KARACHI: Pakistan's stock market shed more than 865 points during the trade on Monday, amid jitters from a hike in the interest rate.
Pakistan’s central bank decided on Friday to jack up key policy rate by 100 basis points to 16 percent, citing inflationary pressure on the economy which it said had not toned down yet.
But the hike sent jitters through the Pakistan Stock Exchange since it opened Monday morning.
“The market has reacted to the unexpected rise in the policy rate by 1 percent,” Ahsan Mehanti, CEO of the Karachi-based Arif Habib Corporation holding company, told Arab News.
“The appointment of the new army chief and end of long march eased off pressure at equity market, otherwise the reaction would have been much severe.”
The benchmark KSE100 index, which lost 650 points Monday morning, shed another 300 points by the afternoon. The index was at 41,972 points by the time this report was filed.
On Friday, the central bank said the decision to raise interest rate was made to ensure that elevated inflation could not get entrenched and begin to risk financial stability, hoping for higher growth on a more sustainable basis.
It said the higher inflation was driven by persistent global and domestic supply shocks that were also raising costs, amid the ongoing economic slowdown.
Pakistan’s inflation rate has hovered around historic highs in recent months and was recorded at 26.6 percent in October.
The central bank now expects the average inflation to go up to 21-23 percent during the current fiscal year (FY23), owing to higher food prices and core inflation.
Pakistan has also witnessed an economic slowdown in the wake of the recent floods that have damaged huge infrastructure and agriculture output.
ISLAMABAD: Preparations for the ICC Champions Trophy 2025 are progressing rapidly, with the upgradation of Karachi’s National Stadium nearing completion, Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Sunday during a visit to the venue.
The tournament, scheduled for February 2025, has been at the center of controversy following India's reluctance to play in Pakistan due to strained political ties.
The International Cricket Council resolved the impasse by approving a hybrid model, allowing India’s matches to be held at neutral venues while other teams play in Pakistan. The decision ensured India’s participation while retaining Pakistan as the official host.
“Remarkable progress has been made in a very short time,” Naqvi was quoted in a PCB statement. “The upgradation of the National Stadium will be completed well before the Champions Trophy tournament.”
During the visit, Naqvi reviewed ongoing projects, including the installation of new seats in enclosures, enhanced parking facilities for 2,700 vehicles and finishing work on the stadium building.
He also instructed officials to expedite the installation of LED lights and scoreboards.
“We are improving facilities for cricket fans to ensure they have a better experience,” he added.
The PCB is under pressure to ensure the country is ready to host the major ICC tournament.
Security concerns and political tensions had previously kept high-profile international cricket events away, but recent improvements in safety and infrastructure have bolstered Pakistan’s case as a venue.
Praising the rapid progress at the National Stadium, Naqvi lauded the project team for their dedication.
“I congratulate the entire team for their outstanding and swift work,” he said.
The Champions Trophy is seen as a pivotal moment for Pakistan cricket, with the PCB aiming to deliver a world-class tournament to reaffirm the country’s ability to host international events successfully.
KHAPLU, Gilgit-Baltistan: A group of students on Saturday embarked on a more than 150-kilometer march from Pakistan’s northern Gilgit district to Skardu, aiming to raise awareness about road safety.
The marchers called for making the 167-km single-carriage Juglot-Skardu Road (JSR), which connects the Gilgit division with Skardu district in the Baltistan division, safer for travelers by building tunnels at various locations prone to landslides in the mountainous region.
Skardu is a major tourism, trekking and mountaineering hub in Pakistan’s northern Gilgit-Baltistan region and home to Askole and Hushe villages, often referred to as gateways to snow-capped peaks, including K2, the Gasherbrums and Broad Peak, as well as the Baltoro, Biafo and Trango glaciers.
“We are marching just with a single agenda and our slogan is: ‘Build tunnels, save lives,’” Shehbaz Shareef, a member of the Baltistan Students Federation (BSF), told Arab News.
“We have organized this walk to raise awareness about the need for safer and reliable routes between Skardu and other parts of the country.”
The image circulating on social media on December 21, 2024, shows a group of students marching for road safety awareness in the Pakistan's northern Baltistan region. (Hassnain Abbas Khan Tayis/Facebook)
Shareef said the original construction plan for JSR included five tunnels, but none were built.
“This route has been constructed by FWO [Frontier Works Organization],” he added. “However, the tunnels were not built, and this road has become more dangerous.”
Arab News contacted FWO, a construction and engineering organization managed by the Pakistan Army, for its version. However, it was referred to the local chapter of the military’s media wing, Inter-Services Public Relations, which did not respond to the query until the filing of this report.
The Awami Action Committee (AAC), a civic rights body in the region, announced its support for the march.
“We are very thankful to the BSF who are raising a very important issue. They are demanding the government to make this road safer through this march because this road is the only land route to the Baltistan division,” Najaf Ali, chairman of the AAC Baltistan chapter, told Arab News.
“It has become a well of death. Accidents are common on this road, and it has devoured many precious lives. A few days ago, five people were killed after a landslide buried their car. We have grown tired of lifting bodies due to accidents.”
Ali urged the government to build the requisite tunnels on the road.
“This is a matter of life and death, so we are with the students, and we will warmly receive them in Skardu,” he said. “Additionally, we also held a meeting with trade bodies and decided to launch a big drive to press the government to make this road safe.”
Mesam Kazim, opposition leader in the Gilgit-Baltistan Assembly, said they would do their utmost to press the government for the construction of tunnels on JSR.
“In 2022, we adopted a unanimous resolution demanding the federal government to order the construction of tunnels on the Gilgit-Skardu road to avoid frequent blockades of the artery due to landslides,” Kazim said.
“In the initial PC-1 [survey] uploaded by NHA [National Highway Authority], the construction of tunnels was part of the plan. Tunnels have been missed, and international standards [of construction] have been violated by FWO on JSR.”
He lamented that there were no parking lots, safety barriers, or speed limit boards on the road, and more than 100 people had lost their lives in accidents on JSR over the last few years.
“Who is responsible for these casualties?” Kazim questioned.
KARACHI: Pakistani authorities on Sunday arrested two men involved in a recent boat tragedy off the coast of Greece that killed at least five nationals, as part of an intensified crackdown on human smuggling networks, the Federal Investigation Agency (FIA) said.
The arrests come in the wake of a boat disaster last week near the Greek island of Gavdos, which highlighted the perilous journeys many migrants undertake, often driven by conflicts in the Middle East. In the case of Pakistani nationals, economic challenges push many young individuals to attempt dangerous crossings to Europe in search of better financial prospects.
The issue illegal immigrations to Europe came under greater scrutiny in the country last year when hundreds of migrants, including 262 Pakistanis, drowned after an overcrowded vessel capsized off the southwestern Greek coastal town of Pylos.
The FIA said it apprehended Muhammad Aslam and Saeed Ahmed in separate operations following directives from Prime Minister Shehbaz Sharif to target those facilitating illegal migration.
The Pakistani agency informed Aslam was part of an international human smuggling ring and was accused of orchestrating the ill-fated journey that saw Pakistani migrants taken to Libya before being put on a boat bound for Greece.
“Using advanced technology, Aslam was tracked and arrested in Gujranwala,” the FIA statement said, adding the second suspect was arrested in Gujrat district located in the eastern Punjab province and was accused of creating fake travel documents and charging large sums for his services.
The statement informed Aslam extorted Rs8.5 million ($30,660) from victims by promising safe passage to Europe.
The Pakistani premier called for enhanced cooperation with international agencies earlier this month, seeking swift action against human trafficking networks. He also instructed the FIA to compile a detailed report on migration-related incidents over the past year and implement an Integrated Border Management System (IBMS) to monitor and prevent illegal movement.
The FIA said in its statement it had formed special teams to track other suspects linked to human smuggling rings.
“We will use all available resources to arrest those playing with innocent lives,” Abdul Qadir Qamar, the director of the FIA’s Gujranwala zone, was quoted as saying in the statement.
Authorities have presented 174 human smuggling cases in court this year, with four convictions reported so far. The government has also decided to launch a public awareness campaign to discourage dangerous migration attempts.
“Concrete evidence will ensure the culprits face severe punishment,” Qamar added, emphasizing the government’s commitment to preventing such tragedies.
ISLAMABAD: The government on Sunday formed a committee to hold talks with the opposition Pakistan Tehreek-e-Insaf (PTI) party, state media reported, to discuss a range of issues causing political polarization that has also impacted the country’s fragile economy.
The move comes after PTI founder and former Prime Minister Imran Khan threatened to launch civil disobedience by urging overseas Pakistanis, a key support base for his party, to halt remittances if the government does not meet his demands, including the release of political prisoners, 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.
“Prime Minister Shehbaz Sharif has formed a committee comprising government members,” state-owned Pakistan Television News reported. “This committee will hold negotiations with Pakistan Tehreek-e-Insaf.”
The formation of the government’s negotiating team followed a meeting between PTI Chairman Barrister Gohar Khan and National Assembly Speaker Sardar Ayaz Sadiq on Saturday evening in which Gohar requested the creation of a parliamentary committee to facilitate dialogue. Sadiq subsequently approached the Prime Minister, urging him to nominate representatives for the talks.
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. PTI has already established its own negotiating team.
The development comes a day 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 announcement has raised concerns among supporters of former Prime Minister Imran Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.
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.
ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday directed authorities to take strict action against tax evasion and ensure non-compliance is addressed as part of his administration’s efforts to enhance revenue collection and modernize the tax system, according to the state media.
Chairing a meeting in Lahore, Sharif emphasized the need for incorporating advanced technology to improve the Federal Board of Revenue’s (FBR) performance.
“Improving the FBR’s performance through technology is the government’s top priority,” the Associated Press of Pakistan (APP) news agency quoted him as saying.
The prime minister called for the swift completion of the FBR’s value chain digitization and instructed the rapid implementation of video analytics in the cement and tobacco industries, sectors prone to tax underreporting.
He expressed optimism that digitization efforts would help recover billions of rupees for the national treasury.
The government has recently undertaken a series of tax measures, including expanding the tax base and targeting untaxed sectors.
Earlier this year, Finance Minister Muhammad Aurangzeb emphasized the need for everyone to pay their fair share, describing tax reforms as critical to breaking the cycle of external financial reliance.
Pakistan’s tax-to-GDP ratio remains among the lowest in the region, at just over nine percent, though the government aims to increase it to 13.5% in the coming years.
The Pakistani administration has also announced to launch a crackdown on affluent individuals not yet in the tax net, with the FBR tasked to identify and penalize evaders.
The tax reforms are also part of the International Monetary Fund’s recommendations, which led to the approval of a fresh $7 billion loan package for the country this year.
