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%
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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
After ODI series win, Rizwan to lead Pakistan in first T20I against Australia today
- Pakistan to play three-match series against Australia on Nov. 14, 16 and 18 in Brisbane, Sydney and Hobart
- Rizwan’s side defeated Australia 2-1 in three-match series last week to win first series in Australia since 2002
ISLAMABAD: Pakistan skipper Mohammad Rizwan will lead his side for the first time against Australia in a T20I format at Brisbane today, Thursday, after steering the green shirts to their first ever ODI series victory against the 2023 world champions since 2022.
Rizwan will become the 12th person to assume Pakistan’s T20 captaincy when he takes the field in Brisbane for the first T20I. Pakistan’s cricket team, encouraged by stellar performances from fast bowlers Haris Rauf, Shaheen Shah Afridi and Naseem Shah, beat Australia 2-1 in the three-match series that concluded last week.
After Thursday’s match, Pakistan will play against Australia in Sydney and Hobart on Nov. 16 and 18 respectively. Pakistani cricketers Jahandad Khan, Mohammad Abbas Afridi, Omair Bin Yousuf, Sahibzada Farhan, Sufiyan Moqim and Usman Khan joined the T20I squad in Brisbane on Nov. 11 after undergoing a five-day training camp in the southern port city of Karachi.
“We are confident after beating Australia in the ODI series but international cricket is always challenging so we aim to do things as better as we can going into this T20I series against Australia,” Rizwan said a day before the match.
“We have determined the roles of various players in the team and look forward to executing our best plans not just in this series but also in the upcoming white-ball fixtures against Zimbabwe and South Africa.”
The Pakistan captain said he wanted to keep all the players involved in the series motivated.
“Of course, the conditions have helped the bowlers on this tour so far but we also want to prove our mettle as a batting unit and I look forward to an exciting contest in the three matches,” he said.
Pakistan last faced Australia in a T20 contest in March 2022 when the two teams played a one-off T20I in Lahore, which Australia won. In Pakistan’s last T20I series in Australia in November 2019, the hosts won 2-0 after the opening match ended in a no result.
Josh Inglis will lead Australia in the T20I series while Tim David and Nathan Ellis have joined Australia’s T20I squad. Josh Philippe, meanwhile, has replaced the injured Cooper Connolly.
Pakistan: Mohammad Rizwan (captain – wicket-keeper), Salman Ali Agha (vice-captain), Arafat Minhas, Babar Azam, Haris Rauf, Haseebullah, Jahandad Khan, Mohammad Abbas Afridi, Muhammad Irfan Khan, Naseem Shah, Omair Bin Yousuf, Sahibzada Farhan, Shaheen Shah Afridi, Sufyan Moqim, Usman Khan
Pakistan rover to join China’s Chang’E 8 mission to explore lunar surface in 2028
- Chang’E 8 mission is a robotic exploration of the lunar south pole, known for its challenging terrain, by China in 2028
- Pakistan’s rover will conduct scientific experiments such as lunar soil study and conduct tests for human presence
ISLAMABAD: Pakistan’s national space agency announced this week its rover will join China’s Chang’E 8 mission to explore the moon’s surface in 2028, describing the development as a “significant milestone” for the South Asian country.
The Chang’E 8 mission is a robotic exploration of the lunar south pole by China, expected to launch in 2028. The Pakistan Space and Upper Atmosphere Research Commission (SUPARCO), the country’s space program, said its rover will land on the lunar south pole in 2028 as part of the Chang’ E 8 mission. The south pole of the moon is known for its challenging terrain and potential scientific discoveries.
In May, Pakistan launched its first lunar satellite aboard China’s Chang’e-6 probe, which was tasked with landing on the far side of the moon that perpetually faces away from the Earth. China was the first country to make such an ambitious attempt.
“SUPARCO’s rover, with an approximate weight of 35 kilograms, will join China’s Chang’E 8 mission, which is part of the larger International Lunar Research Station (ILRS) project,” SUPARCO said in a statement on Wednesday.
“This collaboration marks a significant milestone for Pakistan’s space program, as SUPARCO’s indigenous rover will be part of the mission to explore the lunar surface.”
SUPARCO said the mission would involve scientific experiments such as lunar soil study, lunar surface mapping and testing new technologies for human presence on the moon. It highlighted that the rover, equipped with state-of-the-art scientific instruments, would play a pivotal role in collecting data.
“This collaboration with China highlights the strong bilateral relations between the two countries and their shared vision for space exploration,” it concluded.
Imran Khan forms committee to lead Nov. 24 protest to Islamabad, conduct negotiations
- PTI is protesting alleged rigging of elections, calling for release of political prisoners, independence of judiciary
- Pakistan’s government denies being unfair in Khan’s treatment, election commission denies elections were rigged
ISLAMABAD: Former Prime Minister Imran Khan said on Wednesday he had formed a leadership committee to lead a planned protest in the Pakistani capital, Islamabad, on Nov. 24 and conduct negotiations as his party prepares to launch an anti-government movement.
The jailed leader’s Pakistan Tehreek-e-Insaf party has announced a ‘long march’ to Islamabad over alleged rigging in Feb. 8 general elections and to call for the release of political prisoners and the independence of the judiciary.
“I have formed a leadership committee to lead the protest and conduct negotiations,” Khan said in an X message from prison, urging his supporters to reach Islamabad for the protest and “not return until our demands are met.”
It was unclear who the committee would negotiate with, but in the past Khan has called for talks with the military, describing it as the “real decision-makers” as opposed to the “puppet government” led by Prime Minister Shehbaz Sharif.
Regarding the Nov. 24 protest, the PTI’s first demand is a rollback of recent constitutional amendments like the 26th amendment that it says is an attempt to curtail the independence of the senior judiciary. The party is also calling for the release of all political prisoners, including Khan, and a return of “the public mandate” following what it believes was a rigged general election.
Pakistan’s government denies being unfair in Khan’s treatment and its election commission denies the elections were rigged. The government also says the recent amendments related to the judiciary are meant to smooth out its functioning and tackle a backlog of cases.
Khan has been in jail since August 2023 and has faced dozens of cases since he was removed as prime minister in 2022 after which he launched a protest movement against a coalition of his rivals led by current PM Sharif and backed by the all-powerful military, which denies interfering in politics.
Khan says cases against him, which disqualified him from contesting the February elections, are politically motivated.
PM launches prevention program as over 33 million Pakistanis found to have diabetes
- Additional 11 million adults in Pakistan have impaired glucose tolerance
- Pakistan is on the list of countries with the largest diabetic populations
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif said on Thursday, National Diabetes Day, his government was launching a new program for the control and prevention of diabetes in a country where over 33 million people had the chronic disease.
According to a new analysis in The Lancet journal released this week, the percentage of adults suffering from diabetes across the world has doubled over the past three decades, with the biggest rises coming in developing countries.
The serious health condition affected around 14 percent of all adults worldwide in 2022, compared to seven percent in 1990, the Lancet study said. Taking into account the growing global population, the team of researchers estimated that more than 800 million people are now diabetic, compared to less than 200 million in 1990.
“At the Federal level, we will be launching the ‘Prime Minister’s Program for Prevention and Control of Diabetes Mellitus’ under the Ministry of National Health Services, Regulations & Coordination,” Sharif said in a statement.
“Objective of this program is controlling the disease in federal areas and improving capacities in all provinces for providing universal health coverage, diagnosis, and treatment for diabetic patients, along with raising awareness and behavioral change.”
With 33 million of its citizens having diabetes, Pakistan is on the list of countries with the largest diabetic populations. An additional 11 million adults in Pakistan have impaired glucose tolerance, while approximately 8 to 9 million with diabetes remain undiagnosed.
“The major risk factors leading to diabetes in Pakistan are environmental and geographical reasons in addition to genetic variants, dietary, as well as inactive lifestyle,” Sharif said.
“The Government of Pakistan is fully committed in controlling this escalation and delivering wellbeing to diabetic population.”
Diabetes is a chronic disease that occurs either when the pancreas does not produce enough insulin or when the body cannot effectively use the insulin it produces. Insulin is a hormone that regulates blood glucose.
Type 1 diabetes affects patients from a young age and is more difficult to treat because it is caused by an insulin deficiency. Type 2 mainly affects middle-aged or older people who lose their sensitivity to insulin.
Army says suicide bomber recruiter among four militants killed in southwest Pakistan
- High value target recruited suicide bombers for separatist outfit BLA in district Kech, says army
- Last week’s bomb blast claimed by BLA at railway station in southwestern Pakistan killed at least 24
ISLAMABAD: Security forces shot dead four militants, among them a recruiter for suicide bombers for the separatist outfit Baloch Liberation Army (BLA) in an intelligence-based operation in southwest Pakistan, the military’s media wing said on Wednesday.
The operation was conducted in Balgatar area of southwestern Balochistan province’s Kech district, the Inter-Services Public Relations (ISPR), the army’s media wing, said.
Pakistan launched an armed operation in Balochistan earlier this month against separatist militants behind multiple attacks in August in which over 50 people, including civilians and security officials were killed. The BLA also claimed responsibility for a bomb blast last week that killed at least 24 people and left 50 injured at a railway station in Quetta.
“During the conduct of the operation, after an intense fire exchange between own troops and the terrorists, four terrorists including a high-value target, terrorist ringleader Sana (alias) Baru were killed,” the ISPR said.
“He was a focal recruitment agent, especially suicide bombers, for the so-called Majeed Brigade in District Kech and was highly wanted by the law enforcement agencies.”
Weapons and ammunition were also recovered from the slain “terrorists,” the army’s media wing said. It added that security forces had launched a sanitization operation to eliminate any other “terrorists” found in the area.
Pakistan’s Balochistan province, which shares porous borders with Afghanistan and Iran, has been the scene of a low-lying insurgency for decades. Ethnic Baloch nationalists have long accused the central government and Punjab of monopolizing profits from Balochistan’s natural resources.
The state denies these allegations and says it is working on several projects to usher in development in the gas-and-oil rich province.
