Analysts call Pakistan’s currency, stocks international ‘top performers’ in August

A Pakistani currency dealer counts rupees and US dollars at a currency exchange in Karachi on December 17, 2015. (AFP/File)
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Updated 15 August 2022
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Analysts call Pakistan’s currency, stocks international ‘top performers’ in August

  • Stocks surge by 22 percent while rupee appreciated by 11 percent since the beginning of this month
  • The change in market sentiment owes to expected revival of IMF program, financing from other nations

KARACHI: Local traders and analysts on Monday described Pakistan’s currency and stocks as global ‘top performers,’ saying they had recovered much of their value since the beginning of August after months of depressed trading against the backdrop of political and economic uncertainty in the country.

Pakistan’s main stock index rose by 764.25 points to close at 43,621 while the currency appreciated by 0.71 percent to close at Rs 213.98 against the US dollar in the interbank market on Monday.

The stocks and the Pakistani rupee have appreciated by 22 and 11 percent, respectively, during the ongoing month in a consistently bullish spell.

“After months of economic and political uncertainty, the rupee and stock market have emerged as top performers in August so far, beating all other countries,” Muhammad Sohail, chief executive officer of Topline Securities, a Karachi-based brokerage firm, said while referring to Bloomberg data. “The rupee is up 11 percent while KSE100 Index has surged by 22 percent in dollar terms.”

The rupee has appreciated by 11.58 percent, or Rs25.97, against the greenback in the last ten trading sessions that remained bullish.

Prior to that, Pakistan’s national currency lost its value by 17.51 percent since January due to economic concerns related to the revival of the support program of the International Monetary Fund (IMF) and the political situation that led to the ouster of former prime Minister Imran Khan in April.

The recent appreciation of the rupee is mainly due to the revival of the IMF program after Pakistani authorities and officials of the global lending agency reached a staff-level agreement for the seventh and eighth review of the loan program on July 13.

The agreement has paved the way for the disbursement of $1.2 billion by the IMF at the end of August after the approval of its executive board.

Pakistan is also expected to get some financial assistance from friendly countries, including Saudi Arabia and the United Arab Emirates (UAE), which is desperately required to bridge the financing gap recently mentioned by senior IMF officials.

These developments have also had a positive impact on the country’s equity market which had a bullish close on Monday, said analysts.

“The bullish market sentiment owes to the strengthening of the national currency along with the IMF’s letter of intent for the revival of the bailout program,” Ahsan Mehanti, chief executive officer of Arif Habib Corporation, said. “Reports of additional financial support from Saudi Arabia after the finance minister hinted at $1 billion UAE investment through Pakistan Stock Exchange [PSX] have also helped the situation.”

He added that other factors that benefitted the market included a positive sentiment in global equities and renewed foreign interest in PSX ahead of the IMF bailout receipt expected this month.

Pakistani analysts expect the rupee to stabilize between Rs200 and Rs210 against the US dollar.

“The Pakistani rupee was undervalued against the greenback which is expected to stabilize at around Rs210 after recent prospects of inflows from the IMF and friendly countries,” Samiullah Tariq, director research at the Pakistan-Kuwait Investment Company, told Arab News.

However, currency dealers said the rupee was likely to find support somewhere around Rs200 after the revival of the IMF program and expected import cuts.

“The rupee was depreciating due to the uncertainties surrounding the IMF program, though the fundamentals were sound and now the national currency is appreciating on mere promises since we have not received the funds so far,” Zafar Sultan Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), said.

“The pressure on the Pak rupee will further ease off in the coming days due to the reduction in global commodity prices, including oil and other energy products along with freight cost cuts,” he added.

Fitch Ratings in its latest Economics Dashboard released on Monday said global supply chain disruptions were beginning to unwind as shipping rates were gradually declining while the time taken to deliver goods was also falling quickly.

It added that port congestion had eased and the backlog of orders was getting cleared, raising the prospect of lower core goods inflation ahead.

“The cost of shipping freight has declined by as much as 70 percent on some routes since September 2021 while transporting cargo now takes around 90 days instead of 122 days in April 2022,” the international rating agency said. “Congestion at US ports has dropped significantly, falling by close to 80 percent since last November.”


PM hails Pakistan for ‘unstoppable, unbeatable’ performance in South Africa ODI series

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PM hails Pakistan for ‘unstoppable, unbeatable’ performance in South Africa ODI series

  • Green Shirts thrashed South Africa 3-0 after losing Twenty20 series 2-0
  • Pakistan will now play three Tests against South Africa later this month

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday praised the Pakistan cricket team for winning a three-match One Day International (ODI) series against South Africa, describing their performance as “unstoppable and unbeatable.”

The Green Shirts completed a series clean sweep over South Africa in the third ODI at the Wanderers Stadium on Sunday, with rising star Saim Ayub smashing his second century of the series and his third from five innings.

The left-handed opening batsman made a sparkling 101 off 94 balls in a Pakistan total of 308 for nine. Heinrich Klaasen thrashed 81 off 43 balls for South Africa, but the hosts were beaten by 36 runs chasing an adjusted target of 308 because of rain.

“Unstoppable and unbeatable!” Sharif remarked in a post on X. “Congratulations to Team Pakistan on an outstanding 3-0 ODI series victory against South Africa.”

The prime minister also praised the Pakistan Cricket Board chairman for the team’s performance.

“Well done, boys! Your determination, skill, and teamwork under the leadership of the PCB Chairman Syed Mohsin Raza Naqvi have made the entire nation proud,” he said.

“Keep raising the green flag high!“

South Africa won the T20I series 2-0 after the third match was washed out on Dec. 14. The ODI series win comes ahead of the upcoming International Cricket Council (ICC) Champions Trophy, which Pakistan will hosting in February and March 2025.

Pakistan will also play three Tests against South Africa later this month.


Government opens long-awaited talks with Imran Khan’s party amid deepening polarization

Updated 3 min 39 sec ago
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Government opens long-awaited talks with Imran Khan’s party amid deepening polarization

  • Negotiations began after Khan threatened civil disobedience, seeking release of political prisoners
  • The government formed a negotiating committee a day earlier to engage with Khan’s PTI team

ISLAMABAD: The government and the opposition Pakistan Tehreek-e-Insaf (PTI) of former Prime Minister Imran Khan on Monday began long-awaited negotiations to resolve issues fueling political polarization and straining the country’s fragile economy, National Assembly Speaker Ayaz Sadiq confirmed.

The government announced the formation of a committee a day earlier to hold talks with PTI. This followed ex-premier Khan’s threat to launch civil disobedience by urging overseas Pakistanis, his party’s key support base, to halt remittances if his demands, including the release of political prisoners, were not met by Dec. 22.

Khan, who has been imprisoned for over a year on charges he claims are politically motivated, has also called for judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government says involved his party supporters.

Known for taking hard-line political positions, Khan formed a seven-member committee to negotiate with the government. This was done amid growing concerns he may face trial by the military for allegedly inciting attacks on sensitive security installations during violent protests following his brief detention last year in a graft case.

“We will talk about Pakistan’s interests instead of our own,” the National Assembly speaker said while addressing the initial round of talks. “We will try to sit and discuss matters for the sake of Pakistan.”

“The solution to every problem is through talks,” he added. “We implied a democratic way and talks are being held in the parliament only.”

The government’s committee includes key figures from the ruling Pakistan Muslim League-Nawaz (PML-N), such as Deputy Prime Minister Ishaq Dar, Political Adviser Rana Sanaullah and Senator Irfan Siddiqui, alongside representatives from allied parties.

The PTI team has Khan’s loyal lieutenant Asad Qaiser, Sunni Ittehad Council Chairman Sahibzada Hamid Raza and Majlis Wehdat-i-Muslimeen’s Senator Raja Nasir Abbas.

Sadiq said the seriousness of purpose on both sides was reflected by the seniority of the people representing them.

He informed that a second meeting would follow the deliberations in the initial one.

The negotiations come days after Pakistan’s military announced prison sentences for 25 people involved in the May 9, 2023, protests, which PTI has demanded be investigated. The military said it had gathered “irrefutable evidence” against those prosecuted and reiterated its commitment to bringing the planners of the violence to justice.

The country has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote, which has also exacerbated Pakistan’s economic hardships.

Senior government representatives have recently acknowledged that negotiations could offer a pathway out of the current political impasse. However, they have cautioned that it is too early to determine which of PTI’s demands might be addressed.


Ancient winter festival in Pakistan’s Chitral concludes with rituals, traditional dance

Updated 19 min 48 sec ago
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Ancient winter festival in Pakistan’s Chitral concludes with rituals, traditional dance

  • Chawmos festival is celebrated in December by the Kalash people, who are numbered around 4,000
  • Festival marks welcoming of new year, celebrated with dance, animal sacrifice, singing and feasting

PESHAWAR: A religious winter festival celebrated by the Kalash people in the northwestern Pakistani district of Chitral has concluded after featuring rituals, traditional dance and other festivities for two weeks, provincial tourism authority said on Monday.

The Kalash are a group of about 4,000 people, possibly Pakistan’s smallest minority, who live in the mountains of the Hindu Kush, where they practice an ancient polytheistic faith.

They come together each year in December to celebrate the two-week Chawmos festival after the community finishes fieldwork and stores cheese, fruit, vegetables and grains for the year.

The festival features various rituals, animal sacrifice, dance, songs and feasting, preserving the Kalash culture and attracting a number of tourists to Pakistan’s Khyber Pakhtunkhwa.

“The religious Chawmos festival of the ancient Kalash Valley has concluded,” Mohammad Saad, a spokesperson for the KP Tourism Authority, said in a statement.

“The festival continued from Dec. 8 in the three valleys of Bumburet, Birir and Rumbur.”

The picture shared by the Khyber Pakhtunkhwa Culture and Tourism Authority on December 23, 2024, shows men wearing animal masks participate in the two-week Chawmos festival in the northwestern Pakistani district of Chitral. (kptourism/Facebook)

The Kalash community’s religion incorporates animiztic traditions of worshipping nature as well as a pantheon of gods, and its people live mainly in the three Kalash valleys of Bumburet, Birir and Rumbur.

The Chawmos festival is celebrated to welcome the new year, with the Kalash people indulging in religious practices and distributing vegetables and fruit among each other, according to the official.

The picture shared by the Khyber Pakhtunkhwa Culture and Tourism Authority on December 23, 2024, shows a man applying henna at the Chawmos festival in the northwestern Pakistani district of Chitral. (kptourism/Facebook)

The festival was attended by a large number of domestic and foreign tourists who were fully facilitated by the provincial tourism authority.

The picture shared by the Khyber Pakhtunkhwa Culture and Tourism Authority on December 23, 2024, shows Kalash tribespeople and tourists participate in the two-week Chawmos festival in the northwestern Pakistani district of Chitral. (kptourism/Facebook)

 


Pakistan defense minister blames judiciary for delayed verdicts in May 9 cases

Updated 23 December 2024
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Pakistan defense minister blames judiciary for delayed verdicts in May 9 cases

  • National problems require decisions at the earliest, says Khawaja Asif while talking to media in London
  • Protests erupted in several Pakistani cities on May 9, 2023, over ex-PM Imran Khan’s arrest in a graft case

ISLAMABAD: Pakistan’s Defense Minister Khawaja Asif on Sunday blamed the judiciary for delaying verdicts in the May 9, 2023, cases, which have so far led to the conviction of 25 supporters of former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party for attacking government buildings and military properties last year.

On Dec. 21, the Pakistan Army sentenced 25 people for participating in the violent protests that erupted in several Pakistani cities following Khan’s brief detention on corruption charges, resulting in damage to major military facilities and martyrs’ monuments in the country.

However, several suspects are also facing legal charges in anti-terrorism courts, with the military hoping for early verdicts in their cases, according to a statement announcing the sentencing of the 25 individuals, which described the rioting as “politically provoked violence.”

The PTI has denied any involvement in the violence, describing the May 9 incident as a “false flag” operation aimed at crushing the party.

“The judiciary created the biggest hurdle in this [the conviction of May 9 suspects] while this thing was allowed to linger for one and a half years,” Asif said while speaking to the media in London, the city he is currently visiting.

Describing the May 9 protests as a national problem, he said all the cases related to it required verdicts at the earliest.

The conviction of the 25 individuals followed a ruling by a seven-member Constitutional Bench of the Supreme Court of Pakistan on Dec. 13, allowing military courts to share their verdicts. Prior to that, the court had unanimously declared last year that prosecuting civilians in military courts violated the Constitution.

Khan’s PTI party rejected the military’s announcement, with opposition leader Omar Ayub Khan saying they were “against the principles of justice.”

The sentencing of the 25 individuals also raises concerns about Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.

Earlier, Asif had regretted the delay in announcing the verdicts, saying that it “raised the morale of the accused and their facilitators.”

“Right now, only the workers, who were used [to generate violence], have been punished under the law,” he had said. “This will not end until the ones, who planned this terrible day, are not brought before the law.”


Pakistan PM reviews security situation amid rising militancy, sectarian clashes

Updated 23 December 2024
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Pakistan PM reviews security situation amid rising militancy, sectarian clashes

  • PM Sharif was briefed by Mohsin Naqvi who recently attended a security meeting in Khyber Pakhtunkhwa
  • Security remained a concern for Pakistan this year, which witnessed renewed attacks on Chinese nationals

ISLAMABAD: Prime Minister Shehbaz Sharif evaluated the security situation during a meeting with Interior Minister Mohsin Naqvi in the eastern Pakistani city of Lahore on Sunday, focusing on measures taken by the authorities to ensure peace across the country.

The talks come days after Naqvi attended a high-level security meeting in the volatile Khyber Pakhtunkhwa province, which borders Afghanistan and has seen a surge in cross-border militant attacks.

The region’s Kurram district has been gripped by sectarian clashes since last month, leaving well over 100 people dead, according to local reports.

During the meeting in Khyber Pakhtunkhwa, Naqvi and other stakeholders decided to enhance the capacity of law enforcement agencies with the federal government’s full cooperation to combat mounting security challenges.

Pakistan has also faced unrest in its southwestern province of Balochistan, where separatist attacks intensified throughout the year.

“Federal Interior Minister Syed Mohsin Raza Naqvi provided a detailed briefing to Prime Minister Muhammad Shehbaz Sharif on the overall security situation in the country,” the statement from the PM Office said. “The Prime Minister expressed satisfaction with the measures taken to ensure law and order in the country.”

The meeting also included discussions on the country’s political situation, the statement added.

Security remained a major concern for the government this year, which witnessed renewed attacks on Chinese workers, including five fatalities when their convoy was targeted by an explosive-laden vehicle near Besham city in Khyber Pakhtunkhwa.

Later in October, two Chinese engineers lost their lives in a blast near Karachi airport.

On Sunday, Pakistan’s army chief, General Asim Munir, vowed to hunt down militants and their facilitators, following a deadly attack on a military outpost in Khyber Pakhtunkhwa that left 16 soldiers dead.