KARACHI: Pakistan’s import of automobiles and other vehicles increased by 579 percent during the month of October amid widening trade deficit and depreciating national currency, though industrial stakeholders said it was still below the pre-pandemic level.
According to the data compiled by the State Bank of Pakistan, the country’s trade deficit increased by 106 percent to $7.6 billion during the July-October 2021 period of the current fiscal year as the nation’s imports increased by 65.4 percent to $25.1 billion from $15.1 billion last year.
The statistics related to the massive import of automobiles and other vehicles were released by the Trade Development Authority of Pakistan which indicated the sector's import bill had jumped from $20.26 million in October 2020 to $137.66 million last month, reflecting a 579 percent increase.
Meanwhile, the overall import of the transport group, including completed and semi-completed vehicles along with spare parts, increased by 140 percent to $1.5 billion during July-October 2021 (4MFY22) as compared to the corresponding period of the last fiscal year.
“The recent import of cars has witnessed an increase of 579 percent due to the arrival of the vehicles booked earlier, though it is still below the pre-COVID imports,” chairman of All Pakistan Motor Dealers Association HM Shahzad told Arab News on Tuesday. “The availability of ships and arrival of shipments have played a role in the rising number of auto imports.”
Pakistan’s growing imports have exerted tremendous pressure on the national currency, which closed at Rs174.89 to a dollar on Tuesday, gaining 0.23 percent against the previous close.
The sale of locally assembled passenger cars increased by 71 percent in the first four months of the current fiscal year from 43,865 units to 74,952 units, according to the Pakistan Automotive Manufacturers Association.
Car sales in October 2021 jumped by 45 percent from 11,997 units in October 2020 to 17,413 units last month. However, they declined by over eight percent on a monthly basis when compared to the statistics of September 2021.
Analysts attributed the growth in auto sales to the overall economic expansion amid a low-interest regime.
“The rise in auto demand has emerged within the context of economic growth triggered by the current interest rate scenario of seven to 7.25 percent which is very low,” Arsalan Hanif, an auto analyst at the Arif Habib Limited, commented. “The auto sales have increased due to consumer financing since the purchasing power of consumers has surged.”
Pakistan’s central bank recently took measure to limit auto financing through changes in regulations which effectively prohibit financing for imported vehicles.
It reduced the maximum tenure of auto finance from seven to five year and personal loan from five to four years.
The bank limited the auto financing availed to a single individual to not more than Rs3 million and increased the minimum down payment for auto financing from 15 to 30 percent.
Analysts said, however, the impact of the central bank’s measures would be visible after the first quarter of the next year.
“The impact is not visible currently since the auto delivery period has gone up to January and February and cars have already been booked and in the delivery pipeline,” Hanif said.
Dealers said the import and local assembling of passenger cars combined were still not meeting the growing demand in Pakistan which hovered around one million vehicles.
“The demand is not being met even through local assembling and imports combined since it is somewhere around a million vehicles,” Shahzad said.
Some dealers maintained the impact of price hike by local assemblers had also affected the sales of the imported vehicles.
“In a couple of years, the price of locally assembled cars has jacked up by Rs0.5-0.7 million which has also impacted the prices of imported cars,” Mirza Mehmood Baig, a motor dealer, said. “The sales have dropped because of higher prices.”
Dealers said due to the higher rates of local and imported vehicles, the major buying and selling activity was now gaining momentum in the market of used cars.
Pakistan’s car imports increased by 579 percent in October amid widening trade deficit
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Pakistan’s car imports increased by 579 percent in October amid widening trade deficit
- The country’s central bank has taken measures to limit auto financing, though the impact of the policy is likely to become visible in the next few months
- Industrial stakeholders say Pakistan’s auto imports are still below the pre-pandemic level
Public gatherings banned in Islamabad for two months ahead of opposition protest
- District magistrates bans gathering of more than five people for next two months
- Ban comes as Pakistan Tehreek-e-Insaf is planning protest in Islamabad on Nov. 24
ISLAMABAD: A two-month ban on public gatherings has been imposed in Pakistan’s federal capital, Islamabad, a notification from the district magistrate said on Monday, days ahead of a planned protest march by the party of jailed former Prime Minister Imran Khan.
The Pakistan Tehreek-e-Insaf party (PTI) announced last week it would lead a ‘long march’ to the capital on Nov. 24 over alleged rigging in Feb. 8 general elections and to call for the release of political prisoners, including Khan, and in support of the independence of the judiciary.
The party’s recent rallies and marches have been thwarted by similar bans on public gatherings imposed under Section 144 of the Pakistan Penal Code which allows the government to prohibit various forms of political assembly, gatherings, sit-ins, rallies, demonstrations, and other activities for a specified period.
In a notification dated Nov. 18, the district magistrate, without naming the PTI, said processions being planned in the capital “can disrupt public place and tranquility and keeping in view the current law & order and security environment, it is necessary to control such types of illegal activities which present a threat to public peace, tranquility and maintenance of law & order.”
He added that the demonstrations would cause “public annoyance or injury, endanger human life and safety, pose a threat to public property, and may lead to a riot or an affray including sectarian riot within the revenue/territorial limits of district Islamabad.”
In light of this, all gatherings of more than five people are banned in the capital, the notification said:
“This order shall come into force with immediate effect and shall remain in force for a period of TWO MONTHS.”
Khan has been in jail since August 2023 and has faced dozens of cases since he was removed as prime minister in 2022 after which he launched a protest movement against a coalition of his rivals led by current Prime Minister Shehbaz Sharif and backed by the all-powerful military, which denies interfering in politics.
Khan says cases against him, which disqualified him from contesting the February elections, are politically motivated. His party has held several protest rallies in recent months to build public pressure for its leader’s release.
With regards to the latest protest, the PTI’s first demand is a rollback of recent constitutional amendments like the 26th amendment that the PTI says is an attempt to curtail the independence of the senior judiciary. It is also calling for the release of party leaders and supporters and a return of what it describes as a “stolen mandate” after Feb. 8 general elections.
Pakistan’s government denies being unfair in its treatment of Khan and his party and the election commission rejects allegations the elections were rigged. The government also says recent amendments related to the judiciary are meant to smooth out its functioning and tackle a backlog of cases.
Pakistan Stock Exchange may gain at least 27% by end of 2025 — Bloomberg
- Benchmark KSE-100 Index forecast to increase to 127,000 points by Dec. 2025, a 34% rise, from 94,704 points it closed on Friday
- Key index advanced as much as 0.6% on Monday, taking gains to more than 50% this year, the second best performer globally
ISLAMABAD: Pakistan’s stocks are expected to advance by more than a quarter by the end of next year as the nation’s economy shows improvement under a loan program with the International Monetary Fund and the currency stabilizes, Bloomberg reported on Monday, quoting two brokerage houses.
The benchmark KSE-100 Index is forecast to increase to 127,000 points by December 2025, or a 34% rise, from the 94,704 points it closed last Friday, according to Topline Securities Ltd. in a report announced on Nov. 16. Arif Habib Ltd. targets the index to reach 120,000 points, a gain of 27%.
“The stage is set for a potential market re-rating with declining interest rates, a stable rupee, and improving macroeconomic indicators,” Karachi-based brokerage Arif Habib commented in a report.
Pakistan’s economy has stabilized with inflation easing from record levels that has allowed the central bank to cut the interest rate for four straight meetings to 15 percent, the lowest in two years.
The key index advanced as much as 0.6% on Monday, taking its gains to more than 50% this year, the second best performer globally, according to data compiled by Bloomberg.
The equity market will be offering a 37% return including 10% dividend yield by the end of 2025 because of economic stability and falling bond yields, Karachi-based Topline said in a separate report.
Pakistan is also increasingly attracting the attention of foreign investors, particularly in its debt and equity markets, said Arif Habib.
Pakistan says taking steps to put climate change studies in national curriculum
- PM’s aide says government has developed modules to build climate awareness from primary to university levels
- Says teachers across Pakistan are being equipped with the skills and tools to deliver climate education effectively
ISLAMABAD: Pakistan is taking steps for climate change studies to become a standard part of the school curriculum from the primary to university levels and training teachers to become key agents in creating awareness in young people, Coordinator to the Prime Minister on Climate Change, Romina Khurshid Alam, said on Monday.
The United Nations Education, Science and Culture Organization, UNESCO, has said environmental studies should be standard teaching in all countries by 2025.
Such studies are crucial for a country like Pakistan, one of the most vulnerable to climate change according to the Global Climate Risk Index. Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country’s economic struggles and high debt burden impinged its ability to respond to the disaster.
“Education is the cornerstone of sustainable development and climate action for a resilient and environmentally-sustainable society,” the PM’s climate aide said in a keynote address at an event on the sidelines of COP29 global Climate Summit, which is taking place from Nov. 11-22.
“Our commitment to greening education stems from the belief that equipping our youth with climate knowledge is fundamental to achieving long-term resilience and sustainability.”
Outlining steps to mainstream climate education into the national education system, Alam said the government had developed educational modules tailored to build climate awareness from the primary to university levels.
“These modules emphasize the science of climate change, its impacts, and actionable solutions, ensuring that students grow up with a sense of responsibility toward the environment,” the aide said.
“These efforts also extend to training teachers as key change agents in this mission … Teachers across Pakistan are being equipped with the skills and tools to deliver climate education effectively … and community-based programs have been introduced to create broader awareness and engage parents, caregivers and local leaders in the process of greening education.
“By greening our education systems, we are equipping the next generation with the knowledge, skills, and values needed to address climate change and build a resilient future,” Alam added.
Finance Minister Muhammad Aurangzeb said last month Pakistan was targeting around $1 billion in a formal request for funding from the IMF facility that helps low and middle income countries mitigate climate risk.
The International Monetary Fund had already agreed a $7 billion bailout for Pakistan, but has further funding available via its Resilience and Sustainability Trust (RST).
The RST, created in 2022, provides long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.
Pakistan is also in talks with the Asian Infrastructure Investment Bank for a credit enhancement for a planned Panda bond, Aurangzeb said. It is targeting an initial issuance of $200-250 million by the end of June.
Pakistani Prime Minister Shehbaz Sharif, who spoke at a number of events at COP29 last week, used the forum to highlight the need to restore confidence in the pledging process and increase climate finance for vulnerable, developing countries. He 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.
The main task for nearly 200 countries at the COP29 summit is to broker a deal that ensures up to trillions of dollars in financing for climate projects worldwide.
Pakistan’s current account surplus hits $349 million in October, signaling economic turnaround
- Last year, Pakistan posted a current account deficit of $290 million during the same month, as per official records
- This is the third consecutive month in which Pakistan has recorded a surplus, also the highest during this year
ISLAMABAD: Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period, according to the State Bank of Pakistan (SBP) on Monday.
The current account reflects a nation’s transactions with the rest of the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
Last month’s current account surplus contrasts sharply with the $290 million deficit recorded in October 2023, highlighting a significant improvement in the country’s economy.
“The external current account recorded a surplus of $349 million in October 2024, after showing a surplus of $86 million and $29 million in September 2024 and August 2024 respectively,” the central bank said in a brief statement.
Pakistan has faced economic challenges in recent years, including high inflation, a depreciating currency, and dwindling foreign reserves.
In response, the government has implemented a series of reforms aimed at stabilizing the economy, including securing a $7 billion bailout from the International Monetary Fund (IMF) in September, which is contingent upon measures such as broadening the tax base, reducing energy sector deficits and privatizing state-owned enterprises.
The consecutive current account surpluses, culminating in the substantial $349 million in October, suggest that Pakistan is transitioning from mere stabilization to a phase of economic growth.
This positive trend is bolstered by increased remittances from overseas Pakistanis, which reached a record $11.8 billion in the first four months of the fiscal year, marking a 35 percent year-on-year growth.
Pakistani authorities have emphasized the importance of continuing prudent fiscal and monetary policies to consolidate these gains and ensure long-term economic stability.
The country’s finance chief, Muhammad Aurangzeb, said a day earlier the international lending agencies had acknowledged the improvement in the national economy, though he added that they wanted the government to continue with stringent structural reforms.
“There is no room for complacency,” he added.
Marcus Stoinis lets rip as Australia crush Pakistan for T20 series whitewash
- After opting to bat, Pakistan raced to 62-1 before crumbling to 117 all out in the 19th over
- Stoinis slammed five sixes and five fours in his 27-ball masterclass, staying unbeaten at 61
HOBART: Marcus Stoinis slammed five huge sixes in an unbeaten 61 as Australia crushed Pakistan by seven wickets in Hobart on Monday to secure a 3-0 T20 series whitewash.
Chasing a meagre 118, the hosts hit the target in the 12th over to hand Pakistan a reality check after the visitors won the preceding ODI series 2-1.
Stoinis was unstoppable once he got going, also blasting five fours in his 27-ball masterclass.
“It’s really nice to get another win and go 3-0 up,” said Australia skipper Josh Inglis.
“When he’s going like that, it’s really hard to stop,” he added of Stoinis. “One of those sixes was probably the biggest I’ve seen.”
The match at Bellerive Oval was a dead rubber after Australia won a rain-hit match in Brisbane by 29 runs and then in Sydney by 13 runs.
After opting to bat, Pakistan raced to 62-1 before crumbling to 117 all out in the 19th over with Babar Azam top-scoring on 41 and Aaron Hardie taking 3-21.
Jake Fraser-McGurk began the run chase with consecutive boundaries from Shaheen Shah Afridi before the speedster dismissed Matt Short for two, caught at mid-on by Irfan Khan.
Fraser-McGurk (18) followed next over, undone by the sheer pace of Jahandad Khan in another mis-fire by the 22-year-old.
But Inglis kept the scoreboard ticking over alongside Stoinis, who let rip in the ninth over, punishing Haris Rauf for 20, including a massive six that landed on the stadium roof.
Their 55-run partnership ended when Inglis scooped Abbas Afridi to Rauf on 27, which brought Tim David to the crease.
He was bystander to Stoinis, who brought up his fifth T20 half-century with another giant six before seeing them home.
“There’s lots of positives, the way some of the players batted and bowled, these youngsters will come good,” said Salman Agha, Pakistan’s skipper for the night with Mohammad Rizwan rested.
“It’s a big achievement for us to win a one-day series here after 22 years, we could have done better in the T20 series but we’ll come back stronger.”
Sahibzada Farhan opened the Pakistan batting with Azam in the absence of Rizwan.
But on a chilly evening, he lasted just seven balls before top-edging a short one from Spencer Johnson — fresh from taking five wickets in Sydney — to Xavier Bartlett.
Azam produced a series of elegant strokes as he and Haseebullah Khan put on a quickfire 44 for the second wicket.
But Kahn was no match for Adam Zampa’s spin, collecting an outside edge on 24 to Short.
Pakistan’s woes mounted with Usman Khan (3) caught on the ropes after slogging Hardie and Agha trapped lbw by the same bowler for one.
It left them reeling on 72-4 at the halfway mark and when Zampa bowled Azam and Khan (10) was needlessly run out they were in deep trouble.
Shaheen Shah Afridi blasted only six of the innings but didn’t last as the tailenders were mopped up.
