KARACHI: Pakistan’s national currency on Thursday hit a new historic low of Rs188.18 against the US dollar amid political turbulence, diminishing foreign exchange reserves and a stalled International Monetary Fund (IMF) loan facility.
The Pak rupee went above Rs189 in the morning trade session as the country’s top court resumed the hearing of a case focusing on the dismissal of a no-confidence vote against Prime Minister Imran Khan which led to a constitutional and political crisis in the country. As the day progressed, however, the rupee bounced back a bit and closed at Rs188.18.
The US dollar was trading at Rs189.25 for buying and Rs190.50 for selling in the open market during the day.
According to the Exchange Companies Association of Pakistan (ECAP), the Saudi Riyal traded at Rs50.20 and Rs50.70 while Arab Emirate Dirham hovered around 51.30 and 51.80 for buying and selling, respectively, on Thursday.
“If corrective measures are not taken, the freefall of Pak rupee may lead the country to a situation like Sri Lanka which is witnessing price hikes and shortages of essential goods like petroleum products,” Zafar Paracha, ECAP general secretary, told Arab News.
Pakistan’s national currency has witnessed a massive decline against the US dollar since Prime Minister Imran Khan took oath as the country’s 19th prime minister in August 2018. The central bank’s statistics reveal the dollar appreciated more than 51 percent from Rs124.24 on August 20, 2018, to Rs188.18 on April 7, 2022.
As the Supreme Court started its proceedings on Thursday to determine the constitutionality of the speaker’s ruling to dismiss the no-trust vote against PM Khan, traders said the market was hoping for an early verdict.
“We are waiting for the judgment of the Supreme Court of Pakistan that is likely to set the future course of the currency market,” Paracha said, adding: “The judgment may bring some stability to the currency market in the days to come because at least there will be some form of government [in the country].”
Analysts warned the US dollar could go up to Rs200, increasing inflationary pressure and foreign debt burden, if the political chaos continued any further.
“The rupee devaluation will significantly increase the debt component and imported inflation,” Aadil Jillani, head of the Economic Division at the Trust Securities and Brokerage, told Arab News, adding the situation would also have a negative impact on the cost of doing business in Pakistan.
“In addition to that, it will also downgrade Pakistan’s ratings and massively hit its current account deficit and deplete reserves,” he continued.
Jillani added the political situation in the country was calling into question the state’s ability to continue policy reforms, run simple administrative matters and secure external financing.
Analysts agreed the national currency was also under pressure due to the stalled IMF extended fund facility.
Pakistan and the IMF were negotiating to complete the seventh review of a $6 billion loan program before the political crisis began.
The discussion stalled as the international lending agency expressed concerns over a relief package of about $1.7 billion announced by the government which included freezing of petroleum prices and cuts in electricity tariff in response to rising inflation.
The fund has said it will resume the review process after the new government is formed.
“The Fund looks forward to continue its support to Pakistan and, once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis program engagement,” Esther Perez Ruiz, the IMF’s resident representative for Pakistan, said in a statement on Monday.
Pakistani rupee nosedives against US dollar amid political crisis
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Pakistani rupee nosedives against US dollar amid political crisis
- Dealers warn country may witness Sri Lanka-type situation if currency devaluation continues
- US dollar has appreciated by more than 51 percent against the rupee since August 2018
Pakistan to build its first indigenously designed and built frigate-sized warship — naval chief
- Frigates are designed for surface warfare, anti-submarine warfare and have air defense capabilities
- Pakistan has been actively working to bolster its naval capabilities by inducting advanced warships
ISLAMABAD: Pakistan Naval Chief Admiral Naveed Ashraf said this week that the country is building its first indigenously designed frigate-sized warship called “Jinnah Class Frigates” to address the challenges presented by the prevalent multi-threat maritime environment.
A frigate-sized warship is a multi-mission naval vessel, typically 100-150 meters in length, with a displacement of 2,000-4,000 tons. Frigates are designed for surface warfare, anti-submarine warfare, and have air defense capabilities. They are equipped with a mix of guns, missiles, torpedoes, and anti-submarine rockets.
Pakistan has been attempting to bolster its naval capabilities through the induction of advanced warships. Recently, it inducted PNS Babur and PNS Hunain, two state-of-the-art vessels, into its fleet. These warships are part of a broader effort to enhance the country’s maritime security and operational readiness.
In an interview with Naval News website on Monday, which covers naval defense and technology, Pakistan Navy chief Admiral Ashraf highlighted that the Pakistan was focusing on inducting modern platforms, force multipliers, and indigenization apart from ensuring a variety of options to reduce reliance on external sources.
“Based on experience gained during the construction of MILGEM Class Ships, the Pakistan Navy is planning to build JINNAH Class Frigates which will be our first ever indigenously designed and built frigate-sized warship,” he said.
The report said Pakistan inducted Type 054 A/P Frigates from China, OPVs Batch-1 and Batch-II from Romania, and MILGEM Class Corvette from Turkiye, adding that these will add to the navy’s existing defense capabilities.
PNS Babur, constructed in Turkiye and PNS Hunain, an offshore patrol vessel from Romania, are equipped with cutting-edge technology to address both surface and air threats.
“Pakistan Navy is in the process of inducting the remaining MILGEM class ships as two of these ships are being constructed indigenously in Pakistan (KS&EW),” the naval chief was quoted as saying.
“Our development strategy is based on ‘progressive capability enhancement’ to create a balanced, potent, and combat-ready force to deal with the evolving threats through the acquisition of force multipliers, and indigenous and innovative technical solutions.”
Zimbabwe win toss and elect to bat in 2nd ODI against Pakistan
- Pakistan suffered 80-run humiliating loss to Zimbabwe in first ODI on Sunday
- Tayyab Tahir and leg-spinner Abrar Ahmed debut for Pakistan in second ODI
BULAWAYO: Zimbabwe won the toss and elected to bat in the second one-day international against Pakistan on Tuesday.
Pakistan made two changes after Zimbabwe recorded a stunning 80-run win on DLS method in the rain-affected first match to lead the three-game series 1-0 on Monday.
Middle-order batter Tayyab Tahir and leg-spinner Abrar Ahmed were awarded ODI debuts in place of Haseebullah Khan and fast bowler Mohammad Hasnain.
Haseebullah got dropped after making 0 in his debut ODI while Hasnain made way for Abrar with the wicket expecting to slow bowlers.
Zimbabwe didn’t tinker with its winning combination after Pakistan struggled against both pace and spin in the first game.
Pakistan have rested its frontline white-ball players Shaheen Shah Afridi, Naseem Shah and Babar Azam as they tested bench strength ahead of next year’s Champions Trophy.
Bulawayo will host the third and final ODI on Thursday and will also host both teams in the three-match T20 series.
Belarus offers to share technology with Pakistan, import textiles in bid to enhance trade
- Belarus president is in Pakistan on three-day visit to discuss bilateral trade, investment
- Both sides discussed investment, tourism and defense cooperation, says Shehbaz Sharif
ISLAMABAD: Belarus President Aleksander Lukashenko on Tuesday offered to share technology with Pakistan and buy the country’s textile products, with the two states reaffirming their resolve to turn bilateral agreements into “practical steps.”
Lukashenko arrived in Islamabad on Monday evening, a day after a 68-member delegation of his country reached Pakistan to hold discussions on bilateral trade and investment. The Belarusian president is in Islamabad as Pakistan pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the International Monetary Fund (IMF).
Lukashenko arrived at the Prime Minister House on Tuesday morning where he was received by PM Shehbaz Sharif and accorded a guard of honor. He held one-on-one talks with Sharif before the two sides also held delegation-level talks in the Pakistani capital.
“As I already said to my dear friend, the prime minister, that in the modern world not just big countries possess high technologies, sometimes mid-range or smaller countries also do just like Belarus,” Lukashenko said during a joint news conference with Sharif.
“We have those technologies and I think Pakistan should develop relations with smaller countries which are ready to share their technologies and on the other hand, we would be very happy to buy from Pakistan what it has to offer to us, including textile and many other things,” he added.
Sharif said he was encouraged by Lukashenko’s “very inspiring” statements on putting agreements on trade and investment into action. He said both sides covered commerce, investment, tourism, defense cooperation and other important issues in the discussions.
“All these areas will be discussed today immediately after this press conference between the two sides,” Sharif said. “And then they will depart to meet again in two weeks’ time in Minsk where the two teams will meet again and finalize and convert all these discussions into practical steps, arrangements ready for agreements.”
Sharif said in February 2025, he and the Belarusian president will sign the agreements to ensure practical work on them begins.
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.
Pakistan eyes enhanced trade and connectivity with Belarus amid investment push
- Belarus President Aleksandr Lukashenko is in Pakistan on three-day visit for investment, trade talks
- Islamabad is pushing for foreign investment from allies in a bid to shore up $350 billion economy
ISLAMABAD: Pakistan Privatization and Communications Minister Abdul Aleem Khan stressed launching direct flights to Belarus and enhancing trade with the eastern European country, state-run media reported this week, as its president arrived in Islamabad for a three-day trip to hold talks on bilateral trade and investment.
Belarus President Aleksandr Lukashenko arrived in Pakistan on Monday following the arrival of his 68-member delegation, as Islamabad pushes for foreign investment from allies old and new in a bid to shore up its $350 billion economy while navigating a tough reforms agenda mandated by the IMF.
Khan met Belarusian Transport Minister Alexei Lyakhnovich with senior communication in the presence of sector officials from both countries on Monday to discuss the importance of enhancing connectivity through roads and railways, the Associated Press of Pakistan said.
“Federal Minister for Communications, Privatization and Board of Investment Abdul Aleem Khan on Monday emphasized Pakistan’s commitment to enhancing connectivity through the launch of direct flights to Moscow and Belarus, alongside the development of trade corridors linking China, Afghanistan, Central Asia, and Belarus,” the APP reported.
The Belarusian transport minister described cross-border trade as “pivotal” for strengthening the economy and promoting bilateral relations, adding it was a significant step toward collaboration between both countries.
The pending construction of different motorways and highways also came under discussion with both sides agreeing to take steps in this regard, APP said.
Emphasizing the communication sector’s importance, Khan said Pakistan wanted a trade corridor to Central Asia along the Karakoram Highway and China-Pakistan Economic Corridor lines to promote business activities.
“We want to further enhance G2G and B2B activities with Belarus in the future for which both the countries will make serious efforts,” Khan said.
“Like Azerbaijan and Turkiye, we also want to make Belarus an investment partner with our country as Pakistan is rich in natural resources and blessings of Allah Almighty while positive results can be achieved with our skilled workforce.”
On Tuesday, Lukashenko arrived at the Prime Minister House where he was welcomed by PM Shehbaz Sharif and presented with a guard of honor.
Pakistan and Belarus, the world’s 74th-largest economy by GDP, celebrated thirty years of the establishment of diplomatic relations this year. Pakistan was one of the first countries to recognize Belarus after the dissolution of the Soviet Union in 1991 and maintained an embassy in Minsk.
The prime minister of Belarus was in Islamabad earlier this year where he met his counterpart as well as the chief of the Pakistan army, among other key leaders.
In September, Pakistan and Belarus discussed different options for a joint venture to establish a tractor plant in the country and reached a consensus on collaborating on a foot-and-mouth disease vaccine to protect cattle, as well as on the capacity building of agricultural engineers in machinery design.
They also agreed to enhance cooperation in the sectors of livestock and seeds and work together on the mechanization of agriculture and on increasing market access for agricultural and livestock products. Belarus also wants to set up a veterinary medicine plant in Pakistan.
The First Pakistan-Belarus Joint Economic Commission (JEC) was held in 2015 in which the two countries agreed to initiate joint ventures in the textile, pharmaceutical and lighting solution industries and share technological expertise.
In recent months, there has been a flurry of visits, investment talks and economic activity between Pakistan and Central Asian states, including meetings with leaders from Uzbekistan and Azerbaijan.
After humiliating loss, Pakistan face Zimbabwe in second ODI today
- Zimbabwe stunned Pakistan by 80-run win on Duckworth-Lewis Stern (DLS) method in first ODI
- Skipper Mohammad Rizwan’s side will play three ODIs and three T20Is against Zimbabwe
ISLAMABAD: Pakistan will take on hosts Zimbabwe in the second ODI today, Tuesday, at the Queens Sports Club in Bulawayo, after reeling from an embarrassing defeat in the first match last week.
All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method on Sunday against a new-look Pakistan team.
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out.
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.
“The second One-Day International of three match series between Pakistan and Zimbabwe will be played in Bulawayo on Tuesday,” state broadcaster Radio Pakistan reported.
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.
In the 15-member squad Arafat Minhas, Babar Azam, Naseem Shah and Shaheen Shah Afridi have been replaced with the uncapped duo of Abrar Ahmed and Ahmed Daniyal along with pacer Shahnawaz Dahani and Tayyab Tahir.
The match is scheduled to begin at 12:30 p.m. Pakistan Standard Time.
