Pakistan forms task force on rising power tariffs as religio-political party continues protests

Jamaat-e-Islami (JI) party chief, Hafiz Naeem-ur-Rehman (left), is addressing party activists and supporters in a demonstration against the country's rising inflation in Rawalpindi on August 7, 2024. (@JIPOfficial/X)
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Updated 08 August 2024
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Pakistan forms task force on rising power tariffs as religio-political party continues protests

  • Around 3,000 Jamaat-e-Islami supporters have staged sit-in in Rawalpindi since July 26 against inflation, high electricity costs
  • On Wednesday, the JI threatened to launch a civil disobedience movement if the government did not meet its demands

ISLAMABAD: Federal Minister for Information Attaullah Tarar on Wednesday announced a positive round of talks with the leadership of a religio-political party protesting against inflation and high electricity prices in Pakistan, saying the government had constituted a task force to deal with the issues. 

Thousands of supporters of Jamaat-e-Islami (JI) party have set up a protest camp in Rawalpindi since July 26, highlighting the rising tax burden on the people of Pakistan and demonstrating against the escalating electricity tariffs due to the capacity charges of independent power producers (IPPs) in the country.

These charges refer to the payments made by the government to the IPPs for maintaining the availability of electricity, regardless of how much of it is ultimately consumed.

The capacity charges have become a significant point of contention as they contribute to the circular debt in the energy sector and lead to high electricity tariffs.

“Jamaat-e-Islami’s demand is on our agenda to reduce electricity prices,” Tarar was quoted as saying by the Associated Press of Pakistan (APP) news agency. “Our negotiations have been adjourned until tomorrow. Even today, there has been a lot of progress in the negotiations.”

“A task force has been set up to look into the issues of IPPs,” he added.

Tarar said Prime Minister Shehbaz Sharif has taken measures to reduce power tariffs in the country, including a subsidy of Rs50 billion to electricity consumers using up to 200 units in the months of June, July, and August.

The JI chief, Hafiz Naeem-ur-Rehman, told journalists his party would continue its sit-in and take its protest to Lahore, Peshawar, and Multan.

The JI has already started staging a sit-in in Karachi in front of the Sindh Governor House.


Pakistan launches crypto testing framework to regulate digital assets

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Pakistan launches crypto testing framework to regulate digital assets

  • Regulatory ‘sandbox’ to let firms test crypto products under supervision
  • Move comes amid broader push to formalize Pakistan’s digital asset sector

ISLAMABAD: Pakistan’s Virtual Assets Regulatory Authority (PVARA) on Friday launched a crypto testing framework to regulate digital assets, allowing firms to trial new products and services under official supervision.

The initiative, formally structured as a regulatory “sandbox,” creates a controlled environment where companies can test crypto-related services under the oversight of the regulator before full-scale approval.

According to PVARA, the sandbox will support real-world use cases including tokenization, stablecoins, remittances and on- and off-ramp infrastructure.

Tokenization refers to converting real-world assets into digital tokens on a blockchain, while stablecoins are cryptocurrencies pegged to a fiat currency to maintain a stable value. On- and off-ramp infrastructure allows users to convert between fiat money and digital assets, enabling the practical use of virtual asset products.
“The Pakistan Virtual Assets Regulatory Authority has formally approved and launched its Regulatory Sandbox for virtual assets,” PVARA said in a post on X. “Sandbox Guidelines and the application process will be published shortly on our website.”

The move comes as the government seeks to build a formal regulatory framework for digital assets while attracting investment and strengthening oversight of the sector.

Pakistan has stepped up efforts recently to regulate its digital asset sector and is exploring digital currency initiatives as part of broader measures to reduce cash usage.

In January, Pakistan signed a memorandum of understanding with a company affiliated with World Liberty Financial, a crypto-based finance platform launched in September 2024 and linked to US President Donald Trump’s family to explore the use of a dollar-linked stablecoin for cross-border payments.