Despite high inflation, Pakistan stocks and currency close bullish on ‘smooth’ IMF review hopes

A man walks past a foreign currency exchange market in Islamabad, Pakistan on July 11, 2023. (AFP/File)
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Updated 02 October 2023
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Despite high inflation, Pakistan stocks and currency close bullish on ‘smooth’ IMF review hopes

  • Pakistan’s inflation rate rose to 31.4 percent year-on-year in September from 27.4 percent in August
  • KSE-100 index closed the trading session with a gain of 394 points at 46,627.08

KARACHI: Pakistan equities closed bullish on Monday amid upbeat data on a falling trade deficit and strong rupee recovery ahead of the first review of a $3 billion International Monetary Fund (IMF) bailout agreement signed earlier this year, equity experts said.

The KSE-100 index of the Pakistan Stock Exchange (PSX) closed the trading session with a gain of 394 points at 46,627.08. Analysts said the bullish sentiment was fueled by a weekend cut in petroleum prices and an over 48 percent decrease in the trade deficit ahead of the next IMF program review, expected in the last week of this month when the lender’s team arrives in Pakistan.

Pakistan and the IMF struck a staff-level agreement for the provision of $3 billion in bailout funds under a stand-by arrangement (SBA) earlier this year, giving the South Asian economy a much-awaited respite as it teetered on the brink of default.

“Stocks closed bullish amid upbeat data on the trade deficit falling by 48.2 percent in September 2023 ahead of IMF review meetings this month for the release of the next support tranche as well as an upbeat growth outlook,” Ahsan Mehanti, CEO of Arib Habib Corporation, told Arab News.

Pakistan’s trade deficit was down by 48.2 percent year-on-year to $1.5 billion during September 2023. Exports stood at $2.5 billion, up by 1 percent on an annual basis and 4 percent on a month-on-month basis while imports were recorded at $3.9 billion, down 25 percent on an annual and 13 percent on a month-on-month basis, according to the Pakistan Bureau of Statistics (PBS).

The bullish sentiments were also fueled by the government slashing the prices of petrol and high-speed diesel (HSD) by Rs8 per liter and Rs11 per liter respectively last week as part of its fortnightly price adjustment mechanism.

Yousuf Muhammad Farooq, director research at Chase Securities, said he was confident the review meetings with the IMF would go “smoothly.”

“Apparently, Pakistan has complied with major SBA conditions except the gas tariff, and hopefully that will also be done,” Farooq told Arab News. “The IMF review should go on smoothly.” 

Mehanti at Arif Habib attributed the bullish sentiments to upbeat data on the strong rupee recovery as well as agriculture and industrial productions. 

“Strong rupee recovery and government’s deliberations on privatization of SOEs (State-Owned enterprises) played a catalyst role in the bullish close of the bourse.” 

The rupee further strengthened against the United States Dollar by 0.34 percent to Rs286.76 in the interbank market on Monday and by 0.7 percent to Rs286 in the open market for selling.

The stock and currency markets were bullish despite higher inflation numbers released by the government on Monday, which said inflation rose to 31.4 percent year-on-year in September from 27.4 percent in August. The higher inflation was fueled by the rise in the price of petroleum products which had hit a historic high of Rs331.38 and Rs329.18 per liter for petrol and diesel, respectively, before being cut last weekend.

On an annual basis electricity charges have increased by 163.72 percent, textbooks 101.78 percent and gas charges 62.82 percent, among other nonfood commodities and services rate hikes, according to the statistics bureau.

Pakistani analysts expect the inflation rate will cool down in the first quarter of next year due to the improving value of the rupee against the greenback and the current account deficit. 

On a month-on-month basis, inflation climbed 2 percent in September, compared to an increase of 1.7 percent in August. 

Reforms required by the IMF bailout, including an easing of import restrictions and a demand that subsidies be removed, have already fueled annual inflation, which rose to a record 38.0 percent in May.

Interest rates have also risen to their highest at 22 percent, and the rupee hit all-time lows in August before recovering in September to become the best performing currency following a clampdown by authorities on unregulated FX trade.

On Friday, the ministry of finance said in its monthly report that it anticipated inflation remaining high in the coming month, hovering around 29-31 percent due to an upward adjustment in energy tariffs and a major increase in fuel prices.

The report added that inflation was, however, expected to ease, especially from the second half of the current fiscal year that starts on Jan. 1.


Pakistan declares Mar. 15 as ‘Day of Protection of Sanctity of Prophethood’

Updated 10 March 2025
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Pakistan declares Mar. 15 as ‘Day of Protection of Sanctity of Prophethood’

  • Religion ministry spokesperson says initiative to curb rising incidents of blasphemy, sacrilegious content on social media
  • Prominent religious scholars urged to devise comprehensive strategy against blasphemous content, says state media

ISLAMABAD: Pakistan’s religion ministry has officially declared Mar. 15, 2025, as the “Day of Protection of the Sanctity of Prophethood” to address rising incidents of blasphemy and sacrilegious content online, state-run media reported on Monday.

Every year on Mar. 15 the world commemorates the “International Day to Combat Islamophobia” to stress the right to freedom of religion and belief and condemn incidents of blasphemy. Mar. 15 also marks the day when a gunman entered two mosques in Christchurch, New Zealand, killing 51 people and injuring 40 others in a hate crime against Muslims.

“The Ministry of Religious Affairs and Interfaith Harmony has officially declared March 15, 2025, as the Day of Protection of the Sanctity of Prophethood (Yum-e-Tahaffuz-e-Namoos-e-Risalat Peace Be Upon Him),” the state-run Associated Press of Pakistan (APP) reported on Sunday. 

As per the report, religious affairs ministry’s spokesperson Muhammad Umar Butt said the initiative will curb rising incidents of blasphemy and sacrilegious content on social media. Butt said the ministry has issued directives to provincial secretaries of the religious affairs and Auqaf departments in all four provinces, Islamabad, Azad Jammu and Kashmir and Gilgit-Baltistan to launch an awareness campaign against blasphemous content. 

He said the ministry has also urged prominent religious scholars to devise a comprehensive strategy for public awareness against blasphemous content.

Blasphemy, punishable by death in Muslim-majority Pakistan is an incendiary charge, where even unsubstantiated accusations can incite public outrage and lead to lynchings. Human rights groups say Pakistan’s blasphemy laws are often misused to settle personal scores.

Pakistan has seen a sharp rise in the prosecution of “online blasphemy” cases recently, with private groups accusing hundreds of young individuals of blasphemy, according to AFP.

A report published by the government-run National Commission for Human Rights in October last year said there were 767 people, mostly young men, in jail awaiting trial over blasphemy allegations.

Meanwhile, Sardar Muhammad Yousaf of the ruling Pakistan Muslim League Nawaz (PML-N) party assumed charge as the new Minister of Religious Affairs and Interfaith Harmony, according to a statement from the religion ministry. 

“Federal Minister Sardar Muhammad Yousuf assumed the portfolio of the Ministry of Religious Affairs and Interfaith Harmony,” the ministry said. “He was given a detailed briefing on the Ministry of Religious Affairs, the ministry’s subordinate institutions and Hajj preparations.”

Yousaf said prioritizing the welfare of pilgrims and visitors was essential, emphasizing that all necessary steps would be taken to address their issues and improve Hajj facilities.


Pakistan says main suspect in 2024 Greek boat tragedy arrested

Updated 10 March 2025
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Pakistan says main suspect in 2024 Greek boat tragedy arrested

  • Four Pakistanis were killed when a migrant boat sank near Greek island of Crete in December 2024
  • Federal Investigation Agency says arrested suspect is part of international gang of human traffickers

ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) announced on Monday that it has arrested the main suspect in the 2024 Greek boat tragedy, vowing to continue its crackdown against human traffickers who send people to Europe and other countries on illegal sea journeys. 

The incident took place in December 2024 when four Pakistanis died after a migrant boat they were on sank near the Greek island of Crete. Each year, thousands of Pakistanis pay large sums for risky and illegal journeys to developed countries, hoping to find work and send money back to their families. 

The FIA said its team arrested the main suspect, Usman Jaja, from the eastern city of Sialkot. The agency said he had gone into hiding since the Greek boat tragedy took place in December last year. 

“Suspect Usman Jaja tried to send several citizens to Europe via boat,” the FIA said in a statement. “The boat met with an accident in which several youths died.”

The FIA said Jaja was wanted by the FIA’s Gujranwala chapter in more than eight cases, alleging that he was part of an international gang of human traffickers. The agency said it has started an investigation against the suspect, adding that raids are being conducted to arrest others involved with him as well. 

“Our crackdown against elements involved in boat accidents is underway,” FIA Gujranwala Director Abdul Qadir Qamar was quoted as saying by the agency. “All resources are being used to arrest the suspects.”

He said the agency’s intelligence-based operations against human traffickers are underway, vowing that no one would be allowed to play with the lives of innocent people. 

In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel capsized and sank in international waters off the southwestern Greek coastal town of Pylos. It was one of the deadliest boat disasters ever recorded in the Mediterranean Sea.

Greece was a favored gateway to the European Union for migrants and refugees from the Middle East, Africa and Asia in 2015-2016, when nearly 1 million people landed on its islands, mostly via inflatable dinghies.

Incidents with migrant boats and shipwrecks off Crete and its tiny neighbor Gavdos, which are relatively isolated in the central Mediterranean, have increased since 2023.


UAE consul general holds iftar dinner for Pakistan’s Special Olympics athletes

Updated 10 March 2025
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UAE consul general holds iftar dinner for Pakistan’s Special Olympics athletes

  • Pakistani athletes are second to none, says UAE Consul General Bakheet Ateeq Al Remeithi 
  • UAE consul general stresses on the importance of giving confidence to persons with disabilities

KARACHI: UAE Consul General Bakheet Ateeq Al Remeithi held an iftar dinner in honor of Pakistan’s Special Olympics athletes on Sunday, the UAE consulate in Karachi said, stressing the need to empower them through confidence. 

The development takes place as Pakistani athletes prepare to take part in the World Winter Games Turin 2025 that are being organized by the Special Olympics organization. The global event is scheduled to run from Mar. 8-15 and will feature at least 1,500 athletes from over 100 countries who will compete in eight sporting competitions throughout Italy’s Piedmont region. 

The UAE consul general welcomed the athletes at his residence in Karachi on Sunday evening. He said that athletes from Pakistan are second to none in the Special Olympics. 

“A little hard work on athletes boosts their morale,” Al Remeithi was quoted as saying by the UAE consulate. “The consul general said that despite mental or physical problems, special athletes are no less capable than anyone else. They need to be given confidence.”

The UAE consul general said that Arab culture during the holy month of Ramadan further strengthens the love and ties between the brotherly countries of Pakistan and the UAE. 

The participants thanked the UAE consul general for hosting the iftar and thanked him for extending his hospitality, the UAE’s consulate general said. 


Pakistan president to address joint session of parliament today

Updated 10 March 2025
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Pakistan president to address joint session of parliament today

  • Asif Ali Zardari, who has previously served as president, will be addressing parliament for eighth time today
  • Pakistani presidents’ addresses to parliament are usually marred by noisy protests from opposition lawmakers

ISLAMABAD: President Asif Ali Zardari will address the joint session of Pakistan’s parliament today, Monday, at the start of the new parliamentary year, state broadcaster Radio Pakistan reported. 

According to Article 56 of Pakistan’s constitution, the president is required to address both houses of parliament at the start of the first session of each parliamentary year. Zardari, who previously served as Pakistan’s president from 2018-2013, has addressed joint sessions of the parliament seven times before, including one last year in April. 

Pakistani presidents’ addresses to parliament have been marred by noisy protests from opposition lawmakers in the past. Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party lawmakers shouted slogans and banged their desks when Zardari spoke in 2024. This year as well the party is expected to disrupt Zardari’s speech with sloganeering as the PTI’s tensions with the ruling coalition government persist. 

“President Asif Ali Zardari will address the joint session of Parliament on Monday on the beginning of new parliamentary year,” Radio Pakistan said in a report. “The joint session will start at three in the afternoon.”

The state-run media said stringent security arrangements have been put in place at the Parliament House ahead of the session. It said that as per the National Assembly Secretariat, entry for guests has been prohibited while media representatives will be allowed in “limited numbers.”

According to English language newspaper Dawn, Zardari will outline the federal government’s performance and governance issues in his address. 

The president’s address takes place as Pakistan navigates a tricky path to economic recovery after a prolonged macroeconomic crisis. Pakistan’s government says its economic reforms over the past one year have yielded fruit, pointing to improving macroeconomic indicators such as a decline in inflation, current account surplus and increase in exports. 

The country, however, faces surging militancy in its western provinces bordering Afghanistan. Balochistan and Khyber Pakhtunkhwa (KP) have reported an increase in attacks launched by religiously motivated militants and separatist outfits since November 2022, dealing a blow to Pakistan’s efforts to root out militancy. 

The Shehbaz Sharif-led coalition government is also grappling with political instability as its tensions with Khan’s PTI persist. The former prime minister continues to remain popular from behind bars, with his party leading a large protest calling for his release from prison last year that involved clashes with law enforcers. 

Both sides attempted to break the political deadlock in the country by holding negotiations in December 2024. However, after three rounds of talks, the negotiations failed as the PTI pulled out in January, citing the government’s failure to form judicial commissions to investigate protests it led in May 2023 and November 2024.


Unidentified gunmen kill three Sindh-based barbers in southwestern Pakistan

Updated 10 March 2025
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Unidentified gunmen kill three Sindh-based barbers in southwestern Pakistan

  • Armed men shot dead barbers while they were sitting outside a hotel in Balochistan’s Panjgur district, says paramilitary Levies soldier
  • No group has claimed responsibility for attack but Baloch separatist militants have killed Punjab-based barbers and commuters before

QUETTA: Unidentified gunmen in southwestern Pakistan shot dead three barbers who hailed from Sindh on Sunday, a soldier of the paramilitary Levies force confirmed, amid a surge in ethnic attacks in the restive Balochistan province. 

Attacks by ethnic Baloch separatist militants against Punjab-based laborers, barbers and commuters are common in the southwestern province. Balochistan, Pakistan’s largest province by landmass and rich in mineral resources, has long faced a low-level insurgency led by separatist groups like the Baloch Liberation Army (BLA), who accuse Islamabad of exploiting the province’s natural resources for the development of Punjab while neglecting the local population. Pakistan’s government denies these allegations, saying it has prioritized Balochistan’s development through investments in health, education, and infrastructure projects.

The latest attack took place in Gwargo, an area located around five kilometers away from Balochistan’s Panjgur district, Levies soldier Shakeel Baloch said. He added that unidentified armed men shot the barbers while they were sitting outside a hotel on Sunday evening. 

“Three barbers who belonged to Mirpurkhas and Jacobabad districts of Sindh province were killed on the spot,” Baloch told Arab News. 

No group immediately claimed responsibility for the attack but suspicion is likely to fall on the BLA, which has carried out attacks against Punjabi laborers and barbers in the past. 

Balochistan government spokesperson Shahid Rind strongly condemned the attack, describing the development as a “barbaric” move by the militants. 

“Terrorists have been attempting to create divisions and hate among provinces by targeting laborers who are working in Balochistan,” Rind said. 

He said security forces had started tracking the “terrorists” involved in the attack. 

Balochistan has seen a surge in ethnic attacks over the past few months as the province’s security situation deteriorates. Seven Punjab-based passengers were forcibly removed from a bus heading to the eastern city of Faisalabad from Quetta and killed by a group of gunmen in Balochistan last month. 

In August 2024, nearly two dozen passengers traveling in Punjab-bound buses were killed after BLA militants forcibly removed ethnic Punjabi commuters from buses after checking their identity cards.

In May 2024, gunmen shot dead seven Punjab-based barbers who lived and worked together near the port city of Gwadar in Balochistan.