In partnership with
Profit
SAUDI ARABIA BOOSTS INVESTMENT IN PAKISTAN TO $2.8B, ANNOUNCES NEW PROJECTS Thursday, 31 October, 2024 I | 27 Rabi ul Sani, 1446
S
g
Rs 20.00 | Vol XV No 114 I 8 Pages I Karachi Edition
Saudi Investment Minister confirms additional $600m investment, bringing total to $2.8b across various sectors PROFIT
STAFF REPORT
AUDI Arabia has increased its investment in Pakistan, bringing the total to $2.8 billion, with a recent addition of $600 million. This was disclosed by Saudi Investment Minister Sheikh Khalid Bin Abdul Aziz Al Faleh in Riyadh, in the presence of Prime Minister Shehbaz Sharif and Mohammad Bin Mazyad Al-Tuwaijri, Advisor at the Saudi Royal Court. Minister Al-Faleh announced that the number of memoranda of understanding (MoUs) between the two nations has risen to 34, signifying a deepening of
economic ties. “The value of these agreements has also escalated to $2.8 billion,” he added, highlighting the substantial increase in commitments. This announcement follows a series of meetings and an earlier visit in October 2024 by a Saudi delegation to Pakistan, during which 27 MoUs and agreements amounting to $2.2 billion were signed. Al-Faleh noted that five of these investment projects have already commenced, focusing on key sectors such as healthcare and energy. Moreover, Saudi investors have taken significant steps by acquiring land and assets to establish an integrated medical com-
plex in Pakistan, which marks a significant development in the healthcare sector. Prime Minister Sharif, during his twoday visit to Saudi Arabia for the 8th edition of the Future Investment Initiative, reviewed the ongoing economic initiatives with Saudi officials. He highlighted that the B2B MoUs signed during the Saudi minister’s recent visit to Pakistan are transforming into tangible investments and commercial ventures. Sharif urged continued collaboration to harness the vast economic opportunities available under Saudi Arabia’s Vision 2030, emphasizing the potential benefits for both countries through strengthened economic partnerships.
Govt, opposition finalise names for key judicial appointment body ISLAMABAD
STAFF REPORT
The government and opposition have named their representatives to the Judicial Commission of Pakistan (JCP), an important move following the recent passage of the 26th Constitutional Amendment. This amendment expanded the JCP’s composition to include members from parliament, aiming to bring greater balance and representation to the body responsible for nominating judiciary members to the country’s highest courts. For the ruling coalition, the representatives chosen are Bilawal BhuttoZardari of the Pakistan People’s Party (PPP) from the National Assembly, and Pakistan Muslim League-Nawaz (PMLN) Senator Irfan Siddiqui. The opposition Pakistan Tehreek-e-Insaf (PTI) has selected Senator Shibli Faraz and National Assembly Opposition Leader Omar Ayub for the commission. Omar Ayub confirmed his nomination to Geo News, noting that PTI
founder Imran Khan played a significant role in the decision. He mentioned that the names were finalized after consultations that included PTI General Secretary Salman Akram Raja and Barrister Gohar Ali Khan, and were influenced by discussions with the incarcerated former
premier. The PPP is pushing for balanced representation within the JCP, proposing two names—Bilawal Bhutto-Zardari and Farooq H Naek—to sit alongside the government’s existing representatives, Law Minister Azam Nazeer Tarar and
role in the release of Bushra Bibi, Gandapur said that Bushra Bibi had been released on the court’s order. “She was jailed in fake cases and is out of prison because the court granted her bail”, he insisted, asserting that soon Khan would also be released from jail. Dispelling the impression that the PTI was against the army and army chief, the KP CM declared that everyone harbouring any such impression must revisit their thoughts and mind that the PTI was neither against the institution of army nor against any individual (army chief), but against the [policies] and simply wanted them to be corrected. The KP CM said that PTI’s struggle for its rights was not only peaceful but also within the parameters of law and the Constitution.
DERA ISMAIL KHAN
Gandapur hopeful of Imran Khan release from jail soon ISLAMABAD
STAFF REPORT
Khyber Pakhtunkhwa Chief Minister Ali Ameen Gandapur on Wednesday expressed his confident that Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan will soon walk free from the jail, denying there was any deal for the release of Bushra Bibi from the jail. “Neither we neither believe in deals nor will opt for any. We derive our confidence from the fact that all cases against PTI founder Imran Khan are fake and politically motivated and except for the two or three almost all the big cases have been overturned the courts”, KP CM Gandapur elaborated while talking to the media. Without confirming or denying his
Attorney General Mansoor Awan. This ensures each major party has equal influence in the commission’s decisions. The JCP’s reformation, mandated by the new constitutional provisions, is part of a broader overhaul of Pakistan’s judicial appointment process. The commission, chaired by the Chief Justice of Pakistan, now includes two senators and two MNAs—one from each side of the government and opposition. This structure is designed to fortify the judiciary’s independence by involving a wider array of political representatives in the nomination process. These developments follow the contentious legislative changes pushed through by Prime Minister Shehbaz Sharif’s government, with the support of coalition allies like the PPP and opposition parties like JUI-F. These changes not only modify the appointment process of the Chief Justice of Pakistan and establish constitutional benches but also set fixed tenures for these positions, aiming to stabilize the judiciary’s future governance.
Fazl reiterates demand for fresh elections to ‘save country’ STAFF REPORT
Jamiat Ulema-e-Islam-Fazl (JUI-F) chief Maulana Fazlur Rehman on Wednesday reiterated his demand for fresh elections, emphasizing that new polls are crucial for Pakistan’s salvation. Talking to the media in Dera Ismail Khan on Wednesday, Maulana Fazlur Rehman stressed the need for free and fair elections, underscoring that the establishment must remain neutral in elections. “New elections are the only solution to save Pakistan,” he emphasized and criticised the current government, stating that it lacks legitimacy as it was formed through ‘fake’ mandate. Days after the Jamiat Ulema-e-
Islam-Fazl (JUI-F) helped the coalition government pass the 26th Constitutional Amendment, the party’s chief Maulana Fazlur Rehman said that if his party had not voted for the amendment, “a very dirty draft” would have been approved. Maulana Fazlur Rehman said that if the JUI-F had not participated, the government would have bought 11 votes. About the 26th constitutional amendment, the JUI-F chief said that there were 56 clauses in it, adding that his party decreased the same to 27 Fazl said, “We manage to pass this amendment while remaining in opposition.” Speaking on the arrest of Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan, Maulana Fazlur Rehman said that ‘political’ prisoners should be released.
Dar advocates for stable rupee value, opposes free-floating exchange rate
Maintaining PKR between Rs235 and Rs240 aligns with Pakistan’s economic fundamentals and prevents undue stress on the economy, says DPM
PROFIT MONITORING DESK
During a recent seminar organized by the PakistanChina Institute titled “China At 75 and Its Progress,” Pakistan’s Deputy Prime Minister Ishaq Dar voiced strong opposition to a free-floating exchange rate regime, advocating instead for a stable rupee value based on the Real Effective Exchange Rate (REER). Dar argued that maintaining the rupee between Rs 235 and Rs 240 to the dollar aligns with Pakistan’s economic fundamentals and prevents undue stress on the majority of the economy that does not engage in export activities. Addressing the forum, Dar highlighted that the concept of a depreciating exchange rate benefiting exports is a myth, as it harms 92% of the economy that is domestically oriented. He criticized the previous government’s policies, which he claimed led to higher inflation and economic instability. According to Dar, the artificial devaluation of the rupee to Rs 278 against the dollar was exacerbating inflation and increasing the burden of external debt. The Deputy Prime Minister also discussed the central bank’s current monetary policy, suggesting that the significant disparity between the policy rate of 17.5% and the current inflation rate of 6.9% sets the stage for a rate cut in the upcoming Monetary Policy Committee meeting.
Pakistan hires three law firms for Iran Gas Pipeline arbitration in Paris
g
CONTINUED ON PAGE 03
Govt officials cite US sanctions as primar y reason for delay in construction of IP gas project PROFIT
MONITORING DESK
An Iranian worker stands in front of a section of a pipeline after the project was launched during a ceremony with presidents of Iran and Pakistan on March 11, 2013 in the Iranian border city of Chah Bahar. The two leaders jointly unveiled a plaque before shaking hands and offering prayers for the successful conclusion of the project, which involves the laying of a 780 kilometre (485 mile) section of the pipeline on the Pakistani side, expected to cost some $1.5 billion. The Pakistani government has hired three prominent law firms—White & Case, Three Crowns, and Willkie Farr & Gallagher—along with a leading Australiabased energy sector lawyer, to represent the country in an arbitration case initiated by Iran in the Court of Arbitration in Paris. The case stems from Pakistan’s delay in constructing its portion of the Iran-Pakistan
gas pipeline and its failure to import 750 million cubic feet per day (mmcfd) of gas as stipulated. The News reported, citing top official sources in the Law Division and the Attorney General’s Office, that the legal team has been briefed on the details of the Iran-Pakistan (IP) pipeline project and the challenges that hindered Pakistan’s compliance. Pakistan officially submitted its legal team information to the Paris-based court on October 18, 2024. The country will now select an arbitrator. Iran will appoint its own, and both parties will choose a third arbitrator to complete the panel. Once established, the arbitration process is expected to conclude within approximately one year. In August 2024, Iran issued a final notice to Pakistan, indicating that it would proceed with arbitration due to Pakistan’s failure to construct the pipeline within an extended 180-day deadline, which expired in September 2024.
The project, initially signed in a Gas Sales Purchase Agreement (GSPA) in 2009, has faced a 10-year delay largely due to the threat of U.S. sanctions on countries engaging in energy projects with Iran. The French-based Arbitration Court, which operates independently of U.S. sanctions, will serve as the dispute resolution forum. Under a revised contract signed in 2019, Pakistan agreed to complete its section of the pipeline by 2024, following which it would start gas intake from Iran. However, Pakistan was unable to meet the deadline, prompting Iran to escalate the matter legally. If Iran had not filed by September 2024, its right to arbitration under French law would have expired. This legal step follows Iran’s previous notices, including one in late 2022, warning of potential penalties if Pakistan did not fulfill its obligations. Government officials cited U.S. sanctions as the primary reason for the delay,
stating that despite efforts to secure a waiver, the Biden Administration remains opposed to the project. The U.S. Assistant Secretary of State, Donald Lu, reiterated in March 2024 that Pakistan could face severe repercussions if it proceeded with the IP pipeline project. As per the original GSPA, Pakistan would be liable for a $1 million daily
penalty for delays beyond January 1, 2015. The agreement envisioned a segmented project, with each country responsible for its portion of the pipeline, originally intended for completion by December 2014. Attempts to partially implement the project, including an 81-kilometer pipeline from Gwadar to the Iran border, were unsuccessful.