Food, energy imports swell Pakistan’s trade deficit to record $39.3 billion

People buy grocery items at a store in Peshawar, Pakistan, on April 5, 2021. (AFP/File)
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Updated 07 May 2022
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Food, energy imports swell Pakistan’s trade deficit to record $39.3 billion

  • Pakistan's imports surged by 46.4 percent to $65.5 billion during the 10 months of the current fiscal year
  • High volume of imports likely to continue to exert pressure on the rupee in the absence of substantial foreign inflows

KARACHI: Pakistan’s trade deficit has soared to a record $39.3 during the current fiscal year, mainly due to costly imports of energy and food products.

The South Asian nation’s trade deficit during the July 2021-April 2022 period jumped by 64.8 percent on a year-on-year (YoY) basis, according to Pakistan Bureau of Statistics (PBS) data released on Friday. It was $23.8 billion during the same period last year.

Pakistan’s imports surged by 46.4 percent to $65.5 billion during the 10 months of the current fiscal year, while exports increased by 25.5 percent to $26.2 billion.

“This is an all-time high trade deficit in the 10 months of the (current) fiscal year, which is backed by imports of energy and food products at higher prices from the global market,” Samiullah Tariq, research director at the Pakistan Kuwait Investment Company, told Arab News on Saturday.

“The inflated trade deficit is because Pakistan paid high prices for import of energy and food products including crude oil, coal, palm oil and other energy products. It also paid around $2 billion for the import of COVID-19 vaccines,” Tariq said, adding that the trade deficit is expected to remain high during May as well.  

Pakistan’s imports of petroleum products posted 96 percent growth during the first nine months of the current fiscal year (July 2021-March 2022) to reach $14.8 billion, followed by $11 billion worth of agricultural and chemical goods, $8.6 billion worth of machinery, and $7 billion worth of food products. The PBS has yet to release comprehensive details of external trade in April 2022.

The high volume of imports is likely to continue to exert pressure on the national currency in the absence of any substantial foreign inflows amid negotiations with the International Monetary Fund (IMF).    

“High demand of dollar for import payments would further dent country’s foreign exchange reserves position, as the reserves are already diminishing,“ Abdul Azeem, head of research at Spectrum Securities, told Arab News.  

“At present, the IMF is very important for us to tame the increasing balance of payment situation because we don’t have any avenue in sight for now from where we could attract foreign inflows quickly.”

To unlock foreign inflows, Pakistan will have to complete negotiations with the IMF for the early release of its next tranche of the $6 billion Extended Fund Facility (EFF) that was secured back in 2019 to stave off a balance of payment crisis.

Talks resumed last month and Pakistan’s new government has already requested the global lender to boost the loan size to $8 billion. 

An IMF delegation is expected to visit Pakistan in May.


Pakistan considers Chinese nationals’ security its ‘core responsibility,’ says interior minister

Updated 5 min 31 sec ago
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Pakistan considers Chinese nationals’ security its ‘core responsibility,’ says interior minister

  • Pakistan’s Interior Minister Mohsin Naqvi meets Chinese Consul General Zhao Shiren in Islamabad
  • A suicide attack in northwestern Pakistan last month killed five Chinese engineers and a Pakistani 

ISLAMABAD: Interior Minister Mohsin Naqvi this week assured China’s consul general that the security of Chinese nationals in the South Asian country is Pakistan’s “core responsibility,” state-run Associated Press of Pakistan (APP) said, as Islamabad looks to bolster security of foreign nationals amid a surge in attacks. 

Pakistan says it has taken steps to enhance Chinese nationals’ security in the country after a suicide bomber last month attacked a convoy of Chinese engineers working on a hydropower project in the northwestern town of Dasu. Five Chinese engineers and their Pakistani driver were killed in the attack. 

The attack was the third major one in a little over a week on China’s interests in the South Asian nation, where Beijing has invested over $65 billion in energy, infrastructure and other projects as part of its wider Belt and Road initiative.

“Chinese nationals’ safety is our core responsibility, instructions have been issued to the concerned agencies to ensure the safety of Chinese citizens,” Naqvi told Chinese Consul General Zhao Shiren during a meeting in Islamabad on Saturday. 

“The minister informed about the measures taken about the security of Chinese citizens, adding that it is our national responsibility.”

The minister assured Shiren that Pakistani authorities would not allow conspiracies to harm Pakistan’s friendship with China. 

Meanwhile, the Chinese envoy said the two countries were all-weather friends. 

Chinese interests in Pakistan’s southwestern Balochistan province have also been under attack primarily by the militants, who seek to push Beijing out of the mineral-rich territory.

Pakistan is home to an insurgency launched by ethnic Baloch separatists who seek secession from the central government in the country, blaming it for the inequitable division of natural resources in the southwestern Balochistan province. The government denies this. 


Pakistan to conduct week-long polio vaccination drive in Sindh, KP from Apr. 29

Updated 28 April 2024
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Pakistan to conduct week-long polio vaccination drive in Sindh, KP from Apr. 29

  • Campaign to begin in 25 districts of Sindh, 13 districts of Khyber Pakhtunkhwa, says state media 
  • Eight million children in Sindh, 2.8 million in Khyber Pakhtunkhwa to be vaccinated during campaign

ISLAMABAD: The Pakistani government will conduct a week-long polio immunization program in the country’s northwestern Khyber Pakhtunkhwa and southern Sindh provinces from Apr. 29, the state-run Radio Pakistan reported on Sunday. 

Pakistan and Afghanistan are the only two countries in the world where the poliovirus, which causes paralysis and can be a life-threatening disease, is endemic.

“A week-long National Immunization Campaign will begin in twenty-five districts of Sindh and thirteen districts of Khyber Pakhtunkhwa from tomorrow,” Radio Pakistan said in a report. 

Chief Minister Sindh Syed Murad Ali Shah chaired a meeting of the Provincial Task Force for Eradication of Polio in Karachi on Saturday. Shah directed all district administrations to cooperate with the polio teams and make the drive successful, the report said. 

“The meeting was informed that around eight million children up to the age of five years would be administered anti-polio vaccines during the campaign,” the report said. 

Meanwhile, over 2.8 million children will be administered anti-polio drops during the drive, the Khyber Pakhtunkhwa Emergency Operation Center said. 

“Twenty-one thousand teams have been constituted for this purpose,” the report added. 

Pakistan’s efforts to contain polio have often been met with opposition, especially in the country’s northwestern KP province, where militants have carried out attacks against vaccinators and the security teams guarding them. 

Many believe in the conspiracy theory that polio vaccines are part of a plot by Western outsiders to sterilize Pakistan’s population.

Pakistani masses’ doubts regarding polio campaigns were exacerbated in 2011 when the US Central Intelligence Agency set up a fake hepatitis vaccination program to gather intelligence on former Al-Qaeda chief Osama bin Laden. 


Six-day ‘Study in Dubai’ fair highlights UAE’s growing appeal to Pakistani students

Updated 2 min 39 sec ago
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Six-day ‘Study in Dubai’ fair highlights UAE’s growing appeal to Pakistani students

  • Foreign student enrollment has increased in Dubai since the launch of its education policy over six years ago
  • Educational professionals say Dubai is competing with traditional destinations like the US, UK and Australia

ISLAMABAD: The United Arab Emirates (UAE) has gained traction as a major higher education destination for Pakistani students, university representatives and local admissions professionals noted this week, as the six-day “Study in Dubai” fair concluded in Lahore on Saturday after touring various cities.
Dubai has seen a significant increase in foreign student enrollments since the launch of the UAE National Strategy for Higher Education 2030 more than six years ago. UAE authorities reported this month international enrollments have risen by 25 percent since the 2022-23 academic year, including a seven percent increase among Pakistani students.
Education professionals believe Dubai is increasingly competing with traditional education destinations such as the United States, United Kingdom and Australia.
“What we have observed is that Pakistani students have started moving toward the Emirates,” Muhammad Shoaib told Arab News on Tuesday when the education fair was held in Rawalpindi.
“This is particularly because there have been some policy changes in the mainstream destinations, like Canada, Australia and the UK,” he continued. “Furthermore, we have seen that many reputable universities from the US, UK and Australia have started opening their campuses in Dubai.”


Dubai is currently home to 45 private universities offering over 650 programs, with degrees in business, engineering, information technology and media being the most sought-after among students.
Several top-ranking institutions of learning, including New York University, University of Birmingham, and Australia’s Curtin University, have opened their campuses there in recent years.
Wali-Ur-Rehman, the country manager for Curtin University’s Dubai campus in Pakistan, said the growth in international enrollment was due to increased postgraduate funding and greater job opportunities for those pursuing higher education in Dubai.
“We have seen a massive growth, from 2023 to 2024, of 40 percent [in terms of student applications] in the [Dubai] market, coming from Pakistan especially,” he said.
Daniyal Ahmed, a 19-year-old aspiring candidate for study in Dubai, described the UAE as an “ideal option” for him due to its proximity to Pakistan.
“Dubai has well-known universities now, like New York University and Khalifa University, which are performing quite well,” he said.

In this photograph, taken on April 23, 2024, Pakistani education consultant speaks to aspiring candidate for higher education in abroad during an event with the title “Study in Dubai” in Rawalpindi. (AN Photo)


Asked about the traditional destinations preferred by students pursuing higher education, he said Pakistanis were beginning to face difficulties in securing visas to go to European universities.
Ahmed also mentioned Dubai’s education strategy, saying it included an expanded professional experience initiative, providing a variety of career training programs to students, such as on-campus work, job shadowing, joint ventures and vocational training.


Pakistan’s PM Sharif to kick off World Economic Forum engagements in Riyadh today 

Updated 28 April 2024
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Pakistan’s PM Sharif to kick off World Economic Forum engagements in Riyadh today 

  • PM Shehbaz Sharif is in Riyadh to attend two-day World Economic Forum meeting on global growth and energy
  • Sharif to meet Saudi leadership, world leaders and heads of international organizations during conference

ISLAMABAD: Prime Minister Shehbaz Sharif and his delegation will kick off their World Economic Forum engagements in Riyadh today, Sunday, as they gear up to present Pakistan’s priorities on key issues such as global health, energy and economic growth, his office said. 

Sharif arrived in Riyadh on Saturday to attend a two-day WEF meeting on global collaboration, growth and energy, which will be held in the Saudi capital from April 28-29.

The prime minister was extended an invitation to attend the meeting by Crown Prince Mohammed bin Salman and Professor Klaus Schwab, the WEF executive chairman.

“PM Shehbaz Sharif and his delegation will present Pakistan’s priorities in global health, fintech, climate change, inclusive energy and rejuvenating growth,” the Prime Minister’s Office (PMO) said in a statement on social media platform X. 

It added Sharif would meet the Saudi leadership, world leaders, heads of international organizations and prominent figures during his stay in the country. 

“Look forward to important discussions on pressing challenges of our times,” the Pakistani prime minister posted from his X account separately on Sunday. 

Prior to Sharif’s departure, the PM Office said he would be accompanied by Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb. 

It said Sharif’s participation in the forum will afford Pakistan an opportunity to highlight its priorities in global health architecture, inclusive growth, revitalizing regional collaboration, and the need for striking a balance between promoting growth and energy consumption.

Sharif met Adviser at the Royal Court of Saudi Arabia and General Secretary of Saudi-Pakistan Supreme Coordination Council Mohammed bin Mazyad Al-Tuwaijri on Saturday to discuss economic cooperation between the two countries. 

The two sides reviewed the progress on the Saudi investment in Pakistan, which came under discussion during the visit of the Saudi Foreign Minister Prince Faisal bin Farhan recently to Pakistan.
 
“Al-Tuwaijri and his delegation expressed deep interest in the Saudi investment by the Saudi government and companies in Pakistan,” the state-run APP said.

The prime minister will also attend the 15th session of the Islamic Summit Conference organized by the Organization of Islamic Cooperation (OIC) on May 4-5 in the Gambian capital of Banjul to discuss a variety of regional and global issues, including Palestine, Islamophobia, climate change and the status of minorities, the Pakistani state-run APP news agency reported.

The session will be held under the slogan “Enhancing Unity and Solidarity through Dialogue for Sustainable Development,” according to a press release issued by the OIC General Secretariat.

The Islamic Summit is a principal organ of the OIC focused on the formulation, development, and implementation of decisions made by 57 member states. It is attended by concerned heads of state such as prime ministers, presidents, emirs and other equivalent heads.


Security forces kill one militant, injure another in Pakistan’s southwestern Balochistan

Updated 27 April 2024
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Security forces kill one militant, injure another in Pakistan’s southwestern Balochistan

  • The operation was carried out while militants were trying to stop passenger vehicles in Harnai district
  • Baloch militants killed nine migrant laborers from Punjab in March after stopping a bus in Noshki

ISLAMABAD: Security forces in Pakistan killed one militant and injured another in the country’s southwestern Balochistan province, said the military’s media wing, ISPR, on Saturday, while they were trying to stop passenger vehicles in Harnai district.

Earlier this month, armed assailants intercepted a bus traveling from Quetta to Taftan near the city of Noshki, singling out nine passengers, who were later identified as migrant laborers from Punjab province, and shot them.

Balochistan’s Harnai district has also witnessed militant violence, with an improvised explosive device killing one employee of Mari Petroleum and injuring 14 others in March 30.

“On 27 April 24, a fire exchange took place between security forces and terrorists in Harnai District of Balochistan,” the ISPR said. “The terrorists tried to stop passenger vehicles plying on Sanjavi Road, Harnai. Security Forces reacted immediately and effectively engaged the terrorists.”

The statement mentioned that one militant was killed and another injured during the fire exchange.

“The timely response by the security forces thwarted nefarious intent of the terrorists, saving innocent lives,” the statement added. “Sanitization operation is being carried out to eliminate any terrorists found in the area.”

Balochistan has long been the scene of a low-level insurgency by separatist groups who accuse the state of denying the people of the province of their share in its vast mineral wealth.

The government has frequently denied the allegation, saying it is carrying out a number of development projects for the prosperity of Baloch nationals.