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Pakistan to pay INDIA GROSSLY ‘INSECURE’ DUE TO FALSE $3.7b debt NARRATIVE, LIES AND PROPAGANDA: BILAWAL from May-June: Saturday, 6 May, 2023 I 15 Shawwal, 1444
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KARACHI
STAFF REPORT
OREIGN Minister Bilawal Bhutto-Zardari Friday debunked his Indian counterpart Jaishankar’s remarks about Pakistan, saying that India looked “insecure” due to its false narrative, propaganda and blatant lies. “I understand there is an insecurity behind this criticism. The reason for this insecurity is that a false narrative, propaganda and lie is being spread in India, particularly by the BJP. By going there and speaking and presenting our stance, we break that myth and propaganda,” Bilawal told a press conference upon return from his India trip where he spoke at the Shanghai Cooperation Organisation’s (SCO) Council of Foreign Ministers (CFM) moot earlier in the day. “They try to give the impression that every Muslim is a terrorist so that hatred spreads there (India) and they could win elections. They try to prove that every Pakistani is a terrorist, but when Bilawal Bhutto-Zardari sits before them, their false narrative and propaganda are negated even if I say nothing,” he added. Bilawal said the narrative that terrorism was linked to Muslims had become “stale” across the world and Pakistan’s sacrifices in the fight against terrorism were acknowledged by the world. Bilawal went on to say that another “lie” that India was trying to spread was that the United Nations Security Council’s resolutions, international laws and bilateral agreements held no importance, adding that Pakistan’s representatives continued to counter India’s narrative on Kashmir. He said that what frustrated India was the refusal of Pakistanis and Kash-
miris to accept the Indian government’s actions of August 5, 2019, when it revoked occupied Kashmir’s special status, adding that the development had instead given “new life” to the Kashmir cause. “As Pakistan’s representatives, we talk on terrorism and Kashmir, counter their (India) propaganda and one-sided message so that is why maybe the Indian
FM seemed so emotional to you in his press conference,” FM Bilawal said. He hailed on Friday his trip to India as a “success”, saying that the “false propaganda” of the Bharatiya Janata Party (BJP) that every Muslim was a terrorist had been negated. Bilawal said: “The BJP and Rashtriya Swayamsevak Sangh (a Hindu nationalist
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group in India) have been trying to create this myth — they declare Muslims across the world terrorists, they declare Pakistanis terrorists. “We made an attempt at breaking this myth … I believe that when the son of Shaheed Mohatarma Benazir Bhutto’s son sits before them, no matter how much they try to level such allegations, this is a reply enough for them.” The foreign minister said his party, the PPP, forwarded Hindi candidates for provincial and federal legislatures who went on to become ministers, adding that he was “surprised” to learn that the Bharatiya Janata Party had no Muslim candidate despite India having one of the biggest Muslim population in the world. Bilawal was also asked about Indian Minister of External Affairs S. Jaishankar’s comments about him, where the dignitary from New Delhi reacted to the PPP chairperson urging SCO members to refrain from “weaponising terrorism for diplomatic point-scoring”. Jaishankar said Bilawal’s address “reveals the mindset of that country. His position was found out and called out.”
‘Onus on India to create ‘conducive environment’ for talks’
GOA, INDIA: Foreign Minister Bilawal Bhutto Zardari, on the second day of his visit to India for a Shanghai Cooperation Organization (SCO) moot, said that the onus was on India to build a “conducive environment” for talks with Pakistan. Speaking to journalists, the foreign minister elaborated that the prospect of dialogue between the two arch-rivals was damaged by New Delhi’s unilateral actions to revoke occupied Kashmir’s special status in 2019. Bilawal further said that “peace was our destiny” and the two countries should not be “held hostage” by their history. Earlier today, during his address at the SCO moot, Bilawal urged nations to collectively eradicate the menace of terrorism and “not get caught up in weaponising terrorism for diplomatic point-scoring”. The foreign minister, who is currently on a two-day visit to India, said that “the collective security of our peoples is our joint responsibility”. He also highlighted the importance of a peaceful and stable Afghanistan. “A peaceful and stable Afghanistan is a key not only to regional integration and economic cooperation but also to global peace and stability,” he added. STAFF REPORT
Bill linked to ‘review’ in suo motu cases sails through Senate amid ruckus ISLAMABAD
STAFF REPORT
Despite a stay order of the Supreme Court and the ongoing tussle between parliament and the judiciary, Upper House of the Parliament on Friday passed a crucial bill regarding the right to appeal in the suo motu cases. The bill sailed through the Senate days after the National Assembly had adopted it via a supplementary agenda. The bill, titled the Supreme Court (Review of Judgements and Orders) Bill, 2023, was tabled by PMLN’s Irfan Siddiqui and was passed by a majority of 32 votes. The bill was presented amid opposition by the PTI senators, who chanted slogans of “disrespect of courts unacceptable” and tore its copies. The proposed Supreme Court Review of Judgments and Orders Bill 2023, aims at facilitating and strengthening the Supreme Court in the exercise of its powers to review its judgments and orders.
Speaking in favour of the bill, Law Minister Azam Nazir Tarar briefly said that the legislation neither disrespected the Parliament nor the courts. He explained that the bill encompassed four sections which were in line with Article 188 of the Constitution. “Parliament won’t digress from it by an inch and it won’t step back from it as well,” Tarar added. He claimed the law empowers the Supreme Court subject to the provision of any Act of Majlis-e-Shoora and any rules made by the Supreme Court, to review any judgment pronounced or any order made by it. He said the latest legislation is procedural in nature. Meanwhile, Leader of the Opposition Dr Shahzad Waseem said that the government was trying to hide behind the Parliament. “Stop playing with the Constitution,” he said. “Was the Parliament not supreme when the Qasim Suri’s ruling was thrown out?” he asked. “Where were these people back then?”
Slamming the coalition leaders for disrespecting the courts, Waseem said, “Pakistan is functioning without any form of government today.” He also questioned how the budget could be passed when “there are no functioning governments in Khyber Pakhtunkhwa and Punjab”. “These are just techniques to run away from elections,” he told the House. The PTI senator stated that party chairman Imran Khan was appearing before courts despite being shot. “There is this prime minister before you and then there is the one who is sitting abroad today.” He then called on the government to show due respect to the judiciary. “You will have to accept and implement the Supreme Court’s order on elections no matter what,” Wasim added. ‘Books of O-level confiscated’ Meanwhile, taking the floor, Minister for Education Rana Tanveer Hussain said that the books of O-level carrying objectionable material have been confiscated.
SC to use constitution if govt-PTI talks fail to resolve polls impasse: CJP ISLAMABAD
STAFF REPORT
Chief Justice of Pakistan (CJP) Umar Ata Bandial said on Friday that the Supreme Court would use the Constitution to implement its verdict regarding holding elections in Punjab on May 14 if the talks between the government and PTI failed. The top judge passed the remarks during hearing of the petition seeking simultaneous elections across the country. The three-member bench headed by Chief Justice Umar Ata Bandial and comprising Justice Ijaz Ul Ahsan and Justice Munib Akhtar heard the case At the outset of the hearing, Pakistan Peoples’ Party (PPP) lawyer Farooq H Naek read out the report submitted over PTI-govt talks on the election date.
CJP Bandial emphasized the importance of political leadership in resolving political issues and also inquired about ongoing discussions with the International Monetary Fund (IMF). He asked if the budget was formulated under the guidelines of the IMF package. The Chief Justice noted that the court had already issued a verdict regarding holding polls within 90 days, and further stated that the court would not sit idle with the verdict for the May 14 polls if the parties involved failed to reach a resolution. He stressed that the matter in court was constitutional, not political and that the Supreme Court had left political matters to political parties. At this, Naek explained that without the assemblies, it would be impossible to
approve the budget and that this crisis would not have arisen if the assemblies of Punjab and KP were not dissolved. The Chief Justice asked why the approval of the IMF agreement and trade policy were important, to which Naek replied: “Getting the IMF loan is key for the budget.” He added that the issue at hand would be resolved if an understanding was reached between the government and the opposition. Justice Bandial also asked if the IMF loan would be used for reserves or the repayment of debts, to which Naek responded that only the finance minister could answer this question. The Chief Justice pointed out that even if the assemblies were dissolved, the Constitution gave a time period of six months for the budget. He also expressed concern
that the issue was wasting a lot of the court’s time. NOT INTERESTED IN PTI-GOVT TALKS: CJP remarked court is not interested in the PTI-government dialogue, however, court has left the matter on the political parties. Farooq H Naik assured apex court that problems would be solved, on which, CJ replied, he only made tall claims. THE PETITION: In a petition submitted by a citizen named Sardar Kashif Khan, the federal government, the Election Commission of Pakistan (ECP), and key political parties have been named as respondents. The petition argues that holding the general elections of the National Assembly and all four provincial assemblies together would be in the interests of justice, equity, and fulfilling constitutional imperatives. The petition further contends that holding simultaneous elections would ensure that they are carried out honestly, justly, fairly, and in accordance with the law.
Fitch Ratings PROFIT INP
As the government struggles to secure a bailout from the International Monetary Fund (IMF), Fitch Ratings on Friday revealed that Pakistan faces a total of $3.7 billion of debt payments in the May-June period, Bloomberg reported Hong Kong-based director at Fitch, Krisjanis Krustins, said about $700 million of maturities are due in May and another $3 billion in June. In an emailed response to questions, Fitch told Bloomberg that it expects $2.4 billion of deposits and loans from China will be rolled over. Pakistan, which has been negotiating to restart a $6.5 billion bailout with the IMF for about half a year, is racing to avert a default as the foreign exchange reserves — which currently provide an import cover of nearly one month — come under pressure. The country has secured financing support from countries in the Middle East and China, a key IMF condition. “Our base case is still that Pakistan and the IMF will reach an agreement on the programme review,” Krustins said. But the risks are large and the rating cut in February reflected that a default or debt restructuring is an increasingly real possibility, he added. The debt payments underscore the crucial need for Pakistan to resume its bailout programme with the Washington-based lender that has been stalled since November last year. The $1.1 billion tranche is part of a $6.5 billion bailout package the IMF approved in 2019, which is due to end in June, prior to the budget. So far, Pakistan has received $3.9 billion. The country is reeling from an economic crisis with inflation surging to 36.4%, the highest in its history and the highest in South Asia, while a bruising political battle is raging between the government and former prime minister Imran Khan. The government has removed caps on the exchange rate, imposed taxes, raised energy tariffs, and scaled back subsidies in an attempt to unlock the IMF funding. It has also raised key interest rates to a record 21%. Finance Minister Ishaq Dar, since he was sworn in September, has been claiming that “there’s no way Pakistan is going to default”, however, leaders of the ruling alliance and the PTI constantly claim that the country is on the brink of default.
Pakistan bailout review to conclude once financing in place: IMF PROFIT
REUTERS
The International Monetary Fund (IMF) is working with Pakistani authorities to conclude a ninth review of a bailout programme, its mission chief said on Friday of the funding critical to avert an economic collapse. Pakistan and the IMF have been discussing fiscal policy measures under review since February to resume the stalled funding that was due in November from a $6.5 billion bailout agreed upon in 2019. The money is crucial for Pakistan, which is facing a balance of payment crisis, to avert defaulting on its external payment obligations. Foreign exchange reserves held by Pakistan’s central bank have shrunk to pay just four weeks of controlled imports. “The IMF continues to work with the Pakistani authorities to bring the ninth review to a conclusion once the necessary financing is in place and the agreement is finalised,” mission chief Nathan Porter said in a statement to Reuters. “IMF supports the authorities in the implementation of policies in the period ahead, including in the technical work to prepare the FY24 budget, which is to be passed by the National Assembly before end-June.” Pakistan’s finance ministry did not immediately respond to a request for comment. As part of a series of conditions, Pakistan has given an assurance that its balance of payments gap this fiscal year, which ends in June, is fully funded. Pakistan has announced pledges worth $3bn in financing support from Saudi Arabia and UAE, but the funds have yet to come through. Longtime ally China has rolled over and refinanced its loans to Islamabad.
Short-term inflation hits record high of 48.35pc ISLAMABAD
STAFF REPORT
Weekly inflation measured by the Sensitive Price Index (SPI) rose to an unprecedented 48.35 per cent year-on-year (YoY) for the combined income group for the week ending on May 4, the data released on Friday by the Pakistan Bureau of Statistics (PBS) suggested. Prior to this, the highest-ever percentage of short-term inflation year-on-year was recorded for the week ending on April 19 at 47.23pc. As for the week ending on May 4, PBS data showed that short-term inflation increased by 1.05pc week-on-week (WoW) as a “major increase” was seen in the prices of chicken, potatoes, powdered milk, pulses, eggs, mutton and bread. Meanwhile, nonfood items, including footwear and soaps,
also became costlier. The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 30 items increased, nine decreased and 12 remained unchanged. The year-on-year SPI has been steadily on the rise since August last year and remained mostly above 40pc. It rose to 42.31pc on August 18 last year, followed by 45.5pc on September 1 that year and 46.65pc during the week ending March 22 before hitting an all-time high of 47.23pc for the week ending April 19 this year. Moreover, the SPI has also mostly increased since the start of Ramazan because of record rupee devaluation, costly petrol prices, a hike in sales tax and higher electricity charges. One of the factors for the increase in prices of perishable products is due
to the higher transportation charges. The only tool the government has used so far to tame inflation was a steady increase in the interest rates which rose to 21pc — a record level in the country’s history. The government has been taking strict measures — hikes in fuel and power tariffs, withdrawal of subsidies, market-based exchange rate, and higher taxation — under the International Monetary Fund (IMF) programme to generate revenue for bridging the fiscal deficit, which may result in slow economic growth and higher inflation in the coming months. However, the government has yet to unlock the IMF programme despite taking all inflationary and austerity measures. The increase in the SBP policy rate, sales tax on most items, and 25pc on more than 800 imported food and non-food items will further increase the retail prices of consumer goods.
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