Austerity No More
Prime Minister Shehbaz Sharif has expanded the federal cabinet by inducting 12 federal ministers, 9 state ministers, and three advisers. While the majority of the new entrants are members of the ruling Pakistan Muslim League (Nawaz), they also include members of coalition partners such as the MQM-P. It remains unclear what portfolios, if any, the new cabinet members will be assigned.
Seeking National Dialogue
The multi-party opposition Tehreek-e-Tahaffuz-e-Ayeen-e-Pakistan alliance has concluded its two-day huddle, calling for a national dialogue to steer the country out of its prevailing economic and political crises. In a 10-point joint declaration, the alliance has held the alleged rigging in the Feb. 8, 2024 general elections as the primary cause for the ongoing economic, political and social crises facing the country.
Hardly Working
The 16th National Assembly convened for fewer working days and recorded fewer working hours in its first year compared to its predecessor, according to a report issued by the Pakistan Institute of Legislative Development and Transparency. Despite this decline, there was a surge in legislative activity, with many key bills passed without thorough scrutiny and deliberation by parliamentarians.
Inching Back Up
The Finance Division has warned of a likelihood of inflation increasing to 3-4% by March 2025 while noting it will remain within the 2-3% range through February. The monthly economic update and outlook report has also noted a decline in large-scale manufacturing despite visible growth in export-oriented industries.
Boosting Trade
Pakistan and Iran have agreed to expedite efforts to ink a Free Trade Agreement to improve border facilities and enhance business engagement between the neighboring nations. The countries hope to achieve a bilateral trade volume, particularly in agriculture and infrastructure development, of $10 billion in the coming years through the agreement.
Financial Crunch
The PTI has informed its staff it will halve their salaries amidst a “financial crunch,” with the party leadership claiming it is struggling to attract donations and fundraise in the prevailing scenario. The move has attracted the ire of staff, many of whom claim they have not been paid since November 2024. The PTI says its monthly bill for salaries of all staff is Rs. 4 million.
Cruel Summer
In a public hearing, the government has hinted at higher electricity prices during the summer season due to lower-than-usual water availability for hydropower. Consequently, authorities told NEPRA, power would be generated through imported RLNG, which is more expensive than hydropower. The announcement comes as the government claims it is working to lower tariffs to boost the economy.
‘Heart’ of Pakistan
Describing Khyber-Pakhtunkhwa as the “heart” of Pakistan, former Prime Minister Nawaz Sharif has stressed that development cannot proceed unless all provinces play their role in the nation’s progress. Emphasizing the need for political stability to achieve sustained growth, the PMLN leader said uplifting Pakistan was among his and his party’s top priorities.
New Year, New Cases
Authorities have confirmed two new cases of the poliovirus—one in Sindh and another in Punjab. The latest cases bring 2025’s total to 5. The infections highlight Pakistan’s failure to counter the crippling disease, with 74 new cases reported in 2024, of which 27 were from Balochistan; 23 Sindh; 22 Khyber-Pakhtunkhwa; and 1 each from Punjab and Islamabad.
Gulf Support
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed, in his first official visit of Pakistan, has reiterated the U.A.E.’s support for the country’s economic development and prosperity. During his visit, the two countries inked several Memorandums of Understanding, emphasizing that these reflected the trust and enduring ties between them.