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
Four people arrested after Pakistani woman’s dismembered body found in Punjab
- Zara Qadir, who lived with her in-laws, was reported missing by her father earlier this month
- Police say her mother-in-law, other relatives have been arrested and have confessed to the crime
ISLAMABAD: Pakistani police said on Monday they have arrested four family members accused of murdering a 30-year-old woman in Daska, located in Punjab province’s Sialkot district, in a case highlighting the prevalence of domestic violence in the country.
Zara Qadir, reported missing by her father on November 11, was married to Qadir Ahmed, a resident of Kotli Meeran in Daska tehsil, four years ago.
According to the complaint lodged with the police, the couple had a two-year-old son who lived with his mother while his father worked abroad. Zara herself was residing with her in-laws and had complained of violence and mistreatment by her relatives.
Speaking to Arab News, a Sialkot police spokesperson, Malik Waqas Ahmed, said the victim’s mother-in-law, sister-in-law, and two other relatives were arrested after Zara’s dismembered body was found in two sacks disposed of in a drain.
“All four individuals involved have been arrested,” he said. “They are Sughran Bibi, Zara’s mother-in-law, Yasmeen, her sister-in-law, Abdullah, who is Yasmeen’s son, and Naveed, a relative from Lahore.”
“They have confessed to the crime, and the murder weapon has been recovered,” he added. “They are currently on physical remand for further investigation.”
Ahmed said Zara’s husband returned to Pakistan soon after the incident, though his role in the murder has not been established.
The brutal killing is a stark reminder of the enduring issue of domestic violence in Pakistan, where societal taboos and weak enforcement of laws leave many women vulnerable to abuse.
The suspects allegedly acted out of personal grievances caused by financial matters and familial disputes.
Police are continuing their investigation to establish the full motive behind the crime, saying the woman’s in-laws also accused her of practicing witchcraft, claiming she was bringing hardships to the family.
Cases of violence against women often go unreported in Pakistan, where cultural norms discourage victims from seeking legal recourse.
Rights groups have frequently called for stronger enforcement of existing laws to protect women and ensure accountability for perpetrators.
Pakistan win toss, bat first in final T20 against Australia
- Salman Ali Agha leads Pakistan as tourists rest skipper Mohammad Rizwan
- Left-arm pacer Jahandad Khan makes debut as Pakistan try to avoid whitewash
HOBART, Australia: Pakistan won the toss and elected to bat in the third and final Twenty20 game against Australia on Monday.
The tourists rested captain Mohammad Rizwan with Salman Agha to lead in Rizwan’s absence.
Haseebullah Khan returned to the lineup, while Babar Azam opened the batting with Sahibzada Farhan.
Left-arm pace bowler Jahandad Khan made his debut, replacing Naseem Shah.
For the third successive game, Australia kept faith in the same playing XI.
The hosts had a 29-run win in a rain-shortened seven-overs-a-side match in the first T20 at Brisbane, before fast bowler Spencer Johnson grabbed a career-best 5-26 and propelled Australia to a 13-run win to clinch the three-match series with a game to spare on Saturday.
Pakistan won the preceding ODI series 2-1.
Squads:
Australia: Matthew Short, Jake Fraser-McGurk, Glenn Maxwell, Tim David, Marcus Stoinis, Josh Inglis (captain), Aaron Hardie, Nathan Ellis, Xavier Bartlett, Spencer Johnson, Adam Zampa.
Pakistan: Babar Azam, Sahibzada Farhan, Haseebullah Khan, Usman Khan, Salman Agha (captain), Irfan Khan, Abbas Afridi, Shaheen Shah Afridi, Jahandad Khan, Haris Rauf, Sufiyan Muqeem.
Pakistan says Islamabad, Washington have ‘unique opportunity’ to revitalize partnership under Trump
- Ties between Islamabad and Washington have just started to warm after years of frosty relations
- Planning Minister Ahsan Iqbal says Pakistan desires enhanced partnership in economy, education, health
ISLAMABAD: Pakistan’s Planning Minister Ahsan Iqbal said on Monday that Washington and Islamabad have a “unique opportunity” to revitalize their partnership and tackle global challenges together under a new administration headed by President-elect Donald Trump, state-run media reported.
Ties between Islamabad and Washington, once close allies, have just started to warm after many years of frosty relations, mostly due to concerns about Pakistan’s alleged support of the Taliban in Afghanistan. Pakistan denies it supported the group.
Relations strained further under the government of former prime minister Imran Khan, who ruled from 2018-22 and antagonized Washington throughout his tenure, welcoming the Taliban takeover of Afghanistan in 2021 and later accusing Washington of being behind attempts to oust him. Washington has dismissed the accusations. Shehbaz Sharif’s government, now in its second term, has tried to mend ties but analysts widely believe the United States will not seek a significant broadening of ties with Islamabad in the near future but remain mostly focused on security cooperation, especially on counterterrorism and Afghanistan.
“Addressing a USAID event in Islamabad today, he [Iqbal] stated that the two countries have a unique opportunity to revitalize their partnership and adapt to the needs of a rapidly changing world, with a new US administration taking the helm,” Radio Pakistan said in a report.
The planning minister spoke about Pakistan’s desire to strengthen relations with the United States in key sectors such as economy, climate change, science and technology, agriculture, education and health.
The minister said that the US remains one of Pakistan’s largest trading partners, with trade exceeding $6.5 billion between the two countries in 2023. He said Pakistan’s key exports to the US include textiles, surgical instruments and IT services which contribute significantly to the country’s economy.
“He however emphasized that there is a vast untapped potential for growth,” the state broadcaster said. “He said the trade relations will not only create jobs and foster innovation but also enhance economic resilience.”
Iqbal said that while bilateral relations between Pakistan and the US have flourished, both nations need to respect each other’s sovereignty and work together constructively to address shared challenges.
“Iqbal said Pakistan-US relationship remains critical to addressing global challenges and achieving regional stability,” Radio Pakistan said.
Pakistan’s Defense Minister Khawaja Asif earlier this month signaled Islamabad’s intentions to collaborate with the new US administration where its interests were aligned. However, he cautioned that cooperation could be strained if interests diverged or Washington persisted in supporting wars in the Middle East.
Trump is widely regarded as an unpredictable leader, with analysts worldwide assessing the potential impact of his return to the top US office on global affairs. However, the Pakistani defense minister praised him during Geo TV’s special election transmission this month for promising to end conflicts around the world after assuming power in Washington.
Pakistani banks start receiving Hajj 2025 applications
- Process to receive Hajj applications to continue till Dec. 3, says religion ministry
- Pakistani pilgrims can pay fees in installments, as per the country’s new Hajj policy
ISLAMABAD: Around 15 designated Pakistani banks have started receiving applications for the upcoming annual Hajj pilgrimage, Pakistan’s Religious Affairs Ministry said on Monday, with the process set to continue till Dec. 3.
Pakistan’s religious affairs minister last week announced the country’s Hajj 2025 policy, according to which pilgrims can pay fees for the annual Islamic pilgrimage in installments for the first time.
The first installment of Hajj dues, amounting to Rs200,000 ($717), must be deposited along with the Hajj application under the government scheme, while the second installment of Rs400,000 ($1,435) must be deposited within ten days of the balloting. The remaining amount must be deposited by February 10 next year.
“Fifteen designated banks in the country have started receiving Hajj applications from today, Nov. 18, and the process will continue till Dec.3,” Muhammad Umer Butt, a spokesperson of the religion ministry, told Arab News.
Next year’s Hajj under the government scheme is expected to range between Rs1,075,000 ($3,858) to Rs1,175,000 ($4,217), while an additional cost for the sacrifice will be Rs55,000 ($197.43).
“This year, the government’s Hajj scheme has been allocated a quota of 89,605 seats, with 5,000 reserved for the sponsorship scheme for overseas Pakistanis while the remaining seats will be allocated to the private Hajj scheme,” Butt confirmed.
The Hajj sponsorship scheme was introduced by the government last year, allowing overseas Pakistanis to apply for Hajj or sponsor someone in Pakistan for the journey by paying in US dollars. In return, the applicants would not have to participate in the balloting process for the pilgrimage.
Butt said the total amount for the sponsorship scheme’s basic package is $4,225, adding that if a pilgrim opts for a sacrificial animal, an additional $200 will be charged. The spokesperson said the performance of hundreds of bank branches will be directly monitored by the religion ministry’s dashboard to ensure convenience for intending pilgrims.
“Women pilgrims will be able to depart without Muharram with a reliable group with the permission of their guardian,” he said. “People with serious or complicated illnesses will not be allowed to perform Hajj and advanced-stage pregnant women, as well as children under 12 years of age, will also not be permitted to travel for Hajj.”
He said the government’s Hajj package includes airfare, accommodation, food, training, transportation and vaccinations for pilgrims, adding that applicants will be guided regarding the Hajj process through the Hajj helpline, website, mobile app and government’s official social media accounts.
Saudi Arabia has allotted Pakistan a total quota of 179,210 pilgrims for the upcoming Hajj. While announcing the Hajj 2025 policy last week, Pakistan’s Religious Affairs Minister Chaudhry Salik Hussain said preference would be given to those going for the pilgrimage for the first time while under the new policy.
“The traditional long package for the official Hajj scheme will cover 38 to 42 days and the short package will cover 20 to 25 days,” Hussain had said.
Under the new Hajj policy, the government’s quota will be allocated through computerized balloting, with 1,000 seats reserved for hardship cases and 300 for laborers or low-income employees registered with the Workers Welfare Fund or the Employees Old-Age Benefits Institution.
Pakistan invites Chinese companies to invest in renewable energy to cut reliance on fuel imports
- Pakistan’s envoy to China says country has natural advantage for renewable energy resources with over 1,000 km coastline
- Pakistan has suffered from an energy crisis stemming largely from gap in country’s energy supplies and electricity demand
ISLAMABAD: Pakistan’s ambassador to China has invited Chinese companies to invest in the country’s renewable energy and offshore wind sectors, state-run media reported on Monday, as Islamabad seeks to cut its reliance on expensive fuel imports amid its prolonged energy crisis.
Pakistan has suffered from an energy crisis that stems largely from a gap in the country’s energy supplies and electricity demand, with the South Asian country’s reliance on expensive energy imports drains its resources and triggers inflation.
According to National Electric Power Regulatory Authority’s (NEPRA) 2022 yearly report, Pakistan’s total installed power generation capacity is 43,775 MW, of which 59 percent of energy comes from thermal (fossil fuels), 25 percent from hydro, 7 percent from renewable (wind, solar and biomass) and 9 percent from nuclear energy resources.
“Pakistan’s Ambassador to China, Khalil Hashmi has said that Pakistan has a natural advantage for renewable resources of energy with its long coastline of over one thousand kilometers,” Radio Pakistan reported. “He invited Chinese investors to explore the opportunities available in Pakistani offshore wind industry.”
The Pakistani envoy was speaking at a seminar titled “High-Quality Development of Offshore Wind Power Supply Chain” at the Chinese city of Fuzhou, Radio Pakistan said.
He appreciated China’s rapid advancements in the offshore wind industry sector, underlining the need for enhanced bilateral cooperation by strengthening technology exchanges, infrastructure development and regulatory support, the state broadcaster said.
Pakistan’s power minister last month met his counterpart from Iran and Chinese energy officials to discuss enhanced cooperation in cross-border energy on the sidelines of the Third Belt & Road Ministerial Conference held in Qingdao, China in October.
The Pakistani minister also held separate meetings with Yao Huan, vice president of Power China and Ni Zhen, the general manager of Energy China, in Qingdao. During the meeting, Leghari conveyed Pakistan’s desire to modernize power dispatch and transmission systems, aimed at cutting lines and other losses, the power ministry had said.
