KARACHI: Pakistan’s central bank on Tuesday further tightened its monetary stance by raising the key policy rate by 100 basis points to 9.75 percent amid rising inflationary pressure in the economy.
The State Bank of Pakistan (SBP) took the decision after the country’s inflation was recorded at 11.5 percent in November 2021, while core inflation in the urban and rural areas rose to 7.6 and 8.2 percent, respectively.
“At today’s meeting [on Tuesday], the Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 9.75 percent,” the SBP announced in a statement issued after the policy committee meeting.
“The goal of this decision is to counter inflationary pressures and ensure that growth remains sustainable,” the statement added.
The central bank said the indicators of economic activity had remained robust since its last meeting in November while inflation and the trade deficit had further risen due to high global prices and domestic economic growth.
The SBP expects inflation to average nine to 11 percent due to recent higher than expected outturns during the ongoing fiscal year. The pick-up in inflation has been broad-based, with electricity charges, motor fuel, house rent, milk and vegetable ghee among the largest contributors.
“Looking ahead, based on this momentum and the expected path of energy tariffs, inflation is likely to remain within the revised forecast range for the remainder of the fiscal year,” the statement added.
As global commodity prices retrench, administered price increases dissipate, and the impact of demand-moderating policies materializes, the central bank believes inflation is likely to decline toward the medium-term target range of five to seven percent during FY23.
On the external side, despite record exports, high global commodity prices contributed to a significant increase in the import bill. As a result, the November trade deficit rose to $5 billion based on the data provided by the Pakistan Bureau of Statistics, said the SBP.
The central bank informed the MPC expected monetary policy settings to remain broadly unchanged in the near-term.
It also maintained the economic growth during the current fiscal year was expected to be close to the upper end of the forecast range of four to five percent.
“This projection factors in the expected impact of today’s interest rate decision,” the SBP said, adding: “The emergence of the new Coronavirus variant, Omicron, poses some concerns, but at this stage there is limited information about its severity.”
The bank noted that Pakistan had successfully coped with multiple waves of the virus, which supported a positive outlook for the economy.
Pakistan's central bank raises key policy rate by 1 percent amid rising inflation
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Pakistan's central bank raises key policy rate by 1 percent amid rising inflation
- The State Bank of Pakistan further tightened its monetary stance after the rate of inflation reached 11.5 percent in November
- The central bank expects inflation to average nine to 11 percent this fiscal year due to the recent higher than expected outturns
Pakistan urges climate justice at COP29, highlights gaps in global commitments
- It highlights mismatch between developed nations’ pledges and developing countries’ needs
- Romina Alam says Pakistan is forced into debt to manage the fallout of climate disasters
ISLAMABAD: Pakistan’s top climate change official on Sunday voiced concern over the widening gap between global climate commitments and the needs of vulnerable nations as COP29 ended in Azerbaijan.
Addressing the closing plenary, Romina Khurshid Alam, Prime Minister’s Coordinator on Climate Change, emphasized Pakistan’s acute vulnerability to phenomenon, citing devastating floods, glacial melt, extreme heatwaves and droughts that have affected millions and strained the country’s resources.
“Climate justice is not charity; it is a moral obligation,” she said during her statement, criticizing the mismatch between developed nations’ pledges and the requirements of developing countries to implement their climate plans.
The Pakistani official welcomed the adoption of the Baku Climate Unity Pact, though she expressed “mixed feelings” about the outcomes.
“We note critical gaps in the decisions adopted here,” she said. “Global solidarity is important, but the goals set by developed countries fall short of addressing the needs of developing nations to implement their NDCs [Nationally Determined Contributions] and National Adaptation Plans.”
Alam highlighted the inequity in the international climate finance system, pointing out that countries like Pakistan are being forced into debt to manage the fallout of climate disasters.
“The climate crisis is turning into a debt crisis because the means of implementation are not clear,” she added.
The Pakistani official urged all parties to return to the negotiating table with renewed determination ahead of COP30.
“Multilateralism remains the cornerstone of Pakistan’s climate diplomacy, and we hope for greater equity and commitment in addressing outstanding critical issues,” she added.
Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. Apart from floods, droughts and heatwaves, the country’s eastern cities in Punjab have also witnessed unprecedented smog, taking the AQI level as high as 2,000.
Imran Khan’s party decries ‘crackdown’ as caravan nears Punjab amid government’s protest ban
- Government says it will not allow anyone to disrupt public order amid Belarusian delegation visit to Pakistan
- PTI caravan from KP expect resistance from federal authorities near Punjab, plans to camp overnight if needed
ISLAMABAD/GHAZI BAROTHA: Sporadic clashes erupted near Islamabad on Sunday as jailed ex-premier Imran Khan’s supporters from nearby Rawalpindi tried to enter the capital in response to a protest call, while their party leaders criticized what they described as a government “crackdown” to block the demonstration.
Khan’s Pakistan Tehreek-e-Insaf (PTI) has launched a “long march” to Islamabad, seeking the release of its founding leader after more than a year of his incarceration on charges it claims are politically motivated.
The party is also protesting alleged rigging in February’s general elections and raising concerns about judicial independence, which it says has been undermined by recent constitutional amendments, a claim the government denies.
Speaking to Arab News, Sayed Zulfikar Bukhari, a senior PTI leader and close aide to Khan, expressed dismay at the government’s response, saying his party only wanted to hold a peaceful protest.
“There is a heavy crackdown in Rawalpindi, as they [the law enforcement officials] have shot rubber bullets, teargas and also picked up people,” he said.
“We just want to do a peaceful protest,” he added. “We will continue [the demonstration] for days to come because we have the right to peaceful assembly and protest.”
Arab News reached out to police officials for comment but did not receive a response.
SECURITY MEASURES
Interior Minister Mohsin Naqvi toured Islamabad, Rawalpindi and Attock by air on Sunday to review security arrangements, expressing satisfaction with the measures and reiterating that the government would take every step to maintain law and order in Islamabad.
“The government has made every possible effort to protect the lives and property of citizens,” Naqvi said, warning that “troublemakers will be dealt with strictly according to the law.”
He added that police, paramilitary Frontier Corps and Rangers were performing their duties with vigilance.
The government has described PTI’s protest as a “deliberate conspiracy” against the country’s “honor,” citing its timing as a 68-member Belarusian delegation arrived in Islamabad for bilateral economic talks.
President Aleksandr Lukashenko is scheduled to arrive in the federal capital on Monday, with officials characterizing the PTI march as an attempt to sabotage Pakistan’s economic recovery.
Naqvi underscored earlier in the day that no one would be allowed to disrupt public order in the federal capital during the visit.
PTI CARAVAN
Meanwhile, the PTI convoy led by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur left Peshawar around 1:30 p.m. and reached Swabi in the evening, where it was joined by protesters from across the province.
The caravan then proceeded to Ghazi Barotha near Punjab, where it expects resistance from federal authorities.
Hajji Fazal Elahi, a PTI provincial lawmaker, told Arab News the party workers were determined to reach D-Chowk, the protest venue in Islamabad.
“There are hurdles as the government has placed barriers in different places. We will try our best to remove them, but if we don’t succeed, we’ll spend the night here,” he said, referring to Ghazi Barotha.
“We will go to D-Chowk and cross all the barriers, even if it takes a day or two,” he added.
Elahi also acknowledged challenges due to “insufficient machinery” for clearing blockades, adding that the group was prepared to camp at their current location if necessary.
PTI leaders remain defiant, with Gandapur vowing to reach the federal capital “at any cost.”
The party has hinted at an indefinite sit-in in Islamabad, pledging not to return until their demands are met by the government.
Pakistani authorities broker seven-day ceasefire between warring factions in Kurram
- Three-day clashes have killed 82 and injured more than 150, according to local officials
- KP administration sent delegation to the area, convincing people to settle disputes amicably
PESHAWAR: Following days of clashes that left at least 82 people dead and injured more than 150 in Pakistan’s northwestern Kurram district, provincial authorities in Khyber Pakhtunkhwa (KP) said on Sunday the warring tribes had agreed to temporarily halt attacks and enforce a seven-day ceasefire.
The violence in the restive tribal district bordering Afghanistan began on Thursday when gunmen attacked a convoy carrying members of the minority Shiite community, killing 41 people.
Clashes intensified over the next two days, with sporadic gunfire reported in multiple areas of the district, taking the death toll to 82, according to local officials.
“Both sides agreed on a seven-day ceasefire and to return each other’s prisoners and bodies,” provincial government spokesperson Barrister Muhammad Ali Saif said in a statement.
The development comes just a day after KP Chief Minister Ali Amin Gandapur said the provincial authorities were working toward a ceasefire, adding they would formulate a strategy to address such deadly incidents in consultation with local elders.
Gandapur chaired a meeting via video link to evaluate the situation with officials after his administration dispatched a delegation to Kurram to engage with tribal leaders.
“After meeting Shiite elders a day before, today the jirga [tribal council] members met with Sunni elders, convincing both sides to implement the seven-day ceasefire and settle their disputes amicably,” Saif added.
The clashes in Kurram mark one of the deadliest incidents in the region in recent years, following outbreaks of sectarian violence in July and September that killed dozens.
The KP chief minister noted on Saturday establishing peace in the area was his government’s top priority.
Around 300 families fled on Saturday as gunfights involving both light and heavy weapons continued into the night. However, no fresh casualties were reported on Sunday morning.
Police have regularly struggled to stem violence in Kurram, which was part of the semi-autonomous Federally Administered Tribal Areas until its merger with Khyber Pakhtunkhwa in 2018.
Earlier on Sunday, KP’s Law Minister Aftab Alam Afridi said the provincial administration’s priority was to broker a ceasefire.
“Once that is achieved, we can begin addressing the underlying issues,” he said.
Several hundred people demonstrated against the Kurram violence in Pakistan’s two largest cities, Lahore and Karachi, reflecting nationwide concern over the situation.
With inputs from AFP
Zimbabwe stuns new-look Pakistan in rain-affected first one-day international
- Pakistan limped to 60-6 in 21 overs before rain denied further play, giving Zimbabwe 80-run win
- The hosts now have a 1-0 lead against Pakistan in the ODI series ahead of three T20 matches
BULAWAYO, Zimbabwe: All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method in the rain-affected first one-day international against a new-look Pakistan white-ball team on Sunday.
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out by sharing a 62-run eighth wicket stand with number nine batter Richard Ngarava, who top-scored with 48.
Under overcast conditions, Raza picked up two wickets in one over as Pakistan limped to 60-6 in 21 overs before it rained and denied further play as Zimbabwe took a 1-0 lead in the three-match series.
Pakistan’s second-string new ball bowlers – debutant Aamer Jamal and Mohammad Hasnain – couldn’t make an impact on Zimbabwe’s openers after the visitors had rested frontline pacers Shaheen Shah Afridi and Naseem Shah for the white-ball series in Zimbabwe.
Pakistan also rested its ace batter Babar Azam for the first time in an ODI since 2019 as it experimented with its bench strength ahead of next year’s Champions Trophy.
Tadiwanashe Marumani (29) flicked Jamal to square leg for a six and Joylord Gumbie (15) hit three fours against the seamers as they combined in a better than run-a-ball opening stand of 40 runs against a wayward Pakistan pace attack.
Gumbie got run out in a mix-up with Marumani in the sixth over before Pakistan came back hard through its spinners and struck at regular intervals. One of the three Pakistan debutants – left-arm wristspinner Faisal Akram took 3-24 and vice-captain Salman Ali Agha claimed 3-42 as Zimbabwe slipped to 125-7 in the 26th over.
However, Ngarava and Raza thwarted Pakistan’s spinners and pacers alike in a 69-ball stand to give the total respectability. Raza perished when he tried an expansive hit against Akram and was caught on the edge of the boundary while Ngarava was the last man to get dismissed after hitting five fours and a six when he chopped Hasnain back onto his stumps.
Fast bowler Blessing Muzarabani used the home conditions to perfection and snared the early wickets of Saim Ayub (11) and Abdullah Shafique (1), who both got caught behind inside the first three overs from the tall pacer.
Kamran Ghulam (17) and skipper Mohammad Rizwan (19 not out) couldn’t pace the chase before Pakistan lost four wickets in the space of 18 runs against the spinners. Ghulam tried to break the shackles but Sean Williams (2-12) got a thick edge and earned Marumani his third catch behind the wickets before Raza had two in three balls.
Raza pinned Salman plumb leg before wicket of his second ball and one ball later Haseebullah Khan was out for zero in his ODI debut when he played the wrong line and was clean bowled.
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.
68-member Belarusian delegation arrives in Pakistan to strengthen economic ties
- Belarusian President Aleksandr Lukashenko will reach Islamabad for three-day visit on Monday
- Several agreements and memorandums of understanding are expected to be signed during the visit
ISLAMABAD: A high-level Belarusian delegation arrived in Pakistan on Sunday as the two countries prepare to deepen bilateral economic collaboration, with the president of the Eastern European state, Aleksandr Lukashenko, scheduled to reach Islamabad tomorrow.
The 68-member delegation, which includes key Belarusian ministers, was received at Islamabad airport by Interior Minister Mohsin Naqvi and officials from Pakistan’s foreign ministry.
Pakistan and Belarus established diplomatic ties in 1994 and have since worked to strengthen their relationship, with recent efforts focusing on industrial and technological collaboration, trade and investment.
Belarus exports machinery, fertilizers and synthetic yarn to Pakistan, while Pakistan provides textiles, leather goods and surgical instruments to Belarus.
“On behalf of the government and people of Pakistan, we warmly welcome the Belarusian delegation,” Naqvi said in a statement circulated by the interior ministry, as he interacted with the foreign dignitaries.
“This visit is of great importance for strengthening bilateral relations and fostering collaboration in various sectors, including industry and trade,” he added.
According to Pakistan’s foreign office, the delegation includes 43 business leaders and 25 ministerial officials. It is led by Foreign Minister Maxim Ryzhenkov, who is accompanied by colleagues holding portfolios in energy, industry, justice, communications, natural resources and emergency situations.
The chairman of Belarus’s Military Industry Committee is also part of the group.
The visit of the delegation marks another step in enhancing bilateral ties, with both countries aiming to explore new avenues of cooperation.
The foreign office said in a statement on Thursday “President Lukashenko will hold extensive talks with Prime Minister Muhammad Shehbaz Sharif and discuss areas of bilateral cooperation and engagement.”
“Several agreements and MoUs [memorandums of understanding] will also be signed during the visit,” it added.
Naqvi also emphasized the significance of the visit, hoping it would further solidify the relationship between our two countries.
