For the first time, Khyber Pakhtunkhwa unveils $6.3 billion budget ahead of federal government

Newly elected members take oath at the provincial legislature of Pakistan's Khyber Pakhtunkhwa (KP) Assembly in Peshawar on February 28, 2024. (AFP/File)
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Updated 24 May 2024
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For the first time, Khyber Pakhtunkhwa unveils $6.3 billion budget ahead of federal government

  • Critics say the move will further deepen the trust deficit between the provincial and federal authorities
  • KP finance minister says the province did not get its due share in revenue, faced $499.08 million deficit

PESHAWAR: For the first time in history, Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province on Friday announced its budget of Rs1,754 billion ($6.3 billion) before the federal government, with one of its senior officials justifying the move on the basis of provincial autonomy.

The KP government is led by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, whose administration in Islamabad was ousted from power following a parliamentary no-confidence vote in April 2022.

Since then, its leadership has struggled to stay politically afloat, with many of its members, including Khan, being incarcerated for several months in multiple legal cases. The PTI is now in the opposition at the center, where its lawmakers frequently clash with members of the treasury benches in a deeply polarized environment.

Speaking to Arab News, KP finance minister’s media officer, Anwar Khan Khattak, said a province could present its own budget after the 18th amendment, which ensures autonomy to all federating units.

“We are not in competition either with provinces or the federal government,” he said. “We have our own exclusivity in terms of governance. That’s why we took a lead in presenting our budget.”

“A province only needs the federal government’s assistance in achieving tax targets,” he added.

However, Asmat Shah, a Peshawar-based journalist and expert on economic affairs, said provinces presented their budget after the federal government, saying the KP government’s decision to do the opposite would only widen the trust deficit with the administration in Islamabad.

“The only logic I see behind KP’s move to present the budget before the federal government is that it wants to demonstrate efficiency to its voters,” he maintained. “Secondly, the PTI-led government wants to show the masses it is not dependent on the federal authorities while making critical decisions.”

Criticizing the budget itself, Shah said that the provincial government should have allocated more funds for security, education and health sectors, which were badly affected due to years of militancy in the region.

Earlier, KP’s finance minister Aftab Alam unveiled the budget in the provincial assembly.

“The total outlay of the budget is Rs1,754 billion,” he said. “Mr. Speaker, development expenditures have a lead role for people’s prosperity and development of the province. Development expenditure not only enhances people’s life standard but creates job opportunities to move the economy in tandem. Rs416.30 billion ($1.49 billion) has been allocated for development expenditures for the fiscal budget 2024-25.”

Alam also criticized the federal authorities for not providing the province’s due share in revenue.

“Mr. Speaker, it is to be mentioned that following the merger of erstwhile tribal districts into KP, the province has a total Rs262 billion ($940.72 million) annual share in the NFC [National Finance Commission] award but the province has received only Rs123 billion ($441.64 million),” he added. “Keeping in view this, KP is facing an annual deficit of Rs139 billion ($499.08 million).”


Pakistan says ‘deeply values’ cooperation with Afghanistan as ties sour over deportations, militancy 

Updated 12 sec ago
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Pakistan says ‘deeply values’ cooperation with Afghanistan as ties sour over deportations, militancy 

  • Pakistan says Kabul not doing enough to tackle militant groups using Afghan territory to target Pakistan, which it denies
  • Over 600,000 Afghans expelled since November last year when Islamabad launched deportation drive against illegal foreigners 

ISLAMABAD: Pakistani Federal Minister for States and Frontier Regions, Amir Muqam, on Friday discussed bilateral ties with Charge d’Affaires of Afghanistan, Sardar Ahmed Khan Shakib, and said Pakistan “deeply valued” its cooperation with the neighbor on addressing the issue of Afghan refugees. 
Relations between Islamabad and Kabul have soured in recent months amid a surge in militant attacks that Pakistan blames on Afghanistan, saying its Taliban rulers were not doing enough to tackle militant groups using its territory to target Pakistan, which they deny. 
The Pakistani Taliban have stepped up attacks against Pakistan security forces in recent months, with daily assaults on army and paramilitary posts and targeted killings of police and government officials.
“Pakistan deeply values its longstanding friendship and cooperation with Afghanistan particularly in addressing issues concerning Afghan refugees,” Radio Pakistan reported Muqam as telling Shakib who called on him in Islamabad. 
The statement said Shakib thanked Pakistan for extending the deadline of UNHCR-issued Proof of Registration (PoR) cards for almost 1.5 million Afghan refugees for one year.
Islamabad launched a deportation drive last year against illegal foreigners residing in the country after a spate of suicide bombings which the Pakistan government, without providing evidence, said were carried out by Afghan nationals. Islamabad has also blamed them for smuggling, militant violence and other crimes. 
A cash-strapped Pakistan navigating record inflation, alongside a tough International Monetary Fund bailout program last year, had also said undocumented migrants had drained its resources for decades.
Until the government initiated the expulsion drive last year, Pakistan was home to over four million Afghan migrants and refugees out of which around 1.7 million were undocumented, as per government figures. 
Afghans make up the largest portion of migrants, many of whom came after the Taliban took over Kabul in 2021, but a large number have been present since the 1979 Soviet invasion of Afghanistan.
Islamabad insists the deportation drive is not aimed specifically at Afghans but at all those living illegally in Pakistan. 
In October 2023, Pakistan announced phase one of the “Illegal Foreigners’ Repatriation Plan” with a 30-day deadline for “undocumented” aliens to leave the country or be subject to deportation, putting 1.4 million Afghan refugees at risk. Over 600,000 Afghans have been expelled under this phase.
In phase two, Afghans holding Pakistan-issued Afghan citizenship cards (ACCs) will be expelled while phase three is expected to target those with UNHCR-issued PoR cards.


Major victory for ex-PM Khan as Pakistan top court rules party eligible for reserved seats

Updated 34 min 48 sec ago
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Major victory for ex-PM Khan as Pakistan top court rules party eligible for reserved seats

  • Khan’s PTI was denied its share of 70 reserved seats which were allotted to parties part of PM Sharif-led ruling coalition
  • Supreme Court says the PTI was and is a political party and eligible for reserved seats for women and minorities

ISLAMABAD: Pakistan’s top court on Friday delivered a landmark verdict saying the Pakistan Tehreek-e-Insaf (PTI) party of jailed former Prime Minister Imran Khan was eligible for reserved seats in parliament, mounting pressure on the fragile ruling coalition of premier Shehbaz Sharif.
PTI candidates contested the Feb. 8 general elections as independents after the party was barred from the polls and though these independents won the most seats, 93, the election commission ruled they were not entitled to their share of 70 seats reserved for women and minorities since these were meant for political parties only. The seats were then allotted to other parties, mostly from those in Sharif’s ruling coalition.
In Pakistan, parties are allocated 70 reserved seats — 60 for women, 10 for non-Muslims — in proportion to the number of seats won in general elections. This completes the National Assembly’s total 336 seats. A simple majority in Pakistan’s parliament is 169 out of 336 seats.
In March, both the ECP and Peshawar High Court in separate rulings said the independents were not eligible for the reserved seats, dealing a blow to the embattled PTI’s governing prospects and proving to be a major setback for Khan, who has been in jail since last August. The verdicts were subsequently overruled by the Supreme Court, which has since last month been hearing a set of petitions on the issue.
On Friday, the Supreme Court set aside the Peshawar High Court verdict and said the ECP order declaring the PTI ineligible for reserved seats was “ultra vires of the constitution, without lawful authority and of no legal effect.”
“PTI shall be eligible for women and ministries reserved seats in parliament,” Chief Justice Qazi Faez Isa said as he read the verdict in one of the petitions filed by the PTI-backed bloc, calling on the ECP to recalculate the number of reserved seats Khan’s party was entitled to.
PTI’s Syed Shibli Faraz, currently serving as the leader of the opposition in the Senate, said this was a “historic” day in Pakistani politics.
“Heartiest congratulations firstly to the Pakistani public and their leader Imran Khan,” Faraz told reporters after the court ruling was announced.
The PTI is currently entitled to around 23 reserved seats, which does not affect the parliamentary majority of the Sharif-led coalition government.
The verdict also bolsters the political position of Khan’s supporters, whose rallying cry has been that the election commission and a pro-military caretaker government that oversaw the polls indulged in electoral fraud to deprive it of a victory. The ECP denies this.
“PTI WAS AND IS A PARTY”
All candidates from Khan’s PTI party were forced to contest the February polls as independents after the party was stripped of its election symbol of the cricket bat by the ECP on the technical grounds that it did not hold intra-party elections, a prerequisite for any party to take part in polls.
After the election, the PTI-backed candidates were forced to join Sunni Ittehad Council (SIC) party to claim a share of 70 reserved seats as independents are not eligible for the extra seats.
“It is declared that lack of denial of an election symbol does not in any way affect the right of a political party to participate in an election,” said the court order in one of the PTI petitions, which was supported by eight judges and opposed by five of the 13-member full court bench. “The Pakistan Tehreek-i-Insaf, PTI, was and is a party.”
The order said elected members of the PTI could not be declared independents or candidates of the SIC and gave the PTI 15 days to submit its list of candidates entitled for reserved seats to the election commission.
Addressing a press conference, Law Minister Azam Nazeer Tarar said the government would wait for the detailed judgment to decide on its course of action, but pointed out that the petitions had been filed by the SIC but “relief” had been given by the court to the PTI, which did not file the pleas.
“A lot of confusion and questions has been born from this judgment,” he told reporters. “A situation has been created in which there is little clarity.”
In a statement sent to media, the PTI said 86 PTI-backed returned candidates in the National Assembly and 107 in the Punjab Assembly, 91 in the Khyber Pakhtunkhwa Assembly and 9 in the Sindh Assembly “are entitled to be counted for the purpose of election to the reserved seats on the basis of proportional representation.” It is expected that the PTI could get up to 23 reserved seats after Friday’s judgment.
PM Sharif formed a weak coalition with other parties after the Feb. 8 general elections produced a hung parliament.
Sharif’s PML-N party’s 79 and the PPP’s 54 seats together made a simple majority in parliament to form a government at the center and also roped in smaller parties in the coalition.


PM calls for restructuring Pakistan wheat board weeks after import crisis protests

Updated 12 July 2024
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PM calls for restructuring Pakistan wheat board weeks after import crisis protests

  • Wheat has nine percent share in Pakistan’s agriculture sector and contributes 2.2 percent of GDP 
  • Pakistan saw weeks of protests by farmers demanding government stop wheat imports that had flooded market

ISLAMABAD: Prime Minister Shehbaz Sharif has called for the restructuring of the country’s wheat board and steps to enhance production of wheat and other crops, his office said on Friday, weeks after farmer protests over wheat imports. 
Pakistan saw weeks of protests this year by farmers in Punjab, the country’s largest province and “bread basket,” who demanded the government stop wheat imports that had flooded the market at a time when they expected bumper crops.
Pakistan’s wheat production during 2023-24 stood at 31.4 million tons as compared to 28.2 million tons last year, posting a growth of 11.6 percent. According to official data, the country had over 36 million tons of wheat stock by June, including carry-forward stock.
Wheat has a 9 percent share in Pakistan’s agriculture and contributes 2.2 percent of the GDP and is harvested in Pakistan from April to June, with peak vegetation development occurring between late March and early February.
Sharif, while presiding over a meeting of officials of the national food security ministry and other bodies, issued directives to include representatives of the Land Information and Management System and the Space & Upper Atmosphere Research Commission (SUPARCO) in the wheat board.
“Farmer representatives should be included in the wheat board,” Sharif was quoted as saying in a statement issued by his office.
The prime minister urged authorities to devise an alternate strategy to purchase wheat and consult Gilgit-Baltistan, Azad Kashmir and provincial governments in this regard.
During earlier protests, farmers had said the import of wheat in the second half of 2023 and the first three months of this year had resulted in excess amounts of the commodity in the country, leading to reduced prices. 
Official data shows Pakistan spent over $1 billion to import 3.5 million tons of wheat from July 2023 till May 2024.
Agriculture is one of the most significant income sectors in Pakistan, making up nearly 23 percent of the GDP of the country.


‘We can’t wait another year’: disaster-hit nations call for climate aid

Updated 12 July 2024
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‘We can’t wait another year’: disaster-hit nations call for climate aid

  • This year has witnessed a string of catastrophes on multiple continents, from floods and landslides to heatwaves and wildfires
  • Unprecedented flooding in Pakistan in 2022 killed over 1,7000, caused more than $30 billion in damages and economic losses

PARIS: Countries on the frontlines of climate change have warned they cannot wait another year for long-sought aid to recover from disasters as floods and hurricanes wreak havoc across the globe.

The appeal came during a meeting of the “loss and damage” fund that will conclude Friday amid concerns it is unlikely to be able to approve climate aid until 2025.

“We cannot wait until the end of 2025 for the first funds to get out the door,” Adao Soares Barbosa, a board member from East Timor and a long-standing negotiator for the world’s poorest nations, told AFP.

“Loss and damage isn’t waiting for us.”

Nearly 200 nations agreed at the UN COP28 summit last November to launch a fund responsible for distributing aid to developing countries to rebuild in the wake of climate disasters.

That historic moment has given way to complex negotiations to finalize the fund’s design, which some countries worry will not move at a pace or scale that matches the tempo of extreme-weather disasters afflicting their people.

“The urgency of needs of vulnerable countries and communities cannot be left until we have every hair in place for this fund,” said Barbosa.

Damage bills for climate disasters can run into the billions and there is barely enough cash set aside for loss and damage at present to cover just one such event, experts say.

This year has witnessed a string of catastrophes on multiple continents, from floods and landslides to heatwaves and wildfires.

Delegates met in South Korea for the second meeting of the loss and damage fund this week as Hurricane Beryl left a trail of destruction across the Caribbean and North America.

The “massive” destruction witnessed in recent weeks “puts immense pressure on us to deliver on our work,” Richard Sherman, the South African co-chair of the board steering the negotiations, told the meeting.

The fund said it wanted money approved “as soon as possible, but realistically by mid-2025,” according to an official document seen by AFP.

In an appeal for faster action, Elizabeth Thompson, a board member from Barbados, said Hurricane Beryl alone had caused “apocalyptic” damage worth “multiple billion dollars.”

“In five islands of the Grenadines... 90 percent of the housing is gone... Houses look like packs of cards and strips of wood, roofs are gone, trees are gone, there is no food, there is no water, there is no power,” she said.

“We cannot keep talking while people live and die in a crisis that they do not cause.”

Thompson said the fund needed to reflect “the urgency and the scale required to respond to... the risk, the damage and the devastation faced by people across the world who need this fund.”

Wealthy nations have so far pledged around $661 million to the loss and damage fund. South Korea contributed an additional $7 million at the start of this week’s meeting.

“That would hardly cover the likely losses from one major climate-related disaster,” Camilla More, of the International Institute for Environment and Development, told AFP.

Some estimates suggest developing countries need over $400 billion annually to rebuild after climate-related disasters. One study put the global bill at between $290 billion and $580 billion a year by 2030, and rising after that.

In one example in 2022, unprecedented flooding in Pakistan caused more than $30 billion in damages and economic losses, according to a UN-backed assessment.

Developing nations had been pushing for a specific fund to distribute aid to recover from climate impacts for 30 years, and the agreement struck in November was hailed a major diplomatic breakthrough.

“(But) ee can’t have a fund without money,” said Brandon Wu from ActionAid.

Technical discussions are taking place this year over the details of the loss and damage fund, including with the World Bank which will house the fund on an interim basis.

The Philippines was chosen this week to host the fund’s board.

Contentious discussions remain to decide how the money is allocated and in what form it should be made available to countries.

On Tuesday, more than 350 nongovernmental organizations sent a letter to the fund’s board demanding that a substantial share of the money be made directly available as small grants to local communities and indigenous groups.


Pakistan says unaware Israeli nationals aboard plane that made emergency landing in Karachi

Updated 12 July 2024
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Pakistan says unaware Israeli nationals aboard plane that made emergency landing in Karachi

  • Flydubai flight to Colombo made emergency landing at Jinnah International Airport on Wednesday
  • Israeli media quoted the Israeli foreign ministry as saying flight was also carrying two Israeli citizens 

KARACHI: The Pakistan Civil Aviation Authority (PCAA) said on Thursday it was not aware of the reported presence of Israeli nationals on a flydubai flight that made an emergency landing in the southern Pakistani city of Karachi earlier this week.
Flydubai flight FZ-569 was en route to Colombo, Sri Lanka from Dubai, when a woman aboard the plane fell ill, forcing the plane to make an emergency landing at the Jinnah International Airport on Wednesday.
Israeli newspaper, The Times of Israel, reported the flight was carrying two Israeli citizens among passengers, citing the Israeli foreign ministry. The ministry said it had “worked, together with others, to ensure the welfare” of the Israelis, the report added. 
But a PCAA spokesperson, Saifullah Khan, said Pakistani authorities were unaware of the presence of Israeli nationals on the flight.
“The report about the Ffydubai flight 569 just had that it was en route to Colombo from Dubai and the condition of some woman [aboard] worsened and it landed at 11pm [on Wednesday] in Karachi,” Khan told Arab News.
“But she expired. Her body was sent to [Pakistani charity] Khidmat-e-Khalq Foundation in Malir and the plane left at 3am [on Thursday]. It was not mentioned [in the report] how many passengers were aboard and what their nationalities were.”
The woman, who later died on the plane, was a Sri Lankan national, according to Khan. Her body was flown to Sri Lanka on another flight.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
Since the beginning of Israel’s war on Gaza in October last year, Pakistan has repeatedly raised the issue at the United Nations and OIC and demanded international powers and multilateral bodies stop Israeli military actions in the Palestinian territory.
Pakistan’s foreign office spokesperson, Mumtaz Zahra Baloch, told The Independent’s Urdu service the flydubai flight was diverted to Karachi due to a medical emergency.
“The Sri Lankan woman aboard the plane was examined by a medical team and declared dead, after which the body was taken off the plane,” she said. “No other passenger got off the plane.”