Dubai's DP World announces $2.5 million in flood assistance to Pakistan

This file photo shows cranes off load containers at the Jebel Ali port terminal 2 in Dubai, United Arab Emirates, on February 8, 2009. (AP/File)
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Updated 26 September 2022

Dubai's DP World announces $2.5 million in flood assistance to Pakistan

  • The logistics firm's chief announced last week he planned to set up industrial parks in Pakistan
  • Sheikh Sultan bin Sulayem said Pakistan had a huge investment potential and human resource

ISLAMABAD: DP World, one of the world’s largest logistics and port terminal operators headquartered in Dubai, has announced donating $2.5 million to Pakistan, the United Arab Emirates (UAE) embassy said on Sunday, after massive floods caused widespread death and destruction in the South Asian country. 

Cataclysmic floods have killed at least 1,638 people, displaced more than 33 million and inundated a third of Pakistan since the onset of monsoon season in mid-June. 

The deluges have damaged millions of homes, swept away livestock and standing crops, causing an estimated loss of $3 billion to the South Asian country, already grappling with an economic crisis. 

The announcement of $2.5 million donation came after DP World Chairman Sheikh Sultan bin Sulayem's meetings with Pakistan President Arif Alvi and Army Chief General Qamar Javed Bajwa. 

"DP World supports the relief efforts in the aftermath of floods and torrential rains that hit large parts of the Islamic Republic of Pakistan and announces to donate $2.5 million dollars to the Pakistan Army's Flood Relief account," the UAE embassy in Islamabad said on Twitter. 

The DP World chairman arrived in Pakistan on Friday to assess the scale of the disaster, which officials have blamed on human-driven climate change. 

Sheikh Sultan said he was interested in setting up industrial parks in Pakistan, which had a huge investment potential and availability of human resource.  

“The vision I have is to open industrial parks in Pakistan which will be equipped with modern infrastructure,” he said at a press conference in Karachi on Friday.  

"Human resource is no problem in Pakistan as the country has many highly educated engineers, who will work in these industrial parks."  

The Dubai-based logistics firm already operates a container terminal at the Karachi port. 

Pakistan and the UAE have close fraternal relations and bilateral cooperation in a range of fields. The UAE is also Pakistan’s largest trading partner in the Middle East and home to more than 1.6 million Pakistanis.   


’Made-in-Sialkot’ Adidas ball puts Pakistan in the World Cup

Updated 14 sec ago

’Made-in-Sialkot’ Adidas ball puts Pakistan in the World Cup

  • Sialkot has a rich history of making soccer balls and other sporting equipment dating back to colonial times
  • The eastern Pakistani city made more than 43 million balls valued at $191 million in the 2021-22 financial year

SIALKOT: Even though it is a cricket-mad nation, Pakistan is playing a big part in the soccer World Cup by making the balls used on the training fields in Qatar and the replicas sold to fans worldwide. 

Forward Sports, a multinational sports equipment company in the northeastern city of Sialkot, has been working with Adidas AG for almost 20 years. It is one of the two manufacturers of Adidas’ Al Rihla, the official World Cup ball. 

Hassan Masood Khawaja director of Forward Sports, the official manufacturer of sports goods for Adidas, speaks with Reuters at his factory in Sialkot, Pakistan on November 30, 2022. (REUTERS)

Forward Sports Director Hassan Masood Khawaja said his company had made 5.5 million Al Rihla balls, including 60,000 high-quality replicas of the balls used in matches, only without the real-time technology helping referees with offside and line calls. 

They are used by the teams as they train in Qatar, and sold as a premium product to football enthusiasts across the globe, with the rest sold as lower-priced leisure and souvenir balls. The match balls are made in China. Adidas declined to identify the manufacturer. 

A worker conducts the final check to fix any cavity in the seams of a ball inside the soccer ball factory in Sialkot, Pakistan December 2, 2022. (REUTERS)

For the company, the contract is a source of pride. 

“More than business, it is a matter of prestige and honor for us to make the World Cup ball,” Khawaja said. 

“How do we do it? It’s the skill of the people ... and our love for the sport,” he said. 

Workers check the finish of the soccer balls before packing them inside the soccer ball factory, in Sialkot, Pakistan November 30, 2022. (REUTERS)

While soccer is popular among fans, the national side is ranked 194 out of 211 countries by FIFA. Cricket reigns supreme. 

Sialkot has a rich history of making soccer balls and other sporting equipment dating back to colonial times. 

Pakistan remains one of the world’s biggest manufacturers of soccer balls, along with China and India. The local chamber of commerce said more than 43 million balls valued at $191 million were made in Sialkot in the 2021/22 financial year. 

About 8 percent of Sialkot’s population of around 1 million people work in the industry, but many say they have little time to actually see their product in action. 

“We work all day,” said Forward Sports quality control inspector Amna, when asked if she watched soccer. “At night, when we go home, we need to rest.”


Pakistan’s central bank reserves decline to near four-year low

Updated 09 December 2022

Pakistan’s central bank reserves decline to near four-year low

  • Central bank data shows Pakistan’s liquid foreign exchange reserves stand at $6.7 billion
  • Forex reserves can only cover one month of imports, says finance expert Tahir Abbas

ISLAMABAD: As the forex reserves of Pakistan’s central bank decreased by $782 million to a four-year low of $6.7 billion during the week that ended Dec. 2, a financial expert on Friday said the country needed to employ efforts on a “war footing basis” to manage the crisis.

The State Bank of Pakistan’s (SBP) data showed that it was only left with liquid foreign exchange reserves worth 6.7 billion during the week that ended on December 2. The central bank’s net reserves with other banks remained at $5.867 billion, bringing the country’s total reserves to $12.58 billion.

The last time the central bank’s reserves were this low was on January 18, 2019, when it had some $6.64 billion in reserves.

The South Asian nation is already undergoing a financial crunch, largely aggravated by the unprecedented floods that affected more than 33 million people. Results from a damage assessment survey estimated that the deluges have cost the country more than $30 billion in damages.

“Pakistan’s forex reserves have fallen to a critical level that can only cover one month of imports,” Tahir Abbas, head of research at Arif Habib Limited, a Pakistani security brokerage firm, told Arab News.

“The government needs to manage the foreign exchange reserves on a war footing basis by expediting the process to complete the impending review of the International Monetary Fund (IMF),” he added.

He added that the completion of the IMF review will not only help inflows from the global money lender, but also from other multinational lenders.

Abbas said to meet the deficit, the government is also trying to arrange $4.2 billion from Saudi Arabia under an emergency relief package, including $3 billion in deposits and $12 billion worth of oil on deferred payments.

“In addition, the government needs to stop the bleeding on the Current Account Deficit (CAD) because the country has to run the CAD at a minimum side,” Abbas said.

The IMF review for the release of Pakistan’s next tranche of funding has been pending since September, which has left the country in dire need of external financing.

Islamabad has said all targets for the IMF review have been completed and that withholding a tranche despite that would not make sense.


Pakistan’s top court declares agreement for Reko Diq revival legal

Updated 09 December 2022

Pakistan’s top court declares agreement for Reko Diq revival legal

  • Pakistan’s top court blocked Reko Diq’s implementation in 2013 over contractual issues
  • Government consulted experts, Balochistan Assembly taken into confidence, observes court

ISLAMABAD: Pakistan’s top court on Friday declared an agreement between the country and two international firms, for the development of the Reko Diq mine, as legal, local media reported.

The Reko Diq mine is located in Pakistan’s southwestern Balochistan province which is said to have one of the world’s largest undeveloped copper and gold deposits. The development of the project was suspended in 2011 after Pakistan denied the Tethyan Copper Company, a joint venture between Barrick Gold of Canada and Antofagasta Minerals of Chile, license to continue work.

The country’s Supreme Court blocked the Tethyan Copper Company in 2013 from developing Reko Diq following a court case on how the contract had been awarded. However, Pakistan reached an out-of-court settlement with the mining firms in March this year to avoid paying the $9 billion penalty announced by the World Bank’s arbitration court, and the government said it was hopeful that Barrick and its partners would invest $10 billion in the project.

The verdict was announced by a five-member bench headed by Chief Justice Umar Ata Bandial.

“In its 13-page short order issued today, the court observed that the government had entered the agreement after consulting experts, as per the court order, and the Balochistan Assembly was taken into confidence regarding the agreement,” Dawn, a leading newspaper in Pakistan, reported.

The court observed that the Balochistan Assembly lawmakers were briefed on the matter and they did not raise any objections to the agreement, Dawn said. It said the court order noted that Barrick Gold Corporation had assured labor rights would not be violated during the project’s implementation and that the agreement met environmental requirements.

“There was nothing illegal in the new Reko Diq agreement, the court concluded, adding that it was also not in violation of its 2013 judgment,” Dawn reported.

The revival of Reko Diq project is expected to give a fillip to the economy by creating a more positive investment sentiment and increasing employment opportunities in the country.


FM Bhutto-Zardari urges world to shed ‘stereotypical’ image of Pakistan

Updated 09 December 2022

FM Bhutto-Zardari urges world to shed ‘stereotypical’ image of Pakistan

  • Bhutto-Zardari urges countries to lift travel advisories against Pakistan
  • The foreign minister is on a three-day visit to Indonesia and Singapore

ISLAMABAD: Foreign Minister Bilawal Bhutto-Zardari urged the world to let go of Pakistan’s “stereotypical” image and invited countries to look at the country with a fresh perspective, Singaporean English-language daily The Strait Times reported on Friday.

Bhutto-Zardari, who embarked on a three-day visit to Indonesia and Singapore from December 7-9, told the Singaporean publication that Pakistan had many opportunities to offer to the world, therefore, countries should revive their travel advisories against it.

On Friday, the minister held a meeting with his Singaporean counterpart, Dr. Vivian Balakrishnan, reviewing the state of bilateral relations, enhancement of bilateral engagements and cooperation.

Pakistan also offered support to the Association of Southeast Asian Nations (ASEAN) led processes in the Asia Pacific region.

“As a young political leader, I strongly feel that the world needs to have a fresh look at Pakistan, away from its stereotypical image,” Bhutto Zardari said.

“There are so many opportunities in Pakistan awaiting the world, for which the first step is to lift the travel advisories against the country,” he added.

The foreign minister said he felt strongly that the world “needs to look at us more objectively, as a promising emerging market.”

He said exchanges between Singapore and Pakistan over the years had lost momentum.

“[I am going to] to revive that momentum and intensify our bilateral exchanges. Pakistan is keen to strengthen this relationship in all dimensions,” he said.

Highlighting the political and socioeconomic challenges that Pakistan had been facing for the last few decades, Bhutto-Zardari said the country had come a long way.


After devastating floods, World Food Program calls for converting Pakistan’s debt to hunger relief

Updated 09 December 2022

After devastating floods, World Food Program calls for converting Pakistan’s debt to hunger relief

  • Floods have caused an additional 7.6 million people to become food insecure, WFP official says
  • 20.6 million people, as per UN data, need humanitarian assistance in flood-ravaged Pakistan

ISLAMABAD: The World Food Program (WFP) has stressed converting the debt of disaster-affected countries like Pakistan to hunger relief, as the number of food-insecure people rises to 14.6 million in Pakistan following the devastating floods this year, a senior WFP official said on Thursday.

The cash-strapped South Asian nation had already been going through a serious financial crunch before the heavy monsoon rains hit in mid-June this year, triggering unprecedented floods that, at one point, left a third of the country’s territory submerged. Governmental estimates show the floods affected more than 33 million people or one in every seven Pakistanis.

Raging floods swept away huge swaths of crops, leaving already impoverished families struggling to get access to food and clean drinking water. With the country already undergoing a foreign reserves shortage, farmers and officials have warned that Pakistan now faces serious food shortages at a time when food prices around the world are high.

After a damage assessment survey, Pakistani officials have estimated that the deluges have cost the country more than $30 billion in damages.

“In general, food insecurity has doubled in Pakistan because of the floods, meaning the country has seven million food insecure people, and floods have added almost 7.6 million people more [to that number],” Arif Husain, WFP’s chief economist, and director research assessment and monitoring division, told Arab News in Islamabad.

“So now, we are talking about 14.6 million people, which is a huge jump.”

Based in Rome, Italy, Husain’s work focuses on analyzing food security and welfare conditions in developing countries to inform humanitarian and development responses.

“One thing which we are proposing is that maybe we need to think about debt relief for hunger relief, meaning if we can have debt relief for climate, why not debt relief for hunger relief?” he said.

“These poor countries which have too much debt can use that for exchange, for at least importing their food and fertilizers.”

Speaking about measures needed to bring down food inflation, Husain said Pakistan should consider starting trade with India.

“If China and India can trade then, we should reconsider trade with India too as it will bring food inflation down quickly,” he said, adding that the world needed to help Pakistan to enable it to afford food, fuel, and fertilizers to deal with looming food crisis.

“For Pakistan, relief is required as urgently as possible,” the WFP official said, adding that his organization was running a big operation in the South Asian nation, but others should also extend a helping hand due to the magnitude of the crisis.

“WFP alone is assisting about 2.7 million people in Pakistan right now — including Sindh, Balochistan, and southern Punjab — and that needs to continue, so we can save people’s lives,” he added.

WFP is providing technical assistance and helping in building human capital, Husain said, adding the UN body was also investing in education and nutrition.

“We are working in food for world type projects where you are building livelihoods, you are building the resilience of people, and also working with the government for the system development in terms of technical assistance providing knowledge,” he added.