Pakistan minister vows ‘exemplary punishment’ for banks involved in currency exchange rate manipulation 

A dealer counts Pakistani currency notes next to US dollars at a currency exchange shop in Karachi on April 15, 2019. (AFP/File)
Short Url
Updated 12 November 2022
Follow

Pakistan minister vows ‘exemplary punishment’ for banks involved in currency exchange rate manipulation 

  • Pakistan’s commercial banks earned a record high profit of $383 million in the quarter ending on September 30 
  • The income of banks due to the foreign exchange rate volatility remained 50-550 percent on a year-on-year basis 

KARACHI: Pakistan’s state minister for finance on Friday vowed “exemplary punishment” for commercial banks allegedly involved in the currency exchange rate manipulation as the central bank chief said the scope of an ongoing probe into the matter could be expanded. 

Jameel Ahmed, the Pakistani central bank governor, last month informed a parliamentary committee on finance and revenue that authorities had launched an investigation against eight banks for their alleged involvement in exchange rate manipulation, adding that more banks would be investigated in the next phase. 

Ahmed told the Senate committee on finance and revenue on Friday that commercial banks charged extra dollars on payments for Letters of Credit (LCs), whenever they faced shortage of greenback. 

Briefing the senators, State Minister for Finance Ayesha Ghous Pasha said the government would hand down “exemplary punishments” to banks that were over-charging importers for LC payments. 

“The banks would be heavily fined so that no one will dare get involved in such activity in the future,” Pasha said. 

Pakistan’s commercial banks earned a record high profit of Rs85 billion ($383 million) in the quarter ending on September 30, with the record appreciation of dollar being a major driver of profit growth. 

The income of the banks due to the foreign exchange rate volatility remained 50-550 percent on a year-on-year basis, with the US dollar going up by 46 percent from Rs157 in June 2021 to Rs229 by June 2022, Khurram Schehzad, CEO of the Alpha Beta Core financial advisory firm, said this month. 

Also on Friday, the central bank introduced measures for the identification of illegal foreign exchange activities. 

“In order to promote an environment of accountability and integrity, the State Bank of Pakistan (SBP) has introduced a dedicated email address ([email protected]),” the central bank said in a statement. 

It said the public at large could report any unauthorized foreign exchange activity to this email address, while it might also be used to report any unauthorized activity carried out by an exchange company or if an exchange company was not providing a system-generated receipt of a currency exchange transaction. 


Senate body approves controversial bill to amend Pakistan cybercrime law

Updated 27 January 2025
Follow

Senate body approves controversial bill to amend Pakistan cybercrime law

  • The new law aims to set up a social media regulatory authority that will have its own investigation agency and tribunals
  • These tribunals will be able to try and punish offenders with prison sentences of up to three years and fines of Rs2 million

ISLAMABAD: A standing committee of Pakistan’s Senate, the upper house of parliament, on Monday approved a bill to amend the country’s cybercrime law, the committee chairman said, amid opposition from journalists and rights groups.
Pakistan’s National Assembly, lower house of parliament, introduced and passed the amendments to the Pakistan Electronic Crimes Act (PECA) on Thursday. The amendments were presented in the Senate on Friday and were forwarded to a relevant committee for consideration. After their passage from both houses, the draft will be sent to the president to be signed into a law.
The new regulations will set up a social media regulatory authority that will have its own investigation agency and tribunals, according to a draft on the parliament’s website. Such tribunals will be able to try and punish offenders with prison sentences of up to three years and fines of two million rupees ($7,200) for dissemination of “false or fake” information.
In his report, Senator Faisal Rehman, chairman of the Senate Standing Committee on Interior, said the proposed amendments establish a robust framework for tackling cybercrimes through the creation of a key government mechanism, which will “ensure the protection of the citizens’ digital rights, regulate online content, and promote secure and responsible Internet usage.”
“After detailed discussion, the bill was put to the vote of the committee which was passed by the majority votes,” Senator Rehman said. “The committee recommends that ‘The Prevention of Electronic Crimes (Amendment) Bill, 2025,’ as passed by the National Assembly, may be passed by the House [Senate].”
The draft is expected to be presented before the Senate in the next few days, before being sent to the president for a final nod.
Pakistan’s Law Minister Azam Nazeer Tarar told parliament on Thursday the law was introduced to block “false and fake” news on social media, which he said had no specific regulations to govern it.
But the proposed amendments have angered journalism groups and rights activists, which say it is aimed at curbing press freedom.
“We reject this unilateral decision by the government to set up any such tribunals,” Pakistan’s Federal Union of Journalists (PFUJ) President Afzal Butt told Reuters on Friday. “We also are in favor of regulations, but, you know, a law enforcement agency or a police officer can’t decide what is false or fake news.”
Global human rights watchdog Amnesty International said the amendment will “further tighten” the government’s grip on the “heavily controlled digital landscape” in the South Asian country.
The Prevention of Electronic Crimes Act (PECA), passed in 2016, triggered widespread criticism from human rights organizations and activists for its potential for “harmful impact” on the right to freedom of expression and access to information in Pakistan.
Reporters Without Borders, an organization that promotes and defends press freedom, ranked Pakistan low on its 2024 World Press Freedom Index, at number 152. The group also says Pakistan is one of the most dangerous places for journalists to work.


Pakistan ex-PM Khan, wife appeal graft convictions

Updated 27 January 2025
Follow

Pakistan ex-PM Khan, wife appeal graft convictions

  • Khan has been convicted four times since his arrest in Aug. 2023, with two convictions overturned and the sentences in the other two cases suspended
  • A graft court this month found Khan and his wife guilty of ‘corruption’ over a welfare foundation they established together called the Al-Qadir Trust

ISLAMABAD: Pakistan’s jailed former prime minister Imran Khan and his wife Bushra Bibi appealed against their convictions for graft on Monday, his lawyer said.
Khan, 72, has been held in custody since August 2023 charged in around 200 cases that he claims are politically motivated.
The former cricketing star was sentenced to 14 years in jail and his wife to seven this month in the latest case to be brought against them.
“We have filed appeals today and in the next few days it will go through clerical processes and then it will be fixed for a hearing,” Khan’s lawyer Khalid Yousaf Chaudhry told AFP outside Islamabad High Court.
Khan has been convicted four times since his arrest, with two convictions overturned and the sentences in the other two cases suspended.
A special graft court found the pair guilty of “corruption and corrupt practices” over a welfare foundation they established together called the Al-Qadir Trust.
The court hearing for the case was postponed three times and his Pakistan Tehreek-e-Insaf (PTI) party said earlier it was being used to pressure him into cutting a deal with the government to step back from politics.
Khan alleged before the conviction that he had been “indirectly approached” about the possibility of house arrest at his sprawling home on Islamabad’s outskirts.
Bibi, a faith healer who married Khan shortly before he was elected in 2018, is being held at the same jail as her husband in the garrison city of Rawalpindi, close to the capital Islamabad.
Khan’s popularity continues to undermine a shaky coalition government that kept PTI from power in elections last year.
Even from behind bars, Khan has fired off statements through his legal team railing against the government and promising to fight his battles through the courts.
Sometimes violent protests have paralyzed Islamabad in recent months and the party has announced further rallies next month to mark one year since elections that were marred by allegations of rigging.
Khan called off talks with the government last week aimed at easing political tensions.
Ousted from power by a no-confidence vote in 2022, the former cricket star has since launched an unprecedented campaign in which he has openly criticized Pakistan’s powerful generals.
Analysts say the military’s leaders are Pakistan’s kingmakers, although the generals deny interfering in politics.
A UN panel of experts found last year that Khan’s detention “had no legal basis and appears to have been intended to disqualify him from running for political office.”
Khan was barred from standing in last February’s election and his PTI party was hamstrung by a widespread crackdown.
PTI won more seats than any other party but a coalition considered more pliable to the military’s influence shut them out of power.


Pakistan sets up pavilion at Arab Health expo to demonstrate health care manufacturing prowess

Updated 27 January 2025
Follow

Pakistan sets up pavilion at Arab Health expo to demonstrate health care manufacturing prowess

  • The exhibition, running from Jan. 27 till Jan. 30, focuses on nine key product sectors, including medical equipment, disposables and surgical goods
  • Pakistan Pavilion is hosting 40 Pakistani firms at the exhibition, highlighting the importance of enhancing Pakistan’s exports across diverse sectors

ISLAMABAD: Pakistan has set up its pavilion at the Arab Health 2025 exhibition in Dubai to showcase the South Asian country’s capabilities in health care manufacturing and innovation, the Pakistani embassy in the United Arab Emirates (UAE) said on Monday.
Arab Health 2025, organized under the patronage of the UAE’s Ministry of Health and Prevention, is one of the largest and most prestigious health care exhibitions in the world. This year, the event is featuring over 3,800 exhibitors and has attracted more than 60,000 health care professionals and industry leaders from over 70 countries.
The exhibition, running from Jan. 27 till Jan. 30, focuses on nine key product sectors, including medical equipment and devices, disposables and surgical goods, orthopedics and physiotherapy, imaging and diagnostics, general health care services, health care infrastructure, wellness and prevention, health care transformation and health care technology.
Pakistan’s Ambassador to the UAE Faisal Niaz Tirmizi inaugurated the Pakistan Pavilion at the expo at Dubai World Trade Center, which is hosting 40 leading Pakistani companies under the umbrella of the Trade Development Authority of Pakistan (TDAP), highlighting the importance of enhancing Pakistan’s exports across diverse sectors to achieve sustainable economic growth.
“Arab Health has served as an important platform for the health care industry over the past 50 years for collaboration, innovation, and shaping the future of health care,” Ambassador Tirmizi said as he inaugurated the pavilion.
“Our mission is committed to doubling the number of Pakistani exhibitors at next year’s exhibition.”
The UAE is Pakistan’s third-largest trading partner after China and the United States (US), and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE foreign ministry. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
The Arab Health exhibition also hosts scientific conferences offering insights into the latest trends in health care, advancements in digital health and artificial intelligence and strategic investment opportunities in the sector.
Ambassador Tirmizi emphasized the significance of leveraging platforms like Arab Health to foster business-to-business linkages, drive innovation in research and development, and enhance collaboration in digital health care services, according to the Pakistani embassy.
Pakistani exhibitors expressed their satisfaction with the arrangements and reiterated the importance of Arab Health in unlocking Pakistan’s export potential in the UAE and the broader Gulf Cooperation Council (GCC) markets.


Pakistan to invite local businessmen in renewed push to privatize loss-making national airline

Updated 27 January 2025
Follow

Pakistan to invite local businessmen in renewed push to privatize loss-making national airline

  • A deal to sell off the Pakistan International Airlines fell through late last year, after a potential buyer reportedly offered a fraction of the asking price
  • Pakistan hopes the recent opening of European routes, expected to be followed by a similar announcement by the UK, will boost PIA’s selling potential

ISLAMABAD: The Pakistani government has renewed its efforts to privatize the loss-making Pakistan International Airlines (PIA) and plans on inviting local businessmen to the new bidding process, Prime Minister Shehbaz Sharif said on Monday.
Pakistan’s government has been scrambling to find a buyer to privatize the debt-ridden airline since late last year, when a deal fell through after a potential buyer reportedly offered a fraction of the asking price.
The airline posted losses of $270 million in 2023, according to local media reports. Its liabilities were nearly $3 billion, about five times the total worth of its assets.
Speaking at a ceremony in Islamabad, Sharif said a new effort was being carried out to privatize the airline, so that PIA becomes the PIA of its heydays in the ‘60s.
“This time we are inviting Pakistani businessman from Karachi, Quetta, Peshawar and Lahore,” Sharif said in televised comments. “A new bidding process will be carried out, whichever group wins the bid, PIA will be given to them.”
The development comes weeks after PIA resumed its operations in Europe, with the first flight to Paris on Jan. 10, following a hiatus of four years.
The airline was restricted in 2020 by the European Union Aviation Safety Agency (EASA), United Kingdom (UK) and the United States (US) after Pakistan launched an investigation into the validity of pilots’ licenses issued in the country, following a PIA plane crash in Karachi that killed 97 people. EASA lifted its ban on PIA in November last year, however, the airline remains barred from flying to the UK and the US.
Separately on Monday, a delegation from the UK’s Department for Transport and Civil Aviation Authority arrived in Pakistan to conduct a safety assessment ahead of the resumption of PIA flight operations between the two countries, according to the Pakistan Civil Aviation Authority (PCAA).
“There will be several high-level meetings between the two sides,” the PCAA said in a statement. “The discussions will examine aviation safety protocols, review documentation, and evaluate operational procedures.”
Pakistan’s government hopes the opening of European routes, which officials expect will be followed by a similar announcement by the UK later this year, will boost PIA’s selling potential.
“We will take PIA back to the slogan ‘Great People To Fly With’,” Sharif said at the Islamabad ceremony. “This is difficult but not impossible.”


Pakistan to issue red notices for human traffickers in bid to curb illegal practice

Updated 27 January 2025
Follow

Pakistan to issue red notices for human traffickers in bid to curb illegal practice

  • Development comes days after a boat capsized near Morocco on Jan. 15 while carrying 66 Pakistanis among 86 migrants
  • The tragedy once again underscored the perilous journeys many migrants embark on due to conflict, instability at home

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday ordered authorities to issue red notices for human traffickers in order to curb the illegal practice, Pakistani state media reported, days after a migrant boat carrying over 60 Pakistanis capsized near Morocco.
The boat capsized near Morocco’s coast on Jan. 15 while carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders. Pakistan’s Foreign Office said last week that it was in process of repatriating 22 survivors of the tragedy.
The Morocco tragedy has once again underscored the perilous journeys many migrants, including Pakistanis, embark on due to conflict and economic instability in their home countries.
PM Sharif gave the orders to issue red notices for human traffickers at the first meeting of a task force he formed last week to curb human smuggling, the Radio Pakistan broadcaster reported.
“The prime minister instructed the FIA [Federal Investigation Agency] to provide the Ministry of Foreign Affairs with the information gathered during investigations to facilitate the swift extradition of human traffickers,” the report read.
A red notice is a request from a member country of the International Criminal Police Organization (INTERPOL) to other member states to locate and arrest a person to extradite them to face criminal charges.
The Morocco tragedy is not the first one involving Pakistani migrants in recent years.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a shipwreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests. PM Sharif has also urged increased collaboration with international agencies like Interpol to ensure swift action against human trafficking networks.
“Complete eradication of human trafficking can only be achieved through the collective efforts and cooperation of all institutions,” Sharif told officials at Monday’s meeting.