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Pakistan’s economic security

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Pakistan is currently teetering on the brink of economic collapse. The recent floods have only added to this dire situation, and the loss to our economy has been unprecedented.

We can avoid this harsh truth as much as we want, but the fact cannot be denied that without strong, drastic measures Pakistan will have no choice but to default.

It is imperative that the government impose an economic emergency. This should be done with the consensus of all stakeholders. It is also extremely important to design and implement economic policies that range from short, mid to long term. The goal should be to implement policies that can carry the country forward. These policies need to be stand-alone, not affiliated with any political party, and should be applicable to all governments, regardless of affiliations. If need be, Pakistan should pass a constitutional amendment which enables it to enforce this policy without political advantage seeking.

The PDM government effectively discouraged luxury imports in order to enhance exports; however, this policy seems to be tapering off gradually. Export promotion needs to be the foundation of our economic policy and promoting industry and factories should be emphasized. Without industrial production, the economy cannot thrive.

It is also imperative to highlight human security. Pakistan cannot thrive if our focus does not shift to effectively prioritizing human security. This will involve synchronization between our economic, trade, foreign, food, security, export, import, industrial and climate change policies. After the National Security Policy Document of 2021, we saw a shift towards human security. And it is crucial this remains the cornerstone of any security policies going forward. Without human security, the social fabric will crumble, and with it, any chances of a stable economy crumble too.

The country needs a proper system for monitoring and evaluation. This system needs to oversee the working and harmonization of these policies and also amend and implement adjustments and changes whenever necessary.

Another area where there seems to be no harmony is in our commercial diplomacy. It is necessary that Pakistan should have a well-researched and well-thought-out commercial diplomacy policy. This policy needs to be bolstered by related institutions and qualified and trained people. Although it is a utopian idea, the well-being of the country needs to come above petty alliances and nepotism. People selected for these posts must be trained and capable. Their primary goal should be to enhance bilateral trade and exports, bringing in foreign direct investment and creating and strengthening ties with neighbouring as well as other relevant countries around the world.

Keeping women out of the economy has a massively damaging impact as they comprise more than half of the population. For economic growth, it is imperative that all citizens, including urban and rural women, have access to opportunities for entrepreneurship, business ownership, and capital. Keeping such a large chunk of the population out of the economy has a debilitating impact on the GDP of any country.

The government should devise strategies to prevent savings from only being invested in the real estate market and to move them towards economic areas that may be more productive or to long-term investment funds. In order to do this, it will be an uphill task to build people’s trust in the economy. The Extended Fund Facility (EFF) and the International Monetary Fund (IMF) cannot be the only fallback to our economy. Productive and prosperous economic growth will not be seen if we stay ensnared in the IMF system.

Pakistan needs to move towards the economic security goals of human resource development, poverty alleviation, and most importantly, political stability. The past year, specifically, has demonstrated how political instability and bad economic policies can bring a country to the doorstep of default.

Investing in Pakistan can be an arduous and complicated process for most foreign investors. The risks of an unstable economy also deter them from bringing their capital into the country. It is, therefore, imperative to have an investor-friendly system in order to encourage FDI.

The Board of Investment (BoI) needs to work on promoting investment by simplifying the steps and do its utmost to move upward on the ease of doing business index. For this, the BoI will have to be restructured with a skilled management that can help Pakistan move forward.

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Pakistan

Ramadan 2023: Sindh revises school, college timings

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The Sindh School Education and Literacy Department on Monday announced the revised timings for all the educational institutions in the province during the holy month of Ramadan

All the government and private schools in Sindh will now start at 7:30am and continue till 12pm (noon) from Monday to Thursday and on Saturday. 

Meanwhile, the school timings on Friday will be from 7:30am to 11am. 

Office timings

On Monday, the federal government also notified timings for public offices during the holy month.

In a notification, the Establishment Division said the public offices coming under the ambit of the federal government would operate from 7:30am to 1:30pm from Monday to Thursday.

Moreover, the public offices coming under the ambit of the federal government would operate from 7:30am to 12:00pm on Fridays.

First Ramadan expected on March 23

Meanwhile, The Pakistan Meteorological Department (PMD) forecast that there is a strong possibility that the crescent for Ramadan 2023 will be sighted on the evening of March 22 (Wednesday).

The update was shared by the Met department’s Climate Data Processing Centre. This means the first of Ramadan is likely to fall on Thursday, March 23 in Pakistan.

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Pakistan

Cleric shot dead in Karachi’s Gulistan-e-Jauhar

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A cleric was shot dead in Karachi’s Gulistan-e-Jauhar on Tuesday after morning prayers.

According to police, Maulana Abdul Qayyum Sufi, was going back home after Fajr prayers in Gulistan-e-Jauhar Block-9 when assailants riding a motorcycle opened fire at him.

The police said that Maulana Abdul Qayyum Sufi was a member of the Pakistan Ulema Association and a prayer leader at Mohammadia Noorani Islamic Centre.

There were no further details available about the incident.

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Pakistan

Ramadan 2023: Minimum Nisab set at Rs103,159 for Zakat deduction

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The Ministry of Poverty Alleviation and Social Safety has fixed the Nisab for Zakat deduction for the ongoing year. 

According to a notification issued by the ministry, Zakat will be deducted from saving accounts, profit and loss sharing accounts and other similar accounts having a minimum balance of Rs103,159 or above, on the first of Ramadan.

The Nisab was fixed at Rs88,927 in the previous year.

Under the Zakat and Ushr Ordinance 1980, no Zakat would be deducted in case a bank account has a lesser amount than the value announced by the ministry, added the statement. 

“All the Zakat Collection Controlling Agencies (ZCCAs) are requested to deduct the Zakat accordingly,” it said. 

The first of Ramadan will likely fall on March 23, this year, subject to the appearance of the moon.

To be liable for Zakat — which is one of the five pillars of Islam — one’s wealth must amount to more than a threshold figure, termed the “Nisab”.

Those who do not want Zakat deduction from their accounts can submit a “Zakat exemption” form to their respective banks. 

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