KARACHI: Pakistan’s central bank on Friday described fiscal year 2023 as “extraordinarily challenging” for national economy, saying it brought a number of domestic and external shocks for the country in which the financial well-being of the people was compromised by structural weaknesses and spiraling inflation.
The State Bank of Pakistan (SBP) presented a mixed economic report card in the Governor’s Annual Report (GAR) for the last fiscal year which it is legally require to prepare and submit to the national parliament, specifying its economic objectives, monetary policy conduct and the overall health of the economy and financial system.
The report said despite the economic hardships, the bank had focused on financial inclusion by facilitating the digitization of services which had led significant growth within the sector.
However, price stability and inflation remained major concerns for the country, with the average headline national consumer price index rising up to 29.2 percent. The bank noted this situation could only be addressed through tough measures that it was willing to take in the coming months.
“The SBP responded to these challenges by maintaining a contractionary policy stance, raising the policy rate by a cumulative 825 basis points during FY23, in addition to the 675 basis points increase in FY22,” the central bank said in a statement that detailed the contours of the annual report.
“The GAR FY23 asserts that the central bank will continue to take decisions to prevent high inflation from becoming entrenched and keep inflation expectations anchored to achieve the medium term target of 5-7 percent by the end of FY25, with FY24 inflation moderating to 20-22 percent on account of the impact of contractionary monetary policy, improvements in domestic supplies, softer non-energy global commodity prices, and the high base effect,” it added.
The report complained that political uncertainty in the country weighed on business and consumer sentiments, generating a negative impact on the overall economy.
The real GDP contracted by 0.2 percent, it said, and budgetary targets for the government’s fiscal and primary balances were missed by large margins amid less than planned tax revenues and lower than budgeted reduction in subsidies.
However, the central bank continued to emphasize its objective of maintaining stability of the financial system while reporting it had achieved considerable progress in the area.
“The country’s financial sector grew steadily and continued to meet the economy’s needs of credit and financial services,” the SBP statement added. “Total assets of the banking sector grew by 17 percent in FY23.”
“Within the banking sector,” it continued, “Islamic Banking Institutions (IBIs) performed well during the review period and outperformed their conventional counterparts on several fronts, such as financing and investments along with a double-digit growth in deposit mobilization.”
It may be recalled that Pakistan suffered devastating impact of monsoon floods during the last fiscal year along with elevated global commodity prices and the delay in the ninth review of the International Monetary Fund (IMF) loan program.
The SBP said all these factors added pressure on the country’s external account and created a tough situation for the economy.
Pakistan central bank calls fiscal year 2023 ‘challenging’ amid economic shocks, rising inflation
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Pakistan central bank calls fiscal year 2023 ‘challenging’ amid economic shocks, rising inflation
- The bank says it will continue to take necessary measures to prevent high inflation from becoming entrenched
- SBP counts financial inclusion as one of its objectives, saying total banking sector assets grew by 17% in FY23
Ancient spring festival kicks off in Pakistan’s Chitral, drawing crowds with traditional music and dance
- Chilm Josht festival is celebrated by the Kalash people, often described as pagan due to their religious practices
- The annual event is integral to the identity of the Kalash community and the continuity of its ancient traditions
PESHAWAR: The Khyber Pakhtunkhwa (KP) Tourism Authority on Tuesday announced the beginning of a popular cultural festival in Pakistan’s northwestern Chitral region, saying the event had attracted large numbers of foreign and local tourists like in the past.
The Chilm Josht festival is celebrated by the Kalash people, who are often described as pagan due to their religious beliefs and practices involving the worship of multiple gods and spirits, to mark the arrival of spring and celebrate the bounty of nature.
Known for music, dance, and colorful clothes, the festival is also associated with the preparation for new crops, symbolizing hope and prosperity for the community.
“The ancient Kalash festival ‘Chilm Josht’ has kicked off in full swing,” the KP tourism authority said in a statement. “Young women of Kalash danced to the beat of drums while wearing intricately embroidered garments, enhancing the colors of the festival.”
The statement added that district administration officials, members of the Kalash Development Authority and a large number of domestic and foreign tourists were also attending the festivity.
“The district administration has arranged foolproof security for the festival,” it added. “Tourism police are also providing services for the guidance of tourists.”
Chilm Josht is said to be the oldest festival of the Kalash tribe. It involves various rituals, the most well-known being the one where people dance with walnut branches in hand.
The festival will last for three days in the area known for its rugged terrain and scenic beauty. The annual event is considered integral to the identity of the indigenous Kalash community and the continuity of its ancient traditions.
Pakistan shares hit fresh record on rate cut hopes, IMF talks
- Pakistan last month completed a short-term, $3 billion IMF program, seeking fresh, longer-term bailout
- IMF mission is in Pakistan to discuss financial year 2025 budget, policies, reforms under potential new program
Pakistan’s benchmark share index touched a lifetime high on Wednesday, breaching the key level of 75,000, on hopes that easing inflation could pave the way for interest rate cuts as early as June.
Still attractive stock valuations, expectations of more foreign inflows, and the start of talks with the IMF on a new loan program added to the bullish sentiment.
The index was trading at 75,013 points at 0531 GMT, up 0.7 percent, after hitting an intraday high of 75,115. It has surged 80 percent over the past year, and it is up 16.1 percent year-to-date after an IMF rescue last summer helped the government avert a debt default.
On Monday, the index closed at a record of 73,822, up 1 percent.
Mohammed Sohail, CEO of Topline Securities, said Wednesday’s gains were fueled by foreign fund buying.
On Tuesday, the MSCI index added a Pakistani bank, National Bank of Pakistan, to the MSCI frontier market index. Its shares rose 1.6 percent on Wednesday, outperforming the benchmark index.
“We estimate Pakistan’s weight will also increase, thereby having the potential to attract more passive foreign funds,” said Sohail.
The market is picking up steam due to an anticipated decline in inflation to 13.5 percent for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of Arif Habib Limited.
Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.
Pakistan last month completed a short-term, $3 billion IMF program, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.
An IMF mission is in Pakistan to discuss the financial year 2025 budget, policies, and reforms under a potential new program.
Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July, and recommends going long on the country’s 2027 international bond.
Pakistani deputy PM discusses trade through Khunjerab pass, simplified visa regime with Chinese counterpart
- Pakistani Deputy PM Ishaq Dar is on a visit to China to discuss second phase of CPEC initiative
- New phase shifts focus from infrastructure projects to industrial, agricultural, green energy cooperation
ISLAMABAD: Pakistan and China are pushing to sustain the momentum of the China-Pakistan Economic Corridor (CPEC) as the project enters its second phase, the foreign office said on Wednesday, with the Pakistani deputy prime minister on a visit to Beijing to discuss enhancing trade, including through a major border crossing and a simplified visa regime.
The multibillion-dollar CPEC initiative in which Beijing has pledged to invest $65 billion in Pakistan spans several phases, each with distinct goals and impacts on the region. The first phase began in 2015 and mainly focused on building critical infrastructure, particularly in the transportation and energy sectors.
The second phase expands the focus to include industrial cooperation, agricultural development and the promotion of social and economic development. This phase is also expected to include the development of Special Economic Zones (SEZs), efforts to boost green energy production like hydropower and solar energy and initiatives aimed at modernizing agriculture and increasing exports.
According to an official statement, Deputy Prime Minister Ishaq Dar discussed issues related to bilateral trade and connectivity in a meeting with Chinese Executive Vice Premier Ding Xuexiang during his ongoing visit to Beijing.
“The two leaders held in-depth discussion on the various aspects of bilateral relations including China Pakistan Economic Corridor (Phase-II), trade, economic cooperation and investment,” the foreign office said in a statement.
“Connectivity through Khunjerab border crossing and a simplified visa regime were also discussed. They agreed to sustain the growing momentum of Pakistan-China relations in all areas of cooperation and to further deepen iron-clad Pakistan-China friendship.”
“Deputy Prime Minister and Foreign Minister Dar noted the progress made by CPEC in energy and infrastructure and expressed the confidence at the positive dividends under Phase-II in the fields of industry, agriculture and mineral development,” the statement added.
The foreign office said Dar also expressed condolences with the Chinese official over a March 26 suicide bombing that killed five Chinese workers and their Pakistani driver while they were on their way to the Dasu hydropower project in Pakistan’s northwestern Khyber Pakhtunkhwa province.
The Chinese vice premier expressed his country’s full support to Pakistan in all areas, including the economy, trade and investment and reaffirmed the importance of fast-tracking the implementation of CPEC projects.
A taste of Indian wada pao, pav bhaji in Pakistan’s culinary hub of Karachi
- The beloved vegetarian Indian street foods were not easy to find in Karachi, promoting Kavita Solanki to start her stall
- In a city that offers wide range of meat dishes, the young Hindu woman offers change of taste, alternative for vegetarians
KARACHI: Kavita Solanki had worked for years as a marketing executive when the young Hindu woman decided last October to quit her job and set up a food cart selling two beloved Indian street foods in the Cantonment Area of Pakistan’s financial capital of Karachi.
Though Karachi is considered the South Asian nation’s culinary hub, and all kinds of foods and cuisines can be found at its thousands of restaurants and street stalls, it was not easy to find wada pao and pav bhaji.
Wada pao comprises a deep fried potato dumpling and chutneys placed inside a bread bun sliced almost in half through the middle. Pav bhaji is a thick spicy vegetable curry served with a soft buttered bread roll. Both dishes originated in the Indian state of Maharashtra.
“I used to search on Google about where I can get pav bhaji and wada pao,” Solanki said as she handed a plate of food to a customer at her stall which has come to be called “Kavita Didi Ka Indian Khana,” or Sister Kavita’s Indian Food, or simply, Kavita Didi's Cart.
“So, I thought that the thing which is very difficult to find in the city, why not start with that.”
The stall started attracting large crowds within a short span of time after opening, Solanki said.
“If you say, okay, let's have nihari today, you know you will go to Zahid Nihari,” she said, naming one of the most famous restaurants in Karachi that offers the slow-cooked beef stew dish. “For vegetarian options, people will recommend Kavita Didi, that okay, let's go to Kavita Didi's stall.”
Solanki said people were attracted to her stall not just because wada pao and pav bhaji were difficult to find elsewhere in the city but also due to the authenticity and taste of the food.
“We are giving proper homemade stuff, nothing artificial,” she said. "What we eat at home is what we are bringing here.”
Solanki, who has never been to India and is ethnically Gujrati, said she learnt to make pav bhaji and wada pao from YouTube videos:
“Once we tried it at home, we liked it. So, like every weekend at home, we would be making this for ourselves.”
The stall is also popular for those seeking vegetarian alternatives and a change of taste from meat-based dishes. And her customers include people from all faiths, the entrepreneur said.
“These are some unique dishes that they offer and it's very clean and very yummy and very nice,” pharmacist Maha Ahmed, a loyal customer, told Arab News.
Sikandar Ali, who works at a private firm, said he was drawn to Solanki's stall after seeing videos on YouTube.
“I had a strong desire to come to Didi's place and taste wada pao. So today, I decided that I would come and have wada pao,” said Ali, who grew up hearing about the street food from his mother, who migrated to Pakistan from India.
“I must say, it tastes absolutely amazing. I had a huge desire to go to India and have wada pao. That same taste I have found in Pakistan, in Karachi.”
15,819 Pakistani pilgrims reach Madinah ahead of this year’s Hajj
- This year, around 179,210 Pakistanis will perform Hajj under government and private schemes
- Pakistan launched month-long Hajj flight operation on May 9 with five airlines to transport pilgrims
ISLAMABAD: A spokesperson for the Pakistani Hajj Mission said on Wednesday 15,819 pilgrims from the South Asian nation had reached the holy city of Madinah since Hajj flight operations were launched on May 9 ahead of the annual pilgrimage next month.
This year, around 179,210 Pakistanis will perform Hajj under both the government and private schemes, for which a month-long flight operation started last week.
As part of the Hajj flight operation, five airlines – Pakistan International Airlines, Saudi Airlines, Airblue, Serene Air, and Air Sial – will operate 259 sorties to transport intending pilgrims from eight major cities of Pakistan, namely Islamabad, Karachi, Lahore, Peshawar, Multan, Quetta, Sialkot, and Sukkur, to Jeddah and Madinah under the government scheme.
“Today, 2,736 more pilgrims will reach Madinah through 12 Hajj flights,” the spokesperson for the Pakistani Hajj Mission said.
He said a control room in both Makkah and Madinah was working 24 hours for the convenience and guidance of pilgrims and 119 assistants and 66 doctors and medical staff were providing services as part of the Hajj Affairs Office.
“This year, all Pakistani Hajj pilgrims are being provided accommodation closest to the Prophet’s Mosque,” the official said. “Seven catering companies continue to provide three meals to pilgrims in Madinah.”
From Friday, Pakistani pilgrims who have completed an eight-day stay in Madinah will start departing for Makkah, the religious affairs ministry said.
