Saudi Arabia, UAE top contributors to Pakistan’s $2.7 billion July remittances

Pakistani customers enters at a currency exchange shop in Islamabad, Pakistan, on October 9, 2018. (AFP)
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Updated 11 August 2021
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Saudi Arabia, UAE top contributors to Pakistan’s $2.7 billion July remittances

  • Workers in Saudi Arabia and UAE contributed 43% to monthly remittances, sending $641 million and $531 million respectively
  • The Pakistani central bank says curtailed cross-border travel, orderly foreign exchange market positively contributed to inflows

KARACHI: Strong remittance inflows from Saudi Arabia and the United Arab Emirates (UAE) helped Pakistan sustain monthly inflows of over $2 billion for 14th consecutive month, the central bank said on Tuesday while announcing the results for July 2021.

Saudi Arabia and the UAE continued to be the top contributors to Pakistani workers’ remittances, with the inflows of $641 million and $531 million respectively.
“Workers’ remittances continued their strong trend, remaining above $2 billion for the 14th consecutive month,” the State Bank of Pakistan (SBP) said in a statement, adding “this is the second-highest ever level of remittances reported in the month of July.”
The bank data reflected an increase of 0.7 percent in the remittance inflows in July compared to the previous month, though it also recorded a decline of 2.1 percent over the same month last year.
“This marginal year on year decline was largely on account of Eid-ul-Adha, which resulted in fewer working days this July compared to last year,” the SBP noted.
Out of a total inflow of $2.71 billion, $1.2 billion or 43 percent originated from Saudi Arabia and the UAE.

The country has been receiving over $2 billion in monthly remittances since June 2020.
“These inflows are through official channels as the number of people traveling has significantly curtailed after COVID-19 outbreak in 2020,” Muzammil Aslam, a senior economist based in Karachi, told Arab News on Tuesday.
“This continuous trend shows that these inflows are genuine and contradict the perception that a large number of laborers from the Middle Eastern countries were laid off [during the pandemic] and were bringing their money with them,” he added.

Pakistan received $29.37 billion during the last fiscal year FY21, with 47 percent or $13.78 billion originating from Saudi Arabia and the UAE.
The remittances of $7.6 billion from Saudi Arabia in FY21 were more than the loan amount of $6 billion that Pakistan negotiated with the International Monetary Fund (IMF).
However, financial experts say the IMF program comes with some added benefits.
“The IMF program helps secure funds from other sources too,” Muhammad Sohail, chief executive officer of Topline Securities, told Arab News. “Plus, the IMF program brings fiscal and monetary discipline.”
The central bank attribute the increase in remittance inflows to its proactive policy measures that it says have incentivized the use of formal banking channels.
It also acknowledges the role of COVID-19 which has curtailed cross-border travel and resulted in an increase of altruistic money transfers to Pakistan amid the pandemic.
“Orderly foreign exchange market conditions have positively contributed toward the sustained improvement in remittance inflows since last year,” the SBP added in its statement.


Pakistan inflation eases to 22-month low at 17.3% in April amid monetary tightening

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Pakistan inflation eases to 22-month low at 17.3% in April amid monetary tightening

  • Pakistan beset by inflation above 20% since May 2022, registering high of 38% in May 2023 due to high food, energy costs
  • Pakistan is currently navigating strict reforms as part of an International Monetary Fund bailout program

KARACHI: Pakistan’s inflation eased off to 17.3%, the lowest since May 2022, on a year-on-year basis in April 2024 from 20.7% recorded in March 2024 and 36.4% in April 2023, official data issued on Thursday said.

Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38 percent in May 2023 main due to high food and energy costs. 

Pakistan’s central bank, which has kept the interest rate steady at 22% since June last year amid tight monetary tightening, had forecasted that ” inflation will continue to remain on downward trajectory further moderation.”

“Besides the coordinated tight monetary and fiscal policy response, other factors that have led to this favorable outcome include lower global commodity prices, improved food supplies and high base effect,” the central bank said in its monetary policy statement issued on Monday.

On a month-on-month basis, inflation decreased to 0.4 percent in April 2024 as compared to an increase of 1.7% in the previous month and a hike of 2.4% in April 2023, according to the Pakistan Bureau of Statistics (PBS) . 

In April on an annual basis the prices of onions increased by 156.16 percent, tomatoes 126.67 percent, chicken 33.62 percent and meat 22.18 percent. In the non-food category, gas charges surged by 318.74 percent, electricity charges 71.12 percent, accommodation services 31.50 percent, transport services 26.70 percent, cotton cloth 23.00 percent, drugs and medicines 22.78%, and footwears 21.38%.

Urban core inflation measured by non-food non-energy items increased to 13.1 percent on an annual basis in April 2024 as compared to an increase of 12.8 percent in the previous month and 19.5 percent in April 2023.

Rural core inflation measured by non-food non-energy items increased to 19.3 percent on a year-on-year basis in April 2024 as compared to an increase of 20 percent in the previous month and 24.9 percent in April 2023.


Pakistan’s drug enforcement agency nets record ‘ice’ haul in major anti-trafficking operation

Updated 02 May 2024
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Pakistan’s drug enforcement agency nets record ‘ice’ haul in major anti-trafficking operation

  • The Anti-Narcotics Force seizes 224 kilograms of the substance while it was being transported to Belgium
  • The authorities also apprehended three suspects, among them two Afghan nationals, who were trying to escape

ISLAMABAD: Pakistan’s Anti-Narcotics Force (ANF) announced on Thursday it had achieved a “monumental victory” in the ongoing battle against drug trafficking by intercepting the largest consignment of methamphetamine, popularly called “ice,” in the nation’s history.
Methamphetamine, known for its potent and addictive properties, has seen a significant rise in use not just in Pakistan but globally, contributing to a burgeoning health crisis.
The drug’s accessibility and escalating abuse have heightened law enforcement and public health efforts to curtail its spread.
This major seizure highlights the ongoing challenges and the critical need for continued vigilance and international cooperation in combating drug trafficking and its societal impacts.
“A total of 224 kilograms of Methamphetamine (Ice) was seized by the diligent ANF team at the Karachi port,” an official statement announced. “Disguised within five containers labelled as ‘Soapstone’ exports from Afghanistan to Belgium, this illicit substance was artfully concealed within the container’s roof and doors.”
The authorities also apprehended three suspects involved in the smuggling attempt, among them two Afghan nationals.
“The suspects were attempting to flee to Afghanistan via the Torkham border when they were intercepted by ANF Team,” the statement continued.
It added the intercepting the massive methamphetamine consignment by ANF prevented its distribution and potential harm to countless people.


Pakistan’s inflation sees lowest increase in nearly two years at 17.3% in April

Updated 02 May 2024
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Pakistan’s inflation sees lowest increase in nearly two years at 17.3% in April

  • Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38% in May 2023
  • Month on month inflation was down 0.4%, showing negative growth for the first time since last year in June

KARACHI: Pakistan’s Consumer Price Index (CPI) for April rose 17.3% from a year earlier, data from the Pakistan Bureau of Statistics showed on Thursday, the lowest reading in nearly two years and below the finance ministry’s projections for the month.

Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38% in May 2023, as it has navigated reforms as part of an International Monetary Fund (IMF) bailout programme.

Month on month inflation was down 0.4%, showing negative growth for the first time since June 2023.

The Finance Ministry in its monthly economic report said it expected inflation to hover between 18.5% and 19.5% in April and ease further in May to 17.5%-18.5%.

Pakistan’s central bank kept its key interest rate unchanged at 22% for the seventh straight policy meeting on Monday, hours before the IMF executive board approved $1.1 billion in funding under a $3 billion standby arrangement signed last year.

The bank’s monetary policy committee said in a statement it was “prudent” to continue with its monetary policy stance at this stage to bring inflation down to the target range.


‘Well aware of our constitutional limits,’ Pakistan’s army chief declares at PAF graduation parade

Updated 02 May 2024
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‘Well aware of our constitutional limits,’ Pakistan’s army chief declares at PAF graduation parade

  • General Asim Munir says Article 19 of Pakistan’s constitution sets limits on freedom of expression
  • He says a strong air force is essential to prevent Pakistan from being at the mercy of aggressors

ISLAMABAD: Pakistan’s army chief General Asim Munir emphasized the armed forces’ awareness of their constitutional limits and expectations for legal compliance from others while addressing the graduation parade at the Pakistan Air Force (PAF) Academy in Risalpur on Thursday.
The military’s involvement in politics has been a contentious issue in Pakistan, with public criticism intensifying since the ouster of former prime minister Imran Khan in a no-confidence vote in April 2022.
The country’s military has publicly denied intentions to interfere in political affairs more recently, asserting a commitment to uphold democracy and remain apolitical, amid growing public scrutiny over its past involvements in political matters.
“We are well aware of our constitutional limits and expect others to prioritize adherence to the constitution as well,” the army chief was quoted as saying by the military media wing, ISPR, in a statement.
He said in his address to the graduating cadets that Article 19 of the Pakistani constitution set limits on freedom of expression as well.
“Those who openly violate the clear restrictions on freedom of expression set by the constitution cannot point fingers at others,” he asserted.
General Munir noted specific technologies, including artificial intelligence, robotics and quantum computing, were expanding the scope and transforming the use of air power.
However, he warned against an arms race in the region, saying it could disrupt the balance of power in and around South Asia.
The army chief pointed out that a strong air force was essential to prevent the country from being at the mercy of external aggressors.
“The recent war in Gaza is a fresh example of the miseries that wars can bring,” he said. “The indiscriminate killing of elderly, women and children in Gaza is proof that violence is increasing in the world.”
He also criticized India for its policies in the dispute Kashmir region, pointing out it would not be able to suppress the “voices of freedom” and promising continued Pakistani support on moral, political and diplomatic levels for those resisting New Delhi’s rule.


Pakistan anticipates more high-level Saudi business delegations amid stronger bilateral ties

Updated 02 May 2024
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Pakistan anticipates more high-level Saudi business delegations amid stronger bilateral ties

  • Foreign office says the two countries are involved in robust dialogue that has gained significant momentum
  • It categorically denies reports that Pakistan is providing military bases to any foreign country against anyone

ISLAMABAD: Pakistan anticipates continued visits by high-level business delegations from Saudi Arabia in the upcoming weeks to further explore investment opportunities facilitated under the Special Investment Facilitation Council (SIFC), the foreign office announced on Thursday.
The statement came just days after Prime Minister Shahbaz Sharif concluded his visit to Riyadh, where he addressed the two-day World Economic Forum conference that began on April 28.
During his visit, Sharif met with Crown Prince Mohammed bin Salman and several Saudi ministers to strengthen bilateral relations and economic partnerships between the two nations.
Prior to his visit to the kingdom, Saudi Foreign Minister Faisal bin Farhan was in Islamabad with a large delegation, saying the Pakistani administration’s resolve to strengthen the economy would yield “significant benefits.”
“Saudi investors have been coming to Pakistan in recent months, and engaged with the SIFC in terms of exploring opportunities for Saudi investments in Pakistan, and this is an ongoing process, and we expect similar high-level business delegations to undertake visits to Pakistan in the coming days and weeks as well,” foreign office spokesperson Mumtaz Zahra Baloch told reporters in her weekly media briefing.
She added that both countries were involved in robust and mutually beneficial dialogue that had gained significant momentum in recent months.
“Pakistan and Saudi Arabia are engaged in consultations with each other in terms of increased Saudi investments in Pakistan, including in the energy domain,” she added.
Asked about reports of Pakistan providing military bases to the United States, Baloch called them baseless rumors.
“Pakistani has no plan to provide any bases to a foreign country against any other country,” she continued.
Speaking about the Organization of Islamic Cooperation’s summit in Gambia, the spokesperson said the country’s deputy prime minister Ishaq Dar would highlight the ongoing genocide in Gaza, the right to self-determination of the people of Jammu and Kashmir, the imperatives of solidarity and unity of the Muslim Ummah, rising Islamophobia, issues of climate change, terrorism, and other contemporary global challenges.
She said Pakistan strongly condemned the escalating violations of human rights by Israel and increasing number of illegal Israeli settlements in the West Bank.
“Israel’s actions constitute a breach of international law, including humanitarian laws and other pertinent international laws, and these acts also undermine any prospects of a two-state solution,” she added.