Saudi Arabia remains largest source of remittances to Pakistan in January 2023

In this file photo taken on October 14, 2010, Pakistani customers enter a foreign currency exchange shop in Karachi. (Photo courtesy: AFP)
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Updated 13 February 2023
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Saudi Arabia remains largest source of remittances to Pakistan in January 2023

  • Pakistan has received over $2 billion in remittances on monthly basis since June 2020
  • This January's fall to $1.89 billion, below the $2 billion mark, is seen after 31 months

KARACHI: Saudi Arabia remained the single largest contributor of remittance to Pakistan in January 2023 as overall inflows last month declined by 13 percent to $1.89 billion compared to last year, falling below the $2 billion level after 31 months, according to central bank data released on Monday.

The cash-strapped South Asian nation received 9.9 percent lower remittances in January than December 2022 and 13.1 percent lower than the same period in January 2022. 

Pakistan had received $18 billion during the seven months of the last fiscal year but this year inflows dropped by $2 billion to $16 billion. 

“With cumulative inflow of $16 billion during first seven months of FY23, the remittances decreased by 11 percent compared to the same period last year,” the State Bank of Pakistan said in a statement on Monday. 

Pakistan received $3.9 billion from Saudi Arabia during the seven months of the current fiscal year as compared to $4.6 billion, posting a decline of around 15 percent. Pakistan had received $7.75 billion from Saudi Arabia in last fiscal year. 

The central bank said during January 2023, remittances were mainly sourced from Saudi Arabia with inflows of $407.6 million, United Arab Emirates $269.2 million, United Kingdom $330.4 million and United States of America $213.9 million.

The country received $269.2 million from United Arab Emirates in January 2023 and $2.9 billion during the seven months of the current fiscal year, according to the central bank.

Pakistan has received more than $2 billion in remittances on a monthly basis since June 2020. This January's fall below $2 billion has been witnessed seen after 31 months.

Financial experts said the key reasons for a drop in remittance inflows through official channels was the huge gap in exchange rates in the open market and interbanks.

“The exchange rate in open market was very high as compared to the interbank market, which was very low, which is why Pakistani workers were using hawala [unofficial channels] for money transfer,” Farhan Mahmood, head of research at Sherman Securities, told Arab News. 

The difference between the open and interbank market rate has been as high as Rs50 against the United State dollar in recent weeks.

“The huge gap between open and interbank coupled with the already slowing global remittances flows dented the official remittances,” Mahmood said. 

Analysts said as the gap between open and interbank markets narrowed, the inflows of remittance through official channels would improve in the current and upcoming months. 

“I think that the inflows would start improving from February onwards as the gap has narrowed and also those people who were waiting for market adjustment will be encouraged to remit funds,” Mahmood added. 

The Pakistani national currency on Monday closed at Rs269.44 against the United States dollar in the interbank market while the currency traded at Rs273 for selling and Rs270 for buying in open market.


Pakistan urges Afghanistan to boost border security as infiltration attempt kills five

Updated 21 December 2024
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Pakistan urges Afghanistan to boost border security as infiltration attempt kills five

  • Military says four TTP fighters and a soldier were killed as militants tried to enter Pakistani territory
  • Statement comes after media reported a deadly attack on a military outpost that killed 16 soldiers

ISLAMABAD: The Pakistan military on Saturday urged the Taliban administration in Kabul to ensure robust border management after a group of militants tried to infiltrate from Afghanistan, leading to a skirmish that left four infiltrators and a soldier dead.
Relations between Islamabad and Kabul have deteriorated in recent years as militant violence surged in Pakistan, fueled by attacks from Tehreek-e-Taliban Pakistan (TTP) militants in the northwestern Khyber Pakhtunkhwa province.
Pakistani officials blame the TTP for the escalating violence, accusing the Afghan authorities of turning a blind eye to militants using their territory to launch cross-border attacks.
However, Kabul denies these allegations, insisting that Pakistan’s internal security is its own responsibility.
“On night 19/20 December, movement of a group of khwarij [TTP militants], trying to infiltrate through Pakistan-Afghanistan border, was picked up by the security forces in general area Rajgal, Khyber District,” the military’s media wing, Inter-Services Public Relations, said in a statement. “Own troops effectively engaged and thwarted their attempt to infiltrate. Resultantly, four Khwarij were sent to hell.”
The statement noted that one of the soldiers, Sepoy Amir Sohail Afridi, also lost his life amid intense exchange of fire.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” it continued. “Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan.”
The ISPR statement comes after media reported a deadly attack on a military outpost in Khyber Pakhtunkhwa which was targeted by 30 militants from three sides. According to anonymous intelligence sources, the attack left 16 soldiers dead. The TTP claimed responsibility for targeting the outpost in a statement that described the attack as a retaliation to the recent killings of its top commanders.
The Pakistan military reiterated in its statement it remained committed to securing the borders. It added that its soldiers would also fight to eliminate the menace of militant violence.


Pakistan Taliban claim raid killing 16 soldiers in northwestern province

Updated 21 December 2024
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Pakistan Taliban claim raid killing 16 soldiers in northwestern province

  • Officials confirm privately militants set fire to the wireless communication equipment, documents
  • Pakistan’s military has not issued a statement on the siege of its outpost that lasted for two hours

ISLAMABAD: The Pakistani Taliban claimed a brazen overnight raid on an army outpost near the border with Afghanistan on Saturday, which intelligence officials said killed 16 soldiers and critically wounded five more.
The siege started after midnight and lasted about two hours as around 30 militants pummelled the mountainous outpost from three sides, one senior intelligence official told AFP on condition of anonymity.
“Sixteen soldiers were martyred and five were critically injured in the assault,” he said. “The militants set fire to the wireless communication equipment, documents and other items present at the checkpoint.”
A second intelligence official also anonymously confirmed the toll of dead and wounded in the attack in the Makeen area of Khyber Pakhtunkhwa province, 40 kilometers (24 miles) from the Afghan border.
Pakistan’s domestic chapter of the Taliban claimed the attack in a statement, saying it was staged “in retaliation for the martyrdom of our senior commanders.”
The group claimed to have seized a hoard of military gear including machine guns and a night vision device.
Pakistan’s military has not yet issued a statement on the incident.
Pakistan has been battling a resurgence of militant violence in its western border regions since the Taliban’s 2021 return to power in Afghanistan.
Islamabad accuses Kabul’s rulers of failing to root out militants staging attacks on Pakistan from over the border.
The Pakistani Taliban — known as Tehreek-e-Taliban Pakistan (TTP) — share a common ideology with their Afghan counterparts who surged back to power three years ago.
Kabul’s new rulers have pledged to evict foreign militant groups from Afghan soil.
But a UN Security Council report in July estimated up to 6,500 TTP fighters are based there — and said “the Taliban do not conceive of TTP as a terrorist group.”
The report said the Afghan Taliban show “ad hoc support to, and tolerance of, TTP operations, including the supplying of weapons and permission for training.”
The spike in attacks has soured Islamabad-Kabul relations. Security was cited as one reason for Pakistan’s campaign last year to evict hundreds of thousands of undocumented Afghan migrants.
 


Pakistan military sentences 25 to prison over May 9 violence, with more verdicts expected

Updated 21 December 2024
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Pakistan military sentences 25 to prison over May 9 violence, with more verdicts expected

  • The sentencing is likely to raise concerns among PTI since Imran Khan faces charges of inciting people
  • The ISPR says justice will truly be served when the ‘mastermind and planners’ of May 9 are punished

KARACHI: The Pakistan military on Saturday sentenced 25 people to prison for participating in the violent protests that erupted on May 9, 2023, when hundreds carrying the party flags of former Prime Minister Imran Khan attacked government buildings and vandalized military properties.
The protests, which broke out in different Pakistani cities, followed Khan’s brief detention on corruption charges from an Islamabad court, resulting in damage to major military facilities and martyrs’ monuments.
Subsequently, hundreds of leaders and supporters of Khan’s Pakistan Tehreek-e-Insaf (PTI) party were imprisoned, despite their denial of involvement in violence and claims that the May 9 incident was a “false flag” operation aimed at crushing their party.
The government and military also asserted they had gathered ample evidence that the attack on the country’s most powerful institution was carefully planned and executed by the PTI leadership, sharing videos of the attacks showing people setting fire to government and military properties.
“On 9 May 2023, nation witnessed tragic incidents of politically provoked violence and arson at multiple places, marking a dark chapter in the history of Pakistan,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement, listing down names of all 25 people with sentences ranging from two to 10 years. “Building on a sustained narrative of hate and lies, politically orchestrated attacks were carried out on the installations of the Armed Forces including desecration of the monuments of Shuhada [martyrs].”
It informed that it gathered “irrefutable evidence” against these people after conducting investigations to prosecute those arrested in the wake of the incident. “This is an important milestone in dispensation of justice to the nation,” the ISPR added. “It is also a stark reminder to all those who are exploited by the vested interests and fall prey to their political propaganda and intoxicating lies, to never take law in own hands ever in the future.”
The statement informed the military would share the details of other individuals whose cases had also been referred to the Field General Court Martial.
The ISPR said its announced followed a ruling by a seven-member Constitutional Bench of the Supreme Court of Pakistan on December 13 in which it allowed the military courts to share its verdict.
Prior to that, the court had unanimously declared last year that prosecuting civilians in military courts was in violation of the Constitution.
The sentencing of 25 individuals is likely to raise concerns among supporters of Imran Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.
The ISPR noted that many accused in the May 9 attacks are also facing trials in various anti-terrorism courts.
“However, justice would truly be fully served once the mastermind and planners of 9th May Tragedy are punished as per the Constitution and laws of the land,” it added.
The statement highlighted the significance of establishing “inviolable writ of the State,” as it pointed out that all convicts retained the right to appeal, as guaranteed by the law and the constitution.


Scoop of deceit: Pakistan’s competition watchdog freezes multinationals’ misleading ice cream ads

Updated 18 min 8 sec ago
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Scoop of deceit: Pakistan’s competition watchdog freezes multinationals’ misleading ice cream ads

  • Manufacturers of “Walls” and “Omore” have been penalized for passing off ‘frozen desserts’ as ice cream
  • The Competition Commission of Pakistan has imposed Rs75 million of fine on each of the two companies

KARACHI: In a chilling blow to “deceptive marketing,” the Competition Commission of Pakistan (CCP) on Friday imposed a hefty fine of Rs75 million ($269,530) each on two multinational companies, Unilever Pakistan and Friesland Campina Engro, for misleading consumers by advertising their products as “ice cream.”
The CCP took action following a complaint by Pakistan Fruit Juice Company, the manufacturer of “Hico,” which objected to the marketing practices adopted by its rivals.
The CCP maintained that the two companies were selling “frozen desserts” while passing them off as ice cream, a distinct product category made from milk, cream or other dairy products.
“It is held that a false and misleading impression of ‘frozen dessert’ as ‘ice cream’ was created and continued by the Respondents through their advertisements, in order to make the consumers believe that ‘frozen dessert’ products are also ‘ice cream,’” the CCP said in its written order.
“The Respondents advertised, labelled and marketed their products without disclosing the true nature of their products as frozen desserts,” it continued, adding that the two companies “took economic advantage of their deceptive marketing practices to the detriment of consumers welfare.”
The CCP’s ruling referenced the Pakistan Standards and Quality Control Authority (PSQCA) and the Punjab Pure Food Regulations 2018, which define “frozen dessert” and “ice cream” as distinct products.
According to these standards, “ice cream” is made from milk, cream, or other dairy products, while “frozen desserts” are prepared from a pasteurized mix consisting of edible vegetable oils and other ingredients.
The CCP also noted that other countries, including the US, India and Australia, maintain the same standards, where the term “ice cream” can only be applied to dairy-based products.
The commission instructed the companies to stop their current marketing practices and remove advertisements presenting frozen desserts as ice cream.
It instructed them to provide clear disclosures about their products’ nature and ingredients, adding that failure to comply with the verdict within 30 days would result in additional fines.
 


Government to form committee to negotiate with Imran Khan’s party ‘within days’ — adviser

Updated 21 December 2024
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Government to form committee to negotiate with Imran Khan’s party ‘within days’ — adviser

  • Rana Sanaullah says all outstanding issues causing political polarization can come under discussion
  • Khan has threatened civil disobedience if the government doesn’t implement his demands by Dec. 22

ISLAMABAD: The government will set up a committee “in a day or two” to negotiate with the opposition Pakistan Tehreek-e-Insaf (PTI) party, said the adviser to the country’s prime minister on political affairs on Friday, adding it was possible to discuss all outstanding issues causing political polarization in the country.

The move comes as PTI founder and former Pakistan premier, Imran Khan, threatened to launch civil disobedience by asking overseas nationals, who widely support his party, to stop sending remittances if the government does not implement his demands, including the release of political prisoners, by Dec. 22.

Khan himself remains incarcerated for over a year on charges that he says are politically motivated to keep him away from power. He has also demanded judicial commissions to investigate protests on May 9 last year and Nov. 26 this year in which the government says supporters of PTI partook in violence and caused vandalism.

The ex-premier has already established a negotiating committee to talk to the government.

“The [National Assembly] Speaker [Ayaz Saddiq] has contacted Prime Minister Shehbaz Sharif in this regard,” Rana Sanaullah, Sharif’s political adviser, told Geo TV in an interview. “My own sense is that there will be a breakthrough on this [setting up on the negotiating committee] in another day or two.”

The country has remained in the grip of political unrest and uncertainty since Khan’s ouster from power in a parliamentary no-confidence vote, which also led to economic hardships for Pakistan.

The country’s national economy heavily depends on remittances by overseas Pakistanis who contributed about $30 billion in fiscal year 2023-24.

Khan has also warned the government not to project the PTI’s offer for negotiations as a sign of “surrender.”

Sanaullah said during his interview negotiations could help both sides find a way out of the current political impasse.

However, he said it was premature to say which ones of the PTI’s demands would be met.

“If they force us to accept these demands before the talks, then what is the need for these negotiations,” he asked.