PTIs Ali Mohammad Khan remanded to jail in corruption case

MARDAN: Central leader of Pakistan Tehreek-i-Insaf (PTI) Ali Moha­mmad Khan was remanded in judicial custody on Wednesday after a magistrate rejected the plea of anti-corruption establishment (ACE) officials for seeking his 14-day physical remand.

The former minister was arrested for the sixth time on Tuesday in yet another corruption case shortly after being released by a special court from Mardan jail.

On Wednesday when officials produced him before the judicial magistrate to seek physical remand, the court rejected the request and sent the PTO leader to prison on judicial remand.The PTI leader was taken into custody by ACE officials in a case registered against him on June 26, only four days ago the government had informed Peshawar High Court that there was no case against him.

According to the fresh allegations, the former minister of state and several other former lawmakers committed irregularities by awarding contracts in developmental schemes to their ‘favorites’.

The PTI central leader was earlier granted bail by senior special judge of the anti-corruption court Babar Ali Khan on surety bonds of Rs80,000 in a case against him and other former legislators of the party from Mardanfor ‘illegal appointments’ in the fisheries department.

“Ali Mohammad, who is in Mardan prison, was again taken into custody by the anti-corruption officials after he was released in accordance with the order of the court,” his counsel Ali Zaman said, adding that the government had made a mockery of the law.

Four days ago the government had informed the PHC about no other case pending against his client, yet the new case was registered after the ACE realized he would be released for ‘want of evidence’.

Earlier in May, Ali Mohammad was arrested in Islamabad under the Maintenance of Public Order (MPO) Ordinance on the order of Islamabad’s deputy commissioner. He was set free on Islamabad High Court’s order before being re-arrested on order of Rawalpindi’s deputy commissioner under the MPO. Later, he was arrested again on Peshawar deputy commissioner’s order under the MPO and then by the Mardan counterterrorism department of police in connection with the May 9 violence case.

Published in Dawn, June 29th, 2023

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PM Shehbaz urges special care for flood-hit people as nation celebrates Eidul Azha

As the nation celebrates Eidul Azha with traditional zeal and fervour today, Prime Minister Shehbaz Sharif has urged special care for the flood-affected people and vowed to utilise all measures to provide public relief.

The day started with special prayers held at mosques, Eidgahs, and grounds across the country for the progress and security of the country, state broadcaster Radio Pakistan reported.

Acting President Sadiq Sanjarani — who has assumed the role after President Arif Alvi went on Haj — offered the Eid prayers at the PAF Airbase Samungli Mosque in Quetta. He prayed for the prosperity of the country.

In his message, Acting President Sanjrani said the spirit of sacrifice on Eidul Azha had a universal status and no nation in the world could progress unless it implemented the spirit of sacrifice.

“We should keep all our interests, preferences and prejudices behind us. Now is the time to overcome all our political affiliations and adopt a common plan of action for the development and prosperity of the country,” he stressed, recalling that Pakistan came into being after endless sacrifices.

“On this day, we must remember the creators, martyrs, and protectors of the homeland who sacrificed their lives for the great cause of protection, development, and uplifting of the beloved country,” Sanjrani added.

Meanwhile, PM Shehbaz offered Eid prayers at his Model Town residence in Lahore.

In his message, which was released by the Prime Minister’s Office, the premier felicitated the nation on the auspicious occasion and urged the people to take special care of those who were rendered homeless during last year’s floods.

PM Shehbaz said he was cognisant of the fact that Pakistan had been facing price hikes triggered by external issues in the shape of inflation and recession. However, the government was utilising all the resources to provide relief to the public, he vowed.

PM Shehbaz further said that sacrifice was not just the name of slaughtering an animal, but its purpose was to “sacrifice one’s life in the way of Allah to achieve higher goals”.

“It is a matter of fact that no nation in the world can progress unless it has the spirit of sacrifice,” he added.

The Inter-Services Public Relations (ISPR) said in a statement that the armed forces, Chairman Joint Chiefs of Staff Committee, and the Services Chiefs wished a very happy Eidul Azha to fellow Pakistanis.

“Eidul Azha gives us a message of peace, unity, fraternity, and selfless sacrifice for humanity,” the military’s media wing said.

It also urged the people to remember and honour the martyrs who sacrificed their lives for the motherland. “They will forever be etched in our hearts,” the ISPR added.

Meanwhile, PPP Chairman Asif Ali Zardari offered Eid prayers alongside parliamentarians in Nawabshah. In a tweet, the PPP Media Cell said Zardari prayed for the strength of democracy and the well-being of the citizens.

Separately, talking to reporters after Eid prayers in Multan, PTI leader Shah Mahmood Qureshi said that as a nation, “we should come together and face both economic and security challenges together”.

Shehbaz, COAS in Parachinar

In a statement released earlier in the day, the PMO said the prime minister arrived in Parachinar along with Chief of Army Staff (COAS) General Asim Munir to celebrate Eid with soldiers performing duties along the border.

The premier was accompanied by Finance Minister Ishaq Dar, Defence Minister Khawaja Asif and Information Minister Marriyum Aurangzeb.

According to the press release, PM Shehbaz and the army chief greeted the men in uniform on the festive occasion and boosted their morale through interaction.

PM felicitates Turkiye, Qatar heads

A day earlier, the prime minister also spoke to President of Turkiye Recep Tayyip Erdogan and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani on phone and felicitated the governments and the people of both countries on the auspicious occasion of Eidul Azha.

Reciprocating the prime min­ister’s sentiments, Presi­dent Erdogan and Qatar’s emir extended warm Eid greetings to the people of Pakistan.

The leaders agreed that the seventh session of the High-Level Strategic Cooperation Council (HLSCC) to be held in Islamabad, would provide a leadership-driven and forward-oriented impetus to further strengthen the close fraternal relations between the three countries, especially in the economic domain.

“Pakistan-Turkiye relationship is underpinned by abiding bonds of religion, culture and history. Regular leadership level contact remains a defining feature of this strategic partnership,” PM Sharif said.

Also, Sheikh Tamim and Shehbaz Sharif discussed reg­ional and international issues. The emir of Qatar expressed gratitude to PM Sharif for felicitating him on Eid.

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Asif hints at more social media curbs if needed

HINTING at the possibility of blocking social media networks if the need arises, Defence Minister Khawaja Asif has said that the seeds of the violence perpetrated on May 9 were planted on social media.

Speaking to Geo News on Tuesday, Mr Asif said that countries such as the US, UK and China all regulated social networks.

“There are rules and a regulatory framework, it is monitored. In our country, the medium is used to incite people to mutiny against the state,” he said.

“The script of the May 9 violence was prepared via social media,” he said.

Minister says banning PTI without punishing May 9 culprits could be ‘counterproductive’

It is worth noting that to stem the riots that broke out in the aftermath of PTI chief Imran Khan’s arrest, the government had cut off internet access and blocked social media networks across the country for several days.

Referring to the action being taken against the perpetrators of the violence that unfolded on May 9, the minister said that after the military’s announcement of the actions they had taken against their own personnel and their family members, it was the duty of the government to ensure the accountability of the perpetrators behind the riots.

He appreciated the ‘swift accountability’ carried out by the military, but noted that civilian authorities faced many challenges and roadblocks. “The law [to try civilians under the army act] has been challenged in various courts, the Supreme Court is hearing arguments as well… these hurdles are holding us back,” he said, adding that these obstacles could be overcome.

When asked about the possibility of placing a ban on the PTI — something the government has hinted at in the past as well — the defence minister was of the opinion that unless the perpetrators of the May 9 violence were not punished, imposing any restrictions on the party could prove ‘counterproductive’.

Published in Dawn, June 28th, 2023

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Captive victims

ONCE again, those already paying taxes are being shaken down to pay for our state’s ineptitude. When the government presented its budget for the next fiscal year earlier this month, our finance minister made some loud claims about how the country had already met all of the IMF’s conditions and also had a ‘Plan B’ in place in the event of its failure to revive the stalled bailout programme.

On the contrary, it is clear it was not until after Ishaq Dar’s budget presentation that the finance ministry actually began addressing the global lending agency’s concerns.

Desperate and short of time, it seems to have juggled some numbers, lifted some restrictions and finally resorted to what it always does best — squeezing active taxpayers further in order to shore up its balance sheet.

An official, commenting on the finance bill, noted that “this is the first time that parliament has passed a budget that it had not discussed and [to which] major adjustments were announced after the parliamentary debate was over”.

It seems that our lawmakers were more concerned about their travel plans than the citizenry’s growing list of troubles. Thanks to their disinterest, the finance bill signed into law will mean anyone making more than Rs200,000 a month will need to pay a higher income tax starting next month.

While Rs200,000 may have once been considered a ‘high’ income, the backbreaking inflation seen in recent months has considerably changed things. These days, the sum is just enough for a middle-class family to scrape through the month.

The higher tax rate will, in such a scenario, only encourage more people to dodge the taxman. It is already happening: almost a million taxpayers — about a fourth of the total — have ‘disappeared’ from the active taxpayer list issued by FBR for the latest tax year compared to a year earlier.

Why must responsible taxpayers always be the first to be penalised while a huge segment of the domestic economy remains undertaxed? As it is, there are high costs to social mobility for all Pakistanis who aspire to a better quality of life.

Most basic services — such as schooling, healthcare, water, electricity, gas and transport — have to be paid for out of pocket due to government failures to meaningfully address the crises endemic in each of these sectors.

How does adding an additional tax burden on top of these costs help towards reversing the brain drain that this country has experienced over the past year?

The answer is it does not: it is more likely to worsen the exodus. The government must tax the rich progressively — however, it clearly needs to upgrade its definition of whom it considers ‘rich’ enough, especially considering the impact of historic inflation over the past year on household incomes.

Published in Dawn, June 28th, 2023

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Civilians trials in military courts have not yet started AGP tells SC

Attorney General for Pakistan (AGP) Mansoor Usman Awan told the Supreme Court (SC) on Tuesday that civilian’s trials in military courts had not yet started.

He made the remarks as a six-member bench, comprising Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Ijazul Ahsan, Justice Muneeb Akhtar, Justice Yahya Afridi, Justice Sayyed Ma­­zahar Ali Akbar Naqvi and Justice Ayesha Malik, resumed hearing pleas challenging the trials of civilians in military courts.

A day before, Director General Inter-Services Public Relations (DG ISPR) Maj Gen Ahmed Sharif Chaudhry said in a press conference that military courts were indispensable to hold perpetrators and facilitators of the May 9 violence accountable, adding that 102 individuals were facing trials in these courts.

During yesterday’s Supreme Court hearing — during which Justice Mansoor Ali Shah left the bench after the government raised objections — CJP Bandial observed that he expected that no trial of any individuals, accused of committing violence on May 9, would commence in military courts while the apex court was hearing the matter.

In today’s hearing, the lawyers present asked the court to order a stay on trying civilians in military courts.

“No trial has started as yet and that also takes time. The accused will have time to hire lawyers first,” the AGP said, adding that copies of the investigation would also be provided before the trials commence.

He informed the court that the cases of detained civilians were at the investigation stage, a court order issued later in the day said, adding that the AGP explained that under the Pakistan Army Act Rules, 1954, after the completion of the investigation, accused persons were “provided copies of the prosecution evidence and granted time to examine the same and to engage counsel”.

That stage had not arrived yet, he said, adding, “Therefore, no military trial of any detained civilian has so far commenced.”

“However, if any development in this regard takes place he (AGP) will immediately inform the chief justice,” the order quoted him as saying.

The lawyers, however, told the AGP to make his statement part of the record as it “contradicted” the statement given by the army’s spokesperson a day earlier. The court subsequently rejected the request for issuing a stay order.

“Ensure the suspects speak to their families today,” Justice Bandial told the AGP. “Alert me immediately if something happens. I will be available from next week,” the CJP said.

“The AGP has assured the court that trials are not commencing forthwith. We are looking at this positively,” he said. The top judge that the hearing would resume after Eid and told the AGP to “take care” of those in custody. The hearing was then adjourned for an indefinite period.

According to the court order, the AGP has provided the court with a list of 102 civilians currently in military custody along with the details of stations where they are kept.

He said he would seek the instructions of the federal government on whether the list of 102 individuals in detention could be made public and would apprise the bench of its response today, the order stated.

The AGP further assured that neither of them was to be charged with the commission of any offence that attracted either capital punishment or a lengthy sentence, adding that “telephonic communication of the detained civilians with nominated members of their families shall be established today and a weekly visitation schedule for them shall be chalked out expeditiously”.

The order said the AGP also informed the court that no advocates or journalists were in military custody, adding that the federal government “shall render its assistance to trace and recover missing journalist Imran Riaz Khan”.

According to the order, the AGP told the bench he would be filing relevant documents and his written synopsis pertaining to the case at the next hearing.

The hearing

At the outset of the hearing, Supreme Court Bar Association (SCBA) president Abid Zuberi came to the stand and told the court that he had also filed a plea on the matter. He urged the court to let him present his arguments.

“We are happy to see that a plea has come from the SCBA,” the CJP remarked, adding that “good arguments” would be welcomed. Justice Bandial told Zuberi to prepare his arguments, adding that the court would come back to the plea later.

Subsequently, PTI chief Imran Khan’s lawyer Uzair Bhandari resumed his arguments in the case and said that a civilian could not be court-martialled. Referring to yesterday’s press conference by the military, he said that ISPR Director General spokesperson Maj Gen Ahmed Sharif Chau­dhry stated that 102 people would be tried in military courts.

However, Attorney-General for Pakistan (AGP) Mansoor Usman Awan interjected and said, “I stand by what I said yesterday, that 102 people are not being tried.”

During yesterday’s hearing, the AGP had stated that the cases of 102 detained persons were at the investigation stage and it was likely that the number could reduce as their cases could be sent to normal courts after the probe was completed.

During today’s hearing, AGP Awan said that the representatives of the Ministry of Defence were also present, who would support his stance.

“We believe you,” CJP Bandial told the AGP.

“We need to make it clear whether the accused were taken into custody under Section 2(d)(i) of the Official Secrets Act or Section 2(d)(ii),” Justice Afridi said.

“Initially, they were detained under Section 2(d)(ii) but the consequences of Section 2(d)(i) may also be applicable,” AGP Awan told the court.

“What is interesting is that the allegations against the suspects are not related to the Official Secrets Act,” CJP Bandial remarked. Justice Ayesha also inquired about the criteria for deciding which court suspects would be tried in.

“In the Liaquat Hussain case, it was made clear that not every case can be tried in military courts, rather it needs to be proven that the case is linked to the Army Act,” the CJP said.

Lawyer Bhandari also argued that Parliament could not approve civilian trials in military courts without carrying out a constitutional amendment. He said that the 21st Amendment had laid down the principle that trial of civilians required a constitutional amendment.

“If there is an aspect of internal matters, then also a civilian trial in military courts can’t be held?” Justice Ayesha asked. Justice Afridi remarked that such matters, which related to the country’s defence, had been decided in the 21st Amendment.

“The situation is clear after yesterday’s ISPR press conference,” Justice Afridi observed.

Meanwhile, Justice Ahsan said that the court could not ignore past examples of civilians being tried in military courts. At the same time, he said that past examples had different realities and different reasons.

Bhandari contended that any military trial of a civilian could only happen through a constitutional amendment.

Justice Akhtar, however, stated that a military trial could take place during an emergency or during war time. “Civilian trials cannot be conducted in military courts when fundamental rights are not suspended,” he said.

The PTI’s chief’s lawyer replied that the 21st Amendment stated that military trials could only happen when there was a war-like situation.

“Our Constitution, laws and fundamental rights have evolved over the years. The Constitution now includes Article 10-A [right to fair trial] which must be looked into,” Bhandari said.

He went on to say that Article 175(3), which mandates the complete separation of the judiciary from the executive, talked about judicial structures while Articles 9 and 10 talked about fundamental rights. “All these articles may be separate, but they are connected,” he argued.

Bhandari contended that fundamental rights required a judge appointed under Article 175(3) to conduct the trial. “Court-martialling a civilian does not leave a good impression on the judicial system and no one has allowed it happily,” he added, adding that civilians’ military trials would cause unease in the country.

He further said that the first information reports (FIRs) against the suspects did not mention the Official Secrets Act. “The army is involved in various things, including sports. If something happens there, then will be Army Act be invoked?” he asked.

“When you talk about an army man, then the most important thing is morale. If morale is affected then it benefits the enemy. Lowering their morale is also a crime,” CJP Bandial said. The top judge observed that army officials were ready to render sacrifices for the country due to their high morale.

Justice Ahsan added that the Official Secrets Act could only be invoked when the act had benefitted the enemy.

Justice Ayesha observed that for a trial under the Army Act, the alleged offence had to fall under the Official Secrets Act. She then asked the lawyer to inform the court about the Official Secrets Act.

Bhandari said that under the act, attacking an area that was off limits or carrying out an act that would benefit that enemy was a crime.

Justice Ayesha then said that an area that was off limits had either war plans or sensitive installations.

The hearing was then adjourned for a short break. When it resumed, Justice Naqvi wondered whether bail could be granted in cases under the Official Secrets Act.

“Yes, bail can be granted,” Bhandari said, but he reiterated that the Official Secrets Act was not mentioned in the FIRs. He said that after making an amendment, the act was paired with Protection of Pakistan Act to include anti-terrorism provisions.

Referring to the case against poet Ahmad Faraz, Bhandari said the judge had observed that Faraz could not be tried in a military court because he had not been formally charged.

“How can army authorities arrest someone without them being charged?” CJP Bandial asked. “How can accusations be made without any evidence? This matter is beyond comprehension,” CJP Bandial said.

Justice Akhtar also inquired how the investigation would take place under the Army Act and how charges would be formed against the suspects.

“This is exactly what I am saying. The Army Act is incomplete in this regard,” the lawyer replied.

At one point, Justice Ahsan noted that there were no charges against the suspects at the moment. However, Bhandari pointed out that first information reports against the suspects were lodged under the anti-terrorism laws while trials were being conducted under the Army Act.

“It is beyond my understanding how the army can arrest someone when there is no evidence,” CJP Bandial observed. Justice Akhtar added that a magistrate could also not take action against the accused until a police report was submitted.

“Taking action against anyone without any evidence is ridiculous,” the CJP said.

Bandhari further contended that the arrests by army officers were unlawful. At that, the CJP remarked, “Accusing a person without evidence is useless.”

Justice Ahsan also noted that the cases against the suspects were registered under the Pakistan Penal Code. “It is understandable that the suspects are first arrested and then investigated,” Justice Akhtar remarked.

Bhandari further said that in his client’s opinion, the decision to try civilians in military courts was based on ill intent. He also noted that some voices were speaking against military trials of civilians. Wrapping up his arguments, he urged the court to conduct an open trial.

When AGP Awan came to the rostrum, he said that he would submit written arguments about the trials in military courts. He contended that the charges against the accused were provided when seeking their custody.

He said that after the events of May 9, 15 days passed before the process for the handing over of suspects was initiated. Here, the CJP asked the AGP about the process of charging a suspect under the Army Act.

AGP Awan reiterated that 102 persons were in the army’s custody. He assured the court that the detained persons would be allowed to speak to their family members on the phone. He also said that the suspects would be granted permission to meet their parents, spouses, children and siblings once a week.

Here, the CJP recalled that he had visited some jails where the inmates were allowed to speak with their families on phones.

At one point, Justice Ayesha asked why the identities of the 102 suspects were being kept hidden. “Can we make the list of these people public?” she asked.

The attorney general refused, saying that they were still under investigation.

At one point, Justice Afridi asked the AGP to ensure the suspects would be allowed to talk to their families. The CJP added that all the suspects should be able to talk to their family members on Eidul Azha.

The AGP added that he would inform the bench in chambers regarding making the list of detained persons public. He assured the court that all those in custody were also being provided health facilities, adding that doctors were also present.

The AGP also said that no lawyers had been taken into custody, adding that he was aware that one journalist was missing.

“You are talking about Imran Riaz,” the CJP said. The AGP replied that he was not in the government’s custody and efforts were being made to recover him. Justice Bandial then told Awan to ensure that Riaz was found.

The CJP asked asked Awan about whether the death penalty was an issue in the cases. “The death penalty can be given in case of foreign contacts,” Awan responded.

The lawyers present during the hearing asked the court to order a stay on trying civilians in military courts. “No trial has started as yet and that also takes time. The suspects will have time to hire lawyers first,” the AGP said.

“Ensure the suspects speak to their families today,” Justice Bandial told the AGP. He said that the hearing would resume after Eid and told the AGP to “take care” of those in custody.

When AGP Awan came to the rostrum, he said that he would submit written arguments about the trials in military courts. He contended that the charges against the accused were provided when seeking their custody.

He said that after the events of May 9, 15 days passed before the process for the handing over of suspects was initiated. Here, the CJP asked the AGP about the process of charging a suspect under the Army Act.

AGP Awan reiterated that 102 persons were in the army’s custody. He assured the court that the detained persons would be allowed to speak to their family members on the phone. He also said that the suspects would be granted permission to meet their parents, spouses, children and siblings once a week.

Here, the CJP recalled that he had visited some jails where the inmates were allowed to speak with their families on phones.

At one point, Justice Ayesha asked why the identities of the 102 suspects were being kept hidden. “Can we make the list of these people public?” she asked.

The attorney general refused, saying that they were still under investigation.

At one point, Justice Afridi asked the AGP to ensure the suspects would be allowed to talk to their families. The CJP added that all the suspects should be able to talk to their family members on Eidul Azha.

The AGP added that he would inform the bench in chambers regarding making the list of detained persons public. He assured the court that all those in custody were also being provided health facilities, adding that doctors were also present.

The AGP also said that no lawyers had been taken into custody, adding that he was aware that one journalist was missing.

“You are talking about Imran Riaz,” the CJP said. The AGP replied that he was not in the government’s custody and efforts were being made to recover him. Justice Bandial then told Awan to make efforts for locating the missing anchorperson so that “he could spend Eid with his family”.

The CJP asked asked Awan about whether the death penalty was an issue in the cases. “A death penalty can be given in case of foreign contacts,” Awan responded.

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FO hands over demarche to American diplomat over US-India joint statement

The Ministry of Foreign Affairs on Monday summoned US Deputy Chief of Mission Andrew Schofer and handed over a demarche to him over the joint statement issued by the United States and India which called on Islamabad to take action against extremists based in Pakistan.

US President Joe Biden had laid out a red carpet for Indian Prime Minister Narendra Modi at the White House last week where the two countries sealed major defence and technology deals as Washington bets big on India as a counterweight to China.

In an apparent bid to use the visit to further India’s agenda against Islamabad, a joint statement issued by the two heads of state had called on Pakistan to crack down on extremists that target New Delhi.

“[The two leaders] strongly condemned cross-border terrorism, the use of terrorist proxies and called on Pakistan to take immediate action to ensure that no territory under its control is used for launching terrorist attacks,” the statement said.

Today, the Foreign Office (FO) said, the US deputy chief of mission was summoned and Pakistan’s concerns and disappointment at the “unwarranted, one-sided and misleading references to it in the joint statement” were conveyed to him.

“It was stressed that the United States should refrain from issuing statements that may be construed as an encouragement of India’s baseless and politically motivated narrative against Pakistan,” the FO statement said.

It was also emphasised that counter-terrorism cooperation between Pakistan and US was progressing well and that an enabling environment centred around “trust and understanding” was imperative to further solidify Pakistan-US ties, the statement added.

In an earlier statement, the FO had said the reference to Pakistan in the statement was “contrary to diplomatic norms and has political overtones”.

Defence Minister Khawaja Asif and Foreign Minister Bilawal Bhutto Zardari have also criticised the joint statement.

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In emergency meeting SBP hikes policy rate by 100bps to 22pc

The State Bank of Pakistan (SBP) in an emergency meeting on Monday hiked the policy rate by 100 basis points (bps) to 22 per cent.

The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC).

According to the SBP, the MPC explained that the potential upside risks to the inflation outlook had increased from its last meeting on June 12.

“MPC views that these risks are mainly coming from the implementation of new measures in the fiscal and external sectors, which are important in the context of the completion of the ongoing IMF (International Monetary Fund) programme.

“MPC noted that today’s action is necessary to keep the real interest rate firmly in positive territory on a forward-looking basis that would help in bringing down inflation towards the medium-term target of five to seven per cent by the end of fiscal year 25,” the SBP said.

Providing further details, a press release issued by the SBP said that “two important domestic developments” since its June 12 meeting had slightly deteriorated the inflation outlook and could potentially increase pressure on the already stressed external account.

“First, there are certain upward revisions in taxes, duties and petroleum development levy rate in FY24 budget as approved by the National Assembly on June 25. Second, the SBP, on June 23, withdrew its general guidance for commercial banks on prioritisation of imports,” the press release reads.

It added that while the MPC viewed these measures as “necessary” in the context of the ongoing IMF programme’s completion, they had nonetheless increased the upside risks to the inflation outlook.

The MPC said that it was of the view that the additional tax measures in the approved budget were likely to contribute to inflation both directly and indirectly, while the import relaxation might exert pressure on the foreign exchange market.

It added that the latter might result in higher-than-earlier anticipated exchange rate pass-through to domestic prices.

Regarding its move to hike the policy rate by 100bps, the MPC said it viewed the action as “necessary to keep real interest rate firmly in the positive territory on a forward-looking basis”.

The MPC said its decision would help further anchor inflation expectations, noting that they were already moderating over the last few months, and support bringing down inflation towards the medium-term target of 5-7pc by the end of FY25, barring any unforeseen developments.

“The MPC views that today’s decision, along with the expected completion of the ongoing IMF programme and the government adhering to the target of generating a primary surplus in FY24, would help in addressing external sector vulnerabilities and reduce economic uncertainty.

“The committee reiterated that it would continue to carefully monitor evolving economic developments and stands ready, if necessary, to take appropriate action to achieve the objective of price stability over the medium term,” the press release added.

Wait for IMF nod

After revising the budget in line with the Fund’s demands, the government expects a breakthrough announcement from the global lending agency over the next few days to get direly needed bailout funds.

“Almost all the irritants between the IMF staff and the Ministry of Finance were addressed hours before the finance minister’s wind-up speech on Saturday,” an official had said, adding that the announcement about the successful completion of the ninth review was an IMF’s privilege and just a formality now.

The official had said it was now up to the IMF’s mission to line up the precise dates for the lender’s executive board approval and disbursement of funds. However, he had acknowledged that it was not on the calendar until June 30, when the $6.5 billion Extended Fund Facility agreed in 2019 is set to expire.

The budget changes include Rs215bn additional tax measures, a Rs85bn spending cut, withdrawal of an amnesty on foreign exchange inflows, lifting of import restrictions, a Rs16bn hike in Benazir Income Support Programme allocations, and the powers to increase the petroleum levy from Rs50 to Rs60 per litre.

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Revised budget

BUDGET 2023-24 that was passed by parliament yesterday after the introduction of large fiscal-tightening measures to sweeten it for the IMF might resuscitate the bailout deal with the Fund, stalled since last November.

As Finance Minister Ishaq Dar said in his closing budget speech, the IMF’s concerns regarding the original budgeted deficit of 6.5pc of GDP have been largely addressed through the imposition of additional taxes of Rs215bn and spending cuts of Rs85bn.

In its comments on the original budget unveiled in May, the IMF had said that it “misses the opportunity to broaden the tax base in a more progressive way”. The lender had also objected to certain other budgetary measures like the ‘no-questions-asked scheme’ to attract new dollar inflows from Pakistanis abroad.

Unfortunately, the details of the new fiscal adjustments show that the government has wasted yet another opportunity to broaden the tax base despite meeting the IMF condition.

It has imposed a total of Rs438bn — taxes of Rs223bn were introduced in the original draft — and there is no major effort to bring undertaxed sectors, such as retail, agriculture and real estate, into the net. No reform of the SOEs has been planned either.

Although the government has increased the withholding tax on property transactions in the hope of netting Rs35bn, the measure is unlikely to produce the targeted revenue without drastic documentation of the sector. Much of the burden of the additional taxes will be borne by the organised corporate sector and salaried classes.

Mr Dar’s speech indicated that agreement on the new adjustments had been reached between the two sides after three days of hard negotiations. That means that one of the three concerns of the lender has been met before it restarts the funding.

How much progress has been made on the other two demands regarding the removal of controls on the exchange rate to keep the rupee from going into free fall, and the gap between the two sides on the IMF’s external financing gap estimates for the outgoing fiscal year?

The government has already moved towards restoring the proper functioning of its foreign exchange market, and it is anticipated that the Fund will relax its condition on external financing gap projections.

Since the ‘thaw’ in ties between the lender and Islamabad has come only after Prime Minister Shehbaz Sharif’s repeated interactions with IMF managing director Kristalina Georgieva, including their recent Paris meeting, both sides seem to be softening their positions.

Though just a few days are left before the rescue facility expires on June 30, there is still enough time to seal the deal. This is crucial if Pakistan is to avoid the looming sovereign default; without the deal, the country could exhaust its forex reserves in the next few months.

Published in Dawn, June 26th, 2023

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Situationer: Road to tranche paved with good intentions

The tax and expenditure changes made by Finance Minister Ishaq Dar in the budget for the next fiscal year — aimed to slash the fiscal deficit from the targeted 6.54 per cent of the GDP — are be­l­ieved to have narrowed differences between Pakistan and the IMF, bringing the PML-N-led coalition government clo­ser to clinching the bailout deal that has been in limbo over the last seven months.

Nevertheless, some uncertainty continues to surround the ongoing discussions between the two sides on the other conditions the lender has put forth for the restoration of its funding programme, which will unblock billions in stalled loans from other multilateral and bilateral lenders.

The fiscal tightening changes announced on Saturday were the outcome of three days of marathon negotiations with the lender of last resort, in a last ditch attempt to revive the funding package before it expires on June 30.

But while the minister announced additional Rs215bn in new taxes and a spending cut of Rs85bn to reduce the fiscal deficit, he didn’t say a word on whether the differences on the IMF estimate of the external financing gap of $6bn for the current financial year had been bridged or not.

“Though the details of how the additional tax revenues of Rs215bn will be generated are not clear, the minister has said it will not affect common people. So I believe [these taxes] will be levied on the rich,” Topline Securities CEO Mohammad Sohail told Dawn.

He expressed the hope that the changes in the budget “may convince the IMF to restart the funding programme”, but also had a word of caution regarding the IMF’s stance on the country’s external financing gap of $6bn.

Pakistan doesn’t agree with the IMF on its external financing gap projections, maintaining that it had been lowered by a sizeable reduction in the current account deficit due to controlled imports. The government has already arranged $4bn from Saudi Arabia and the UAE to fill the remaining hole.

The unannounced controls on foreign exchange rates also remain a bone of contention between the lender and Pakistan, since Mr Dar is a vocal advocate of a strong rupee. The tax amnesty announced for those who bring back home $100,000 was also criticised by the IMF, as it is believed to be against the programme’s conditions.

The budget review comes on the heels of a meeting between Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva, on the sidelines of a Global Financing Summit in Paris.

In her comments on the original finance bill presented by the government on June 9, the Fund’s resident representative in Pakistan had said the budget “misses an opportunity to broaden the tax base in a more progressive way”.

But Arif Habib Ltd CEO Shahid Ali Arif was quite optimistic about the finalisation of a deal with the Fund. “We still have a couple of days to sort out whatever gaps are left. Based on the progress made so far, there is a possibility that the IMF may conclude the ninth review and release the long-awaited tranche of $1.2bn,” he argued.

He said a lot of progress seemed to have been made over the past three days, as was evident from the review of the tax target and the reduction in spending.

“Obviously, the IMF must have asked for more. It would have been great if the government had agreed to reduce its development stimulus, but the fiscal tightening announced by the minister has already helped slash the fiscal deficit for next year by Rs300bn, which is a significant step forward.”

He was also hopeful that the lender would review its stance on its estimates of the external financing gap for the present fiscal year, to pave the way for the revival of the suspended programme before the end of this month.

Mr Arif said the deal with the IMF was crucial for unlocking assistance from other multilateral and bilateral lenders. “Once the deal is closed and the IMF comes on board, it will unclog the pipeline, improve dollar liquidity and ease pressure on rollovers,” he concluded.

Published in Dawn, June 25th, 2023

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Huge crowds circle Kaaba as Haj begins in Saudi heat

Vast crowds of robed Muslim pilgrims walked solemn circles around the Kaaba, the black cube at Makkah’s Grand Mosque, on Sunday as the biggest Haj pilgrimage in several years began in the heat of the Saudi summer.

Islam’s holiest site is expected to host more than two million worshippers from 160 countries during the annual rites that could break attendance records, with 1.6 million foreigners already there by late Friday.

“This year, we will witness the largest Haj pilgrimage in history,” if things go according to plan, predicted an official with the Saudi Ministry of Haj and Umrah.

“The numbers will exceed 2.5 million pilgrims,” added the official, speaking on condition of anonymity because he is not authorised to speak with the press.

The Haj began early on Sunday with the “tawaf” — the circumambulation of the Kaaba, the large cubic structure draped in black cloth with gold trimmings that millions of Muslims pray towards every day.

“I am living the most beautiful days of my life,” said Abdel-Azim, a 65-year-old Egyptian, as he performed the ritual. “The dream has come true,” added the retiree, who had saved up for 20 years to pay the $6,000 fee to take part.

The Haj is one of the five pillars of Islam and must be undertaken at least once by all Muslims with the means.

A series of rites are completed over four days in Makkah and its surroundings in the west of oil-rich Saudi Arabia.

On Sunday night, pilgrims will start moving to Mina, about five kilometres (three miles) from the Grand Mosque, ahead of the Haj’s climax at Mount Arafat, where the Prophet Mohammed is believed to have delivered his final sermon.

Mina, the world’s largest tent city, readied to receive the influx of pilgrims on Sunday, with food supplies brought in and security forces deployed around the area.

‘Great blessing’

Outside the Grand Mosque, thousands prayed on colorful carpets that adorned the pavement, with male pilgrims wearing simple white robes. The area was dotted with ambulances, mobile clinics, and fire trucks.

The Haj poses a considerable security challenge and has seen several disasters over the years, including a 2015 stampede that killed up to 2,300 people.

There have been no major incidents since, and catastrophe was the last thing on pilgrims’ minds.

“I cannot describe my feelings,” said 25-year-old Indonesian student Yusuf Burhan. “This is a great blessing. I never imagined that I would perform the Haj this year.”

This year’s summer timing for the Haj, which follows the lunar calendar, will test the endurance of worshippers during the mostly outdoor ritual.

Carrying white umbrellas to shield themselves from the scorching sun, policemen in the mountainous city have conducted foot patrols and set up checkpoints to inspect Haj permits.

Others splashed water on pilgrims as temperatures climbed towards 45 degrees Celsius (113 degrees Fahrenheit).

Thousands of paramedics were on standby inside the Grand Mosque. Saudi authorities said more than 32,000 health workers will be on hand to treat cases of heatstroke, dehydration, and exhaustion.

‘Not a single vacant bed’

The Haj, with its hefty fees, makes billions of dollars a year for Saudi Arabia, the world’s biggest oil exporter, which is trying to diversify its economy beyond fossil fuels.

This year’s will be the biggest since 2019, before the Covid pandemic, when about 2.5 million people took part.

Only 10,000 were allowed in 2020, at the height of the global outbreak, rising to nearly 59,000 in 2021.

Last year’s cap of one million has been removed.

Saudi businessman Samir Al-Zafni said all his hotels in Makkah and Madinah are at full capacity until the first week of July.

“This year there is not a single vacant bed in our group of 67 hotels,” he told AFP.

The Haj also demonstrates social reforms in the deeply conservative country.

This year’s pilgrimage will be the biggest since Saudi Arabia scrapped rules in 2021 that banned women who weren’t accompanied by a male relative.

Leaving the Grand Mosque after evening prayers on Friday, Ramot Ali from Niger struggled to describe the feeling of performing Haj for the first time, saying simply that “I am very happy”.

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Business community decries greater burden on masses industry

• Says budget lacks any initiative to attract investment, broaden tax net, create jobs; anomalies remain unresolved

KARACHI: Reacting to the imposition of new taxes and other harsh measures by the finance minister in his winding budget speech, the business community on Saturday said the budget for next fiscal year lacked focus on tapping resources for future development and broadening the tax net besides keeping budget anomalies unresolved.

Secretary General Overseas Investors Chamber of Commerce and Industry (OICCI), Abdul Aleem said after going through the budget speech of the finance minister, “I do not think that Mr Dar and his team have done justice to anomalies which have been raised by the various stakeholders including OICCI.”

He said one of the main issues was the high level of super tax imposed on the large corporate sector. The government has revised some rates and come out with some sort of accommodation to lower levels but most of the big corporate sector is still being asked to pay 10pc super tax which is very harsh and it is not good for investment.

Mr Aleem said the government has effectively increased corporate tax rates to 39pc from 29pc while the regional average is 25pc. “In this environment, how do we expect that foreign direct investment will be attracted apart from different reasons? He added this is a bit of a serious disappointment.

He said the other issue OICCI has noticed is that the government has not taken any measures to broaden the tax base on which key stakeholders have expressed serious concerns.

“I do not know why the government is very happy that Rs9.4 trillion revenue will be collected. This is not enough. There is a lot the government can get on which the stakeholders have suggested various measures,” he said.

One of the good measures taken by the finance minister is to resolve disputes through a sub-committee. “If this committee is active, there is a need to reduce the number of litigations pending and the government and the corporate sector should know about the real obligation. Another good step is the increase in minimum wages”, he added.

“All in all we are not happy and the corporate sector has not been taken good care of,” remarked the OICCI spokesman.

Pakistan Business Council Chief Executive Ehsan Malik said “We don’t have enough details of the changes other than a small cut in expenditure and a further increase in taxes mostly on the already taxed.”

He said he did not see any radical new initiative to expand the tax base especially to bring retailers and wholesalers into the tax net. There is some tweaking in the windfall tax section through a reduction in the look-back period to three years but it will continue to create uncertainty and affect business sentiment.

Mr Malik said the super tax will continue to burden successful businesses that create employment and already generate good tax revenues. A clear message to the companies caught in the tax net is to remain small and under the radar, if possible by splitting existing businesses into smaller units or moving investment out of the country. For professionals, the message is similar - relocate! The main winners are bureaucrats, he added.

Karachi Chamber of Commerce and Industry President Tariq Yousuf said the imposition of 5pc levy on fertiliser and Rs10 per litre petroleum development levy would increase the burden on the masses and hit the industry as Rs215bn new taxes were imposed.

The finance minister had not talked about any future development, resources, rationalisation of power rates and broadening of the tax net.

Site Association of Industry Chairman Riazuddin said “We are waiting for the details of the amended finance bill/act to see the fresh Rs215bn taxation measures but this will certainly make an adverse impact on the consumers’ cost of living and further burden the industries.”

He said the government should have taken measures to bring down general sales tax (GST) to a single digit on essential items, while there is no harm in keeping 25pc GST on luxurious goods.

Site chief there was a need to rationalize customs duty on various goods at a threshold level of 25-30pc to curb smuggling but nothing has been done in the budget.

Published in Dawn, June 25th, 2023

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NA passes bill limiting disqualification of lawmakers to five years

The National Assembly on Sunday passed a bill seeking an amendment to the Elections Act 2017, aimed at limiting the disqualification of lawmakers to five years with retrospective effect.

The Act — titled Elections (Amendment) Bill 2023 — also aims to empower the ECP to announce election dates unilaterally without having to consult the president.

When approved by the Senate on June 16, Clause 4 — pertaining to the disqualification of lawmakers — was added to the bill as at that point, it was solely about the ECP powers.

Today, it was presented by Finance Minister Ishaq Dar in the National Assembly and it is to come into force immediately.

The amendments have been proposed under Article 62(f) of the Constitution, which states: “A person shall not be qualified to be elected or chosen as a member of Majlis-e-Shoora (Parliament) unless he is sagacious, righteous, non-profligate, honest and ameen, there being no declaration to the contrary by a court of law.”

Disqualification of lawmakers

Pertaining to the time period of disqualification for lawmakers, the bill included an amendment to Section 232 (Disqualification on account of offences) of the Election Act, 2017.

Clause 4 of the bill stated: “In the said Act, for Section 232, the following shall be substituted and shall, notwithstanding anything contained in sub-section (3) of section 1 of the said Act, always be deemed to have been so substituted on and from commencement of the Constitution (Eighteenth Amendment) Act, 2010.”

The amendment added that the procedure, manner and duration of disqualifications and qualifications should be as specifically provided for in relevant provisions of Articles 62 (qualifications for membership of Parliament) and 63 (disqualifications for membership of Parliament) of the Constitution.

“Where no such procedure, manner or duration has been provided for therein, the provisions of this Act shall apply,” it added.

A copy of the bill presented in the Senate previously, which was seen by Dawn.com, also included the following:

“Notwithstanding anything contained in any other provision of this Act, any other law for the time being in force and judgement, order or decree of any court, including the Supreme Court and a high court, the disqualification of a person to be elected, chosen or to remain as a member of the Parliament or provincial assembly under paragraph (f) of clause (1) of Article 62 of the Constitution shall be for a period not exceeding five years from the declaration of the court of law in that regard and such declaration shall be subject to the due process of law,” it stated.

Law not ‘Nawaz-specific’: Khawaja Asif

Speaking on Hum News programme ‘Pakistan Tonight’ later in the day, Defence Minister Khawaja Asif said the disqualification amendment was not specific to PML-N supremo Nawaz Sharif.

“It is a separate matter that [the amendment] is applicable to him in the current circumstances,” he pointed out.

Asif opined that lifetime disqualification was against fundamental constitutional rights, saying that there were different opinions on the issue from the Supreme Court itself.

Questioned about the matter of Nawaz’s conviction on the occasion of his return, Asif said the PML-N’s legal experts were deliberating on the matter.

Power to announce poll dates unilaterally

Amendments were also proposed to Sections 57(1) (notification of election programme) and 58 (notification of election programme) of the Elections Act to empower the ECP to announce election dates unilaterally without having to consult the president. They are as follows:

Section 57(1): The commission shall announce the date or dates of the general elections by notification in the official gazette and shall call upon the constituencies to elect their representatives.

Section 58: Notwithstanding anything contained in Section 57, the commission may at any time after the issuance of notification under subsection (1) of that section make such alterations in the election programme announced in that notification for the different stages of the election or may issue a fresh election programme with fresh poll date(s) as may in its opinion to be recorded in writing be necessary for the purposes of this act.

---

Additional reporting by Nadir Guramani

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Rebel Russian mercenaries return to base under deal ending advance on Moscow

Heavily armed Russian mercenaries withdrew from the southern Russian city of Rostov overnight under a deal that defused an unprecedented challenge to the authority of President Vladimir Putin and halted their rapid advance on Moscow.

Fighters of the Wagner group returned to their bases in return for guarantees for their safety and the leader, Yevgeny Prigozhin, will move to Belarus, according to the agreement mediated by Belarusian President Alexander Lukashenko.

However, the aborted mutiny raises big questions about Putin’s grip on a country he has ruled with an iron hand for more than two decades. Italy’s foreign minister said it had shattered the “myth” of Russian unity.

Prigozhin, 62, a former Putin ally whose forces have fought the bloodiest battles of the 16-month war in Ukraine, said his decision to advance on Moscow was intended to remove corrupt and incompetent Russian commanders he blames for botching the war.

He was seen leaving the district military headquarters in Rostov — hundreds of miles south of Moscow — late on Saturday in a sport utility vehicle. His whereabouts on Sunday were not immediately clear.

Videos shared on social media from Rostov overnight purportedly showed the mercenaries withdrawing from the city in a convoy of armoured vehicles, tanks and coaches to the sound of cheers, chants of “Wagner” and celebratory gunfire from local residents.

Reuters was able to verify the location of the video but not the date that it was filmed.

“Take care of yourselves,” shouted one woman.

The show of support for Wagner’s short-lived insurrection will alarm the authorities in a country which has become increasingly intolerant of any public criticism of Putin and his rule.

Moscow was calm on Sunday, with the Red Square closed but otherwise little evidence of increased security in the streets. Monday has been declared a non-working day to allow time for things to settle.

The capital had told residents to stay indoors and deployed soldiers in preparation for the arrival of the mercenaries, who appeared to meet little pushback from the regular armed forces.

Chechen special forces who deployed to the Rostov region to resist the mercenaries’ advance were also withdrawing back to where they had been fighting in Ukraine, commander Apty Alaudinov said in a video published on Telegram.

After capturing Rostov — the main rear logistical hub for Russia’s invasion of Ukraine — the mercenaries had raced hundreds of miles north in what Prigozhin called a “march for justice”, transporting tanks and armoured trucks and smashing through barricades set up to stop them, before the deal to withdraw was reached.

Prigozhin Belarus exile

Under the deal, brokered late on Saturday, Kremlin spokesman Dmitry Peskov said a criminal case opened against Prigozhin for armed mutiny would be dropped, Prigozhin would move to Belarus, and Wagner fighters who rallied to his cause would face no action, in recognition of their previous service to Russia.

Peskov said Lukashenko had offered to mediate, with Putin’s approval, because he had known Prigozhin personally for around 20 years.

In a televised address during Saturday’s drama, Putin said the rebellion put Russia’s very existence under threat.

“We are fighting for the lives and security of our people, for our sovereignty and independence, for the right to remain Russia, a state with a thousand-year history,” Putin said, vowing punishment for those behind “an armed insurrection” and drawing parallels with the chaos of 1917 that had led to the Bolshevik revolution.

Peskov declined to say whether any concessions were made to Prigozhin, other than guarantees of safety for him — something he said Putin gave his word to vouch for — and for Prigozhin’s men, to persuade him to withdraw all his forces.

Prigozhin railed for months against the military’s top brass, especially Defence Minister Sergei Shoigu and the chief of the general staff, Valery Gerasimov, accusing them of incompetence and of withholding ammunition from his fighters as they battled to take Bakhmut in Ukraine.

Led by Prigozhin, a former convict whose forces include thousands of ex-prisoners recruited from Russian jails, Wagner has grown into a sprawling international business with mining interests and fighters in Africa and the Middle East.

This month, he defied orders to sign a contract placing his troops under the command of the Defence Ministry. He launched the rebellion on Friday after alleging that the military had killed many of his fighters in an air strike. The Defence Ministry denied this.

Italy’s Foreign Minister Antonio Tajani said in an interview with Italian newspaper Il Messaggero published on Sunday that Putin had created the conditions for Saturday’s insurrection by allowing Prigozhin over many years to build up such a formidable private army.

“The myth of the unity of Putin’s Russia is over. This internal escalation divides the Russian military deployment. It’s the inevitable outcome when you support and finance a legion of mercenaries,” Tarjani said.

“One thing is certain: the Russian front is weaker than yesterday. I hope that peace will now be closer. We wait to see Russia’s next moves in Ukraine”.

The revolt came just weeks into the start of Ukraine’s strongest counteroffensive drive since Moscow’s invasion in February last year.

Ukrainian President Volodymyr Zelenskiy said on Saturday the developments, which sparked a flurry of high-level calls between Western leaders, exposed turmoil at the heart of Russia.

“Simply complete chaos,” Zelenskiy said in his nightly video address.

Russian forces shelled the southern Ukrainian city of Kherson, killing one civilian man, the local governor said on Sunday.

‘Early signs of revolt’

While the Kremlin appeared to have been caught on the back foot, US spy agencies picked up signs days ago that Prigozhin was planning to act, US media reported.

They began tracking indications that Prigozhin and his mercenary force intended to move against the military leadership in mid-June, the Washington Post said, adding US spy agencies believed Putin was informed the Wagner chief was plotting his rebellion at least a day before it happened.

The United States and its allies publicly stayed on the sidelines as officials waited to see how the revolt would play out.

US President Joe Biden spoke with the leaders of France, Germany and Britain amid concerns that Putin’s control over the nuclear-armed country could be slipping.

Moscow issued a stiff warning to the United States and allies to stay back.

“The rebellion plays into the hands of Russia’s external enemies,” the foreign ministry said.

Before Prigozhin’s climbdown, Russian regular forces had launched what one regional governor called a “counter-terrorist operation” to halt the Wagner advance northwards up a main highway towards Moscow.

In the capital, the mayor urged Muscovites to stay indoors and declared Monday a day off work.

Security was tightened in the city centre, with armed men in flak jackets guarding the parliament building and Red Square closed off to the public.

A police car is seen behind a barrier on the Red Square in central Moscow, Russia on June 24. — Reuters

“I don’t know how to react. In any case it’s very sad this is happening,” 35-year-old Yelena told AFP, declining to give her last name.

All road traffic restrictions that had been imposed in Rostov, Lipetsk and other regions during the crisis have been lifted, state-run TASS reported, citing the federal road agency.

The measures came after Prigozhin announced his troops had taken control of the military command centre and airbase in the southern city of Rostov-on-Don, the nerve centre of Russia’s offensive in Ukraine.

Russia’s Federal Road Agency urged residents of the Moscow region to refrain from travelling along the M-4 “Don” major expressway until 10am (7am GMT).

The agency had said earlier in the day on the Telegram messaging app, in a post now deleted, that traffic restrictions on the highway in the Moscow and Tula regions remained.

‘A blow to Russia’

Responding to the challenge in a televised address, Putin accused Prigozhin of a “stab in the back” that posed a threat to Russia’s very survival.

“Any internal turmoil is a deadly threat to our statehood and to us as a nation. This is a blow to Russia and to our people,” Putin said, demanding national unity.

“Extravagant ambitions and personal interests led to treason,” Putin said, referring to Prigozhin, who began building his power base as a catering contractor.

As the insurrection force headed north through Voronezh and Lipetsk towards Moscow, the capital’s mayor announced that “anti-terrorist” measures were being taken.

People gather in a street as fighters of Wagner private mercenary group are deployed near the headquarters of the Southern Military District in the city of Rostov-on-Don, Russi on June 24. — Reuters

Critical facilities were “under reinforced protection”, TASS reported, citing a law enforcement source.

While Prigozhin’s outfit fought at the forefront of Russia’s offensive in Ukraine, he repeatedly blamed Defence Minister Sergei Shoigu and Valery Gerasimov, chief of the general staff, for his fighters’ deaths.

Muscovites made uneasy by revolt, Ukrainians pleased

Muscovites on Saturday expressed unease or dismissed as political theatre a standoff pitting the Kremlin against Wagner mercenaries who had vowed to descend on the capital in a “march of justice” denouncing the conduct of the war in Ukraine.

Ukrainians, on the other hand, were clearly satisfied, sometimes gleeful, at the prospect of a split in Russian ranks 16 months after the Kremlin’s troops invaded their country.

Moscow Mayor Sergei Sobyanin, an ally of President Vladimir Putin, had declared that a “counter-terrorism regime” was in force, before the leader of the Wagner private militia announced that his fighters would turn back to avoid bloodshed.

Prigozhin had said he wanted to oust the army’s top brass and “restore justice”, while Putin had promised to crush the mutiny.

One Moscow resident who gave his name as Nikolai — declining like others to give his surname — watched the military take up positions to protect the city.

“It’s frightening of course — you sit at home thinking about what might happen,” he told Reuters. “It’s disturbing, both for you and your loved ones.”

Some residents found it hard to grasp the scale of events.

“It’s really tough news, really unexpected. I’ve just come back from university. I’ve just done my last exam — and the news was really unexpected as I was prepping (for the exam) last night,” said Vladimir, a student.

“I don’t really know how to react. I haven’t really got my head around it yet.”

In Kyiv’s Independence Square — packed with residents enjoying a stroll — Natalia Tanich, 48, acknowledged a certain pleasure in watching the Russian standoff.

“I enjoy what is happening in Russia. The inevitable conflict between Prigozhin and Putin was expected,” she said. “I don’t know what may come out of it. But I wish for them to shoot each other and die.”

In Kharkiv, Ukraine’s second city subjected to frequent shelling since the invasion, Ivan said the confrontation was a consequence of volatile politics and the protracted conflict.

“They started the war and now they are getting it back. The harder you compress a spring, the harder it comes back,” he said.

“The situation was compressed to such an extent in Russia that it became hopeless. I consider what happened a natural event. It will influence the war but I think it will not be over in a day. We will have to endure a bit.”

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Time bomb

POLITICS the world over fascinates, as it does in Pakistan, partly because of the close view it offers of human behaviour. From this angle, May and June in Pakistan were especially interesting.

May marked a moment of transition when, after an expedient crackdown by the government, a half-baked ideology was supposedly laid to rest.

Within less than a month, however, restraint, on the government’s part, suddenly gave way to intransigence. What had started as a simple crackdown became overkill. While the threat of military trials loomed, scores of PTI members were arbitrarily arrested amid tales of custodial torture.

What we have been witnessing is a fairly glaring example of brutalisation at the highest level in the country. Nobody stands exonerated. Human nature and the complex structures of power are to blame.

The common man will no longer be fobbed off.

It should be added, for the record, that there was no overflow of humanity in evidence during Imran Khan’s tenure as prime minister of the country either.

It is comforting that human rights groups are always there to stand up and be counted, besides pro bono volunteers from the legal fraternity who are ever ready to correct the balance.

Another apparently irresoluble issue is that of undue concern for the self; of the political animal, rather than for his given locus of activity. The mere tokenism that our political leaders deploy in relation to the common good, for instance, is all too apparent.

After the year-long trauma we had to suffer at the hands of the PTI chief, who was ready to demolish our world to satisfy his hunger for power, it is just a little unnerving to see the somewhat jejune election fever — in anticipation of the electoral kill — already underway.

It is worth remembering that, just as he had left behind a figurative mine in the guise of a petrol subsidy for the PDM to deal with after his ouster as prime minister, the crafty PTI chief has also planted a small time bomb for the next incumbent to manage.

It seems that few have paused to consider the precise implications of Imran Khan’s insidious mantra for change. What he offered to the demoralised people of the country was, indeed, change; though, curiously, not change as an actuality so much as an idea — his own patented, utopian variety.

He went so far as to promise them what they had never dared to imagine: a comprehensive unravelling of the status quo. Sadly for them, they took his word for it and were ready to follow him, regardless of results, to the ends of the earth.

This inevitably meant that — all other considerations aside — the brand of change had come to the fore of our world and was not going to go away. The message to our rulers was — and is — clear.

It was that, whatever it took, change, economic as well as social, had to come — quickly — to Pakistan. This suggested that radical political readjustments were going to be necessary from the point of view of individual leaders in the ruling coalition.

They are all doubtless aware that Imran Khan is a skilled adman who has made the best of his mental resources by picking up on the various fads of the day including — and in particular — the commonly known fact of the power of social media in the political realm.

That enabled him, during the last year, to develop and sell various personal brands, such as, more prominently, the ‘messiah’. It is interesting that he was, paradoxically, more powerful, as a result, outside government than in.

His opponents now face a sizeable dilem­­ma, relating necessarily to a status quo they evidently cherish. Short of performing miracles — subsequent to an agreement with the IMF and in the teeth of the cost of debt servicing — much is expected of them.

They must reckon with the fact that paying lip service to change will not do. The common man will no longer be fobbed off with placebos. His demand is simple — a meaningfully and substantially better life.

Whereas in the heyday of the PML-N, the ‘Asian Tiger’ and national growth were the buzz, it seems that, in view of the country’s present economic plight, a better balance between micro- and macro-economics might be more appropriate.

In the PPP camp too, with its faintly compromised angle on progress and modernity, some form of ideological renewal will — especially in the absence of the charisma of a Benazir — be necessary.

The populist brand is beginning to wear just slightly thin. It will no longer be enough to trot out the tired ‘roti, kapra, makan’ slogan and hope to usher in credible change.

In any case, it appears that, even in defeat, the former cricket star has, ironically, won out by setting the bar impossibly high, leaving his opponents little choice but to try to meet it.

The writer is the founder-chairman of Dialogue: Pakistan, a local think tank.

Published in Dawn, June 24th, 2023

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Cartoon: 24 June 2023

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Course correction: PM Shehbaz urges rethink of global financial architecture

Prime Minister Shehbaz Sharif on Friday said the world should “course correct” by rethinking the global financial architecture, urging everyone to rise to face the challenge hand in hand in a spirit of solidarity and compassion.

“The world should use [the] present economic and climate turbulence as an opportunity for course correction,” PM Shehbaz said on Twitter. He was in Paris to attend the Summit for a New Global Financing Pact.

The two-day New Global Financial Pact Summit, hosted by French President Emmanuel Macron, seeks to improve the lending system for developing countries.

It comes amid growing recognition of the scale of the financial challenges ahead, with warnings that the world’s ability to curb global warming at tolerable levels relies on a massive increase in clean energy investment in developing nations.

He took to Twitter on Friday to elaborate on his stance regarding the “exogenous shocks that created a polycrisis for developing countries like Pakistan”.

During the interaction at the summit, PM Shehbaz drew world leaders’ attention to these shocks which resulted in stalled growth, supply chain disruption which resulted in commodity prices soaring, extreme weather events which precipitated unprecedented floods, and the back-breaking inflation, he stated.

“The international community should deliver on the commitments they made at COP27 in Sharm al-Sheikh,” the prime minister said.

The Sharm el-Sheikh Climate Change Conference (COP 27) brought together more than 45,000 participants towards the end of 2022 to take action towards achieving climate goals agreed upon under the Paris Agreement and the Convention.

According to the premier, the community should come forward and deliver on the operationalisation of the Loss and Damage Fund which would provide grants that do not increase the indebtedness of developing countries.

PM holds first in-person meeting with Chinese premier

Later in the day, PM Shehbaz met Chinese Premier Li Qiang and held an in-depth discussion on the bilateral relationship shared by Pakistan and China.

According to a statement issued by the Prime Minister’s Office, it was the first in-person meeting between the two leaders since Premier Li assumed office in March this year.

“During the meeting, the two leaders held an in-depth discussion on the entire gamut of the bilateral relationship including the China-Pakistan Economic Corridor (CPEC) as well as bilateral economic cooperation,” said.

The PMO said PM Shehbaz reiterated support for China on its core issues and appreciated the neighbouring country’s “unflinching support” to Pakistan’s territorial integrity, sovereignty, and socio-economic development.

“He noted that China’s firm opposition to holding any G20 meeting in the disputed region of Jammu and Kashmir was a vivid reflection of China’s principled stance for upholding international law and UN resolutions,” the statement added.

PM Shehbaz later said his meeting with the Chinese premier was “true to the spirit of the excellent bilateral relations between our two countries”.

“While expressing satisfaction with the present state of all-encompassing bilateral ties, we agreed to continue strengthening and expanding All-Weather Strategic Cooperative Partnership. We also decided to celebrate the Decade of CPEC being a transformative project for Pakistan’s socio-economic development.

“I thanked Premier Li for China’s continued diplomatic and economic support to Pakistan, especially Beijing’s principled stance pertaining to holding of G20 tourism meeting in IIOJK.,” he tweeted.

Shehbaz discusses new avenues of collaboration with IsDB president

PM Shehbaz also met the Islamic Development Bank (IsDB) President Muhammad Al Jasser, on the sidelines of the summit.

According to a PM office press release, the PM discussed new avenues for collaboration and the long-standing cooperation and engagement between Pakistan and IsDB, further taking stock of the progress on various projects.

The prime minister lauded IsDB’s USD 4.2 billion investment at the international conference on Climate Resilient Pakistan held in Geneva on January 9 in support of Pakistan’s post-flood recovery.

He also acknowledged Jasser’s personal contribution and leadership role in galvanising the huge volume of financial support.

“IsDB’s beneficial partnership with Pakistan will go a long way in helping the people of the country to rebuild their lives and livelihoods and also support the sustainable development objectives of the government,” the prime minister stated.

He also briefed Jasser on the recently formed Special Investment Facilitation Council which streamlines foreign investments in the country.

Macron says ‘complete consensus’ on reforming global financial bodies

Meanwhile, summing up the summit, French President Emmanuel Macron said there was a “complete consensus” on reforming global financial bodies, adding that the agreement was reached was to make the reforms “more efficient, fairer and better suited to the world of today”.

Other world leaders also lent their support to the idea of reforming the World Bank and IMF, the so-called Bretton Woods institutions formed after World War II which are dominated by the West.

“We need to say that very clearly: the World Bank is not meeting the world’s expectations and we need to say this,” Brazilian President Luiz Inacio Lula da Silva told a closing session of the summit.

“The IMF is not meeting the world’s expectations,” he iterated.

He said the IMF had “very irresponsibly made Argentina a huge loan and we don’t know what the Argentinian president did with that money and today Argentina is in a very different situation because it doesn’t have enough dollars to pay back the IMF.”

German Chancellor Olaf Scholz also backed reforms to “how these banks are managed and the framework for their activities”.

PM meets expatriates

The prime minister also met overseas Pakistanis during his trip and urged them to play their role in exposing propaganda against the nation in their respective countries.

The prime minister, in an interaction with the representatives of the Pakistani community in France as well as the Pakistan Business Forum, said expatriates were the nation’s ambassadors and an asset, adding that their services for the country’s development were laudable.

He told the community members that through its tough economic decisions, the incumbent government saved the country from default.

“During the last four years, the economy was pushed to the verge of collapse, and unemployment and inflation were at their peaks,” he added.

The prime minister said that having inherited an isolated Pakistan on the diplomatic fronts, his government made constant efforts throughout the year to revive foreign relations.

He said the recently unveiled Economic Revival Plan would prove to be a milestone to restore Pakistan’s economic position and that a Special Investment Facilitation Council had been established to remove impediments to investment.

PM Shehbaz said that only economic sovereignty and stability could guarantee a safe future for Pakistan.

The representatives of the overseas Pakistanis in France also presented a bouquet to the prime minister.

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Additional reporting by Tahir Sherani

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Hearings begin

AMIDST a prolonged lull after months of political storms, a blockbuster Supreme Court case promises respite to those weary of the daily drudgery. Hearings commenced yesterday on a set of four petitions challenging the trial of ordinary civilians in military courts.

As has become custom, however, the court found it difficult to even begin without running into controversy. Shortly after the nine SC justices originally nominated by Chief Justice Umar Ata Bandial to hear the petitions convened on Thursday afternoon, senior puisne judge Justice Qazi Faez Isa excused himself, saying he could not consider the bench to have been ‘legally’ formed due to the pendency of a petition concerning the Supreme Court (Practices and Procedures) Act, which limits the chief justice’s powers to constitute benches.

The bench was quickly reconstituted after excluding Justices Isa and Tariq Masood, the latter of whom had concurred with the former on the ‘legality’ of the bench. Fortunately, no other judge, petitioner or defendant objected to the new bench despite being offered a chance to do so, and one may now expect the hearings to proceed unhindered.

The matter before the court is undoubtedly of grave national import. It concerns the fate of dozens, if not hundreds, of citizens who face court martial over their alleged involvement in the vandalism of several military properties during riots that broke out following PTI chairman Imran Khan’s arrest last month.

The petitioners include notable lawyers like Aitzaz Ahsan and Latif Khosa, as well as former chief justice Jawwad S. Khawaja, whose involvement is a first by any retired chief justice in Pakistan’s judicial history.

They have presented more or less similar arguments: that the trial of civilians by military courts violates the constitutional rights guaranteed to the citizens of Pakistan and that, in any case, civilians should not be tried under the Army Act when ordinary courts are open and functioning.

It is noteworthy that the petitioners are not seeking any legal relief for the suspects: simply that they be tried in ordinary courts instead of military ones. It will be interesting to hear the counter-arguments from the attorney general of Pakistan, who will be defending the armed forces’ demand, endorsed by the government, that all suspects be court-martialled.

The SC has said it intends to keep its hearings short and wrap up the case as soon as possible. The matter may well prove a watershed for Pakistan’s judicial history.

At hand is the question of what jurisdiction military laws and courts have within the Pakistani legal and judicial system. For years, the lines have been blurred, leading to some grave miscarriages of justice. With the country going through a transformative period, now may be a good time to set fixed boundaries. May the law prevail.

Published in Dawn, June 23rd, 2023

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China lashes back as Biden labels Xi a dictator

China hit back on Wednesday after US President Joe Biden referred to President Xi Jinping as a “dictator”, saying the remarks were absurd and a provocation, in an unexpected spat immediately following efforts by both sides to lower tensions.

Biden’s comments came just a day after top US Secretary of State Antony Blinken visited Beijing to stabilise bilateral relations that China says are at their lowest point since formal ties were established.

Attending a fundraiser in California, Biden said Xi was very embarrassed when a suspected Chinese spy balloon was blown off course over US airspace early this year, making a personal comment on the Chinese leader when Blinken said on Monday the “chapter” should be closed.

“The reason why Xi Jinping got very upset in terms of when I shot that balloon down with two box cars full of spy equipment in it was he didn’t know it was there,” Biden said.

“That’s a great embarrassment for dictators. When they didn’t know what happened. That wasn’t supposed to be going where it was. It was blown off course,” Biden added.

Xi became China’s most powerful leader since Mao Zedong after securing a precedent-breaking third term as president in March and head of the Communist Party in October.

Biden also said China “has real economic difficulties.”

A Chinese foreign ministry spokesperson said Biden’s remarks were “extremely absurd” and “irresponsible”.

Expressing China’s strong dissatisfaction, foreign ministry spokesperson Mao Ning said Biden’s comments seriously violated facts, diplomatic protocol and China’s political dignity.

“They’re an open political provocation,” she told a news conference.

Asked how aware Xi had been about the balloon’s movements, Mao reiterated China’s previous explanation that the passage of the balloon through US airspace had been unintended and caused by circumstances beyond its control.

‘Big mouth’

“Biden’s big mouth is a loose cannon,” said Wu Xinbo, director of the Centre for American Studies at Fudan University in Shanghai.

“Mutual trust is what China has been stressing, so Biden’s comments are very destructive and damaging,” Wu said, while adding that the remarks may not totally undo what Blinken had achieved on his China visit.

Blinken and Xi agreed in their meeting on Monday to stabilise the intense rivalry between Washington and Beijing so it did not veer into conflict.

While no breakthroughs were made during the first visit to China by a US secretary of state for five years, both sides did agree to continue diplomatic engagement with more visits by US officials in the coming weeks and months.

Biden said later on Tuesday that US climate envoy John Kerry may go to China soon.

A day earlier, on Monday, Biden said he thought relations between the two countries were on the right path, and he indicated that progress was made during Blinken’s trip.

Chiming in from Moscow, Kremlin spokesman Dmitry Peskov said Biden’s comments contradicted the efforts of his secretary of state to ease tensions with Beijing, describing the remarks as “incomprehensible”.

“These are very contradictory manifestations of US foreign policy, which speak of a large element of unpredictability,” Peskov told reporters on Wednesday.

“However, that’s their business,” Peskov said. “We’ve our own bad relations with the United States of America and our very good relations with the People’s Republic of China.”

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