ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Tuesday that Chinese engineers were killed in a suicide attack in Karachi. They were involved in crucial energy debt restructuring negotiations with the Pakistani government. This tragic event underscores the ongoing challenges Pakistan faces in maintaining security for foreign nationals working in the country.
In a pre-recorded statement, Aurangzeb clarified the engineers’ role. They were part of a team negotiating the re-profiling of approximately $16 billion in energy debt. “The ones killed were Independent Power Producers engineers,” he stated. He highlighted their importance in discussions aimed at reducing power tariffs and easing public burdens.
The attack, which resulted in the deaths of two Chinese nationals, has further strained Pakistan’s relationship with China. The Chinese embassy reported that another citizen was injured in the incident. Beijing is particularly concerned about the security of its citizens in Pakistan, prompting it to propose establishing a joint security company for their protection.
Pakistan aims to extend repayment on its energy debt by five years, hoping to decrease electricity prices by Rs4 per unit. However, this extension may also lead to an increase in overall debt obligations by $1.3 billion. Consequently, the attack presents a significant setback to these financial negotiations.
Meanwhile, Aurangzeb expressed condolences to the Chinese government and people. He emphasized that the engineers were instrumental in creating beneficial outcomes for both countries.
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Impact of PTI Protests on the Economy
The finance minister also addressed the impact of the Pakistan Tehreek-e-Insaf (PTI) protests on the economy. He asserted that the protests led to a staggering Rs190 billion daily loss. This disruption spanned three to four days, culminating in an estimated total loss between Rs570 billion and Rs760 billion.
“In Islamabad alone, 800,000 people were affected due to this strife,” Aurangzeb noted. While he attributed much of the economic turmoil to the PTI protests, he also criticized the government’s measures, which included blocking movements from several regions and unusual three-day mobile service shutdowns.
He stressed that the estimated losses stemmed from GDP size, tax revenues, and disrupted business and export activities. Pakistan’s total GDP stands at Rs124 trillion, with the estimated size for the second quarter of this fiscal year at Rs32 trillion. Aurangzeb urged all parties involved in strikes to seek negotiation instead of disruption.
“Whether it is terrorism, strikes, or unrest, these are setbacks our country cannot afford,” he warned. He called on citizens to refrain from activities that harm the economy, reiterating the government’s commitment to stabilize and grow the economy.
Pakistan’s Sovereign Wealth Fund
In other developments, the finance ministry has engaged Alvarez & Marsal (A&M) to help operationalize Pakistan’s Sovereign Wealth Fund. Aurangzeb met with former central bank governor Reza Baqir, who now leads the advisory services at A&M. The firm will provide consulting support, addressing the International Monetary Fund’s transparency concerns regarding the fund.
Additionally, Aurangzeb met with a delegation of foreign bankers led by Barclays. He briefed them on recent policy interventions aimed at economic reform and highlighted improvements in key economic indicators, including currency stability and foreign exchange reserves.
Aurangzeb affirmed that Pakistan is making strides toward achieving macroeconomic stability, having successfully cleared nearly $2 billion in payments to foreign investors.
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