Evacuations continue amid high level of flooding in Pakistan’s Sutlej River 

Flood affected people are being evacuated from a flooded area in Bahawalnagar of Punjab province on August 26, 2023. (Photo courtesy: AFP)
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Updated 27 August 2023
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Evacuations continue amid high level of flooding in Pakistan’s Sutlej River 

  • The river has turned fierce at Ganda Singh Wala Barrage and Islam Headworks, authorities say 
  • Hundreds of boats, rescue personnel have been mobilized to assist administration in rescue efforts 

ISLAMABAD: Rescue officials continued to evacuate residents from vulnerable areas in Pakistan’s Punjab province amid high level of flooding in the Sutlej River on Saturday, Pakistani state media reported. 

The river, traversing both northern India and Pakistan, has witnessed a significant surge in water level following New Delhi’s release of hundreds of thousands of cusecs from reservoirs due to the ongoing monsoon season. 

Pakistan’s National Disaster Management Authority (NDMA) said the river had turned fierce at Ganda Singh Wala Barrage and Islam Headworks, threatening Kasur, Okara, Bahawalnagar, Pakpattan and Vehari districts. 

An operation to relocate residents of vulnerable areas to safer places continues in full swing, with officials visiting flood-hit areas to review relief activities. 

“The district administration would ensure all possible relief to the people of flood-hit areas,” the state-run APP news agency quoted Deputy Commissioner (DC) Omer Jahangir as saying, following his visit to affected areas near Multan. 

DC Jahangir was accompanied by City Police Officer (CPO) Mansoor-ul-Haq Rana, who reviewed the rescue activities carried out by the police. 

“Police and district administration [are] shifting people to safe places,” Rana said. “All possible resources were being utilized to protect lives and properties of the masses.” 

Pakistan is currently witnessing monsoon rains that began in late June. The showers have triggered flash floods in several areas and claimed 213 lives so far this year, according to the NDMA. 

Authorities have successfully evacuated around 250,000 people to safer places, and mobilized hundreds of boats and rescue personnel to assist the administration in rescue efforts. 

The rains have returned a year after climate-induced downpours swelled rivers and inundated at one point a third of the South Asian country, killing 1,739 people. The floods also caused $30 billion in damage in cash-strapped Pakistan in 2022. 


Pakistan vows to foster efficiency, sustainable growth in public entities amid privatization push

Updated 19 sec ago
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Pakistan vows to foster efficiency, sustainable growth in public entities amid privatization push

  • Finance minister chairs cabinet committee meeting to review privatization agenda of public entities
  • Pakistan agreed to overhaul loss-making entities in exchange for a financial bailout from IMF last year

KARACHI: Key ministers of the government, including Finance Minister Muhammad Aurangzeb this week vowed to ensure efficiency and sustainable growth in Pakistan’s public entities as Islamabad moves to privatize state-owned enterprises (SOEs) that have accumulated losses worth billions over the years. 

Pakistan agreed to overhaul its public entities under a $3 billion financial bailout agreement it signed with the International Monetary Fund (IMF) last year, a deal that helped it avert a sovereign debt default in 2023. The IMF has said Pakistan’s SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is currently negotiating with the international lender for a larger, longer program for which it 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, Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.

Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises on Monday which was attended by ministers of maritime affairs, economic affairs, housing and works, the governor of Pakistan’s central bank and other officials. The meeting was held to evaluate the performance of the country’s public entities and review the progress of the government’s privatization agenda. 

“The meeting concluded with a commitment to fostering transparency, efficiency, and sustainable growth within the State-Owned Enterprises, reflecting the government’s dedication to ensuring the optimal utilization of public resources,” the finance ministry said. 

Aurangzeb directed concerned ministries and divisions to submit proposals for the categorization of their respective public entities by May 20. The step is aimed at reviewing the rationale for retaining any commercial functions within the public sector, the ministry said. 

“The objective is to retain only the essential functions within the public sector & to assign the remaining functions to the private sector,” it said. “At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.”

The finance minister noted that there were gaps in the governance and financial management of some companies which needed to be addressed. He directed the vacancies on the Board of Directors (BoD) of some companies to be filled and for others to have their accounts audited. 

“The Chairman emphasized that continued losses & fiscal haemorrhage had to be stopped as a national priority,” the finance ministry said. “Therefore SOEs restructuring & privatization agenda needed to be expedited in order to improve the efficiency of these entities.”
 
Prime Minister Shehbaz Sharif has assured the business community that the privatization process would be a transparent one and has warned the country’s bureaucracy that the government would not tolerate any delays in it. 


Pakistani fintech JazzCash partners with UAE’s du Pay for cross-border payments

Updated 14 May 2024
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Pakistani fintech JazzCash partners with UAE’s du Pay for cross-border payments

  • du Pay, licensed by the UAE central bank, offers international money transfers, mobile top-ups, bill payments and salary deposits
  • JazzCash says both firms will explore new avenues of cooperation, leveraging their strengths to expand JazzCash’s footprint in UAE

KARACHI: JazzCash, a leading Pakistani fintech organization, on Monday announced its partnership with Emirati financial services provider, du Pay, for cross-border payments.

The signing of a memorandum of understanding (MoU) marked the “first-ever” collaboration between a Pakistani fintech organization and du Pay to simplify the transfer of payments from the United Arab Emirates (UAE) to Pakistan, according to JazzCash.

The Gulf nation hosts a vast Pakistani expatriate community and holds the distinction of being the second-largest contributor of remittances to Pakistan after Saudi Arabia, with $548 million transferred to Pakistan in March alone.

Aamir Ibrahim, CEO of Jazz, the parent company of JazzCash, said remittances from Pakistani expats were vital to Pakistan and this collaboration would help ensure these contributions had a lasting impact on Pakistan’s economic stability.

“We are committed to using technology to enhance financial inclusion,” Ibrahim was quoted as saying in a JazzCash statement. “Our partnership with du Pay simplifies payments for Pakistanis everywhere, emphasising our role in boosting economic growth.”

du Pay, licensed by the UAE central bank, offers a diverse suite of services, including international money transfers, peer-to-peer (P2P) transfers, mobile top-ups, bill payments, and salary deposits through an IBAN, according to the statement.

As strategic allies, both firms will be exploring new avenues of cooperation, leveraging their strengths to drive innovation and expand JazzCash’s footprint in the UAE markets.

“As a leading digital telco, we are committed to delivering exceptional services and solutions to our customers, and we believe this partnership between du Pay and JazzCash, a leading mobile money operator in Pakistan, will ensure streamlined customer experience with great benefits,” said Fahad Al Hassawi, CEO of du.

“du Pay will offer a simplified and secure digital service that will advance financial inclusion and positively impact the lives of Pakistani nationals.”


Pakistan, US discuss jointly countering Daesh, Pakistani Taliban to advance regional security

Updated 13 May 2024
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Pakistan, US discuss jointly countering Daesh, Pakistani Taliban to advance regional security

  • Development comes amid renewed violence in Pakistan’s western regions that border Afghanistan, where TTP and Daesh are said to have sanctuaries
  • A Pakistani military spokesman last week said a suicide attack that killed five Chinese engineers in March was planned in neighboring Afghanistan

ISLAMABAD: Pakistan and the United States (US) have discussed jointly countering Daesh, Pakistani Taliban and other militant groups to advance regional security and address transnational threats, the Pakistani foreign ministry said on Monday.

The consensus was reached during a recently held Pakistan-US Counterterrorism Dialogue in Washington DC, which was co-chaired by Pakistan’s Additional Foreign Secretary Syed Haider Shah and US State Department coordinator for counterterrorism, Elizabeth Richard.

The dialogue underscored the cooperation between Pakistan and the US in addressing challenges to regional and global security, including the Tehreek-e-Taliban Pakistan (TTP) and Daesh-Khorasan, with discussions centered on the counterterrorism landscape in the region.

“Pakistan and the United States recognize that a partnership to counter Daesh-Khorasan (Daesh-Khorasan), TTP and other terrorist organizations will advance security in the region and serve as a model of bilateral and regional cooperation to address transnational terrorism threats,” the Pakistani foreign ministry said in a statement.

“Both governments resolved to increase communication on these topics and continue collaboration to detect and deter violent extremism through whole-of-government approaches.”

The development came amid a renewed wave of violence in Pakistan’s western regions that border Afghanistan, where the TTP and Daesh are said to have their sanctuaries.

Islamabad has accused Kabul of not doing enough to tackle militant groups targeting Pakistan from across the border. Last week, a Pakistani military spokesman said a suicide bomb attack that killed five Chinese engineers in March was planned in neighboring Afghanistan, and that the bomber was also an Afghan national.

Kabul has denied allowing the use of its territory against any country and says rising violence in Pakistan is a domestic issue of Islamabad.

During the dialogue, Pakistani and US officials emphasized the importance of expanded counterterrorism collaboration and capacity-building, including exchanges of technical expertise and best practices, investigative and prosecutorial assistance, provision of border security infrastructure and training, and strengthening multilateral engagement such as in the United Nations and the Global Counterterrorism Forum, according to the Pakistani foreign ministry.

“The Counterterrorism Dialogue reaffirms Pakistan’s and the United States’ shared determination to contribute to both regional and global security and stability,” it added.


Three killed in clashes with paramilitary Rangers amid Azad Kashmir protests 

Updated 13 May 2024
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Three killed in clashes with paramilitary Rangers amid Azad Kashmir protests 

  • Protesters have been calling for reduction in wheat, electricity prices in Himalayan valley through days-long demonstrations
  • Earlier on Monday, PM approved $83 million wheat flour and electricity subsidy and Azad Kashmir announced new prices 

ISLAMABAD: At least three people were killed and scores injured as protesters clashed with paramilitary Rangers troops in Azad Kashmir, officials said on Monday, despite Pakistan’s announcement of a $83 million subsidy to reduce wheat flour and electricity prices in the region.

The development comes amid days-long protests in the disputed Himalayan valley, which is administered by Pakistan, led by the Jammu Kashmir Joint Awami Action Committee (JAAC), which is demanding subsidized wheat flour and that electricity prices be set as per the hydropower generation cost in Azad Kashmir.

On Saturday, a policeman was killed in clashes between police and demonstrators as authorities blocked a rally from moving toward Azad Kashmir’s capital, Muzaffarabad, from the region’s Poonch and Kotli districts. Weekend talks between the JAAC core committee and AJK Chief Secretary Dawood Bareach in Rawalakot ended in a stalemate and a planned march by protesters to the capital resumed on Monday.

Azad Jammu and Kashmir (AJK) Prime Minister Anwar-ul-Haq said at a press conference on Monday the regional government had notified reduced prices of wheat flour and electricity after Pakistani Premier Shehbaz Sharif okayed Rs23 billion ($83 million) in subsidies.

“Despite the issuance of notifications to reduce electricity and wheat prices, along with addressing other demands, protesters attacked a Rangers convoy, leading to an exchange of gunfire that resulted in the death of three civilians and many injuries on both sides,” Abdul Majid Khan, a spokesperson of the AJK government, told Arab News.

“The deployment of Rangers is not uncommon and their [protesters] attack on the convoy was uncalled for as it occurred after the government had already accepted their demands,” he added.

“The situation is currently under control and we are trying to bring calm as the government will not allow mischievous elements to succeed.”

Amjad Ali Khan, a member of the JAAC core committee member, said the protesters had been contemplating calling off the protest after the price reduction announcements, but the situation had “completely changed” after the killings of the three demonstrators.

“At the moment, we are not clear about the exact number of injured as many are injured, while three deaths have been confirmed,” he told Arab News.

Amjad said protesters got agitated by the heavy deployment of the paramilitary Rangers and clashes resultantly erupted in different areas of Muzaffarabad.

“Although the actual issue for which demonstrations started [protesting] has been settled, this new development has changed everything and now we will decide our new course of action tomorrow (Tuesday),” he added.

The Himalayan territory of Kashmir has been divided between India and Pakistan since their independence from Britain in 1947, with both countries ruling part of the territory, but claiming it in full. The western portion of the larger Kashmir region is administered by Pakistan as a nominally self-governing entity while India rules the southern portion of the larger Kashmir region as a union territory.

While the Indian portion has faced an ongoing insurgency for decades and multiple armed attempts by the state to quell it, the Pakistani side has remained relatively calm through the decades, though it is also highly militarized.

SUBSIDY

Earlier on Monday, AJK PM Haq announced a reduction in the prices of wheat flour and electricity in the region, thanking Pakistan PM Shehbaz Sharif for approved a Rs23 billion ($83 million) subsidy to make it possible.

“He [Sharif] issued instructions and the things that had been pending for a long time with regard to subsidy, electricity prices, resources, have been provided to Azad Kashmir,” Haq said.

The new price of electricity in the region will be Rs3 per unit for 1-100 units, Rs5 per unit for 100-300 units and Rs6 per unit for those consuming above 300 units. Commercial unit price will be Rs10 for 1-300 units, and Rs15 for above 300 units, according to Haq. A 40kg bag of wheat flour, which was previously priced at Rs3,100, will now be sold for Rs2,000.

“This would cost more than Rs23 billion to the national exchequer,” Haq added, “which the [federal] government and the prime minister of Pakistan gladly accepted.”


IMF, Pakistani officials begin formal talks in Islamabad for fresh bailout program

Updated 13 May 2024
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IMF, Pakistani officials begin formal talks in Islamabad for fresh bailout program

  • The South Asian country last month completed a short-term $3 billion IMF program that helped stave off a sovereign default
  • While Islamabad expects a staff-level agreement by July, both sides have refrained from commenting on the size of the program

ISLAMABAD: A team of the International Monetary Fund (IMF) and Pakistani officials on Monday began formal talks in Islamabad for a fresh, longer-term bailout program for the cash-strapped South Asian country, the Pakistani finance ministry said.

The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the incumbent government of PM Shehbaz Sharif has stressed the need for a fresh, longer-term program.

While Islamabad has said it expects a staff-level agreement by July, both Pakistani and IMF officials have refrained from commenting on the size of the program. The South Asian country is expected to seek around $7-8 billion bailout from the global lender.

On Monday, the IMF team, led by Mission Chief Nathan Porter, met Pakistan Finance Minister Muhammad Aurangzeb, central bank governor, chairman of the Federal Board of Revenue and other officials to kickstart discussions on further engagement with the lender.

“The Finance Minister welcomed the IMF team and thanked them for the successful completion of the [$3 billion] Standby Arrangement (SBA),” the Pakistani finance ministry said in a statement.

“The Finance Minister apprised the IMF team of the improvement in the macro-economic indicators over the course of the SBA and underscored the government’s commitment to continue with and expand upon the reform agenda.”

Pakistan narrowly averted a default last summer and its $350 billion economy has slightly stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high of 38 percent in May last year.

However, the South Asian country is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year, compared to negative growth last year.

Wall Street Bank Citi expects Pakistan to reach an agreement with the IMF of up to $8 billion program by end-July, and recommends going long on the country’s 2027 international bond.

“While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients.

“First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including Finance Minister Muhammad Aurangzeb.

Citi said it expected Pakistan’s international 2027 bond to offer a sweet spot to investors with sufficient liquidity and large upside as risks of default dissipate further.

— With additional inputs from Reuters.