KARACHI: Pakistan is in talks with Saudi Arabia, the United Arab Emirates and China to extend the tenure of their $7.7 billion short term deposits, a move that will ensure long term forex stability of the South Asian nation, Dr. Abdul Hafeez Shaikh, the prime minister’s adviser on finance and revenue, told Arab News in an exclusive interview.
“Last year, when Pakistan was going through the worst balance of payment (BoP) crisis in our history, we were provided financial support by our brotherly countries,” Shaikh said on Monday.
Pakistan’s friendly countries were approached by the government of Prime Minister Imran Khan soon after assuming the office in 2018 as the country’s current account deficit reached $20 billion.
Responding to Pakistan’s call, Saudi Arabia deposited $3 billion while the UAE and China deposited $2 billion and $2.2 billion, respectively. Qatar also contributed by depositing $0.5 billion with Pakistan’s central bank.
“The $7.7 billion secured from the bilateral arrangements provided the much needed balance of payment support to Pakistan,” he added.
“These are short term deposits placed with the central bank in Pakistan at concessional rates,” the PM’s adviser said, adding: “We are in talks with our development partners to move these deposits toward longer tenors.”
Economists say these deposits provided a lifeline to the country’s economy that had higher imports and lower exports.
“The balance of payment support oxygenated the country’s economy that was much need for its survival. The support helped Pakistan not to default on its foreign payment obligations,” Muzzamil Aslam, senior economist, who is familiar with the developments, told Arab News.
Pakistan’s current account deficit (CAD) was $20 billion in 2018 which declined to $13.43 billion during the last fiscal year. Its further decline is also projected for the current fiscal year (2019-20).
“CAD is projected to decline to $4b [or 1.7 percent of the GDP] in the current fiscal year, compared to $20b when the government took office in 2018,” Shaikh said.
The major balance of payment support came from Saudi Arabia which provided $6 billion in financial assistance to Pakistan, with $3 billion in foreign currency support and $3 billion worth of oil on deferred payments. The agreement was signed during the visit of Prime Minister Imran Khan to the Kingdom in October 2018.
Economists say when Pakistan approached the International Monetary Fund (IMF) for the bailout program, the United States had expressed concerns that the money could be used to pay off debts, especially those taken from China.
“After we started getting the IMF assistance, the fund imposed a condition during the first review of the program to roll over these loans instead of paying them back. This was because the US had misgivings that Pakistan will pay the Chinese debt with the IMF money,” Aslam said.
However, the IMF acknowledged in April that “Bilateral creditors have maintained their exposure in line with debt sustainability objectives of the EFF [Extended Fund Facility].”
China maintained their exposure by renewing $2 billion bilateral deposits in March. Saudi Arabia also refinanced $3 billion BoP support loans that matured in November-January, while the UAE rolled over $1 billion BoP support loans in March. The oil facility with Saudi Arabia – worth $3.2 billion – was activated in August 2019 and has also been providing support to the balance of payments, according to the IMF documents.
Instead of frequent rollovers now, the government wants to convert these short term deposits into long tenors. “The IMF is behind this strategy,” Aslam informed. “The conversion will impact the status of these deposits in a way that loan rates will be decided in line with the international benchmark which may be LIBOR+2-3 percent.”
Economists say the conversion of these deposits will positively impact the economy of the country since Pakistan will get some breathing space and an opportunity to improve its overall financial condition. “It will provide long term forex stability. Otherwise, we will be under pressure to pay back $7.7 billion,” Aslam said.
Pakistan seeks Arab creditors, China to convert $7.7 bn into long term loans — Hafeez Shaikh
https://arab.news/ze345
Pakistan seeks Arab creditors, China to convert $7.7 bn into long term loans — Hafeez Shaikh
- Pakistan received $3 billion BoP support from Saudi Arabia, $2 billion from the UAE and $2.2 from China
- Conversion of short term deposit will provide long term financial stability to the country, say experts
Pakistan urges religious devotees to postpone travel to Iran, Iraq amid regional tensions
- A senior government official says currently there are an estimated 5,000 Zaireen in Iran
- Israel launched strikes against Iranian military and nuclear facilities earlier in the day
ISLAMABAD: Pakistan on Friday advised its citizens planning religious travel to Iran and Iraq to reconsider their plans, citing security concerns after Israeli strikes on Iranian military and nuclear facilities earlier in the day.
The advisory mentions Pakistani “Zaireen,” or Shi’ite Muslim pilgrims who travel to Iran and Iraq to visit sacred religious sites, particularly in Mashhad, Qom, Najaf and Karbala.
The region has seen heightened tensions following Israeli attacks on key installations in Iran, prompting fears of broader instability.
“In view of the evolving security situation in the region, the Zaireen from Pakistan are advised to reconsider their travel plans to Iran and Iraq,” the foreign office said in a brief statement issued in Islamabad.
According to a senior government official who spoke on condition of anonymity, the number of Zaireen traveling to Iran fluctuates, and most do not contact the Pakistani diplomatic missions.
“Currently, there are an estimated 5,000 Zaireen in Iran,” he said, adding that Pakistan’s embassy in Tehran and its consulates remain available to assist citizens.
“Any Pakistani requiring guidance or support is encouraged to contact our relevant diplomatic missions, which will, as always, provide necessary assistance and facilitate their return to Pakistan,” the official added.
While no evacuation plans have been announced, the authorities say they are closely monitoring the regional situation.
Pakistan’s Babar Azam to make Big Bash debut with Sydney Sixers in Australia
- Former Pakistan skipper says playing first-ever BBL match will be ‘something special’
- BBL is a Twenty20 cricket competition that features Australia’s eight city-based teams
ISLAMABAD: Former Pakistan captain Babar Azam has been picked by Sydney Sixers to debut in the upcoming 15th season of Australia’s Big Bash League (BBL), the club announced on Friday.
The BBL is a professional Twenty20 cricket competition in Australia that features eight city-based teams.
Launched in 2011, the league is held during the summer and features a mix of local and international players.
“The SCG [Sydney Cricket Ground] has been home to many legends. Now it’s home to the [king]. Welcome, Babar Azam,” the Sydney Sixers said in a post on X.
Azam said he was “super pumped” to join the team, highlighting that his BBL debut “will be something special.”
“Cannot wait to share the dressing room with my favorite batter Steve Smith and world class bowler Josh Hazlewood,” he was quoted saying in a video posted by BBL on X.
“So really excited and looking forward to getting over there and meeting my craziest cricket fans.”
Azam has featured in several major franchise leagues around the world.
Apart from competing in the Pakistan Super League, Azam has played for Guyana Amazon Warriors in the Caribbean Premier League, Sylhet Sixers and Rangpur Riders in the Bangladesh Premier League, and Somerset in England’s T20 Blast.
Pakistan prepares for Joint Ministerial Commission with UAE to deepen trade ties
- Deputy Prime Minister Ishaq Dar holds a preparatory meeting ahead of the 12th JMC session in Abu Dhabi
- The bilateral forum will help advance key initiatives, explore new avenue for Pakistan-UAE cooperation
ISLAMABAD: Pakistan on Friday held a preparatory meeting for the upcoming 12th session of its Joint Ministerial Commission (JMC) meeting with the United Arab Emirates (UAE), said the state media, as the government seeks to strengthen economic and trade relations with the Gulf nation.
The JMC is the primary bilateral platform for institutionalized cooperation between Pakistan and the UAE, focusing on trade, investment, energy, labor and consular matters. After remaining inactive for several years, it was revived recently to accelerate high-level economic engagement.
The preparatory meeting, according to Radio Pakistan, was presided over by Deputy Prime Minister Ishaq Dar, who also serves as the foreign minister of the country.
“Deputy Prime Minister Ishaq Dar has reiterated Pakistan’s firm commitment to strengthening Pak-UAE economic and trade relations,” the report said.
“He made the remarks while chairing a high-level meeting in Islamabad on Friday to review preparations for the upcoming 12th session of the Pakistan-UAE Joint Ministerial Commission (JMC) in Abu Dhabi,” it added.
Radio Pakistan said discussions during the meeting focused on advancing key bilateral initiatives, formalizing collaboration in existing sectors, exploring new avenues for cooperation and attracting mutually beneficial UAE investments in priority areas.
The UAE is Pakistan’s third-largest trading partner. Its proximity to the South Asian state helps minimize export costs, particularly for perishable goods.
Pakistan has increasingly sought stronger economic partnerships with Gulf nations to strengthen its economy amid improving macroeconomic indicators. The UAE has supported Pakistan during recent economic crises, including by maintaining deposits with the State Bank of Pakistan and helping Islamabad unlock critical IMF loan tranches.
So far, the government has not officially announced any date for the 12th JMC session, though it is expected to help expand bilateral economic cooperation.
WHO says Pakistan receives less than half of 5 million blood donations it needs annually
- About 1.9 million of Pakistan’s 2.3 million annual blood donations come from family or replacement donors, says WHO
- WHO says voluntary blood donations are considered safest, most sustainable as such donors less likely to transmit diseases
ISLAMABAD: Pakistan receives less than half of the five million blood donations it needs each year, the World Health Organization (WHO) said on Friday, highlighting critical gaps in the country’s health care system as it vowed to promote voluntary donations.
About 1.9 million of Pakistan’s 2.3 million annual blood donations come from family or replacement donors, while only 18 percent are voluntary and unpaid, according to official data cited by the WHO.
This reliance often delays treatment and poses risks for patients with chronic conditions such as thalassemia, hemophilia and cancer, who require regular transfusions.
“Medical centers in Pakistan need over 5 million blood donations annually and will require 5.6 million by 2030 but they are currently receiving only approximately 2.3 million donations per year,” the WHO said in a statement released on World Blood Donor Day.
The WHO and Pakistan Institute of Medical Sciences held a blood donation drive in which around 150 volunteers participated under the theme “Give blood, give hope – together we save lives.”
As per the WHO, voluntary blood donations are considered the safest and most sustainable as such donors are less likely to transmit infectious diseases, it added. WHO’s representative in Pakistan, Dr. Dapeng Luo, highlighted that each blood donation could save up to three lives.
“Every patient who needs blood should be able to receive it,” he said. “WHO will continue to work with Pakistan to strengthen a blood service that promotes voluntary donations and gives patients access to safe blood and blood products in sufficient quantity.”
Pakistan’s health ministry and the WHO urged the public to donate blood voluntarily to help address a shortage that is straining hospitals’ ability to save lives.
Pakistan’s Director General of Health, Shabana Saleem, welcomed the technical support from the WHO, saying it would lead to improved screening and testing.
“Giving blood is giving life, and together we can do this,” she said. “We are in the phase of revitalizing the Regional Blood Transfusion Center.”
The WHO concluded that it was supporting Pakistan in strengthening blood banks and promoting standardized screening methods to ensure safe and sufficient blood supplies for all.
Pakistani films attracted ‘biggest’ Eid collections in 5 years, says largest cinema chain
- Pakistani films ‘Love Guru’ and ‘Deemak’ led box office collections surge this Eid Al-Adha, says Cinepax Cinemas sales head
- Love Guru’s team says flick generated $676,500 during first five days, Deemak distributor says movie collected $142,000
KARACHI: Pakistani films that released on the Eid Al-Adha last week attracted the highest Eid box office collections in five years, the sales and marketing head of the country’s largest cinema chain said on Friday.
Pakistani romantic comedy ‘Love Guru,’ starring acting powerhouses Humayun Saeed and Mahira Khan released in cinemas worldwide on Eid-ul-Adha. The other prominent Pakistani movie that released in theaters across the world was “Deemak,” a horror movie with A-list actors Faysal Qureshi, Sonya Hussyn and Samina Peerzada starring in lead roles.
As per official figures released by Love Guru, the Pakistani film collected Rs 12.8 crores [$457,143] in Pakistan during the first three days of Eid Al-Adha, making it the biggest ever Eid weekend opener in the country.
“If we look at Eid [film] business since Covid, we did the biggest business this year [on Eid],” Adnan Ali Khan, the sales and marketing head of Cinepax Cinemas, told Arab News. “Meaning highest in five years.”
He said this does not include The Legend of Maula Jatt film, which enjoyed record-breaking box office business but was not released on Eid.
“Love Guru got 50 percent of the shows and that is why it generated huge numbers,” Khan explained, adding that Deemak was the second-best performing film on Eid while Hollywood flick “From the World of John Wick: Ballerina” secured the third-highest collections.
The film’s official team announced that its international box office collections for the opening weekend surged to Rs15.4 crores [$546,000]. This means the film raked in a total of Rs28.2 crores [$999,186] in the first three days of the release.
After the first five days of their release, Love Guru’s team said it collected Rs19.10 crores [$676,500] locally while Deemak distributor Nadeem Mandviwalla said the horror flick generated around Rs4 crores [$142,000] at the box office.
Mandviwalla said the film is expected to secure over Rs7 crores [$248,000] in box office collections by the end of this week.
“It is a very encouraging figure for Deemak,” Mandviwalla said.
However, there have been speculations around the authenticity of these figures, particularly at the local box office. There hasn’t been an official detailed division of box office collections in cinemas across Pakistan.
Pakistani film critic Kamran Jawaid, however, brushed aside claims that Love Guru’s box office collections were fabricated.
‘ONLY FOR THE DELUDED’
“When the audience comes out of cinemas in droves at seven in the morning— and that too from multiple shows— then countering claims about fabricated figures is only for the deluded,” Jawaid told Arab News.
He said the high footfall in cinemas across the country puts to rest the opinion that attendances at cinemas are too low due to expensive ticket prices or that audiences no longer harbor interest in Pakistani movie.
“One just has to make movies that people are willing to shell money out on, whether it is Mission: Impossible: The Final Reckoning, which also ran shows till morning two weeks before Eid, or Love Guru,” Jawaid said.
The Pakistani film critic broke down the numbers based on the number of screens and seating capacity of Pakistani cinemas.
“Although not big, counting all 91 screens, Pakistan’s total seating capacity is a little above 21,000, which equates to 21 million in ticket sales per show/slot, with an average ticket price of a thousand,” he said.
“An average of four shows per day leads to 84 million in gross income. Depending on the number of screens a film like Love Guru gets — which is roughly between 30-40 percent of the country — per-day estimates range between 25 to 33 million in gross receipts,” Jawaid explained.
“Given that the tickets are selling hot, one cannot refute the legitimacy of the quoted figures.”
Khan said the movies garnered the highest numbers at its cinemas in Packages Mall in Lahore, followed by Jinnah Park in Rawalpindi.
“We are running late night shows every day,” Khan said, adding that the coming weekend was also expected to feature “packed” theaters as the cinemas have bookings in advance.
“We need four Pakistani movies like Love Guru every year,” he said. “However, Deemak has started gaining momentum now alongside Love Guru.”
Jawaid, however, looked toward the future of Pakistani cinema.
“Pakistan’s cinema needs one Love Guru a month to revive audience’s interest,” he said.
