KARACHI: Pakistan’s central bank on Friday described fiscal year 2023 as “extraordinarily challenging” for national economy, saying it brought a number of domestic and external shocks for the country in which the financial well-being of the people was compromised by structural weaknesses and spiraling inflation.
The State Bank of Pakistan (SBP) presented a mixed economic report card in the Governor’s Annual Report (GAR) for the last fiscal year which it is legally require to prepare and submit to the national parliament, specifying its economic objectives, monetary policy conduct and the overall health of the economy and financial system.
The report said despite the economic hardships, the bank had focused on financial inclusion by facilitating the digitization of services which had led significant growth within the sector.
However, price stability and inflation remained major concerns for the country, with the average headline national consumer price index rising up to 29.2 percent. The bank noted this situation could only be addressed through tough measures that it was willing to take in the coming months.
“The SBP responded to these challenges by maintaining a contractionary policy stance, raising the policy rate by a cumulative 825 basis points during FY23, in addition to the 675 basis points increase in FY22,” the central bank said in a statement that detailed the contours of the annual report.
“The GAR FY23 asserts that the central bank will continue to take decisions to prevent high inflation from becoming entrenched and keep inflation expectations anchored to achieve the medium term target of 5-7 percent by the end of FY25, with FY24 inflation moderating to 20-22 percent on account of the impact of contractionary monetary policy, improvements in domestic supplies, softer non-energy global commodity prices, and the high base effect,” it added.
The report complained that political uncertainty in the country weighed on business and consumer sentiments, generating a negative impact on the overall economy.
The real GDP contracted by 0.2 percent, it said, and budgetary targets for the government’s fiscal and primary balances were missed by large margins amid less than planned tax revenues and lower than budgeted reduction in subsidies.
However, the central bank continued to emphasize its objective of maintaining stability of the financial system while reporting it had achieved considerable progress in the area.
“The country’s financial sector grew steadily and continued to meet the economy’s needs of credit and financial services,” the SBP statement added. “Total assets of the banking sector grew by 17 percent in FY23.”
“Within the banking sector,” it continued, “Islamic Banking Institutions (IBIs) performed well during the review period and outperformed their conventional counterparts on several fronts, such as financing and investments along with a double-digit growth in deposit mobilization.”
It may be recalled that Pakistan suffered devastating impact of monsoon floods during the last fiscal year along with elevated global commodity prices and the delay in the ninth review of the International Monetary Fund (IMF) loan program.
The SBP said all these factors added pressure on the country’s external account and created a tough situation for the economy.
Pakistan central bank calls fiscal year 2023 ‘challenging’ amid economic shocks, rising inflation
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Pakistan central bank calls fiscal year 2023 ‘challenging’ amid economic shocks, rising inflation
- The bank says it will continue to take necessary measures to prevent high inflation from becoming entrenched
- SBP counts financial inclusion as one of its objectives, saying total banking sector assets grew by 17% in FY23
Pakistan deputy PM meets Afghan premier in Kabul to discuss militancy, trade cooperation
- Ishaq Dar acknowledges ‘coldness’ in ties before Kabul visit, says ‘terrorism’ will be discussed
- Afghan foreign ministry also expresses concern over Pakistan’s deportation drive in a statement
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Saturday met Afghanistan’s acting Prime Minister Mullah Muhammad Hassan Akhund during a day-long visit to Kabul, where the two sides discussed militancy, regional security, trade and efforts to boost bilateral cooperation.
His visit takes place amid surging militancy in Pakistan, which Islamabad blames on the Tehreek-e-Taliban Pakistan (TTP) militant outfit. Pakistan accuses the Afghan Taliban of providing them sanctuaries, allegations that Kabul has repeatedly denied.
Dar’s visit to Kabul also takes place as Pakistan intensifies its campaign to deport “illegal immigrants,” mostly Afghan nationals, which it has blamed without evidence for being involved in suicide attacks and militancy in the country.
Pakistan’s deportation drive has further soured ties between the two nations.
“Deputy Prime Minister / Foreign Minister, Senator Mohammad Ishaq Dar ... called on the acting Afghan Prime Minister, Mullah Muhammad Hassan Akhund,” the Pakistani foreign office said in a brief statement.
“Both sides exchanged views on key issues of mutual interest, including security, trade and transit cooperation, and explored ways to enhance people-to-people contacts,” it added.
The foreign office informed the two leaders reaffirmed their commitment to continued engagement and agreed to maintain high-level exchanges to further strengthen relations between the two “brotherly countries.”
Dar arrived in Kabul earlier on Saturday to hold talks with Afghan leaders amid increasingly tense ties between the neighbors.
Before departing for Kabul, Dar acknowledged recent “coldness” in ties between the two nations but said security remained a priority.
“I believe the security of Pakistan, its people, their lives and properties, is very important,” he told state-run Pakistan Television. “So one of our concerns is regarding terrorism, which we will discuss.”
Dar said Pakistan saw immense potential for trade and investment with Afghanistan and stressed the importance of regional connectivity.
“Our connection with Central Asian states can be established through rail links but that’s not possible unless Afghanistan becomes a partner in this,” he added.
Dar also met Afghan Deputy Prime Minister Mullah Abdul Salam Hanafi and Foreign Minister Amir Khan Muttaqi upon his arrival in Kabul to discuss security, border management and economic cooperation.
“Both parties reaffirmed their commitment to fostering mutually beneficial relations and agreed on the importance of maintaining high-level engagement,” the foreign office said after that meeting.
Dar’s trip is seen as part of Islamabad’s efforts to re-engage with the Afghan Taliban government despite ongoing tensions and to address its concerns over a surge in militant attacks in Pakistan.
A statement issued by the Afghan government said the Taliban foreign minister voiced “deep concern” over Pakistan’s deportation drive, urging Islamabad to “prevent the suppression of the rights of Afghans.”
Pakistan’s finmin leaves for US to attend World Bank/IMF Spring Meetings
- World Bank/IMF Spring Meetings 2025 will be held from Apr. 21-26 in Washington D.C.
- Aurangzeb to address investment forums, meet counterparts from other countries
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb left for the United States on Saturday to attend the World Bank/International Monetary Fund (IMF) Spring Meetings 2025, the finance ministry said.
Leading finance ministers and officials of the World Bank and the IMF will gather in Washington D.C. to attend the spring meetings from Apr. 21-26.
Aurangzeb will meet with top officials of the World Bank and IMF, and interact with the finance ministers from China, the United Kingdom, Saudi Arabia and Turkiye, the finance ministry said.
“The Finance Minister will clarify the country’s economic scenario while addressing investment forums and seminars during the visit,” the statement said.
Aurangzeb will meet officials of the US State and Treasury Departments as well as those from global credit rating agencies, commercial and investment banks.
“During the visit, the Finance Minister will attend the 13th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action,” the ministry said.
Aurangzeb will address a roundtable discussion with institutional investors organized by Jefferies International, titled: ‘Pakistan’s Economic Outlook, Recent Fiscal and Monetary Developments and Progress on Reforms and Engagement with the IMF.’
The finance minister will also address a session organized by the Center for Global Development (CGD) on ongoing reforms in Pakistan and future challenges that the country faces.
Aurangzeb will meet Garji Ghosh, the president of the Global Policy and Advocacy Division, Gates Foundation and Queen Maxima of the Netherlands.
“Finance Minister Muhammad Aurangzeb will visit leading think tanks in the US,” the ministry said, adding that he will also meet international and US media representatives.
Aurangzeb’s visit takes place as Pakistan tries to recover from a prolonged macroeconomic crisis via financial reforms mandated by the IMF.
The IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement last month and also agreed on the first review of the ongoing 37-month bailout program. Pending board approval, Pakistan can unlock the $1.3 billion under a new climate resilience loan program spanning 28 months.
The IMF will also release $1 billion for Pakistan under its $7 billion bailout program, which would bring those disbursements to $2 billion.
Pakistan vows no leniency toward perpetrators of KFC mob attacks
- One person was killed in around 20 attacks targeting KFC outlets this month, says Pakistan’s minister of state for interior
- Charged mobs fueled by anti-US and anti-Israel sentiments attacked KFC outlets in various parts of the country this week
ISLAMABAD: Pakistan’s Minister of State for Interior Tallal Chaudry vowed on Saturday that the government will not show any leniency toward those involved in attacks targeting international food chain Kentucky Fried Chicken’s (KFC) outlets in various parts of the country, vowing to ensure protection for foreign investment.
The minister’s remarks came after charged mobs attacked and vandalized KFC outlets in various parts of the country this week, angered by growing anti-United States sentiment in Pakistan and in opposition to Israel for its military campaign in Gaza.
In videos shared widely on the Internet, men carrying sticks can be seen hurling abuses at customers and staff at various KFC outlets, forcing them to leave the eatery while they vandalize the outlets’ property.
Speaking to reporters at a news conference, Chaudry said around 20 such incidents across the country have taken place this month in which one KFC employee lost his life. He said 12 complaints have been registered for such incidents in Punjab, where 142 people have been arrested for their involvement in the attacks. In Islamabad, he said 15 people were arrested for their involvement in attacks on KFC outlets.
“It cannot happen that someone brings investment into Pakistan, gives its people employment, pays 100 percent tax, and also spends on welfare, education and health activities, and then someone attacks it,” Chaudry said.
“We will not let this happen. I am just not issuing a warning but practically it is being implemented in all four provinces. They are not being shown leniency anywhere and neither will we show them leniency,” he added.
The minister said those arrested for attacking KFC outlets across the country were ashamed of their actions. He said Pakistan’s religious and political parties had distanced themselves from these incidents.
Chaudry said since Friday, no attacks have been reported on any KFC outlets across the country after the prime minister took notice of the incident.
He reiterated Pakistan’s support for Palestine, saying that Prime Minister Shehbaz Sharif had raised his voice for the people of Gaza repeatedly.
However, he said the government would ensure protection for foreign investment in the country whether it be in the mines and minerals sector or international food chains.
The minister said such attacks would be “unacceptable,” adding that Pakistan’s government and interior ministry were available 24 hours to respond to such incidents.
“Any such attack will be unacceptable and it will be treated similar to when a terrorist attacks an unarmed man,” Chaudry said.
Western brands have been hit by boycotts and other forms of protests in Pakistan and other Muslim-majority countries in recent months over Israel’s military offensive in the Gaza Strip.
The war was triggered by the Palestinian group Hamas’ Oct. 7, 2023, attack on southern Israel, in which 1,200 people were killed and 251 taken hostage to Gaza, according to Israeli tallies.
Since then, more than 51,000 Palestinians have been killed in the Israeli offensive, according to Palestinian health authorities.
Magnitude 5.9 earthquake jolts northern Pakistan with no reports of casualties
- Pakistan’s seismic monitoring center says quake’s epicenter was Afghanistan-Tajikistan border region
- Tremors felt in Islamabad, Rawalpindi, Lahore, Abbottabad and Khyber Pakhtunkhwa’s various cities
ISLAMABAD: A magnitude 5.9 earthquake jolted several cities in northern Pakistan on Saturday morning, state-run media reported, with no reported casualties or damages.
As per the National Seismic Monitoring Center, the earthquake’s epicenter was the border region between Afghanistan and Tajikistan and was measured at a depth of 94 kilometers.
“The National Seismic Monitoring Center reported that the earthquake’s tremors were felt in numerous cities at 11:48 a.m. including Islamabad, Rawalpindi, Lahore, Sheikhupura, Abbottabad, Attock, Haripur, Mansehra, Peshawar, Nowshera, Mardan, Haripur, Swat, Chitral, Shangla, Malakand, Muzaffarabad and several other cities,” state-run Associated Press of Pakistan (APP) said.
As per the APP, alarmed citizens ran out of their homes and started reciting verses from the Qur’an after feeling the tremors.
“No loss of life and property was reported from any part of the country so far,” it added.
Pakistan sits on the boundary of the Indian and Eurasian tectonic plates and is prone to seismic activity.
The country’s northern and western regions are home to mountain ranges such as the Himalayas, Hindu Kush and Karakoram.
Among the most devastating earthquakes in Pakistan’s history was the 2005 Kashmir quake, which measured 7.6 in magnitude and killed more than 86,000 people.
In 2013, a 7.7-magnitude earthquake struck southwestern Balochistan, killing over 800 people and flattening entire villages.
Pakistan concludes ‘team spirit’ military exercise featuring 20 nations, including Gulf countries
- Saudi Arabia, Bahrain, China, US, Turkiye, Bahrain and others participate in five-day exercise
- Exercise aimed at enhancing combat skills through sharing of ideas/experiences, says army
ISLAMABAD: Pakistan concluded its five-day 8th International Pakistan Army Team Spirit Exercise 2025 this week featuring 20 nations, among them Gulf countries, the military’s media wing said on Saturday.
The 60-hours-long ‘patrolling exercise’ began on Monday, aiming to enhance military-to-military cooperation, and ended on Friday.
Seven teams from the Pakistan Army along with a team from the Pakistan Navy and fifteen teams from friendly countries including Bahrain, Belarus, China, Kingdom of Saudi Arabia, Maldives, Morocco, Nepal, Qatar, Sri Lanka, Türkiye, the United States and Uzbekistan participated in the exercise, the Inter-Services Public Relations (ISPR) said.
Representatives from Bangladesh, Egypt, Germany, Kenya, Myanmar and Thailand witnessed the exercise as observers.
“The 60 hours-long rigorous patrolling exercise was aimed at enhancing combat skills through the sharing of innovative ideas/experiences by the participants of the forum,” the ISPR added.
The army said the exercise was carried out in the semi-mountainous terrain of Punjab. It said that the exercise has gained much prominence as a “very competitive professional military activity” for the friendly countries over the past couple of years.
Pakistan Army Chief General Syed Asim Munir was the chief guest at the closing ceremony. He lauded participating teams for their professionalism, physical and mental endurance, and high morale.
Munir distributed individual and team awards to participants at the closing ceremony, which was also attended by international observers and defense attachés of participating countries.
