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  • Stock market jubilant as Pakistan receives second tranche from Kingdom


Stock market jubilant as Pakistan receives second tranche from Kingdom

Pakistan has received $1 billion from Saudi Arabia. (SPA)
Updated 15 December 2018
Khurshid Ahmed
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Stock market jubilant as Pakistan receives second tranche from Kingdom

  • Additional $1bn to help Islamabad works towards resolving its balance of payments crisis
  • Third installment expected in January
Updated 15 December 2018
Khurshid Ahmed

KARACHI: The State Bank of Pakistan (SBP) confirmed on Friday that it had received an additional $1 billion from Saudi Arabia as part of the financial support package promised by Riyadh.

“Yes, we received $1 billion from Saudi Arabia today,” Abid Qamar, SBP spokesman, confirmed to Arab News.

Pakistan's stock market (PSX) reacted in a positive manner to the transfer of the second tranche with the benchmark KSE 100 index posting a 574 points gain. "The market sentiments were positive following the news of Pakistan receiving the second tranche. The expectations of receiving the third tranche in the first week of January will keep the investors sentiments positive in the coming weeks," Zafar Moti, former director of PSX, told Arab News.

According to the central bank, Pakistan’s foreign exchange reserves, during the week ending on December 7, decreased by $242 million to $7,260.4 million because of external debts servicing and other official payments.

With the inflow of the second tranche of $1 billion, the reserves have increased to approximately $8 billion. “The exact figure cannot be ascertained at this point because of constant inflows, outflows, and other payments,” Qamar said.

However, the currency market discounted the inflow of funds due to the open market's lackluster performance.

"The market's major activity is taking place in the grey market," Zafar Paracha, General secretary of Exchange Companies Association of Pakistan, said, adding that the market is expected to fully react on Monday. 

Malik Bostan, President of the Forex Association of Pakistan, said that due to less inflow, as compared to the outflows the country is liable to make, the market reaction was not overwhelming. "The market has already absorbed the impact of the Saudi bailout package when it was announced," Bostan added.

Facing a $12 billion external financing gap, Pakistan secured a $6 billion package from Saudi Arabia: $3 billion in foreign currency support and $3 billion worth of oil on deferred payments. The details were worked out during the Prime Minister Imran Khan's visit to the country in October this year.

As for the final tranche of $1 billion, the SCB spokesman said: “The third tranche is expected in January 2019.

Pakistan received the first tranche of $1 billion from the Kingdom on November 19.

PM Khan, who assumed office in August this year, has twice visited Saudi Arabia to seek financial support.  

Recently, Finance Minister Asad Umar said that Saudi Arabia’s upcoming investment would be "the biggest foreign investment" in the history of Pakistan. The cabinet is expected to clear the way during a scheduled meeting next week.

PM Khan also visited China for funds to support the country’s fragile balance of payments situation.

However, Umar has repeatedly said that the country is "out of the balance of payments crisis".

Islamabad is also in talks with the International Monetary Fund (IMF) for a possible loan package. The final round of talks is expected to take place next month.

Pakistan suffered a current account deficit of $18 billion during the fiscal year FY18. “The balance of payments situation has been the Achilles heel in Pakistan’s macroeconomic environment,” a report from Pakistan Investment Strategy 2019, issued by Arif Habib Limited, stated.

“In a symbolic and economically demanding move, Imran Khan chose Saudi Arabia as his first official tour after taking the oath. Pakistan is facing severe challenges in its balance of payments and is in dire need of foreign assistance. Its long-standing ally, Saudi Arabia, responded positively to Pakistan’s request and provided a $6 billion financial assistance package,” the report added.

The present balance of payments scenario seems fragile as the SBP data shows that over the course of the next 12 months, forward foreign currency swaps remains at an alarming level of $6.9 billion along with scheduled debt repayments of $11 billion.

Topics: Pakistan Saudi Arabia international news latest news headline Pakistan-Saudi relations

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Pakistan rescues nine crew members from Indian cargo vessel after distress alert

Updated 5 sec ago
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Pakistan rescues nine crew members from Indian cargo vessel after distress alert

  • The rescue followed another operation this month in which 12 Indian crew members were saved
  • Incident reflects sporadic cooperation between the two nuclear rivals amid continuing tensions
Updated 5 sec ago
NAIMAT KHAN

KARACHI: The Pakistan Maritime Security Agency (PMSA) successfully rescued nine crew members from an Indian cargo vessel, according to an official statement, after receiving a distress alert from Mumbai.
The incident marks the second such rescue operation by the PMSA within a month, highlighting sporadic cooperation between the two nuclear-armed rivals amid continued tensions.
Diplomatic ties between India and Pakistan remain strained. Both sides also detain each other’s fishermen who inadvertently cross maritime boundaries, often leaving them to languish in prison for extended periods.
The distressed Indian vessel, Tajdare Haram, reportedly experienced water ingress approximately 120 nautical miles south of Karachi, forcing the crew to abandon ship and take refuge in a life raft.
“Upon receiving the distress alert from the Maritime Rescue Coordination Center (MRCC) Mumbai, PMSA immediately launched a coordinated rescue effort,” the Pakistani agency announced in a statement Thursday.
“PMSA deployed an aircraft and directed nearby merchant vessels and PMSA ships to the scene of the incident,” it added. “The PMSA aircraft successfully located the survivors and facilitated the Indian Coast Guard vessel operating in nearby Indian waters for subsequent recovery.”
The rescue followed another operation earlier this month when the PMSA saved 12 Indian crew members from MSV Peeran-e-Peer in a similar situation.
The PMSA said it remained steadfast in its commitment to ensuring maritime safety and upholding international obligations under the Safety of Life at Sea Convention.

Topics: Pakistan India

Pakistan PM orders uninterrupted gas supply amid complaints from domestic consumers

Updated 22 min 35 sec ago
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Pakistan PM orders uninterrupted gas supply amid complaints from domestic consumers

  • Prime Minister Sharif orders reforms to the gas distribution system to resolve the issue permanently
  • Officials claim improvement in gas load management, say power sector also getting sufficient supply
Updated 22 min 35 sec ago
Arab News Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday called for reforms to the gas distribution system after complaints from domestic consumers about shortages, as he was briefed in a meeting that surplus regasified liquefied natural gas (RLNG) was available in the system.
Pakistan has long struggled with gas shortages, particularly during the winter months, as declining domestic production and increasing reliance on imports widen the supply-demand gap.
“Uninterrupted gas supply to domestic consumers during the winter must be ensured immediately,” the prime minister directed during the meeting. “Reforms should be introduced in the system’s structure to resolve this issue permanently.”
He maintained that ensuring gas supply to domestic consumers was the government’s top priority.
Officials briefed Sharif that, compared to the previous year, there has been an improvement in gas load management, resulting in reduced load shedding durations, adding that domestic consumers were currently receiving gas from 5 AM to 10 PM.
“The power sector is also being provided gas according to its demand,” the briefing noted. “Additionally, all gas fields in the country remain operational.
The officials also said the Sui Norther Gas Pipelines Limited had resolved 93 percent of consumer complaints, while Sui Souther Gas Company Limited’s resolution rate stood at 79 percent.
Pakistan’s restive southwestern Balochistan province accounts for much of the country’s domestic gas production, though separatist violence in the region often leads to attacks on pipelines, disrupting supply.
Earlier this week, unidentified assailants near Quetta blew up a pipeline, cutting off supply to several areas in Balochistan.
Repairs commenced after the area was secured, but the incident caused significant inconvenience to residents of the province.

Topics: gas supply fluctuations

Nearly 400 Pakistani soldiers killed in counter-terrorism operations in 2024, military says

Updated 27 December 2024
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Nearly 400 Pakistani soldiers killed in counter-terrorism operations in 2024, military says

  • Pakistani security forces conducted 59,775 intelligence-based operations this year, killing 925 militants, army says
  • Pakistan is battling a resurgence of militant violence particularly in its Khyber Pakhtunkhwa and Balochistan provinces
Updated 27 December 2024
KASHIF IMRAN

ISLAMABAD: Nearly 400 Pakistani soldiers and over 900 militants have been killed in counter-terrorism operations this year, the Pakistan army said on Friday, as the South Asian nation battles a resurgence of militant violence.
Pakistan’s Khyber Pakhtunkhwa and Balochistan provinces have seen a surge in terror attacks in recent months, with groups like the Pakistani Taliban and other militant and separatist groups attacking security forces’ convoys and check posts and carrying out daily targeted killings and kidnappings of law enforcers and government officials.
Addressing a press conference on Friday, military spokesman Lt. Gen. Ahmed Sharif Chaudhry said security forces have conducted 59,775 intelligence-based operations this year, during which 925 militants had been killed and hundreds of others arrested. 
“Over the last five years, this is the highest number of terrorists killed in a single year,” Chaudhry said at a media briefing, saying 73 of the militants killed were “high value targets.”
“During these counter-terrorism operations in year 2024, 383 brave officers and jawans embraced martyrdom.”
The Pakistani Taliban group, also known as Tehreek-e-Taliban Pakistan (TTP), has increased attacks against Pakistani security forces mainly in the northwestern Khyber Pakhtunkhwa province bordering Afghanistan, particularly since November 2022 when a fragile truce between the Pakistani Taliban and the state broke down.
The southwestern Balochistan province, which borders Afghanistan and Iran and is home to key Chinese Belt and Road Initiative projects, has also seen a surge in strikes by separatist ethnic militants, who say they are fighting an unfair distribution of the remote, impoverished province’s mineral wealth. The Pakistani state denies the allegation and says it is working for the uplift of local communities.
The attacks in KP have soured Pakistan’s ties with Kabul, with Islamabad frequently accusing the Taliban administration of sheltering and supporting militant groups. Afghan officials deny state complicity, insisting Pakistan’s security issues are an internal matter.
On Wednesday, the Afghan Taliban said at least 46 people had been killed in Pakistani airstrikes in the eastern border province of Paktika. The Pakistan army and government have not officially confirmed the strikes. 
“Despite all of Pakistan’s efforts and repeatedly pointing out to the Afghan interim government on the state level, Fitna Al-Khwarij [TTP] and other terrorists have been carrying out terrorist activities in Pakistan using Afghanistan’s soil,” Chaudhry said.
“Pakistan will leave no stone unturned in dismantling terrorist networks and safeguarding its citizens against terrorism.”

Topics: Pakistan Army ISPR

Markram leads South Africa to 180-5 in 1st Test against Pakistan

Updated 27 December 2024
AP
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Markram leads South Africa to 180-5 in 1st Test against Pakistan

  • Aiden Markram was batting on an attractive 81 off 123 balls before Pakistan hit back with two wickets in the latter half of the first session
  • Pakistan were dismissed for 211 on Day 1 after Dane Paterson grabbed his second successive five-wicket haul, Corbin Bosch claimed 4-63
Updated 27 December 2024
AP

CENTURION: Opening batter Aiden Markram closed in on his eighth Test century and led South Africa to 180-5 at lunch on the second day of the first Test against Pakistan on Friday.
South Africa, which needs to win one of the two Test matches against Pakistan to seal a place in the final of the World Test Championship at Lord’s next year, trails the visitors by 31 on a pitch tailor-made for fast bowlers.
Markram was batting on an attractive 81 off 123 balls before Pakistan hit back with two wickets in the latter half of the first session with captain Temba Bavuma (31) and David Bedingham (30) both edging behind the wickets.
Wicketkeeper-batter Kyle Verreynne was yet to score but Markram stood tall in the first session and helped South Africa score 98 runs before lunch for the loss of two wickets.
Resuming on 82-3, Markram completed his half century with an exquisite cover driven boundary off Naseem Shah and stretched the fourth-wicket stand to 70 runs with Bavuma before Pakistan got its first breakthrough.
Aamer Jamal was rewarded for his persistent length balls to Bavuma as the South African skipper finally got a thick outside edge while going for a loose drive.
Bedingham counterattacked from the onset, smashing five boundaries in his 33-ball knock and also survived when Pakistan unsuccessfully went for an lbw television review against Naseem Shah’s full pitched delivery, which television replays suggested would have missed the leg stump.
However, Naseem didn’t have to wait long as Bedingham was beaten by some extra bounce and nicked it in the first slip in the penultimate over before lunch.
Pakistan was dismissed for 211 on Day 1 after Dane Paterson (5-61) grabbed his second successive five-wicket haul and debutant Corbin Bosch claimed 4-63, which included a wicket with his first ball in Test cricket.

Topics: Pakistan vs South Africa Pakistan cricket

Shipping service between Karachi, Jebel Ali ports to start from Jan. 13

Updated 27 December 2024
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Shipping service between Karachi, Jebel Ali ports to start from Jan. 13

  • The development comes amid Pakistan’s efforts to leverage its geopolitical position and enhance trade
  • The service will promote economic growth and prosperity, and further accelerate regional development
Updated 27 December 2024
KASHIF IMRAN

ISLAMABAD: Pakistan’s National Logistics Corporation (NLC) and DP World, an Emirati multinational logistics company, are set to begin a shipping service between Karachi and Dubai next month, Pakistani state media reported this week.
Pakistan, which has been facing an economic crisis, wants to leverage its strategic geopolitical position and enhance trade with various countries in the region.
Pakistani policymakers consider the United Arab Emirates (UAE) an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
The shipping service between Karachi and Dubai’s Jebel Ali port is due to begin on Jan. 13, the state-run Radio Pakistan broadcaster reported.
“This shipping service marks a significant milestone in strengthening trade and regional connectivity,” the report read. “It will also promote economic growth and prosperity and will further accelerate the pace of development in the region.”
The UAE is Pakistan’s third-largest trading partner after China and the United States (US), and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE foreign ministry. It is also home to more than a million Pakistani expatriates.
In January this year, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistan ‘s caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos, Switzerland to attend 54th summit of the World Economic Forum (WEF).
The agreements cover the development of a dedicated freight corridor, multi-modal logistics park, and freight terminals, Syed Mazhar Ali Shah, the Pakistan Railways secretary, said at the time.
Under the agreements, DP World would carry out infrastructure improvement at Qasim International Container Terminal, Pakistan’s leading trade gateway, as part of the project. The Emirati firm also planned to develop an economic zone near the terminal.

Topics: Pakistan UAE ties karachi sea port

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