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

Pakistan's Finance Minister Miftah Ismail (L) speaks during the launch ceremony of 'Economy Survey 2021-22' as the Minister for Planning and Development Ahsan Iqbal watches in Islamabad on June 9, 2022. (AFP)
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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.


Pakistan PM stresses education as key to empowerment on International Literacy Day

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Pakistan PM stresses education as key to empowerment on International Literacy Day

  • Shehbaz Sharif calls literacy fundamental human right and essential for creating greater economic opportunities
  • PM stresses the importance of integrating technology into the education system to benefit from digital economy

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday emphasized the importance of literacy for people’s empowerment and increased economic opportunities during International Literacy Day, observed on September 8.
According to WorldMetrics, Pakistan’s literacy rate stands at 59 percent, while the country grapples with the challenge of 23 million out-of-school children.
The government’s spending on education remains low, at just 2.8 percent of GDP, contributing to poor infrastructure, limited access to quality education and a shortage of trained teachers, particularly in rural areas.
“Literacy is a fundamental human and constitutional right,” the prime minister was quoted as saying in a statement circulated by his office. “Education and literacy are the guarantees of our country’s future.”
“Literacy is not merely the ability to read and write,” he continued. “It is a gateway to empowerment, economic opportunities and active participation in society.”
The prime minister reaffirmed his administration’s commitment to advancing the education agenda for a more informed nation.
“Education is the backbone of our society,” he maintained. “To this end, we have declared an educational emergency across the country, launched an enrollment campaign for students and introduced midday meals in schools.”
“We have also introduced scholarships and other incentives to reduce the dropout rate and encourage every child to complete their education,” he added.
Sharif said the government was doing everything to integrate technology into the education system, ensuring that Pakistani youth was equipped with the necessary skills to thrive in the digital economy.
He noted that the private sector and civil society organizations were equal partners in the government’s efforts to spread education in Pakistan.
“By establishing effective partnerships, we can link education with employment and self-employment opportunities, creating a stronger and more inclusive workforce,” he added.


Pakistan PM praises naval forces for defending maritime boundaries on Navy Day

Updated 08 September 2024
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Pakistan PM praises naval forces for defending maritime boundaries on Navy Day

  • The day commemorates Pakistan Navy’s strategic achievements during the 1965 war
  • Naval forces also reaffirm commitment to safeguarding Pakistan’s territorial waters

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday praised Pakistan’s naval forces for safeguarding the country’s maritime boundaries in honor of Navy Day, observed on September 8.
Navy Day is to commemorate the Pakistani naval forces’ strategic achievements during the 1965 war with India, particularly Operation Dwarka.
The operation, which targeted and destroyed key radar installations along the Indian coast, played a role in disrupting air attacks on Karachi.
“On Navy Day, I extend my heartfelt felicitations to all members of the Pakistan Navy,” the prime minister said in a social media post.
“Their steadfast commitment to protecting our maritime boundaries exemplifies their unwavering dedication to duty and passion for the country,” he added. “Regardless of the challenges they face, their determination and spirit remain resolute. We deeply value their service and sacrifices, and their contributions to safeguarding our maritime borders.”

 
The Pakistan Navy also released a video earlier in the day, showcasing the country’s mountainous landscapes and meandering rivers while reaffirming its commitment to safeguarding Pakistan’s territorial waters.


Two brothers of police official killed in northwestern Pakistan amid rising militant violence

Updated 08 September 2024
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Two brothers of police official killed in northwestern Pakistan amid rising militant violence

  • Incident took place in the volatile Lakki Marwat district in Pakistan’s Khyber Pakhtunkhwa province
  • The brother of a station house officer in the region were killed in front of their residence on Saturday

PESHAWAR: Unidentified gunmen killed two brothers of a police official in Pakistan’s northwestern Lakki Marwat district, confirmed a spokesperson for the law enforcement agency on Sunday, as the country grapples with a surge in militant violence in its western region, including Khyber Pakhtunkhwa province.
Pakistani authorities say attacks on security forces and police personnel have significantly increased since the US-led coalition forces left Afghanistan in August 2021 and the Taliban took power in Kabul.
Pakistan has repeatedly claimed that militants have been using Afghan soil to carry out attacks on civilians and security forces, even blaming the Afghan Taliban for facilitating them.
However, the administration in Kabul denies this, asserting that Pakistan’s security problems are Islamabad’s internal issue.
Asked about the Lakki Marwat attack, local police spokesperson Shahid Hameed confirmed the incident and provided details.
“Last night [Saturday], at around 9:30 PM, unidentified terrorists opened fire in front of the residence of Station House Officer [SHO] Shafi Ullah in the village of Abakhel, which is within the jurisdiction of Lakki City Police Station,” he said.
He explained that the SHO’s brothers were outside the house after offering their night prayers when the gunmen, riding a motorbike, opened fire, killing them instantly.
When asked if they had received threats from militants, Hameed maintained no one in the region was safe, and everyone faced threats.
So far, no group has claimed responsibility for the attack, though the proscribed Tehreek-e-Taliban Pakistan (TTP) has remained active in the region in such violent activities.
Last month, militants targeted a convoy of local judges in Tank district. Prior to that, an attack on a police station in February claimed the lives of 10 officers and injured six others in Dera Ismail Khan.
Pakistani officials say TTP militants have been using night vision devices and advanced weaponry left behind by US-led forces in Afghanistan.


Women ride Pakistan’s economic crisis into the workplace

Updated 08 September 2024
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Women ride Pakistan’s economic crisis into the workplace

  • Pakistan was first Muslim nation to be led by a woman PM in 1980s, women CEOs grace power lists in Forbes magazine, make up ranks of police and military
  • But much of Pakistani society operates under a traditional code which requires women to have permission from their family to work outside of the home

KARACHI: Amina Sohail veers through heavy traffic to pick up her next passenger — the sight of a woman riding a motorcycle drawing stares in Pakistan’s megacity of Karachi.
The 28-year-old is the first woman in her family to enter the workforce, a pattern emerging in urban households coming under increasing financial pressure in Pakistan.
“I don’t focus on people, I don’t speak to anyone or respond to the hooting, I do my work,” said Sohail, who joined a local ride-hailing service at the start of the year, transporting women through the dusty back streets of the city.
“Before, we would be hungry, now we get to eat at least two to three meals a day,” she added.
The South Asian nation is locked in a cycle of political and economic crises, dependent on IMF bailouts and loans from friendly countries to service its debt.
Prolonged inflation has forced up the price of basic groceries such as tomatoes by 100 percent. Electricity and gas bills have risen by 300 percent compared to July last year, according to official data.
Sohail used to help her mother with cooking, cleaning and looking after her younger siblings, until her father, the family’s sole earner, fell sick.
“The atmosphere in the house was stressful,” she said, with the family dependent on other relatives for money. “That’s when I thought I must work.”
“My vision has changed. I will work openly like any man, no matter what anyone thinks.”

In this photograph taken on August 19, 2024, Amina Sohail, a motorbike rider with a local ride-hailing service provider Bykea, speaks during an interview with AFP in Karachi. (AFP)

Pakistan was the first Muslim nation to be led by a woman prime minister in the 1980s, women CEOs grace power lists in Forbes magazine, and they now make up the ranks of the police and military.
However, much of Pakistani society operates under a traditional code which requires women to have permission from their family to work outside of the home.
According to the United Nations, just 21 percent of women participate in Pakistan’s work force, most of them in the informal sector and almost half in rural areas working in the fields.

In this photograph taken on August 17, 2024, receptionist Hina Saleem talks on a telephone at a leather factory in Karachi. (AFP)

“I am the first girl in the family to work, from both my paternal and maternal side,” said Hina Saleem, a 24-year-old telephone operator at a leather factory in Qur’angi, Karachi’s largest industrial area.
The move, supported by her mother after her father died, was met with resistance from her extended family.
Her younger brother was warned that working could lead to socially unacceptable behavior, such as finding a husband of her choice.
“My uncles said ‘get her married’,” she told AFP. “There was lots of pressure on my mother.”
At the changeover of shifts outside the leather factory, workers arrive in painted buses decorated with chinking bells, with a handful of women stepping out amid the crowd of men.

In this photograph taken on August 17, 2024, employee Anum Shahzadi sorts jackets at a leather factory in Karachi. (AFP)

Nineteen-year-old Anum Shahzadi, who works in the same factory inputting data, was encouraged by her parents to enter the workforce after completing high school, unlike generations before her.
“What is the point of education if a girl can’t be independent,” said Shahzadi, who now contributes to the household alongside her brother.
Bushra Khaliq, executive director for Women In Struggle for Empowerment (WISE) which advocates for political and economic rights for women, said that Pakistan was “witnessing a shift” among urban middle class women.
“Up until this point, they had been told by society that taking care of their homes and marriage were the ultimate objective,” she told AFP.
“But an economic crunch and any social and economic crises bring with them a lot of opportunities.”

In this photograph taken on August 18, 2024, a homemaker Farzana Augustine prepares lunch for her son at their house in Karachi. (AFP)

Farzana Augustine, from Pakistan’s minority Christian community, earned her first salary last year at the age of 43, after her husband lost his job during the Covid-19 pandemic.
“My wife had to take over,” Augustine Saddique explained to AFP.
“But it is nothing to be sad about, we are companions and are running our house together.”
The sprawling port metropolis of Karachi, officially home to 20 million people but likely many millions more, is the business center of Pakistan.
It pulls in migrants and entrepreneurs from across the country with the promise of employment and often acts as a bellwether for social change.

In this photograph taken on August 16, 2024, childminder Zahra Afzal heads to work, in Karachi. (AFP)

Nineteen-year-old Zahra Afzal moved to Karachi to live with her uncle four years ago, after the death of her parents, leaving her small village in central-eastern Pakistan to work as a childminder.
“If Zahra was taken by other relatives, she would have been married off by now,” her uncle Kamran Aziz told AFP, from their typical one room home where bedding is folded away in the morning and cooking is done on the balcony.
“My wife and I decided we would go against the grain and raise our girls to survive in the world before settling them down.”
Afzal beams that she is now an example for her sister and cousin: “My mind has become fresh.”


Pakistan reaffirms commitment to UN peacekeeping on International Day of Police Cooperation

Updated 08 September 2024
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Pakistan reaffirms commitment to UN peacekeeping on International Day of Police Cooperation

  • Pakistan says it has contributed 235,000 troops to 48 peacekeeping missions in 29 countries since 1960
  • Over 180 Pakistanis deployed in different parts of the world have died during these UN operations

ISLAMABAD: Pakistan’s Permanent Mission to the United Nations on Saturday reaffirmed its commitment to UN peacekeeping missions while marking the International Day of Police Cooperation, noting its police contingents have actively contributed to global peace by serving the world body since the 1960s.
UN peacekeeping operations, carried out in conflict zones, are crucial in maintaining security, protecting civilians and fostering sustainable peace in post-conflict areas.
In May, Pakistan announced it had contributed 235,000 troops to 48 missions in 29 countries since 1960.
A month later, Interior Minister Mohsin Naqvi pledged to send 128 additional police officers to UN peacekeeping forces after meeting with UN Secretary General Antonio Guterres in New York.
“Since the 1960s, Pakistan’s police have actively contributed to United Nations’ peacekeeping missions in countries such as Sudan, Haiti, Kosovo, and the Democratic Republic of the Congo,” the Pakistani diplomatic mission said in a social media post. “Their roles include maintaining law and order, training local police forces, and providing security for humanitarian operations.”
It said Pakistan also deploys female officers, enhancing their ability to engage with vulnerable groups, adding the professionalism of the country’s police has earned them international recognition.
“On the International Day of Police Cooperation today, we reiterate our resolve to continue working under the @UNPeacekeeping to promote global peace, security and stability,” it continued.

 
According to the Pakistan military’s statement, more than 180 Pakistanis deployed in different parts of the world have died during the peacekeeping operations.