Soaring inflation dampens Eid holiday spirit in crisis-hit Pakistan

In this picture taken on April 16, 2023, people throng a market during shopping ahead of the upcoming festival of Eid al-Fitr in Lahore. The holiday that marks the end of the Muslim fasting month of Ramadan used to be a guaranteed earner for Pakistan's small shops and businesses -- a big-spending week that could match the take from the rest of the year. (AFP/FILE)
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Updated 19 April 2023
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Soaring inflation dampens Eid holiday spirit in crisis-hit Pakistan

  • Eid used to be a guaranteed earner for Pakistan’s small shops and businesses, a big-spending week that could match the take from the rest of the year
  • This year, many worry they will not even be able to pay their monthly rent, amid political turmoil and inflation hitting highest levels in decades

LAHORE: The holiday that marks the end of the Muslim fasting month of Ramadan used to be a guaranteed earner for Pakistan’s small shops and businesses — a big-spending week that could match the take from the rest of the year.

This year, however, many worry they will not even make enough to pay their monthly rent, with inflation hitting its highest levels in decades and political turmoil miring the country in uncertainty.

“There are no customers, there are no buyers,” said Shehzad Ahmed, who runs a shop selling bags, jewelry and other goods in the eastern city of Lahore.

The South Asian country of more than 220 million people saw year-on-year inflation hit 35.4 percent in March. Food prices surged more than 47 percent in 12 months, with transport costs rising by 55 percent.

Pakistan is deeply in debt and needs to introduce tough reforms to unlock a tranche of a $6.5 billion bailout from the International Monetary Fund in order to avoid default.

The economy has been wrecked by years of financial mismanagement and political instability — a situation exacerbated by a global energy crisis and devastating floods that left a third of the country under water last year.

The end of Ramadan, Eid Al-Fitr, is celebrated by Muslims around the world by feasting with relatives and friends, exchanging gifts, and dressing up in new clothes and shoes.

The dire economic straits have, however, cast a decidedly somber mood across the country’s normally vibrant markets.

“There are significantly fewer shoppers compared to last year — and it’s because of inflation,” trader Saif Ali told AFP.

Sheikh Amir, who runs a small shop selling glass bangles and imitation jewelry, said he was usually able to earn enough for the whole year during Eid.

“It’s become very difficult these days,” he said. “We are just going through the motions in the hope that we will be able to make enough to pay the rent for our shops.”

Major shopping districts across the country usually see a surge in spending in the week leading up to the holiday, which begins with the sighting of the new moon, expected this weekend.

In urban centers, markets and shops stay open until after midnight — many putting on special offers or sales to attract customers.

Twinkling holiday lights adorn many bazaars to attract customers, while street vendors set up stalls offering special holiday treats.

This year, all have reported a significant drop in sales.

“Our business is slow,” said Ali, who was hoping to sell hundreds of embroidered shawls in the run-up to Eid.

For Fatima Azhar Mehmood, a mother of seven daughters, this Eid will be a budget-conscious one.

“I have to shop for them, and at the same time I have to buy things for the house,” she said.

Instead of buying off-the-rack clothes for the girls, Fatima went shopping for fabric in the Old Lahore district and plans to home-stitch their holiday outfits.

“We have to buy rations, buy things for the children... and our rent is going to be due soon too,” she said.

“Everything is upon us at the same time.”

Shocked at the price of goods this year, Amna Asim decided that in her household, only the children would get gifts this year — adult relatives would have to go without.

“Shopping for the kids is a must,” she said.

“We can’t leave the kids out. Even if we don’t get anything for ourselves we must get something for the kids.”

 


Pakistan minister says private sector plays ‘pivotal role’ in promoting trade with UAE

Updated 5 sec ago
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Pakistan minister says private sector plays ‘pivotal role’ in promoting trade with UAE

  • Pakistan-UAE ties based on mutual trust, respect and shared aspirations, says commerce minister
  • UAE is Pakistan’s close ally and its third-largest trading partner after China and the United States

ISLAMABAD: Pakistan’s Commerce Minister Jam Kamal Khan this week highlighted the pivotal role played by the private sector in promoting the country’s trade and investment with the United Arab Emirates (UAE), saying that their ties were rooted in shared aspirations and mutual respect. 

Khan was speaking at a luncheon in Dubai on Saturday that was hosted by the Pakistan Business Council (PBC) Dubai at the Pakistan Association Dubai (PAD).

The event brought together over 100 guests including prominent Pakistani businessmen, VIPs, members of the PBC and officials from the Pakistan Consulate Dubai. It provided a platform to discuss investment opportunities, enhance exports, and bolster bilateral trade relations, the commerce ministry said. 

“Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, emphasized the critical role of the private sector in strengthening trade and investment ties between Pakistan and the UAE,” the commerce ministry said. 

The minister lauded the newly elected PBC board, expressing confidence in its ability to work in collaboration with the Pakistan Consulate to advance Pakistan-UAE trade relations. 

“Highlighting the deep-rooted ties between the two nations, he described them as built on mutual respect, trust, and shared aspirations,” the statement added. 

Khan acknowledged the Pakistani diaspora in UAE for fostering economic prosperity and growth.

“The private sector plays a pivotal role in leading and solidifying trade and investment initiatives between Pakistan and the UAE,” the minister said. 

He urged business leaders to capitalize on opportunities to boost bilateral trade and unlock new avenues for economic development. 

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. It is also home to more than a million Pakistani expatriates. 

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.

In January last year, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos, Switzerland to attend 54th summit of the World Economic Forum (WEF).


Pakistan’s Malala says Israel has decimated ‘the entire education system’ in Gaza

Updated 29 min 18 sec ago
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Pakistan’s Malala says Israel has decimated ‘the entire education system’ in Gaza

  • Nobel Peace laureate says will continue to call out Israel’s violations of human rights in Gaza
  • Israel's attack on Gaza has killed 46,537 people, the majority civilians, since October 7, 2023

ISLAMABAD: Nobel Peace laureate Malala Yousafzai on Sunday said she would continue to call out Israel’s violations of international law and human rights in Gaza.
The education advocate was speaking at a global summit on girls’ education in Muslim nations hosted by Pakistan and attended by representatives from dozens of countries.
“In Gaza, Israel has decimated the entire education system,” she said in an address to the conference.
“They have bombed all universities, destroyed more than 90 percent of schools, and indiscriminately attacked civilians sheltering in school buildings.
“I will continue to call out Israel’s violations of international law and human rights.”
Yousafzai was shot when she was a 15-year-old schoolgirl by Pakistani militants enraged by her education activism.
She made a remarkable recovery after being evacuated to the United Kingdom and went on to become the youngest ever Nobel Prize winner at the age of 17.
“Palestinian children have lost their lives and future. A Palestinian girl cannot have the future she deserves if her school is bombed and her family is killed,” she added.
The war in Gaza was sparked by Hamas’s attack on October 7, 2023, which resulted in the deaths of 1,208 people on the Israeli side, mostly civilians, according to an AFP tally of official Israeli figures.
During the attack, Palestinian militants took 251 people hostage, of whom 94 remain in the Gaza Strip, including 34 the Israeli military has declared dead.
Israel’s attack on Gaza has killed 46,537 people, the majority civilians, according to figures from the health ministry in the Hamas-run territory considered reliable by the United Nations.


Najmul to lead Bangladesh in Pakistan-hosted Champions Trophy

Updated 30 min 27 sec ago
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Najmul to lead Bangladesh in Pakistan-hosted Champions Trophy

  • Key players Liton Das and former all-rounder Shakib Al Hasan not part of the squad
  • ODI Champions Trophy tournament takes place in Pakistan and Dubai from February 19

DHAKA: Najmul Hossain Shanto will captain Bangladesh in the Champions Trophy in Pakistan and Dubai next month, the cricket board said Sunday, with key players including Liton Das missing the cut.

Former star all-rounder Shakib Al Hasan is also missing from the 15-man squad for the one-day international tournament.

The Champions Trophy takes place in Pakistan and Dubai from February 19 with Bangladesh placed in Group A alongside India, Pakistan and New Zealand.

Bangladesh are ninth in the ICC ODI rankings.

They play their opener against India in Dubai on February 20.

Bangladesh squad: Nazmul Hossain Shanto (capt), Soumya Sarkar, Tanzid Hasan, Towhid Hridoy, Mushfiqur Rahim, Mohammad Mahmudullah Riyad, Jaker Ali, Mehidy Hasan Miraz, Rishad Hossain, Taskin Ahmed, Mustafizur Rahman, Parvez Hossain Emon, Nasum Ahmed, Tanzim Hasan Sakib, Nahid Rana.


Ex-PM Khan to meet party’s negotiating committee today amid talks with government

Updated 12 January 2025
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Ex-PM Khan to meet party’s negotiating committee today amid talks with government

  • Khan’s party kicked off negotiations with government to break political deadlock in country last month 
  • PTI this week urged the government to provide it “unfettered” access to former prime minister in jail 

ISLAMABAD: Former prime minister Imran Khan is scheduled to meet members of his Pakistan Tehreek-e-Insaf (PTI) party today, Sunday, who are part of a committee formed by him to hold political consultations with the government, the National Assembly’s spokesperson said in a statement. 

The PTI and the government kicked off negotiations last month to break the political deadlock in the country. The last round of talks between both sides on Jan. 2 ended inconclusively after Khan’s party demanded more time to meet and consult the ex-PM before submitting their demands in writing. 

Khan’s party on Tuesday demanded the government provide it “unfettered” access to the jailed ex-premier in Rawalpindi’s Adiala prison. 

The PTI has previously stated two demands: the release of all political prisoners and the establishment of judicial commissions to investigate protests on May 9, 2023, and Nov. 26, 2024, which the government says involved Khan supporters, accusing them of attacking military installations and government buildings.

“The government has arranged a meeting of the negotiation committee at Adiala Jail following the Speaker’s message,” the National Assembly’s spokesperson said. 

It added that the meeting will take place at 2:30 p.m. local time. 

Khan’s ouster in a parliamentary no-trust vote in 2022 has plunged Pakistan into a political crisis, particularly since he was jailed in August 2023 on corruption and other charges. His PTI party has regularly held protests to demand his release, with many of the demonstrations turning violent.

Talks between the two sides opened days after Khan threatened a civil disobedience movement, and amid growing concerns he may face trial by a military court for allegedly inciting attacks on sensitive security installations during the May 9, 2023 protests.


PIA flight lands in Paris after four-year ban, marking return to Europe

Updated 12 January 2025
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PIA flight lands in Paris after four-year ban, marking return to Europe

  • PIA’s first flight to Paris in over four years departed from Islamabad on Friday
  • Europe’s aviation safety agency suspended PIA’s authorization to operate in EU in June 2020

ISLAMABAD: Pakistani national airline’s first flight to Paris in over four years landed in the French capital this week, state-run media reported on Sunday, marking the resumption of its operations to Europe. 

The Pakistan International Airlines (PIA) flight departed for Paris from Islamabad on Friday. The airline said on Friday that it was resuming two direct weekly flights to Paris. 

The European Union Aviation Safety Agency (EASA) suspended PIA’s authorization to operate in the EU in June 2020 over concerns about the ability of Pakistani aviation authorities to ensure compliance with international standards.

EASA, United Kingdom and United States authorities suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people. In November 2024, the EASA announced it had lifted the ban. 

“Pakistan International Airlines’ first flight to France has landed at Charles de Gaulle airport in Paris after a gap of more than four years,” Radio Pakistan reported. 

The report said that PIA passengers and crew were warmly received in Paris on Friday by Pakistan Charge d’Affairs Huzefa Khanum along with the Pakistani diaspora.

“The passengers who reached Paris via direct flight from Islamabad expressed pleasure over reduced travel time and quality service experienced by them,” it said. 

PIA, however, remains barred from operating flights to the UK and the United States. The airline flies to multiple cities inside Pakistan, including the mountainous north, as well as to the Gulf and Southeast Asia.

PIA, which employs 7,000 people, has long been accused of being bloated and poorly run — hobbled by unpaid bills, a poor safety record and regulatory issues.

Pakistan’s government has said it is committed to privatizing the debt-ridden airline and has been scrambling to find a buyer. Late last year, a deal fell through after a potential buyer reportedly offered a fraction of the asking price.

The 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 its selling potential.

PIA posted losses of $270 million in 2023, according to local media. Its liabilities were nearly $3 billion, about five times the total worth of its assets.

In the same year, amid a national economic crisis, dozens of domestic flights were canceled when it could not afford fuel for its planes.

PIA came into being in 1955 when the government nationalized a loss-making commercial airline, and enjoyed rapid growth until the 1990s.