Shehbaz Sharif becomes prime minister of Pakistan, nation politically divided and in economic crisis

Shehbaz Sharif becomes prime minister of Pakistan, nation politically divided and in economic crisis
In this handout photograph released by the Press Information Department (PID) on April 12, 2022, Pakistan's Prime Minister Shehbaz Sharif reviews a guard of honor upon his arrival at the Prime Minister's House in Islamabad. (AFP/File)
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Updated 03 March 2024
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Shehbaz Sharif becomes prime minister of Pakistan, nation politically divided and in economic crisis

Shehbaz Sharif becomes prime minister of Pakistan, nation politically divided and in economic crisis
  • New PM will have to tackle tough opposition, maintain relations with army and fix security and financial problems
  • Lowering political temperatures will be key challenge for Sharif as ex-PM Khan maintains mass support in Pakistan

ISLAMABAD: Pakistan’s newly elected lower house of parliament on Sunday elected Shehbaz Sharif as prime minister for a second time, putting him back in a role he had stepped down from ahead of general elections on Feb. 8. 

Sharif, the candidate for his Pakistan Muslim League-Nawaz (PML-N) and coalition allies, secured a comfortable win over Omar Ayub Khan of the Sunni Ittehad Council (SIC) backed by the Pakistan Tehreek-e-Insaf (PTI) party of jailed former PM Imran Khan. 

Elections last month threw up a hung National Assembly and have been followed by weeks of protests by opposition parties over allegations of rigging and vote count fraud. 

In his first speech as PM, Sharif, 72, spoke of Pakistan’s burgeoning debt, saying it would be his government’s top priority to solve the economic struggles of the nation of 241 million people. 

“The parliament that we are sitting in, even the expenses of its proceedings are being paid through loans … Your salary and the salaries of all these people are being paid through loans,” the new PM said, as PML-N lawmekers cheered and opposition members chanted slogans against the leader of the house. 

“We will make Pakistan great and raise our heads high and move forward.”

Sharif, the younger brother of former three-time premier Nawaz Sharif, played a key role in keeping together a coalition of disparate parties for 16 months after parliament voted Imran Khan out of office in April 2022, and in securing a last gasp International Monetary Fund (IMF) bailout deal in 2023. 

 

“CHALLENGES” 

Independent candidates backed by Khan gained the most seats, 93, after the elections, but the PML-N and Pakistan Peoples Party (PPP) of the Bhutto dynasty agreed to an alliance to form a coalition government on Feb. 20. No single party won a majority.

The Sunni Ittehad Council backed by Khan alleges that the election was rigged against it and has called for an audit of the polls. Lowering political temperatures will thus be a key challenge for Sharif as Khan maintains mass popular support in Pakistan, and a continued crackdown on his party and his remaining in jail would likely stoke tensions at a time when stability is needed to attract foreign investment to shore up the economy.

Sharif’s main role will also be to maintain ties with the military, which has directly or indirectly dominated Pakistan since independence. Unlike his elder brother, who has had a rocky relationship with the military in all his three terms, the younger Sharif is considered more acceptable and compliant by the generals, most independent analysts say.

For several years, the military has denied it interferes in politics. But it has in the past directly intervened to topple civilian governments three times, and no prime minister has finished a full five-year term since independence in 1947.

Sharif also takes over a time when the new government will need to take tough decisions to steer the country out of financial crisis, including negotiating a new bailout deal with the IMF. The current IMF program expires this month. A new program will mean committing to steps needed to stay on a narrow path to recovery, but which will limit policy options to provide relief to a deeply frustrated population and cater to industries that are looking for government support to spur growth. 

Inflation touched a high of 38 percent with record depreciation of the rupee currency under Sharif’s last government, mainly due to structural reforms necessitated by the IMF program. Pakistan continues to be enmeshed in economic crisis with inflation remaining high, hovering around 30 percent, and economic growth slowing to around 2 percent.

Other big moves by Sharif will include the privatization of loss-making state-owned enterprises such as the flagship carrier Pakistan International Airlines (PIA). The Sharifs have close ties with rulers in Saudi Arabia and Qatar, which could help in securing investments in several projects Pakistan has lately showcased for sale.

Although defense and key foreign policy decisions are largely influenced by the military, Sharif will have to juggle relations with the US and China, both major allies. He is also faced with dealing with fraying ties with three of Pakistan’s four neighbors, India, Iran and Afghanistan.

Pakistan is also facing a troubling rise in militancy, which Sharif’s government will have to immediately tackle. 

“There are certainly difficulties but nothing is impossible if there is a will to do,” Sharif said in his maiden speech. 

“It is a long journey, thorny journey, full of hurdles but those nations who surmounted these huge obstacles, they became again, one of the most growing nations around the world.”

“CAN DO ADMINISTRATOR” 

Sharif, born in the eastern city of Lahore, belongs to a wealthy Kashmiri-origin family that was in the steel business. He started his political career as the chief minister of Punjab in 1997 with a signature “can-do” administrative style. Cabinet members and bureaucrats who have worked closely with him call him a workaholic.

As chief minister, the younger Sharif planned and executed a number of ambitious infrastructure mega-projects, including Pakistan’s first modern mass transport system in Lahore.

He was caught up in the national political upheaval when his brother was ousted from the premiership by a military coup in 1999 and he went into exile in Saudi Arabia.

Sharif entered the national political scene again when he became the chief of the PML-N after the elder Sharif was found guilty in 2017 on charges of concealing assets related to the Panama Papers revelations. The Sharifs have been emboriled in multiple corruption cases over the decades, which they say are politically motivated. 

Married twice, Shehbaz Sharif has two sons and two daughters from his first marriage. Only one of his sons, Hamza, is in politics and was briefly CM of Punjab in 2023.

With inputs from Reuters


Trump says Americans could feel ‘pain’ in trade war with Mexico, Canada, China

Trump says Americans could feel ‘pain’ in trade war with Mexico, Canada, China
Updated 12 min 26 sec ago
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Trump says Americans could feel ‘pain’ in trade war with Mexico, Canada, China

Trump says Americans could feel ‘pain’ in trade war with Mexico, Canada, China
  • “We’re not going to be the ‘Stupid Country’ any longer,” the Republican president wrote on social media
  • Experts warn that Trump’s tariffs could reduce US economic growth and throw Canada and Mexico into recession
  • Democratic lawmakers decried what they called a blatant abuse of executive power. Others warned about rising prices.

WASHINGTON: President Donald Trump said on Sunday the sweeping tariffs that he has imposed on Mexico, Canada and China may cause “some pain” for Americans, as Wall Street and the largest US trading partners signaled hope that the trade war would not last long.
US futures markets opened lower in a sign that investors were worried the tariffs could spur inflation and drag on growth, as economists have warned.
Trump, less than two weeks into his second White House term, defended the tariffs as necessary to curb illegal immigration and the drug trade.
Canada and Mexico ordered retaliatory measures to Trump’s 25 percent tariffs, which promise to jolt the economies of all three countries, which are tightly integrated through free-trade agreements.
China said it would challenge Trump’s 10 percent tariffs at the World Trade Organization and take unspecified countermeasures. Critics said the Republican president’s plan will slow global growth and drive prices higher for Americans, but Trump defended his decision.
“We’re not going to be the ‘Stupid Country’ any longer,” the Republican president wrote on social media. He added in all caps: “Will there be some pain? Yes, maybe (and maybe not!)“
Trump did not specify what he meant by “some pain.” North American companies were braced for the move, which could upend industries from autos to consumer goods to energy.
EY Chief Economist Greg Daco said Trump’s tariffs could reduce US economic growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” — high inflation, stagnant economic growth and elevated unemployment — at home.
Trump’s move was the first strike in a what could be a destructive global trade war that Paul Ashworth of Capital Economics said would lead to a surge in US inflation that would “come even faster and be larger than we initially expected.
US crude oil futures jumped more than $2 to hit $75 per barrel, while stock futures fell. The S&P 500 E-mini futures were down 2 percent, while Nasdaq futures were down 2.75 percent.

Tuesday deadline
The Trump tariffs, outlined in three executive orders, are due to take effect 12:01 a.m. ET (0501 GMT) on Tuesday. Markets were awaiting developments with anxiety, but some analysts said there was some hope for negotiations, especially with Canada and China.
“The tariffs look likely to take effect, though a last-minute compromise cannot be completely ruled out,” Goldman Sachs economists said in a note Sunday.
They said the levies are likely to be temporary but the outlook is unclear because the White House set very general conditions for their removal.
A White House fact sheet gave no details on what the three countries would need to do to win a reprieve.
Trump vowed to keep them in place until what he described as a national emergency over fentanyl, a deadly opioid, and illegal immigration to the United States ends. China left the door open for talks with the United States. Its sharpest pushback was over fentanyl.
“Fentanyl is America’s problem,” China’s foreign ministry said, adding that China has taken extensive measures to combat the problem.
Mexican President Claudia Sheinbaum, raising her fist in the air in a speech outside the capital, vowed resilience.
She accused the United States of failing to tackle its fentanyl problem and said it would not be solved by tariffs.
Sheinbaum said she would provide more details on Monday of the retaliatory tariffs she ordered this weekend.
Canada said on Sunday it will take legal action under the relevant international bodies to challenge the tariffs.
Prime Minister Justin Trudeau also encouraged Canadians on Sunday to boycott their longtime ally after ordering retaliatory tariffs against $155 billion of US goods, from peanut butter, beer and wine to lumber and appliances.
Canadian officials said they were preparing measures to help business who might be hurt by the trade war.
Trump has heaped derision on Canada in particular, with calls for the country to become the 51st US state. On Sunday, he said Canada “ceases to exist as a viable country” without its “massive subsidy.”

Following through
The tariff announcement made good on Trump’s repeated 2024 campaign threat, defying warnings from economists that a trade war would erode growth and raise prices for consumers and companies.
Trump declared a national emergency under two laws, the International Emergency Economic Powers Act and the National Emergencies Act, which give the president sweeping powers to impose sanctions to address crises.
Trade lawyers said Trump could face legal challenges for testing the limits of US laws. Democratic lawmakers Suzan DelBene and Don Beyer decried what they called a blatant abuse of executive power. Others warned about rising prices.
“No matter which way you slice it: costs are going to climb for consumers,” Senate Democratic Leader Chuck Schumer said, vowing to try to “undo this mess.”
Republicans welcomed Trump’s action.
A Reuters/Ipsos poll released last week showed Americans were divided on tariffs, with 54 percent opposing new duties on imported goods and 43 percent in support, with Democrats more opposed and Republicans more supportive.

Investors look ahead
Investors were considering the effects of additional tariffs promised by Trump, including those related to oil and gas, as well as steel, aluminum, semiconductor chips and pharmaceuticals. Trump has also vowed actions against the European Union.
A European Commission spokesperson said the EU “would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.” Europe’s biggest carmaker, Volkswagen, said it was counting on talks to avoid trade conflict.
Automakers would be particularly hard hit, with new tariffs on vehicles built in Canada and Mexico burdening a vast regional supply chain where parts can cross borders several times before final assembly.
Trump imposed only a 10 percent duty on energy products from Canada after oil refiners and Midwestern states raised concerns. At nearly $100 billion in 2023, imports of crude oil accounted for roughly a quarter of all US imports from Canada, according to US Census Bureau data.
White House officials said Canada specifically would no longer be allowed the “de minimiz” US duty exemption for shipments under $800. The officials said Canada, along with Mexico, has become a conduit for shipments of fentanyl and its precursor chemicals into the US via small packages that are not often inspected by customs agents.
 


Georgian police arrest opposition leaders at pro-EU protest

Georgian police arrest opposition leaders at pro-EU protest
Updated 11 sec ago
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Georgian police arrest opposition leaders at pro-EU protest

Georgian police arrest opposition leaders at pro-EU protest
  • Earlier on Sunday, the Interior Ministry warned protesters in a statement that blocking the motorway was a criminal offense

TBILISI: Police in Georgia arrested several anti-government protesters on Sunday as thousands of demonstrators demanding new parliamentary elections briefly blocked a motorway on the edge of the capital Tbilisi.
A Reuters reporter saw three protesters being arrested, including Nika Melia, a leader of the country’s largest opposition party, the Coalition for Change.
Interfax news agency reported that Melia has since been released on bail after detention for an administrative offense.
“At the police station, I was sitting on a chair in handcuffs and was kicked by a police officer,” Interfax cited Melia as telling journalists afterwards.
Reuters could not independently verify the information.
There was no immediate comment from the police. Georgia’s Ministry Of Internal Affairs had said in a statement before the protest that the police would ensure the rally took place “in a peaceful environment, within the limits established by law.”
Former Tbilisi Mayor Giorgi Ugulava was also arrested, local media reported.
Georgians have been rallying nightly since November, when the ruling Georgian Dream party said it was suspending European Union accession talks until 2028, abruptly halting a long-standing national goal.
Georgian Dream held onto power in a disputed election in October that opposition parties say was rigged. The government says the vote was fair and free.
Protests had dwindled in recent weeks but they resumed with greater force on Sunday when thousands of people gathered outside a shopping complex on the northern edge of Tbilisi and briefly blocked the road leading out of the city. Police presence at the rally was considerable. Earlier on Sunday, the Interior Ministry warned protesters in a statement that blocking the motorway was a criminal offense.
One protester was seen by the side of the road, unconscious. Reuters was unable to establish what had happened to him.
Unverified video footage posted on social media showed scores of police in balaclavas beating protesters on the streets and others carrying away injured demonstrators into ambulances.


Trump to cut off all future funding to South Africa, Elon Musk’s original country

Trump to cut off all future funding to South Africa, Elon Musk’s original country
Updated 50 min 31 sec ago
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Trump to cut off all future funding to South Africa, Elon Musk’s original country

Trump to cut off all future funding to South Africa, Elon Musk’s original country
  • He alleged that “South Africa is confiscating land, and treating certain classes of people VERY BADLY”
  • Trump pledged during his first administration to investigate claims of large-scale killings of white farmers in South Africa and violent takeovers of land

WASHINGTON: US President Donald Trump said on Sunday that he would cut off all future funding to South Africa because he claimed, without evidence, that “certain classes of people” were being treated “very badly.”
“South Africa is confiscating land, and treating certain classes of people VERY BADLY,” Trump said in a Truth Social post.
“The United States won’t stand for it, we will act. Also, I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!” he added.
In 2023, the United States obligated nearly $440 million in assistance to South Africa, according to US government statistics.
South African President Cyril Ramaphosa said last month that he was not worried about the country’s relationship with Trump.
Ramaphosa said at the end of January that he had spoken to Trump after his election victory and looked forward to working with his administration.
During his first administration, Trump had pledged to investigate the unproven large-scale killings of white farmers in South Africa and violent takeovers of land.


Rubio says Panama must reduce Chinese influence around the canal or face possible US action

Rubio says Panama must reduce Chinese influence around the canal or face possible US action
Updated 03 February 2025
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Rubio says Panama must reduce Chinese influence around the canal or face possible US action

Rubio says Panama must reduce Chinese influence around the canal or face possible US action
  • China’s presence in the canal area may violate a treaty that led the US to turn the waterway over to Panama in 1999, Rubio tells Panama President Mulino
  • After his meeting with Rubio, Mulino said Panama would not be renewing its agreement with China’s Belt and Road Initiative when it expires

PANAMA CITY: US Secretary of State Marco Rubio brought a warning to Panamanian leader José Raúl Mulino on Sunday: Immediately reduce what President Donald Trump says is Chinese influence over the Panama Canal area or face potential retaliation from the United States.
Rubio, traveling to the Central American country and touring the Panama Canal on his first foreign trip as top US diplomat, held face-to-face talks with Mulino, who has resisted pressure from the new US government over management of a waterway that is vital to global trade.
Mulino told reporters after the meeting that Rubio made “no real threat of retaking the canal or the use of force.”
Speaking on behalf of Trump, who has demanded that the canal be returned to US control, Rubio told Mulino that Trump believed that China’s presence in the canal area may violate a treaty that led the United States to turn the waterway over to Panama in 1999. That treaty calls for the permanent neutrality of the American-built canal.
“Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the treaty,” the State Department said in a summary of the meeting.

Panama's President Jose Raul Mulino (L) greeting US Secretary of State Marco Rubio on arrival at the presidential palace in Panama City on February 2, 2025. (AFP)

The statement was unusually blunt in diplomatic terms, but in keeping with the tenor and tone Trump has set for foreign policy. Trump has been increasing pressure on Washington’s neighbors and allies, including the canal demand and announcing Saturday that he was imposing major tariffs on Canada and Mexico. That launched a trade war by prompting retaliation from those close allies.
Mulino, meanwhile, called his talks with Rubio “respectful” and “positive” and said he did not “feel like there’s a real threat against the treaty and its validity.”
The president did say Panama would not be renewing its agreement with China’s Belt and Road Initiative when it expires. Panama joined the initiative, which promotes and funds infrastructure and development projects that critics say leave poor member countries heavily indebted to China, after dropping diplomatic recognition of Taiwan and recognizing Beijing.
Rubio later toured the canal at sunset with its administrator, Ricaurte Vásquez, who has said the waterway will remain in Panama’s hands and open to all countries. Rubio crossed the lock and visited the control tower, looking down over the water below, where a red tanker was passing through.
Earlier, about 200 people marched in the capital, carrying Panamanian flags and shouting “Marco Rubio out of Panama,” “Long live national sovereignty” and “One territory, one flag” while the meeting was going on. Some burned a banner with images of Trump and Rubio after being stopped short of the presidential palace by riot police.

Panama activists take to the streets in Panama City to protest US Secretary of State Marco Rubio's diplomatic visit to discuss the Panama Canal and immigration with President Jose Raul Mulino on February 2, 2025. (REUTERS)

Rubio also pressed Trump’s top focus — curbing illegal immigration — telling Panama’s president that it was important to collaborate on the work and thanked him for taking back migrants. Rubio’s trip, however, comes as a US foreign aid funding freeze and stop-work orders have shut down US-funded programs targeting illegal migration and crime in Central American countries.
In a Wall Street Journal opinion piece on Friday, Rubio said mass migration, drugs and hostile policies pursued by Cuba, Nicaragua and Venezuela have wreaked havoc, and port facilities at either end of the canal are run by a China-based company, leaving the waterway vulnerable to pressure from the Beijing government.
“The president’s been pretty clear he wants to administer the canal again,” Rubio said Thursday. “Obviously, the Panamanians are not big fans of that idea. That message has been brought very clear.”
Despite Mulino’s rejection of any negotiation over ownership, some believe Panama may be open to a compromise under which canal operations on both sides are taken away from the Hong Kong-based Hutchison Ports company, which was given a 25-year no-bid extension to run them. An audit into the suitability of that extension is already underway and could lead to a rebidding process.
What is unclear is whether Trump would accept the transfer of the concession to an American or European company as meeting his demands, which appear to cover more than just operations.
Rubio’s trip, which will also take him to El Salvador, Costa Rica, Guatemala and the Dominican Republic, comes amid a freeze in US foreign assistance. The State Department said Sunday that Rubio had approved waivers for certain critical programs in countries he is visiting but details of those were not immediately available.


Elon Musk brands USAID as ‘criminal organization’ in growing row

Elon Musk brands USAID as ‘criminal organization’ in growing row
Updated 03 February 2025
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Elon Musk brands USAID as ‘criminal organization’ in growing row

Elon Musk brands USAID as ‘criminal organization’ in growing row
  • More USAID officials removed from posts as Trump’s team moves to abolish the agency’s independence
  • Trump has ordered a freeze on almost all US foreign aid oending a review of its spending to ensure money is distributed in line with his “America First” foreign policy

WASHINGTON: US billionaire Elon Musk attacked the US Agency for International Development on Sunday, calling it a “criminal organization” after President Donald Trump moved to freeze the bulk of Washington’s foreign assistance for three months.

USAID, an independent agency established by an act of Congress, manages a budget of $42.8 billion meant for humanitarian relief and development assistance around the world.

But it is one of the targets of the so-called Department of Government Efficiency (DOGE) headed by Musk, whom Trump has tasked with cutting the government workforce and slashing what the Republican calls waste and unnecessary spending.

Trump ordered a freeze on almost all US foreign aid, saying his administration will review spending to ensure money is distributed in line with his “America First” foreign policy.

The Trump administration has since issued waivers for food and other humanitarian aid. But aid workers say uncertainty reigns — and that the impact is already being felt by some of the world’s most vulnerable.

USAID is a criminal organization,“ Musk wrote on his X platform, replying to a video alleging USAID involvement in ”rogue CIA work“ and ”internet censorship.“

In a subsequent post, Musk doubled down and, without giving evidence, asked his 215 million X followers, ”Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including Covid-19, that killed millions of people?“

He did not elaborate on the allegations, which officials in the previous administration linked to a Russian disinformation campaign.

Mayhem

Two top USAID security officials were reportedly removed during the weekend after they tried to stop DOGE representatives from gaining access to restricted parts of the building, three sources said on Sunday.

The action added to the dozens of staff at USAID being removed from their positions, as Trump’s team moves to abolish the agency’s independence and possibly bring it under the control of the State Department.

USAID’s account on X had been disabled, and the agency’s website was still offline.

Nearly 30 career staff in the agency’s Legislative and Public Affairs bureau lost access overnight to their emails, at least five sources said, bringing the total number of senior USAID career staff who have been put on leave over the past week close to 100.

“DOGE did access the building yesterday,” a senior Senate Democratic aide said, requesting anonymity to discuss the incident. USAID security officers tried to turn away DOGE personnel without security clearances.

“They (security personnel) were threatened with action by the federal Marshals Service,” the aide said. Following the incident, the director of USAID security John Voorhees and his deputy were removed from their positions and put on leave, sources said.

Members of the group from DOGE were allowed to access several secure spaces, including the office of security and the agency’s executive secretariat.

There was no record of what information DOGE officials were able to obtain in those areas, but the offices they accessed included classified files and personal information about Americans who work at USAID, the sources said.

Katie Miller, a DOGE spokesperson, said on social media platform X that no classified material was accessed without proper security clearances.

Matt Hopson, who was appointed as chief of staff by the Trump administration, has resigned, five sources familiar with the matter said. A congressional source said his resignation followed the incident with DOGE officials. USAID did not respond to a request about Hopson.

Legal battle looms

Congressional Democrats said the changes appeared to violate US laws establishing USAID and funding it as a separate agency. Two senior Senate Democratic aides said lawmakers and staff had been meeting on Sunday and would meet again on Monday to consider further steps, including legal action.

Senior Democratic members of the Senate Foreign Relations Committee including its chair Jeanne Shaheen on Sunday sent a letter to US Secretary of State Marco Rubio seeking an explanation over the incident. Shaheen said that she was working to gather Democrats and Republicans to ask for answers.

The global freeze on most of US foreign aid is already sending shockwaves around the world. Field hospitals in Thai refugee camps, land mine clearance in war zones, and drugs to treat millions suffering from diseases such as HIV are among the programs at risk of elimination.

US House Foreign Affairs Committee Chair Brian Mast on Sunday said that he would support moving USAID under the State Department and that there needs to be “more command and control.’

Asked on CBS’ “Face the Nation” if congressional approval was needed or whether Trump could act unilaterally, Mast did not answer. The “purging of people throughout the State Department, other agencies” and freezing aid were “all very important and necessary steps to make sure that we secure America,” he said.

The State Department and USAID did not respond to requests for comment.