Category: 1. Pakistan

PESHAWAR   –  The Peshawar High Court (PHC) Wednesday declared the Swat tragedy a result of gross negligence and ordered a comprehensive investigation into the incident. In a written judgment on a petition filed against encroachments on rivers and the Swat incident, the court stated that the tragic event that occurred on June 27 in the Swat River was due to the serious negligence of the concerned authorities. The judgment noted that 17 precious lives were lost due to the failure of officials, and no emergency measures such as helicopters were used to rescue tourists, terming it a clear sign of criminal negligence in public service. The court also pointed out that illegal construction of hotels and buildings along rivers such as the Swat, Panjkora, Dir, Indus, Kabul, and Charsadda has become common, posing a severe threat to human lives. The existence of these unauthorized structures reflects the failure and silent complicity of the relevant institutions. The court directed the investigation committee formed on the Swat tragedy to submit its preliminary findings within 7 days and a detailed report within 14 days. The Advocate General of Khyber Pakhtunkhwa was also instructed to clarify what steps have been taken so far to ensure public safety. This firm action by court is seen as a landmark step towards ensuring accountability and protecting lives in the future.

LAHORE  –  The jail trial of three cases, including the arson attack on Shadman Police Station and torching of police vehicles, during the May 9 riots, continued on Wednesday at Kot Lakhpat Jail under tight security. Administrative Judge of the Anti-Terrorism Court (ATC), Manzer Ali Gill, presided over the proceedings which lasted until 6:30 PM. During the hearing, eight prosecution witnesses recorded their statements against the accused while defence counsel completed cross-examination of five witnesses. The trial proceedings were adjourned until tomorrow for further evidence. Prominent PTI leaders on bail, including Aliya Hamza and Khadija Shah, appeared before the court, while the attendance of detained leaders such as Shah Mahmood Qureshi and Dr. Yasmin Rashid was also marked.

ISLAMABAD: Political uncertainties, security issues, and external shocks continue to threaten Pakistan’s moderate economic recovery, says the Asian Development Bank (ADB).

“Structural and institutional factors, as well as issues such as cumbersome land acquisition procedures, procurement delays, lack of counterpart funds, and currency and price fluctuations, affect project readiness, implementation, and outcomes,” said the bank in its member fact sheet.

Regular tripartite portfolio review meetings among ADB, the government, and executing agencies are helpful in addressing these project-related issues, it added.

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

Continued fiscal consolidation and policy reforms are key to improving Pakistan’s macroeconomic recovery and stability. Particularly important are efforts aimed at broadening the tax base; reforming state-owned enterprises; improving health, education, and climate resilience; and improving private sector engagement. Reforms are required to promote high value exports; expand social spending; reinforce the energy sector’s governance and sustainability; and implement structural reforms that will strengthen institutions, bring transparency, and create jobs, the bank added.

As of 31st December 2024, the ADB has committed 764 public sector loans, grants, and technical assistance totaling $43.4 billion to Pakistan. The ADB’s current sovereign portfolio in Pakistan includes 53 loans and three grants worth $9.13 billion.

The ADB provided financing for several sovereign projects in 2024 involving climate and disaster resilience, energy, post-disaster reconstruction, public–private partnerships, social protection, and transport. The ADB committed a $500 million policy-based loan for the Climate and Disaster Resilience Enhancement Program (Subprogram 1).

The programme will strengthen Pakistan’s institutional capacity for planning, preparedness, and response while increasing inclusive investment in disaster risk reduction and climate resilience. As a part of ADB’s multifaceted commitment to provide $1.5 billion in total assistance from 2023 to 2025 for Pakistan’s 2022 flood recovery efforts, ADB approved a $400 million concessional loan for the Sindh Emergency Housing Reconstruction Project to help rehabilitate flood-damaged houses and community infrastructure and support livelihood recovery.

Total outstanding balances and undisbursed commitments of ADB’s non-sovereign transactions in Pakistan as of 31 December 2024 amounted to $234.94 million, representing 1.82 per cent of ADB’s total private sector portfolio. Cumulative sovereign and non-sovereign loan and grant disbursements to Pakistan amount to $33.44 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.

The forthcoming country partnership strategy for Pakistan covering 2026–2030 will identify key challenges and development requirements, support the government in implementing key structural reforms, and boost economic resilience through a robust pipeline of public–private partnership and private sector development projects. The pipeline will focus on mitigating the impacts of climate change, investing in the social sector, digital transformation and good governance, and developing climate-smart infrastructure.

Copyright Business Recorder, 2025

ISLAMABAD:

State Bank of Pakistan (SBP) Acting Deputy Governor Dr Inayat Hussain cautioned on Wednesday that the government’s decision to curtail subsidies for promoting foreign remittances, which hit a record $38 billion, may reduce the flow through banking channels.

The statement came amid a disagreement between the federal government and the central bank on shouldering subsidies in the new fiscal year 2025-26 under the Pakistan Remittance Initiative (PRI). The finance ministry has not allocated any sum for the scheme while the central bank has also shown its inability to provide funds.

The steps that the government has taken will push remittances back to the informal sector, said Inayat Hussain while speaking during a meeting of the Senate Standing Committee on Finance. Headed by Senator Saleem Mandviwalla, the committee had called the SBP to explain the reasons behind the faster increase in subsidies compared to remittances. In the past few years, the subsidies increased five times compared to a rise of only two times in remittances, said Mandviwalla.

The central bank reported on Wednesday that workers’ remittances rose 26.6% to $38.3 billion in the just ended fiscal year. Pakistan became the fifth largest recipient of foreign remittances in the world.

The Pakistan Peoples Party government launched the PRI in 2009 when the amount remitted by overseas Pakistanis was just $7.8 billion. Remittances are now the single largest source of foreign earnings, which are even $6 billion higher than exports.

However, last month the government substantially reduced the remittance incentives and allocated nothing in the budget for this fiscal year compared to Rs85 billion for the last fiscal year.

Against the Rs85 billion allocation, the central bank billed Rs200 billion to the Ministry of Finance. Of the total cost, around 85%, or Rs170 billion, was under the Telegraphic Transfer (TT) Charges Scheme.

Additional Finance Secretary Amjad Mehmood told the standing committee that the federal cabinet had approved a revision of the scheme following a summary moved by the finance ministry.

The development came amid increasing pressure on the rupee, which further depreciated to Rs284.5 in the inter-bank market. In the open market, the rate was around Rs288 per dollar while in the grey market, the rate crossed Rs290, according to market players. The central bank issued a circular last week about revisions in the remittance scheme, which shows a substantial reduction in benefits for banks and exchange companies.

Inayat Hussain told the committee that the government raised the minimum eligible transaction size to $200 and introduced a flat rebate of 20 Saudi riyal (SAR) per eligible transaction, effective from July 1, 2025. The old rate was from SAR20 to SAR35, which the government has cut by 43%.

The TT Charges Scheme offers a zero-cost and free transfer model to the sender and receiver for eligible remittance transactions. The old model offered SAR20 reimbursement incentive for every transaction worth $100 and above, an additional per-transaction incentive of up to 10% on growth over the previous year and a further per-transaction incentive of SAR7 for growth exceeding 10% over the previous year.

The federal government also decided that a mechanism should be established for gradually phasing out the Remittance Incentive Schemes. In that regard, the SBP would propose and present an evidence-based plan by factoring in the cost-benefit analysis of the existing schemes, Raast integration with Buna and SAMA gateways, and strengthening controls vis-a-vis the transfer of remittances through formal channels. The central bank deputy governor expressed concerns over these changes and any future plan to discontinue the scheme. “The scheme is very critical in bringing remittances from the informal sector to the formal sector,” he emphasised.

The government has also abolished the Exchange Companies Incentive Scheme (ECIS) under which these companies were getting up to Rs4 per dollar subsidy from the government.

People were attributing the increase in remittances to the Financial Action Task Force (FATF)-related measures by foreign governments but the fact is that remittances were so small that these do not fall under the FATF purview, said Hussain.

The deputy governor said that it was wrong to say that only banks were benefiting from the scheme as foreign remitters were also the beneficiaries.

Despite reducing the benefits from July 1, the Ministry of Finance has not allocated any money for the remittance scheme.

ISLAMABAD:

A young man was swept away along with his motorcycle in a seasonal stream in the Koral area of Islamabad on Wednesday as heavy monsoon rains battered parts of the country and raised fears of flash floods.

The youth, identified as Mohsin, disappeared while attempting to cross the overflowing nullah. Rescue efforts were still underway late into the evening as rain-swollen waterways in Rawalpindi and other regions surged.

Meanwhile, the Meteorological Department has forecast thunderstorms accompanied by rain in Islamabad, Punjab, Khyber Pakhtunkhwa, northeastern Balochistan, Kashmir and Gilgit-Baltistan.

Heavy to very heavy rainfall is expected at isolated locations. The department warned of further downpours today (Thursday), which could trigger flooding in local streams and landslides in hilly regions.

As a result, there is a risk of flash flooding in local streams and nullahs in Murree, Galliyat, Mansehra, Kohistan, Abbottabad, Buner, Chitral, Dir, Swat, Shangla, Nowshera, Swabi, Mardan, Islamabad/Rawalpindi, D.G Khan, northeastern Punjab, Kashmir, Gilgit-Baltistan and parts of Balochistan, including Barkhan, Kohlu, Musakhel, Dera Bugti, Naseerabad, Sibi, Loralai, Zhob, Kalat, Khuzdar, Lasbela, Awaran, Panjgur and Turbat.

Landslides triggered by intense rainfall may disrupt traffic in Khyber Pakhtunkhwa, Murree, Galliyat, Kashmir and G-B.

Due to heavy rainfall, low-lying areas in Islamabad/Rawalpindi, Gujranwala, Lahore, Sialkot, Sargodha, Faisalabad, Nowshera and Peshawar may face urban flooding. Citizens are advised to remain cautious.

ISLAMABAD:

The Supreme Court on Wednesday scheduled hearings in former minister Chaudhry Fawad Hussain’s May 9-related cases, after he personally appeared before Chief Justice Yahya Afridi.

Fawad was accompanied by his counsel, Advocate Faisal Chaudhry.

He contended that despite earlier court orders, his case had not yet been scheduled for hearing. Advocate Faisal added that if a larger bench was available, the case should have been placed before it.

The chief justice noted that justice must not be delayed and reiterated that cases should be disposed of within four months.