Pakistan stocks close at record high amid IMF talks, tensions in Middle East

In this photo, taken on December 29, 2023, workers interact outside the Pakistan Stock Exchange in Karachi. (AN Photo/File)
Short Url
Updated 19 April 2024
Follow

Pakistan stocks close at record high amid IMF talks, tensions in Middle East

  • The benchmark KSE-100 index surged by 647 points after morning trading hiccups due to reports of Israel’s attack on Iran
  • Pakistani analysts say escalating tensions in Middle East will impact supply chain and increase import bill for Pakistan

KARACHI: Pakistan’s stock market recorded on Friday its highest-ever closing at 70,909 points, stock brokers and analysts said, attributing it to ongoing talks with the International Monetary Fund (IMF), but cautioning about potential economic impact of Israel-Iran tensions in the Middle East.

Explosions were heard in Iranian city of Isfahan on Friday that were described as an Israeli attack by western media. However, Tehran has not officially confirmed the development as its response remains muted.

The Pakistan Stock Exchange witnessed some nervousness in the morning trading session, when news of Israel’s attack on Iran came in. But despite the development, the benchmark KSE-100 index surged by 647 points to close at 70,909 points.

“When news of the attack on Iran came this morning, its impact was seen in the Asian and European markets at one point,” Shehryar Butt, portfolio manager at the Karachi-based Darson Securities, told Arab News.

“Nikkei saw a decline of more than a thousand points, but despite this, the Pakistan Stock Exchange performed much better.”

The Pakistani bourse has recently been trading at record highs amid positive sentiment prevailing among investors due to hopes of the country’s successful talks with the IMF.

“The basic reason for this is that Pakistan is currently in the IMF program, and very serious discussions are taking place in Washington at this time,” Butt said.

Pakistan’s finance minister, Muhammad Aurangzeb, is currently in Washington to hold talks with IMF officials for a new long-term loan program as Pakistan’s current $3 billion program is due to expire this month. The finance minister has expressed his hopes that the outline of the new program will be agreed next month.

Pakistan is expected to demand a loan size of around $7 billion but Jihad Azour, the IMF Middle East and Central Asia Director, said on Wednesday the reform package was more important than the size of the program.

“I would say the package of reform is now more important than the size of the program because we saw recently that the right measures provided the right response,” Azour said at a press briefing.

The surge in global oil prices amid geo political tensions and the Pakistani rupee’s recovery played “a catalyst role in Friday’s record close,” according to Ahsan Mehanti, CEO of the Arif Habib Corporation.

Though Pakistan’s market downplayed the Middle East tensions, but analysts said if the situation escalated, it would disrupt supply chain and impact Pakistan’s economy.

“The conflict between Iran and Israel will affect the Pakistani economy, quite a negative effect will be seen on the Pakistani economy because immediately after that, we saw geo-political situation worsening and oil started to rise,” Butt said, adding the rising global oil prices would impact Pakistan’s import bill.

Pakistan has imported petroleum products worth $12 billion during the July-March period of the current fiscal year, including $3.9 billion worth of crude oil and 2.9 billion worth of liquefied natural gas (LNG), according to official data.

Butt feared that if the situation persisted, then the attention of Saudi Arabia would also be drawn to the Middle East and the investment commitments made by the Kingdom with Pakistan could be delayed.

Haroon Sharif, an economist and former chairman of the Pakistan Board of Investment, said if the tensions in the Middle East escalated, their first impact would be on the stock market as foreign investors would like to shift their capital to safer markets.

“Another impact would be oil price escalation, hitting Pakistan’s trade deficit and traveling and cargo price would also escalate, increasing the cost of doing business,” Sharif said, adding that investors would hold their future expansion and investment plans till situation becomes stable.

Husain Haqqani, a former Pakistani ambassador to the United States and scholar at Washington DC’s Hudson Institute, said a prolonged conflict between Iran and Israel would increase uncertainty and instability across the Middle East.

“If Iran’s drone and missile attack on Israel was meant to show Iran’s reach, Israel has demonstrated its ability to strike deep inside Iran,” Haqqani told Arab News.

“Iran has several proxies that it can use while Israel has tremendous military and intelligence capabilities. Leaders of both countries have domestic political reasons to not be forgiving toward one another.”

Haqqani said the US would likely restrain Israel, while Iran would be constrained by its limited capability.

“After all, even after attacking with hundreds of missiles and drones, Iran was unable to cause real damage on ground in Israel,” he added.


Pakistan deputy PM reviews preparations for key talks with Qatar next week

Updated 10 sec ago
Follow

Pakistan deputy PM reviews preparations for key talks with Qatar next week

  • The bilateral talks in Doha, starting on Feb. 5, are expected to cover areas such as trade, investment and defense collaboration
  • They come at a time when Pakistan is seeking to boost foreign investment and trade to put its fragile economy on path of recovery

ISLAMABAD: Pakistan’s deputy prime minister and foreign minister, Senator Ishaq Dar, has held an inter-ministerial meeting to review preparations for the upcoming Pakistan-Qatar Bilateral Political Consultations in Doha next week, Pakistani state media reported on Sunday.
The bilateral talks in Doha, starting on Feb. 5, are expected to cover key areas, including trade, investment, defense collaboration, and mutual diplomatic interests.
Besides leading Pakistan’s delegation at the talks, Dar will hold meetings with the Qatari leadership, a Pakistani foreign office spokesperson said on Friday.
During Sunday’s meeting, officials briefed the deputy prime minister on the status of various Pakistan-Qatar initiatives, the Radio Pakistan broadcaster reported.
“The deputy prime minister and foreign minister underscored that preparations should be made for substantive, productive and result oriented discussions in Doha,” the report read.
The talks come months after Prime Minister Shehbaz Sharif visited Qatar in Oct. 2024 to bolster economic cooperation between the two countries. Sharif led delegation-level talks with the Qatari emir, Sheikh Tamim bin Hamad Al-Thani, before holding a separate meeting with him to discuss a wide array of issues.
“The leaders reviewed the entire spectrum of Pakistan-Qatar relations, exploring potential avenues for enhanced cooperation in trade, potential areas of investment, energy, and culture,” Sharif’s office said at the time.
Pakistan and Qatar have longstanding economic, defense and cultural relations. In 2022, the Qatar Investment Authority committed $3 billion for projects in Pakistan, spanning airport management, renewable energy and hospitality.
The talks between both countries are occurring at a time when Islamabad is seeking to boost foreign investment and trade to support its dwindling economy, which is on a tricky path to recovery since Pakistan avoided a default in June 2023.


Islamabad demands ‘urgent action’ to protect world wetlands to mitigate climate crisis

Updated 02 February 2025
Follow

Islamabad demands ‘urgent action’ to protect world wetlands to mitigate climate crisis

  • Wetlands are defined as both freshwater and coastal and marine ecosystems that are vital to human well-being and sustainable development
  • These ecosystems act as natural buffers against floods and function as carbon sinks, which helps mitigate the effects of global warming

ISLAMABAD: Pakistan on Sunday called on the world to take “urgent action” to safeguard wetlands, emphasizing their significant role in environmental preservation, biodiversity, and combating impacts of climate change.
The statement by Romina Khurshid Alam, the Pakistan prime minister’s coordinator on climate change, came on the World Wetlands Day being observed under the theme “Wetlands and Water.” Alam called for strengthened global and national efforts to safeguard these vital ecosystems.
The United Nations (UN) has designated Feb. 2 as World Wetlands Day to commemorate the adoption of the Ramsar Convention on Wetlands in 1971. As part of Pakistan’s commitment to the Ramsar Convention, the country has designated 19 wetlands of international importance, including the famous Keenjhar Lake, Rann of Kutch, and the Haleji Lake, which support a wide variety of wildlife, especially for around 2 million migratory birds from countries in Central Asia, Siberia and northern parts of Europe.
The Pakistan PM’s aide stated that climate change has exacerbated the challenges faced by wetlands in Pakistan, with rising temperatures, changing rainfall patterns, and increasing sea levels causing wetlands to shrink disrupting the delicate balance of these ecosystems.
“As we observe World Wetland Day, it is essential that we commit taking action not just today but every day to safeguard the wetlands and the countless species that depend on them,” Alam said. “By collaborating, we can preserve these precious resources and build a sustainable future of environment.”
Wetlands are defined as both freshwater and coastal and marine ecosystems, and include all lakes and rivers, swamps, marshes, peatlands, estuaries, deltas, tidal flats, mangroves, coral reefs, and underground aquifers.
These areas are vital to human well-being and sustainable development but despite their critical role, wetlands are among the ecosystems with the highest rates of decline, loss and degradation, according to environmental experts.
Alam noted that although Pakistan contributes only 1 percent to global greenhouse gas emissions, it has been ranked among top ten climate-vulnerable nations.
“This stark disparity highlights the country’s heightened risk to the effects of climate change, such as extreme weather events, floods, droughts, and rising temperatures, which pose significant threats to its population, economy, and place additional pressure on its wetland resources,” she said, emphasizing that wetlands act as natural buffers against floods and function as carbon sinks, which helps mitigate the effects of global warming.
Pakistan last year recorded its “wettest April since 1961,” with 59.3 millimeters of rainfall while some areas of the country faced a heat wave in May and June. In 2022, unusually heavy rains triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion, and affecting at least 30 million people.
Scientists have attributed Pakistan’s erratic weather patterns to climate change effects and called on countries around the world to take urgent steps to tackle the crisis.
Alam reaffirmed Pakistan’s commitment to protecting these vital ecosystems by strengthening environmental policies, promoting sustainable water management, and working closely with local communities to ensure that wetlands are preserved for future generations.
“Pakistan has shown resilience in the face of climate change, and our government is continuously taking steps to address environmental degradation,” she said. “Wetlands, especially in regions like the Indus Delta, play a crucial role in maintaining the ecological balance and supporting livelihoods.”


Pakistan launches first anti-polio drive of 2025, appreciates Saudi support in disease eradication

Updated 53 min 2 sec ago
Follow

Pakistan launches first anti-polio drive of 2025, appreciates Saudi support in disease eradication

  • Pakistan reported a total of 73 polio cases last year amid a resurgence of virus
  • Shehbaz Sharif says Saudi Arabia has pumped in hundreds of millions to fight polio

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday thanked Saudi Arabia for joining hands with Pakistan and its global partners in their fight against polio as he launched a nationwide anti-polio drive, which aims to vaccinate more than 40 million children under the age of five years.
Polio is a paralyzing disease that has no cure. Multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five is essential to provide children high immunity against this terrible disease.
The Pakistan polio program conducts multiple mass vaccination drives in a year, and this year’s first anti-polio vaccination campaign will formally begin on Monday, Feb. 3 and continue until Feb. 9.
PM Sharif noted that Pakistan reported over 70 cases of the virus last year, while the country has reported one polio case this year, launching the campaign by administering anti-polio vaccine to children in Islamabad.
“Now, our brotherly country, Kingdom of Saudi Arabia, has again joined hands [with Pakistan and global partners] against polio and they have pumped in hundreds of millions of dollars for this purpose,” Sharif said.
“I hope we will be able to, this time around, with coordinated and outstanding team efforts, [we] will be able to eradicate this disease from the face of Pakistan.”
Pakistan reported a total of 73 polio cases in 2024. Of these, 27 were from Balochistan, 22 from Khyber Pakhtunkhwa, 22 from Sindh, and one each from Punjab and Islamabad. The country reported its first case of 2025 in Dera Ismail Khan on Jan. 22.
Pakistan and Afghanistan are the last two countries in the world where polio remains an endemic.
Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain. In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021.
Pakistan’s polio program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams.


Police arrest two suspects in shooting that injured senior official in restive Pakistani district

Updated 02 February 2025
Follow

Police arrest two suspects in shooting that injured senior official in restive Pakistani district

  • Additional Assistant Commissioner Sayed Manan was injured in a crossfire between warring tribes in Bushehra area while he was trying to ensure a ceasefire
  • Fresh feuding between Shiite and Sunni tribes began on Nov. 21 when unidentified gunmen ambushed a convoy on Peshawar-Parachinar Road and killed 52 people

ISLAMABAD: Police have arrested two suspects of a shooting this week that injured a senior administration official in the northwestern Pakistani district of Kurram that has been hit by clashes for more than two months, a police official said on Sunday.
Kurram, a tribal district of around 600,000 where federal and provincial authorities have traditionally exerted limited control, has frequently witnessed violence between its Sunni and Shiite communities over land and power. Travelers to and from the area often ride in convoys escorted by security officials.
Fresh feuding began on Nov. 21 when gunmen ambushed a convoy and killed 52 people, mostly Shiites. The assault triggered road closures and other measures that have disrupted people’s access to medicine, food, fuel, education and work and created a humanitarian crisis in the area, where authorities say at least 150 people have been killed in two months of clashes.
Additional Assistant Commissioner Sayed Manan was injured in a crossfire between warring tribes in Bushehra area while he was trying to ensure a ceasefire there, according to Kurram police spokesman Riaz Khan. Manan was flown to the provincial capital of Peshawar in a helicopter in critical condition after being shot in the stomach.
“Late Saturday, during a special operation, the police force took into custody suspects, Iqrar Hussain son of Aftab Hussain and Maysam Ali son of Akbar Ali, residents of Bushehra,” Khan said in a statement. “Further investigation is underway.”
Feuding tribes have been engaged in battles with machine guns and heavy weapons, isolating the remote, mountainous region. The main road connecting Parachinar, the main town in Kurram, to the provincial capital of Peshawar has been blocked since sectarian fighting began in November.
The violence has continued despite a peace agreement signed between the warring tribes on Jan. 1. Under the peace agreement, both sides had agreed on the demolition of bunkers and the handover of heavy weapons to authorities within two weeks, but there has been little to no progress on the terms.
Shiite Muslims dominate parts of Kurram, although they are a minority in the rest of Pakistan, which is majority Sunni. Provincial and federal authorities have been supplying relief goods and evacuating the injured and ailing from Kurram to Peshawar via helicopters since last month.
Muhammad Ali Saif, a KP government spokesman, said on Friday “hatred” was the root cause of the Kurram issue and lasting peace in the region was not possible without eliminating it.
“All elements challenging the government’s writ will be punished according to the law,” he said, while speaking to a council of tribal and political elders in Kohat that was formed to resolve the Kurram issue.
“The Kohat [peace] agreement will be equally applicable to both parties.”


Pakistan arrests 10 suspects for begging in Saudi Arabia under guise of Umrah

Updated 02 February 2025
Follow

Pakistan arrests 10 suspects for begging in Saudi Arabia under guise of Umrah

  • Suspects were deported from Saudi Arabia for being involved in begging, says Federal Investigation Agency
  • Pakistan’s FIA says authorities conducting strict screening across all airports, vows stern action against beggars

KARACHI: Pakistan’s Federal Investigation Agency (FIA) said on Sunday it has arrested 10 persons deported from Saudi Arabia for allegedly begging in the Kingdom despite traveling there on Umrah visas. 

The trend of beggars abusing visas to beg in foreign countries has Pakistan worried that it could impact genuine visa-seekers and particularly religious pilgrims to Saudi Arabia. According to widespread media reports, Riyadh raised this issue with Islamabad at various forums last year. 

Pakistan’s Interior Minister Mohsin Naqvi said in November 2024 that an “effective crackdown” was being carried out across the country against Pakistanis traveling to the Kingdom on pilgrim and other visas and resorting to begging. 

“In a major operation by FIA Immigration at Karachi airport, 10 suspects involved in begging under the guise of Umrah were arrested,” the agency said in a statement. 

The suspects were deported from the Kingdom for being involved in begging and had arrived in Karachi via flight SV-704. The FIA said they hail from Pakistan’s Rajanpur, Naushahro Feroze, Kashmore, Lahore, Peshawar, Mohmand and Larkana cities and districts.

The agency said its initial investigation proved the suspects were begging in Saudi Arabia for several months, adding that they were transferred to the Anti-Human Trafficking Circle in Karachi for further legal action. 

“FIA Immigration is conducting strict screening at all airports,” the FIA said. “Passengers going abroad are being checked from all aspects. Strict action is being taken against those involved in begging.”

Pakistanis are the second-largest expatriate community in the Kingdom, with over 2.5 million living and working in Saudi Arabia, the top source of remittances to the South Asian country.