Pakistan’s Prime Minister Shehbaz Sharif. File
| Photo Credit: Reuters

Cash-strapped Pakistan will privatise all state-owned enterprises, including the loss-making Pakistan International Airlines, Prime Minister Shehbaz Sharif announced on May 14, broadening the government’s initial plans to make only loss-making state firms private.

The announcement to privatise state-run enterprises barring strategic ones comes a day after Pakistan started negotiations with the International Monetary Fund (IMF) for a new long-term Extended Fund Facility (EFF).

Mr. Sharif announced this while chairing a review meeting on the privatisation process of loss-making state-owned enterprises (SOEs), according to media reports.

During the meeting, he said that apart from strategic state-owned firms, all other enterprises — profitable or loss-making — will be privatised, Geo News reported.

Asserting that the government’s job is not to do business but to ensure a business and investment-friendly environment, Mr. Sharif directed all ministries to take action and cooperate with the Privatisation Commission.

Underscoring the need for the privatisation process to be transparent, he ordered the privatisation process of Pakistan International Airlines (PIA) to be televised, including the bidding and other important steps. The PIA’s privatisation is in its final stage, the report said.

Pakistan’s ailing national flag carrier stood as the country’s third-highest public sector loss-making entity, requiring Pakistani Rs. 11.5 billion per month solely for servicing its debts.

The process of privatisation of other institutions will also be broadcast live, the report said.

A roadmap of the Privatisation Programme 2024-2029 was also presented during the meeting, The Express Tribune newspaper reported.

Ministers were informed that loss-making SOEs were to be privatised on a priority basis and that a pre-qualified panel of experts was being appointed in the Privatisation Commission to speed up the sell-off process, the report said.

Prime Minister Sharif-led government has pushed for the privatisation of several state-owned enterprises to tackle the burden on the exchequer and the prevailing financial crunch.

Previously, debt-struck Pakistan had plans to privatise only loss-making state-owned enterprises, the Dawn newspaper reported.

On May 12, Finance Minister Muhammad Aurangzeb said that privatisation is necessary to achieve economic stability in the country.

“You have to move towards privatisation if you want economic stability in the country,” Mr. Aurangzeb said while speaking at the Pre-Budget Conference 2024-25 here.

Last week, Deputy Prime Minister Ishaq Dar said the government would limit its business only to strategic and essential SOEs under its domain and their number would be reduced from 40 after scrutiny.

Privatisation has long been on the Washington-based IMF’s list of recommendations for Pakistan, which is struggling with a high fiscal shortfall, the report said.

Pakistan narrowly averted default last summer, and the economy has stabilised after the completion of the last IMF programme, with inflation coming down to around 17% in April from a record high of 38% last May.

The country is still dealing with a high fiscal shortfall, and while the external account deficit has been controlled through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2% this year compared to negative growth last year.

At least three people were killed and six others injured when security forces opened fire on protesters during clashes with paramilitary Rangers in Pakistan-occupied Kashmir’s capital Muzaffarabad which has been rocked by protests against high prices of wheat flour and inflated electricity bills, a media report said on May 14

The paramilitary Rangers, which were called in to maintain law and order in the disputed region, came under attack while moving out of the region, the Dawn newspaper reported.

Instead of exiting via Brarkot, the village bordering Khyber Pakhtunkhwa, the 19-vehicle convoy, including five trucks, chose to exit the region from Kohala, it said.

As the convoy reached Muzaffarabad in a “charged atmosphere”, it was pelted with rocks near Shorran da Nakka village, to which they responded with teargas and firing, the report said.

After entering the city through the Western Bypass, the Rangers were welcomed with rocks again, prompting them to use teargas and bullets. The shelling was so intense that the entire neighbourhood reeled from it, the report said.

Prime Minister Shehbaz Sharif on May 13 approved a Pakistani rupee 23 billion subsidy for immediate release to the region after the negotiations between the protesters and the regional Government ended in a deadlock.

However, the Government’s decision to dole out the subsidy failed to pacify the region, the report said.

The disputed region also witnessed clashes on May 11 between the police and activists of a rights movement, leaving at least one police officer dead and injuring over 100 people, mostly Policemen. A complete strike has also been observed in the territory since May 10, bringing life to a halt.

Shortly before the violence, Prime Minister Sharif and the disputed region’s ‘Prime Minister’ Anwarul Haq after a meeting had approved the release of Pakistani Rs 23 billion for the region on account of power and wheat subsidies.

The subsidised rate for 40kg flour will be Pakistani Rs 2,000, down from Pakistani Rs 3,100. The electricity tariff was reduced to Pakistani Rs 3, Rs 5 and Rs 6 per unit for up to 100, 300, and more than 300 units, respectively, the Dawn reported.

The protest is led by the Jammu Kashmir Joint Awami Action Committee (JAAC), which has traders at the forefront in most parts of the region, who have been seeking the provision of electricity as per hydropower generation cost in the region, subsidised wheat flour and an end to the privileges of the elite class.

A long march led by the JAAC left for Muzaffarabad, the capital of PoK, on May 13 as the wheel-jam strike entered its fourth day.

The movement announced its march on Muzaffarabad after the talks between the JAAC core committee and Chief Secretary of the region Dawood Bareach ended in a stalemate.

Expressing deep concern over the violent clashes between the Police and the protesters, Prime Minister Sharif on May 12 said that there should be “absolutely no tolerance for taking the law into one’s own hands”.

“I urge all parties to resort to a peaceful course of action for resolution of their demands. Despite the best efforts of detractors, the matter will hopefully be settled soon,” he said.

As part of his efforts to calm down tensions, President Asif Ali Zardari urged all the stakeholders to exercise restraint and resolve the issues through dialogue and mutual consultation.

Islamabad:

Pakistan Prime Minister Shehbaz Sharif on Monday resigned as the President of Pakistan Muslim League-Nawaz (PML-N), ARY News reported, citing sources.

Shehbaz Sharif has submitted his resignation as party president to Nawaz Sharif, the PML-N supremo.

In light of the senior politician’s resignation, the PML-N has decided to call a general council meeting in Lahore on May 28 to elect a new president.

The PML-N had earlier announced to hold general council meeting on May 11, reported ARY News.

In a recent presser, Rana Sanaullah stated that the Punjab chapter of the PML-N has asked Nawaz Sharif to take up the party presidency once more, stressing the importance of his leadership to the party’s achievements.

He stated that a resolution asking Nawaz Sharif to lead the party once more through this trying time was passed during the PML-N Punjab meeting, according to ARY News.

It is important to note that, following his conviction in 2018, the former prime minister was barred from holding any public office.

However, the Islamabad High Court (IHC) acquitted him in the Avenfield and Al-Azizia references on November 29 and December 12, respectively.

After his acquittal, the former PM contested the General Elections 2024 and returned elected from NA-130 Lahore.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

One police officer was killed and more than 100 people, mostly policemen, were injured in violent clashes between security forces and protesters agitating against high prices of wheat flour and electricity in Pakistan-occupied Kashmir, media reports said on May 12.

The region witnessed clashes on May 11 between the police and activists of a rights movement amid a wheel-jam and shutter-down strike across the territory, the Dawn newspaper reported.

Mirpur Senior Superintendent of Police (SSP) Kamran Ali told Dawn.com that sub-inspector Adnan Qureshi succumbed to a gunshot wound in the chest in the town of Islamgarh, where he was deployed along with other police personnel to stop a rally for Muzaffarabad via Kotli and Poonch districts under the banner of the Jammu Kashmir Joint Awami Action Committee (JAAC).

Also read: What is the outlook on the global economy? | Explained 

Protesters demand subsidised wheat flour, lower electricity rates

The JAAC, which has traders at the forefront in most parts of the State, has been seeking the provision of electricity as per hydropower generation cost in the region, subsidised wheat flour and an end to the privileges of the elite class.

The regional government called in the Rangers and a heavy contingent of policemen to stop the demonstrations.

Mobile phone and internet services were suspended in different parts of the PoK on May 12, including Bhimber and Bagh Towns, Geo News reported. In Mirpur, all the mobile networks and internet service have been suspended, it added.

PM Shehbaz Sharif “deeply concerned”

Pakistan President Asif Ali Zardari has called an emergency meeting related to the situation in the region at the President’s House on Monday, said sources.

They added that the president instructed stakeholders to bring proposals to resolve the issue. Prime Minister Shehbaz Sharif on May 12 said that he was “deeply concerned” about the situation in PoK.

“Unfortunately, in situations of chaos and dissent, there are always some who rush in to score political points. While debate, discussion and peaceful protests are the beauties of democracy, there should be absolutely no tolerance for taking the law in one’s own hands and damaging government properties,” he said in a post on X.

He said that he had spoken to PoK “prime minister” Chaudhry Anwarul Haq and directed his party’s office bearers in the region to talk to the leaders of the action committee. He called for peace and said, “Despite best efforts of detractors, the matter will hopefully be settled soon.”

Violent clashes rock PoK

On May 8 and May 9, around 70 JAAC activists were arrested by police during raids at their residences and those of their relatives in Muzaffarabad and Mirpur divisions, triggering serious clashes in Dadyal on May 9.

The committee had subsequently announced a shutter-down and wheel-jam strike on May 10, a day ahead of its planned long march towards Muzaffarabad Saturday.

Amid a crippling strike on May 10, violent clashes took place between police and protesters in different areas of Muzaffarabad, the capital of PoK.

On May 11, authorities placed mounds of earth on arteries leading to Muzaffarabad, apart from making more arrests, to prevent people from heading towards the city.

Witnesses said that Muzaffarabad division and Poonch division observed complete strikes.

SSP Yasin Baig said at least one police officer and a young boy were injured as police resorted to teargas shelling and aerial firing in some neighbourhoods after stones and bottles were pelted by protesters.

Kotli SSP Mir Muhammad Abid said that at least 78 policemen were injured in the district in “attacks of miscreants under the guise of protest”.

The SSP said 59 policemen, including Deputy Superintendent of Police Ilyas Janjua, and two revenue department officials were injured in Rehaan Galli while another 19 policemen were injured in Sehnsa Baroiyan.

A press release from the District Headquarters Hospital Kotli said apart from the 59 wounded policemen, nine injured protesters were also brought for treatment.

Mr. Abid said some police officials were also reportedly injured in Doliya Jattan.

 A total of 29 protesters were injured in the clashes, according to Geo News.

JAAC spokesperson Hafeez Hamdani said that the action committee had nothing to do with violence. “It seems that such elements have been purposely planted in the ranks of protesters to bring a bad name to a struggle that aims nothing but the legitimate rights of the people,” he said.

PoK’s so-called Prime Minister Haq said that the government was ready to give related relief to electricity and wheat flour prices after violent protests in Mirpur killed one officer and injured over 70 others.

“The government held negotiations with the Awami Action Committee (AAC) and we reached an agreement which we are determined to implement,” Geo News quoted Mr. Haq as saying.

Addressing a press conference on May 11, PoK Finance Minister Abdul Majid Khan said the government had exercised “maximum restraint and is ready for talks to peacefully address all contentious issues.

“Issues have to be resolved through dialogue and our doors are always open for negotiations. But the offer should not be misconstrued as a weakness of the government,” he said.

He said the government had accepted all demands of the action committee after which an agreement was signed between the committee and government negotiators, including the provision of targeted subsidy on flour and freezing the electricity tariff on June 2022 levels, but the committee later deviated from the agreement and announced a protest on new demands.

Authorities have banned public gatherings, rallies, and processions in all districts in the wake of protests, with Section 144 imposed in the entire region.

Islamabad:

Pakistan Prime Minister Shehbaz Sharif discussed a new loan programme with IMF Managing Director Kristalina Georgieva on Sunday, his office said in a statement.

Shehbaz Sharif and Kristalina Georgieva met on the sidelines of the World Economic Forum in Riyadh.

Islamabad is seeking a new, larger long-term Extended Fund Facility (EFF) agreement with the fund after a current $3 billion standby arrangement expires this month.

“Both sides also discussed Pakistan entering into another IMF program to ensure that the gains made in the past year are consolidated and its economic growth trajectory remains positive,” Shehbaz Sharif’s office said.

The IMF executive board will meet on Monday to discuss the approval of $1.1 billion of funding for Pakistan, which is the second and last tranche of the standby arrangement.

Islamabad secured the arrangement last summer, helping it to avert a sovereign default.

Pakistan’s Finance Minister, Muhammad Aurangzeb, has said Islamabad could secure a staff-level agreement on the new program by early July.

Islamabad says it is seeking a loan over at least three years to help achieve macroeconomic stability and execute long-overdue and painful structural reforms, though Aurangzeb has declined to detail what seize of programme the country seeks.

Islamabad is yet to make a formal request, but the Fund and the government are already in discussions.

If secured, it would be Pakistan’s 24th IMF bailout.

The $350 billion economy faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year – three-time more than its central bank’s foreign currency reserves.

Pakistan’s finance ministry expects the economy to grow by 2.6% in the fiscal year ending in June, while average inflation for the year is projected to stand at 24%, down from 29.2% the previous fiscal year.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Shehbaz Sharif
| Photo Credit: REUTERS

Pakistan business leaders in an interactive session with Prime Minister Shehbaz Sharif urged him to initiate trade talks with India to promote business and commerce which would greatly benefit the economy of the cash-strapped country.

Posing tough questions during an hour-long meeting at the Sindh CM House here in Pakistan’s commercial capital on April 24, Karachi’s business community appreciated the Prime Minister’s determination to tackle economic issues but advised him to focus on bringing about political stability to “turn around” the economy.

The Prime Minister sat down with the business community to find ways to uplift the economy through exports but his resolve was met with apprehensions from industry leaders who said it was “almost impossible” to do business under the current circumstances, particularly with high energy costs and inconsistent government policies, the Dawn newspaper reported.

After the Prime Minister’s brief speech, the house was opened for a question and answer session, during which business leaders voiced their appreciation for the government’s recent moves, but made more demands.

They also shared proposals for economic policies to achieve desired results.

There was a sense of concern among the business leaders over the political instability in the country for which they even advised the Prime Minister to take initiative as the head of the government.

“You have made a few handshakes after taking charge that have produced good results and progress on the IMF deal is one of them,” said Arif Habib, the chief of Arif Habib Group – a capital market giant.

They also asked the prime minister to initiate the trade talks with India, the report added.

“I suggest you do a few more handshakes. One of them is regarding trade with India, which would greatly benefit our economy. Secondly, you should also (patch up) with a resident of Adiala Jail (a reference to jailed PTI leader Imran Khan). Try to fix things at that level as well and I believe that you can do it.” The bilateral ties nosedived after India abrogated Article 370 of the Constitution, revoking the special status of Jammu and Kashmir and bifurcating the State into two Union Territories on August 5, 2019.

India’s decision evoked strong reactions from Pakistan, which downgraded diplomatic ties and expelled the Indian envoy. Pakistan has also cut off direct trade ties with India.

India has repeatedly told Pakistan that Jammu and Kashmir “was, is and shall forever” remain an integral part of the country.

Prime Minister Sharif avoided responding directly to the questions aimed at political stability, but claimed to have noted down his proposals for economic growth and assured him that he would soon invite businessmen from all across the country to Islamabad and sit with them “till all the issues aren’t resolved”.

The business leader also suggested Mr. Shehbaz initiate talks with imprisoned PTI founding chairman Imran Khan — apparently for political stability.

Mr. Shehbaz, who had arrived in the port city on his maiden visit after assuming charge last month, said the meeting was an attempt to listen to the “brilliant minds of business, absorb what they say and put it into action” for a comprehensive economic growth roadmap.

“You all are great minds of business… Today we need you to take a step forward and bring this rental business to an end. Let’s focus on genuine industrial and agricultural growth and double the exports in the next five years. It’s difficult but not impossible. It’s an article of faith for me. I would listen to you and make a plan to put that into action.” In a veiled reference to the booming economy of Bangladesh, he recalled ‘East Pakistan’, which was “once considered” a burden on the country, but had made tremendous strides in industrial growth.

“I was quite young when… we were told that it’s a burden on our shoulders…Today you all know where that ‘burden’ has reached (in terms of economic growth). And we feel ashamed when we look towards them,” said Prime Minister Shehbaz.

Washington:

The US on Tuesday (local time) warned Pakistan of “potential risk of sanctions,” adding that they will continue to disrupt and take actions against proliferation networks considering business deals with Iran.

Emphasising the US imposing sanctions on suppliers to Pakistan’s Ballistic Missile Program, US State Department Principal Deputy Spokesperson Vedant Patel said “We’re going to continue to disrupt and take actions against proliferation networks and concerning weapons of mass destruction procurement activities wherever they may occur…Just let me say, broadly, we advise anyone considering business deals with Iran to be aware of the potential risk of sanctions. But ultimately, the government of Pakistan can speak to their own foreign policy pursuits.”

Responding to a question on the reason behind these sanctions, Patel while addressing the presser, said, “The sanctions were made because these were entities that were proliferators of weapons of mass destruction and the means of their delivery.”

He said that these entities were based in China and Belarus.

“These were entities based in the PRC in Belarus and that we have witnessed to have supplied equipment and other items to Pakistan’s ballistic missile program…,” he added.

Further, highlighting the Iranian President’s visit to Pakistan and the MOUs signed between the two countries, Patel advised to be aware of the potential risk of sanctions whosoever considers signing business deals with Iran.

In the wake of President Raisi’s three-day visit to Pakistan, eight bilateral agreements inked by the two countries, the spokesperson alluded to the possibility that these relations could be jeopardized by sanctions because of Iran’s standing in the international community.

Led by Prime Minister Shehbaz Sharif from the Pakistani side and President Raisi representing Iran, the discussions underscored the shared vision of advancing political, economic, trade, and cultural ties between the two nations, reported Samaa.

Earlier in the day, Iran and Pakistan inked eight memoranda of understanding for collaboration in a range of areas. PM Shehbaz and Iranian President Ebrahim Raisi witnessed the MoU signing ceremony.

The accords included cooperation in veterinary and animal health, judicial support in civil cases, and security matters.

Last week, the US State designated four entities targeting proliferators of weapons of mass destruction and their means of delivery. These entities have supplied missile-applicable items to Pakistan’s ballistic missile program, including its long-range missile program.

The entities included Belarus-based Minsk Wheel Tractor Plant which has worked to supply special vehicle chassis to Pakistan’s long-range ballistic missile program.

It further imposed sanctions on three Chinese entities, including, “Xi’an Longde Technology Development Company Limited”, “Tianjin Creative Source International Trade Co Ltd” and “Granpect Company Limited”.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Islamabad:

Pakistan Prime Minister Shehbaz Sharif on Thursday said the government will launch a probe into threat letters laced with a “suspicious powder” received by the judges of the Supreme Court and the high courts in Islamabad and Lahore.

Eight judges of Islamabad High Court (IHC) and three judges of Lahore High Court received threatening letters with white powder suspected to be anthrax.

“The letters that were sent to various judges yesterday, and the reports that have emerged about a suspicious powder in them […] So I think that we should show full responsibility on this and not let any kind of politics near this [matter],” Dawn News quoted the prime minister as saying during a cabinet meeting here.

“The government of Pakistan, with a sense of responsibility, will investigate this,” Sharif said.

The letters, delivered to all the judges in white envelopes sealed with cello tape, had their names and the court’s address written over them.

The letters carried a threatening sign and accused the judges of being responsible for problems faced by the people of Pakistan, the report said.

The staff of two judges, who had opened the envelopes and found a suspicious powder inside, reported the matter to the IHC registrar who summoned the police officials deputed for security of the court.

A case has been registered and according to the FIR, the letters were issued with an incomplete address of the sender.

The letters while giving reference to Tehreek-i-Namoos Pakistan criticised the justice system, with a particular photo and English word “Bacillus Anthracis” included for the threat, the FIR said.

Similar letters arrived in the Supreme Court and the Lahore High Court (LHC) the next day, prompting the Counter-Terrorism Department (CTD) to register two cases in Islamabad and Lahore.

The letters in the top court were sent to Chief Justice of Pakistan Qazi Faez Isa, Justice Athar Minallah, Justice Jamal Khan Mandokhail, and Justice Aminuddin.

The letters sent by an unknown group threatened the judges of the Supreme Court for “rescuing evil”. Suspicious powder was found inside the envelopes and sent to the forensic lab.

The personal staff of the judges who received the threat found the letters in the daily mail received at the high court, said an official.

The official said the staff of all judges at the LHC was already alert in the wake of letters sent to the IHC judges.

Earlier on Thursday, the Islamabad Police said it was “conducting checks at the entry routes of the higher courts and the high-security zone”.

In a post on X, the police urged citizens to carry their identification documents.

The development comes more than a week after six IHC judges in a startling letter to the Supreme Judicial Council (SJC) members, complained regarding alleged interference by the country’s security apparatus in judicial matters.

Prime Minister Sharif recalled the developments in the matter and noted the Supreme Court’s suo motu proceedings about the allegations levelled by the IHC judges about interference in judicial affairs.

“We had fulfilled our responsibility and after that, these changes came,” he said.

Last week, Shehbaz met Chief Justice Isa and the two decided to form an inquiry commission, which was later approved by the federal cabinet.

However, ex-CJP Tassaduq Hussain Jillani – tasked to head the one-man inquiry commission – recused himself.

At the same time, the top court took suo motu notice of the matter. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Pakistan’s Prime Minister Shehbaz Sharif interacts with engineers of the China Gezhouba Group Company (CGGC) working at the Dasu Hydropower project in Upper Kohistan district of Khyber Pakhtunkhwa province on April 1, 2024.
| Photo Credit: AFP

Pakistan Prime Minister Shehbaz Sharif on April 1 said his government would ensure foolproof security measures for the Chinese nationals working across the country, days after five Chinese workers were killed in a suicide attack in the country’s restive northwest.

A vehicle-borne suicide bomber targeted a convoy of Chinese engineers in the remote Besham area of Khyber-Pakhtunkhwa on last Tuesday, killing five Chinese nationals and their Pakistani driver.

“I want to assure you that the government of Pakistan will not leave any stone unturned, will not spare any opportunity to make sure you get the best possible security for your families and yourself,” Mr. Sharif told a gathering of the Chinese engineers and workers at the site of Dasu Hydropower Project in Kohistan district of Khyber-Pakhtunkhwa province during a visit to express solidarity with them.

He declared exemplary punishment for the perpetrators of the March 26 incident, so that it would be a lesson and that no one could commit such a dastardly act in future.

At least 12 persons, including the mastermind, have been arrested in connection with the blast.

No group had claimed responsibility for the terror attack. However, the Khyber-Pakhtunkhwa Counter-Terrorism Department blamed the banned Tehreek-e-Taliban Pakistan for the assault.

Terming it a job of the enemies of Pakistan, Prime Minister Sharif said that it was a dastardly act on part of the perpetrators who found every opportunity to harm this friendship which was strengthening by each passing day and expanding and moving forward with speed.

“That is the reason enemies do not spare any opportunity to damage and create a wedge between the two iron brothers,” he added.

The prime minister said that the sole purpose of his visit was to offer sincere condolences and express feelings to the Chinese brothers and sisters in Dasu.

He said it was a cowardly act on part of the terrorists to kill innocent Chinese and a Pakistani for no other reason except to disturb and damage the exceptional friendship between Pakistan and China.

Mr. Sharif said that his government would not leave any stone unturned and would not spare any opportunity to ensure the best possible security measures for the Chinese families and nationals.

He said that after the incident, he had visited the Chinese embassy immediately to offer condolences on behalf of his government and the people of Pakistan to the Chinese leadership and the Chinese people.

He informed that a joint investigation team was also constituted on the same day and its report was due any time, adding that his government would not waste time to act upon the recommendations of the inquiry.

Besides, a high level security meeting was held on March 27 in which they discussed better coordination with the provincial governments over the additional security measures, he added.

The prime minister said that Pakistan-China friendship would march forward in unison and the enemies of the USD 60 billion China-Pakistan Economic Corridor and this exceptional relationship would be defeated completely.

Speaking on the occasion, Chinese Ambassador Jiang Zaidong said that the prime minister visited the embassy and reassured security for the Chinese nationals. He also expressed gratitude to the government and people of Pakistan for expressing solidarity, adding that they were ready to work together to further build their strategic partnership.

The gathering also observed 30-second silence for those who lost lives in the tragic incident.

Federal Ministers Amir Muqam and Attaullah Tarar as well as members of the Chinese company and senior officials were also present on the occasion.

Pakistan Prime Minister Shehbaz Sharif expressed annoyance over the use of red carpets during the visits of federal Ministers and senior authorities at government functions. File.
| Photo Credit: HANDOUT

Pakistan Prime Minister Shehbaz Sharif has banned the use of red carpets at government events, reserving them exclusively for diplomatic receptions, as part of austerity measures to cut down unnecessary expenditures in the cash-strapped nation.

Mr. Sharif expressed annoyance over the use of red carpets during the visits of federal Ministers and senior authorities at government functions.

According to the Cabinet Division, a ban has been imposed on the use of red carpet on the prime minister’s directives.

According to a notification issued by the Cabinet division, the Prime Minister has instructed that the red carpet will not be used for federal Ministers and government figures at official events in the future. However, it could be used as a protocol only for foreign diplomats, The Express Tribune newspaper reported.

The decision to ban red carpets is more than just a symbolic gesture. It represents a tangible effort to curb unnecessary expenditures and redirect resources to more critical areas of governance.

By eliminating the use of red carpets, the government aims to save funds and promote a more responsible and prudent approach to public finances.

Last week, Prime Minister Sharif and members of the Cabinet decided to voluntarily forego their salaries and perks as part of the government’s efforts to promote austerity.

Last month, the Prime Minister stated that austerity measures were the government’s top priority.

Earlier, President of Pakistan Asif Ali Zardari decided against taking salary and perks, owing to economic challenges being faced by the country.

Mr. Sharif earlier this month took oath as the Prime Minister for a second time since 2022 amidst staggering economic and security challenges.

Sharif on Tuesday said his government is planning to approach the International Monetary Fund for “another programme”, days after the country struck a staff-level agreement with the global lender regarding the disbursal of the final tranche of $1.1 billion.