KARACHI: Pakistan’s central bank on Thursday further slashed key policy rate by 100 basis points to 7 percent citing continued economic slowdown and increasing downside risk to country’s growth.
The central bank’s move to cut the interest rates comes in an unscheduled meeting of Monetary Policy Committee which has so far slashed the key interest rate by 6.25 percent from 13.25 percent since March 17, 2020.
“The decision reflected the MPC’s (Monetary Policy Committee) view that the inflation outlook has improved further, while the domestic economic slowdown continues and downside risks to growth have increased,” the State Bank of Pakistan (SBP) said.
The SBP said that priority of monetary policy had appropriately shifted toward supporting growth and employment during these challenging times.
“The MPC re-asserted its commitment to supporting households and businesses through the Covid-19 crisis and minimizing damage to the economy. In this context, the MPC felt that from a risk management point of view, a prompt response to downside risks to growth was called for given the improved inflation outlook,” the statement read.
The central bank noted that with approximately Rs. 3.3 trillion worth of loans due to be re-priced by early July 2020, this was an opportune moment to take action from a monetary policy transmission perspective. “In this way, the benefits of interest rate reductions would be passed on in a timely manner to households and businesses.”
The central bank observed that “the moderation of underlying inflation has continued”. The headline inflation declined further to 8.2 percent in May on the back of the recent cut in diesel and petrol prices.
The fiscal budget 2020-21 is also expected to be neutral for inflation as the freeze on government salaries, absence of new taxes, and lower production cost from reduced import duties should offset the decline in subsidies in some sectors. Given the absence of demand-side pressures, average inflation could fall below the previously announced range of 7-9 percent for next fiscal year.
On the real side, the decline in LSM (Large Scale manufacturing) deepened to 41.9 percent (y/y) in April, when lockdowns were still in place. In May, high-frequency indicators of activity such as cement dispatches, automobile sales, food and textile exports, and POL sales also continued to contract, although mostly at a lower rate than in the previous two months.
Looking ahead, the economy is expected to recover gradually in the current fiscal year supported by easing lockdowns, supportive macroeconomic policies and a pick-up in global growth. However, risks are skewed to the downside and the recovery will depend critically on the evolution of the pandemic both in Pakistan and abroad.
Pakistan’s industrialists, who have been calling for reduction in the key interest rates, have welcomed the move of central bank and called for further cuts in the current pandemic.
“There is more space for the interest rate cuts. Our demand is that the rates should be slashed to 5 percent or below”, Sheikh Sultan Rehman, Vice President of Federation of Pakistan Chambers of Commerce and Industry FPCCI, told Arab News. “The coronavirus has exerted massive negative impacts on our economy and the global economy which means the room to cut the rate still exists and the bank should exercise this option”, he added.
The International Monetary Fund (IMF), in its World Economic Outlook (WEO) released on Wednesday, has further downgraded its 2020 global growth forecast to negative 4.9 percent, 1.9 percentage points lower than in April, and projected a more gradual recovery than previously anticipated.
State Bank of Pakistan cuts key policy rate by 100bps to 7%
https://arab.news/njsbt
State Bank of Pakistan cuts key policy rate by 100bps to 7%
- The surprise move comes amid improved inflation outlook and domestic economic slowdown
- Industrialists demand policy rate to be 5% or below given the global economic meltdown
Imran Khan’s wife addresses protest caravan to Islamabad, vows to fight for husband’s release
- This is the first time Bushra Bibi is participating in a protest march and has publicly addressed workers
- Police in Islamabad have confirm over 400 arrests, as authorities have turned CIA building into sub-jail
PESHAWAR/ISLAMABAD: In her first public appearance to motivate party workers, former Prime Minister Imran Khan’s wife addressed a Pakistan Tehreek-e-Insaf (PTI) protest caravan to Islamabad on Monday, vowing not to call off the demonstration until her husband was released from prison.
The march follows Khan’s call for a “final protest” at Islamabad’s D-Chowk, a high-security area in the capital’s Red Zone that houses key government installations. Khan, who has been imprisoned for over a year on charges he claims are politically motivated, has urged supporters nationwide to join the protest.
The largest PTI protest caravan began its journey from Peshawar, led by Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur and accompanied by Bushra Bibi, Khan’s wife, who was released on bail in October after nearly nine months in detention.
KP is ruled by Khan’s party, which is in opposition in the national parliament, and Gandapur is a key PTI leader and a close aide of Khan’s.
“My brothers and children, until Khan does not return to us, we will not end this march,” she said using a public address system amid a crowd of PTI supporters.
“I will stand there till my last breath,” she added. “You people have to stand by me. I will keep standing even if nobody does because this does not concern just my husband but the country and its leader.”
This is the first time Bibi has participated in a protest caravan, making a rare public appearance to energize PTI workers, following her video appeal last week urging party members nationwide to join the march.
Her participation underscores her emerging role as a central figure in PTI’s push to mobilize momentum for Khan’s release.
The PTI caravan resumed its journey this morning after an overnight breather, crossing barriers at Ghazi Barotha and Hazara toll plaza before entering Punjab’s Attock district. Clashes between protesters and police ensued as the march reached the Kati Pahari area, with PTI workers struggling to clear the motorway under tear gas shelling.
“Despite the cold weather, the our party leaders and workers spent the night on the motorway,” PTI leader Shaukat Yousafzai, who is part of the caravan, told to Arab News over the phone. “We will only return from D-Chowk when Imran Khan and other innocent party workers are released from Pakistani prisons.”
The government has sealed Islamabad with shipping containers, citing security concerns over a visit by Belarusian President Aleksandr Lukashenko and a 68-member delegation to discuss bilateral economic cooperation.
Authorities have questioned the timing of the PTI protest and accused its leaders of attempting to destabilize the country’s economic recovery.
However, Yousafzai rejected the government’s criticism, saying that his party announced the protest well before the Belarusian delegation’s arrival.
“We have not blocked the roads,” he added. “The government has blocked the roads, creating a situation like this. The government should have held talks with the PTI instead of blocking the roads.”
Earlier, KP spokesperson Barrister Muhammad Ali Saif hinted at a protracted protest in a statement.
“We are advancing according to our plan and are not in a hurry,” he said. “The government should prepare food supplies for the police for several days because we won’t stop until our demands are met.”
Meanwhile, the Islamabad police confirmed over 400 arrests related to the protest in the past few days, saying the detainees had been held in different police stations.
“So far, no major clashes have been reported today within Islamabad’s jurisdiction,” Jawad Taqi, the police spokesperson, told Arab News. “Police remain vigilant and prepared to uphold law and order in the capital.”
Another police official in the nearby city of Rawalpindi also reported a “calmer situation,” following minor clashes on Saturday near the peripheries of the federal capital.
“Several individuals have been arrested, but the exact number will be confirmed later,” Sajjad Ali, Punjab Police spokesperson in Rawalpindi, said. “Some police officials were injured yesterday, and further details will be shared soon.”
Government officials have claimed a low turnout in their recent news conferences, though the claim has been questioned by Barrister Saif.
“If the public hasn’t come out, why are there shipping container mountains blocking the roads,” he asked. “The regime’s panicked reaction proves its fear of the people’s power.”
The Islamabad administration has also designated the Crime Investigation Agency (CIA) building in I-9 as a sub-jail, according to a notification issued by the chief commissioner with the approval of the interior ministry.
The CIA is a specialized wing of the police that handles investigations into complex criminal cases, including organized crime.
Belarus president to arrive in Pakistan today for bilateral investment agreements
- Pakistan, Belarus sign several memorandums of understanding ahead of Aleksander Lukashenko’s visit
- Pakistan and Belarus, world’s 74th-largest economy by GDP, celebrated thirty years of diplomatic relations this year
ISLAMABAD: Belarus President Aleksander Lukashenko is scheduled to arrive in Pakistan today, Monday, for a three-day visit to the country as Islamabad eyes foreign investment in its renewed efforts to ensure economic growth and stability.
Pakistan’s government has been seeking foreign trade, investment and bilateral cooperation agreements with old and new allies as it seeks to keep its $350 billion fragile economy afloat whilst grappling with a macroeconomic crisis.
A 68-member delegation from Belarus arrived in Pakistan’s capital on Sunday ahead of Lukashenko’s visit. The Belarusian delegation arrives in the capital as thousands of supporters of former prime minister Imran Khan march toward Islamabad, demanding his release from prison, independence of the judiciary and to register their protest against alleged rigging in the country’s February general election.
“President of the Republic of Belarus Aleksandr Lukashenko will undertake three-day visit to Pakistan from today,” state broadcaster Radio Pakistan said in a report.
Belarus’ Foreign Minister Maxim Ryzhenkov oversaw the signing of several agreements in Islamabad. Pakistan’s Deputy Foreign Minister Ishaq Dar welcomed Ryzhenkov to the Ministry of Foreign Affairs as the two discussed bilateral and regional issues, and the agenda of Lukashenko’s visit.
During a meeting of the Pakistan Belarus Business Forum, the two sides signed MoUs related to tractors, pharmaceuticals, tires and veterinary medicines.
“The two sides emphasized the importance of enhanced cooperation in international and regional organizations to advance mutual interest and to jointly address global challenges,” Pakistan’s foreign office said.
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintains an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds, and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
The First Pakistan-Belarus Joint Economic Commission (JEC) was held in 2015 in which the two countries agreed to initiate joint ventures in the textile, pharmaceutical and lighting solution industries and share technological expertise.
Pakistan president calls for education, financial freedom to combat violence against women
- Zardari urges ‘systematic reforms’ on International Day to End Violence Against Women
- Pakistan has introduced laws to protect women, but their implementation is inadequate
ISLAMABAD: President Asif Ali Zardari on Monday called for intensified efforts to eliminate violence against women, emphasizing education and financial independence as essential tools to empower women and ensure their safety.
Zardari issued the statement on the International Day for the Elimination of Violence against Women, observed annually on November 25, to highlight the global issue of gender-based violence, which affects one in three women worldwide, according to the United Nations.
In Pakistan, the problem is compounded by deeply rooted patriarchal norms, with incidents of domestic abuse, honor killings and workplace harassment remaining widespread despite existing laws.
“Today, we renew our commitment to protecting women’s rights, providing a safe and supportive environment and eradicating violence,” the president said in a statement. “It is essential to provide women with education and skills and ensure their financial independence.”
“Every year, thousands of women lose their lives due to violence,” he added. “To prevent violence against women, strategies and systemic reforms must be implemented.”
Pakistan has introduced several laws to protect women, including legislation against sexual violence and workplace harassment. However, human rights organizations point to significant gaps in enforcement and the persistence of discriminatory attitudes that undermine women’s safety.
The president described violence against women as a “major human rights issue,” stressing the importance of raising awareness about women’s rights and the urgent need for collective action to create a safer society.
“Through collective efforts, we can create a safer, violence-free environment for women,” he said.
The president also recalled how Pakistan’s only female prime minister, his late wife Benazir Bhutto, emphasized economic freedom and social equality to improve the quality of life for women in the country.
He said she aspired to create a society free from exploitation and mistreatment of women.
“I am pleased that meaningful efforts are being made in Pakistan to eliminate violence against women,” he added. “Through collective efforts, we can create a safer, violence-free environment for women.”
Elephant Madhubala set to reunite with kin on Tuesday after 15-year separation
- Madhubala has languished in Karachi Zoo’s solitary confinement since April 2023 after elephant Noor Jehan died
- Animal rights activists have campaigned for elephants to be shifted to species-appropriate sanctuaries
KARACHI: Elephant Madhubala is set to be reunited with her cousins at Karachi’s Safari Park sanctuary on Tuesday after being separated from them for 15 years and spending a year in solitary confinement, an animal welfare organization said.
Madhubala, one of only three captive elephants in Pakistan, was brought to the country in 2009 along with three other elephants from Tanzania. She and her companion, Noor Jehan, were separated from their kin about 15 years ago and brought to the Karachi Zoo.
Noor Jehan passed away in April 2023, leaving Madhubala in solitary confinement at the zoo since then. Animal rights organizations have vigorously campaigned for Madhubala to be shifted to the Safari Park, saying the solitary confinement has taken a toll on her health.
A team from FOUR PAWS International, a Vienna-based animal welfare organization, has arrived in Karachi to oversee Madhubala’s transfer to the sanctuary.
“I’m excited to see how Madhubala will react when she meets her cousins,” Dr. Amir Khalil, director of reveal and rescue at FOUR PAWS, told Arab News.
“Imagine someone who hasn’t seen their siblings in fifteen years — how will she feel when they finally reunite?”
Animal rights activists have long campaigned against the plight of animals in Pakistan, especially elephants, and demanded they be shifted to “species-appropriate” locations such as the Safari Park.
FOUR PAWS has said the elephant enclosures at Safari Park would have water elements for bathing, skincare and thermoregulation. Enrichments such as hay nets, varying substrates like soil, sand, clay, and sawdust will be provided for Madhubala to dust bathe while the area is secured by elephant-proof fencing.
Four Paws said in a statement last month that the adaptation work at Karachi’s Safari Park had reached its final stage. Madhubala will be carried from the Karachi Zoo to the Safari Park in a huge transport crate.
The elephant was trained to enter and exit the crate by herself and sit inside it earlier this year.
“As part of the final preparations, the focus now lies on completing the landscaping of the elephant enclosure at Safari Park, finalizing enrichment features, and continuing the necessary training of the three elephants, including resuming crate training for Madhubala,” FOUR PAWS said last month.
The relocation, among others, will be witnessed by Karachi Mayor Murtaza Wahab, the consul general of the United Arab Emirates and the ambassador of Austria.
Pakistan Senate chairman leaves for Saudi Arabia to strengthen bilateral ties
- Yousuf Raza Gillani to meet Saudi Shoura Council chairman, governors of Riyadh and Madinah during visit
- Pakistan and Saudi Arabia closely cooperate in defense, military, economy, trade and other vital sectors
ISLAMABAD: Pakistan’s Senate Chairman Yousuf Raza Gillani left for a five-day trip to Saudi Arabia on Monday with his visit aimed at strengthening bilateral ties and promoting institutional cooperation between Islamabad and Riyadh, the Senate Secretariat said.
The invitation to Gillani and his delegation was extended by Saudi Arabia’s Shoura Council, the secretariat said. The Majlis Al-Shoura, or Consultative Council, is a legislative body that advises the Saudi king on issues that are important to Saudi Arabia.
“Chairman Senate Syed Yousuf Raza Gillani has left for a five-day trip to Saudi Arabia with a delegation,” the Senate Secretariat said in a statement.
“The aim of the visit is to further promote bilateral relations and institutional cooperation.”
The Pakistani delegation will hold high-level meetings with the Shoura Council chairman, governors of Madinah and Riyadh, and conduct other high-level meetings, it said.
Pakistan and Saudi Arabia enjoy cordial relations that have resulted in close cooperation in defense, military, economic and other sectors.
Last month, Pakistan and Saudi Arabia signed investment agreements worth $2.8 billion while Crown Prince Mohammed bin Salman has pledged to expedite a $5 billion investment portfolio for Islamabad.
Saudi Arabia has frequently bailed Pakistan out of its economic crisis over the years, coming to its aid with loan rollovers and providing oil on deferred payments to Islamabad.
