Pakistani currency, stocks stabilize after IMF deal and financing assurances from friendly states

A stockbroker monitors the latest share prices during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on April 4, 2022. (AFP/File)
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Updated 20 August 2022
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Pakistani currency, stocks stabilize after IMF deal and financing assurances from friendly states

  • Pakistan’s weekly inflation recorded an increase of 3.35 percent on Friday, mainly due to hike in food item prices
  • Analysts say taming inflation, shoring up forex reserves will be key challenges for incoming central bank governor

KARACHI: Pakistan’s currency and stocks have stabilized after months of poor performance as the country expects to receive $1.17 billion from the International Monetary Fund (IMF) and $4 billion inflows from Saudi Arabia and the United Arab Emirates (UAE), traders and analysts said on Friday, hoping for further consolidation in the coming days. 

The Pakistani currency appreciated by 0.14 percent as the US dollar closed at Rs214.65 in the interbank market on Friday. The local currency has appreciated by 11.7 percent since July 28, when it had hit an all-time low of Rs239.94 against the greenback. 

“The development at the IMF front and the arrangement of financing from friendly countries to fill financing gap of $4 billion played a key role in rupee's stabilization during the recent trading sessions,” Samiullah Tariq, research director at the Pakistan-Kuwait Investment Company, told Arab News.   

After a staff-level agreement in July, the IMF has scheduled its executive board meeting for August 29 for the combined seventh and eight reviews of the $6 billion Extended Fund Facility (EFF) Pakistan availed in 2019. The South Asian country is expecting $1.17 billion from the Fund after its board's approval that would unleash further funding from multilateral donors. 

Pakistan’s finance minister, Miftah Ismail, on Thursday reiterated that all actions had been taken to meet the IMF conditions for the revival of $6 billion loan program, which was halted in March this year. 

The finance minister confirmed that $4 billion for bridging the budget financing gap had been arranged through Saudi Arabia and the UAE, ahead of the IMF meeting.   

In another move ahead of the IMF board meeting, the government on Friday appointed Jameel Ahmad as the central bank’s new governor for next five years.  

The appointment on the post, which had been vacant since the retirement of Reza Baqir in early May, comes at a time when the South Asian nation is battling historic inflation. 

Analysts say the key challenges the incoming central bank governor would be facing include taming high inflation and shoring up forex reserves.   

“The top most challenge the governor of central bank would face is to control inflation as in July 2022 it was recorded at 24.9 percent and it is expected that it would remain high in August,” Tahir Abbas, research head at the Karachi-based Arif Habib Limited brokerage firm, told Arab News. 

“The second top most challenge would be to build up country’s forex reserves that are at very low level [barely enough] to cater imports of less than two months. The third challenge would be setting a monetary policy that enables to counter inflation by avoiding recession,” he said. 

“The fourth challenge would be to review the schemes announced by the central bank, including the Roshan Digital Accounts to reverse the withdrawal trend with attractive rate offerings.”          

Pakistan’s weekly inflation rose by 3.35 percent to reach 42.31 percent on a yearly basis, mainly due to hike in food prices, according to data released by the country's statistics bureau on Friday. 

Amid higher inflationary trend, the central bank is scheduled to announce on August 22 its monetary policy for the next two months. 

According to a survey conducted by Topline Securities brokerage house, 56 percent of the participants expect no change in the policy rate, which stands at 15 percent. Around 43 percent participants anticipate an increase, whereas 1 percent expect a decrease in policy rate. 

Pakistan’s stock market also stabilized during the week though it closed bearish with 210 points down on Friday, mainly due to profit-taking and investors remaining on the sidelines ahead of the monetary policy announcement on Monday. 

“Continuing its momentum, KSE-100 Index gained 0.96 percent on WoW (week-on-week) basis, which can be attributed to the news that the IMF has scheduled its board meeting for August 29 after getting confirmation from bilateral friends such as Saudi Arabia, the UAE, and Qatar for bridging the financing gap of $4 billion,” the Topline Securities report said. 

Pakistan's stock index increased by 6.74 percent over the course of first two weeks of August and recorded a gain of 376 points during the week ending on Friday. 


Pakistani writers say Abu Dhabi book fair opportunity to promote country’s talent, rich culture

Updated 52 min 30 sec ago
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Pakistani writers say Abu Dhabi book fair opportunity to promote country’s talent, rich culture

  • Abu Dhabi International Book Fair kicked off on Apr. 29 and is scheduled to continue till May 5
  • In a first, Pakistani writers will take part in the fair to discuss country’s literature and fiction works 

ISLAMABAD: Pakistani writers taking part in the Abu Dhabi International Book Fair on Wednesday hailed the platform as a crucial opportunity for the South Asian country to promote its culture and dispel negative stereotypes associated with the nation. 

The international fair kicked off on Apr. 9 and is scheduled to continue till May 5 in Abu Dhabi. It is an annual event that brings different writers together to promote reading, diverse cultures and knowledge locally, regionally, and globally. Organizers of the fair say their aim is also to promote cultural exchange and dialogue between several nations.

It also brings together leaders from the publishing and creative industries every year, providing promising opportunities for those involved in this sector to form new partnerships, learn about the latest trends and developments, and discuss its fundamental priorities.

For the first time ever, Pakistani writers are taking part in the international festival in two different sessions slated to be held on May 1 and May 3. 

“Pakistan’s maiden participation in this event is crucial not only for the diaspora but also for familiarizing the Gulf and the world with Pakistan’s cultural richness, countering stereotypes, and dispelling reductionist descriptions,” Dr. Osama Siddique, a Pakistani novelist, told Arab News from Abu Dhabi.

Pakistani envoy to UAE, Faisal Niaz Tirmizi (left), visits the Pakistani stall at the Abu Dhabi International Book Fair in Abu Dhabi, UAE on April 30, 2024. (Pakistan mission in UAE )

Siddique is part of a panel that will discuss the state of Pakistan’s literary on May 3. He said Pakistani literature has struggled on the global stage due to a lack of support from the state, ineffective institutions, expensive printing materials and a lack of publishing industry development.

“Writers need to be proactive, and publishers must elevate their standards, and events like this provide a perfect platform for this,” he added.

He said Pakistan often falls short of showcasing its rich civilization, culture, and literature, despite the country’s profound historical and linguistic heritage spanning over 9,000 years.

He said Pakistani writers, local entrepreneurs and the Pakistani embassy in UAE collaborated to ensure Pakistan’s participation in the annual fair for the first time this year. 

“It’s a start, albeit insufficient,” he said. 

Pakistani writers participate at the Abu Dhabi International Book Fair in Abu Dhabi, UAE on May 01, 2024. (Dr. Osama Siddique)

“It is vital to capitalize on such opportunities, considering the significant cultural investments made by the Gulf states in education, literature, and the arts,” he noted.

Tahira Iqbal, a Pakistani novelist who writes in Urdu, said participating in such events is crucial as it allows one to connect with writers from diverse backgrounds, languages, and regions. 

Iqbal will also attend the May 3 session with Siddique as a panelist. 

“Although Pakistani fiction is of high quality, it has not garnered significant recognition on the global stage, so participating in such events can address this issue,” Iqbal told Arab News. 

Shazia Ali Khan, a UAE-based Urdu film screenplay writer, said such events provided an opportunity for writers to challenge preconceived notions about their country, its culture, and the role of women within it.

“So it is almost like an ambassadorial or diplomatic mission, where just us being there and speaking our minds may or may not remove any notions in people’s minds about where we come from, what our culture is, and how empowered the women are,” Khan told Arab News.

Khan stressed that Pakistani writers should ensure their literary works are translated so that they reach a wider audience, noting how most literary works originating from Pakistan were in Urdu language. 

“In the absence of good translations and the proper sort of publishing houses backing all of this up to get to the end user is a bit difficult,” Khan pointed out. 

Faisal Niaz Tirmizi, Pakistan’s ambassador to the UAE, said the country’s participation in the event is a testament to the rich literary heritage and vibrant intellectual discourse that it possesses.

“This representation not only showcases the diversity and creativity of Pakistani literature but also fosters meaningful cultural exchanges on a global platform,” he told Arab News.

By engaging in such events, Tirmizi said Pakistan played a crucial role in promoting cross-cultural understanding, fostering dialogue, and building bridges of friendship and cooperation between nations.


Students in Lahore protest America’s ‘hypocritical’ support for Israel’s war in Gaza

Updated 01 May 2024
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Students in Lahore protest America’s ‘hypocritical’ support for Israel’s war in Gaza

  • Students say United States raises rights concerns everywhere without criticizing Israel for its occupation
  • They block the road leading to the American consulate, make fiery speeches and chant slogans for hours

LAHORE: A student organization blocked the road leading to the United States Consulate in Lahore on Tuesday, protesting the American support for Israel’s war in Gaza by making fiery speeches for several hours and chanting pro-Palestine slogans.
The Progressive Students’ Collective (PSC) is a student-led movement in Pakistan which has staged protests in solidarity with the Palestinian cause, including disrupting a speech by the German ambassador to the country last week.
Both students and civil society activists highlighted the “glaring hypocrisy” of western nations like the United States and Germany, saying they raised human rights concerns in the developing states while staying silent about the plight of Palestinians under Israeli occupation.
A media statement issued by the PSC advocated for Boycott, Divestment and Sanctions (BDS) against Israel and its powerful state and corporate funders while highlighting the Palestinian rights to resist, right and self-determination.
There were hundreds of Palestinian flags and people wearing keffiyeh, chanting slogans in favor of intifada and revolution.
“When looking at atrocities being committed across the globe, [we have to ask] who is enabling them,” 23-year-old Ali Raza, who delivered the opening address at the protest, told Arab News. “It is on American shoulders that Israelis put their weapons before firing them at Palestinians.”
He went on to describe Israel as a “proxy state,” policing the Middle East for “western imperial powers.”
Raza, the former PSC vice president, said the students chose the US consulate as the venue for protest because since it was the largest state funder of Israeli occupation.
Earlier, the told the gathering the US monitored freedom of expression across the world, but police officers retrain American university professors by force who speak up for Palestinian rights, adding that was what hypocrisy looked like.
At the Asma Jahangir Conference in Lahore last Saturday, the current PSC spokesperson, Ali Abdullah Khan, protested against the German ambassador’s speech and disrupted him while he was discussing civil rights in South Asia.
“We protested against him, protested against his invitation [to the conference],” he told Arab News.
Khan said the students’ collective wanted to make Pakistan an important part of the global student-led BDS movement against Israel.
He pointed out the PSC wanted to show solidarity with the students who were being expelled from Columbia University in New York for protesting against the Israeli occupation.
“We support the Palestinian right to resist, we support the Palestinian right to return, we support the Palestinian right to self-determination,” Khan said in his speech to the demonstration. “We want to talk about putting an end to settler colonialism, putting an end to imperialism and we want to talk about a free and independent Palestinian state.”


Pakistan’s army chief meets top UK generals at regional stabilization conference

Updated 01 May 2024
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Pakistan’s army chief meets top UK generals at regional stabilization conference

  • A 30-member UK delegation is visiting Pakistan until May 3 for the flagship UK-Pakistan security dialogue
  • The scope of the discussion this year has been expanded from bilateral to regional issues amid volatility

ISLAMABAD: Pakistan’s army chief General Asim Munir held a meeting with the United Kingdom’s Chief of the General Staff (CGS) General Patrick Sanders on the sidelines of the opening session of the 6th Pakistan-UK Regional Stabilization Conference at the National Defense University on Wednesday.
According to the military’s media wing, ISPR, the conference is a flagship defense and security dialogue alternatively hosted by the two states, bringing together experts from diverse fields including diplomats, defense officials, scholars and civil society representatives.

Currently, a 30-member UK delegation is visiting Pakistan in connection with the conference and will stay in the country until May 3.
“This year, the scope of discussion has been expanded from bilateral to regional issues and defense officials of both countries are also participating in the conference,” the ISPR said.
It mentioned the meeting of Pakistan’s chief of army staff (COAS) with General Sanders and the British CGS-designate General Roland Walker in which measures related to further enhancing bilateral defense ties came under discussion.
“The COAS thanked General Patrick Sanders for his services in enhancing bilateral military ties and felicitated General Roland Walker on his nomination as the next CGS of the UK Army,” it added.


Pakistan’s deputy PM arrives in Gambia to discuss Gaza, Kashmir at OIC summit

Updated 01 May 2024
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Pakistan’s deputy PM arrives in Gambia to discuss Gaza, Kashmir at OIC summit

  • Ishaq Dar plans to highlight the need to find collective solutions to challenges confronting the Muslim world
  • Dar, who also holds external affairs portfolio, will first attend foreign ministers’ meeting before the weekend summit

ISLAMABAD: Pakistan’s newly appointed Deputy Prime Minister Ishaq Dar arrived in Gambia on Wednesday to represent his country at the 15th summit of the Organization of Islamic Cooperation (OIC) where he will discuss the situation in Gaza and present Pakistan’s case on Kashmir.
The OIC summits are convened to discuss and address major issues affecting the Muslim world, ranging from political and economic challenges to social and cultural matters.
These summits aim to promote Muslim solidarity in social and political affairs, coordinate efforts to safeguard the interests and well-being of Muslims and work toward resolving conflicts and issues in the Muslim world.
Dar, who also holds the portfolio of external affairs, will first participate in the two-day OIC Council of Foreign Ministers’ meeting beginning Thursday before the summit over the weekend.
“At the Summit, the Deputy Prime Minister and Foreign Minister will speak about Pakistan’s perspective on the ongoing genocide in Gaza, the right to self-determination of the people of Jammu & Kashmir, imperatives of solidarity and unity of the Ummah, rising Islamophobia, issues of climate change, terrorism and other contemporary global challenges,” the foreign office said in a statement.
“He will underline the need to find collective solutions to challenges confronting the Muslim Ummah,” it added.
The Pakistani foreign office noted the summit was being convened at a critical time for the Muslim world as the war on the people of Gaza was still continuing.
It described it as an important occasion for the OIC leaders to deliberate upon the dire situation in Gaza and project a strong, collective and unified stance on the Palestinian question.
“On the sidelines, the Deputy Prime Minister and Foreign Minister will hold bilateral meetings with leaders and Foreign Ministers participating in the Summit,” it added.


Innovative ambulance service in Pakistani capital offers care for mental health patients

Updated 01 May 2024
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Innovative ambulance service in Pakistani capital offers care for mental health patients

  • According to World Health Organization, 24 million people in the country are affected by mental health issues
  • Embrace ambulance service has been exclusively focusing on mental health patients since its initiation in 2021

ISLAMABAD: Located just 30 minutes from Islamabad in the picturesque village of Pind Begwal, a unique ambulance center focuses exclusively on mental health patients in and around Pakistan’s federal capital.
The service, named Embrace, was initiated as a pilot project by public health professional Abdullah bin Abbas during the COVID-19 pandemic before it was officially launched last month.
The center addresses Pakistan’s significant mental health challenges, where about 24 million people are affected according to 2023 World Health Organization estimates.
It provides specialized transportation for patients, many of whom display behaviors that are challenging for families to manage, such as isolation or suicidal tendencies.
Operating three ambulances, the service focuses on discreetly moving patients to receive appropriate care, thereby helping to mitigate the stigma associated with mental health issues in the country.
“Since it’s official launch, we have received an amazing response from the public and we have handled 60 to 70 cases just within the past month and this volume is increasing regularly,” Abbas, the center’s chief executive officer, told Arab News on Tuesday.
The concept of mental health ambulances was first tested in Sweden to assist those experiencing psychological distress. This innovative approach allowed for basic help and services to be delivered directly to individuals’ doorsteps, providing timely treatment and transportation to rehabilitation facilities when needed.
Abbas noted that even in major Pakistani cities, the mental health care infrastructure was inadequate. He pointed out this also prompted him to launch the ambulance service after securing initial funding from Columbia University.
“There are a lot of rehab centers and clinics that are being operated in some very unethical environments,” he continued. “So, what we wanted to do was provide a service to the general public which is accessible, affordable and operated in a professional and ethical manner.”
He noted that Embrace had established standards in line with international protocols, under the guidance of an oversight committee that included psychiatrists and psychologists.
He also pointed out that the transport vehicles were designed to be discreet, without any markings to indicate they were serving mental health patients.
“We have a total staff of 15 people that includes both men and women, and they have been extensively trained in psychological first aid, compassionate communication, and how to handle psychiatric patients,” he said, adding that the Embrace staff had interned at various psychiatric clinics and learned how to respond to emergencies.
To make the venture financially viable, the ambulance facility charges for its services based on the patient’s financial condition while keeping it free for deserving patients.
Zainab Nosheen, a first responder nurse at the center, said whenever a call for the ambulance service comes in, the team investigates whether the person needs to be shifted to a health care facility.
“If there is a female patient, then female staff go and help the patient shift to the desired hospital or clinic,” she said, adding the first step was a conversation with the family about the patient’s condition.
“Then, our first attempt is to make the patient agree to go to the doctor with us,” she added. “For that, we have different strategies which vary from patient to patient. At times, our communication takes 30 to 40 minutes to convince the patient to come with us.”
Arshad Mahmood, another first responder, said he had transported 25 patients using the Embrace ambulance service in the last two years, noting that some patients exhibited violent and threatening behavior.
“To deal with such situations, we have also taken self-defense training,” he told Arab News.
“Once we shift the patient into the ambulance, then the attendant decides which hospital to take them to for treatment, and we act accordingly,” he added.