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agrees on talks PAK-CHInA COOPerATIOn TO bOOsT eCOnOmIC Hamas to free Israeli hostages PrOsPerITy, regIOnAl COnneCTIvITy: Pm Sunday, 7 July, 2024 I |30 Zil-Hajj, 1445
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Says would not tolerate any disruption in implementation of CPEC projects
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ISLAMABAD
Reviews progress on sending 1,000 Pakistani students to China for AI education
MIAN ABRAR
RIME Minister Muhammad Shehbaz Sharif on Saturday said that a new era of cooperation with China commenced in areas of information technology, communication, minerals and mining; and energy which would boost economic progress, regional connectivity and the bilateral ties. Chairing a meeting to review implementation of agreements and MOUs between the two countries reached during PM’s recent visit to China, the prime minister said that he would not tolerate any disruption in the implementation of the same, declaring that he would personally supervise the process. Referring to time-tested Pak-China friendship, he said that China had always supported Pakistan in difficult and hard times. “China has emerged as the strongest economic power and Pakistan can emulate its development,” he added. The prime minister observed that recently a delegation of Chinese shoes manufacturing companies had visited Pakistan with regard to relocation of their plants in Pakistan, adding that such companies had the capacity to invest about 5 to 8 billion dollars in Pakistan, PM Office
Media Wing said in a press release. He said that the local shoes manufacturers association was in constant contact with the Chinese companies in this regard. Moreover, he said about 12 renowned Chinese companies related to agriculture sector would be taking very active part in the Food and Agri Expo being held in Pakistan. The meeting was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers including Jam Kamal Khan, Attaullah Tarar, Abdul Aleem Khan, Sardar Awais Khan Leghari, Dr Musadik Malik, Rana Tanvir Hussain, Muham-
mad Aurangzeb, Ahsan Iqbal, Minister of State Shaza Fatima Khawaja, PM’s Special Assistant Tariq Fatemi, Deputy Chairman Planning Commission Jahanzaib Khan and relevant authorities. The prime minister also reviewed progress on sending a total of 1,000 Pakistan students on government scholarships to China for seeking the latest training in the agriculture sector. He also directed for sending of students from the backward areas of Balochistan province on priority basis, besides other students from the four provinces, Gilgit Baltistan and Azad Kashmir on merit.
The prime minister further directed for sending of students in the upcoming educational semester. The meeting was apprised that owing to the agreements and MoUs singed during prime minister’s recent visit, more that 100 Chinese companies were in contact with the Pakistani counterparts for the business and investment purposes. The meeting was also informed by the ministry of IT on the progress made for imparting of technical training, onestop operation for business facilitation, smart governance and smart city by Huawei to a total of 3,00,000 students. The prime minister directed WAPDA authorities for the establishment of safe center for the foolproof security arrangements of Chinese nationals working on Dasu and Diamer Bhasha dams. He asked for immediate implementation of all directives. The prime minister was also apprised of the progress on different projects related to communication infrastructure, power and Gwadar. He directed for expediting work on steps for the development of Gwadar port, airport and industrial zone for transforming Gwadar into a regional corridor hub. The prime minister also asked for accelerating negotiation process with the Chinese manufacturing companies for relocation of solar panels and its accessories units into Pakistan.
Nawaz stresses national imperative of unity to overcome challenges MURREE
STAFF REPORT
PTI chairman rejects Omar Ayub’s resignation on Imran Khan’s directives ISLAMABAD
STAFF REPORT
Rs 20.00 | Vol XV No 7 I 8 Pages I Islamabad Edition
Pakistan Tehreek-e-Insaf (PTI) Chairman Barrister Gohar Ali Khan, following directives from founding chairman Imran Khan, has announced that Omar Ayub Khan’s resignation as central secretary general has not been accepted. Omar Ayub Khan has been directed to continue his duties as central secretary general. The PTI parliamentary party and core committee had also expressed full confidence in Ayub. The parliamentary party and core committee unanimously passed resolutions recommending that founding chairman Imran Khan and chairman Barrister Gohar Ali Khan not accept Ayub’s resignation. Imran Khan also lauded Ayub’s services and sacrifices for PTI. The parliamentary party PTI showed last month disagreement over party’s founding chairman Imran Khan’s decision to accept the resignation of PTI’s secretary general Omar Ayub, urging him to take a Uturn and reappoint Ayub on the post. The party’s parliamentary faction’s demand came within 24 hours after the incarcerated PTI founder endorsed the decision of Ayub, who is also the leader of the opposition in the National Assembly, to step down from his party position. Confusion prevailed within PTI ranks over Ayub’s resignation amid reports of rifts in PTI. On the one hand, the party announced that it would take out rallies for the release of the party supremo. On the other hand, the secretary general left the key party position so that he could focus on parliamentary affairs.
Pakistan Muslim League (N) President and former Prime Minister Muhammad Nawaz Sharif underscored the imperative of national unity in addressing Pakistan’s multifaceted challenges and expressed grave concerns over elements working to destabilize the country and tarnish its international image. In a meeting with PML-N Parliamentary Party Leader in Senate Irfan Siddiqui on Saturday, Nawaz Sharif argued that these forces have no genuine stake in democracy or the people’s welfare, viewing Pakistan’s struggles as their
political gains. Reflecting on the country’s past achievements, the PML-N supremo noted that issues like inflation, load shedding, and terrorism, once successfully tackled, have resurfaced. He assured the nation that with earnest and diligent leadership, these adversities can be overcome once more, God willing. Nawaz recalled that, seven years ago, Pakistan had successfully controlled inflation, eliminated load shedding, and bid farewell to IMF bailouts. However, he lamented the significant setbacks since 2018, which have led to severe difficulties across various sectors. These setbacks, he noted, will take consider-
able time to rectify. Emphasizing the crucial role of security, Sharif advocated for unwavering support to the armed forces and security agencies in their antiterrorism endeavors. He highlighted the intrinsic link between law and order, investment, and national prosperity, urging Parliament to play an active role in these efforts. During the meeting, Senator Irfan Siddiqui presented a comprehensive report on the parliamentary party’s performance in the Senate, reaffirming the Pakistan Muslim League (N)’s commitment to addressing the nation’s pressing issues and striving for a stable and prosperous future.
GAZA
Hamas has accepted a U.S. proposal to begin talks on releasing Israeli hostages, including soldiers and men, 16 days after the first phase of an agreement aimed at ending the Gaza war, a senior Hamas source said on Saturday. Hamas has dropped a demand that Israel first commit to a permanent ceasefire before signing the agreement, and would allow negotiations to achieve that throughout a first six-week phase, the source told Reuters on condition of anonymity because the talks are private. A Palestinian official close to the internationally mediated peace efforts had said the proposal could lead to a framework agreement if embraced by Israel and would end the nine-monthold war between Israel and Hamas in Gaza. The conflict has claimed the lives of more than 38,000 Palestinians, according to Gaza health officials. The war erupted after Hamas attacked southern Israeli cities on Oct. 7, killing 1,200 people and taking some 250 hostages. The Hamas source said the proposal ensures that mediators would guarantee a temporary ceasefire, aid delivery and withdrawal of Israeli troops as long as indirect talks continue to implement the second phase of the agreement. The war has displaced hundreds of thousands of Gazans and caused a humanitarian crisis. It has also fuelled tension across the region, triggering exchanges of fire across Israel’s northern border with Iran-backed Hezbollah in Lebanon. Hamas said it had told Hezbollah it had agreed to a ceasefire proposal in Gaza and that the Lebanese group’s leader had welcomed the step, two sources familiar with the matter said. “If there is a Gaza agreement, then from zero hour there will be a ceasefire in Lebanon,” said one of the sources, an official in Hezbollah, which says its rocket and drone attacks on northern Israel are in support of the Palestinians. Turkey’s president, Tayyip Erdogan, was quoted by Turkish media as saying he hoped a “final ceasefire” could be secured “in a couple of days”, and urged Western countries to put pressure on Israel to accept the terms on offer. Some far-right partners in Netanyahu’s governing coalition have indicated they may quit the government if the war ends before Hamas is destroyed. Their departure would probably end Netanyahu’s premiership. Israel’s Channel 7 News reported that, at a cabinet meeting on Thursday, far-right coalition partner Itamar Ben Gvir had accused security and defence officials of deciding to resume the Gaza talks without consulting him. Hamas’ new proposal responded to a plan made public in late May by U.S. President Joe Biden that would include releasing about 120 hostages still held in Gaza and a ceasefire. The plan entails gradually releasing hostages and Israeli forces pulling back over an initial two phases, and the freeing of Palestinian prisoners. A third phase involves Gaza’s reconstruction. Mossad chief’s solo Qatar visit fuels ceasefire hope David Barnea, head of Israel’s Mossad spy agency, made a solo trip to Doha to meet Qatar’s Prime Minister Mohammed bin Abdulrahman al-Thani, amid renewed efforts towards a potential ceasefire and hostage deal between Israel and Hamas, according to the BBC.
Major decisions loom for federal ministries as PM’s Office initiates rightsizing process ISLAMABAD
AHMAD AHMADANI
The federal government is poised to implement significant changes affecting five key ministries, institutions, and corporations. According to sources, on the orders of Prime Minister Shehbaz Sharif, the Cabinet Division has circulated a letter and proforma to the relevant ministries to gather essential information and suggestions by July 12, 2024. The objective is to explore ways to reduce the size and expenses of these ministries and determine which functions can be managed through public-private partnerships (PPP). The Institutional Reforms Wing of the Cabinet Division has requested responses from the ministries by the specified deadline (July 12, 2024). The goal is to close ministries and institutions
whose functions are more aligned with provincial affairs and to shift many government sector responsibilities to the private sector or PPP models. Documents available with Profit disclosed that the Institutional Reforms Cell (IRC), established by the Prime Minister, has begun its work on rightsizing the government. The IRC has sought recommendations from five federal ministries: Information Technology, Kashmir Affairs, Ministry of SAFRON, Industries and Production, and Ministry of Health Services. The Prime Minister’s Office has also dispatched a letter containing eight questions to these ministries, requesting comprehensive responses. Sources said that the targeted ministries have started working on their answers. They have been asked to clarify the roles of ministries that have been
AGENCIES
transferred to provincial authorities. The Ministry of National Health Services, Regulation, and Coordination has distributed the Prime Minister’s Office (Institutional Reforms Cell) letter to all heads of departments and organizations under its purview. They have been instructed to provide the requested information by July 9, 2024, for onward submission to the Prime Minister’s Office. The Institutional Reforms Cell, part of the Cabinet Division, has been tasked with conducting a thorough rightsizing exercise to ensure efficiency within the government. The Prime Minister has established a Committee on Rightsizing of the Federal Government with specific terms of reference (ToRs). These ToRs include proposing a new architecture for federal functions that can be performed in private mode, determining functions that are
purely provincial, and recommending a clear plan to safeguard assets and human resources during the transition. The committee, chaired by the Minister for Finance & Revenue, held its third meeting on July 5, 2024, and decided to seek immediate input from the five ministries. The response is to be submitted in both hard and soft forms by July 12, 2024. The letter sent to the ministries includes a detailed proforma asking for information on the current structure, financials, and justification for each function. Ministries are asked to provide recommendations on whether functions should be transferred to the provinces, shut down, retained, or modified. They are also asked to consider if functions can be performed via PPP or by the private sector with federal funding. The committee’s primary focus is to streamline government operations, reduce expenses, and improve efficiency. The rightsizing initiative is seen as a critical step toward achieving these goals. Ministries and institutions that primarily deal with provincial affairs are expected to be closed or restructured to align with provincial responsibilities.
Govt to tax all traders come what may, says Finance Minister LAHORE
SHAHAB OMER
Senator Muhammad Aurangzeb, the minister for finance and revenue, on Saturday categorically stated that taxes would be imposed on all traders without exception and at all costs under federal government’s commitment to meeting an ambitious revenue target projected in the budget FY25. “We will definitely address the problems that the budget for the next fiscal year has brought for traders,” Aurangzeb said, addressing business leaders at the regional office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore. The event was graced by notable figures including Federal Minister of Finance & Revenue Senator Muhammad Aurangzeb and Minister of State for Finance and Energy Ali Pervaiz Malik. A significant number of business community members were also in attendance, reflecting the importance of the session. In his address, Senator Muhammad Aurangzeb spoke with caution regarding the policy rate, underscoring its jurisdiction
under the State Bank of Pakistan. “However, there is room for the policy rate to be gradually reduced this year. We aim to increase the tax-to-GDP ratio to 13% over the next three years. Foreign exchange reserves have exceeded $9 billion. The budget needs to be viewed in a broader perspective. We will certainly address the concerns of industrialists,” he asserted. He highlighted a unique challenge faced by Pakistan, noting that it is the only country where the concept of non-filers persists despite the availability of data. “The Federal Board of Revenue (FBR) has developed a mistrustful and distrustful image. We need to fix the FBR. The FBR system is being digitized to eliminate human intervention. Restructuring the FBR is crucial. We will work with the FPCCI research cell to determine strategies for boosting exports and running the industry efficiently. Although work on Independent Power Producers (IPPs) was done during the previous government with government sovereign guarantees, we are reviewing these agreements and if issues with distribution companies are not resolved,
electricity prices will continue to rise. The budget has increased financing for SMEs, and domestic investors are as important as foreign investors,” he stated. Senator Aurangzeb explained the government’s commitment to addressing the difficulties traders face in the national budget. He stressed that for the country to progress, the private sector must take the lead, as sectors flourish and exports grow when govern-
ment intervention is minimized. Minister of State for Finance and Energy, Ali Pervaiz Malik, addressed the session, noting the extraordinary circumstances under which the current national budget was presented. He assured the business community that relief would be provided as fiscal space becomes available. “4.5 million new taxpayers will be included in the tax net. Taxing the salaried class and milk are tough decisions for any government. We understand these difficulties. As soon as space is available, relief will be provided to the public. Once we get the country back on track, everyone will receive relief. Government measures have reduced the inflation rate from 40% to 12%,” Malik stated. He also explained the urgent need to reduce interest rates. Former caretaker interior minister Dr. Gohar Ijaz offered a critical perspective, suggesting that agreements with IPPs should be immediately canceled. “The interest rate should be reduced. Industrialists are the protectors of the country. It is not possible to do business at a 20% interest rate. A conducive environment for exports should be provided;
only by promoting exports can the country’s debt be paid off,” he argued. FPCCI’s acting president Saqib Magoon and other business community officials echoed the sentiment, advocating for the cancellation of IPP agreements and setting a target to increase exports to $100 billion. They also explained the importance of involving FPCCI in policy-making related to industrialists, taxes, and exports. The business community suggested transitioning towards a zero-cash economy to expand the tax net and expressed concerns over high electricity rates. They pledged that if electricity rates are reduced, they would significantly increase exports. The session underscored the collective belief that breaking free from IMF dependencies is achievable through industrialization. The call for a 20-year industrial policy was clear, with aspirations to transform Pakistan into an Asian tiger. The business leaders stressed the need to bring electricity costs down to 9 cents and the interest rate to 15%, arguing that a supportive environment for exports is essential for paying off national debt.