the late prime minister Benazir Bhutto, is widely expected to become the new president. 




Pakistan's former President Asif Ali Zardari (3R) of Pakistan Peoples Party (PPP) casts his ballot to vote during the country's national elections at a polling station in NawabShah of Sindh province on February 8, 2024. (AFP)

Zardari, previously behind the scenes of Pakistani politics, came into the political centerstage after the assassination of his wife in 2007, leading him to the presidency of Pakistan from 2008-2013. Known for political maneuvering, he is expected to play a pivotal role in the new set-up and ensure that the PPP party’s interests are well-represented.
Maryam Nawaz Sharif
Maryam Nawaz Sharif, the daughter of Nawaz Sharif, plays an influential role in the PML-N party, and has been presented by her father as his political heir-apparent. She is senior vice president of the party.




Maryam Nawaz, the daughter of Pakistan's former Prime Minister and leader of Pakistan Muslim League Nawaz (PMLN) party Nawaz Sharif waves to her supporters during an election campaign rally at Mansehra in Khyber Pakhtunkhwa province on January 22, 2024. (AFP)

She is now set to chart a new course in her political career, potentially becoming the first woman chief minister of Punjab, arguably the most important political appointment in the country after the PM. However, Maryam’s lack of prior administrative experience presents challenges, but analysts say these can be overcome with the support of an experienced advisory team, which includes veteran politicians from the Sharif dynasty, including her father and uncle. 
Bilawal Bhutto-Zardari
Bilawal Bhutto-Zardari, the 35-year-old son of Benazir Bhutto and Asif Ali Zardari, was the country’s foreign minister until a caretaker government took over late last year. He became co-chairperson of the Pakistan Peoples Party in 2007 when he was still a teenager after his mother was assassinated in a gun and bomb attack at a rally.




Bilawal-Bhutto Zardari, Chairman of Pakistan People's Party speaks during a press conference regarding parliamentary elections, in Islamabad on February 13, 2024. (AP)

Bhutto-Zardari ran one of the most prominent campaigns in Feb. 8 elections, appearing throughout the country, saying he was focusing the country’s huge youth population and addressing impacts of climate change, which have wreaked havoc in his southern Sindh province. His adept handling of diplomatic affairs as foreign minister has bolstered his reputation as a capable leader and he is expected to be a major player in the new coalition.

Topics: elections 2024 Nawaz Sharif Shehbaz Sharif Maryam Nawaz Sharif Bilawal Bhutto-Zardari

Pakistan working to issue domestic green sukuk bonds by December — finance minister

Updated 10 May 2024
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Pakistan working to issue domestic green sukuk bonds by December — finance minister

  • Proceeds of green bonds used to finance climate change mitigation, adaptation and environmental projects
  • According to recent World Bank study, Pakistan faces potential annual GDP losses of up to 1 percent due to climate-related risks
Updated 10 May 2024
KHURSHID AHMED   

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Friday the Pakistan government was working to issue domestic green sukuk bonds by December 2024 to fund environmentally sustainable infrastructure projects. 

The green sukuk is a Shariah-compliant interest-free bond in which instead of interest, investors receive an agreed share of the profits generated by the pool of underlying assets, which are partially owned by investors. Proceeds of green bonds are used to finance climate change mitigation and adaptation, and environmental projects. 

“The government is working on issuing domestic green sukuk bonds by December 2024 to finance sustainable development projects,” Aurangzeb said as he delivered an online keynote speech at the UK-Pakistan Green Investment Forum, organized by the British High Commission in Pakistan. 

In his address, the finance minister emphasized Pakistan’s commitment to addressing climate change and promoting green investment opportunities, and highlighted Pakistan’s vulnerability to the adverse effects of climate change, despite its low contribution to global greenhouse gas emissions. 

According to a recent World Bank study, Pakistan faces potential annual GDP losses of up to 1 percent due to climate-related risks.

Acknowledging a significant funding gap in adaptation, resilience, and mitigation projects and the need for a better portfolio of green investment projects, the minister emphasized Pakistan’s reliance on the private sector for support in this regard and highlighted the government’s efforts to enhance investor confidence in bankable green opportunities. 

He also outlined Pakistan’s plans to utilize innovative financing instruments like green sukuk to raise international climate finance. 

Pakistan ranks among the top 10 countries worldwide most affected by climate change and natural disasters.

Topics: domestic green sukuk bonds Shariah-compliant interest-free bond

Pakistani satellite relays first images of moon from lunar orbit

Updated 10 May 2024
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Pakistani satellite relays first images of moon from lunar orbit

  • ICUBE-Qamar was launched aboard China’s Chang’e-6 probe on May 3
  • The Chinese probe is tasked with landing on the far side of the moon
Updated 10 May 2024
KASHIF IMRAN

ISLAMABAD: Pakistan’s first satellite, ICUBE-Qamar (ICUBE-Q), has successfully beamed back first images of the moon, the Institute of Space Technology (IST) in Islamabad said on Friday, days after it entered the lunar orbit.
The ICUBE-Qamar satellite carries two optical cameras to image the lunar surface and weighs around 7kg. Cubesats are tiny box-shaped satellites that are mainly launched into low Earth orbit to observe the Earth, test new communications technology, or perform miniature experiments.
The satellite was launched aboard China’s Chang’e-6 probe on May 3. The Chinese probe is tasked with landing on the far side of the moon, which perpetually faces away from the Earth, after which it will retrieve and return samples. China is the first country to make such an ambitious attempt.
“Exciting news from ICUBE-Q! Our satellite has captured its first images, and they’re stunning,” IST, which contributed to the satellite’s development, wrote on X.
“Check out these shots where you can see both the moon and the sun in some of the images. Stay tuned for more updates from ICUBE-Q!“

Soon after the satellite entered the lunar orbit at 1:14pm Pakistan time on Wednesday, Dr. Khurram Khurshid, the head of the electrical engineering and computer science department at the IST and a co-lead on the project, said initial tests revealed there were no complications with the cubesat’s system.
The development meant Pakistan was officially in an exclusive club of countries that had conducted deep space missions, the official added.
Around 100 students from the IST contributed to developing the satellite. Pakistan’s proposal to build the satellite was accepted by the China National Space Agency (CNSA) from plans submitted by eight member states of the Asia-Pacific Space Cooperation Organization (APSCO).
The design, development, and qualification of the ICUBE-Q satellite were spearheaded by faculty members and students of the IST in collaboration with China’s Shanghai Jiao Tong University (SJTU), with support from Pakistan’s National Space Agency, SUPARCO.

 

Pakistan, Gulf states in final stages of talks on Free Trade Agreement — PM Sharif

Updated 10 May 2024
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Pakistan, Gulf states in final stages of talks on Free Trade Agreement — PM Sharif

  • Pakistan and the Gulf Cooperation Council signed a ‘preliminary’ FTA in September last year
  • The development comes amid Pakistan efforts to boost trade to stabilize dwindling economy
Updated 10 May 2024
Arab News Pakistan

ISLAMABAD: Pakistan and the Gulf states are in final stages of discussions regarding a Free Trade Agreement (FTA) between the two sides, Pakistani state media reported on Friday.
Pakistan and the Gulf Cooperation Council (GCC) signed a “preliminary” FTA in September last year, with the country’s commerce ministry calling it a “milestone in both sides’ economic cooperation.” The GCC also said the agreement represented “an important turning point in cooperation.”
In 2022, both sides held technical-level talks to examine the possibility of an FTA that could help Pakistan boost exports to the six-nation bloc, which includes Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait.
Presiding over a meeting on the trade sector, Prime Minister Shehbaz Sharif asked the authorities to formulate trade policies with the core objective of facilitating the country’s business sector, the state-run APP news agency reported.
“In the meeting, the prime minister was told that the discussion on the Free Trade Agreement between Pakistan and the Gulf states was in the final stage and transit trade agreements with Uzbekistan and Tajikistan had already been materialized,” the report read.
During a recent Pakistan-Saudi Business Conference, according to the report, around 450 business-to-business meetings were held and the volume of e-commerce trade was witnessing a constant increase, with the enlisting of over 3,000 firms on the Pakistan Trade Portal.
Pakistan has welcomed numerous foreign officials and business delegations in recent weeks, encouraging local partnerships and asking them to explore investment opportunities across various economic sectors.
A Saudi business delegation, consisting of senior representatives from nearly 35 companies, recently concluded its visit to Pakistan, during which the delegates held several business-to-business meetings. Additionally, Prime Minister Shehbaz Sharif met with a group of Japanese industrialists, urging them to invest in Pakistan’s nascent electric car industry.
The country is also expecting the visit of Saudi Crown Prince Mohammed bin Salman later this month, hoping it would bring several billion dollars in investment.
During the meeting on the trade sector, the prime minister called for steps to promote exports of non-traditional goods and instructed authorities for immediate payment of certified duty drawbacks to exporters, according to the APP report.
He instructed officials to ensure consultation with them during the policy-making and implement the deletion policy to uplift the auto sector.
“Prime Minister Shehbaz directed the relevant ministry to devise a comprehensive strategy to scrutinize the performance of trade and investment officers posted in Pakistan’s missions abroad by rewarding the good performers and removing the incompetent ones,” the report read further.
The development comes as Pakistan seeks a fresh bailout from the International Monetary Fund (IMF) to stabilize its dwindling economy after completing its $3 billion IMF bailout deal that helped avert a default last year.
The South Asian country currently has Free Trade Agreements with China, Malaysia, and Sri Lanka, but it still needs to increase exports to other trade destinations.

Historic cuts in Pakistan car prices a ‘marketing stunt’ amid slow demand — experts

Updated 10 May 2024
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Historic cuts in Pakistan car prices a ‘marketing stunt’ amid slow demand — experts

  • Lucky Motor Company, which assembles KIA cars in Pakistan, and Pak Suzuki Motors recently reduced Stonic, Swift prices by up to Rs1.5 million
  • Experts say the automakers wanted to “test” the market through the stunt and the benefit would not end customers as it was opened for few days
Updated 10 May 2024
KHURSHID AHMED    & KASHIF IMRAN

KARACHI: The recent historic cuts in prices of multiple car models were a “marketing stunt” by automakers in Pakistan, experts and dealers said on Friday, attributing it to slow demand in the South Asian country.
Lucky Motor Company, which assembles KIA cars in Pakistan, reduced the price of KIA Stonic by as much as Rs1,500,000, followed by a cut in Swift price by up to Rs710,000.
The rate cuts by Kia and Pak Suzuki Motors came on the heels of a reduction in prices of Toyota Yaris by Rs133,000 and Honda City by Rs140,000 respectively in March.
While KIA and Pak Suzuki Motors have said they received an “overwhelming” to the price drops, experts believe it to be a marketing stunt to help struggling models fare better in the Pakistani market.
“They (LMC) played a game because they had about 300-350 (KIA Stonic) cars lying dead which were not sold,” Hajji Muhammad Shahzad, chairman of All Pakistan Motor Dealers Association (APMDA), told Arab News.
“They threw [them] in the market and stopped the booking.”
Shahzad said the price cut by the LMC generated interest among investors who booked the car instead of “genuine buyers,” noting that the car would come with around Rs500,000 own money as well.
Mashood Ali Khan, an auto industry expert, believed that price plays a key role in the auto sector, because of the current economic situation and prevailing high inflation. He said the LMC wanted to “test” the market.
“The people who have booked, maybe I am wrong, but I think they are mostly the investors,” Khan told Arab News. “It could not reach the end consumers as it was opened for two days.”
Reached for comment, LMC Chief Executive Officer Muhammad Faisal said they corrected the KIA Stonic price to help it compete with sedan cars available in Pakistan and “took the hit” themselves, though the automaker didn’t anticipate the overwhelming response to the price cut.
“We tried to bring it to the price point at which competing sedans are available,” Faisal told Arab News. “When we brought it to this price point, the response from the market was unbelievable and better than our expectations.”
Though a Pak Suzuki Motor official did not respond to Arab News query about the cut in Swift price, the company said in a circular it had received an “overwhelming” response and was now introducing “stylish combinations” of a two-tone exterior.
Shahzad, however, said Swift did not get a “good response” despite the price cut. 
A decrease in car prices was already expected as the Pakistani government notified in March it would charge 25 percent sales tax on locally assembled cars, if their invoice price exceeded Rs4 million.
Car sales declined in Pakistan by 38 percent during nine months of the current fiscal year, which began on July 1, amid a declining trend in auto financing, historic high interest rate, soaring prices and shrinking purchasing power of consumers, according to a research report by the Karachi-based Darson Securities.
Asked about the delivery of vehicles to customers, LMC CEO Faisal said the company had not delivered the newly booked Stonic cars and was still filtering buyers.
“We have just made a commitment that we will deliver it now,” he told Arab News. “We have ensured that we will book one car per CNIC (computerized national identity card), we are filtering the investors, we are giving preference to genuine customers, so that we can deliver it soon.”
Faisal said the automaker was evaluating its stock position after the current response and it would resume bookings, however, the company would be giving delivery commitments for October onwards.
Car prices have increased in Pakistan by around 40 percent in the last two years and the costs of vehicles remain high despite the recent cuts, according to car dealers.
Khan, the auto sector expert, called for localization of auto parts and a 10-year policy to promote auto industrialization to make affordable cars in Pakistan.

Topics: Pakistan economy Automobile industry

Pakistan seeks Beijing’s support for completion of 1,800MW hydropower projects

Updated 10 May 2024
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Pakistan seeks Beijing’s support for completion of 1,800MW hydropower projects

  • The Kohala and Azad Pattan hydropower projects have reportedly been delayed for past several months
  • Beijing is investing more than $65 billion in energy and infrastructure projects in Pakistan as part of CPEC
Updated 10 May 2024
Arab News Pakistan

ISLAMABAD: Pakistan’s Planning Minister Ahsan Iqbal has sought Chinese support for early completion of two hydropower projects, Pakistani state media reported on Thursday, amid the minister’s visit to China.
The 1,124 megawatts (MW) Kohala and 700MW Azad Pattan hydropower projects have been delayed for the past several months, according to media reports.
In his meeting with National Energy Administration of China’s Chairman Zhang Jianghua, Iqbal said his government intended to diversify energy mix toward clean and renewable energy.
“In that context, Minister for Planning sought Chinese continued cooperation for the early implementation of the Azad Pattan and Kohala Hydro Power Projects,” the state-run Radio Pakistan broadcaster reported.
Beijing is investing over $65 billion in energy and infrastructure projects in Pakistan as part of the China-Pakistan Economic Corridor (CPEC), a major segment of Beijing’s Belt and Road infrastructure initiative, which will connect China to the Arabian Sea and help Islamabad expand and modernize its economy through a network of roads, railways, pipelines and ports in Pakistan.
During the meeting, the two sides also discussed new initiatives to improve energy management system, aimed at reducing theft and line losses, according to the report.
“We intend to reform energy sector to be efficient and affordable in order to provide electricity to consumers and businesses at cheaper rates by cutting line losses and power theft,” Iqbal was quoted as saying.
The meeting was part of Iqbal’s engagements in Beijing to prepare for the next round of Joint Coordination Committee meeting as well as for the preparation of an upcoming visit of Prime Minister Shehbaz Sharif to China.
Earlier, the minister met officials of top Chinese companies, including Power China, TBEA Co. Ltd., and Electric Power Planning and Engineering Institute, that specialize in power transmission and distribution.

Topics: Pakistan China Ties

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