Pakistani rupee sees downward slide amid uncertainty over IMF bailout 

A foreign currency dealer counts US dollar bills at a shop in Karachi, Pakistan, on February 25, 2022. (AFP/File)
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Updated 13 July 2022
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Pakistani rupee sees downward slide amid uncertainty over IMF bailout 

  • Local currency closed at Rs210.1 against the greenback on Thursday, last Thursday it closed at Rs207.91
  • Burgeoning current account deficit and delay in IMF deal major reasons behind the rupee depreciation

ISLAMABAD: The Pakistani rupee depreciated by Rs2.19 against the US dollar during interbank trading on Wednesday, with currency dealers and economists attributing the downward slide to fears over a delay in the revival of a stalled $6 billion International Monetary Fund (IMF) loan program.

The local currency closed at Rs210.1 against the greenback on Thursday, according to the State Bank of Pakistan. Last Thursday, it had closed at Rs207.91.

The US dollar has consistently risen in the Pakistani currency market in the last two months due to political and economic uncertainty.

Pakistan last month said it had received economic and financial targets from the IMF that once agreed and ratified should pave the way for the lender to unlock a suspended $6 billion loan program.

Pakistan desperately needs the money to avert a balance of payment crisis that is being brought closer by the day as a result of the sharp rise in global oil and commodity prices. Central bank foreign currency reserves have fallen dangerously low, and the economy is reeling from a sharp depreciation in the Pakistani rupee and double-digit inflation.

“We have no update on the IMF loan program so far,” Birj Lal Dosani, director-general media at the Ministry of Finance, told Arab News on Wednesday. Finance minister Miftah Ismail did not respond to questions. Bloomberg reported an agreement with the IMF had been reached. 

Pakistan entered the IMF program in 2019 spread over three years and three months, but with less than half the amount disbursed, the IMF suspended the bailout earlier this year after the previous prime minister, Imran Khan, announced unfunded subsidies for the oil and power sectors. Khan’s government was ousted in April. The new government has since raised the prices of petroleum products at least four times to meet IMF conditions.

Economists and financial experts said the consistent devaluation of the rupee was attributed to numerous factors, but the burgeoning current account deficit and delay in the IMF deal were the major reasons behind the depreciation.

“This is obvious, the rupee is under significant pressure over delay in the IMF deal,” Samiullah Tariq, head of research at Pakistan Kuwait Investment Company (Private) Limited, told Arab News. 

Listing other reasons behind the rupee depreciation, he said export inflows were slow as factories remained closed during the Eid holidays, which ran from Friday to Tuesday, while import pressure was high on the first working day.

“Our foreign remittances usually remain high before Eid holidays and then start drying up during the month, so this could be another reason behind the rupee depreciation against the dollar,” he said.

Tariq said the dollar index had also risen 1.5 percent in the international market in recent days and this had also brought the Pakistani rupee under pressure. 

Currency dealers said an increasing import bill and uncertainty over the IMF loan program were major reasons behind a sharp rupee depreciation after the Eid holidays. The state bank has $9.8 billion in reserves, sufficient to cover the import bill of only five to six weeks.

“Our import bill has increased manifold in recent months with soaring prices of energy and food commodities in the international market while our forex reserves have been falling,” Malik Bostan, president of the Pakistan Forex Association, told Arab News.

“The rupee could appreciate up to two hundred against the greenback but only after the IMF $1 billion tranche was credited to the central bank,” he said.

Dr. Khaqan Hassan Najeeb, former adviser to the Ministry of Finance, said considering the jitteriness in the markets, it was important for Pakistan to reach a staff-level agreement with the IMF as soon as possible.

“Both the international bond market and forex market remain under pressure as Pakistan’s bonds yield has risen to uncomfortable level maturing in December 22 is now yielding 41 percent which was floated at 5.88 percent,” he told Arab News.

“A deal with the IMF would ensure that Pakistan’s foreign reserves are not only built by the money it receives from the international lender but also other sources, which could help remove pressure on the rupee.”


Senior journalist among three killed in bomb attack in Balochistan on World Press Freedom Day

Updated 14 sec ago
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Senior journalist among three killed in bomb attack in Balochistan on World Press Freedom Day

  • Khuzdar Press Club president was killed after a motorcyclist attached an explosive device to his vehicle
  • Journalists say media workers were also killed in the past but their murderers were never brought to justice

QUETTA: A senior journalist was killed in a powerful blast that claimed at least two other lives in Pakistan’s volatile southwestern Balochistan province, confirmed a senior administration official on Friday, after a motorcyclist attached an explosive device to his vehicle at a bustling market area.

The incident that took place in Khuzdar, a remote city in the region, on World Press Freedom Day sent shockwaves through the media community in the province that has witnessed much violence in the last couple of decades.

Maulvi Muhammad Siddique Mengal, the targeted journalist, was currently the president of the Khuzdar Press Club and had also received threats from unknown individuals in the past.

“President of the Khuzdar Press Club Maulvi Muhammad Siddique Mengal and two bike riders near his vehicle were killed in the attack,” Deputy Commissioner Khuzdar Arif Khan Zarkoon told Arab News after the emergence of the CCTV footage of the attack. “Five people were injured who were shifted to the District Hospital Khuzdar for treatment.”

“Mengal was traveling in his private vehicle to a mosque to offer Friday prayers when an unknown man attached a magnetic explosive device to his vehicle which exploded at Chamrook Chowk and killed him on the spot,” he added.

So far, no group has claimed responsibility for the attack.

“Maulvi Siddique Mengal had been receiving threats from unknown people for the last year,” said one of the local journalists who requested anonymity. “He survived a firing attack nine months ago. Journalism has become a life-threatening profession in Khuzdar. We even closed Khuzdar Press Club for more than six months after threats by unknown people in 2012.”

Pakistan is considered one of the most dangerous places in the world for journalists, particularly for those working in the country’s western Balochistan and Khyber Pakhtunkhwa provinces. According to the Committee to Protect Journalists (CPJ), an international organization working for journalists’ safety, at least 62 media workers have been killed in targeted attacks in Pakistan since 1992.

The Balochistan Union of Journalists (BUJ) has strongly condemned Mengal’s murder, demanding the arrest of the perpetrators of the Khuzdar blast.

Khalil ur Rehman, the BUJ president, said targeting a journalist on World Press Freedom Day was an attempt to suppress the voice of media workers in Balochistan.

“Forty-two journalists have lost their lives in Balochistan over the last two decades, while 10 journalists were killed in Khuzdar district during the last decade, but not a single murderer of journalists has been arrested yet,” he told Arab News. “Journalists in Balochistan are already facing security challenges, but this attack indicates that targeted attacks against journalists have started again.”

Mir Sarfaraz Bugti, chief minister of Balochistan, has strongly condemned Mengal’s killing, ordering an investigation into it.

“The Balochistan government will utilize all resources to arrest the perpetrators involved in the killing of the senior journalist in Khuzdar,” he said in a statement. “Terrorists involved in sabotaging peace in Balochistan won’t succeed.”


Global advocacy group says over 300 journalists faced state repression in Pakistan in one year

Updated 51 min 26 sec ago
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Global advocacy group says over 300 journalists faced state repression in Pakistan in one year

  • International Federation of Journalists says 8 media workers were charged for sedition, terrorism, incitement to violence
  • It mentions the plight of Afghan journalists in exile, safety issues of Pakistani women journalists in online and offline spaces

ISLAMABAD: A leading global advocacy group for journalists’ rights on Friday highlighted alarming challenges faced by the media in Pakistan on Friday, saying that more than 300 people associated with the information industry faced repressive state tactics designed to quell dissent during the course of about a year.

The International Federation of Journalists (IFJ) released its country report on Pakistan on World Press Freedom Day that falls on May 3.

The report highlighted the persistent threats to freedom of expression, safety concerns, gender inequality, and the impact of disinformation on the local media industry.

“Over 300 journalists and bloggers this year were affected by state coercion and targeted, including dozens of journalists arrested for durations between several hours to four weeks and nearly 60 served legal notices or summons for their journalism work or personal dissent online,” the IFJ Pakistan country report for 2023-2024 said. “At least eight were charged for alleged sedition, terrorism and incitement to violence – all serious charges carrying lengthy sentences and even the death penalty.”

It maintained that most of these cases stemmed from the perceived or actual support of these journalists for former prime minister Imran Khan and his political party.

“In this sense, the principal threat actor behind crimes against journalists and free speech practitioners was undoubtedly the state and its functionaries, though some regional sects, non-state actors and gangsters were also involved in some cases,” the report added.

The IFJ described the judicial intervention in these matters as “the silver lining,” saying it thwarted the government’s attempts to entangle journalists “in legal proceedings as a tool of deterring dissent.”

The report noted four journalists were killed during the period under review while at least 59 journalists and bloggers were charged with sedition, terrorism, incitement to violence, defamation or contempt.

“Of these, 47 journalists were served legal summons to respond to allegations of targeted defamation and incitement against judges of the superior judiciary,” it continued.

The report also maintained the safety of women journalists in Pakistan’s online and offline spaces remained a persistent challenge.

“They continued to face gender-based discrimination, journalism work-related intimidation and under-representation in the industry,” it said.

The IFJ said this environment led to self-censorship among journalists and media outlets, especially while writing on topics concerning religion and law.

It also highlighted the plight of Afghan journalists, saying nearly 200 of them had fled to Pakistan after the Taliban takeover in August 2021.

“In October 2023, Pakistan’s government unilaterally demanded that Afghan refugees return to Afghanistan, setting a deadline of one month before authorities began forced deportations,” it recalled. “Amongst the refugees were 200 journalists who had fled to Pakistan to escape stifling restrictions on free speech in Afghanistan.”

The organization said it had called for financial and legal assistance for these journalists to support their sustenance and freedom to report.


Pakistan extradites Oslo festival shooting suspect to Norway

Updated 03 May 2024
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Pakistan extradites Oslo festival shooting suspect to Norway

  • The man opened fire outside two bars in Oslo in 2022, killing two men and wounding nine others
  • Zaniar Matapour, a 44-year-old Norwegian of Iranian origin, is currently on trial for an ‘act of terror’

OSLO: Pakistan has extradited to Norway a man suspected of masterminding an Oslo shooting on the eve of a 2022 festival, Norwegian authorities said on Friday.
On the night of June 25, 2022, just hours before the parade was to take place, a man opened fire outside two bars in central Oslo, including a well-known gay club, killing two men and wounding nine others.
The suspected shooter, Zaniar Matapour, a 44-year-old Norwegian of Iranian origin, is currently on trial accused of an “act of terror.”
Matapour has pleaded not guilty, and psychiatric experts are at odds over his mental health and thereby his legal responsibility.
Arfan Bhatti, a 46-year-old who has lived and is well known in Norway, is suspected of having planned the attack but left Norway for Pakistan before the shooting.
Even though Norway and Pakistan have no agreement on extraditions, Pakistani authorities agreed to grant Oslo’s request.
“Arfan Bhatti is now on a plane escorted by Norwegian police,” Norway’s Justice Minister Emilie Enger Mehl told reporters on Friday.
Bhatti, who denies any involvement and had opposed extradition, will be placed in custody on arrival in Oslo, Norwegian police said.
He is suspected of being an “accomplice to an aggravated act of terror,” a charge that carries a prison sentence of up to 30 years.
Bhatti is expected to be called to testify during Matapour’s trial, police said.
Bhatti’s lawyer was angry that his client was extradited before Pakistan’s supreme court had a chance to rule on his case.
“This way of doing things calls into question the respect of law and international legal principles,” John Christian Elden said.


On World Press Freedom Day, Pakistani PM says journalists in Gaza ‘heroes of humanity’

Updated 03 May 2024
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On World Press Freedom Day, Pakistani PM says journalists in Gaza ‘heroes of humanity’

  • Committee to Protect Journalists says at least 97 press members killed in Gaza war, 92 of them Palestinians
  • UNESCO on Thursday awarded its world press freedom prize to all Palestinian journalists covering the war in Gaza

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif said on Friday the journalists who were covering the war in Gaza, especially those who had died in the line of duty, were “heroes of humanity.”
Sharif said this in his statement on World Press Freedom Day, observed on May 3 each year to raise awareness of the importance of freedom of the press and remind governments of their duty to respect and uphold the right to freedom of expression enshrined under Article 19 of the 1948 Universal Declaration of Human Rights. The day also marks the anniversary of the Windhoek Declaration, a statement of free press principles put together by African newspaper journalists in Windhoek in 1991.
According to the New York-based Committee to Protect Journalists (CPJ), at least 97 members of the press have been killed since the war in Gaza broke out in October, 92 of whom were Palestinians.
“The male and female journalists who sacrificed their lives during coverage in Gaza are heroes of humanity,” Sharif said. “I salute them.”
Separately, UNESCO on Thursday awarded its world press freedom prize to all Palestinian journalists covering the war in Gaza, launched by Israel over seven months.
“In these times of darkness and hopelessness, we wish to share a strong message of solidarity and recognition to those Palestinian journalists who are covering this crisis in such dramatic circumstances,” said Mauricio Weibel, chair of the international jury of media professionals.
“As humanity, we have a huge debt to their courage and commitment to freedom of expression.”
Audrey Azoulay, director general at the UN organization for education, science and culture, said the prize paid “tribute to the courage of journalists facing difficult and dangerous circumstances.”
The war started with Hamas’s unprecedented October 7 attack on Israel that resulted in the deaths of 1,170 people, mostly civilians, according to a media tally of Israeli official figures.
Israel’s retaliatory offensive against Hamas has killed at least 34,596 people in Gaza, mostly women and children, according to the territory’s health ministry.
With inputs from AFP


‘First step into space’: China launches high-stakes lunar mission with Pakistani satellite on board

Updated 03 May 2024
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‘First step into space’: China launches high-stakes lunar mission with Pakistani satellite on board

  • Launch part of China’s Chang’e-6 mission to obtain first-ever soil and rock samples from lunar far side
  • This is Pakistan’s first satellite mission to the moon as its ICUBE-Qamar satellite is on board Chang’e-6

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif said on Friday a Pakistani satellite going to space on board a Chinese rocket on a nearly two-month mission to retrieve rocks and soil from the far side of the moon was the South Asian nation’s “first step into space.”
The Long March-5, China’s largest rocket, blasted off at 5:27 p.m. Beijing time (0927 GMT) from Wenchang Space Launch Center on the southern island of Hainan with the more than 8 metric ton Chang’e-6 probe.
Chang’e-6 is tasked with landing in the South Pole-Aitken Basin on the far side of the moon, which perpetually faces away from the Earth, after which it will retrieve and return samples. China is the first country to make such an ambitious attempt.
This is also Pakistan’s first satellite mission to the moon.
The launch was attended by scientists, diplomats and space agency officials from France, Italy, Pakistan, and the European Space Agency, all of which have moon-studying payloads aboard Chang’e-6.
“ICUBE-Qamar satellite is Pakistan’s first step into space,” Sharif said in a statement after Friday’s lift off. 
“This is a very historic moment in the journey of technological development, with this important achievement Pakistan has entered a new era of purposeful use of space.”
The PM said the achievement would enhance Pakistan’s capabilities in the field of satellite communications and create new opportunities for scientific research, economic development and national security.
“HISTORIC MOMENT”
Around 100 students from Pakistan’s Institute of Space Technology (IST) have contributed to developing the ICUBE-Q satellite. Pakistan’s proposal to build the satellite was accepted by the China National Space Agency (CNSA) from plans submitted by eight member states of the Asia-Pacific Space Cooperation Organization (APSCO). 
The design, development, and qualification of the ICUBE-Q satellite were spearheaded by faculty members and students of the IST in collaboration with China’s Shanghai Jiao Tong University (SJTU), with support from Pakistan’s National Space Agency, SUPARCO.
The satellite launch was broadcast live on the IST website from the Wenchang space launch site in Hainan, China.
“This is Pakistan’s first deep space mission which is indeed a historic moment and following that maybe in the future other deep space missions can be planned,” Khurram Khurshid, the head of the electrical engineering and computer science department at IST and a co-lead on the satellite project, told Arab News.
“Along with faculty members, around 100 students contributed to various aspects of the satellite, including electrical engineering for electronics, aerospace engineering for control systems, computer science for software, and mechanical/materials engineering for identifying materials suitable for the moon’s harsh environment,” Khurshid said. 
The ICUBE-Q has two cameras as payload for taking images of the lunar surface that will be transmitted back to earth for analysis, the official said. 
Khurshid said after selection in 2022, it took two years of round-the-clock work by students and researchers to complete the project within the deadline. 
“The design and development of the satellite were finished approximately eight months ago after rigorous qualification tests, some conducted in-house and others by SPARCO,” he said.
The satellite was then sent to China eight months back for further verification to ensure it met all requirements. 
The major cost in such missions was the substantial funding required to launch a satellite, Khurshid said, adding that the cost of manufacturing the satellite was not high and was funded by SUPARCO:
“It is a small satellite, like a 7 kg satellite, so it was not a big cost as major cost required for launching a satellite will be provided free by China.” 
Four of the Pakistan team members are in China to witness the historic launching.
“MYSTIQUE”
“The far side of the moon has a mystique perhaps because we literally can’t see it, we have never seen it apart from with robotic probes or the very few number of humans that have been around the other side,” said Neil Melville-Kenney, a technical officer at the European Space Agency (ESA) working with Chinese researchers on one of the Chang’e-6 payloads.
After the probe separates from the rocket, it will take four to five days to reach the moon’s orbit. In early June a few weeks later, it will land. Once on the moon, the probe will spend two days digging up 2 kilogrammes (4.4 lb) of samples before returning to Earth, where it is expected to land in Inner Mongolia.
The window for the probe to collect samples on the far side is 14 hours, compared to 21 hours for the near side.
The samples brought back by Chang’e-5 allowed Chinese scientists to uncover new details about the moon, including more accurately dating the timespan of volcanic activity on the moon, as well as a new mineral.
Ge Ping, deputy director of the China National Space Administration’s (CNSA) Lunar Exploration and Space Program, said the scientific value of Chang’e-6 lay in the geological age of the South Pole-Aitken Basin, which his team estimated was about 4 billion years, much older than the samples previously brought back by the Soviet Union and the United States, which were about 3 billion years old, as well as the 2-billion-year-old samples from Chang’e-5.
Besides uncovering new information about the celestial body closest to Earth, Chang’e-6 is part of a long-term project to build a permanent research station on the moon: the China and Russia-led International Lunar Research Station (ILRS).
The construction of such a station would provide an outpost for China and its partners to pursue deep space exploration.
With inputs from Reuters