Pakistan 8th most vulnerable country to extreme weather patterns — report 

People wade through a flooded residential area following heavy monsoon rains triggered floods in Pakistan's port city of Karachi on August 31, 2020. (AFP)
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Updated 26 January 2021

Pakistan 8th most vulnerable country to extreme weather patterns — report 

  • Germanwatch analyzed data gathered between 2000 and 2019, says Pakistan witnessed 173 extreme weather events and suffered around $3.8 billion in losses as a consequence
  • Officials in Islamabad urge the developed world to meet its financial obligations to help smaller countries with climate adaptation

ISLAMABAD: A German think tank that works on environmental issues in its latest report has described Pakistan as the eighth most vulnerable country to climate change, having witnessed 173 extreme weather events and suffered an estimated loss of $3.8 billion as a consequence between 2000 and 2019.

Germanwatch, in its latest briefing paper, the Global Climate Risk Index 2021, released on Monday, warned that “impacts from extreme-weather events hit the poorest countries hardest as these are particularly vulnerable to the damaging effects of a hazard, have a lower coping capacity and may need more time to rebuild and recover.” 

The report declared Pakistan as one of the countries that were “recurrently affected” by extreme weather patterns, while government functionaries in Islamabad said the international community should realize the climate threat Pakistan had been facing for the last several decades.




World Map of the Global Climate Risk Index 2000 - 2019. (Courtesy: Germanwatch)

With less than one percent of global carbon emissions, Pakistan has been consistently on the climate risk index and is now part of a unique category of countries — along with Haiti and the Philippines — which have been on the yearly as well as the long-term climate risk index.

“This just amplifies the climate threat that Pakistan faces — not just as a one-off catastrophe but as a continuously amplifying threat,” Malik Amin Aslam, who advises Prime Minister Imran Khan on climate change, told Arab News on Tuesday.

In terms of economic losses of $3.8 billion, Pakistan is ranked third over the last 20-year period. 

“What this means is that our economy is constantly at risk of climate catastrophes,” Aslam said. “This is not just an environmental challenge but an issue impacting our economy, human health, agriculture and ecosystem.” 




The long-term climate risk index. (Courtesy: Germanwatch)

Pakistan’s adaptation needs range between $7 billion and $14 billion per annum, Aslam said, adding that this proved a “realistic estimate” over the last decade with the increasingly adverse impacts of climate change. 

He said the global climate finance infrastructure should make sufficient funds available to Pakistan to help the country “shift toward a low carbon trajectory growth” and meet adaptation requirements. 

Under the 2015 Paris climate deal, wealthier nations are supposed to provide $100 billion every year to help poorer states mitigate temperature rises and adapt to changing climate. However, the recent study said the true amount of funding available to developing countries for climate action was vastly lower. 

Listing the government’s initiatives to deal with the challenge, Aslam said it was investing a large amount for forestry under a ten billion tree "tsunami" project along with shifting 60 percent of the energy mix towards clean renewables and e-mobility transition targeting 30 percent by 2030. 

“All of this is self-financed, and clearly shows the political commitment of our government to overcome the challenge,” he said. 




Men ride a horse-drawn cart on a flooded street during heavy monsoon rains in Lahore on September 4, 2020. (AFP)

However, climate change experts said Pakistan was happy using the “victim syndrome” and had hardly taken any practical measures to adapt to or mitigate the adverse impacts of climate change. 

“This is the twentieth reminder to Pakistan that it should improve its climate resilience to protect its people and economy, but unfortunately the least is done so far,” Ali Tauqeer Sheikh, an expert on climate change, told Arab News. 




Pedestrians and motorists cross the main flooded I. I. Chundrigar Road is located in central business district of Karachi on August 28, 2020, after heavy monsoon rains triggered floods. (AFP)

He said Pakistan was seeking financial support from international institutions to deal with climate change, but was not prepared to come out of its comfort zone to formulate long-term adaptation and mitigation strategies at home. 

“We have been using our ranking to play the victim card,” Sheikh added, “and just looking toward the developed world for financial support.”


Pakistan to present budget today for next fiscal year as economy continues to melt down

Updated 14 sec ago

Pakistan to present budget today for next fiscal year as economy continues to melt down

  • The South Asian country is facing an acute balance-of-payment crisis, currency devaluation and inflation at record 38 percent
  • On Thursday, Finmin Ishaq Dar said the outgoing year was ‘a difficult year for economy’ and posed ‘extreme challenges’

ISLAMABAD: Pakistani finance authorities will present on Friday federal budget for the next fiscal year 2023-24, the state media reported, as the South Asian country is likely to post a Gross Domestic Product (GDP) growth of 0.29 percent in the fiscal year ending June 30.

Pakistan missed the GDP target by a huge 4.7 percent this fiscal year, which is well below the target of 5 percent set last year, according to the country’s economic survey that highlights the trend of macro-economic indicators, development policies and strategies as well as sectoral achievements of the economy.

The cash-strapped country is due to present its budget at a time when it is in desperate need of bailout funds from the International Monetary Fund (IMF) to shore up its foreign currency reserves that are barely enough to cover a month’s imports.

“Finance Minister Ishaq Dar will present the budget in the National Assembly scheduled to meet at four in the evening at the parliament house in Islamabad,” the state-run Radio Pakistan broadcaster reported on Friday.

At a pre-budget presser on Thursday, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.

“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms, the fiscal reforms … we had to do the pending actions,” Dar told reporters.

“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”

Islamabad has been hoping to have $1.1 billion of the funds released since November, but the IMF has insisted on a number of conditions being met before it makes any more disbursements.

On Thursday, an IMF official said Pakistan had to satisfy the lender on three counts, starting with a budget due on Friday, before its board reviews whether to release at least some of the $2.5 billion still pending under the $6.5 billion program expiring on June 30.

“As communicated to the authorities, there can be one remaining Board meeting under the current EFF at end-June,” Perez Ruiz said in an email response to Reuters.

“To pave the way for a final review under the current EFF, it is essential to restore the proper functioning of the FX market, pass a FY24 Budget consistent with program objectives, and secure firm and credible financing commitments to close the $6 billion gap ahead of the Board.”

The IMF had tasked Pakistan with securing external financing commitments for $6 billion from other sources, but so far it has only obtained commitments for $4 billion, mostly from Saudi Arabia and the United Arab Emirates.

Under pressure to shift to a more market-determined exchange rate regime and shut down an unofficial currency market, Pakistan removed daily limits on fluctuations earlier this year.

The country is already reeling from an economic crisis with inflation reaching a record 37.97 percent in May.

The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, while its central bank has also raised policy interest rates to a record 21 percent.

The IMF has so far conducted just eight of the 11 reviews that were to take place during the three-year program. The last review took place in August last year.


Saudi Arabia, UAE absorbed 77.5% of Pakistani expat workers in 2022 — economic survey

Updated 34 min 1 sec ago

Saudi Arabia, UAE absorbed 77.5% of Pakistani expat workers in 2022 — economic survey

  • More than 96% of Pakistani registered workers for overseas employment were in Gulf Cooperation Council countries in 2022
  • As of December 2022, over 12.4 million Pakistanis used official procedures to travel abroad for employment in over 50 countries

KARACHI: Saudi Arabia and the United Arab Emirates alone absorbed more than 77.5 percent of total 829,549 Pakistani expat workers in 2022, according to the Pakistan Economic Survey 2022-23 released on Thursday.

The yearly flagship publication of the Ministry of Finance highlights the trend of macro-economic indicators and development policies and strategies, as well as sectoral achievements of the economy.

The survey revealed that as of December 2022, more than 12.4 million Pakistanis had used official procedures to travel abroad for employment in over 50 countries including 829,549 Pakistani who travel in 2022.

“More than 96 percent of Pakistani registered workers for overseas employment are in Gulf Cooperation Council (GCC) countries, especially Saudi Arabia and the United Arab Emirates,” the economic survey said. 

“They are contributing to the development of Pakistan’s economy by sending remittances, which is the major source of foreign exchange after exports.”

Citing data from the Bureau of Emigration and Overseas Employment (BE&OE), the economic survey said more than 62 percent, or 514,725 Pakistanis workers, moved to Saudi Arabia followed by UAE, at 15.5 percent, to earn their livelihoods in 2022.

“Oman provided jobs to 82,380 or 9.9 percent and Qatar accommodated 57,984 or 7 percent Pakistani workers of different occupations,” the survey report said.

“Bahrain and Malaysia welcomed 13652 or 1.6 percent workers, and 6175 or 0.7 percent workers, respectively.”

The regional breakdown of those who traveled abroad during 2022 showed the highest number from Punjab (458, 241) followed by Khyber Pakhtunkhwa (224,88) and Sindh (59,067).

The survey said Pakistan had developed a comprehensive diversification strategy developed for five top priority countries including Saudi Arabia, UAE, Malaysia, Qatar and Oman along with five potential and non-traditional countries such as Kuwait, South Korea, Japan, Germany and China to promote the export of manpower.


Pakistan wins seat on UN Economic and Social Council

Updated 08 June 2023

Pakistan wins seat on UN Economic and Social Council

  • Pakistan has in the past served ten times on the economic and social work body
  • It has served as the body’s president in 1952, 1957, 1975, 1995, 2005 and 2020

ISLAMABAD: Pakistan was on Thursday elected to the United Nation's Economic and Social Council (ECOSOC) for a three-year term beginning January 1, 2024, state-run APP reported on Thursday.

The Economic and Social Council, under the overall authority of the UN General Assembly, coordinates the economic and social work of the UN and the UN family of organizations. The ECOSOC is responsible for promoting higher standards of living, full employment, and economic and social progress, identifying solutions to international economic, social and health problems, facilitating international cultural and educational cooperation, and encouraging universal respect for human rights and fundamental freedoms.

Ambassador Munir Akram, Pakistan’s permanent representative to the UN, said Pakistan’s election to the body was a recognition of “our positive role in international diplomacy.”

In balloting in the 193-member General Assembly, Pakistan received 129 votes. A two-third majority – 124 votes – was required for election.

“We’re very gratified at Pakistan’s success in an highly contested election. Our success is a recognition of Pakistan’s importance and its positive role in international diplomacy,” Akram said.

“We hope to play yet once again our active role in the forum of ECOSOC by fostering agreement on the structure and content of new, more dynamic and equitable structure of international economic cooperation.”

Others elected on the Asian seats are: Japan (127 votes) and Nepal (145 votes). Iraq, with 50 votes, and Tajikistan, with 120 votes, did not make it.

Pakistan has in the past served on the ECOSOC 10 times, and in the capacity as the 54-member body’s President six times in 1952, 1957, 1975, 1995, 2005 and 2020.


Pakistan says has ‘full trust’ in UAE’s Al-Jaber as COP28 president

Updated 08 June 2023

Pakistan says has ‘full trust’ in UAE’s Al-Jaber as COP28 president

  • UAE, a major OPEC oil exporter, will be second Arab state to host the climate conference after Egypt in 2022
  • Pakistan says the UAE had over the years demonstrated “strong commitment” to renewable energy sources

ISLAMABAD: Pakistan’s foreign office said on Thursday it had “full trust” in the nomination of Sultan Ahmed Al-Jaber, the UAE’s climate envoy and minister of industry and technology, as president of this year’s UN climate conference, COP28.

Al-Jaber's appointment to lead the climate summit this year fuelled activists' worries that big industry was hijacking the world's response to the global warming crisis.

The UAE, a major OPEC oil exporter, will be the second Arab state to host the climate conference after Egypt in 2022.

The UAE and other Gulf energy producers have called for a realistic energy transition in which hydrocarbons would keep a role in energy security while making commitments to decarbonisation.

“Pakistan has full trust that under the stewardship of H.E. Sultan Ahmed Al Jaber as President of COP28, we will be able to drive the global agenda on climate change in a positive direction decisively in December 2023,” the foreign office said.

“Pakistan believes that the United Arab Emirates’ Presidency of COP-28 is an opportunity for meaningful progress and effective global action on key areas to mitigate and reverse the negative impacts of climate change.”

The foreign office said the UAE had over the years demonstrated a “strong commitment” to renewable energy sources, such as solar and wind power, and through initiatives like the Masdar City project, the Abu Dhabi Clean Energy Strategy, the UAE Net Zero by 2050, and clean fossil fuels, the Emirates had made “substantial investments” in leading global efforts for achieving the goal and targets of the United Nations Framework Convention on Climate Change and its Paris Agreement.
 
The UAE has also manifested its commitment towards combating climate change by implementing several sustainable initiatives to mitigate climate change effects.

“For instance, the Mohammed bin Rashid Al Maktoum Solar Park, one of the largest renewable energy projects globally, contributes to reducing carbon emissions,” the foreign office added. 

“The UAE has also invested in sustainable agriculture, water conservation, and waste management, demonstrating a comprehensive approach to addressing various aspects of the climate crisis.”
 
Pakistan said UAE’s strategic location allowed it to play a key role in addressing climate change by serving as “a bridge between the global north and global south in fostering international cooperation, knowledge sharing, and innovation to find common solutions.”


Pakistan set for 0.29% GDP growth in FY23, well below target of 5%

Updated 08 June 2023

Pakistan set for 0.29% GDP growth in FY23, well below target of 5%

  • Finance minister says 0.29% GDP growth a “realistic achievement,” anything higher not achievable
  • Fiscal deficit 4.6% of GDP for fiscal year up until April, slight improvement from last year’s 4.9 percent

KARACHI: Pakistan has missed its Gross Domestic Product (GDP) target by 4.7 percent and is likely to post GDP growth of 0.29 percent in the fiscal year ending June 2023, well below the target of 5 percent set last year, according to the country's economic survey launched on Thursday.  

 

This was revealed as Pakistani Finance Minister Ishaq Dar presented the Pakistan Economic Survey 2022-23, a yearly flagship publication of the Ministry of Finance which highlights the trend of macro-economic indicators and development policies and strategies, as well as sectoral achievements of the economy.

Dar will present the annual budget document before parliament tomorrow, Friday. 

Addressing a press conference, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.

Indeed, the country’s economy has suffered record high inflation and an economic slowdown compounded by devastating floods last year and a failure so far to unlock crucial finances from the International Monetary Fund. The IMF had demanded a number of prior actions from Pakistan, including reversing subsidies, a hike in energy and fuel prices, jacking up its key policy rate, a market-based exchange rate, arranging for external financing and raising over 170 billion rupees ($613 million) in new taxation.

The fiscal adjustments have already fuelled Pakistan's highest ever inflation, which hit 37.97% year-on-year in May, but the IMF has yet to release the $1.1 billion funding stalled since November as part of the $6.5 billion Extended Fund Facility agreed in 2019.

 

 

 

“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms,  the fiscal reforms … we had to do the pending actions,” Dar told reporters.

“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”

Dar said he was hopeful the 9th review of the program would be concluded soon.

“The first priority is to pay off sovereign debts, then food and pharmaceutical imports,” Dar said, adding that the government had repaid $6.5 billion in international commercial loans, with $1.0 billion of that amount being in the form of international Sukuk.

The Economic Survey document said the Pakistan economy lost momentum in the first quarter of the ongoing fiscal year “due to the severe downturn in the global economy and flash floods of July-August 2022 and as a result the economy suffered from significant domestic supply disruptions.”

Pakistan estimated flood damage at Rs3.2 trillion ($14.9 billion) and loss to GDP at Rs3.3 trillion ($15.2 billion), and recorded the need for rehabilitation of damages at Rs3.5 trillion ($16.3 billion). On the international front, the prolonged Russia-Ukraine conflict had adversely affected global growth and inflation remained unexpectedly high, the document said.

The survey report revealed that agriculture sector growth remained 1.55 % as compared to 4.27% last year, industry posted negative growth at -2.94 % against 6.83% last year while manufacturing posted -3.91% against 10.86 % last year and wholesale and retail trade posted -4.46% as compared to 10.3% last year.

Average year-on-year inflation rate for the period up to May 2023 was recorded at 29.2 percent, the survey found.

In April and May, the country’s inflation hit record levels, which were also the highest in Asia.

The survey said Pakistan’s inflation had been driven by international commodity prices, global supply disruptions, flood damage to crops, currency depreciation, and political uncertainty in the country.

The fiscal deficit was 4.6 percent of GDP for the fiscal year up until April, a slight improvement from last year’s 4.9 percent, the survey showed, adding that the primary balance recorded a surplus of 99 billion Pakistani rupees.