Pakistan’s currency to weaken further, exacerbate inflationary pressure – Fitch Ratings

A foreign currency dealer counts US dollars at a shop in Karachi, Pakistan, on May 19, 2022. (AFP)
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Updated 31 January 2023
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Pakistan’s currency to weaken further, exacerbate inflationary pressure – Fitch Ratings

  • Pakistan’s rupee plummeted to 24-year low last week after markets removed cap on exchange rate
  • Fitch says rupee devaluation ‘positive’ for long-term outlook, helping unlock future IMF disbursements

ISLAMABAD: An international credit rating agency on Tuesday forecast that Pakistan’s national currency would depreciate further, exacerbating the imported inflationary pressure across the country in the days to come.

In its bid to revive a stalled $7 billion International Monetary Fund (IMF) loan program, Pakistan agreed to remove artificial controls from its exchange market. The rupee plummeted to a record 24-year low last week after foreign exchange companies removed the cap on the exchange rate. 

The removal of the currency cap has been one of the principal demands of the IMF. Pakistan, with a staggering $3.6 billion in reserves barely enough to cover three weeks of imports, is actively seeking an IMF bailout program to avoid a balance-of-payments crisis. 

In its latest forecast for Pakistan, Fitch Ratings said its earlier forecast of the dollar rising to Rs248 is “now looking out of date.”

“We believe that the rupee’s weakness still has further to run, particularly with Pakistan’s balance of payments position likely to remain weak for several more months,” Fitch said. 

The rating agency said currently there is “a considerable amount of uncertainty” at this juncture, adding that it is difficult to gauge the extent to which the latest rupee devaluation has caused investor confidence to dip. 

It said a weakening rupee would also have broader economic implications in the near future. “In the near term, it could exacerbate imported inflationary pressure, and may eventually result in steeper policy rate hikes from the SOP,” Fitch added. 

While it said that Pakistan’s economy was expected to contract by 0.3 percent in FY2022/23, the rupee’s devaluation would help Pakistan secure further disbursements from the IMF. Fitch said it would be “a positive for the longer-term outlook,” helping Islamabad ease its balance of payments strains. 

An IMF mission is currently in Islamabad till February 9, 2023, to discuss the loan revival. The mission will examine Pakistan’s policies to restore domestic and external sustainability, including strengthening the country’s fiscal position with durable measures while supporting those affected by devastating floods last year.


Pakistan launches first dematerialized ID card on silver jubilee of database authority 

Updated 10 March 2025
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Pakistan launches first dematerialized ID card on silver jubilee of database authority 

  • Digital Pakistan initiative aims to expand knowledge-based economy, spur socio-economic growth using digital technologies
  • Pakistan has made considerable progress in its digital transformation journey with rapid expansion of mobile broadband networks 

ISLAMABAD: Pakistan’s National Database and Registration Authority (NADRA) marked its silver jubilee on Monday, launching the country’s first dematerialized ID card to commemorate 25 years in legal identity management and national database integration.

The launch of the new card is part of the government’s vision of a Digital Pakistan, where citizens will have digital certificates instead of material ID or, at least, in addition to material ones.

“Federal Minister for Interior and Narcotics Control Syed Mohsin Raza Naqvi commended the launch of the dematerialized ID as a step toward digital identity,” NADRA said in a statement. 

“With the launch of this feature in the Pak ID Mobile Application, citizens will no longer need to carry physical ID cards. Moreover, digital verification systems will soon be implemented to facilitate authentication for various services under the World Bank-funded Digital Economy Enhancement Project.”

A pilot project for the fully digital identity will be launched on Aug. 14, 2025 to coincide with Pakistan’s Independence Day.

Pakistan has made considerable progress in its digital transformation journey with the rapid expansion of mobile broadband networks over the last decade. Today, nearly 80 percent of the adult population lives in areas served by mobile broadband (3G or 4G) networks, compared to 15 percent in 2010. But experts say more work must be done to ensure that connectivity reaches everyone, as only 22 percent of the population is subscribed to mobile Internet. 

To this end, Digital Pakistan is a flagship initiative of the government to expand the knowledge-based economy and spur socio-economic growth using digital technologies. 

“The vision with regards to Digital Pakistan Policy is to become a strategic enabler for an accelerated digitization ecosystem to expand the knowledge based economy and spur socio- economic growth,” according to a government policy document outlining the strategy.


No Pakistani players on ICC Champions Trophy 2025 team of the tournament

Updated 10 March 2025
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No Pakistani players on ICC Champions Trophy 2025 team of the tournament

  • India won ICC Champions Trophy 2025 on Mar. 9 
  • Pakistan crashed out of home trophy without a win

ISLAMABAD: The International Cricket Council (ICC) on Monday announced its ‘Team of the Tournament’ for the Champions Trophy 2025, which concluded last week, with no Pakistani player making it on the prestigious list.

The ninth edition of the Champions Trophy saw India being crowned as the winners on Mar. 9 after they overcame New Zealand in the final. Pakistan ended their campaign in the home trophy without a win.

“Several exceptional performers lit up the tournament with the bat and ball,” ICC said on its website. “The best of them made it to the Team of the Tournament.”

The team includes six players from India, four from New Zealand and two from Afghanistan.

Here’s what the side looks like:

1. Rachin Ravindra (New Zealand)

251 runs, 62.75 average, two hundreds

2. Ibrahim Zadran (Afghanistan)

216 runs, 72 average, one hundred

3. Virat Kohli (India)

218 runs, 54.5 average, one hundred

4. Shreyas Iyer (India)

243 runs, 48.6 average, two fifties

5. KL Rahul (wk) (India)

140 runs, 140 average, 42 highest score*

6. Glenn Phillips (New Zealand)

177 runs, 59 average, two wickets, five catches

7. Azmatullah Omarzai (Afghanistan)

126 runs, 42 average, seven wickets, one five-wicket haul

8. Mitchell Santner (c) (New Zealand)

Nine wickets, 26.6 average, 4.80 economy

9. Mohammed Shami (India)

Nine wickets, 25.8 average, 5.68 economy, one five-wicket haul

10. Matt Henry (New Zealand)

Ten wickets, 16.7 average, 5.32 economy, one five-wicket haul

11. Varun Chakaravarthy (India)

Nine wickets, 15.1 average, 4.53 economy

12th player: Axar Patel (India)

Five wickets, 39.2 average, 4.35 economy


Geopolitics and lack of buzz blight Champions Trophy’s return

Updated 10 March 2025
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Geopolitics and lack of buzz blight Champions Trophy’s return

  • Indian board BCCI stuck to their policy of not touring Pakistan because of strained political ties 
  • Allowing India to play all their matches in Dubai robbed Pakistan of honor of hosting the final 

Geopolitical reality, lack of buzz in host nation Pakistan and mediocre cricket in general meant Champions Trophy’s much-anticipated return to the calendar did not go according to plan for the governing International Cricket Council (ICC).
The one-day international (ODI) tournament served as an ICC fundraiser but offered no assurance about the future of a format battling for relevance in a cricket landscape ruled by Twenty20 leagues either.
Financial engine India’s participation, a key factor behind the commercial success of any cricket tournament, was in doubt after Pakistan bagged the hosting rights for the first ICC event in the country since 1996.
The Indian board (BCCI) stuck to their policy of not touring Pakistan because of the strained political ties between the bitter neighbors, who play each other only in ICC events.
Like for the 2023 Asia Cup in Pakistan, a ‘hybrid model’ was agreed on under which India were allowed to play their matches in Dubai to salvage a tournament, which had been discontinued after the 2017 edition.
Under the agreement running until 2027, Pakistan will play in a neutral venue for any ICC event, like next year’s Twenty20 World Cup, scheduled in India.
Reigning T20 world champions India beat New Zealand in Sunday’s final to prove their credentials as a white-ball behemoth.
India have lost just one match — the final of the ODI World Cup in 2023 — in their last three ICC events and probably did not require what many called an “unfair advantage” of playing all their matches in Dubai.
“I feel sorry for India’s cricketers,” award-winning cricket writer Nicholas Brookes told Reuters.
“They are an outstanding team – in my mind, streets ahead of their competition regardless of conditions, and one of the greatest white-ball sides the game has seen.
“This tournament should have been their victory lap, but their brilliance has been somewhat overshadowed by constant questions about unfair advantages.”
Allowing India to play all their matches in Dubai robbed Pakistan of the honor of hosting the final and disrupted the schedule of the knockout matches.
South Africa were made to take a farcical 18-hour trip to Dubai in anticipation of a semifinal against India before flying back to Pakistan to face New Zealand.

“BENDING OVER BACKWARDS”

The whole affair made the ICC, currently headed by former BCCI secretary Jay Shah, look weak in front of the world’s richest cricket board.
The scheduling also favored India, who had a week’s rest between their last two group matches, while Afghanistan played twice in three days.
“That looks like the ICC putting finances ahead of fairness,” said Brookes, whose “An Island’s Eleven” charts the history of Sri Lankan cricket and won the Wisden Book Of The Year award in 2023.
“Some people will naturally think that the governing body is bending over backwards to accommodate India.”
Defending champions Pakistan looked under-prepared for the tournament, both on and off the field.
Eleventh-hour facelift to stadiums in Karachi and Lahore, sparse crowd and three washouts dampened the spirit among the locals.
Adding to their woes, Mohammed Rizwan and his men finished bottom of Group A after a winless campaign that included a defeat by arch-rivals India.
An injury-ravaged Australia fielded a second string pace attack with Steve Smith, who quit ODIs after their semifinal exit, leading them in the absence of regular skipper Pat Cummins.
New Zealand all-rounder Rachin Ravindra bagged the player-of-the-tournament prize, while fellow Black Cap Glenn Phillips redefined fielding with gravity-defying catches and India’s Virat Kohli proved he is not a spent force yet but the cricket was largely mediocre.
Afghanistan could not make the last four but impressed on their Champions Trophy debut while former champions England are searching for a new captain after their winless campaign prompted Jos Buttler to step down.


Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year

Updated 10 March 2025
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Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year

  • In Feb. 2025, Pakistan received highest inflows from Saudi Arabia, $744.4 million, followed by UAE, which contributed $652.2 million
  • Among factors driving up remittances are reforms to curb illegal foreign exchange trading and incentives implemented by central bank 

ISLAMABAD: Pakistan recorded year-on-year growth of 38.6 percent in remittances with inflows of $3.1 billion in February, the central bank said on Monday, with the highest contributions coming from Saudi Arabia and the UAE.

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting balance of payments. 

“Workers’ remittances recorded an inflow of $3.1 billion during February 2025,” the State Bank of Pakistan (SBP) said in a press release. “In terms of growth, remittances increased by 38.6 percent and 3.8 percent on year-on-year and month-on-month basis respectively.”

In February 2025, Pakistan received its highest inflows from Saudi Arabia, $744.4 million, followed by the UAE, which contributed $652.2 million. Remittances received from the United Kingdom and the United States stood at $501.8 million and $309.4 million respectively.

“Cumulatively, with an inflow of $24 billion, workers’ remittances increased by 32.5 percent during July to February, FY25 compared to $18.1 billion received during July to February FY24,” the central bank added.

Among factors driving an increase in remittances are reforms that have curbed illegal foreign exchange trading and incentives implemented by the State Bank of Pakistan. Decreased global inflation rates have encouraged Pakistani migrants to send more money back home. 

Families in Pakistan are also relying more on financial support from relatives working abroad due to inflation at home. 


Pakistan reports first death of 2025 from deadly brain-eating amoeba

Updated 10 March 2025
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Pakistan reports first death of 2025 from deadly brain-eating amoeba

  • Naegleria fowleri, with 98 percent fatality rate, is transmitted when contaminated water enters body through nose
  • Over a hundred people have died from the infection in Pakistan since 2008, five people died last year 

KARACHI: A 36-year-old woman died in the Pakistani city of Karachi last month after contracting Naegleria fowleri, a health official confirmed on Monday, marking the first death this year from the deadly brain-eating amoeba.

Naegleria fowleri has a fatality rate of more than 98 percent. It is transmitted when contaminated water enters the body through the nose and cannot be passed person-to-person.

Pakistan has seen a rise in Naegleria fowleri cases in recent years, with over a hundred people dead since the first reported infection in 2008. Five people died from the infection last year.

Symptoms of Naegleria fowleri infection include severe headache, altered taste, high fever, light sensitivity, nausea and vomiting. Death usually occurs five to seven days after infection.

In the latest case, a woman was admitted to the hospital on Feb. 19 after experiencing symptoms and died four days later on Feb. 23. 

“The presence of Naegleria fowleri was confirmed in the patient on Feb. 24, 2025 after the patient had passed away,” Sindh Health Department spokesperson Meeran Yousuf said in a statement.

“Upon investigation, it was noted that the patient had not participated in any water-related activities and her only exposure was regular use of water to perform ablution five times a day at home.”

Yousaf said this was the first death in Pakistan from Naegleria fowleri in 2025.

A 2021 study by the Sindh Health Department found that 95 percent of water samples in Karachi, the provincial capital, were unfit for human consumption, with experts attributing the contamination to the spread of amoeba.