KARACHI: Pakistan’s central bank on Tuesday decided to the keep the key policy rate unchanged at 9.75 percent, citing an improved outlook for inflation after cuts in fuel and electricity prices announced last week.
The central bank had increased the policy rate by 100 basis points to 9.75 percent in December 2021. Since then, the rate has been kept unchanged.
“This decision reflected the MPC’s view that the outlook for inflation has improved following the cuts in fuel prices and electricity tariffs announced last week as part of the government’s relief package,” the central bank said in its policy statement.
“At the same time, high-frequency indicators suggest that growth continues to moderate to a more sustainable pace. This moderation should help keep at bay demand-side pressures on inflation and contain non-oil imports, notwithstanding the significant uncertainty about the future path of global energy and food prices due to the Russia-Ukraine conflict,” the statement added.
The monetary policy committee (MPC) noted while the current real interest rates on a forward-looking basis were appropriate to guide inflation to the medium-term range of 5-7 percent, support growth, and maintain external stability, the Russia-Ukraine conflict had introduced a high degree of uncertainty in the outlook for international commodity prices and global financial conditions.
“Continued adverse conditions on these fronts could pose challenges to the outlook for the current account deficit and inflation expectations, which could necessitate changes in the policy rate,” the statement read. “Since the Russia-Ukraine situation remains fluid, the MPC noted that it was prepared to meet earlier than the next scheduled MPC meeting in late April, if necessary, to take any needed timely and calibrated action to safeguard external and price stability.”
The country’s agricultural prospects have somewhat weakened, with key inputs such as fertilizer off-take and water availability during the Rabi season lower than last year. Cotton and wheat production will likely be less than previous estimates.
“Growth in FY22 is still expected around the middle of the previously forecast range of 4-5 percent,” the central bank stated.
Looking ahead, the central bank said the non-oil current account deficit was expected to decline, as import growth continued to slow with moderating demand, while exports and remittances remained resilient.
“The outlook for the overall current account deficit is dependent on the path of international oil prices, according to the central bank,” the statement added.
The central bank said the MPC continued to expect inflation to average between 9-11 percent this fiscal year before declining toward the medium-term target range of 5-7 percent in FY23 as global commodity prices normalized.
This baseline outlook is subject to risks from the path of global prices, domestic wage developments, and the fiscal policy stance.
Pakistan central bank keeps key policy rate unchanged at 9.75% amid improved inflation outlook
https://arab.news/j7v2p
Pakistan central bank keeps key policy rate unchanged at 9.75% amid improved inflation outlook
- Russia invasion of Ukraine has introduced high degree of uncertainty in outlook for international commodity prices
- Since the situation remains fluid, monetary policy committee prepared to meet earlier than next scheduled meeting
Foreign Office confirms one more Pakistani survivor of Morocco boat capsize
- The boat sank off Morocco’s coast last week with 86 people on board
- The confirmation brings the total number of Pakistani survivors to 22
ISLAMABAD: Pakistan’s Foreign Office on Monday confirmed one more survivor of a migrant boat capsize off the coast of Morocco last week, bringing the total number of survivors to 22.
The migrant boat capsized near Morocco’s coast on Jan. 15 while en route to Spain. It was carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later that 36 people were rescued from the vessel which left Mauritania on Jan. 2, while Foreign Office confirmed on Sunday the survivors included 21 Pakistani nationals.
“Based on verified information, one more Pakistani national named Muhammad Adeel s/o Muhammad Rasheed has been identified among the survivors of the boat tragedy,” the Pakistani foreign office said on Sunday.
The incident near Morocco has once again underscored the dangerous journeys many migrants, particularly Pakistanis, embark on due to conflict and economic instability in their home country.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a ship wreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests.
Prime Minister Shehbaz Sharif has urged increased collaboration with international agencies to ensure swift action against human trafficking networks.
New Trump administration to view Pakistan through ‘China-India lens’ as Islamabad pledges stronger ties — experts
- Islamabad-Washington ties, strained over Pakistan’s alleged support of Taliban, further worsened after ex-PM Khan blamed his ouster on Washington
- Analysts suggest Islamabad to make a clear agenda with defined milestones, cautiously approach developments in relations and respond accordingly
ISLAMABAD: The new United States (US) administration of President Donald Trump will continue viewing Pakistan through the “China-India lens,” Pakistani foreign affairs experts said on Monday, as Islamabad pledged to strengthen its relations with Washington.
Trump’s inauguration is scheduled for Monday at 1700 GMT inside the Capitol Rotunda as he returns to the presidency four years after being voted out during a pandemic-driven economic collapse, marking an unprecedented political comeback.
Relations between Islamabad and Washington, once close allies, had been strained because of Pakistan’s alleged support of the Taliban in Afghanistan, a claim Islamabad denies. Ties worsened further during the tenure of Prime Minister Imran Khan, who welcomed the Taliban’s 2021 takeover and accused Washington of trying to oust him. Since Khan’s ouster in 2022, PM Shehbaz Sharif’s government has made frequent efforts to repair the damaged relations.
But Pakistani foreign affairs experts believe that the US is unlikely to seek a significant expansion of ties with Islamabad in the near future and will approach it keeping its China and India policies in view, and remaining largely focused on security cooperation, particularly in counterterrorism and Afghanistan.
“The biggest challenge for Pakistan is that the Trump administration will continue its previous policies of looking at Pakistan through the China-India lens,” Dr. Zafar Nawaz Jaspal, a professor at Quaid-e-Azam University’s School of Politics and International Relations, told Arab News.
“Now, the biggest challenge for us is how to convince the Americans that though we will be not a part of the American policies to contain China, but at the same time, we could be a part of Americans’ policies in addressing the non-traditional security challenges and on Afghanistan.”
He said the new Trump administration could use the incarceration of Pakistani political figures, including ex-PM Khan, to influence the incumbent Pakistani government.
“People think that Imran Khan is an established fact, the political divide in Pakistan exists and that divide could be exploited by the external powers for pursuing their agendas within the country or in the region,” Dr. Jaspal added.
Trump’s special envoy nominee Richard Grenell urged President Joe Biden’s administration to use its last days in power to push for the release of Khan, who has been in jail for more than a year on a slew of charges, so he could run for office in Pakistan.
While a Pakistani Foreign Office spokesperson declined to comment on Grenell’s statement at the time, the Pakistani government and allies have criticized Grenell’s comments.
On Monday, Pakistani Foreign Office spokesperson Shafqat Ali Khan said Pakistan maintained close relations with the US, marked by multi-layered cooperation in economy, trade, people-to-people connections, security and counter-terrorism, and Islamabad seeks to further solidify them.
“Pakistan-US relations have a very long history, and the relations remain rich and dense, and we would continue to work with the new administration to further solidify and strengthen this vital relationship,” Shafqat told Arab News.
“We seek to further strengthen these ties by ensuring the continued positive growth of bilateral relations.”
Senator Sherry Rehman, who has previously served as Pakistan’s ambassador to the US, said every transition offers opportunities for a reset, and Pakistan needs to state its own goals for a broader bilateral path to widen its relationship with the US from a highly “securitized” lens to a more robust economic and commercial one.
“Islamabad should make a clear agenda with defined milestones for consistent engagement over better terms of trade, not just wait for Washington to respond to regional headwinds, in which Pakistan finds itself seeking balance against an Indian arms race in South Asia,” she told Arab News.
“There should be no diplomatic diffidence in stating the country’s strategic interests while iterating confidence in rebuilding trust between the two countries [Pakistan and the US].”
Masood Khan, another former Pakistani ambassador to the US, said Pakistan should try to invest “new energy” into economic cooperation between the two countries and remove any “shackles” in the strategic domain.
“The full contours of President Trump’s policy toward South Asia haven’t become very clear, but we have shared strategic interests in the region and beyond,” he told Arab News.
“This is called Trump 2.0, so it will not be the repetition of the previous tenure,” he said, adding that Trump is more “clear-headed and more forthright” regarding his priorities this time.
Dr. Salma Malik, another foreign affairs expert, said if the US adopts policies directed against China, every action or policy decision it takes will have a “direct or indirect impact on Pakistan.”
“Therefore, it is important not to overreact or panic, instead, we should cautiously approach developments, assess opportunities, and respond accordingly,” she said.
‘Great opportunity’: Pakistani enthusiasts explore AI, tech advancement at China robot show
- World Robot Contest has attracted over 100,000 contestants from more than 20 countries since 2015 and is widely acclaimed as ‘Olympic Games’ in robotics
- The competition covers more than 20 major events, 50 minor events and 100 competition groups, providing a broad competitive stage for robot enthusiasts
ISLAMABAD: Hundreds of foreign enthusiasts are attending a robot contest in China’s Henan province that offers insights into artificial intelligence and technological development around the world, with Pakistani participants describing it as a “great opportunity.”
The 2024 World Robot Contest (WRC), running from January 16 to 21 in Zhengzhou city, is being attended by robot enthusiasts from countries like China, the United States (US), Pakistan and Germany.
The competition covers more than 20 major events, 50 minor events and 100 competition groups, providing a broad competitive stage for robot enthusiasts from around the world.
Hira Syed, a Pakistani leading a team of foreign participants, said this was the first time they were participating in such a competition and it offered valuable insight into the world of technology.
“As the world is growing in technology and AI, I think it’s a great opportunity for all our students to come here and see what’s going on around the world,” she told Reuters.
“We need to understand the importance of technology.”
Syed said they had their hands on the robots and the controllers in the competition.
“I think they’re doing fantastic,” she said. “I think after the competition, when we are relaxed, we’ll go and interact with them. I think it’s going to be great.”
Hosted by the Chinese Institute of Electronics, the World Robot Contest has attracted over 100,000 contestants from more than 20 countries since 2015, according to the WRC website. It is widely acclaimed as the “Olympic Games” in the robotics field.
The event consists of two major competitions: Brain-Computer Interface or BCI Brain-controlled Robot Competition, and Youth Robot Design Competition.
“Basically, I attended this robotics event because it was the first time, I attended an event concerning technology and sciences,” said Gabriel Barakeel, a participant from Cameroon.
“I learned new things in maths and computer science by looking at all the projects around different robots, different students manipulating different robots. It really fascinated me. I learned a lot of things about robots, and I think I’ll search of even more things at home.”
Imran Khan to appeal land graft conviction in Pakistan high court this week— lawyer
- Khan was sentenced to 14 years, his wife to seven years in prison by an accountability court last week
- Case involves charitable entity Al-Qadir Trust, set up by ex-premier and his wife Bushra Khan in 2018
ISLAMABAD: Former prime minister Imran Khan will appeal against his conviction in a land graft case in a high court this week, his lawyer Salman Akram Raja confirmed days after the Pakistan Tehreek-e-Insaf (PTI) founder was handed a 14-year jail sentence in the case.
An accountability court in Pakistan’s capital on Friday handed Khan a 14-year jail sentence and slapped his third wife with a seven-year imprisonment term after finding them both guilty of receiving land as a bribe from a real estate tycoon.
The couple say that the Al-Qadir Trust, set up by Khan and Bushra Khan in 2018 when he was still in office, was established to impart religious education. Pakistani authorities, however, say the trust was a front for the couple to receive valuable land as a bribe from real estate developer Malik Riaz Hussain, who is one of Pakistan’s richest and most powerful businessmen.
Hussain, like Khan and his wife, both deny any wrongdoing in the case. Khan’s party responded to the verdict last week by saying it lacked “any solid foundation and is bound to collapse.”
“If [the appeal] is not filed tomorrow [Monday] then it will be filed the day after [Tuesday],” Raja told ARY News, a private news channel, on Sunday night. “And obviously, we will file a request with the appeal to dismiss this verdict and that the punishment should also be dismissed,” he added.
Raja hoped the high court would listen to the appeal “soon” and issue its verdict within the next few weeks. He said after the high court’s verdict, whichever party disagrees with the decision will then appeal against its decision at the Supreme Court.
He did not specify which high court the party intends to file Khan’s appeal in.
Authorities say the Al-Qadir Trust scheme originated with 190 million pounds repatriated to Pakistan in 2019 by Britain after Hussain forfeited cash and assets to settle a British probe into whether they were proceeds of crime.
Instead of putting it in Pakistan’s treasury, Khan’s government is accused of using the money to pay fines levied by a court against Hussain for illegal acquisition of government lands at below-market value for development in Karachi.
Raja reiterated that Khan and his wife had not personally benefitted from the amount repatriated to Pakistan, saying that it had been used to pay Hussain’s fines as a result of a mutual understanding between the real estate tycoon and the UK’s National Crime Agency.
“Our stance is clear: that this decision is against the law and logic,” he said. “And cannot under any circumstances stand after an appeal.”
Khan, who has been in jail since August 2023 and faces a slew of legal cases, says all charges against him are politically motivated and being backed by his political rivals led by Prime Minister Shehbaz Sharif and the country’s all-powerful military. Both deny the allegations.
The announcement of the controversial verdict was delayed three times, most recently last Monday, as the government holds reconciliation talks with Khan’s PTI party.
Pakistan PM warns authorities against negligence in Hajj 2025 preparations
- Shehbaz Sharif orders authorities to pay special attention to pilgrims’ accommodation and travel
- This year 179,210 Pakistani pilgrims are expected to perform annual Islamic pilgrimage in Saudi Arabia
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif warned authorities on Monday against neglecting their duties related to this year’s Hajj pilgrimage, instructing them to provide the best possible facilities to pilgrims.
Pakistan and Saudi Arabia signed the Hajj agreement 2025 this month, according to which 179,210 pilgrims from the South Asian country would perform the annual pilgrimage in 2025. The quota for pilgrims is divided equally between government and private schemes.
Sharif chaired a review meeting on Hajj preparations in Islamabad on Monday during which he was briefed on measures taken by the government related to the pilgrimage so far. Religious Affairs Minister Chaudhry Salik Hussain and other senior officials also participated in the meeting.
“No negligence will be tolerated in preparations for Hajj 2025,” Sharif was quoted as saying by the Prime Minister’s Office (PMO). “All necessary assistance and facilities will be ensured for Hajj pilgrims in Hajj 2025.”
The Pakistani premier directed authorities to ensure transparency and merit in selecting Hajj assistants or moavineen, the statement said. He demanded a detailed briefing on Hajj assistants’ responsibilities and the process through which they are appointed.
“Pilgrims should be provided with the best training facilities for Hajj 2025,” Sharif said, adding that special attention should be given to their accommodation, travel and other facilities.
Pakistan’s Hajj Policy 2025 allows pilgrims to make payments in installments for the first time. Under this scheme, the first installment of Rs 200,000 ($717) is to be submitted with the application, the second installment of Rs 400,000 ($1,435) within 10 days of the balloting and the remaining amount is due by Feb.10 this year.
On Jan. 17, the Pakistani Religious Affairs Ministry began mandatory training sessions for Pakistani nationals selected to perform this year’s Hajj pilgrimage under the government scheme. It also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to assist pilgrims.
Additionally, the government reduced airfare for pilgrims, lowering ticket prices to Rs 220,000 ($785.41) from last year’s Rs 234,000 ($835.39). Pakistan International Airlines, Saudi Airlines and private carriers will be responsible for transporting pilgrims this year.
