Pakistan’s currency to weaken further, exacerbate inflationary pressure – Fitch Ratings

A foreign currency dealer counts US dollars at a shop in Karachi, Pakistan, on May 19, 2022. (AFP)
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Updated 31 January 2023

Pakistan’s currency to weaken further, exacerbate inflationary pressure – Fitch Ratings

  • Pakistan’s rupee plummeted to 24-year low last week after markets removed cap on exchange rate
  • Fitch says rupee devaluation ‘positive’ for long-term outlook, helping unlock future IMF disbursements

ISLAMABAD: An international credit rating agency on Tuesday forecast that Pakistan’s national currency would depreciate further, exacerbating the imported inflationary pressure across the country in the days to come.

In its bid to revive a stalled $7 billion International Monetary Fund (IMF) loan program, Pakistan agreed to remove artificial controls from its exchange market. The rupee plummeted to a record 24-year low last week after foreign exchange companies removed the cap on the exchange rate. 

The removal of the currency cap has been one of the principal demands of the IMF. Pakistan, with a staggering $3.6 billion in reserves barely enough to cover three weeks of imports, is actively seeking an IMF bailout program to avoid a balance-of-payments crisis. 

In its latest forecast for Pakistan, Fitch Ratings said its earlier forecast of the dollar rising to Rs248 is “now looking out of date.”

“We believe that the rupee’s weakness still has further to run, particularly with Pakistan’s balance of payments position likely to remain weak for several more months,” Fitch said. 

The rating agency said currently there is “a considerable amount of uncertainty” at this juncture, adding that it is difficult to gauge the extent to which the latest rupee devaluation has caused investor confidence to dip. 

It said a weakening rupee would also have broader economic implications in the near future. “In the near term, it could exacerbate imported inflationary pressure, and may eventually result in steeper policy rate hikes from the SOP,” Fitch added. 

While it said that Pakistan’s economy was expected to contract by 0.3 percent in FY2022/23, the rupee’s devaluation would help Pakistan secure further disbursements from the IMF. Fitch said it would be “a positive for the longer-term outlook,” helping Islamabad ease its balance of payments strains. 

An IMF mission is currently in Islamabad till February 9, 2023, to discuss the loan revival. The mission will examine Pakistan’s policies to restore domestic and external sustainability, including strengthening the country’s fiscal position with durable measures while supporting those affected by devastating floods last year.


Pakistan seeks parliament ruling to empower authorities to tackle ex-PM Khan's party

Updated 14 sec ago

Pakistan seeks parliament ruling to empower authorities to tackle ex-PM Khan's party

  • Ruling was asked for in joint session of parliament convened over instability caused by crisis over Khan
  • Interior minister requested house give "guidance" to government about violence stoked by Khan's supporters

LAHORE: Pakistan's Interior Minister Rana Sanaullah on Wednesday sought a parliament ruling to empower authorities to tackle former Prime Minister Imran Khan's party's alleged involvement in violence.

The ruling was asked for in a joint session of parliament convened over the instability caused by the crisis over Khan.

Sanaullah told the house nearly 68 security personnel were injured in clashes and 16 arrested Khan aides will be tried on terrorism charges.

The clashes erupted after Khan's supporters prevented police and paramilitary forces from arresting him in a case in which he is accused of unlawfully selling state gifts during his tenure as premier from 2018-2022. He denies any wrongdoing.

The minister requested the house give "guidance" to the government about the violence stoked by Khan's supporters, who he said included "miscreants, armed groups, and terrorists".

"It is required that the security forces should be given authority and other measures to deal with this issue," he said, adding that Khan's agenda is "chaos and anarchy."

The government has alleged that Khan's supporters had militants among them and ministers have called for proscribing Khan's Pakistan Tehreek-e-Insaf (PTI) party.

Khan has rejected the allegation, saying that the government wanted his party out of politics.

The former premier has demanded snap elections since he was ousted in a parliamentary vote of confidence in April last year. Khan's successor Shehbaz Sharif has said that a general election will be held as scheduled later this year.


Pakistani TV anchor breaks internet for continuing bulletin amid powerful earthquake jolts

Updated 48 min 53 sec ago

Pakistani TV anchor breaks internet for continuing bulletin amid powerful earthquake jolts

  • Local TV anchor Shah Faisal says powerful earthquake "frightened" him
  • 6.5-magnitude earthquake in parts of Pakistan killed at least 10 on Tuesday

PESHAWAR: A Pakistani TV anchor broke the internet this week after a video of him continuing to read a news bulletin amid a powerful earthquake late on Tuesday evening was shared widely on social media.

At least 10 people were killed and over 60 injured in Pakistan's northwestern Khyber Pakhtunkhwa (KP) province on Tuesday night when a 6.5-magnitude earthquake jolted parts of the South Asian country.

In a video that has gone viral on social media since, young TV anchor Shah Faisal, 30, can be seen reading the news when tremors start to shake the studio. Instead of running to safety, the journalist, who works for Pashto-language Mashriq TV in KP's provincial capital Peshawar, breaks the news of the earthquake.

"The cameraman had already fled while I was here in the studio," Faisal, who hails from Mardan city, told Arab News in an interview at the studio. "I was speaking, but in my mind, I kept thinking, 'What will happen now?' Our studio is on the fifth floor and it was shaking a lot, there were a lot of jolts."

Before the quake struck, Faisal was reading a news story about Prime Minister Shehbaz during the 09:00 p.m. bulletin. Next, Faisal can be seen swaying from side to side. Numerous LED TVs in the background and his own laptop are also seen shaking as another man scurried out of the studio behind the anchorman who continued with the bulletin.

One of the two producers working with him fled for safety, Faisal said. The second one took over and told him to break the news of the earthquake.

Faisal said he initially thought the earthquake would be of a similar nature to a “milder” one that had taken place in KP around two months ago.

"This one was very severe and its duration was longer too," Faisal said, adding that the quake "frightened" him.

After the jolts, Faisal immediately called home to inquire after his family and learnt that his father was watching him on TV as the earthquake occurred.

Faisal has since been reading comments on social media about his viral video. Almost 90% of them are encouraging while the remaining are critical of his choice to continue with the bulletin rather than run for cover.

"But it is our belief that life and death is in the hands of Allah," Faisal said. 

"And on the day that we are decreed to leave here [this world], we will leave on that day. I had faith and praise be to Allah, he gave me encouragement."


UAE-based Carrefour partners with Pakistani NGO to help the needy in Ramadan

Updated 22 March 2023

UAE-based Carrefour partners with Pakistani NGO to help the needy in Ramadan

  • Carrefour, Pakistan’s Alkhidmat Foundation to provide meals to less privileged Pakistanis in Ramadan
  • The two will also provide humanitarian aid to people affected by the devastating quake in Türkiye, Syria

ISLAMABAD: Retail company Carrefour Pakistan, owned and operated by UAE-based holding firm Majid Al Futtaim, announced on Wednesday its decision to join hands with Pakistani non-profit organization (NGO) Alkhidmat Foundation to provide relief to earthquake victims in Syria and Turkiye, and provide free meals to the less privileged in Pakistan during Ramadan. 

Ramadan is the ninth month of the Islamic calendar, observed by Muslims worldwide as a month of fasting, prayer, reflection, and charity. The first fast in Pakistan is likely to be observed on Thursday, March 23.

Through the collaboration, Carrefour said the two would provide meals to the less privileged Pakistanis in Ramadan and also send relief items to victims of the recent devastating earthquakes in Türkiye and Syria.

“We believe in the power of collective action and community support. We are greatly pleased to join hands with Alkhidmat Foundation to play our part in eliminating food hunger in the country, whilst providing relief to those affected by the earthquakes in Turkiye and Syria,” Umer Lodhi, Carrefour Pakistan’s country manager, said.

“We hope our combined efforts will make a positive impact on those who need it the most.”

The statement added that customers would also have the opportunity to give back to the community this Ramadan by purchasing special, pre-packed boxes filled with essential food items such as rice, flour, oil, dates & pulses.

The pre-packed boxes, it said, will then be distributed among needy families to help provide them some relief during Ramadan as the South Asian country grapples with decades-high inflation.

“Earthquake relief boxes comprising shelter supplies, clothing, and non-perishable food items are available for customers to buy and donate at all Carrefour stores,” the statement said.


In rare case for Pakistan, Muslim charged with blasphemy for offending minority Hindus

Updated 22 March 2023

In rare case for Pakistan, Muslim charged with blasphemy for offending minority Hindus

  • Aslam Baloch, a local journalist from Sindh, had uploaded a morphed image of a Hindu deity on social media
  • Most blasphemy cases in Pakistan are filed against people for defiling the Quran, insulting Prophet Muhammad

KARACHI: In a rare case in Muslim-majority Pakistan, a journalist in the southern Sindh province has been arrested under the country’s blasphemy law for offending Hindus by uploading a doctored image of a deity on social media, a senior officer said on Wednesday.

Pakistan's blasphemy laws make it a crime to insult any religion and most blasphemy cases in the country are filed against people for defiling the holy Quran or insulting the Prophet Muhammad (peace be upon him), offences that carry a life sentence and mandatory death sentence, respectively.

In a rare case, however, local journalist Aslam Baloch, a Muslim, was arrested on Tuesday after Hindu community members complained that he had disrespected their religion by editing a photo of the Hindu deity Hanuman and replacing its face with that of former prime minister Imran Khan.

“Aslam Baloch had shared an edited photo of the Hindu god Hanuman with a very objectionable caption,” senior superintendent of police in Mirpur Khas, Captain (retired) Asad Ali Chaudhry, told Arab News.

“We took legal action upon a complaint and arrested the journalist.”

The complaint was filed by Ramesh Kumar, the head of a local Hindu council, after which Baloch was booked under two sections of the Pakistan Penal Code, section 153-A, for promoting enmity between different groups, and section 295-A, which is related to the blasphemy law and applies to anyone accused of having deliberate and malicious intention of outraging religious feeling through written or spoken words, or visual representations.

In his complaint, Kumar said he was sitting with friends at a doctor’s clinic in Mirpur Khas and scrolling through his social media timelines when he came across Baloch’s post.

“The morphed photo was shared with a highly objectionable caption, which was a clear attempt to hurt the sentiment of the followers of the Hindu faith,” Kumar told Arab News. “The post also intended to damage religious harmony, create religious hatred, and incite violence.”

If found guilty, Baloch can be punished with ten years imprisonment, a fine, or both.

Following Baloch’s arrest, Kumar said that he was “satisfied" with the police action.

“They heard us, registered our complaint, and arrested the culprit. It has given us a sense of security and made us feel that we are equal citizens of Pakistan,” Kumar added.

Baloch, who is in police custody, could not be reached for a comment.

In other rare cases in Pakistan where action was taken against Muslims for offending the religious sentiments of minorities, in April 2021, police filed a case under 295-A against three unknown persons for disrespecting a Priest-King replica at the Mohenjo-Daro ancient site in Sindh. The Priest-King is a small male figure sculpted in steatite found during the excavation of the ruined Bronze Age city of Mohenjo-Daro in Sindh, Pakistan.

In September 2019, Muslims were booked for attacking and damaging a Hindu temple in the Ghotki area of Sindh. Another case was registered under the blasphemy laws against Muslim suspects for vandalizing a Hindu temple in Karachi on September 21, 2012.

Around four million Hindus live in Pakistan, or about 1.9% of the country’s population, out of which 1.4 million reside in Sindh.


Pakistani tribesmen announce mourning in native town of army brigadier killed in militant ambush

Updated 22 March 2023

Pakistani tribesmen announce mourning in native town of army brigadier killed in militant ambush

  • Brig. Mustafa Kamal Barki lost his life in a shootout with militants near the frontier region of Angoor Adda on Tuesday
  • His tribal community describes his killing as an ‘irreparable’ loss amid rising number of militant attacks in recent months

PESHAWAR: Local tribesmen in the native town of a senior Inter-Services Intelligence (ISI) spy agency official announced three days of mourning on Wednesday after a group of militants killed him in an attack near the country’s border with Afghanistan the day before.

According to a statement issued by the army, Brig. Mustafa Kamal Barki was driving to Wana, the headquarters of South Waziristan tribal district, when his caravan came under attack near the frontier region of Angoor Adda. The ensuing shootout killed Barki and left seven troops injured.

So far, no group has claimed responsibility for the attack, which was described by his community members as a major loss.

“I really don’t have words to express how big a loss this is for the nation,” Malik Irfan Barki, a tribal elder and the slain official’s close neighbor, told Arab News. “What we have suffered as his community members is simply irreparable.”

“The demise of Mustafa Barki has shattered us and sent shockwaves through the Kaniguram valley,” he continued. “I called a grand jirga [tribal gathering] of Barki elders which announced three-day mourning over his tragic demise.”

Kaniguram, a picturesque town at the heart of South Waziristan district, is home to a small community of about 14,000 people.

The attack on Barki was launched amid a surge in militant violence in Pakistan since a proscribed militant faction, Tehreek-e-Taliban Pakistan (TTP), called off a fragile cease-fire with the government in November.

TTP militants have since targeted police and security forces in the country’s Khyber Pakhtunkhwa and Balochistan provinces located next to Afghanistan.

Nisar Barki, a cousin of the slain official, described his relative as a “caring person.”

He said Barki received his early education from a local school in his hometown before getting admission to an education institute in Tank.

“We studied together until the 12th grade and were even together at Cadet College Razmak in North Waziristan,” he added. “After completing his education there, Mustafa was selected by a medical college and Pakistan’s military academy, but he preferred to join the army.”

“He was a bold, courageous, and very caring person as a relative,” he continued.

He also said that his cousin joined the Frontier Force Regiment in 1995 and served in various capacities. He was also posted abroad to work with different Pakistani diplomatic missions.

The slain official was a graduate of the National Defense University and Command and Staff College Quetta. Apart from that, he also participated in the Kargil war and suffered injuries.

“My late cousin used to tell me to forgive and forget,” Barki said. “He was a genius and a deep-thinking man.”