Pakistan’s economic outlook shows ‘optimistic picture’ despite flood challenges — finance ministry

People buy vegetables at a local market in Lahore on August 29, 2022. (AFP/File)
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Updated 30 October 2022
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Pakistan’s economic outlook shows ‘optimistic picture’ despite flood challenges — finance ministry

  • Finance ministry says Pakistan’s agriculture sector was hit hard by floods, will impact other sectors too
  • World Bank assessment shows Pakistan needs at least $16.3 billion for rehabilitation and reconstruction

KARACHI: Pakistan’s overall economic outlook showed an “optimistic picture” of the country’s performance in the coming months, the finance ministry on Sunday, despite challenges posed by unprecedented floods.

The finance ministry said in its monthly report that key economic indicators like inflation, exchange rate and current account balance were showing encouraging trends.

“Overall economic outlook shows an optimistic picture of the economic performance in the coming months. The CPI inflation is declining, rupee has gained stability, current account balance is on improving trend,” it said in its report for the month of October.

“These developments indicate that economic activity will remain positive and persistent in coming months.”

The report highlighted the impacts of the floods that had caused more than $30 billion losses and affected 33 million people since the onset of monsoon season in mid-June.

Pakistan’s agriculture took the major hit, according to the World Bank and the finance ministry.

“In Pakistan, the economic environment is challenging due to damages caused by floods,” the report read.

“The agriculture sector has been particularly hard hit by the destruction brought on by the floods, and due to forward linkages, this impact will also be transferred to other sectors of the economy, thus changing the overall economic outlook.”

The World Bank’s recent assessment shows the flood damages to exceed $14.9 billion and the total economic losses to reach around $15.2 billion. It estimated the needs for rehabilitation and reconstruction in a resilient way at a minimum of $16.3 billion.

Housing, Agriculture and Livestock, and Transport and Communications sectors suffered the most significant damages at $5.6 billion, $3.7 billion and $3.3 billion, respectively, according to the World Bank assessment.

Sindh is the worst affected province with close to 70 percent of total damages and losses, followed by Balochistan, Khyber Pakhtunkhwa and Punjab.

The fiscal sector requires rehabilitation and massive expenditures that will pose a significant challenge for fiscal consolidation, according to the finance ministry.

“On the other hand, growth prospects have weakened, along with contained economic activities and low demand will impact on resource mobilization,” it said.

“Thus, FY2023 is moving with challenges, seeking balance policy mix for stabilization.”

Pakistan’s finance minister Ishaq Dar on Saturday painted a rosy picture of the economy, saying it was “on a firmer footing.”

The finance ministry said that inflationary risks had partially been alleviated due to timely decisions, including the import of perishable items by waiving off customs duties.

Administrative measures were also being taken to control price speculation to ease out inflation, it added.

But the weekly inflation, measured by the Sensitive Price Indicator (SPI), rose by 4.13 percent due to an 89.34 percent increase in electricity charges. The year-on-year inflation surged to 3.68 percent, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

Citing slowed economic outlook of Pakistan’s trade partners, the finance ministry also warned of a “downside risk for exports in coming months.”


Pakistan conveys ‘deep appreciation’ to Norway for decision to recognize Palestine as a state

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Pakistan conveys ‘deep appreciation’ to Norway for decision to recognize Palestine as a state

  • Ireland, Spain and Norway this week said they would formally recognize Palestine as a state on May 28
  • The additions would bring the total number of countries recognizing the Palestinian state to nearly 150

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday held a telephonic conversation with his Norwegian counterpart Jonas Gahr Store and conveyed his “deep appreciation” for Norway’s landmark decision to recognize the State of Palestine, Sharif’s office said.
The prime ministers of Ireland, Spain and Norway announced on Wednesday they would formally recognize Palestine as a state on May 28, following recent recognitions by Barbados, Jamaica, Trinidad and Tobago and the Bahamas. The additions have brought the total number of countries recognizing the Palestinian state to nearly 150.
During his conversation with PM Store, Sharif emphasized the importance of the two-state solution as the key to lasting peace in the Middle East and expressed his hope that Norway’s decision would encourage other countries to follow suit, paving the way for a full membership of the United Nations (UN) for the State of Palestine.
“This principled decision by Norway would send a strong message of hope and solidarity to the brave Palestinian people who have been enduring Israel’s brutality and suffering over seventy-five years of occupation and oppression,” Sharif was quoted as saying by his office.
The Pakistan premier welcomed the International Court of Justice’s decision on Friday to order Israel to stop its assault on Gaza and Rafah, and called for its “full and effective implementation.”
The case against Israel was initiated by South Africa in December 2023, where it labeled Israel’s actions in the Gaza Strip as “genocidal,” asserting that they intended to destroy the Palestinian people in ways specified under the 1948 Genocide Convention.
Pakistan does not recognize the state of Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
In recent months, the South Asian country has repeatedly raised the issue of Israel’s war on Gaza, launched last October, at the United Nations through its permanent representative.
During Sunday’s conversation, both Pakistani and Norwegian prime ministers reiterated their commitment to strengthening bilateral ties in various sectors, including trade, investment, education, and renewable energy.
“They also recognized the important role played by Norwegians of Pakistani origin in creating a vital connection between Pakistan and Norway and contributing to the economic development of both nations,” Sharif’s office said.
“The two leaders agreed to remain in touch and to meet soon, possibly on the margins of the UNGA [United Nations General Assembly] session later this year.”
The Pakistan premier also extended an invitation to PM Store to undertake an official visit to Pakistan at his earliest convenience.


Pakistan asks Afghanistan to hand over militants involved in Dasu attack on Chinese nationals

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Pakistan asks Afghanistan to hand over militants involved in Dasu attack on Chinese nationals

  • Five Chinese workers were killed in the attack on Mar. 26 while they were on way to Dasu hydropower project in Pakistan’s northwest
  • Interior Minister Mohsin Naqvi says militants operating in Afghanistan have been specifically compromising security of Chinese nationals

ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Sunday demanded the Afghan interim government to hand over Tehreek-e-Taliban Pakistan (TTP) militants involved in a suicide attack that killed five Chinese nationals and their driver in Pakistan’s northwest in March.
China is a major ally and investor in Pakistan but both separatist and other militants have attacked Chinese projects and personnel in recent years, including five Chinese workers who perished in the suicide attack on Mar. 26 while they were on their way to the Dasu hydropower project in Pakistan’s northwestern Khyber Pakhtunkhwa province.
The Dasu hydropower project falls under the ambit of the China-Pakistan Economic Corridor (CPEC), a flagship project of China’s Belt and Road Initiative through which it has pledged more than $65 billion for road, rail and other infrastructure developments in the South Asian nation of 241 million people.
Speaking at a press conference on Sunday, Naqvi said Pakistan’s relations with China were very important and both countries supported each other economically, politically and diplomatically, however, the cross-border threat from Afghanistan was becoming increasingly dangerous for regional security.
“We want good relations with Afghanistan, but this is only possible if they too support us and won’t let their soil be used for terrorism against us,” he said. “It is important that these terrorists present there, they [Afghan government] must arrest them, hold a trial against them or hand them over to us.”
The Dasu assault in March was the third major one in a little over a week on China’s interests.
It followed a Mar. 20 attack on a strategic port used by China in the southwestern province of Balochistan, where Beijing has poured billions of dollars into infrastructure projects, and a Mar. 25 assault on a naval air base, also in the southwest. Both attacks were claimed by the Baloch Liberation Army (BLA), the most prominent of several separatist groups in Balochistan.
Naqvi said militants operating in Afghanistan were specifically compromising the security of Chinese nationals in Pakistan.
“Pakistan has raised this issue with the interim Afghan government and pressed them to rein in these terrorists operating there, but so far we are not receiving any positive results,” he said, adding that Islamabad was making “all-possible arrangements” to ensure the security of Chinese nationals working in Pakistan.

Pakistan’s counter-terrorism chief Rai Tahir, who was also present at Sunday’s presser by Naqvi, said authorities had arrested 11 militants who were involved in the Dasu suicide bombing that killed five Chinese engineers. The investigation and evidence showed the militants had been taking instructions from TTP leaders in Afghanistan, he said.
Pakistan has witnessed a surge in militant attacks in its western regions that border Afghanistan, particularly after the TTP called off its months-long, fragile truce with the Pakistani government in November 2022.
Last year, Islamabad ordered all illegal immigrants to leave Pakistan by Nov 1, triggering an exodus of foreigners, mostly Afghans, from the country.
Pakistan brushed off calls from the United Nations (UN), rights groups and Western embassies to reconsider the expulsion plan and said many of these Afghan nationals had been involved in militant attacks and in crimes that undermined the security of the country. Kabul denies the accusations and says Pakistani security is a domestic problem.


Saudi-based Pakistani group recruits over 2,500 volunteers to facilitate Hajj pilgrims this year

Updated 26 May 2024
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Saudi-based Pakistani group recruits over 2,500 volunteers to facilitate Hajj pilgrims this year

  • The Pakistan Hajj Volunteers Group comprises thousands of expatriates living in the Kingdom who facilitate pilgrims each year
  • The PHVG offers guidance, wheelchair services, and other facilities to pilgrims during Hajj days irrespective of their nationalities

ISLAMABAD: The Pakistan Hajj Volunteers Group (PHVG), a Saudi Arabia-based group of Pakistani expatriates, has recruited more than 2,500 volunteers to assist pilgrims during this year’s annual Hajj pilgrimage, a senior PHVG official said on Sunday.
Established in 2011 with only 85 volunteers, the PHVG has expanded over the course of 12 years and currently includes thousands of members, who volunteer during Hajj pilgrimage every year. The group works in close coordination with the Pakistani consulate in Jeddah and the Pakistan Hajj Mission.
The PHVG assists and provides guidance to pilgrims during the annual Hajj pilgrimage in Mina Valley, and the Saudi cities of Azizia and Makkah from the 10th till 12th of the Islamic holy month of Dhu Al-Hijjah, when Hajj activities reach their peak.
“The PHVG registered and verified 2,838 volunteers for Hajj 2024 operation and also has around 100 key volunteers in our three regions (Hejaz, central and eastern parts of the Kingdom) who are engaged year-round for all the preparations for the guests of Allah,” Ashraf Ali Khan, the PHVG central coordinator, told Arab News.

Pakistan Hajj Volunteers Group official briefs Pakistani volunteers during a training session to facilitate Hajj pilgrims in Jeddah on May 15, 2024. (Photo courtesy: Pakistan Hajj Volunteers Group)

The PHVG started its registration campaign on February 9 that ended on May 10, according to the official. The organization used print, electronic, and social media to register Pakistani volunteers from all over the Kingdom.
“Any Pakistani legally present in the Kingdom can become a volunteer and they also need to be registered on the Saudi social services website for further permissions,” Khan said, adding all volunteers were required to complete two mandatory training sessions and an online exam before the final selection.
The official said his organization trained volunteers using audiovisual training sessions and instructed them on the Mina map reading and the usage of its mobile application, PHVG Hajj Navigator.

Pakistani volunteers attend a training session to facilitate Hajj pilgrims in Jeddah on May 15, 2024, ahead of annual Hajj pilgrimage. (Photo courtesy: Pakistan Hajj Volunteers Group)

“The volunteers are neither allowed to perform Hajj nor compensated for their services as they are devoted to helping and guiding pilgrims to seek the reward and pleasure from Allah,” he added.
The volunteers mainly help Hajj pilgrims in five different areas, including providing training through videos and presentations, according to the official.
Along with this, volunteers also provide guidance in Mina, especially through translation, to pilgrims who come from around the world, and guide them to their tents, hospitals and assist them with wheelchairs.
“Additionally, we offer Tawaf-e-Ziyara to pilgrims who fall ill during the pilgrimage,” Khan said. “Each sick pilgrim is accompanied by two volunteers who escort them from the hospital and return them after completing the Tawaf.”

Pakistan Hajj Volunteers Group official briefs Pakistani volunteers during a training session to facilitate Hajj pilgrims in Jeddah on May 15, 2024. (Photo courtesy: Pakistan Hajj Volunteers Group)

 


Greek authorities release Pakistani woman athlete after two-day detention

Updated 26 May 2024
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Greek authorities release Pakistani woman athlete after two-day detention

  • Mona Khan, who also works with Pakistan state TV, was arrested on Friday while going to Greece’s Mount Olympus with a team of climbers
  • Pakistani athlete says she was arrested ‘due to her Pakistani identity, questioned about a written profession of Islamic faith in her bag’

KARACHI: Pakistani woman athlete and journalist Mona Khan, who was arrested in Greece this week, has been released from prison, she said on Sunday, a day after the Pakistani Foreign Office said its mission was actively engaged with Greek authorities on the case.
Khan said she was stopped by Greek officials at a checkpoint on Friday afternoon, when she was going to Mount Olympus along with a team of climbers, and upon checking her passport, Greek authorities held her for investigation, from where they took her to jail.
The athlete, who also works with Pakistan’s state TV as a host and participated in the Athens marathon last year, said she wanted to wave the Pakistan flag and Kalima Tayyaba, a profession of the Islamic faith written on a cloth piece that means “there is no god but Allah, and Muhammad is the Messenger of Allah,” on the highest mountain peak in Greece, some 433 kilometers away from Athens.
On Saturday, Mumtaz Zahra Baloch, a spokesperson for Pakistan’s Foreign Office, told Arab News the Pakistani mission in Athens was actively engaged with Greek officials to secure the release of the Pakistani athlete.
Speaking to Arab News after her release on Sunday, the Pakistani athlete said her release was “conditional” even though she had violated no rules of the host country, while she would also not be able to return to Greece for five years.
“They arrested me just when they saw my Pakistani passport and later questioned me when they found Kalima Tayyaba in my bag,” Khan said. “I am completely clueless as to why they arrested me, deprived me of a chance to accomplish my goal, and then asked me to leave.”
She said she was asked to sign documents that she would not enter another European country despite having visas and would return to Pakistan within 20 days.
“It’s my right to know what laws I have violated,” Khan said. “I was there for a healthy activity, but what happened to me caused me mental stress.”
Greek authorities have not issued any statement on Khan’s detention, while the Pakistani Foreign Office spokesperson did not respond, when asked about reasons for her detention and whether Pakistan planned to lodge a protest with Greek authorities in case Khan had not violated any laws of the host country.
“Jailed for doing nothing and just because of being Pakistani,” Khan said, after reuniting with her son, who was waiting for her to return after completing the mission to wave the Pakistani flag and the Islamic scripture on Mount Olympus.
“He asked for the video where I was supposed to wave the flag. I didn’t end his excitement and didn’t tell him about my ordeal.”


Emirs of Qatar, Kuwait accept PM Sharif’s invitation to visit Pakistan— PMO 

Updated 26 May 2024
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Emirs of Qatar, Kuwait accept PM Sharif’s invitation to visit Pakistan— PMO 

  • PM Shehbaz Sharif holds separate meetings with ambassadors of Qatar, Kuwait to Pakistan 
  • Visits to prove effective in increasing investment, cooperation with both countries, says PM Office

ISLAMABAD: Prime Minister Shehbaz Sharif’s office said on Sunday that the emirs of Qatar and Kuwait have accepted his invitation to visit Pakistan, as Islamabad looks to increase foreign trade and investment from allies to escape a macroeconomic crisis. 

Sharif separately met the ambassadors of Qatar and Kuwait to Pakistan on Sunday during which matters relating to bilateral relations, trade and cooperation were discussed. 

During the meetings, the ambassadors of both countries presented letters from their emirs addressed to Sharif which conveyed they had accepted his invitation to visit Pakistan. 

“Visits by the emirs of Kuwait and Qatar to Pakistan will prove effective in increasing investment and cooperation further with Qatar and Kuwait,” the Prime Minister’s Office (PMO) said.

In his meeting with Kuwait’s Ambassador to Pakistan Abdulrahman Jasser Al-Mutairi, Sharif recalled his recent meeting with Kuwait’s emir at the sidelines of the World Economic Forum in Riyadh in April. 

“The prime minister expressed satisfaction that the next meeting of the Pakistan-Kuwait Joint Ministerial Commission will be held from May 28-30 in Kuwait,” the PMO said. 

Sharif also met Qatar’s envoy Mubarak Ali Essa Al-Khater in which he said Islamabad values its “historic brotherly relations” with Doha and reiterated Pakistan’s determination to increase mutually beneficial cooperation between the two countries, the PMO said. 

The Pakistani premier said both countries should start preparing for the Qatari emir’s visit by exchanging delegations to ensure the visit becomes a productive and successful one. 

This development takes place amid a flurry of foreign visits in recent weeks to Pakistan. These included visits by the now deceased Iranian president, the Saudi foreign minister, a delegation of top Saudi companies as well as officials from Qatar, China, Japan, Turkiye and Central Asian countries, among others.

Reeling from high inflation, low forex reserves, and an unstable currency, Sharif has vowed to steer Pakistan out of its prolonged economic crisis by enhancing bilateral trade with allies and attracting more international investments. This week, Sharif met UAE’s President Sheikh Mohamed bin Zayed Al Nahyan who committed to investing $10 billion in multiple sectors of Pakistan. 

Islamabad is also currently in talks with the IMF to secure a new, longer-term bailout package of at least $6 billion to stave off a chronic balance of payment crisis.