Pakistan unemployment rose 34.1%, mean income fell 42% during COVID-19 first wave — study 

A laborer wearing a facemask sits beside closed shops at a market during a government-imposed nationwide lockdown as a preventive measure against the COVID-19 coronavirus, in Karachi on April 7, 2020. (AFP)
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Updated 05 April 2021
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Pakistan unemployment rose 34.1%, mean income fell 42% during COVID-19 first wave — study 

  • ‘COVID-19 Pandemic’s Economic Burden in Pakistan’ uses data from Bureau of Statistics’ survey evaluating socio-economic impact of coronavirus
  • Three million citizens unable to recover jobs a quarter after end of first wave lockdowns, average income in Nov 2020 5.5% below pre-lockdown levels

ISLAMABAD: A new study by the Mahbub Ul Haq Research Center at Pakistan’s most prestigious private university, the Lahore University of Management Sciences (LUMS), assesses the coronavirus pandemic’s economic impact on the lives of Pakistanis during the first wave, saying it had an “unprecedented shock” on citizens.

The study, ‘COVID-19 Pandemic’s Economic Burden in Pakistan,’ uses the Pakistan Bureau of Statistics’ (PBS) Special Survey for Evaluating the Socio-Economic Impact of COVID-19 — a nationally representative survey that is also representative of rural and urban areas. The analysis provides important lessons for government policy during the lethal third wave.

“The evidence shows that Pakistani citizens experienced an unprecedented shock because of lockdowns during the first wave,” the study, released this week, said. “We find that the unemployment rate increased by 34.1% between the pre-lockdown and the first wave lockdown periods and mean income fell by over 42%.”

However, not all types of citizens experienced a shock of the same magnitude: citizens engaged in the urban and rural non-farm economies faced a bigger income and employment shock than citizens engaged in farm activities. The unemployment rate increased by 42% in urban areas and 38% in the rural non-farm economy. The average income of these citizens fell by 48.7% and 47.2% respectively. As opposed to this, unemployment rose by 4% and income declined by 6.5% for respondents engaged in farm employment.

“The PBS survey shows that the biggest loss of income and jobs was experienced by causal labor, however employers and the self-employed also experienced a sizeable shock,” the study said. 

The period of respite after the first wave resulted in robust recovery for citizens, though the recovery was incomplete, the study said, with around 3 million citizens unable to recover their jobs a quarter after the end of first wave lockdowns and average income in November 2020 remaining 5.5% below pre-lockdown levels.

An important lesson from the first wave experience, the study said, was that “the economic shock associated with pandemics like COVID-19 requires the institutionalization of emergency social assistance with much broader coverage that includes the lower-middle and middle classes.”

“The incomplete nature of the recovery suggests that a component of emergency social assistance needs to be designed to protect jobs during lockdowns, rather than being disbursed in the form of handouts for employers and citizens that are not tied to jobs,” the study concluded. “This would require formally registering employment and supplier contracts as part of social assistance programs. These changes, however, require a new social contract between the state, firms, and the working and middle classes in Pakistan. The question for the government is whether it is ready to introduce such a program during the third wave.”


Pakistan launches first Shariah-compliant ‘Green Sukuk’ to attract eco-friendly investment

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Pakistan launches first Shariah-compliant ‘Green Sukuk’ to attract eco-friendly investment

  • Green Sukuk to fund renewable energy, clean transportation and climate-resilient projects, says finance ministry
  • Pakistan says will hold auction for inaugural Green Sukuk issue, ranging from $71.4 million to $107.1 million

KARACHI: Pakistan’s finance ministry announced the launch of its first ever “Green Sukuk” financial instrument on Wednesday, saying it was aimed at attracting investments in environmentally sustainable projects.

The Green Sukuk is a Shariah-compliant financial instrument specifically designed to fund environmentally sustainable projects such as renewable energy, clean transportation and climate-resilient infrastructure, the ministry said. By merging Islamic finance principles with environmental objectives, Green Sukuk provides a unique investment avenue that appeals to ethically minded investors, it added. 

“The Government of Pakistan is proud to announce a major milestone in the nation’s sustainable finance journey with the launch of its first Green Sukuk,” the ministry said. “The Green Sukuk marks a pivotal step in aligning Pakistan’s financial markets with global best practices in green financing.”

The ministry said an auction would be held for the Green Sukuk’s first issuance, with the total amount of funds to be raised expected to be between $71.4 million (Rs20 billion) and $107.1 million (Rs30 billion). The statement said the Pakistan Stock Exchange would play a role in promoting the instrument to investors.

The Green Sukuk program was prepared with the support of Pakistan’s Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited and Bank Islami Pakistan Limited, it said. 

The finance ministry said the initiative was aligned with Pakistan’s Vision 2028 goal of transitioning toward an interest-free economy. The Green Sukuk would attract a “broader investor base, deepen our financial markets and accelerate the country’s transition” to a resilient economy, the statement said. 


Pakistan interior minister meets US envoy, conveys ‘serious concerns’ over India strikes

Updated 07 May 2025
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Pakistan interior minister meets US envoy, conveys ‘serious concerns’ over India strikes

  • Meeting takes place amid soaring tensions after India said it struck Pakistani sites that served as militant recruitment centers
  • Several countries including US, Turkiye, China, UAE, UK and others have called on both sides to show restraint, avoid escalation 

ISLAMABAD: Interior Minister Mohsin Naqvi met Acting US Ambassador Natalie Baker on Wednesday to convey his country’s “serious concerns” over India’s military strikes inside Pakistani territory and its implications for regional peace, state-run Associated Press of Pakistan (APP) said. 

Several countries have called for calm between India and Pakistan amid soaring tensions in South Asia, following Indian attacks on six locations inside Pakistan on Wednesday. Islamabad said Indian strikes killed at least 26 civilians and injured 46. In response, Pakistan claimed to have downed five Indian fighter jets and struck Indian military posts along the Line of Control. 

Naqvi met Baker in Islamabad to provide her a “comprehensive” briefing in the aftermath of the Indian strikes and evolving security situation in South Asia, APP reported. US Political Counselor Zachary Harkenrider and Pakistan’s Minister of State for Interior Tallal Chaudhry were part of the meeting. 

“During the meeting, Minister Naqvi gave a comprehensive briefing to the US delegation on the aftermath of the Indian aggression, expressing Pakistan’s serious concerns over the incident and its implications for regional peace,” APP said. 

Naqvi accused India of putting South Asia’s peace and stability at stake, APP said. He further stressed “India has torn apart regional harmony and by targeting civilians, it has blatantly violated international laws.”

Naqvi said Pakistan had acted responsibly and showed maximum restraint in the face of Indian provocation. 

“We gave a strong and appropriate response in defense of our homeland,” Naqvi was quoted as saying. “Pakistan will never allow any compromise on its national security.”

INTERNATIONAL REACTION

US President Donald Trump had reacted to the incident on Wednesday night, condemning the escalation, expressing hope that the fighting would end quickly.

“It’s a shame,” he said. “Just heard about it. I guess people knew something was going to happen based on a little bit of the past. They’ve been fighting for a long time. They’ve been fighting for many, many decades. I hope it ends very quickly.”

Meanwhile, US Secretary of State Marco Rubio said he was monitoring the situation closely and would continue to engage with the leadership of both countries for a “peaceful resolution.”

A Chinese foreign ministry spokesperson said India’s actions were “regrettable,” urging both countries to exercise restraint and refrain from further complicating the situation, Reuters reported.

United Arab Emirates Foreign Minister and Deputy Prime Minister Abdullah bin Zayed bin Sultan Al Nahyan called on Pakistan and India “to exercise restraint, de-escalate tensions, and avoid further escalation that could threaten regional and international peace,” Emirates News Agency-WAM reported.

Turkiye urged India and Pakistan to act with common sense amid the military escalation between them, its foreign ministry said on Wednesday, saying India’s latest military action created the risk of an “all-out war.”

In a statement, the ministry reiterated its support for Pakistan’s call for an investigation into a militant attack that killed 26 in the Indian-administered side of the Himalayan region on April 22.

The UK is ready to support both India and Pakistan to de-escalate tensions, Trade Secretary Jonathan Reynolds said on Wednesday, following the worst violence between the nuclear-armed arch-foes in two decades.

“Our message would be that we are a friend, a partner to both countries. We stand ready to support both countries. Both have a huge interest in regional stability, in dialogue, in de-escalation and anything we can do to support that, we are here and willing to do,” he told BBC radio.


Pakistan warns of rainfall, storms in Punjab from May 7-11

Updated 07 May 2025
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Pakistan warns of rainfall, storms in Punjab from May 7-11

  • Authorities advise citizens to stay indoors and in safe places during rainfall and storms
  • Rain with strong winds predicted in Rawalpindi, Murree, Galiyat region and other districts

ISLAMABAD: The Punjab Provincial Disaster Management Authority (PDMA) on Wednesday warned of rainfall and thunderstorms across the country’s eastern province from May 7-11, an alert issued by the authority said. 

Pakistan is highly vulnerable to climate change, facing numerous impacts like rising temperatures, increased frequency of extreme weather events, and changes in agricultural patterns. The country’s vulnerability is exacerbated by factors like reliance on the Indus River, which is fed by melting glaciers and its location in a region prone to floods and droughts.

“Dusty winds and thundershowers are likely in most districts of Punjab from May 7-11,” the PDMA said in a statement. “Rain with strong winds is predicted in Rawalpindi, Murree, Galiat, Attock, Chakwal, Mandi Bahauddin, Gujrat, Jhelum and Gujranwala.”

The authority added that there were chances of rainfall in Lahore, Kasur, Sialkot, Narowal, Okara, Faisalabad, Toba Tek Singh, Jhang, Khushab, Sargodha and Mianwali.

Rainfalls and hailstorm were also predicted in South Punjab, Multan, Dera Ghazi Khan, Bahawalpur and Bahawalnagar between May 8-10, the PDMA said.

Director General PDMA Irfan Ali Kathia confirmed that an alert was issued to the district administrations including the education, health, irrigation, construction, livestock and police departments.

The PDMA alert advised citizens to stay indoors and in safe places during rainfall and contact the PDMA’s 1129 helpline for any assistance.

In early April, a severe hailstorm and heavy rainfall lashed Pakistan’s capital Islamabad and its surrounding areas, damaging thousands of vehicles and smashing the windows of homes. 

Experts say there is evidence suggesting a link between climate change and increased hailstorm frequency and intensity. While the exact relationship is still being studied, a warming climate can create conditions more conducive to large hail formation.


Airlines cancel, reroute flights after India-Pakistan clashes

Updated 07 May 2025
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Airlines cancel, reroute flights after India-Pakistan clashes

  • India launched missile strikes in Pakistani territory on Wednesday night in response to deadly attack last month
  • Flights of Korean Air, Taiwan’s China Airlines, Russian national carrier Aeroflot and others rerouted or canceled

BANGKOK: Clashes between nuclear-armed India and Pakistan on Wednesday sent airlines scrambling to cancel, divert or reroute flights.

The neighbors and longtime rivals exchanged heavy artillery fire along their contested frontier after India launched missile strikes in retaliation for a deadly attack last month.

Here is a round-up of what airlines are doing to avoid flying over the conflict zone.

Korean Air has begun rerouting its flights from Seoul Incheon to Dubai, using a southern route that passes over Myanmar, Bangladesh and India, instead of the previous path through Pakistani airspace.

“We are currently monitoring the situation for further changes,” a Korean Air official told AFP.

Taiwan’s China Airlines said several flights have been diverted or canceled.

Two flights from Taipei to Frankfurt and Amsterdam “made a technical diversion to Bangkok” before returning to the Taiwanese capital.

Three flights from Taipei to Prague, Rome and London were canceled on Tuesday and Wednesday.

“China Airlines continues to monitor the situation and will adjust flight schedules as needed,” it said.

EVA Air said it will adjust flights to and from Europe “based on actual conditions to avoid affected airspace to ensure the safety of crew members and passengers.”

A flight from Vienna to Bangkok will return to the Austrian capital while a flight from Taipei to Milan will be diverted to Vienna for refueling and then continue to the Italian city, the airline said in a statement.

Russian national carrier Aeroflot said all its flights from Moscow to and from India, Thailand, Sri Lanka, the Maldives, and the Seychelles would be rerouted.

Singapore Airlines said its flights have been rerouted to avoid Pakistani airspace.

Malaysia Airlines rerouted two flights from Kuala Lumpur — one to London Heathrow and one to Paris Charles de Gaulle. They stopped in Doha before continuing their journeys.

The carrier also suspended all flights to and from India’s Amritsar until May 9.

Thai Airways said it was rerouting flights to destinations in Europe and South Asia from 5:00 am on Wednesday (2200 GMT Tuesday) to avoid Pakistani airspace, warning of possible delays.

At least eight flights to European cities were affected, the airline said, while a return flight scheduled to go from Bangkok to Islamabad and back again on Wednesday was canceled.

Sri Lankan Airlines said its flights were unaffected and there is no change to its four weekly flights to Pakistan’s Lahore and Karachi.


Pakistan’s top court allows military trials of civilians accused of attacking army sites — media

Updated 07 May 2025
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Pakistan’s top court allows military trials of civilians accused of attacking army sites — media

  • Decision follows a legal battle sparked by violent protests on May 9, 2023, by ex-PM Khan’s party
  • The court has directed the government to legislate within 45 days to provide a right of appeal

ISLAMABAD: Pakistan’s top court on Wednesday reinstated the Army Act in its original form and overturned its earlier ruling that had blocked military trials for civilians accused of attacking military installations, according to the local media reports.
The decision follows a legal battle sparked by violent protests on May 9, 2023, when supporters of jailed former Prime Minister Imran Khan stormed military facilities across Pakistan and set some of them on fire after his brief arrest on graft charges.
Subsequently, dozens of people were arrested and prosecuted in military courts, triggering constitutional challenges from rights groups and activists, as Khan’s Pakistan Tehreek-e-Insaf (PTI) party vocally opposed the trials.
“The Supreme Court of Pakistan has reinstated the Pakistan Army Act in its original form and declared its earlier verdict from October 23, 2023, null and void,” Geo News reported.
“The apex court delivered the verdict with a 5-2 majority,” it added. “Justices Jamal Khan Mandokhail and Naeem Akhtar Afghan dissented.”
The ruling restores previously nullified clauses of the Army Act that allow civilians to be tried in military courts under certain circumstances.
The court also directed the government to legislate within 45 days to provide a right of appeal for any convictions handed down by military courts, Geo News said.
Khan’s PTI, whose supporters were among those arrested after the May 2023 protests, condemned the ruling.
“The constitutional bench of Supreme Court of Pakistan has just given the government’s petition a go by allowing military trial of civilians,” the party said in a statement. “The purpose of military law is to maintain discipline within the armed forces. It was never designed to be applied to civilians.”
The previous Supreme Court ruling in October 2023, delivered by a five-judge panel, had declared that trying civilians in military courts violated constitutional rights to a fair trial and due process. That decision was welcomed by rights groups and legal experts as a step toward strengthening judicial independence and limiting the military’s influence over civilian legal matters.
The government and the defense ministry appealed the verdict, citing national security concerns and the need to hold accountable those who attacked military installations.