NEW FINANCE WIZARD FACES DAUNTING CHALLENGES AHEAD In partnership with
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Tuesday, 12 March, 2024 I 1 Ramazan, 1445
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WHAT LIES AHEAD FOR MUHAMMAD AURANGZEB?
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ISLAMABAD
Rs 50.00 | Vol XIV No 254 I 36 Pages I Islamabad Edition
NEW FINANCE MINISTER FACES TOUGHEST NEGOTIATION OF HIS CAREER AS HE TAKES DRIVING SEAT
ABDULLAH NIAZI
UHAMMAD Aurangzeb woke on Monday morning as the CEO and President of Habib Bank Limited – the largest bank in Pakistan. By the early afternoon he had resigned from his position, a replacement had been named and he had taken oath as a federal minister. Almost immediately after this he was whisked away to the finance ministry where he was warmly welcomed and given charge of the country’s economy. The chain of events didn’t come as a surprise. Mr Aurangzeb had been tipped to take over the finance ministry for weeks. There wasn’t, however, any confirmation over how we would take over. As a free agent and a technocratic appointment to the ministry, the now former banker does not have a seat in either house of parliament. As such his stay as a federal minister is on borrowed time. The constitution demands that he either finds a seat in these six months or loses his status as a federal minister. Such a situation is not without precedent. Back in 2018 Miftah Ismail was made finance minister in the Abbasi cabinet despite not being a member of parliament. Her was appointed at a time when the government had less than six months left in its tenure so it didn’t matter.
Mr Ismail would repeat a similar stint in office during his 2023 term as finance minister. Shaukat Tarin has done the same. He was appointed finance minister but lost the title when he didn’t find a seat within six months and was promptly appointed Special Assistant to the Prime Minister (SAPM). He was later elected to the senate and regained his status as federal minister. The title matters because as federal minister Mr Aurangzeb will be able to deliver a federal
Govt given public mandate, is answerable to masses: PM ISLAMABAD
As Shehbaz Sharif takes charge, what are his first steps for energy sector? g
STAFF REPORT
Prime Minister Muhammad Shehbaz Sharif on Monday while highlighting the huge economic challenges said that the masses had given them the responsibility to address these serious issues and they were equally answerable to the people who had given them a mandate to form the government. Addressing the first meeting of the federal cabinet, the prime minister said that Allah Almighty had bestowed upon them the responsibility to serve the nation and reiterated to meet their expectations by striving day and night. He urged the members of the cabinet to serve the nation and country with new fervor and commitment so that in the history, they could be remembered for delivering on their promises. After February 8 general elections, the political parties received a split mandate, the PML-N, PPP and the allied parties were given the mandate to form the government. Now, this mandate should be respected which also required that they should concentrate their energies and move on the path of progress rapidly, he added. The prime minister said that during their previous 16month government, the people had witnessed their performance, adding that they saved the country from running into default. The prime minister said when they assumed the reigns of the previous government, they had two choices; either to sit as silent spectators or be counted, at that time they had decided to take responsibility of the country. Then the interim government followed them but the economic situation in the country was stable and did not worsen, he opined. The prime minister said that once more, they took the responsibility of steering the country out of the huge challenges and without wasting time, they should tread upon that path leading to destination. Felicitating the nation on the arrival of Ramazan, he said that about Rs12 billion Ramazan Package was being initiated under which the edible items at the Utility Stores and mobile utility stores would be provided to the poor and deserving. Besides, under Benazir Income Support Programme (BISP) millions of rupees were being distributed among the poor as additional cash amount. He underlined the need of strict monitoring of the distribution of different items under Ramazan package so that the food stuff should be readily available to the deserving. Mentioning the spiraling price hike as one of the major challenge, he stressed that the federal government, in collaboration with the provinces, would take measures to reduce it especially in the holy month of Ramazan. “I will not tolerate any kind of disturbance in the prices of commodities in the federal territory,” he emphasized and assured support and assistance to the provinces.
budget in parliament which is due four months from now in July. Only federal ministers or members of the house can deliver budget speeches in parliament. The federal minister title will also matter because it will give Mr Aurangzeb more legitimacy when he goes to the negotiating table with the International Monetary Fund (IMF). CRUCIAL NEGOTIATION: This will be the most important negation of Mr Aurangzeb’s
entire career. Pakistan is currently entirely beholden to the IMF to complete its debt repayments. The current situation is an amalgamation of policies and decision making that transcends different governments of different political parties in Pakistan. Pakistan is currently party to a ‘Stand-ByAgreement’ that the IMF signed with the PDM government back in June 2023. The SBA worth over $3 billion had been signed after Pakistan and the IMF failed to successfully conclude a programme that had been marred first by the imposition of a petrol subsidy by Imran Khan’s government, and later by the bull-headed negotiation tactics of PDM’s finance minister Ishaq Dar. The SBA had been signed as a sort of bridging agreement that would see Pakistan through its election period so that whoever came to power could then start negotiations anew with the fund. Two tranches of that $3 billion agreement have been made already. But now the fund is insisting that even the third tranche of the SBA will be negotiated by the new government. Mr Aurangzeb will have to find a balance in these negotiations. The IMF’s experience with Pakistan’s last finance minister was less than ideal. It will be important to see how he manages rising inflation and a fall in business confidence while also dealing with the fund’s expectations.
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EARLY SHUT DOWN OF MARKETS IS ON CARDS AGAIN AS PM DIRECTS POWER AUTHORITIES TO UPDATE HIM ON ENERGY SAVING PLAN PROFIT
AHMAD AHMADANI
In a flurry of moves, Prime Minister Shehbaz Sharif set about putting affairs in order on Monday as he gets comfortable in the chief executive’s chair. The day began with the swearing in of his 19 member cabinet that had been notified to President Zardari a day earlier and was followed by highlevel meetings with the new ministers. On the same day, the prime minister paid special attention to the power ministry. The immediate agenda item was the provision of uninterrupted supply of electricity and gas to consumers during the holy month of Ramzan. The direction to the power authorities come at a time when gas prices are under a major upheaval under the direction of the International Monetary Fund (IMF) which wants gas used for commercial activities rather than
for domestic consumers. Despite the recent revision, the PM was determined to provide short-term relief to domestic consumers in Ramzan. At the same time, however, Mr Sharif also called for a report on the implementation of the Energy Saving Plan. The plan was first conceived early last year during Mr Sharif’s first term as Prime Minister under the banner of the PDM. The government back then had claimed they could save over $1 billion by many measures including the early shut down of markets. The usefulness of the policy has been hotly contested by the country’s business community, in particular by the retail sector which saw a reduction in its business hours. As part of his instructions to the power authorities, the prime minister also directed the provision of every possible facility to the private sector, local and foreign investors in the exploration of gas
and oil, refining, and distribution of these natural resources. A high-level review meeting regarding energy sector reforms was held in Islamabad on Monday under the chairmanship of the prime minister. Addressing the participants, Mr Sharif said that the government was not meant for doing business, rather its responsibility was to extend all kinds of facilities to the private sector and ensure protection of the rights of the consumers especially the vulnerable segments of the society. He also asked for steps for promotion of global investment in exploration of Tight Gas and undersea oil and gas reserves, regretting that Pakistan’s maritime area was huge in size when compared with Balochistan province but no steps were taken to explore its hidden natural resources.
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What can KP’s proposed mining policy do? g
KPK CM DECIDES IN PRINCIPLE TO INTRODUCE RUDIMENTARY REFORMS IN MINING SECTOR PROFIT
AZIZ BUNERI
Chief Minister Khyber Pakhtunkhwa Ali Amin Khan Gandapur has decided in principle to formulate a new Mining Policy in the province and introduce rudimentary reforms in Mining Sector with the aim to align it on modern lines and ensure effective and prudent use of mineral resources for enhancing revenue of the province. He has directed the high ups of the Mineral Department to impose a ban on the issuance of mineral leases until the formulation of new policy further directing them to submit details of the mining leases
already issued. It is worth mentioning that mining is a major avenue of investment that the Special Investment Facilitation Council (SIFC) has set out in particular for foreign investors. Some of Pakistan’s most promising mining sites are in KP, and the provincial government will have a vital role to play in their utilisation. The CM was chairing a meeting of the Mines and Mineral Development Department here the other day. Chief Secretary Khyber Pakhtunkhwa Nadeem Aslam Chaudhry, Principal Secretary to CM Amjad Ali Khan, Secretary Finance Amir Sultan Tareen, Secretary Mines & Mineral Development Hameedullah
Shah and other relevant quarters attended the meeting. The Chief Minister also directed the high ups of the department to complete homework on the establishment of a government-owned Mining company, introduce mechanical mining in the province. A major issue in the past in the mining departments has remained the issuing of tenders and contracts being unfairly awarded. To counter this, the government is proposing an E-bidding system for the issuance of mineral leases further directing them to shift the entire paper work of the department to a paperless system. However as of now this proposed system is still conceptual and has not been set out properly.
Ali Amin Gandapur said that Khyber Pakhtunkhwa was replete with precious mineral resources and the mineral sector had the potential to generate much revenue for the public exchequer adding that it was the need of the day to ensure prudent and effective use of the mineral resource to increase revenue. The Chief Minister stated that the natural resources were the assets of the people of the province, and made it clear that no individual will be allowed to use their resources for his personal benefit. “Conducive environment will be ensured for the intending investors in the province, they will be encouraged to invest in the province and will provide all out facilities under the Ease-ofDoing Business policy of the provincial government,” the Chief Minister remarked.
ECP sets April 2 for polling on 48 Senate seats ISLAMABAD
STAFF REPORT
In order to fill 48 vacant seats, the Election Commission of Pakistan (ECP) Monday announced holding the Senate elections on April 2. Fifty-two seats in the upper house of parliament will fall vacant after the expiration of the 6-year term of the incumbent Senators on Tuesday. The elections, however, would be held to elect 48 senators as 4 reserved seats for the erstwhile Federally Administered Tribal Areas (Fata) had been abolished after the 25th Constitutional amendment. The electoral watchdog said that an official schedule of the elections would be issued on March 14. Polling would be held to elect members against seven general seats, two women, two seats for technocrats, including Ulema and one seat for non-Muslims from Sindh and Punjab. In addition to this, lawmakers from Khyber Pakhtunkhwa (KP) and Balochistan would elect members against seven general seats, two women and two seats for technocrats, including Ulema. Members of the National Assembly will elect one general seat and one seat for technocrats, including Ulema from the federal capital, it added. A day earlier, the ECP appointed returning officers (ROs) in Islamabad and the four provinces for the conduct of the Senate election. According to a notification issued by the election watchdog on Sunday, ECP Director General Training Saeed Gul will be the Returning Officer (RO) in the federal capital, whereas provincial election commissioners Aijaz Anwar Chohan, Sharifullah, Shamshad Khan, and Muhammad Farid Afridi will be returning officers in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, respectively.
CJP Isa comes down hard on IG Islamabad in journalists’ harassment case ISLAMABAD
STAFF REPORT
Chief Justice of Pakistan (CJP) Qazi Faez Isa expressed serious displeasure at Islamabad IG Akbar Nasir Khan on Monday as the apex court heard the matter concerning the Federal Investigation Agency’s (FIA) harassment of journalists accused of an anti-judiciary campaign. Irked over the police’s failure to arrest individuals involved in the abduction of journalist Matiullah Jan in 2020, the CJP while addressing Attorney General of Pakistan (AGP) Mansoor Awan said, “A crime was recorded on camera, but you could not trace those responsible for it?” “Mr AGP, what kind of an IG is this? He should be removed,” CJP Isa asserted. The chief justice asked the Islamabad IG
how much more time was needed to arrest the abductors if four years were not enough. “Do you need four centuries?” he asked, warning the IG that the whole country had its eyes on his performance. “It appears from your performance that you are playing the role of a facilitator. Shoot one journalist, torture, or pick up another,” the CJP stated, criticising how cameras installed under the Safe City project also stop working during such incidents. A lawyer in the courtroom then informed the SC that journalist Asad Toor was currently in jail with an FIR lodged against him. The chief justice asked the FIA officer how the provisions under which Toor was booked were justified. “Does the FIA have any well-educated individual within its ranks?”, the CJP asked, suggesting the institution get someone to translate the law in Urdu otherwise.
“Did we [the judiciary] complain to you against any journalist? Did you issue notices to journalists in our names? Are you using us to get your work done?” the chief justice asked. Journalist Asad Toor has been booked under some serious provisions, he said. “How do the provisions, including those about sensitive information, apply here?” CJP Isa further asked, taking the FIA officer to task over not even mentioning the anti-judiciary campaign in the FIR when the summons issued to Toor were regarding running a campaign against the judiciary. “You have used the judiciary to get your work done,” the chief justice asserted. Barrister Salahuddin informed the court that the JIT to probe the allegations against the journalists was formed before the registration of the cases. He prayed to the court to declare the JIT notification null and void.
The chief justice then inquired why an officer from the Inter-Services Intelligence (ISI) was part of the JIT, as the intelligence agency is not a law enforcement agency and it is also not the jurisdiction of the agency. Salahuddin further argued that the FIA cannot take action against the journalists under PECA, as only Section 20 of the act deals with such allegations, however, the complainant in such cases should be a ‘natural person’. The AGP also agreed with the barrister’s arguments and concurred that certain sections of PECA did not apply to the FIR. The allegations levelled by former commissioner Rawalpindi Liaquat Ali Chattha on February 17 regarding the election commission and CJP colluding to rig February 8 general elections also came under discussion during the hearing. CJP Isa stated that a commissioner accused him of rigging the elec-
tions and the statement was broadcast by all the TV channels without any verification. He added that it is common practice globally that a news piece is first verified before being aired. “No journalist asked the accuser what proof he had. Does this happen anywhere in the world?” the CJP asked. “However, should the judiciary have issued notices to all the TV channels?” he rhetorically asked. He again warned the investigative agency to not “use” the judiciary. “A person threatened to kill me, but the SHO sat on the application for five days. I was then told that I will be informed of the progress on the matter after instructions are taken from the minister,” the CJP said, further adding that a false report was submitted in the SC in the Matiullah Jan abduction case. “Are the number plates of vehicles in which the kidnappers come not visible?” CJP Isa asked.