Top News in Pakistan – February 25, 2025
Economic and Energy Sector Developments
World Bank Criticizes Pakistan's Energy Contract Renegotiations
The International Finance Corporation (IFC), a branch of the World Bank, has expressed strong concerns over Pakistan's recent renegotiations of renewable energy contracts. In a letter co-signed by seven international development institutions, the IFC criticized the government's approach, suggesting it undermines investor confidence and could deter future investments. Reports indicate that these renegotiations, conducted within military facilities, involved security officials allegedly pressuring investors into accepting terms that might render their projects unviable. Despite these allegations, the Pakistani government maintains that the renegotiations are essential for reducing electricity costs and bolstering the national economy.
Tax Implications for Solar Energy Consumers
In a significant policy shift, Pakistan's Federal Tax Ombudsman has directed power distribution companies to impose an 18% sales tax on electricity supplied to consumers utilizing solar net metering. This decision aims to address a revenue loss of Rs9 billion attributed to previous net metering deductions. The move has raised concerns among solar energy users, who fear increased costs and potential discouragement of renewable energy adoption.
Security and Border Affairs
Successful Counter-Terrorism Operation Near Afghan Border
Pakistani security forces have conducted a successful raid in Bagh, Khyber Pakhtunkhwa province, near the Afghan border, resulting in the elimination of 10 militants. These operations frequently target Tehrik-e-Taliban Pakistan (TTP), an ally of the Afghan Taliban. In a related development, the Torkham border crossing remains closed for the third consecutive day due to disputes over border post constructions, significantly hindering bilateral trade.
Sports Highlights
Pakistan's Early Exit from Champions Trophy 2025
In a disappointing turn of events, Pakistan's cricket team faces an early exit from the Champions Trophy 2025. A recent six-wicket defeat to arch-rivals India, highlighted by Virat Kohli's unbeaten century, has left Pakistan on the brink of elimination. Top-order batsman Saud Shakeel emphasized the need for comprehensive improvements across all facets of the game. The loss has sparked widespread criticism, with former cricketer Shoaib Akhtar expressing deep disappointment over the team's performance
Champions Trophy 2025 Overview
The Champions Trophy 2025 commenced on February 19, with Pakistan as the primary host. Due to security concerns, India's matches are being held in Dubai, while other fixtures take place across Pakistan. The tournament features eight top ODI teams divided into two groups, with the final scheduled for March 9 in Lahore.
Social and Humanitarian Issues
Afghan Refugees' Mixed Emotions Amid Champions Trophy
Afghan refugees in Pakistan have been enthusiastically supporting their national cricket team's debut in the Champions Trophy. However, their celebrations are overshadowed by fears of deportation, as the Pakistani government intensifies efforts to repatriate approximately 4 million Afghans. Many refugees express anxiety over their uncertain future, despite their passion for cricket and support for their team.
Infrastructure and Development
Gwadar's Unutilized New Airport Raises Questions
Pakistan's latest and most expensive airport, located in Gwadar and funded entirely by China at a cost of $240 million, remains non-operational. Despite its capacity to handle 400,000 passengers annually, the facility has yet to open, leading to questions about its necessity and the benefits it offers to the local population. Residents of Gwadar continue to face basic infrastructure challenges, including power shortages and water scarcity, while the airport stands unused.
International Relations
Bangladesh Resumes Direct Trade with Pakistan After Five Decades
In a historic move, Bangladesh has resumed direct trade with Pakistan after a 50-year hiatus. The first shipment, comprising 50,000 tons of rice from Karachi, marks a significant milestone in bilateral relations and is expected to pave the way for enhanced economic cooperation between the two nations.
Saudi Arabia's Commitment to Polio Eradication
Saudi Arabia has reaffirmed its $500 million commitment to the Global Polio Eradication Initiative. This substantial contribution aims to support efforts to eradicate wild polio and address outbreaks in Pakistan and Afghanistan, the last two countries where the disease remains endemic. The initiative has set ambitious targets to eliminate the wild virus by 2027 and vaccine-derived variants by 2029.
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