ISLAMABAD: A leading international financial institution has urged politicians and policymakers in Pakistan to jointly develop an economic reform program and work toward climate-resilient and sustainable development at a time when the upcoming general elections are fast approaching in January.
Over the past few years, Pakistan has undergone one of the most challenging economic phases in its history, marked by record-high inflation, severe balance of payment crisis, critically low foreign exchange reserves, and historic depletion in its currency against the US dollar.
While the country averted default on its international obligations with a $3 billion bailout from the International Monetary Fund (IMF) this year, it still needs to stabilize the economic situation to ensure long-term sustainability.
The World Bank, which has traditionally played a strong role in influencing policy discussions and provided development guidance to countries, decided to make its draft discussion notes available to the Pakistani public prior to the upcoming elections.
It said the move aimed at fostering more productive outcomes and facilitating discussions among an array of stakeholders to identify essential policy changes required to guide the economy toward sustainable growth.
“Pakistan is at a critical moment, possibly at a turning point moment and the economic situation is dire, so a difficult adjustment is needed to restore growth sustainably,” World Bank Country Director Najy Benhassine said during the launch of a new program called “Reforms for a Brighter Future: Time to Decide” in Islamabad this week.
He said that to streamline its economy, Pakistan needed a “broad-based policy shift” that went beyond mere labeling as a “Charter of Economy” and focuses on achieving consensus on a minimum reform agenda.
“There was a lot of stop-and-go as well as policy reversals in the past, so there is a need for a broader economic reforms agenda with full implementation mechanism,” he continued.
As part of the newly launched program, the World Bank and Pakistan Institute of Development Economics conducted extensive consultations across the country to seek inputs and feedback on the recommendations included in the draft discussion notes, the international financial institution said in a statement.
These included discussions with students across 21 universities and provincial roundtables with thinkers from academia, and the public and private sectors.
“Participants in all four provinces have shared insights and perspectives that have helped shape the understanding of what it would take to put Pakistan back on a path toward sustainable, climate-resilient, and inclusive growth.”
It added that the program would continue in the coming months in both online and at in-person formats in the country.
The notes, according to the statement, propose a set of fundamental policy changes for Pakistan, which include improving service delivery and social protection systems, particularly for vulnerable communities.
They recommend prioritizing investments in public services, infrastructure, and climate adaptation. Additionally, the notes suggest creating a more inclusive, efficient, and equitable tax system.
They also advocate for a transition to a more dynamic open economy driven by private investment and exports, as well as promotion of a market-driven and productive agricultural sector.
Finally, they call for a shift toward a sustainable and clean energy sector and emphasize the importance of establishing accountable, efficient, and transparent government practices, even at the local level.
World Bank urges collaborative economic reform in Pakistan ahead of national elections
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World Bank urges collaborative economic reform in Pakistan ahead of national elections
- The international financial institution says Pakistan must create economic reform plan for climate-resilient growth
- It calls for a comprehensive policy shift beyond ‘charter of economy label,’ prioritizing minimal reform consensus
Perpetrators of Bishkek mob violence will be punished, Kyrgyz FM assures Pakistani counterpart
- Frenzied mobs targeted hostels of medical universities and private lodgings of international students, including Pakistanis, in Bishkek last week
- FM Ishaq Dar told his Kyrgyz counterpart Pakistan’s main concern was the safety of its nationals, especially students, affected by Friday’s violence
ISLAMABAD: Kyrgyzstan’s Foreign Minister Jeenbek Kulubaev on Monday met Pakistan’s deputy prime minister and foreign minister, Ishaq Dar, in Astana and assured him the Kyrgyz government would bring to justice perpetrators of last week’s mob attacks on foreign students in Bishkek, Pakistani state media reported.
Frenzied mobs targeted hostels of medical universities and private lodgings of international students, including Pakistanis, in Bishkek last week after videos of a brawl between Kyrgyz and Egyptian students went viral on social media.
Pakistan has since then ramped efforts to repatriate its students from the city and more than 600 Pakistani students have returned home via three different flights. According to official statistics, around 10,000 Pakistani students are enrolled in various educational institutions in Kyrgyzstan, with nearly 6,000 residing and studying in Bishkek.
The meeting between Dar and his Kyrgyz counterpart was held in Astana, Kazakhstan on the sidelines of a meeting of the Shanghai Cooperation Organization’s (SCO) Council of Foreign Ministers, the state-run Radio Pakistan broadcaster reported.
“Kyrgyz government has taken swift action to restore law and order in the country, and the perpetrators of the mob riots would be punished under the Kyrgyz law,” the report quoted FM Kulubaev as telling his Pakistani counterpart.
During the meeting, Dar shared concerns about Pakistani students in Kyrgyzstan and requested Foreign Minister Kulubaev to ensure their security, according to the report.
He underlined that Pakistan’s main concern was the well-being of its nationals, especially the students who were primarily affected by last week’s violence.
“Bilateral relations between Pakistan and Kyrgyz Republic, especially in the domains of energy, connectivity, trade and people-to-people contacts also came under discussion,” the report read.
“Both the dignitaries expressed satisfaction at the progress of established bilateral institutional mechanisms.”
Dar arrived in Kazakhstan on Monday to represent Pakistan at the two-day meeting of the SCO Council of Foreign Ministers. He will also hold bilateral meetings with his counterparts on the sidelines of the summit.
Founded in 2001, the SCO is a major trans-regional organization spanning South and Central Asia, with China, Russia, Pakistan, India, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan as its permanent members. The SCO member states collectively represent nearly half of the world’s population and a quarter of global economic output.
The organization’s agenda of promoting peace and stability, and seeking enhanced linkages in infrastructure, economic, trade and cultural spheres, is aligned with Pakistan’s own vision of enhancing economic connectivity as well as peace and stability in the region.
Since becoming a full member of the SCO in 2017, Pakistan has been actively contributing toward advancing the organization’s core objectives through its participation in various SCO mechanisms.
Pakistan seeks ‘viable business plan’ for state-owned broadcasting corporations
- A cabinet committee recognized ‘strategic nature’ of Pakistan Television Corporation, Pakistan Broadcasting Corporation
- The development comes amid Pakistan’s push for privatization, reforms in loss-making state enterprises for IMF bailout
ISLAMABAD: The Pakistani government on Monday sought a “viable business plan” for two state-owned broadcasting corporations, the Finance Division said, amid the South Asian country’s push for reforms in loss-making state entities.
The statement came after a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) in Islamabad, which was presided over by Finance Minister Muhammad Aurangzeb.
The development comes amid Pakistan’s push for privatization and reforms in state-owned enterprises (SOEs) as it negotiates with the International Monetary Fund (IMF) a fresh bailout program.
The cabinet committee reviewed a proposal of the information ministry regarding the Pakistan Television Corporation (PTVC) and the Pakistan Broadcasting Corporation (PBC).
“The CCoSOEs recognized the strategic nature of Pakistan Television Corporation (PTVC) and Pakistan Broadcasting Corporation (PBC) and directed the Ministry of Information & Broadcasting (MoIB) to present a viable business plan to the committee for efficient management of these enterprises,” the Finance Division said in a statement.
Under the last $3 billion IMF program that helped Pakistan avert a debt default last year, the lender said SOEs whose losses were burning a hole in government finances would need stronger governance.
To negotiate a fresh bailout with the IMF, Pakistan must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.
Among the main entities Pakistan is pushing to privatize is its national flag carrier, the Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.
Pakistan PM prays for recovery of Saudi Arabia’s King Salman
- Saudi king is due to undergo treatment for lung inflammation, SPA reported
- Shehbaz Sharif says King Salman sincere friend of Pakistan, guide for Muslim world
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Monday extended prayers for the recovery of Saudi Arabia’s King Salman, who is due to undergo treatment for lung inflammation.
The treatment will consist of a course of antibiotics at Al-Salam Palace in Jeddah, the state-run Saudi Press Agency reported on Sunday.
The king underwent medical tests at the royal clinics at the palace earlier on Sunday after he suffered from a high temperature and joint pain.
“I have learnt with grave concern about the health of His Majesty King Salman bin Abdulaziz. His Majesty is not only a sincere friend of Pakistan but as the Custodian of the Two Holy Mosques, a leader and guide for the entire Muslim ummah,” Sharif said on X.
“The people of Pakistan join me in praying to the Almighty for His Majesty’s complete recovery and swift return to full health.”
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to a large number of Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.
Saudi Arabia has also often come to cash-strapped Pakistan’s aid by regularly providing it oil on deferred payment and offering direct financial support to help stabilize its economy and shore up its forex reserves.
England relish ‘fear factor’ of returning paceman Archer against Pakistan
- Injuries have blighted Archer’s international career and he has not played top-level cricket for 14 months
- But he is in England squad for four-match T20 series against Pakistan, starting this week, and the World Cup
LONDON: England are eager to unleash Jofra Archer’s “fear factor” against Pakistan as the paceman prepares to return from a long injury lay-off ahead of next month’s T20 World Cup, says team-mate Sam Curran.
Injuries have blighted Archer’s international career and he has not played top-level cricket for 14 months due to back and elbow issues.
He has managed just 15 Twenty20 appearances for England since making his international debut five years ago but is in the squad for their four-match T20 series against Pakistan, starting this week, and the World Cup.
The 29-year-old has been building up his fitness by playing club cricket in Barbados and last week took a wicket for Sussex’s second XI.
“It’s incredibly exciting to have a player of his quality,” all-rounder Curran said on Monday. “I’m sure England fans and players are extremely buzzed to have him back.
“He’s obviously got that extra pace and fear factor we can bring to opposition. We all hope his injuries are behind him now.
“Jof’s had a really tough couple of years — we all hope he can come back and do what he does for England and bring the A game that we know he’s got.”
England, who are reigning T20 world champions, are desperate to find form ahead of the tournament in the West Indies and the United States after a dismal 50-over World Cup defense in India last year.
Curran is one of eight squad members who returned early from the Indian Premier League ahead of the Pakistan series.
The players had little time together before the defense of their 50-over title.
“The messaging from (captain) Jos (Buttler) and the coaching staff was they wanted to get the group back together and we probably didn’t have that last time,” said Curran.
“We’ve been apart for a while so these games are going to be really crucial. We want to be playing as a team and get used to our roles.
“There’s a lot of buzz around the group, it seems like we’re back to our energy and it seems like the boys are really fizzed about this trophy hopefully coming back.”
The first game of the four-match T20 series against Pakistan takes place at Headingley on Wednesday.
Net-metering, tax controversies cloud future of solarization in Pakistan despite government clarification
- Government says it won’t end net-metering policy for solar power producers, promises to honor commitments made by companies
- Pakistan’s energy woes stem from high capacity charges consumers pay due to long-term government contracts with power producers
KARACHI: Controversies about net-metering and imposition of a new tax have cast a cloud over Pakistan’s transition to solar energy despite the government’s ambitious plans, stakeholders said on Monday, adding the situation has left them in a state of uncertainty.
Pakistan approved the net-metering policy in 2017 that allows consumers to sell excess electricity produced by their solar systems to power distribution companies, resulting in significant savings in their monthly bills.
However, the energy ministry stirred a controversy last month by declaring that net-metering was promoting “unhealthy investments” in installation of solar power by affluent domestic and industrial consumers, hinting at cutting the buyback rates.
“Before this [controversy], people were shifting to solar [energy] in such a way that we thought that 100 percent Pakistan embraced solar energy,” Zulfiqar Ali, an importer, supplier and installer of solar panels, told Arab News on Monday.
“Now, we’re witnessing a stark contrast, a slowdown in inquiries, stagnation in projects, all amidst a talk of governmental reconsideration of solar energy policies.”
Ali said the net-metering issue had a lot of effect on the market as the purchasing groups suddenly went silent and the deals that were going on became stagnant. “The planned projects have gone into an idle position, people are neither saying yes nor no,” he added.
Recent reports published by local media about new taxes and an end to net-metering policy further compounded the situation and prompted Energy Minister Awais Leghari to explain the government’s position on the matter.
“We completely reject these stories. The agreements our companies have made with net-metering users, whether they are for five years, six years, or seven years, will not be altered in any way and the government will not damage its reputation, nor will it cause any inconvenience to those investors,” Leghari said at a press conference in Lahore on Sunday.
He said the government was fully committed to renewable energy and solarization and was in favor of continuing the net-metering policy.
“If, after studying it over the next few months, there is a need to revise it, it will be done very responsibly and in consultation with stakeholders,” Leghari said.
“After the approval of the entire government, if necessary, we will rationalize this. At this moment, we are committed to fulfilling all the contracts we have signed with various people. We will uphold the integrity of the entire government and move forward together.”
But despite the government’s assurances, an atmosphere of uncertainty prevails in the South Asian country with regard to solarization.
“I wanted to install solar panels at my rooftop to mitigate the impact of high electricity bills but now I am unable to take a decision because of the government’s intended moves of either taxing panels or curtailing net-metering benefits,” said Khalid Abbas, a resident of Karachi, adding that he would wait for clarity on the subject.
Solar panel suppliers said people, who were buying solar panels by selling their cars or jewelry, had stopped purchasing the equipment.
“Residential consumers who wanted to install 5-20KW panels have stopped and are waiting for clarity,” Zulfiqar said.
Pakistan’s energy woes stem from the substantially high electricity bills, mainly due to the capacity charges that are as high as 65 percent and the nation is bound to pay these to power producers, even though their plants stand idle.
The power purchase price (PPP), or the average per unit price based on the generation cost, is Rs20.60, which includes Rs14.09 capacity charges, and Rs6.21 fuel and variable charges, according to Pakistan’s reference tariff for fiscal year 2023-2024.
Pakistani energy experts believe the volume with which solar energy is increasing is still “insignificant” and does not even make 1 percent of the total power generation in the country.
“But the way it is going on in Pakistan, perhaps a significant portion of our net-metering will be done from it,” Dr. Khalid Waleed, an expert on energy economics, told Arab News. “Around 2,000MWs will be coming from net-metering. So, it should not be discouraged at all.”
When consumers switch to solar power, Waleed said, capacity charges are borne by other consumers that ultimately increases their power burden.
Experts say the country won’t be able to get rid of the capacity charges before 2050 due to long-term contracts made with power producers.
