KARACHI: Pakistan’s inflation rate, driven by energy and food prices, peaked to a two-year high of 13 percent in January, the country’s statistics bureau said on Tuesday, with analysts pointing to its financial implications for the poor.
The inflation measured by the consumer price index (CPI) increased by 13 percent on a year-on-year (YoY) basis in January 2022 as compared to an increase of 12.3 percent in the previous month and 5.7 percent in January 2021. Inflation was previously recorded at its highest 14.6 percent in January 2020.
On a month-on-month basis, inflation increased by 0.4 percent in January as compared to a decrease of 0.02 percent in the previous month as well as in January 2021, according to the data released by the Pakistan Bureau of Statistics (PBS).
Prices of food products, such as cooking oil increased by 54.33 percent, vegetable ghee 47.4 percent, mustard oil 46.68 percent and pulse masoor 41.3 percent, when compared with the corresponding month of the previous year, i.e. January 2021.
“Food inflation was the highest recorded since April 2021 when it rose to 15.9 percent. We attribute this to higher transportation cost and higher global food & commodity prices,” a report by Karachi-based brokerage house Topline Securities said.
Housing, water, electricity and fuel index, which contribute around 24 percent weightage to the CPI, rose by 15.5 percent in January 2022, compared to an increase of 16.6 percent in December 2021.
The price of electricity increased by 56.20 percent, liquefied hydrocarbons by 53.35 percent and motor fuel by 36.22 percent, when compared with the same period of last year.
The inflation rate was 128 percent higher than the previous year’s 5.7 percent, mainly due to the global impact of commodity prices, including food and energy products, and oil and gas, in the international market.
Analysts point to financial implications of higher inflation for the poor class, which has already been under immense pressure.
“Poor and lower middle class will remain under stress due to high inflation,” Muhammad Sohail, the Topline Securities chief executive officer, told Arab News.
“With rising oil prices and expected increase in power tariffs, we anticipate monthly CPI inflation to remain in the range of 11-13 percent during the remainder of FY22.”
The government expects the inflationary trend to continue to remain in double digits in the coming months.
“The central bank in its monetary policy had said that inflation for the next three months is likely to remain elevated but improved balance-of-payment numbers will determine central bank’s next move for policy rate changes,” Samiullah Tariq, research director at the Pakistan-Kuwait Investment Company, told Arab News.
This week, Pakistan is expecting the revival of $6 billion International Monetary Fund (IMF) loan program. It would make available $1,059 million that would bring total disbursements to Pakistan to about $3,027 million and help unlock significant funding from bilateral and multilateral partners.
“Going forward, IMF stability program and global oil prices will remain important for Pakistan,” Sohail said.
The Pakistani central bank has forecasted that the inflation rate for the current fiscal year would range between 9 percent and 11 percent.
Pakistan’s annual inflation rose to two-year high in January
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Pakistan’s annual inflation rose to two-year high in January
- Food and energy prices contributed to the hike amid rising international commodity prices and transportation costs
- Electricity price increased 56.20 percent, liquefied hydrocarbons 53.35 percent as compared to last year, official stats show
Pakistan anti-graft body files reference against property tycoon over illegal transfer of Karachi land
- Malik Riaz Hussain and others are accused of having over 7,000 acres of government land transferred illegally to Bahria Town Karachi
- The development comes days after National Accountability Bureau said it had initiated process to seek Hussain’s extradition from UAE
KARACHI: Pakistan’s National Accountability Bureau (NAB) has filed a reference against real estate tycoon, Malik Riaz Hussain, and 32 other individuals over illegal transfer of government lands for a mega project in the southern Pakistani city of Karachi, a NAB spokesperson said on Saturday.
Hussain, who currently lives in Dubai, is one of Pakistan’s wealthiest and most influential businessmen and the country’s largest private employers. He is best known as the chairman of M/s Bahria Town, which claims to be Asia’s largest private real estate developer and has projects in Islamabad, Lahore, Karachi and other cities.
NAB filed the reference in an accountability court in Karachi nominating Hussain, his son Ahmed Ali Riaz, former Sindh chief minister Syed Qaim Ali Shah and Sharjeel Inaam Memon, then local body minister and now information minister of Sindh, among 33 people for illegally transferring government land to M/s Bahria Town for its Bahria Town Karachi project in 2013 and 2014.
“Accused persons in connivance with each other illegally transferred the government land, initialy admeasuring 7220 acres, to M/s Bahria Town,” the anti-graft body said in the reference. “The said illegal transfer of government land to Bahria Town was made under the garb of adjustment/exchange/consolidation.”
It said the accused persons acted as an “organized syndicate” to cause cumulative losses of Rs700 billion ($2.5 billion) to the national exchequer, requesting the court to try them for committing the “offenses of corruption and corrupt practices.”
The development came days after NAB said it had initiated the process to seek Hussain’s extradition from the United Arab Emirates (UAE), who was also charged in another land corruption case involving former prime minister Imran Khan and his wife.
A Pakistani court last month sentenced Khan to 14 years in prison and his wife, Bushra, to seven years, in the case in which they are accused of receiving land as a bribe from Hussain through the Al-Qadir charitable trust in exchange for illegal favors during Khan’s premiership from 2018 to 2022. Khan says he and his wife were trustees and did not benefit from the land transaction. Hussain too denies any wrongdoing relating to the case.
“We have written to the Federal Investigation Agency for the extradition,” a NAB spokesman told Arab News on Wednesday, adding that the FIA would now pursue the case.
Prior to that, Defense Minister Khawaja Asif confirmed that Pakistan would use its extradition treaty with the UAE to bring Hussain back.
Last month, NAB also cautioned people against investing in Hussain’s new real estate venture to build luxury apartments in Dubai.
“If the general public at large invests in the stated project, their actions would be tantamount to money laundering, for which they may face criminal and legal proceedings,” it said.
Hussain responded to NAB in a post on X, saying that “fake cases, blackmailing and greed of officers” had forced him to relocate from Pakistan because he was not willing to be a “political pawn.”
Pakistani PM hopes Sharaa assuming president’s office will bring peace to Syria
- Al-Sharaa was declared president for a transitional phase on Wednesday, less than two months after he led a campaign that toppled Bashar Assad
- Sharaa said he will form an inclusive transitional government that will build institutions and run the country until it can hold free and fair elections
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Saturday welcomed Ahmed Al-Sharaa’s assumption of the office of the Syrian president, hoping it would lead to peace in Syria.
Sharaa was declared president for a transitional phase on Wednesday, less than two months after he led a campaign that toppled Bashar Assad.
He was also empowered to form a temporary legislative council for a transitional period and the Syrian constitution was suspended.
“We welcome Mr. Ahmed Al-Sharaa’s assumption of office as President of the Syrian Arab Republic during the transitional phase and hope that the new leadership will be able to bring peace, progress and prosperity to the brotherly people of Syria,” Sharif said on X.
On Thursday, Sharaa said he will form an inclusive transitional government representing diverse communities that will build institutions and run the country until it can hold free and fair elections.
He was addressing the nation in his first speech since being appointed president by the military command that ousted Assad in a lightning offensive last year.
The group that led the offensive, Hayat Tahrir Al-Sham, has since set up an interim government that has welcomed a steady stream of senior Western and Arab diplomatic delegations keen to help stabilize the country after 13 years of civil war.
Pakistan army chief vows retaliation after militant attack kills 18 troops in Balochistan
- Pakistani forces suffered casualties when they engaged militants who had erected barricades on a key highway in Kalat district late Friday
- Balochistan has for years been the scene of an insurgency, with several separatist groups staging attacks and targeting mainly security forces
ISLAMABAD: Pakistan’s army chief, General Asim Munir, on Saturday visited the southwestern Balochistan province after militants killed 18 Pakistani soldiers in the restive region, promising to hunt down the perpetrators of attacks on Pakistani security forces.
General Munir was given a comprehensive brief on the prevailing security situation in Balochistan during his visit, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
He offered funeral prayers for the deceased soldiers and later inquired after the injured ones at the Combined Military Hospital in Balochistan’s provincial capital of Quetta.
“Those who are acting as terrorist proxies of their foreign masters who have mastered the art of manifesting double standards of hunting with the hound and running with the hare are well known to us. No matter what these so called ‘frenemies’ may do, you will surely be defeated by the resilience of our proud nation and its Armed Forces,” the army chief was quoted as saying by the ISPR.
“For the defense of our motherland and its people, we will definitely retaliate and ‘hunt you down,’ whenever required and wherever you may be.”
Pakistani forces suffered the casualties when they engaged militants who had erected barricades on a key highway in Balochistan’s Kalat district late on Friday night. The banned Baloch Liberation Army (BLA), one of the most prominent separatist groups operating in the southwestern province, claimed responsibility for the incident.
The fighting continued overnight into Saturday morning and the military said it had killed at least 23 militants in subsequent clearance operations.
Balochistan has for years been the scene of an insurgency, with several separatist groups staging attacks and targeting mainly security forces in their quest for independence. The separatists accuse Islamabad of exploiting the province’s natural resources. Successive Pakistani governments deny the allegations and say they have prioritized Balochistan’s development through investments in health, education and infrastructure projects.
In the past, the BLA has carried out major attacks in Balochistan and other parts of Pakistan, targeting security forces, ethnic Punjabis whom it considers “outsiders” in Balochistan, and Chinese interests and nationals.
More than 50 people, including security forces, were killed in August last year in a string of assaults in Balochistan that were claimed by the BLA. Last month, dozens of fighters of the separatist outfit wrested control of a small town in Khuzdar from the Levies paramilitary forces. Pakistani authorities had regained the town after hours of efforts.
Pakistan, Azerbaijan aim to strengthen partnership in infrastructure, energy and trade
- The development comes as Islamabad seeks closer ties, especially in trade and investment, with Central Asian states to overcome an economic crisis
- In July last year, Azerbaijan President Ilham Aliyev visited Pakistan and announced the two nations were working to increase bilateral trade to $2 billion
ISLAMABAD: Pakistan and Azerbaijan have resolved to strengthen their partnership in infrastructure, energy and trade sectors, the Pakistani government said on Saturday, following high-level meetings between officials of the two countries in Baku.
Pakistan’s Minister of Investment, Privatization and Communications Abdul Aleem Khan met with Azerbaijan Prime Minister Ali Asadov and discussed with him avenues for enhancing bilateral cooperation, according to the Press Information Department (PID) of the Pakistani government.
The discussions focused on expanding economic collaboration, with Khan highlighting vast investment opportunities in Pakistan, particularly in privatization of state-owned enterprises (SOEs). He also invited Azerbaijan to invest in Pakistan’s motorway and other key sectors.
During the visit, the Pakistani delegation engaged in discussions with Azerbaijan’s Energy Minister Parviz Shahbazov, Transport Minister Rashad Nabiyev, Deputy Minister of Economy Samad Bashiri and President of the State Oil Company of the Republic of Azerbaijan (SOCAR), Rovshan Najaf.
“The meetings explored opportunities for mutual investment in various sectors, including infrastructure development, energy, and trade,” the PID said in a statement. “Additionally, discussions covered the privatization of government-run enterprises and other key investment initiatives.”
The meetings were also attended by Lt. Gen. Sarfaraz Ahmed, coordinator of Pakistan’s Special Investment Facilitation Council (SIFC), Federal Secretary Petroleum Momin Ali Agha and other senior officials.
Welcoming the Pakistani delegation, PM Asadov praised Pakistan’s recent economic advancements and assured Azerbaijan’s support in increasing bilateral trade and investment.
The development comes amid Islamabad’s efforts to forge closer ties, especially in trade and investment, with Central Asian states as Pakistan treads a tricky path to economic recovery. There have been a series of visits by Azerbaijani officials to Pakistan in recent months, with Azerbaijan President Ilham Aliyev visiting Pakistan in July 2024 and announcing the two nations were working to increase bilateral trade to $2 billion.
“The visit also included a review of progress on various Memorandums of Understanding (MoUs) between Pakistan and Azerbaijan. Special discussions were held on developing trade corridors, rail networks, and other communication links between Pakistan and Central Asian states to enhance regional connectivity,” the PID said.
“This visit marks another step toward deepening economic and strategic ties between Pakistan and Azerbaijan, paving the way for expanded cooperation in trade, investment, and infrastructure development.”
Last month, Pakistan’s Defense Minister Khawaja Asif said Islamabad and Baku were in the process of finalizing an agreement to enhance security ties through cooperation in arms trade, defense infrastructure and intelligence sharing.
In Dec. 2024, Pakistan waived customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement. The agreement aimed to boost economic cooperation by reducing tariffs on goods like Pakistan’s sports equipment, leather, and pharmaceuticals and Azerbaijan’s oil and gas products.
Pakistan Navy inducts another offshore patrol vessel into its fleet to enhance maritime security
- This is the fourth Yamama ship to be inducted in Pakistan Navy fleet, which was constructed and commissioned at Damen Shipyards in Romania
- The multipurpose, highly agile medium-sized ship is equipped with a terminal defense system, and anti-ship and anti-air warfare capabilities
ISLAMABAD: Pakistan Navy on Saturday inducted another offshore patrol vessel, PNS Yamama, into its fleet with an aim to enhance security of the country’s maritime frontiers, its Directorate General Public Relations (DGPR) said.
This is the fourth Yamama ship of the Offshore Patrol Vessel (OPV) Batch II to be inducted in Pakistan Navy fleet, which was constructed and commissioned at Damen Shipyards, Romania.
The ship was inducted at a ceremony at Pakistan Navy Dockyard in the southern Pakistani port city of Karachi, with Pakistan Fleet Commander Rear Admiral Abdul Munib being the Chief Guest.
“Addition of PNS YAMAMA in PN fleet will significantly enhance Pakistan Navy’s capability of safeguarding maritime frontiers of Pakistan,” Rear Admiral Munib was quoted as saying by the DGPR.
“Induction of such multipurpose state-of-the-art platforms will provide vital support to ongoing PN maritime security patrol in Indian Ocean.”
The multipurpose, highly agile medium-sized offshore patrol vessel is equipped with self-protection and terminal defense system, state-of-the-art electronic warfare, and anti-ship and anti-air warfare capabilities, according to the DGPR.
Additionally, it is capable of embarking a multirole helicopter and can operate independently or as part of a taskforce for extended durations to execute a variety of missions.
In June 2024, Pakistan Navy inducted two warships, Babur and Hunain, into its fleet, days after it assumed command of a multinational taskforce, CTF-150, responsible for ensuring maritime security in the southeastern waters of the Middle East, operating in the Arabian Sea, Gulf of Oman and Gulf of Aden.
Besides inducting various warships in its fleet, Pakistan Navy has held several joint exercises with friendly nations in recent years in a bid to enhance joint operational capabilities and strengthen regional security.
Pakistan Navy has also invited over 100 countries to the AMAN maritime exercises, scheduled to be held on Feb. 7-11, with the event including a dialogue for senior naval leaders for the first time. The exercise, held every two years, involves ships, aircraft and special operation forces.
