Imran Khan was ousted as Pakistan prime minister by a no-confidence motion in parliament late on Saturday. AFP
Imran Khan was ousted as Pakistan prime minister by a no-confidence motion in parliament late on Saturday. AFP
Imran Khan was ousted as Pakistan prime minister by a no-confidence motion in parliament late on Saturday. AFP
Imran Khan was ousted as Pakistan prime minister by a no-confidence motion in parliament late on Saturday. AFP


Is Imran Khan's fight for a 'new Pakistan' only just beginning?


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April 10, 2022

Imran Khan's government in Pakistan has fallen after it lost a vote of no-confidence in the National Assembly late on Saturday. It leaves many wondering about how to make sense of this moment. On the one hand, it was the first such motion to be successfully carried out in the country's parliamentary history. On the other, however, Mr Khan's ouster has extended the streak of prime ministers failing to complete their term with a "normal" transfer of power.

Was it a victory for democracy or, as Mr Khan and his supporters claim, the defeat of popular sovereignty by foreign and domestic forces?

Neither framing captures the realities of Pakistan's "hybrid" political system, where the vote, the courts and the army all enjoy their own deep legitimacy with the public, although not necessarily with one another. Meanwhile, the constitution itself – although enjoying unquestioned legitimacy – does not offer a blueprint of how to actually reconcile these often competing power centres. This competition is one of the fundamental sources of the country's turbulence, and it is a picture that can only be painted in shades of grey.

In the first few decades after independence in 1947, the three main legs upon which Pakistan's political system rested were the army, the civil service and the propertied classes. Zulfikar Ali Bhutto, prime minister from 1973-77, was a pro-military figure who swept to power on a tide of populism. He subordinated the civil service to the politicians before falling out with his fellow politicos and the army. By the late 1980s, the courts – backed by the bar associations – had replaced the bureaucrats as an independent pillar of the system. The army eventually reconciled itself to this fact after the success of the Lawyers' Movement that deposed Gen Pervez Musharraf's military dictatorship in 2008. The "establishment" since then has been very much based on a consensus between the army and senior judiciary. Mr Khan advertised himself as the first honest politician to join that institutional consensus.

There are few happy endings in Pakistani politics in part because there are so few permanent endings

It should be noted here that individual civilian politicians are not necessarily always committed to liberal democracy. In fact, its most powerful have often attempted to consolidate power in an illiberal or unconstitutional manner, triggering political crises. This was what Bhutto did in the 1970s, Nawaz Sharif, another former prime minister, did in the 1990s, and what Mr Khan attempted to do after his election in 2018. By alienating other political parties and other powerful institutions, they rendered themselves vulnerable to overthrow – and they inevitably ushered in periods of greater military domination.

Like Bhutto, Mr Khan's rise was based on a nationalist blend of pro-military and populist politics that masked authoritarian tendencies. Like Bhutto, Mr Khan was noted for often displaying a grandiose sense of historical mission. And like Bhutto, he increasingly took refuge in anti-American populism as the impact of his sometimes polarising politics caught up with him.

It is also very likely that, like Bhutto, Mr Khan will not relent in his quest for power and will turn his populist rhetoric increasingly directly against the military, the judiciary, parliament and even the constitution. The military's quest for greater political stability and better economic governance will, therefore, only be partially fulfilled by Mr Khan's departure. We are likely to see an extended campaign of agitation aimed at mobilising support for the ousted prime minister and his party for the next election – scheduled, for now, to be held in August 2023 – and seeking to delegitimise the aforementioned power centres if they fail to deliver the outcome that Mr Khan desires.

The establishment's response to Bhutto's continued threat to stability after his removal in 1977 was brutally direct: they hanged him two years later. In doing so, they transformed Bhutto from a deeply divisive authoritarian into a political martyr that has haunted the military in particular ever since. It is unlikely that they will make the same mistake twice. There is one important difference, however: Bhutto was the favourite to win a fresh election initially planned in the aftermath of the coup; it appears unlikely that Mr Khan will be in the position to do the same.

Pakistan's opposition leaders Bilawal Bhutto Zardari, left, and Shehbaz Sharif in Islamabad last week. The Bhutto and Sharif dynasties have been united in recent years. AFP
Pakistan's opposition leaders Bilawal Bhutto Zardari, left, and Shehbaz Sharif in Islamabad last week. The Bhutto and Sharif dynasties have been united in recent years. AFP

It is probably unwise to predict the leadership and composition of the next government, but it is clear that Shehbaz Sharif, the brother of three-time former prime minister Nawaz, will play a significant role. Mr Sharif served three terms as a popular and effective chief minister of the province of Punjab, the most populous and politically significant unit within the country. The military's deep distrust of Nawaz, who has been legally barred from political office for life after he was ousted in 2017 over corruption charges, does not seem to extend to the other Sharif, who is seen as "reasonable".

Famous for his attention to detail and micro-managerial style of governance, a Sharif-guided government would make for a stark contrast with Mr Khan's seemingly ad-hoc decision-making style. His emphasis on physical infrastructure and technocratic competence may well strike a chord with many in the public. But he is also likely to face the same challenges as every other government in Pakistani history, including a no-holds-barred power struggle, massive structural economic challenges, and a watchful, resource-hungry military with more political levers than the government.

There are few happy endings in Pakistani politics in part because there are so few permanent endings. One branch of the Sharifs led by Shehbaz Sharif appears to be on the way up, while Mr Khan and his associates are on the way down. But we should not necessarily expect this to be any more permanent than any other moment in recent political history. Mr Khan and his party may be useful as a stick to keep the new government in line, or even as a back-up option if they prove too recalcitrant in the face of establishment's preferences.

For decades, the total political warfare between the Sharif and the Bhutto dynasties had largely benefitted the military. The truce they reached helped pave the way for the deepening of Pakistan's democracy from 2008 onwards; Mr Khan's chief legacy at this point is the disruption of that truce and the return of military pre-eminence. Perhaps now, having experienced the bitter fruits of such an intervention, he can join the civilian consensus and finally help create the "New Pakistan" that he has promised for so many years.

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While you're here
ESSENTIALS

The flights

Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes. 

The trip

From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.

UAE currency: the story behind the money in your pockets
Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

While you're here
Pieces of Her

Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick   

Director: Minkie Spiro

Rating:2/5

Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Company%20Profile
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The Case For Trump

By Victor Davis Hanson
 

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The years Ramadan fell in May

1987

1954

1921

1888

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Ad Astra

Director: James Gray

Stars: Brad Pitt, Tommy Lee Jones

Five out of five stars 

Race results:

1. Thani Al Qemzi (UAE) Team Abu Dhabi: 46.44 min

2. Peter Morin (FRA) CTIC F1 Shenzhen China Team: 0.91sec

3. Sami Selio (FIN) Mad-Croc Baba Racing Team: 31.43sec

Updated: April 13, 2022, 12:26 PM