MIRPUR, Pakistan: The tiled palaces beside Pakistan’s Mangla reservoir and dozens of exchange offices testify to the prosperity enjoyed by Kashmir’s Mirpur thanks to vast sums of cash sent back by tens of thousands of emigrants living in Britain.
With few jobs and little industry, the residents of Pakistan’s “Little England” overwhelmingly rely on family members based in the country for their economic livelihood.
But decades after the first wave of migration, the fraying of filial ties between the communities along with economic woes following the Brexit vote have raised concerns that the once-plentiful funds may dry up for good.
“Our family used to send us money every month — now it’s only every two-three months,” says Javed Mushtaq, who like many Mirpur residents is counting less and less on support from his relatives in Britain.
“The value of the pound has decreased and that creates problems for us,” says Mushtaq, an official whose brothers and uncles live in northern England, working as taxi drivers and in construction to support more than a dozen people back in Pakistan.
“Our life is not as easy as before,” says Javed.
Since Britain’s decision to leave the EU, sterling has tumbled, sending inflation surging and raising the cost of living, while uncertainty over the post-Brexit outlook has fueled concerns about the country’s economy.
And with Kashmir lacking any major resources while unemployment soars, the prospects in Mirpur are dim.
“There is no large land holding, no industrial base, we are not on a good route,” said businessman and local official Choudhery Muhammad Saeed, who estimates that about $200 million in remittances are sent back to Mirpur a year.
“If it was not for remittances, we would all be slaving in brick kilns,” he quips.
The first and largest wave of migration to the UK began in the 1950s when the inhabitants of Mirpur were displaced by the construction of a dam that engulfed large swathes of the town.
In Britain, more than a million residents are of Pakistani origin with the majority believed to be from Mirpur — where they have long built family homes and spent holidays.
As a result the city has largely feasted on the highs and survived the lows of the British economy.
At Nafees Bakers, a local branch of the British franchise in Mirpur, sales have plunged 30 percent since the Brexit referendum in June 2016.
“The Mirpuri British (holidaying here) are worried about the financial situation, people are not spending as much as they used to,” said Raafay Nafees, whose father founded Nafees and Kashmir Crown Bakeries, two food companies based in the British city of Bradford.
Remittances have fallen almost 10 percent since the referendum, according to the Central Bank of Pakistan.
This decline, after years of steady growth, has worried authorities as an increase in imports and repatriations of profits by foreign companies have jeopardized the country’s foreign exchange reserves.
But beyond Brexit, the erosion of ties to Mirpur over the generations has also taken a toll.
“People only come for short stays now, and not with all the family. The tickets are expensive, and the youngsters prefer to spend holidays in Turkey or Morocco,” says Nafees.
“When I was younger, we would come every year, but this is the first time after four years,” says Alisha Iqbal, a young Birmingham financial analyst who is enjoying her last day in Mirpur, filling her luggage with colorful outfits and local ingredients.
“I don’t have that much holidays, so I tend to choose closer, cheaper destination.”
Even among the second generation who continue to visit the city, few send money back to Pakistan.
And apart from the arranged marriages between British and Pakistani Mirpuris, emigrant families are not returning as often to celebrate their weddings in Kashmir.
For Nadeem Hussain, a fast food manager in Stoke-on-Trent, the ties that bind the communities will likely fade into oblivion within a generation or two.
His family serves as a textbook example of the fraying relations. Twenty years ago, his father built a home in Kashmir and bought land hoping to retire back in Mirpur.
But now his father has abandoned those plans.
“Pakistan has changed, it is too complicated to come back,” he explains while sharing a dessert with his two-year-old daughter. “I don’t think my daughter’s children will retain that many links with Mirpur.”
Brexit hastens Pakistani Kashmir’s economic break with Britain
Brexit hastens Pakistani Kashmir’s economic break with Britain
Saudi Arabia launches $266m program to promote eco-friendly projects
RIYADH: Saudi Arabia has unveiled a new environmental financing initiative worth SR1 billion ($266.6 million), supported by Riyad Bank, to encourage private sector participation in sustainable and eco-friendly projects.
Abdulrahman Al-Fadhli, Saudi Arabia’s minister of environment, water, and agriculture and chairman of the Environmental Fund’s board of directors, officially introduced the program on Sunday.
The launch coincided with the unveiling of a new digital platform for the Incentives and Grants Program, designed to foster innovation and boost environmental investments.
This initiative aligns with Saudi Arabia’s Vision 2030 objectives, which focus on promoting environmental sustainability and enhancing the quality of life.
Munir bin Fahd Al-Sahli, CEO of the Environmental Fund, emphasized that the financing program is aimed at attracting private sector investments to strengthen environmental infrastructure and meteorological services. He also noted that the program will encourage businesses across various sectors to adopt sustainable practices through innovative financial solutions.
Al-Sahli described this partnership as a major step forward in funding environmental projects, highlighting that the new platform would offer incentives and support for outstanding environmental initiatives. These efforts are part of a broader national strategy to protect the environment and foster sustainable development.
The financing program represents a significant milestone in enhancing environmental investments in the Kingdom. It provides businesses and entrepreneurs with resources and incentives to develop projects that not only improve quality of life but also contribute to sustainable environmental growth.
The new electronic platform for the Incentives and Grants Program, which was launched alongside the financing initiative, is designed to streamline the process for beneficiaries and ensure efficient execution of environmental projects. The platform aims to promote eco-friendly practices, foster innovation, and encourage investment in the environmental sector, while also ensuring regulatory compliance across various industries.
Al-Sahli reiterated the fund’s commitment to offering both financial and technical support to ensure lasting positive impacts on the environment. He urged stakeholders in the environmental sector to explore the various opportunities available through the platform.
The Incentives and Grants Program is expected to drive investment in environmental projects and improve compliance levels among institutions. It will provide grants and incentives to a broad range of entities, including small and medium-sized enterprises, corporations, research centers, universities, and nonprofit organizations.
The Environmental Fund continues to develop and implement programs focused on protecting natural resources, reducing pollution, and raising environmental awareness. Through collaborations with government and private entities, it strives to balance economic growth with environmental conservation.
Saudi Arabia’s inflation holds steady at 2% in February: GASTAT
RIYADH: Saudi Arabia’s inflation held firm at 2 percent year on year in February, driven largely by rising housing costs, official data showed.
According to the General Authority for Statistics, the increase was fueled by an 8.5 percent surge in housing rents, contributing to a 7.1 percent overall rise in the housing, water, electricity, gas, and fuels category.
The inflation rate remains consistent with Saudi Arabia’s efforts to balance economic growth with price stability as the Kingdom advances its Vision 2030 strategy, which aims to diversify the economy beyond oil.
The government’s November 2024 budget forecast anticipated inflation to hold steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. Meanwhile, the World Bank projected a stable 2.3 percent rate this year, below the Gulf Cooperation Council average.
“On a monthly basis, the consumer price index in February 2025 recorded relative stability compared to January 2025, rising by 0.2 percent due to the increase of housing, water, electricity, gas, and other fuels section by 0.4 percent, driven by a 0.4 percent increase in actual housing rent prices,” said GASTAT.
Sector breakdown
Food and beverage prices saw a modest rise of 1 percent, largely influenced by a 3.7 percent increase in meat and poultry costs. Personal goods and services climbed 3.9 percent, bolstered by a 26.7 percent jump in jewelry prices.
Restaurant and hotel costs edged up 0.8 percent year on year, while furniture and home equipment prices dropped 2.5 percent. Clothing and footwear prices declined 1 percent, led by a 2.4 percent drop in ready-made clothing.
Transportation costs also dipped 1.5 percent compared to February 2024.
On a monthly basis, consumer prices remained stable overall, with food and beverages slipping 0.2 percent. Personal goods and services rose 0.7 percent, while health and tobacco prices held steady.
Wholesale Price Index
In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in February, driven by a 3.4 percent rise in other transportable goods prices and a 3.9 percent increase in agriculture and fishery products.
Food products, beverages, tobacco, and textiles fell by 0.1 percent year on year, while metal products, machinery, and equipment prices dipped 0.5 percent. Ores and minerals costs dropped 1.9 percent.
Compared to January, the WPI declined 0.5 percent, led by a 1.4 percent fall in other transportable goods prices, excluding metal products, machinery, and equipment. Food products, beverages, tobacco, and textiles also saw a marginal 0.1 percent drop, while agriculture and fishery product costs rose 1.6 percent.
Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges
RIYADH: The Arab region’s gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data.
The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region’s total GDP, as reported by the Kuwait News Agency.
This aligns with Moody’s January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025.
It also corresponds with Moody’s projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region’s sovereign credit fundamentals for the next 12 months.
The data also indicated positive outlooks for the Arab economy’s performance in 2025, with an expected growth rate of 1.4 percent.
This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP.
There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region.
In January, Moody’s emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program.
Moody’s also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement.
According to Moody’s, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.
Oil exports propel Oman’s trade surplus to $19.4bn
- Saudi Arabia ranked second for Omani non-oil exports at 849 million rials
RIYADH: Oman’s trade surplus reached 7.5 billion Omani rials ($19.4 billion) in December, up from 7.14 billion rials in November, largely driven by the oil and gas sector, according to a new report.
Preliminary data from the National Centre for Statistics and Information indicated that the increase was primarily due to higher export revenues, especially from oil and gas, despite a rise in imports.
The total value of merchandise exports in December amounted to 24.23 billion rials, reflecting a 6.8 percent increase compared to the same period in 2023, when exports were valued at 22.69 billion rials.
The growth was predominantly attributed to a rise in oil and gas exports, which reached 16.29 billion rials, an 18.4 percent increase from 13.76 billion rials in December 2023.
Meanwhile, Oman’s merchandise imports increased by 12.1 percent year on year, reaching 16.71 billion rials in December, up from 14.91 billion rials the previous year.
Despite the increase in imports, the trade balance remained positive, supported by the robust performance of the country’s energy exports.
Within Oman’s oil and gas exports, crude oil exports totaled 9.91 billion Omani rials by the end of December, marking a 0.8 percent increase from the same period in 2023.
Refined oil exports saw a significant surge of 185.5 percent, reaching 3.85 billion rials. However, liquefied natural gas exports declined by 1.9 percent to 2.53 billion rials.
Meanwhile, non-oil merchandise exports fell by 16.3 percent to 6.23 billion rials in December, down from 7.44 billion rials the previous year.
Among these, mineral products accounted for the highest value at 1.78 billion rials, but this figure represented a 36.8 percent year-on-year drop.
Exports of base metals and their products remained stable at 1.32 billion rials, increasing slightly by 0.1 percent, while plastic and rubber product exports grew by 13.3 percent to 996 million rials.
Chemical industry exports declined by 19.6 percent to 804 million rials, and exports of live animals and animal products fell 11 percent to 350 million rials. Other exports totaled 981 million rials, a decrease of 5 percent.
Re-exports from Oman increased by 14.9 percent to 1.71 billion rials by the end of December. Within this category, re-exports of food and beverage products saw a notable 30.6 percent rise to 184 million rials, while re-exports of mineral products climbed 21.3 percent to 120 million rials.
However, re-exports of transport equipment fell by 0.6 percent to 401 million rials, and electrical machinery and equipment declined by 5.4 percent to 376 million rials. Re-exports of live animals and related products also dropped by 10.1 percent to 97 million rials.
On the import side, mineral products accounted for the largest share, totaling 4.67 billion rials, an 11.3 percent increase from December 2023.
Imports of electrical machinery and equipment surged 28.9 percent to 2.93 billion rials, while base metals and their products rose 1 percent to 1.61 billion rials.
Imports of chemical products rose 3.1 percent to 1.52 billion rials, and transport equipment imports increased by 13.5 percent to 1.52 billion rials. Other imports totaled 4.47 billion rials.
The UAE remained Oman’s top trading partner for non-oil exports, with trade value rising 11 percent year-on-year to 1.05 billion rials.
The UAE also led in re-exports from Oman, which amounted to 569 million rials, and was the top source of imports into the country, totaling 3.94 billion rials.
Saudi Arabia ranked second for Omani non-oil exports at 849 million rials, followed by India at 659 million rials.
Iran was the second-largest destination for Omani re-exports at 359 million rials, with Kuwait in third at 117 million rials.
China was the second-largest exporter to Oman, with trade valued at 1.83 billion rials, followed by Kuwait at 1.69 billion rials.
In the oil sector, total crude oil exports until the end of January stood at approximately 25.82 million barrels, with an average price of $72.5 per barrel.
Oil exports accounted for 84.3 percent of total oil production, which reached 30.61 million barrels during the same period. However, crude oil exports declined by 1.5 percent compared to January 2024, when they totaled 26.2 million barrels.
Oil production also saw a 2 percent year-on-year drop, standing at 31.24 million barrels in January.
The country’s total crude oil production fell by 2.2 percent in January to 23.39 million barrels, while condensate production reached 7.22 million barrels. The daily average oil output for January stood at 987,500 barrels.
In the banking sector, total credit provided by conventional commercial banks in Oman grew by 4.8 percent by the end of December. Private sector credit rose by 3.6 percent, reaching 20.7 billion rials.
Investment by conventional banks in securities also saw a notable increase, rising 20.5 percent to approximately 6 billion rials.
This included a 7.3 percent rise in investments in government development bonds to 2 billion rials and a 30.3 percent surge in foreign securities investments to 2.3 billion rials.
On the liabilities side, total deposits at conventional commercial banks increased by 6.2 percent to 25.1 billion rials by the end of December.
Government deposits rose by 5.3 percent to 5.3 billion rials, while public sector institution deposits grew by 11 percent to 2.5 billion rials. Private sector deposits, which made up 65.3 percent of total deposits, climbed 4.9 percent to 16.4 billion rials.
Saudi Arabia’s top body reviews economic performance, global outlook
JEDDAH: Saudi Arabia’s Council of Economic and Development Affairs hosted a virtual meeting to discuss financial performance and global developments, focusing on improving public sector contributions.
Operating under the Council of Ministers, CEDA oversees the governance framework, mechanisms, and policies essential to achieving Saudi Vision 2030. It addresses key domestic sectors, including health, labor, education, and Islamic affairs.
Held on March 15, the meeting covered a range of reports and topics, including the quarterly economic report from the Ministry of Economy and Planning.
According to the Saudi Press Agency, the report is “an in-depth analysis of the drivers and challenges affecting national economic growth across various sectors, along with proposed solutions.” It also highlighted Saudi Arabia’s strong economic performance in the third and fourth quarters of 2024, supported by projections from both local and international institutions.
CEDA also reviewed the Ministry of Finance’s fourth-quarter budget performance report for the 2024 fiscal year. The report noted that total expenditures reached SR1.37 trillion ($365.3 billion), reflecting a 6 percent annual rise, while the budget deficit widened to SR115.63 billion — a 43 percent increase from 2023, in line with previous forecasts.
The report outlined revenue, expenditure, and public debt indicators, noting a “21 percent increase in non-oil revenues, reaching SR132 billion, compared to SR109 billion during the same period of the previous year,” SPA said.
It credited government reforms and diversification efforts for driving growth, aligning with Saudi Vision 2030’s aim to expand non-oil sectors.
The report also underscored the Kingdom’s “continued support for development and service projects, as well as its commitment to enhancing social welfare and protection systems,” according to SPA.
The meeting further discussed Saudi Arabia’s upcoming participation in the 2025 World Economic Forum in Davos, emphasizing the Kingdom’s rising role among the world’s leading economies.
CEDA reviewed additional presentations on policies and administrative frameworks, including the Supreme National Investment Committee’s guiding principles for green investments and the Ministry of Media’s organizational structure and regulations.
The council also examined data from the General Authority for Statistics, covering import substitution indicators, the Consumer Price Index, and the Wholesale Price Index. It further reviewed the 2024 Monthly Foreign Trade Report.
The meeting concluded with CEDA issuing decisions and recommendations on the discussed matters.
