‘Headed toward stability’: Pakistan’s finance minister unveils Economic Survey 2021-22

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Updated 09 June 2022
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‘Headed toward stability’: Pakistan’s finance minister unveils Economic Survey 2021-22

  • Pakistan’s imports have gone up by about 48 percent compared to last year, finance minister says
  • Exports however have only increased by 28 percent so the trade deficit has reached $45 billion

KARACHI: Pakistani finance minister Miftah Ismail unveiled the annual Economic Survey on Thursday, acknowledging Pakistan’s structural economic challenges but saying the country had historically always experienced current account deficits after undergoing economic growth but was now “headed toward stability.”

The Economic Survey is a document released each year a day before the presentation of the federal budget to outline the economic performance during the outgoing fiscal year.

Pakistan will present its budget tomorrow, Friday, as it tackles a stuttering economy with huge deficits, dwindling foreign reserves, a widening current account deficit and inflation in the double digits.

“As soon as the economy starts growing, the current account deficit goes out of control and [the nation] begins to face [exchange rate] and balance of payment crises,” the finance minister said at a press conference in Islamabad.

According to Pakistan Economic Survey 2021-22, the GDP at current market rate stood at Rs66,950 billion after a growth of 20 percent in comparison to the previous year. In dollar terms, it remained at $383 billion.

The document also informed that Pakistan’s per capita income was recorded at $1,798 during FY2022, reflecting an improvement in the overall economic prosperity of the country.

The finance minister said that Pakistan’s economic woes were mainly caused by its growing imports which were likely to reach around $77 billion by the end of the new fiscal year.

“Pakistan’s imports have rapidly increased and have gone up by about 48 percent in comparison to the last year,” he added. “While our exports have grown as well, they have only increased by 28 percent. So, your trade deficit has reached $45 billion.”

Ismail said Pakistan’s forex reserves would rise to more than $12 billion after it receives some $2.4 billion from China in the next two to three days.

“I hope that by tomorrow or by the coming Monday or Tuesday, our reserves will increase to $12 billion,” Ismail said. “We are very grateful to China as we are about to receive $2.4 billion from them in the next few days.”

Pakistan’s forex reserves currently stand at $9.7 billion, or enough to cover less than 45 days of its imports. However, the finance minister said the country was not facing a threat of default on its financial commitments.

“We have avoided the imminent default that Pakistan was facing and ... we are headed toward stability,” he maintained. “We will ensure Pakistan grows with sustainability ... a growth where we will not face a balance of payment crisis.”

According to the survey document, the total public debt of the country stood at Rs44.36 trillion by the end of March, including domestic and external debt of Rs28.07 trillion and $88.8 billion (Rs16.29 trillion), respectively.

 

“Pakistan’s strategy to reduce its debt burden to a sustainable level includes a commitment to run primary surpluses, maintain low and stable inflation, promote measures that support higher long-term economic growth and follow an exchange rate regime based on economic fundamentals,” said the document.

“With a narrower fiscal deficit, public debt is projected to enter a firm downward path, while the Government’s efforts to improve maturity structure will enhance public debt sustainability,” it continued.

Pakistan’s new federal budget will be closely watched by the IMF whose board has to clear a seventh review to resume a $6 billion rescue package signed in 2019. Bailout talks in Doha last month ended without a breakthrough.

Previously, Ismail promised an effective strategy to achieve GDP growth of up to 6 percent that would also help control inflation with strategic measures while addressing a day-long Pre-Budget Business Conference this week.

“We have prepared a very progressive budget which you will see but we are going to do fiscal consolidation,” he said.

Various estimates suggest the government will set a total budget outlay of between Rs9 trillion to Rs9.5 trillion for the next fiscal year.

Speaking at the occasion, Pakistan’s planning minister Ahsan Iqbal accused the previous government of not giving due significance to the multibillion-dollar China-Pakistan Economic Corridor (CPEC) while pointing out that the government was “reviewing it and taking other initiatives to improve the condition of the country’s least developed areas.”

According to the survey document, Pakistan and China have successfully launched 56 projects under the framework.

“Out of these projects, 26 projects worth approximately $17 billion have been completed so far and 30 projects worth $8.5 billion are under construction,” it said.

The document also pointed out Pakistan’s inflation from July to April of the outgoing fiscal year was recorded at 11 percent, compared to the targeted 8 percent, due to an increase in global commodity prices including the crude and edible oil.

“The pressures on headline inflation can fairly be attributed to adjustment in prices of electricity and gas, a significant increase in the non-perishable food prices, exchange rate depreciation along with rapid increase in global fuel and commodity prices,” it added.

Inflation in Pakistan was recorded at 13.8 percent in May, 13.4 percent in April and 10.9 percent in May 2021.


Police probe ‘serious’ sexual assault on teen wife in Karachi, husband in custody

Updated 8 sec ago
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Police probe ‘serious’ sexual assault on teen wife in Karachi, husband in custody

  • 19-year-old woman in coma after alleged assault days after marriage, attempted murder, rape filed against spouse
  • Over 32,000 gender-based violence cases reported in Pakistan in 2024 with conviction rates below 1 percent

KARACHI: A 19-year-old woman from the southern Pakistani city of Karachi is in a coma after allegedly being subjected to sexual violence by her husband, police and medical officials confirmed on Tuesday, in a case that has renewed focus on the country’s ongoing crisis of gender-based violence.

Police arrested the suspect, identified only as Ashok, after the victim’s family lodged a complaint under Sections 324 and 376B of the Pakistan Penal Code, which deal with attempted murder and rape. The assault allegedly took place just days after the couple were married on June 15.

“The victim, a 19-year-old from Lyari [neighborhood], is now in a coma. Her physical examination findings are consistent with sexual violence,” Dr. Summaiya Syed, Police Surgeon Karachi, told Arab News, adding that such incidents were “tragically frequent.”

“Circumstances vary and names change, but violence remains,” she said.

According to the police complaint, the woman’s condition deteriorated following a series of violent assaults by her husband. She was first taken to a local hospital by her in-laws and later shifted to Karachi’s Civil Hospital, where she remains in intensive care.

Senior Superintendent of Police (SSP) Arif Aziz said the suspect was arrested promptly after the incident was reported.

“This brutal sexual assault is a grave and serious offense, and the police are treating it with utmost urgency and priority to ensure the perpetrator is held accountable,” he said.

“We are committed to preventing such incidents in the future through firm and effective action.”

The case has drawn renewed attention to widespread violence against women in Pakistan, where incidents of domestic abuse, rape, and honor-based crimes remain pervasive.

According to a March report by the Sustainable Social Development Organization (SSDO), over 32,617 gender-based violence cases were recorded nationwide in the first part of 2024 alone, including 5,339 cases of rape.

Despite the scale of the crisis, conviction rates remain dismally low. Prosecutions for rape and so-called “honor killings” result in a conviction in just 0.5 percent of cases, according to SSDO.

Activists cite underreporting, entrenched stigma, patriarchal attitudes and weak enforcement mechanisms as key reasons for the lack of justice.

“This case is horrifying, but sadly not isolated,” said Mehnaz Rehman, former Resident Director of the Aurat Foundation and a long-time women’s rights activist.

“Without accountability, these crimes will continue.”

Over the years, several high-profile rape and assault cases have sparked public outrage in Pakistan, including the 2020 gang rape of a woman on the Lahore-Sialkot motorway in front of her children, and the 2018 rape and murder of six-year-old Zainab Ansari in Kasur.

While both cases led to convictions, activists say such outcomes remain rare and systemic reform is still lacking.

The Karachi case remains under investigation.


Pakistan plans to slash container dwell time at ports by 70% to boost trade efficiency

Updated 3 min 47 sec ago
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Pakistan plans to slash container dwell time at ports by 70% to boost trade efficiency

  • Government forms committee to identify bottlenecks, recommend faster cargo clearance measures
  • It aims to deploy drones, AI to ensure real-time monitoring of vessel docking and container movement

KARACHI: Pakistan plans to cut container dwell time at its seaports by up to 70% to improve trade competitiveness and ease congestion, according to an official statement by the Ministry of Maritime Affairs on Tuesday, which also announced the formation of a committee to present recommendations within ten days.

The initiative is part of the government’s broader efforts to modernize its port infrastructure and position Pakistan as a regional trade and transit hub.

Islamabad is working to increase the efficiency of its ports in Karachi and Gwadar as it seeks to expand connectivity with global markets, including plans to launch a ferry service to Gulf countries and encourage landlocked Central Asian states to use Pakistani ports for access to international sea lanes.

The announcement to reduce the dwell time followed a meeting chaired by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry at the Federal Board of Revenue headquarters with senior officials from Pakistan Customs, Karachi Port Trust and other relevant bodies.

“Minister Junaid Chaudhry emphasized that reducing dwell time is not merely an administrative change, but a strategic move to enhance port efficiency, lower logistics costs and strengthen Pakistan’s standing in the regional trade and logistics landscape,” the statement said.

He also announced the formation of the committee and tasked its members with identifying procedural bottlenecks and proposing measures to expedite cargo clearance.

Currently, container dwell time at Pakistani ports averages around a week. The government’s target is to reduce this to just two days, following directives from Prime Minister Shehbaz Sharif.

To support implementation, the Ministry of Maritime Affairs will establish a dedicated monitoring room to oversee real-time container movements. 

“Drones and AI technology will also be deployed to monitor vessel docking operations through to the container’s exit from the terminal,” the minister said during the meeting.

He noted that persistent delays in container release impose additional costs on importers and exporters, diminishing Pakistan’s competitiveness in international markets.


White House calls Pakistan’s Nobel nomination for Trump ‘win’ for American people

Updated 22 min 48 sec ago
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White House calls Pakistan’s Nobel nomination for Trump ‘win’ for American people

  • Islamabad said it would recommend Trump for Peace Prize for helping resolve recent conflict with India
  • Pakistan says US intervention ended the fighting, India says it was due to a bilateral agreement 

ISLAMABAD: White House Press Secretary Karoline Leavitt on Monday called Pakistan’s nomination of US President Donald Trump for the Nobel Peace Prize a “win” for the American people. 

Islamabad said last month it would recommend Trump for the Nobel Peace Prize, an accolade that he has repeatedly said he craves, for his work in helping to resolve the recent conflict between India and Pakistan.

In May, a surprise announcement by Trump of a ceasefire brought an abrupt end to a four-day air war between nuclear-armed foes India and Pakistan. Trump has since repeatedly said that he averted a nuclear war, saved millions of lives and grumbled that he got no credit for it.

Pakistan agrees that US diplomatic intervention ended the fighting but India says it was a bilateral agreement between the two militaries.

On Monday evening, Leavitt wrote on X that “over the past few weeks, President Trump has delivered more wins for the American people than most Presidents do in four years.”

In the list of his victories she included:

“Pakistan nominated President Trump for the Nobel Peace Prize in recognition of his decisive diplomatic intervention to prevent a nuclear war between India and Pakistan.”

 

 

 

Pakistan on June 21 said it was nominating Trump as “a genuine peacemaker” for his role in bringing the conflict with India to an end, adding that he had “demonstrated great strategic foresight and stellar statesmanship.”

In a social media post a day earlier, Trump gave a long list of conflicts he said he had resolved, including India and Pakistan and the Abraham accords in his first term between Israel and some Muslim-majority countries. 

He added: “I won’t get a Nobel Peace Prize no matter what I do.”

Pakistan’s move to nominate Trump came in the same week its army chief, Field Marshal Asim Munir, met the US leader for lunch. It was the first time that a Pakistani military leader had been invited to the White House when a civilian government was in place in Islamabad.

On Monday, Israeli Prime Minister Benjamin Netanyahu told Trump he had nominated him for the Nobel Peace Prize, handing Trump a nomination letter during a meeting at the White House.


Pakistan urges world to accept Taliban’s de facto rule to avoid new Afghan conflict

Updated 08 July 2025
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Pakistan urges world to accept Taliban’s de facto rule to avoid new Afghan conflict

  • Pakistan has not officially recognized Taliban government in Afghanistan, which seized Kabul in August 2021
  • Pakistan’s UN ambassador says militant groups from Afghanistan are a threat to Islamabad’s national security

ISLAMABAD: Pakistan’s United Nations Ambassador Asim Iftikhar Ahmad this week called on the international community to acknowledge the de facto Taliban rule in Afghanistan, warning that failure to do so could risk igniting another conflict in the war-torn country. 

Pakistan has not officially recognized the Taliban government in Afghanistan, which seized Kabul in August 2021 after the chaotic withdrawal of US-led coalition forces from the country, but has retained high-level diplomatic engagement with Kabul. Islamabad has also called on the international community to engage with the Taliban government and unfreeze Afghanistan’s financial assets to ward off the country’s humanitarian crisis. 

Ahmad’s statement follows Russia’s move to become the first country to recognize the Taliban last week as it accepted the credentials of a new ambassador of Afghanistan. 

“We should acknowledge that there is one authority that controls the territory of Afghanistan with no credible challenge to it,” Ahmad said on Monday, during a UN General Assembly plenary meeting on Afghanistan. “We must avoid actions that could ignite another conflict in Afghanistan which can affect the entire region.”

Pakistan and Afghanistan have had rocky relations mainly due to a spike in militancy in Pakistan’s western regions that border Afghanistan. Islamabad says anti-Pakistan militants carry out cross-border attacks using safe havens in Afghanistan, a charge Kabul denies. Another source of tension has been Pakistan’s drive to expel Afghans, which first began in Nov. 2023.

Ahmad warned that “terrorism” emanating from Afghanistan continues to be a serious threat to its neighbors, particularly Pakistan. He said Daesh and other militant entities such as the Al-Qaeda, the Tehreek-e-Taliban Pakistan (TTP) and Baloch militant groups continue to operate from “ungoverned spaces” in Afghanistan.

He said the TTP is directly threatening Pakistan’s national security with 6,000 fighters at its disposal, alleging that Islamabad has evidence of the outfit’s collaboration with Baloch militant groups to disrupt infrastructure and economic development projects in Pakistan.

“The international community must speak with a unified voice to hold the de facto authorities to their commitments, including not to allow the use of Afghan soil against any country and to ensure the shared goal of a stable and prosperous Afghanistan free from terrorism, at peace within, and without,” Ahmad said. 

The Pakistani envoy said Islamabad is ready to support regional and international engagement efforts with Afghanistan via clear objectives, reciprocal steps and a realistic roadmap. 

“What could not be realized through force, will not be achieved through isolation, sanctions or financial coercion,” he said. 

The development took place the same day that Pakistan and Afghanistan held the inaugural additional secretary-level talks between the two countries, pursuant to the decisions reached during the visit of Pakistan’s Deputy Prime Minister Ishaq Dar to Kabul in April. 

The two sides discussed deepening trade and transit cooperation, militancy, the deportation of Afghan refugees from the country and the legal travel of the citizens of the two nations in the talks on Monday.


Pakistan, UAE eye enhanced media collaboration to promote mutual understanding

Updated 08 July 2025
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Pakistan, UAE eye enhanced media collaboration to promote mutual understanding

  • Pakistan’s envoy meets UAE Media Council secretary-general Mohammed Saeed Al Shehhi in Dubai
  • Al Shehhi acknowledges Pakistan’s rich cultural heritage, tourism potential, says Pakistani embassy

ISLAMABAD: Pakistan and the UAE agreed to enhance collaboration in the media sector to promote mutual understanding and “positive narratives” between the two nations, the Pakistani embassy in Abu Dhabi said this week. 

Pakistan and the UAE enjoy cordial ties rooted in shared religion and culture. The two nations enjoy cooperation in defense, economic, trade, commerce, tourism and several other sectors of the economy. 

Pakistan’s Ambassador to the UAE Faisal Niaz Tirmizi met Mohammed Saeed Al Shehhi, the UAE Media Council’s secretary-general, in Dubai on Monday. Tirmizi underscored brotherly ties between the two states, highlighting the Pakistani expatriate community’s significant role in the UAE’s development, the Pakistan embassy in Abu Dhabi said. 

“The meeting focused on exploring avenues for collaboration in the media sector, aimed at promoting mutual understanding and positive narratives between the two nations,” the embassy said. 

Al Shehhi reaffirmed the UAE Media Council’s commitment to strengthening cooperation with Pakistan, the embassy said. He acknowledged Islamabad’s rich cultural heritage, natural beauty and tourism potential, particularly in its northern regions, it added. 

The development takes place as a senior Pakistani government delegation is in Dubai to participate in a two-day experience exchange program, aiming to learn from the UAE’s governance and public sector innovation models.

The program, running from July 8–9, includes sessions with various UAE ministries and authorities and focuses on innovative approaches to public service delivery, competitiveness, and institutional reform. 

The UAE is an important ally for Pakistan, given it is the South Asian nation’s third-largest trading partner after China and the United States. It is also considered a critical market due to its geographic proximity and logistical advantages to Pakistan.

The Gulf state is also Pakistan’s second-largest source of foreign remittances, after Saudi Arabia, with over 1.8 million Pakistani expatriates living and working there.