Category: 1. Pakistan

ISLAMABAD:

The central bank said on Wednesday that restrictions under the Foreign Exchange Regulation Act (FERA), including the maximum annual limit of $100,000, will apply to foreign transfers of digital currencies. The statement underscores challenges in introducing a new digital currency regime in Pakistan.

The State Bank of Pakistan (SBP) also said it is working on launching a new digital currency. It would be used for trading in digital assets. But this can happen only after the Pakistan Virtual Assets Regulatory Authority (PVARA) Bill is passed, the State Bank of Pakistan Act is amended, and a regulatory framework is put in place.

Appearing before the Senate Standing Committee on Finance, SBP Acting Deputy Governor Dr Inayat Hussain said FERA would be applicable to digital assets. He said the law’s limits will apply, including the maximum outbound transfer of $100,000 by an individual in a year.

The committee, headed by PPP Senator Saleem Mandviwalla, began clause-by-clause discussions on the proposed PVARA Bill. The government has already issued a PVARA Ordinance and is now seeking parliamentary approval to give permanent legal cover to the authority.

However, the Ministry of Law and Justice, which helped draft the Ordinance, underlined that there will be challenges in implementing FERA on digital assets.

“Some amendments will be needed in FERA, as it cannot be implemented on digital assets in its present form,” said Shehroz Bakhtiyar, legal consultant to the Law Division, while briefing the committee.

Legislators backed his view. “It is simply not possible for the SBP to monitor any outbound digital transaction due to the nature of these transactions,” said PML-N Senator Afnanullah Khan. He said Pakistanis have invested more than $21 billion in digital assets and that it is high time the government enacted a law to regularise trading.

Bakhtiyar said it would be binding on licensees to implement the $100,000 limit. But he agreed that enforcing the limit would be difficult in practice, given how these markets work.

PVARA provides the broader legal framework for the sector, said the acting deputy governor. He added that the detailed regulatory framework would be finalised later.

Both the government and the SBP have expressed concerns about the implications of the new regime for the economy and the country’s international commitments. The law ministry said these issues would be addressed through appropriate legislation.

Laws and regulations like FERA, the Financial Action Task Force (FATF) recommendations, and the Anti-Money Laundering Act would apply to digital assets to make the regime air-tight, Law Secretary Raja Naeem Akbar told the committee.

He said foreign firms dealing in digital currencies, such as Binance, would have to set up offices in Pakistan and FERA would be applicable to them too.

Akbar said the PVARA Bill had been discussed at the Pakistan Crypto Council. He rejected the impression that the bill was copied from anywhere.

Dr Hussain said the SBP would issue a digital currency that could be used to buy any digital asset. He said the value of the digital currency would be equal to the value of the rupee. A bank account holder would be able to deal with both currencies in the same account.

He said that once the digital currency is issued, the central bank will ask commercial banks about their needs for digital assets. Customers would have the option to receive rupees or digital rupees from their bank accounts, he added.

“The gold standard should be the central bank digital currency, and it should be under the control of the SBP,” said Senator Afnanullah Khan.

Bakhtiyar said the central bank digital currency would be regulated under the SBP Act. He said PVARA would not have any regulatory authority for managing the central bank digital currency.

On a proposal by PML-N Senator Anusha Rahman, the committee set the upper age limit of 55 years for appointment as chairperson of PVARA. The candidate must have at least five years’ experience in digital finance and technology. The committee also included one member of the National Assembly and one senator as members of the authority.

To a question, the acting deputy governor said restrictions on banks and dealers to deal in digital currencies would remain in place until the new legal framework is in place.

In the first PVARA meeting, the SBP blocked a move to immediately declare digital currencies legal. It cautioned that allowing transactions without a regulatory framework could create serious challenges.

The SBP’s 2018 instructions also declared dealings in cryptocurrencies illegal and required banks to report such transactions as suspicious to the Financial Monitoring Unit (FMU).

The circular stated that digital currencies such as Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond, or ICO tokens are not legal tender. It said they are neither issued nor guaranteed by the government.

The committee recommended placing PVARA under the administrative control of the finance ministry instead of the Cabinet Division to make it more effective.

Under the proposed law, digital service providers may offer nine services: advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset derivatives, asset management, transfer and settlement, and fiat-referenced token issuance.

The committee deferred further deliberations on the bill until its next meeting.

KARACHI: With a public holiday already declared for Sept 6 in observance of Eid Milad-un-Nabi, the Sindh government on Wednesday announced an additional public holiday for Friday (tomorrow).

The holiday will be observed across the province by all government and private offices, as well as autonomous and semi-autonomous bodies, corporations and local councils operating under the administrative control of the provincial government.

However, the holiday will not apply to officers and officials engaged in flood relief operations, emergency services, and other essential services, who are required to remain on duty.

Published in Dawn, September 4th, 2025

PESHAWAR: All Pakistan Flour Mills Association, Khyber Pakhtunkhwa chapter has flayed the Punjab government over ‘imposition’ of ban on the interprovincial movement of wheat, calling it ‘unconstitutional’, and feared that KP might face flour crisis if the restriction was not lifted forthwith.

Addressing a joint press conference following a meeting here on Wednesday, Sarhad Chamber of Commerce and Industry president Fazal Moqeem Khan and the association’s KP chairman Naeem Butt accused the Punjab government of halting supply of wheat to Khyber Pakhtunkhwa, and described it as sheer violation of Article 151 of the Constitution.

They elaborated that Punjab authorities had erected a special checkpoint, barring wheat-laden vehicles from entering KP, calling it as economic terrorism. They said KP was facing a huge deficit of wheat and was dependent on procurement from open market.

Mr Moqem and Mr Butt said KP was facing a shortfall of 41,000 metric tonnes of wheat as the province’s total production was 12,000 metric tonnes against its demand of 51,000 metric tonnes.

They said a substantial increase in flour prices was witnessed after restrictions on supply of wheat to KP from Punjab were imposed, forcing people to buy flour at high rates. They warned of further increase if the ban was not lifted immediately.

Mr Moqeem and Mr Butt pointed out that wheat sector had been deregulated under an agreement with the IMF, after which wheat and flour were put under an open market mechanism, barring the government from determining prices of wheat and flour and imposing any kind of restrictions on movement of wheat.

They said the Punjab government had defied the constitutional provision and the IMF agreement by banning movement on August 26, opening ways of corruption for police and other authorities. They alleged that Rs150,000 was being charged per truck as bribe at various illegal checkpoints.

They said such decisions had never proved productive in the past, and had always given birth to crisis. They claimed that the move was aimed at creating wheat crisis in the KP province.

Mr Moqeem and Mr Butt said thousands of tonnes of wheat was available with the government in carry-forward stock, but even then such tactics were used in a bid to create artificial shortage, which would not only hit the ordinary citizens but the flour industry as well.

They appealed to the army chief Field Marshal Gen Asim Munir, Prime Minister Shehbaz Sharif, Federal Minister for National Food Security and Research Rana Tanveer Hussain and KP Chief Minister Gandapur to immediately intervene in the matter to avert flour crisis in KP.

They emphasised the need for ensuring free inter-provincial trade and cracking down on ‘extortion mafia’.

They announced that they would decide future course of action if the ban was not lifted immediately.

Published in Dawn, September 4th, 2025

WASHINGTON: The Pakistani American community has launched a campaign to support victims of the 2025 floods, briefing US lawmakers on Capitol Hill on Tuesday about the scale of the disaster and urging international engagement.

The US-based Muslim Charity Helping Hand for Relief and Development (HHRD), largely run by Pakistani Americans, spent the day on Capitol Hill, highlighting the urgent need for food, clean water, medical assistance, and long-term rehabilitation for millions of people affected by the floods.

Pakistan’s Ambassador to the United States, Rizwan Saeed Sheikh, described the floods as “an unprecedented disaster that has set back economic growth, and continues to cause devastation across the country”.

Warning that next year’s monsoon could arrive earlier and bring even greater devastation, he called Pakistan “a frontline state” in the fight against climate change.

“Governments will do what they can, but all should come forward and help. The world must form a collective strategy to deal with recurring disasters,” he said.

Pakistani Americans highlight urgent need for food, clean water, medical aid and rehabilitation for millions hit by floods

The HHRD also announced dedicating an initial $5 million for relief and rehabilitation work and pledged to expand its efforts. The Pakistani community is holding fundraising events across the United States and Canada to supplement the relief efforts.

HHRD officials told lawmakers that the floods have directly affected more than five million people, with over 20 million at risk, underscoring the urgency of global support. Since late June, torrential rains and flash floods have battered Pakistan, especially Khyber Pakhtunkhwa and Gilgit-Baltistan.

The floods have killed 881 people, injured more than 1,100, destroyed 11,000 homes, and damaged 250 bridges and 415 miles of roads. Some 1.2 million hectares have been submerged, including 853,000 hectares of cropland.

A UN report, released on Wednesday, warned that “the situation remains highly fluid, with reservoirs at full capacity and heavy rainfall forecast in early September, cautioning that new surges along the Chenab and other rivers could impact downstream districts in South Punjab”.

HHRD officials said their teams have been providing mobile clinics, water filtration systems, search-and-rescue operations, cooked meals, hygiene kits, mosquito nets, milk, and “Smile Boxes” for children. By early September, their relief teams had reached over 62,000 people across 13 districts, including Lahore, Sialkot, Swat, Neelum Valley, and Gilgit-Baltistan.

Officials emphasised that this initial $5m is a starting point and that the organisation intends to expand its reach in the coming weeks and months.

Ambassador Sheikh also highlighted the proactive spirit of Pakistanis, noting that citizens often take initiative in disaster response without waiting for government intervention.

Published in Dawn, September 4th, 2025

AS PUNJAB continues to use breaches to divert water from its overflowing rivers, Sindh may not be able to emulate this strategy due to its unique topography, with the minister concerned categorically ruling out this option.

Over the past week, authorities in Punjab have destroyed several embankments to save major cities from being inundated. Naturally, the Sindh government has been facing queries about whether a similar strategy will be deployed in the province.

The swollen eastern rivers of Ravi, Chenab, and Sutlej merge into the Indus River at Panjnad before entering Sindh, and the province faces a similar situation to the one it faced in September 2014.

The Indus River has already passed a medium and high flood through the Guddu and Sukkur barrages in July and August of this season.

Minister says Punjab’s strategy can’t be emulated downstream due to province’s peculiar topography

How much water will pass through Guddu now remains a guessing game, considering flow patterns at the barrage. The Trimmu barrage passed a peak of 550,965 cusecs on Sept 1, but the flows have yet to reach Guddu.

Officials remain unsure whether floodwaters from the Chenab would precede combined flows from the Ravi and Sutlej, which would accumulate at Panjnad before heading to Guddu.

With a discharge capacity of 865,000 cusecs against Trimmu’s 875,000, Panjnad is the second last destination before the tributaries merge into the mighty Indus.

Sindh Irrigation Minister Jam Khan Shoro, who is stationed at the Sukkur Barrage to monitor floods, told Dawn that breaches were not an option.

“There is no option of breach in our minds,” he said, adding that Sindh’s topography tells a different story when it comes to such decisions.

“Gradient in Sindh’s lands is lower than the Indus River,” he argued, while asking people not to worry about any possible breaches. “I tell those putting this query that we can’t breach a dyke. It’s not an option,” he assured.

Peculiar gradient

Explaining this phenomenon, Tando Jam Sindh Agriculture University (SAU) Vice Chancellor Prof Dr Altaf Siyal said there were variables in the soil gradient in Punjab and Sindh and breaching a dyke was a different story for each province.

“A breach can be made on either side of the Indus. If it occurs on the right bank, the water will head westward because those pockets have large depressions. In case of a breach on the left bank, it will impact the Nara canal of Sukkur Barrage first before heading downstream,” Dr Siyal said.

A breach around Khairpur Mirs and Naushahro Feroze would send water to the river from the Qazi Ahmed side on the left bank of the Indus.

According to him, any breach on the right bank upstream of Sukkur will send water down to Manchhar Lake via the Right Bank Outfall Drain (RBOD)/Main Nara Valley Drain (MNVD).

“Manchhar Lake then allows the authorities to redirect water to the Indus if the river flows remain on the lower side,” he said, alluding to the 2010 super floods.

In 2010, a massive breach 60km downstream of Guddu displaced millions after the Tori Bund developed a fissure, affecting seven districts on the right bank. The water eventually ended up in the lake.

In 2022, heavy rainfall in the Kirthar Range inundated parts of the right bank districts, including Qambar-Shahdadkot, Larkana, Dadu, and Jamshoro. These flows entered the Indus after Manchhar had to be breached the same month at two locations.

A high-powered judicial commission was formed to probe the causes of the 2010 flood breaches at Tori and Molchand-Surjani at Kot Almo in Thatta, downstream of Kotri Barrage, on Aug 27, 2010.

The report mentioned that around 1.47MAF water was released from Tori and 70pc of the 150km on Begari Sindh Feeder, an off-taking channel of Guddu Barrage on its right side was destroyed.

The chief engineer of the Guddu barrage and his team, along with the irrigation secretary, were held responsible for negligence.

Discharges in Punjab

Mr Jam and Irrigation Secretary Zarif Khero also shared information about discharges recorded in Punjab, especially at Trimmu, Panjnad, Head Sidhnai over Ravi (with 157,580 cusecs discharge at 4pm Wednesday) and Sulemanki over Sutlej (122,736 cusecs). Chenab, in fact, passed a peak of 1,077,951 cusecs in the last week of August, which Sindh is now waiting for.

“Let’s see which peak reaches Guddu first. My hunch is that the time lag between barrages has increased,” he said.

Sutlej and Ravi are passing their peaks, too, and the water will head for Guddu while Indus water from Taunsa will also reach the first barrage in Sindh, adding to these discharges. Panjnad’s downstream flow was 217,447 cusecs at 6pm on Wednesday. These are the flows released from the Tarbela Dam built on the Indus.

Even the National Disaster Management Authority (NDMA) mentioned that 1.3m cusecs of water would reach Guddu Barrage, which has a capacity of 1.2m cusecs.

The irrigation secretary said that losses between the two reaches of the barrages needed to be factored in as well.

He also drew a parallel between this year and 2014’s Chenab flows. “A discharge of 947,000 cusecs downstream Khanki [over Chenab] on Sept 7 eventually turned out to be a flow of 453,570 cusecs at Panjnad on Sept 16 and 475,000 cusecs [inclusive of Indus flows] at Guddu on Sept 19.

He, however, assured that the government was prepared to deal with any situation involving a flow of 900,000 cusecs, considered a super flood.

Published in Dawn, September 4th, 2025

The news of creating new provinces by subdividing the existing ones is circulating on the national scene. A similar plan was made in 2020, when a Saraiki province was to be created during Yousuf Raza Gilani’s stint as prime minister. Politicians from southern Punjab demanded the division of Punjab. Even a South Punjab secretariat was made functional and a list of senior bureaucrats appeared in the newspapers. The main question, however, is whether the creation of new provinces will serve the people better or the bureaucrats whose number will likely increase manifold.

The best course of action is to adhere to certain policies that some countries have followed and then progressed meteorically. Singapore is an example to follow. At one stage, it was as underdeveloped as Pakistan, but prime minister Lee Kuan Yew turned it into one of the most modern and developed nations. The salient features of Yew’s policy were promotion of higher education and medical care, professionalism in all national spheres of life, no nepotism whatsoever, and above all rule of law. His government attracted direct foreign investment because of his administrative acumen. As a result of his policies, Singapore transitioned from a developing country to a developed country. The Southeast Asian state has neither as many natural resources, mines and minerals as Pakistan has, nor agricultural facilities and vast tracts of land.

Singapore was a British colony, which gained full independence in 1965. The progress that both Singapore and Pakistan made after their independence remains poles apart. Had Pakistan been bestowed with a leader like Yew, our fate might have been different.

The serious problem Pakistan faces is not that its political leaders and bureaucrats don’t know what’s lacking in the administrative policies, but that the lopsided policies suit them. The old saying goes that no system is good or bad; it all depends on how it’s followed. What if the country is divided into twelve provinces, and even then, the provincial administrations don’t meet the expectations of the nation?

The country is bedevilled by a huge government. As the plan goes, four provinces in the country would be converted into twelve, will the bureaucracy be multiplied three times? Already, the country maintains a huge bureaucracy, and the public impression is that even if it were halved in size, the people would find no change in the administration’s functioning. Logically, a think-tank must be established to determine the size of the bureaucracy and oversee its functioning.

We follow the administrative system established during the British era. The British were the occupiers of this land; their style of management was different – based on honesty. On the other hand, our bureaucrats, so-called rulers, live in huge houses, drive expensive vehicles and maintain a distance from the public, typical of the rulers and the ruled.

Some argue in favour of more provinces due to the country’s rapidly growing population. But the counterargument suggests that we should control the population explosion in the country, as Bangladesh and other countries in the region have done and progressed. The haphazard population growth in our country is a scourge that the political leaders hesitate to address. They cannot withstand the pressure from the country’s religious sector. Let’s keep in mind that it’s the overpopulation that has prompted the need to create new provinces. It’s also believed that in an ethnically diverse country, the creation of more provinces will create fragmentation and violence between them.

Carving new provinces must be a thoroughly debated project on the public forums. Will the decision rejuvenate the ailing economy and improve the economic conditions of the people? Or will it mainly serve the bureaucracy to increase its size by extensive promotions and the people would hardly witness any change in their daily lives?

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The writer is a freelance columnist based in Lahore. He can be reached at: pinecity@gmail.com

ISLAMABAD:

Deputy Prime Minister and Foreign Minister Senator Ishaq Dar on Wednesday said that following his telephone call with Afghan Foreign Minister Amir Khan Muttaqi, the government of Pakistan dispatched 105 tons of humanitarian relief assistance to Afghanistan.

The consignment includes essential food items, medicines, tents, blankets, and bubble mats, aimed at supporting those affected by the recent earthquakes in the country.

“We extend our deepest condolences and prayers for the victims and wish a speedy recovery to the injured,” DPM/FM Ishaq Dar wrote on his official

X handle.

LAHORE:

Punjab Chief Minister Maryam Nawaz Sharif has directed the district administrations to ascertain the scale of damage caused by recent floods in the province.

According to a statement, she directed the deputy commissioners to conduct surveys in flood-affected areas for the purpose.

She also directed the officials to provide clean drinking water, and carry out fumigation and dry germicidal sprays in flood relief camps and tent cities in the affected areas across Punjab. The regional additional chief secretary was directed to make the best possible arrangements for flood-affected people of South Punjab.

The chief minister directed the official to submit a detailed report with regard to rescue and relief operations.

She emphasised the need to provide shoes, clothes and other essential supplies to flood-affected families, especially women and children living in relief camps.

She said, “People have been forced out of their homes due to the flood emergency situation. We cannot leave them alone.”

The chief minister also pointed out a risk of disease outbreaks once the floodwater recedes, stressing the need for pre-emptive measures.

She ordered the authorities concerned to ensure the provision of mobile healthcare services in remote flood-affected areas.

The chief minister ordered the deployment of teams of gynaecologists, gastroenterologists and skin specialists to visit flood-affected regions.

She announced special allowances for doctors, paramedical and other personnel serving in flood-affected areas.

The chief minister issued directions that tents and living spaces must be provided while keeping in view the flood victims’ needs and convenience.

She ordered recruitment of agriculture interns to support farmers and emphasised that ample fodder and vaccination should be provided for livestock in the flood-affected areas. She also ordered measures to protect animals from diseases.

The chief minister was informed that livestock interns would be assigned responsibility of animal care.

She directed the deputy commissioners to work in close liaison with the relevant departments to ensure swift restoration of electricity, gas and other facilities after floodwater recedes, and stressed the importance of all departments staying on high alert given the flood emergency situation in the province.

She also ordered improvements in overall arrangements in flood relief camps, including cleanliness and sanitation.

The chief minister ordered the deployment of ‘Suthra Punjab’ programme teams in flood relief camps along with dustbins, garbage containers and covered waste bins.

She emphasised that precautions must be made to prevent the outbreak and spread of infectious diseases in flood relief camps. She reiterated the need for anti-mosquito spray in flood relief camps to prevent outbreak of malaria and other infectious diseases.

During a video address, she directed the commissioners and DCs to provide everythig necessary to people living in flood relief camps. She underscored that attention must be paid to sanitation and other issues in the camps.

Chief Minister Maryam Nawaz also directed the administration, rescue and all other relevant departments to remain active for carrying out relief operations in view of the extraordinary flood situation across Punjab. She directed the authorities to ensure the provision of all necessary medicines at health centres in flood-affected areas, besides ensuring availability of medicines to treat diseases arising from stagnant rainwater.

She also ordered provision of sanitary kits to women in relief camps, and underscored that services of Clinics-on-Wheels, Field Hospitals, and Mother and Child Clinics should be provided in flood-affected areas across Punjab at the earliest.

The chief minister ordered improvements in medical relief camps in flood-affected areas. She directed the Provincial Disaster Management Authority (PDMA) to immediately provide tents and other essential items in flood-affected districts as per need, besides making preparations in anticipation of potential flood emergency situations.

She was informed that the largest evacuation and rescue operation in Punjab’s history had been carried out swiftly.

She noted that Punjab is facing a super flood emergency situation, and said timely, effective arrangements have saved thousands of lives. She underscored that due to early evacuation of flood victims to safe places, 250,000 people remained safe.

LAHORE:

An anti-terrorism court (ATC) on Wednesday granted post-arrest bail to Shahrez Khan, nephew of PTI’s founding chairman Imran Khan, in the Jinnah House attack case.

ATC Judge Manzer Ali Gill, after reserving judgment on arguments presented by both sides, announced the decision allowing Shahrez’s bail.

During proceedings, Shahrez’s counsel, Rana Mudassar Umar, argued that the allegation of inciting the public against his client was baseless.

He said a thorough investigation, including geofencing, produced no evidence linking Shahrez to the May 9 incident.

He pointed out that while the police challan contained details of both nominated and unidentified accused, Shahrez’s name did not appear anywhere, suggesting what he called a “forged implication.”

The counsel further contended that Shahrez was arrested more than two years after the riots, describing the arrest as politically motivated.

He submitted affidavits claiming Shahrez was in Chitral from May 6 to 12, 2023, at the time of the violence.

Despite this, he said, police arrested him and even alleged recovery of a club from him after two years, which the defence termed a “mockery.”

He maintained that over 500 accused in the case had already secured bail, yet Shahrez was singled out for arrest. He also noted that Shahrez, an athlete, was being unfairly targeted, which could harm Pakistan’s image abroad.

The prosecution opposed the plea, insisting that evidence existed against the accused and urging the court to reject the bail. However, the court granted Shahrez post-arrest bail.

Meanwhile, the ATC also fixed hearing of the bail petition filed by Shahrez’s brother, Sher Shah, for September 4.

Police officials have been directed to produce the case record at the hearing.

Sher Shah’s counsel argued that his client was also implicated for political reasons. He said the police alleged Sher Shah appeared in a video with his cousin, Barrister Hassan Niazi—convicted earlier by a military court—at the crime scene. However, the defence maintained that mere presence in a video did not establish guilt.

Shahrez was arrested on August 21 and produced before court the next day, while his brother Sher Shah was taken into custody on August 22 and presented before court on August 23.