Pakistan finance minister sees rupee strengthening vs U.S. dollar

Pakistan's Finance Minister Ishaq Dar speaks during a news conference in Islamabad on April 23, 2014. (REUTERS/File)
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Updated 04 October 2022
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Pakistan finance minister sees rupee strengthening vs U.S. dollar

  • The rupee is currently at around 227 to dollar and the currency has been in turmoil
  • Pakistan currently has just $8 billion in reserves, barely covering a month of imports

KARACHI: Pakistan’s newly appointed finance minister said on Monday that the country’s currency will strengthen to under 200 rupees to the U.S. dollar.

The rupee is currently at around 227 to the U.S. dollar, and the currency has been in turmoil, falling as much as 30 percent this year.

“The rupee’s real value is below 200 (to $1), and, God willing, it will come below 200 (rupees),” Minister Ishaq Dar said in an interview with local television channel Geo News.

He added that the rupee would be strengthened through government “policies” as the current rate was inflated due to speculation.

Dar, who was sworn in last week as finance minister for his fourth stint in the role, has strongly favored intervention in currency markets in the past.

Since Dar took over, the rupee has strengthened. According to central bank figures, Pakistan currently has just $8 billion in reserves, barely covering a month of imports, making market intervention through currency injections difficult.

The country was only recently able to restart an International Monetary Fund (IMF) bailout package after agreeing to undertake difficult reforms.

One of the agreements was to implement a market-determined exchange rate and to stop government intervention in the central bank.

Dar also defended his decision to slash fuel prices days after taking over — reversing a policy of raising prices monthly through added levies to ensure enhanced revenues as agreed with the IMF.

Dar said imposing additional levies was not justified as the country struggled with catastrophic floods that have killed more than 1,600 people and inflicted at least $30 billion in damages.

“I have been dealing with the IMF for the last 25 years; I will deal with it,” he said, referring to any potential reservations by the lender.

On Monday, the IMF said policy discussions, including how to target support to those affected by the floods while maintaining macroeconomic stability, will commence in coming weeks after the damage assessment report becomes available.

“Policy commitments made by the Pakistani authorities as part of the Seventh and Eighth review under their IMF-support program continue to apply,” IMF’s resident representative in Islamabad Esther Pérez Ruiz told Reuters in response to a question if the cuts had been discussed with the lender.


X working with Pakistan to ‘understand concerns’ over ban

Updated 54 min 14 sec ago
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X working with Pakistan to ‘understand concerns’ over ban

  • X has been rarely accessible since Feb. 17, when jailed ex-PM Khan’s party called for protests over poll results
  • Interior Ministry said X was blocked on security grounds, according to report submitted to Islamabad High Court

ISLAMABAD: Social media platform X said Thursday it would work with Pakistan’s government “to understand its concerns” after authorities insisted an ongoing two-month ban was based on security grounds.

The platform, formerly known as Twitter, has been rarely accessible since February 17, when jailed former prime minister Imran Khan’s party called for protests following a government official’s admission of vote manipulation in the February election.

“We continue to work with the Pakistani Government to understand their concerns,” X’s Global Government Affairs team posted, in their first comments since the site was disrupted.

The Interior Ministry on Wednesday said X was blocked on security grounds, according to a report submitted to the Islamabad High Court where one of several challenges to the ban is being heard.

On the same day, the Sindh High Court ordered the government to restore access to social media platform X within a week.

“The Sindh High Court has given the government one week to withdraw the letter, failing which, on the next date, they will pass appropriate orders,” Moiz Jaaferi, a lawyer challenging the ban, told AFP.

The court’s full decision is expected to be published this week.

Both the government and the Pakistan Telecommunication Authority (PTA) had for weeks refused to comment on the outages.

“It is the sole prerogative and domain of the federal government to decide what falls within the preview of terms of ‘defense’ or ‘security’ of Pakistan and what steps are necessary to be taken to safeguard National Security,” said the interior ministry’s report, submitted by senior official Khurram Agha.

The interior ministry suggested intelligence agencies were behind the order.

The closure of a social media service “when there is request from any security or intelligence agency” is “well within the scope of provisions of the PTA act,” the report said.

Digital rights activists, however, said it was designed to quash dissent after February 8 polls that were fraught with claims of rigging.

Access to X has been sporadic, occasionally available for short cycles based on the Internet service provider, forcing users to use virtual private networks.

Mobile services were cut across Pakistan on election day, with the interior ministry also citing security reasons.

It was followed by a long delay in issuing voting results, giving rise to allegations of tampering.

Khan’s opposition party had already faced heavy censorship in the weeks before the election, banned from television channels and from holding rallies, forcing its campaign online.

Despite the crackdown, his party won the most seats but was kept from power by a coalition of rival parties that had the backing of the military.


As crime rates soar in Karachi, tea cafe deploys unlikely guards: stray dogs

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As crime rates soar in Karachi, tea cafe deploys unlikely guards: stray dogs

  • Cafe owner says dogs raise alarm whenever something out of the ordinary is about to happen, alerting security guard
  • Customers say they have bonded over time with the dogs at Chai Master and find it comforting to be around animals 

KARACHI: At a popular tea cafe in Karachi, customers sip piping hot cups of tea and chat with friends. An armed guard keeps watch for something suspicious, and with him, seven unlikely helpers: stray dogs adopted by the cafe owner.

This is the scene at Karachi’s popular tea cafe Chai Master, located in the city’s Defense Housing Authority neighborhood in a vacant plot. Pakistan’s financial hub has seen a surge in street crimes, with the Citizen Police Liaison Committee (CPLC) reporting 6,102 cases of mobile snatching from January to March 2024. Sixty persons who resisted street muggings were shot dead this year, according to police data.

The surge in street crimes in the metropolis has forced restaurants and tea cafes to hire armed guards for protection. Haris Ibrahim, Chai Master’s 33-year-old owner, did the same but found security guards were not enough for the job. 

But an incident three years ago opened his eyes to a unique, yet more effective solution: stray dogs.

In 2021, a drug addict entered Chai Master premises and started harassing Ibrahim’s customers. While his security guard proved ineffective, a stray escorted the addict out of the place, much to everyone’s relief.

“I was like, wow, this is amazing. This is brilliant,” Ibrahim told Arab News. “This is better than having an armed, like gunmen, so then I was like, ‘Okay, you know what, I’m doubling down on the dogs’.”

Now, Chai Master has seven stray dogs: Tails, Spot, Speedy, Snoopy, Dozzer, Minnie, and Buddy. Ibrahim, an animal lover, has deployed all seven at the tea cafe as a security measure for his customers.

“I slowly started constructing this pack,” he explained, adding that all the dogs are neutered, spayed, vaccinated, and properly trained to perform their duties of keeping customers safe from muggers.

To train these strays, Ibrahim began with feeding them to build a bond.

“Once a bond was developed, I used the carrot and the stick method. Meaning I would reward for behavior I encourage. For that I would have dog treats lying around,” he said.

“Penalizing for undesired behavior, for which they would get a slap from me.”

For the dogs, Ibrahim said, the undesirable behavior meant barking at customers or fighting with each other.

But how do they keep the customers safe?

“Anybody who they think is catchy or could be a problem, they bark and it alerts us,” Ibrahim said. “It alerts my guard. It’s brilliant.”

Ibrahim likes to keep the dogs in their natural habitat, the streets, after he closes up. When Chai Master opens during the evenings, the strays return.

The customers are fond of the dogs too. Zahra Tafseer, an IT professional who refers to herself as a ‘cat person,’ has bonded over time with the dogs at Chai Master.

“Thanks to this place, and the dogs over here, I have sort of started to bond with dogs as well,” she told Arab News. “I’ve never found them to be scary.”

Mossa Khan, a 30-year-old who works at an advertisement agency, says he finds it comforting to be around animals at the cafe.

“So that’s the miraculous thing about animals, they can sense danger,” he said. “So, if there’s someone who’s out of place, somehow, they have a sixth sense, they know that something is off and they should be alerted.”

Ibrahim agreed, recounting an incident when the stray dogs raised alarm when a man tried to steal a side mirror from a car.

“The dogs are definitely to make this place safer for customers to feel safer,” he said.

Tafseer said the dogs were a “success story” of what one can achieve with a little bit of love.

“These dogs are the prime example of a success story, basically, of what can be achieved when you give the love and care to this species, because they’re a living thing,” she said.

Ibrahim says customers who throw stones at the dogs or act violently toward them are not welcome at his cafe.

“If you cannot respect another living creature, we do not want you as a customer,” he said.


33 killed, 46 injured in recent torrential rains in northwest Pakistan

Updated 18 April 2024
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33 killed, 46 injured in recent torrential rains in northwest Pakistan

  • Pakistan has received heavy rains in last three weeks that have triggered landslides, flash floods in several areas
  • Authorities have warned of another spell of heavy rains in the Khyber Pakhtunkhwa province from April 17 till April 21

ISLAMABAD: At least 33 people have been killed and another 46 injured in various rain-related incidents in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province in the last six days, the Provincial Disaster Management Authority (PDMA) said on Thursday.

The rains that began last Friday have completely destroyed 336 houses and partially damaged another 1,606 in different districts across the province, according to the PDMA.

The incidents occurred in Khyber, Upper and Lower Dir, Upper and Lower Chitral, Swat, Bajaur, Shangla, Karak, Tank, Mardan, Peshawar, Charsadda, Hangu, Battagram, Dera Ismail Khan and other districts.

“The deceased include 17 children, eight men, eight women, while the injured included 32 men, six women and eight children,” the PDMA said in its daily situation report on Thursday.

On Wednesday, the authority warned of another spell of heavy rains in the province from April 17 till April 21, which could trigger landslides and flash floods.

“The district administrations should take proactive and immediate measures before the second spell of the rains begins … and ensure the availability of small and large machinery,” it added.

The PDMA said it had issued Rs50 million to the administration of 12 affected districts for financial assistance to families of those who lost their lives in the recent rains.

“Rs80.1 million have been released by the PDMA since March 29 to the administration of various districts to deal with the emergency situation,” the authority added.

Pakistan has received heavy rains in the last three weeks that have triggered landslides and flash floods in several parts of the South Asian country.

The eastern province of Punjab has reported 21 lighting- and roof collapse-related deaths, while Balochistan, in the country’s southwest, reported 10 deaths as authorities declared a state of emergency following flash floods.

In 2022, downpours swelled rivers and at one point flooded a third of Pakistan, killing 1,739 people. The floods also caused $30 billion in damages, from which Pakistan is still trying to rebuild. Balochistan saw rainfall at 590 percent above average that year, while Karachi saw 726 percent more rainfall than usual.


Pakistan’s Lahore hosts 24th edition of Asian Forum’s tech innovation event

Updated 18 April 2024
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Pakistan’s Lahore hosts 24th edition of Asian Forum’s tech innovation event

  • The three-day exhibition is set to fetch nearly $500 million investment from a dozen countries
  • These companies participating in the expo include Microsoft, Inbox, Lenovo, HP, NetSol and Dell

ISLAMABAD: Pakistan’s eastern city of Lahore is set to host the 24th edition of Asian Forum’s Information Technology Commerce Network (ITCN) today, on Thursday, Pakistani state media reported.

State Minister for Information Technology Shaza Fatima will be the chief guest, while Digital Cooperation Organization (DCO) Secretary-General Deemah Al-Yahya will be guest of honor on the opening day of summit at Lahore’s Expo Center.

The main sessions include Artificial Intelligence Summit, Global Security Symposium, Gaming and Scholars Roundtable, Investor Summit, Freelancer Summit, Made in Pakistan Roundtable Conference, the state-run Radio Pakistan broadcaster reported.

“In this edition, a delegation of international investors belonging to twelve counties will participate along with an investment of five hundred million dollars,” the report read.

“Over seven hundred stalls will be established and renowned international and national technology companies will participate in this event.”

These companies include Microsoft, Inbox, Red Hat, TP-Link, Lenovo, HP, NetSol, Abacus and Dell, according to the report.

The event is being jointly supported by the Pakistani Ministry of Information Technology and Telecommunication, Pakistan Telecommunication Authority, Special Investment Facilitation Council (SIFC), Pakistan Software Export Board and Pakistan Software Houses Association.


Pakistan wants to re-engage with Middle Eastern banks to boost investment — finance minister

Updated 18 April 2024
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Pakistan wants to re-engage with Middle Eastern banks to boost investment — finance minister

  • Statement came during Mohammad Aurangzeb’s meeting with his Emirati counterpart on sidelines of his US visit 
  • The Pakistani finance minister briefed about priority areas of taxation, energy and privatization of state entities

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday met with his Emirati counterpart and expressed his country’s desire to re-engage with Middle Eastern banks to boost investment in Pakistan, the Pakistani finance ministry said.

Aurangzeb’s meeting with UAE’s Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini came on the sidelines of his visit to the United States to meet International Monetary Fund (IMF) and World Bank officials.

The Pakistani finance minister acknowledged long-standing brotherly ties between Pakistan and the United Arab Emirates (UAE) and appreciated the Gulf country’s support to help Pakistan deal with its economic challenges.

“He highlighted Pakistan’s firm resolve to address economic challenges and create a conducive environment for sustainable growth and investment,” the Pakistani finance ministry said in a statement.

“He also expressed Pakistan’s keen interest to re-engage with Middle Eastern Banks to revive their interest in potential investment opportunities in the country.”

Pakistan's Finance Minister Muhammad Aurangzeb (left) poses for a picture with his Emirati counterpart, Mohamed bin Hadi Al Hussaini, in Washington, US on April 17, 2024. (@Financegovpk/X)

He said his government intended to continue with reforms initiated under a $3 billion IMF program in priority areas of taxation, energy and privatization of state-owned enterprises (SOEs), according to the statement.

Aurangzeb arrived in Washington on Sunday to participate in spring meetings organized by the IMF and World Bank. His tour is an important one for the South Asian country as the ongoing nine-month, $3 billion loan program with the IMF designed to tackle a balance-of-payments crisis, is set to expire this month.

With the final $1.1 billion tranche of that deal likely to be approved later this month, Pakistan has begun negotiations for a new multi-year IMF loan program worth “billions” of dollars, according to the finance ministry.

Pakistan seeks at least a three-year IMF program and plans to continue with necessary policy reforms to rein in deficits, build up reserves, and manage soaring debt servicing.

On Wednesday, Aurangzeb attended the Middle East and North Africa (MENA) Ministers and Governors meeting with the IMF managing director and highlighted geo-economic fragmentation and its impact on Pakistan.

“He thanked IMF, MDBs (multilateral development banks) and its time-tested sincere bilateral partners for their support in helping the country respond to unprecedented challenges,” Aurangzeb’s ministry said in a separate statement.

“He further underscored aggressive reforms including broadening the tax net, privatizing loss making SOEs, expanding social safety net and facilitating the private sector.”

The minister underlined the importance of rechanneling special drawing rights (SDRs), reviewing surcharges policy, and prioritizing the Resilience and Sustainability Trust (RST) in view of climate vulnerabilities.

“The minister called for a more proactive and responsive Global Financial Safety Net to tackle the elevated risks,” the statement read.

“He welcomed the renewed emphasis of the Fund on Capacity Building through Regional Capacity Development Centers (RCDCs).”

During the engagements, Aurangzeb also met with Multilateral Investment Guarantee Agency (MIGA) Executive Vice President Hiroshi Matano and appreciated the Agency’s continued support to Pakistan in attracting foreign investments.

“The minister discussed the ongoing economic reforms, investment climate and measures to enhance investor confidence in Pakistan,” his ministry said.