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
COMSTECH, Pakistani conglomerate announce Internship program for OIC member countries
- International program hosted by Gourmet Industries, the largest food processing complex in Pakistan
- Selected candidates will receive accommodation, meals, and return economy-class air ticket to Pakistan
ISLAMABAD: The OIC Standing Committee on Scientific and Technological Cooperation (COMSTECH), in collaboration with Pakistan’s Gourmet Industries, has announced the COMSTECH-Gourmet Industrial Internship Program for its first batch in January 2025, Radio Pakistan reported on Monday.
Hosted by Gourmet Industries, the largest food processing complex in Pakistan, the program offers 10 internships lasting four weeks. Selected candidates will receive accommodation, meals, and return economy-class air ticket to participate in the program, which aims to promote innovation, research, and skill development across various industrial sectors, offering participants practical training and exposure to advanced technologies and industrial processes.
The program will focus on key areas in food industry operations including bakery, dairy, and beverages, plant utilities, recycling through innovative RPET methodologies, shrink-wrap production, sugar mill logistics, and media training in journalism and broadcasting. Participants will gain hands-on experience in supply chain management, production processes, and sustainability practices also.
“The internship is open to applicants from OIC member countries holding a BS/BSc or MS/MSc in relevant fields and under the age of 40,” the report said.
“The objective of the COMSTECH-Gourmet Industrial Internship Program is to foster innovation and research and development (R&D) across diverse industrial sectors, including food processing, engineering, plant operations, recycling, and so forth.”
The program will provide interns hands-on experience and exposure to cutting-edge technologies and methodologies, thereby enhancing their practical skills and theoretical knowledge.
“By engaging in real-world projects, interns will contribute to the advancement of industrial processes and the development of sustainable solutions, ultimately driving technological innovation and improving operational efficiencies in the fields of human nutrition and value addition,” Radio Pakistan added.
“This initiative underscores COMSTECH’s mission to empower youth in OIC nations and advance technological development for socio-economic progress.”
Applicants have to complete an application form and upload requested documents (CV, Research Proposal, etc.) at: (https://form.jotform.com/243101366016444) till Nov, 30. Applicants can contact [email protected] for further information.
Pakistan approves $625 million for infrastructure projects in Balochistan, Sindh, KP provinces
- Projects will improve connectivity in Balochistan, Khyber Pakhtunkhwa and Sindh
- Six of the approved projects are for the remote southwestern Balochistan region
ISLAMABAD: The Executive Committee of Pakistan’s National Economic Council has approved ten infrastructure projects costing Rs172.7 billion ($625.54), Radio Pakistan reported on Monday, with a majority of the schemes approved for the remote Balochistan province.
The ECNEC met in Islamabad on Monday with Deputy Prime Minister Ishaq Dar in the chair.
“The projects pertain to the infrastructure sector for improving connectivity in Balochistan, Khyber Pakhtunkhwa and Sindh. Six of the approved projects are in Balochistan,” Radio Pakistan said.
“World Bank funded project for developing solid waste infrastructure for Karachi costing 29.2 billion rupees was also approved.”
Balochistan, which comprises 44 percent of Pakistan’s total land mass, is its most backward by almost all economic and social indicators.
Rich in land and mineral wealth, most parts of the Balochistan province often lack even the rudiments of modern life. Home to Reko Diq, one of the world’s largest undeveloped copper and gold deposits, and the site of major Chinese investment projects, the province lacks employment opportunities and basic facilities like Internet, health and education.
Balochistan also has the lowest density of roads among the four provinces of Pakistan. Poor connectivity and access continue to be a major problem, which particularly affect the poor, who live mostly in the rural areas.
In Khyber Pakhtunkhwa, annual rainfall and temperature patterns have significantly increased and the lack of resilient infrastructure has escalated the impact of disasters on people and livelihoods. Flooding events since 2010 have substantially damaged the road network, hampering connectivity and escalating transportation costs.
Home to over 55 million people, Sindh is Pakistan’s second largest province and generates a third of national GDP. However, economic development is skewed in favor of the provincial capital Karachi, the country’s largest city and responsible for three-quarters of overall trade activity. Rural areas are poorly connected to the regional centers, and the road conditions of about half of the 2,830 km of provincial highways are substandard due to damage from heavy truck traffic and seasonal flooding.
Pakistan Tehreek-e-Insaf says won’t call off protest until Imran Khan released from prison
- Khan’s party is leading a “long march” to Islamabad to call for release of Khan and other political prisoners
- Protest has coincided with visit by Belarus president, with government accusing PTI of trying to sabotage economic recovery
PESHAWAR/ISLAMABAD: A march by thousands of supporters to demand the release of jailed former Prime Minister Imran Khan reached the edges of the Pakistani federal capital of Islamabad on Monday, with his wife Bushara Khan saying the demonstration would not be called off until the ex-premier was released from prison.
The Pakistan Tehreek-e-Insaf (PTI) party is leading a “long march” to the Pakistani capital from cities around the country to call for the release of political prisoners, including Khan, among other demands. The protesters plan to camp at D-Chowk, a high-security area in the capital’s Red Zone that houses key government buildings and is a popular site for protests, but the government has sealed all entry and exit points to the city with shipping containers and heavy contingents of police and other security forces have been stationed across Islamabad.
Khan has been in jail since August last year and faces a slew of charges he says are politically motivated.
“Until Khan does not return to us, we will not end this march,” Bushra said to supporters as the PTI edged closer to Islamabad. “I will stand there till my last breath, 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.”
The largest PTI protest caravan began its journey from Peshawar, led by Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur and accompanied by Bushra, 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.
The PTI march started on Sunday but could not reach Islamabad as shipping containers placed by the government on key points on major highways slowed the pace of the caravans.
“We wouldn’t let them storm the capital,” provincial Information Minister Uzma Bukhari told a news conference, adding that several police officials were injured in clashes and rioting at some places in the province.
Ahead of Khan’s protest, the government had imposed a two-month ban on public gatherings in the capital, citing security challenges and inconvenience to the public. Earlier this year, parliament also passed a new law to regulate public assembly in Islamabad, which said, among other rules, that any party or group wanting to hold a protest can only do so at a venue designated by the administration and during set timings.
Authorities have closed all schools in Islamabad and the adjacent garrison city of Rawalpindi, while the Internet and WhatsApp messaging services also slowed.
ARRESTS AND CLASHES
On Monday afternoon, the caravan crossed barriers at Ghazi Barotha and the Hazara toll plaza before entering Punjab’s Attock district. Clashes between protesters and police were reported as the march reached the Kati Pahari area, with PTI workers struggling to clear the motorway under tear gas shelling.
Islamabad police confirmed over 400 arrests related to the protest in the past few days, saying the detainees were being held in different police stations. The PTI said over 3,500 of its leaders and supporters had been arrested in connection to the protests.
“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.”
PTI leader Shaukat Yousafzai, who is part of the caravan, told Arab News over the phone the march would carry on until it reached D-Chowk.
“We will only return from D-Chowk when Imran Khan and other innocent party workers are released from Pakistani prisons,” he said.
The PTI’s march has coincided with a visit to Islamabad by Belarusian President Aleksandr Lukashenko and a 68-member delegation to discuss investment deals. The government has accused the PTI of trying to sabotage the foreign visit in a bid to destabilize its economic recovery efforts.
Yousafzai rejected this criticism, saying his party had called the protest well before the Belarusian delegation’s arrival was announced.
“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.”
KP government spokesperson Muhammad Ali Saif also said the PTI planned to hold a “protracted protest.”
“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.”
A report prepared by Pakistan’s Ministry of Finance estimated economic losses of Rs190 billion ($684 million) per day due to political protests.
Islamabad, Minsk sign several MoUs ahead of President Lukashenko’s visit to Pakistan today
- Both sides sign agreements related to tractors, pharmaceuticals, tires and veterinary medicines
- Pakistan has increasingly eyed foreign trade and investment to ensure economic stability
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.”
