KHAPLU, Gilgit-Baltistan: A key land route connecting Pakistan and China was blocked indefinitely by angry protesters in northern Gilgit-Baltistan on Friday, as hundreds of them staged sit-ins against prolonged power outages in the region.
The Karakoram Highway (KKH), a vital trade route between the two countries, was obstructed at Ali Abad, a significant point in the Hunza Valley. The area has witnessed a gradual increase in trade activity following an agreement between Pakistan and China to keep the Khunjerab Pass open year-round to facilitate economic exchanges.
Last month, Pakistan’s National Logistics Corporation conducted its first international cargo transportation via the border, moving goods from China to the United Arab Emirates.
“Hunza is experiencing severe power outages,” Zahoor Ilahi, a protest leader from the Awami Workers Party, told Arab News over the phone. “That’s why we have blocked the Karakoram Highway.”
“The highway has been blocked for all kinds of traffic at Ali Abad since afternoon, and we will not end the sit-in until our demands are met,” he added. “The government is not running the thermal station generators, and all parts of Hunza are facing over 20 hours of power crisis.”
Protests were also held in other parts of Hunza, including Sost and Gulmit, with shutter-down strikes observed against the prolonged power crisis.
“There has been no progress in the power sector for the last three to four years in Hunza,” Rehan Shah, a local resident of the area, told Arab News. “The speed of work on the power projects is very slow, and all residents want an uninterrupted supply of electricity.”
Shah said the protests were jointly organized by various political parties and trade associations in the region.
Meanwhile, protests were also observed in other parts of Gilgit-Baltistan, including Danyor in Gilgit city.
Speaking to Arab News, Advocate Ehsan Ali, president of the Awami Action Committee, said that most districts in the region were facing prolonged power cuts.
“The duration of the power crisis in Gilgit city is about 20 hours,” he said. “Skardu is facing 21 to 22 hours of power cuts, and Hunza is also experiencing the same. Similarly, districts like Ghizer and Chilas are also dealing with the worst kind of power outages.”
“Millions of rupees have been spent on power projects, but unfortunately, none are producing enough electricity,” he said. “In the 21st century, electricity is still unavailable here.”
Hamid Hussain, an engineer at the Gilgit-Baltistan Water and Power Department, acknowledged the issue but attributed it to technical reasons, saying the region heavily relied on hydropower, which often faced disruption in winter due to the freezing of rivers and lakes.
“There are 137 power stations in Gilgit-Baltistan,” he told Arab News. “The installed capacity of these power stations is 190 megawatts. However, power generation is 140 megawatts during the summer while 76 megawatts during the winter due to the low flow of water.”
“The residents of Hunza are demanding thermal generators,” he added. “But we can’t run them due to financial reasons. There are many thermal generators in Gilgit, but we can’t fulfill people’s demand due to the high fuel cost.”
Hussain said his department would run the thermal generators to reduce the power crisis if the government decided to release funds.
Protesters block key Pakistan-China trade route over power outages in Gilgit-Baltistan
https://arab.news/mqnqp
Protesters block key Pakistan-China trade route over power outages in Gilgit-Baltistan
- Residents report facing 20-hour outages despite the construction of several power stations
- Officials say the region relies on hydropower, which is disrupted in winter due to freezing rivers
Pakistan’s oil price hike to slow growth, increase inflation, warn economists, industrialists
- Pakistan hiked fuel prices by over 21 percent this week as ongoing Middle East conflict triggers surge in global crude prices
- Economists and industrialists say increased fuel prices may will inflation, inland freight costs and hurt exports
KARACHI: Pakistan’s economy is bound to bear the brunt of a recent hike in fuel prices by more than 20 percent, economists and industry leaders warned this week, fearing the move is expected to slow economic growth, increase inflation and hurt already declining exports.
Pakistan’s government on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as the ongoing conflict in the Middle East, involving Iran, Israel and the US, sent global oil prices sharply higher and disrupted energy supply routes.
The price of petrol was revised up by 21 percent to Rs321.17 per liter while diesel was increased by 20 percent to Rs335.86 per liter. International oil prices have surged by 37 percent to around $106.8 per barrel from $78 on Mar. 1, while diesel prices have increased to about $150 per barrel since the conflict began on Feb. 28.
“The economy was picking up sluggishly, so I think that space will slow down a bit,” Muhammad Saad Ali, head of research at Lucky Investments Ltd., told Arab News.
“Next year, it is expected that there will be more than 4 percent GDP growth, so potentially that might not happen,” he added.
Pakistan’s central bank said in February that the country’s growth outlook for the current fiscal year has improved to 3.75-4.75 percent due to improved economic activity. The growth will further improve in FY27, the State Bank of Pakistan (SBP) said in its bi-annual Monetary Policy Report.
Ali said the surge in fuel prices would also weigh on consumer price inflation, which rose to 7 percent last month to mark a 16-month high.
“It’s obvious that inflation will increase by 0.7 percent to 1 percent in the future,” Ali said.
He said it was expected that inflation would increase to 8-9 percent by May or June due to the base effect.
“Potentially, it will increase by 0.5 percent to 1 percent,” he said, adding that inflation projections would jump “a lot” in the months ahead.
“The State Bank talks about it a lot. People will cut back on their expenses,” he warned.
Pakistan’s finance adviser Khurram Schehzad and finance ministry spokesperson Qamar Sarwar Abbasi did not respond to Arab News’ questions on the issue.
‘HUGE BURDEN’
Pakistan’s SBP surprised investors in January by keeping the policy rate unchanged at 10.5 percent. The International Monetary Fund (IMF) has asked Islamabad to maintain an “appropriately tight” monetary policy to anchor inflation.
“If oil prices remain elevated, it would upset our inflation and interest rate outlook,” Ali said, adding that the IMF too was likely to be “strict” in its dealings with Pakistan now.
Ali expects the SBP to maintain its borrowing rate at 10.5 percent or increase it by 50 basis points next week. The central bank is scheduled to announce its monetary policy on Monday.
Meanwhile, Karachi Chamber of Commerce & Industry (KCCI) President Rehan Hanif lamented that the oil price hike was “unjustified.”
“This is a huge burden that the government has put on the middle class at a time when people are already coping with Ramadan and Eid-related inflation,” he said.
“This burden could have been avoided without any loss because the reserves of petroleum that you have now came at an old price.”
Hanif noted that while oil supplies can be maintained by importing Saudi oil via a different shipping route, Pakistani industries may suffer due to gas shortages.
“Qatar has stopped gas production,” Hanif warned. “This will lead to a huge gas crisis.”
Pakistan’s trade deficit widened by 25 percent to $25 billion in the July-February period of FY26, as per official data, with exports declining by 7.3 percent to $20.5 billion and imports rising by 8.1 percent to $45.5 billion.
“I see a shortage of gas and because of that, there will be a shortage in our industry. And our exports will be affected,” the KCCI president said.
Textiles comprise the largest chunk of Pakistan’s exports, earning around $18 billion in FY25.
Textile manufacturers, however, fear a surge in inland freight by 30 percent due to increased fuel prices.
“Your inland freight, that is Karachi to Central Punjab and Central Punjab to Karachi, will increase 25-30 percent,” Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), told Arab News.
Pakistan Railways notified a 9 percent increase in its goods transportation freight and a 5 to 10 percent increase in passenger fares on Saturday.
Last year Pakistan imported petroleum products worth $16 billion, accounting for the most on Islamabad’s $58.4 billion import bill, as per official data.
Arshad explained that increasing oil prices will also increase the country’s import bill.
“The problem at the governmental level is that for every $5 increase in international oil prices, there is a $1 billion increase in Pakistan’s import bill, because your biggest import is oil,” he said.
