ISLAMABAD, OCT 02 (DNA) — Pakistan’s Consumer Price Index (CPI) based inflation rate jumped to 31.4% year-on-year, rising from 27.4% in August, data from the Pakistan Bureau of Statistics (PBS) showed on Monday, amid skyrocketing energy costs.

Inflation rose for the first time in four months after the government raised fuel prices to meet the International Monetary Fund’s (IMF) conditions for an ongoing $3 billion bailout programme.

The country is embarking on a tricky path to economic recovery under a caretaker government after a $3 billion loan programme approved by the IMF in July averted a sovereign debt default, but with conditions that complicated efforts to rein in inflation.

On a month-on-month basis, inflation climbed 2% for September, compared to an increase of 1.7% in August. Inflation during the first quarter of the current fiscal year averaged 29%. Quarterly average inflation for 1QFY24 hit 29.04% compared to 25.11% in 1QFY23.

Pakistan’s inflation surges to 31.4% as energy costs skyrocket

According to PBS, the CPI inflation in Urban increased to 29.7% on a year-on-year basis in September 2023 as compared to an increase of 25.0% in the previous month and 21.2% in September 2022. On a month-on-month basis, it increased to 1.7% in September 2023 as compared to an increase of 1.6% in the previous month and a decrease of 2.1% in September 2022.

CPI inflation in rural increased to 33.9% on a year-on-year basis in September 2023 compared to an increase of 30.9% in the previous month and 26.1% in September 2022. On a month-on-month basis, it increased to 2.5% in September 2023 as compared to an increase of 1.9% in the previous month and an increase of 0.2% in September 2022. — DNA

Says caretakers, ECP, PDM partners hell-bent violating constitution

ISLAMABAD: /DNA/ – Pakistan Tehreek-e-Insaf (PTI) Core Committee urged that the Chief Justice of Pakistan (CJP) should immediately intervene to safeguard the sanctity and respect of the Constitution, as the caretaker government, ECP and some political parties, which were part of the previous PDM coalition government, were hell-bent on depriving people of right to vote for an indefinite period.

PTI Core Committee discussed important issues including prevailing political situation in the country, courts’ proceedings of the cases against the Chairman PTI Imran Khan and the organizational strategy threadbare.

During the meeting, the party leadership requested the CJP to take special measures to protect the sanctity of the Constitution as holding elections within 90 days limit was a mandatory constitutional requirement in the case of premature dissolution of the National Assembly.

PTI Core Committee underlined that the entire state structure was bound to uphold the sanctity of the Constitution and implement it in its true letter and spirit.

The participants of the meeting pointed out that the caretaker government and the electoral watchdog had only 36 days to hold the forthcoming general elections; however, the caretaker government, electoral body and some political parties part of the previous PDM government were engaged in conspiracies to violate the sanctity of the constitution and usurp the right of the people of suffrage for an indefinite period.

The forum was of the view that according to the Constitution, the Supreme Court was responsible for maintaining and safeguarding the sanctity and respect of the Constitution.

The PTI core committee underlined that the CJP should take immediate notice of the sensitivity of the situation and make the state and government bodies bound by the constitution to conduct the free, fair and impartial general elections within the constitutionally mandated timeframe of 90 days.

–Economy can no longer support costs of bad decisions

–COAS support for better economic direction is appreciated

ISLAMABAD, OCT 02 (DNA) — Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Monday that important economic decisions have remained subject to political interests for the past several decades.

Politically motivated economic choices have put the country’s economy at stake, and now the economy is no longer able to bear the burden of wrong decisions, he said. Mian Zahid Hussain said that the recent decision to reduce the price of petrol is correct, but further reduction is needed.

Talking to the business community, the veteran business leader said that even the most important decisions in the country have always been made under political pressure due to which now the entire nation is suffering.

Recruitments in the important national institutions were done under political interests, as a result of which 80 institutions, including PIA, Steel Mills, WAPDA, Railways, and others, are losing rupees one trillion annually, for which taxpayers are punished, he added.

The business leader said that lack of governance has put the country’s survival at stake and the majority of the people have become despondent about poverty and a better future.

Apart from developed nations and countries in the region, the African countries also do not allow political interference in economic decisions, but this has never been done in Pakistan, which has made a prosperous country a beggar, he observed.

Dozens of countries have made great progress by entrusting economic matters to experts instead of politicians, but unfortunately, this has never happened in Pakistan, he said.

He added that systems have been developed in developed countries to protect experts who make important economic decisions from political pressure, which is needed more than ever before in Pakistan.

Mian Zahid Hussain said that we should stop making decisions on a political basis in important sectors like health, education, and revenue so that instead of producing labourers, we can produce experts in different fields and stop tax evasion of four thousand billion rupees annually.

By giving priority to politics in every sector, the country has become bankrupt, and interest payments on debts have exceeded revenue receipts. Even the most important expenses are being met by taking out loans. In these circumstances, the Chief of Army Staff has decided to help the government save the country and put the economy back on track, which is being fully supported across the country.

Along with anti-terrorism operations, the Army is also working hard against corruption, smuggling, profiteering, hoarding, and speculation. It has discouraged wrongdoers, due to which the value of the rupee is improving and inflation is coming down.

The establishment of SIFC also has good prospects, and foreign investment of 100 billion dollars is expected. If the government and the army chief succeed in their intentions and save the country from disaster by correcting its economic direction, then the services of the army chief will be remembered for a long time as the benefactor of the country, he observed.

People are looking at him as their last hope, and the business community also has high expectations of him. — DNA

ISLAMABAD, OCT 02 (DNA) — Caretaker government will announce to hike gas price on the demand of the International Monetary Fund (IMF). Former PDM government had deferred the decision of the gas price hike.

The International Monetary Fund (IMF) has demanded to enhance the gas prices in the country by 45 percent. The IMF has demanded to generate 435 billion rupees revenue with increase in gas rates, sources said.

The lender has not been prepared to show flexibility in its demand for hike in the gas tariff, sources said. Sources shared that the government has prepared a strategy to save small consumers of gas from the rate hike by avoiding increase for them.

“Caretaker government will save 64 percent gas consumers from the price hike,” according to sources. The government is expected to announce 45 pct hike in gas rate with an official notification soon, sources said.

The gas tariff hike will come into force from back date of July 1st, sources said. “The gas consumers will clear their arrears from July to September bills. The gas tariff hike will also be enforced over domestic consumers having increased gas consumption”, sources said.

According to sources, commercial consumers, bread-makers and hotels will likely to consume gas at enhanced rate. The gas rates will likely to be enhanced for industrial consumers, CNG stations, fertilizer factories and steel industry.

The IMF has demanded an increase in gas tariff from 45 to 50 percent on account of ‘Fuel Adjustment Charges’ from July 01 while emphasizing a crackdown on electricity and gas theft to improve recovery. — DNA

ISLAMABAD, OCT 2 /DNA/ – Amir Jamaat-e-Islami Siraj-ul-Haq expressed his determination that if the people voted him to power, he would make Pakistan green, clean and prosperous without usury.He said that usurious economy is the biggest problem of Pakistan and if he gets power, his first attack will be against the usurious system because the main mission of his party is to make Pakistan’s economy free from usury. He said that due to usurious system, Pakistan has to give 7.3 trillion rupees in loan and interest payments, so unless the economy of Pakistan is freed from interest, our country cannot develop. He said that in 2008 each of our people owed 500 rupees and today every person of our nation owes 300,000 rupees and all this is due to usury system.

He said that Jamaat-e-Islami has eleven hundred PhD experts who are working on the planning of various sectors of the economy. He said that only 22% of the total area of Pakistan is under cultivation.If his party gets power, agriculturally educated youths will be contracted and leased land for cultivation so that more area can be brought under cultivation. He said that the state is responsible for providing education to every citizen. Providing better health and education facilities to the people will be their main priority.He said that small industries will be encouraged in rural areas so that people get employment in rural areas and they do not have to go to cities.

He said that his party will present a fifty-year economic plan and make it a part of the school curriculum so that the economic policies do not change with the change of government. He said that chambers of commerce have an important role in policy making and the government should formulate economic policies in consultation with them. He said that the business community has a key role in strengthening the economy of Pakistan. He demanded that free electricity supply should be terminated immediately. Mismanagement, bad governance and corruption are the main problems of Pakistan and if his party gets power, all these problems will be eradicated.

President  Islamabad Chamber of Commerce and Industry Ahsan Zafar Bakhtawari said in his address that seats should be reserved for the business community in parliament and provincial assemblies.So that economic policies can be formulated in consultation with the business community which will strengthen the economy.He said that technocrats should be brought in the Senate to play the role of a think tank and provide better support to the government in policy making.Pakistan’s economy is currently going through a difficult period, it is necessary for the government to present a ten-year economic plan for the recovery of the economy.

He said that the Amir of Jamaat-e-Islami, Sirajul Haq, should play his role in getting all political parties to agree on an economic pact so that long-term economic policies can be formed.And despite the change of government, the continuity continues because the business class and investors have to face a lot of problems due to the lack of continuity in the policies.He suggested that a national government should be formed in order to get the economy out of the current problems in which all parties are represented and that a ten-year plan should be made for the recovery of the economy.

He said that in 2022, Pakistan’s trade deficit was about 49 billion dollars because our exports were about 31 billion dollars and our income was more than 80 billion dollars, so the need is that the government should encourage the development of alternative sources of income. He said that more than 2 crore children are out of school at the moment. Jamaat-e-Islami Al-Khidmat Foundation should try to bring them to schools. He paid tribute to the services of Al-Khidmat Foundation in helping victims in other countries including Pakistan and Turkey.The Chamber’s Senior Vice President Faad Waheed, Vice President Engineer Azharul Islam Zafar, Zafar Bakhtavari, Mian Akram Farid, Muhammad Ejaz Abbasi, Ajmal Baloch and others were also present on the occasion.

Caretaker Interior Minister Sarfraz Bugti said Monday that any personnel of security forces found involved in cross-border smuggling would be court-martialed.

Pakistan has intensified its crackdown on smugglers involved in transporting commodities and dollars to Afghanistan, especially in the last few months when havoc was wreaked on the economy.

The crackdown bore fruit as speculation diminished and the rupee recovered sharply against the greenback to become the best-performing currency globally, but analysts fear another round of depreciation as they are skeptical about the long-term effects of administrative measures.

“If I say that security forces weren’t involved in [smuggling], it won’t be right as the [smuggled] items are transported via trucks, not camels,” Bugti said during a press conference in Islamabad.

He mentioned that Chief of Army Staff (COAS) General Asim Munir had told military personnel that whoever is found involved in illegal cross-border trade would face the music.

“Pakistan’s army chief had told his people very clearly: there won’t only be court-martials, but those involved in such activities would also be sent to jail,” the interior minister mentioned.

Bugti told reporters that the army’s accountability mechanism is not made public and that’s why it is not in the knowledge of the masses.

“But the army has its own accountability [system]; and we have not just seen it in this instance, but post May 9 as well,” the interim interior minister noted.

‘Iron fists’

The minister mentioned that the government was taking action against smugglers and that they were also appreciating law enforcers for their part in the crackdown on the people involved in illegal activities.

“The state will deal with hawala, hundi, and other illegal activities with iron fists,” he said.

He said the authorities had recovered 8,000 metric tonnes of sugar, and action was also being taken against petrol pump stations for selling sub-standard fuel.

The minister said a database was being made of the trucks being used in smuggling.

Bugti said the government strongly discourages the usage of hawal and hundi. He mentioned that 168 FIRs have been registered against people involved in the dollar’s illegal trade.

‘Nawaz’s return to politics encouraging’

The minister, in the same presser, mentioned that if Pakistan Muslim League-Nawaz (PML-N) supremo Nawaz Sharif plans to return to the country and partake in politics, it would be “encouraging”.

“I am still saying, despite what PML-N leaders have said about me, that Nawaz Sharif is the leader who came back to the country with his daughter; if he was afraid of going to jail, he would not have come back.”

The interim interior minister claimed that the government has to treat every Pakistani citizen in line with the law and the same would be done with Nawaz, a three-time prime minister.

Bugti had invited strong criticism from the top PML-N leadership when he said that if Nawaz was not granted bail, then the authorities would arrest the former PM from the airport.

After hard-hitting statements from the PML-N leaders, the minister said his “statement was given a political colour out of context. The caretaker government has no political agenda”.