Pakistan government, religious political party to hold second round of talks amid anti-inflation protests

Activists and supporters of Jamaat-e-Islami (JI) shout slogans and wave their party flag to protest against rising inflation in Islamabad on July 26, 2024. (AFP)
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Updated 29 July 2024
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Pakistan government, religious political party to hold second round of talks amid anti-inflation protests

  • Thousands of Jamaat-e-Islami party supporters remain camped at Rawalpindi’s Liaqat Bagh against inflation, additional taxes 
  • Pakistan’s government formed three-member technical committee to hold talks, resolve deadlock with government 

ISLAMABAD: A government committee will hold a second round of talks today, Monday, to discuss demands laid down by the leaders of a Pakistani religious political party protesting in the garrison city of Rawalpindi against inflation and the imposition of new taxes, state broadcaster Radio Pakistan said. 

Thousands of Jamaat-e-Islami (JI) party supporters have camped at Rawalpindi’s historic Liaqat Bagh ground since Friday to demand the government revoke additional taxes introduced in the federal budget presented last month, among other demands.

JI chief Hafiz Naeem-ur-Rehman has demanded a reduction in power tariffs recommended by the International Monetary Fund (IMF), and a review of Pakistan’s loss-making agreements with independent power producers (IPPs). Pakistan’s Information Minister Ataullah Tarar announced on Sunday that the government has formed a technical committee to hold talks with protesters and resolve their demands. 

“Second session of dialogue between the government and Jamat-e-Islami will be held today to sort out issues regarding electricity and other matters,” Radio Pakistan said. 

The government’s technical committee would comprise the minister of water and energy, the secretary of energy, and representatives from the Federal Board of Revenue (FBR) and the finance ministry, Tarar had said. 

The government established a separate three-member committee on Friday to negotiate with JI leaders after the party reported that hundreds of its members had been arrested by law enforcement agencies. The JI presented its list of demands to the government during a round of talks on Saturday night.

While opposition parties and traders have criticized the government’s move to introduce a tax-heavy budget last month, authorities have said they are taking steps to reduce expenses by state-owned enterprises and create fiscal space by digitizing the FBR. 

Liaqat Baloch, head of the JI negotiation team, said on Sunday that the first round of talks was held in a “positive environment” and expressed the resolve to continue the sit-in until the party’s demands were met.

“The government committee has promised to discuss our demands in a technical committee and will get back to us tomorrow,” he said. “Our protest and sit-in will continue until we achieve positive results for the people.”

Baloch hoped the government would show seriousness in addressing the public’s demands.

“Otherwise, this force of people will compel them to take our demands seriously,” he added.

Speaking about the arrested JI workers, Baloch said the government committee had assured them of their release.

“Thirty-five of our members are still detained, but the government committee assured us they will be released soon as we have provided the list,” he said.


Pakistan says Azerbaijan’s SOCAR to finalize oil and gas investment next month

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Pakistan says Azerbaijan’s SOCAR to finalize oil and gas investment next month

  • SOCAR signals February decision after Davos talks, citing Pakistan’s reform momentum
  • Existing LNG, fuel supply ties point to deeper Azerbaijan-Pakistan energy cooperation

ISLAMABAD: Pakistan’s finance ministry said on Thursday Azerbaijan’s state energy company SOCAR is set to finalize an investment in Pakistan’s oil and gas sector next month, following high-level engagements on the sidelines of the World Economic Forum in Davos.

The announcement came after a business roundtable chaired by Finance Minister Muhammad Aurangzeb, where SOCAR President Rovshan Najaf told Pakistani officials the company viewed Pakistan as a long-term energy partner, according to a statement from the finance ministry.

Pakistan has been seeking fresh foreign investment into its energy sector as part of broader economic reforms aimed at stabilizing supply, reducing costs and improving contractual transparency. The oil and gas sector, alongside mining and minerals, has been identified by Islamabad as central to energy security and industrial growth.

SOCAR already has a commercial footprint in Pakistan through SOCAR Trading, which supplies liquefied natural gas under a government-to-government framework with Pakistan LNG Limited. Under the arrangement, SOCAR can supply up to one LNG cargo per month without take-or-pay obligations, giving Pakistan greater flexibility in managing demand and pricing. The agreement has been extended into 2025, reflecting continued cooperation.

“SOCAR views Pakistan as a natural long-term energy partner,” Najaf said, according to the finance ministry statement, citing Pakistan’s “market depth, growing energy demand, and ongoing reform momentum in the oil and gas sector.”

He also highlighted SOCAR’s engagement with Pakistan State Oil on petroleum product supply and expressed interest in expanding cooperation across the broader oil and gas value chain as reforms advance.

Welcoming the planned investment, Aurangzeb reiterated the government’s commitment to attracting “strategic and commercially viable investment” in energy, saying reforms were focused on improving pricing transparency, contractual clarity and risk-sharing mechanisms, according to the statement.

SOCAR is a major state-owned energy company operating in more than 20 countries, with a workforce exceeding 66,000 employees and reported revenues of about $50.6 billion in 2024, the ministry said.

Pakistan and Azerbaijan have been deepening economic ties in recent years, with energy cooperation emerging as a key pillar alongside trade and investment discussions. Officials say the expected SOCAR investment would mark a significant step in strengthening bilateral energy links.