KARACHI: Pakistan’s central bank kept its key interest rate unchanged at 22 percent for the seventh straight policy meeting, it said on Monday, hours before the International Monetary Fund executive board will meet to discuss the approval of $1.1 billion in funding for Pakistan.

Battling inflation and limited foreign exchange reserves, the cash-strapped South Asian nation is trying to navigate a path to economic recovery under a $3 billion standby arrangement with the IMF secured last summer to avert a sovereign default, and is hoping to sign a longer term program.

Pakistan’s key rate was last raised in June to fight persistent inflationary pressures and to meet one of the conditions set by the IMF for securing the bailout. 

Reforms under the program have complicated the task of keeping price pressures in check. Inflation, however, has slowed its pace primarily due to high base effect.

Pakistan’s consumer price index (CPI) for March was up 20.7 percent from the same month last year, the lowest reading in nearly two years and below the finance ministry’s projections for the month.

ISLAMABAD: Over 65,000 Pakistani pilgrims are set to avail Saudi Arabia’s Makkah Route Initiative during this year’s Hajj pilgrimage, Pakistan’s religious affairs secretary said on Monday, compared to the 26,000 pilgrims who availed the facility from Pakistan’s capital in 2023. 

Pakistani officials confirmed last week that Saudi authorities have approved the Makkah Route Initiative’s expansion to the airport in Karachi, the country’s largest city by population. Launched in 2019, the initiative was initially only extended to the airport in Islamabad. The Makkah Route Initiative allows for the completion of immigration procedures at the pilgrims’ country of departure, making it possible to bypass long immigration and customs checks upon reaching Saudi Arabia. The facility significantly reduces the waiting time and makes the entry process smoother and faster.

Islamabad had been requesting the Saudi authorities to extend the facility to other airports in the country as well. 

“A total of 65,000 Hajj pilgrims will utilize the Route to Makkah facility at Karachi and Islamabad airports this year,” Dr. Syed Atta ur Rehman, Pakistan’s religious affairs secretary told reporters in a media briefing. Breaking down the numbers, Rehman said 41,000 of the 65,000 pilgrims will avail the facility under the government’s Hajj scheme while the remaining 24,000 will use private tour operators. 

“Specifically 29,500 pilgrims will use this facility from Islamabad while 35,500 will do so from Karachi airport,” Rehman explained, thanking the Saudi government for expanding the initiative to Karachi.

Saudi Arabia last year restored Pakistan’s pre-pandemic Hajj quota of 179,210 pilgrims and abolished the upper age limit of 65 years. More than 81,000 Pakistani pilgrims performed Hajj under the government scheme in 2023 while the rest used private tour operators.

Pakistan will commence the Hajj 2024 operations from May 9 in eight airports across the country till June 9. This year’s pilgrimage is expected to take place from June 14 to June 19.

Providing details of the Hajj operations this year, the official said a total of 69,000 pilgrims will perform the pilgrimage under the government scheme. Of these, 64,000 pilgrims will perform under the general scheme while over 5,000 will perform the pilgrimage under the sponsorship scheme.

The sponsorship Hajj scheme was introduced by the government last year, allowing overseas Pakistanis to apply for the pilgrimage or sponsor someone in Pakistan for the journey by paying in US dollars. In return, applicants would not have to participate in the balloting process for the pilgrimage. 

Rehman said the remaining number of pilgrims will perform Hajj on the private scheme. However, he added their exact number is yet to be determined as bookings for the pilgrimage are still underway.

This year, he said, preparations for the Hajj commenced earlier as per the Saudi government’s requirements. This helped the government secure favorable accommodations for Pakistani pilgrims in the holy cities of Makkah, Madinah, and Mina, Rehman said. 

Despite the surge in inflation globally, Rehman said the Pakistani government has reduced Hajj expenses by Rs100,000 ($358.76) compared to last year. 

“Last year, the government charged Rs1,155,000 ($4,143) from the south zone and Rs1,175,000 ($4,215) from the north zone, whereas this year it is Rs1,055,000 ($3,784) and Rs1,075,000 ($3,856), respectively,” he said. He added the government has reduced the cost of plane tickets from last year, bringing it down to between Rs15,000-35,000 [$53.81-$125.57].

Under the government Hajj scheme this year, the secretary said pilgrims can opt for a shorter Hajj pilgrimage but will need to pay an extra fee of up to Rs60,000 [$215.26] for it. 

“In addition to the usual 38 to 42-day Hajj duration, we have introduced the option of Hajj for 20 to 25 days,” Rehman explained, adding that pilgrims can also choose exclusive options such as staying in a single room with family members or fewer people by paying an additional amount.