Profit PM CALLS FOR FAIR, JUDICIOUS DISTRIBUTION OF RESOURCES TO ENSURE PEACE, HARMONY In partnership with
Rs 15.00 | Vol XIII No 354 I 8 Pages I Islamabad Edition
Friday, 23 June, 2023 I 4 Zil Hajj, 1444
MEETS UN GENERAL SECRETARY, DISCUSSES CHALLENGES OF CLIMATE CHANGE BEING FACED BY PAKISTAN
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PARIS
STAFF REPORT
RIME Minister Shehbaz Sharif Thursday called on the international community to come up with a plan for fair, equitable and judicious distribution of resources to ensure sustainable peace and harmony in the world. Speaking here at the summit for a “New Global Financing Pact”, he said North had made progress and they would look forward to implementing its experiences in Pakistan, for providing jobs and livelihoods and for promoting industry and agriculture by learning from its model of success. “It must be remembered that if South is in trouble the world can’t move ahead. We are like one body and if one limb of the body is in trouble it is painful for the rest of the body as well.” The prime minister said last year, Pakistan faced devastating floods due to climate change and in those floods 33 million people were affected, millions of acres of standing crops were washed away, 1700 people including children died and half a million animals were drowned. Two million houses were either completely demolished or partially damaged, he said, adding the people of Pakistan bravely faced the devastating impacts of the floods. He said his government had to spend hundreds of millions of dollars from its own scarce resources to give financial assistance to the flood affectees all over the country. “We are very grateful to friendly countries across the globe for the valuable and timely contribution,” he added. He said the international financial institutions agreed to give loans for help of millions of people, but it would have burdened Pakistan, further exacerbating the already
precarious financial situation. Shehbaz Sharif said he took the United Nations Secretary General to the flood affected areas where city after city was sunk. Thousands of women gave birth to children in the camps set up for the flood affectees, he recalled, adding in far flung areas, the government had to provide food, medicine, water and education at temporary camps. He said the people of Pakistan faced crises and problems in the past courageously and they would also overcome the adverse effects of the floods. He urged the world to come forward to generously provide opportunity and assistance through a mechanism which satisfied the most vulnerable having bare minimum. “It will create harmony in terms of economic justice and fairness. It is never too late to say no to injustice.” He appreciated French President Emmanuel Macron for organizing the summit to discuss the very important subject related to financing issues of humanity. PRESIDENT MACRON LAUDED FOR CONVENING NGFP SUMMIT: Prime Minister Muhammad Shehbaz Sharif held a meeting with French President Emmanuel Macron on the sidelines of the New Global Financing Pact Summit being held in Paris, France. The Prime Minister appreciated President Macron for convening the New Global Financing Pact Summit. He also thanked the French President for inviting him to the Summit and for his warm hospitality. Speaking on this occasion, Shehbaz Sharif hailed the French President’s bold step towards a system, based on financial justice with developing countries. He said the developing countries are facing problems of nonavailability of resources, burden of interest for debt payments and slow development. The Prime Minister said under the new
No peace talks with TTP over involvement in killings of civilians: FO ISLAMABAD
STAFF REPORT
In response to an offer of mediation by Afghanistan’s Taliban government, Pakistan has firmly reiterated its rejection of holding peace talks with Afghanistan-based Tehreek-i-Taliban Pakistan (TTP) militant group. Speaking at her weekly press briefing here in Islamabad on Thursday, Foreign Office spokesperson Mumtaz Zahra Baloch stated that Pakistan was not engaged in any talks at any level with the proscribed Tehreek-iTaliban Pakistan (TTP) The statement from Foreign Office spokesperson Mumtaz Zahra Baloch comes days after Taliban Information Minister Zabihullah Mujahid offered to mediate between the TTP and Pakistan due to escalating tensions, particularly after the former terminated a ceasefire last year. “If Pakistan wants us to mediate, and we know that it is beneficial, we will undoubtedly mediate as it benefits the region and we don’t want war in the region,” Tolo News quoted Mujahid as saying. The Afghan minister had also denied the presence of TTP in Afghanistan and reiterated that the Islamic Emirate is committed to preventing the use of Afghan soil as a launchpad for attacks on other nations. At a press briefing, the FO spokesperson referred to a previous statement made by Foreign Minister Bilawal Bhutto Zardari, emphasising the clarity of the minister’s position on this matter. “The rejection aligns with the earlier stance expressed by Foreign Minister Bilawal BhuttoZardari”, she added. Ms Baloch said talks could not be held with the outlawed TTP, which has been involved in the killing of Pakistani civilians and law enforcement officials. ‘Pakistan constantly in touch with Greece on boat capsizing incident’ At her weekly press briefing, the Foreign Office spokesperson informed Pakistan is constantly in touch with the Greece authorities on boat capsizing incident and investigations are going on regarding the circumstances that led to the incident.
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HOLDS MEETINGS WITH JOHN KERRY, PRINCE MUHAMMAD BIN SALMAN AND PRESIDENT ABDEL FATTAH EL-SISI
Global Financing Pact, help of the indebted developing countries is the need of the hour so that the people of these countries can get relief. He said devastating effects of climate change have added the hardship to already troubled developing countries. Shehbaz Sharif praised the French President saying that he made a significant effort to create global consensus on an important issue. On this occasion, the French President thanked Prime Minister Shehbaz Sharif for attending the New Global Financing Pact Summit. During the meeting, the two leaders also agreed to remain engaged on issues of mutual interest.
Shehbaz meets IMF chief, urges lender to release stalled funds CONTINUED ON PAGE 03
PROFIT
STAFF REPORT
In a meeting held on the sidelines of the Summit for a New Global Financial Pact in Paris, Prime Minister Shehbaz Sharif on Thursday engaged with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, urging the IMF to expedite the release of stalled funds. During the meeting, Shehbaz outlined the robust economic measures implemented by his government to bolster growth and stability within the nation. He underscored the successful completion of all prerequisites for the 9th review under the Extended Fund Facility (EFF), firmly
reiterating Pakistan’s unwavering commitment to fulfill its obligations as agreed with the IMF. Echoing the aspirations of the Pakistani people, the prime minister expressed hope that the allocated funds would be promptly disbursed, fortifying ongoing efforts towards economic stabilization and providing much-needed relief. In response, Kristalina Georgieva, the IMF’s Managing Director, shared the institution’s perspective on the ongoing review process, taking stock of the progress made by Pakistan. It is worth noting that Pakistan’s foreign currency reserves currently teeter on the precipice, barely sufficient to cover imports for a single month. With expectations to unlock $1.1 billion in November, the IMF’s insistence on
Pakistan grapples with depleting gas resources g
Pakistan’s circular debt surges to Rs2.6tr in July-April FY23
EPRC’S POLICY REPORT UNVEILS WAY FORWARD PROFIT
GHULAM ABBAS
Pakistan, a nation heavily reliant on natural gas for its energy needs, faces a significant challenge as its gas reserves continue to deplete rapidly. On 22 June 2023, the Energy Planning Resource Centre (EPRC), under the Ministry of Planning, Development, and Special Initiatives (M/o PD&SI), unveiled a groundbreaking report titled “Pakistan Natural Gas: Policy Issues & Way Forward.” The report’s findings shed light on the country’s dwindling gas resources and proposed crucial policy measures to address the pressing concerns. According to the report, Pakistan’s recoverable gas reserves have witnessed a staggering decline. From the original recoverable reserves of 63,311 billion cubic feet (Bcf), the balance recoverable reserves plummeted to 20,951 Bcf by 2021. This rapid decline raises concerns about the country’s future gas production and supply. The ceremony, attended by key stakeholders in the energy sector, including ministers, representatives from energy organizations, think tanks, academia, and international bodies, aimed to
raise awareness about the critical gas issues and initiate a dialogue on viable solutions. During the presentation, the EPRC team delved into the report’s findings, highlighting the alarming projections for the future. If the current trend persists, natural gas production is forecasted to shrink to 2,306 million cubic feet per day (MMCFD) by 2030. Furthermore, pipeline and dedicated gas availability is expected to decrease to 1,907 MMCFD by 2030, down from 2,971 MMCFD in 2021. The demand for natural gas, however, continues to grow steadily despite a moratorium on new gas connections since 2011 (with exceptions for residential and special commercial purposes). The report emphasized that a major portion of the high BTU gas, from a total value of 926,068,902 million British thermal units (MMBTU), is consumed by the domestic sector. Cooking purposes alone account for 76% of gas usage in households. However, during the winter season, space heating becomes a significant factor, with gas consumption for space heating increasing to 47%, followed by 40% for cooking and 12% for water heating in January.
PROFIT
AHMAD AHMADANI
An in-depth analysis revealed that customers falling into the high-consumption category are the largest consumers of gas in the domestic sector, utilizing 88% of gas for water heating and 62% for space heating. This additional gas consumption for heating during the winter months contributes significantly to the gas shortfall experienced during peak demand. In response to these challenges, the EPRC team proposed a comprehensive demand-side management policy for the domestic sector. The report recommended substituting gas usage for space and water heating with electric appliances, presenting an estimated substitution model that could potentially conserve 31,447 million cubic feet (MMCFt) of gas through water heating and 24,155 MMCFt through space heating substitution. To encourage consumers to adopt electric alternatives during winter, the report suggested reducing electricity prices while increasing gas prices to achieve price parity. These measures could result in conserving 55,602 MMCFt of gas, which could either produce 5,042 gigawatthours (GWh) of power or save USD 583 million by reducing LNG imports.
Pakistan’s circular debt has continued to rise, with the total payables for the July-April FY23 period clocking in at Rs 2,631 billion. This is an increase of 7.38 percent from the same period last year, when the circular debt stood at Rs 2,450 billion. However, it is expected to decrease to Rs 2,374 billion by the end of the current fiscal year. Circular debt is racked up when power purchasers fail to pay power producers and is also known as a cash shortfall across the power supply chain. A mounting circular debt is a serious problem as it means power companies may be unable to pay for fuel, infrastructure maintenance and upgradation, thus putting the viability of the entire energy system at risk. A major reason behind the increase in the circular debt is unreleased and unclaimed subsidies, along with interest charges payable to independent power producers (IPPs) for delayed payments. A budgeted subsidy of Rs 108 billion for July-April FY23 has remained untouched, while unclaimed subsidies amount to Rs 30 billion, straining the energy sector. Besides this, interest charges on delayed payments to IPPs have reached Rs 76 billion in July-April FY23 and are projected to further increase by Rs 30 billion by the end of the fiscal year. Moreover, Rs 56 billion has been utilized from IPPs’ claims for FY23 to cover Public Holding Limited (PHL) markups. The circular debt crisis is exacerbated by nonpayment of K-Electric dues which stand at Rs 102 billion, and losses caused due to inefficiencies of and under-recovery by distribution companies (DISCOs), which are Rs 93 billion and Rs 204 billion, respectively. Outstanding generation costs, including Quarterly Tariff Adjustment (QTA) and Fuel Cost Adjustment (FCA) stood at Rs 94 billion during the July-April period and are expected to reach Rs 108 billion by the end of FY23.
Pleas against military court trials: SC summons record of all those arrested after May 9 protests CONTINUED ON PAGE 03
ISLAMABAD
STAFF REPORT
The Supreme Court’s (SC) seven-member bench on Thursday sought record of all those arrested in the country after May 9 violent protests broke out in the country following arrest of PTI Chairman Imran Khan. The seven-member bench constituted after two senior judges recused themselves from the nine-member bench, resumed hearing a set of petitions challenging the trial of civilians in military courts. Earlier today, a nine-member bench comprising Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Isa, Justice Masood, Justice Ijazul Ahsan, Justice Syed Mansoor Ali Shah, Justice Munib Akhtar,
Justice Yayha Afridi, Justice Sayyed Mazahar Ali Akbar Naqvi and Justice Ayesha Malik had taken up the case. However, Justice Isa had stated that he did not consider “this bench a bench”. He also said that he could not be a part of any bench until the case relating to the Supreme Court (Practice and Procedure) Bill 2023 — which aims to deprive the office of the chief justice of Pakistan (CJP) of powers to take suo motu notice in an individual capacity and which has since become law — was decided. At the same time, he said that he was not recusing himself from hearing the case. Justice Masood had agreed with Justice Isa’s views. The hearing was subsequently adjourned after all the judges left the courtroom. However, CJP Bandial decided to move forward
with hearing the case and formed a fresh seven-member bench, excluding justices Isa
meeting specific benchmarks before further disbursements has become paramount. With only one remaining IMF board review on the horizon, slated to conclude the $6.5 billion EFF program, Pakistan faces the arduous task of presenting a budget aligned with programme objectives, reinstating the proper functioning of the foreign exchange market, and bridging a $6 billion gap prior to the review. The pressing need to secure the release of IMF funds underscores Pakistan’s steadfast commitment to achieving financial stability. As the nation strives to meet the IMF’s stringent requirements, the timely disbursal of funds holds the key to alleviating economic pressures and ensuring a brighter future for its citizens.
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and Masood. The petitions in question were filed by
CONTINUED ON PAGE 03 former CJP Jawwad S. Khawaja, Aitzaz Ahsan, Karamat Ali, and PTI Chairman Imran Khan. Khawaja, who filed the petition through his counsel Advocate Khawaja Ahmad Hosain earlier this week, requested the top court to declare the trial of civilians by military courts unconstitutional.
Kh Asif ‘smells’ political motives behind pleas against trials under Army Act
ISLAMABAD: Defence Minister Khawaja Muhammad Asif has said that those who moved the Supreme Court (SC) against the trial of civilians in Military Courts (MS) have political motives. Speaking in the National Assembly on Thursday, he said it is not the first time that the trials of civilians will take place in military courts. He said there are precedents of these trials and the judiciary has also endorsed them on various occasions in the past. He recalled that twenty-four or twenty-five civilians were convicted by the military courts in the previous government. The Defence Minister asked the petitioners not to challenge the
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country’s dignity and honor for the sake of their political motives. He said our security personnel continue to render sacrifices in the war on terrorism and that they are our benefactors. Khawaja Asif said the memorials of martyrs and the military installations were attacked on May 9. He said the political workers were motivated by their leader to attack the state, calling it a heinous crime. The Defence Minister also stressed that the institutions should refrain from encroaching into each other’s territory. He warned that such a situation only leads to confrontation. He made it clear that the parliament will not let anybody trespass its territory. STAFF REPORT