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
https://arab.news/rbkjp
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 government open to talks with Imran Khan’s party, refuses to allow Nov. 24 protest
- Interior Minister Mohsin Naqvi says negotiations cannot take place amid ‘threats’ from PTI
- He says it is not possible to allow a rally in Islamabad ahead of a Belarusian delegation visit
ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Thursday suggested the government was open to talks with former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party but ruled out allowing its planned protest in Islamabad on November 24, ahead of a high-level visit by a Belarusian delegation.
The PTI has announced a “long march” to Islamabad on November 24, primarily demanding the release of Khan, who has been imprisoned since August last year on charges the party contends are politically motivated.
Additionally, the party’s protest is also meant to raise its voice against alleged rigging in the February 8 general elections while calling for measures to ensure judicial independence, which it believes has been undermined by the 26th constitutional amendment.
On Monday, Islamabad’s district magistrate imposed a two-month-long ban on gatherings of more than five people in the capital, invoking Section 144 of the Code of Criminal Procedure. This provision allows the government to prohibit political assemblies, rallies, demonstrations, sit-ins and other activities for a specified period.
Addressing the media in Islamabad, the interior minister said the government was fully prepared to stop the protest, with Punjab police, Rangers and Frontier Constabulary (FC) troops assisting the Islamabad police in operational duties.
“Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur and Barrister Gohar Khan met Imran Khan twice in the past two days,” Naqvi said, amid speculation that the PTI leaders discussed the option of negotiating with the government. “If they wish to initiate talks [with the government], they should do it. If they want to hold talks, they should tell us.”
The minister added, however, that no talks were possible if the PTI headed to Islamabad and “wielded sticks against us” on November 24.
“Let me tell you one thing: negotiations don’t take place with threats, though I personally feel talks should take place between everyone,” he said.
In response to a question, Naqvi clarified that no talks were currently underway with Khan, who is facing a new case related to violence at a PTI rally that took place in September while the ex-premier was in jail.
Highlighting the upcoming visit of Belarus President Alexander Lukashenko and his 10 cabinet ministers to Pakistan on a three-day visit next week, Naqvi said no permission could be granted for any rally or protest in the federal capital.
He added that a decision on whether to suspend mobile signals in Islamabad ahead of the protest would be finalized by Friday night.
Just a day earlier, it emerged that Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and FC forces in Islamabad since November 7 to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.
Pakistani stocks surge past 97,000 as investor confidence grows on economic reforms
- Analysts attribute rally to strong economic data, rising optimism over government reforms
- Stock market has remained bullish since the government slashed policy rate in November
ISLAMABAD: The Pakistan Stock Exchange (PSX) on Thursday gained 1,700 points, surging past the 97,000 mark during intra-day trading for the first time, with analysts attributing the rally to strong economic data and rising investor optimism over government reforms.
The benchmark KSE-100 index rose by 1,781.94 points, or 1.86 percent, to close at 97,328.39. It touched an unprecedented peak of 97,437.15 during intra-day trading.
Analyst Ahsan Mehanti of Arif Habib Corporation said surging foreign exchange reserves and speculations over the government’s decisions on economic reforms and privatization “played a catalyst role in the record surge at the PSX.”
“Stocks are bullish, led by scrips across the board as investors weigh a drop in government bond yields and robust economic data for current account surplus, remittances, exports and foreign direct investments,” Mehanti told Arab News.
In October, Pakistan’s external current account recorded a surplus of $349 million, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed in the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. Economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
In the past, the country faced a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation. Last year, Pakistan narrowly avoided a sovereign default by clinching a last-minute $3 billion IMF bailout deal.
Saudi mission in Pakistan condemns militant attack that killed 12 soldiers this week
- The embassy extends condolences to victims’ families and the Pakistani people in a statement
- The statement reiterates the kingdom’s position ‘rejecting all forms of violence and terrorism’
ISLAMABAD: The Saudi embassy in Pakistan on Thursday condemned a militant attack on a joint security checkpoint in the northwestern Khyber Pakhtunkhwa province that killed 10 army soldiers and two Frontier Constabulary (FC) personnel, extending condolences to the victims’ families and the Pakistani people.
The attack, which occurred on Tuesday, targeted a joint army and paramilitary check post in the Mali Khel area of Bannu District, where militants detonated an explosive-laden vehicle after troops repelled their attempt to storm the post, according to the Pakistan military. Six militants were killed during the exchange of gunfire that followed.
“The Embassy expresses the Kingdom of Saudi Arabia’s condemnation of the attack on a joint checkpoint in the city of Bannu in the Khyber Pakhtunkhwa province of Pakistan, which resulted in the death and injury of a number of people,” the Saudi diplomatic mission in Islamabad said in a statement.
“The Embassy reiterates the Kingdom’s position rejecting all forms of violence and terrorism,” it added. “The Embassy extends its deepest condolences and sincere sympathy to the families of the victims, the government and the people of Pakistan, and wishes the injured a speedy recovery.”
Pakistan’s northwestern Khyber Pakhtunkhwa province has experienced a resurgence of militant violence in recent months, with a growing number of attacks on security forces and infrastructure despite the country’s efforts to combat militancy.
The region has long been a hotspot for insurgent activity, with militants frequently targeting military and paramilitary personnel.
Saudi Arabia has consistently expressed its support for Pakistan’s fight against extremist violence, emphasizing the importance of international cooperation to tackle militancy and ensure regional stability.
Imran Khan remanded to police for five days in case involving violence at Rawalpindi rally
- Main charges include terrorism, vandalism, destruction of property, attempted murder
- Khan, jailed since August 2023, claims all charges against him are politically motivated
ISLAMABAD: A Pakistani lower court has remanded former prime minister Imran Khan to Rawalpindi police for interrogation for five days in a case pertaining to violence at a rally organized by his Pakistan Tehreek-e-Insaf (PTI) party in September, the party said on Thursday.
Khan was arrested in the rally case on Wednesday night, hours after the Islamabad High Court had granted him bail in another case that has popularly come to be called the new Toshakhana case, filed in July and involving a jewelry set worth over €380,000 gifted to the former first lady by a foreign dignitary when Khan was prime minister from 2018-2022. The couple was accused of undervaluing the gift and buying it at a lesser price from the state repository. Both deny wrongdoing.
Khan has been in jail since August last year following his conviction in four cases, two of which have been suspended, including an original one relating to state gifts, and he was acquitted in the rest.
“An anti-terrorism court granted a five-day physical remand to Rawalpindi police in the first information report (FIR) registered on Sep. 28,” the PTI party said in a statement. “The FIR surfaced last night and Rawalpindi police declared the arrest shortly afterwards.”
The PTI party added that arresting a suspect in a case registered in September right after he was granted bail in another case was an “absolute mockery of the law.”
The police report of the case lists terrorism, attempted murder, vandalism, destruction of public and state property, and interference in government operations as the main charges. It says participants of the PTI rally created unrest, obstructed public access by burning tires and caused difficulties for citizens.
It also charged PTI leaders and supporters with raising anti-government slogans, hurling stones at the police and attacking them with iron rods during the protest. PTI rallygoers damaged several police vehicles and one police officer was injured, the report adds.
Khan was in prison when the Sept. 28 rally took place. The former premier denies any wrongdoing and alleges all the cases registered against him since he was removed from power in 2022 were politically motivated to keep him in jail.
His PTI party is staging a “long march” to the capital city, Islamabad, on Nov. 24, aiming to pressurise the government to release him.
Pakistan urges action after UN labels Israel’s war in Gaza consistent with genocide
- The UN report pointed at high civilian casualties, Israel’s use of starvation as a weapon of war
- Pakistan welcomes the report’s condemnation of Israel’s smear campaign against UN agencies
ISLAMABAD: Pakistan on Thursday urged the international community to hold Israel accountable for its conduct in Gaza, citing a recent United Nations report describing it as consistent with genocide.
The UN Special Committee to Investigate Israeli Practices, established in 1968, released its latest findings on Nov. 14. The report highlights mass civilian casualties and widespread destruction in Gaza, pointing out the intentional imposition of life-threatening conditions on Palestinians, including starvation as a weapon of war.
It also called for immediate international intervention to address the humanitarian crisis and ensure accountability for violations of international law.
“We welcome the last, latest report of the UN Special Committee to Investigate Israeli Practices released last week,” foreign office spokesperson Mumtaz Zahra Baloch said during her weekly news briefing. “The report describes Israel’s warfare practices in Gaza as acts of genocide and documents millions of civilian casualties and grievous conditions intentionally imposed on Palestinians.”
“Pakistan welcomes the committee’s condemnation of the ongoing smear campaign and attacks against UNRWA [United Nations Relief and Works Agency] and the United Nations, and supports its call on all member states to uphold their legal obligations to prevent and stop Israeli violations of international law and holding it accountable,” she added.
The UN report was released in the context of intensified violence in Gaza, where Israeli airstrikes and a crippling blockade have led to a deepening humanitarian catastrophe. According to the document, the systematic targeting of civilian infrastructure and essential supplies has compounded the suffering of millions of Palestinians.
Pakistan has consistently advocated for Palestinian rights and the two-state solution. It also expressed “deep regret” over the United States’ veto of a ceasefire resolution a day earlier, noting that Washington cast the “sole negative vote” among UNSC permanent members.
