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ISLAMABAD: A high court in Pakistan’s capital on Tuesday canceled the appointment of Major General (retired) Hafeez-ur-Rehman as the Pakistan Telecommunications Authority (PTA) chairman over violation of rules and favoritism.

Rehman was first appointed PTA member (administration) and in May 2023, he was appointed the chairman of the authority. The petitioner, Usama Khilji, challenged Rehman’s appointment as PTA member (administration), saying it was in contravention of PTA rules.

In his verdict, Islamabad High Court (IHC) judge Babar Sattar stated that Rehman’s appointment as the PTA chairman was not legally valid, adding that a senior member of the authority should be appointed as the chairman temporarily.

“The creation of the office of Member (Administration) and the appointment made under it are void and of no legal effect,” the judge stated in the verdict. “The recruitment process suffered from mala fide in law and lacked transparency.” 

The petitioner said the federal cabinet had not created any additional post and the announcement of the induction of a new member was in breach of the PTA appointment rules, which did not envisage the position of member (administration).

“The statutory criteria were tailored to induct a pre-determined individual… the increase in the age limit also suggests that the respondents have already been tipped as to who the Member (Administration) is to be, and the statutory criteria have been relaxed to accommodate the said person,” the verdict read. 

“Making appointments to public offices that are not the products of a transparent, comparative and manifestly fair process is not a right of an elected government or a matter of Executive policy, but an abdication of the required allegiance to the rule of law.” 

The IHC judge said since the entire process of Rehman’s appointment as the member (administration) and as the PTA chairman was found to “suffer from malice in law being the product of an unconstitutional and illegal recruitment process, he shall cease to hold such appointments and shall immediately relinquish charge.”

He ordered that the senior-most serving PTA member be given charge of the office of PTA chairman till the time the federal government appoints a regular chairman.

KARACHI: Pakistan’s finance ministry said on Tuesday the government had made record early repayments worth Rs2.6 trillion ($9.3 billion) across commercial and central bank obligations — the first such move in the country’s history — reducing rollover pressures and generating “hundreds of billions of rupees” in interest savings.

The announcement comes as Pakistan remains under the close watch of the International Monetary Fund (IMF) and global credit ratings agencies, after years of recurring balance-of-payments crises and repeated bailouts. Analysts say the country’s heavy reliance on short-term borrowing and vulnerability to currency swings have long fueled concerns about its ability to refinance maturing obligations.

Officials framed the early repayments as a signal that Pakistan is moving toward a more resilient debt profile.

“The government prepaid Rs2,600 billion before maturity across commercial and central bank obligations, reducing rollover and refinancing risks and generating hundreds of billions of rupees in interest savings,” the finance ministry said in a statement.

Beyond repayments, the ministry pointed to improvements in other debt indicators.

“The appropriate measure of sustainability is looking at debt relative to the size of the economy i.e., debt-to-GDP — not absolute rupee amounts,” it said. “By this yardstick, which is followed globally, Pakistan’s position has actually improved over the last few years, with the debt-to-GDP ratio declining from 74 percent in FY22 to 70 percent in FY25.”

Debt servicing costs also fell as interest rates eased in FY25, delivering Rs850 billion ($3 billion) in savings compared with budget estimates. Debt maturity profiles improved, with the average tenor of public debt rising to 4.5 years in FY25 from 4 years the year before.

On the fiscal side, the federal deficit narrowed to 6.2 percent of GDP in FY25 from 7.3 percent in FY24, while Pakistan posted a primary surplus of 2.4 percent of GDP (Rs2.7 trillion) for the second year in a row, a key IMF benchmark.

Officials also reported a $2 billion current account surplus in FY25, the first in 14 years, reducing Pakistan’s external financing needs. Part of the increase in external debt, the ministry said, reflected valuation effects from currency depreciation rather than new borrowing.

Key inflows included IMF disbursements under the Extended Fund Facility and bilateral support such as ��������’s oil financing facility, which did not require rupee financing.

“The government’s continued focus on debt-to-GDP reduction, early repayments, lower interest costs, and a stronger external account underscores its commitment to macroeconomic stability, reduced risk, and responsible fiscal management,” the statement said.

Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958.