Pakistan’s Economic Revival: Ishaq Dar Highlights Country’s Progress

Pakistan Climbs to 24th Largest Economy Despite Challenges

Deputy Prime Minister and Foreign Minister Ishaq Dar addressed the Pakistan Business Council’s economic diplomacy event, shedding light on Pakistan’s economic recovery. Despite facing severe setbacks, he reaffirmed that Pakistan is back on track toward sustainable growth.

2013: A Turning Point for Pakistan’s Economy

Dar highlighted the critical economic turnaround in 2013, when the nation was struggling with:

  • Power shortages
  • Terrorism threats
  • Economic instability

Under the ruling party’s “Three Es” policy—Economy, Extremism, and Electricity, Pakistan swiftly regained stability. As a result, by 2016, Pakistan ranked as the world’s 24th largest economy, enjoyed record-high foreign reserves, and successfully controlled inflation.

Economic Downturn & Path to Recovery

However, Dar pointed out that post-2018 policies led to a decline:

  • Pakistan dropped to 47th in global economic rankings
  • Inflation surged into double digits
  • External debt climbed to $130 billion by 2023

Despite these challenges, Pakistan’s natural wealth, including mineral and hydrocarbon reserves, holds the key to future prosperity.

Privatization & Economic Reforms

To revive financial stability, the government is implementing privatization strategies, including:
24 state-owned enterprises (SOEs) listed for privatization
Privatization of major airports
Potential corporate takeover of Pakistan International Airlines (PIA)

Urging Pakistan’s business sector to play an active role, Dar expressed confidence that strategic reforms will help Pakistan regain its economic standing on the global stage.

Choose between Pakistan or TTP

On 24 December, Pakistan’s airstrikes in the Burmal district of Paktika province reportedly killed forty-seven people, most of which, according to Pakistan authorities, belonged to the Tehreek Taliban Pakistan (TTP). The strikes took place at a training facility and a media centre. The strike came after the TTP, using Afghan territory, attacked a couple of days ago on an army outpost near the border with Afghanistan, killing 16 Pakistani soldiers.

This was the second Pakistani airstrike against TTP positions this year. On 18 March 2024, in response to the attack from Afghanistan, the Pakistan Air Force carried out two intelligence-based airstrikes on Afghanistan’s eastern border provinces of Khost and Paktika, killing eight TTP personnel. In between the above two airstrikes, the TTP attacked many times Pakistan’s posts along the border; many Afghan nationals were part of these attacks.

Kabul can’t and won’t sustain terror groups attacking neighbouring countries and the world at large

Afghan Taliban know full well that those killed or injured in the attack were not Afghan nationals. The post-attack messages from the TTP cadres also confirmed that an accurate strike destroyed the TTP’s training and media centre. The concentration of over 50 men in one place was not a coincidence, as they were present with their arms, ammunition and suicide gear. Massive explosions at the attack sites further confirmed the presence of arms and explosives. Whether women and children were killed in the attack is still not clear, as the TTP militants largely inhabited the area.

One can appreciate the hurdles the Afghan Interim Government (AIG) may be facing in controlling the TTP and other terrorist groups, but dealing with the TTP is a much easier option than other terrorist groups such as ISKP.  There is a need to look into the challenges the AIG faces in establishing durable governance in the country. First, although the Taliban authorities may not say so in public, it is becoming obvious that the TTP is fast becoming a liability for the Afghan Taliban. For instance, over two dozen TTP factions are proof that its cadres are not part of a monolith but a divided house rooted in tribal preferences and prejudices. Thuggery is another aspect of the TTP to coerce the people; the common practice is to force a family either to pay money or contribute one person to the TTP for the cause of “Jihad”. A refusal may have dire consequences for the family. Even sober Afghan Taliban leaders have been conceding in confidence that they do not consider the TTP as “Mujahids” as most of their cadres indulge in “blackmail, extortion and forced marriages”.

Second, the power play within the Taliban hierarchy is keeping from an amicable solution to the TTP presence in Afghanistan. It is common knowledge that handing over the TTP personnel, especially their leaders, to Pakistani authorities would not be possible despite Taliban leader Mullah Haibtullah Akhund’s edict that “attacking Pakistan is haram (forbidden). Here, it is not Mullah Haibtullah’s edict but the Pashtun rawaj (tradition) or Pashtunwali (Pashtun code of conduct) which is cited as a reason that forbids the Taliban officials to address Pakistan’s demand and handover TTP personnel to Pakistan government.

Third, the rawaj (tradition) does not mean that the “guest” (TTP) may have the free hand to misuse hospitality and launch attacks on Pakistan from Afghan soil, especially when forbidden by the Supreme leader Mullah Haibtullah. Some TTP apologists argue that Mullah Haibtullah has not issued such an edict. In that case, the Afghan Taliban would be indulging in denigrating the status of their supreme leader by misinforming the Pakistani authorities that Mullah Haibtullah has declared an attack on Pakistan haram and that such a double speak would ultimately be harmful to the Taliban rule in future.

Haqqani Network can’t protect their family and financial interests in Pakistan by continuing support to TTP and other terror groups

Fourth, Afghan Taliban are in a denial mode when it comes to dealing with various terrorist groups are concerned. A UN Security Council report in July 2024 estimated up to 6,500 TTP fighters are based in Afghanistan. However, the same report admitted that “the Taliban do not conceive of TTP as a terrorist group”. Regarding Islamic State Khorasan Province (ISKP), the Taliban consider them as enemies but at the same time deny their presence in the country despite their frequent attacks across the country. ETIM and IMU are other two organizations amongst over a dozen terrorist outfits operating from Afghanistan. When the Taliban are offered assistance to tackle these terrorist outfits, they not only reject such offers but boast about their capability to deal with these organizations. Unfortunately, the Taliban’s egoistic approach has aggravated the situation; the number of attacks inside Afghanistan and its neighbours, especially Pakistan, has only increased ever since the Taliban ruled Kabul.

Fifth, there is a visible pattern in the ongoing support that the TTP receives from the Taliban government. The TTP cadres are more aligned with the Haqqani faction in the Afghan government than the Kandahar leadership. The TTP leaders reside in Haqqani-controlled areas of greater Paktika and Khost regions. Ironically, Haqqanis are considered friends of Pakistan and maintain close relations with Pakistani officials. The entire Haqqani family’s business interests are concentrated in the Waziristan region. It should be a source of concern for everyone in Pakistan’s power circles how TTP cadres are conveniently using the Haqqanis’ shelters to attack Pakistan. Are Haqqanis running with the hare and hunting with the hounds?

The above factors are not favourable to smooth relations with the AIG, requiring the government of Pakistan to revisit the entire gamut of its relations with the Taliban regime. Afghan Taliban must be aware of the consequences of strained relations with Pakistan. They must also realize that they are no longer freedom fighters but a government with huge responsibilities towards its people and the outside world, especially its neighbours. No neighbours of Afghanistan will tolerate Afghan soil being used against them.

Therefore, in the coming days and weeks, the Taliban will have to decide the nature of their relationship with Pakistan—whether to choose TTP or Pakistan. Also, the AIG must determine whether it considers TTP’s struggle against Pakistan right or wrong. For the TTP, a viable path is available if it surrenders arms and owes allegiance to Pakistan’s Constitution. No organization can dictate its agenda with force or defy the Constitution. Other religious parties in the country conduct activities within the Constitution, and TTP is no exception. By supporting the TTP, the Afghan Taliban would not only interfere in Pakistan’s internal matters but also indulge in unfriendly acts with serious consequences

Pakistan Airport Authority Confirms Smooth Operations Amid Reports

The Pakistan Airport Authority (PAA) has reassured travelers that airport operations across the country are proceeding without disruptions. The clarification comes in response to circulating reports suggesting delays of up to 72 hours for international passengers at Islamabad International Airport (IIA).

PAA Denies Delay Reports

The PAA spokesperson dismissed claims of any significant delays or interruptions at the airport, emphasizing that all systems are functioning efficiently.
“Operations are continuing as usual at all airports, including Islamabad,” the spokesperson affirmed in a public statement.

No Disruption in Passenger Services

In light of concerns raised by passengers and media outlets, the PAA has reiterated its commitment to providing uninterrupted services at all airports. The spokesperson further clarified that both domestic and international flights are adhering to their schedules, ensuring minimal inconvenience to travelers.

Enhanced Communication for Transparency

To address confusion, the authority has pledged to maintain open channels of communication with the public. Travelers are encouraged to check official updates via the PAA website or contact their airlines directly for real-time information.

Islamabad Airport Operations in Focus

While the initial reports of delays at IIA raised alarm, the airport authority has stated that operations, including baggage handling and customs clearance, are running smoothly.

This announcement aims to dispel rumors and reassure passengers traveling during a period of heightened scrutiny of airport operations in Pakistan.

Punjab Govt Implements Significant Pay and Pension Increases

The Punjab government has taken a bold step to enhance the financial well-being of its employees and pensioners by announcing substantial salary and pension increases. According to a notification issued by the Finance Department on Friday, these increments will take effect from July 1, 2024.

Employees in grades BS-1 to BS-16 will benefit from a 25% increase in their running basic pay. For those in grades BS-17 to BS-22, a 20% salary increase has been approved. This ad hoc relief is designed to mitigate the financial pressures on government workers and ensure they can better cope with rising living costs.

Additionally, the Finance Department has confirmed a 15% increase in net pensions for all civil pensioners in Punjab, starting from July 1, 2024. This increase aims to provide much-needed financial support to retirees who have contributed years of service to the province.

This provincial adjustment mirrors recent announcements by the federal Ministry of Finance, which declared similar increases for federal government employees. Federal employees in grades 1 to 16 will see a 25% salary hike, while those in grades 17 to 22 will receive a 20% increase, both effective from July 1, 2024.

Federal pensioners, including both civil and armed forces retirees, will also receive a 15% pension increase. This adjustment will apply to those retiring on or after July 1, 2024, ensuring comprehensive coverage for all federal pensioners.

The synchronized effort between the provincial and federal governments to increase salaries and pensions highlights a coordinated approach to addressing the financial needs of public sector employees and retirees. This initiative is expected to significantly improve the financial stability of thousands of families across Punjab and the country.

The announcement has been met with widespread approval among government employees and pensioners. Many have expressed relief, noting that the increases will help them manage the rising cost of living, including inflationary pressures on essential goods and services.

For the Punjab government, this increment is part of a broader strategy to improve the welfare of its employees. By offering competitive compensation, the government aims to attract and retain skilled professionals in the public sector, ensuring effective and efficient service delivery.

Furthermore, this salary and pension increase is likely to have a positive impact on the local economy. Higher disposable incomes for government employees and pensioners mean increased spending power, which can stimulate economic activity and growth in various sectors.

This move also aligns with the Punjab government’s commitment to social justice and equitable resource distribution. By ensuring that employees and retirees receive adequate financial support, the government is working towards reducing economic disparities and promoting inclusive growth.

The Punjab government’s decision to notify a significant increase in salaries and pensions marks a crucial step towards improving the financial well-being of its employees and retirees. Effective from July 1, 2024, this increment will provide much-needed relief and support, enhancing the quality of life for thousands of individuals and their families. As both provincial and federal governments continue to address economic challenges, such measures are vital in ensuring the sustainability and prosperity of public servants and pensioners across the region.

Strategic Leap: Pakistan Eyes Chinese Capital Markets with Panda Bonds Initiative

Finance Minister Muhammad Aurangzeb recently emphasized the potential of accessing Chinese capital markets by introducing Panda bonds, as a strategic measure to enhance Pakistan’s economic prospects. Aurangzeb highlighted the strategic significance of this project during his speech at the “Pak-China Business Forum” in Shenzhen. This initiative represents a crucial change in Pakistan’s economic strategy under the leadership of Prime Minister Shehbaz Sharif.

The Pakistani delegation, under the leadership of Prime Minister Sharif, arrived in China with a specific agenda: to investigate opportunities for gaining access to Chinese capital markets and to enhance bilateral commercial relations. Aurangzeb’s comments at the forum emphasized the preparedness and meticulous planning that had been invested in this project. Pakistan seeks to emulate the successful integration of the Egyptian model into the Chinese capital markets in order to achieve a stable and resilient economic future.

Aurangzeb confirmed that the initial phases of this endeavor are already under progress, with Pakistani officials maintaining regular contact with Chinese regulatory entities. This collaboration demonstrates a firm dedication to guaranteeing the seamless execution of the Panda bond program. The finance minister expressed assurance that the plan would begin in the next fiscal year, indicating a proactive and forward-thinking approach to economic management.

Aurangzeb noted a decline in inflation in May, crediting this favorable outcome to the structural economic reforms implemented under Sharif’s tenure. The decrease not only reflects the effectiveness of previous economic policies but also instills trust in Pakistan’s ability to govern its economy. The finance minister’s focus on Special Economic Zones (SEZs) highlights Pakistan’s economic policy’s strategic orientation. Pakistan’s objective is to attract significant foreign direct investment (FDI) by promoting export-driven economic growth through the establishment of SEZs. These zones are specifically created to promote collaboration between companies and the exchange of technology, fostering a vibrant business climate that stimulates innovation and competitiveness.

The Pak-China Business Forum also emphasized the growing trust of global investors in Pakistan’s economic prospects. Aurangzeb acknowledged Prime Minister Sharif’s role in spearheading these economic achievements and establishing a favorable atmosphere for progress and prosperity. The event provided a venue to demonstrate Pakistan’s dedication to economic reform and its preparedness to participate in global financial markets.

Finance Minister Muhammad Aurangzeb’s speech at the Pak-China Business Forum highlights an important point in Pakistan’s economic trajectory. The implementation of Panda bonds and the prioritization of key industries like agriculture and IT indicate a revolutionary approach to economic governance. Pakistan is well-positioned to capitalize on emerging prospects, stimulate economic expansion, and establish a robust and varied economy. Adopting a proactive approach is crucial for successfully navigating the complex challenges of the global economic environment and securing a prosperous future for Pakistan. 

PPP Prepares for Presidential Race

The Pakistan People’s Party (PPP) is gearing up for the upcoming presidential election. They’ve established a four-person committee dedicated to reaching out to other political parties to secure support for their candidate, Asif Ali Zardari.

This committee includes PPP heavyweights: Syed Yousuf Raza Gilani, Raja Parvez Sharaf, Syed Khursheed Shah, and Syed Naveed Qamar. Their mission is to build alliances and gain the necessary votes for Zardari’s victory.

This move comes after a recent agreement between the PPP and the Pakistan Muslim League-Nawaz (PML-N). In a joint announcement, the two parties declared Asif Ali Zardari as their official presidential candidate.

In a press conference, PPP Chairman Bilawal Bhutto-Zardari expressed confidence in forming a coalition government with the PML-N. He also confirmed that Shehbaz Sharif, president of the PML-N, will take on the role of prime minister.

Bilawal emphasized the parties’ commitment to tackling Pakistan’s challenges and expressed hope for a brighter future shaped by their joint leadership.

Sindh Governor Offers Unique Solution to Karachi’s Street Crime: Free Motorbikes and Phones for Victims

In a bid to combat street crime plaguing Karachi, Sindh Governor Kamran Tessori has taken an unconventional approach – offering free motorbikes and cellphones to victims as a form of compensation. With over 1,700 motorcycles stolen in the city last year, Tessori aims to ease the financial burden on affected individuals.

“Bring your original CNIC and FIR to Governor House,” declared Tessori, “and I will provide you with a new motorbike and cellphone.” This unique initiative sparks discussions on its effectiveness and sustainability in tackling the broader issue of Karachi’s safety.

While acknowledging the city’s struggles, Tessori emphasized the collaborative effort needed to overcome them. He highlighted ongoing initiatives like issuing health insurance cards offering treatment up to Rs500,000 and providing free rations and iftar meals to hundreds of thousands.

Beyond immediate aid, Tessori announced upcoming free IT courses to equip residents with valuable skills. These efforts showcase a multifaceted approach to address Karachi’s challenges, aiming to improve not only security but also empower the underprivileged.

Whether free motorbikes become a successful crime deterrent or not, Tessori’s initiative sparks a crucial conversation about tackling insecurity creatively. As Karachi strives for a safer future, this step, along with other ongoing projects, paints a picture of a proactive governor seeking out unconventional solutions for lasting impact.

PPP Embarks on “No Hate” Campaign for 2024 Elections

Garhi Khuda Bakhsh to Host Launch Event on Benazir Bhutto’s Anniversary

The Pakistan People’s Party (PPP) has officially announced its campaign for the 2024 General Elections, setting December 27 as the launch date. The party vows to run a positive and inclusive campaign, prioritizing national unity and shunning negativity.

Key Points:

  • Campaign launch at Garhi Khuda Bakhsh on December 27 – the anniversary of Benazir Bhutto’s assassination.
  • PPP emphasizes holding timely elections and criticizes other parties for “running away from polls.”
  • Chairman Bilawal Bhutto-Zardari advocates for a “no hate” campaign focused on positivity and burying old political tactics.
  • Senator Sherry Rehman demands a level playing field and adherence to the election schedule.

Breaking with Tradition:

The PPP’s “no hate” policy marks a significant departure from traditional Pakistani politics, which often rely on divisive rhetoric and negativity. This approach aligns with Bilawal Bhutto-Zardari’s vision of a united and prosperous Pakistan.

Campaign Launch and Schedule:

The December 27 launch event will be held at Garhi Khuda Bakhsh, Benazir Bhutto’s ancestral graveyard, symbolizing the party’s commitment to her legacy and principles. Following the schedule set by the Election Commission of Pakistan (ECP), public notice will be issued on December 19, with nomination filing open from December 20 to 22.

Looking Ahead:

The PPP’s campaign promises to be a refreshing change in the Pakistani political landscape. By focusing on unity and positivity, the party aims to offer voters a viable alternative to the current political climate. Whether this approach will resonate with the electorate remains to be seen, but the PPP’s “no hate” campaign has undoubtedly injected a new dynamic into the 2024 elections.

Pakistan Cuts Development Funds to Appease IMF, Raises Inflation Concerns

Islamabad, Pakistan: In a bid to secure further financial assistance from the International Monetary Fund (IMF), Pakistan has decided to slash development funds. This move, while aimed at meeting fiscal targets set by the IMF, raises concerns about the impact on critical infrastructure projects and economic growth.

137 Projects Axed: Citing sources, ARY News reports that 137 development projects worth Rs. 116 billion ($630 million) have been scrapped from the Public Sector Development Program (PSDP). While the government claims this is necessary to manage budget deficits, critics argue it could hinder infrastructure development and economic progress.

Financial Pressure Mounts: Pakistan’s economy has been reeling under high inflation, exceeding 20% since June 2022 and reaching a record 38% in May 2023. The central bank, while maintaining its key rate at 22%, acknowledges the need for further fiscal measures to curb inflation.

IMF Bailout and Conditions: Pakistan secured a $3 billion bailout from the IMF in July, but it came with stringent conditions, including budget revisions, foreign funding commitments, and energy price hikes. While the IMF has released $1.2 billion so far, further disbursements hinge on meeting these targets.

Foreign Reserves Climb: Despite the economic challenges, Pakistan’s foreign reserves have shown some improvement, reaching around $7 billion. This, however, remains a fraction of the 3-month import cover considered healthy for an economy.

Uncertainty and Impact: The development fund cuts raise concerns about the government’s ability to invest in critical infrastructure projects like healthcare, education, and energy. While aimed at appeasing the IMF, this decision could have long-term consequences for Pakistan’s economic growth and societal well-being.

Future Outlook: The success of Pakistan’s IMF program will depend on its ability to implement reforms while mitigating the impact on vulnerable populations. Balancing fiscal targets with development needs will be a crucial challenge for the government in the coming months.

Army Chief Asim Munir Embarks on First Official US Visit

Pakistan’s Chief of Army Staff (COAS), General Syed Asim Munir, departed today for an official visit to the United States. This marks his first visit to the country as COAS.

The Inter-Services Public Relations (ISPR) confirmed the visit in a statement, reporting that General Munir is scheduled to meet with senior U.S. military officials and government representatives.

This visit follows recent discussions between Pakistan’s top officials and the United States Special Representative for Afghanistan, Thomas West. During his visit, West emphasized the importance of addressing security threats posed by the Tehreek-e-Taliban Pakistan (TTP) and the need for continued cooperation on Afghan refugee issues.

In a tweet following his trip, West described his conversations with Pakistani officials as “productive” and expressed gratitude for the country’s commitment to tackling terrorism and protecting Afghan refugees.

General Munir’s visit to the U.S. comes amid ongoing efforts to strengthen bilateral relations and address regional security challenges. The meetings are expected to focus on topics such as counterterrorism cooperation, security in Afghanistan, and the safe return of Afghan refugees.

The outcome of the visit could have significant implications for the future of U.S.-Pakistan relations and the broader regional security landscape.