Pakistan’s central bank restricts export of US currency notes amid shortage of greenback in open market

A Pakistani dealer counts US dollars at a currency exchange shop in Karachi, Pakistan, on October 9, 2018. (AFP/File)
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Updated 07 September 2022
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Pakistan’s central bank restricts export of US currency notes amid shortage of greenback in open market

  • Economists say the measure may have little impact since dollar smuggling to neighboring Afghanistan continues
  • Exchange companies say the government has taken the right decision amid depreciation of the local currency

ISLAMABAD: Pakistan’s central bank has directed all exchange companies to seek prior permission for export of US dollar currency notes which had been allowed last month to boost the foreign exchange flow into the interbank market.

The State Bank of Pakistan’s directive comes at a time when the rupee is depreciating against the US dollar in the interbank market despite the disbursement of $1.16 billion by the International Monetary Fund (IMF) last week which marked the revival of the Extended Funded Facility program.

The rupee lost Rs2 against the US dollar in the interbank market on Wednesday, as the greenback continued to strengthen globally with the dollar index.

“The US dollar is in short supply in the market now, and the state bank has taken the right decision at the right time to restrict its export,” Zafar Paracha, general-secretary of the Exchange Companies Association of Pakistan (ECAP), told Arab News.

The central bank through a notification effective from today (Wednesday) said that exchange companies “shall seek prior approval from SBP for such export of USD currency notes.”

“Exchange companies are advised to ensure meticulous compliance with these instructions,” the notification read.

All the currency exchange companies in Pakistan are allowed to export US dollar currency notes to bring them back in remittances through the interbank market. This conversion of foreign exchange in the US dollars helps stabilize the interbank market and boost foreign exchange reserves to pay for the import bill.

“The state bank sometimes allows us to export the US dollar currency notes as well which are soiled, old notes which banks don’t accept or when the dollars are in abundant supply in the open market,” Paracha informed.

The central bank allows the export of the foreign exchange through cargo after proper vetting from relevant agencies, he said, adding that an exchange company is allowed to export from two million to four million dollars, depending on its business size.

“The exchange companies are then required to bring back this money through banks within 48 hours,” he said, adding the latest restriction on the exports would help bridge a gap between the interbank and open market price of the dollar against the rupee.

“The state bank is vigilant and it is taking all necessary measures to stabilize the country’s currency market,” Paracha added.

Economists remain skeptical about the desired impact of the measure taken by the central bank.

“This restriction is on the official export of the USD currency notes which may have little effect in the market, but we don’t see any significant measure to curb the dollar smuggling to neighboring Afghanistan,” Syed Atif Zafar, chief economist at Topline Securities, told Arab News.

“The dollar is still around ten rupees costlier in the open market,” he said, adding the recent devastating floods in Pakistan had also forced the government to import agricultural products, especially vegetables, which had increased the dollar demand in effect.

Zafar said another reason behind the appreciation of dollar and price difference in the open and interbank market was the UAE government’s regulation for Pakistani travelers to carry at least 5,000 dirhams in cash.


Pakistan launches special cybercrime unit under controversial PECA law, shifts role from FIA

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Pakistan launches special cybercrime unit under controversial PECA law, shifts role from FIA

  • The agency will be led by director general with 15-year experience in digital forensics or public administration
  • Pakistan’s information minister recently spoke against online harassment, emphasized upholding of digital rights

ISLAMABAD: Pakistan has established a new investigation unit under the Prevention of Electronic Crimes Act (PECA) 2016, tasked solely with focusing on cybercrimes in the country, a role previously performed by a dedicated wing of the Federal Investigation Agency (FIA).

The PECA law was originally enacted to combat various forms of cybercrime, including cyber terrorism, unauthorized access, electronic fraud and online harassment, aiming to enhance the security of cyberspace for users and businesses.

However, the law stirred controversy, particularly because its provisions were seen by critics as tools that could potentially curb freedom of speech and suppress dissent.

These concerns were also validated by instances of journalists being booked under the law, with courts raising objections regarding its application.

“There shall hereby stand established the National Cyber Crime Investigation Agency (NCCIA) to exercise jurisdiction under the Act and the Federal Investigation Agency (FIA) shall cease to perform functions as designated investigation agency under the Act,” said a notification taken out by the Ministry of Information Technology and Telecommunication on April 24 that referred to the PECA law.

“All personnel, cases, inquiries, investigations, assets, liabilities, rights, obligations, privileges and matters related thereto or connected therewith subsisting immediately before commencement of these rules in respect of the defunct cybercrime wing of the FIA shall stand transferred to the NCCIA,” it added.

The new investigation agency will be led by a director general who will be appointed by the government for two years.

The individual performing the role will have at least 15 years of experience “in the field of computer sciences, digital forensics, cyber technology, law, public administration, information technology, telecommunication or related fields enabling him to deal with offenses under the Act.”

The notification said the FIA’s “defunct” cybercrime wing would continue to operate until suitable appointments are made to run the new agency.

Pakistan’s information minister Attaullah Tarar announced only a day ago that the government was setting up a new authority to end online harassment and uphold the digital rights of the people.


Pakistan calls for immediate ceasefire in Gaza ahead of OIC summit in Gambia

Updated 03 May 2024
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Pakistan calls for immediate ceasefire in Gaza ahead of OIC summit in Gambia

  • Ishaq Dar demands joint action by Muslim states at an OIC preparatory meeting to confront rising Islamophobia
  • The Pakistani deputy PM will meet leaders from other Muslim countries at the two-day summit starting Saturday

ISLAMABAD: Pakistan on Friday demanded an immediate and unconditional ceasefire in Gaza along with a humanitarian corridor for international aid agencies to provide relief to the people of Palestine ahead of the Organization of Islamic Cooperation’s summit in Gambia this weekend.

The ceasefire call was issued by the country’s newly appointed deputy prime minister, Ishaq Dar, while addressing the summit’s preparatory meeting in the Gambian capital of Banjul, where he arrived on Wednesday.

Dar is scheduled to participate in the OIC summit, convened to discuss and address major issues affecting the Muslim world, ranging from political and economic challenges to social and cultural matters.

These summits aim to promote Muslim solidarity in social and political affairs, coordinate efforts to safeguard the interests and well-being of Muslims and work toward resolving conflicts and issues in the Muslim world.

“Dar expressed Pakistan’s deep concern about the ongoing genocide and starvation of Gaza people and called for the reactivation of OIC’s Ministerial Committee on Israeli aggression against the Palestinians, offering Pakistan’s assistance to the body,” said the state-owned Associated Press of Pakistan (APP) news agency.

The report said he called for an end the Israeli siege leading to a humanitarian crisis for the people of Palestine and to hold Prime Minister Benjamin Netanyahu’s administration accountable for its “war crimes.”

“Ishaq Dar stressed the imperative of joint action by the OIC to confront rising Islamophobia, which was manifested by an increasing number of incidents of discrimination, violence, and incitement against Muslims around the world,” the APP report continued.

“He stated that while global social media platforms had set for themselves a clear understanding and the responsibility of content relating to ‘Antisemitism’ and ‘Holocaust denial’, same was not the case for blasphemous and anti-Islamic content that was responsible for widespread distress among Muslims and the global wave of Islamophobia,” it added.

The Pakistani deputy prime minister is scheduled to interact with leaders of other Muslim states at the two-day OIC summit beginning on Saturday.


Pakistan expands Makkah Route Initiative to Karachi, plans flights for Hajj pilgrims from May 9

Updated 03 May 2024
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Pakistan expands Makkah Route Initiative to Karachi, plans flights for Hajj pilgrims from May 9

  • Saudi staff will have access to eight counters and required equipment at Karachi airport’s international departure area
  • Pakistan first joined the Makkah Route Initiative in 2019 as part of a pilot program that was introduced in Islamabad

ISLAMABAD: In a major development for Hajj pilgrims in Pakistan, the government plans to launch flight operation to Saudi Arabia under the expanded Makkah Route Initiative to the southern port city of Karachi from May 9, according to an official statement released on Friday.
The initiative, launched by Saudi authorities in collaboration with several Muslim-majority states, facilitates the annual Islamic pilgrimage for numerous people traveling to Makkah.
Under the initiative, tasks like immigration processing are completed in the pilgrim’s home country, allowing them to bypass these procedures upon arrival in Saudi Arabia. This not only reduces waiting times and congestion at Saudi airports but also enhances the overall experience for pilgrims by making their journey more comfortable and focused on spirituality.
Pakistan joined the initiative in 2019 as part of a pilot program that began in Islamabad. Its success led to plans for the program’s expansion to other cities, with pilgrims from Karachi preparing to benefit from it for the first time this year.
“The Hajj flights under the Road to Makkah Project will commence on 09 May and conclude on 08 June,” the statement circulated by Pakistan Civil Aviation Authority said, adding that all the relevant agencies at Karachi’s Jinnah International Airport have assured of unwavering commitment for the successful implementation of the program.
The official statement was released after a meeting at the Karachi airport that focused on the initiative.
All stakeholders, including airline representatives, ground handling agencies, border health services, airport security, Federal Investigation Agency, customs and Anti-Narcotics Force were present during the deliberations.
The meeting focused on the procedures involved at different stages of Hajj pilgrims’ stay at the airport, beginning with their arrival at the facility until their departure, following Saudi immigration formalities.
It was agreed that Saudi staff would have access to eight counters and all the required equipment in the international departure satellite area.
The airport manager stressed the importance of providing a seamless experience to pilgrims and urged all agencies to treat and welcome them as honored guests.


Senior journalist among three killed in bomb attack in Balochistan on World Press Freedom Day

Updated 03 May 2024
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Senior journalist among three killed in bomb attack in Balochistan on World Press Freedom Day

  • Khuzdar Press Club president was killed after a motorcyclist attached an explosive device to his vehicle
  • Journalists say media workers were also killed in the past but their murderers were never brought to justice

QUETTA: A senior journalist was killed in a powerful blast that claimed at least two other lives in Pakistan’s volatile southwestern Balochistan province, confirmed a senior administration official on Friday, after a motorcyclist attached an explosive device to his vehicle at a bustling market area.

The incident that took place in Khuzdar, a remote city in the region, on World Press Freedom Day sent shockwaves through the media community in the province that has witnessed much violence in the last couple of decades.

Maulvi Muhammad Siddique Mengal, the targeted journalist, was currently the president of the Khuzdar Press Club and had also received threats from unknown individuals in the past.

“President of the Khuzdar Press Club Maulvi Muhammad Siddique Mengal and two bike riders near his vehicle were killed in the attack,” Deputy Commissioner Khuzdar Arif Khan Zarkoon told Arab News after the emergence of the CCTV footage of the attack. “Five people were injured who were shifted to the District Hospital Khuzdar for treatment.”

“Mengal was traveling in his private vehicle to a mosque to offer Friday prayers when an unknown man attached a magnetic explosive device to his vehicle which exploded at Chamrook Chowk and killed him on the spot,” he added.

So far, no group has claimed responsibility for the attack.

“Maulvi Siddique Mengal had been receiving threats from unknown people for the last year,” said one of the local journalists who requested anonymity. “He survived a firing attack nine months ago. Journalism has become a life-threatening profession in Khuzdar. We even closed Khuzdar Press Club for more than six months after threats by unknown people in 2012.”

Pakistan is considered one of the most dangerous places in the world for journalists, particularly for those working in the country’s western Balochistan and Khyber Pakhtunkhwa provinces. According to the Committee to Protect Journalists (CPJ), an international organization working for journalists’ safety, at least 62 media workers have been killed in targeted attacks in Pakistan since 1992.

The Balochistan Union of Journalists (BUJ) has strongly condemned Mengal’s murder, demanding the arrest of the perpetrators of the Khuzdar blast.

Khalil ur Rehman, the BUJ president, said targeting a journalist on World Press Freedom Day was an attempt to suppress the voice of media workers in Balochistan.

“Forty-two journalists have lost their lives in Balochistan over the last two decades, while 10 journalists were killed in Khuzdar district during the last decade, but not a single murderer of journalists has been arrested yet,” he told Arab News. “Journalists in Balochistan are already facing security challenges, but this attack indicates that targeted attacks against journalists have started again.”

Mir Sarfaraz Bugti, chief minister of Balochistan, has strongly condemned Mengal’s killing, ordering an investigation into it.

“The Balochistan government will utilize all resources to arrest the perpetrators involved in the killing of the senior journalist in Khuzdar,” he said in a statement. “Terrorists involved in sabotaging peace in Balochistan won’t succeed.”


Global advocacy group says over 300 journalists faced state repression in Pakistan in one year

Updated 03 May 2024
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Global advocacy group says over 300 journalists faced state repression in Pakistan in one year

  • International Federation of Journalists says 8 media workers were charged for sedition, terrorism, incitement to violence
  • It mentions the plight of Afghan journalists in exile, safety issues of Pakistani women journalists in online and offline spaces

ISLAMABAD: A leading global advocacy group for journalists’ rights on Friday highlighted alarming challenges faced by the media in Pakistan on Friday, saying that more than 300 people associated with the information industry faced repressive state tactics designed to quell dissent during the course of about a year.

The International Federation of Journalists (IFJ) released its country report on Pakistan on World Press Freedom Day that falls on May 3.

The report highlighted the persistent threats to freedom of expression, safety concerns, gender inequality, and the impact of disinformation on the local media industry.

“Over 300 journalists and bloggers this year were affected by state coercion and targeted, including dozens of journalists arrested for durations between several hours to four weeks and nearly 60 served legal notices or summons for their journalism work or personal dissent online,” the IFJ Pakistan country report for 2023-2024 said. “At least eight were charged for alleged sedition, terrorism and incitement to violence – all serious charges carrying lengthy sentences and even the death penalty.”

It maintained that most of these cases stemmed from the perceived or actual support of these journalists for former prime minister Imran Khan and his political party.

“In this sense, the principal threat actor behind crimes against journalists and free speech practitioners was undoubtedly the state and its functionaries, though some regional sects, non-state actors and gangsters were also involved in some cases,” the report added.

The IFJ described the judicial intervention in these matters as “the silver lining,” saying it thwarted the government’s attempts to entangle journalists “in legal proceedings as a tool of deterring dissent.”

The report noted four journalists were killed during the period under review while at least 59 journalists and bloggers were charged with sedition, terrorism, incitement to violence, defamation or contempt.

“Of these, 47 journalists were served legal summons to respond to allegations of targeted defamation and incitement against judges of the superior judiciary,” it continued.

The report also maintained the safety of women journalists in Pakistan’s online and offline spaces remained a persistent challenge.

“They continued to face gender-based discrimination, journalism work-related intimidation and under-representation in the industry,” it said.

The IFJ said this environment led to self-censorship among journalists and media outlets, especially while writing on topics concerning religion and law.

It also highlighted the plight of Afghan journalists, saying nearly 200 of them had fled to Pakistan after the Taliban takeover in August 2021.

“In October 2023, Pakistan’s government unilaterally demanded that Afghan refugees return to Afghanistan, setting a deadline of one month before authorities began forced deportations,” it recalled. “Amongst the refugees were 200 journalists who had fled to Pakistan to escape stifling restrictions on free speech in Afghanistan.”

The organization said it had called for financial and legal assistance for these journalists to support their sustenance and freedom to report.