Regulating DeFi Risk

The preceding five parts of this series have argued that elimination of riba cannot be achieved by changing the vocabulary of finance. We began with definition, moved to creation of money, separated transaction deposits from investment capital, examined productive finance based on ownership and genuine risk, and then placed Bait-ul-Mal, waqf, zakat and qard hasan within a wider system of social protection. The final question is no longer conceptual. It is legislative. Pakistan now has a date. The Constitution (Twenty-sixth Amendment) Act, 2024 substituted Article 38(f) with the direction to “eliminate riba completely before the first day of January, two thousand twenty-eight”. The constitutional deadline reinforces the Federal Shariat Court’s 2022 judgment in the Riba cases, reported as PLD 2023 FSC 47. The problem is that a deadline does not itself create a new financial order. The Finance Division’s Post-2027 Financial System in Pakistan contains useful work on Sukuk, liquidity facilities, legislation, safety nets, technology and capacity building. It nevertheless remains a strategy, not a Prohibition of Riba law. More importantly, some of its transitional assumptions sit uneasily with the word “completely”. Majority foreign-owned institutions may decide voluntarily whether to convert; conventional obligations contracted before the deadline may continue according to their terms until maturity; and fresh foreign financing is contemplated through Shariah-compliant modes subject to availability of reasonable options. These concerns are understandable from the perspective of financial stability. They cannot become permanent legal exceptions. Pakistan therefore needs an umbrella Prohibition of Riba Act, enacted well before the constitutional cut-off, accompanied by consequential federal and provincial amendments [Who will draft Riba Prohibition Law? Minute Mirror, April 7, 2026]. Its first task must be the one identified in Part I: define what is prohibited. The law should distinguish a loan or debt carrying a stipulated increase because of time from lawful consideration arising from genuine sale, lease, service, partnership or productive risk. Courts and regulators should be empowered to examine connected contracts as one economic arrangement. A murabaha, ijarah, musharakah or Sukuk should not become immune from scrutiny merely because recognised Islamic terminology appears in its documents. The second requirement is a clear cut-off rule. No bank, financial institution, government agency or other regulated person should be permitted to originate a new interest-bearing financial contract in Pakistan after December 31, 2027. The prohibition must be activity-based, not ownership-based. A transaction cannot change its constitutional character because shareholders of the institution happen to be foreign. This is also the weakness we identified earlier in examining the Government’s strategy paper. Existing liabilities require different treatment. Pakistan cannot simply repudiate sovereign bonds, multilateral obligations or private contracts. That would replace one problem with default, litigation and financial isolation. The law should instead require a complete register of every conventional obligation extending beyond the cut-off: principal, return, maturity, governing law, creditor, refinancing possibility and proposed conversion date. Contracts capable of consensual refinancing should be converted. Those that cannot immediately be altered should continue only under a transparent transitional schedule with definite sunset dates, rather than receiving an indefinite exemption merely because they were signed before 2028. The third issue concerns money itself. Part II argued that commercial-bank money creation is not automatically riba. The power to create purchasing power through credit is nevertheless too important to remain outside reform. Parliament should require a time-bound examination of sovereign transaction money, reserve arrangements and separation of monetary creation from productive financial intermediation. This question should be decided upon economic evidence and institutional consequences, not theological assertion. Part III then demonstrated why payment accounts and investment accounts require legal separation. Money held for immediate payment and nominal safety should not be treated as risk capital. Funds deliberately invested for commercial return should carry transparent exposure to the enterprises and assets from which that return arises. Deposit protection against institutional failure must similarly be distinguished from a State guarantee against every commercial investment loss. The fourth area is productive finance. The law should protect genuine murabaha, ijarah, salam, istisna, musharakah, mudarabah and other permissible arrangements while prescribing minimum standards of ownership, possession, disclosure and risk. Shariah audit should examine economic substance rather than merely documentation. Taxation must also become neutral. Equity participation, leasing and genuine asset transactions should not suffer additional fiscal costs merely because legislation was historically designed around conventional debt. Public finance cannot remain outside this discipline. Government should not treat Sukuk merely as a technique for reproducing conventional borrowing against whatever public assets can be placed in a registry. The official strategy itself proposes an Assets Registry Company and expanded hybrid Sukuk issuance. Sovereign instruments must confer genuine economic rights and corresponding responsibilities rather than provide documentary assets solely to support a predetermined financial return. Fiscal reform is inseparable from elimination of riba. No monetary arrangement can remain sound where governments continuously borrow merely to finance structural deficits. Monetary policy requires the same intellectual honesty. The Government’s strategy envisages Shariah-compliant open-market operations, standing facilities and liquidity arrangements. These are necessary developments, but changing contractual forms will not be enough if their sole objective becomes mechanical reproduction of the existing interest-rate corridor. SBP ultimately needs a transparent post-riba monetary framework explaining liquidity creation and absorption, lender-of-last-resort assistance, foreign-exchange operations and monetary transmission. The fifth element takes us beyond banking altogether. Part V argued that riba flourishes not only because creditors seek gain but also because human beings are compelled by need. A successful transition must therefore strengthen Bait-ul-Mal, professionally governed public waqf lillah, independently administered zakat and revolving qard hasan funds. Essential healthcare, education, disability support and subsistence during genuine incapacity should never become markets for financial extraction. Local cooperative institutions should provide the bridge from protection to participation. The lesson drawn from Rabobank was not that Pakistan should import a Dutch banking model. It was that communities can mobilise their resources and build productive institutions from below. Properly regulated cooperatives can gradually shift economic power away from patrons and concentrated financial interests towards citizens themselves. Governance is consequently as important as Shariah nomenclature. Pakistan

Pakistan’s electricity sector is witnessing a quiet revolution. Between January 2024 and June 2026, the country imported more than 6 GWh of lithium-ion batteries, with monthly imports rising to 652 MWh in April 2026, according to the latest commentary by the Policy Research Institute of Market Economy (PRIME). The data confirms what many consumers already know: battery storage is rapidly becoming an integral component of Pakistan’s emerging distributed energy system. Against this backdrop, the proposal reportedly advanced by the Adviser to the Power Division, Syed Faizan Ali, to introduce Time-of-Use (ToU) net billing with an additional compensation of Rs18–22 per kWh for electricity discharged between 5 pm and 10 pm deserves serious attention. It represents one of the first attempts by policymakers to recognise battery storage as an active participant in the electricity market rather than merely a backup power source. PRIME has welcomed this initiative in its recent Prime Comment #44, “Turning Pakistan’s Battery Boom into a Grid Asset”, arguing that battery storage can transform millions of privately owned batteries into valuable grid resources capable of reducing evening peak demand and improving overall system efficiency. The think tank also reminds readers that in its April 2026 Prime Plus edition, PRIME  had advocated accelerated investment in Battery Energy Storage Systems (BESS) as part of Pakistan’s response to regional geopolitical tensions and growing concerns over energy security. The proposal is intellectually attractive. It recognises a simple economic truth: electricity stored during periods of abundant solar generation becomes considerably more valuable when discharged during the evening peak. Properly designed price signals can therefore encourage consumers to invest in storage while simultaneously reducing pressure on the national grid. The underlying economics are difficult to dispute. The policy conclusions, however, deserve far closer scrutiny. Pakistan’s electricity crisis has never been merely a shortage of technology. It has always been a crisis of institutions. For decades, governments have attempted to resolve structural failures through new incentives while leaving untouched the governance failures that created those problems in the first place. Capacity payments, guaranteed returns, fuel subsidies, cross-subsidies, circular debt financing and administratively determined tariffs all originated as seemingly sensible policy responses. Over time, they evolved into a complex web of distortions that now define Pakistan’s power sector. The battery revolution should not become the latest chapter in this history. The most immediate question concerns the proposed compensation itself. Every additional rupee paid for exported battery electricity ultimately has a source. If the payment is financed through higher consumer tariffs, ordinary electricity users subsidise battery owners. If financed through public resources, taxpayers assume another fiscal obligation. Unless the proposed payment reflects demonstrable savings through lower capacity utilisation, reduced reliance on expensive peaking generation, avoided transmission investments and lower fuel imports, it risks becoming another subsidy disguised as reform. The second issue concerns Pakistan’s peculiar electricity economics. The country simultaneously suffers from surplus installed generation capacity and shortages during particular hours of the day. Consumers continue paying enormous capacity charges even when power plants remain idle. Before introducing payments for battery discharge, policymakers should demonstrate whether distributed storage actually reduces these fixed obligations or merely shifts electricity from one time period to another while capacity payments continue unchanged. This distinction is fundamental. If batteries merely redistribute electricity without lowering total system costs, consumersmay simply end up paying twice: once for idle generating plants and again for battery incentives. PRIME’s analysis correctly highlights the dramatic increase in battery imports. Nevertheless, imports alone cannot determine public policy. Customs statistics reveal the volume of batteries entering Pakistan but not how they are ultimately deployed. Many imported batteries are likely destined for residential solar systems, telecommunications infrastructure, commercial backup systems, electric vehicles and industrial facilities rather than grid-support applications. Policy requires greater precision. Residential battery storage serving a single household differs fundamentally from utility-scale storage capable of providing ancillary grid services. The regulatory treatment, compensation mechanisms and operational obligations cannot be identical. Perhaps the most important omission concerns the electricity market itself. Time-of-Use pricing presupposes the existence of a reasonably competitive electricity market where prices reflect actual system conditions. Pakistan, however, continues to operate largely through administratively determined tariffs, long-term power purchase agreements and regulatory pricing decisions. Introducing another administratively determined premium without competitive price discovery risks creating fresh opportunities for regulatory arbitrage instead of improving market efficiency. The proposal also raises important questions of distributive justice. Battery storage remains concentrated among relatively affluent households and commercial consumers who have already invested in rooftop solar systems. Additional payments for exported electricity may transfer resources from ordinary grid-dependent consumers to wealthier “prosumers” capable of producing electricity themselves. A sound public policy must ask not only whether incentives improve efficiency but also who ultimately pays for them. Fiscal sustainability presents another challenge. Pakistan’s public finances remain under extraordinary pressure. Circular debt continues to impose significant costs upon the national exchequer while electricity subsidies consume scarce fiscal space. Every new incentive introduced into the power sector should be accompanied by transparent estimates of its medium-term fiscal consequences. Without such analysis, even economically desirable policies may produce unsustainable budgetary commitments. The environmental dimension deserves equal attention. Large-scale deployment of lithium-ion batteries inevitably raises questions concerning recycling, disposal, fire safety and hazardous waste management. Pakistan presently lacks a comprehensive legal and regulatory framework governing battery end-of-life management. Encouraging rapid battery adoption without simultaneously addressing environmental responsibilities merely postpones another policy problem for the future. Cybersecurity also enters the equation. As distributed storage becomes increasingly integrated with smart meters, digital communication systems and automated dispatch mechanisms, cybersecurity standards become an essential component of electricity regulation rather than an afterthought. The broader lesson extends beyond batteries. Pakistan’s remarkable solar revolution demonstrates that citizens and businesses are increasingly solving their own energy problems because the formal electricity system has become prohibitively expensive and unreliable. International observers have correctly described this transformation as one of the world’s most significant examples of consumer-led energy transition rather than state-led planning. Public policy should seek to complement—not constrain—this transition. However, complementing it

The signing of the Mecca Joint Defence Agreement by Pakistan, Saudi Arabia and Türkiye on August 7 has opened a new and potentially consequential chapter in the security architecture of Asia and the Gulf. The agreement states that an armed attack against any one of the three countries will be regarded as an attack against all three, while envisaging deeper military coordination, joint exercises, intelligence cooperation and collaboration in areas including drones, electronic warfare, artificial intelligence and defence production. Türkiye has also indicated that the framework could eventually be expanded to other countries. What makes the development particularly significant is not simply the agreement itself, but the reaction from Washington. President Donald Trump has welcomed the pact as a “big, bold, important first step” towards regional countries being able to defend themselves more meaningfully. His words raise a larger strategic question, is the United States beginning to transfer a greater share of the burden of confronting Iran to regional powers, particularly the Gulf and Asian countries? Or making this region as its main combatant force against Iran? And what are the possible next steps? The answer is more complicated than a simple American withdrawal. Washington is unlikely to abandon the Middle East, its military assets, intelligence networks, diplomatic influence or relationships with Gulf states. What appears to be changing is the distribution of responsibility. The Trump administration’s broader philosophy of burden-sharing suggests that countries possessing substantial financial, military and strategic resources should assume greater responsibility for their own security rather than expecting Washington to carry the entire cost. In that sense, America may not be handing over the war against Iran, but it may be regionalising the consequences of that war. The distinction is crucial. A regionalised conflict can become much more dangerous because the number of actors involved increases. At the same time, regional ownership of security could eventually create a framework in which regional states themselves negotiate a new balance rather than remaining permanently dependent on an external power. The Pakistan-Saudi relationship provides the foundation for this transformation. The two countries signed their Strategic Mutual Defence Agreement in September 2025, committing themselves to collective security. The new Mecca agreement effectively brings Türkiye into a much broader strategic framework. Each country brings a different strategic asset. Saudi Arabia possesses enormous financial resources, energy influence and geographical importance. Türkiye brings one of the region’s most capable conventional militaries, a rapidly developing indigenous defence industry, drone technology and NATO experience. Pakistan brings a large and experienced military establishment and, uniquely among Muslim-majority states, a nuclear deterrent. The combination therefore has significance beyond its three signatories. It links the Gulf, South Asia and the eastern Mediterranean in a single security conversation. For Saudi Arabia, the agreement represents strategic insurance. Riyadh has increasingly understood that sophisticated American weapons alone cannot eliminate vulnerabilities created by missiles, drones, cyberwarfare and attacks on energy infrastructure. Diversifying its security relationships allows Saudi Arabia to maintain its partnership with Washington while simultaneously developing alternative sources of military capability. For Türkiye, the pact fits into Ankara’s long-standing ambition to exercise greater strategic autonomy. Türkiye remains a NATO member, but it has increasingly demonstrated that it does not want its foreign policy to be dictated by any single great power. A defence relationship stretching from Türkiye through Saudi Arabia to Pakistan expands Ankara’s influence across two strategically vital regions. For Pakistan, however, the equation is much more delicate. Pakistan has the opportunity to emerge as an important security bridge between South Asia and the Gulf, but it also has a geographical reality that cannot be ignored, it shares a border with Iran. Islamabad cannot afford to treat Tehran simply as an enemy without exposing itself to enormous security, economic and diplomatic risks. Pakistan therefore faces the most difficult balancing act of the three. Its relationship with Saudi Arabia is strategically important. Its relationship with Türkiye is deepening. Its partnership with China remains fundamental. Its relationship with the United States is economically and strategically significant. Yet Iran is its immediate western neighbour, with which it shares a long border and important diplomatic and economic interests. This makes Pakistan potentially more valuable as a mediator than as a frontline combatant. If Islamabad can defend Saudi Arabia while simultaneously maintaining communication with Tehran, it could acquire an extraordinary diplomatic role. Pakistan could become one of the few countries capable of speaking to the Gulf, Iran, Türkiye, China and Washington at the same time. That possibility is already visible in Pakistan’s efforts to maintain diplomatic engagement with Iran while navigating its defence commitments to Saudi Arabia. The Iranian response will be critical. Although the three countries have described the agreement as defensive rather than an alliance directed against a particular state, Tehran will inevitably examine its military implications. A coordinated Saudi-Turkish-Pakistani security structure potentially means improved intelligence, air defence, military exercises, drone capabilities and defence-industrial cooperation around Iran’s strategic neighbourhood. But this could produce two very different outcomes. The first is escalation. Iran could interpret the emerging architecture as an attempt to encircle it and respond by strengthening its missile forces, regional partnerships and asymmetric capabilities. The Gulf could then become increasingly militarised, with every defensive measure interpreted by the other side as preparation for aggression. The second possibility is deterrence leading eventually to diplomacy. If Iran concludes that it cannot achieve regional dominance through military pressure, while Saudi Arabia and other Gulf states conclude that permanent dependence on American protection is neither sufficient nor sustainable, both sides may eventually have an incentive to negotiate a regional security arrangement. That would be the more constructive outcome. The danger, however, is that the emerging alliance could be interpreted through a sectarian lens. Saudi Arabia, Türkiye and Pakistan are all Sunni-majority states, while Iran is the region’s principal Shia power. If the new security architecture becomes identified as a Sunni military bloc confronting Shia Iran, it could revive precisely the sectarian competition that has destabilised the Middle East for decades. Pakistan should be particularly careful

Kashi with its rich culture is becoming a hub of tourism, industry. Despite being very close to Pakistan border with Kashi, the aerial trade is being very limited. We are not making a full use of our land link with China. That is not passing a positive impact for the regional economy. Our natural reserves for mines and minerals are one of the biggest resource that we can exchange with China; such as an export for the raw material using the land route, what more specifically if our gov is very vigilant, they can invite the Chinese investors from this region specifically, to extract mines and minerals, but thing that can change the economy of this entire region mainly depends if we can convince Chinese investors to invest in this particular region of Gilgit for the purification of metals. Vice President Pakistan-China Joint Chamber The other best way is the tourism and the hospitality. We need to engage the tourism groups who can be helpful to attract the Chinese people who want to cross over Khunjarab pass to Pakistan. I have noticed many people of this region very much interested to cross the Khunjarab pass to get an access to Pakistan side. Further I want to make you sure that the plateau of the Pakistan side is considered to be one of the most beautiful natural plateau in the world. Culturally this area have been preserved very well, including the ancient buildings such as centuries old. Food is one of the best attraction and the delicacies, it is commonly believed that Ice cream originally started from this region. Similarly, there is a long route which is called the inner wall of the city have a long cue of traditional restaurants with hundreds of options. Paya the lamb foot, is named the same in Kashi language same as pulao, naan, kabab, and many other words. I have never seen a variety of naans in all over sub continent. The same i saw only in Kashi. They also produced a qeema naan (meat) which is one of the delicacy of this region. I conceived an idea that the concept of pizza and spaghettis was stolen by Marco Polo in the 13th century from this region and was taken to Italy. That is why till today spaghettis and pizza is one a famous dish in Italy. But nowhere else in Europe. Bar b que globally I have been to many countries but the best natural taste of bar b que is in this region. Mostly they use lamb, sheep, and beef to make this bar b que. Similarly, pulao was originated from Xinjiang in this region. So, it traveled all the way to subcontinent. The pulao I tasted in Kashi, was one of the best delicacy. It added up with dried grapes. They also love to serve it with the yogurt. Kabab, shawarma have many kind of faces, the region have a lot of shapes for kabab mostly by the meat of sheep. These people like to eat the fats more often Ly than our region. The weather of this area is very harsh as it climbs p to 40 degrees in hot season while drop down to minus -25 in the cold season. Because of this harsh weather the living condition of the normal people have totally been changed. This harsh weather physically converted theses people as a very tough nation. But the other impact of this weather is that this area is mostly dry and even the mountains are mostly barren. Tea is one of a natural product of this area with many kind of teas to be offered. Flower tea is one of the famous tea from this area which is commonly believed to keep a face fresh. But there are multiple kind of teas available in this region. Walking through the streets of Kashi there are hundred of shops, as I mentioned dry fruits are one of the basic product of this region, I have never seen the variety of dry fruits that I found in Kashgar, is indescribable. They are genuine dry fruit lovers providing of hundreds of kinds of dry fruit. The way they preserve it and roast it with the honey, this technology we may need to learn from them. The use of metal and handicrafts especially in the form of brass I have observed are the best in the whole world. Where the use of art work by hand was even more inspiring. Alladin was one of the story that we listen from our childhood, actually this story was also originated in this region. Same as Alibaba, which is one of the oldest tale we always listening from centuries. And who can forget the famous stories of Ali baba with forty thieves. These all stories were originated from the same region. The beauty of this area along with the traditional dresses of the girls that are still very popular in subcontinent. There were a lot of tea houses with a history of more than a hundred years traditionally serving their local tea. Most of the tea houses have the people playing their traditional music and that is so fascinating that you can spend hours to listens that music. The rhythm will really mesmerize you. In my next article I will describe about the traditional restaurants and their dances as performance. To be continued..

By Waqar Malik The foundation of independent, responsible, and impartial journalism is balance, honesty, and fairness. Criticism is an essential part of journalism; however, a true understanding of any country’s situation requires a comprehensive view of its historical, political, economic, regional, and security circumstances. A one-sided analysis may highlight certain realities, but it cannot represent the complete picture. The German newspaper DW has raised several concerns and critical observations regarding Pakistan’s political, economic, and security situation. No country should be considered beyond criticism, and accountability is an important element of democracy. However, criticism must also be accompanied by balance, context, and a comparative perspective. If the challenges of a country are discussed, its sacrifices, achievements, and ground realities should also be presented with equal fairness. Pakistan is often portrayed as a country facing political instability, economic difficulties, and security challenges. However, an important question remains: is there any country in today’s world that is completely free from such challenges? Inflation, unemployment, political disagreements, social issues, and governance challenges are not unique to Pakistan. They are global realities affecting nations across the world. Germany, one of the world’s leading economies, is facing economic pressures, including rising energy costs, challenges within its industrial sector, concerns regarding employment, and economic uncertainty. Similarly, countries such as the United Kingdom, France, and the United States continue to experience inflation, political divisions, public protests, and social challenges. Therefore, highlighting the problems of one country while ignoring similar difficulties faced by others cannot be considered a complete and balanced analysis. Every nation must be understood within the context of its own history, geography, political environment, and security needs. Freedom of Expression: Is Pakistan Being Judged by a Different Standard? Pakistan is frequently criticised regarding freedom of expression, democratic values, and human rights. Such discussions are necessary in every democratic society. However, an important question must also be asked: is Pakistan being judged by the same standards applied to other countries? In Pakistan, political leaders, opposition representatives, journalists, lawyers, and members of civil society openly express their views on governments, state institutions, and national affairs. Political debates, speeches, and different opinions are widely discussed through media platforms. On various occasions, statements from detained political figures have also been reported prominently in the media. This raises an important comparative question: do individuals in custody in countries such as the United States, the United Kingdom, France, or Germany receive exactly the same level of media access and opportunity to express their political views? In many democratic countries, detention laws are strictly implemented, and access to media is regulated according to legal procedures. Therefore, discussions about Pakistan’s freedom of expression should also consider international comparisons and broader realities. The right to peaceful protest is a fundamental democratic right, and Pakistan’s Constitution recognises this principle. However, every right comes with responsibilities. Pakistan has witnessed political protests that have continued for weeks and, in some cases, months. On certain occasions, major roads were blocked, public life was disrupted, and damage to public and private property was reported. Despite these challenges, governments have often chosen dialogue, patience, and political engagement instead of excessive use of force. In every democracy around the world, the right to protest exists within the framework of law. No democratic society allows violence, vandalism, threats, or the disruption of public order under the name of political expression. Pakistan should neither seek exceptional treatment nor be judged by different standards. The Role of Pakistan’s Armed Forces and National Defence Some analysts describe Pakistan’s political system as a hybrid system. However, another important perspective also deserves consideration. Pakistan’s armed forces have made significant sacrifices for national defence, security, and the fight against terrorism. Thousands of soldiers and officers have lost their lives while protecting the country’s sovereignty, stability, and security. Pakistan’s geographical position places it in a complex security environment. Located at the crossroads of South Asia, Central Asia, and the Middle East, Pakistan faces unique regional and international challenges. There is also criticism that Pakistan’s armed forces are involved in business and commercial activities. However, this matter can also be viewed from another perspective. Pakistan’s defence requirements are extensive, and investments in various institutions and projects are aimed at supporting defence needs, welfare activities, and reducing unnecessary pressure on national resources. Many countries around the world allow their military institutions to participate in research, technology, industry, development projects, and humanitarian activities. The United States and other developed nations have similar examples where defence-related organisations contribute to national development and innovation. Therefore, such policies should be assessed on the basis of national interest, transparency, effectiveness, and contribution to society rather than through criticism alone. For more than four decades, Pakistan has paid a heavy price due to regional conflicts and global security challenges. The consequences of the war in Afghanistan, participation in the international fight against terrorism, hosting millions of refugees, and the loss of thousands of precious lives have deeply affected the country. Pakistan has made enormous sacrifices in combating terrorism and has achieved significant successes in restoring security and stability. Despite these challenges, Pakistan continues to contribute towards regional peace and international cooperation. The Kashmir dispute remains one of the longest unresolved conflicts in South Asia. Pakistan supports the right of the Kashmiri people to self-determination in accordance with relevant United Nations resolutions and continues to advocate a peaceful and diplomatic solution. Pakistan’s stated position has consistently been based on dialogue, diplomacy, and peaceful engagement. Sustainable peace in South Asia can only be achieved through mutual respect, understanding, and peaceful resolution of disputes. The Situation in Azad Kashmir and the Government’s Approach The situation in Azad Kashmir demonstrates the importance of dialogue and political engagement during times of tension. A responsible state must ensure law and order, protect the lives and property of citizens, and seek constitutional and democratic solutions to public concerns. The right to protest is a democratic right, but it cannot justify violence, firing, destruction of property, threats against state institutions, or taking the law into

Just as the BRB Canal is often regarded as Lahore’s lifeline, the Indus River occupies a similar position for Sindh. It is, therefore, unsurprising that the river has remained at the center of the province’s political discourse for decades. Yet, since the passage of the 18th Constitutional Amendment, few issues have continued to unite Sindh’s population across political divides and enable a collective political stance at the federal level. Today, the province’s politics remains broadly divided between urban and rural Sindh. In rural Sindh, apart from disputes over canals and water resources, there appears to be no issue capable of sustaining political mobilization against either Punjab or the federal government. As a result, water politics has become the principal rallying point for several nationalist parties. At times, this has also led to exaggerated claims or misleading narratives. The political logic is evident: abandoning canal politics would require these parties to confront more entrenched issues within Sindh itself, including feudal dominance, decades of corruption and the continued exploitation of ordinary citizens. The recent trial inauguration of the Jalalpur Canal briefly generated political unrest in Sindh. However, the initial wave of anger faded almost as quickly as it emerged. As videos showing water flowing through the canal circulated on social media, several anti-Punjab groups directed their criticism primarily towards Punjab rather than questioning the Sindh government. Arguably, the first questions should have been asked of the province’s own elected representatives. Why was the public not adequately informed about the project’s legal and administrative status? And why was Sindh unable to pursue its case more effectively through political and institutional channels? The concerns expressed by Sindh are neither new nor insignificant. By the time the Indus reaches the province, river flows have already declined substantially, affecting agriculture, fisheries and the livelihoods of communities living in the lower riparian region. At the same time, the Indus Delta continues to deteriorate while groundwater levels have fallen to alarming levels. Against this backdrop, many in Sindh believe that any additional diversion of water through projects such as the Jalalpur Canal could further reduce the province’s already constrained water availability. Punjab, however, has consistently maintained that the Jalalpur Canal is not among the six canal projects over which Sindh has formally raised objections. It further argues that the Indus River System Authority (IRSA) issued the Water Availability Certificate for the project in 2014, when Sindh was represented on the authority by Mazhar Ali Shah. If Sindh considered the project objectionable, Punjab argues, why were those objections not raised at that stage? Likewise, why was the issue not pursued more effectively when the project was placed before the   Executive Committee of the National Economic Council (ECNEC) for approval and when construction subsequently commenced? Sindh, for its part, maintains that the Provincial Assembly adopted a formal resolution against the canal in 2021. Three years later, in 2024, the provincial government formally placed the matter before the Council of Common Interests (CCI). Punjab nevertheless rejected Sindh’s objections there as well, reiterating that the Jalalpur Canal did not fall within the six disputed canal projects that remain under contention between the two provinces. Politically, however, the episode exposed the Sindh government’s difficult position before its own electorate. The documentary record indicates that the provincial government had registered its reservations through official forums. Yet it failed to convert those institutional objections into an effective political narrative because Punjab’s position appeared stronger from both procedural and technical standpoints. This became particularly evident when Sindh Chief Minister Syed Murad Ali Shah acknowledged during a press conference that the Jalalpur Canal was not among the six canal projects to which Sindh had consistently objected. That admission effectively defused the anti-Punjab momentum that had briefly gathered pace following the canal’s trial inauguration. For years, the Pakistan Peoples Party (PPP) has sought to accommodate Sindh’s nationalist parties within the framework of mainstream politics by assuring them political representation at both the provincial and federal levels. At the same time, nationalist parties themselves appear conscious of the electoral limitations of their own rhetoric. Many recognise that slogans traditionally associated with nationalist politics, including “Pakistan Na Khappay”, may have limited appeal when competing with mainstream political parties in electoral politics.