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
Azeri air and ground crew undergo training at Pakistan Air Force base
- A high-level Azerbaijani delegation also called on Pakistan’s air chief on Tuesday to discuss training cooperation
- The visit signifies resolute commitment of both countries to reinforce military partnership, Pakistani military says
ISLAMABAD: The Pakistan Air Force (PAF) has been enhancing operational capabilities of the Azerbaijan Air Force by training Azeri air and ground crews at an operational Pakistani base, the Pakistani military said on Tuesday.
The statement came after a high-level Azerbaijani delegation, comprising Deputy Defense Minister Agil Gurbanov and Air Force Commander Lt. Gen. Namig Islamzade, called on Pakistan’s air chief, Air Chief Marshal Zaheer Ahmed Baber Sidhu, at the Air Headquarters in Islamabad.
The officials discussed the importance of training cooperation, with Air Chief Marshal Sidhu reaffirming his commitment to strengthening bilateral relations and enhancing cooperation in operational and training areas, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“He noted that the [ongoing] training program is on schedule, with over 50 percent of the training objectives successfully achieved,” the ISPR said in a statement.
“He further emphasized that the initiative is expected to culminate within one-month timeframe, reflecting the commitment of PAF to enhance the operational capabilities of Azerbaijan Air Force.”
The air chief highlighted the PAF’s recent accomplishments, reflecting his vision of operational excellence in modern warfare, according to the ISPR.
The visiting dignitaries lauded the professionalism demonstrated by PAF personnel and their notable progress in developing a thriving domestic capability in the aviation industry in a short timeframe.
“The dignitaries expressed satisfaction on the training imparted to 70 aircrew & technicians getting trained in PAF and expressed their desire for enhanced Air Force to Air Force collaboration between the two sides,” the ISPR statement read.
“Emphasizing on the need to adapting to the evolving landscape of modern warfare, the Azerbaijan military leadership also proposed the establishment of a more comprehensive training regimen focusing on niche and disruptive technologies, as well as cyber and electronic warfare capabilities.”
Later the delegation visited the PAF Cyber Command at the Air Headquarters, where it was briefed about the operational capabilities and ongoing projects of PAF’s modernization drive.
The Pakistani military said the visit of the high-level defense delegation from Azerbaijan signified a resolute commitment of both countries to reinforce their military partnership, fostering collaboration and promoting robust relations.
In recent months, there has been a flurry of visits by Azerbaijani officials to Pakistan, highlighting the growing cooperation between the two countries in various sectors. Pakistan, which has been facing an economic crisis, is currently making efforts to position itself as a pivotal trade and transit hub connecting Central Asian states and China with the rest of the world.
In July, Azerbaijan President Ilham Aliyev’s arrived in Pakistan on a two-day visit, during which both nations agreed to enhance the volume of bilateral trade to $2 billion and vowed to increase cooperation in mutually beneficial economic projects.
Last week, Pakistan waived customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement. The agreement signed on July 11 aimed to boost economic cooperation by reducing tariffs on goods like Pakistan’s sports equipment, leather, and pharmaceuticals apart from Azerbaijan’s oil and gas products.
Pakistan’s Imran Khan demands ‘time frame’ for progress in talks with government
- The jailed ex-premier seeks a meeting with his negotiating team to get the details of the process
- Government asked Khan’s PTI to bring its demands in writing in the next round of talks on Jan. 2
ISLAMABAD: Former Prime Minister Imran Khan on Tuesday called for a “time frame” within which negotiations with the government should progress and the demands of his Pakistan Tehreek-e-Insaf (PTI) party, including the release of political prisoners, should be addressed.
Khan’s message was conveyed by Barrister Gohar Ali Khan, chairman of PTI, after meeting the ex-premier at a high-security prison in Rawalpindi. The former prime minister, who has been imprisoned for over a year on charges he claims are politically motivated, has threatened to launch a civil disobedience movement by urging overseas Pakistanis to halt remittances if his demands are not met.
Khan’s demands include the release of all PTI political prisoners and the establishment of judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government claims involved PTI supporters.
His insistence on a time frame comes just a day after the government initiated formal negotiations with the PTI, asking it to bring all its demands in writing.
“I informed Khan Sahib about the negotiations that have started,” Gohar said while speaking to the media after the meeting. “Khan Sahib said it’s a good thing that negotiations are taking place, but there should be a time frame within which progress should be made.”
Asked about the exact time frame he had in mind, Gohar said Khan had not specified one, only emphasizing that progress on his party’s demands should happen “as soon as possible.”
He described his interaction with Khan as a “routine meeting” lasting half an hour.
Gohar said PTI plans to present its charter of demands in the next round of talks, scheduled for Jan. 2, and expressed hope for meaningful results.
Meanwhile, Khan reiterated his stance through a post on X, formerly Twitter, calling for his nominated negotiation team to meet him.
“To make the negotiation process meaningful, it is important that I meet with my nominated negotiation team so that I can have a proper understanding of what is going on,” he said.
The ex-premier maintained that his party would postpone the civil disobedience movement if its demands were implemented but expressed skepticism about the government’s willingness to investigate the May 9 and November 26 incidents.
“We will not allow that to happen,” he added.
Pakistan Railways starts manufacturing new coaches after technology transfer from China
- Pakistan will assemble 184 new passenger coaches at Railways Carriage Factory in Islamabad in next three years
- China is also helping Pakistan upgrade and dualize an existing Main Line- 1 rail track from Karachi till Peshawar
ISLAMABAD: Pakistan Railways (PR) has started production of new train coaches in the country, Pakistani state media reported on Tuesday, following the transfer of technology from China.
The South Asian country has been able to locally produce high-speed passenger coaches and goods wagons using technology transferred by China, according to media reports.
China has also helped build capacity of PR engineers and technicians who have succeeded in manufacturing new coaches and wagons at workshops in Lahore and Islamabad.
"As many as 184 new passenger coaches would also be assembled at Pakistan Railways Carriage Factory, Islamabad during the next three years," the Associated Press of Pakistan (APP) state news agency reported, citing a railways official.
PR Executive Officer Amir Ali Baloch said that a new Green Line-styled train will be run between Lahore and Karachi soon, according to the Radio Pakistan broadcaster.
He said he had issued orders to further improve the quality of food and drink in trains, and requested public to take special care of cleanliness.
Last month, China and Pakistan discussed advancement of rail, road and economic zone projects under the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), a part of China's Belt and Road Initiative, which aims to connect China to the Arabian Sea through a network of roads, railways, pipelines and ports in Pakistan and help Islamabad expand and modernize its economy.
The discussions on key projects were held during Chinese Ambassador to Pakistan Jiang Zaidong's meeting with Pakistani Planning Minister Ahsan Iqbal, according to Pakistan's Press Information Department (PID).
China is also helping Pakistan upgrade and dualize an existing Main Line- 1 (ML-1) railway track, built in the late 19th century. The $6.8 billion, 1,872-kilometer-long ML-1 line connects the southern Pakistani port city of Karachi to Peshawar in the country's northwest.
ICC Champions Trophy schedule announced, matches split between Pakistan and Dubai
- The tournament is set to begin on 19 February in Karachi, with Pakistan taking on New Zealand
- ICC says Lahore will host the final match of the cricket contest on 9 March, unless India qualify
ISLAMABAD: The International Cricket Council (ICC) on Tuesday unveiled the schedule for the ICC Champions Trophy 2025, which will take place from February 19 to March 9, with matches hosted across Pakistan and Dubai in a hybrid model.
The tournament’s structure follows a compromise decision after India refused to play in Pakistan, citing security concerns. Exercising its rights as the host nation, Pakistan designated Dubai as the neutral venue for India’s matches, ensuring all teams’ participation.
“The ICC Champions Trophy 2025 fixtures and groupings have been announced by the ICC ... with the tournament set to begin on 19 February in Karachi with the final on 9 March,” the global governing body of cricket announced in a statement on its website.
“The eight-team tournament will feature 15 matches, and will be played across Pakistan and in Dubai,” it added. “Lahore will also host the final on 9 March, unless India qualify, in which case it will be played in Dubai. Both the semifinals and the final will have reserve days.”
In Pakistan, Karachi, Lahore and Rawalpindi will host three group-stage games each. Lahore is also set to host the second semifinal.
Meanwhile, Dubai will host all three of India’s group matches and the first semifinal, should India qualify.
The tournament opener on February 19 will feature Pakistan taking on New Zealand in Karachi, while India will face Bangladesh in Dubai on February 20.
This will be the ninth edition of the ICC Champions Trophy and its return after an eight-year hiatus, the last tournament having taken place in England in 2017. The event will feature the top eight teams in world cricket competing for one of the sport’s most prestigious titles.
The hybrid model, while a logistical challenge, aims to strike a balance between accommodating geopolitical realities and ensuring the integrity of the tournament, which cricket fans worldwide await.
Pakistan to link up with 2Africa submarine cable from next year, boosting internet speeds
- Pakistanis have been experiencing a months-long internet slowdown, which has sparked a backlash from activists
- The government has attributed the slowdown to a surge in Virtual Private Network usage, damaged underwater cables
ISLAMABAD: Pakistan is set to enhance its internet speeds and connectivity by linking up with the 2Africa submarine cable next year, state media reported on Tuesday.
2Africa, one of the world's largest submarine cable systems, spans 45,000 kilometers and connects 46 locations across Africa, Europe, and the Middle East, utilizing SDM1 technology to offer speeds of up to 180 Tbps.
Millions of Pakistanis have experienced a mysterious, months-long internet slowdown, sparking backlash from activists and business leaders who believe the government is testing a firewall to control online spaces.
The Pakistani government has attributed the slowdown to a surge in Virtual Private Networks (VPNs) usage and damaged underwater cables, while also acknowledging that the country is "undergoing a transition."
"The project, according to Pakistan Telecommunication Authority (PTA), will improve Pakistan’s international telecommunications infrastructure and enhance connectivity," the Associated Press of Pakistan (APP) news agency reported.
"PTA has made significant strides in enhancing international connectivity through the facilitation of Transworld Associate, the landing partner of the 2Africa submarine cable for Pakistan."
The first phase of 2Africa cable project began on Dec. 1, with the Pre-Lay Shore End (PLSE) installation. This key step in deploying submarine cables involves the initial setup and preparation at the shore end before the deep-sea cable laying begins, according to the PTA.
The installation of the deep-sea section of the submarine cable will begin on April 1, 2025 in the second phase of the project, which will involve laying the cable across the ocean floor to connect various regions.
In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.”
The Pakistan Software Houses Association (P@SHA) had also warned that internet slowdowns and the restriction of VPN services could lead to financial losses and closures, and an increase in operational costs for the industry by up to $150 million annually.
Pakistan’s IT exports have been growing at an average of 30 percent per year and are on way to achieving over $15 billion in the next 5 years, according to industry data. But it depends upon the government's ability to ensure continuity of export, fiscal, financial, infrastructure and IT policies, P@SHA said.
