Pakistan

No choices, no options

Written

3 years ago

Mar 06, 2021 05:14 AM

Tahir Malik

After an American intelligence report stated that Saudi Prince Mohammad Bin Salman was directly involved in the murder of Washington Post columnist and journalist Jamal Khashoggi, the US State Department placed restrictions and travel bans on 76 individuals belonging to the desert kingdom.

Tahir Malik

They were responsible for the murder, the State Department said.

Pakistan, however, immediately rejected the report and stood by its old ally.

Questions are being asked now, whether standing by Saudi Arabia instead of the only super power in the world, was a wise thing to do.

There are no permanent friends nor permanent enemies in the world of International Relations. Permanence is granted only to benefits. In our foreign policy, money, whether in the form of foreign aid or in the form of remittances, constitutes a very important cornerstone. Pakistan’s Achilles heel, if you will.

During the past 7 months, remittances have been rising steadily, now averaging about $2 billion monthly or more. From July last year till January, a record increase of 24.9% saw the amount reach $14.2 billion.

Approximately 60% of this amount is sent from Gulf countries, mainly Saudi Arabia and United Arab Emirates. Between July and December 2020, the country received $4 billion from the former and $3 billion from the later. A combined $1.2 billion came from the other gulf countries. One of the reason for this increase is the preference for banking channels instead of hundi. “Roshan Digital Accounts” have made it easy for the diaspora to send money back home. I am happy that in just six months, over 86000 accounts were opened and $550 million made their way over to our banks.

More than 9 million Pakistanis are settled or working abroad. If just half of them open these accounts, then a sizable amount will start pouring in, providing much needed stability to our foreign reserves.

Perhaps it is now easier for the reader to understand why Pakistan stood by Saudi Arabia. Its not just about the brotherly or friendly relations between two Islamic countries but also the much needed foreign reserves. At no cost whatsoever, will Pakistan spoil its equation with the desert kingdom. Especially not now when it is going through a particularly rough patch. Loans from fleecing international organisations such as IMF and ADB have become a given; we just cannot survive without them.

Just recently, Pakistan revived the IMF program of $6 billion, implementing harsh conditions which were a prerequisite for the loan. Foreign loans have now reached the sum of $113 billion.

Can we afford to oppose Saudi Arabia? Do we have a choice here? No. Not in such a severe financial crunch.

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Tahir Malik

Tahir Malik is a seasoned journalist and analyst at GNN

Business

FPCCI hosts conference to address IPP issues, high electricity costs

Former caretaker Prime Minister Anwaar-ul-Haq Kakar says the problem of IPPs is under discussion in the Senate; the rights of the people have been fighting for the small battles of the people before

Published

5 hours ago

Jul 26, 2024 11:45 PM

Hussnain Bhutta

Lahore: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) “Businessmen Conference” on Independent Power Producers (IPPs) was held at FPCCI Regional Office Lahore on Friday.

Addressing the FPCCI “Businessmen Conference,” Former caretaker Prime Minister Anwaar-ul-Haq Kakar said that the issue of IPPs is 24 million people, including industry. The problem of IPPs is under discussion in the Senate; the rights of the people have been fighting for the small battles of the people before. Astronomy sitting on social media is spreading frustration about the country; the future of the country is bright. IPPs are not scoring points by raising the issue. We will resolve the problem through dialogue.

Former Caretaker Federal Minister for Commerce, Industries, Investment & Interior and FPCCI Economic Policy Business Development Think Tank Chairman Dr Gohar Ejaz said that the negligence of the government agencies of IPPs was being put on the public. A forensic audit of IPPs should be conducted. The whole of Pakistan is saying with a voice that has been affected by the IPPs that we have to find a solution to terminate the deal with IPPs in every case. We never want our country to go into crisis. There will be a policy that Pakistan will move forward. There is electricity, but the problem is the cost of electricity. How will we fight the world for expensive electricity?

Atif Ikram Sheikh, President FPCCI and Patron-in-Chief United Business Group (UBG) and Former Caretaker Provincial Minister for Industries, Commerce and Energy and Patron in Chief United Business Group (UBG) SM Tanveer announced that, on behalf of the entire business, industry, and trade community of Pakistan, FPCCI would plead the case of unbearable capacity charges of IPPs to the apex forums of the Supreme Court of Pakistan and Special Investment Facilitation Council (SIFC)-as the last resort to save the economy and the people of Pakistan.

They stressed that the problem would also be explained and a solution given. The business community has said industries are shutting down due to expensive electricity and excessive markups.

They further said that it is impossible to do business at this electricity rate. Anwaar-ul-Haq Kakarhas has been elected president of the FPCCI Economic Policy Business Development Think Tank. Electricity is so expensive. The electricity bill is unbearable. Due to incorrect contracts, capsat charges have to be paid; electricity prices are the biggest problem in Pakistan right now. Annual Rs 2,000 billion is being removed from the pockets of 24 crore people regarding capacity charges, and 25 % of the industry has been closed. Such IPPs cannot run the country.

Pakistan

Pakistan rejects Indian PM’s belligerent remarks

Pakistan Foreign Office says Indian leaders’ rhetorical statements cannot deflect international attention from India’s heavy-handed approach to suppress the Kashmiri people’s just struggle for realization of their fundamental rights and freedoms

Published

7 hours ago

Jul 26, 2024 10:24 PM

Hussnain Bhutta

Islamabad: Pakistan on Friday rejected Indian Prime Minister’s belligerent remarks made in Drass, Ladakh.

The Foreign Office in a statement said that bravado and jingoism undermine regional peace and are totally counter-productive for resolution of long-standing disputes between Pakistan and India, especially the core dispute of Jammu and Kashmir.

It further said the Indian leaders’ rhetorical statements cannot deflect international attention from India’s heavy-handed approach to suppress the Kashmiri people’s just struggle for realization of their fundamental rights and freedoms, particularly their inalienable right to self-determination.

Instead of maligning others for terrorism, India should reflect on its own campaign of orchestrating targeted assassinations, subversion and terrorism in foreign territories.

Pakistan stands resolute in its intent and ability to safeguard its sovereignty against any aggression, as exemplified by its robust response to India’s reckless incursion in February 2019.

The Foreign Office said while Pakistan is ready to counter India’s aggressive actions, it remains committed to promoting peace and stability in the region.

Business

‘Govt considers more incentives for Chinese investors’

Rana Tanveer Hussain says Special Economic Zones have significant importance for Foreign Direct Investment in the country

Published

7 hours ago

Jul 26, 2024 10:22 PM

Hussnain Bhutta

Islamabad: Minister for Industries and Production Rana Tanveer Hussain has said the government is considering more incentives and concession to attract Chinese investors.

Rana Tanveer Hussain said Special Economic Zones have significant importance for Foreign Direct Investment in the country.

He was addressing a ceremony at Pakistan-China Institute in Islamabad on Friday., he

The Minister said relocation of Chinese industries to Pakistan is an important opportunity for country's development. He assured to provide complete security to Chinese companies in Pakistan.