Pakistan’s economic woes put PM Khan’s future in doubt

In this picture taken on January 10, 2022, a laborer drags a loaded cart at a market in Karachi. (AFP)
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Updated 19 January 2022
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Pakistan’s economic woes put PM Khan’s future in doubt

  • Although the economy is forecast to grow four percent in 2022, for the past three years it has remained largely stagnant
  • Khan argued this week that Pakistan’s problems, specifically inflation, were not unique, saying it remains “one of the cheapest countries” 

KARACHI: Housewife Maira Tayyab has considered begging for money to feed her family in inflation-hit Pakistan, while shop owner Mohammad Hanif finds his thoughts turning to crime.
They’re too proud and honest to act on the impulse, but their woes are shared by millions of Pakistanis whose disgruntlement threatens Prime Minister Imran Khan’s chances of re-election next year.
“We cannot beg as we are white-collar people,” Tayyab, 40, told AFP in Karachi, a bustling port city that is Pakistan’s financial capital.
But, she said: “We don’t know how we make ends meet.”
Inflation hit about 10 percent last year, according to the World Bank. The cooking oil price is up 130 percent since Khan took power and the cost of fuel has risen 45 percent to 145 rupees ($0.82) a liter in a year.
Tayyab’s sentiments are echoed by Kursheed Sharif, a 50-year-old mother of five, who unleashes a slew of curses as she describes her family’s woes.
“Only death seems an alternative to survival under this government,” she told AFP, close to tears, outside her unplastered rental shack.
Khan promised to sweep away decades of entrenched corruption and cronyism when his Pakistan Tehreek-e-Insaf (PTI) party swept to power in 2018.
But his failure to deliver is already being felt at the polls, and last month the PTI was soundly thrashed in provincial elections in its Khyber Pakhtunkhwa stronghold.
“The government boasts about its economic feats, but in reality it has lost its ground and credibility,” said Tauseef Ahmed Khan, a rights activist and political commentator.




Pakistan's Prime Minister Imran Khan addresses the nation on Nov. 16, 2020 in Islamabad. (PID/File)

Khan had campaigned on a platform of creating an Islamic welfare state, with efficient taxation on businesses and individuals funding social projects to benefit the poor.
Analysts admit he inherited a mess — and the Covid-19 pandemic has not helped — but his policies have done little to change the state of affairs.
“Nothing is stable,” said Rashid Alam, who works for an international bank in Karachi.
“Increased unemployment, increased inflation... this is the political and economic reality in Pakistan.”
The numbers bear him out.
Although the economy is forecast to grow four percent in 2022, for the past three years it has remained largely stagnant.
The rupee has also taken a pounding, losing 12 percent to the dollar since July — not helped by a $5 billion trade deficit, and despite forex remittances from a vast diaspora growing nearly 10 percent to $12.9 billion.
Khan argued this week that Pakistan’s problems — specifically inflation — were not unique, saying it remains “one of the cheapest countries” in the world.
There are some pluses.
The manufacturing and service sectors are rebounding as lockdowns ease, the World Bank has said, and better rains this year will boost agriculture.
But the biggest problem facing the economy is servicing nearly $127 billion in debt.




In this picture taken on January 10, 2022, a laborer drags a loaded cart at a market in Karachi. (AFP)

Khan successfully negotiated a $6 billion International Monetary Fund (IMF) loan package in 2019, but only a third was paid before the tap turned off after the government failed to implement promised reforms — including slashing subsidies on a range of essentials.
Pakistan has had to accept painful conditions, such as increasing petrol and electricity prices.
Ahead of an IMF meeting later this month to decide whether to release another tranche, the government has pushed through a mini-budget — with new or increased taxes on a range of imports, exports and services — that has drawn the ire of millions.
“Can you imagine oil and sugar prices reaching this level?” housewife Sharif lamented.
On the brink of defaulting, Islamabad has recently tapped $3 billion each from China and Saudi Arabia, and $2 billion from the United Arab Emirates.
“All the loans it has been taking now, from whatever sources, are to pay past loans,” said Qaiser Bengali, an independent economist.
“Essentially the economy is bankrupt. Pakistan cannot pay its loans.”
Still, nobody seems prepared to pay for services they want.
Tax evasion is almost a national sport — fewer than two million people paid in 2020, from a working population 25 times that — and receipts account for less than 10 percent of gross domestic product, the lowest in the region.
That sort of chicanery prompts Muhammad Hanif, who runs a small car-battery repair shop, to think of new ways to support his family.
“(Criminal) thoughts occupy me as to how I must meet ends,” he said.
“But I fear Allah, so I shrug off those thoughts.”


Saudi chemicals giant SABIC targeting net zero by 2050, CEO says

Abdulrahman Al-Fageeh (R), CEO of the Saudi Basic Industries Corporation.
Updated 21 sec ago
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Saudi chemicals giant SABIC targeting net zero by 2050, CEO says

  • SABIC aims to convert 1 million tons of waste into feedstock for the petrochemical industry by 2030, Al-Fageeh said

RIYADH: Saudi Arabia’s top chemicals company is turning to circular economy solutions to reach carbon neutrality by 2050 and advance the Kingdom’s net-zero agenda, its CEO has said.

Abdulrahman Al-Fageeh, CEO of the Saudi Basic Industries Corporation, was speaking at the “Demand for Energy ... Transforming Costs into Gains” panel during the special meeting of the World Economic Forum in Riyadh.

SABIC aims to convert 1 million tons of waste into feedstock for the petrochemical industry by 2030, he said.

The circular carbon economy has helped the chemicals sector expand its investment horizon since 2020, he added.

Al-Fageeh said that SABIC marked achievements in energy efficiency and reduced its carbon footprint at the end of 2023 by 12.74 percent. The company is targeting carbon neutrality by 2050.

SABIC has also adopted alternative energy from plastic waste, seeking to produce 1 million tons of sustainably sourced chemicals by 2030.

Energy efficiency

Al-Fageeh said that his company had started sustainability programs at an early stage, improved reliability, developed 90 initiatives and projects, and closed a number of sites due to ineffectiveness.

In 2023, SABIC had more than 200 patents, 40 percent of which related to sustainability in energy efficiency.


Concierge robots set to become reality in the hospitality sector 

Updated 1 min 47 sec ago
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Concierge robots set to become reality in the hospitality sector 

RIYADH: A personal robot concierge is set to become a reality as a new wave of technological innovation takes the spotlight during the Future Hospitality Summit in Riyadh. 

In an interview with Arab News during the event, Janet Adams, chief operating officer of global artificial intelligence company SingularityNET, shared details about a new humanoid robot expected to revolutionize the hospitality sector. 

“One of our projects which we are pioneering right now is the development of a new class of humanoid robots specifically designed for the service industries,” Adam told Arab News. 

“Imagine going to stay in a hotel where you’ve connected with your robot before you go there. They know everything you want. They can greet you at the door because you’ve been chatting as an avatar,” she said. 

“And then after you leave, they can stay in touch with you and they can be like a loyalty ambassador, robotic avatar, friend for life who understands your needs, who understands what you enjoy, who makes everything perfect for you in your stay in the hospitality industry,” Adams added. 

Janet Adams, chief operating officer of global artificial intelligence company SingularityNET. AN photo by Huda Bashatah

She further explained that the development, known as the Mind Children project, will roll out its pilot in early 2025. 

Furthermore, Adams shared that the company is working on a new breed of technological advancement for AI in language models in the Middle East. 

The company is working with Zarqa, a Middle Eastern AI firm part of SingularityNET’s ecosystem, to significantly improve AI language models.

 “What we’re doing is we’re taking the best of today’s large language model technology, and we’re infusing it with the best of tomorrow’s artificial general intelligence technology, because we’re leaders in the field of artificial general intelligence,” Adams explained. 

“And sometime within the next 12 to 24 months, we expect to see enormous breakthroughs where the limitations of today’s language models are overcome, where we can bring human level reasoning or human style reasoning into our robots and therefore give them the capability to be creative, to understand their environment, to really, truly contribute as a, for example, to hospitality services,” she added. 

During the event, SingularityNET also showcased Desdemona, a humanoid robot and the lead vocalist of the Jam Galaxy Band. 

“She runs up a huge array of advanced artificial intelligence models. She’s working with vision, with speech processing. We work with toxicity filters. We work with emotion recognition, facial recognition. We have a variety of AI models, including Markov decision-making and generative adversarial networks,” she explained.  

“And a bunch of the most advanced AI that’s available on the planet. Together. All work together in this, in what looks like a seamless operation of multiple modules working together. She’s truly a highly advanced miracle of modern AI,” Adams added. 


Dubai launches major AI economic strategy

Updated 4 min 30 sec ago
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Dubai launches major AI economic strategy

  • Crown prince said initial phase of plan, by leveraging AI, would enhance quality of life and well-being for Dubai residents

RIYADH: Dubai’s crown prince on Monday launched a major artificial intelligence drive across government, business and education in the emirate.

The Dubai Universal Blueprint for Artificial Intelligence aims to achieve the Dubai Economic Agenda D33 — to double the size of the economy by 2033 — by adding AED100 billion ($27 billion) from digital transformation and increasing economic productivity by 50 percent.

The strategy includes appointing chief Al officers in government entities, the launch of a Dubai AI and Web3 campus, the launch of AI weeks at the emirate’s schools, a plan to attract data centers and the launch of a trade license for AI.

Sheikh Hamdan bin Mohammed Al-Maktoum said that the initial phase of the plan, by leveraging AI, would enhance quality of life and well-being for Dubai residents.

 

“Dedicated incubators and campuses for artificial intelligence will be launched to further enhance Dubai’s vibrant AI ecosystem, and finally AI will be celebrated in Dubai schools with the introduction of an AI week,” he said on X.

“We will annually review, update and introduce new projects under this plan, ensuring it keeps pace with all developments. Dubai is a city centered around its people, and to this end, we will dedicate all our resources and energy to make it the happiest place in the world.”

The crown prince said: “In 1999, his highness Sheikh Mohammed bin Rashid Al-Maktoum initiated the pioneering journey of the future by launching Dubai’s digital transformation, a venture that has continued to achieve milestones, leading to the recent unveiling of the Dubai Digital Strategy last year.

“We have realized record-breaking accomplishments that have established us as the premier hub for billion-dollar global enterprises in the technology and artificial intelligence sectors within the region,” he added.

Sheikh Hamdan said that the evolution of AI is presenting opportunities for nations and governments, but posing challenges to those unable to keep pace.

For Dubai, this requires a “swift and adaptive action plan,” responding to the “rapid changes in technology and AI,” he added.


UAE clothing brand ‘The Giving Movement’ donates over $800,000 to Gaza

Updated 10 min 47 sec ago
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UAE clothing brand ‘The Giving Movement’ donates over $800,000 to Gaza

  • Donations earmarked for hot meals, food packages, and the provision of emergency shelter

DUBAI: A UAE-based sustainable clothing brand said on Monday that it had contributed more than AED 3 million ($816,798) in emergency relief aid for Gaza since the beginning of Israel’s war on the Palestinian enclave.
All proceeds donated to Dubai Cares charity by The Giving Movement were earmarked for the delivery of crucial support to Palestinians in Gaza, including hot meals, food packages, and the provision of emergency shelter.
The brand raised the money through the “Gaza In Our Hearts” fundraising campaign.
Dubai Cares has forged a partnership with American Near East Refugee Aid, a nongovernmental organisation, collaborating closely with UN agencies, diplomatic channels, and other NGOs to establish aid channels for swift and effective delivery of life-saving supplies.
Dr. Tariq Al-Gurg, CEO of Dubai Cares, commended the clothing brand for its philanthropic efforts.
“The Giving Movement has truly embodied its brand name and set an example for other brands to make a positive impact on the lives of those who urgently need our assistance,” he said.
Dominic Nowell-Barnes, founder of The Giving Movement, said: “Our collaboration with Dubai Cares underscores our commitment to standing with the community and providing assistance to those in need.


 


Pakistani PM meets Malaysia’s Ibrahim on WEF sidelines, invites on official Islamabad visit 

Updated 2 min 59 sec ago
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Pakistani PM meets Malaysia’s Ibrahim on WEF sidelines, invites on official Islamabad visit 

  • Shehbaz Sharif was in Riyadh to attend a WEF special meeting on Global Collaboration, Growth and Energy for Development on April 28-29
  • The Pakistan PM invited Malaysian traders and businessmen to visit Pakistan to discuss expansion of bilateral trade, investment relations

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Monday met his Malaysian counterpart Anwar Ibrahim in Riyadh and invited him to visit the South Asian country, Sharif’s office said. 
The two leaders met on the sidelines of a two-day World Economic Forum (WEF) summit in Saudi Arabia’s capital of Riyadh, according to PM Sharif’s office.
During the meeting, both sides agreed to further develop relations.
“The two leaders also agreed to hold the next meeting of the Joint Ministerial Commission in Islamabad soon,” Sharif’s office said in a statement. 
“The prime minister reiterated his invitation to Malaysian Prime Minister Anwar Ibrahim to pay an official visit to Pakistan.”
The two leaders discussed bilateral ties in the fields of education, science and technology, livestock and trade, and vowed to further enhance cooperation in the future, according to the statement.
PM Sharif also invited Malaysian traders and businessmen to visit Pakistan to discuss the expansion of bilateral trade and investment relations.
The Pakistan prime minister was in Riyadh to attend the WEF special meeting on Global Collaboration, Growth and Energy for Development on April 28-29.
Sharif spoke about Gaza at the closing plenary of the two-day summit and held several bilateral meetings, particularly with Saudi officials, during the visit.