ISLAMABAD: Pakistan will need an additional $191.8 billion between 2020-2050 to transition to a low-carbon energy system and meet its international climate commitments, an Asian Development Bank (ADB) report released this month said.
The report outlines a detailed pathway to help the South Asian nation reduce greenhouse gas (GHG) emissions while maintaining sustainable economic growth. It distinguishes between low-carbon and business-as-usual (BAU) scenarios, with the former focusing on deploying renewable energy, improving energy efficiency and transitioning to cleaner fuels in sectors like power, transport and industry.
“The low-carbon scenario would require an additional investment of $191.8 billion (in 2022 prices) between 2020 and 2050 over the BAU scenario, so the investment commitment is substantial,” the report said.
“Achieving such an ambitious investment program will be challenging,” it added, emphasizing that a significant portion of the required financing would need to come from private sector investments and international financial assistance.
Pakistan, the fifth most populous country in the world, aims to become an upper-middle-income economy by 2047, its centenary year of independence. However, it also remains one of the 10 most vulnerable nations to climate change, facing challenges ranging from devastating floods to extreme heatwaves.
Under its updated Nationally Determined Contributions (NDCs) submitted in 2021, Pakistan has pledged to reduce GHG emissions by 50% by 2030, compared to 2015 levels. Of this, 15% is unconditional, while the remaining 35% is contingent upon receiving adequate international financial support.
The ADB report identifies the energy sector as central to Pakistan’s climate transition.
Investments in hydropower ($153 billion), nuclear power ($103 billion), wind ($62 billion) and solar energy ($51 billion) are necessary to shift away from coal and other fossil fuels. An additional $22 billion is required for modernizing transmission and distribution networks to ensure grid stability.
“The energy sector will need to evolve on a different path,” the report said, highlighting that energy-related emissions could be reduced by 23% by 2030 and 36% by 2050 under the low-carbon scenario compared to the BAU approach.
The report also noted that Pakistan’s renewable energy potential is vast, particularly in solar and wind, given the country’s high sunlight levels and favorable wind conditions. However, achieving these targets would require policy reforms, technological advancements and substantial foreign investments.
The ADB publication emphasized that the low-carbon scenario would involve a shift to cleaner fuels, including natural gas, nuclear power and renewables, as well as the electrification of transport and residential sectors.
By 2050, renewables could account for 61% of electricity generation under this scenario, compared to 17% under the BAU approach.
“Electrification and energy efficiency improvements will play a critical role in reducing demand and emissions,” the report noted, pointing to opportunities such as transitioning from coal to gas in industry and using electricity instead of gas for cooking.
To meet these goals, the report called for strengthening the investment climate, aligning incentives for private sector engagement and enhancing regulatory frameworks.
Pakistan needs additional $191.8 billion for low-carbon transition by 2050 — ADB
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Pakistan needs additional $191.8 billion for low-carbon transition by 2050 — ADB
- Pakistan, one of 10 most vulnerable nations to climate change, faces challenges such as floods and extreme heat waves
- Under its updated Nationally Determined Contributions, Pakistan has pledged to reduce GHG emissions by 50% by 2030
Pakistan stock market cruises past 103,000 points on upbeat inflation data
- Pakistan’s statistics bureau said on Monday annual consumer inflation in Pakistan had slowed to 4.9% in November
- Strong economic data and surging foreign exchange reserves played catalyst role in bullish activity, analyst says
ISLAMABAD: The Pakistan Stock Exchange (PSX) on Monday set a new record as it cruised past 103,000 points during the intraday trading, stock analysts said.
The benchmark KSE-100 index was at 103,036 points at around 250pm on Monday, recording a 1.66 percent gain from Friday’s close of 101,357 points.
The development came as Pakistan’s statistics bureau said annual consumer inflation had slowed to 4.9 percent in November, lower than the government’s forecast, largely due to a high base a year earlier.
Analysts said the stocks showed record bullish activity amid upbeat data on CPI inflation, which was likely to ease the central bank policy.
“Strong economic data and surging foreign exchange reserves [$11,418.5 million in week ending on Nov. 22] played a catalyst role in bullish activity at the PSX,” Ahsan Mehanti, chief executive officer (CEO) of Arif Habib Corporation, told Arab News.
Consumer inflation cooled from 7.2 percent in October, a sharp drop from a multi-decade high of nearly 40 percent in May 2023. The PSX breached the 100,000-mark for the first time on Thursday to close at 100,082 points. The South Asian country slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.
The market rally is also attributable to Pakistan’s new $7 billion loan agreement with the International Monetary Fund (IMF) that has bolstered investor confidence, according to some analysts. The IMF’s disbursement of the first tranche of approximately $1 billion in September, along with fiscal and monetary reforms, improved the sentiment.
But Muhammad Ali Khan, an investment banker and analyst, downplayed the IMF factor and pointed to low interest rates and correction in the market, which had been undervalued for years, as the main reasons behind the bullish trend.
“The stock market had come down to very low valuations, especially in the region, the interest rate is going down and a lot of cash was sitting on the sidelines before this rally,” he told Arab News.
Khan was skeptical of the market performance in the long run, though he expected the market to go up to 110,000 points in the coming days before undergoing another correction.
“This is a speculative market at this point in my view, given that large-scale manufacturing, exports and all other major indicators are crippling,” he said.
“We came off the ventilator. That doesn’t mean we are healthy. IMF saved us, IMF did not solve anything for us.”
Pakistan says 7 of 34 MoUs recently signed with Riyadh actualized into deals worth $560 million
- 34 MoUs worth $2.8 billion were signed between Pakistani and Saudi business in October
- Pakistan has pushed in recent weeks to strengthen trade, investment ties with friendly nations
ISLAMABAD: Seven out of 34 memorandums of understanding (MoUs) signed with Saudi Arabia earlier this year have been actualized into agreements worth $560 million, Pakistani Prime Minister Shehbaz Sharif’s office said on Monday.
The announcement came after Sharif was briefed on progress made on 34 MoUs worth $2.8 billion signed between Pakistani and Saudi business in October. Pakistan and Saudi Arabia have a significant trade relationship, with Pakistan exporting mainly agricultural products and Saudi Arabia exporting mainly petroleum products.
“In a short period of time, 34 investment memorandums of understanding were signed between the two countries, out of which 7 have been given the form of agreements worth $560 million,” Sharif’s office said in a statement after he chaired a meeting to review progress on investment between Pakistan and Saudi Arabia.
“Prime Minister expressed satisfaction over the progress of various ongoing projects between the two countries,” the statement added, as the PM was briefed on discussions held at the second meeting of the Pakistan-Saudi Arabia Joint Task Force in November and informed about cooperation in various sectors.
Pakistan has pushed in recent months to strengthen trade and investment ties with friendly nations, particularly the Kingdom, which has promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up foreign reserves and fight a chronic balance of payment crisis.
Pakistanis are the second-largest expatriate community in the Kingdom, with over 2.5 million living and working in Saudi Arabia, the top source of remittances for the South Asian nation.
Pakistan November consumer inflation slows to 4.9% year on year
- The finance ministry projected inflation would slow to 5.8%-6.8% in November and ease to 5.6%-6.5% in December
- The South Asian country last month slashed interest rates by 250 basis points to help revive a sluggish economy
KARACHI: Pakistan’s annual consumer inflation slowed to 4.9% in November largely due to a high base a year earlier, the statistics bureau said on Monday, lower than the government’s forecast.
The finance ministry had projected inflation would slow to 5.8%-6.8% in November and ease to 5.6%-6.5% in December, it said in its monthly economic report published last week.
The South Asian country slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.
Consumer inflation cooled from 7.2% in October, a sharp drop from a multi-decade high of nearly 40% in May 2023.
Consumer prices in November rose +0.5% from October, according to the Pakistan Bureau of Statistics.
Ex-PM Khan booked in six new cases relating to Islamabad protests — party
- The protests resulted in clashes that Pakistan’s government says killed three paramilitary soldiers and a policeman
- Khan’s party has held several protests this year to demand his release from prison and to challenge Feb. 8 poll results
ISLAMABAD: Former prime minister Imran Khan has been booked in six new cases relating to last week’s protests in Islamabad, Khan’s Pakistan Tehreek-e-Insaf (PTI) party said on Monday, adding to legal woes of the incarcerated premier.
Khan’s PTI led supporters to Islamabad from Peshawar and other cities in the Khyber Pakhtunkhwa (KP) province on November 24, seeking to pressure the government to release the ex-premier from prison.
The protests resulted in clashes that Pakistan’s government says killed three paramilitary soldiers and a police officer, and injured hundreds of others. The PTI has named 12 people who it says were killed during the crackdown.
On Monday, the PTI said the Rawalpindi police sought physical remand of the former premier in cases relating to last week’s protests, but a court ordered his judicial custody till the moving of bail applications in all the cases.
“Imran Khan’s counsels Barrister Salman Safdar, Salman Akram Raja, Usman Riaz Gill and PTI Chairman Barrister Gohar Ali Khan, along with his family members, will meet him today,” the PTI said in a statement.
Separately, PTI Vice-Chairman Shah Mahmood Qureshi was brought from Lahore to Adiyala jail in Rawalpindi to be presented before a judge in a case relating to violent protests in the country by PTI supporters on May 9, 2023, according to Khan’s party.
“After being handed over to jail authorities, we are hopeful his meetings with his legal team and party leaders will resume accordingly,” it added.
Both Khan and Qureshi have been in jail since August last year and entangled in a slew of legal cases, which they say were politically motivated to keep the party out of power.
The PTI party has staged several protests this year to demand the release of Khan and to challenge results of the Feb. 8 national election, which it says were manipulated to favor its opponents. The Pakistani government and election authorities deny this.
Last week’s protests were by far the largest to grip the capital since the poll and the Pakistani government said they caused Rs192 billion per day indirect losses to the economy.
Authorities broker second ceasefire between warring sects tribes in Pakistan’s northwest
- The violence in Kurram district erupted after gunmen attacked a convoy of vehicles carrying mostly Shiites, killing 52 people on Nov.21
- Some Shiites, after burying the victims, launched attacks on Sunni Muslims and clashes ensued, killing 78 people and wounding 200 others
PESHAWAR: Pakistani authorities with help from community leaders brokered a second ceasefire between warring minority Shiites and Sunni Muslims in a troubled northwestern region bordering Afghanistan following a deadly sectarian violence that left dozens of people dead, officials said Monday.
The violence in Kurram, a district in Khyber Pakhtunkhwa province, erupted after gunmen attacked a convoy of vehicles carrying mostly Shiites, killing 52 people on Nov.21. Though nobody claimed the assault, some Shiites, after burying the victims, launched attacks on Sunni Muslims and clashes ensued, killing 78 people and wounding 200 others.
A ceasefire was reached on Nov. 24, but didn’t last long before violence flared up again. This time, authorities are hopeful it will hold.
Javed Ullah Mehsud, the deputy commissioner of Kurram, said tribal leaders helped negotiate the respite Sunday night and that police have been deployed to ensure peace in the area.
Shiite Muslims make up about 15 percent of the 240 million people in Sunni-majority Pakistan, which has a history of sectarian animosity between the communities.
Shiites dominate parts of the Kurram district. Though Shiites and Sunnis generally live in peace there, land disputes have led to sectarian violence in recent months.
