ISLAMABAD: Pakistan grappled with an unprecedented surge in inflation in 2023, impacting the living standards of its citizens, some of whom acknowledged this week they considered moving abroad amid drastically reduced purchasing power.
Faced with dwindling foreign exchange reserves and a rapidly depreciating national currency, inflation in Pakistan spiked to a historic high of 38 percent earlier this year in May.
While the situation eased in subsequent months, the country’s central bank decided to retain the policy rate at 22 percent in December to mitigate the inflationary pressure.
The bank informed in a report released on Friday it aimed to prevent high inflation from becoming entrenched in the coming months and hoped to bring it down to about 20 percent in the current fiscal year.
“The monthly expense of my groceries was Rs 25,000, which is still the same, but the commodities that I’m getting are less than half,” Ahsan Baloch, a local business owner, told Arab News. “Now I’m seriously thinking about moving abroad. This is because of last year’s inflation, which was totally disastrous and completely changed my lifestyle.”
Baloch’s experience is emblematic of the broader economic crisis facing the nation, requiring structural reforms to fix outstanding issues like mounting fiscal and trade deficits, energy crisis and significant debt dependency.
Currently under a caretaker administration, Pakistan secured a $3 billion standby arrangement from the International Monetary Fund (IMF) as a critical lifeline this year, though the stringent requirements imposed by the global lender, such as an increase in fuel prices and removal of subsidies, intensified inflationary pressure.
A 60-year-old woman, who refused to give her name to Arab News while buying various commodities at a local market, said her monthly grocery bill had doubled in the last couple of months.
She said it had been “a daily struggle to manage the household budget,” sometimes forcing her to cut down essential items to make ends meet.
Some people complained that small and medium enterprises had become particularly vulnerable in the ongoing economic turmoil.
“Inflation takes place but the next big issue is heavy taxation on everything,” Ikram Azeez, a 55-year-old real estate agent, said. “Taxes have been increased to such an extent that it has become difficult for the average individual to buy or sell anything. This makes life too difficult.”
Rafiq Ajani, a 40-year-old businessman, complained about the national currency’s depreciation.
“It is very important for all our Pakistanis and all the individuals over here, especially youngsters, to look for opportunities where they can earn in dollars,” he told Arab News.
Sarah Shinwari, a 19-year-old student at a roadside restaurant, argued it made sense for people to settle abroad amid the present circumstances.
“I think if you move to a different country, the opportunities will be way bigger,” she added. “They have more economic and social freedoms [in other countries] ... I think it can be beneficial.”
In Pakistan’s capital, surging inflation forces some residents to consider relocating abroad
https://arab.news/9bmd5
In Pakistan’s capital, surging inflation forces some residents to consider relocating abroad
- Inflation spiked to historic high of 38 percent this year amid dwindling forex reserves, depreciating currency
- Some people say it is vital for those who cannot settle abroad to look for opportunities to earn in dollars
Pakistan’s finmin discusses financial cooperation with Saudi National Bank chairman in Davos
- Muhammad Aurangzeb meets SNB chairman at sidelines of World Economic Forum summit in Davos
- Pakistan’s finmin meets Egypt’s planning minister, discusses ongoing projects between two countries
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb met Saudi National Bank Chairman Saeed bin Mohammed Al-Ghamdi on Tuesday to discuss financial cooperation and strengthening banking sector partnerships between the two countries, Pakistan’s finance ministry said.
The meeting between the two officials took place during the sidelines of the World Economic Forum (WEF) summit in Davos, which will be held till Jan. 24 under the theme: ‘Collaboration for the Intelligent Age’.
Pakistan and Saudi Arabia are close regional partners and economic allies, with both countries signing 34 agreements worth $2.8 billion in October 2024.
“The two leaders discussed potential financial cooperation between Pakistan and Saudi Arabia, particularly focusing on strengthening partnerships in the banking sector,” the finance ministry said in a statement.
Aurangzeb briefed Ghamdi about Pakistan’s economic progress and the improvements made by the South Asian nation in its international financial rankings.
“Both sides expressed their commitment to further deepen economic ties for mutual benefit,” the ministry said.
Meanwhile, the Saudi Export-Import Bank and Pakistan’s Bank Alfalah also signed a $15 million financing agreement, strengthening access to Pakistani markets and boosting trade and economic ties.
Separately, Aurangzeb also met Egyptian Minister of Planning, Dr. Rania Al-Mashat at the sidelines of the summit. The two ministers discussed ongoing programs and projects between Pakistan and Egypt, the finance ministry said.
“The two ministers agreed to continue discussions on economy and finance and learn from each other’s experiences,” the statement said.
Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade
- Agreement designed to enhance Kingdom’s exporters access to Pakistani markets
- In October, businesses from both countries signed agreements worth $2.8 billion
RIYADH: The Saudi Export-Import Bank and Pakistan’s Bank Alfalah have inked a $15 million financing agreement, designed to enhance Kingdom’s exporters access to Pakistani markets and foster stronger trade and economic ties.
The new credit line deal seeks to increase the flow and competitiveness of the Kingdom’s non-oil exports as well as unveil new trade horizons between the two countries, the Saudi Press Agency reported.
This falls in line with Pakistan’s efforts to strengthen trade and investment ties with the Kingdom, with the Saudi government reaffirming its commitment in September to fast-track a $5 billion investment package for the Asian country.
This also aligns with Saudi EXIM’s goal of diversifying the Kingdom’s economy by offering financing and insurance products for non-oil exports in support of Vision 2030.
“The agreement comes within the bank’s efforts to strengthen strategic relations with international banks and financial institutions to provide financing solutions that contribute to the development of Saudi non-oil exports and enhance their competitiveness in Pakistani markets, by encouraging importers from Pakistan to import Saudi products and services, which opens up broad prospects for the development of trade and investment between the two countries, and creates more promising trade and investment opportunities,” said General Director of the Finance Department at Saudi EXIM Bank Abdul Latif bin Saud Al-Ghaith.
The Group Head of Corporate, Investment Banking, and International Business at Bank Alfalah, Farooq Ahmed Khan, said: “The agreement between Saudi EXIM Bank and Bank Alfalah Ltd. is a milestone in strengthening trade relations between the Kingdom and Pakistan.”
He added: “The financing line will enable Pakistani companies to access high-quality products in the Kingdom and will also enhance the volume of trade exchange between the two countries.
“We at Bank Alfalah are proud to play a pivotal role in promoting trade and investment opportunities that are in line with the shared vision to strengthen and grow the economies of both countries.”
In October, Saudi businessmen expressed hope for successful collaborations in Pakistan, saying the country’s economic stability and improved regulatory framework had made it an attractive investment destination, following the signing of over two dozen deals between companies from both nations.
Pakistan condoles loss of lives as Turkiye ski resort fire kills 66
- Fire erupted overnight in hotel of Turkiye’s Kartalkaya ski resort
- Pakistan stands shoulder-to-shoulder with Turkiye, says foreign office
ISLAMABAD: Pakistan’s foreign office on Tuesday condoled over the loss of lives caused by a deadly fire at a ski resort in Turkiye that killed at least 66 people and wounded over 50 others.
The blaze erupted overnight in the restaurant of the hotel in the famous Kartalkaya ski resort in Bolu province on Monday.
Television footage showed the roof and upper floors of the building engulfed in flames as witnesses and reports indicated that the hotel’s fire detection system had failed to activate.
As per reports, 234 guests were staying at the hotel when it caught fire.
“The government and people of Pakistan are deeply saddened by the devastating fire at a hotel in the Kartalkaya ski resort in Bolu, Türkiye this morning,” the foreign office said.
“Pakistan extends its heartfelt condolences to the Government and people of Türkiye, particularly to the families who have lost their loved ones.”
The foreign office said Pakistan stands shoulder-to-shoulder with Turkiye, reaffirming its solidarity with the nation.
According to the state-owned Anadolu Agency, Turkish Justice Minister Yılmaz Tunç said four people, including the business owner, were detained over the fire incident.
He said six public prosecutors were assigned to the probe, adding that a team of experts were looking into the cause of the fire.
Kartalkaya, which lies about 295 kilometers east of Istanbul, is one of Turkiye’s premier winter tourism destinations that attracts thousands of visitors every winter.
Pakistan contacting UAE to extradite real estate tycoon accused of graft— state media
- State media alleges Malik Riaz Hussain has illegally occupied lands owned by state, private persons
- Hussain, who is co-accused in land graft case involving former PM Imran Khan, denies wrongdoing
ISLAMABAD: Pakistan’s government is reaching out to the United Arab Emirates (UAE) to extradite real estate tycoon Malik Riaz Hussain, the co-accused and proclaimed offender in a land graft case involving former prime minister Imran Khan, on charges of building housing societies on lands he does not legally own, state-run media reported on Tuesday.
Hussain, currently residing in the UAE, is one of Pakistan’s richest and most powerful businessmen and biggest private employers. He is known for being the chairman of Bahria Town Limited, which calls itself Asia’s largest private estate developer.
The development takes place after a Pakistani court last Friday sentenced Khan to 14 years in prison and his wife, Bushra Khan, to seven years in jail. Both were accused of receiving land as a gift from Hussain during Khan’s premiership from 2018 to 2022 in exchange for illegal favors.
Khan says he and his wife were merely trustees and did not benefit from the land transaction. Hussain has also denied being involved in any wrongdoing related to the case.
“The Government of Pakistan is reaching out to the Government of United Arab Emirates for the extradition of Malik Riaz through legal channels,” state broadcaster Radio Pakistan reported.
Radio Pakistan said Pakistan’s anti-corruption watchdog is conducting an inquiry against Hussain and his accomplices for fraud, deceptive practices and cheating the public at large.
It said the National Accountability Bureau (NAB) has credible information that Hussain and his accomplices not only illegally possessed and occupied state-owned land but also land belonging to private persons in Karachi, Takht Parri, Rawalpindi and New Murree areas.
The state broadcaster said Hussain is developing housing societies on these lands
without obtaining regulatory permissions, accusing him of committing fraud against the state and public amounting to billions of rupees.
It mentioned that Riaz has recently launched a project to construct luxury apartments in Dubai, warning the public against investing in it.
“The general public at large is hereby advised and warned to refrain from investing in the stated project,” it said.
“If the general public at large invests in the stated project, their actions would tantamount to money laundering, for which they may face criminal and legal proceedings.”
Hussain has not responded to the latest allegations against him. However, in May 2024, the real estate tycoon took to social media platform X to condemn a raid by NAB at his company’s offices in Pakistan.
Hussain vowed not to give in to “bullying.” The post, however, was a cryptic one as the real estate developer did not state specifically who was pressurizing him.
Pakistan says it has agreed $1 billion loan with two Middle Eastern banks
- Loans are short-term with 6 to 7 percent interest rate, says Muhammad Aurangzeb
- Pakistan aims to boost finances after securing $7 billion IMF bailout in September
DAVOS, Switzerland: Pakistan has agreed terms for a $1 billion loan with two Middle Eastern banks at a 6%-7% interest rate, its Finance Minister Muhammad Aurangzeb told Reuters on Tuesday, as the South Asian country looks for more financing.
“With two institutions we have now gone forward in signing up the term sheet — one bilateral and one for trade (finance),” Aurangzeb said during an interview on the sidelines of the World Economic Forum annual meeting in Davos.
The loans were short-term — or up to one year, Aurangzeb added.
Pakistan aims to boost its finances after securing a $7 billion International Monetary Fund (IMF) bailout in September 2024, with the first review set for late February.
“We have the first formal review of the EFF coming through toward (the) end of February,” Aurangzeb said. “I do think we are in good stead for that review.”
IMF extended fund facilities (EFFs) provide financial assistance to countries facing serious medium-term balance of payments problems resulting from structural weaknesses that require time to address.
