Showing posts with label Imran Khan. Show all posts
Showing posts with label Imran Khan. Show all posts

Friday, February 16, 2024

Pakistan Elections: Imran Khan's Supporters Skillfully Used Tech to Defy Powerful Military

Independent candidates backed by the Pakistan Tehreek e Insaf (PTI) party emerged as the largest single block with 93 seats in the nation's parliament in the general elections held on February 8, 2024.  This feat was accomplished in spite of huge obstacles thrown in front of the PTI's top leader Imran Khan and his party leaders and supporters by Pakistan's powerful military to prevent their victory. 

Pakistan's Official Election Results 2024. Source: Aljazeera 

Imran Khan and his top party leaders were thrown in jail on trumped up charges, his party was denied a unified electoral symbol of cricket bat, his supporters' rallies were banned, the mainstream media were prevented from carrying PTI leaders' speeches and the Internet was repeatedly blocked when the party held online events. So how did they succeed in spite of it? The answer lies in how skillfully the PTI activists used technology to get the party's messages out to the country's young electorate. 

Well over 90% of Pakistan's adults have access to the Internet. This allows them to use a variety of  apps ranging from TikTok and YouTube to Facebook, Instagram and X. The PTI supporters used AI (Artificial Intelligence) to produce Imran Khan's speeches using his own voice and words and made them go viral. They used X Spaces to engage with the public. Here's how Uzair Younus, a Pakistani-American analyst at The Atlantic Council, a Washington-based Think Tank, describes what occurred:

"The result of PTI’s technological campaign strategy was a more engaged and informed electorate, which translated into significant electoral gains. Khan’s PTI managed to galvanize a significant part of the electorate, and the party’s success demonstrates the potential of digital tools to democratize political participation and challenge entrenched power structures". 

When it became clear that the PTI was headed for a massive victory with more than half of the 264 National Assembly seats as live results from the polling started to pour in on the evening of February 8, there was a sudden mysterious delay in real time reporting. Most political analysts in Pakistan believe that this delay was ordered by the Pakistani military to rig the results.  This belief is confirmed by the reports that the total votes reported cast for PTI  by the polling stations on "Form 45" add up to a lot more votes than those reported cast on "Form 47" for over 55 constituencies of the National Assembly. These 55 seats plus the officially reported 93 seats add up to 148 seats giving PTI more than half of the total 264 directly elected members in the National Assembly. 

Any coalition government formed by the PTI opponents is unlikely to be stable or long lasting. This unstable situation will likely prolong the deep economic crisis the country now faces. The best course of action for the Pakistani military is to release Imran Khan from jail and allow his party to form the next government. 

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Monday, August 21, 2023

Pakistan's Political Crisis: Did Washington Cause "Regime Change" in Islamabad?

Did the U.S. make it clear to Pakistan in 2022 that Imran Khan was not acceptable as the prime minister of the South Asian country? Did the Pakistani military then use the Opposition parties led by Nawaz Sharif and Asif Ali Zardari to remove Imran Khan from power through a successful No-Confidence vote in the parliament? The answer to both of these questions appears to be a resounding "yes" based on the leaked contents of a secret diplomatic cable, the actions of the Opposition politicians and the attempts to dismantle the Pakistan Tehreek-e-Insaf (PTI) and the jailing of Imran Khan on trumped-up charges. These events have created significant political instability in the country and prompted former US National Security Advisor John Bolton to urge the Biden administration to take a clear position before the “terrorists, China and Russia take advantage” of the situation.

Former Prime Minister Imran Khan (L) and General Asim Munir

Diplomatic Cable:

A leaked diplomatic cable from Pakistani Ambassador Asad Majeed Khan quotes Donald Lu, Assistant Secretary of State for South Asia in the Biden Administration, as saying,  “I think if the no-confidence vote against the Prime Minister succeeds, all will be forgiven in Washington because the Russia visit is being looked at as a decision by the Prime Minister. Otherwise, I think it will be tough going ahead.”

In answer to a question at a recent press conference, the US State Department spokesman Mathew Miller has essentially confirmed the contents of the diplomatic cable. 

This appears to have been enough for the then Pakistan Army Chief General Bajwa to orchestrate the passage of the No-Confidence Motion against Prime Minister Imran Khan with the help of Nawaz Sharif, Asif Ali Zardari and other politicians who ganged up on Imran Khan. 

PTI Dismantled, Imran Khan Jailed:

The Pakistani military did not just content itself with removing Imran Khan from power. A campaign to dismantle Khan's political party, the largest party in the country that ruled the country and two of its four provinces, is in full swing. A Gallup poll in February this year reported that 61% of voters approved of Imran Khan. His support is the strongest among young people who make up the bulk of the population. 

The jailing of Imran Khan and mass arrests of his party members are sending a clear signal that Pakistan's most popular leader, based on recent polls, is no longer acceptable to the military. The US government has remained silent in the middle of this mass crackdown in Pakistan. Washington appears to be unconcerned about civil liberties and democracy in Pakistan. 

US Interests in South Asia:

Are the US interests in South Asia best served by destabilizing strategically-located nuclear-armed Pakistan? Polls indicate that Imran Khan remains the most popular politician in Pakistan. The removal of his government from power and the dismantling of his party are increasingly turning ordinary Pakistanis against the United States. 

In an interview with Voice of America (VOA) Urdu service this week, former National Security Advisor John Bolton said he “worries about” the Biden administration’s foreign policy about South Asia because “it’s not clearly defined”.  

Replying to another question asked by VOA, Mr Bolton said Biden administration officials “don’t know what their strategic imperatives are. And it’s been confused and inarticulate on the situation in Pakistan”.

Here's a video clip of US State Department Mathew Miller's Press Conference:

https://youtu.be/g6vvj2zveOQ

 


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Friday, May 12, 2023

Pakistan Now: Darkest Before Dawn?

Pakistan is experiencing one of the darkest periods of its history. Political instability is eroding confidence in the nation's future. Declining economic growth and high inflation are hurting the people of all strata of society, particularly the poor whose numbers are rapidly rising. Is there any hope left for the country? Is it a case of the "darkest before dawn"? How do investors see it? 

Ex PM Imran Khan (R) with President Erdogan

Writing in the Time magazine immediately after the recent arrest of former Prime Minister Imran Khan, American investor, author and commentator Zachary Karabell who has invested in Pakistani startups sees rare hope for Pakistan. He sees Pakistan where Turkey was back in 2001-2003, "when a series of elections brought Recep Erdogan to power even as he was repeatedly disqualified by a military that was determined to retain control". Here's an excerpt of his article titled "The Contrarian Case for Pakistan" published in the current issue of Time Magazine: 

"To some degree, this is an argument of “well, it’s not as bad as they say.” But it’s also a way of highlighting that Pakistan today may be a case of darkest before the dawn. With elections schedule for the fall, and with Imran Khan the most likely victor of said elections unless is his arrest leads to his disqualification as a candidate, Pakistan is in a very similar position to where Turkey was in 2001-2003, when a series of elections brought Recep Erdogan to power even as he was repeatedly disqualified by a military that was determined to retain control. Imran Khan has many of the same strengths and weaknesses of Erdogan, who after championing Turkish democracy and economic reform, then turned into the very type of corrupt autocrat that he had once fought against. But he nonetheless unleashed massive economic potential in Turkey and has left its 80 million people materially better off over the past 20 years, even as hyperinflation and Erdogan’s recent economic ineptitude is now eroding that. Should Imran Khan return to the head the government, he may well usher in a similar period in Pakistan, even as he has his own authoritarian and demagogic tendencies". 

Here are some of the key points Karabell makes in his opinion piece:

1. Pakistan has a real and dynamic private sphere that is not only seeing a start-up and new business ecosystem that has attracted hundreds of millions of dollars a year for the past few years but operates freely in a way that would be inconceivable in many other countries. Compare it to Egypt, for example, which receives far less negative attention and more foreign money yet is almost entirely dominated by a military dictatorship. Or Algeria. And then there are countries which barely function at all, dominating a whole swath of Sub-Saharan Africa but also dot central Asia (Tajikistan anyone?).

2. Pakistan is the fifth most populous country in the world with 230 million souls, a median age of barely 22 and two-thirds of the population under the age of 30. That means unlike most of the world, it has a favorable demographic future.

2. Unlike, say, Nigeria, where the ethnic divisions and decades of corruption mean that it well-nigh impossible to treat the country as one unified market for goods and services, Pakistan is one common market even with its various tribal divisions.

Pakistan Population Youngest Among Major Asian Nations. Source: Nikkei Asia

Karabell concludes with the following: 

Pakistan is on a cusp. We should honor the fact that whichever way the consensus believes it will go, the country is also poised to breakout on the upside. Which path will only be clear in retrospect, but we should pay more attention to the potential of things going right along with the legitimate focus on all that is going wrong.

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Saturday, November 5, 2022

Attempt on Imran Khan's Life: Has Pakistan Army Lost Popular Support?

Multiple polls over the years have found that the Pakistani military has traditionally enjoyed widespread popular support in the country. This support has been particularly strong among the urban middle class Pakistanis who have now become the backbone of Imran Khan's Pakistan Tehreek-e-Insaf (PTI) party which has accused the Pakistani military of orchestrating an assassination attempt against the former Prime Minister. The events of the last several months, particularly this week's assassination attempt on the PTI chief's life, are forcing the people to choose sides. By-election results and huge attendance of the PTI rallies confirm that most of the people are supporting Imran Khan over the military.  

Pakistan's Ex PM Imran Khan and Current Army Chief General Bajwa

Some Pakistani political analysts have long speculated about the possibility of the loss of public support for the Pakistani military.  Back in 2019, I met Sohail Warraich, a senior journalist and political analyst as well as a popular host of "Ek Din Geo K Sath" aired on Geo TV channel. Warraich was visiting Silicon Valley to record an episode of "Ek Din Geo K Sath" with a successful Pakistani entrepreneur named Osman Rashid.  Warraich said he believes the rise of Imran Khan and Pakistan Tehreek e Insaf (PTI) were enabled by the support of the military and the middle class. Middle class support for the military will eventually fade and there will eventually be conflict between the two. It could lead to significant political changes in the country. 

Osman Rashid invited me and a few other Pakistani-American friends to meet Warraich over dinner at his Los Altos home.  In response to my question about about the current state of affairs in Pakistan, Warraich shared his insights below:

1. Pakistan's middle class is rising and increasingly asserting itself in politics.

2. The Pakistani military is the most dominant force in the country. It enjoys broad support among the middle class Pakistanis.

3. The rise of Imran Khan and Pakistan Tehreek e Insaf (PTI) have been enabled by the support of the military and the middle class.

4. Middle class support for the military will eventually fade and there will be conflict between the two. It could lead to significant political changes in the country. 

Will there be yet another Martial Law in the country? Past Martial Laws in Pakistan have had the support of the people. A Gallup poll conducted immediately after the 1999 coup showed that 75% of respondents supported the military takeover, while less than 10% supported restoring Mr. Nawaz Sharif's government. The situation today is very different.  It is more likely today that the Pakistani military will back down and concede to Imran Khan's demand for fresh elections. 

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Tuesday, August 2, 2022

Pakistan: The Next Electronics Manufacturing Hub?

Soaring demand for consumer electronics and low labor costs are attracting major global smartphone manufacturers like Samsung to Pakistan. In 2021, local manufacturers produced 25 million handsets, up a whopping 88% increase from 13 million produced in 2020. A key factor credited for this rapid production ramp-up is the new Mobile Device Manufacturing Policy announced and implemented by former Prime Minister Imran Khan's government in 2020. It imposes high tariffs on the import of mobile phone sets and offers tax rebates for local manufacturing. The policy set a 49% localization target by June 2023, including 10% localization of components on the motherboard and 10% localization of batteries.  Pakistan is forecast to be the world's 7th largest consumer market by 2030. The key to attracting more manufacturing in Pakistan lies in continuation of pro-investment policies and a measure of political stability. 

Pakistan Going From Imports to Exports of Mobile Handsets. Source: PIDE

The local manufacturing plants have assembled 14.08 million mobile phone handsets in the first six months (January-June) of 2022, while imports declined to 1.14 million handsets, according to the Pakistan Telecommunication Authority (PTA). Implementation of Device Identification Registration and Blocking System (DIRBS) and conducive government policies including the Mobile Device Manufacturing Policy 2020 have created a favorable environment for mobile device manufacturing in Pakistan.

Pakistan Mobile Phone Market. Source: PIDE

In addition to Samsung, a number of Chinese mobile handset manufacturers are investing in Pakistan to ramp up local production. Itel has manufactured 3.91 million mobile devices followed by VGO Tel's 2.97 million, Infinix 2.65 million, Vivo 2.45 million, Techno 1.87 million, QQMEE 0.86 million and Oppo 0.67 million. After the export of the first lot of 4G smartphones to the UAE in 2022, Pakistan has now set $1 billion target for mobile phone exports for the current fiscal year. 

Pakistan Telecom Indicators. Source: PTA

Pakistan wants to emulate Vietnam which has emerged as one of the leading countries in the assembly and export of smartphones and other consumer electronics devices in the past decade. Apple has recently moved part of its iPad manufacturing to Vietnam from China, where Covid lockdowns have disrupted supply chains.  TRT World has recently quoted Quentin D’Silva, the head of Lucky's smartphone division in Pakistan, as saying, “It’s only in the last five to seven years that the smartphone business has mushroomed in developing countries like ours". 



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Tuesday, June 28, 2022

Pakistan's Fiscal Year 2022 GDP Reaches $1.62 Trillion in Purchasing Power Parity (PPP) Terms

Economic Survey of Pakistan 2021-22 confirms that the nation's GDP grew nearly 6% in the current fiscal year, reaching $1.62 Trillion in terms of purchasing power parity (PPP). It first crossed the trillion dollar mark in 2017. In nominal US$ terms, the size of Pakistan's economy is now $383 billion. In terms of the impact of economic growth on average Pakistanis, the per capita average daily calorie intake jumped to 2,735 calories in FY 2021-22 from 2,457 calories in 2019-20. Pakistan experienced broad-based economic growth across all key sectors in FY 21-22; manufacturing posted 9.8% growth, services 6.2% and agriculture 4.4%. The 4.4% growth in agriculture is particularly welcome; it helps reduce rural poverty.  The country's per capita income is $1,798 in nominal terms and $7,551 in PPP dollars.  These figures do not yet show up in Google searches. Under former Prime Minister Imran Khan's leadership, Pakistan succeeded in achieving outstanding economic growth and nutritional improvements in spite of surging global food prices amid the Covid19 pandemic.  Increasing energy consumption and soaring global energy prices have rapidly depleted Pakistan's forex reserves, forcing the country to seek yet another IMF bailout.  History tells us that these bailouts have been forced whenever Pakistan's GDP growth has exceeded 5%. The best way for Pakistan to accelerate its growth beyond 5% in a sustainable manner is to boost its exports by investing in export-oriented industries, and by incentivizing higher savings and investments. 

Pakistan Economic Data. Source: IMF April 2022


The IMF (International Monetary Fund) has updated its website in April, 2022 with data reported for FY 2020-21. It's not unusual for the IMF data reporting to lag by a year or more. Pakistan's Economic Survey 2021-22 was published in June, 2022. 

Sector-wise Economic Growth. Source: Economic Survey of Pakistan 2021-22


Pakistan experienced broad-based economic growth across all key sectors in FY 21-22; manufacturing posted 9.8% growth, services 6.2% and agriculture 4.4%. The 4.4% growth in agriculture is particularly welcome; it helps reduce rural poverty. 

In terms of the impact of economic growth on average Pakistanis, the per capita average daily calorie intake jumped to 2,735 calories in FY 2021-22 from 2,457 calories in 2019-20. The biggest contributor to it is the per capita consumption of fresh fruits and vegetables which soared from 53.6 Kg to 68.3 Kg, less than half of the 144 Kg (400 grams/day) recommended by the World Health Organization. Healthy food helps cut disease burdens and reduces demand on the healthcare system. Under former Prime Minister Imran Khan's leadership, Pakistan succeeded in achieving these nutritional improvements in spite of surging global food prices amid the Covid19 pandemic. 

Pakistan Per Capita Daily Calorie Consumption. Source: Economic Surveys of Pakistan


The trend of higher per capita daily calorie consumption has continued since the 1950s. It has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2735 in 2021-22. The per capita per day protein intake in grams increased from 63 to 67 to about 75 during these years. Health experts recommend that women consume at least 1,200 calories a day, and men consume at least 1,500 calories a day, says Harvard Health Publishing.  The global average has increased from 2360 kcal/person/day in the mid-1960s to 2900 kcal/person/day currently, according to the Food and Agricultural Organization (FAO). The USDA (United States Department of Agriculture) estimates that most women need 1,600 to 2,400 calories, while the majority of men need 2,000 to 3,000 calories each day to maintain a healthy weight. Global Hunger Index defines food deprivation, or undernourishment, as consumption of fewer than 1,800 calories per day.

Share of Overweight or Obese Adults. Source: Our World in Data


The share of overweight or obese adults in Pakistan's population is estimated by the World Health Organization at 28.4%. It is 20% in Bangladesh, 19.7% in India, 32.3% in China, 61.6% in Iran and 68% in the United States.   

Major Food Items Consumed in Pakistan. Source: Economic Survey of Pakistan 2021-22

The latest edition of the Economic Survey of Pakistan estimates that per capita calories come from the annual per capita consumption of  164.7 Kg of cereals, 7.3 Kg of pulses (daal), 28.3 Kg of sugar, 168.8 liters of milk, 22.5 Kg of meat, 2.9 Kg of fish, 8.1 dozen eggs, 14.5 Kg of ghee (cooking oil) and 68.3 Kg of fruits and vegetables.  Pakistan's economy grew 5.97% and agriculture outputs increased a record 4.4% in FY 2021-22, according to the Economic Survey. The 4.4% growth in agriculture has boosted consumption and supported Pakistan's rural economy.  

The minimum recommended food basket in Pakistan is made up of basic food items (cereals, pulses, fruits, vegetables, meat, milk, edible oils and sugar) to provide 2150 kcal and 60gram protein/day per capita. 

The state of Pakistan's social sector is not as dire as the headlines suggest. There are good reasons for optimism. Key indicators show that nutrition and health in Pakistan are improving but such improvements need to be accelerated. 

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Wednesday, April 20, 2022

World Bank: Pakistan Reduced Poverty and Grew Economy During COVID19 Pandemic

Pakistan poverty headcount, as measured at the lower-middle-income class line of US$3.20 PPP 2011 per day, declined from 37% in FY2020 to 34% in FY2021 in spite of the COVID19 pandemic, according to the World Bank's Pakistan Development Update 2022 released this month. The report said Pakistan's real GDP shrank by 1% in FY20, followed by 5.6% growth in FY21.  The report highlights high inflation and low savings rate as key economic issues. 

Pakistan's Macroeconomic Indicators. Source: World Bank


The report credited the PTI government led by former Prime Minister Imran Khan for timely policy measures, particularly the Ehsaas program, for mitigating the adverse socioeconomic impacts of the COVID-19 pandemic. Here's an excerpt of the report titled Pakistan Development Update 2022: 

"The State Bank of Pakistan (SBP) lowered the policy rate and announced supportive measures for the financial sector to help businesses and the Government expanded the national cash transfer program (Ehsaas) on an emergency basis. These measures contributed to economic growth rebounding to 5.6 percent in FY21.  However, long-standing structural weaknesses of the economy, particularly consumption-led growth, low private investment rates, and weak exports have constrained productivity growth and pose risks to a sustained recovery. Aggregate demand pressures have built up, in part due to previously accommodative fiscal and monetary policies, contributing to double-digit inflation and a sharp rise in the import bill with record-high trade deficits in H1 FY22 (Jul–Dec 2021). These have diminished the real purchasing power of households and weighed on the exchange rate and the country’s limited external buffers." 

The report cites high rates of inflation hurting the people, particularly the poor who spend about half of their income on food. Here's an excerpt: 

"Headline inflation rose to an average of 9.8 percent y-o-y in H1 FY22 from 8.6 percent in H1 FY21, driven by surging global commodity and energy prices and a weaker exchange rate. Similarly, core inflation has been increasing since September 2021. Accordingly, the State Bank of Pakistan (SBP) has been unwinding its expansionary monetary stance since September 2021, raising the policy rate by a cumulative 525 basis points (bps) and banks’ cash reserve requirement by 100 bps" 


Pakistan Savings Rate Comparison. Source: World Bank

The World Bank report highlights the low level of personal savings and investments as a key impediment to economic growth. Here's an excerpt: 

"The savings challenge has only been exacerbated by the low level of financial inclusion in the country, where even those who save are not saving with the financial system, and as such savings are not being fully leveraged to support capital formation. Only 21 percent of the population has access to an account and only 18 percent of the population uses digital payments. There are also large gaps in financial inclusion, with vulnerable segments having limited access at high prices. In terms of access to accounts, 7 percent of adult women have access compared to 35 percent of adult men, and 15 percent of young adults (ages 15–24) have access compared to 25 percent of older adults. It should be highlighted, however, that Pakistan has made notable gains on the financial inclusion agenda in recent years, supported by policy reforms and holistic strategies such as the National Financial Inclusion Strategy. However, despite the progress made, Pakistan underperforms on key metrics of financial inclusion in comparison to its peer comparators. Estimates suggest that less than 50 percent of domestic savings find their way to the financial sector, with the rest used in real estate, being intermediated through informal channels, or are soaked up directly by the government through National Savings. The incentive system is skewed such that savings flow outside of the financial sector. The large quantum of currency in circulation (CiC) in the economy is also indicative of this trend. The CiC/M2 ratio, which averaged 22 percent till June 2015 has increased to over 28 percent as of June 2021. The increase in CiC/M2 ratio translates into excess CiC of PKR1.4 trillion. These are resources that could have been intermediated for productive uses by the financial sector but are currently outside the sector." 

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Wednesday, April 6, 2022

Gallup Pakistan Poll: Over Two-thirds Support Imran Khan's Decision to Dissolve National Assembly

A snap poll conducted by Gallup Pakistan on April 3 and 4 shows broad support for Prime Minister Imran Khan's decision to seek dissolution of the National Assembly and call fresh elections.  Support for the decision is nationwide with 66% in Punjab, 69% in Sindh and 78% in KPK province. It is the strongest among those identifying themselves as PTI voters with 95% of them approving the decision. Among the Opposition parties, 44% of PMLN voters and 50% of PPP voters agree with the decision.  

Source: Gallup Pakistan

Here are the key findings of the Gallup Pakistan Poll: 

1) Widespread support for dissolution of National Assembly in Pakistan

Respondents were asked ‘ PM has dissolved the national assembly and called for fresh elections. Do you Support or are you against this’ To this question a wide majority 68% say they support and 32% say they oppose PM Imran Khan’s move.

Source: Gallup Pakistan

2) Majority don’t believe in US Conspiracy to remove Imran Khan, although split exists along party lines.Significant majority 64% responded to this question and say that Imran Khan was being ousted because of inflation and not because of a foreign conspiracy.

3) Public Opinion split over performance of Imran Khan

Respondents were asked ‘ Imran Khan ruled for 3.5 years. Are you satisfied with the performance of their government or not satisfied?

To this question 54% said they are dissatisfied and 46% said they are satisfied’

4) Anti Americanism: Only 1 in 3 consider the US to be a friend

Respondents were asked: Some people think that America is a friend of Pakistan, and some people think it is an enemy. what is your opinion?

Almost 2 in 3 Pakistanis(72%) think US to be an enemy. Anti Americanism was highest among PTI Supporters (80% thought America was an enemy) and lowest among PML-N voters (65%) 

The poll included a random sample of 800 households (18+ males and females) interviewed by telephone on April 3 and 4, 2022. Provincial breakdown: 66% Punjab, 18% Sindh, 13% KPK and 4% Balochistan. Urban 34%, rural 64%. Margin of error: +-3-5%, 95% Confidence Level. 

Gallup Pakistan's note on Sample Size: The sample size used in this survey is quite adequate even in comparison to international standards. Gallup US Daily poll is 500 and the Gallup Poll Social Series is 1000, both having a track record of reliable predictability for the USA (a country nearly 100 million larger in population of Pakistan). According to Five Thirty-Eight, one of the most credible sources on polling in the US: "Surveying 2,000 voters substantially reduces error compared with surveying 400 of them, but surveying 10,000 voters will produce only marginal improvements in accuracy compared with the 2,000- person survey".

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Monday, April 4, 2022

Does Pakistan Have Civil-Military Divide On US Ties?

Multiple media reports and analysts have suggested that there is civil-military divide in Pakistan on the question of relations with the United States. These reports cite General Bajwa's statement that "We share a long history of excellent and strategic relationship with the United States" and the fact that this statement came a day after the government of Prime Minister Imran Khan formally protested to the United States for allegedly backing his opponents in a parliamentary no-confidence vote seeking his ouster from power. However, a look at more detailed remarks by General Bajwa at the Islamabad Security Dialogue 2022 (ISD20222) lead to an entirely different conclusion: There is no civil-military divide in Islamabad on the question of US-Pakistan ties.  

Prime Minister Imran Khan (L) with General Bajwa

Answering a question about US-Pakistan ties at the Islamabad Security Dialogue 2022, Pakistan Army Chief General Qamar Javed Bajwa said China is "off course our neighbor, a very important neighbor, and our military ties are growing". 

He complained about the US denying helicopter engines for T129's Pakistan ordered from Turkey. Similarly, he said France & Germany denied submarine engines for Pakistan under Indian pressure. 

He said Pakistan wants good relations with the US & western Europe but it is being left no choice but to seek its military hardware from China & Russia. He encouraged Western participants at the Islamabad conference to think about these things.

The ISD 2022 hosted 17 foreign speakers from the US, China, UK, Russia, European Union, Japan, and elsewhere.

Bajwa reminded the West that Pakistan was a part of US-led military alliances SEATO & CENTO. He said Pakistan helped the West dismantle the Soviet Union. 

“Our commitment to defeat terrorism remains unwavering,” he said, adding that with the help of security and law enforcement agencies, Pakistan has made significant gains against terrorism. 

“Pakistan, as a country located at the crossroads of economic and strategic confronts, is navigating these shared challenges in our immediate region and through our partnership in the international community,” he said.

“It [National Security Policy] recognizes the symbiotic relationship between the economic, human and traditional security, placing economic security at the core,” he said.

“It is our collective responsibility towards the people of Afghanistan to ensure timely and adequate flow of humanitarian aid into the country; however, the world, especially the west is preoccupied with the humanitarian crisis unfolding in Ukraine,” he stated, reminding that we must not forget the 40 million Afghans during these times.

“Inability to address the humanitarian crisis in Afghanistan will not only lead to the refugee crisis but will again make Afghanistan an epicenter of terrorism where Daesh — which has a global agenda — flourishes which may result in more than one 9/11s,” he said.

“Good or bad, it is important for the international community to keep the Afghan government’s nose above the water.”

Mentioning the performance of the interim Afghan government, he said: “The performance of the present Afghan government is not satisfactory, to say the least, but we have to be patient and accommodative.”

“Instead of imposing sanctions, which have never worked, we must incentivize Afghans for their positive work and behavioral change,” he said, reiterating that disengagement with Afghanistan is “not an option.”

“India’s indifferent attitude in not informing Pakistan immediately about an irrelevant launch of a missile is equally concerning,” he said, hoping that the international community will realize that this incident could have resulted in the loss of lives in Pakistan or an accidental shooting down of a passenger plane that was flying along the path of the cruise missile.

“On our part, like early 2019, when Pakistan demonstrated its role as a responsible member of the international community by returning the captured pilot of an intruding fighter aircraft we have once again demonstrated maturity and responsibility in our response,” he said.

Bajwa  reiterated: “Pakistan continues to believe in using dialogue and diplomacy to resolve all outstanding issues including the Kashmir dispute and is ready to move forward in this front if India agrees to do so with one-third of the world in the Gulf region involved in some sort of conflict and war it is important that we keep the flames of fire away from our region.”

“I believe it is time for the political leadership of the region to rise above their emotional and perceptional biases and break the shackles of history to bring peace and prosperity to almost three billion people of the region,” he said, highlighting the intransigent behavior of the Indian leaders.

“While with Russia, Pakistan had cold relations for a long time due to numerous reasons; however, recently there have been some positive developments in this regard,” he said.

“Sadly, the Russian invasion is very unfortunate as thousands of people have been killed, millions made refugees and half of Ukraine destroyed,” he said, stressing the need to address the issue “immediately”.

“Pakistan has consistently called for an immediate ceasefire […] we support immediate dialogue between all sides to find a lasting solution to the conflict,” he said, highlighting the humanitarian assistance sent to Ukraine from Pakistan.

“The continuation or expansion of the conflict in Ukraine will not serve the interest on any side least of all the developing countries which will continue to face the social-economic cost of the conflict — a conflict that can easily get out of hand,” the COAS said.

“Pakistan today has a unique position where it has very cordial historic relation with both the camps,” he said.

Here's a short clip of General Bajwa's remarks at ISD2022:

https://youtu.be/FvaIkQlXNZ4



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Tuesday, March 29, 2022

Pakistan Prime Minister Imran Khan Demonstrated Effectiveness as Crisis Leader

Prime Minister Imran Khan has effectively led Pakistan through multiple crises in the last 4 years. Khan inherited dangerously low forex reserves in 2018 which are now at  $23 billion, near the highest level in the nation's history. The COVID pandemic that hampered Pakistan's recovery has been handled well with the fully vaccinated rate for the eligible population at more than 75%. Not only has Khan deftly navigated his nation through these crises but his government has also revived the country's economy and grown exports by 26%.  Domestic savings rate recovered to nearly 17% after plunging to a low of 12% in 2018.  The year 2021 was a banner year for Pakistan's technology startups that raised over $350 million in funding, more than the amount raised in the previous 5 years. Manufacturing and construction industries are enjoying a boom last seen during the Musharraf years in 2000-2007. 

Pakistan has pursued an independent foreign policy under the PTI government. The nation has maintained friendly ties with all great powers, including China, Russia and the United States, as well the Islamic world. At a recent OIC foreign ministers' summit in Islamabad, Chinese foreign minister Wang Yi attended and endorsed OIC's support for the movement for “right to self-determination” in Jammu and Kashmir.

Historic Inflation Rates in India & Pakistan. Source: World Bank



Rising prices of food and fuel are still a major issue for the people of Pakistan and the rest of the world. Recent geopolitical crisis with the Russian invasion of Ukraine has only served to accelerate global inflation. It presents a serious challenge to the governments in Pakistan and elsewhere in the world. 

Pakistan's opposition parties have recently come together to try to topple Prime Minister Imran Khan's government. These opposition parties have little in common other than their hunger for power. If they succeed, the country will plunge into yet another period of instability and uncertainty that will reverse progress made in the last few years to stabilize the country's economy. 

Pakistan's Exports:

Pakistan's exports of goods and services have jumped 26% to $25 billion in the first 8 months of the current fiscal year, up from $20 billion in the same period last year. A key reason for recurring balance of payments crises and IMF bailouts has been the lack of growth in Pakistan's exports. 

Pakistan Exports in First 8 Months (July 21-Feb 22) in FY 22. Source: Razzak Dawood


The 26% export growth is particularly welcome after several years of stagnation seen during the PML N government of Prime Minister Nawaz Sharif. 

Job Creation: 

Pakistan’s economy created 5.5 million jobs during the past three years –on an average 1.84 million jobs a year, which is far higher than yearly average of creation of new jobs during the 2008-18 decade, according to the Labor Force Survey (LFS) published by the Pakistan Bureau of Statistics (PBS). 

Pakistan Employment By Sectors. Source: Pakistan Bureau of Statistics

For the first time in recorded history, the labor force participation rate in Pakistan is now higher than in India, according to the ILO/World Bank estimates.



Labor Participation Rates in India and Pakistan. Source: World Bank/ILO



Unemployment rate in Pakistan is just 4.3% in spite of COVID19 pandemic. Jobless rate in India is 8%, much higher than in Pakistan. 

Unemployment Rate in India and Pakistan. Source: ILO/World Bank



Savings Rate:

Pakistan's domestic savings rate recovered to nearly 17% after plunging to a low of 12% in 2018. Savings are extremely important for increased investment to spur GDP growth in any country, including Pakistan.

Pakistan Savings Rate. Source: Global Economy

IMF Bailout:

Pakistan's forex reserves were running dangerously low forcing the country to seek a $6 billion IMF bailout in 2018 to avoid default.  The total reserves now exceed $22 billion.

Reko Diq Mining Deal Revival: 

Prime Minister Imran Khan's government recently resolved an $11 billion in damages that the country faced for improperly canceling a huge copper-gold mining deal in Balochistan.  

Reko Diq is the world's 4th largest undeveloped copper-gold porphyry deposit with over 14 million tons of copper and 21 million ounces of gold. The project was abandoned in 2011 after a Pakistan Supreme Court bench headed by former Chief Justice Iftikhar Chaudhry canceled the mining license granted to Tethyan Copper Company (TCC), a joint venture between Canada's Barrick Gold and Antofagasta Minerals of Chile. TCC challenged the cancellation in the International Centre for Settlement of Investment Dispute (ICSID). On July 12, 2019, the ICSID Tribunal awarded TCC $5.894 billion plus interest of  $700,000 per day in damages against Pakistan. As of 1 March 2022, the award stood at $6.5 billion. The new agreement between Barrick Gold Corporation  and the governments of Pakistan and Balochistan does away with this award. It also increases the share of the project owned by Pakistan from 25% to 50%, brings in $10 billion investment, the largest single investment in the country, and creates 8,000 jobs. Reko Diq is part of the Tethyan metallogenic belt (TMB) that extends from the Balkans in Europe to Pakistan including Serbo-Macedonian, Anatolian, Takab, Kerman and Chagai metallogenic belts. It is believed to be rich in copper and gold deposits.

Manufacturing and Construction Boom: 

Large scale manufacturing grew by 8.2% in February 2022,  after posting 7.6% growth during July-Jan FY22.  

QIM Index 2019-22. Source: APP

Pakistan Large Scale Manufacturing Index. Source: Mettis Global

The LSMI Quantum Index Number (QIM) hit an all-time high of 136.2 points in January, 2022. It averaged 120 points during July-January (2021-22), up from 111.5 points during July-January (2020-21), showing growth of 7.6%, according to latest PBS data.

Cement shipments in Pakistan. Source: All Pakistan Cement Manufacturers Association


Pakistan cement production has increased by double digits to respond to demand for housing and infrastructure construction on Prime Minister Imran Khan's watch. 

Technology Boom:

The year 2021 was a banner year for technology startups in Pakistan.  There was a 437% jump in investments in the startups, raising a total of $352 million across 72 deals in 2021, according to Aljazeera. 

Pakistan Startup Investments. Source: Aljazeera

Pakistan technology exports have soared 30% to $1.7 billion in the first 8 months of the current fiscal year, according to the State Bank of Pakistan. 

Expansion of Social Safety Net:

Pakistan's PTI government has built South Asia’s first digital National Socio-Economic Registry (NSER) as a part of its ambitious effort to build a basic social safety net. The Ehsaas (also known as BISP- Benazir Income Support)) program's socio-economic registry includes household information by  geography, age, income, education, health, disability, employment, energy consumption, land and livestock holdings etc. Ehsaas Programs include both Unconditional Cash Transfers (UCT) and Conditional Cash Transfers (CCT). Unconditional Cash Transfers are made only to people living in extreme poverty or distress. Conditional Cash Transfers like Waseela-e-Taleem and Nashonuma  are given for education and nutrition respectively.  In addition, there are feeding centers (langars) for the hungry and shelters (panahgahs) for the homeless. 

OIC Foreign Ministers in Islamabad:

Recent conference of Islamic countries foreign ministers hosted by Pakistan in Islamabad was attended by 56 nations. Chinese foreign minister Wang Yi attended as a special guest. Here's an excerpt of the Islamabad Declaration issued at the conclusion of the two-day conference:

“We declare that the final settlement of the Jammu and Kashmir dispute in accordance with UN Security Council resolutions is indispensable for durable peace in South Asia. We reiterate our call on India to: a) reverse its unilateral and illegal measures instituted since 5th August 2019; b) cease its oppression and human rights violations against the Kashmiris in IIOJK; c) halt and reverse attempts to alter the demographic structure and to redraw electoral constituencies in IIOJK; and d) take concrete and meaningful steps for full implementation of the UN Security Council resolutions on Jammu and Kashmir,”

Response to Indian hostility:

Prime Minister Imran Khan's government won praise for its handling of India's aggression with unprovoked air strikes in Balakot in February 2019. Pakistan responded with "Operation Swift Retort", shot down two Indian fighter jets and captured an Indian Air Force pilot. But Khan's government avoided further escalation of the incident. Similarly, Pakistan responded calmly to the "accidental firing" of Indian Brahmos cruise missile into Pakistan that could have easily escalated into a full-scale war between two nuclear-armed neighbors. 

No-Confidence Vote:

Pakistan's opposition parties have recently come together to try to topple Prime Minister Imran Khan's government. These opposition parties have little in common other than their hunger for power. If they succeed, the country will plunge into yet another period of instability and uncertainty that will reverse progress made in the last few years to stabilize the country's economy. 

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