KARACHI: The government faces mounting pressure as the spread of coronavirus has sent the Pakistani economy into a tailspin, with millions of poor workers at particular risk of losing work and few safety nets in place to compensate for lost income.
The spread of the disease caused by the virus, COVID-19, has rocked financial markets around the world, with the panic clear in stocks, bonds, gold and commodity prices, underlining expectations of severe economic damage from the outbreak.
Pakistani shares declined by more than 6.7 percent on Monday, the highest in 18 years, following a global equity selloff due to the coronavirus pandemic.
The International Labour Organization said this week about 25 million jobs could be lost globally due to virus.
On Sunday night, Pakistan’s southern Sindh province, home to around 50 million people, went into complete lockdown. Other provinces are also observing varying levels of shut downs, effecting millions of jobs and businesses.
More than four million daily wagers will be directly affected by the lockdown in Pakistan’s financial hub of Karachi alone as thousands of markets are shut down, Atiq Mir, Chairman of the Karachi Tajir Itehad, said.
“I have a family to support,” Karachi salesman Abdullah Hashim said, saying a two-week lockdown in Sindh would put him under immense financial strain. “I earn around Rs. 800 per day and have no other source of income.”
Abdul Rasheed Channa, a spokesman for the Sindh chief minister, said the provincial government had allocated Rs. 11.6 billion to contain the virus, of which Rs. 3 billion had been released. The government would also distribute two million ration bags among the poor, he added.
Sherry Rehman, a politician from Sindh and a member of the Senate standing committee on finance, said the budget for the Benazir Income Support Programme (BISP), a federal program that gives cash to the poor, needed to be expanded.
BISP was launched in 2008 and covers around five million people with assistance of Rs. 2,000 per month. The prime minister also launched the Ehsaas program last year which gives “assets” to people living below the poverty line.
“Daily wage earners get no sick leave and many are homeless. After diverting budgets to a higher BISP, an appeal should be made to philanthropists to help with rations for vulnerable families,” Rehman said.
Dr. Salman Shah, an economic adviser to the Punjab chief minister, said the government was “fully ready” to support the poor with food supplies and had initially allocated Rs. 12 billion to combat coronavirus in the province.
“Supporting the nation in difficult times would be the responsibility of the government,” he said, adding that the government would use BISP data to track poor families that needed support during lockdowns.
Small traders are also seeking the government’s support through an economic stimulus package or initiatives like the Ehsaas program.
“The government should come forward to support the business community through an economic package so that they could retain workers,” said Kashif Chaudhry, who heads a national association of traders, adding that the government could offer tax cuts and reduce energy prices.
Economists also suggest that the government pass on the impact of global oil price cuts to the public to help them compensate for losses.
“Our finance minister has not given any fiscal response; he should have passed on benefits of oil price cut in the international market,” said senior economist Muzamil Aslam, suggesting that the provincial governments immediately cut taxes and the federal government facilitate the collection of utility bills in installments.
On Friday, Pakistan’s Council of Islamic Ideology called for the early distribution of Zakat, the obligatory annual charity in Islam traditionally given in the Islamic month of Ramadan which will begin this year in the last week of April. Zakat accounts for 2.5 percent of the total yearly savings in the form of cash, gold or silver.
Pakistan’s central bank this month cut its key interest rate by 75 bps to 12.50%, the first reduction in four years, citing a global slowdown due to the virus spread.
Pakistan’s poor in panic mode as coronavirus recession looms
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Pakistan’s poor in panic mode as coronavirus recession looms
- Millions of poor workers at risk of losing work and few safety nets in place to compensate for lost income
- Punjab economic adviser says government “fully ready” to support poor with food supplies
Rain wipes out first Pakistan-New Zealand T20 after just two balls
- Fast bowler Mohammad Amir returned to international cricket after nearly four years
- Having come out of retirement last month, Amir’s participation was limited to just fielding
RAWALPINDI: Heavy rain caused the first Twenty20 international between Pakistan and New Zealand to be abandoned after just two deliveries in Rawalpindi on Thursday.
New Zealand skipper Michael Bracewell won the toss, which had also been delayed by 30 minutes, and opted to bat but no action was possible for two-and-a-half hours.
Umpires Ahsan Raza and Aleem Dar then announced a five-over-a-side game at 10:10 local time (9:10 GMT).
Pakistan paceman Shaheen Shah Afridi conceded two leg-byes to debutant Tim Robinson off the first ball before bowling the batsman with a sharp delivery off the next.
But as soon as the Pakistan fielders started celebrating the wicket, the rain returned to force an abandonment.
Fast bowler Mohammad Amir returned to international cricket after nearly four years, having come out of retirement last month, but his participation was limited to just fielding.
The 32-year-old retired in December 2020 after being dropped from the side but changed his mind last month and decided to restart his career, which had already been stalled by a match-fixing ban in 2010.
Pakistan handed T20I caps to batsman Usman Khan, spinner Abrar Ahmed and all-rounder Muhammad Irfan Khan, while Robinson debuted for New Zealand.
The remaining matches are in Rawalpindi on April 20 and 21 and in Lahore on April 25 and 27.
The series gives a chance to both teams to test their bench strength ahead of the Twenty20 World Cup to be held in June in the United States and the West Indies.
New Zealand are without nine key players, including skipper Kane Williamson, who are playing in the ongoing Indian Premier League.
Five custom officials among six killed in gun attack in northwest Pakistan
- Officials of the custom department attacked while on routine patrol in Dera Ismail Khan
- Latest killings come amid renewed violence in northwestern and southwestern regions
PESHAWAR: Six people, including five officials of the customs department, were killed and another wounded on Thursday when gunmen opened fire on their vehicle in the northwestern Khyber Pakhtunkhwa province, police and rescue officials said.
Officials of the custom department were out for routine patrol in Dera Ismail Khan city when their vehicle came under attack in the jurisdiction of Draban Police Station, Regional Police Officer Nasir Hussain Satti told Arab News.
“As terrorists started firing on the custom officials, the driver lost control of the vehicle,” Hussain said.
“As a result, their car collided head-on with another vehicle coming from the opposite direction, leaving five officials and a girl dead on the spot while one person suffered injuries.”
KP Chief Minister Ali Amin Gandapur condemned the incident.
“The incident is extremely tragic. Police should take all measures to arrest elements behind the attack,” a statement quoting the chief minister said.
Aziz Dotani, a spokesman at DI Khan district’s Rescue 1122 service, said a relief team promptly rushed to the area to transport bodies to the nearest medical facility.
The latest killings come at a time of renewed militant violence in Pakistan’s northwestern and southwestern regions, especially after the banned Tehreek-e-Taliban Pakistan (TTP) called off its fragile, months-long truce with the government in November 2022.
While there has been a spike in militant attacks across the northwest and southwest of the country, militants have particularly attacked policemen in Khyber Pakhtunkhwa in recent weeks.
Earlier this month, unidentified gunmen shot dead a policeman in the restive North Waziristan tribal district. Separately, an official working with the provincial counterterrorism department and a senior cleric affiliated with the Jamiat Ulema Islam religious political party were shot dead in two separate incidents of “targeted killings” in the North Waziristan tribal district, according to police.
While no group immediately claimed responsibility for the latest killings, suspicion is likely to fall on the TTP, which has had a significant presence in KP before being driven out as a result of successive military operations over the years. Pakistan says the TTP is now mostly based in hideouts in neighboring Afghanistan, which the Taliban denies.
Last month, seven Pakistani soldiers, including two army officers, were killed in a militant attack in North Waziristan, according to the Pakistani military. The attack led the Pakistani military to carry out rare airstrikes against suspected TTP hideouts inside Afghanistan on March 18, killing eight people. The strikes prompted Afghan forces to fire back at Pakistani soldiers along the border.
Afghan Deputy Interior Minister Mohammad Nabi Omari has urged Pakistan and the banned TTP to start negotiations afresh but Pakistan has rejected the Afghan minister’s suggestion, urging Kabul to take action against militant groups operating from its soil.
Both Pakistan and Afghanistan have traded blame in recent months over who is responsible for the recent spate of militant attacks in Pakistan.
Islamabad says the attacks are launched mostly by TTP members who operate from safe havens in Afghanistan. Kabul denies this and blames Islamabad for not being able to handle its own security challenges.
Seven killed in southwest Pakistan as heavy rains continue to wreak havoc nationwide
- At least 33 people killed and 46 injured in various rain-related incidents in northwestern Pakistan
- Pakistan is ranked fifth most vulnerable country to climate change according to Global Climate Risk Index
QUETTA: Seven people including a woman were killed in southwestern Pakistan as rains continue to wreak havoc in the South Asian nation ranked as the fifth most vulnerable country to climate change according to the Global Climate Risk Index.
Heavy rains in the last three weeks have triggered landslides and flash floods in several parts of Pakistan.
On Thursday, seven people were killed in the southwestern Balochistan province, officials in the town of Chaman here the deaths took place said.
“In the first incident a car drove into flood waters in Mashan Talab situated on the outskirts of Chaman,” Deputy Commissioner Chaman Raja Atthar Abbas told Arab News.
“Five men sitting inside the vehicle drowned in flood water while two people including a woman were killed after a mud wall fell on them on College road.”
Torrential rains had caused “severe damage” in Chaman and its surrounding areas as dozens of mud house collapsed in the last two days of rains, Abbas added.
Separately, at least 33 people were killed and another 46 injured in various rain-related incidents in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province in the last six days, the Provincial Disaster Management Authority (PDMA) said on Thursday.
Rains that began last Friday had completely destroyed 336 houses and partially damaged another 1,606 in different districts across the province, according to the PDMA.
The incidents occurred in Khyber, Upper and Lower Dir, Upper and Lower Chitral, Swat, Bajaur, Shangla, Karak, Tank, Mardan, Peshawar, Charsadda, Hangu, Battagram, Dera Ismail Khan and other districts.
“The deceased include 17 children, eight men, eight women, while the injured included 32 men, six women and eight children,” the PDMA said in its daily situation report on Thursday.
On Wednesday, the authority had warned of another spell of heavy rains in the province from April 17 till April 21, which could trigger landslides and flash floods.
In 2022, downpours swelled rivers and at one point flooded a third of Pakistan, killing 1,739 people. The floods also caused $30 billion in damages, from which Pakistan is still trying to rebuild.
Amir returns to international cricket as New Zealand bat in first T20I
- Amir retired in December 2020 after being dropped from the side but changed his mind last month
- Fast bowler decided to restart his career, which had also been stalled by a match-fixing ban in 2010
RAWALPINDI: Pakistan fast bowler Mohammad Amir returns to international cricket from an absence of almost four years after New Zealand won the toss in their rain-delayed first Twenty20 in Rawalpindi on Thursday.
The 32-year-old retired in December 2020 after being dropped from the side but changed his mind last month and decided to restart his career, which had also been stalled by a match-fixing ban in 2010.
Pakistan have handed T20I debuts to batter Usman Khan, spinner Abrar Ahmed and allrounder Muhammad Irfan Khan to gauge their bench strength ahead of June’s World Cup in the United States and the West Indies.
New Zealand, missing nine players due to the Indian Premier League, handed a T20I debut to batter Tim Robinson.
The remaining matches are in Rawalpindi on April 20 and 21 and in Lahore on April 25 and 27.
Teams:
Pakistan: Babar Azam (captain), Usman Khan, Abrar Ahmed, Iftikhar Ahmed, Mohammad Rizwan, Mohammad Amir, Muhammad Irfan Khan, Naseem Shah, Saim Ayub, Shadab Khan, Shaheen Shah Afridi
New Zealand: Michael Bracewell (captain), Mark Chapman, Josh Clarkson, Jacob Duffy, Dean Foxcroft, Ben Lister, Jimmy Neesham, Tim Robinson, Ben Sears, Tim Seifert, Ish Sodhi
Umpires: Ahsan Raza (PAK) and Aleem Dar (PAK)
Tv umpire: Faisal Afridi (PAK)
Match referee: Andy Pycroft (ZIM)
US says Pakistan’s prosperity and security remains a ‘top priority’
- Blome’s comments come amid a spike in militant attacks in Pakistan
- Pakistani finance chief has launched negotiations for a new IMF bailout
KARACHI: US Ambassador Donald Blome met Pakistani Foreign Minister Ishaq Dar on Thursday and said the South Asian nation’s prosperity and security remained a ‘top priority’ for Washington.
Blome’s comments come amid a spike in militant attacks in Pakistan and while its finance chief is in discussions with the International Monetary Fund in Washington on a potential follow-up program to its nine-month, $3 billion stand-by arrangement.
“US Ambassador Donald Blome met today with Foreign Minister Ishaq Dar to discuss recent events in the region,” Acting US Mission Spokesperson Thomas Montgomery said.
“Ambassador Blome conveyed the United States’ commitment to working with the government and people of Pakistan, underscoring that prosperity and security for Pakistan remains a top priority for the United States.”
Pakistan went to the polls on February 8 in a vote marred by a mobile Internet shutdown on election day, arrests and violence in its build-up and unusually delayed results, leading to accusations that the vote was rigged.
However, the US has repeatedly said it will work with the new government of Prime Minister Shehbaz Sharif, though it has expressed concerns about reported election irregularities and urged a probe.
Although defense and key foreign policy decisions are largely influenced by Pakistan’s powerful military, Sharif will have to juggle relations with the US and China.
Islamabad has close economic ties to both the nations, which has put it in a tricky position as the two countries have embarked upon a costly trade war.
“From our perspective it has to be an and-and discussion,” finance minister Muhammad Aurangzeb said in an interview this week when asked how the Sharif government plans to conduct its trading relationships with the world’s two largest economies.
“US is our largest trading partner, and it has always supported us, always helped us in terms of the investments,” he said. “So that is always going to be a very, very critical relationship for Pakistan.”
“On the other side, a lot of investment, especially in infrastructure, came through CPEC,” he said, referring to the roughly 1,860-mile-long China-Pakistan Economic Corridor designed to give China access to the Arabian Sea.
Aurangzeb said there was a “very good opportunity” for Pakistan to play a similar role in the trade war as countries like Vietnam, which has been able to dramatically boost its exports to the US following the imposition of tariffs on some Chinese goods.
“We have already a few examples of that already working,” he said. “But what we need to do is to really scale it up.”
Militancy has also spiked in recent months, creating a major challenge for the new government, with religiously motivated groups like the Pakistani Taliban as well as ethnic separatists showing an enhanced ability to hit high-value targets.
In an attack last month that has so far been unclaimed, a suicide bomber rammed a vehicle into a convoy of Chinese engineers working on a hydropower project at Dasu in the northwestern Khyber Pakhtunkhwa province, killing five Chinese nationals and their Pakistani driver.
The Mar. 26 assault was the third major attack in little over a week on China’s interests in the South Asian nation, where Beijing has invested more than $65 billion in infrastructure projects as part of its wider Belt and Road initiative.
