In partnership with
set to present LEADERS’ EXODUS FROM PTI CONTINUES AS Govt budget FY24 in SHIREEN MAZARI, CHOHAN ALSO JUMP SHIP NA on June 9 Wednesday, 24 May, 2023 I 3 Zilqad, 1444
SO FAR 24 PTI LEADERS HAVE PUBLICLY PARTED WAYS WITH THE PARTY
T g
ISLAMABAD
Profit
g
Rs 15.00 | Vol XIII No 324 I 8 Pages I Islamabad Edition
‘FORCED DIVORCES’: IMRAN REACTS TO LEADERS’ EXODUS FROM PTI
STAFF REPORT
HE Pakistan Tehreek-e-Insaf continued to suffer blow from ‘defection’ as two more senior leaders – former Federal Minister for Human Rights Shireen Mazari, and Fayyazul Hasan Chohan announced quitting the party. So far, 24 PTI leaders have now publicly parted ways with the party, a situation some political analysts are attributing to pressure from ‘external forces’, after the tragic incidents of May 9. Speaking at a press conference, Mazari said that she will not be involved in politics in the future, while Chohan said he would continue his political struggle, but without PTI. Joining Mazari and Chohan in parting ways with PTI is Abdul Razaq Khan Niazi, a former PTI Member of Provincial Assembly (MPA) from Khanewal. In a press conference, Niazi condemned the attacks on military installations and suggested that such actions could not have occurred without the support of the party leadership. He further claimed that the events of May 9 had brought joy to India, insinuating a connection between the PTI’s actions and India’s interests. Additionally, PTI leader Khawaja Qutab Fareed Koreja from Liaqatpur has decided to join the Pakistan Peoples Party (PPP) after observing the growing strength of the party in south Punjab and the shifting political landscape. On the other hand, in a cryptic reference to “forced divorces”, Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan on Tuesday responded to the ongoing exodus of leaders from the party, with the total now reaching 24 since the violent arson incidents of May 9. “We had all heard about forced marriages in Pakistan, but for PTI, a new phenomenon has emerged: forced divorces. Also wondering where have all the human rights organizations in the country disappeared,” the former prime minister said in a tweet from his official account. In his response, Imran raised questions about the situation’s implications for human rights within the country, subtly questioning the sudden absence of human rights organszations during these developments. The wave of resignations marks a significant period of turmoil for PTI, which was toppled from government on April 9 last year when Imran Khan was ousted from the office of premier through a vote of no-confidence. The attacks on military monuments and buildings have prompted several PTI members to abandon the party and condemn the incidents. Some political analysts speculate that the exodus is a result of pressure from ‘external forces’. PTI Chairman Imran Khan has repeatedly claimed that party members face immense pressure to abandon the PTI. Prominent figures who have recently left the party include former federal health minister and founding member of PTI Aamer Mahmood Kiani, Chaudhry Wajahat Hus-
sain (brother of Pakistan Muslim League-Quaid (PMLQ) chief Chaudhry Shujaat Hussain), former federal minister Malik Amin Aslam, former provincial minister Dr Hisham Inamullah Malik, PTI West Punjab President Faizullah Kamoka, and Dr Muhammad Amjad. Departures have also been witnessed in Sindh, where Mehmood Moulvi (PTI Sindh Vice President), Aftab Saddiqui (PTI Karachi President), Syed Zulfiqar
Ali Shah, Jay Parkash, Sanjay Gangwani, and Dr Imran Shah have left the party. In Khyber-Pakhtunkhwa (K-P), Ajmal Wazir (former spokesperson for the K-P Chief Minister and adviser on information), Usman Tarakai, and Malik Jawad Hussain have departed from the PTI. Meanwhile, former provincial minister Mubeen Khilji has quit the party in Balochistan.
RAWALPINDI: Pakistan Tehreek-e-Insaf (PTI) senior leaders – Shah Mahmood Qureshi, Jamshed Iqbal Cheema and his wife Musarat Jamshed Cheema were rearrested moments after they were released from Adiala Jail on Tuesday evening. As per details, PTI Shah Mahmood was released from Adiala jail but he was taken into custody right after his release. Similarly, PTI claimed that party leader Musarrat Cheema was rearrested upon her release, terming it an example of the government’s “fascism”. “These practices must be stopped immediately, court’s decisions must be respected now,” the party said. On the other hand, Party leader Jamshed Cheema re-arrested upon release The PTI said party leader Jamshed Cheema has been re-arrested outside Adiala Jail upon his release. The party’s statement said Cheema was re-arrested by Punjab police. Earlier in the day, Islamabad High Court issued an order for the release of Shah Mahmood Qureshi. Upon reviewing the sworn statement submitted by Qureshi’s lawyers, the honourable judges reached a decision and order for release of Shah Mahmood Qureshi. It is pertinent to mention here that PTI vice chairman Shah Mehmood Qureshi was taken into custody by police
in Islamabad. As per details, Shah Mehmood Qureshi was arrested from Gilgit Baltistan House in Islamabad, soon after the riots erupted across Pakistan following the arrest of former prime minister Imran Khan in the Al-Qadir Trust case. Qureshi’s arrest was an addition to the tally as several PTI leaders including former Governor Punjab Omer Sarfraz Cheema, PTI secretary general Asad Umar and PTI Vice President Fawad Chaudhry were already apprehended by police. Earlier, there were reports that PTI leader Jamshed Cheema had decided to part ways with the party over May 9 violence. According to a video of the counsel for Cheema, he held a meeting with Jamsheed Cheema in jail. “I am confident that he would quit PTI as soon as he comes out of jail,” he said. Cheema’s lawyer further said his client is upset over the attacks on military installations on May 9. Condemning the re-arrest and “custodial torture” of PTI leaders, workers and supporters, party chief Imran Khan has vowed to “resist till my last breath”. “The constitution is being brazenly violated along with SC rulings. Police are being used to crush PTI, our leaders forced to quit the party,” he further said in a tweet, adding that “giving into this cruelty means the death of our nation”. STAFF REPORT
oftentimes, the miscalculation in the first two steps, renders the last 3 utterly moot. The annual budget statement (ABS) is the main document for the federal budget. After the preparation and authorization, the ABS makes its way to the senate and eventually to the public. In terms of expenditures, the ABS categorically differentiates between “Receipts” and “Expenditures”. Revenues/Receipts: Receipts or revenue consists of balances of all budgetary receipts, e.g. Revenue Receipts, Capital Receipts, External Receipts, Public Account Receipts. These resources constitute federal gross receipts. This means that the provincial share is deducted to arrive at net federal receipts available to finance federal expenditures. It’s important to note that the distribution of revenue between the federal government and the provinces is guided by the principles laid out in the NFC Award. The award determines the share of each province in the federal revenue pool based on factors such as population, backwardness, revenue generation capacity, and other socio-economic indicators. Additional resources in reciepts may include privatization proceeds plus credit from the banking sector to finance government expenditures. Expenditures: The other part of the ABS is expenditures. Expenditure is broken down into current expenditure and development expenditure and is separately shown for expenditure on Revenue Account and expenditure on
Capital Account. Expenditure on Revenue Account signifies that portion of expenditure which is met from resources such as tax revenue and receipts, whereas expenditure on Capital Account refers to expenditure which is financed from loans, finances, credits, grants, and other borrowings. The biggest current expenditures on the revenue account that Pakistan incurs are General Public Service and Defense affairs and services. The General Public Service mainly inculcates the servicing of domestic and foreign debt. Apart from that it includes administrative and research expenditures of “General Public Service”. Collectively these two expenses were budgeted at 6.7 trillion in the 2023 budget, which is close to 90%. As per recent estimates, Pakistan is expected to spend more than 90% of its revenue target in debt servicing, leaving very little to no cushion for defense, let alone other expenses. In the past Pakistan has financed the deficits of its budget through borrowing from international and domestic sources. However, it is this very unsustainable nature of budgeting that has led Pakistan to where it is today. With virtually no opposition in the legislative assembly, the federal government is most likely to pass their version of the budget this time around. A budget that gets implemented without opposition is not entirely representative of the people’s wishes. Specifically a budget as critical as that of 2023. One thing is however, clear as day. In terms of development, quality of life and economic stability, 2023-24 is possibly going to be one of the worst years for the common man.
Qureshi, Musarrat Cheema, spouse re-arrested after release from Adiala Jail
Anatomy of a budget LAHORE
SHAHNAWAZ ALI
Year in year out, Pakistanis talk about the economic problems that are faced by the country. The bulletin is mostly rife with news of default and falling reserves. Not only is it a major driver of the political discourse in the country it is sometimes the entire reason, on which political upheavals are based. In working democracies, political discourses determine public demand, and public demand brings about legislative measures. Contrarily, Pakistan follows a top down approach, wherein, a party’s political will determines legislative measures and that in turn translates into narrative that’s digested verbatim by the party’s supporters and rejected unanimously by the opposers. And central to a country’s economic policy is the annual budget. It is in this document that a government decides whether it will increase or decrease its expenditure in a particular sector. The government also projects the revenues that it will collect through taxes and other sources in the budget and it is based on those estimates that the government allocates budgets to different sectors, ministries and provinces. In essence making a budget is an accounting exercise, with underlying policy objectives. The accounting exercise is divided into 6 essential steps namely, Preparation, Authorization, Execution, Reporting and Monitoring, Review and Policy setting. This sounds a well-rounded approach to tackle the exercise however
PROFIT INP
Prime Minister Shehbaz Sharif on Tuesday was briefed about preparation of the budget for the upcoming financial year 2023-24 (FY24), which will be presented on June 9 in the National Assembly after approval by the federal cabinet. The PM was briefed about revised estimates of revenue and expenditures and target estimates for the next year. “The economy has been on a positive trajectory toward financial stability and a decrease in deficit,” the meeting was informed. PM Shehbaz said that all available resources should be used to reduce the financial difficulties and provide relief to the middle class. He expressed satisfaction that prices of urea are continuously decreasing as a result of timely and prudent strategy of the government. He said that during the past two months, a current account surplus has been achieved after many years and the economy of the country is heading towards positive trajectory. He directed to take concrete steps to increase revenue and enhance tax net. The prime minister also directed the authorities concerned to finalise pension reforms at the earliest and establish a pension fund through adopting creative methods to lessen the burden on the national treasury to ensure welfare of the pensioners.
Ambassador Durrani appointed special envoy on Afghanistan
ISLAMABAD MIAN ABRAR
Former Ambassador Asif Ali Durrani on Tuesday was appointed as special representative of Pakistan on Afghanistan. The announcement came after a lapse of around two months when former special envoy on Afghanistan, Mr Mohammad Sadiq, resigned. A notification on the new appointment reads: “The Prime Minister has been pleased to approve the appointment of Ambassador (retd) Asif Ali Khan Durrani as Special Representative on Afghanistan with immediate effect.” Ambassador Durrani, a career diplomat, served as deputy chief of Pakistan’s mission in Kabul from 2005 to 2009. He also served as Pakistan’s ambassador to Iran and United Arab Emirates (UAE). Currently, Mr Durrani was serving as Senior Research Fellow in Islamabad Policy Research Institute (IPRI). Mr Durrani comes from a family of seasoned diplomats and bureaucrats from Quetta, Balochistan, and has mastered the skill of resolving issues amicably. However, Mr Durrani has a challenging job at hand as relations between Pakistan and Afghanistan are complex now-a-days and recent incidents and attacks from Tehreek-i-Taliban Pakistan and its splinter groups have added to the misunderstandings between the two neighbours. Moreover, Mr Durrani’s appointment also comes amid discussions being made to expand the multibillion-dollar project of China-Pakistan Economic Corridor (CPEC) into Afghanistan which can connect the landlocked Central Asia to the rest of the world through Afghanistan and Pakistan. Afghanistan, which is going to become a pivot country in the trade and connectivity through the Belt and Road Initiative (BRI) launched by China, can benefit hugely if peace and stability can return to the conflicthit nation which is facing war since past 40 years. Though both countries have an opportunity to start afresh following the recent trilateral dialogue as Chinese Foreign Minister Mr Qin Gang and Afghan’s Acting Foreign Minister Mr Amir Khan Muttaqi visited Pakistan. The meeting ended on a positive note and a joint communique was issued which reflected development on major issues including trade and joint action against terrorism.
Mudassir Aqil leaving Telenor Microfinance Bank (EasyPaisa), but what is he leaving behind? g
AFTER PUTTING BUSINESS ON A PROFITABLE PATH, AQIL BIDS FAREWELL TO ONE OF LARGEST MICROFINANCE INSTITUTIONS KARACHI
MARIAM UMAR FAROOQ
More than three years after taking charge as CEO of Easypaisa, M Mudassar Aqil has decided to step down from his position to pursue an opportunity overseas. The departure marks the end of a formative period in the history of the Telenor Microfinance Bank Limited, better known as Easypaisa, in which the company came out of the smoke of fraud allegations and became profitable. Mudassar joined Telenor Microfinance Bank Limited (Easypaisa) as CEO in November 2019, replacing Shahid Mustafa. This
was not his first stint in the microfinance sector, previously he was a CEO at FINCA, another microfinance institution in Pakistan. At the time, a large fraud in the microfinance lending business had just been uncovered, presenting Aqil with a daunting task upon his arrival. “The bank was in a difficult situation when I joined due to the recent discovery of significant fraud in our microfinance lending business. The aftermath of fraud was what I had to deal with after my joining,” says Aqil while reflecting on his first days heading Easypaisa. How did Easypaisa come out of this mess? When the management of Mudassir Aqil
came in, they identified credit irregularities in the loan portfolio, which included cases of collusion to commit fraud between employees and people outside the bank. This resulted in a lot of controversy for the microfinance bank. Apart from the controversy, the fraudulent loans resulted in huge losses. As of 2019, Telenor Microfinance Bank had accumulated losses of around Rs 16.5 billion which had increased to a whopping Rs 27 billion in 2020. The fraudulent loans contributed to more than half of the losses the bank experienced between 2019 and 2021. To counter this, Easypaisa restructured their lending portfolio and wrote off loans. ”So basi-
cally what we did in a nutshell was we cleaned up our lending portfolio. We restructured the book. We exited the agriculture bullet lending business where the majority of the fraud had occurred”, says Aqil. Apart from restructuring loans, Telenor injected more equity into the business. “We eventually moved the business to a new strategy where primarily it is a digital-first bank. We embedded both businesses into one business and made the entire bank on a digitalfirst strategy. And in that process, we had to take an impairment charge on the lending portfolio of roughly Rs14 billion – 15 billion.” Telenor and Ant group, major shareholders of Easypaisa, funded the impair-
ment loss which gave Aqil a clean slate to establish the business once again. The shareholders have collectively invested $270 million in the bank. More recently, the two shareholders injected equity of Rs 3.9 billion or $ 22 million in February 2022 to help the management carry out its business plan of becoming a digital retail bank. “When you are building a digital platform, you incur some high upfront costs. And then the idea is that to achieve scale and after scale profitability will follow. Scale is expensive because of the high cost of customer acquisition through digital channels.
CONTINUED ON PAGE 03