Category: 1. Pakistan

ISLAMABAD:

The Auditor General of Pakistan (AGP) has unearthed Rs6.58 billion in alleged overcharging by telecom operator Jazz from its customers and recommended a formal inquiry to determine responsibility. The audit has also urged implementation of Departmental Accounts Committee (DAC) directives and fixation of responsibility on those at fault.

Auditors revealed that the company had pocketed billions from consumers through various mobile packages beyond the tariff rates approved by the Pakistan Telecommunication Authority (PTA). According to Section 4(1)(m) of the Pakistan Telecommunication (Re-Organisation) Act, 1996 (amended up to 2014), the PTA is responsible for regulating competition in the sector and protecting consumer rights. Similarly, Regulation 10(1)(i) of the Telecom Consumer Protection Regulations, 2009, binds operators to ensure that no tariff is charged or advertisement launched without PTA approval, wherever required.

The PTA had approved tariffs for multiple Jazz packages during FY2023-24. However, the audit observed that the operator overcharged its customers beyond the approved rates. A comparative analysis of selected weekly and monthly packages confirmed that Jazz overcharged an amount of Rs6.58 billion during the financial year.

The audit concluded that charging customers above approved rates reflected weak regulatory oversight on the part of PTA. The matter was reported to the management and Principal Accounting Officer (PAO) in November 2024. In response, PTA argued that as a deregulated industry, it monitors competition and prevents predatory pricing by the Significant Market Power (SMP) operator, while leaving other operators to manage the Average Revenue Per User (ARPU). PTA maintained that ARPU in Pakistan is already among the lowest in the world.

The telecom regulator, through letters dated February 12, 2024, and August 12, 2024, granted approvals to Jazz for increasing package prices by up to 15% per quarter and decreasing incentives in any bundle by up to 5%, subject to prior intimation. These blanket permissions covered February-June 2024 and August-December 2024, respectively. Subsequently, Jazz increased its package rates through a letter dated November 12, 2024, under intimation to PTA.

The auditors, however, rejected the explanation as untenable, noting that granting blanket approvals for tariff hikes went against the spirit of the Consumer Protection Regulations. Audit officials retrieved information from various proposals submitted by Jazz to PTA during FY2023-24 and approvals granted by the Authority, which suggested excessive consumer burden beyond permissible limits.

The matter was later discussed in a DAC meeting held on December 26, 2024. The DAC directed PTA to provide a complete record of approved rate increases for various mobile packages to audit authorities for verification. However, PTA had not furnished the requisite record until the finalisation of the report.

The Competition Commission of Pakistan’s website states that the Commission implements the Competition Act 2010, which prohibits “the abuse of dominant position by one or more undertakings.” Section 3(i) specifically addresses “Exploitative abuses” that result in direct loss of consumer welfare, including “charging excessive prices.” However, a CCP spokesperson clarified that the issue did not fall within the Commission’s jurisdiction.

Meanwhile, Jazz strongly rejected the audit’s findings. A company spokesperson stated, “Jazz is a responsible corporate entity and has consistently operated in full compliance with Pakistan’s regulatory framework. All tariffs and services are launched only after formal approvals by PTA, in accordance with clearly defined processes.”

The spokesperson added that Jazz was reviewing the audit report’s observations regarding PTA for Audit Year 2024-25 and expressed confidence that the company had acted lawfully and transparently. “We remain confident that Jazz has acted in full alignment with PTA’s rules and regulatory procedures, including those related to tariff approvals and mandated contributions. We trust the matter will be reviewed in the context of regulatory facts, documented approvals, and institutional roles,” the statement said.

A formal comment from PTA was still awaited at the time this story was filed.

• Afghanistan promised economic cooperation, CPEC in trilateral dialogue
• Chinese FM arrives in Islamabad for ‘strategic dialogue’

ISLAMABAD: Pakistan and China on Wednesday pressed Afghanistan’s Taliban authorities to act against terrorist groups threatening their security while reiterating offers of economic cooperation and the extension of the China-Pakistan Economic Corridor (CPEC) to the landlocked country.

The calls were made during and on the sidelines of the 6th Pakistan-Afghanistan-China trilateral dialogue, held in Kabul for the first time since the Taliban’s return to power in 2021. Security dominated the agenda not only at the trilateral but also in bilateral talks the Pakistani and Chinese foreign ministers held with Afghan leaders.

Pakistan and China view Afghanistan-based terrorist groups as critical threats to their stability. Since August 2021, Afghanistan has again become a hub for the Islamic State Khor­asan (IS-K), Tehreek-i-Taliban Pakistan (TTP), East Turkestan Islamic Movement (ETIM), and Al Qaeda, according to the UN assessments.

At a China-mediated trilateral meeting in May, Pakistan had secured promises for closer coordination on security, while Beijing linked future economic projects, including the Mes Aynak copper mine, to action against ETIM militants active near Xinjiang.

Deputy Prime Minister and Foreign Minister Ishaq Dar, speaking with Afghan Acting Foreign Minister Amir Khan Muttaqi in Kabul, regretted that counter-terrorism commitments were not being honoured.

“Encouraging progress has been made in political and commercial ties, but progress in the security domain, especially in counterterrorism, continues to lag behind,” Mr Dar said, according to the Foreign Office.

He highlighted a “recent surge in terrorist attacks inside Pakistan perpetrated by groups operating from Afghan soil,” calling for “concrete and verifiable measures” against the TTP and the Balochistan Liberation Army.

The UN Security Council repo­rted in July that the TTP commands around 6,000 fighters operating from Afghan territory with Taliban support. Bolstered by advanced weapons and ties with IS-K, Al Qaeda, and Baloch separatists, the group carried out more than 600 attacks in Pakistan in late 2024, killing nearly 1,000 people.

Despite a Chinese-brokered thaw between Kabul and Islamabad earlier this year, progress remains uneven. Pakistan restored ambassadorial-level diplomatic ties with Afghanistan, and in July Interior Minister Mohsin Naqvi met Taliban Interior Minister Sirajuddin Haqqani to revive the Joint Coordination Committee on counterterrorism.

The Taliban, meanwhile, relocated some TTP families to Ghazni and Zabul provinces and offered them financial aid. But the militants rejected relocation to northern Afghanistan, citing supply chain problems; the Taliban have resisted major crackdowns, fearing defections to IS-K.

Diplomatic optics in Kabul reflected the strains between Pakistan and Afghanistan. While Chinese Foreign Minister Wang Yi met Taliban Prime Minister Mullah Hassan Akhund, FM Dar only got a counterpart meeting. Official statements and the tone of reception also suggested a more lukewarm attitude toward Pakistan.

Afghan leaders also signalled displeasure over an upcoming conference of Afghan opposition activists in Islamabad, organised by a local group. Though not mentioned in formal communiques, Taliban officials have privately voiced strong objections.

‘Positive engagement’

In his meeting with Chinese Foreign Minister Wang Yi, Mr Akhund alluded to foreign interference, saying: “We also call upon other countries to pursue the path of friendship, sound relations, and positive engagement rather than interference.”

Mr Wang, meanwhile, emphasised Beijing’s concerns over ETIM, whose fighters are based in Afghanistan and pose a threat to China’s Xinjiang region. The group, which rebranded itself as the Turkistan Islamic Party in March, has called for “jihad in Xinjiang” and maintains ties with other extremist groups.

“We also hope that Afghanistan will take into account some of our concerns, particularly concerning security,” he said. “Effective security cooperation between the two countries will establish a foundation for Afghanistan’s development. We hope that you, as China’s friend, will attach special importance to this matter and further enhance your cooperation.”

“Please assure the Chinese leadership that we have demonstrated in practice that no insecurity or other problem will emanate from Afghan soil toward any party,” Mr Akhund told Wang Yi.

Pakistan’s Foreign Office said Muttaqi reaffirmed to Mr Dar that Afghanistan’s territory “will never be used against neighbouring countries.”

Although no joint communique was issued after the trilateral, Pakistan’s Foreign Office said that the three countries agreed to strengthen efforts against terrorism. They also reaffirmed commitments to deepen cooperation in trade, transit, regional development, health, education, culture, combating narcotics and expanding CPEC into Afghanistan.

Meanwhile, the Chinese foreign minister has landed in Islamabad to attend the Pakistan-China strategic dialogue, being held today (Thursday).

Published in Dawn, August 21st, 2025

ISLAMABAD:

The International Monetary Fund has asked Pakistan to spend money on the parliamentarians’ projects through regular approval processes by abandoning a special treatment and again urged to avoid mid-year budget adjustments without prior approval of parliament.

The IMF has also emphasised the importance of a budget strategy paper by recommending its publication six months before the presentation of the budget in a move that runs contrary to the finance ministry’s practice of not timely publishing the strategy documents.

To enhance transparency, efficiency and affordability of the Public Sector Development Programme (PSDP), there is a need to integrate parliamentarians’ projects into the PSDP process, stated the IMF in its Governance and Corruption Diagnosis Assessment report.

The government is supposed to officially release the report by the end of this month.

Unlike the approval of any project by the Central Development Working Party or the Executive Committee of the National Economic Council, the parliamentarians’ schemes are approved by a Steering Committee on SDGs Achievements Programme without much scrutiny. Deputy Prime Minister Ishaq Dar chairs the steering committee.

These are small-scale schemes of community welfare, which also fall in the domain of the local governments barring the provision of electricity and gas.

In the last fiscal year, the government had spent at least Rs61 billion on the parliamentarians’ schemes and Rs70 billion has been allocated for the current fiscal year for these small-scale projects. There have also been voices from within the country against spending on these schemes outside PSDP, which can cause wastage and less spending on the ground than the approved budgets.

The IMF has also recommended limiting the PSDP allocations for new projects to only 10% of the total allocations in order to avoid thinning out already sacred resources. There is a tendency in every government to announce and approve new projects despite the fact that the existing projects require over a decade for completion due to limited resources.

The IMF has asked the Ministry of Planning to rationalize the PSDP portfolio by retaining only high priority projects. The political expediency has distorted the PSDP allocations and the federal government spends on the projects, which are in the areas that are not even the responsibility of the center.

The government has also been running small schemes through the PSDP and funds allocated for these projects are also often misused. The planning ministry did not comment on this article.

Pakistan’s overall public finance management remains weak and there is also a little appetite in the government for ensuring transparency and involving the cabinet and the Parliament in the pre-budget discussions.

The Ministry of Finance this year did not take the Budget Strategy Paper to the federal cabinet for its approval in violation of an Act of the Parliament.

However, the IMF has recommended that the Finance Ministry should advance the calendar of presenting and publishing the budget strategy paper to January and include macroeconomic and fiscal indicators in these papers. The budget is presented in June.

The global lender has further recommended that the government should also analyze the accuracy of previous macroeconomic forecasts and budget estimates after the end of the fiscal year.

The IMF, which since long has been urging Islamabad to abandon the tool of supplementary grants, again asked the government to respect Parliament’s supremacy. It has recommended that the government should avoid mid-year budget adjustments without getting the Parliament’s prior approval. In order to meet unexpected expenditures like natural disasters the IMF has recommended maintaining a contingency pool for such spending.

Currently, the government issues supplementary grants during the course of the fiscal year and gets the ex-post facto approval of the spending from the Parliament. Sometimes there are unforeseen expenses like the Rs5.8 billion allocation for flood-affected areas of the country on Tuesday.

But there has also been a practice to defer some expenditure at the time of approval of the budget to keep the overall size limited to the requirement of the IMF.

For instance, the Finance Ministry did not approve a subsidy for foreign remittances scheme in the budget due to limited space available. However, after the intervention of the Prime Minister’s Office, it authorized a Rs30 billion supplementary grant a few days ago out of the contingency expenditure pool.

The fiscal year has just begun and the government has already started the process of giving supplementary grants to various ministries.

The Economic Coordination Committee on Tuesday approved a supplementary grant of Rs250 million for the National Security Division for its Strategic Policy Planning Cell. The expenses on setting up the cell should have been made part of the regular budget approved in June.

The ECC on Tuesday, on a proposal from the Finance Division, also approved the subsidy for RAAST QR Code based person-to-merchant payments to the tune of Rs3.5 billion.

In another important recommendation, the IMF has proposed to amend the Public Procurement Regulatory Authority law and rules to bring an end to preference in procurements for the state-owned entities and charitable organizations. It has urged the government to bring these changes aimed at ensuring transparency, efficiency and accountability in the public procurement process.

As the tensions between India and Pakistan continue to persist, Islamabad on Wednesday extended its airspace ban on Indian aircraft until September 23. The Pakistan Airports Authority (PAA) issued a fresh NOTAM (Notice to Airmen) announcing the one-month extension. The NOTAM noted the ban would continue to apply to both Indian civilian and military aircraft.

“All aircraft operated by Indian airlines will not be allowed to use Pakistani airspace. The ban also remains in place for military and civilian aircraft that are Indian-owned or leased,” the Pakistani authority said.

From August 20 to September 23

Pakistan airspace not available for aircraft registered in India and aircraft operated/owned or leased by Indian airlines/operators including military flights.

Notice to Airmen (NOTAM) issued: pic.twitter.com/avMi14GtxE

— Pakistan Aviation News 🇵🇰 (@avpak3) August 20, 2025

It is pertinent to note that the Pakistani authorities first imposed the closure on April 23, a day after the Pahalgam terror attack in Jammu and Kashmir that killed 26 people. The closure was initially in place for one month.

India eventually responded to the ban on April 30 with a reciprocal airspace closure for Pakistani aircraft, starting a series of tit-for-tat restrictions. The ban was first extended on May 23. In July, Pakistan further extended the closure until August 24, affecting hundreds of flights daily.

Pakistan lost 4.1 billion in 2 months due to the closure

Earlier this month, the Pakistani Ministry of Defence informed the country’s National Assembly on Friday that Pakis­tan Airports Authority (PAA) has lost PKR 4.1 billion in just over two months. The loss was attributed to the closure of the airspace to India-registered aircraft due to the diplomatic row.

The Defence Ministry noted that the shortfall from April 24 to June 30 was in overflying revenue and was lower than the reported PKR 8.5 billion, Dawn reported. It is pertinent to note that Pakistan called for the closure of the country’s airspace after India put the Indus Water Treaty into abeyance.

While Pakistan boasted about the measure, the move affected 100 to 150 Indian aircraft flying over Pakistan daily, cutting transit traffic by almost 20 per cent. In 2019, a similar closure led to an estimated Rs7.6 billion ($54 million) revenue loss, compared to $100 million previously reported.

ISLAMABAD: In a major step towards strengthening industrial cooperation between Pakistan and China, a Chinese conglomerate, Shandong Xinxu Group, on Wednesday expressed interest in establishing a green ship-breaking yard and a maritime industrial complex in Pakistan.

The announcement followed a meeting between Prime Minister Shehbaz Sharif and Shandong Xinxu Group Chairman Hou Jianxin, who was accompanied by a high-level delegation.

A statement issued by the Prime Minister’s Office said that the two sides discussed expanding bilateral economic relations, with particular focus on sustainable development in Pakistan’s maritime and recycling sectors.

Pakistan signs MoU with Chinese shipping giant

PM Sharif welcomed the interest, reaffirming Pakistan’s commitment to enhancing economic cooperation with China and offering full government support for foreign investors.

“Pakistan is ready to take economic relations with China to new heights,” he said, adding that Chinese industries are invited to invest across various sectors.

He also reiterated the government’s resolve to facilitate investment through the establishment of Special Economic Zones (SEZs), offering every possible facility to foreign businesses.

Officials briefed the delegation on Pakistan’s untapped potential in ship recycling, fish processing, and agricultural product value chains such as date processing – all sectors in which Shandong has shown interest.

Chairman Hou thanked the federal government for its support and described the investment climate as increasingly favourable.

The meeting was attended by Minister for Maritime Affairs Junaid Anwar Chaudhry, and other senior government officials.

Copyright Business Recorder, 2025

ISLAMABAD: Pakistan Bureau of Statistics (PBS) is all set to launch the country’s economic census main findings report, official sources told Business Recorder.

The main findings report is now finalised and will be launched in a formal ceremony by Ahsan Iqbal, Federal Minister for Planning, Development and Special Initiatives on Thursday (today). The event will bring together stakeholders from Federal and Provincial institutions, economic experts and development partners.

Sharing the details, sources said Pakistan Bureau of Statistics successfully conducted the 7th Population & Housing Census 2023 the country’s first-ever Digital Census the largest digitisation exercise in the region, engaging 250,000 personnel. This census geo-tagged almost 40 million structures, enumerated 250 million people across 20 demographic variables, and documented 38 million households.

Pakistan economy enters sustained stability phase: minister

For the first time, PBS integrated questions on economic establishments covering type of activity (as per Pakistan Industrial Standard Classification) and employment numbers within the population census framework. This innovation saved the Government Rs. 7 billion and yielded a comprehensive database of 7.2 million establishments (including shops, factories, and institutions) to support evidence-based policymaking and economic planning.

The results of the 7th Population & Housing Census 2023 were approved with consensus on 5th August 2023 during 50th meeting of Council of Common Interest (CCI) and detailed demographic and housing results up to village level were disseminated publicly through website and reports on July 18, 2024.

In parallel, PBS initiated data cleaning of the Data collected for Economic census. Cleaning this large-scale dataset presented challenges due to variations in textual activity descriptions and industrial codes. PBS addressed these using rule-based algorithms, Artificial Intelligence (AI), and Large Language Models (LLM) in the field of Natural Language Processing (NLP), reflecting PBS has enhanced technical capacity in modem data processing and analysis.

Copyright Business Recorder, 2025

If anyone in Pakistan was unaware of the serious challenges in Balochistan, the events this year should have left no one in doubt. The events I refer to are not just the increasing frequency and the high-profile nature of the terrorist incidents taking place in the province – although by themselves, these should be a cause of great concern. The fact that these incidents are occurring in the backdrop of a tectonic shift in the political landscape of Balochistan makes the situation far more urgent and complex.

If the problem were limited to a small group of people unhappy with the state and, with the support of hostile intelligence agencies, fighting a terrorist campaign, a pure security lens might be appropriate in dealing with this challenge. With the experience of our soldiers fighting this battle for the last two decades in both the western bordering provinces, one would have high confidence in the success of this strategy. We have seen that soldiers and officers both are willing to offer the highest sacrifice and embrace shahadat to protect the homeland.

In addition, the recent designation of BLA and the Majeed Brigade as foreign terrorist organisations by the US government is a welcome development. The improved ties and closer cooperation with Iran also make a successful security clampdown much more probable. However, these geostrategic developments, welcome as they are, only create a window of opportunity for dealing with the root causes of the problem.

If the overwhelming majority of the province is unhappy with how the state is treating them, then it’s a political issue and not just a security issue. Dealing with this situation by looking at it through a purely security lens is not going to result in a lasting solution. Many people sympathetic to Balochistan believe that accelerating development work will solve the problem. While economic development certainly has to be a part of a comprehensive solution, it is a necessary but insufficient condition for resolving the problem.

We have to look at Balochistan mostly through a rights-based lens, since that is seen as the heart of the problem. The solution is not what we will do for them. The solution is to allow them to do what they think is best for themselves. The Baloch are not different from the rest of Pakistan or the larger world. The Baloch mother wants her children to be healthy, educated, well-nourished and safe. The youth of Balochistan aspire for the same opportunities as their counterparts in Karachi, Lahore and Islamabad, if not those globally.

The Baloch want their votes to decide who will represent them in the assemblies and who will govern their province. They want their resources to be developed, first and foremost , for the benefit of the people of Balochistan. They want to be able to raise their voice without fearing for their safety.

Which of these is not a legitimate demand? Which of these rights has not been guaranteed by the constitution of Pakistan to all citizens? Which of these rights guaranteed by the constitution of Pakistan has actually been fully given to the citizens of Balochistan? If the answer to this question is that none of these fundamentally guaranteed rights are being provided at a satisfactory level, then how will this be resolved without making these changes? These changes need to be made not because foreign-sponsored terrorists are using these slogans, but because the constitution of Pakistan demands this of us.

Elections all over Pakistan have almost always been contentious. However, when the results were perceived to be particularly blatant in 2024, look at the reaction in the country to this development. The PML-N, which had held power multiple times over decades in Punjab, has seen its popularity plummet when seen to be taking power against the will of the people of Punjab. When one of the most popular political parties, with a three-time elected PM, cannot sell a contrived mandate to the public, how do we expect weak political leaders with very little roots amongst the people to be able to do that? Yet, we have done that repeatedly to the people of Balochistan.

The deterioration of the political situation in Balochistan started with the killing of Akbar Bugti in 2006. A politician who had always been a part of the democratic process and had been a representative of the federation was killed as if he were a terrorist. I remember a close aide of General Musharraf telling one of my brothers after the killing that they had ‘solved’ the problem of Balochistan forever by killing Bugti. This arrogance and belief in kinetic power a solution to the challenges in Balochistan is what has led to the situation as it stands today.

By controlling the politics of Balochistan, we have marginalised political leaders who are willing to operate within the framework of the constitution, like Akhtar Mengal and Dr Abdul Malik, amongst others. As the people of Balochistan saw the futility of their votes and their support of political leaders who were part of the constitutional democratic process, unable to obtain the rights they demand and deserve, the support of these politicians has declined. Politicians perceived as close to the state generally lack the trust of Balochistan’s people. Hence, there are hardly any political intermediaries left who are connected to the people and can act as a bridge between the people and the state. No amount of force can fill this gap, and without this the distrust between the state and citizens will grow, which is already at a dangerous level.

The first and most vital step, therefore, is allowing a political process which puts political power in the hands of the real representatives of the people of Balochistan. These real representatives must be empowered to exercise full authority within the limits of the constitution. An empowered local government tier must also be established. These freely and fairly elected representatives should then lead a reconciliation effort to bring all those willing to accept living within constitutional bounds back into the mainstream.

With that, the development process will also have to be given an impetus. The development strategy has to put the citizens at the centre of the development effort. When we put together a special regional development package in 2020 for the least developed districts of Balochistan, it was all built around the needs of the people of the area. Education, skills (particularly digital skills), healthcare, access to mobile data services, access to water and energy, agriculture and industry were at the heart of it. The objective for the economic component was to create one million quality jobs for the youth of that area. The development of an airport and port in Gwadar, along with the construction of motorways, is a positive step, but it does little to benefit the people of these most disadvantaged districts.

The time to act is now. Let’s seize the opportunity emerging from recent global and regional geostrategic developments. You can never be sure how long this window remains open.

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The writer is a retired corporate CEO and former federal minister.