Pakistan’s central bank rules out 'sudden and higher' interest rate changes in foreseeable future

This undated file photo shows premises of the State Bank of Pakistan. (Shutterstock)
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Updated 02 March 2021
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Pakistan’s central bank rules out 'sudden and higher' interest rate changes in foreseeable future

  • The State Bank of Pakistan has given forward guidance on monetary policy for the first time to address concerns of investors
  • The central bank maintains policy rate at 7 percent for the next two months as domestic recovery gains traction

KARACHI: Pakistan’s central bank on Friday ruled out any “sudden and higher” interest rate movements in the foreseeable future amid speculations that the International Monetary Fund (IMF) was likely to resume its $6 billion loan program for the country. 

The bank decided to maintain the policy rate at 7 percent for the next two months, saying that domestic economic recovery had gained further traction. 

“In the absence of unforeseen developments, the Monetary Policy Committee (MPC) expects monetary policy settings to remain unchanged in the near term,” Governor State Bank of Pakistan (SBP) Dr Reza Baqir told a news conference in Karachi. 

“As the recovery becomes more durable and the economy returns to full capacity, the MPC expects any adjustments in the policy rate to be ‘measured and gradual’ to achieve mildly positive real interest rates,” he said while reading a document, adding that the MPC considered it appropriate to provide some forward guidance on monetary policy to facilitate policy predictability and decision-making by economic agents. 

Last week, Baqir said the country was hoping for good news following talks with the IMF on the revival of fiscal stabilization program where concerns about future interest rates were also raised. The central bank’s forward guidance is meant to assuage such concerns of investors and business community. 

Pakistan signed $6 billion, three-year Extended Fund Facility (EFF) with the IMF and has so far secured $1.44 billion under the loan program since July 2019. The country was expecting another tranche of about $450 million before the second review was put on hold about a year ago. 

“We were in touch with the IMF at the technical level and the IMF also wanted fast economic recovery,” the SBP governor said, adding: “Now talks are going on with the IMF and when announcement would be made that our agreement on the review has been done its basic purpose would be to maintain the economic growth so that recovery could be stabilized.” 

Despite recent electricity tariff hikes, the central bank said that inflation was expected to fall within the previously announced range of 7-9 percent during FY21, hoping that the trend would move toward the 5-7 percent target range over the medium-term. 

Pakistan on Thursday increased the electricity tariff by Rs1.95 per unit, or 15 percent, which will also affect the base tariff for lifeline consumers using up to 50 units per month for the first time in almost two decades.

The SBP governor said, however, that the impact of these measures on inflation would be temporary. 

“The rates have been increased in the past as well,” he added, “but we witnessed that their impact was temporary.” 

He said the country had come out of the difficult stabilization phase and the economic activity data and indicators of consumer and business sentiment were reflecting continued improvement. 

However, the MPC stressed in its report that considerable uncertainty remained part of the general economic outlook. 

“The trajectory of the COVID pandemic is difficult to predict, given still-elevated global cases, the emergence of new strains, and lingering uncertainties about the roll out of vaccines worldwide,” the SBP statement read. “Such external shocks could slow the recovery.” 


Islamabad to repatriate 22 Pakistani survivors of Morocco boat capsize in batches

Updated 25 January 2025
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Islamabad to repatriate 22 Pakistani survivors of Morocco boat capsize in batches

  • The migrant boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistani nationals
  • The tragedy has once again underscored the perilous journeys many migrants embark on due to conflict, instability at home

ISLAMABAD: Pakistan will repatriate 22 survivors of a boat capsize off Morocco this month, the Pakistani foreign office said on Saturday, adding that verifying national identities of these individuals remained a critical component of the repatriation process.
The boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later 36 people were rescued from the vessel that left Mauritania on Jan. 2, while the foreign office confirmed the survivors included 22 Pakistanis.
Pakistan’s embassy in Rabat has been working closely with Moroccan authorities to oversee the relief efforts and finalize the complex repatriation procedure, according to the Pakistani foreign office.
“Following thorough investigations and careful coordination with Moroccan authorities, these individuals will be returned to Pakistan in batches,” it said in a statement.
The Pakistani foreign office said its Crisis Management Unit (CMU) was actively engaged in monitoring the situation and providing necessary support to the affected individuals, maintaining active communication with their families.
The national identity verification process was completed expeditiously in coordination with the Pakistani interior ministry and relevant departments, it added.
The Morocco tragedy has once again underscored the perilous journeys many migrants, including Pakistanis, embark on due to conflict and economic instability in their home countries.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a shipwreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests. On Friday, Prime Minister Shehbaz Sharif also formed a special task force to curb human smuggling, promising to bring human traffickers to justice.
Separately, the foreign office said on Saturday, it was facilitating the return of another 11 Pakistani nationals from Mauritania, who had voluntarily chosen to return home.
“The welfare of Pakistani nationals abroad remains an important priority of the government and it will continue to work to extend all possible facilitation in this regard,” it added.


Pakistani Taliban release kidnapped worker of atomic energy commission, body of another — police

Updated 25 January 2025
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Pakistani Taliban release kidnapped worker of atomic energy commission, body of another — police

  • Over a dozen Pakistan Atomic Energy Commission workers were kidnapped from Lakki Marwat on Jan. 9, with eight of them released later
  • No immediate confirmation of the release of one more worker by the government, police official says eight workers still remain in captivity 

PESHAWAR: The Pakistani Taliban on Saturday freed a worker of the Pakistan Atomic Energy Commission (PAEC), who was kidnapped among more than a dozen others this month in the Khyber Pakhtunkhwa (KP) province, and handed over body of another employee who had died in captivity, police said.
The Pakistani Taliban, which have recently stepped up attacks in Pakistan’s restive northwest, had kidnapped more than a dozen workers of the sensitive government agency, responsible for nuclear energy projects, from the volatile Lakki Marwat district on Jan. 9.
Eight of them were later released through joint efforts by tribal elders and amid a search operation conducted by police and security forces in the dense forest area where the militants had reportedly taken the kidnapped employees.
While the Pakistani government had not issued a statement on the incident, Shahid Marwat, the Lakki Marwat police spokesperson, had confirmed that a group of nearly 18 “civilians” working on “atomic and mining projects” had been kidnapped by armed gunmen.
“Following hectic efforts by local administration and [tribal] elders, one of the abductees has been set free, while they [kidnappers] have handed over dead body of another abductee to the elders,” Marwat told Arab News on Saturday.
“Eight employees are still in kidnappers’ captivity.”
There was no immediate confirmation of the development by the Pakistani government or the PAEC, but the Pakistani Taliban said they released the worker as a “goodwill gesture.”
“An atomic energy commission official was released as a goodwill gesture at the request of tribal elders,” they said in a statement.
Marwat said it wasn’t immediately clear how one of the abductees had died in captivity.
“His dead body is in hospital for postmortem to know if he was killed by the kidnappers or he had died of natural causes,” he told Arab News.
Earlier this month, the militants released a video of the abductees, in which a man was seen reading out the demands laid by the kidnappers, requesting the government to “immediately” accept them.
The demands included the release of militants arrested in Lakki Marwat, the release of families of militants allegedly in government custody, a commitment not to demolish the homes of militants and their relatives in the future, and compensation for the homes already demolished in the region.
Lakki Marwat is situated on the edge of Pakistan’s northwestern tribal districts bordering Afghanistan, where the TTP has frequently targeted security force convoys and check-posts, in addition to engaging in targeted killings and kidnappings of law enforcers and government officials in recent months.


Pakistani court sentences four people to death for blasphemy

Updated 25 January 2025
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Pakistani court sentences four people to death for blasphemy

  • Under Pakistan’s laws, anyone found guilty of insulting Islam or its figures can be sentenced to death
  • Authorities have yet to carry out such a penalty, although opposition to the law can incite reprisals

MULTAN: A Pakistani court Saturday sentenced four people to death for blasphemy, allegedly because they posted sacrilegious material on social media about Islamic religious figures and the Holy Qur’an. Their lawyer said appeal preparations are underway.
Under the country’s blasphemy laws, anyone found guilty of insulting Islam or its religious figures can be sentenced to death. Authorities have yet to carry out such a penalty, although the accusation of blasphemy and opposition to the law can incite mob violence or reprisals.
Judge Tariq Ayub in the city of Rawalpindi declared that blasphemy, disrespect to holy figures, and desecration of the Holy Qur’an were unforgivable offenses and left no room for leniency.
Along with the death sentences, the judge imposed collective fines of 4.6 million rupees (around $16,500) and handed down jail terms to each of the four should a higher court overturn their death sentences.
The men’s lawyer, Manzoor Rahmani, criticized the court’s decision and investigating authorities’ lack of evidence.
“The doubts and uncertainties that arise in such cases are ignored by the courts, likely due to the fear of religious backlash and potential mob violence against the judge if the accused is acquitted,” said Rahmani.
“We are preparing our appeals against the decision and will go to the High Court.”
Anti-blasphemy measures introduced in Pakistan in the 1980s made it illegal to insult Islam.
Since then, people have been accused of insulting the religion, desecrating its texts, or writing offensive remarks on the walls of mosques. Critics of the law say it is used to settle personal disputes.


Pakistan’s Sindh province bans vehicles without Ajrak-inscribed plates on roads from Apr. 3

Updated 25 January 2025
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Pakistan’s Sindh province bans vehicles without Ajrak-inscribed plates on roads from Apr. 3

  • The provincial government introduced white registration plates that feature an Ajrak-inscribed design in July 2021, replacing the old, yellow plates
  • While some motorists adopted the new plates, owners of more than 3 million vehicles continue to use the old ones, the Sindh excise department says

KARACHI: The government in Pakistan’s southern Sindh province has banned vehicles without the ancient Ajrak-inscribed registration plates from plying the roads from April 3, the Sindh excise department said on Saturday.
Ajrak, a vibrant block-printed cotton cloth with striking crimson and indigo hues, is deeply ingrained in the Sindhi culture. Adorned with symmetrical patterns and sparkling white motifs, primarily stars, it is believed to have roots in the ancient Indus Valley Civilization.
The cherished fabric accompanies every stage of life in Sindh, from infant cradles to grand ceremonial occasions. Its versatility is reflected in its wide array of uses as a hammock for infants, bridal accessory, turban, shawl, bed cover, tablecloth, meaningful gift, and as a token of respect for honored guests.
The Sindh government had decided to replace the old, yellow-colored registration plates with white, Ajrak-inscribed plates in July 2021, keeping the province’s traditions in view. While some motorists adopted the new plates, owners of more than 3 million vehicles continue to use the old ones, according to the excise department.
“This will not only allow vehicles from Sindh to represent their province wherever they travel, but also showcase the region’s 6,000-year-old history of peace and civilization,” Shabbir bin Babar, a spokesperson of the Sindh excise department, told Arab News.
In December last year, the excise and taxation department had made it mandatory for all private and commercial vehicles to obtain the new plates.
The significance of Ajrak in Sindh’s culture can also be gauged from a bust of the Priest-King excavated at Mohenjo-daro, a UNESCO world heritage site and the largest settlement of the ancient Indus Valley Civilization that flourished around 2,500 BCE, that is currently housed in the National Museum of Pakistan in Karachi, depicting his one shoulder draped in a cloth resembling Ajrak.
Sindh Excise, Taxation and Narcotics Control Minister Mukesh Kumar Chawla told Arab News the initiative is aimed at celebrating the region’s rich culture.
“No weapons have ever been found among the artifacts unearthed at Mohenjo-daro, which sets it apart from other ancient discoveries worldwide,” he said.
“But we have the discovery of beautiful Ajrak, which signifies that the inhabitants of Sindh were always a peace-loving and civilized people.”
Chawla said Ajrak is an integral part of Sindh’s rich culture that reflects the region’s hospitality.
“The people of Sindh are considered some of the most hospitable globally,” he said. “[Ajrak is] a reflection of these traditions and their deep connection with the land.”


Death of Indian fisherman in Pakistan prison renews calls for release of detainees

Updated 25 January 2025
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Death of Indian fisherman in Pakistan prison renews calls for release of detainees

  • Babu Kana, 55, died of cardiac arrest in Karachi’s Malir prison this week, according to a Pakistani jail official
  • Of over 200 Indian prisoners, majority have completed their terms and 30 are suffering from various diseases

KARACHI: An Indian fisherman, who had been detained in Pakistan for nearly three years, died of cardiac arrest at Karachi’s Malir Prison this week, a jail official confirmed on Saturday, with the death renewing calls from human rights advocates in both countries for greater empathy and speedy procedures for the release of fisher folk who unintentionally cross maritime borders.
Indian and Pakistani fishermen are routinely detained by both maritime agencies for allegedly entering each other’s territorial waters. The poorly defined maritime boundary in the Arabian Sea, coupled with the limited navigational capabilities of many fishing boats, frequently leads to unintentional crossings.
Malir Prison, where 55-year-old Indian fisherman Babu Kana died on Thursday, has faced scrutiny in recent years over the deaths of several detainees due to health complications. In 2023 alone, two Indian fishermen, Balo Jetha and Soma Deva, died as their health deteriorated during incarceration.
Kana was detained by Pakistani authorities in 2022 after his boat strayed into Pakistani waters. Despite completing his sentence the same year, he remained imprisoned due to procedural delays in the deportation process, according to Malir Prison Superintendent Arshad Shah.
“His health suddenly deteriorated on Thursday and he was taken to the prison hospital where he passed away,” Shah told Arab News, adding that the inmate had no medical history.
The prison official said the Indian detainee had been granted consular access, but he couldn’t be deported due to a “delay in his verification from the Indian side.”
A spokesperson for the Indian high commission in Pakistan did not respond to Arab News’ request for comment as to what led to the significant delay that hindered Kana’s chances to reunite with his family.
More than 200 Indian fishermen have been languishing in Malir prison and a large number of them have completed their sentences, while 30 fishermen are suffering from different diseases, according to the jail superintendent.
“We are providing them best available treatment, but those who have completed their term should be taken back to their country,” Shah added.
Jatin Desai, an Indian rights activist who campaigns for the release of fishermen from both countries, said Kana was one of 217 Indian fishermen currently incarcerated in Pakistani prisons.
“According to our records, 216 Indian fishermen are still languishing in Pakistani jails, while 81 Pakistani fishermen are imprisoned in India,” Desai told Arab News over the phone from Mumbai.
He said the 2008 Agreement on Consular Access mandates the release and repatriation of people within one month of confirming their nationality and sentence completion.
“In Babu’s case, his consular access was granted, and his identity was confirmed,” Desai said, urging both countries to adhere to the agreement and expedite the release of all detainees.
Faisal Edhi, chairman of Pakistan’s Edhi Foundation charity, said delays in the repatriation of detained fishermen often extend even after a fisherman’s death.
“We have received the deceased’s body, but it will take over two weeks to send it back to India,” Edhi said, highlighting the plight of the families of these fishermen.
Edhi, who has been part of repatriation of nearly 400 Indian fishermen in recent years, urged both countries to immediately confirm the identities of fishermen and send them back to their countries.
Khizar Qazi, vice-chair of the Human Rights Commission of Pakistan (HRCP), said most of these fishermen come from poor families and, in most cases, they are the sole breadwinners of their families.
“Fishermen from both sides endure harsh jail conditions that severely impact their mental health,” Qazi told Arab News.
“Upon arrest, they should be promptly handed over. If necessary, they should be detained for a short term, and upon release, their boats should be returned – a practice we have yet to witness from either side.”