KARACHI: Pakistan would take a $1.2 billion hit on every $5 per barrel increase in the global oil prices, experts told Arab News after two Saudi oil facilities were droned on Saturday, adding that such a scenario could lead to “unimaginable” economic consequences for the South Asian country.
The Houthi militia attacked the Kingdom’s major oil facilities in the Eastern Province on Saturday, causing a disruption of 5.7 million barrels a day and removed 5 percent of global oil supply that resulted in a 15 percent increase in the global oil price at the beginning of the Asian trade on Monday.
The Brent crude for November futures traded at $65.41 per barrel by midday after posting an 8.6 percent gain in the Asian trade.
The attack that the US State Secretary, Mike Pompeo, blamed on Iran resulted in the single biggest oil supply disruption since the Iranian Revolution of 1979 when 5.6 million barrels a day went out of the global supply.
With all eyes riveted on Saudi Arabia and how quickly it manages to restore its full oil production, Pakistani experts say it will have a devastating impact on the country’s economy as Pakistan’s enhanced oil import bill will undermine all the measures to bring down the current account deficit.
Oil imports constituted 26 percent of the country’s total import bill of $54.8 billion during the fiscal year FY19 and 24 percent during the fiscal year FY18, according to the Pakistan Bureau of Statistics.
“Every $5 per barrel surge in oil prices weakens Pakistan’s balance of payments by $1.2bn on an annual basis, assuming that the prices remain high throughout the year,” Samiullah Tariq, Director Research at the Arif Habib Limited, a brokerage firm, told Arab News on Monday.
“Higher oil prices will lead to higher inflation and negative balance of payments. If the global uncertainty persists it will also negatively affect us since such circumstances usually impede financial inflows. It would also make things difficult for Eurobond and Sukuk issuance,” he added.
Economists say that such attacks can thwart Pakistan’s efforts to reduce its import bill, adding to its current account deficit once again.
“The price spike that is expected to stay at around $70 per barrel will increase our import bill and trade deficit that recently declined. This will once again begin to erode our foreign reserves,” Dr. Ayub Mehar, a senior economist, told Arab News.
“The government must take remedial measures from now on,” he added.
“The increasing crude prices will exert pressure on an already indebted nation,” GA Sabri, former secretary petroleum, told Arab News. “We are facing a financial crisis and this attack can further deepen our losses. The losses can be unmanageable because we mainly import oil from Saudi Arabia. The recent developments are very serious and disturbing and can have a trickle down impact on the overall economy.”
Experts suggest exploration of domestic energy resources. They also implore the government to find new oil import destinations to mitigate risks to Pakistan’s energy security.
“This attack on the Aramco installations show that in future such facilities would be subjected to war targets in the regional flare up. This will impact your strategic facilities,” Dr. Maria Sultan, Director General of South Asian Strategic Stability Institute University, told Arab News.
“I am constantly calling for exploration of domestic oil and gas and other minerals because the country is full of these natural energy resources,” Sabri suggested. “We must also honor our commitments and start long term TAPI [Turkmenistan-Afghanistan-Pakistan-India] gas pipeline project,” he added.
Pakistan looking at 'unmanageable' economic catastrophe post Aramco attacks – experts
Pakistan looking at 'unmanageable' economic catastrophe post Aramco attacks – experts
- Every $5 per barrel price increase would jack up Pakistan’s import bill by $1.2 billion, analysts warn
- Houthis attack on oil facilities removes 5.7 mbd from global supply, trigger price spike
Pakistani PM hopes Sharaa assuming president’s office will bring peace to Syria
- Al-Sharaa was declared president for a transitional phase on Wednesday, less than two months after he led a campaign that toppled Bashar Assad
- Sharaa said he will form an inclusive transitional government that will build institutions and run the country until it can hold free and fair elections
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Saturday welcomed Ahmed Al-Sharaa’s assumption of the office of the Syrian president, hoping it would lead to peace in Syria.
Sharaa was declared president for a transitional phase on Wednesday, less than two months after he led a campaign that toppled Bashar Assad.
He was also empowered to form a temporary legislative council for a transitional period and the Syrian constitution was suspended.
“We welcome Mr. Ahmed Al-Sharaa’s assumption of office as President of the Syrian Arab Republic during the transitional phase and hope that the new leadership will be able to bring peace, progress and prosperity to the brotherly people of Syria,” Sharif said on X.
On Thursday, Sharaa said he will form an inclusive transitional government representing diverse communities that will build institutions and run the country until it can hold free and fair elections.
He was addressing the nation in his first speech since being appointed president by the military command that ousted Assad in a lightning offensive last year.
The group that led the offensive, Hayat Tahrir Al-Sham, has since set up an interim government that has welcomed a steady stream of senior Western and Arab diplomatic delegations keen to help stabilize the country after 13 years of civil war.
Pakistan army chief vows retaliation after militant attack kills 18 troops in Balochistan
- Pakistani forces suffered casualties when they engaged militants who had erected barricades on a key highway in Kalat district late Friday
- Balochistan has for years been the scene of an insurgency, with several separatist groups staging attacks and targeting mainly security forces
ISLAMABAD: Pakistan’s army chief, General Asim Munir, on Saturday visited the southwestern Balochistan province after militants killed 18 Pakistani soldiers in the restive region, promising to hunt down the perpetrators of attacks on Pakistani security forces.
General Munir was given a comprehensive brief on the prevailing security situation in Balochistan during his visit, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
He offered funeral prayers for the deceased soldiers and later inquired after the injured ones at the Combined Military Hospital in Balochistan’s provincial capital of Quetta.
“Those who are acting as terrorist proxies of their foreign masters who have mastered the art of manifesting double standards of hunting with the hound and running with the hare are well known to us. No matter what these so called ‘frenemies’ may do, you will surely be defeated by the resilience of our proud nation and its Armed Forces,” the army chief was quoted as saying by the ISPR.
“For the defense of our motherland and its people, we will definitely retaliate and ‘hunt you down,’ whenever required and wherever you may be.”
Pakistani forces suffered the casualties when they engaged militants who had erected barricades on a key highway in Balochistan’s Kalat district late on Friday night. The banned Baloch Liberation Army (BLA), one of the most prominent separatist groups operating in the southwestern province, claimed responsibility for the incident.
The fighting continued overnight into Saturday morning and the military said it had killed at least 23 militants in subsequent clearance operations.
Balochistan has for years been the scene of an insurgency, with several separatist groups staging attacks and targeting mainly security forces in their quest for independence. The separatists accuse Islamabad of exploiting the province’s natural resources. Successive Pakistani governments deny the allegations and say they have prioritized Balochistan’s development through investments in health, education and infrastructure projects.
In the past, the BLA has carried out major attacks in Balochistan and other parts of Pakistan, targeting security forces, ethnic Punjabis whom it considers “outsiders” in Balochistan, and Chinese interests and nationals.
More than 50 people, including security forces, were killed in August last year in a string of assaults in Balochistan that were claimed by the BLA. Last month, dozens of fighters of the separatist outfit wrested control of a small town in Khuzdar from the Levies paramilitary forces. Pakistani authorities had regained the town after hours of efforts.
Pakistan, Azerbaijan aim to strengthen partnership in infrastructure, energy and trade
- The development comes as Islamabad seeks closer ties, especially in trade and investment, with Central Asian states to overcome an economic crisis
- In July last year, Azerbaijan President Ilham Aliyev visited Pakistan and announced the two nations were working to increase bilateral trade to $2 billion
ISLAMABAD: Pakistan and Azerbaijan have resolved to strengthen their partnership in infrastructure, energy and trade sectors, the Pakistani government said on Saturday, following high-level meetings between officials of the two countries in Baku.
Pakistan’s Minister of Investment, Privatization and Communications Abdul Aleem Khan met with Azerbaijan Prime Minister Ali Asadov and discussed with him avenues for enhancing bilateral cooperation, according to the Press Information Department (PID) of the Pakistani government.
The discussions focused on expanding economic collaboration, with Khan highlighting vast investment opportunities in Pakistan, particularly in privatization of state-owned enterprises (SOEs). He also invited Azerbaijan to invest in Pakistan’s motorway and other key sectors.
During the visit, the Pakistani delegation engaged in discussions with Azerbaijan’s Energy Minister Parviz Shahbazov, Transport Minister Rashad Nabiyev, Deputy Minister of Economy Samad Bashiri and President of the State Oil Company of the Republic of Azerbaijan (SOCAR), Rovshan Najaf.
“The meetings explored opportunities for mutual investment in various sectors, including infrastructure development, energy, and trade,” the PID said in a statement. “Additionally, discussions covered the privatization of government-run enterprises and other key investment initiatives.”
The meetings were also attended by Lt. Gen. Sarfaraz Ahmed, coordinator of Pakistan’s Special Investment Facilitation Council (SIFC), Federal Secretary Petroleum Momin Ali Agha and other senior officials.
Welcoming the Pakistani delegation, PM Asadov praised Pakistan’s recent economic advancements and assured Azerbaijan’s support in increasing bilateral trade and investment.
The development comes amid Islamabad’s efforts to forge closer ties, especially in trade and investment, with Central Asian states as Pakistan treads a tricky path to economic recovery. There have been a series of visits by Azerbaijani officials to Pakistan in recent months, with Azerbaijan President Ilham Aliyev visiting Pakistan in July 2024 and announcing the two nations were working to increase bilateral trade to $2 billion.
“The visit also included a review of progress on various Memorandums of Understanding (MoUs) between Pakistan and Azerbaijan. Special discussions were held on developing trade corridors, rail networks, and other communication links between Pakistan and Central Asian states to enhance regional connectivity,” the PID said.
“This visit marks another step toward deepening economic and strategic ties between Pakistan and Azerbaijan, paving the way for expanded cooperation in trade, investment, and infrastructure development.”
Last month, Pakistan’s Defense Minister Khawaja Asif said Islamabad and Baku were in the process of finalizing an agreement to enhance security ties through cooperation in arms trade, defense infrastructure and intelligence sharing.
In Dec. 2024, Pakistan waived customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement. The agreement aimed to boost economic cooperation by reducing tariffs on goods like Pakistan’s sports equipment, leather, and pharmaceuticals and Azerbaijan’s oil and gas products.
Pakistan Navy inducts another offshore patrol vessel into its fleet to enhance maritime security
- This is the fourth Yamama ship to be inducted in Pakistan Navy fleet, which was constructed and commissioned at Damen Shipyards in Romania
- The multipurpose, highly agile medium-sized ship is equipped with a terminal defense system, and anti-ship and anti-air warfare capabilities
ISLAMABAD: Pakistan Navy on Saturday inducted another offshore patrol vessel, PNS Yamama, into its fleet with an aim to enhance security of the country’s maritime frontiers, its Directorate General Public Relations (DGPR) said.
This is the fourth Yamama ship of the Offshore Patrol Vessel (OPV) Batch II to be inducted in Pakistan Navy fleet, which was constructed and commissioned at Damen Shipyards, Romania.
The ship was inducted at a ceremony at Pakistan Navy Dockyard in the southern Pakistani port city of Karachi, with Pakistan Fleet Commander Rear Admiral Abdul Munib being the Chief Guest.
“Addition of PNS YAMAMA in PN fleet will significantly enhance Pakistan Navy’s capability of safeguarding maritime frontiers of Pakistan,” Rear Admiral Munib was quoted as saying by the DGPR.
“Induction of such multipurpose state-of-the-art platforms will provide vital support to ongoing PN maritime security patrol in Indian Ocean.”
The multipurpose, highly agile medium-sized offshore patrol vessel is equipped with self-protection and terminal defense system, state-of-the-art electronic warfare, and anti-ship and anti-air warfare capabilities, according to the DGPR.
Additionally, it is capable of embarking a multirole helicopter and can operate independently or as part of a taskforce for extended durations to execute a variety of missions.
In June 2024, Pakistan Navy inducted two warships, Babur and Hunain, into its fleet, days after it assumed command of a multinational taskforce, CTF-150, responsible for ensuring maritime security in the southeastern waters of the Middle East, operating in the Arabian Sea, Gulf of Oman and Gulf of Aden.
Besides inducting various warships in its fleet, Pakistan Navy has held several joint exercises with friendly nations in recent years in a bid to enhance joint operational capabilities and strengthen regional security.
Pakistan Navy has also invited over 100 countries to the AMAN maritime exercises, scheduled to be held on Feb. 7-11, with the event including a dialogue for senior naval leaders for the first time. The exercise, held every two years, involves ships, aircraft and special operation forces.
Degradation of Pakistani wetlands threatening diverse species, WWF-Pakistan says
- Wetlands are defined as both freshwater and coastal and marine ecosystems that are vital to human well-being and sustainable development
- WWF-Pakistan calls for protecting these wetlands that offer essential ecosystem services, including water filtration, carbon storage and flood control
KARACHI: Degradation of wetlands in Pakistan have put the survival of diverse species like the Indus River dolphin, freshwater turtles and migratory birds at risk, the World Wildlife Fund-Pakistan said on Saturday.
Wetlands are defined as both freshwater and coastal and marine ecosystems, and include all lakes and rivers, swamps, marshes, peatlands, estuaries, deltas, tidal flats, mangroves, coral reefs, and underground aquifers.
These areas are vital to human well-being and sustainable development but despite their critical role, wetlands are among the ecosystems with the highest rates of decline, loss and degradation, according to environmental experts.
Pakistan is home to more than 240 significant wetlands, covering an estimated 10 percent of the country’s land. These wetlands offer essential ecosystem services, including water filtration, carbon storage, flood control, and habitat for countless species.
“The health of wetlands has been severely impacted by water stress, untreated industrial waste, land reclamation, and agricultural runoff,” WWF-Pakistan said, underscoring the need to protect and restore Pakistan’s wetlands.
“These factors continue to shrink wetland areas, diminishing their ecological value.”
Muhammad Jamshed Iqbal Chaudhry, a WWF-Pakistan senior manager for research and conservation, called wetlands a “lifeline for millions of Pakistanis,” especially communities relying on fisheries, agriculture, and tourism.
Pakistani wetlands like Keenjhar Lake, Haleji Lake, Chashma Barrage and Jiwani Coastal Wetlands are critical breeding and feeding grounds for migratory birds, including white-headed ducks, flamingos, cranes, and the critically endangered Siberian crane, according to the WWF-Pakistan official. Wetlands also serve as nature’s buffer against climate change, absorbing excess floodwaters and reducing the impact of extreme weather events.
“Conserving wetlands is, therefore, not just an environmental imperative but a social and economic necessity,” Chaudhry urged.
WWF-Pakistan said it was actively working to conserve and restore wetlands through various initiatives, including the implementation of community-based conservation projects in the Indus Delta, Punjab’s wetlands, and Balochistan’s coastal ecosystems. The initiatives demonstrate the use of nature-based solutions (NbS) to address the challenges to wetlands.
It has improved engagement with policymakers to strengthen wetland protection laws and promote sustainable water management practices, according to the statement. Various initiatives are underway to train local communities in sustainable fishing, eco-tourism, and alternative livelihoods to reduce pressure on wetland resources.
WWF-Pakistan urged government agencies, civil society, businesses, and local communities to take collective action for the conservation of wetlands as they support local livelihoods and offer ecosystem services.
“Simple actions such as reducing water wastage, preventing plastic pollution, promoting sustainable agriculture, and participating in wetland clean-up activities can contribute to preserving these invaluable ecosystems,” it said.
