Pakistani lawmakers to explore ways to cut soaring Hajj costs 

Pakistani pilgrims prepare to board a Pakistan International Airlines' special Haj pilgrimage flight bound for Saudi Arabia at the Allama Iqbal International airport in Lahore on November 2, 2008. (AFP)
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Updated 27 January 2020
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Pakistani lawmakers to explore ways to cut soaring Hajj costs 

  • Hajj 2020 costs are expected to jump as high as 20 percent due to rupee devaluation and Saudi taxes
  • In poverty-stricken Pakistan, millions save up for a lifetime to perform the obligatory Muslim ritual

KARACHI: Pakistan’s legislators will next month explore ways to reduce Hajj costs for the country’s aspiring pilgrims, amid depreciating rupee values and higher taxes, officials said on Sunday.
On Thursday, officials of the Religious Affairs ministry told the senate’s standing committee on Religious Affairs and Inter-faith Harmony that 179,000 Pakistanis were scheduled to perform the Hajj this year and those on government packages could be paying an extra Rs. 115,000 ($743) per person as compared to last year-- a 20 percent increment.

“A very important meeting of the standing committee (of National Assembly on Religious Affairs) will be held on February 3rd, in which it will be decided how much Hajj expenses should be. The meeting will consider all aspects of the expenses,” Muhammad Iqbal Khan, a member of the standing committee told Arab News on Sunday, and added that he was hoping for “good news.”

Pakistani officials say the rupee depreciation against the US dollar and other currencies in addition to the imposition of taxes by Saudi authorities, are the primary reasons behind soaring expenses falling on Pakistani pilgrims this year.

Last year, a Saudi riyal was equal to Rs. 39 when the Hajj policy was announced. This year, the riyal has appreciated to Rs. 41.21.

Khan said: “The participants of the meeting, including Noorul Haq Qadri, Federal Minister for Religious Affairs and Interfaith Harmony and other government officials will consider options about how the government can reduce expenses and how tax issues can be discussed with the Saudi government.”

Pakistani Hajj operators also expect higher costs will reduce the number of people intending to perform the Hajj, compared to last year’s figures. Almost 200,000 Pakistanis performed the obligatory Muslim ritual last year.

“The government Hajj package is for those who have saved money throughout their life to perform Hajj, but the higher costs will make it difficult for poor Pakistanis,” Faisal Naeem, Chairman of Travel & Tourism, Hajj & Umrah committee of the Karachi Chamber of Commerce and Industry (KCCI) told Arab News.

“Most people save around Rs. 200,000 for the purpose of Hajj and borrow money to meet any additional expenses,” Dr. Abdul Jabbar Khan, senior economist, told Arab News.

“The higher costs will make Hajj unaffordable and this is due to government policies,” he said, adding that the depreciation of the rupee was not the responsibility of the people who had to bear the higher costs. 

“It is the result of the government’s policies,” Khan said.


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.