Premiership of Shehbaz Sharif

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Shahbaz Sharif in 2022 (cropped).jpg
Premiership of Shehbaz Sharif
President
(2024-Present)

The premiership of Shehbaz Sharif began on 11 April, 2022 after he was nominated as a candidate for Prime Minister of Pakistan by opposition parties following a vote of no confidence in then-Prime Minister Imran Khan during the 2022 Pakistani constitutional crisis. [1] [2] He was sworn in as prime minister by Senate Chairman Sadiq Sanjrani while acting as president on behalf of Arif Alvi. [3] [4] Sharif remained in office until 14 August 2023, when he stepped down for a caretaker government to participate in the 2024 general election. [5] After a heavily contested election, Sharif was re-elected as prime minister on 4 March 2024, defeating the PTI-backed Omar Ayub Khan. [6]

Contents

Accession

After the 2022 Pakistan economic crisis led to political instability, the struggle was also joined by several dissident members of Khan's own party, Pakistan Tehreek-e-Insaf (PTI). On 10 April 2022, the coalition succeeded in ousting Khan through a no-confidence motion, after which the Pakistan Democratic Movement formed its own government, choosing the opposition leader Shehbaz Sharif as the country's prime minister. [7]

First term (2022–2023)

Economic policy

The new government was faced with multiple economic challenges upon formation, mainly relating to the completion of the $6 billion IMF bailout program approved during Imran Khan's tenure. The government decided not to remove fuel and power subsidies imposed by Imran Khan during the last days of his tenure, viewing such a move as politically damaging to the new government. This was opposed by the Finance Ministry on the grounds that it could jeopardize the IMF program and increase the fiscal deficit. [8]

PM's Kissan Package

Following wide-spread flooding and farmer protests lead by the Pakistan Kissan Ittehad [9] in 2022, Shehbaz Sharif announced a Rs. 1.8 trillion Kisan Package. [10] The package included the following measures; [11]

  • Rs. 5 billion for flood-hit farmer loans
  • Produce Index Unit (PIU) value increased to Rs. 10,000 for agro-loans
  • Rs. 10 billion for agricultural small and medium enterprises (SMEs)
  • GoP import program of 5-year-old, second-hand tractors
    • 50% rebate on duty for importing 5-year-old, second-hand tractors
    • 36% rebate on duty for importing 3-year-old tractors
    • Duty on completely knocked down (CKD) parts reduced from 35% to 15%
  • Subsidy on Di-ammonium phosphate (DAP), Rs. 11,250 per bag
  • Distribution of 1.2 million bags of wheat seeds (Rs13.20 billion for program)
  • GoP import program of 500,000 tons of urea
    • Rs. 30 billion subsidy program on urea
  • GoP import program of 1.6 million tons of wheat
  • DISCO and K-Electric private agro-consumers provided Rs3.60/kWh decrease [12]
  • Tubewell electricity tarify/utility rate decreased by Rs3.60/kWh [13]

The State Bank of Pakistan has financed the following measures of the "PM’s Kissan Package;" [14] [15]

  • Markup Waiver Scheme (MWS): subsistence farmers with "outstanding" debts of up to Rs 500,000 per loan had their mark-up's waived. Under the MWS banks waived Rs 2.96 billion.
  • GoP Markup Subsidy Scheme (GMSS): Rs. 10.05 billion outlaid to 43,465 borrowers with debts of Rs. 500,000
  • Interest Free Loans and Risk Sharing Scheme for Landless Farmers (IF&RSLF): Upton Rs. 200,000 in interest free loans, Rs. 5.8 billion outlaid to 47,425 borrowers.
  • Markup Subsidy and Risk Sharing Scheme for Farm Mechanization (MSRSSFM): Loans up to Rs. 30 million for purchase of "tractors, threshers, combined harvesters, planters etc." The scheme was extended by Govt to June 30, 2024.
  • PM’s Youth Business and Agriculture Loan Scheme (PMYB&ALS): Loan Scheme, Rs 26.8 billion disbursed by March 31, 2024

Despite a subsidy on DAP and Urea fertilizers, an inter-ministerial meeting of the Kissan Package found that their use had declined due to continued increases in prices and decreases in supply. [16]

Foreign policy

The government immediately sought to mend ties with the United States that were strained by Imran Khan's Lettergate controversy, despite Washington's increasing prioritization of India over Pakistan in its foreign policy. [17] Experts believed the goal of this was to balance relations between the US and China, while also prioritising CPEC-related cooperation with China. [18] However, Pakistan has only received a limited response from the Biden administration, [19] the United States and India have also demanded that Pakistan stop cross-border terrorist activities. [20]

Political crisis

2022–2023 Pakistan political unrest continues, and clashes intensify after arrest of former PM Imran Khan. [21] Following the unrest, the Pakistani government supported the transfer of protesters to court-martial. [22] The Economist Intelligence Unit (EIU) downgraded Pakistan from a 'hybrid regime' to an 'authoritarian regime', in its Democracy Index 2023. [23]

Second term (2024–present)

His second tenure saw Pakistan host the 2024 SCO summit, where Shehbaz held talks on regional development and cooperation with India and other SCO members. [24] He also attempted to ban the Pakistan Tehreek-e-Insaf (PTI), the largest political party in Pakistan. [25] [26] His government saw the initiation of Operation Azm-e-Istehkam and attempted to pass new constitutional amendments making changes to the Judiciary of Pakistan, though opposition groups alleged that their members were abducted and 'coercive tactics' were used by his government to attempt to pass the amendments. [27] In Febua

Protests have continued to proliferate in Pakistan, as economic conditions and political pressures continue. IMF conditions led to increases in tax rates, while purchasing power declined in tandem with stagnant wage growth, outpaced by inflation. [28] [29]

Shehbaz’s administration prioritized banning the social media platform Twitter (X), and installed an internet firewall. The internet firewall was created by the government in order to block content it deems propaganda. The firewall was widely criticized for censorship. Furthermore, the internet firewall project was estimated to cost $300 Million. The firewall resulted in the internet worsening in Pakistan and negatively affecting businesses. [30] [31] [32]

See also

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References

  1. ↑ "Pakistan to Vote in New PM as Ousted Khan Rallies Supporters". Bloomberg News. 11 April 2022.
  2. ↑ Shahzad, Asif; Hassan, Syed Raza (11 April 2022). "Political change in Pakistan as Shehbaz Sharif seeks to become PM". Reuters– via www.reuters.com.
  3. ↑ "Shehbaz Sharif, Pakistan Opposition Leader, Elected New PM". NDTV.com.
  4. ↑ "Shehbaz Sharif elected prime minister of Pakistan". DAWN.COM. 11 April 2022. Retrieved 11 April 2022.
  5. ↑ "Govt's tenure to end on Aug 14, says PM". dawn.com.
  6. ↑ "Shehbaz Sharif elected Pakistan PM for second term after controversial vote". aljazeera.com.
  7. ↑ Masood, Salman; Goldbaum, Christina (11 April 2022). "Shehbaz Sharif Becomes Prime Minister of Pakistan". The New York Times. Retrieved 12 April 2022.
  8. ↑ Peshimam, Gibran Naiyyar; Shahzad, Asif (15 April 2022). "Pakistan's new govt decides not to roll back fuel, power subsidies". Reuters. Retrieved 1 July 2023.
  9. ↑ Iqbal, Usama (5 October 2022). "Farmers end sit-in after govt accepts demands". The Express Tribune. Retrieved 24 October 2024.
  10. ↑ Shehzad, Rizwan (31 October 2022). "PM unveils Rs1.8tr mega relief for farmers". The Express Tribune. Retrieved 24 October 2024.
  11. ↑ "PM Shahbaz Sharif announces Kissan Package". www.thenews.com.pk. Retrieved 24 October 2024.
  12. ↑ Ghumman, Mushtaq (16 December 2022). "Agri credit target raised to Rs1.8trn: Rs511bn Kissan Package notified". Brecorder. Retrieved 24 October 2024.
  13. ↑ Abbasi, Zaheer (30 November 2022). "ECC approves Kissan Package: Power tariff for tubewells reduced to Rs13 per unit". Brecorder. Retrieved 24 October 2024.
  14. ↑ "Pakistan Economic Survey 2023-24 (Agriculture)" (PDF). Ministry of Finance, Pakistan. p. 37.
  15. ↑ Bhatti, Rizwan (23 December 2022). "Rain- and flood-hit farmers: Three markup waiver and financing schemes announced". Brecorder. Retrieved 24 October 2024.
  16. ↑ Ghumman, Mushtaq (14 April 2023). "Kissan Package: Use of DAP, urea ebbs due to higher prices, supply issues". Brecorder. Retrieved 24 October 2024.
  17. ↑ Kestler-D'Amours, Jillian (15 April 2022). "What Pakistan's political shakeup means for relations with US". Al Jazeera. Retrieved 1 July 2023.
  18. ↑ Zhou, Laura (11 April 2022). "Power shift in Pakistan won't affect China ties, 'hard-core friend' Beijing says". South China Morning Post. Retrieved 1 July 2023.
  19. ↑ Hussain, Touqir (22 June 2023). "Does Pakistan really need Uncle Sam?". DAWN.COM. Retrieved 7 July 2023.
  20. ↑ "Pakistan Rejects US, India Call to Curb Cross-Border Terrorism". VOA. 23 June 2023. Retrieved 7 July 2023.
  21. ↑ Fraser, Simon; Davies, Caroline (9 May 2023). "Imran Khan: Dozens of police seize ex-PM outside court in Pakistan". BBC News . Archived from the original on 10 May 2023. Retrieved 9 May 2023.
  22. ↑ Raza, Syed Irfan (13 May 2023). "Military rules out martial law". DAWN.COM. Retrieved 7 July 2023.
  23. ↑ Report, Dawn (16 February 2024). "Tumultuous year sees Pakistan slide down 'Democracy Index'". DAWN.COM. Retrieved 28 November 2024.
  24. ↑ "Shehbaz Sharif stresses regional cooperation, economic stability, poverty reduction at SCO meeting". The Express Tribune. 16 October 2024. Retrieved 18 October 2024.
  25. ↑ Hussain, Abid. "What's behind Pakistan's move to ban Imran Khan's PTI?". Al Jazeera. Retrieved 18 October 2024.
  26. ↑ "Largest political parties worldwide by members 2023". Statista. Retrieved 18 October 2024.
  27. ↑ "Pak lawmakers accuses Shehbaz Sharif-led govt of using coercive tactics to get constitutional amendments approved". ANI News. Retrieved 18 October 2024.
  28. ↑ Mangi, Faseeh (8 October 2024). "Protests in Pakistan after govt raises taxes by 40% under IMF bailout". Business Standard .
  29. ↑ "Pakistan locks down capital as jailed ex-PM Khan calls for protests". Nikkei Asia. Retrieved 26 October 2024.
  30. ↑ "Pakistan installs firewall in censorship drive, hitting businesses". Nikkei Asia. Retrieved 25 October 2024.
  31. ↑ Tahir, Nabil (7 September 2024). "Pakistan's Firewall: Explained | The Express Tribune". tribune.com.pk. Retrieved 25 October 2024.
  32. ↑ Shahid, Ariba (15 August 2024). "Pakistan's internet firewall could cost economy $300 million, association says". Reuters.
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