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PRESIDENT SEEKS LAW MINISTRY’S ‘ADVICE’ AFTER CEC DECIDES AGAINST MEETING ON POLLS DATE Friday, 25 August, 2023 I 7 Safar, 1445
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Rs 15.00 | Vol XIV No 55 I 8 Pages I Islamabad Edition
CEC RESPONDS TO ALVI’S g SAYS SITUATION CHANGED NOW g CARETAKER LAW LETTER, INSISTING GIVING AFTER RECENT AMENDS TO MINISTER SAYS NOT ELECTIONS DATE SOLE ELECTION LAWS, WHICH YET RECEIVED PREROGATIVE OF ECP EMPOWER CEC TO FIX DATE PRESIDENT’S LETTER
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ISLAMABAD
STAFF REPORT
RESIDENT Arif Alvi on Thursday wrote a letter to the Ministry of Law and Justice to seek “advice” following Chief Election Commissioner (CEC) Sikandar Sultan Raja’s “refusal to meet head of the state for fixing an appropriate date” for general elections. “Participation in such a confab would be of “scant importance” after recent changes to the election law…citing Clause 57 of Election Act meant that giving election date is the sole prerogative of ECP”, the Chief Election Commissioner (CEC) Sikandar Sultan Raja mentioned in his response to the letter sent by President Arif Alvi. On Wednesday, President dr Alvi had written to Sikander Raja, inviting him for a meeting regarding holding general elections in the country. In a statement on X, formerly known as Twitter, the President House said that Alvi has written the letter to the ministry’s secretary on the ECP’s response with regard to the letter he had sent for a meeting to decide the election date. On the other hand, Caretaker Law Minister Ahmad Irfan Aslam Ahmed Irfan Aslam has said that they are yet to receive the said letter from the president. “We will send a response in light of the applicable laws once we receive the
letter,” Aslam told Geo News. In his letter, President Alvi quoted Article 244 of the Constitution, saying he was duty-bound to get the elections conducted in the 90 days’ prescribed period once the National Assembly is dissolved prematurely. “Whereas, the National Assembly was dissolved on the advice of the prime minister by the president on August 9. Whereas by virtue of article 48 (5) of the Constitution of the Islamic Republic of Pakistan, the president is obliged to appoint a date not later than ninety days from the date of dissolution for the holding of the general elections,” the president’s letter said. According to the ECP spokesperson,
11 more cases lodged: 10 JITs formed to dig further into Jarawanwala incident LAHORE
the CEC had sent a written response to the president, in which it mentioned that he [Raja] won’t meet him to discuss the election date issue. The letter stated the last National Assembly was dissolved under Article 58 (1) [just days before the completion of its tenure] on the advice of prime minister [Shehbaz Sharif]. Had the president dissolved the legislature after it completed the five-year term, he would have enjoyed the power to announce election date under Article 58 (2) which wasn’t the case, it added. Moreover, the CEC also noted in the letter that the process to carry out delimitation had started on the basis of new census. Earlier in the day, it was reported
that Raja had decided to meet Alvi after he received a detailed briefing on the issue by legal experts who said consulting the president wasn’t required after the amendment introduced by the coalition government before leaving the office. However, the situation has changed now, as under recent amendments to election laws, the CEC has been empowered to fix the date for polls without the president’s input. In the letter addressed to the president today, CEC Raja said it was “imperative” to point out that Section 57 of the Elections Act had been amended due to an act of Parliament, which had empowered the commission to “announce the date or dates for the general elections”. “Where the president dissolves the National Assembly, in his discretion, as provided in Article 58(2) read with Article 48(5) of the Constitution then he has to appoint a date for the general elections. However, if the assembly is dissolved on the advice of the prime minister or by afflux of time as provided in Article 58(1) of the Constitution, then the commission understands and believes that power to appoint a date or dates for elections rests exclusively with the Commission. “The commission believes with utmost respect that the reliance placed on the provisions of the Constitution mentioned on your subject letter are not applicable in this context,” Raja’s letter said.
PM commends heroes who rescued trapped cable-car passengers in daring operation
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ISLAMABAD
STAFF REPORT
STAFF REPORT
The caretaker Punjab government on Thursday constituted multiple joint investigation teams (JIT) to investigate the vandalism and arson of 19 churches and several homes of Christian community members in Jaranwala tehsil over blasphemy allegations last week. On the other hand, the police claimed to have arrested 17 more suspects in Jaranwala incident after collecting data through geofencing while 11 more cases were registered by the police. On August 16, a charged mob, incited by messages through loudspeakers from mosques, stormed the Christian neighbourhood, ransacking and torching at least 19 churches and over 80 residences besides terrorising members of the community. On Thursday, the Punjab government through Additional Chief Secretary (Home) Shakeel Ahmed constituted at least 10 different JITs to probe the Jaranwala incident further. The JITs have been constituted under the provisions of Section 19(a) of the Anti-Terrorism Act, 1997 and comprise six members, including SSP (Investigation) Faisalabad, DSP CTD Faisalabad, DSP Inv-1 Faisalabad as well as Inspectors/SHOs and Sub-Inspectors of relevant police station. Each JIT shall also comprise of one additional co-opted member. Earlier that day, the Punjab police had booked at least three local Christians over blasphemy allegations and attempted to negotiate with the Muslim mob. Members of the Christian community have held demonstrations demanding immediate repair to and restoration of the burnt churches and houses. The protestors have alleged that despite intimation, the Faisalabad police did not take timely action against the agitators. On the other hand, initial investigations have indicated a meticulously orchestrated plot behind the incident of ransacking of property in Jaranwala. Following the attack, Caretaker Prime Minister Anwaarul Haq Kakar assured all the minority communities in the country that the government was committed to protecting their lives and properties, vowing to bring the perpetrators of the heinous attacks against them to justice. The Punjab government has already announced it will pay Rs2 million in compensation to each family of the Christian community that lost a house during the violence.
Caretaker Prime Minister Anwaarul Haq Kakar on Thursday awarded commendation certificates to the valiant commandos, armed forces personnel and local residents who rescued eight trapped passengers from a dangling cable-car in Alai area of Battagram. The prime minister, addressing the commemoration ceremony held at the PM Office, said the recognition was well-deserved by every individual involved, who exhibited remarkable prowess in orchestrating the mission to a triumphant conclusion. He emphasized that the entire nation shared the concerns for the safety of the trapped children, who remained stranded on the cablecar for hours. He remarked that the successful endeavour was a collaborative achievement, acknowledging that recognition was also due to those who, from the confines of their homes, prayed for the safe and successful rescue operation. He said being a father, he could feel the pain of stranded children’s parents but the teamwork based on prudent efficient planning ensured their safety. “Hats off to all of you who did an immaculate job. The biggest credit goes to those who were carrying out the planning,” he remarked. Sharing their emotions with the prime minister, the children said they were extremely worried but had a sense of satisfaction after coming to know that the Pakistan Army had launched the rescue operation. The prime minister said that the paramount duty of the state encompassed providing quality
healthcare and education, and an atmosphere for a dignified life. Referring to the martyrdom of security personnel in South Waziristan, the prime minister said that those trying to obstruct the State’s functioning through their ill intentions must remove their misunderstanding. He reiterated that the nation would never forget the sacrifices of the martyrs of the war against terrorism, including politicians, police services, Pakistan Army, journalists, PAF (Pakistan Air Force), and common citizens. “This is our home. We know how to run it,” he remarked. The prime minister said the pains of the terror victims’ families could not be expressed in words. He said the salaries being given to the security forces personnel were just meant to suffice their needs as their sacrifices could only be recognized through respect. “We revere them. We respect them,” he commented. Prime Minister Kakar reassured that the state affairs were in the hands of highly capable individuals. The caretaker setup had limited time and mandate to facilitate the forthcoming general elections, he added. Earlier, the prime minister also distributed commendation
certificates among the security forces personnel as well as the local experts who took part in the rescue operation. The rescued children, who also attended the event, were also given souvenirs. In his address, Chairman of the National Disaster Management Authority (NDMA) Lt. General Inam Haider Malik said the effective coordination among all relevant departments led to the success of the difficult operation. He said the safety audit of all the cable cars in the region had been ordered and a report would be presented to the prime minister. He, however, emphasised the capacity building of the local rescue departments to deal with such emergency situations, which, he said, was also being worked out. Caretaker federal ministers Murtaza Solangi, Jalil Abbas Jilani, Jamal Shah, Sarfaraz Bugti, Anwar Ali Hyder, Ijaz Gohar and Madad Ali Sindhi also attended the ceremony. FEAR OF WIRE, CAR BREAKAGE: Talking to APP, Ali Swati, the local expert who rescued the trapped passengers through the zipline, said that while carrying out the mission, he had concerns about the strength of the wire the cable car was dangling on.
Dollar reaches record high, soars above 300 against PKR in interbank g
RISING PRICE SERIOUS CAUSE OF CONCERN FOR GOVT AS IT HAS RAISED PUBLIC DEBT UNEXPECTEDLY HIGH PROFIT
STAFF REPORT
The US dollar ascended to a record high against the Pakistani rupee on Thursday, crossing the barrier of Rs300 to the greenback during morning trade in the interbank market. The greenback was changing hands in the interbank market at Rs300.4 at 11:15am, according to the Forex Association of Pakistan. In the open market, the dollar was trading at Rs314. Yesterday, the dollar closed at Rs299.64, according to daily data released by the State Bank of Pakistan. In the open market, it was traded up to a price of Rs315 during the day, but the Exchange Companies Association of Pakistan (ECAP) had reported the buying and selling prices as Rs309 and Rs312, respectively. As the dollar continued its upward march today, analysts called for a “sound strategy” from the government to curtail the black market. “The government and all stakeholders need to implement a sound strategy to eliminate the black market,” said Saad bin Naseer, director of financial data and analytics portal Mettis Global. Naseer stated that it is very difficult to find the dollar in the interbank market however it was readily available in the open market at a “black [market] price”. He added that the central bank’s policy to keep the interest rate at 23pc was “not helpful as individuals find it more lucrative to invest in the foreign [currency] market”. Forex Association of Pakistan Chairperson Malik Bostan warned against hoarding dollars in the hope that its price will increase further. “Due to the increase in the dollar in the [inter]bank market, common people are also unnecessarily buying dollars in the hope that its price will increase further,” he said. He added that the lifting of the bans on imports due to International Monetary Fund (IMF) requirements has added more pressure on the PKR. Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan, cited the resumption of non-essential imports as the primary reason for the steady decline of the rupee. He also agreed with Bostan’s concerns, requesting people to avoid buying the greenback in an “already tumultuous time for the rupee”. Paracha went on to say that “no one will come from the outside to save us, and neither will our politicians do anything”, stating that the people should face this together. The desperation was noted in the open market as the average buyer was purchasing dollars at all costs, according to a Dawn report. Currency dealers said the increasing demand had pushed the price so high that it went beyond the red line set by the IMF. The government had assured the IMF before the renewal of Extended Fund Facility in June that the difference between the rates in the two markets would not exceed 1.25pc. The current differential is about 5pc. Currency dealers argued that while the IMF was not in favour of interference in the currency market, the demand for keeping the differential at 1.25pc was in itself an interference. The exchange companies contend that the open market is a reflection of prices in the interbank market, but the rise of the dollar in open market belies this explanation. The increasing dollar price is a serious cause of nervousness for the government as it has raised the public debt unexpectedly high. Former finance minister Ishaq Dar said in a recent tweet the devaluation of rupee had raised the public debt by Rs9.3 trillion in FY23. “The struggle to keep the dollar below Rs300 won’t work. Within a few days the dollar will cross this line. This will happen because the demand is high and there are no inflows in the pipeline,” according to Atif Ahmed, a currency dealer in the inter-bank market. Observers feel that uncertainty on the economic front is growing and the currency market is sensitive to political developments. A currency dealer who claims to know the mind of policy makers, said political uncertainty had made the common man desperate, leading to “dollarisation of the economy”.
Track and trace of cotton as well. But will it be effective?
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MANUFACTURERS OFTEN UNDER-REPORT PRODUCTION NUMBERS PRECISELY TO EVADE TAX PROFIT
SHAHZAD PARACHA
The Caretaker Federal Minister for Commerce, Industries and Production Dr. Gohar Ejaz and Chairman of the Federal Board of Revenue (FBR) Malik Amjed Zubair Tiwana on Thursday agreed to introduce Track & Trace System for transparent cotton trade. According to details, The caretaker Federal Commerce and Industries minister and chairman FBR in a meeting decided that the tax department, in collaboration with federal ministries and provincial de-
partments, will introduce a Track and Trace System at ginning factories in Pakistan to promote transparent cotton trade. The track-and-trace system Manufacturers often under-report their production numbers precisely to evade tax. This is where the problem starts. Say, for example, that you are a fertiliser manufacturer and produce 500 bags of Urea. The demand for fertiliser from your plant is 400 bags. Now, if there are 500 bags being produced that would mean the supply is increasing beyond demand which results in the price falling. The problem for the man-
ufacturer is that the government will tax every single bag of Urea that is purchased. So instead of reporting these extra 100 bags, the producer will show that they are making an even 400 bags and sell the remaining 100 at a lower price free of tax. {Editor’s note: Urea has just been used as an example here and the production numbers are also simply hypothetical and meant to help the reader understand better.} This then creates an artificial shortage. In most industries under reporting is much more blatant than in our example. Urea, cigarettes, cement, and sugar are susceptible to
artificial shortages and are also part of smuggling rackets. Just last month the FBR’s customs department (yes the FBR has one of those precisely for this reason) seized urea fertiliser and sugar worth Rs 392 million from Balochistan’s Khuzdar during three raids as part of a major anti-smuggling operation. Customs Intelligence seized 41,883 bags of urea having a market value of Rs 167.53 million, and 44,957 bags of sugar having a market value of Rs 224.79 million. It’s a pretty simple system. Manufacturers underreport their production numbers. They then sell the unreported surplus pro-
duction outside of the tax net at cheaper rates and the black market grows. This has resulted in startling estimates of just how big the shadow economy is in Pakistan with academics and researchers estimating the size of this undocumented economy anywhere between 40-80% of the country’s GDP. So what can be done about this? The T&T system proposes that tax collection be done directly at the source. That means the government monitors production and catalogue how much a company’s output is and then tax them directly on those numbers.
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