ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif said on Sunday peaceful protests were a democratic right, but there should be “no tolerance” for violence, amid protests in Azad Kashmir for subsidized wheat flour and cheaper electricity.
The statement came a day after clashes erupted between police and supporters of the Jammu Kashmir Joint Awami Action Committee (JAAC) in various parts of the territory, resulting in the killing of a police officer and injuries to 90 others on both sides, according to officials.
The protests turned violent when police attempted to stop a rally headed for the Azad Kashmir capital of Muzaffarabad from Kotli and Poonch districts. The protesters are demanding electricity as per hydropower generation cost in Azad Kashmir, subsidized wheat flour, and an end to privileges enjoyed by the elite.
In his message on X, PM Sharif said he was “deeply concerned” over the situation in Azad Jammu and Kashmir (AJK) and had asked AJK PM Anwar-ul-Haq to hold talks with the protesters.
“Unfortunately, in situations of chaos and dissent there are always some who rush in to score political points,” he said. “While debate, discussion and peaceful protests are the beauties of democracy, there should be absolutely no tolerance for taking the law in one’s own hands and damaging government properties.”
Sharif urged all parties to resort to peaceful course of action for the resolution of their demands. “Despite best efforts of detractors, the matter will hopefully be settled soon,” he said.
Separately, the Azad Kashmir government on Sunday invited protesters for talks.
“The situation is currently peaceful and under control, and we are trying to settle issues through talks,” Abdul Majid Khan, a spokesperson of the Azad Kashmir government who is also its finance minister, told Arab News.
“We have invited the action committee to come and sit with us for dialogue on all their demands.”
Khan warned that no one would be allowed to take the law into their hands, emphasizing the government had exercised “significant restraint.”
He noted the government was providing wheat in Azad Kashmir at Rs3,100 [$11.16] per 40kg, which was already heavily subsidized and cheaper than in Pakistan’s most populous Punjab province, the main producer of the crop in the South Asian country.
The Himalayan territory of Kashmir has been divided between India and Pakistan since their independence from Britain in 1947. Both countries rule part of the territory, but claim it in full and have fought three wars over the disputed region.
The western portion of the larger Kashmir region is administered by Pakistan as a nominally self-governing entity.
Pakistan last year narrowly avoided a default on the payment of foreign debts when the International Monetary Fund and several friendly nations came to its rescue by giving it loans.
Pakistan’s monthly inflation rate at one point reached over 40 percent, but authorities say it had come down to 17 percent ahead of talks with the IMF for a new bailout. Islamabad plans to get at least $6 billion from the lender when it reaches a deal expected in the coming months.
Pakistan PM says ‘no tolerance’ for violence amid Azad Kashmir protests over price hikes
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Pakistan PM says ‘no tolerance’ for violence amid Azad Kashmir protests over price hikes
- Clashes erupted in parts of Azad Kashmir Saturday as protesters demanded cheaper wheat flour, electricity
- The violence resulted in the killing of a police officer and injuries to 90 others on both sides, officials say
Pakistan launches privatization process for five power distributors under IMF reforms
- Power-sector losses have pushed circular debt above $9 billion, official documents show
- Move is tied to IMF and World Bank conditions aimed at cutting subsidies and fiscal risk
KARACHI: Pakistan has appointed financial advisers and launched sell-side due diligence for the privatization of five electricity distribution companies, marking a long-awaited step in power-sector reforms tied to International Monetary Fund (IMF) and World Bank programs, according to official documents shared with media on Monday.
The five companies, namely Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), supply electricity to tens of millions of customers and have long been a major source of financial losses for the state.
Pakistan’s power sector has accumulated more than Rs2.6 trillion (about $9.3 billion) in circular debt as of mid-2025, driven largely by distribution losses, electricity theft and weak bill recovery, according to official government data cited in the documents. The shortfall has repeatedly forced the government to provide subsidies, adding pressure to public finances in an economy under IMF supervision.
“The objective is to reduce losses, improve efficiency and limit the government’s fiscal exposure by transferring electricity distribution operations to the private sector,” the documents said, adding that sell-side due diligence for five distribution companies is under way as a prerequisite for investor engagement.
Two utilities, the Quetta Electric Supply Company and Tribal Areas Electric Supply Company, are excluded from the current privatization phase due to security and structural constraints, the documents said.
Power-sector reform is a central pillar of Pakistan’s IMF bailout program, under which Islamabad has committed to restructuring state-owned enterprises, improving governance and reducing budgetary support. The World Bank has also linked future energy-sector financing to progress on structural reforms.
Electricity distribution companies in Pakistan routinely report losses exceeding 20 percent of supplied power, far above international benchmarks, according to official figures. These inefficiencies have been a persistent obstacle to economic growth, investment and reliable power supply.
Previous attempts to privatize power distributors have stalled amid political resistance, labor union opposition and concerns over tariff increases. While officials have not announced a timeline for completing transactions, the launch of due diligence marks the most concrete step taken in years. International lenders and investors will now be closely watching whether Pakistan can translate this phase into completed sales, a key test of its ability to deliver on IMF-backed reforms.
In a related development in Pakistan’s privatization agenda, the government last month concluded the long-delayed sale of a 75 percent stake in national flag carrier Pakistan International Airlines (PIA) in a publicly televised auction. A consortium led by the Arif Habib Group emerged as the highest bidder with a Rs135 billion ($482 million) offer for the controlling stake, in a transaction officials have said will end decades of state-funded bailouts and inject fresh capital into the loss-making airline.
