KARACHI: Saudi Arabia remains the main source of Pakistan’s remittances despite global business shutdowns amid the coronavirus pandemic, central bank data showed on Monday.
Overseas Pakistani workers sent about $18.78 billion back home between July 2019 and April 2020, 5.5 percent more than in the previous fiscal year, with $4.4 billion remitted from Saudi Arabia alone, according to a statement issued by the State Bank of Pakistan (SBP).
Contrary to the expectations of most economists that money inflows would decline as many workers have been furloughed and repatriated amid the pandemic, $451.4 million was sent back home from Saudi Araba by Pakistani workers — 5.4 percent more than last year and only 0.2 percent less than in March 2020, SBP data showed.
Total remittances the country received in April amounted to $1.79 billion, 5.5 percent less than in the previous month.
The US emerged as Pakistan’s second largest remittance contributor after Saudi Arabia, with inflows of $401.9 million in April, followed by the United Arab Emirates with $353.8 million, and the United Kingdom with $226.6 million.
According to experts, there has been an increase in the use of official channels for money transfers in the wake of international flight suspensions and movement restrictions.
“As the airline industry is not operational, people who used to send money through personal contacts have resorted to the official channels,” Muzamil Aslam, senior financial expert, told Arab News.
But since layoffs are still expected to affect overseas Pakistanis, a government intervention may be required to further discourage unofficial transfers to sustain money inflows from abroad.
“Sustaining remittances with expected job losses abroad requires an unprecedented intervention to bring between $5 billion and $10 billion of hawala or hundi money through legal channels,” said Dr. Khaqan Hassan Najeeb, former adviser at the Ministry of Finance.
Hawala and hundi are informal ways of transferring money across borders.
Najeeb told Arab News that incentive programs such as lotteries could help put an end to illegal money transfers.
According to the Ministry of Finance, from July withholding tax exemption will be introduced for incoming remittances, while National Remittance Loyalty Program will be launched in September in collaboration with major commercial banks and government agencies to incentivize remitters.
Middle Eastern countries are major job markets for Pakistani workers. Since the beginning of this year alone, the region has provided employment to more than 171,500 Pakistanis — nearly 105,000 in Saudi Arabia alone, according to the Bureau of Emigration and Overseas Employment.
Concerns are rising, however, whether workers will still be able to seek overseas jobs, as labor markets, also in the Middle East, have been upended by the coronavirus outbreak.
“More than 100,000 visas were issued prior to COVID-19. Some 65,000 people were ready to fly, but now their future is uncertain,” said Ikram Qureshi of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
“Around 70,000 workers have already registered themselves for repatriation from the Middle east region,” he added.
Pakistan's remittances from Saudi Arabia remain high despite economy slowdown
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Pakistan's remittances from Saudi Arabia remain high despite economy slowdown
- Remittances from Saudi Arabia in April were 5.4 higher than last year
- Inflows through official channels are on the rise amid international movement restrictions
Pakistan football team to travel to Saudi Arabia on Thursday for AFC Asian Cup qualifier camp
- Pakistan will face Syria in AFC Asian Cup qualifier fixture on Mar. 25 in Saudi Arabia's Al-Ahsa
- Green shirts to resume training camp in Saudi Arabia under Head Coach Stephen Constantine
ISLAMABAD: Pakistan's national football team will travel to Saudi Arabia tomorrow, Thursday, where they will resume training for the upcoming AFC Asian Cup qualifier fixture against Syria, the Pakistan Football Federation (PFF) said in a statement.
Pakistan will kick off their AFC Asian Cup 2027 qualification campaign against Syria on Mar. 25 at the Prince Abdullah bin Jalawi Stadium in Al-Ahsa, Saudi Arabia.
The green shirts concluded their training session in the eastern city of Lahore on Wednesday night, the PFF said.
"The team is set to depart for Saudi Arabia tomorrow night, where they will continue their training under the guidance of Head Coach Stephen Constantine," the PFF said.
Earlier this month, Pakistan reappointed Constantine, who previously served as the country's head coach from late 2023 until mid-2024, as head coach for the Syria fixture.
Pakistan's inclusion in the qualifier was made possible after the Fédération Internationale de Football Association (FIFA) lifted its international suspension against the country earlier this month.
FIFA hit Pakistan on Feb. 6 with a third international suspension in less than eight years after the federation rejected its electoral reforms. Following the suspension, the PFF unanimously approved FIFA's proposed constitutional amendments in an extraordinary meeting in Lahore this month.
Pakistan are placed in Group E of the AFC Asian Cup qualifiers alongside Syria, Afghanistan and Myanmar.
PAKISTAN PROBABLES
Goal-Keepers: Yousuf Butt, Saqib Hanif, Abdul Basit and Adam Khan
Defenders: Abdullah Iqbal, Easah Suliman, Haseeb Khan, Junaid Shah, Mamoon Moosa, Mohammad Fazal, Abdul Rehman and Waqar Ihtisam
Midfielders: Alamgir Ghazi, Ali Uzair, Ali Zafar, Muhammad Umar Hayat, Rahis Nabi, Toqeer ul Hassan, Umair Ali and Moin Ahmed
Forwards: Fareedullah, Harun Hamid, Imran Kayani, Mckeal Abdullah, Abdul Samad, Shayak Dost and Muhammad Adeel Younas
Pakistan, Russia conduct joint naval exercise in North Arabian Sea
- Both navies hold ‘Arabian Monsoon-VI’ exercise in Arabian Sea to enhance interoperability
- Russian navy delegates meet Pakistan Navy officials, pay tribute to Pakistan founder Jinnah
KARACHI: Pakistani and Russian navies conducted a bilateral naval exercise named “Arabian Monsoon-VI” in the North Arabian Sea on Wednesday, the Pakistan Navy said in a statement, in their bid to counter maritime security threats and enhance interoperability.
Pakistan and Russia, once Cold War rivals, have strengthened their relations through increased dialogue, trade and cooperation in energy and defense. Regular port visits and joint exercises between the Pakistan Navy and the Russian Navy have deepened bilateral ties, enhanced naval collaboration and fostered mutual trust.
“Various assets of Pakistan Navy, including a Destroyer, an Offshore Patrol Vessel, a Fast Attack Craft (Missile), a Maritime Patrol Aircraft and a UAV, participated in the exercise alongside Russian Federation Navy ships,” the Directorate General Public Relations (DGPR) of the Pakistan Navy said.
Multi-faceted maritime warfare serials and a coordinated patrol featured in the exercise, which also aimed at enhancing the interoperability of both navies, it added.
The exercise also featured participation from the Pakistan Air Force fighter aircraft.
The Russian navy delegates also called on Pakistan Navy officials and paid tribute to the nation’s founder Muhammad Ali Jinnah, laying a floral wreath at his mausoleum.
“Joint maritime exercises with key naval forces underscore Pakistan Navy’s commitment to maintaining maritime security and ensuring a stable maritime order in the region,” the statement added.
On Mar. 13, the Russian navy flotilla arrived in the southern port city of Karachi where cross-ship visits, harbor drills and table-top discussions between the two sides were conducted.
The Pakistan Navy regularly collaborates with allies and friendly nations, conducting joint military exercises to enhance synergy, promote regional peace and stability, deter piracy, drug trafficking and other illicit maritime activities.
Pakistan stocks hit record high on strong buying from local institutions
- The KSE-100 Index hit a record high of 117,974 points, rising by 973 points
- Overall, 543 million shares were traded, with a turnover of Rs 32 billion
ISLAMABAD: Pakistan’s benchmark stock index (PSX) hit an all-time high on Wednesday, nearing the barrier of 118,000 points due to strong buying activity from local institutions, Topline Securities said.
The KSE-100 Index hit a record high of 117,974 points, rising by 973 points (0.83 percent).
“The market continued its upward momentum, fueled by strong buying activity from local institutions, peaking at 118,244 points during the day,” Topline Securities said in its market review.
The rally was primarily driven by Hub Power Company, Mari Energies, Engro Holdings, Systems Limited and Pakistan Petroleum, which together contributed 551 points to the index. On the other hand, Fauji Fertilizer Company, Engro Fertilizer, and Pakistan Oilfields exerted downward pressure, pulling the index down by 54 points.
“Overall, 543 million shares were traded, with a turnover of Rs 32 billion. Pakistan International Bulk Terminal topped the volume chart with 52 million shares traded,” Topline added.
Mohammed Sohail, a chief executive at Topline Securities, attributed the bull run to “expectations that the government will agree with banks to resolve old circular debt issues that will help listed energy companies.”
In Pakistan, “circular debt” refers to a cascading cycle of unpaid liabilities within the energy sector, where power distribution companies (DISCOs) fail to pay the Central Power Purchasing Authority-Guarantee (CPPA-G), which in turn cannot pay power generation companies (GENCOs), and so on.
The government last week announced it had reached an agreement with banks to extend PHL, a state-owned entity, Rs1.25 trillion in financing at a favorable floating interest rate of Kibor minus 0.90pc per annum.
The move was described as part of a broad strategy to eliminate circular debt in the power sector, which has been fueled by unpaid bills, theft, and distribution losses that have continued to accumulate over the past decade. Circular debt is one of the most contentious issues in Pakistan’s negotiations with the International Monetary Fund (IMF) for the first review of its $7 billion bailout program.
Sana Tawfik, head of research at Arif Habib Limited, said the positive momentum in stocks was continuing since last week.
“Secondly, volume levels have improved since Ramazan’s first week — that is, buying activity is visible,” she said. “On the economic front, there has been significant progress made regarding the IMF deal.”
Pakistan announces three-day Eid Al-Fitr holiday from Mar. 31 to Apr. 2
- Ramadan began in Pakistan on Mar. 2, a day after most other Muslims nations
- Eid Al-Fitr festival at the end of Ramadan is expected to fall on Mar. 31 in Pakistan
ISLAMABAD: The Pakistan government has announced a three-day holiday from Mar. 31 to Apr. 2 on account of the Muslim festival of Eid Al-Fitr, the cabinet division said on Wednesday.
Eid Al-Fitr marks the end of the fasting month of Ramadan for Muslims worldwide. Ramadan began in Pakistan on Mar. 2, a day after most other Muslims nations, and the Eid Al-Fitr festival at end of the holy month is expected to fall on Mar. 31.
Pakistan’s central moon sighting committee, the Ruet-e-Hilal Committee, spots the Shawwal moon and declares Eid dates in advance.
“It is notified that the Prime Minister has been pleased to declare public holidays (Monday to Wednesday) on the occasion of Eid-Al-Fitr,” the notification from the cabinet division said.
Eid Al-Fitr is one of two major Muslim festivals, the other being Eid Al-Adha, which is marked by the slaughtering of animals such as sheep and goats whose meat is shared among family and friends and donated to the poor. This year, Eid Al-Adha is expected to fall on June 6 or 7, marking the culmination of the Hajj pilgrimage.
Pakistani home appliances giant targets $100 million exports in 2 years by tapping US market
- Pak Elektron Limited announced this week it is expanding export operations to US
- PEL says company eyeing expanding its footprint to Saudi Arabia after tapping US market
KARACHI: Pakistani home appliances giant Pak Elektron Limited (PEL) plans to increase its exports to $100 million by the end of 2026, a senior official of the company said on Wednesday, days after announcing it had begun its export operations to the United States.
The Lahore-based manufacturer of home appliances has been one of the most-traded scrips at the Pakistan Stock Exchange (PSX) so far this week. It had the second-most traded stock on Wednesday, registering a 3.2 percent gain and over 36 million volumes.
On Monday the company announced it has expanded its global footprint and will be now exporting its products to the US. PEL’s new American client is Maddox Industrial Transformer LLC, which supplies new and remanufactured power transformers to commercial and industrial clients in the US.
“We are exporting distribution transformers for now and the majority of our exports, say 90 percent, are going to the US,” Nadeem Asghar, the general manager of finance at PEL, told Arab News.
PEL plans to increase its exports up to $50 million this year by December and double the same to $100 million by the end of 2026, Asghar said.
The company’s current exports stand at $3 million, with most of its shipments going to the United Kingdom, Jordan and African countries.
PEL’s stock price appears to have increased steadily in recent days. Its recent announcement of beginning export operations to the US has contributed to a notable increase in its stock price, Sana Tawfik, the head of research at the Karachi-based brokerage firm Arif Habib Ltd., said.
“The stock price has witnessed a gain of 13 percent in the last three days,” Tawfik told Arab News.
The company has already sent its first consignment of distribution transformers to the US on Mar. 13 as part of its business expansion strategy to explore new international markets.
Asghar, meanwhile, said this is the first time that PEL has received a “major order” from the US.
“The majority of our products will be exported to America now,” he said, adding that PEL would keep increasing its exports even beyond $100 million after 2026 as “sky is the limit.”
PEL entered into a strategic partnership last month with Swedish giant Electrolux AB, a global leader in multi-category home appliances brands such as Electrolux, AEG and Frigidaire, to leverage its strength to drive sustainable growth.
In 2024 Electrolux Group had sales of Swedish Krona 136 billion and the company employed 41,000 people worldwide.
After tapping the US market, Asghar said the Pakistani company plans to expand its reach to the Middle East as well, particularly Saudi Arabia.
“We would look to tap the Saudi Arabian market where we see enough demand for our products,” Asghar said, adding that talks with the company’s potential clients from Saudi Arabia were underway. He did not mention their names.
“We will tap all these markets, the UK, Saudi Arabia and others. Our negotiations are ongoing with the Saudi Arabian clients,” Asghar added.
Pakistan’s Prime Minister Shehbaz Sharif has repeatedly said his government is prioritizing exports to ensure sustainable economic growth for the country’s fragile $350 billion economy. Sharif has recently said his government aims to increase Pakistan’s exports to $60 billion in five years.
Pakistan is trying to stabilize its economy through sustainable reforms agreed with the International Monetary Fund (IMF) in exchange for a financial bailout program.
