ISLAMABAD: Pakistan’s central bank chief believes the country has the capacity and financial cushion to ride out rising external account pressures being driven by a surge in global commodity prices.
The pressure should ease as soon as central banks around the world tighten monetary policy, which is likely to curb rebounding global demand, he said.
“What we have to ensure is that we have the capacity to sustain ourselves through it...I believe we do,” State Bank of Pakistan (SBP) Governor Dr. Reza Baqir said in an interview with Reuters on Monday.
He said the surge in global commodity prices over the past few months was being driven by a sharp recovery in demand as economies bounced back from a COVID-induced slump.
“But as central banks begin to turn hawkish, it is going to moderate global demand growth; that in turn is what is going to bring down international commodity prices,” said Baqir, who previously worked at the International Monetary Fund.
“We (Pakistan) just have to get through it until this commodity supercycle ceases,” he said, adding that two thirds of the rise in the trade deficit over the past few months had been driven by surging global commodity prices. “One third of our typical (import) payments on any given day are oil payments...and you have seen how much oil prices have risen.”
The price of Brent crude rose 50 percent in 2021 and has rallied further in 2022.
Pakistan’s imports grew 65 percent year-on-year to over $40 billion in the first half of this financial year, while exports rose 25 percent to $15.1 billion. Over the same period, the trade deficit has more than doubled to $25.4 billion from $12.3 billion.
The current account balance meanwhile turned to a deficit in the current financial year, standing at $7.1 billion in the first five months compared to a $1.9 billion surplus over the same period last year.
The rapid rise in the country’s import bill has put a strain on its foreign exchange reserves. But Baqir said these were high enough to ride out the storm, while Pakistan’s adoption of a flexible exchange rate in 2019 provided an additional buffer.
Pakistan’s foreign exchange reserves stand at $24 billion, up sharply from $7.2 billion in 2018-19. Out of the $24 billion, $17.6 billion is currently held at the central bank.
“Our flexible exchange rate system is one of the institutional reforms that has happened in Pakistan that, in turn, will help to ensure the sustainability of our balance of payments,” Baqir said.
Pakistan’s central bank has lifted rates by 275 basis points to 9.75 percent since September to tackle a falling Pakistani rupee, high inflation and a current account deficit. The bank signalled in December that it was likely close to done with hiking rates in the near-term. The rupee has depreciated about 10 percent over the past six months against the dollar.
Pakistan’s consumer price index rose 12.28 percent in December from a year earlier, above the central bank’s upwardly revised 9 percent-11 percent target for this financial year.
“We are confident that they (inflation worries) will be suitably addressed by the measures that we have taken,” Baqir said.
Pakistan can ride out rising external account pressures — central bank chief
https://arab.news/8kwc8
Pakistan can ride out rising external account pressures — central bank chief
- Current account balance turned to deficit in current financial year, standing at $7.1 billion in first five months
- The rapid rise in the country’s import bill has put a strain on its foreign exchange reserves
Pakistan condemns Israeli attack on Rafah refugee camp, calls it ‘blatant defiance’ of ICJ ruling
- Israeli airstrikes killed at least 45 people on Sunday and ‘numerous’ others were trapped under debris
- Gaza’s Health Ministry said women and children made up most of the dead and dozens of wounded
ISLAMABAD: Pakistan condemns Israeli bombardment of tents for displaced Palestinians in the southern Gaza city of Rafah that killed dozens of people, the Pakistani Foreign Office said on Monday.
Palestinian health workers said Israeli airstrikes killed at least 45 people on Sunday and “numerous” others were trapped in flaming debris. Gaza’s Health Ministry said women and children made up most of the dead and dozens of wounded.
The attacks came two days after the International Court of Justice (ICJ) ordered Israel to end its military offensive in Rafah, where more than half of Gaza’s population had sought shelter before Israel’s incursion earlier this month.
“Targeting of individuals who were displaced earlier because of Israeli bombardment and were sheltered in a refugee camp, is yet another breach of international humanitarian law by the Israeli occupation forces,” the Pakistani Foreign Office said in a statement.
“The attack is also a blatant defiance of the additional provisional measures of 24 May 2024 by the International Court of Justice (ICJ) ordering Israel to immediately halt its military offensive in Rafah in conformity with its obligations under the Genocide Convention and the worsening humanitarian conditions faced by civilians.”
The case against Israel was initiated by South Africa in December 2023, where it labeled Israel’s actions in the Gaza Strip as “genocidal,” asserting that they intended to destroy the Palestinian people in ways specified under the 1948 Genocide Convention.
The war on Gaza broke out after Hamas attacks on Israel on October 7, which killed more than 1,100 people, in response to the deteriorating condition of Palestinian people living under Israeli occupation.
Israel launched a retaliatory offensive, widely viewed as disproportionate, in which more than 35,000 Palestinians, mostly women and children, have lost their lives, according to the Palestinian Health Ministry.
“Pakistan reiterates its demand for immediate and unconditional implementation of the orders of the ICJ of 24 May 2024. Measures must be taken to fully protect civilians in Gaza and the Israeli occupation forces must be held accountable for the Gaza genocide,” the Pakistan Foreign Office said further.
“We call on the UN Security Council to play its role in preventing Israel from any further attacks against the civilians in Rafah and taking effective measures to protect the people of Gaza.”
Pakistan does not recognize the state of Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
In recent months, the South Asian country has repeatedly raised the issue of Israel’s war on Gaza, launched last October, at the United Nations through its permanent representative, Ambassador Munir Akram.
Eight killed as jeep plunges into ravine in northwest Pakistan
- The incident occurred in the northwestern Shangla district after the driver lost control of the vehicle
- Road crashes are common in Pakistan, where traffic rules are rarely followed, roads are in poor condition
ISLAMABAD: Eight people, including women and children, were killed after a jeep plunged into a ravine in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, rescue officials said.
The incident occurred in KP’s Shangla district, when the driver lost control of the vehicle and it fell into the ravine, according a spokesperson of the Rescue 1122 service.
As a consequence, four women and three children were killed on the spot, while one person was injured who was shifted to the district headquarters hospital.
“A rescue team recovered bodies of the victims and handed them over to relatives,” the Rescue 1122 spokesperson said in a statement.
The spokesperson said the injured person later succumbed to his injuries at the hospital.
Road accidents are common in Pakistan, where traffic rules are rarely followed and roads, particularly in many rural areas, are in poor condition. In the country’s mountainous north, such tragedies are frequently reported.
In March, at least 20 people were killed and over a dozen others were injured after a bus plunged into a gorge in the northern Gilgit-Baltistan (GB) region.
Pakistan’s Rauf says injury lay-off a ‘blessing in disguise’
- The 30-year-old fast bowler made an encouraging return to competitive cricket, taking 2-34, in the second match against England on Saturday
- Rauf insists Pakistan, the 2009 T20 world champions, are optimistic ahead of their opening match at this year’s global showpiece against US
LONDON: Pakistan paceman Haris Rauf believes the three months he spent on the sidelines injured with a dislocated shoulder could yet prove a “blessing in disguise” as he gears up for the Twenty20 World Cup.
The 30-year-old fast bowler made an encouraging return to competitive cricket, taking 2-34, in the second match of Pakistan’s warm-up series against T20 world champions England in Birmingham on Saturday.
“I was injured the last few months but if you believe in yourself, then the layoff can be a blessing in disguise,” he told a pre-match press conference in Cardiff on Monday ahead of the third T20.
“Because you have time to recover and reassess your game-plans. I felt good coming back to cricket. When you play for your country, it makes you very proud.”
As for the mental and physical strain of returning from injury for a fast bowler, Rauf said: “It’s hard. It’s a struggle during your rehab, and it’s difficult when you come back to maintain that pace and accuracy. But if you believe in yourself, it makes things easier. When I wasn’t in the team and rehabbing, I had a lot of time to think about my game and work on myself.
“Thankfully I’m back now, and the World Cup is coming up.”
Rauf’s return at Edgbaston could not prevent Pakistan suffering a 23-run defeat by England as they fell 1-0 behind in the four-match series with two to play following a washed-out opener.
But Rauf insisted Pakistan, the 2009 T20 world champions, remained in optimistic mood ahead of their opening match at this year’s global showpiece against co-hosts the United States in Dallas on June 6.
“When you lose a game it hurts, but as a team, we are confident,” he said. “We feel we can beat any opposition on any day. We’ve done it in the past, too. When you make mistakes you learn and try not to repeat those mistakes. We’re looking to play better in the next few games and make a comeback.
“The camp is relaxed. We’re enjoying ourselves. We’re trying to follow our game-plans and execute them well. The results haven’t often been in our favor recently but if you stick to your plans they can sometimes follow.”
Pakistan temperatures cross 52°C in heatwave
- Extreme temperatures throughout Asia over the past month were made worse most likely as result of human-driven climate change
- In Mohenjo Daro, a town in Sindh known for archaeological sites dating back to 2500 BC, temperatures rose as high as 52.2°C
MOHENJO DARO: Temperatures rose above 52 degrees Celsius (125.6 degrees Fahrenheit) in Pakistan’s southern province of Sindh, the highest reading of the summer and close to the country’s record high amid an ongoing heatwave, the met office said on Monday.
Extreme temperatures throughout Asia over the past month were made worse most likely as a result of human-driven climate change, a team of international scientists have said.
In Mohenjo Daro, a town in Sindh known for archaeological sites that date back to the Indus Valley Civilization built in 2500 BC, temperatures rose as high as 52.2 C (126 F) over the last 24 hours, a senior official of the Pakistan Meteorological Department, Shahid Abbas told Reuters.
The reading is the highest of the summer so far, and approached the town’s and country’s record highs of 53.5 C (128.3 F) and 54 C (129.2 F) respectively.
Mohenjo Daro is a small town that experiences extremely hot summers and mild winters, and low rainfall, but its limited markets, including bakeries, tea shops, mechanics, electronic repair shops, and fruit and vegetable sellers, are usually bustling with customers.
But with the current heatwave, shops are seeing almost no footfall.
“The customers are not coming to the restaurant because of extreme heat. I sit idle at the restaurant with these tables and chairs and without any customers,” Wajid Ali, 32, who owns a tea stall in the town.
“I take baths several times a day which gives me a little relief. Also there is no power. The heat has made us very uneasy.”
Close to Ali’s shop is an electronic repairs shop run by Abdul Khaliq, 30, who was sat working with the shop’s shutter half down to shield him from the sun. Khaliq also complained about the heat affecting business.
Local doctor Mushtaq Ahmed added that the locals have adjusted to living in the extreme weather conditions and prefer staying indoors or near water.
“Pakistan is the fifth most vulnerable country to the impact of climate change. We have witnessed above normal rains, floods,” Rubina Khursheed Alam, the prime minister’s coordinator on climate, said at a news conference on Friday adding that the government is running awareness campaigns due to the heatwaves.
The highest temperature recorded in Pakistan was in 2017 when temperatures rose to 54 C (129.2 F) in the city of Turbat, located in the Southwestern province of Balochistan. This was the second hottest in Asia and fourth highest in the world, said Sardar Sarfaraz, Chief Meteorologist at the Pakistan Meteorological Department
The heatwave will subside in Mohenjo Daro and surrounding areas, but another spell is expected to hit other areas in Sindh, including the capital, Karachi — Pakistan’s largest city.
Body of 15-year-old Pakistani hiker found on Islamabad’s Margalla Hills — police
- The boy had gone for a hike on Trail-5 along with six of his classmates at around 7am on Saturday but did not return
- Police say his body was found in a ditch on Margalla Hills, further investigation is underway to ascertain the cause
ISLAMABAD: The body of a 15-year-old boy, who had gone missing while hiking with friends last week, was found near a Margalla Hills hiking trail on Monday, the Islamabad police said.
The boy had gone for a hike on Trail-5 along with six of his classmates at around 7am on Saturday, but never made it back, according to a police report.
The mother of the young student tried to search him after one of his friends called her to inquire about his return on Saturday evening.
After trying to locate him for hours, the mother lodged a missing complaint with the police.
“After a long search operation, the body of the youth who went missing on Margalla trail was found in a dangerous ditch,” the Islamabad police said in a statement on Monday. “It seems that the boy lost his way and fell into the ditch.”
The deceased’s family was present on the site along with police officials and the search team, according to the statement.
“Further investigation is underway and post-mortem of the body will be conducted to cover all aspects,” it read.
The Pakistani capital of Islamabad has seven hiking trails that stretch several kilometers on the Margalla Hills, which are part of the Himalayan foothills and have an area of 12,605 hectares.
These trails are frequented by hundreds of people on a daily basis and are famous with picnickers.
