PAKISTAN

Govt mulls tax break to avert cotton sector collapse

DAWN
The Newspaper's Staff Reporter 

Published May 31, 2025 

Cotton cultivation in Punjab has exceeded 3.011 million acres during the current Kharif season (2025-26), up from 2.940m acres planted during the same period last year.—APP/file

LAHORE: Pakistan’s cotton sector is facing its gravest financial crisis in decades, prompting swift government attention after urgent appeals from the Pakis­tan Cotton Ginners Association (PCGA) and the All Pakistan Tex­­tile Mills Association (Aptma).

Both associations have launched a high-profile lobbying campaign, writing to Prime Minister Shehbaz Sharif and initiating a nationwide media blitz, demanding the immediate abolition of the Export Facilitation Scheme (EFS) or the removal of sales tax on domestically produced cotton and its byproducts.

The premier subsequently sou­­ght policy recommendations from the Ministry of National Food Security and Research (MNFSR).

In response, the ministry has formally endorsed the industry’s proposals.

In a letter to PCGA President Dr Jassu Mal, Cotton Commis­sioner Dr Khadim Hussain stated that the government has recommended that the 18pc sales tax on domestic cotton, cottonseed, oilcake, and cottonseed oil be lifted immediately, or that imports of cotton, yarn, and grey cloth be taxed at the same rate.

The ministry’s recommendations, forwarded to safeguard farmers’ incomes, revive local production, and stem Pakistan’s soaring dependence on costly cotton imports, it says.

The communiqué notes that Punjab has implemented targeted subsidies for farmers to increase their incomes and reduce production costs for various crops.

Industry data reveals that textile mills have imported over 300 million kgs of cotton yarn and two million bales of cotton during the first nine months of 2024-25, draining billions of dollars in foreign exchange.

Despite this, domestic production has fallen to a historic low of just 5.5m bales. Meanwhile, more than 200,000 bales of unsold cotton and vast stocks of yarn remain idle in factories, with demand at a standstill.

Cotton Ginners Forum Chairman Ihsanul Haq says the fallout has been devastating as over 800 ginning units and 120 spinning mills have ceased to function, while hundreds more textile units are barely functioning.

“If the current policy persists, the sector risks total collapse,” he warns, adding that Pakistan may soon be forced to import not only cotton but also edible oil, compounding the country’s financial woes.

The MNFSR’s recommendations underscore the urgency, recommending immediate tax relief for domestic producers or the imposition of equal taxes on imports to restore a level playing field. All eyes are now on the federal government, as the fate of Pakistan’s cotton and textile industry hangs in the balance.

Published in Dawn, May 31st, 2025Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Crisis of being

Taha Sabri 

Published May 31, 2025

DAWN

IN Pakistan and across the globe, we are facing a mental health crisis of staggering proportions. But beneath the rising rates of anxiety, depression, and burnout lies a deeper, more uncomfortable truth. Our way of life is making us unwell.

We are told that the antidote to distress lies in individual treatment — pills, apps, or self-help routines. Yet, this narrative ignores the fact that we have built a world that is fundamentally at odds with human nature. Our lives are governed by speed, competition and digital overload. We chase productivity while starving for meaning. We connect constantly online but grow lonelier by the day. In this paradox, it is not surprising that so many of us feel anxious, numb or lost. These are not signs of personal failure. They are symptoms of a society out of sync with the social and spiritual values that are necessary to thrive.

Nowhere is this contradiction more evident than in high-income societies where material progress has reached its zenith, yet rates of loneliness, depression, substance abuse, and suicide continue to climb. These societies have everything the modern world promises yet they are struggling with an epidemic of despair.

This should be a wake-up call for countries like Pakistan. As we race to replicate Western models of development, obsessed with GDP, digitalisation, and industrial-scale efficiency, we risk importing not just their innovations, but also their afflictions. In our hunger to modernise, we may be laying the groundwork for our own psychological, social and spiritual unravelling.


Our identities were once rooted in belonging.

At the heart of this global disease are two interlinked forces. First is the erosion of collectivism. Traditional societies, like those in South Asia, once placed great emphasis on the family, neighbourhood, and the extended community.

Our identities were rooted in belonging. But modernity has championed radical individualism: a belief that self-fulfillment is a solo journey, that autonomy is sacred, and that dependency is weakness. The result is a world of isolated fragile selves, endlessly self-optimising, yet increasingly empty.

Second is the de-spiritualisation of life. In a world where materialism has become the dominant paradigm, value is measured in productivity, visibility and consumption. The sacred is no longer central, it is peripheral and often seen as outdated. This shift has severed our relationship with mystery, transcendence, and awe. It has emptied life of its deeper textures.

In Pakistan, this dissonance is hitting young people the hardest. Today’s youth are growing up between two worlds: one rooted in tradition and interdependence, the other defined by digital modernity and hyper-individualism. They are exposed to globalised ideals of success, beauty, and self-worth that are often alien to their cultural and spiritual contexts. Yet, they are expected to navigate these contradictions alone.

We are witnessing rising rates of depression, anxiety, substance abuse and suicide among adolescents and young adults. This isn’t just a mental health issue. It’s an identity crisis, a collapse of coherence between who they are, what they’re told to be and what truly matters. They are told to dream big but not taught how to grieve. They are connected to the world but feel disconnected from themselves. Without language, space, or guidance to explore these inner tensions, many suffer silently, questioning their worth, their place and their purpose.

Leading a mental health non-profit for over a decade, I’ve worked with communities that are struggling, not just with trauma or poverty, but with the invisible wounds of modern life: disconnection, disempowerment, and despair. This has helped me realise that healing cannot be reduced to medicine or psychotherapy alone. It must include a return to human wholeness, a reconnection with self, community, and the spirit.

This is why, alongside global best practices in mental health, we can draw from our own traditions of wisdom. For instance, in the Sufi path, suffering is not seen as a defect but as a signpost. The concept of zikr or remembrance speaks to a fundamental truth: healing begins when we remember what we’ve forgotten.

But practices and principles alone are not enough, we must also reimagine the systems we are building. From education to healthcare to economic development, we need a shift from isolation to community, from acceleration to presence, from control to compassion.

We are at a civilisational crossroads. Will we continue to live in ways that erode our well-being? Or will we reimagine a world that nourishes the human spirit?

The answer lies in returning to our true selves, to each other, and to the values that will enable us to live happier and healthier lives.

The writer is a public health practitioner focusing on mental health and co-founder of Taskeen Health Initiative.

Published in Dawn, May 31st, 2025

BALOCHISTAN IS A COUNTRY

At Balochistan grand jirga, PM stresses need to win back ‘misled’ people

Dawn.com 

Published May 31, 2025

PM Shehbaz speaks at the launch of Balochistan Grand Jirga in Quetta, May 31, 2025. — DawnNewsTV

Prime Minister shehbaz sharif delivers a speech at the Quetta Command and Staff College on May 31. — DawnNews TV

Prime Minister Shehbaz Sharif on Saturday said that people who were “misled” by terrorists in Balochistan must be brought back on board, stressing the need for resolving issues through dialogue.

The security situation in Balochistan has worsened in recent months, as militants, long involved in a low-level insurgency, have stepped up the frequency and intensity of their attacks. The outlawed Balochistan Liberation Army, in particular, has adopted new tactics to inflict higher casualties and directly target Pakistani security forces.

Last month, ISPR Director General Lt Gen Ahmed Sharif Chaudhry accused India of activating its “assets” to inte­nsify terrorist attacks in Pakistan, presenting “irr­e­futable evidence” of Ind­ian state-sponsored terrorism, directed by the Ind­ian military personnel.

Speaking at the Balochistan Grand Jirga in Quetta, PM Shehbaz said, “The terrorists [in Balochistan] must not be tolerated by the public, government or armed forces.


“We must make efforts to bring back the people who were misled [by the terrorists] onto the wrong track.”

He added that economic or social injustices cannot happen in Balochistan during his rule and stressed collectively solving the issues through talks.

“If there are any concerns, brothers need to sit together to solve those issues,” he emphasised. “The blood-thirsty terrorists who are against Pakistan’s success and welfare must be stopped. I want to ask what the gaps [there] are that we can fill with your suggestions [to solve problems].”
Balochistan to receive Rs250bn development budget

The premier also announced that Balochistan will receive Rs250 billion in development funds from the federal budget.

He said, “In the upcoming budget, the federal-funded Public Sector Development Programme (PSDP) for provinces and [the] federation will be Rs1 trillion in total. Balochistan will get Rs250bn, which is 25 per cent of the total PSDP.”

He added, “To me, even that seems like a small amount.

“Whether it is Gwadar, Pasni, Chaman, Qila Saifullah, Quetta, Jhal Magsi or any other place, every penny of these resources must be honestly utilised for the public’s welfare.”

The premier also highlighted past development projects in the province, such as the Rs70bn solar initiative for farmers and the N-25 Highway.

Last month, PM Shehbaz announced that instead of passing on the relief of reduced oil prices in the international market to consumers, the government would use the saved money for the reconstruction of the N-25 Highway and completion of Phase-II of the Kachhi Canal project in Balochistan.

Addressing the event today, he further said, “In 2010, Punjab gave Rs11bn in NFC to Balochistan [and] that would be around Rs155-160bn today. But for the sake of national unity, even Rs1600 billion would not be too much.”

“The vastness of Balochistan demands greater investment,” he added.
Pakistan ‘flying high’ militarily, economically

Earlier on Saturday, the PM said that Pakistan was “flying high” off the back of its victory in a military conflict against India and economic progress made since he took office as prime minister.

The comments, made during an address at the Quetta Command and Staff College, followed a recent military confrontation between India and Pakistan over New Delhi’s allegations against Islamabad, without evidence, about a deadly attack in occupied Kashmir’s Pahalgam.

New Delhi, based on the allegations, launched a series of air strikes in Pakistan in early May, killing civilians. Islamabad retaliated by downing five Indian jets. It took American intervention on May 10 for both sides to finally reach a ceasefire.

India, however, is still weaponising the Indus Waters Treaty (IWT) — a water distribution deal between the two countries — saying that it will no longer abide by the treaty, placing the agreement in “abeyance”.

In his address today, PM Shehbaz congratulated the military personnel in attendance on their counter-operations against India. He said these operations had left New Delhi “completely baffled and shell-shocked”.

“We won a war against an enemy, which in the eyes of our detractors was unthinkable, but we have converted this unthinkable into a reality, and I think that is our finest hour in history,” he stated. “Pakistan at this point in time is flying high.”

PM Shehbaz noted that the conflict with India was not only victorious, but illustrated that the threats Pakistan faces are no longer restricted to conventional battlefields.

“They [threats] are multifaceted, ranging from kinetic warfare to cyber attacks, economic coercion, disinformation campaigns and hybrid threats that challenge both our borders and ideological frontiers,” he elaborated.

“The recent Indian aggression … was not only countered successfully, but we turned the tables on those who tried to establish a new normal,” he added. “Indian leaders had no option but to concoct a patently false explanation for their losses. Operation Bunyanum Marsoos destroyed the enemy’s defences and shattered the myth of their military might.”

The PM highlighted that Pakistan “established a new norm” in its relations with India, warning that the country will never let its neighbour “behave in an arrogant and haughty manner”. He also reiterated that Pakistan would not allow India to continue weaponising the IWT, calling it a “red line”.

“We need to convert this moment into something this nation has been longing for — that Pakistan’s progress … would not only be witnessed [and] enjoyed by [the people], but that the world at large would respect Pakistan’s hard work,” he added.
‘Sacrifice, blood and sweat’

Noting Pakistan’s victory on the battlefield, the prime minister said that the country “faces major challenges” on the economic front.

Highlighting economic difficulties during his tenure in 2022, Shehbaz said, “International banks were refusing our letters of credit for vital imports like energy … linked to Pakistan’s wellbeing”, and the country faced the threat of international lending agencies walking away.

“As a result of that meeting in Paris in July 2023, we were able to sign a standby agreement with the IMF, which averted an impending economic meltdown,” the PM said.

He added that upon assuming office in 2024, his administration “wasted no time” implementing major reforms and making “cast-iron guarantees to lending agencies”.

“We would not shy away from undertaking difficult, tough, but very relevant, deep-rooted changes in our system,” he said. “We undertook those very difficult decisions and we were able to calm those fears of our lending partners. Today, we are witnessing the fruits of those sacrifices made by the common man in Pakistan.”

According to the PM, inflation plummeted from 38 per cent to 0.3pc, while interest rates were halved from 22.5pc in 2022 to 11pc.

“Our rupee stands stable [and] forex reserves have crossed over a billion dollars,” he said.

“These achievements, significant as they are, represent only the beginning of a very arduous, difficult, thorny journey towards progress and prosperity. On the way, we will meet huge challenges like mountains, rivers — we will have to surmount them [and] cross those rivers through unwavering commitment to our nation and our people, and that will require sacrifices, sweat and blood,” he emphasised.

LA REVUE GAUCHE - Left Comment: Search results for BALOCHISTAN

PRIMITIVE ACCUMULATION OF CAPITAL


PAKISTAN
Organised crime challenges

Tariq Khosa

Published May 31, 2025 

DAWN

The writer is a former director general of FIA.


ORGANISED crime in Pakistan is deeply entrenched. Pakistan’s strategic location, coupled with socioeconomic vulnerabilities, porous borders and weak institutional oversight, makes it both a source and transit hub for multiple transnational OC activities. OC is not confined to traditional mafia-style groups, but spans a complex spectrum of urban gangs, tribal smuggling clans, insurgent-linked syndicates and terrorist outfits. OC in Pakistan manifests across multiple interconnected markets:

Drug trafficking: The post-2022 Afghan Taliban opium ban saw a 95 per cent decline in poppy cultivation in Afghanistan, leading to fears of its production shifting to Pakistan. As per the US 2024 International Narcotics Control Strategy Report, Pakistan is emerging yet again as a significant producer of opium (1,800 hectares were under poppy cultivation in 2023). Similarly, due to the ban, the market to manufacture methamphetamine may be expanding from Afghanistan to the Southwest Asian countries, including Pakistan.

Human trafficking: Human trafficking networks operate both at home and across borders. Within the country, individuals are trafficked for purposes such as bonded labour, sexual exploitation, domestic servitude, and organised begging. A growing trend involves trafficking people abroad specifically for begging, with over 5,000 Pakistani nationals deported from Saudi Arabia in 2024 and 2025 for this. In 2022, an estimated 26,539 trafficking victims were identified in Pakistan, with women comprising 75pc of the total (19,913), followed by 4,165 men, 2,170 boys and 287 girls.

Migrant smuggling: Pakistan is both a key origin and transit country for migrant smuggling. Criminal networks exploit vulnerable populations, facilitating their movement through Iran and Turkiye en route to Europe. These operations are often connected to wider transnational criminal networks and involve human rights abuse. According to HRCP, an estimated 80,000 to 100,000 Pakistanis attempt irregular migration each year, using overland, maritime and air routes. Between 2021 and 2023, foreign authorities deported 154,205 individuals.


Multiple agencies — FIA, ANF, Customs, and police — operate without effective coordination.

Firearms trafficking: Black markets for firearms, notably in areas such as Darra Adam Khel and surrounding tribal regions, continue to function with minimal interference. Illicit manufacturing and flow of firearms is amongst the most ent­­renched forms of OC in the country, deeply imp­­acting national policy and law-enforcement efforts.

Cybercrime and financial fraud: Cybercrime is emerging as a significant threat in Pakistan, with increasing incidents of identity theft, online abuse targeting women and children, digital blackmail and the use of cryptocurrencies for laundering illicit funds. Cybercriminals frequently attack critical digital infrastructure eroding public confidence in online services. Alongside this, financial crimes such as fraud, money laundering, terrorist financing, and corruption are key enablers of OC. They facilitate illegal wealth accumulation, disrupt economic stability and weaken institutional integrity. Moreover, unchecked illicit financial flows damage Pakistan’s international financial standing and complicate its compliance with FATF conditions.

Pakistani OC groups exhibit hybrid structures that differ from mafia-style cartels:

Urban syndicates: Predominantly found in Karachi and other metropolitan areas, these are semi-structured groups involved in extortion, utility control rackets (such as the water mafia), land grabbing, and drug retail markets. Their operations are often politically shielded and embedded in municipal institutions.

Tribal and borderland smuggling clans: In Balochistan and KP, loosely affiliated clans dominate smuggling networks. These groups are often embedded in local kinship and tribal systems, enabling both protection and mobility. Their decentralised nature allows them to evade state detection and adapt rapidly.

Militant-tied criminal groups: Some groups ope­rate in symbiosis with terrorist networks, using criminal economies — such as drug smuggling or extortion — to fund operations. These dynamics blur the lines between OC, insurgency and terrorism, especially along the Afghan border.

OC groups in Pakistan utilise various operational tactics:

Violence and coercion: Especially in Karachi and rural Sindh, extortionists, land mafias and human traffickers deploy violence, blackmail, and intimidation to assert dominance.

Corruption: State-embedded actors facilitate OC by providing safe passage, protection from prosecution, and intelligence leaks. Corruption in police, Customs, and municipal governance remains a powerful enabler.

Technology: Encrypted communications, dark web marketplaces, cryptocurrency laundering, and online scam infrastructure are being adopted, particularly in cybercrime and financial fraud.

Legal fronts and informal systems: Criminal proceeds are laundered through real estate and shell companies. The informal economy facilitates unrecorded wealth flows and tax evasion.

OC groups exploit systemic inequality, poverty, and unemployment, especially among youth. In informal urban settlements and rural hinterlands, they act as parallel governance providers, offering employment, loans and protection. This cultivates loyalty and normalises criminal economies. Further, clientage politics creates protection networks around OC actors. In such instances, election financing, land development and party patronage intertwine with criminal proceeds.

Pakistan lacks disaggregated and unified crime databases. Most agencies work in silos, leading to inconsistent data on arrests, convictions or transnational linkages. For instance, while ANF reported seizures of 176 metric tons of narcotics in 2024, it did not list prosecution outcomes or identify OC groups and network leadership. Key knowledge gaps also include absence of centralised data on human trafficking.

Multiple agencies — FIA, ANF, Customs, and police departments — operate without effective coordination. There is no national strategy to counter the groups. Judicial inefficiency and limited protection for whistleblowers, journalists, and investigators further erode enforcement effectiveness. Asset recovery remains weak, with little focus on disrupting financial flows and profit chains. OC in Pakistan is often framed narrowly as a law-enforcement issue, neglecting its deeper structural roots — such as urban planning failures, gender inequality and elite capture. The dominance of anecdotal reports over empirical research weakens the design of evidence-based responses.

Pakistan must not be perceived as a fragile state. It must adopt a whole-of-government and society approach rooted in four strategic pillars:

Prevent: Build social resilience through youth employment, urban development, and education. Raise awareness against OC groups and increase civic participation.

Pursue: Strengthen intelligence-led policing, inter-agency coordination, and proactive prosecution. Focus on dismantling enablers, and not just street-level actors.

Protect: Ensure rights-based support for victims and targeted protection for investigators, whistle-blowers and journalists.

Promote partnerships: Engage civil society, private sector, and diaspora communities. Enhance regional cooperation and multilateral platforms like Saarc and the SCO.

Published in Dawn, May 31st, 2025

Bangladesh tumult

Editorial

Published May 30, 2025 

DAWN

REVOLUTIONS and upheavals are messy things, and unless proponents of the new order have a solid plan to replace the old order, transitions can be chaotic and bloody. For those leading Bangladesh in a new direction after the fall of Sheikh Hasina Wajed’s autocratic government last year, the challenges are considerable, and cracks are emerging within the coalition of parties that helped bring down the Awami League regime. Unless these issues are addressed and a clear roadmap for elections is announced within a reasonable span of time, the trust deficit between different parties may grow wider, adding to the instability that has been rocking Bangladesh. There were rumours a few days ago that Muhammad Yunus, the Nobel laureate who is heading Bangladesh’s interim set-up, was considering resigning. These were later scotched, but media reports say Dr Yunus had considered leaving his post because of pressure on him from various factions. It has also been reported that there has been increased civil-military friction. Perhaps at the heart of the instability is the debate over the election date. Dr Yunus has said polls will be held between December and July 2026, while the BNP, one of the country’s largest parties, insists elections should be held by the end of this year. The powerful army also reportedly wants polls by December. Local media quoted the army chief as saying “we must return to barracks after elections”.

Indeed it is a tough call for the interim set-up. While Dr Yunus’s calls for reform before polls are understandable, long-term changes in the country’s administrative and political structure should ideally be left to an elected government. And while demands for justice for those who were allegedly tortured or killed by the previous government are also justified, the legal process should continue in tandem with preparations for polls. All of Bangladesh’s political parties and factions should, therefore, jointly prepare a roadmap acceptable to all to ensure a free and fair democratic transition. Announcing a tentative election date would remove much of the uncertainty, and turn the focus of political parties towards the campaign trail. The interim rulers should also reconsider the ban on the Awami League’s participation in the polls, as the election will not be fully democratic without the presence of one of the country’s major political parties. Let the people of Bangladesh decide.

Published in Dawn, May 30th, 2025

Pakistan’s solar journey is feeling the heat from cost shifting

A proposed shift to lower compensation for solar exports may slow adoption, but energy storage and a smarter grid offer a way forward

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Saadia Qayyum 

Published May 28, 2025 

DAWN

In 2015, Pakistan quietly ushered in a new era of decentralised energy. The drily named Net Metering Regulations bill allowed households and businesses to install solar panels and sell excess electricity back to the grid, earning at the same rate they paid to consume electricity. It was a bold step in a country struggling with power shortages, rising import bills and growing public frustration with costly, unreliable electricity.

The impact was swift. Spurred by falling solar panel prices and some of the highest retail electricity tariffs in South Asia, Pakistan experienced a solar boom. In 2024 alone, 22 gigawatts of solar panels were imported — an astonishing figure given Pakistan’s total installed capacity is 46 GW.

Yet, behind this success lies a quieter tension: the fundamental problem of “stranded costs”.

There is a growing economic mismatch between how utilities recover costs and how electricity is now being consumed. Pakistan’s utilities have historically relied on volumetric tariffs — charging per kilowatt-hour sold — to recover both energy and fixed infrastructure costs (poles, wires, substations and administrative overheads). As more customers adopt distributed solar and generate a portion of their own electricity, the number of kilowatt-hours sold by the utility shrinks.

This doesn’t reduce the actual cost of running the grid. Instead, the fixed costs get spread over a smaller base, triggering rate increases for all other customers. In turn, these higher tariffs make distributed generation even more financially attractive, particularly for commercial and industrial customers, who account for a significant share of utility revenue. As large customers reduce their reliance on grid power, utilities are left with stranded assets – infrastructure that was built assuming higher demand and now has no clear recovery pathway.

Still, the financial pressure on utilities is real. Pakistan operates a single-buyer electricity market, where the Central Power Purchasing Agency (CPPA-G) signs deals with power producers and state-owned distribution companies (DISCOs) are responsible for selling electricity to end users, collecting payments and curbing theft. As more affluent customers install solar and reduce their reliance on the grid, DISCOs face shrinking revenues and growing losses. The utility’s sales volumes decline, while its fixed costs persist or rise and tariffs for remaining customers go up, prompting further defections. This creates a feedback loop known as the “utility death spiral”.
What are ‘fixed costs’ for utilities

Saddled with high distribution losses, poor billing recovery and heavy reliance on imported fuels, these state-owned distribution companies are caught in a bind: unable to stop the bleeding, yet politically constrained from raising tariffs enough to cover their losses. This is not just taking place in Pakistan, a similar situation is also unfolding in South Africa.
From net metering to net billing

Pakistan’s National Electric Power Regulatory Authority (Nepra) has proposed a shift to net billing. This has already been approved by the Economic Coordination Committee and now awaits cabinet ratification. If finalised, Nepra will formally incorporate the changes into the regulatory framework, potentially ending Pakistan’s near decade-long net metering regime.

Mirroring the US state of California’s Net Energy Metering (Nem) 3.0 policy, it compensates solar customers based not on retail prices, but on the utility’s avoided cost – what it would have spent to generate or procure that electricity — typically a much lower rate than the retail tariff.

Under the new Nepra proposal, compensation for customers exporting excess energy to the grid would more closely reflect the value of that power to the system. In Pakistan, this is often between per kilowatt-hour (kWh), compared to retail rates above PKR 27 per kWh in many parts of the country. In theory, this brings greater fairness to the system by reducing cross-subsidisation (where non-solar users shoulder more of the grid’s fixed costs) and keeps utilities financially afloat.

But it also reshapes the economics of solar. For new adoptees, the payback period for rooftop systems without storage more than doubles from 1-2 years to 4-5 years. While the move is likely to stabilise the grid and protect non-solar users, it could slow down the pace of new installations. This is unless they are paired with innovative business models, such as solar-plus-storage (which allows users to avoid buying expensive peak-time power) or peer-to-peer energy trading (which lets them sell surplus energy directly to others).

California’s experience offers a cautionary tale. After transitioning to net billing in 2023, rooftop solar installations declined. However, it also saw a surge in battery adoption, as customers sought to store energy for use during expensive peak hours. Pakistan could see a similar trend: a slowdown in installations of pure rooftop photovoltaic systems but growing interest in self-sufficiency solutions that combine solar with lithium-ion batteries and smart inverters.
Fixing the bigger problem: inefficient distribution

Still, net billing alone won’t fix Pakistan’s energy challenges. The high electricity prices pushing consumers toward solar stem from deeper structural issues: operational inefficiencies, overpriced fuel contracts, mounting circular debt and weak governance.

Even as Nepra changes its regulations for distributed generation, state-owned distribution companies must urgently reduce technical losses, modernise metering and billing systems, optimise power procurement — and be held accountable.

Until the underlying cost of electricity comes down, consumers will continue to seek alternatives to grid supply, regardless of how they are compensated. This points to a deeper truth: grid defection in Pakistan in favour of solar isn’t so much a vote for clean energy, but an economic escape route.
A glimpse into the future: batteries and a smarter grid

Even as Pakistan shifts to net billing, its solar journey is far from over. Storage technologies — especially lithium-ion batteries — are becoming more affordable and accessible. As battery prices fall, more solar users will opt to store energy for self-consumption, particularly during evening hours.

Rooftop solar paired with battery storage can significantly enhance grid resilience by reducing reliance on the grid during peak hours and power outages. By storing excess solar energy during the day and using it in the evening — when Pakistan’s grid is under the most strain — these systems can help flatten peak demand, reducing the need for costly peaking plants that rely on imported fuels.

This shift not only cuts national fuel expenditures but also defers the need for new transmission and distribution infrastructure, easing pressure on a grid already burdened by high losses and capacity constraints. In effect, distributed solar-plus-storage acts as a decentralised buffer, strengthening the grid while empowering consumers.

To stay ahead of these trends, Pakistan’s power planners must look beyond short-term fixes. Strategic investments are needed in ‘demand response’ systems, smart grids and tariff designs that reflect the true value of electricity, varying by time of use and location.
What is demand response?

Encouraging consumers, through flexible pricing and monetary incentives, to shift their electricity use to times when it is more plentiful or general demand is lower. This can also support greater use of renewable power.

A smarter, more responsive grid would empower consumers by allowing households and businesses to shape their energy use based on real-time conditions, reducing the strain on the system while giving consumers more control.

This article was originally published by Dialogue Earth and has been republished with permission.

Header image: Falling prices and high electricity tariffs sparked a solar boom in Pakistan. Now, new legislation looks set to slow sales. — Ton Koene / Alamy

Pakistan becomes co-signatory to China’s global mediation body

Reuters | Nadir Guramani 

Published May 30, 2025

The headquarters of the International Organisation for Mediation, a China-initiated body for global dispute resolution, is seen under construction in Hong Kong, China on May 29. — Reuters

Pakistan became a co-signatory to China’s newly set up Hong Kong-based International Organisation for Mediation (IOMed) on Friday, a statement by the Foreign Office said.

China signed a convention setting up an international organisation for mediation in Hong Kong that Beijing hopes will be on par with the International Court of Justice and bolster the city’s international credentials, Reuters reported.

Pakistan, Indonesia, Laos, Cambodia and Serbia were among the countries attending the signing ceremony, while representatives from 20 international bodies, including the United Nations, were also expected to join, public broadcaster RTHK said.




“Deputy Prime Minister [and] Foreign Minister, Senator Mohammad Ishaq Dar, today signed, on behalf of Pakistan, the convention on the establishment of the International Organisation for Mediation in Hong Kong,” the statement by the FO read.

Speaking on the occasion, Dar appreciated the Chinese leadership for its wisdom in developing and consistently leading efforts in establishing the IOMed and fostering a global community with a shared future, the statement added.

He added that the creation of IOMed underscores the indispensability and significance of multilateralism as the centrepiece for international peace, stability, and development.

“IOMeD also offers new opportunities and fresh hopes to build a more inclusive, more just and more equitable world. As one of the founding members of IOMed, Pakistan would continue to be an active voice in this noble mission,” the statement quoted him as saying.

The deputy PM underlined Pakistan’s strong commitment to the promotion of peace and security as well as development. He elaborated on the critical importance of advancing and preserving multilateralism through faithful adherence to the principles of the UN Charter, full implementation of UN Security Council resolutions, as well as international law.

He also drew attention to India’s violation of international law through its acts of aggression against Pakistan and its unlawful holding in abeyance of the Indus Waters Treaty. He also highlighted the occupation of Jammu and Kashmir and the occupied Palestinian Territories as drivers of conflict to regional peace and security.

Dar called for the resolution of the longstanding Jammu and Kashmir dispute under the UN Security Council resolutions and the wishes of the Kashmiri people.

The idea for the establishment of the IOMed was one of the key outcomes of the 2nd Belt and Road Forum held in Beijing in April 2019. China initiated discussions for the establishment of IOMed in 2021, and invited Pakistan to join negotiations as one of its founding members, the statement added.

The organisation is open to all countries; is based on respect for the sovereignty, core interests and legitimate concerns of every country; aims to promote dialogue and trust between parties concerned based on equality; and desires inclusion of various legal systems, and their mediators, the FO said.

FM Dar visits Hong Kong’s chief executive

Separately, FM Dar, in a meeting with the Chief Executive of the Hong Kong Special Administrative Region, John Lee, congratulated him on the establishment of IOMed, according to a separate statement by FO.

Noting Hong Kong’s growing significance in international mediation efforts, FM Dar highlighted the region’s role as a “global hub, linking east and west”.

The pair discussed measures to “deepen economic investment and trade cooperation” between Pakistan and the administrative region of Hong Kong.

“Hailing the launch of IOMed as a milestone inspired by President Xi Jinping’s vision, the DPM/FM noted its alignment with Pakistan’s commitment to dialogue-driven diplomacy and UN Charter’s principles,” the statement read.

The foreign minister acknowledged the chief executive and SAR government for their “impressive economic and social development strides under the ‘One Country, Two Systems’ framework” while recalling Pakistan and Hong Kong’s “long-standing friendship.”

FM Dar also commended the Pakistani community in Hong Kong for strengthening bilateral ties and contributing to the city’s diversity and economy.

He also took to X to announce the meeting, describing it as “cordial and productive”.




Welcoming FM Dar’s visit, the chief executive expressed eagerness to enhance collaboration between Hong Kong and Pakistan further.
Says IOMed reafirms international peace, stability, development

Separately, Dar, while speaking at a ceremony in Hong Kong, said the creation of IOMed reaffirmed Pakistan and China’s shared a view of multilateralism that is the centerpiece of international peace, stability and development.

He said that IOMed offered “new opportunities and fresh hopes to build a more inclusive, more just and more equitable world”.

“Pakistan will continue to be an active voice in this noble mission,” Dar said.

He said that Pakistan would bring IOMed “not just a rich diplomatic experience, but also unflinching commitment to dialog, justice and fair play, excellencies”.

“Let me commit to empower this organisation, allowing it to fulfill its potential in the service of these equity and justice I thank you all,” he said.

Online disgrace

DAWN
Editorial 

Published May 30, 2025

WE live in times of instant humiliation. In a toxic online setting, civility is a tall order and anyone is fair game. The threat of being disgraced lurks with impunity. A cyber harassment horror has been unfolding since last month in Kasur where 55 men and women were arrested from what the police say was an ‘illegal’ rave party. Their videos were recorded in a local police station and published on social media. Among them was a female influencer who will now grapple with lifelong shame because her video went viral. Although five officers have been suspended for the odious crime, the scandal should jolt the administration, forcing a rapid review of internet security protocols.

The digital sphere is, shockingly, being used by some in law enforcement to not only exploit young and underprivileged people, but also to exhibit their own ‘achievements’ for public adulation. A violation of Article 14 of the Constitution, which stipulates that an individual’s dignity is “inviolable”, the abhorrent practice is rampant in Punjab thanks to the absence of a vigilant online reporting system. The danger then is that perpetrators, despite clear guidelines — the Punjab police rules forbid officers from recording videos that reveal the identity of suspects and under-trials — will continue their hunt unless the government commits to investing in cybersecurity with a cyber-patrolling squad, training for appropriate and prompt response and above all, weeding out the rogue elements in the police force. While an ever-evolving web is a challenge to guard, shaming people online can turn into a life sentence as the presence of such videos haunts victims even after acquittals. The government must shift its focus from internet surveillance to ensuring morally upright LEAs, effective implementation of laws and justice for victims of cybercrime. Unchecked repulsive behaviour triggers remorse, anger and a bullying-victim cycle, thereby producing more offenders. The lack of accountability means that common citizens will continue to suffer.

Published in Dawn, May 30th, 2025

PAKISTAN

Development challenges

Zafar Mirza 

Published May 30, 2025 

DAWN

The writer is a former health minister and currently a professor of health systems & population health at the Shifa Tameer-i-Millat University.

DURING the watershed events of early May, Pakistan has once again proved what it is capable of. The repercussions amount to redefining the balance of power in the region and the world.

It was a demonstration of strategic excellence, immaculate coordination, and an iron resolve. Now we need another national Operation Bunyanum Marsoos to address our pathetic human development situation.

What do we mean by human development? The proxy metric for human development is the Human Development Index (HDI). The HDI was created to emphasise that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. It is a composite index measuring average achievement in three basic dimensions of human development — a long and healthy life, knowledge, and a decent standard of living.

The calculation of a healthy life is life expectancy at birth; its knowledge dimension is measured as expected years of schooling and mean years of schooling; and its standard of living is expressed in gross national income per capita or GNI per capita. All three components have their own indices as well ie life expectancy index; education index; and GNI index.

Human development is the most critical dimension of national security.

The HDI is the geometric mean of normalised indices of each of the three dimensions. Human Development Report (HDR) Office is part of the United Nations Development Programme and produces annual thematic reports on human development, and also calculates HDI for nearly 190 countries and territories in the world. HDR was initiated in 1990, and we have national, regional and global trends available since then.

Ironically, the idea of HDI was developed by Dr Mahbub ul Haq, a brilliant Pakistani economist whom The Economist called “one of the visionaries of international development”. He was Pakistan’s finance minister in 1985-86 and then again in 1988. He would be remembered for three things: pointing out that 22 industrial family groups dominate the economic and financial life-cycle of Pakistan; five-year development planning; and developing HDI while he was serving as a special adviser to UNDP.

Let us look at the human development situation in Pakistan. For the purposes of this column, I have looked at Pakistan’s HDI over the last 10 years. Sadly, Pakistan’s HDI ranking has been declining since 2015. We ranked at 147 in 2015 and according to the latest report this year, we have plummeted to 168, a fall of 21 notches in 10 years. This is abysmal, but are we surprised? Let us go down the notches and observe our plummet up close.

Current life expectancy in Pakistan is 67.6 years. More than 140 countries have a higher life expectancy than us. An average Pakistani lives 17.9 years less than a citizen of Hong Kong, who has the highest life expectancy, 85.5 years. An average Pakistani’s lifespan is almost 10 years less than a Sri Lankan, Iranian, or Chinese citizen, and seven years less than a Bangladeshi. We live shorter, and qualitatively worse lives.

Expected years of schooling ie number of years of schooling that a child of school entrance age can expect to receive in Pakistan is 7.9 years and mean years of schooling is only 4.3 years. Out of 193 countries, 167 countries in the world do better than Pakistan on both accounts. We have more than 25 million school-age children out of school, which is roughly 36 per cent of all Pakistani children.

In nominal terms this is the second largest population of children in the world in any country, after Nigeria. Seventy-four per cent of these children are in rural areas. Seventy-seven per cent of our children cannot read two sentences in any language. As for those attending school, according to a survey, 45pc of students in fifth grade cannot solve simple, second grade maths questions.

Pakistan’s population growth rate (2.5pc) is more than its economic growth rate (2.4pc). Low levels of social development, high inflation and stark inequality of income result in poverty. Around 100m people in Pakistan live in income poverty. HDI considers poverty from a multidimensional perspective rather than solely monetary poverty, which is the proportion of the population that is multi-dimensionally poor, adjusted by the intensity of various deprivations. According to the multidimensional poverty index, 38.9pc of Pakistan’s population is poor. Our gender gap index is also one of the poorest in the world.

The abysmal description of human development above puts Pakistan, along with Afghanistan, in a group of countries with “low human development”. Almost all other countries in this group are from sub-Saharan Africa.

If we can be the first Muslim nuclear country and have one of the best air forces in the world, we can also take good care of our stunted children,

Human development is the most critical dimension of national security. We have grown to think of security only in traditional terms of borders, military, and arsenal. A great contribution was made by Dr Moeed Yousuf, as national security adviser by giving Pakistan its first National Security Policy which broadens the concept of security to human security. “The policy links the security of Pakistan with the economic and social well-being of its people.”

The first step towards achieving economic and social well-being of people would be to bring political stability to the country. The supremacy of the Constitution, rule of law, good governance and democratic conduct are essential conditions for sustainable human development. Last year’s Nobel prize was shared by three economists, Daron Acemoglu, Simon Johnson, and James Robinson, for demonstrating why some nations are rich and others are poor through their research.

The laureates explained: countries that developed “inclusive institutions” — which uphold the rule of law and property rights — have over time become prosperous, while those that developed “extractive institutions” — which “squeeze” resources from the wider population to benefit their elite — have experienced persistently low economic growth.

In order to move up the HDI ladder, all stakeholders in Pakistan have to be on the same page for our national development priorities.

If we can be the first Muslim nuclear country and have one of the best air forces in the world, we can also take good care of our stunted children, anaemic mothers, those out of school and those struggling to come out of poverty.

Published in Dawn, May 30th, 2025

SPACE/COSMOS

Astronomers scrutinise a star behaving unlike any other

Reuters Published May 30, 2025 

The location (circled) of a star residing near the edge of a supernova remnant situated 15,000 light-years from Earth, that cycles in radio wave intensity every 44 minutes, placing it into the category of celestial objects called long period radio transients, is seen in this image released on May 28. — Reuters

WASHINGTON: Astronomers have spotted a star acting unlike any other ever observed as it unleashes a curious combination of radio waves and X-rays, pegging it as an exotic member of a class of celestial objects first identified only three years ago.

It is located in the Milky Way galaxy about 15,000 light-years from Earth in the direction of the constellation Scutum, flashing every 44 minutes in both radio waves and X-ray emissions. A light-year is the distance light travels in a year, 5.9 trillion miles (9.5 trillion km).

The researchers said it belongs to a class of objects called “long-period radio transients,” known for bright bursts of radio waves that appear every few minutes to several hours. This is much longer than the rapid pulses in radio waves typically detected from pulsars — a type of speedily rotating neutron star, the dense collapsed core of a massive star after its death.

Pulsars appear, as viewed from Earth, to be blinking on and off on timescales of milliseconds to seconds. “What these objects are and how they generate their unusual signals remain a mystery,” said astronomer Ziteng Wang of Curtin University in Australia, lead author of the study published this week in the journal Nature.

In the new study, the researchers used data from Nasa’s orbiting Chandra X-ray Observatory, the ASKAP telescope in Australia and other telescopes. While the emission of radio waves from the newly identified object is similar to the approximately 10 other known examples of this class, it is the only one sending out X-rays, according to astrophysicist and study co-author Nanda Rea of the Institute of Space Sciences in Barcelona.

The researchers have some hypotheses about the nature of this star. They said it may be a magnetar, a spinning neutron star with an extreme magnetic field, or perhaps a white dwarf, a highly compact stellar ember, with a close and quick orbit around a small companion star in what is called a binary system.

“However, neither of them could explain all observational features we saw,” Wang said. Stars with up to eight times the mass of our sun appear destined to end up as a white dwarf. They eventually burn up all the hydrogen they use as fuel. Gravity then causes them to collapse and blow off their outer layers in a “red giant” stage, eventually leaving behind a compact core roughly the diameter of Earth — the white dwarf.

The observed radio waves potentially could have been generated by the interaction between the white dwarf and the hypothesised companion star, the researchers said.

“The radio brightness of the object varies a lot. We saw no radio emission from the object before November 2023. And in February 2024, we saw it became extremely bright. Fewer than 30 objects in the sky have ever reached such brightness in radio waves. Remarkably, at the same time, we also detected X-ray pulses from the object. We can still detect it in radio, but much fainter,” Wang said. Wang said it is thrilling to see a new type of behavior for stars.

“The X-ray detection came from Nasa’s Chandra space telescope. That part was a lucky break. The telescope was actually pointing at something else, but just happened to catch the source during its ‘crazy’ bright phase.

Published in Dawn, May 30th, 2025