Pakistan receives $705.6 million IMF tranche as UAE rolls over $2 billion deposits

In this picture taken on January 11, 2022, a foreign currency dealer counts US dollar notes at a shop in Karachi. (AFP/File)
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Updated 17 January 2024
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Pakistan receives $705.6 million IMF tranche as UAE rolls over $2 billion deposits

  • Fresh inflows from IMF to increase Pakistan’s foreign exchange reserves to around $8.8 billion 
  • Financial experts say IMF inflows, UAE rollover will help build foreign reserves, stabilize exchange rate 

KARACHI: Pakistan’s central bank confirmed on Wednesday it has received a second tranche of $705.6 million from the International Monetary Fund,(IMF) while the UAE rolled over its deposits worth $2 billion with the country’s state bank the same day. 

In July 2023, the IMF approved a much-needed 9-month Stand-By Arrangement (SBA) with Pakistan for $3 billion to support the country’s economic stabilization program. The last-gasp deal helped the South Asian country avoid a looming sovereign default.

On Jan. 11, the international lender completed the first review of Pakistan’s program, allowing for an immediate disbursement of $700 million. 

“SBP [State Bank of Pakistan] has received SDR 528 million (equivalent to $705.6 million) 2024 from the IMF following successful completion of the first review by the Executive Board of IMF under Stand By Arrangement (SBA),” the central bank said in a statement. 

Pakistan received $1.2 billion in July 2023 after the SBA was finalized. The fresh inflows of $705 million would augment the country’s foreign exchange reserves to around $8.8 billion. 

The disbursement will be reflected in the central bank’s reserves for the week ending on Jan.19, 2024. 

In another positive development for cash-strapped Pakistan, the UAE also confirmed it had rolled over two deposits worth $1 billion each with Pakistan’s central bank. 

“UAE has confirmed rollover of its two deposits of $1 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024,” SBP said in another statement. 

Pakistani financial experts said both developments would boost Pakistan’s foreign exchange reserves and stabilize the exchange rate. 

“An adequate level of foreign exchange reserves is an important component of macroeconomic stability for the country,” Dr. Khaqan Najeeb, former adviser of Pakistan’s finance ministry, told Arab News. 

“The IMF inflows, together with the UAE rollover, will help build Pakistan’s foreign exchange reserves which currently are nearing two months’ worth of import cover, rising from one month of import cover,” he said. 

Dr. Najeeb said the development would also assuage market fears and help build the perception that Pakistan has “stabilized on the external front.” 

Farhan Mahmood, head of research at Sherman Securities, said both the inflows and rollover are positive developments for Pakistan as the country’s current account position improves. 

“The inflows and rollover will keep Pakistan’s exchange rate stable at around current levels,” Mahmood told Arab News. 

“If the exchange rate remains stable, it will have an impact on the inflation rate. I don’t see an inflationary pressure after these developments,” he added. 

The Abu Dhabi Fund for Development (ADFD) had previously rolled over its existing deposits of $2 billion in Pakistan’s central bank in January 2023. The move brought much-needed financial relief to cash-strapped Pakistan. 

This infusion of funds takes place at a key time as Pakistan bolsters efforts to stabilize its economic landscape and reinforce collaborative ties with international financial institutions and allies. 


Pakistan benchmark share index extends rally, breaches 73,000

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Pakistan benchmark share index extends rally, breaches 73,000

  • Pakistan’s benchmark index has surged 75.4% over past year, is up 12.5% year-to-date
  • South Asian country’s central bank will announce a policy rate decision later in the day

KARACHI: Pakistan’s benchmark share index breached the key level of 73,000 to trade at a record high of 73,300 in early trade on Monday, according to data from the Pakistan Stock Exchange website.

The index has surged 75.4 percent over the past year and is up 12.5% year-to-date.

The Central Bank’s monetary policy will announce a policy rate decision later in the day, and the International Monetary Fund’s executive board will meet on Monday to decide on releasing the final tranche of $1.1 million to the cash-strapped nation.
 


Pakistan begins week-long campaign to vaccinate 24 million children against polio

Updated 29 April 2024
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Pakistan begins week-long campaign to vaccinate 24 million children against polio

  • Campaign is being held in 91 districts of Sindh, Punjab, Khyber Pakhtunkhwa, Balochistan and Islamabad
  • Pakistani polio vaccinators and security teams guarding them have often been attacked by militant groups 

ISLAMABAD: Pakistani authorities kicked off a week-long campaign to vaccinate 24 million children against poliovirus in 91 selected districts on Monday, the state-run Radio Pakistan reported, as Islamabad tries to eliminate the potentially fatal disease from the country. 

Pakistan and Afghanistan are the only two countries in the world where the poliovirus, which causes paralysis and can be a life-threatening disease, is endemic.

“The campaign is being held in ten districts of Punjab, 24 districts of Sindh, 26 districts of Khyber Pakhtunkhwa (KP), 30 districts of Balochistan, and the federal capital Islamabad,” Radio Pakistan said, adding that 24 million children under the age of five would be administered the vaccine in these districts. 

Dr. Malik Mukhtar Ahmed Bharath, coordinator to the prime minister on National Health Services, said the government is committed to ensuring that all children are protected from poliovirus. 

“Poliovirus has been detected in multiple sewage samples in the country in recent months which means this virus remains a serious threat to children’s wellbeing,” Dr. Bharat was quoted as saying by the state-run Associated Press of Pakistan (APP) on Sunday. 

He said the only way to protect children from the disease is to vaccinate them against it. “We are sending polio teams to your homes, so make sure to open your door to vaccinators and get your child vaccinated,” he added. 

Dr. Shahzad Baig, coordinator of the National Emergency Operations Center for Polio Eradication described it as a “critical campaign” being held in districts with a high risk of poliovirus spread. 

“We have detected the virus in over 31 districts this year, which is why we are continuing to implement regular vaccination campaigns in all high-risk districts to ensure that children have the immunity to fight off polio infection,” he said. 

Pakistan’s efforts to contain polio have often been met with opposition, especially in the country’s northwestern KP province, where militants have carried out attacks against vaccinators and the security teams guarding them. 

Many believe in the conspiracy theory that polio vaccines are part of a plot by Western outsiders to sterilize Pakistan’s population.

Pakistani masses’ doubts regarding polio campaigns were exacerbated in 2011 when the US Central Intelligence Agency set up a fake hepatitis vaccination program to gather intelligence on former Al-Qaeda chief Osama bin Laden. 


Afghans who made Pakistan home to escape war now hide from deportation

Updated 29 April 2024
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Afghans who made Pakistan home to escape war now hide from deportation

  • Pakistan has forcibly deported some 600,000 undocumented Afghans since October 2023
  • Afghans in hiding find it difficult to earn money, rent accommodation or get medical help

KARACHI, Pakistan: Born and raised in Pakistan to parents who fled neighboring Afghanistan half a century ago, an 18-year-old found himself at the mercy of police in Karachi who took his cash, phone and motorbike, and sent him to a deportation center.

Scared and bewildered, he spent three days there before he was sent back to Afghanistan, a place he has never been to, with nothing but clothes on his back.

The youth is one of at least 1.7 million Afghans who made Pakistan their home as their country sank deeper into decades of war. But they’ve been living there without legal permission, and are now the target of a harsh crackdown on migrants who Pakistan says must leave.

Some 600,000 Afghans have returned home since last October, when the crackdown began, meaning at least a million remain in Pakistan in hiding. They’ve retreated from public view, abandoning their jobs and rarely leaving their neighborhoods out of fear they could be next for deportation.

It’s harder for them to earn money, rent accommodation, buy food or get medical help because they run the risk of getting caught by police or being reported to authorities by Pakistanis.

The youth, who had been working as a mechanic in an auto shop since he was 15, spoke on condition of anonymity for fear of arrest and deportation.

He has applied for the same documentation that his family has, but he won’t get it. Pakistan isn’t issuing paperwork for Afghan refugees or their children.

“My life is here. I have no friends or family in Afghanistan, nothing,” the young man told The Associated Press. “I wanted to come back (to Pakistan) sooner, but things had to calm down first,” he said, referring to the anti-migrant raids sweeping the country at the time.

 A police officer checks the document of a resident during a search operation against illegal immigrants at a neighborhood of Karachi, Pakistan, on November 3, 2023. (AP)

Taliban authorities gave him 2,500 afghanis ($34) once he entered Afghanistan to start a new life. They dispatched him to northeastern Takhar province, where he slept in mosques and religious schools because he knew nobody to stay with. He passed his time playing cricket and football, and borrowed other people’s phones to call his family.

Six weeks later, he traveled from Takhar to the Afghan capital, Kabul, then to eastern Nangarhar province. He walked for hours in the dark before meeting up with human smugglers hired by his brother in Pakistan. Their job was to get him to Peshawar, the capital of Pakistan’s northwest Khyber Pakhtunkhwa province, for the price of $70.

He is relieved to be reunited with his family. But he is vulnerable.

Police have daubed numbers on homes in his neighborhood to show how many people live there and how many have documentation. Hundreds of Afghan families have fled the area since the operation began. There are fewer people to hide among.

Such neighborhoods in Karachi are easily home to tens of thousands of Afghans. But they have no drainage systems, health care or education facilities. There are few women on the streets, and those who venture out wear burqas, often the blue ones more commonly seen in Afghanistan.

Lawyer Moniza Kakar, who works extensively with the Afghan community in Karachi, said there are generations of families with no paperwork. Without it, they can’t access basic services like schools or hospitals.

Afghans were already under the radar before the crackdown, and rumors abound that Pakistan wants to expel all Afghans, even those with documentation. Pakistan says no such decision has been made.

In another Karachi neighborhood with a mostly Afghan population, people scatter when police arrive, disappearing into a maze of alleys. A network of informants spread news of the visits.

Kakar despairs at the plight of Afghans who remain in Pakistan. “Sometimes they don’t have food so we appeal to the UN to help them out,” she said. To earn money or get medical help, they would have previously traveled from such neighborhoods into the heart of Karachi, but they can’t afford these journeys anymore. They’re also likely to be arrested, she added.

Some show Kakar their ID cards from the time of Gen. Zia Ul-Haq, the military dictator whose rule of Pakistan coincided with the 1979 Soviet invasion of Afghanistan. “They wonder why they don’t have citizenship after 40 years. They don’t share their location. They don’t go out. They live in property rented in someone else’s name.”

There are children who were born in Pakistan who have grown up and have children of their own. “The children don’t have any identity paperwork. All of them have an undecided future,” said Kakar.

Syed Habib Ur Rehman works as a media coordinator at the Afghanistan Consulate General in Karachi. He spends a lot of time in these communities.

“There are empty homes, empty shops,” Rehman said. “Markets are empty. The Pakistanis we know don’t agree with what is happening. They say they have spent a good life with us. Their business has gone down because so many Afghan families have left.”

The Afghans interviewed by the AP had different reasons for never securing their status. Some said they were overseas working. Others didn’t have time. Nobody thought Pakistan would ever throw them out.

Mohammad Khan Mughal, 32, was born in Karachi and has three children. Before the crackdown started, the Afghan ran a tandoor business. Police told him to close down.

“My customers started complaining because they couldn’t buy bread from me,” he said. He and his family went to the southwestern city of Quetta in Baluchistan province to escape the raids.

He returned to Karachi a few days later, and has no intention of leaving.

“This is my home,” he said, with pride and sadness. “This is my city.”


Saudi-led DCO secretary-general praises Pakistan’s potential for technological advancement— FO 

Updated 26 min 47 sec ago
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Saudi-led DCO secretary-general praises Pakistan’s potential for technological advancement— FO 

  • Digital Cooperation Organization’s secretary-general meets Pakistan’s Deputy PM, Foreign Minister Ishaq Dar in Riyadh
  • DCO is an inter-governmental organization dedicated to achieving social prosperity and growth of digital economies

ISLAMABAD: Deemah AlYahya, the secretary-general of the Saudi Arabia-led Digital Cooperation Organization (DCO) praised Pakistan’s “great potential” for technological advancement and digital transformation of its economy, Pakistan’s foreign office said on Sunday. 

The foreign office’s statement came after AlYahya called on Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar at the sidelines of the World Economic Forum’s Special Meeting in Riyadh on Sunday. 

The DCO is an inter-governmental body established in 2020 dedicated to achieve social prosperity and growth of digital economies. The DCO aims to achieve this by unifying member states’ efforts to advance digital transformation and promote their common interests. DCO member states include Pakistan, Qatar, Saudi Arabia, Rwanda, Kuwait, Morocco, Nigeria, Oman, The Gambia, Ghana, Greece, Jordan, Bahrain, Bangladesh, Cyprus and Djibouti. 

AlYahya is a Saudi digital economy expert and the founding secretary-general of the organization since her election to the post in April 2021. As DCO secretary-general, AlYahya is responsible for connecting heads of state, government ministers and private sector digital economy leaders to bridge the digital gap in member states. 

“During the meeting, the SG recounted her successful visit to Pakistan earlier this month and appreciated Pakistan’s great potential for technological advancement and digital transformation of its economy,” Pakistan’s Ministry of Foreign Affairs (MoFA) said. 

It added that Dar and AlYahya affirmed their resolve to continue collaboration and cooperation for the economic development and digital transformation of Pakistan, Saudi Arabia and other DCO member states. 

“She emphasized that as founding member of DCO, Pakistan brings great value to the organization and has a significant role to play in its rise and progress,” MoFA stated. 

The two also discussed cooperation to bridge the digital divide and promote financial inclusion through digital economy, particularly for women and young people.

Dar stressed the need for DCO member states to achieve their capabilities in emerging technologies in the fast-evolving tech landscape, the statement said. “In this connection, he appreciated DCO for providing the suitable platform to its member states for their digital advancement,” the statement said. 

AlYahya separately posted about her “great meeting” with Dar on the social media platform X. 

“With 64 percent of the population below 30 years old, many of whom are actively involved in the freelance industry, it is critical to ensure we undertake all collaborative efforts that will enable an ecosystem which lets the youth thrive and prosper in the new digital landscape,” she wrote on X. 


PM Sharif, Saudi crown prince discuss bilateral ties and regional situation in Riyadh

Updated 29 April 2024
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PM Sharif, Saudi crown prince discuss bilateral ties and regional situation in Riyadh

  • PM Sharif attends Special Dialogue and Gala Dinner hosted by Saudi crown prince in Riyadh
  • Sharif to address WEF meeting’s closing plenary, meet Malaysian counterpart today 

ISLAMABAD: Prime Minister Shehbaz Sharif met Saudi Crown Prince Mohammed bin Salman in Riyadh on Sunday evening during which the two leaders discussed bilateral relations between Pakistan and Saudi Arabia, the regional situation and Israel’s war on Gaza, Sharif’s office said in a statement. 

Sharif, who arrived in Riyadh on Saturday to attend a two-day special meeting of the World Economic Forum, attended a Special Dialogue and Gala Dinner hosted by the Saudi crown prince in Riyadh. Sharif congratulated the Saudi crown prince for successfully organizing the WEF Special Meeting, the Prime Minister’s Office (PMO) said. 

“The Prime Minister conveyed his prayers and good wishes for the health, happiness and long life of The Custodian of the Two Holy Mosques His Majesty King Salman bin Abdulaziz Al Saud,” the PMO said. “In addition to bilateral ties, the regional situation, particularly with regards to the crisis in Gaza, was also discussed.”

Sharif thanked the Saudi crown prince for sending a high-powered delegation, headed by Saudi Arabia’s Foreign Minister Minister Faisal bin Farhan, to Pakistan earlier this month. The delegation held key meetings with Pakistani ministers and businesspersons to enhance economic cooperation between the Kingdom and the South Asian country. 

“To continue the discussion, the Prime Minister said that he has brought with him a high-powered delegation to Riyadh, including key Ministers responsible for investment, so that follow-up meetings could take place between relevant officials,” the PMO said. 

Sharif reiterated his invitation to the Saudi crown prince to undertake an official visit to Pakistan at his earliest convenience, the PMO added. 

Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.

Both Pakistan and Saudi Arabia have been closely working to increase their bilateral trade and investment, and the Kingdom recently reaffirmed its commitment to expedite an investment package worth $5 billion discussed previously with Islamabad.

Separately, Sharif met Bill & Melinda Gates Foundation (BMGF) co-chair Bill Gates at the sidelines of the WEF meeting on Monday, the PMO said. Both leaders featured in a high-level panel discussion titled “Redefining the Global Health Agenda” on Sunday. 

Sharif informed Gates that Pakistan was working tirelessly to eradicate polio from the country. He thanked the BMGF for its longstanding support for polio eradication in Pakistan and said a sustained effort was required by all partners to reach “the ultimate goal of a polio-free Pakistan,” the PMO stated. 

“Mr. Gates acknowledged Pakistan’s efforts and said polio eradication was vital to protect future generations from this crippling disease,” the statement said. 

Bill Gates (left), co-chair of the Bill & Melinda Gates Foundation (BMGF), calls on Pakistan Prime Minister Shehbaz Sharif in Riyadh, Pakistan on April 29, 2024. (Government of Pakistan)

Apart from polio, the two representatives also discussed progress on ongoing activities between Pakistan and the BMGF in immunization, nutrition, and financial inclusion areas, the PMO said. 

Sharif is scheduled to address the closing plenary of the WEF’s meeting titled “Rejuvenating Growth” today, the APP said in a report. Besides the prime minister, other public speakers of the closing plenary include Saudi Minister of Economy and Planning Faisal Alibrahim, British Secretary of State David Cameron, WEF Geneva Børge Brende and WEF Head of Middle East and North Africa Maroun Kairouz.

The prime minister is also scheduled to meet Saudi ministers for trade, energy, environment and agriculture on Monday, the state-run media said. He is also likely to meet his Malaysian counterpart.