First cabinet meeting: Pakistan PM says controlling inflation, getting FDI top priorities

First cabinet meeting: Pakistan PM says controlling inflation, getting FDI top priorities
In this handout picture taken and released by Pakistan Prime Minister's Office on March 4, 2024, Pakistan's newly sworn-in Prime Minister Shehbaz Sharif (R) inspects the guard of honor at the Prime Minister House in Islamabad. (AFP/File)
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Updated 11 March 2024
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First cabinet meeting: Pakistan PM says controlling inflation, getting FDI top priorities

First cabinet meeting: Pakistan PM says controlling inflation, getting FDI top priorities
  • Shehbaz Sharif, sworn in for second term, addresses 19-member cabinet 
  • Sharif government faces profound economic, political and security challenges 

ISLAMABAD: Prime Minister Shehbaz Sharif chaired the first meeting of his new cabinet on Monday and declared that bringing down inflation and getting foreign investment were his top priorities, as his government takes the reigns of a country of 241 million people facing profound economic, political and security challenges. 

Cash-strapped Pakistan has grappled with the Feb. 8 general election that threw up a hung National Assembly and delayed the formation of a coalition government until Sharif was sworn in last Monday. A new 19-member cabinet took oath today, Monday.

“Now our biggest responsibility is that we have to take on the burden of this country’s prosperity,” Sharif told the new cabinet. “We have to do our utmost to figure out how to give relief to the poor person.”

Inflation touched a high of 38 percent with record depreciation of the rupee currency under Sharif’s last government from April 2022 to August 2023, mainly due to structural reforms necessitated by an International Monetary Fund (IMF) bailout deal in 2023. Pakistan continues to be enmeshed in economic crisis with inflation remaining high, hovering around 28.8 percent, and economic growth slowing to around 2 percent.

Sharif’s first order of business, as he admitted on Monday, was taking tough decisions to steer the country out of financial crisis, including negotiating a new bailout deal with the IMF. The current IMF program expires this month. 

A new program will mean committing to steps needed to stay on a narrow path to recovery, but which will limit policy options to provide relief to a deeply frustrated population and cater to industries that are looking for government support to spur growth.

“I will not talk about taking loans now, I will talk only about foreign investment,” Sharif said, recounting his message to the Saudi ambassador during a meeting on Monday, referring to the Special Investment Facilitation Council (SIFC) that was set up last July to seek foreign funds, which has civil and military representation.

Other big moves by Sharif will include the privatization of loss-making state-owned enterprises such as the flagship carrier Pakistan International Airlines (PIA). The Sharifs have close ties with rulers in Saudi Arabia and Qatar, which could help in securing investments in several projects Pakistan has lately showcased for sale.

Although defense and key foreign policy decisions are largely influenced by the military, Sharif will have to juggle relations with the US and China, both major allies. He is also faced with dealing with fraying ties with three of Pakistan’s four neighbors, India, Iran and Afghanistan.

Pakistan is also facing a troubling rise in militancy, which Sharif’s government will have to immediately tackle.

“We will not dither or delay, there will be no delay, I won’t accept a minute’s delay,” the prime minister said. “You are my team, experienced people, a combination of youth and experience … and this is the combination that becomes the engine to take nations forward.”

“POLITICAL TEMPERATURES”

Shehbaz Sharif’s toughest challenge will be on the political front. 

Independent candidates backed by jailed former Prime Minister Imran Khan gained the most seats, 93, after the elections, but Sharif’s Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) of the Bhutto dynasty agreed to an alliance to form a coalition government. No single party won a majority.

The Sunni Ittehad Council backed by Khan alleges that the election was rigged against it and has called for an audit of the polls. Lowering political temperatures will thus be a key challenge for the new government as Khan maintains mass popular support in Pakistan, and a continued crackdown on his party and his remaining in jail would likely stoke tensions at a time when stability is needed to attract foreign investment to shore up the economy. 

For now, the Khan-led opposition has signaled it would “cooperate” with the new government on issues of public concern but keep protesting the alleged manipulation of election results. Protests over the weekend saw over a hundred PTI leaders and supporters arrested, according to the party.

Sharif will also have to manage ties with the all-powerful military, which has directly or indirectly dominated Pakistan since independence. Unlike his elder brother, former PM Nawaz Sharif who has had a rocky relationship with the military in all his three terms, the younger Sharif is considered more acceptable and compliant by the generals, most independent analysts say. The military denies it interferes in political matters.


Pakistan Senate passes tougher laws to curb human smuggling, illegal migration

Pakistan Senate passes tougher laws to curb human smuggling, illegal migration
Updated 5 sec ago
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Pakistan Senate passes tougher laws to curb human smuggling, illegal migration

Pakistan Senate passes tougher laws to curb human smuggling, illegal migration
  • Hundreds of Pakistanis have lost lives in boat capsizing incidents since 2023, while trying to reach Europe
  • Despite intense crackdown leading to arrests, such tragedies continue, necessitating more stringent laws

KARACHI: Pakistan’s Senate on Friday approved amendments to three key laws aimed at combating human trafficking and illegal migration, following a series of deadly migrant boat tragedies that have claimed hundreds of lives.
The legislation— covering human trafficking, migrant smuggling and emigration— seeks to strengthen penalties for offenders, including those involved in smuggling young girls and trafficking beggars to Gulf states.
Pakistan has intensified its crackdown on human smugglers after multiple boat tragedies. In January, the Federal Investigation Agency (FIA) issued Interpol red notices for 20 suspected foreign-based traffickers, though migrant deaths continue as people attempt to cross treacherous waters on rickety boats to reach European shores.
The three bills, unanimously passed after clearance by the relevant Senate standing committees, aim to further strengthen the legal framework to tackle the crisis. The Prevention of Trafficking in Persons (Amendment) Bill expands the definition of trafficking to include organized begging, following concerns raised by Pakistan’s diplomatic missions in the Gulf Cooperation Council (GCC) states, Iraq and Malaysia.
“The agents and gangs who are involved in this practice easily dodge prosecution as beggary is not a crime in any law entrusted to FIA,” reads the statement of objects and reasons of the bill, which has amended multiple sections of a 2018 law to prevent human trafficking. “The sensitivity of issue demands urgent need of making beggary a crime.”
In the past, several Pakistanis reportedly traveled abroad for Hajj, Umrah or personal visits but engaged in begging, tarnishing the country’s image.
The bill also increases penalties for traffickers, raising prison sentences from a minimum of three years to up to 14 years for offenses involving women and children. Fines for trafficking crimes now range from Rs1 million ($3,581) to Rs2 million ($7,162).
Similarly, the Prevention of Smuggling of Migrants (Amendment) Bill stiffens penalties for offenders, increasing the maximum prison term from five years to 10 years and raising fines from Rs1 million to Rs10 million ($35,810).
It also targets individuals who harbor undocumented foreigners in Pakistan, increasing their prison term from three years to five years and doubling fines to Rs2 million.
The third approved bill revises the 1979 Emigration Ordinance to eliminate leniency for human smugglers. Courts will no longer have the discretion to impose only fines on those found guilty, making jail sentences mandatory for offenders.
“To curb the menace of unlawful emigration and create deterrence among perpetrators and prevent repetition of offenses, it is inevitable to amend the Court’s discretion, which currently has the option to award either imprisonment or a fine,” the bill said.
The three bills come at a time when two migrant boat tragedies involving dozens of Pakistanis — one near Morocco and the other off the coast of Libya — have been reported since the beginning of the year. Prior to these incidents, an overcrowded vessel carrying over 250 Pakistanis capsized in June 2023 near Greece.
There has also been a rise in deportations of Pakistanis from Gulf nations. In November 2024, authorities added 4,300 individuals involved in organized begging to the Exit Control List (ECL).
According to official statements, hundreds of Pakistanis have been deported in recent months due to visa irregularities, insufficient travel funds, procedural lapses and involvement in crimes or begging.


Pakistan president says no need for world to fear China’s rise

Pakistan president says no need for world to fear China’s rise
Updated 37 min 37 sec ago
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Pakistan president says no need for world to fear China’s rise

Pakistan president says no need for world to fear China’s rise
  • President Asif Ali Zardari’s statement dispels the notion that China’s ambitious foreign infrastructure push has saddled poor nations with ‘hidden debt’
  • China is a major ally and investor in Pakistan that has pledged over $65 billion in investment in road, infrastructure and development projects under CPEC

ISLAMABAD: Pakistan President Asif Ali Zardari has praised China’s remarkable growth and called it a positive development, saying there is no need for the world to fear it.
Zardari, who visited China on a five-day visit earlier this month, said this during an interview with Chinese broadcaster CCTV that was shared on YouTube on Saturday.
The statement dispelled the notion that China’s ambitious foreign infrastructure push has saddled poor nations with “hidden debt” worth hundreds of billions of dollars, which has raised concerns among some regional and global powers that Beijing’s growing naval presence, together with its so-called “debt-trap” diplomacy, could provide it significant advantages far from its shores.
China is a major ally and investor in Pakistan that has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC), a part of the Belt and Road Initiative that is a massive China-led infrastructure project that aims to stretch around the globe.
“China has never been an occupier,” President Zardari said, when asked about China’s modernization and why he was not afraid of the development that might be threatening to some other countries.
“Why am I not? Because, A, I’m your neighbor, and I’ve been your neighbor since centuries. So why should one neighbor, which knows that the Chinese are not the kind who want to interfere in other countries, be scared. And I would never be scared of China.”
Since the launch of President Xi Jinping’s Belt and Road Initiative (BRI) investment drive, Beijing has invested hundreds of billions of dollars to build roads, bridges, ports and hospitals in some 163 nations, including many countries across Africa and Central Asia, according to a study by AidData, an international development research lab.
Nearly 70 percent of this money has been lent under opaque deals to state banks or joint ventures between Chinese businesses and local partners in countries that were already deeply indebted to Beijing.
But China and Pakistan enjoy a close strategic partnership, with the latter’s location on the Arabian Sea providing Beijing an overland route toward the Gulf of Aden and onto the Suez Canal, and enabling Chinese ships to avoid the potential chokepoint of the Malacca Strait.
President Zardari, who discussed CPEC’s acceleration, cooperation in science and technology, renewable energy and other sectors during his visit to China this month, termed Beijing’s development program a “good thing.”
“The world can’t compete [with China]. It’s all about new technologies, the rise of China, which is a good thing,” he told the Chinese broadcaster.
“Pakistan is a very independent country. We have our independent role, but at the same time, we will look toward China and go along with China first.”


Pakistan finance minister leaves for Saudi Arabia to attend AlUla conference on emerging economies

Pakistan finance minister leaves for Saudi Arabia to attend AlUla conference on emerging economies
Updated 4 min 12 sec ago
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Pakistan finance minister leaves for Saudi Arabia to attend AlUla conference on emerging economies

Pakistan finance minister leaves for Saudi Arabia to attend AlUla conference on emerging economies
  • The conference will provide a unique platform for world leaders to discuss and analyze domestic, regional and global economic developments
  • Finance Minister Muhammad Aurangzeb’s participation comes in context of policy measures that have led to stability in the Pakistani economy

ISLAMABAD: Pakistan Finance Minister Muhammad Aurangzeb has left for Saudi Arabia to attend the AlUla Conference for Emerging Market Economies, the Pakistani finance ministry said on Saturday.
The AlUla Conference for Emerging Market Economies is an annual economic policy conference, organized by Saudi Arabia’s finance ministry and the International Monetary Fund (IMF) regional office in Riyadh.
The conference will convene a select group of emerging markets’ ministers of finance, central bank governors, and policymakers, as well as public and private sector leaders, international institutions, and academia.
Aurangzeb is attending the two-day conference, starting on Sunday, on the invitation of his Saudi counterpart Mohammed Al-Jadaan, in context of policy measures that have led to the stability and positive changes in the Pakistani economy despite the uncertain regional and global environment.
“Muhammad Aurangzeb will participate in a high-level panel discussion on the topic of ‘The Path to Emergent Markets’ during the conference,” the Pakistani finance ministry said. “IMF Managing Director Kristalina Georgieva will host the panel discussion.”
Pakistan is currently navigating a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) loan program it secured in September last year. The South Asian country has undertaken several reforms and policy measures since averting an imminent default on its external debt in 2023.
The conference will have a total of 9 sessions in which 200 participants and 36 speakers will participate, according to the Pakistani finance ministry.
The forum will discuss ways to build resilience in a changing world, and appropriate economic and financial policies needed for emerging markets and developing economies to address economic challenges.
It comes at a time when the world is grappling with deep and persistent economic shocks, trade tensions between major world powers, geopolitics, and tight financial conditions.
“The conference will provide a unique platform for world leaders to discuss and analyze domestic, regional, and global economic conditions and developments, and to exchange ideas on solutions to global challenges,” the Pakistani finance ministry added.


Road crash kills five pilgrims en route to shrine in southern Pakistan

Road crash kills five pilgrims en route to shrine in southern Pakistan
Updated 28 min 23 sec ago
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Road crash kills five pilgrims en route to shrine in southern Pakistan

Road crash kills five pilgrims en route to shrine in southern Pakistan
  • A bus carrying around 40 people was en route to Sufi saint Lal Shahbaz Qalandar’s shrine
  • The speeding vehicle overturned near Ranipur on its way to Sehwan Sharif, authorities say

ISLAMABAD: A road accident killed at least five pilgrims and injured more than 30 others in Pakistan’s southern Sindh province on Saturday, a rescue official said.
A bus carrying around 40 people was en route to Sehwan Sharif when it overturned near Ranipur, according to a Rescue 1122 spokesperson.
The passengers were going to attend annual Urs of 13th-century Sufi saint, Lal Shahbaz Qalandar.
“The injured men, women and children were shifted to Gambat and Ranipur hospitals by ambulance,” the Rescue 1122 spokesperson said in a statement.
The incident occurred because of speeding, according to the Sindh chief minister’s office. CM Murad Ali Shah has asked authorities to provide best treatment to the injured and assured all possible assistance to families of the deceased.
“Public should follow driving rules and avoid speeding,” he was quoted as urging the masses.
Fatal road accidents are common in Pakistan where traffic rules are rarely followed and roads as well as a majority of vehicles are in poor condition.
On Friday, at least five people, including renowned Manqabat Khawans Khawaja Ali Kazim and Syed Jan Rizvi, were killed in a road accident near Sindh’s Jamshoro, according to authorities.
On Dec. 30, at least 18 passengers were killed in two separate road accidents in Pakistan’s eastern Punjab and southern Sindh provinces, authorities said.


US President Trump’s South Asia envoy pick signals ‘renewed challenges’ for Pakistan — analysts

US President Trump’s South Asia envoy pick signals ‘renewed challenges’ for Pakistan — analysts
Updated 15 February 2025
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US President Trump’s South Asia envoy pick signals ‘renewed challenges’ for Pakistan — analysts

US President Trump’s South Asia envoy pick signals ‘renewed challenges’ for Pakistan — analysts
  • Paul Kapur, Trump nominee for assistant secretary of state for South Asia, has been a vocal critic of Pakistan’s policies
  • While Islamabad has not commented on the nomination, member of jailed ex-PM Imran Khan’s party calls it ‘welcome change’

KARACHI: President Donald Trump’s nomination of an Indian-origin security expert, Paul Kapur, as the United States (US) assistant secretary of state for South Asian affairs could bring “renewed challenges” for Pakistan, but there would be no significant shift in the already restrained US policy toward Islamabad, analysts said on Saturday.
Pakistan and the US collaborated during the Cold War and in the fight against Al-Qaeda after 9/11, yet their relationship was also tested by divergent priorities on various issues. In recent years, Washington and Islamabad’s ties deteriorated as the former suspected the latter of supporting the Taliban in their 2021 takeover of Kabul, allegations which Islamabad rejected. Tensions rose further in 2022 when former Pakistan premier Imran Khan accused the Joe Biden administration of orchestrating his ouster via a parliamentary vote, a charge the US denied.
Kapur, who will succeed Donald Lu upon Senate confirmation, has long advocated for a closer US-India partnership and has been critical of Pakistan’s security policies. His appointment reflects a broader bipartisan consensus in Washington on prioritizing India as a key strategic partner, particularly in the Indo-Pacific.
Political analysts and foreign policy experts believe that while Kapur’s nomination underscores continuity in Washington’s South Asia approach, its policy positions suggest a “tougher stance toward Pakistan.”
“There is a growing bipartisan consensus in Washington on strengthening the US-India strategic partnership. Several Trump appointees, including Kapur, are advocates of a deeper relationship between both countries,” said Syed Hassan Akbar, a senior foreign policy specialist.
“How this reflects in policy will shape US-Pakistan relations going forward. But given the realities of our region we should not expect any significant departure in US policy toward Islamabad, which has been restrained ever since the US withdrawal from Afghanistan.”
Kapur is President Trump’s third top pick among Indian-origin Americans after Tulsi Gabbard and Kash Patel, who both have already been cleared by the US Senate as director of National Intelligence and head of the Federal Bureau of Investigation (FBI).
Akbar pointed out that Kapur has previously argued against US security assistance to Pakistan, saying that it would be perceived negatively in New Delhi and instead calling for a continued dialogue and limited economic engagement between Washington and Islamabad.
Abdul Basit, a former Pakistani high commissioner to India, echoed the concerns and said that Kapur’s appointment would likely increase pressure on Pakistan at an operational level even as the broader strategic dynamics remain unchanged.
“This is a strategic decision by the United States, and both Democrats and Republicans are committed to strengthening their partnership with India,” Basit said.
“But operationally, we will feel the impact.”
Pakistan’s diplomatic position remains weak due to a lack of economic leverage and a struggling diaspora engagement, according to Basit.
“Pakistan is not viewed as strategically significant, except in negative contexts such as terrorism, nuclear proliferation, and Afghanistan,” he said.
“Our embassy faces limitations and unless we mobilize Pakistani-Americans effectively, improving our diplomatic presence will be difficult.”
He stressed the importance of political stability in Pakistan, arguing that “unpredictability weakens foreign policy.”
“Political stability is crucial, predictability and consistency are key. Without it, the country will not be strong internally, and foreign policy will suffer as all these factors are interconnected,” the former diplomat said.
While Islamabad has exercised caution in commenting on Trump’s seemingly anti-Pakistan appointments, Syed Zulfikar Abbas Bukhari, a key figure in the Pakistan Tehreek-e-Insaf (PTI) opposition party, called Kapur’s nomination an “internal” US bureaucratic matter.
He, however, welcomed the departure of Donald Lu, whom PTI founder and former Pakistan prime minister Imran Khan had accused of orchestrating his removal from power via a parliamentary no-trust vote in 2022.
“This is the US’s internal matter of bureaucratic changes. It’s a welcome change as whatever Mr. Donald Lu touched, he destroyed. A lot of the unrest in the subcontinent is due to him,” Bukhari added.
Christopher Clary, an associate professor of political science at the US University at Albany, highlighted Kapur’s longstanding academic focus on Pakistan, noting that Trump’s South Asia envoy pick had portrayed Pakistan as a “uniquely dangerous state” due to its strategic choices.
“Kapur likely will be more skeptical of Pakistan than any previous incumbent of that office,” Clary wrote on X. “He has been involved for many years in exploring opportunities for US-India cooperation, but his academic work has had a greater Pakistan emphasis.”
With Kapur in the key position, analysts expect the US to continue its policy of limited engagement with Pakistan, while focusing on strategic alignment with India.
Akbar suggested Pakistan to prioritize its economic growth and regional stability to navigate the evolving geopolitical landscape.
“Pakistan’s focus should be on improving its economy and addressing challenges in our immediate neighborhood while ensuring that, at a minimum, crisis management mechanisms continue to operate with Washington,” he said.
Basit, meanwhile, said Pakistan must make proactive efforts to strengthen its diplomatic position.
“Unless we take serious steps to bring political stability at home and mobilize our diaspora in the US, we will have to face challenges in ties with America,” he said.