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Pakistan expects GDP growth to slow to 5% amid fiscal consolidation

Residents read newspapers near a market which was sealed by the authorities in Rawalpindi, Pakistan, on June 21, 2020. (AFP/File)
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Updated 05 June 2022
Reuters
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Pakistan expects GDP growth to slow to 5% amid fiscal consolidation

  • Government seeks to bring down deficit through expenditure management and revenue enhancement
  • PM Sharif who took over from ousted premier Khan says his administration inherited a dire economic crisis
Updated 05 June 2022
Reuters

ISLAMABAD: Pakistan GDP growth will slow to 5 percent for the upcoming fiscal year beginning on July 1, from 5.9 percent in the outgoing year, following budgetary tightening aimed at winning International Monetary Fund (IMF) support, the government said on Saturday.

The planning ministry made the estimates ahead of the annual budget to be presented on June 10.

“Keeping in view external and local uncertain economic environment, GDP growth will slightly taper off and is envisaged at 5 percent for 2022-23 on the back of agriculture (3.9 percent), manufacturing (7.1 percent) and services sector (5.1 percent),” said the ministry in a working paper seen by Reuters.

The paper said the fiscal consolidation will be pursued to bring down the deficit through a combination of expenditure management and revenue enhancement.

Pakistan’s foreign reserves have been on a steep decline in recent months — falling to $9.7 billion, less than 45 days of imports — and its double digit inflation and a widening current account deficit have put it in a tight spot.

Moody’s has changed Pakistan’s outlook to negative from stable.

Pakistan has been waiting for the IMF board to clear a seventh review to resume a $6 billion rescue package signed in 2019 after both sides concluded talks in Doha last month.

The paper said the fiscal deficit for the July-March portion of the outgoing fiscal year had widened to 4 percent of GDP, compared to 3 percent of GDP for the corresponding period last fiscal year.

The current account posted a deficit of $13.8 billion (3.5 percent of GDP) in July-April of the outgoing financial year, it said.

Average inflation was recorded at 11.3 percent during July-May of the current fiscal year, as compared to 8.8 percent in the comparable period of the previous year.

The new government of Prime Minister Shehbaz Sharif who took over from ousted premier Imran Khan in April says that it has inherited a dire economic crisis.

Topics: GDP Pakistan economy

Pakistani naval ships visit Kuwait and Iraq, conduct joint exercises in Arabian Gulf

Updated 2 min 18 sec ago
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Pakistani naval ships visit Kuwait and Iraq, conduct joint exercises in Arabian Gulf

  • Pakistan regularly holds joint exercises with allies to increase synergy and deter piracy, drug trafficking and other illicit activities
  • The visit of Pakistan Navy flotilla to Kuwait and Iraq will further enhance the existing diplomatic and naval relations, the military says
Updated 2 min 18 sec ago
Fatimah Amjad

ISLAMABAD: Pakistani naval ships have visited Kuwaiti and Iraqi ports to conduct joint exercises with both navies in the Arabian Gulf, the Pakistani military said on Sunday, adding the visits would enhance existing relations.

Pakistan Navy Ships (PNS) Rasadgar and Azmat visited the Kuwaiti port of Al-Shuwaikh, while Pakistan Maritime Security Agency (PMSA) ship Dasht visited the Iraqi port of Umm Qasr, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.

On arrival at both ports, Pakistani diplomatic and host naval officials warmly welcomed the Pakistan Navy ships and the mission commander, along with commanding officers of the ships, held meetings with the naval leadership of both countries.

“Later, naval exercises were also conducted together with Kuwaiti and Iraqi navy ships,” the ISPR said in a statement. “The exercises were aimed at improving mutual cooperation between the navies and developing the capacity for joint operations.”

During the meetings, naval officials discussed matters of mutual interest, cooperation in maritime security and communication, according to the statement.

“The visit of Pakistan Navy flotilla to Kuwait and Iraq will further enhance the existing diplomatic and naval relations with friendly countries,” it read.

Pakistan Navy regularly collaborates and holds joint military exercises with allies to increase synergy, promote regional peace and stability and deter piracy, drug trafficking and other illicit maritime activities.

This month, Pakistan Navy conducted joint naval exercises and drills with Royal Oman ship ‘Alseeb.’ The bilateral naval exercise, “Samar Al-Tayeb,” is conducted regularly between the navies of the two nations.

In July, Pakistan Navy also assumed command of a multinational task force 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.

Topics: Pakistan Navy Iraq Kuwait

Pakistan’s army vows to hunt down militants a day after attack kills 16 soldiers

Updated 22 December 2024
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Pakistan’s army vows to hunt down militants a day after attack kills 16 soldiers

  • Pakistan has struggled to contain militancy in its northwest since a fragile truce with Pakistani Taliban broke down in 2022
  • Islamabad has frequently blamed the surge in militancy on militants operating out of Afghanistan, Kabul denies the allegation
Updated 22 December 2024
KASHIF IMRAN

ISLAMABAD: Pakistan’s army chief, General Asim Munir, on Sunday vowed to hunt down militants waging attacks against security forces and their facilitators, the Pakistani military said, a day after the killing of 16 soldiers in an ambush in the country’s northwest.

Gen. Munir said this during his visit to the South Waziristan district in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, which has been battling a surge in militancy.

The visit came a day after the killing of 16 soldiers and eight militants during a gunfight in South Waziristan after a group of militants ambushed an army outpost in Makeen area.

Interacting with officers and troops, the army chief commended their resilience and steadfastness in the face of militancy, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

“The army chief highlighted that the courage, resilience, and unyielding determination of Pakistan’s armed forces are the cornerstone of the nation’s sovereignty,” the ISPR said in a statement

“COAS reaffirmed Pakistan Army’s commitment to pursuing Fitna Al Khwarij [militants] which shall continue to be hunted down till its elimination along with the facilitator, abettors and financier who will be made to pay the price for their nefarious activities against the state.”

The brazen raid on the outpost near the border with Afghanistan was claimed by the Pakistani Taliban, who said it was staged “in retaliation for the martyrdom of our senior commanders.”

The development came days after the Pakistani military said it had killed 11 militants in separate operations in KP’s Tank, North Waziristan and Mohmand districts.

Pakistan has witnessed a surge in militancy in KP since November 2022, when a fragile truce between the Pakistani Taliban and the government in Islamabad broke down.

Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.

On Saturday, the Pakistani military also urged the Taliban administration in Kabul to ensure robust border management after a group of militants tried to infiltrate from Afghanistan, leading to a skirmish that left four militants and a soldier dead a day earlier.

Topics: Pakistan Army COAS General Asim Munir South Waziristan

Pakistan national airline aims to expand its fleet to improve flight operations

Updated 22 December 2024
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Pakistan national airline aims to expand its fleet to improve flight operations

  • PIA has 23% of Pakistan’s domestic aviation market, but its 34-plane fleet has failed to compete globally
  • The airline has faced a lack of direct flights, despite having agreements with 87 countries and key landing slots
Updated 22 December 2024
NAIMAT KHAN

KARACHI: Pakistan International Airlines (PIA) is aiming to expand its fleet to improve flight operations, the national flag carrier said on Sunday, following the addition of another Airbus 320.

PIA has 23 percent of Pakistan’s domestic aviation market, but its 34-plane fleet has failed to compete with carriers internationally.

The Pakistani airline has been facing a lack of direct flights, despite having agreements with 87 countries and key landing slots.

“The 11th Airbus 320 AP-BOM has been inducted into the operational fleet with new engines. The aircraft was rolled out from the hangar with new paint and cabin decoration,” PIA said in a statement.

“PIA’s operational fleet will also include long-grounded Boeing 777 and ATR aircraft in the next few days.”

The fleet revival will greatly improve the expansion of PIA’s network and product quality, according to the statement. From this week, PIA has also introduced an in-flight Internet system in domestic flights, which is gaining popularity among passengers.

The airline said strict adherence to flight schedules, providing safe and high-quality products to passengers was its top priority.

“PIA’s flight schedule has achieved 90 percent regularity,” PIA Chief Executive Officer Khurram Mushtaq said. “Measures for operational fleet expansion and product improvement are part of our commitment.”

Earlier this month, PIA said it would resume flights to Europe in January, starting with Paris, after the EU aviation regulator lifted a ban on the national flag carrier.

PIA’s authorization to operate in the EU was suspended in June 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority to ensure compliance with international aviation standards.

The ban cost the loss-making airline 40 billion rupees ($144 million) annually in revenue. Pakistan’s attempts to privatize PIA fell flat this year, when it received only a single offer, well below its asking price.

Topics: PIA

Stokes out of England’s squad for Champions Trophy in Pakistan

Updated 5 sec ago
AFP
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Stokes out of England’s squad for Champions Trophy in Pakistan

  • The 33-year-old star all-rounder was not considered after damaging a hamstring during England’s defeat by New Zealand this month
  • Key batsman Joe Root, who preceded Stokes as Test captain, returns to the ODI side for the first time since the World Cup in India
Updated 5 sec ago
AFP

LONDON: England Test captain Ben Stokes has been ruled out of next year’s Champions Trophy one-day international tournament in Pakistan and the preceding white-ball tour of India, team management announced Sunday.
The 33-year-old star all-rounder was not considered after damaging a hamstring during England’s defeat by New Zealand in the third Test at Hamilton earlier this month.
“Durham all-rounder Ben Stokes was not considered for selection as he continues to be assessed following a left hamstring injury sustained,” said an England and Wales Cricket Board statement.
Stokes did not bat in the second innings of that match as England slumped to a 423-run defeat — a result that meant his side still won a three-match series 2-1.
He previously missed this year’s home series against Sri Lanka and the first Test in Pakistan due to hamstring issues.
With England facing a five-match Test series at home to India starting in June before their pinnacle 2025/26 Ashes tour of Australia, team management have decided against risking inspirational red-ball skipper Stokes.
Key batsman Joe Root, who preceded Stokes as Test captain, returns to the ODI side for the first time since the 2023 World Cup in India.
Fast bowler Mark Wood, who missed the recent Test tours of both Pakistan and New Zealand, with a bone-stress injury to his right elbow, is in both squads.
The India series and Champions Trophy will mark England’s first limited-overs tour and tournament under coach Brendon McCullum, previously just in charge of the Test side.
Jos Buttler, who missed the recent ODI series against the West Indies with a calf injury, remains captain of the two white-ball teams despite England surrendering both their 50-over and T20 world titles since November 2023.
But it is possible the dashing batsman, replaced as skipper in the Caribbean by all-rounder Liam Livingstone, may not keep wicket, as he has for much of his limited-overs career.
Both the ODI squad for the India tour and the Champions Trophy, as well as the squad for five T20s in India in January, feature two other wicketkeepers in Test gloveman Jamie Smith, who missed the New Zealand series to attend the birth of his first child, and Phil Salt.
Meanwhile, 21-year-old rising star Jacob Bethell, who marked his debut Test series with three fifties in New Zealand, is included in both squads.
Leg-spinner Rehan Ahmed joins the T20 squad, while Root is selected only for the ODIs.
The tour party leaves for India on January 17, with the first match of a five-game series against T20 world champions India in Kolkata on January 22.
India and England will then play a three-match ODI series, in preparation for the Champions Trophy, starting in Nagpur on February 6.
Match dates for the Champions Trophy, which also features Pakistan as well as Australia, New Zealand, South Africa, Afghanistan and Bangladesh, have yet to be announced, with the tournament due to run from February 19 to March 9.
England ODI squad for India tour and 2025 Champions Trophy:
Jos Buttler (capt/wkt), Jofra Archer, Gus Atkinson, Jacob Bethell, Harry Brook, Brydon Carse, Ben Duckett, Jamie Overton, Jamie Smith (wkt), Liam Livingstone, Adil Rashid, Joe Root, Saqib Mahmood, Phil Salt (wkt), Mark Wood
 

Topics: Ben Stokes Pakistan England Champions Trophy 2025

Pakistani province launches helicopter service to evacuate people, dispatch aid to clashes-hit district

Updated 22 December 2024
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Pakistani province launches helicopter service to evacuate people, dispatch aid to clashes-hit district

  • Clashes between Sunni, Shia tribes have killed over 100 people in Kurram since last month
  • On Friday, authorities set a deadline of Feb. 1 for the warring tribes to surrender weapons
Updated 22 December 2024
REHMAT MEHSUD

PESHAWAR: Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province has launched a helicopter service to evacuate people and transport aid to Kurram district that has been hit by sectarian clashes in recent weeks, officials said on Sunday.

Kurram, a tribal district of around 600,000 near Pakistan’s border with Afghanistan where federal and provincial authorities have traditionally exerted limited control, has been a flashpoint for sectarian tensions between Shia and Sunni tribes for decades.

Fresh clashes that erupted last month have killed more than a hundred people, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages following the blocking of the main highway connecting Kurram’s main city of Parachinar to the provincial capital of Peshawar.

In response to the problems being faced by residents, the KP administration has been facilitating travel between Parachinar and Peshawar. On Sunday, two flights evacuated 27 individuals as well as carried 16 government staffers and members of a tribal council, which has been striving to achieve peace, to Kurram.

“There is no fare involved in transportation of people or medicines via the helicopter, rather it is a voluntary service by the KP government to meet the emergency situation,” Nisar Muhammad Khan, a KP government official, told Arab News.

The helicopter service was also being used to dispatch medicines to Parachinar. A day ago, 53 individuals, including 14 patients, were shifted to Peshawar from Kurram via helicopter, according to the provincial authorities.

A third flight was scheduled to bring people stranded in the Tal area back to Parachinar, while five more flights were expected to relocate over a hundred people on Sunday, according to the provincial government.

Chief Minister Ali Amin Gandapur’s office said the government had so far dispatched 1,850 kilograms of medical supplies to Kurram, assuring that it would mobilize all resources to ease problems of the people and ensure durable peace in the region.

The development comes days after the KP authorities set a deadline of Feb. 1 for warring Sunni and Shia tribes in the district to surrender all weapons and dismantle their bunkers to stem sectarian clashes in the region.

The decision was made at a meeting of the KP apex committee, which comprises civilian and military officials, to discuss a sustainable solution to the issue. It allowed the launch of a special air service for temporary evacuation from some parts of Kurram to protect people’s lives, according to the apex committee declaration.

“The agreement outlines that both sides will submit a detailed action plan within 15 days for voluntary submission of weapons,” read a declaration issued after the apex committee meeting.

“All weapons are to be deposited with the local administration by February 1. Additionally, it was decided that all bunkers in the area will be dismantled by the same deadline.”

In the meantime, land routes to the area would be opened intermittently on humanitarian grounds and a mechanism was put in place for secure transportation, according to the statement.

“Personnel of police and Frontier Corps will jointly provide security to the convoys,” it read.

Last month’s clashes erupted after rival tribes attacked convoys of passengers on the Parachinar-Peshawar road, which were followed by attacks on each other’s villages.

The apex committee asked both sides to avoid any violent action in the future to keep the land route safe and open at all times, hoping that the parties would fully cooperate with the government for a lasting solution to the issue.

Topics: Pakistan kurram parachinar

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