Pakistani currency, equity markets post losses amid dollar shortage, political turmoil 

A view of electronic trading board on October 27, 2022. (AN Photo by Khurshid Ahmed)
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Updated 29 October 2022
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Pakistani currency, equity markets post losses amid dollar shortage, political turmoil 

  • Analysts expect continuation of bearish spell next week amid Imran Khan’s march to Islamabad 
  • Experts expect local currency to strengthen after inflows of $4 billion from multilateral donors 

KARACHI: Pakistan’s currency and stock markets on Friday closed the week on a bearish note, dealers and analysts said, amid a shortage of US dollars and the announcement of an anti-government march to Islamabad by former prime minister Imran Khan. 

Pakistan’s national currency lost its value by 0.44 percent as the greenback closed the weekend session at Rs222.47 in the interbank market, though the rupee has gained its value by 2.6 percent in the month of October, following the arrival of Ishaq Dar as the country’s new finance minister. 

Analysts say the currency is under pressure due to growing demand for dollar and a persistent shortage in the market, despite $1.5 billion inflows from the Asian Development Bank (ADB). 

“The rupee is under pressure owing to the shortage of dollar,” Tahir Abbas, head of research at Karachi-based Arif Habib Limited brokerage firm, told Arab News on Saturday. 

“It is not that Darnomics has lost its charm but the shortage of greenback in the market that is exerting pressure on rupee.” 

Dubbed Darnomics, Dar’s approach kept the rupee stable between Rs98 and Rs105 against the US dollar during his last stint in office from 2013-2017, but he was widely criticized for deliberately undervaluing the rupee by pumping dollars in the market. 
The currency market has seen little stability since Dar’s arrival in late September, following the resignation of his predecessor, Miftah Ismail. 




An equity trader is looking at computer screens on October 27, 2022 during active session in the trading hall of Pakistan Stock Exchange (PSX). (AN Photo by Khurshid Ahmed)

Abbas recalled the country is expected to receive over $4 billion from multilateral and bilateral donors by December this year, which would boost forex reserves and the exchange rate. 
“Pakistan is expecting $2 billion from the World Bank, around $1 billion through UN aid, while the 9th review of the International Monetary Fund (IMF) program is due next month that would also clear the way for around $1 billion,” he said. 
Pakistani experts expect the visit of Prime Minister Shehbaz Sharif to China will also bear fruit in terms of more inflows and rescheduling of current loans. 
“All these developments are expected to boost the currency to around Rs215 in the interbank market in the coming months,” Abbas explained. 
Pakistan’s equity market also reacted on Friday to the weakening currency and the increasing political uncertainty after the start of the long march by Khan and his supporters. 
The benchmark KSE-100 index lost 462.53 points to close at 41,140 points at the end of the weekend trading session. 
“Stocks fell sharply lower on political uncertainty on PTI’s call for long march,” Ahsan Mehanti, a senior equity analyst, told Arab News. 
“The slump in rupee, global equity rout and weak earnings outlook played a catalyst role in bearish close.” 
Khan kicked off his march to the capital from Lahore, the capital of the northeastern Punjab province, to press the government for snap elections. 
The former premier maintains his ouster, through a parliamentary no-trust vote in April, was part of a conspiracy orchestrated by the United States. Washington and Khan’s rivals deny the allegation. 
The march has the potential to spark violence, which would plunge the impoverished country, already reeling from an economic crisis and unprecedented floods, further into turmoil. 
As the marchers are expected to reach Islamabad in the first week of November, Pakistani stock analysts expect jittery trading sessions at the market. 


Pakistan’s KP to deploy law enforcers in Kurram as sectarian clashes kill 63

Updated 27 November 2024
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Pakistan’s KP to deploy law enforcers in Kurram as sectarian clashes kill 63

  • Khyber Pakhtunkhwa government says negotiations underway between warring Kurram tribes
  • Kurram, tribal district bordering Afghanistan, has a long history of violent, sectarian clashes


PESHAWAR: Pakistan’s northwestern Khyber Pakhtunkhwa (KP) government announced on Wednesday that law enforcement personnel will be deployed in the restive Kurram district to maintain law and order, where sectarian clashes over the past three days have killed at least 63 and injured over 150. 
Kurram, a former semi-autonomous tribal area bordering Afghanistan, has a long history of violent conflicts that have claimed hundreds of lives over the years. A major conflict in the district, triggered in 2007, lasted for years before being resolved by a jirga, or a council of tribal elders, in 2011.
The recent violence in the restive district erupted earlier this month when gunmen attacked a convoy carrying members of the minority Shiite community in the Uchat area of Lower Kurram, killing 41 people. A 10-day ceasefire announced by the KP government failed to hold as clashes between warring tribes continue.
“The process of negotiations are underway to resolve the issue peacefully,” an official handout by the chief minister’s office said about a meeting held by the CM Ali Amin Gandapur on the issue on Wednesday. 
“To maintain peace, contingents of law enforcement personnel will be deployed at important places,” the statement added. 
Participants of the meeting, which also featured the KP chief secretary and other senior officials, were briefed that a damages assessment was being conducted to compensate victims of the clashes. 
KP Chief Minister Ali Amin Gandapur said the government’s top priority was ensuring lasting peace in the district. 
“The provincial government will utilize all available resources for this purpose,” he said. 
Participants were also told that standard operating procedures were being finalized to ensure the safe travel of people in the district. 
The recent clashes in Kurram mark one of the deadliest incidents in the region in recent years, following outbreaks of sectarian violence in July and September that killed dozens.
Several hundred people demonstrated against the Kurram violence last week in Pakistan’s two largest cities, Lahore and Karachi, reflecting nationwide concern over the situation.


Pakistan reports fresh polio case from country’s northwest, taking 2024 tally to 56

Updated 27 November 2024
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Pakistan reports fresh polio case from country’s northwest, taking 2024 tally to 56

  • Male child contracts polio in northwestern Dera Ismail Khan district, confirm authorities
  • Pakistan is one of only two countries worldwide where poliovirus still remains endemic 

PESHAWAR: Pakistan reported another polio case from the country’s northwestern Khyber Pakhtunkhwa (KP) province on Wednesday, taking this year’s tally of the disease to 56 cases as Islamabad struggles in its efforts to contain the infection. 

Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The nation’s polio eradication campaign has faced serious problems with a spike in reported cases this year that have prompted officials to review their approach to stopping the crippling disease.

The Regional Reference Laboratory for Polio Eradication at the National Institute of Health (NIH) confirmed the detection of the 56th wild poliovirus type 1 (WPV1) case of the year, saying that a male child in the northwestern district of Dera Ismail Khan had contracted the disease. 

“This is the seventh polio case of the year from D.I. Khan, one of the seven polio-endemic districts of southern KP,” the polio program said. 

Pakistan’s southwestern Balochistan province and KP have reported the highest number of polio cases this year, 26 and 15, respectively, while 13 have been reported from Sindh and one each from Punjab and Islamabad.

Poliovirus, which can cause crippling paralysis particularly in young children, is incurable and remains a threat to human health as long as it has not been eradicated. Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain.

In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021.

Pakistan’s polio program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners, who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams. 


‘Not on our watch’: Pakistan PM says won’t let Imran Khan supporters ‘destroy’ economy

Updated 27 November 2024
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‘Not on our watch’: Pakistan PM says won’t let Imran Khan supporters ‘destroy’ economy

  • Thousands of Khan supporters protested in Pakistan’s capital on Tuesday, clashing with law enforcers 
  • Pakistan’s finance ministry says recent protests by Khan’s party cost country a whopping $684 million per day 

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday vowed not to let former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party “destroy” the country’s economic progress, lamenting that the recent protests in Islamabad had cost the national exchequer a whopping Rs190 billion ($684 million) per day. 

Thousands of supporters of Khan’s PTI entered Pakistan’s capital on Tuesday morning, braving teargas and arrests and crossing security barriers across the country. Pakistan’s government said clashes between Khan supporters, who were demanding the jailed former premier’s release from prison, left three Rangers personnel and one cop dead. The PTI says eight of its supporters were killed and “hundreds” were feared dead, a claim the government challenges. 

Khan supporters fled the capital after security forces launched a sweeping midnight raid on Tuesday. The party, however, has said its sit-in protest against the government will continue, without specifying where it will take place. 

“My heart cries tears of blood that after working so hard, we should let Pakistan be destroyed at the hands of such anarchists and enemies of the state? 

“It is not possible, it will not happen. Not in our time, not on our watch. It will not happen, god willing,” Sharif said. “Together we will take Pakistan out of this.”

Sharif cited the finance ministry’s statement which had earlier this week said Pakistan suffered losses of $684 million per day due to the protests. 

The prime minister urged the government to think about the future course of action regarding these protests, saying that it cannot be “business as usual.”

“We cannot let Pakistan be sacrificed under any circumstances,” Sharif said. “We will break the hand that wants to sacrifice Pakistan.”

The PTI’s protest took place during a three-day visit by the president of Belarus, who arrived in Islamabad with a 68-member delegation from his country, to take part in talks related to trade and investment. 

Khan, who was ousted from power in a parliamentary no-trust vote in 2022, has been in prison since last year. He faces a slew of charges from terrorism to corruption that he says are politically motivated to keep him in jail and away from politics. 

The charges kept Khan away from Feb. 8 general elections that his party says were rigged, an accusation denied by the election commission. 


Qatari ambassador discusses bilateral investment and ties with Sindh governor

Updated 27 November 2024
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Qatari ambassador discusses bilateral investment and ties with Sindh governor

  • Qatari envoy expressed interest in large-scale investments in Pakistan, particularly Karachi, says Sindh Governor
  • PM Shehbaz Sharif last month visited Qatar to boost foreign trade, investment to stabilize $350 billion economy

KARACHI: Qatar’s Ambassador to Pakistan Ali Mubarak Ali Essa Al-Khater met Sindh Governor Kamran Tessori on Wednesday to discuss ways to increase bilateral investment and foster stronger ties between the two countries, the Governor House said. 

Pakistan’s Prime Minister Shehbaz Sharif last month visited Qatar as he sought to bolster economic cooperation amid the country’s efforts to boost foreign investment and stabilize its frail $350 billion economy.

Islamabad and Doha have attempted to forge closer business ties over the past few months, with a Qatar Investment Authority (QIA) team also expected to visit Pakistan this month to set up an information technology (IT) park. 

Al-Khater called on Tessori at the Governor House in Karachi where the two held a detailed meeting to discuss investment and other matters. 

“The meeting focused on matters of mutual interest and fostering stronger bilateral ties,” the Governor House said. “During the visit, the Ambassador praised the Governor’s initiative and expressed Qatar’s desire to strengthen relations further with Pakistan, particularly in economic collaboration.”

Tessori spoke to reporters after the meeting, acknowledging that Qatar had always supported Pakistan. He added that Pakistanis harbored “immense affection for Qatar.”

“He shared that the Ambassador conveyed Qatar’s keen interest in large-scale investments in Pakistan, particularly in Karachi,” the statement said. 

Tessori highlighted that Qatar was interested in government-to-government investments and joint ventures with Pakistani businesses. 

The Sindh governor said Al-Khater assured him of local Qatari investors’ readiness to invest in Pakistan. 

“I will provide detailed insights into sectors that can yield immediate results for investments, ensuring that this partnership benefits both nations significantly,” Tessori said.

He emphasized that Qatar’s interest is particularly crucial given Pakistan’s current economic challenges. 

“We are committed to providing a conducive environment and guarantees for Qatari investors to achieve substantial returns,” Tessori said.  

Pakistan’s desire to forge closer economic ties with allies come amid its attempts to increase trade and foreign investment after the country narrowly escaped a default last year by securing a last-gasp $3 billion financial assistance package from the International Monetary Fund (IMF).


Pakistan dispatches 21st aid consignment for Gaza, Lebanon and Syria

Updated 27 November 2024
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Pakistan dispatches 21st aid consignment for Gaza, Lebanon and Syria

  • Islamabad dispatches 17 tons of blankets, food, medicines to Damascus in Syria from Rawalpindi 
  • Israel’s military campaigns have killed over 44,000 Palestinians in Gaza since October last year

ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) on Wednesday dispatched its 21st relief consignment for the war-affected people of Syria, Lebanon and Gaza who have suffered from Israeli military aggression in the Middle East. 

Israel has been attacking what it calls Iran-linked targets in Syria for years but has ramped up such raids since the Oct. 7, 2023, attack by Hamas on Israel, leading Israel to launch a military campaign in which more than 44,000 Palestinians have been killed in Gaza and more than 3,500 people in Lebanon.

On Tuesday, Israel approved a ceasefire agreement with Lebanon’s Hezbollah group that ended nearly 14 months of fighting linked to the war in Gaza. International aid agencies and the World Health Organization (WHO) have warned Israel’s military operations in Gaza have caused starvation and diseases for thousands of people in the area.

“On the directives of the Prime Minister of Pakistan, National Disaster Management Authority (NDMA) continues to provide humanitarian aid to the war-affected people of Gaza, Lebanon and Syria,” the NDMA said in a statement. 

The 21st consignment was dispatched from Pakistan’s eastern city of Rawalpindi to Syria. The relief items were sent with the help of the Pakistan Air Force, the NDMA said, adding that they comprised 17 tons of supplies which included blankets, food and medicines. 

The NDMA said Pakistan has dispatched a total of 1,273 tons of relief items to the war-affected people of Gaza, 372 tons to the people of Lebanon, and 111 tons to Syria. 
 “The Government of Pakistan continues to send relief supplies based on the needs of the war-affected populations of Lebanon and Palestine,” the authority said. 

Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.