DAWN Editorials - 10th April 2025

[zarnishhayat]

Crypto coup

IT is quite the coup. One of the most recognisable names in the global cryptocurrency market has been roped in by the finance ministry to serve as ‘strategic adviser’ to the Pakistan Crypto Council, established to oversee and promote wider adoption of blockchain technology and digital assets within the country. Changpeng Zhao, or CZ as he is commonly known, is not only one of the richest persons in the world, thanks to early investments in cryptocurrencies, he is also the co-founder of popular trading platform Binance, the largest cryptocurrency trading exchange by volume in the world today. Mr Zhao is also intimately aware of the legal issues surrounding the crypto trade, thanks to his experiences as former CEO of Binance. That makes him a valuable ally for policymakers in Pakistan, who are gearing to go big on crypto and related technologies. “With Zhao onboard, we are accelerating our vision to make Pakistan a regional powerhouse for Web3, digital finance, and blockchain-driven growth,” the finance minister said.

There is no doubt that Mr Zhao’s onboarding will invite the right kind of interest from around the world. However, it is also hoped that his opinions and advice will be given careful consideration. After all, regulators worldwide have been quite suspicious of the crypto trade, and for many good reasons. Even in Pakistan, Binance had, till recently, been operating in a regulatory grey area, with the State Bank discouraging citizens from engaging in crypto trading and refusing to provide assistance in case they encountered fraudulent activity. Local investors will obviously feel much more confident knowing that the founder of Binance is now on board, but the aim should be to look at the bigger picture. Pakistan can emerge as a hub for future growth and innovation in these technologies if it plays its cards right. But to do that, it must overcome many regulatory challenges and limitations.

Published in Dawn, April 10th, 2025


Senate shortfalls

THE latest Citizens’ Report by Pildat on the performance of the Senate of Pakistan is a sobering account of parliamentary dysfunction during the 2024-25 legislative year. While the upper house met its constitutional requirement by holding 65 sittings and in that time passing 51 bills, the report reveals troubling signs of procedural decay, declining productivity, and executive overreach. The executive’s growing reliance on ordinances stands out as the most disturbing trend. Sixteen ordinances were laid before the Senate — a 1,500pc increase from the previous year — effectively bypassing debate and oversight. These were introduced even as private members’ legislative output declined by 63.8pc, a clear indicator of shrinking space for independent or opposition voices. Meanwhile, the passage of the controversial 26th Constitutional Amendment — marred by reports of coerced absences and disputed votes — further eroded confidence in the chamber’s integrity. Operationally, while the Senate increased its sittings, total working hours fell by over 20pc, making 2024-25 the least productive year in six years. Quorum issues persisted, with 16 sittings adjourned due to low attendance. The Leader of the House, Senator Ishaq Dar, attended just 28pc of sessions, the lowest in recent history. In contrast, the Leader of the Opposition, Senator Shibli Faraz, recorded 80pc attendance and emerged as the most vocal senator. Financial accountability also faltered. The Senate’s total budget rose by 43.3pc to over Rs7bn, with per-member expenditure climbing to Rs85.2m — a 68.5pc spike from the previous year.

A particularly alarming concern is the continued absence of representation for KP. Eleven Senate seats from the province remain vacant due to a standoff between the PTI-led provincial government and federal authorities over oath-taking on reserved seats. The Election Commission’s allocation of these seats to opposition parties was rejected by the KP government, which refused to administer oaths, resulting in indefinite delays to the elections. To restore credibility, Pildat has urged reforms on multiple fronts: reducing the use of ordinances, ensuring timely filling of vacant seats, improving attendance of key officeholders, enforcing quorum rules, and strengthening the role of Senate committees in legislative oversight. What is at stake is more than legislative efficiency; it is the health of the democratic process itself. If these recommendations are ignored, the Senate risks sliding into irrelevance.

Published in Dawn, April 10th, 2025


Mineral wealth

THE participation of 300 delegates, including guests from overseas, in the two-day mineral summit in Islamabad has renewed hopes of growing foreign interest in Pakistan’s mineral sector, which remains mostly unexplored due to lack of financing and access to technology. Prime Minister Shehbaz Sharif has highlighted mineral resources as the lynchpin of the nation’s economic revival. Addressing the Pakistan Minerals Investment Forum, he went on to state that the country’s mineral wealth ‘worth trillions of dollars’ could free its economy from perpetual dependency on frequent bailouts from global lenders.

Indeed, the recent announcement at the forum of new, significant discoveries of hydrocarbons in KP and gold-copper deposits in Balochistan underscores the presence of vast reserves of natural resources in the country waiting to be tapped. However, the conversion of these deposits into mines will not happen overnight in spite of a discernible international interest in the country’s mineral sector due to the new discoveries and the settlement of the Reko Diq dispute leading to its revival. Investors would want to first carry out studies to determine the size of the deposits and economic viability of undertaking exploration before committing funds rather than relying on the optimistic estimates of Pakistan’s government.

The policymakers must also avoid rushing into flawed agreements just to woo investment in this critical sector. The agreements should be transparent and based on assessment of the true value of the deposits. If the country is to truly benefit from its mineral wealth, it is also crucial to ensure that the policy and subsequent contracts under it cover the entire minerals’ value chain: the extraction of minerals to local processing and refining for production of the finished products for export. We have seen the investors take out minerals from Saindak in raw form, with virtually little to no benefit to the country. The Reko Diq dispute also had its genesis in such a defective agreement. While the renewed focus on the mineral sector is welcome, we should not forget the reality that this wealth is found in the two provinces reeling under growing militancy and insurgency. Though the army chief promised the forum participants robust security for investors, practical measures need to be taken to allay their concerns in Balochistan. Moreover, it must be ensured that the people of Balochistan and KP have first priority in jobs, and that the proceeds from these projects are spent on the welfare of the people. The Baloch unrest is partly the result of the belief that the province’s resources are being used for the rest of the country rather than for Balochistan’s economic development. This perception will not go away unless the financial benefits accruing from these projects are directed for the development of the province and its population.

Published in Dawn, April 10th, 2025