KARACHI: Afghanistan’s emerging situation and burgeoning import bills are keeping Pakistan’s currency under pressure which has depreciated by more than 10 percent in the last four months, said traders and analysts on Friday.
The Pak rupee did make some progress in the last two days and closed at Rs166.91 on Friday. Official data reveal the currency was hovering around the same level last year on July 29 when the country was witnessing the peak of the coronavirus pandemic.
“The situation in Afghanistan is keeping the national currency under tremendous pressure,” said Khurram Schehzad of Alpha Beta Core, a financial advisory platform. “Greenback is in a massive demand in Afghanistan since the withdrawal of the international forces.”
Local currency dealers agree with the assessment, saying about $2 million have been flowing out of the country to Afghanistan on a daily basis since the fall of Kabul.
“Afghans with dual nationality have been buying 1.5 to 2 million dollars on a daily basis from open market and taking it to their country since the American currency is now in a short supply over there,” Malik Bostan, Chairman Forex Association of Pakistan, told Arab News. “The inflow of dollars has stopped in the neighboring country, and Afghanistan's entire banking system has collapsed.”
“Previously, Pakistan received $5 million to $7 million from Afghanistan every day since currency was cheap over there and salary payments were mostly made in dollars,” he added.
Apart from the situation in Afghanistan, the Pakistani rupee is also weakening against greenback due to the country’s growing trade deficit.
Pakistan has recorded the highest trade deficit in August when its import bill stood at $6.3 billion and its export revenue was $2.25 billion, causing a trade deficit of $4.06 billion. Previously, the country had recorded its highest deficit of $3.77 billion in June 2018.
“The situation indicates that dollar is in a short supply to meet the demand of importers which is exerts a significant pressure on the national currency,” Samiullah Tariq, director research at the Pakistan-Kuwait Investment, told Arab News.
“In July, the current account deficit was $773 million, but it seems that it is going to be higher for August, though the remittance figures have yet not been released,” he added.
The State Bank of Pakistan reported on Thursday the country had $27.22 billion in foreign reserves. The country’s forex position was also strengthened since it received $2.75 billion from the International Monetary Fund (IMF) last week. However, this build-up has also failed to cool the currency market where the Pakistani rupee remains under pressure.
“The policy of the government or the central bank seems to be that it is not going to use its forex reserves to defend the rupee,” Tariq commented.
US withdrawal from Afghanistan, high import bill weaken Pakistan’s currency — traders
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US withdrawal from Afghanistan, high import bill weaken Pakistan’s currency — traders
- Local currency dealers say nearly $2 million have been flowing to Afghanistan from Pakistan on a daily basis since the international military pullout
- The Pakistani currency has lost nearly 10 percent of its value against the US dollar in the last four months
WHO says fake finger markings hampering Pakistan’s polio eradication efforts
- Health officials terminated polio team members found involved in 60 such cases in Balochistan province in August
- Pakistan has reported 49 new polio cases this year mainly from Khyber Pakhtunkhwa and Balochistan provinces
ISLAMABAD, PESHAWAR & QUETTA: The World Health Organization said on Friday “fake finger markings” were one of the major factors hampering Pakistan’s polio eradication efforts, as the South Asian country reported the 49th case of the virus this week.
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The nation’s polio eradication campaign has hit serious problems with a spike in reported cases this year that has raised doubts over the quality of vaccination reporting and prompted officials to review their approach to stopping the crippling disease.
Polio, a disease transmitted through sewage which can cause crippling paralysis particularly in young children, is incurable and remains a threat to human health as long as it has not been eradicated. Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain.
“Some of the gaps and issues that were identified during campaigns included fake finger marking and altered campaign modalities mainly in South Khyber Pakhtunkhwa,” WHO spokesperson Maryam Younas told Arab News on Friday in answers to written questions.
Local officials say parents suspicious of mass immunization campaigns have been getting hold of special markers, used by health workers to put a colored spot on the little fingers of children to identify that they have been vaccinated.
The fake finger marking, sometimes done in collusion with health workers, hide the true scale of refusal rates and thus gaps in vaccination.
Provincial authorities in Pakistan’s Khyber Pakhtunkhwa province, where 10 cases have been confirmed this year, and Balochistan, where 24 were reported, also said fake finger markings were an obstacle for eradication efforts.
In August this year, the Balochistan Provincial Emergency Operation Center said it had exposed a nexus between parents refusing polio drops for their children and polio teams involved in fake finger marking. Around 60 cases of fake finger markings were identified in various districts of Balochistan and the teams involved were terminated.
“Fake finger markings, low immunization drives, and malnourished children are three prime causes for this rapid surge in polio cases,” Dr. Aftab Kakar, the provincial team lead for the National Stop Transmission of Polio (N-Stop) in Balochistan, said.
The KP Governor’s Focal Person for polio, Tariq Habib, also said fake finger-marking had led to “decreased trust and effectiveness in vaccination efforts.”
The WHO spokesperson suggested that the targeted vaccination of children was pivotal for achieving success against polio, adding that it was essential to focus on children who were “consistently missed due to operational gaps, vaccine hesitancy, security issues, and boycotts.”
This year, 24 cases of polio have been reported in Balochistan, 13 in Sindh, 10 in Khyber Pakhtunkhwa and one each in Punjab and the federal capital of Islamabad. In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021.
Pakistan’s polio eradication program began in 1994, and the number of cases has declined dramatically since then. But efforts to eradicate the virus have for years been undermined by opposition from some religious hard-liners, who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams.
In July 2019, a vaccination drive in Khyber Pakhtunkhwa was thwarted after mass panic was created by rumors that children were fainting or vomiting after being immunized.
Public health studies in Pakistan have shown that maternal illiteracy and low parental knowledge about vaccines, together with poverty and rural residency, are also factors that commonly influence whether parents vaccinate their children against polio.
Pakistan’s Punjab launches 10-year smog plan amid record air pollution
- Government has distributed super seeders to farmers to support precision seeding
- 800 brick kilns demolished instead of being sealed which briefly happens each year
ISLAMABAD: Punjab Senior Minister Marriyum Aurangzeb on Friday announced the provincial government had launched a 10-year smog mitigation plan, as record-high air pollution levels have triggered hundreds of hospitalizations, school closures and stay-at-home orders in several districts of the Pakistan’s most populous province.
On Friday, the provincial capital of Lahore, home to 13 million people, had the worst air quality of any city in the world, according to live readings by IQAir, a Swiss air quality monitoring company.
Toxic smog has enveloped Lahore and at least 17 other districts in Punjab since last month, where health officials have been forced to close down schools and government offices, among other measures.
“For the first time, Punjab has developed a 10-year climate change policy,” Aurangzeb said while addressing a press conference in Lahore, saying Punjab Chief Minister Maryam Nawaz Sharif was “personally” monitoring the plan’s implementation.
Pakistan, like neighboring India, battles pollution each year as temperatures fall and cold air traps construction dust, vehicle emissions and smoke as farmers illegally burn paddy stubble to clear fields. Prohibited brick-kilns and smoke-emitting vehicles also contribute to the problem.
Speaking about measures taken to combat air pollution, the minister said the Punjab government had distributed super seeders to farmers, bearing 60 percent of their cost while farmers paid the remaining 40 percent. The no-till planters are designed for precision seeding which helps farmers contribute to cleaner air, improved soil health, and a more sustainable agricultural ecosystem.
“We have an aim of distributing 5,000 super seeders in Punjab by July next year,” the minister said. “We have now engaged more companies to increase production of super seeders.”
Aurangzeb also said authorities had demolished 800 brick kilns.
“We did not seal them this time because they would begin operating again from January if they were only sealed,” she added.
The minister said environmental control systems to detect smoke had been set up through loans provided by the Punjab government.
“More than 90 small and medium sized industries have installed the system using this loan,” she said, encouraging people to help with the afforestation of Lahore.
“Forest cover of Lahore should be 36 percent on international standard, it is 3 percent now,” Aurangzeb said. “Green master plan of Lahore has been made. Implementation has started. Forest cover is planned to be increased, which is a part of this plan.”
Earlier this week, the government of Punjab closed all high schools in the province until Nov. 17 due to persisting smog.
Primary schools and government offices had already been closed until Nov. 17 in many districts of Punjab earlier this month, with school closures likely to affect the education of more than 20 million students, according to associations representing private and government schools.
Authorities in 18 districts of Punjab also closed all public parks, zoos and museums, historical places, and playgrounds for ten days last week.
On Friday, a court in Lahore ordered the government to shut all markets after 8pm. Authorities have already banned barbecuing food without filters and ordered wedding halls to close by 10pm.
On Monday, the UN children’s agency said the health of 11 million children in Punjab province was in danger because of air pollution.
Daesh group gunmen kill politician in Pakistan
- Daesh group Khorasan branch said its “soldiers shot an official of the apostate political party”
- Daesh militants have killed at least 39 people in targeted attacks, bomb explosions this year, police say
PESHAWAR: Gunmen from the regional branch of the Daesh group have killed a politician affiliated with a religious political party in northwest Pakistan, police and the militants said Friday.
“Jamaat-e-Islami Bajaur leader Sufi Hameed was leaving the mosque after offering prayers after sunset (Thursday) when two masked men on a motorcycle opened fire on him,” senior police official Waqar Rafiq told AFP.
The official said the attackers escaped after shooting the politician in Bajaur district, near the border with Afghanistan where militants remain active.
The Daesh group Khorasan branch (IS-K) said its “soldiers shot an official of the apostate political party,” in a message on Telegram.
The local chapter of the group accuses religious political parties of going against strict religious preachings and supporting the country’s government and the military.
IS-K has recently carried out several attacks against political parties, including a suicide bomb blast at a rally in Bajaur last year which killed at least 54 people including 23 children.
“In this year alone, they have killed at least 39 people in targeted attacks and bomb explosions” in Bajaur, a senior local security official told AFP on the condition of anonymity.
In both Khyber Pakhtunkhwa province, where Bajuar is located, and Balochistan province in the southwest, armed militants regularly target security forces and state representatives.
Militants operating in Pakistan include Tehreek-e-Taliban Pakistan (TTP), the country’s homegrown Taliban group.
Pakistan has seen a sharp rise in militant attacks in regions bordering Afghanistan since the Taliban returned to power in the country in 2021.
US urges sports diplomacy between Pakistan, India following ICC Champions Trophy row
- State Department Deputy Spokesperson Vedant Patel highlights the role of sports in “connecting people”
- India has refused to travel to Pakistan for ICC Champions Trophy slated to be held from Feb-March next year
ISLAMABAD: US State Department Deputy Spokesperson Vedant Patel on Friday encouraged sports diplomacy between Pakistan and India amid a row over New Delhi’s refusal to send its cricket team to neighboring Pakistan for the ICC Champions Trophy.
The ICC informed Pakistan last week India had declined to play any games in Pakistan during the Champions Trophy, which is scheduled to be held from Feb. 19 - March 9. The Pakistan Cricket Board (PCB) has sought clarification from the ICC on the refusal.
“Bilateral relationships are certainly not something for us to get in the middle of but sports is certainly a potent and connecting force,” Patel said during a weekly press briefing. “You have seen the secretary and this department really prioritize the role that sports diplomacy has in connecting people.”
Patel added that bilateral relations between Pakistan and India ought to be discussed between the countries on their own through sports orother means.
“At the end of the day, sports really connects so many people and is a great way for the human-to-human and people-to-people ties this administration has really prioritized,” he said.
India has not toured Pakistan since 2008 because of soured political relations between the neighbors, who play each other only in global multi-team tournaments. Pakistan hosted the Asia Cup last year but the winners India played all their matches in Sri Lanka under a “hybrid model.”
The PCB has ruled out a similar arrangement for the 2025 Champions Trophy despite the Indian Cricket Board (BCCI) maintaining its stance of not sending a team to Pakistan, citing government advice.
Pakistan unveils first National Climate Finance Strategy on COP29 sidelines
- Strategy aimed at mobilizing financial resources and investments for climate mitigation and adaptation
- Pakistan is ranked 5th most vulnerable country to climate change, according to Global Climate Risk Index
ISLAMABAD: Pakistan has unveiled its first-ever National Climate Finance Strategy (NCFS), aimed at mobilizing financial resources for climate mitigation and adaptation, Radio Pakistan reported on Friday.
The strategy was launched by Federal Minister for Finance, Muhammad Aurangzeb, and the Prime Minister’s Coordinator on Climate Change, Romina Khurshid Alam, at the Pakistan Pavilion in Baku on the sidelines of the two-week UN-led global climate conference (COP29).
“[Strategy] outlines a comprehensive framework to scale up climate-related investments, attract international funding, and strengthen domestic financial systems,” Radio Pakistan reported.
“The strategy provides a roadmap for Pakistan to systematically access climate finance from a variety of domestic and international sources, reinforcing the country’s commitment to the Paris Agreement and its climate resilience goals.”
Speaking on the occasion, Aurangzeb said the strategy would enable Pakistan to leverage international, domestic, and private finance to support climate resilience efforts.
The strategy prioritizes sectoral resilience and the development of climate-smart policies across key sectors such as agriculture, infrastructure, and urban planning, the finance minister said, adding that NCFS identified key financial instruments and channels for climate action, aiming to close the estimated $348 billion climate finance gap facing the country by 2030.
The NCFS also incorporates a new National Climate Finance Portal that will track climate finance inflows and outflows, ensuring transparency and accountability.
Pakistani Prime Minister Shehbaz Sharif, who spoke at a number of events at COP29 earlier this week, used the forum to highlight the need to restore confidence in the pledging process and increase climate finance for vulnerable, developing countries.
The main task for nearly 200 countries at the COP29 summit from Nov. 11-22 is to broker a deal that ensures up to trillions of dollars in financing for climate projects worldwide.
Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion. International donors pledged over $9 billion last January to aid Pakistan’s flood recovery but officials say little of the promised funds have been received so far.
Speaking on the sidelines of the World Leaders’ Climate Action Summit on Tuesday, Sharif said developing countries would need an estimated $6.8 trillion by 2030 to implement less than half of their current nationally determined contributions (NDCs), or national action plans for reducing emissions and adapting to climate impacts defined by the Paris Agreement.
Most of the world’s climate-friendly spending so far has been skewed toward major economies such as China and the United States. Africa’s 54 countries received just 2 percent of global renewable energy investments over the last two decades.
