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NO SPACE FOR ADDITIONAL SUBSIDIES UNDER ONGOING IMF PROGRAM: SHAMSHAD AKHTAR thursday, 31 august, 2023 i 13 Safar, 1445
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ISLAMABAD
Shahzad paRacha
ARETAKER Finance Minister Dr Shamshad Akhtar on Wednesday said there is no space for additional subsidies under the ongoing International Monetary Fund (IMF) program. Speaking to the media following a meeting of the Senate Standing Committee on Finance on Wednesday, she said that the current economic circumstances leave no room for additional subsidies within the IMF agreements.
Says govt committed to prevent hardships faced by vulnerable masses
Acknowledges previous govt had entered into binding agreements with IMF
Dr Akhtar communicated the government’s sensitivity toward the welfare of the country’s poor, stressing that the administration is resolute in its commitment to prevent any exacerbation of hardships faced by the vulnerable. The caretaker finance minister acknowledged that the previous governments had entered into binding agreements with the IMF, elucidating that these agreements inherently encompassed provisions for subsidies. Consequently, she affirmed that the existing agreements do not permit the inclusion of supplementary subsidies, due to their predetermined nature within the terms established with the IMF. Dr Akhtar said that the current administration is dedicated to crafting a comprehensive strategy aimed at bolstering the nation’s economic health. She underscored that the caretaker government’s agenda revolves around achiev-
ing economic stability and implementing measures conducive to the enhancement of overall economic conditions. One of the significant measures outlined by the caretaker finance minister involves efforts to stabilise the exchange rate between the national currency, the rupee, and the US dollar. This strategy aims to mitigate volatility in the currency market, ultimately fostering a more conducive environment for economic growth and development. Earlier, briefing the Senate Standing committee on Finance and Revenue held under the chair of Senator Saleem Mandviwalla in Chair, Dr shamshad lamented that the economic situation of the country was even graver than expected. Every conceivable effort had been directed towards undermining the economy. “Unfortunately, no effort has been spared to destroy the economy,” she added. The Senate Committee expressed concerns over the growing dollar instability, un-
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Finance Minister’s statement misinterpreted: Solangi ISLAMABAD
Staff RepoRt
Caretaker Minister for Information and Broadcasting Murtaza Solangi Wednesday said statement made by Caretaker Minister for Finance Shamshad Akhtar at the meeting Standing Committee of Finance was misinterpreted and taken out of context by some section of the media forcing her to issue clarification. The minister while sharing her video message in this regard wrote on his handle on the X (formerly known as Twitter), “The statement by Dr Shamshad Akhtar, Finance Minister of Pakistan. According to her statement, “a light vein comment was blown out of proportion forcing her to clarify.” In her message, the finance minister said her statement was misinterpreted. “I said “Some people say why did you accept this challenge under such difficult circumstances”, Shamshad Akhtar went on to say. She added, “It is a great honor for me to be given the opportunity to serve my country, the caretaker finance minister and I will serve my country with all my efforts.” precedented electricity cost and a 22% interest rate that are making it challenging for current businesses to survive and thrive. Senator Mohsin Aziz highlighted the issue of’ Capacity Payment’ which currently stands at Rs.1.2 trillion, being paid to IPP’s, and advised that the government should reconsider its agreement with them. eanwhile, another member of committee
Senator Sherry Rehman drew attention to the plight of the public, especially in relation to electricity bills. She underscored how these bills have become an unbearable burden for citizens, many of whom struggle to reconcile bills that often surpass their meager salaries.
falls near Rs325 Jail trial challenged: Imran Khan’s remand Rupee against US dollar in open market in cypher case extended for 14 days
Cypher case trial of PTI chief unacceptable: PTI ISLAMABAD
Staff RepoRt
ATTOCK
Staff RepoRt
The special court established to hear cases under Official Secrets Act on Wednesday extended judicial remand of PTI Chairman Imran Khan for 14 day during hearing of the in cypher case held at Attock Jail. The PTI chief who has been incarcerated in Attock Jail, was presented before Special Court’s Judge Abul Hasnat Mohammad Zulqarnain who held proceedings in the jail Superintendent’s office. Earlier, in light of security concerns the Law and Justice Department decided to conduct the cypher case hearing against the PTI chairman in the jail. Judge Abul Hasnat Mohammad Zulqarnain of the special court set up to hear cases under the Official Secrets Act was designated to preside over the cipher case proceedings, as outlined in the ministry’s notification. Though the cypher issue never really faded out, it resurfaced after a US publi-
cation recently published its contents. The Federal Investigation Agency (FIA) has now launched a thorough probe into the alleged “disappearance” of the diplomatic cypher, booking Imran Khan and former foreign minister Shah Mahmood Qureshi under the recently enacted Official Secrets Act. The court extended the judicial remand of the former premier till September 13 and immediately left for Islamabad after conducting the hearing. Security outside the jail was beefed up, as police and Elite Force personnel were deployed around the prison premises and all the routes leading to the jail were sealed. Earlier, a special court established to try the case under the Official Secrets Act, 1923, ordered the Attock jail superintendent to keep Imran in “judicial lockup and produce him on 30.08.2023 before this court”. Imran’s number 2 in the PTI, Shah Mahmood Qureshi, has already been arrested in the same case. It should also be noted here that though the FIA had requested the court to
Pakistan Tehreek-e-Insaf (PTI) Core Committee made it clear that they would not accept the cypher trial against PTI Chairman and former prime minister Imran Khan in Attock Jail come what may, as he was deprived of “right to fair trial”. The PTI core committee strongly condemned the judicial remand of PTI Chairman and held a detailed deliberation over the party legal strategy regarding the trial of PTI Chairman in jail on Wednesday. The participants said that PTI Chairman was being punished and subjected to political revenge for adopting an uncompromising stance on pursuing the Haqeeqi Azadi movement of the nation and saying ‘absolutely not’. PTI Core Committee said that the secret trial of PTI Chairman in jail clearly indicated that the government was trying to conceal something from the nation. The participants said that PTI Chairman’s legal team moved the court against the secret trial in the jail, demanding that the honorable court should take up the issue instantly, besides issuing orders to stop the series of worst vindictive action against Imran Khan. PTI Core Committee urged that the process of political victimization of PTI Vice Chairman Shah Mehmood Qureshi through the cypher case should also be put to a halt forthwith.
CONTINUED ON PAGE 03 grant physical remand for Imran Khan, the court had rejected the plea and sent him on judicial remand instead. According to the FIA, once judicial remand has been granted, pleas for physical remand are no longer admissible and only a bail application can be filed before trial begins. Imran Khan’s legal team including lawyers Salman Safdar, Intezar Panjutha, Shoaib Shaheen and others were present at the Attock jail A post-arrest bail application was also filed by the PTI chairman’s legal team. The lawyers argued that there is no legitimate Official Secret Act case against Imran and that the entire matter had been concocted for political revenge.
Caretakers brace for impact
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Economy is worse than they thought. Have caretakers bitten off more than they can chew? PROFIT
abdullah Niazi
Despite all of the Election Commission of Pakistan’s (ECP) assurances that it would ensure fresh delimitations are carried out at the earliest, the incumbent caretaker setup is getting awfully cosy in Islamabad. Early on Wednesday morning news started to trickle through from the foreign ministry indicating that Caretaker Prime Minister Anwar ul Haq Kakar intends to attend the 78th General Assembly session of the United Nations as Pakistan’s representative. The UNGA session, which opens in less than a week, would mark the first time an interim Prime Minister represents the country at the UN. At the same time Kakar’s cabinet is displaying signs of similar comfort in their offices. The new minister of commerce announced a rather ambitious
plan aimed at revitalising Pakistan’s industries and propelling textile exports to $25 billion for the current fiscal year. At the same time, the Minister of Information Technology, Dr Umar Saif, promised that auctions for 5G bandwidth would be conducted within the next 10 months. There have been other similar bold
claims from the caretakers. It is clear that the prime minister and cabinet are both preparing themselves for a very long stint in office. At the same time, they would do well to keep in mind the scale of the challenges they face. In a very sobering press conference, finance minister Shamshad Akhter pointed out that the state of the economy was worse than
On Tuesday, Imran Khan was re-arrested in the cypher case moments after his sentence in the Toshakhana criminal case was suspended by the Islamabad High Court. Moments after, the Islamabad High Court had suspended the sentence of Imran Khan in the Toshakhana criminal case. A division bench of IHC Chief Justice Aamir Farooq and Justice Tariq Mahmood Jahangiri accepted Imran Khan’s appeal and pronounced the decision. The court had ordered to release Imran Khan from jail after submitting bail bonds surety of Rs100,000.
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Spread between buy, sell rate of dollar widens in the interbank, reflecting market volatility PROFIT
Staff RepoRt
On a day marked by the caretaker government’s finance team loudly announcing the country’s economic position was worse than they had anticipated, the rupee’s value continued to decline falling to nearly Rs 325 per dollar in the open market. Exchange companies were buying the dollar at Rs 322 and quoting a sell rate of Rs 324.5. This is significantly higher than the ‘official’ rates shared by the Exchange Companies Association of Pakistan (ECAP) in its noon update. According to the ECAP, the US dollar was being bought at Rs 316 and sold at Rs 319. This equates to a difference of Rs 5.5 between the ‘official’ and ‘unofficial’ open market selling rates. The difference in the rates between the open and interbank market is even more pronounced. The dollar was being bought at Rs 304.65 and sold at Rs 305.2, respectively, in the interbank market. This amounts to a difference of Rs 13.8 or 4.52 percent between the interbank and ‘official’ open market rates. The difference between the interbank and ‘unofficial’ open market rates is a whopping Rs 19.3 or 6.32 percent. Moreover, there is a spread of 55 paisa between the buying and selling rate in the interbank.
Many offences either deleted or changed in NAB Law amends, observes CJP
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CONTINUED ON PAGE 03 the government had anticipated. Her remarks, made during a meeting of the Senate’s Standing Committee on Finance today, asserted that the interim set-up had “inherited” the International Monetary Fund (IMF) programme, hence, it was “non-negotiable”. The finance minister’s statement comes as Pakistan remains plagued by the inflated cost of living, particularly exorbitant electricity prices that have forced residents to take to the streets across the country. Prime Minister Kakar is already trying to position himself as a populist. He is making the rounds as a politician would and has called emergency meetings to discuss the high electricity prices that consumers are now protesting against. However, he must realise that the finance minister is correct. There is no fiscal space for the government to provide subsidies and for however long they are here the IMF’s conditions must be followed diligently. The government is trying to position itself as a long-term technocratic answer to Pakistan’s woes. The problem is it does not have the mandate required to solve the problems plaguing Pakistan. Short of subverting the constitution, there is little they can do to gain that mandate.
ISLAMABAD
Staff RepoRt
Chief Justice of Pakistan (CJP) Umar Ata Bandial on Wednesday sought an updated list of NAB cases transferred after the amendments were introduced, saying that “many offences were either deleted or changed in the NAB amendments and a crucial point in the present case is that the entire law has been turned upside down.” “The petitioner has given some Islamic examples for accountability standards” and that “accountability is the basis of the democratic process”, but in this case as a result of amendments to the NAB law, many of the offences have either expunged or the evidentiary procedure was altered,” observed Chief Justice of Pakistan (CJP) Umar Ata Bandial CJP Bandial while heading a three members bench of the apex court hearing pleas against the amended NAB Law. The three-member bench, led by CJP Bandial, comprises Justice Mansoor, and Justice Ijazul Ahsan resumed hearing Imran Khan’s plea against the NAB amendments. The CJP continued by stressed that the court must be satisfied that “no crime has been abolished”. He also expressed reservations over how difficult the process of proving a corruption case has been made through the changes. “It must be ensured that the crime of corruption has not been reduced to mere paperwork,” said CJP Bandial.
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