Pakistan expected to retain 7% interest rate amid growth momentum 

A logo of the State Bank of Pakistan (SBP) is pictured on a reception desk at the head office in Karachi, Pakistan July 16, 2019. (REUTERS)
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Updated 21 September 2020
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Pakistan expected to retain 7% interest rate amid growth momentum 

  • Follows central bank’s reduced tariff rates since March this year to support coronavirus-hit economy
  • Final decision on monetary policy for next two months to be taken tomorrow 

KARACHI: A day ahead of the State Bank of Pakistan’s (SBP) monetary policy meeting, several financial experts told Arab News on Sunday that they expected the key interest rate to remain unchanged at 7 percent and the currency to remain “stable.”
They credit it, among other factors, to controlled core inflation, economic growth momentum and the country’s Large Scale Manufacturing (LSM) industries which grew by 5.02 percent in July.
“Though the inflation figures are little inflated, the core inflation is controlled. The remittances inflows and current account position is encouraging, and the economic activity is picking up, which is evident from the LSM data. The economic indicators are stable,” Samiullah Tariq, Head of research at Pakistan Kuwait Investment (PKI), told Arab News, adding that the “national currency is also stable”.

It follows the central bank’s move to drastically cut the policy rate from 13.25 percent to 7 percent – or 625 basis points between March 17 and June 25 this year – to support growth and employment due to economic disruptions caused by the coronavirus pandemic.
Monday’s event will be the first after the central bank’s Monetary Policy Committee (MPC) skipped its regular meeting in July, which it said was “unnecessary to hold” at the time.
The LSM’s overall output decreased by 10.17 percent during the outgoing fiscal year FY20 when compared to the same period last year.
However, general inflation in August 2020 increased by 8.2 percent on a year-on-year basis as compared to 9.3 percent in July 2020 and 10.5 percent in August 2019, mainly due to a spike in food prices, data shared by the Pakistan Bureau of Statistics showed.
Meanwhile, a survey conducted by the Chartered Financial Analyst (CFA) Society Pakistan, a representative body of chartered accountants in the country – based on the central bank’s measures – showed that 91 percent of respondents expect that the policy rate will remain at 7 percent. In contrast, others believe that it would be increased by 50-100 basis point (bps) by June 2021.

Another survey conducted by the brokerage house, Topline Securities, also showed that out of 87 responders, 63 are of the view that the rate will remain unchanged, while 18 voted for a rate cut between 25-100 bps, while the rest voted for a rate hike of 25-100 bps.
“Our analysis showed that perhaps the central bank would not change the interest rate, which is also the findings of major surveys conducted. The major reason is that the inflation rate is around 8 percent and the policy rate is 7 percent, which means the savers are incurring losses… the real interest rates is minus,” Muhammad Sohail, CEO of Topline Securities, told Arab News.


Old India-Pakistan rivalry drives South Asia diplomatic reshuffle

Updated 01 February 2025
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Old India-Pakistan rivalry drives South Asia diplomatic reshuffle

  • New Delhi is courting Afghanistan’s Taliban while Islamabad befriends new leaders of post-revolutionary Bangladesh
  • Relations between Afghanistan and Pakistan have also worsened since Taliban returned to power in Kabul nearly four years ago

NEW DELHI: Old rivalries between India and Pakistan are driving a shift in regional ties, with New Delhi courting Afghanistan’s Taliban while Islamabad befriends the new leaders of post-revolutionary Bangladesh.

Diplomatic dynamics in South Asia are rooted in long-running distrust between the region’s two most populous nations.

Nuclear-armed India and Pakistan — carved out of the subcontinent at the chaotic end of British colonial rule in 1947 — have fought multiple wars and remain bitter foes.

The rivalry shows no sign of abating, with New Delhi denying in January it had launched covert operations to kill anti-Indian militants on Pakistani soil.

“You can’t have snakes in your backyard and expect them to only bite your neighbors,” Indian Foreign Ministry spokesman Randhir Jaiswal told reporters in dismissing the allegations.

Relations between Afghanistan and Pakistan have also worsened since the Taliban returned to power in Kabul nearly four years ago.

Islamabad has accused Taliban authorities of failing to rein in militants they say are using Afghan territory to stage attacks that have killed thousands of Pakistani security personnel.

Pakistan launched deadly air strikes in Afghanistan border regions in December, with subsequent cross-border exchanges of fire.

The Taliban’s austere interpretation of Islamic law seems at first glance an unlikely pairing for the Hindu nationalism of Prime Minister Narendra Modi, but India has nonetheless moved to exploit the opportunity.

“India has been pursuing this path quite consistently for quite some time,” international relations professor Hassan Abbas of the National Defense University in Washington told AFP.

“They don’t want the Taliban to give space to any group that is going to ultimately be a bigger threat to India,” he said, adding that the prospect of “annoying Pakistan” was also appealing for New Delhi.

India’s top career diplomat, Vikram Misri, met with Taliban foreign minister Mawlawi Amir Khan Muttaqi in Dubai in January.

Jaiswal described the meeting as the “highest level of engagement” yet, adding that New Delhi was determined to “strengthen our longstanding relationship with the people of Afghanistan.”

Muttaqi had in turn “expressed his hope for the expansion of relations,” a spokesman for his ministry said.

Jaiswal said it was agreed at the meeting to “promote the use” of India’s $370 million development of Iran’s Chabahar container port “for supporting trade and commercial activities” to landlocked Afghanistan.

Chabahar is just west of Pakistan’s Gwadar port, which is considered a cornerstone of the infrastructure expansion of China’s Belt and Road Initiative in Pakistan.

India has long been wary of China’s growing regional clout and the world’s two most populous countries compete for influence in South Asia, despite a recent diplomatic thaw.

The Times of India said in an editorial after the Dubai meeting that New Delhi’s “quiet yet deliberate engagement” with the Taliban was reshaping strategic regional ties.

“Despite not officially recognizing the Taliban government, India understands the importance of maintaining a foothold in Afghanistan,” the newspaper wrote.

“The move also aligns with India’s broader regional strategy, which seeks to counter China’s Belt and Road Initiative and its influence in neighboring Pakistan,” it said.

At the same time, old enemies Pakistan and Bangladesh now speak of “friendly” ties.

Pakistan and Bangladesh were once one nation but split in a brutal 1971 war, with Bangladesh then drawing closer to India.

However, long-time Bangladeshi premier Sheikh Hasina was ousted in an August 2024 revolution, fleeing by helicopter to her old ally India, where she has defied Dhaka’s extradition requests to face charges including mass murder.

Relations between India and Bangladesh’s new government have been frosty since then, allowing Islamabad and Dhaka to slowly rebuild ties.

The first cargo ship in decades to sail directly from Pakistan to Bangladesh successfully unloaded its containers in the port of Chittagong in November.

Bangladesh’s interim leader Muhammad Yunus also met with Pakistan’s Prime Minister Shehbaz Sharif in December, saying he had “agreed to strengthen relations.”

Top Bangladeshi army commanders later visited Pakistan, discussing training programs and praising the “friendly relationship” between the nations.

Dhaka University professor Amena Mohsin told AFP that the sudden closeness reflected one of the oldest dictums in international diplomacy.

“The enemy of my enemy is my friend,” she said.


17 killed as militants attack town in southwestern Pakistan— official

Updated 01 February 2025
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17 killed as militants attack town in southwestern Pakistan— official

  • Quetta-Karachi van comes under fire during gunbattle between security forces and militants, says official
  • Three paramilitary forces’ personnel injured in attack as outlawed BLA separatist outfit claims responibility

QUETTA: At least 17 passengers in a Karachi-bound van were killed in a southwestern Pakistani town this week when the vehicle came under fire during a gunbattle between militants and security forces, an official confirmed on Saturday. 

The attacks began late Friday when militants attacked three different spots in Mangochar town located in Balochistan’s Kalat district around 103 kilometers from the provincial capital of Quetta, Kalat Deputy Commissioner Bilal Shabbir confirmed. 

The attacks took place in Pidrang, Khazeni and Mangochar Bazar areas of the town, the deputy commissioner confirmed, where militants started conducting snap checking of passenger vehicles passing through the town.

Shabbir said the passenger van came under fire near the mountainous area of Khazeni, where armed men battled with paramilitary Levies and Frontier Corps’ personnel. 

“Seventeen passengers who were traveling to Quetta from Karachi were killed after a [Toyota] Hiace van came under fire during an intense gunbattle between security forces and armed terrorists,” Shabbir told Arab News. He said three FC personnel were injured in the attack. 

Shabbir said before the exchange of fire in Khazeni, militants had blocked roads near Soru’s mountainous curve which were leading to Mangochar Bazaar in an attempt to stop security forces’ movement. They also set a private bank on fire in the bazaar. 

“The bodies of the slain passengers were shifted to Quetta,” the deputy commissioner said. “We are investigating as to why they targeted a passenger van.”

Banned separatist outfit Balochistan Liberation Army (BLA) claimed responsibility for the attacks in a statement. The group said its fighters have captured a Pakistani security forces camp in Mangochar. Arab News could not independently verify these claims.

Meanwhile, Assistant Commissioner Mangochar Ali Gul Hassan said security forces had taken control of the area and opened the Karachi-Quetta highway and its surrounding roads for traffic. 

 “Security forces have completed the clearance operation in the area during the early hours of Saturday and the Quetta-Karachi highway (N-25) is opened for traffic,” he told Arab News. 

Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has long faced a low-level insurgency led by separatist groups like the BLA, who accuse Islamabad of exploiting the province’s natural resources, such as gold and copper, while neglecting the local population.

Pakistani governments deny these allegations, saying that it has prioritized Balochistan’s development through investments in health, education and infrastructure projects.

The BLA has emerged as a significant security threat in recent years, carrying out major attacks in Balochistan and Sindh provinces while targeting security forces, ethnic Punjabis and Chinese nationals working on development projects.

The BLA launched coordinated attacks in Balochistan in August last year, killing over 50. Last month, dozens of fighters of the separatist outfit gained control of a small town in Khuzdar for hours and snatched weapons and vehicles from the local Levies force and set the Levies station on fire.

Violence by Baloch separatist factions, primarily the BLA, killed about 300 people last year, according to official statistics, marking an escalation in the decades-long conflict.


US, Dutch police seize 39 domains linked to ‘Pakistan-based cybercrime network’

Updated 01 February 2025
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US, Dutch police seize 39 domains linked to ‘Pakistan-based cybercrime network’

  • Pakistan-based group Saim Raza sold phishing toolkits, fraud tools to transnational crime groups, says Department of Justice
  • Says these tools were used to target numerous victims in the United States, resulting in over $3 million in victim losses

ISLAMABAD: The United States Department of Justice (DoJ) said this week it has coordinated with the Dutch National Police to seize 39 domains linked to a Pakistan-based cybercrime network selling hacking and fraud-enabling tools, adding that the Federal Bureau of Investigation (FBI) is investigating the case. 
In a statement dated Jan. 30, the DoJ said Saim Raza, also known as HeartSender, used these cybercrime websites since at least 2020 to sell phishing toolkits and other fraud-enabling tools to transnational organized crime groups. 
These tools were used to target numerous victims in the United States, resulting in over $3 million in victim losses, it said. 
“The Saim Raza-run websites operated as marketplaces that advertised and facilitated the sale of tools such as phishing kits, scam pages, and email extractors, often used to build and maintain fraud operations,” the statement said. 
It added that the Pakistan-based group made these tools available on the open Internet and also trained end users on how to use them against victims. This was done by linking the tools to instructional YouTube videos on how to execute schemes using these malicious programs, making them accessible to criminal actors that lacked this technical criminal expertise. 
“The group also advertised its tools as “fully undetectable” by antispam software,” the DoJ said. 
It disclosed that transnational organized crime groups and other cybercrime actors who bought these tools primarily used them to facilitate “business email compromise schemes” in which they tricked victim companies into making payments to a third party. 
Those payments would instead be redirected to a financial account the perpetrators controlled, resulting in significant losses to victims, the statement said.
These tools were also used to acquire victim user credentials and utilize those credentials to further these fraudulent schemes. 
“The seizure of these domains is intended to disrupt the ongoing activity of these groups and stop the proliferation of these tools within the cybercriminal community,” the Justice Department said. 
It said the Federal Bureau of Investigation’s (FBI) Houston Field Office is investigating the case.


Dedicated museum, first of its kind, becomes ambassador for Pakistan’s rich textile traditions

Updated 01 February 2025
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Dedicated museum, first of its kind, becomes ambassador for Pakistan’s rich textile traditions

  • Adorned with colorful skirts from Tharparkar to talismanic scarves worn by Sindhi grooms, the museum inspires many to preserve their cultural heritage
  • Nasreen Askari, who established The Haveli, wishes for it to not only showcase Sindh’s beauty, but also help generate income for women who create handicrafts

KARACHI: Adorned with traditional garments, from colorful skirts of Tharparkar to the talismanic scarves worn by Sindhi grooms, The Haveli in Karachi has become an inspiration for many in terms of cultural preservation, with each artifact narrating a story, reflecting the landscapes, symbols, and beliefs of the people of Pakistan’s southern Sindh province.
For over 50 years, Dr. Nasreen Askari meticulously collected textiles, and documented the cultural and historical narratives woven into each piece to finally set up The Haveli in December last year. Today, the museum stands as a testament to Sindh’s deep-rooted artistry, offering a glimpse into ancient craft to people in major cities like Karachi where modern outfits mostly get the limelight.
Askari was mesmerized by the vibrant garments worn by women in Sindh’s rural heartlands, when she first arrived at Sindh University in Jamshoro as a medical student in the 1970s. The intricate embroidery and stunning hues were unlike anything she had encountered in Karachi’s urban sprawl where she had lived. What began as curiosity soon evolved into a lifelong passion for her to preserve Sindh’s textile traditions, a pursuit that would ultimately lead to the creation of Haveli.
“This institution, which is called the Haveli, is an attempt to show the cultural heritage that we have, which is so rich and so varied,” Askari told Arab News, acknowledging that her pursuit was in complete contrast to medicine which she practiced for many years.
“It is an obsession. It is not just a hobby. It is actually a passion. That is how that this institution has taken shape. Because if there was no passion, there would not be an institution [like Haveli].”
Askari shared that she practiced medicine for some time and enjoyed it, however, her passion for handicrafts moved her to start collecting artifacts, with the oldest piece being a bridegroom’s scarf she collected some 50 years ago.
“It was a very big surprise for me, and a very attractive surprise,” he recalled the time, when she decided to build her collection.
The Haveli showcases around 75 pieces from Askari’s extensive collection, amassed over five decades. It has a ‘bandhani’ (a woman’s head shawl) from 1978, a ‘kanjiro’ (a blouse or tunic front), a ‘bujhki’ (a dowry purse), ‘lungis’ (used as men’s sashes), and a ‘chola’ (a woman’s shirt). A section dedicated to animals displays a horse’s outfit, a ‘mohra’ and a ‘gaani’ (adornments for a camel’s face and neck), and a ‘jhul’ (a camel saddle cloth).
One of Askari’s favorite articles features is a ‘parha,’ a skirt made by the Meghwar community of Chachro in Sindh’s border district of Tharparkar. This resist-printed, hand-loom cotton skirt is adorned with embroidery, mirrors and depictions of peacocks gamboling among flowers.
While Askari, who is known as one of Pakistan’s pre-eminent experts on textiles, hasn’t ventured into creating her own designs, she hopes to inspire future generations of designers.
“I just stuck to the traditional designs, and to appreciating them, and examining them,” she said. “But I hope in the future, I will inspire design students to make their own designs.”
Syed Hasan Askari, Askari’s husband and chief executive of The Haveli, noted that Sindh’s rich textile traditions stem from its historical role as crossroads for artisans traveling between Iran, Central Asia and India.
“Every region has its own charm, and every region has its own skills, but Sindh does have an exceptionally rich tradition,” he said, emphasizing the importance of preserving Pakistan’s cultural heritage. 
“It is very important to preserve the culture and heritage of the country, any country, but even more so in Pakistan where there has been a lot of degradation of its historical roots.”
Askari wishes for The Haveli to not only showcase the beauty of Sindhi textiles, but also help generate income for the women who create these handicrafts. 
“I believe that we need to promote their crafts so that the women who make them can have a source of income when they create them,” she added.


Pakistan raises petrol price by Rs1 per liter for next fortnight

Updated 01 February 2025
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Pakistan raises petrol price by Rs1 per liter for next fortnight

  • Pakistan’s Finance Division announces Rs7 per liter hike in price of high-speed diesel
  • Fuel price increases push consumer prices higher across sectors, fueling resentment

ISLAMABAD: Pakistan’s Finance Division announced this week it had increased the prices of petrol by Rs1 per liter and high-speed diesel by Rs7 per liter for the next fortnight, saying the decision was taken due to fluctuations in the international oil market.

This is the second consecutive hike in prices of petroleum products by the government as Pakistan increased the per-liter rates of petrol and diesel by Rs3.47 and Rs2.61 on Jan. 15. 

The new price of petrol will be Rs257.13 per liter while that of high-speed diesel will be Rs267.95 per liter, a notification by the Finance Division said on Friday. 

“The Oil & Gas Regulatory Authority (0GRA) has reviewed and adjusted consumer prices for petroleum products in view of recent fluctuations in the international oil market,” the notification said. 

Fuel prices in Pakistan are reviewed and adjusted fortnightly, based on fluctuations in international energy markets and the rupee-dollar exchange rate.

The mechanism ensures that the net impact of changes in import costs is passed on to consumers, helping to sustain the country’s fuel supply chain.

Fuel price increases typically push consumer prices higher across sectors, causing economic strain and fueling popular resentment among the masses.