ISLAMABAD: State Bank Governor Jameel Ahmad on Thursday met key international investors in the United States capital, Washington DC, and informed them about “substantial improvement” in Pakistan’s macroeconomic outlook in the last year.
Ahmad is accompanying Finance Minister Muhammad Aurangzeb to IMF and World Bank spring meetings in Washington, where he met investors during multiple events organized by leading global banks and financial firms, including JP Morgan, Citibank and Jefferies.
While in DC, the Pakistan team will also be starting negotiations for a new three-year multi-billion-dollar bailout deal from the IMF.
“Governor SBP informed the participants about the substantial improvement in Pakistan’s macroeconomic outlook achieved over the past year as a result of a prudent monetary policy, backed adequately by fiscal consolidation and beginning of the implementation of key structural reforms,” a statement from the Pakistani economic affairs division said.
Inflation declined sharply in Pakistan, reaching a two-year low of 20.7 percent in March 2024 from a peak of 38 percent in May 2023.
“Deceleration in inflation is broad-based, reflecting the combined impact of monetary tightening, fiscal consolidation, ease in import supplies, improved agriculture output and base effect,” Ahmad told investors.
“More importantly, core inflation declined markedly, reaching 15.7 percent in March, after persistently staying above 20 percent throughout last year.”
He also said the external sector had stabilized, as reflected in a sharp reduction in the current account deficit (CAD) to $1 billion during Jul-Feb FY24 from $3.8 billion in the same period last year.
In addition to stabilization policies, improved agriculture output had contributed to higher food exports, while lowering the import demand of agri commodities like wheat and cotton.
Workers’ remittances had also risen consistently since October 2023 on a year-on-year basis, driven by incentives and regulatory measures to divert inflows toward formal channels.
“These qualitative improvements in the external account have allowed the SBP to more than double its FX reserves from January 2023 ($3.1 billion) to around $8 billion on 12 April 2024 despite the repayment of a $1 billion Eurobond on the same day. At the same time, the SBP’s forward liabilities have also reduced significantly from $5.7billion in January 2023 to $ 3.4billion in February 2024.”
Ahmad also spoke about the improvement in the country’s external debt dynamics, with a reduction in the gross financing requirements due to sizable CAD contraction. Moreover, the maturity profile of external debt had also improved, with the share of relatively costly short-term commercial loans declining while the share of long term concessional financing from multilateral agencies, coupled with support from bilateral partners, which was rising.
“Ahmad also noted a recent pickup in inflows from overseas Pakistanis via Roshan Digital Accounts and also by other foreign investors, on the back of strong performance in achieving the targets and benchmarks under the IMF SBA program,” the statement said.
“Going forward, the government is hopeful of signing a long term IMF program, which will facilitate additional external financing and the adoption of structural reforms to deal with longstanding issues in the economy.”
The governor also highlighted SBP’s efforts to provide a conducive macroeconomic environment for the private sector to invest in the economy.
The SBP’s Strategic Plan 2028 aims to facilitate growth by achieving price and financial stability.
“In this regard, Mr. Ahmad highlighted the widespread adoption of digital technologies to address gaps in access to financial services and to revolutionize the domestic payments system,” the economic affairs division said. “These time-bound reforms are expected to put the economy on the path of sustainable economic growth.”
Central bank chief briefs foreign investors on ‘substantial improvement’ in Pakistan’s macroeconomic outlook
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Central bank chief briefs foreign investors on ‘substantial improvement’ in Pakistan’s macroeconomic outlook
- Ahmad is accompanying Finance Minister Muhammad Aurangzeb to IMF and World Bank spring meetings in Washington
- Meets investors during multiple events organized by leading financial firms, including JP Morgan, Citibank and Jefferies
Pakistan’s drug enforcement agency nets record ‘ice’ haul in major anti-trafficking operation
- The Anti-Narcotics Force seizes 224 kilograms of the substance while it was being transported to Belgium
- The authorities also apprehended three suspects, among them two Afghan nationals, who were trying to escape
ISLAMABAD: Pakistan’s Anti-Narcotics Force (ANF) announced on Thursday it had achieved a “monumental victory” in the ongoing battle against drug trafficking by intercepting the largest consignment of methamphetamine, popularly called “ice,” in the nation’s history.
Methamphetamine, known for its potent and addictive properties, has seen a significant rise in use not just in Pakistan but globally, contributing to a burgeoning health crisis.
The drug’s accessibility and escalating abuse have heightened law enforcement and public health efforts to curtail its spread.
This major seizure highlights the ongoing challenges and the critical need for continued vigilance and international cooperation in combating drug trafficking and its societal impacts.
“A total of 224 kilograms of Methamphetamine (Ice) was seized by the diligent ANF team at the Karachi port,” an official statement announced. “Disguised within five containers labelled as ‘Soapstone’ exports from Afghanistan to Belgium, this illicit substance was artfully concealed within the container’s roof and doors.”
The authorities also apprehended three suspects involved in the smuggling attempt, among them two Afghan nationals.
“The suspects were attempting to flee to Afghanistan via the Torkham border when they were intercepted by ANF Team,” the statement continued.
It added the intercepting the massive methamphetamine consignment by ANF prevented its distribution and potential harm to countless people.
Pakistan’s inflation sees lowest increase in nearly two years at 17.3% in April
- Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38% in May 2023
- Month on month inflation was down 0.4%, showing negative growth for the first time since last year in June
KARACHI: Pakistan’s Consumer Price Index (CPI) for April rose 17.3% from a year earlier, data from the Pakistan Bureau of Statistics showed on Thursday, the lowest reading in nearly two years and below the finance ministry’s projections for the month.
Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38% in May 2023, as it has navigated reforms as part of an International Monetary Fund (IMF) bailout programme.
Month on month inflation was down 0.4%, showing negative growth for the first time since June 2023.
The Finance Ministry in its monthly economic report said it expected inflation to hover between 18.5% and 19.5% in April and ease further in May to 17.5%-18.5%.
Pakistan’s central bank kept its key interest rate unchanged at 22% for the seventh straight policy meeting on Monday, hours before the IMF executive board approved $1.1 billion in funding under a $3 billion standby arrangement signed last year.
The bank’s monetary policy committee said in a statement it was “prudent” to continue with its monetary policy stance at this stage to bring inflation down to the target range.
‘Well aware of our constitutional limits,’ Pakistan’s army chief declares at PAF graduation parade
- General Asim Munir says Article 19 of Pakistan’s constitution sets limits on freedom of expression
- He says a strong air force is essential to prevent Pakistan from being at the mercy of aggressors
ISLAMABAD: Pakistan’s army chief General Asim Munir emphasized the armed forces’ awareness of their constitutional limits and expectations for legal compliance from others while addressing the graduation parade at the Pakistan Air Force (PAF) Academy in Risalpur on Thursday.
The military’s involvement in politics has been a contentious issue in Pakistan, with public criticism intensifying since the ouster of former prime minister Imran Khan in a no-confidence vote in April 2022.
The country’s military has publicly denied intentions to interfere in political affairs more recently, asserting a commitment to uphold democracy and remain apolitical, amid growing public scrutiny over its past involvements in political matters.
“We are well aware of our constitutional limits and expect others to prioritize adherence to the constitution as well,” the army chief was quoted as saying by the military media wing, ISPR, in a statement.
He said in his address to the graduating cadets that Article 19 of the Pakistani constitution set limits on freedom of expression as well.
“Those who openly violate the clear restrictions on freedom of expression set by the constitution cannot point fingers at others,” he asserted.
General Munir noted specific technologies, including artificial intelligence, robotics and quantum computing, were expanding the scope and transforming the use of air power.
However, he warned against an arms race in the region, saying it could disrupt the balance of power in and around South Asia.
The army chief pointed out that a strong air force was essential to prevent the country from being at the mercy of external aggressors.
“The recent war in Gaza is a fresh example of the miseries that wars can bring,” he said. “The indiscriminate killing of elderly, women and children in Gaza is proof that violence is increasing in the world.”
He also criticized India for its policies in the dispute Kashmir region, pointing out it would not be able to suppress the “voices of freedom” and promising continued Pakistani support on moral, political and diplomatic levels for those resisting New Delhi’s rule.
Pakistan anticipates more high-level Saudi business delegations amid stronger bilateral ties
- Foreign office says the two countries are involved in robust dialogue that has gained significant momentum
- It categorically denies reports that Pakistan is providing military bases to any foreign country against anyone
ISLAMABAD: Pakistan anticipates continued visits by high-level business delegations from Saudi Arabia in the upcoming weeks to further explore investment opportunities facilitated under the Special Investment Facilitation Council (SIFC), the foreign office announced on Thursday.
The statement came just days after Prime Minister Shahbaz Sharif concluded his visit to Riyadh, where he addressed the two-day World Economic Forum conference that began on April 28.
During his visit, Sharif met with Crown Prince Mohammed bin Salman and several Saudi ministers to strengthen bilateral relations and economic partnerships between the two nations.
Prior to his visit to the kingdom, Saudi Foreign Minister Faisal bin Farhan was in Islamabad with a large delegation, saying the Pakistani administration’s resolve to strengthen the economy would yield “significant benefits.”
“Saudi investors have been coming to Pakistan in recent months, and engaged with the SIFC in terms of exploring opportunities for Saudi investments in Pakistan, and this is an ongoing process, and we expect similar high-level business delegations to undertake visits to Pakistan in the coming days and weeks as well,” foreign office spokesperson Mumtaz Zahra Baloch told reporters in her weekly media briefing.
She added that both countries were involved in robust and mutually beneficial dialogue that had gained significant momentum in recent months.
“Pakistan and Saudi Arabia are engaged in consultations with each other in terms of increased Saudi investments in Pakistan, including in the energy domain,” she added.
Asked about reports of Pakistan providing military bases to the United States, Baloch called them baseless rumors.
“Pakistani has no plan to provide any bases to a foreign country against any other country,” she continued.
Speaking about the Organization of Islamic Cooperation’s summit in Gambia, the spokesperson said the country’s deputy prime minister Ishaq Dar would highlight the ongoing genocide in Gaza, the right to self-determination of the people of Jammu and Kashmir, the imperatives of solidarity and unity of the Muslim Ummah, rising Islamophobia, issues of climate change, terrorism, and other contemporary global challenges.
She said Pakistan strongly condemned the escalating violations of human rights by Israel and increasing number of illegal Israeli settlements in the West Bank.
“Israel’s actions constitute a breach of international law, including humanitarian laws and other pertinent international laws, and these acts also undermine any prospects of a two-state solution,” she added.
Pakistan vows ‘foolproof security’ for Chinese nationals after militant attacks
- Interior minister says government implementing strict security protocols for safe movement of Chinese workers
- A suicide bomber targeted a convoy of Chinese nationals near Dasu earlier this year, killing five of them
ISLAMABAD: Pakistan’s interior minister Mohsin Naqvi said on Thursday the government would ensure “foolproof security” for Chinese nationals following militant attacks targeting them in the country where most of them have been working on infrastructure development projects.
Naqvi made this assurance during his visit to the Chinese consulate in Karachi, where he discussed the issue in his conversation with a top diplomat Yang Yuandong, who welcomed the minister to the facility.
Five Chinese nationals were killed earlier this year in March after a suicide bomber rammed an explosives-laden vehicle into their convoy which was on its way from Islamabad to the site of a key hydroelectric dam in Dasu.
Prior to that, Chinese workers also came under attack by Baloch separatists near the Gwadar port. The incident led to the death of eight militants.
“It is our duty to ensure foolproof security for Chinese citizens,” Naqvi said during the during his visit to the consulate. “Strict implementation of standard operating procedures for safe movement of Chinese citizens is being ensured.”
Pakistan took action against a number of senior officials after the Dasu attack, saying they showed negligence and had failed to follow the security protocol.
He said the “enemy” wanted to undermine the China-Pakistan friendship but would not succeed.
According to a statement circulated by the ministry, the Chinese diplomat expressed satisfaction with the overall security plan for the protection of the Chinese workers.
