Central bank rejects claim capping dollar price caused $3 billion losses in exports, remittances

A dealer counts US dollars at a money exchange market in Karachi, Pakistan on January 27, 2023. (AFP)
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Updated 29 January 2023
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Central bank rejects claim capping dollar price caused $3 billion losses in exports, remittances

  • State Bank of Pakistan (SBP) says rising inflation, global economic slowdown behind dwindling remittances, exports
  • SBP says devastating floods last year and ensuing supply disruptions also contributed to decline in Pakistan's exports

ISLAMABAD: The State Bank of Pakistan (SBP) on Sunday rejected media reports which stated that capping the price of the US dollar caused the country losses worth $3 billion in exports and remittances, saying that a decline in both was due to "exogenous factors."

In a major sign that it was willing to swallow the bitter pill and agree to the International Monetary Fund's (IMF) tough conditionalities, Pakistan's foreign exchange companies last week removed the cap on the US dollar. The price of the rupee, as a result, fell to a 24-year-low against the greenback, compounding problems for the South Asian country. 

Local media reports had claimed that capping the price of the US dollar had dealt Pakistan losses of $3 billion in exports and remittances as people preferred to send remittances to Pakistan via illegal channels, which offered a better rate. 

In a press release, the SBP rejected the reports, describing them as "incorrect." It added that Pakistan's exports were facing headwinds due to moderating demand in international markets as the country's trading partners go through a period of monetary tightening. 

"For instance, US Federal Funds rate has surged from 0.25 percent in March 2022 to 4.5 percent to date; suggesting a noticeable global monetary tightening," the SBP said. 

The central bank said inflation has been "significantly higher" in developed countries, eroding people's purchasing power. The SBP also said that devastating floods last year and ensuing supply disruptions are also to blame for Pakistan's dwindling exports. 

"In this backdrop, linking decline in exports to relatively stable exchange rate is not appropriate," it added. 

It said workers' remittances were gradually "tapering off" from the all-time high figure of $3.1 billion in April 2022 due to Eid-related flows.  

"This decline is primarily attributed to global economic slowdown as higher inflation in developed countries has led to higher cost of living abroad, thus reducing the surplus funds that could be sent back to homeland as remittances," the central bank added.

Pakistan's foreign reserves have dipped to an alarming eight-year low of $3.6 billion, barely enough to cover three weeks of imports. Islamabad hopes the resumption of the IMF's stalled loan program would help unlock inflows from allies and multilateral organizations.


Wasim Akram hails ‘modern-day great’ Starc on 100-Test milestone

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Wasim Akram hails ‘modern-day great’ Starc on 100-Test milestone

  • Mitchell Starc becomes the 83rd player and 16th Australian to play 100 Tests
  • The 35-year-old is only the second Australian fast bowler after Glenn McGrath

KARACHI: Pakistan fast bowling legend Wasim Akram on Saturday hailed Australia’s Mitchell Starc as a “modern-day great” for reaching 100 Test appearances.

Starc, who draws comparisons with fellow left-arm quick Akram, will reach the milestone later Saturday when the third Test against the West Indies begins in Jamaica.

“It is a big deal in this day and age to reach 100 Tests, congratulations to Starc,” Akram told AFP.

“That shows the quality and resolve of the man.”

The 35-year-old becomes the 83rd player and 16th Australian to play 100 Tests, and only the second Australian fast bowler after Glenn McGrath.

“To play 100 Tests shows how consistent Starc has been and also shows where his priorities lie — that is to play red-ball cricket,” said Akram.

“He has also played Twenty20 and league cricket but his career in Test cricket is way ahead and to me he is a modern-day great.”

Starc stands on 395 Test wickets, so has the tantalising prospect of taking his landmark 400th wicket during his 100th Test. His strike rate is remarkably similar to Akram, who retired in 2002 after taking 414 wickets in 104 Tests.

Both players, said Akram, had suffered injuries to “every joint, every part of the body” during their careers.

“People often compare us but we have played in different eras,” said Akram.

“He’s got the pace, he’s got the swing and he’s bowling very intelligently to the new batsman, especially with the new ball.”
 


Pakistan eyes Google collaboration for community-driven innovation and AI adoption

Updated 12 July 2025
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Pakistan eyes Google collaboration for community-driven innovation and AI adoption

  • Pakistan is currently focused on AI training in the fields of education, workforce development and industrial innovation
  • Minister says enhanced collaboration will accelerate Pakistan’s integration into the global AI ecosystem, digital empowerment

ISLAMABAD: Pakistan and American multinational corporation and technology giant Google are seeking to collaborate with each other in community-driven innovation and the adoption of artificial intelligence (AI) in the South Asian country, according to the Pakistani IT ministry.

The statement came after IT Minister Shaza Fatima Khawaja’s meeting with Google’s Regional AI Developer Ecosystem and Communities team to explore strategic collaboration in advancing Pakistan’s AI landscape.

The Google team provided an overview of their developer ecosystem, contributions of Google Developer Groups (GDGs), community-based AI initiatives, and impactful platforms like Taleemabad.

In the wider policy discussion, Khawaja emphasized the government’s focus on AI training across three critical domains: mainstream education, workforce development including freelancers, and industrial innovation.

“She stressed the need for inclusive access to tools such as the AI Seekho program, sandbox environments, and cloud credits,” the IT ministry said. 

“She called for enhanced collaboration between Google and the Ministry of IT & Telecommunication (MoITT) to accelerate Pakistan’s integration into the global AI ecosystem and promote equitable digital empowerment.”

During the meeting, Khawaja also had an interactive session with the N+1 team, a group of young Pakistani developers recently selected among the global top 10 in the Google Solution Challenge. The team proudly represented Pakistan at the regional showcase in the Philippines.

Khawaja praised their achievement and called it a testament to the country’s emerging talent pool and the importance of nurturing such success stories through structured support and mentorship, according to the IT ministry.

On Friday, Google said it has expanded access to its advanced video generation model, Veo 3, allowing users in Pakistan and over 150 other countries to create eight-second videos from photos with sound.

The move comes amid a global surge in interest in creative AI tools, with content creators using different platforms to generate video stories and bring still images to life. With Pakistan’s growing pool of digital creators, the rollout is expected to spur local innovation in short-form content.


Pakistan, Bahrain vow to boost security cooperation

Updated 12 July 2025
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Pakistan, Bahrain vow to boost security cooperation

  • Officials of the two countries held discussions in Manama on counter-terrorism, human trafficking and anti-narcotics
  • Pakistani interior minister calls enhancing cooperation in counter-narcotics, anti-human trafficking ‘need of the hour’

ISLAMABAD: Pakistan and Bahrain have resolved to further strengthen their security collaboration in various fields, Pakistani state media reported on Saturday.

The consensus was reached during a meeting between Pakistan’s Interior Minister Mohsin Naqvi and his Bahraini counterpart, General Sheikh Rashid bin Abdullah Al-Khalifa, in Manama.

The two sides held discussions on bilateral cooperation in counter-terrorism, combating human trafficking and anti-narcotics efforts as well as to make Pakistan-Bahrain Joint Security Committee more effective.

“Enhancing cooperation in counter-narcotics and anti-human trafficking efforts is the need of the hour,” Naqvi was quoted as saying by the Radio Pakistan broadcaster.

The Bahraini interior minister said his country valued Pakistan’s cooperation in security and other fields.

Bahrain is one of the important countries in the Gulf Cooperation Council (GCC), and a favorite destination for the Pakistani workforce since the early 1970s, according to the Pakistani foreign ministry.

Both countries have a Joint Ministerial Commission (JMC) at the level of the foreign ministers and a trade volume that has ranged between $500 million and $1 billion in recent years.


Pakistan plans to launch transshipment operations between Gwadar and Gulf region

Updated 12 July 2025
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Pakistan plans to launch transshipment operations between Gwadar and Gulf region

  • The country has been looking to capitalize on its geostrategic location to boost transit trade and foreign investment
  • Islamabad also seeks to cut container dwell time at ports by up to 70 percent to improve trade competitiveness, ease congestion

ISLAMABAD: The Pakistani government is actively engaging private shipping liners to commence transshipment operations between Gwadar and the Gulf region, Pakistani state media reported on Friday. 

The statement came from officials at a high-level meeting of the Cabinet Committee on Gwadar Port operationalization, which was presided over by Planning Minister Ahsan Iqbal.

Maritime officials informed the participants that initial cargo categories will include minerals, dates, seafood, and cement, targeting sectors such as mining, fisheries, and processing industries.

Iqbal said Gwadar’s geostrategic position as the shortest trade route to the Gulf and Central Asia highlighted the port’s potential as a regional transshipment hub, the Radio Pakistan broadcaster reported.

“Iqbal emphasized the need to showcase Gwadar Port in international road-shows as a strategic trade hub linking the Gulf and Central Asia,” the report read. “He directed stakeholders to promote the port’s cost-effective trade routes and available incentives for international businesses.”

Gwadar, situated along the Arabian Sea, lies at the heart of the China-Pakistan Economic Corridor (CPEC), under which Beijing has funneled tens of billions of dollars into massive transport, energy and infrastructure projects in Pakistan.

Pakistan, slowly recovering from a macroeconomic crisis under a $7 billion International Monetary Fund (IMF) deal, has been looking to capitalize on its geostrategic location to boost transit trade and foreign investment for a sustainable economic recovery.

The country plans to cut container dwell time at its seaports by up to 70 percent to improve trade competitiveness and ease congestion, while it last month reduced port charges for exporters by 50 percent at the country’s second biggest Port Qasim.


Three million Afghans likely to return this year after Pakistan, Iran introduce new policies

Updated 12 July 2025
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Three million Afghans likely to return this year after Pakistan, Iran introduce new policies

  • Over 1.6 million Afghans have already returned from Pakistan and Iran this year
  • The figure already exceeds the UNHCR’s initial forecasts of 1.4 million for 2025

UNITED NATIONS: Three million Afghans could return to their country this year, a UN refugee official said Friday, warning that the repatriation flow is placing intense pressure on an already major humanitarian crisis.

Iran and Pakistan have introduced new policies affecting displaced Afghans, with Tehran already having given four million “illegal” Afghans until July 6 to leave Iranian territory.

“What we are seeing is the undignified, disorganized and massive exodus of Afghans from both countries, which is generating enormous pressures on the homeland that is willing to receive them and yet utterly unprepared to do so,” the

UNHCR representative in Afghanistan, Arafat Jamal, said during a video press conference from Kabul.

“Of concern to us is this scale, the intensity and the manner in which returns are occurring.”

Over 1.6 million Afghans have already returned from Pakistan and Iran this year, the large majority from Iran, Jamal added. The figure already exceeds the UNHCR’s initial forecasts of 1.4 million for 2025.

The office of the United Nations High Commissioner for Refugees now estimates three million coming into Afghanistan this year, Jamal said.

The UN agency said over 30,000 people per day have streamed across the Islam Qala border into Afghanistan, with 50,000 crossing on July 4 alone.

“Many of these returnees are arriving having been abruptly uprooted and having undergone an arduous, exhausting and degrading journey. They arrive tired, disoriented, brutalized and often in despair,” Jamal said.

The United Nations has taken emergency measures to reinforce water and sanitation systems intended to serve 7,000 to 10,000 people per day, as well as vaccinations and nutrition services.

Many who have crossed the border have reported pressure from Iranian authorities, including arrests and expulsions.