Difficult decisions must to scale up power production: CJP

  Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry has remarked that the government would have to take difficult decisions to scale up power production and end load shedding. He further remarked that the government should evolve such policy on its own and the court would not extend any proposal. “The woes of the people should come to end and load shedding problem should be sorted out on an emergency basis. Owing to load shedding, factories have been closed down and thousands of people have been rendered jobless,” the CJ said while presiding over a three-member bench that took up the case of power load shedding for hearing on Tuesday. The NEPRA chairman and energy experts appeared before the court. PEPCO told the court that non-provision of furnace oil and irregular supply of gas were the main causes behind reduction in production of electricity. CJP remarked, “You should have taken the steps keeping in view the needs of the future.” The court said in its order that it was informed of the causes of load shedding and was told that power production was affected due to non-availability of funds and non-supply of furnace oil. The court ruled, “As far as the gas supply is concerned, it was told that no regular supply of gas was underway and this way the projects stand disrupted and power production is affected. Work is continuing on technical basis in this regard.” The court was also told that Jamshoro had the potential to generate 1000MW, but it was yielding production of only 285MW. “If Guddu project’s machinery is repaired, it can yield production from 726 megawatts to 1000 or 1100MW. Improvement can be brought in other projects as well. Load shedding problem will be overcome due to joint efforts,” the court was told. The court was also told that power production had been improved from 60 to 70 percent through hydro means. The court said it its opinion, “distribution of power to domestic and commercial consumers be made on equitable and equal basis. Whatever steps are being taken in this regard, the court be informed”. The court directed PEPCO to present a report before it on further steps aimed at enhancing power production within two weeks. The hearing of the case was adjourned later.

SC gives AGP two weeks to probe fund doling by former PM Ashraf

Raja-pervez

  The Supreme Court (SC) has directed Auditor General of Pakistan (AGP) to conduct within two weeks special audit of schemes and works executed in the constituency of former prime minister Raja Pervez Ashraf during the last days of the outgoing PPP government. The court also ordered that it may be informed how much amount was released for how many schemes during 2012-13. A three-memebr bench of SC led by Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry took up the case of illegal use of development funds by former prime minister Raja Pervez Ashraf for hearing on Tuesday. The CJP remarked, “No money is available for generation of power. People are dying due to load shedding. On the other hand, the erstwhile government withdrew development funds of trillion of rupees and spent it on irrelevant people and schemes. We have been asking since several days but no one is there to explain it. The construction of Bhasha dam was stopped. Youths are the future of Pakistan. Their scholarships were suspended and this amount was spent on irrelevant places. All have joined hands to devour the money. No one is realising the situation. The difficulty is that we don’t know who we can trust. This practice is continuing since 1985. Amount was released despite the curbs. Money was provided to Raja Basharat, Moonis Elahi, Sardar Mushtaq and Mehmood Khan Achakzai. It was not known to AGPR that the government was on the way to exit and this amount could not be released. We will take account of even a single pie.” AGP Tahir Mehmood told the court that the PM could spend the money under Khushhali programme. “Such powers rested with the PM that he could utilise funds of 12-year Khushhali programme.” The CJP remarked, “Why are you lending such support on political basis. Money was given to irrelevant people in the constituency. The AG had said that parliament could legislate with reference to development projects. Ban was imposed on uplift projects from February 7 to March 15. Despite that, billions of rupees were given without verification.” Mehmood said the finance deputy secretary had got released the amount through pressure. The CJP remarked, “We have to see now where Rs 42 billion were spent or were it devoured by the people.” Cabinet Division Secretary Zafar Iqbal said the amount was spent under seven heads. “This amount was spent on construction of roads, bridges, drains, boundary walls of grave yards and electrification of areas.” The CJP said the jobs related to district governments and “you have assigned this work to members of parliament”. “No one is ready to assist us. We will call the AG and give the decision after hearing his arguments. We cannot afford more delays. How much money was released during the last days of the government when the election commission had imposed a ban?” The court was told that the ban was imposed on March 11. All was done on the day when it was a holiday. Justice Ejaz remarked, “After doing every thing you claim you know nothing. No one is ready to give even a pie to the poor. The PM is not a monarch that you have to comply with whatever he says.” The CJP said government was constructing drains by leaving aside construction of Bhasha dam and putting at stake the future of the nation by stopping scholarships to youth. “We talk of transparency. Who will conduct checking of expenses? You all are conniving with each other,” the CJP remarked, adding that “Rs 7,736 million were given to you. This amount was released on March 15. Where has it gone?” The court observed that the Finance Ministry had been pressurising the AGP office for releasing funds and directed the ministry to file its reply. “The Finance Ministry tried to take over the administrative powers of AGP. Former finance secretary should file reply on this count,” the court ordered.   The court also issued notice to AG seeking reply from him about the discretionary powers of the PM. The hearing case was adjourned for two weeks.

2 suspected Chechen militants arrested in NWA, shifted to Peshawar

Two suspected militants of central Asian origin apprehended in North Waziristan were shifted to Peshawar from Miranshah for interrogation purposes. Highly-placed official sources told Pakistan Today on Wednesday that during a search operation, law enforcement agencies arrested several suspects, who were taken to Miranshah, where two of them were identified as Central Asian nationals. The sources said both the suspects introduced themselves as Chechens. The two were later taken to Peshawar under tight security where they could be interrogated by teams from various law enforcement and secret agencies. The sources said the purpose of further interrogation was to net out their accomplices and links in the region. It is after about a period of six years that the law enforcement agencies have been succeeded in arresting two foreign militants from North Waziristan.

Dialogue with Taliban prerogative of Pakistan: Olson

    US Ambassador to Pakistan Richard Olson has said holding dialogue with the Taliban was the prerogative of Pakistani government. Talking to reporters in Islamabad on Wednesday, Olson said any dialogue with Taliban was for the Pakistani government to decide. However‚ he said‚ any reservations regarding these proposed talks would depend on terms and conditions of the dialogue with Taliban. Terming the recent general elections a big success of Pakistani nation in which democratic forces emerged victorious, he said a historic turnout was witnessed in the elections and reflected that the people had confidence in democracy. He said the elections proved to be a defeat for those who were against democratic values and holding of elections. Earlier‚ inaugurating an English language laboratory at SOS Children's Village in Islamabad ‚ he said the US was rehabilitating buildings of 800 schools affected by the 2005 earthquake in Pakistan. He said the US was also helping launch new degree programmes in 90 universities and colleges besides giving scholarships to 12,000 students studying in various institutions in Pakistan. Olson said Washington was also providing $15 million dollars to NGOs to improve socio-economic condition at community level.

Dr Hasan Askari Rizvi Dr Hasan Askari Rizvi
PML-N needs to partnerships cutting across provinces The 10th general elections have proved to be a mixed blessing. It is now clear which parties enjoy popular mandate at the federal and provincial levels. The new political configuration will assume power in the first week of June, setting up a healthy tradition of transfer of power through constitutional and peaceful means from one set of civilian leadership to another. The downside is that every party is talking of manipulation of electoral process in some constituency. It seems that it has become fashionable to talk about the ‘stealing of electoral mandate.’ Even the political parties that are expected to set up new governments at the federal or provincial levels are spending a part of their energies in delegitimizing the electoral process that has set the stage for their assumption of power. Most political leaders and parties are focused on their narrow and immediate gains – how to win the election after losing it. They do not have a long term perspective. By blowing the irregularities out of proportion they are making their own mandate doubtful. If they delegitimize the democratic process in a bid to outbid each other, all of them will lose. The future of political leaders and parties is closely linked with the working of democracy. If they are unable to manage one of the basic requisite of democracy, i.e. elections, how can they manage democracy and talk about civilian primacy? This situation is very different from the situation after the 1977 general elections when the opposition coalition, Pakistan National Alliance (PNA), accused the PPP government of manipulating and rigging the elections. The inability of the government of that time and the opposition to handle the rigging issues enabled the military to assume power under General Zia-ul-Haq. In 2013, the situation is very different. It is a free-for-all situation. Every party is accusing its rival party of manipulation of elections. Even individual candidates are raising hue and cry. If the PTI is projecting itself as an aggrieved party in one place, its winning candidate in another constituency is being accused of the same charge of manipulation of the election. Even the PML-N which is going to set up the federal government and is expected to head provincial governments in the Punjab and Balochistan, is accusing the PPP of winning the election in rural Sindh by manipulation. The political parties and the leaders that are going to establish new governments at the federal or provincial levels need to discourage their party activists from resorting to protest and sit-ins on main roads as it causes a lot of problems for ordinary citizens and creates an undemocratic tradition of lack of restraint and tolerance. The new ruling parties or their coalition partners should give attention to addressing the problems that they are going to face soon. The PPP and the ANP have lost the elections because of their poor governance and non-delivery of civic services to people. The acute electric power shortages have caused much political damage to their reputation. Similarly, terrorism and law and order problems worked to their disadvantage. The new government will have to address economic issues as the highest priority. This should be accompanied by taking up of other issues. The salvation of the PML-N lies in addressing these problems rather than getting involved in the ongoing politics of electoral rigging. Pakistan faces multiple and acute problems. Therefore, the new leadership should set its priorities very clearly so that it does not waste its energy on frivolous issues that seem to have become the key issues for political parties. Even the small parties that hardly win few seats are talking of denial of their mandate. There are legal remedies available for the polling day related complaints. The Election Commission has already accommodated some complaints. More are likely to be accommodated over time. The option of election petition is available to the candidates that have lost the election. The polling-day complaints pertain to 7 to 9 percent of polling stations but the defeated candidates are trying to delegitimize the whole process which is a negative and unfortunate approach. Sindh is experiencing a dangerous political game nowadays. The PPP has retained its electoral clout in interior Sindh that has given it an over-all majority in the provincial assembly. The smaller parties and Sindhi nationalist groups that always lose the elections have decided to avail of the current wave of making hue and cry for election manipulation to delegitimize the PPP majority in Sindh. These groups are now trying to enlist the support of the PML-N for their agenda against the PPP. A good number of them have offered support to the PML-N with the expectation that the power of the PML-N federal government will be invoked in their bid to challenge the PPP in Sindh. If the PML-N leadership at the national level allowed the party to become an instrument of the small Sindhi groups for making it difficult for the PPP to rule Sindh, it will result in an unfortunate clash between the Sindh government and the federal government. The PMLN national leadership should not succumb to the pressure of the Sindh leadership of the party and others who want to ride on the bandwagon of the federal government to settle their old scores with the PPP. Another issue that needs immediate attention of the PML-N is that 95 percent of its elected members belong to the Punjab. It is important for the PML-N to cultivate partnership with the representative political forces of other provinces so as to accommodate them in federal cabinet and other key appointments at the federal level. The new federal government should be seen in the country as the government of Pakistan rather than that of the Punjab. The PML-N’s extraordinary mandate is almost exclusively loaded in favour of the Punjab. It is therefore a challenge for the PML-N to create political partnerships and power sharing that cuts across provincial boundaries. It should address socio-economic issues, the energy crisis and extremism and terrorism as its highest priorities. The management of these issues will shape its political future. It needs to pull out as a party from petty issues like polling-day rigging. Individual candidates may pursue these complaints through legal channels. It should avoid being used by Sindhi groups for their local and personal fight with the PPP. The writer is an independent political and defence analyst.

Reehana Raza and Anjum Nasim
A response to an article by Sartaj Aziz Mr Sartaj Aziz, senior vice president of PML-N, in his article in this newspaper on April 23, has rightly argued that generation capacity is not the cause of the present energy crisis and his explanation of the circular debt is eminently reasonable. However, his position on the 1994 energy policy is untenable. In particular, the figures that he has mentioned on hydel-thermal mix in 1994 as part of his critique of the 1994 policy are incorrect. The 1994 power policy was framed in the backdrop of power shortages which date back to 1982. In 1985, the government of Pakistan announced an initiative to encourage private participation in power generation which led to the development of Hub Power Project in 1987. Construction of the power station began in December 1992, financial close was achieved in January 1995, and the project started operation in 1996. The experience from Hub Power Project cleared the way for attracting more private investment in the power sector. In 1994, electricity shortage was 2000 MW during peak demand, and electricity was available to only 40 percent of the population. The 1994 power policy projected an eight percent annual increase in energy demand over the next 25 years. A solution to the power shortage which addressed the problem in 2-3 years had to rely on thermal energy. A solution based on hydel power, which involved greater capital cost but lower operating cost, would have taken 7-10 years, at least. The fast-track solution entailed higher energy cost but it had to be seen in the context of the loss that the economy was suffering in terms of loss of economic growth because of energy shortage. Although the 1994 energy policy invited investment in the power sector and not specifically in thermal power, the investments that materialised in 3-4 years were thermal-based. Mr Sartaj Aziz claims that in 1994, out of the total installed capacity of 11000 MW, 60 percent was hydel and 40 percent was thermal, and in the next few years this mix was reversed from 60:40 to 30:70. This is not correct. The share of hydel-power in 1994 was 42 percent and not 60 percent. The statement that the additional thermal power capacity installed under the 1994 power policy agreements was about 6000 MW is also not correct. If Hub power, which is being claimed as a project of the first PML-N government, is excluded, the actual installed capacity under the 1994 power policy was 3000 MW and not 6000 MW as stated by Julia Fraser in Lessons from the Independent Private Power Experience in Pakistan, Energy and Mining Sector Board Discussion Paper No 14, The World Bank, May 2005. The share of thermal power in hydel-thermal mix in 1994 was 58 percent. If we add the Hub power capacity (1292 MW) the share of thermal power increases to 62 percent. The Ghazi Barotha hydel power project, whose PC-I was approved in 1994 and became operational in 2003 and 2004, added 1450 MW of generation capacity. The short-term impact of the 1994 policy (before the Ghazi Barotha became operational) was to increase thermal share in the hydel-thermal mix from 62 percent to 70 percent. The long-term impact of the 1994 policy on hydel-thermal mix (taking account of Ghazi Barotha) was a change of thermal share from 62 percent to 64 percent. Therefore, the impact of the 1994 policy, when complementary public sector investment in hydel power is taken into account, is not very dramatic. The 1994 policy served the purpose of addressing short-term energy shortages but more power was contracted than the economy could absorb in the short term, especially because of anemic growth in that period. The ‘dazzling speed’ that Mr Sartaj Aziz has referred to and the lack of transparency in awarding contracts had added to the perception of corruption. Notwithstanding these perceptions, prices offered under the 1994 policy were comparable with those offered by Indonesia, Philippines and India at that time, as Julia Fraser made it clear in the same paper. The same paper reports that in July 1998, the PML-N government served Notices of Intent to Terminate to seven IPPs on grounds of corruption and to two on technical grounds. Evidence on corruption charges were not presented in court and Hubco was constrained by courts to seek international arbitration. Eventually a number of IPPs agreed to tariff reductions. After many years of slow growth, the economy picked up in 2003-04 and for the next four years the growth rate was between 5.8 percent and 9 percent. This growth rate would have been impossible without the availability of electricity that was made possible in large part by the 1994 energy policy, and contributed cumulatively more than $44 billion to the economy during the four-year period (2004-2007) over and above what would have been possible at the 3.4 percent growth rate in the previous four years of the Musharraf government. The high growth rate during this period had started to create shortages and new thermal projects were approved during this period and started operations during the tenure of the last PPP government. A number of small hydro plants were commissioned and some large hydro power plants are under construction including the Neelum-Jhelum hydro project with 969 MW capacity, first approved in 1989, on which construction started in 2008 and is expected to be completed in 2016. The hydel-thermal mix in 2012 was 30:70. New thermal power projects during the PML-Q government were approved at the time when the economy was growing strongly and electricity shortages had reappeared. The commissioning of these projects coincided with major escalation of international oil prices. The government policy of not passing the higher cost to the consumers and keeping tariffs low creates excess demand. Meeting the entire excess demand would involve unacceptable fiscal burden. The extent to which the government is willing to bear the subsidy burden determines the extent of load shedding. The tariff subsidy burden is made worse because of poor recovery of energy bills, power theft and pilferage, relief provided to consumers by courts, and non-payment of dues by provincial governments’ departments and agencies, all of which add to the problem of circular debt and load shedding. Even though load shedding can be addressed to a considerable extent if consumer tariffs reflect the higher cost of generation, but this would involve rationing through the price mechanism rather than quantity rationing through load shedding as is being done at present. Higher tariffs affect the competitiveness of our industry, not to mention the greater incidence of power theft and other corrupt practices. Therefore, the search for cheaper forms of energy has to be a major priority. Generation of electricity through hydro power is cheaper but project engineering and social, environmental and political dimensions are far more complex than those of thermal power. Other power options based on wind and solar energy are in their infancy in Pakistan. Thermal energy based on Thar coal reserves is also at an exploratory stage. Let’s hope the new governments will focus on indigenous and renewable resources for power generation, which have become economically far more viable because of major escalation in international oil prices since 2008. Reehana Raza is the CEO of Institute of Development and Economic Alternatives (IDEAS). Anjum Nasim is a senior research fellow at IDEAS.

Najma Sadeque
Reign of mafia in Karachi’s society and economy There is an old and established bazaar (shops below, owners’ flats above) in Clifton, Karachi, close to the Defence Society – all in the now-famous NA-250 constituency – known as Delhi Colony. It is inhabited by Muslims of various sects, Christians, Hindus, locals and migrants, none of who give a hoot about what other people’s faith or ethnicity are, let alone who they vote for. Previously, its best feature was that even when all other city bazaars shut down, Delhi Colony always stayed open, quite oblivious of news and politics. So much so, when people in other parts of town had urgent need on hartal days, they would drive all the way to Delhi Colony – Until about 10 years ago. On that fateful day, out of the blue, a gang of hoodlums brandishing clubs, charged in and overturned the thelas spilling cooked food and other items onto the street, flung and smashed goods from shop shelves, and beat up enough shopkeepers and roadside vendors for good measure. As word spread like wildfire through Delhi Colony, people quickly pulled down their shutters while thela-walas fled, some forced to leave their thelas behind, losing their wares and earnings for the day. The attackers did not hide who they were. They warned their victims who were told to pass on the word, that if ever again Delhi Colony was kept open during hartals, they would not be left with a business to run – or perhaps their skulls. Delhi Colony has never again disobeyed. It took just one decisive assault to ensure that. Routine reminders come with ‘inspection’ or ‘bhatta’ visits. It was therefore significant how quickly the patience of residents and shopkeepers wore thin, albeit justifiably, because of the PTI protestors’ dharnas in Lahore that inconvenienced traffic and affected business. How would they have reacted if they had to endure what Karachiites did for 30 years every time life suddenly came to a standstill. The bigger the city, the richer the pickings. This makes any metropolis in the world — especially of 18-plus million potential prey – mouth-watering for mafiosi. Money can be made from rich and poor alike depending on nature and scale of activity. There’s hierarchy among thieves as well, and many are directly vertically linked. The police are a prime example of this. But cruel and corrupt to the core though the police may be, it can be contained if, by some good fortune, some head honcho turns out to be honest, tough and transparent enough to get cracking. In fact, the police are the lesser of Karachi’s problems. The mafia leads, work in collusion with facilitating partners – government functionaries, and the police, who get their respective cuts. Favours done for politicians too. The mafia calls the shots in Karachi. It is highly organised, fascist, carving up the city territorially, every apartment building or locality assigned an armed unit to ‘manage’ it. Grounds rules are spelt out to residents, regular ‘donations’ collected for voluntary services, like looking after their ‘security’. In return, they just need to attend mass meetings at short notice. There are separate charges for one-off but more complex jobs. Want an electricity connection that won’t fetch a regular bill? Or some service, whether legitimate or document tampering, from a reluctant government department? Want to encroach and build on government land or private absentee property? Easily arranged. Teachers and municipal jobs also for sale. Of modest means? Need a permanent location on the roadside, ideal for selling fruit, vegetables or whatever from the thela? Done deal. Own a conspicuously large generator that says you must be loaded to afford it? Then you can also afford the price for its protection. Or is some greenhorn trying to muscle into what you consider to be your territory, albeit through honest competition? For a reasonable price, he’ll be taught a lesson never to give cause again. One rule every family head must always remember: if rules are defied, someone will have to pay in the worst way possible. God help you if you have women and children in your family you can’t bear to see hurt. There’s one serious – perhaps gutless – mistake every single government, civilian or military, has made about Karachi for over three decades. Or was it just cruelly easy, self-serving compromise? Every government has always treated Karachi’s known but unacknowledged mafia hegemony as a political instead of a criminal issue, although dealing serious social and economic consequences. It was established long, long before the Taliban and other terrorists entered the scene. Yet it took the latter’s equally unacceptable behaviour to justify Rangers operations, although mafia mayhem wasn’t very different. As if democracy doesn’t include that citizens have a right to a mafia-free society and economy.

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Chinese PM Li Keqiang arrives today on landmark visit

Chinese Prime Minister Li Keqiang will be arriving in Islamabad today (Wednesday) on a two-day landmark visit. It is Keqiang’s first visit to Pakistan after assuming charge as the prime minister and he would be accorded a warm welcome by the Pakistani government. President Asif Ali Zardari and Prime Minister Justice (r) Mir Hazar Khan Khoso will receive Prime Minister Keqiang. Six JF-17 thunder fighters of the Pakistan Air Force will escort the Chinese premier’s aircraft after its entry into the Pakistani airspace. The JF-17s will guide the special Air China Boeing 747 aircraft to the Nur Khan Air Base, where a 21-gun salute will herald its arrival. The visit is taking place immediately after the general elections in Pakistan. It will provide an opportunity to the Chinese premier to meet the newly-elected political leadership in the country. On the eve of his visit, the Chinese premier hinted at his government’s likely initiatives for increasing imports from Pakistan, stating that “China takes its trade imbalance with Pakistan seriously and is taking measures to address the issue as there is great potential to be tapped in their economic cooperation”. “Pakistan’s export to China last year increased by nearly 50 percent. China is Pakistan’s second largest trading partner and fourth largest export market. Steady progress has been made in their cooperation in energy, infrastructure, telecommunications and financial sectors,” he added. The Chinese premier will be accompanied by Foreign Minister Wang Yi, Minister for Commerce Gao Hucheng and National Development Reform Commission Chairman Xu Shaoshi. After his arrival today, the Chinese premier will meet President Zardari at the Presidency. Then he will hold talks with the president and the prime minister after which there will be a joint press stakeout. Prime Minister Khoso will host a banquet for the Chinese prime minister in the evening. Keqiang will also be conferred upon the highest award of Nishan-e-Pakistan. He will also hold a joint meeting with the Senate chairman and the National Assembly speaker and will also address the Senate. Leaders of the political parties will also call upon the visiting Chinese prime minister. On May 23, PML-N President Nawaz Sharif will call on the Chinese premier. He will also visit the Pakistan-China friendship Centre with Prime Minister Khoso and is also scheduled to plant a tree in Shakarparian. Prime Minister Khoso will bid farewell to the Chinese premier on Thursday and the six JF-17s will again escort the dignitary until the aerial limits of Pakistan. Premier Keqiang’s visit will mark yet another important step forward in reinforcing the strategic partnership between the two countries and open up new avenues for bilateral cooperation. In an earlier interview with the Pakistani media, the Chinese prime minister said, “When it comes to Pakistan, the first word that comes to the mind of the Chinese is ‘iron brother’. To us, the Chinese, Pakistan is always a trustworthy friend who is as solid as iron.” “Actually, the Chinese refer to Pakistan as Iron Pak. This testifies to the strength of China-Pakistan friendship. In 1986, I led a youth delegation to Pakistan. Wherever we went, in Islamabad, Lahore and Karachi, we were greeted with rapturous welcome. The petals showering on us and brightly smiling faces are still fresh in my memory, as if it happened only yesterday. I will never forget the goodwill of the Pakistani people,” he added.

Six FATA independents join PML-N

Six independent candidates elected from the Federally Administered Tribal Areas (FATA) on Monday announced joining the PML-N. The six, including Shahji Gul, Bismillah Khan, Sajid Toori, Ghazi Gulab Jamal, Bilal Rahman and Nazir Khan, met PML-N chief Nawaz Sharif in Raiwind before announcing the decision. The members from the tribal region have selected Abbas Afridi as their leader, who according to PML-N sources had already met the PML-N chief. The successful FATA candidates also assured the PML-N leadership of their full support and cooperation for the party in government formation.

Country’s budget dangerously dependent on foreign money

It was learnt on Wednesday that up to a quarter of proposed spending budgeted under the next fiscal year’s federal development programme depended on Pakistan’s relations with international creditors. Meanwhile, uncertainty continues to linger over the Pakistan Muslim League-Nawaz (PML-N)’s policy towards the International Monetary Fund (IMF). Finance Ministry sources said that budget makers estimated receipts worth Rs112 billion as loans for projects in the Public Sector Development Programme (PSDP) 2013-14. This foreign loan component formed almost 25% of the total proposed development budget of Rs 450 billion for the next fiscal year. The National Economic Council, which would be headed by the new prime minister, would accord a final approval to next year’s PSDP before its presentation to the National Assembly. Foreign contributions are key to the PSDP’s overall size as loaned money was usually used to procure machinery and equipment for different projects. However, uncertainty regarding the timely disbursement of foreign funding was perpetual due to factors such as the timely execution of projects and the country’s relations with international creditors. Sartaj Aziz, tipped as the next adviser to the prime minister on the economy and foreign affairs, recently said that his government would not negotiate for a new programme with the IMF for at least the next three to four months. The IMF usually did not provide funds for project assistance and released money only for balance of payments crises. However, the other creditors who do – like the World Bank and the Asian Development Bank (ADB) – have always looked to the IMF before extending any assistance to Pakistan. Due to Islamabad’s strained relations with the IMF, the World Bank and the ADB have suspended budgetary support to Pakistan. The latter two were also in the process of canceling various project loans, primarily because of Pakistan’s inability to complete projects punctually and its bureaucratic mismanagement. Aziz’s statement heightened uncertainty as economic managers were planning their budgetary projections for the next fiscal year, a Planning Commission official said. While foreign loans for development projects were important, there was always risk in their disbursement by donors, said former State Bank of Pakistan Governor Dr Ishrat Husain. He added that slow progress on projects caused slow disbursements from international lenders. Dr Husain is also critical of the PSDP structure: he maintains that the fragmentation of PSDP allocations into various categories, like the Peoples Works Programme (which is spent at the discretion of the prime minister and parliamentarians), has rendered the PSDP ineffective and leaving little impact on economic growth. Planning Commission spokesperson Asif Sheikh said a final decision will be taken regarding the share of the foreign loan component in the total size of the PSDP after due diligence. He said the Planning Commission, having learnt from past mistakes, would take only those foreign loans into account which have already been affirmed by lenders. Out of a total of Rs 360 billion size of the PSDP for the current fiscal year, the foreign loans component was Rs 100 billion. Approximately Rs 84 billion had been received by early May, Sheikh said. Pakistan’s increasing reliance on foreign loans exposed it to exploitation by lenders, sources warned. For instance, China’s Exim Bank withheld $448 million despite committing that sum to the 969 megawatt Neelum-Jhelum Hydropower Project, which greatly affected work on its development. The Exim Bank forced Pakistan’s hand, asking the country to take another loan for the controversial Safe City Project, designed to protect major cities from terrorist attacks by installing scanners at key areas. The Supreme Court of Pakistan had earlier struck down the project after finding serious flaws in its contract. After the Exim Bank’s refusal to release funds otherwise, the government was forced to negotiate an expensive $500 million loan from the Standard Chartered Bank to continue work on the Neelum-Jhelum project.

Power protests erupt as Finance Ministry releases Rs 15b to enhance generation

loadshedding-480x238

    The Finance Ministry has released a sum of Rs 15 billion to the Ministry of Water and Power to ensure provision of fuel to thermal power plants to overcome the energy crisis. On the other hand, ,masses irked by prolonged outages ran out of patience and resorted to immense and vociferous protests on the streets of Punjab and KP on Tuesday. The decision for provision of the fund was taken in a meeting held under caretaker Prime Minister Mir Hazar Khan Khoso on Tuesday. The Finance Ministry would release another Rs 7.5 billion to the Ministry of Water and Power this month per the decision, besides arranging Rs 42 billion next month on this count. The release of this amount would ensure continuity of fuel supply to thermal power plants, enabling them to generate power in conformity with their potential. When the PPP-led coalition government came into power, the power shortfall stood at 3,000MW and the circular debt was around Rs 250 billion. Soon after assuming power, the government claimed it would end load shedding by December 2009. But these claims proved only hollow promises and the problem aggravated further. On the contrary, the circular debit surged to Rs 600 billion and power shortfall escalated to 6,000 megawatts. Citizens of Punjab have to face power outages for up to 16 hours a day in urban areas and 21 hours in rural localities. Energy sector experts warn that if no emergency arrangements are made by the new government, it would become hard for the people to spend the summer. They opined that the government would have to introduce duty-free policy for the period ranging between 5 to 10 years for the private sector to import power generation machinery. Payments of billion of rupees will also have to be made to gas and oil marketing companies immediately. PML-N chief Nawaz Sharif is contemplating importing 10,000MW of electricity from India. The PML-N-led government will consider seriously evolving short term and long term strategy to import 1000MW from India to over come power shortage. Meanwhile during protests against the power outages, people in Lahore staged a protest outside the residence of PML-N President Nawaz Sharif, raising slogans against the caretaker setup. Protests were also held in Multan’s Chowk No 9, Bahawalnagar’s district bar association and Peshawar. Officials of water and power have put the electricity production at 11,260MW against a demand of 15,000MW, an overall shortfall of 3,740MW.  

Our vision for education is not very different from PTI: JI

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Khyber Pakhtunkhwa (KP) Jamaat-i-Islami (JI) chief Mohammad Ibrahim on Tuesday said that the people should not fear radicalisation of curriculum if the provincial education department goes to his party as its education programme was similar to that of Pakistan Tehrik-i-Insaf. “It is only propaganda. If other countries make their children aware of their war history, our children should also know about it. We need to prepare ourselves for the defence of our country,” Ibrahim told reporters. The people holding key positions in the provincial bureaucracy feel the likely decision to assign the provincial education department to JI may cause more harm than good. “If given the provincial Education Department, we will act in line with the basic principles of our Constitution,” Ibrahim said, rejecting fears that JI might propagate jihad in textbooks. He said there was nothing unconstitutional in the curriculum at the moment, so his party would not bring big changes to the curriculum. Education experts do not agree with the JI provincial chief’s contention. A former chairman of Peshawar Textbook Board and current vice chancellor of Bacha Khan University, Charsadda Professor Fazl-i-Rahim Marwat, said many changes had been made to curriculum since 2006 to bring in the message of peace and progressive thought. “Everyone knows JI protested against these changes and forced us to reverse changes in Islamiat and English textbook,” he said. Marwat feared that subjects, which propagated radical or biased mindset, should not be present in the education system. “We have shown invaders as heroes. There exists a specific mindset, which we tried to change but it is still there,” he said, referring to the past efforts to remove gender stereotyping, violence and religious/sectarian biases from the curriculum. “We’d tried our best to change things before putting them in right perspective but the curriculum is now going to be handled by JI, whose inclinations are known,” he said. However, Ibrahim brushed aside such reservations and said, “Nobody should have any fears about radicalisation of curriculum if the provincial education department goes to Jamaat-i-Islami.” He said JI leaders had held meetings with PTI leadership and Qaumi Watan Party on distribution of ministerial portfolios and they all had showed willingness to hand the education department over to his party. “If the education department is given to us, we will coordinate with PTI on all educational matters. We will promote literacy and offer free education to children up to the age of 16,” he said. PTI, which has emerged as a leading political party in the provincial assembly after May 11 polls, had promised in its election manifesto that it would declare education emergency, increase education spending from two percent to five percent of gross domestic product, introduce inform education system by doing away with the divide between the public and private sector, remove gender stereotyping, revise and improve textbooks and curriculum, and involve community in school management, and double girl enrollments in schools. However, there are many in the education department who feel that if given the major education department, JI could turn out to be a major hurdle to the implementation of the PTI emergency steps for education reforms. “If PTI tasks JI with managing the Education Department, it might radicalise curriculum,” an official said. He said the education department was important because teachers of government schools and colleges and politicians had a nexus to protect each others’ interests. “Teachers help politicians during elections and politicians help them after coming to power,” he said. The official said the chief minister should keep the education portfolio with himself to check political interference in the key department.

Nawaz seeks JUI-S help to start talks with Taliban

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Jamiat Ulema-e-Islam-Sami (JUI-S) leader Yousaf Shah on Tuesday said Nawaz Sharif has indirectly contacted Samiul Haq to start negotiations with the Taliban. He said that JUI-S would give final reply of the PML-N’s request after Nawaz would take oath of prime minister. He said that to eliminate terrorism from the country, the government would have to change foreign and internal strategy by making independent policies. Shah said the PML-N wanted to initiate dialogue process with the Taliban to improve the law and order in Pakistan and showing seriousness on the matter. Nawaz had repeatedly hinted to start talks with the Taliban. He revealed that Nawaz sent a message to JUI-S head Samiul Haq and sought cooperation to establish peace in the country. He said that Samiul Haq responded positively by saying that he had made serious efforts to bring peace back to the country in the past and would continue in future too. “Although PML-N gained heavy majority in National Assembly but the negotiation process with Taliban could not be started unless Nawaz assume the charge of chief executive of the country. At present he has not any official office”, Shah added.

PML-N’s Changez Marri emerges as strong candidate for office of Balochistan CM

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In the changing politics of the province, Nawab Changez Marri has emerged as the dark horse, a strong candidate by the PML-N for the office of Balochistan chief minister. Before that Sardar Sanaullah Zehri was PML-N’s candidate for the top office of the province but in a new twist in the local politics, the Pakhtunkhwa Milli Awami Party is not ready to accept Zehri as the leader of the House, hence creating a problem for the PML-N to pick a new candidate. It is learnt that the PkMAP leadership has asked PML-N chief Nawaz Sharif to name somebody else. Marri, son of Khair Buksh Marri, is the party’s general secretary in Balochistan. Following a change of heart on the part of party leadership, it seemed that lady luck had smiled on Nawab Marri. But Zehri is not happy with the party’s decision. On Tuesday, Nawaz deputed Zafar Iqbal Jhagra to convince Zehri to not insist for the coveted office in the greater interest of the party. But so far Jhagra has not been able to achieve his goal. The PML-N is all set to form government with the support of smaller parties in Balochistan. The PkMAP is the leading party in the Balochistan and so the main ally of the PML-N.

Former KP minister arrested from courtroom

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Former Khyber Pakhtunkhwa (KP) minister Arshad Abdullah and his 18 aides were arrested from courtroom on Wednesday after his interim bail extension plea was rejected. Five cases, including intervention in official work, were registered against the former minister. He was granted bail until today (Wednesday). When he appeared before the court to get extension in the interim bail the judge dismissed his plea and ordered police to arrest him. Complying with the court orders, police arrested the former minister and his 18 companions.

Former KP law minister arrested

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Former law minister of Khyber Pakhtunkhwa (KP) Arshad Abdullah was arrested on Wednesday from a session court in Charsadda after the court cancelled his pre-arrest bail application in a case registered against him for attacking a police check post and freeing an apprehended associate. The police had lodged an FIR against Abdullah and 18 others who were accused of attacking a police check post in Charsadda’s Utmanzai area on April 26 and freeing an associate who was apprehended by the security personnel at the check post for carrying an unlicensed weapon. Abdullah and his accomplice were arrested within the court premises and were handed over to the city police station.

SC not too enthusiastic about taking action against Altaf

IftiKhar Chaudhry-1, chief justice of Pakistan

Refusing to take action against Muttahida Quami Movement (MQM) chief Altaf Hussain, the Supreme Court (SC) on Wednesday postponed the hearing of a case against Altaf’s controversial statements and asked the petitioner to prove the maintainability of the case in the court. Heading a three-judge bench, Chief Justice Iftikhar Muhammad Chaudhry said that it was not the job of the Supreme Court to take notice of statements that would create law and order crisis in the country as that was the job of the law enforcement and security agencies. The petition was filed by the Watan Party. Barrister Zafarullah, who represented the petitioner, read out the excerpts of Altaf Hussain’s speech published in newspapers. Zafarullah accused Hussain of threatening to divide Pakistan. Chastising the petitioner, the chief justice said that Altaf Hussain should have been made the respondent in the case if his speech was objectionable. The petitioner replied that MQM’s chairman had been named the respondent in the petition. Continuing to grill the petitioner, the chief justice told Watan Party’s representative that the MQM was “probably” headed by Farooq Sattar, not Altaf, according to Election Commission of Pakistan (ECP) documents. When the bench was told that Altaf Hussain did indeed head the party, Justice Ejaz said that the Supreme Court could not go after “every party leader making a speech.” The apex court adjourned the case hearing for one week. During his speech in Karachi last week when PTI workers were holding a demonstration at Teen Talwar area of Clifton, Hussain made some remarks that created controversy and prompted many Pakistani and British citizens to file complaints at London Metropolitan Police.

SC tells caretaker government who is boss, cancels all appointments, transfers

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Intervening in the bureaucratic deadlock between the caretaker government and the country’s powerful administration, the Supreme Court on Wednesday cancelled all appointments and transfers of officers made by the government in the three months of their tenure. The SC also directed the attorney general to get a written answer from the caretaker government regarding the changes made. According to officials, the primary role of the caretaker setup was to host and oversee elections which were now over. All transferred or appointed officers will revert back to original postings. In an unprecedented move, the caretaker government of Balochistan announced the creation of two more districts, Sohbatpur and Lehri, days before its departure. Sources say the reason for this is not administrative, but political. Dividing the Khosa and Domki strongholds will allegedly benefit both the outgoing caretaker CM Balochistan and the caretaker prime minister. Caretaker Chief Minister Nawab Ghaus Bakhsh Barozai’s brother lost the elections in Sibi. It is, reportedly, after this incident that the decision to separate Sibi from Lehri was taken to ensure that Barozai retains his seat from Sibi. Hailing from Sohbatpur, caretaker prime minister Khoso was also seen supporting a candidate who eventually lost to Mir Zafarullah Jamali from the Jaffarabad constituency. Khoso, upset at the defeat, reportedly separated Sohbatpur from Jaffarabad district to ensure undivided political influence in the region.

ATC reserves ruling on Musharraf’s bail plea in judges’ detention case

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The anti-terrorism court (ATC) in Islamabad on Wednesday reserved its ruling on a bail plea filed by former military ruler Pervez Musharraf in the judges’ detention case. According to details, the ruling was reserved during a hearing of the case by ATC judge Kausar Abbas Zaidi. During the hearing, public prosecutor Amir Nadeem Tabish said clause 780-A pertaining to terrorism had been added to the list of charges against Musharraf, making the case against him even more strong. In his arguments, Tabish added that judges and their family members had been detained in their homes for months and that the charges against the former army strongman were of a serious nature, who should not be granted bail. He further said that the emergency imposed by Musharraf in the country on November 3, 2007 was detrimental not only towards the judges but for the public at large. However, Musharraf’s counsel Ilyas Siddiqui argued that there was no evidence against his client and requested the court to grant the bail application. Tabish moreover told the judge that he had been appointed public prosecutor in the case only until the court’s ruling on Musharraf’s bail plea, adding that he had no authority to present a charge sheet in the case. At this, the judge expressed amazement and asked as to how it could be that one public prosecutor was appointed for Musharraf’s bail plea and another to present charges against him. Subsequently, the judge inquired of the investigation officer as to when would the charge sheet against the former military ruler be finalised. Responding to the query, the officer said that three institutions had been approached in this respect; however, all had so far failed to submit their responses. The court reserved its ruling on the bail plea after the parties concluded their arguments.

Imran Khan discharged from hospital

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Pakistani Tehreek-i-Insaf (PTI) chairman Imran Khan on Wednesday left the hospital two weeks after breaking bones in his back in a fall at an election rally, a hospital spokesman said. The 60-year-old politician was ordered to remain immobile in bed after he fractured vertebrae and a rib in a dramatic tumble just days before the May 11 general election, where his party made a major breakthrough. Khwaja Nazir, a spokesman for the Shaukat Khanum Memorial Hospital in the eastern city of Lahore, where Khan was being treated, said that the Pakistani politician had returned to his home in the city. “He would stay in his Lahore home for three days and then would be shifted to his home in Islamabad,” Nazir said. “Doctors have advised him rest, for two more weeks.” On Tuesday, he was fitted with a specially designed spinal brace, which enabled him to stand upright for the first time since his fall and doctors said that Khan was able to walk unaided for over 300 meters without any discomfort or pain. Khan, who leads the PTI, electrified much of the campaign with his calls for reform and galvanised many young people to take part in voting for the first time.