ISLAMABAD: Pakistan’s financial sector showed a steady performance and expanded 27 percent in 2023 as inflation began falling, economic growth recovered and currency exchange rate stabilized in the country, the Pakistani central bank said on Friday.
The State Bank of Pakistan (SBP) stated this in its annual Financial Stability Review (FSR) for 2023, presenting performance and risk assessment of various segments of the financial sector including banks, microfinance banks (MFBs), non-bank financial institutions (NBFIs), insurance, financial markets and financial market infrastructures (FMIs). It assessed financial soundness of major user of credit and financial services, viz. the non-financial corporate sector.
The review highlighted that macroeconomic environment remained challenging amid rising inflation, weak foreign exchange inflows and pressures on external account and local currency, and low business confidence particularly in the first half of 2023. However, policy measures and regulatory interventions that were taken to address growing imbalances, coupled with a $3 billion bailout from the International Monetary Fund (IMF), helped improve the macroeconomic conditions in the second half.
“In this backdrop, the financial sector exhibited strong growth and performance and maintained its financial soundness and operational resilience. The asset base of the financial sector expanded by 27.0 percent in CY2023, which was mainly driven by the banking sector,” the SBP said.
While volatility in financial markets remained high, the financial sector particularly the banking sector remained resilient and grew by 29.5 percent. The growth in assets was primarily driven by investments in government securities while private sector advances contracted in the backdrop of stressed macro-financial conditions, according to the review.
The non-bank financial sector also showed healthy performance, with the asset base of Development Finance Institutions (DFIs) and Non-Bank Financial Institutions (NBFIs) observing strong expansion. The insurance sector witnessed growth in assets and gross premium despite slowdown in economic activity.
“The overall position of the non-financial corporate sector was encouraging as solvency indicators and repayment capacity remained satisfactory,” the SBP said. “Large borrowers of banking sector exhibited stable repayment capacity and there were no significant delinquencies during the year under review.”
E-banking transactions continued to drive growth in retail payments in 2023 and the central bank moved to implement the third phase of ‘Raast’ payment system’s person-to-merchant (P2M) mode to facilitate digital payment acceptance for merchants and businesses.
“Going forward, overall risks to financial stability appear to be manageable due to anticipated moderation of macroeconomic stress and strong buffers and risk management capabilities of the banking sector,” the bank added.
Pakistan financial sector showed steady performance, expanded 27 percent in 2023 — central bank
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Pakistan financial sector showed steady performance, expanded 27 percent in 2023 — central bank
- The State Bank of Pakistan presented performance, risk assessment of various segments of financial sector in its annual review
- It notes policy measures and regulatory interventions, coupled with $3 billion IMF bailout, helped improve macroeconomic conditions
Two soldiers, two police officers killed during operation in northwest Pakistan— army
- Army says high-level “terrorist” Commander Abdul Raheem killed along with two other militants in operation
- Raheem was involved in killings of Pakistan Army captain, soldier during an operation in May this year
ISLAMABAD: Two soldiers, two police officers and three militants were killed on Wednesday during a joint intelligence-based operation in Pakistan’s northwestern Peshawar district, the army’s media wing said.
The joint operation was conducted by police and security forces in Peshawar district’s Hassan Khel area on the reported presence of a “high-level terrorist,” the Inter-Services Public Relations (ISPR) said in a statement.
The army said three militants, including “high-value terrorist” Commander Abdul Raheem were also killed in the operation. It said weapons and ammunition were recovered from the slain militants.
“Terrorist Commander Abdul Raheem was highly wanted by the Law Enforcement Agencies,” the ISPR said, adding that the government had fixed head money of Rs6 million [$21547] on Raheem as he was “actively involved” in militant activities.
The army’s media wing said Raheem was also involved in the killing of Captain Hussain Jahangir and Havaldar Shafiq Ullah, both of whom were targeted in an intelligence-based operation on May 26 this year.
“Today’s operation has avenged the heinous act and has brought the main perpetrator to justice,” the ISPR said.
Pakistan Army soldiers Sepoy Muhammad Idrees, 34 and Sepoy Badam Gul, 34 were killed in the exchange of fire, the army said.
Sub-Inspector Tajmir Shah, 38 and Assistant Sub-Inspector Muhammad Akram, 34 of Khyber Pakhtunkhwa (KP) Police’s Counter-Terrorism Department (CTD) were also killed during the operation while fighting valiantly, the army said.
“Pakistan’s Security Forces stand shoulder-to-shoulder with other law enforcement agencies to ensure peace and stability across Pakistan and such sacrifices of our brave men further strengthen our resolve,” the ISPR said.
Pakistan has suffered a surge in attacks on its western fronts bordering Afghanistan since November 2022 after its fragile truce with the Pakistani Taliban or the Tehreek-e-Taliban Pakistan (TTP) broke down.
The TTP has carried out some of the deadliest attacks against Pakistan’s security forces and civilians since 2007 in its bid to impose its strict brand of Islam.
Islamabad blames the Afghan government for sheltering TTP militants and providing them sanctuaries in Afghanistan to launch attacks in Pakistan, a charge Kabul denies.
Pakistan has repeatedly vowed it would not hold talks with militants and would root out militancy in the country.
Pakistan last month announced it would launch a new military operation, Operation “Azm-e-Istehkam” or Resolve for Stability, to eliminate militants once and for all.
Pakistan extends Afghan refugee registration cards for one year
- Pakistan extends one-year extension of refugee registration cards of 1.45 million Afghan residents that expired last year
- Development takes place day after UN refugee commissioner asked for pause in Pakistan’s plan to repatriate refugees
ISLAMABAD: Pakistan will extend expired registration cards given to almost 1.5 million Afghans for a year, the prime minister said on Wednesday, after the UN refugee commissioner asked for a pause in the country’s plan to repatriate refugees.
It was not immediately clear whether the extension of the Proof of Registration (PoR) cards that expired in June would exempt holders from any future deportations, and the Pakistani foreign office said the repatriation plan would continue.
“The cabinet accepted (the proposal) of a one-year extension of the PoR cards of 1.45 million Afghan legal residents that expired on June 30, 2024,” Prime Minister Shehbaz Sharif’s office said in a statement.
The cards, which the UN describes as a “critical” identity document, would now be valid until June 30, 2025.
Islamabad began expelling undocumented foreigners, mostly Afghans, in November last year amid a row over accusations that Afghanistan harbors Pakistani Islamist militants, a charge its ruling Taliban deny.
Pakistan says it is also struggling to host millions of refugees as it grapples with an economic crisis.
Last year, Pakistan announced a huge drive to repatriate foreigners without visas, mostly the roughly 4 million Afghans who crossed the border during 40 years of armed conflict in their home country and after the Taliban seized power in 2021.
More than 500,000 Afghans have returned from Pakistan since the campaign was announced, according to UN figures.
The first phase of the plan targeted those who were not formally registered, though advocates and some of the PoR card holders said that in some cases they were also pressured by local authorities to leave.
Filippo Grandi, the UN High Commissioner for Refugees, earlier this week wrapped up a three-day visit during which he called for the extension of the registration cards and said the international community should find more solutions for refugees and host countries such as Pakistan, a UNHCR statement said.
It said Grandi also appreciated that the repatriation plan had been suspended and sought assurances it would stay on hold.
A spokeswoman for Pakistan’s foreign office denied that the plan was on hold. “It may be noted that no such understanding has been given by Pakistan to the UNHCR, including in recent meetings with the High Commissioner for Refugees,” she said.
“IFRP (Illegal Foreigners Repatriation Plan) remains in place and is being implemented in an orderly and phased manner.”
Pakistan police claim foiling Muharram attack in Karachi by arresting suspected militant
- Muhammad Shoaib, key Pakistani Taliban commander, was involved in multiple cases of murder, attacks on army, say police
- CTD official says Shoaib planned to carry out suicide attack on Muharram procession in Karachi’s Orangi Town area
KARACHI: Police in Pakistan’s southern Sindh province on Wednesday announced it had arrested a highly wanted militant who planned to target a Muharram procession with a suicide blast in Karachi, saying that the attack could have caused “large-scale destruction.”
Muhammad Shoaib, an alleged commander of the Pakistani Taliban or Tehreek-e-Taliban Pakistan (TTP) group, was arrested by the Counter-Terrorism Department (CTD) of Sindh Police on Wednesday.
The Khyber Pakhtunkhwa Police had placed a Rs2 million [$7182] bounty on Shoaib, who was arrested in Karachi’s Ittehad Town area following a shootout with police, a CTD Sindh official said during a news conference.
“The arrested terrorist disclosed that he had to carry out a suicide attack during Muharram-ul-Haram with his accomplices in Orangi Town, Karachi,” deputy inspector-general of CTD, Asif Ejaz Shaikh, told reporters in Karachi.
The attack, Shaikh added, could have posed a “risk of large-scale casualties and large-scale destruction in Karachi.”
He said the alleged TTP commander planned to meet his accomplices and relative Ishaq to plan the attack.
“Ishaq too was involved in serious offenses and was wanted for terrorism,” Shaikh disclosed. “Ishaq was supposed to arrive [in Karachi] and join forces with the suspect to carry out this terrorist plot.”
The official said Shoaib was also implicated in the 2021 kidnapping of 16 coal miners in KP.
“When their relatives refused to pay ransom, the workers were allegedly killed and buried in a mass grave,” Shaikh said. “The initial report of this incident was filed at CTD Kohat.”
He said Shoaib was also wanted in multiple cases of murder, kidnapping for ransom, attacks on the army, clashes with peace committees and bombings.
Shaikh said Shoaib’s son, Muaz, had previously been shot dead in an encounter with security forces.
Muharram marks the beginning of the new year in the Islamic lunar calendar during which Shia Muslims across Pakistan hold gatherings and organize religious processions to pay homage to Imam Hussain, the grandson of Prophet Muhammad (peace be upon him).
Hundreds of thousands take out processions across the country on Ashura, the 10th of Muharram, to mourn Hussain’s martyrdom centuries ago in Karbala, present-day Iraq. Militants in the past have stoked sectarian tensions in the country by attacking religious processions in Muharram.
The government each year adopts heightened security measures to protect Muharram processions from militant attacks.
In 2009, an Ashura procession was targeted in a bomb attack on Karachi’s busy M.A. Jinnah Road. At least 43 people were killed and 60 wounded in the attack that was claimed by the TTP.
In response to a question, Shaikh said Shoaib was part of a large TTP network operating in Karachi, adding that the outfit also has sleeper cells in the port city.
When asked if the TTP was involved in a gun attack in Karachi on Sunday that killed a counterterrorism official, Shaikh said it was highly likely that the banned outfit was involved.
“There is a 90 percent likelihood that the TTP was involved in the killing of Deputy Superintendent of Police Ali Raza,” he said.
Raza, who was an official working in Sindh CTD’s investigation cell, was fatally attacked by unidentified assailants in the city.
Pakistan PM calls for ‘close coordination’ among provinces to ensure peace in Muharram
- Thousands of Shia Muslims across Pakistan conduct religious gatherings and processions in Muharram
- Militants in the past have stoked sectarian tensions by targeting Muharram gatherings and processions
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday called for provinces, security teams and intelligence agencies to establish “close coordination” with each other to maintain peace across Pakistan during Muharram and prevent attacks on religious gatherings and processions.
Muharram marks the beginning of the new year in the Islamic lunar calendar during which Shia Muslims across Pakistan hold gatherings and organize religious processions to pay homage to Imam Hussain, the grandson of Prophet Muhammad (peace be upon him).
Hundreds of thousands take out processions across the country on Ashura, the 10th of Muharram, to mourn Hussain’s martyrdom centuries ago in Karbala, present-day Iraq. Militants in the past have stoked sectarian tensions in the country by attacking religious processions in Muharram.
“Regarding Muharram, the Ministry of Interior, interior secretary, their teams and provinces should be in close coordination with other institutes like NACTA [National Counter Terrorism Authority] for sharing their information and intelligence,” Sharif said while speaking to members of his cabinet during a meeting.
He urged the center to extend help to all provinces, Azad Jammu Kashmir and Gilgit-Baltistan areas on a need basis to ensure foolproof security.
“We should pray to God that this month passes by in a peaceful manner and strengthens national unity,” the premier added.
The Punjab government last week requested the interior ministry to ban social media platforms from Muharram 6-11 across the province citing security concerns.
Pakistan’s government on Tuesday announced a two-day holiday on July 16 and 17 due to Muharram 9 and 10, the date for Ashura.
Nadhira Alharthy becomes first Omani to summit Pakistan’s ‘Killer Mountain’
- Alharthy, 46, was part of 10-member expedition that summited Nanga Parbat mountain on Wednesday
- Her latest achievement makes Alharthy first Omani to summit four peaks higher than 8,000 meters
KHAPLU, GILGIT-BALTISTAN: Oman’s Nadhira Alharthy became the first person from her country to summit the 8,126-meter Nanga Parbat mountain in northern Pakistan on Wednesday, a Nepal-based adventure tour company confirmed.
Gilgit-Baltistan, a sparsely populated northern region administered by Pakistan as an autonomous territory, is home to some of the highest peaks in the world and a major tourist destination. Hundreds of tourists visit the region each year for expeditions on various peaks, paragliding and other sports activities.
Nanga Parbat, also known as “Killer Mountain,” is Pakistan’s second-highest peak and the world’s ninth-highest mountain. Several climbers have died in the past attempting to summit the towering mountain.
“Huge congratulations to our team members and Sherpa who reached the pinnacle of Nanga Parbat on 10 July 2024,” Seven Summit Treks, the Nepalese company that organized the expedition, wrote on its social media platforms. it mentioned Alharthy’s name among the successful climbers.
“Against all odds, the team conquered this majestic peak, fueled by determination and teamwork,” it added.
Alharthy’s latest achievement makes her the first Omani woman to summit four peaks higher than 8,000 meters.
The 46-year-old climber has previously summited Mount Everest (8,849 meters) in 2019, Mount Manaslu (8,156 meters) in 2021, and K2 (8,611 meters) in 2022. She also climbed the 4,478-meter high Matterhorn in 2023 and the 6,812-meter high Ama Dablam mountain in Nepal in 2021.
Thaneswar Guragai, the company’s general manager, told Arab News that nine people summitted Nanga Parbat on Wednesday.
He said that of the nine climbers, three are from Nepal, one each from Oman, Azerbaijan, France, Norway, Ecuador and Greece.
“Professionally she works as a government officer in the Ministry of Education [of Oman]. However, for the last few years she has been continuously climbing peaks,” he disclosed.
According to the Gilgit-Baltistan Tourism Department, more foreign climbers and trekkers have been issued permits to climb Pakistan’s mountains this year compared to 2023.
“This year, more than 2000 climbers and trekkers have been issued permits to climb and trek different peaks of Pakistan,” Sajid Hussain, deputy director for the GB Tourism Department, told Arab News.
He said last year, 650 mountaineers visited Pakistan while this year the government has issued permits to over 800 mountaineers.
“Out of 800 mountaineers, almost 200 climbers will try their luck to conquer K2,” Hussain said. “Women teams are also at the K2 base camp.”
Four foreigners have died in GB in less than two months this year. A Brazilian tourist was killed in a paragliding accident while a Japanese climber died while descending the Spantik mountain, with both deaths taking place this month.
Last month, two Japanese climbers went missing in GB. The body of one of the climbers was found after which authorities presumed the other dead and called off the search to recover him. The two Japanese climbers had also attempted to summit the Spantik mountain in GB’s Nagar district.
