'Some in PM cabinet want to use Ehsaas for votes' says Pakistan poverty alleviation chief

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Dr. Sania Nishtar who heads Pakistan's Ehsaas program, in her office in Islamabad on Jan. 24, 2020. (AN photo by Nazar ul Islam and Benazir Shah)
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External view of the headquarters of the Benazir Income Support Program in Islamabad on Jan. 24, 2020. (AN photo by Nazar ul Islam and Benazir Shah)
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Updated 26 January 2020
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'Some in PM cabinet want to use Ehsaas for votes' says Pakistan poverty alleviation chief

  • Dr. Sania Nishtar says there are some in PM cabinet who want to use program for political gain
  • National survey concluded 38.4 percent of Pakistanis live in multidimensional poverty

ISLAMABAD: In November, during a huddle of parliamentarians from the ruling party, Pakistani Tehreek-e-Isaaf (PTI), a lawmaker launched an unexpected attack on the government’s flagship poverty reduction program.
He took aim directly at the soft-spoken Dr. Sania Nishtar, special assistant to Prime Minister Imran Khan on social protection and poverty alleviation, accusing her of rolling out initiatives benefiting the voters of his political opponents, Dr. Nishtar recalls, instead of his own. A few other voices chimed in.
There is “a small minority” within the cabinet, the special assistant conceded to Arab News this week, which is used to the old way of doing things-- politicizing social protection programs.
“Programs like these were in the past used for political purposes, for creating a vote bank,” she said, seated in her office in the capital, Islamabad. 
“The prime minister is very clear that our program will run apolitically. And while I am here, it cannot be otherwise,” she said.
The South Asian country of 208 million people, has a huge poverty problem. According to its last national survey conducted in 2015-16, 38.4 percent of Pakistan’s population lives in multidimensional poverty. This means not only do they have low incomes, they do not have access to health, electricity, clean water and education, among other things. A majority of those who live in extreme poverty are in the country’s largest (area-wise) province, Balochistan, in southwestern Pakistan.
An updated poverty survey is expected to be completed this year.
In March last year, Pakistan’s newly elected government launched its largest and most ambitious poverty alleviation plan, the Ehsaas program. Ehsaas is an umbrella platform with over 134 pro-poor policy initiatives, aimed at widows, the homeless, orphans, laborers, students, farmers and the elderly.
It was a tough task. The doctor knew she was staking her legacy on a plan which would face resistance from political quarters. When the prime minister first approached her to join his cabinet, she said she hesitated, but agreed once she was promised complete freedom without political interference, to carry out her work.
“Prime Minister Imran Khan came across to me as someone who was genuinely interested in the problems of the poor. I am, to this day, never stopped from doing what is right. And if I did not have the prime minister’s complete support, I would not be sitting here today,” she said.
Since March, one after another, an initiative is rolled out every month in much-publicized ceremonies personally attended by Khan. Some ongoing projects include soup kitchens and shelter homes for the homeless and the Kifalat program, through which women, who do not have any other source of income, receive a small monthly stipend of Rs. 2,000 ($13).
Dr. Nishtar is powering through, while the pushback has only intensified.
Last month, the doctor announced the removal of over 800,000 people from the Benazir Income Support Program (BISP), a cash transfer plan launched in 2008 for women who do not have any source of income. The BISP now falls under Ehsaas.
The names excluded, Dr. Nishtar told reporters, were “undeserving” of the income support. 
Upward of 140,000 of the claimants were government employees against whom disciplinary action would be taken, she said. Others listed on the BISP had homes and cars registered under their names while some had made foreign visits in the last few years.
Soon after, leader of major opposition party Pakistan People’s Party (PPP), Bilawal Bhutto-Zardari, called the exclusion of names an “economic attack on poor women.”
Recently, a member of the national assembly from the ruling party walked into the doctor’s office to complain about a woman employed at his home who was removed from the BISP only because she traveled to perform Umra. 
“I asked him, does the woman live with you? He said yes. Do you provide her food and pay her medical bills? He said yes. I then asked him, don’t you think another woman who has nothing is more eligible for the program?” Dr. Nishtar said and added: “The BISP is for the poorest of the poor.”
Combined, the BISP and Khifalat aim to support seven million women in Pakistan. Ayesha Bano, who lives in the northwestern Khyber Pakhtunkhwa province, said she had been on the BISP for over a decade.
“Without it my household would be difficult to run,” she told Arab News.
Previously, parliamentarians were given thousands of BISP forms each, to fill out on behalf of women they thought were deserving. These forms were often misused. But that has now changed. The doctor and her team, through non-governmental organizations and analytical data, is identifying those who deserve the Rs. 5,000 quarterly as a stipend. Last week, Dr. Nishtar announced that quarterly figure would be increased to Rs. 6000 ($40).
She said that until now, she had only zeroed in on the federal and provincial governments, while other state departments still remained to be examined, to weed out officials exploiting the BISP.
“They [officials] are not giving me data because they know what I intend to do,” she said.
Political and bureaucratic challenges aside, there is one other problem – money. Social welfare programs like Ehsaas are expensive and require government revenue in order to bankroll them. In the last budget, the government allocated Rs. 80 billion to the initiative. This figure could be increased to Rs. 120 billion this year.
“Elaborate social welfare systems require the governments to collect a large proportion of their GDP’s in taxes,” explains Shahrukh Wani, a prominent Pakistani economist.
“Pakistan doesn’t collect enough (tax) to provide a basic level of service delivery, let alone enough under which it can provide comprehensive social protections. It is unlikely any such program can work in the absence of a large and extensive tax infrastructure.”
Dr. Nishtar agrees that Pakistanis out of the tax net have a connection with how the program is funded and its effectiveness.
“Social protection programs are largely funded through revenue,” she said. “The predictability of the budget has to be there.”


Pakistan reduces petrol and diesel prices amid favorable global energy market conditions

Updated 7 sec ago
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Pakistan reduces petrol and diesel prices amid favorable global energy market conditions

  • The government has announced to bring down the petrol and diesel prices by Rs5.45 and Rs8.42 respectively
  • Rising fuel cost in Pakistan led to inflationary pressure in economy, though things are said to be improving

ISLAMABAD: The government announced a reduction in the petrol price in Pakistan by Rs5.45 per liter on Tuesday night, bringing the overall rate down to Rs288.49 for the next 15 days following a recommendation of the Oil and Gas Regulatory Authority (OGRA).
Pakistan typically adjusts petroleum prices on a fortnightly basis, taking into account fluctuations in the international energy market and the rupee-dollar exchange rate.
According to an official notification, the diesel price has also seen a downward revision of Rs8.42 per liter, setting it at Rs281.96.
“The prices of Petroleum products have seen a decreasing trend in the international market during the last fortnight,” the notification announced. “The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market. The prices of Motor Spirit [petrol] & HSD [high-speed diesel] for the next fortnight, starting from 1st May, 2024, are accordingly being lowered.”
Earlier, the government increased the petrol and diesel prices by Rs4.5 and Rs8.1 per liter, respectively, on April 15.
Pakistan significantly increased fuel prices after securing a short-term, $3 billion loan from the International Monetary Fund (IMF) last year.
The rising rates also led to spiraling inflation in the country, though the government started offering relief to the people by gradually bringing down the petroleum prices.
Pakistan is in the process of securing yet another IMF loan which is expected to be bigger in terms of size and duration.


Rana Sanaullah, another Nawaz Sharif loyalist, appointed adviser to Pakistan PM

Updated 42 min 10 sec ago
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Rana Sanaullah, another Nawaz Sharif loyalist, appointed adviser to Pakistan PM

  • Sanaullah’s appointment comes two days after foreign minister Ishaq Dar was named deputy prime minister
  • Analysts believe the appointments indicate Nawaz Sharif is trying to assert indirect control over the government

ISLAMABAD: President Asif Ali Zardari on Tuesday appointed Rana Sanaullah adviser to Prime Minister Shehbaz Sharif, according to a post on the Pakistan president’s official account on platform X.
Sanaullah is considered a close aide of PM Sharif’s elder brother, Nawaz Sharif, who is also a three-time former prime minister.
Sanaullah has previously served as the federal interior minister and provincial law minister for Pakistan’s most populous Punjab province.
“President Asif Ali Zardari has approved the appointment of Rana Sanaullah Khan as Adviser to the Prime Minister on Political and Public Affairs,” read the post on President Zardari’s official social media account.
“The President approved the appointment of Rana Sanaullah Khan on the advice of the Prime Minister under Article 93 (a) of the Constitution.”
Sanaullah’s appointment comes two days after Foreign Minister Ishaq Dar was named the country’s deputy prime minister. Dar, a 73-year-old chartered accountant, is another close Nawaz Sharif ally.
The elder Sharif, who returned to Pakistan in October 2023 after years of self-exile, was widely seen as the favorite candidate for the prime minister’s office ahead of the February 8 national polls, and was believed to be backed by the country’s powerful army.
However, the three-time former prime minister decided against taking the PM’s office after the elections failed to produce a clear winner, leading to speculation that his role in the country’s politics had come to an end.
Analysts widely believe that the recent appointments of Dar and Sanaullah indicate Nawaz Sharif is attempting to assert control over the government through indirect means.


Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns

Updated 30 April 2024
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Pakistan to block mobile connections of over 500,000 individuals for not filing tax returns

  • In December, the Federal Board of Revenue said Pakistan had around 5.2 million taxpayers in 2022, out of a population of 240 million people
  • The government has decided to digitalize tax collection system to prevent leakages even as large segment of economy remains undocumented

ISLAMABAD: Pakistan has decided to block mobile phone connections of more than 500,000 individuals who had not filed their income tax returns for Tax Year 2023, the country’s tax regulator said on Tuesday.

Pakistan’s narrow tax base and enduring tax evasion issue have often led to the problem of insufficient revenue collection. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing.

In Dec., the Federal Board of Revenue (FBR) said the country had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during this fiscal year.

On Tuesday, the FBR issued an order to enforce filing of returns by the persons who were not appearing on the active taxpayer list.

“FBR has taken decisive action by issuing an order to disable mobile phone SIMs associated with 506,671 individuals who fall under the aforementioned category,” the regulator said in a statement.

“The Pakistan Telecommunication Authority (PTA) and all telecom operators have been instructed to enforce the ITGO with immediate effect, ensuring swift implementation of the order.”

These mobile connections would remain blocked until restored by the FBR or the concerned Inland Revenue commissioner, according to the statement. Telecom operators were asked to furnish a compliance report to the FBR by May 15.

Amid its efforts to broaden the tax base, the government of Prime Minister Shehbaz Sharif has recently decided to digitalize the tax collection system to prevent leakages even as a large segment of the national economy remains undocumented.

Pakistan, which has been facing an economic meltdown, is also making efforts to introduce structural economic reforms. The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of its gross domestic product, for the current fiscal year before the government presents its budget in June.


US envoy hosts Pakistan cricket team in display of support ahead of T20 World Cup

Updated 30 April 2024
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US envoy hosts Pakistan cricket team in display of support ahead of T20 World Cup

  • Pakistan’s preparations for the mega event that will be co-hosted by the West Indies and the US
  • Both Pakistan, US have been slated to play within the same group stage and will compete on June 6

ISLAMABAD: United States (US) Ambassador to Pakistan Donald Blome held a meet-and-greet session with the Pakistan cricket team at the US embassy in Islamabad in a display of support for the ‘Green Shirts’ ahead of the highly anticipated Twenty20 World Cup 2024, the US embassy said on Tuesday.

The development came amid Pakistan’s preparations for the mega event that will be co-hosted by the West Indies and the US in June.

Ambassador Blome welcomed the Pakistan team and cricket board chairman, Mohsin Naqvi, at his residence and extended his best wishes for the matches in the US.

“In dual gestures of sports diplomacy, Ambassador Blome presented the team members with a commemorative embassy cricket ball and autographed softball bat,” the US embassy said in a statement.

“The Pakistani team reciprocated by presenting the Ambassador with a signed cricket bat and team jersey.” 

The US envoy later participated in an impromptu cricket demonstration with members of the Pakistan side.

Both Pakistan and the US have been slated to play within the same group stage and will compete in a highly anticipated game scheduled for June 6.

Organizers of the T20 World Cup games in the US have said that early ticket sales showed there was a huge demand for the sport in the country.

The highly anticipated clash in New York between cricket rivals Pakistan and India was over-subscribed by 200 times in the public ballot for tickets, the International Cricket Council said in Feb.

The 34,000-seat temporary venue, Nassau County International Cricket Stadium on Long Island, is already assured of a sell-out crowd for the June 9 encounter.


Pakistan says inflation expected to drop to 17.5 percent in May amid signs of economic recovery

Updated 30 April 2024
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Pakistan says inflation expected to drop to 17.5 percent in May amid signs of economic recovery

  • Finance ministry says Pakistan to achieve modest growth this year, enabling improved performance in the next fiscal
  • It acknowledges higher fuel prices, saying they will be offset by the government’s initiative to reduce wheat flour prices

ISLAMABAD: Pakistan’s finance ministry said on Tuesday the country’s economy was showing signs of recovery, highlighting a downward inflationary trend that could reach 17.5 percent in the upcoming month of May.
The statement comes at a time when Pakistan received a disbursement of $1.1 billion from the International Monetary Fund (IMF) as the second and final tranche under a $3 billion standby arrangement secured last summer to avert a sovereign default.
Prime Minister Shehbaz Sharif said earlier in the day the money would help the country achieve greater economic stability, with his government striving for a bigger loan program for a longer duration.
The finance ministry said in its Monthly Economic Update and Outlook for April 2024 that the economy was “on a resilient track to achieve modest growth this year, setting the basis for better performance in the upcoming fiscal year.”
“Headline inflation observed the lowest reading after 21 months,” it noted. “In March, CPI [consumer price index] inflation recorded the third consecutive YoY [year-on-year] decline, dropping to 20.7 percent from 35.4 percent last year. This decrease was observed throughout the third quarter of FY2024.”
It added the inflation outlook for April 2024 continued a downward trajectory, with the government determined to reduce it by taking strict administrative measures.
The outlook report said the increasing crude oil prices in the international market had prompted the government to raise domestic fuel prices. However, the rise in these rates was expected to be offset by the government initiative to reduce wheat flour prices.
“Inflation is projected to hover around 18.519.5 percent in April 2024,” it continued. “However, there are expectations of a gradual easing further to 17.5-18.5 percent in May 2024.”
Pakistan’s economy witnessed a major inflationary pressure in recent years after its governments sought IMF assistance amid dwindling foreign currency reserves and depreciating national currency.
The international lender urged the country to carry out economic reforms – such as removal of subsidies and increase in fuel charges and power tariffs – which led to spiraling inflation and pushed about 40 percent of its population below the poverty line.
Last year in February, financial experts warned of spiraling inflation of up to 40 percent after official data revealed that weekly inflation had touched 38.4 percent on an annual basis.
However, the situation has gradually improved, though inflationary pressure still continues to remain on the higher side.