Category: 1. Pakistan

• Says govt removed ‘corrupt FBR officials’ without yielding to pressure or favouritism
• Notes investment in youth essential for Pakistan’s future success

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday reaffirmed the government’s commitment to achieving a complete economic turnaround through long-overdue reforms, structural changes and prioritising meritocracy.

Addressing a group of Pakistani students enrolled in leading global educational institutions and selected for the government’s internship initiative ‘Uraan Pakistan’, the prime minister said that when the current government took office in 2023, Pakistan was facing a serious threat of default and its future was hanging in the balance.

“The majority believed Pakistan would default, while only a few were optimistic we would avoid disaster,” he said, adding that he held marathon discussions with the IMF managing director and gave firm assurances that Pakistan would not default and would stay committed to the Fund’s programme.

He said that the economy was in a bad shape at that time, with inflation reaching 38 per cent while the policy rate was hovering at 22pc. The PM, in his remarks broadcast on national TV channels, further said that they had a huge responsibility to work together with unity and sincerity to steer the country out of the crisis.

“The joint efforts have paid off as now the policy rate has dropped to below 11pc. The Uraan Pakistan programme has also taken off,” he added.

He also referred to reforms and digitisation of the Federal Board of Revenue (FBR), saying the government had removed corrupt officials without yielding to pressure or favouritism.

“To root out corruption from the FBR, I had a clear vision and took unprecedented decisions, ignoring the culture of favouritism,” he said.

The prime minister noted that earlier, the digitisation process in FBR had only existed on paper, as no practical steps were taken, blaming corrupt and shrewd elements for misleading the system.

Now, he said, digitisation was the hallmark of FBR, where work had been converted from paper-based to digital, with multiple initiatives including AI and faceless interaction.

As a result of the measures, revenue collection in one sector had jumped from Rs12bn to more than Rs50bn in one year, highlighting the extent of previous tax evasion, he maintained.

“We face a long and thorny journey, with mountain-like obstacles, but I assure the nation we will not shy away from fulfilling our responsibilities.”

Underscoring the importance of the country’s youth, he said their role is key to Pakistan’s success, and any investment in them is an investment in the nation.

Responding to students’ queries, the prime minister said that due to climate change, Pakistan had suffered significantly during the 2022 floods, with the economy facing $30 billion in losses, despite the country’s minimal contribution to the global greenhouse effect.

To another question, he said that Pakistan faced India’s uncalled aggression against the backdrop of the Pahalgam incident in May. “I proposed an impartial international investigation, but India never responded,” he said.

He claimed that as a result of Indian aggression, 55 Pakistanis were killed. In self-defence, Pakistan shot down six Indian aircraft. “On May 9 and 10, following India’s attack, Pakistan responded with full might and taught the enemy a lesson,” he said.

The prime minister praised the armed forces for their professionalism and bravery, stating that Pakistan had won the conventional war. He reiterated that Pakistan’s nuclear programme is solely for peaceful purposes and self-defence.

Published in Dawn, July 13th, 2025

• Wants change to come from within PTI
• Accuses provincial govt of paying ransom to militants
• Terms Fata merger a ‘mistake’
• Says law and order worst in KP, fragile in Balochistan, while Sindh is under ‘dacoit rule’

PESHAWAR: Jamiat Ulema-i-Islam (JUI-F) chief Maulana Fazlur Reh­­man on Saturday ruled out the possibility of a no-confidence motion agai­nst the Khyber Pakh­t­­unkhwa government, stressing that the province could not afford further political turmoil.

Speaking at a press conference at the party’s provincial headquarters, Maulana Fazl said his party had neither considered nor discussed tabling a no-confidence motion against the KP government.

However, he said that he would prefer such a change coming from within the PTI ranks. “We would prefer if the majority of the (provincial) ruling party brings about such a change,” he said.

Maulana Fazl also claimed the PTI’s mandate was illegitimate and the result of electoral rigging.

Regarding seat adjustments for the upcoming Senate elections in KP, the JUI-F leader said the matter was at a very early stage and he would not comment on it yet.

He expressed grave concern over the worsening law and order situation in KP, claiming it was the worst in the country. He added that Balochistan’s security was also fragile and that Sindh was under “dacoit rule”, while the federal and provincial governments appeared indifferent to the crisis.

Maulana Fazl alleged that the KP government was paying a monthly ransom to militants. “This government is paying monthly ransom to armed men,” he said, stressing that such practices would only embolden them. “How can the government control militancy when powerful figures are encouraging the militants?”

He said the JUI-F would never accept the writ of armed groups engaged in “un-Islamic activities”. He said religious scholars from both Pakistan and Afghanistan had issued fatwas against such groups, but young people were still taking up arms, while the state had failed to fulfil its duty to protect citizens.

“When the issue relates to the state itself, it responds. But when it comes to the people, the government becomes a mere spectator,” he said, insisting that the public had lost confidence in the authorities.

Maulana Fazl also condemned the killing of ANP leader Maulana Khanzeb in Bajaur earlier this week, saying that several areas of KP were witnessing such incidents.

He recalled that during the Muttahida Majlis-i-Amal’s rule in the province, there was peace. “Today, no one is safe in KP,” he added.

He said the JUI-F would be willing to participate in or even arrange a multi-party conference if the opposition parties decided to raise the law and order issue jointly.

He also criticised the merger of the former Fata with KP and questioned under whose pressure the decision was made. He said the merger was a mistake that needed to be acknowledged.

The political leadership demonstrated short-sightedness by agreeing to the Fata merger, he said, adding that revenue records in the merged districts were non-existent and revenue staff had been unable to visit the area for the past eight years.

Referring to the federal government’s committee on restoring the jirga system in merged areas, Mr Rehman questioned the representation of Pakhtuns in the committee.

He said the government had asked the JUI-F to nominate a member and that the party’s tribal jirga would meet on Sunday (today) to discuss the matter. However, he added, they were considering nominating someone from among the tribes instead of a JUI-F representative.

Published in Dawn, July 13th, 2025

QUETTA:

Balochistan Chief Minister Mir Sarfraz Bugti has urged the human rights organisations to build an impartial and fact-based narrative of Balochistan’s history, current realities and overall situation.

He expressed these views in a meeting with a delegation from the Human Rights Commission of Pakistan (HRCP) at the Chief Minister’s Secretariat in Quetta on Saturday.

Bugti said the ongoing narrative at the national and international level regarding Balochistan was inconsistent with facts and was in need of revision to reflect a balanced and accurate perspective.

The meeting included in-depth discussions on law and order, human rights conditions and the province’s social development initiatives.

Dwelling on history, Bugti pointed out that the accession of the erstwhile Kalat State to Pakistan in 1948 was the result of mutual agreement rather than coercion, adding that certain groups had deliberately distorted historical facts to mislead those unfamiliar with the region’s true past.

Referring to recent terrorist incidents, he condemned the targeted killing of innocent citizens based on their identity, describing it as part of a broader agenda driven by hostile foreign powers, particularly India.

“These terrorist acts have nothing to do with a struggle for rights but are part of an organised attempt to destabilise and divide Pakistan,” he said, adding that supporters of these groups have openly expressed their intentions on various national and international platforms.

Questioning the legitimacy of such violent acts, Bugti asked, “What kind of rights movement involves killing people based on their ethnic identity?”

He pointed out that such elements had rejected dialogue and openly advocated for the division of Pakistan, an approach that was unacceptable in any civilised state or society. He reiterated that the state bears a constitutional and legal responsibility to safeguard the lives and property of its citizens, adding that the obligation would be fulfilled under all circumstances.

Addressing the issue of missing persons, he noted that the phenomenon was not confined to Balochistan alone, but also existed in other provinces and in various countries worldwide.

However, he expressed concern over the prevailing tendency in the country to level accusations against state institutions without concrete evidence.

ISLAMABAD:

The price of sugar in the country continues its upward spiral, with retail rates reaching as high as Rs200 per kilogram in major cities, the latest data released by the PBS showed on Saturday.

In its newly issued weekly price statistics, the PBS reported that the national average price of sugar has climbed to Rs188.44 per kg, marking a weekly increase of Rs3.52.

According to the statistics bureau, sugar has now crossed the Rs200/kg mark in Karachi, Islamabad and Rawalpindi, making it the most expensive sweetener in recent months and further burdening household budgets already strained by inflation.

ISLAMABAD:

The finance ministry has disclosed in a report that Pakistan International Airlines (PIA) last year incurred a net loss of Rs4.6 billion and one-off accounting profit of Rs26 billion due to treating past losses as future assets “should not be misinterpreted as a sign of operational profitability”.

The biannual report on federal state-owned enterprises (SOEs) has again highlighted the inefficiencies of PIA, though it has been freed from legacy debt and liabilities.

The Central Monitoring Unit (CMU) of the Ministry of Finance released the report on Friday, which gave an in-depth understanding of the accounts of PIA Corporation Limited (PIACL) after its restructuring in which Rs660 billion worth of debt was taken out of the company books.

“Despite the overhaul, PIACL Core still reported a pre-tax loss of Rs4.6 billion for the full year and Rs2.3 billion over six months,” said the Ministry of Finance.

Three months ago, every high-up from Defence Minister Khawaja Asif to Prime Minister Shehbaz Sharif showed satisfaction with PIA’s profit of Rs26 billion without knowing that it was a mere “accounting profit”. The finance ministry’s report stated that a one-off deferred tax asset (DTA) recognition of approximately Rs30 billion was booked as part of the restructuring. While this resulted in an “accounting profit”, it is important to recognise that this is a non-cash adjustment, stated the ministry while correcting the record.

The report stated “excluding the DTA, the airline’s net loss before tax stands at Rs4.58 billion for 12 months,” ending December. This DTA reflects the company’s expectation of future taxable profits, which is itself a vote of confidence in the potential recovery path, but it should not be misinterpreted as a sign of operational profitability, said the ministry. “The CMU has, therefore, highlighted this so that future valuations consider these items”.

Accounting rules permit the DTA recognition where sufficient future taxable profits are probable, enabling to offset the accumulated tax losses.

“The deferred tax asset of Rs30 billion represents a future tax shield and should not be considered part of core profitability,” said CMU Director General Majid Soofi.

But the CMU has plainly said that “the profit figures are essentially impacted by deferred tax reversals, impacting the effective tax rate and earnings quality”.

The report stated that a significant outcome of the restructuring was the dramatic reduction in long-term financing liabilities, from over Rs295 billion to just Rs13 billion, including lease obligations. Consequently, the finance cost plunged from Rs79 billion to Rs10 billion. The cost of services remains elevated and total operational costs reached Rs106.6 billion. “To mitigate these pressures, PIACL must aggressively pursue fleet modernisation, enter fuel hedging contracts and renegotiate existing supply agreements,” the CMU recommended.

It added that Rs8.3 billion in administrative cost and another Rs8.2 billion in distribution cost were high. PIACL also incurred exchange losses of Rs2.3 billion, reflecting unhedged exposure to foreign currencies that is a structural vulnerability for any international airline.

The finance ministry said that following delisting from the Pakistan Stock Exchange and full government ownership of PIA via Holding Company, PIACL “is now free from short-term market pressures”.

But it said that a performance-based human resources model must be introduced, along with international productivity benchmarks and merit-based promotions.

The ministry stated that PIA and Pakistan Telecommunication Company Limited (PTCL) also posed major risks. PIA’s heavy debt despite debt being carved out increases insolvency risks, requiring urgent restructuring and potential strategic partnerships. “Rapid privatisation should be ensured,” it said. After the failure of the first attempt, for the second attempt to privatise PIA, the Privatisation Commission has pre-qualified four parties and three of them are cement makers.

The finance ministry said that PIA and PTCL face market pressures and operational inefficiencies. Debt restructuring, operational improvements and reduced leverage through asset sales are key measures to regain financial health and reduce their dependence on the government, it recommended. PIA is among the entities that face undue interference. It has also been placed among the entities that have low compliance with the SOEs Act, falling even below 60% threshold.

To address these challenges, strategic mandates of SOEs must be clearly recalibrated and aligned with national economic goals and fiscal discipline. Long-term business plans that incorporate measurable stakeholder-aligned objectives must be institutionalised, particularly for high loss-making entities like power distribution companies, Railways, and PIA, stated the report. It added that the restructuring of PIACL marks a turning point in the airline’s decades-long struggle with debt and inefficiency.

Through the successful implementation of the Scheme of Arrangement (SOA), the airline has shed legacy debt and non-core assets, emerging as a streamlined, aviation-focused entity. This strategic realignment allows the company to shift from financial firefighting to operational revitalisation. The government has parked Rs660 billion worth of PIA debt in a new holding company along with non-core real estate assets, which substantially cleaned up the balance sheet.

With this separation, PIACL now operates as a focused airline business, while PIA Holding Company takes on the responsibility of settling historical obligations through budgetary support and asset monetisation. This structure enables clearer financial reporting and makes future privatisation or partnerships more feasible. Post-restructuring, PIACL’s total assets are recorded at Rs187 billion after accounting adjustments.

The company’s current liabilities have declined from Rs482 billion to Rs142 billion and non-current liabilities from Rs366 billion to Rs41 billion. These carve-outs have eliminated the suffocating debt overhang and improved solvency metrics, offering much-needed breathing space for strategic decision-making, according to the report.

KARACHI: As the probe into actor-model Humaira Asghar’s death progresses, police have retrieved data from her electronic devices, offering new clues to the investigators, officials confirmed Saturday night.

She was found dead on July 8 in a flat in Defence Phase VI’s Ittehad Commercial area, where she had been living alone for seven years.

Her body was discovered when a court-appointed bailiff arrived to enforce an eviction order over unpaid rent, following a case filed by the flat’s owner.

In a breakthrough pointing to new leads, investigators have accessed her three mobile phones, a tablet, and a laptop, officials familiar with the case say.

They said the passwords for the devices were written in a personal diary found in the room where the actor’s decomposing body was discovered, allowing them to unlock and recover the data.

Two people have so far recorded their statements, while two others have been summoned for questioning, officials said.

Police added that the actress regularly visited a gym and a beautician.

Her gym trainer and others from her close circle will also be approached to help piece together her final days, according to investigators.

Humaira’s bank accounts, transactions, and communication records have also been reviewed, authorities said, noting that her contact list was small, suggesting a close-knit circle.

Officials further said no evidence suggesting foul play was found in Humaira Asghar’s apartment, while the exact cause of death would become clear once the post-mortem and chemical examination reports were available.

A case will be registered after the reports are received, they confirmed.

On July 10, Sindh Police’s Deputy Inspector General (DIG) South, Asad Raza, had said that the model’s body is probably six months old.

“The expiry date of food and drinks found in the flat is 2024, and the last messages in the actor’s phone records are also from October 2024,” DIG Raza had said, based on the police surgeon’s finding that the actor’s body was in an “advanced stage of decomposition”.

Humaira shot to fame with her appearance on the reality show Tamasha Ghar and later cemented her place in the spotlight through her role in the film Jalaibee.

Her death comes less than three weeks after renowned veteran actress Ayesha Khan was found dead in her flat in Karachi’s Gulshan-e-Iqbal area.

The passing of 84-year-old Ayesha came to light after neighbours alerted her family to a foul smell coming from her apartment.

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday credited his government’s effective measures for stabilising the economy, citing a sharp fall in inflation and interest rates, as well as a crucial agreement with the International Monetary Fund (IMF) that helped Pakistan avert default.

Speaking to students of the Uraan Pakistan Summer Scholars Internship Programme, Sharif painted a picture of economic rescue under his leadership, claiming the country had dodged financial collapse through team work and tough reforms.

“When we took over, inflation was exploding at 38% and the policy rate had hit a punishing 22%. Today, it’s down to 11%. We did not just make policies, we worked day and night and left the rest to Allah,” he added.

Pakistan’s tax-to-GDP ratio lags due to narrow tax net, informal economy: ADB

The prime minister said 2023 had brought Pakistan to the brink of default, but his administration pushed through reforms and sealed IMF agreements that stabilised the economy. “Most thought we’d go bankrupt. I knew we wouldn’t,” he said, adding that “Pakistan has come out of the risk of default.”

Sharif did not hold back from criticising what he called a deeply entrenched culture of favouritism and influence-peddling. “Recommendations start pouring in even before real reform begins,” he said. “But we were ready. Officers from grades 20 to 22 were shown the door despite pressure from all over the country.”

Taking a shot at corrupt practices, he warned, “Those who lie by swearing on Allah and the Prophet should repent.”

He pointed to major reforms at the Federal Board of Revenue (FBR) as proof of his administration’s commitment to clean governance. “Sharp bureaucrats used to game the system. We changed that. Now digitisation and faceless tech are in place and the FBR has collected Rs500 billion through enforcement.”

While touting his government’s work, Sharif struck a moral tone. “Allah will ask me what I did in this world and I’ll say I worked on merit,” he said, vowing to continue what he called a “journey full of obstacles.”

He praised Pakistan’s youth as the backbone of the country’s future and said the laptop distribution scheme in Punjab – worth Rs20 billion – was entirely merit-based. “The future lies with this galaxy of young superstars,” he said.

Sharif also took aim at India, referencing the Pahalgam incident and cross-border hostilities. “Pakistan had no role in that incident, but India used it as an excuse for aggression, killing 55 innocent civilians. We defended ourselves and shot down six enemy aircraft. On May 10, we hit back and it was a strong, united response.”

Sharif said Pakistan had offered to support an impartial international investigation, but insisted Islamabad would never shy away from defending its sovereignty.

Despite the defiant tone, Sharif said he was not seeking personal accolades. “I have never taken credit – it has always been about teamwork. We must achieve our goals, or we will face the consequences.”

Copyright Business Recorder, 2025