Stock market jubilant as Pakistan receives second tranche from Kingdom

Pakistan has received $1 billion from Saudi Arabia. (SPA)
Updated 15 December 2018
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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

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.


Punjab chief minister suspends top hospital officials over AIDS outbreak during dialysis

Updated 9 sec ago
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Punjab chief minister suspends top hospital officials over AIDS outbreak during dialysis

  • Action comes after 25 patients in Multan contract AIDS due to reuse of disposable dialysis kits
  • Maryam Nawaz visit Nishtar Hospital, emphasizes stricter compliance with medical protocols

ISLAMABAD: Punjab Chief Minister Maryam Nawaz on Saturday suspended six officials at Nishtar Hospital Multan, including the medical superintendent, for severe negligence that led to the spread of AIDS among dialysis patients, state media reported.
According to local news outlets, the negligence involved reusing disposable dialysis kits and dialyzers, failing to conduct mandatory AIDS and hepatitis tests every three months and improper adherence to medical protocols.
Hospital officials acknowledged that 25 patients contracted AIDS after undergoing dialysis using equipment previously contaminated by infected individuals.
“Punjab Chief Minister Maryam Nawaz visited Nishtar Hospital Multan and suspended six officials, including MS Nishtar Hospital and the head of the nephrology department, on severe negligence,” Radio Pakistan reported.
“She took action against doctors and nurses for spreading AIDS during dialysis,” it added.
AIDS, caused by the human immunodeficiency virus (HIV), attacks the immune system and leaves individuals vulnerable to infections and certain cancers. In Pakistan, the social stigma surrounding HIV/AIDS has led to significant underreporting, with UNAIDS estimating approximately 290,000 people living with HIV in the country as of 2023.
According to Pakistan’s Geo TV, the chief minister inspected the hospital during her visit and criticized its poor compliance with standard operating procedures.
She described the situation as “criminal negligence” and expressed dissatisfaction despite the government’s allocation of resources to the health sector.
“It is unacceptable that patients who come to government hospitals for treatment end up contracting AIDS instead,” Geo quoted her as saying.
Public health facilities in Pakistan face a severe trust deficit, with many patients preferring private hospitals despite their high costs. Poor management, insufficient oversight and a lack of adherence to medical protocols continue to erode confidence in the public health care system.
The Punjab chief minister emphasized the need for stricter compliance with protocols and greater accountability for medical staff to prevent such incidents in the future.
She also inspected cardiology and other wards during her visit.


Authorities in Pakistan’s northwest push for ceasefire as Kurram clashes kill 64

Updated 38 min 6 sec ago
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Authorities in Pakistan’s northwest push for ceasefire as Kurram clashes kill 64

  • KP administration sends a high-level delegation to the restive region to consult local elders
  • Provisional spokesman denies the delegation’s helicopter came under fire while landing

PESHAWAR: The death toll in days-long sectarian clashes in Pakistan’s northwestern Kurram district has risen to 64, authorities said on Saturday, as the provincial government of Khyber Pakhtunkhwa (KP) announced it was striving for a ceasefire and would develop its strategy to address the situation in consultation with local elders.
The violence in the restive tribal district bordering Afghanistan began on Thursday when gunmen attacked a convoy carrying members of the minority Shiite community, killing 41 people.
Clashes intensified over the next 24 hours, with sporadic gunfire reported in multiple areas of Kurram, leaving 23 more dead and at least 86 wounded, according to local officials.
“The provincial government is making serious efforts for a peaceful and sustainable resolution of the Kurram conflict,” KP Chief Minister Ali Amin Gandapur, who chaired a meeting via video link to discuss the situation, was quoted as saying in an official statement. “A ceasefire in the area is essential to move toward resolving the conflict.”
“The provincial government will formulate its plan of action in light of consultations and proposals from local elders,” he added.
Earlier in the day, the KP administration dispatched a high-level delegation to Kurram to assess the situation and engage with tribal leaders. Local media widely reported that the delegation’s helicopter came under fire while landing, a claim the provincial authorities denied as “baseless.”
“We landed safely and held meetings with tribal elders and officials of the district administration in Kurram,” said provincial government spokesman Muhammad Ali Saif in a video statement. “There was no such incident [of firing on the helicopter].”
Former parliamentarian Sajid Hussain Turi, who was part of the delegation, also dismissed the reports as “propaganda,” urging media outlets to verify information before circulating.
The delegation met with Shia elders in Parachinar, the district’s main town, to seek proposals for ending the violence and is scheduled to meet Sunni elders in Sadda on Sunday, officials said.
The clashes mark one of the deadliest incidents in Kurram in recent years, following outbreaks of sectarian violence in July and September that killed dozens.
Gandapur described Friday’s attacks as “deeply regrettable and condemnable” and said the government would fulfill any legitimate demands from both sides to prevent further bloodshed.
“Establishing peace in the region is currently the provincial government’s top priority,” he added.
Shop owners in Parachinar have announced a three-day strike in protest against the violence, as residents report an atmosphere of fear and uncertainty across the district.


Pakistan’s anti-terror body warns of militant threat to opposition protest in Islamabad

Updated 23 November 2024
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Pakistan’s anti-terror body warns of militant threat to opposition protest in Islamabad

  • NACTA alert says Taliban militants have entered Pakistan, may target Imran Khan’s party rally
  • PTI has urges people to join Sunday’s protest in the capital to secure Khan’s release from prison

KARACHI: Pakistan’s National Counter Terrorism Authority (NACTA) has warned of potential militant attacks targeting former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party’s protest march, according to a classified alert shared with provincial officials earlier this week.
The alert, issued on Thursday but revealed in the media on Saturday, cited intelligence from “multiple sources” indicating that militants belonging to the banned Tehreek-e-Taliban Pakistan (TTP) had entered Pakistan from Afghanistan and infiltrated major cities.
Referring to the TTP as “Fitna Al Khawarij (FAK),” the alert warned that its fighters could target participants of the PTI protest.
“Sources have confirmed that FAK elements are planning to conduct such activities in public/political gatherings; most likely upcoming PTI protest/march as opportunity to exploit for their vested interest,” the alert, in possession of Arab News, said.
A senior NACTA official, speaking on condition of anonymity, confirmed its authenticity.
The PTI has called on its followers to march on Islamabad on Sunday to demand Khan’s release, as he has been imprisoned for over a year.
The march also aims to protest alleged electoral manipulation in February’s general elections and to highlight concerns over judicial independence, which the government has denied.
The Taliban have not officially responded to the alert regarding their potential involvement in attacks. However, the militant group has previously maintained that it has a policy of not targeting ordinary citizens.
The government has already urged the PTI to call off the protest, citing an Islamabad High Court ruling that instructed authorities to engage with the party and ensure no disruptions in the capital ahead of a major foreign delegation visit next week.
According to Pakistan’s foreign office, Belarusian President Aleksandr Lukashenko will arrive in Islamabad on a three-day visit starting Monday to discuss economic collaboration between the two countries.


KSrelief officials join global delegation meeting PM Sharif to boost Pakistan’s polio fight

Updated 23 November 2024
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KSrelief officials join global delegation meeting PM Sharif to boost Pakistan’s polio fight

  • Shehbaz Sharif says his government will not rest until the ‘scourge of polio’ is completely eradicated
  • Pakistan has reported 52 polio cases since the beginning of the year, mostly from KP and Balochistan

KARACHI: Officials from Saudi aid agency KSrelief, as part of a Global Polio Eradication Initiative delegation, met Prime Minister Shehbaz Sharif to discuss strengthening Pakistan’s vaccination campaigns, tackling polio challenges and securing support for a polio-free future, according to an official statement released on Saturday.
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The South Asian nation’s polio eradication campaign has faced serious challenges, with a significant spike in reported cases this year amid militant attacks on polio teams, prompting officials to reassess their approach to combating the crippling disease.
Pakistan reported two new polio cases from Dera Ismail Khan in the northwestern Khyber Pakhtunkhwa (KP) province a day earlier, bringing the total number of cases to 52 since the beginning of the year.
“Pakistan hosted a high-level delegation from the GPEI for a second time this year from Nov. 20-22,” the Pakistan Polio Eradication Program (PPEP) said in a statement, adding that the meeting reflected the highest level of political commitment to eradicating polio in the country.
The delegation included two senior KSrelief officials along with World Health Organization, Bill & Melinda Gates Foundation and UNICEF representatives.
The prime minister expressed gratitude to the delegation for supporting Pakistan, emphasizing that the country considers the eradication of polio a top priority.
“A strategic National Emergency Action Plan is being implemented to reverse the virus surge, and all chief ministers and secretaries are providing direct oversight and working in coordination to fight the current polio outbreak,” Sharif was quoted as saying.
“The Government of Pakistan will not rest until we have ended the scourge of polio from our borders,” he added.
The delegation also visited metropolitan Karachi during their stay in the country, where its members met with female frontline health workers to discuss the challenges they face and explore ways to address them, the statement said.
Of the 52 polio cases reported in 2024, 24 were from Balochistan province, 13 from Sindh, 13 from KP, and one each from Punjab and Islamabad, the federal capital.
Poliovirus, which can cause crippling paralysis, particularly in young children, remains incurable and continues to threaten human health as long as it is not eradicated. Immunization campaigns have succeeded in most countries and have made significant progress in Pakistan, but persistent challenges remain.
In the early 1990s, Pakistan reported approximately 20,000 cases annually, but by 2018 the number had dropped to eight. Six cases were reported in 2023, and only one in 2021.


Government rules out talks with Imran Khan’s party, threatens arrests ahead of Islamabad protest

Updated 23 November 2024
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Government rules out talks with Imran Khan’s party, threatens arrests ahead of Islamabad protest

  • PTI’s Ali Amin Gandapur asks all Pakistanis to come out and join the protest in the capital on Sunday
  • Interior minister has informed the top PTI leader the government will not allow the ‘illegal’ demonstration

ISLAMABAD: The government denied any negotiations with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party on Saturday, which plans to protest in Islamabad tomorrow, with the country’s information minister, Attaullah Tarar, warning of arrests if anyone came out to join the demonstration.
The PTI has called for a “long march” to the capital to demand Khan’s release, as he has been in prison for well over a year, and to challenge alleged rigging in the February general elections. The party also seeks to highlight its concerns about judicial independence, which it claims has been undermined by the 26th Constitutional Amendment, a charge denied by the government.
The Islamabad High Court (IHC) on Thursday directed the government to engage in talks with PTI leadership regarding the protest, emphasizing the need to avoid disruptions during the three-day visit of Belarusian President Aleksandr Lukashenko starting Monday. The court hoped the PTI would have “meaningful communication” with the government, acknowledging that law and order would be the administration’s priority if there was no breakthrough.
Subsequently, Pakistan’s interior minister, Mohsin Naqvi, met with PTI chairman Barrister Gohar Ali Khan to inform him that the government could not allow the protest under the current circumstances.
“There is no communication on any level,” Tarar said, adding that Naqvi’s contact with the PTI leader was limited to informing him of the IHC order that “declared protests, rallies, sit-ins and marches illegal.”

Vehicles use alternate way on road, which closed with shipping containers ahead of a planned rally by supporters of imprisoned former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf party, in Islamabad, Pakistan, on November 23, 2024. (AP)

“The court’s directive is clear, and anyone who attempts to protest will be arrested and face legal consequences,” he continued. “There is no confusion on our part.”
Authorities have taken extensive measures to preempt potential disruptions, sealing off motorways and key roads leading to Islamabad with shipping containers.
However, Chief Minister of Pakistan’s northwestern Khyber Pakhtunkhwa province, Ali Amin Gandapur, a close aide of the jailed former prime minister, reiterated the call to all Pakistanis to join the protest during the day.
“It is imperative for us to leave our homes to protest the illegal incarceration of Imran Khan and stage a demonstration at D-Chowk on Nov. 24,” he proclaimed in a video message, referring to a high-security area located right next to sensitive government installations like Parliament, Presidency and the PM House.
“We all have to reach there and not leave until our demands are met,” he continued, saying the PTI wanted Khan’s release along with the return of its mandate in the last general elections, which the party said was rigged to keep it out of power.
He pointed out the PTI wanted an end to “fascism inflicted on us” and protection of the constitution in the country.

“Since the protest call is from Imran Khan, we will not go back until our demands are met,” he added.

A cotton-candy seller walks past police officers stand guard on an entry point to motorway leading to Islamabad, which has been closed by authorities due to a planned rally by supporters of imprisoned former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf party, in Lahore, Pakistan, on November 23, 2024. (AP)

The National Highways and Motorway Police (NHMP) stated on Friday that it had shut down major highways based on intelligence reports indicating that protesters might carry sticks and slingshots and attempt to disrupt public order.
“To protect lives and ensure public safety, major arteries have been sealed,” an NHMP statement said, adding that violators would face strict action.
Additionally, a ban on public gatherings has been imposed in Punjab until November 25, while the Metro Bus service between Islamabad and Rawalpindi will remain suspended on November 24.
Pakistan’s parliament earlier this year passed legislation regulating public demonstrations in the capital, including designated protest areas and specific timings for rallies. Violators risk imprisonment of up to three years for illegal gatherings and up to 10 years for repeat offenses.

A paramilitary soldier stands guard as a motorcyclist drives on a highway, which is partially closed with shipping containers ahead of a planned rally by supporters of imprisoned former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf party, in Islamabad, Pakistan, on November 23, 2024. (AP)

The interior ministry has also deployed paramilitary forces, including Punjab Rangers and Frontier Corps personnel, in Islamabad to maintain order during the PTI’s planned demonstration.
Tarar also stated during his remarks that the government would not allow anyone to take the law into their own hands.