Pakistan's current $16 billion forex reserves will make import payments ‘easy’ — experts

A pedestrian walks past a foreign currency exchange shop in Quetta on Dec. 8, 2011. (AFP/File)
Short Url
Updated 02 August 2021
Follow

Pakistan's current $16 billion forex reserves will make import payments ‘easy’ — experts

  • The country's foreign currency reserves increased to $22.18 billion after four years, following significant Eurobond inflows
  • The situation has not done much for the national currency that may come under pressure in the long term due to debt servicing

KARACHI: Pakistan's foreign exchange reserves have reached $22.18 billion, with more than $16 billion held by the central bank, after a span of four years, as the country raised $2.5 billion by issuing Eurobonds, said an official statement released on Thursday.

"The State Bank of Pakistan (SBP) has received the proceeds of government's $2.5 billion Eurobond issuance in its account," said the statement circulated on Thursday night. "As a result, SBP's foreign exchange reserves closed above $16 billion, their highest level since July 2017."

According to economic analysts, the inflows have brought the government in a more comfortable position to pay for its imports, including any COVID-19 vaccines.

"The inflow of $2.5 billion has raised the cushion of the State Bank and it will also improve the country's current account position," Dr. Abid Qaiyum Suleri, member of the government's Economic Advisory Council (EAC), told Arab News on Friday.

"The inflows have made it easy for the country to make payments for imports of COVID-19 vaccine, wheat or sugar due to an improved reserves position," he continued. "This is also the right time to tap international market."

Some economists also suggested that Pakistan should utilize the Eurobond proceeds to pay off some of its debts.

"The country has arranged the liquidity to pay off previous external debts because time to make these payments is due and the prices of oil are also increasing with the ease of lockdown," Dr. Vaqar Ahmed, joint executive director at the Sustainable Development Policy Institute (SDPI), said.

"For the payment of external debts and oil imports the Eurobond proceeds can be utilized," he added.

The inflows did not generate any major fluctuations in the currency and interbank markets as the rupee only appreciated 0.05 percent to close at Rs152.94 against the greenback on Friday.

"Going forward the rupee can come under pressure due to debt servicing since the country is availing G20 debt relief at present," Samiullah Tariq, head of research at the Pakistan-Kuwait Investment, told Arab News. "Only strong and enduring inflows can resist the fall of rupee. Otherwise, we expect three to four percent depreciation in the long run."

Despite its limited impact on the national currency, an official statement announced that the country had returned to the international market for the first time by issuing securities since 2017.

"Pakistan has entered the international capital market after a gap of over three years by successfully raising $2.5 billion through a multi-tranche transaction of 5, 10 and 30-year Eurobonds," the finance ministry said on Thursday.

"The transaction generated great interest as leading global investors from Asia, the Middle East, Europe and the US participated in the global investor calls and the order book," it added.

This is for the first time that Pakistan has adopted a program-based approach with registration of Global Medium-Term Note program.

"The program will allow Pakistan to tap the market at short notice," the ministry continued in its statement. "The government intends to make full use of this program and become a regular issuer in the International Capital Markets."


Afghanistan summons Pakistan envoy over reported airstrikes killing 46 in border town

Updated 10 sec ago
Follow

Afghanistan summons Pakistan envoy over reported airstrikes killing 46 in border town

  • Kabul accuses Pakistan military of creating distrust when civilian officials are in talks with Afghanistan
  • Afghan authorities reported the strikes days after TTP claimed a raid on Pakistani outpost, killing 16 soldiers

ISLAMABAD: Afghan authorities in Kabul said on Wednesday they summoned the Pakistani chargé d’affaires after reported airstrikes by Pakistan in Paktika province that killed at least 46 people, warning such actions undermined bilateral trust and highlighting Afghanistan’s history of defending its sovereignty against major global powers.

The airstrikes reportedly targeted Afghanistan’s eastern district of Bermal, days after Pakistan claimed it thwarted a cross-border incursion by a banned militant network, Tehreek-e-Taliban Pakistan (TTP), whose leadership is said to be based on Afghan soil.

The incident comes amid escalating militant attacks in Pakistan’s northwestern Khyber Pakhtunkhwa province, with TTP recently claiming responsibility for an overnight raid on a Pakistani military outpost that killed 16 soldiers.

Pakistan has accused Afghanistan of facilitating such attacks, a charge denied by Kabul.

“The Ministry of Foreign Affairs of the Islamic Emirate of Afghanistan (IEA) summoned the Charge d’Affaires of the Pakistani Embassy in Kabul this afternoon and delivered a letter of strong protest regarding the bombing by Pakistani military aircraft near the Durand Line, in the Bermal district of Paktika province, Afghanistan,” the Afghan foreign ministry said in a statement.

“The Islamic Emirate of Afghanistan, which has a long history of struggle to defend the country against great powers, will never accept the violation of the nation’s sovereignty and is resolutely prepared to defend the country’s independence and territorial integrity,” it added.

The reported airstrikes coincided with a visit to Kabul by Mohammad Sadiq, Pakistan’s special representative for Afghanistan, to discuss trade and regional ties.

During the visit, Sadiq met Afghanistan’s acting interior minister, Sirajuddin Haqqani, to offer condolences over the Dec. 11 killing of his uncle, Khalil Haqqani, in a suicide bombing claimed by Daesh.

Sadiq also held talks with Afghan Foreign Minister Amir Khan Muttaqi, describing the discussions as “wide-ranging” and focused on strengthening cooperation and fostering peace.

The Afghan foreign ministry maintained that while representatives of Pakistan’s civilian government were engaged in dialogue with Afghan officials in Kabul, the actions of Pakistani military aimed “to create distrust between the two countries.”

“Furthermore, it was made clear to the Pakistani side that the protection of Afghanistan’s national sovereignty is a red line for the Islamic Emirate of Afghanistan, and such irresponsible actions will undoubtedly have consequences,” it continued.

Earlier this year in March, airstrikes by Pakistan’s military in Afghan border regions prompted skirmishes on the frontier.

No statement has yet been issued by Pakistan’s military or foreign office regarding the strikes.


Two paramilitary troops guarding Qatari hunting team killed in attack in southwest Pakistan 

Updated 26 December 2024
Follow

Two paramilitary troops guarding Qatari hunting team killed in attack in southwest Pakistan 

  • IED blast took place as 10-member Qatari hunting team was passing through Zarren Bug locality in Balochistan 
  • Qatar royal family members often visit Pakistan on hunting expeditions, especially in pursuit of the houbara bustard

KARACHI: Two paramilitary soldiers were killed and four were wounded in an IED attack in the southwestern Balochistan province, officials said on Wednesday, as they were guarding a visiting group of Qatari hunters who remained unhurt.

Qatar royal family members often visit Pakistan on hunting expeditions, especially in pursuit of the houbara bustard, a rare bird whose meat is prized by Arab sheikhs. The International Union for Conservation of Nature lists the bustard as a vulnerable species with a global population ranging from 50,000 to 100,000. It has almost vanished on the Arabian peninsula.

“This was an IED attack on the Frontier Corps [paramilitary force] while they were providing security to Qatari nationals, two soldiers have been martyred,” local assistant commissioner Abdul Hameed said.

He said the attackers struck in the Zarren Bug locality in Turbat in the southwestern Balochistan province. 

A second official from a local paramilitary force confirmed that two soldiers had been killed.

“The 10-member delegation of the Qatari hunting party led by Sheikh Talal was visiting district Kech to hunt the houbara bustard,” the official added. “The Qatari team was not hurt in the attack and safely passed the area.”

To seek favor with communities on whose land they pursue prey, hunters from Arab nations have built roads, schools and mosques in places like Balochistan and the province of Helmand in neighboring Afghanistan, while residents also benefit from the international-standard airstrips that can spring up. New four-wheel-drive vehicles brought in for the hunt are sometimes left behind as gifts for regional leaders.

But critics say that hunting with falcons is a reckless hobby that threatens the houbara and other species. 

In December 2015, about 100 gunmen kidnapped at least 26 Qataris from a desert hunting camp in Iraq near the Saudi border. A member of Qatar’s ruling family was freed in April 2016, along with an accompanying Pakistani man.


Pakistan calls for end of violence in Bethlehem, birthplace of Christ

Updated 25 December 2024
Follow

Pakistan calls for end of violence in Bethlehem, birthplace of Christ

  • Palestinian city is venerated by Christians as birthplace of Jesus and now sits in Israeli-occupied West Bank
  • Violence has surged across the hilly land since the start of the Hamas-Israel war in Gaza in October last year

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Wednesday called for an end to violence in Bethlehem, the Palestinian city venerated by Christians as the birthplace of Jesus and which now sits in the Israeli-occupied West Bank.
Since the 1967 war between Israel and neighboring Arab countries, Israel has occupied the West Bank, which Palestinians want as the core of a future independent state. Israel has built Jewish settlements across the territory and several of its ministers live in settlements and favor their expansion.
Violence has surged across the hilly land since the start of the Hamas-Israel war in Gaza in October last year. Hundreds of Palestinians — including suspected armed fighters, stone-throwing youths and civilian bystanders — have died in clashes with Israeli security forces, while dozens of Israelis have been killed in Palestinian attacks, Israeli authorities say.
“The place [Bethlehem] where Prophet Isa [Jesus] was born, his birthplace, today there is a raging market of bloodshed and violence there,” Sharif said as he addressed a church service in Islamabad.
“I believe that on this occasion [of Christmas], wherever in the entire world that Christians live, we should try our best to end this bloodshed in Palestine. And Prophet Isa, who was a peace messenger, for the success of his mission, we need war to end there.”
The West Bank has been transformed by the rapid growth of Jewish settlements over the past two years, with strident settlers pushing to impose Israeli sovereignty on the area.
Far-right National Security Minister Itamar Ben-Gvir said on X in October that since the start of the Gaza conflict more than 120,000 firearms had been distributed to Israeli settlers to protect themselves.


Pakistan’s Christians call for protection, more rights amid Christmas celebrations in capital

Updated 25 December 2024
Follow

Pakistan’s Christians call for protection, more rights amid Christmas celebrations in capital

  • Christianity is the third-largest religion in Pakistan with the 2023 census recording over three million Christians
  • Christians face institutionalized discrimination in Pakistan, including being targeted with blasphemy accusations

ISLAMABAD: Church leaders and Christian residents of Islamabad on Wednesday called on the Pakistan government to improve the condition of religious minorities as Christmas was celebrated in the federal capital and around the country with prayer services, parties and feasts.
One of the main services in Islamabad was held at the Our Lady of Fatima Church, which was decorated with Christmas ornaments, and had on display a nativity scene, a depiction of the birth of Jesus, often exhibited during the Christmas season around the world. Festivities at the church included a prayer service late on Christmas eve and services in the morning and during the day.
“We want the government to solve the problems of Christians,” Sylvester Joseph, the parish priest at Fatima Church, told Arab News after the morning prayer service. “We are a minority. We have problems with jobs, we have problems with discrimination. We want this to be solved.”
Christianity is the third-largest religion in Pakistan, with results from the 2023 census recording over three million Christians, or 1.3% of the total population in Pakistan. The majority of Christians in Pakistan are members of the Catholic Church or the Church of Pakistan.
Christians face institutionalized discrimination in nearly all walks of life in Pakistan and are often the target of violence by religious hard-liners and militant groups. Christians are also reserved for low-status jobs, such as working in sewers or as cleaners in homes and offices. 

Pakistani Christian community gathers to pray on the occasion of Christmas, at the Our Lady of Fatima Church in Islamabad on December 25, 2024. (AFP)

Historical churches in Pakistan are monitored and have been targeted with bomb attacks on multiple occasions.
“There are many challenges here,” Sarfaraz John, a church elder, told Arab News. “We have only one job which is cleaning. We don’t get jobs according to our education.”
He said the community was also “scared” of violence and mob attacks, referring to an incident in August 2023 when vigilantes attacked the Christian community in the city of Jaranwala after falsely accusing two Christian residents of desecrating the Qur’an. 
“We are afraid of what will happen. Our communities are afraid of what will happen,” John added. “There have been incidents like Jaranwala. We are scared.”
In May this year, at least 10 members of a minority Christian community were rescued by police after a Muslim crowd attacked their settlement over a blasphemy accusation in eastern Pakistan. 
In 2017, two suicide bombers stormed a packed church in southwestern Pakistan just days before Christmas, killing at least nine people and wounding up to 56. An Easter Day attack in a public park in 2016 killed more than 70 people in the eastern city of Lahore. In 2015, suicide attacks on two churches in Lahore killed at least 16 people, while a pair of suicide bombers blew themselves up outside a 130-year-old Anglican church in the northwestern city of Peshawar after Sunday Mass in 2013, killing at least 78 people in the deadliest attack on Christians in the predominantly Muslim country.
Minister for Law, Justice and Human Rights, Azam Nazeer Tarar, announced this month Pakistan would “soon” establish the National Commission for the Rights of Minorities, who constitute about three percent of Pakistan’s estimated population of 240 million people. In October, the chief minister of Pakistan’s Punjab, Maryam Nawaz Sharif, announced cash cards for minorities in the province, where the most number of the country’s Christians live, and vowed to double the amount for uplifting their places of worship and graveyards.

Pakistani Christian community gathers to pray on the occasion of Christmas, at the Our Lady of Fatima Church in Islamabad on December 25, 2024. (AFP)

Some Christians at the Islamabad service also said things had improved for the community in recent years. 
“We celebrate Christmas at the government level, it is much better now,” Joseph, the pastor-in-charge, said. “Our Muslim brothers meet us and wish us ‘Merry Christmas’. The situation is improving now.”
John said security arrangements by the government had also improved in recent years. 
“The government gives us security. They work with us,” he said. “There are more than 50 troops on duty at the church today. Traffic police, [paramilitary] Rangers, Islamabad police, they all work with us on Christmas.”
Naveed Arif, a banker, said the situation of minorities had “improved a lot with time.”
“Now minorities are given their rights in a proper way, I am a banker myself,” he said. “In festivals like Christmas and Easter, we are given special holidays. We are given proper provisions at other events as well … there have been a lot of changes and improvements.”


Taliban officials say Pakistan airstrikes in Afghanistan kill 46

Updated 25 December 2024
Follow

Taliban officials say Pakistan airstrikes in Afghanistan kill 46

  • Afghan defense ministry condemns the latest strikes as “barbaric, clear act of aggression”
  • Media reports say Pakistan had hit militant hideouts, no official comment from Islamabad

KARACHI: At least 46 people including women and children were killed in Pakistani airstrikes in Afghanistan’s eastern border province of Paktika, Afghan officials said on Wednesday, while there was no comment from Islamabad on the latest attack.
Pakistani security forces targeted multiple suspected hideouts of the Pakistani Taliban, also known as the Tehreek-e-Taliban Pakistan (TTP), inside neighboring Afghanistan on Tuesday, dismantling a training facility and killing several insurgents, the Associated Press reported, citing Pakistani security officials.
Suhail Shaheen, head of the Afghan Taliban’s political office in Doha, confirmed the strikes. 
“Around 46 innocent people have been killed and several others injured, which we strongly condemn,” he told Arab News.
Border tensions between the two countries have escalated since the Taliban government seized power in 2021, with Pakistan battling a resurgence of militant violence in its western border regions.
Islamabad has accused Kabul’s Taliban authorities of harboring militant fighters, allowing them to strike on Pakistani soil with impunity. Kabul has denied the allegations.
The Afghan defense ministry also issued a statement late on Tuesday condemning the latest strikes, calling them “barbaric” and “a clear act of aggression.”
“Mostly civilians, who are Waziristani refugees, were targeted, and a number of civilians including children were martyred and injured as a result of the bombings,” the statement read.
“The Pakistani side should know that such arbitrary actions are not the solution to the problems,” the statement added, vowing that the Taliban government would not let the “act of cowardice” go unanswered.
Pakistan’s Foreign Ministry spokesperson Mumtaz Zahra Baloch did not respond to requests seeking comment and the military’s media wing, the Inter-Services Public Relations (ISPR), declined to confirm the airstrikes.
The banned TTP group said in a statement the strikes had hit “the homes of defenseless refugees” on Tuesday evening, killing at least 50 civilians, including 27 women and children.
Deadly air strikes by Pakistan’s military in the border regions of Afghanistan in March that the Taliban authorities said killed eight civilians had prompted skirmishes on the frontier.
The latest strikes coincided with a visit to Kabul by Mohammad Sadiq, Pakistan’s special representative for Afghanistan, to discuss bilateral trade and regional ties. Sadiq met Sirajuddin Haqqani, Afghanistan’s acting interior minister, to offer condolences over the Dec. 11 killing of his uncle, Khalil Haqqani, the minister for refugees and repatriation, in a suicide bombing claimed by the regional affiliate of the Daesh group. 
In a post on X, Sadiq said he also met Afghan Foreign Minister Amir Khan Muttaqi and held “wide-ranging discussions,” with both sides agreeing “to work together to further strengthen bilateral cooperation as well as for peace and progress in the region.”