KARACHI: Pakistan State Bank on Monday raised the key policy rate by 150 basis points (bsp) to 12.25 percent, a week after the country reached an agreement with the International Monetary Fund (IMF) for a 39-month loan program worth $6 billion.
The hike, which is a record high in nearly eight years, comes amid fears of accelerated inflation under the new bailout plan given by the global lender.
Prime Minister Imran Khan had recently removed his Finance Minister, governor of central bank, and head of tax collecting agency Federal Bureau of Revenue (FBR) amid ongoing talks with the IMF.
The Monetary Policy Committee (MPC) meeting chaired by the new governor of SBP Reza Baqir announced the new policy rate which exceeds the market consensus of 100 bps.
“Further policy measures are required to address underlying inflationary pressures from higher recent month-on-month headline and core inflation out-turns, recent exchange rate depreciation, an elevated fiscal deficit and its increased monetization, and potential adjustments in utility tariffs,” the SBP said in the monetary policy statement.
Pakistan and the IMF entered into a loan agreement on May 12 which has certain conditionalities attached to it including keeping the interest rate higher than the expected inflation in future as compared to the current inflation rate, allow the currency to find its value in the market, and impose higher taxes while controlling government spending in terms of subsidies.
The IMF program is designed to restore macroeconomic stability and support sustainable economic growth, and is expected to unlock considerable additional external financing.
The government, marred by a widening fiscal deficit, has been relying heavily on central bank to finance the deficit which acted to dilute the impact of previous monetary tightening.
Since the last MPC meeting in March this year, the exchange rate also depreciated by 5.93 percent to PKR 149.65 per US dollar, at the close of May 20, 2019, reflecting a combination of underlying macroeconomic factors and market sentiment considerations, according to the central bank.
The SBP estimates show economic growth in FY19 with a modest rise in FY20. This slowdown is mostly due to lower growth in agriculture and industry while more than two-thirds of the real GDP growth in FY19 is expected to come from services.
Despite the improvement in the current account and a noticeable increase in official bilateral inflows, the financing of the current account deficit remained challenging. Consequently, reserves declined to $8.8 billion as of May 10, 2019 from $10.5 billion at the end of March 2019.
The exchange rate also came under pressure in the last few days. In SBP’s view, the recent movement in the exchange rate reflects the continuing resolution of accumulated imbalances of the past and some role of supply and demand factors. “SBP will continue to closely monitor the situation and stands ready to take measures, as needed, to address any unwarranted volatility in the foreign exchange market,” the statement added.
The overall fiscal deficit is likely to be considerably higher during the first 10 months (Jul-Mar) of current fiscal year as compared to the same period last year due to a shortfall in revenue collection, higher than budgeted interest payments, and security related expenditures. From a monetary policy perspective, a growing portion of the fiscal deficit has been financed through borrowings from SBP.
The average headline CPI inflation reached 7 percent in Jul-Apr FY19 compared to 3.8 percent in the same period last year while it is anticipated to increase further in FY20 subject to a number of upside risks from an expected rationalization of taxes in the upcoming budget, potential adjustments in electricity and gas tariffs, and volatility in international oil prices.
The annualized headline month-on-month inflation has also risen considerably in the last three months due to the recent hike in domestic fuel prices, rising food prices and input costs — where these inflationary pressures are likely to continue for some time.
“The inflation outlook suggests a fall in real interest rates on a forward-looking basis,” the central bank noted.
SBP raises policy rate to 12.25% fearing worst inflation post IMF deal
SBP raises policy rate to 12.25% fearing worst inflation post IMF deal
- Hike comes amid anticipation of high inflation under IMF loan program
- Government’s heavy borrowing from central bank diluted the impact of previous monetary tightening
Pakistan’s religion ministry launches ‘Pak Hajj 2025’ app to facilitate pilgrims
- Pilgrims will be able to review Hajj training and flight schedules via app, says ministry
- Saudi Arabia has allotted Pakistan a total quota of 179,210 pilgrims for Hajj 2025
ISLAMABAD: Pakistan’s religious affairs ministry on Sunday announced it had launched the “Pak Hajj 2025” mobile application to guide and facilitate pilgrims about the annual Islamic pilgrimage next year.
Saudi Arabia has allotted Pakistan a total quota of 179,210 pilgrims for the upcoming Hajj pilgrimage. Around 15 designated Pakistani banks on Monday started receiving applications for Hajj 2025 from intending pilgrims.
Pakistani pilgrims used the app, which is available for both Android and iPhone, last year to secure important updates and information about the Hajj pilgrimage.
“The Ministry of Religious Affairs has launched the mobile app ‘Pak Hajj’ for the awareness of Hajj pilgrims,” the religion ministry said in a statement.
“Hajj applicants will remain informed step-by-step through the Pak Hajj app.”
The ministry said pilgrims can view their Hajj training schedules, including dates, times, and locations, through the app, which also displays flight details with flight numbers, departure cities, dates, and times for both departure and return flights.
The app also presents information about Makkah and Madinah’s various locations and routes with the help of maps, the ministry said.
Pakistan’s religious affairs minister this month announced the country’s Hajj 2025 policy, according to which pilgrims can pay fees for the annual Islamic pilgrimage in installments for the first time.
The first installment of Hajj dues, amounting to Rs200,000 ($717), must be deposited along with the Hajj application under the government scheme, while the second installment of Rs400,000 ($1,435) must be deposited within ten days of the balloting. The remaining amount must be deposited by Feb. 10 next year.
Pakistan confirms Internet shutdown in areas with security concerns ahead of Islamabad protest today
Pakistan confirms Internet shutdown in areas with security concerns ahead of Islamabad protest today
- Internet watchdog NetBlocks confirms WhatsApp backends were restricted nationwide on Saturday night
- Thousands of ex-PM Khan supporters are expected to arrive in Islamabad today for anti-government protest
ISLAMABAD: Pakistan’s interior ministry confirmed that Internet services will be suspended in areas where there were security concerns today, Sunday, as Islamabad braces for a planned protest by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party.
Pakistani users reported slow Internet services in many parts of the country on Saturday night, with independent Internet watchdog NetBlocks confirming WhatsApp backends were restricted.
The development takes place ahead of the PTI’s “long march” to the capital on Sunday. The party is seeking the release of the jailed Khan, who has been in prison for well over a year, and to challenge alleged rigging in the February general elections. The PTI 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.
“Mobile data and Wi-Fi services will be suspended only in areas with security concerns,” a federal interior ministry spokesperson said in a statement.
“Internet and mobile services will continue to operate as usual in the rest of the country.”
The Pakistan Airports Authority (PAA) in a separate statement assured people that all operations at airports across the country, including the Islamabad International Airport, are “running smoothly and without disruption.”
“We categorically refute the baseless rumors regarding a 72-hour stay for international passengers at Islamabad International Airport,” the PAA said. “This claim is completely false and misleading.”
The PAA’s statement comes amid stringent security measures taken by authorities over the past few days to preempt potential disruptions, sealing off motorways and key roads leading to Islamabad with shipping containers.
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.
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.
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.
‘NO COMMUNICATION ON ANY LEVEL’
Pakistan’s Information Minister Ataullah Tarar on Saturday denied any negotiations with the PTI, warning of arrests if anyone joined the demonstration on Sunday.
The Islamabad High Court (IHC) had 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.
“There is no communication on any level,” Tarar said during a news conference, adding that Interior Minister Mohsin Naqvi’s contact with PTI Chairman Gohar Ali Khan was limited to informing him of the IHC order that “declared protests, rallies, sit-ins and marches illegal.”
“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.”
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 on Saturday, referring to a high-security area located right next to sensitive government installations like Parliament, Presidency and the PM House.
Pakistan, Zimbabwe ODI cricket series begins today in Bulawayo
- Pakistan will play three ODI and three T20I matches against Zimbabwe from Nov. 24 to Dec. 5
- Skipper Mohammad Rizwan to lead Pakistan while Zimbabwe will be captained by Graig Ervine
ISLAMABAD: Pakistan and Zimbabwe are set to begin their three-match One Day International series in Bulawayo’s Queens Sports Club from Nov. 24 to Nov. 28, the Pakistan Cricket Board (PCB) said in a statement on Saturday, with the Green Shirts all pumped up following their recent ODI series win against Australia.
Pakistan’s 15-member squad led by captain Mohammad Rizwan reached Zimbabwe last week after defeating Australia 2-1 down under earlier this month. The Pakistani players have held three practice sessions ahead of the Zimbabwe series.
“Pakistan and Zimbabwe will lock horns in a three-match ODI series followed by as many T20Is at the Queens Sports Club in Bulawayo from Nov. 24 to Dec 5,” the PCB said.
“In the 15-member squad Arafat Minhas, Babar Azam, Naseem Shah and Shaheen Shah Afridi have been replaced with the uncapped duo of Abrar Ahmed and Ahmed Daniyal along with pacer Shahnawaz Dahani and Tayyab Tahir.”
It highlighted that the ODI series against Zimbabwe was former pacer and National Men’s Selection Committee member Aqib Javed’s first assignment as the white-ball head coach.
“Pakistan and Zimbabwe last faced each other in the 50-over format in November 2020 in Rawalpindi where Pakistan beat the visitors 2-1,” the PCB added. “Pakistan, on their last visit to Zimbabwe, whitewashed the Chevrons in a five-match ODI series in July 2018.”
Pakistan’s ODI captain termed the Zimbabwe series as “equally important” as the upcoming International Cricket Council Champions Trophy 2025 tournament.
“We aim to test out our bench strength and plan toward the upcoming ICC Champions Trophy 2025 at home,” Rizwan said. “With the help of the Almighty, we aim to keep the winning momentum from our last ODI series going.”
“With the trio of our main players resting up after the Australia series, it will be exciting to see other players putting their hands up and helping the team at various times during the 50-over contests,” he continued.
“Having played against the home team various times, we do expect them to put up challenges for us during the three ODIs but crucially this series will also test out temperament in terms of backing up a historic win in Australia.”
Pakistan ODI squad: Mohammad Rizwan (captain), Abrar Ahmed, Aamir Jamal, Abdullah Shafique, Ahmed Daniyal, Faisal Akram, Haris Rauf, Haseebullah, Kamran Ghulam, Mohammad Hasnain, Muhammad Irfan Khan, Salman Ali Agha (vice-captain), Shahnawaz Dahani, Saim Ayub, and Tayyab Tahir
Zimbabwe ODI squad: Craig Ervine (captain), Brian Bennett, Blessing Muzarabani, Brandon Mavuta, Clive Madande, Dion Myers, Faraz Akram, Joylord Gumbie, Richard Ngarava, Sean Williams, Sikandar Raza, Tadiwanashe Marumani, Tashinga Musekiwa, Tinotenda Maposa and Trevor Gwandu.
Schedule of matches:
24 Nov – 1st ODI vs Zimbabwe (12.30pm PST)
26 Nov – 2nd ODI vs Zimbabwe (12.30pm PST)
28 Nov – 3rd ODI vs Zimbabwe (12.30pm PST)
PM Sharif says nation stands with security forces after killing of militants amid surge in attacks
- PM says government is committed to eradicating militancy after security forces kill three in northwest
- The development comes amid rising violence in Pakistan that has witnessed deadly attacks recently
ISLAMABAD: Prime Minister Shehbaz Sharif said on Saturday the nation stands firmly with its security forces as the military announced the killing of three militants in two separate operations in the country’s northwest amid a sharp rise in violence.
Pakistan’s military also injured three combatants during intelligence-based operations conducted in Khyber and South Waziristan districts on Nov. 21-22.
According to the Inter-Services Public Relations (ISPR), two militants were killed in an operation in Bara, Khyber district, while another was killed and three injured during an attempt to infiltrate Pakistan from the Afghanistan border.
The ISPR reiterated Pakistan’s call for Afghanistan’s Taliban-led interim government to prevent its territory from being used for violent attacks against Pakistan, emphasizing the country’s commitment to securing its borders and eradicating militancy.
“The enemies of humanity will continue to face failure in their evil designs,” the prime minister said in a statement released by his office after the ISPR shared the information. “The entire nation stands shoulder to shoulder with the brave soldiers of our security forces in the fight against terrorism.”
Sharif added his government remains committed to eradicating militancy and ensuring the complete elimination of extremist violence in the country.
The ISPR’s announcement comes amid escalating violence in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, which has witnessed multiple deadly attacks in the past week.
In the latest assault on Thursday, gunmen attacked vehicles carrying minority Shiite community members in KP’s Kurram district, triggering deadly sectarian clashes that have so far killed 64 people.
Prior to that, militants targeted a checkpost in KP’s Bannu district during the week, killing 10 army soldiers and two paramilitary Frontier Constabulary personnel.
Pakistan Army Chief General Asim Munir, during a visit to Peshawar on Friday, vowed decisive action against militant groups and emphasized the need for synchronized operations to dismantle militant networks.
Pakistan’s other western province of Balochistan has also seen a resurgence in militant activity this year.
On Tuesday, the prime minister chaired a meeting of civil and military leaders that approved a “comprehensive operation” to counter separatist insurgents in Balochistan.
The government’s latest actions underline Pakistan’s struggle to address growing instability along its borders and in remote regions, where a combination of militant activity and weak governance continues to pose significant challenges to security forces.
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 has 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 on Saturday.
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.
