KARACHI: Pakistan’s inflation rate, driven by energy and food prices, peaked to a two-year high of 13 percent in January, the country’s statistics bureau said on Tuesday, with analysts pointing to its financial implications for the poor.
The inflation measured by the consumer price index (CPI) increased by 13 percent on a year-on-year (YoY) basis in January 2022 as compared to an increase of 12.3 percent in the previous month and 5.7 percent in January 2021. Inflation was previously recorded at its highest 14.6 percent in January 2020.
On a month-on-month basis, inflation increased by 0.4 percent in January as compared to a decrease of 0.02 percent in the previous month as well as in January 2021, according to the data released by the Pakistan Bureau of Statistics (PBS).
Prices of food products, such as cooking oil increased by 54.33 percent, vegetable ghee 47.4 percent, mustard oil 46.68 percent and pulse masoor 41.3 percent, when compared with the corresponding month of the previous year, i.e. January 2021.
“Food inflation was the highest recorded since April 2021 when it rose to 15.9 percent. We attribute this to higher transportation cost and higher global food & commodity prices,” a report by Karachi-based brokerage house Topline Securities said.
Housing, water, electricity and fuel index, which contribute around 24 percent weightage to the CPI, rose by 15.5 percent in January 2022, compared to an increase of 16.6 percent in December 2021.
The price of electricity increased by 56.20 percent, liquefied hydrocarbons by 53.35 percent and motor fuel by 36.22 percent, when compared with the same period of last year.
The inflation rate was 128 percent higher than the previous year’s 5.7 percent, mainly due to the global impact of commodity prices, including food and energy products, and oil and gas, in the international market.
Analysts point to financial implications of higher inflation for the poor class, which has already been under immense pressure.
“Poor and lower middle class will remain under stress due to high inflation,” Muhammad Sohail, the Topline Securities chief executive officer, told Arab News.
“With rising oil prices and expected increase in power tariffs, we anticipate monthly CPI inflation to remain in the range of 11-13 percent during the remainder of FY22.”
The government expects the inflationary trend to continue to remain in double digits in the coming months.
“The central bank in its monetary policy had said that inflation for the next three months is likely to remain elevated but improved balance-of-payment numbers will determine central bank’s next move for policy rate changes,” Samiullah Tariq, research director at the Pakistan-Kuwait Investment Company, told Arab News.
This week, Pakistan is expecting the revival of $6 billion International Monetary Fund (IMF) loan program. It would make available $1,059 million that would bring total disbursements to Pakistan to about $3,027 million and help unlock significant funding from bilateral and multilateral partners.
“Going forward, IMF stability program and global oil prices will remain important for Pakistan,” Sohail said.
The Pakistani central bank has forecasted that the inflation rate for the current fiscal year would range between 9 percent and 11 percent.
Pakistan’s annual inflation rose to two-year high in January
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Pakistan’s annual inflation rose to two-year high in January
- Food and energy prices contributed to the hike amid rising international commodity prices and transportation costs
- Electricity price increased 56.20 percent, liquefied hydrocarbons 53.35 percent as compared to last year, official stats show
India starts work on hydro projects after suspending treaty with Pakistan, sources say
- New Delhi last month suspended Indus Waters Treaty that ensures supply to 80 percent of Pakistani farms
- India undertook “reservoir flushing” process at two hydropower projects from May 1-3, say sources
SRINAGAR: India has begun work to boost reservoir holding capacity at two hydroelectric projects in the Himalayan region of Kashmir, sources with knowledge of the matter told Reuters, after fresh tension with Pakistan led it to suspend a water-sharing pact.
Last month, New Delhi suspended the 1960 Indus Waters Treaty between the nuclear-armed rivals that ensures supply to 80 percent of Pakistani farms after an attack in Kashmir killed 26, and it identified two of the three assailants as Pakistani.
Islamabad has threatened international legal action over the suspension and denied any role in the attack, warning, “Any attempt to stop or divert the flow of water belonging to Pakistan ... will be considered as an act of war.”
A “reservoir flushing” process to remove sediment began on Thursday, carried out by India’s biggest hydropower company, state-run NHPC Ltd, and authorities in the federal territory of Jammu and Kashmir, the three sources said.
The work may not immediately threaten supply to Pakistan, which depends on rivers flowing through India for much of its irrigation and hydropower generation, but it could eventually be affected if other projects launch similar efforts.
There are more than half a dozen such projects in the region.
India did not inform Pakistan about the work at the Salal and Baglihar projects, which is being done for the first time since they were built in 1987 and 2008/09, respectively, as the treaty had blocked such work, the sources added.
They spoke on condition of anonymity as they were not authorized to talk to the media.
India’s NHPC and the neighboring governments did not reply to emails from Reuters to seek comment.
Since independence from British colonial rule in 1947, India and Pakistan have fought two of their three wars over Kashmir, in addition to numerous short conflicts.
The flushing operation ran for three days from May 1, the sources said.
“This is the first time such an exercise has taken place and will help in more efficient power generation and prevent damage to turbines,” one of the sources told Reuters.
“We were also asked to open the adjustable gates for cleaning, which we did from May 1,” the source said, adding that the effort aimed to free dam operation from any restrictions.
People living on the banks of the Chenab river on the Indian side of Kashmir said they noticed water had been released from both Salal and Baglihar dams from Thursday to Saturday.
‘FREE WILL’
The flushing of hydropower projects requires nearly emptying a reservoir to force out sediments whose build-up is a major cause of decline in output.
For example, two of the sources said, power delivered by the 690-MegaWatt Salal project was far below its capacity, because Pakistan had prevented such flushing, while silting also hit output at the 900-MW Baglihar project.
“Flushing is not a common thing because it leads to a lot of water wastage,” said one of the sources. “Downstream countries are expected to be informed in case it leads to any inundation.”
Building both projects had required extensive back and forth with Pakistan, which worries about losing out on its share of water.
Under the 1960 treaty, which split the Indus and its tributaries between the neighbors, India had also shared data such as hydrological flows at various spots on the rivers flowing through India and issued flood warnings.
India’s water minister has vowed to “ensure no drop of the Indus river’s water reaches Pakistan.”
Government officials and experts on both sides say India cannot stop water flows immediately, however, as the treaty has allowed it only to build hydropower plants without significant storage dams on the three rivers allocated to Pakistan.
The suspension means India “can now pursue our projects at free will,” said Kushvinder Vohra, a recently retired head of India’s Central Water Commission who worked extensively on Indus disputes with Pakistan.
Prime Minister Narendra Modi’s government has sought to renegotiate the treaty in recent years and the archfoes have tried to settle some of their differences at the Permanent Court of Arbitration in the Hague.
These concerns related to the size of the water storage area at the region’s Kishenganga and Ratle hydroelectric plants.
Pakistan plans international case against India, prepares dossiers to dispatch to world capitals
- Pakistan government takes delegation of local, foreign journalists to de facto border with India in Kashmir
- New Delhi accuses Islamabad of backing Apr. 22 attack in Indian-administered Kashmir that killed 26 tourists
MUZAFFARABAD: Information Minister Attaullah Tarar said on Monday Islamabad would refute India’s “baseless” allegations it was involved in an attack in Indian-administered Kashmir last month by preparing dossiers that Pakistani delegations would send to various capitals worldwide.
Tensions between India and Pakistan have surged to alarming levels over an attack in Indian-administered Kashmir’s Pahalgam town on Apr. 22 that killed 26 tourists. New Delhi has accused Islamabad of backing the perpetrators, an allegation Pakistan has vehemently denied and called for a credible, international probe to ascertain facts.
The information minister took a delegation of local and international journalists to the Line of Control (LoC), the de facto border separating the two parts of the disputed Himalayan region of Kashmir, to dismiss Indian allegations of the presence of militant camps in the area.
“We are sending our delegations with full preparation to most capitals of the world, to international fora,” Tarar told Arab News. “These delegations will have parliamentarians, will have diplomats, will have former diplomats. So we will go to every forum, we will go to the capitals of the world and we will tell the world that India has leveled baseless accusations.”
Pakistan's foreign office said it has requested emergency closed-door consultations of the UN Security Council in light of surging tensions with India. It said Asim Iftikhar Ahmad, Pakistan's permanent representative to the UN, will deliver a statement at the Security Council stakeout area following the meeting on Monday afternoon.
Pakistan’s foreign office said on Sunday Islamabad intends to brief the UN Security Council about India’s” aggressive actions, provocations and inflammatory statements.” It said Deputy Prime Minister Ishaq Dar has tasked the country’s envoy to the UN to take measures to summon a Security Council meeting for a briefing on Pakistan’s heightened tensions with India.
“I think we are preparing a lot of documents and you see we’ve moved the UNSC,” Tarar said. “But we will be sending dossiers to different capitals of the world and you will see that Pakistan will present its case in a very effective manner.”
The Pakistani minister criticized New Delhi for failing to provide evidence to support its accusations that Islamabad was involved in the attack. He reiterated that Pakistan is fully capable of defending itself if India launched a military action against it.
“And if there is any aggression on part of India, they will have a decisive response,” Tarar vowed.
He said the Pakistani government had arranged local and international journalists to visit the LoC to demonstrate that there are no “terrorist camps” in the area, contrary to India’s claims.
“So, I think we’ve come here to show you that life goes on as usual near the Line of Control,” Tarar said. “Our people are going about their usual business and our people are peaceful.”
Tarar pointed out that India has not responded to Pakistan’s demand for a transparent and impartial investigation into the Pahalgam attack.
“So I think it’s a security and intel failure which they’re blaming on Pakistan,” he said.
Pakistan and India have both taken several measures against each other since the Apr. 22 attack. The nuclear-armed rivals have expelled each other’s diplomats and citizens, ordered their land border shut and closed their airspace to their countries. New Delhi has also suspended a crucial water-sharing treaty with Islamabad, amid reports of skirmishes along their de facto border in Kashmir.
India and Pakistan have fought two out of three wars since 1947 over the disputed Kashmir territory. Both countries claim the region in full but administer only parts of it. Pakistan accuses India of suppressing the rights of the Muslim-majority region while New Delhi accuses Islamabad of arming and funding separatists in Kashmir. Both deny each other’s allegations.
Several countries around the world including the US, China, Saudi Arabia, UK, Iran, Turkiye and others have called on both India and Pakistan to show restraint and avoid a military confrontation.
Pakistan says 98 percent of pilgrims under government scheme issued Hajj visas
- Remaining 2 percent could not be granted Hajj visas due to biometric verification, particularly for pilgrims from remote areas, says official
- Says Pakistan Hajj Mission has so far received approximately 14,670 Pakistani pilgrims in Madinah, who arrived via 60 flights from various airlines
ISLAMABAD: Ninety-eight percent of Pakistani pilgrims under the government scheme have been issued Hajj visas so far, state-run media reported, adding that the remaining two percent could not be granted the travel permit due to a biometric data issue.
Pakistan launched its Hajj flight operations on Apr. 29 which will continue till May 31. Pilgrims will continue to leave for Madinah during the first 15 days of the operation and afterwards will land in Jeddah and travel directly to Makkah.
This year’s annual pilgrimage will take place in June, with nearly 89,000 Pakistanis expected to travel to Saudi Arabia under the government scheme and 23,620 Pakistanis through private tour operators. The total quota granted to Pakistan was 179,210, which could not be met.
“Hajj visas have been issued to 98 percent of intending Pakistani pilgrims so far, while the remaining cases are expected to be cleared shortly,” the state-run Associated Press of Pakistan (APP) reported on Sunday.
Quoting religious affairs ministry spokesperson Muhammad Umer Butt, APP said the remaining two percent of visas could not be granted due to a biometric data issue, particularly for pilgrims residing in remote areas of the country.
“The Ministry of Religious Affairs is actively pursuing the pending visa cases, and the process will be completed soon,” Butt was quoted as saying.
He said the religious affairs ministry’s Hajj IT cell is in constant contact with pilgrims to facilitate the process. Butt said pilgrims who were unable to travel to Saudi Arabia due to visa delays or personal issues would be accommodated on alternative flights.
The official said Hajj camps set up by the ministry are operating seven days a week to assist pilgrims.
According to Butt, the Pakistan Hajj Mission has so far received approximately 14,670 Pakistani pilgrims in Madinah by Sunday. They arrived through 60 flights operated by various airlines from Pakistan’s major cities under the government scheme.
“As many as 11 flights, carrying 2,500 more pilgrims are scheduled to arrive in the holy city of Madinah on Monday,” Butt was quoted as saying.
Butt said the first group of Pakistani Hajj pilgrims who completed their eight-day stay in Madinah will depart for Makkah on May 7.
Pilgrims from across the world are converging in Saudi Arabia to perform Hajj, which begins on the 8th of Dhu Al-Hijjah, the final month of the Islamic calendar.
Russia says willing to help resolve India-Pakistan differences over Kashmir
- Russian Foreign Minister Sergei Lavrov speaks to Pakistani counterpart Ishaq Dar amid regional tensions
- Russia has been India’s largest weapons provider for decades, with both enjoying close ties since Soviet times
Russian Foreign Minister Sergei Lavrov spoke to his Pakistani counterpart on Sunday and offered Russia’s help in resolving tensions between Pakistan and India over Kashmir, the Foreign Ministry said.
“Particular attention was paid to the significant rise in tension between New Delhi and Islamabad,” the ministry said in a statement, referring to Lavrov’s conversation with Ishaq Dar, who is also Pakistan’s deputy prime minister.
“It was stressed that Russia is ready to act for a political settlement of the situation resulting from the act of terrorism of April 22 in the Pahalgam area of the Kashmir valley, in the event of a mutual desire on the part of Islamabad and New Delhi,” the Russian Foreign Ministry said in a statement posted on Telegram.
Lavrov’s conversation with Dar took place two days after he spoke with Indian Foreign Minister Subrahmanyam Jaishankar and also called for a settlement of differences between the two neighboring countries.
Suspected militants killed at least 26 people in last week’s attack on a mountain tourist destination in the Pahalgam area of the Kashmir valley.
Muslim-majority Kashmir is claimed by both countries and has been the focus of several wars, an insurgency and diplomatic standoffs.
Russia has been India’s largest weapons provider for decades and New Delhi and Moscow have had close ties since Soviet times.
Iranian FM arrives in Pakistan to strengthen bilateral ties, discuss regional developments
- Iran has offered to mediate amid tensions between India, Pakistan over Apr. 22 attack in Indian-administered Kashmir
- Seyyed Abbas Araghchi to meet Pakistan’s president, prime minister and deputy prime minister, says foreign office
ISLAMABAD: Iranian Foreign Minister Seyyed Abbas Araghchi arrived in Pakistan on Monday, the Pakistani foreign office said, with his visit aimed at strengthening bilateral ties and discussing regional developments amid Islamabad’s soaring tensions with New Delhi.
Pakistan and Iran enjoy close ties and have signed several pacts in trade, energy and security in recent years. The two countries have also been at odds over instability on their shared porous border, but have quickly moved to ease tensions each time.
Araghchi’s visit comes in the background of surging tensions between India and Pakistan after the Apr. 22 attack in Indian-administered Kashmir in which 26 tourists were killed. India blamed Pakistan for the attack, a charge which Islamabad strongly denies. Tensions have soared between the nuclear-armed neighbors who have announced a raft of punitive measures against each other, while their forces have exchanged fire along their de facto border in Kashmir for 10 consecutive days.
“Iranian Foreign Minister Abbas Araghchi arrived in Islamabad on an official visit,” the Pakistani foreign office said, adding that he was received by Additional Secretary West Asia Syed Asad Gillani, Iran’s ambassador to Pakistan and other senior officials.
“He will hold important meetings with the Pakistani leadership including the president, prime minister and the deputy prime minister.”
In an earlier statement on Sunday, the foreign office said Araghchi’s visit reflects both countries’ commitment to strengthening bilateral cooperation. It said that the two sides will also exchange views on regional and global developments.
Iran has offered to mediate the crisis between Pakistan and India, with Araghchi saying his country is “ready to use its good offices” to resolve the standoff. The offer came amid fears that India may carry out limited airstrikes or special forces raids near the border with Pakistan. A Pakistani minister said last week that Islamabad has “credible intelligence” India is planning to attack Pakistan within days.
Pakistani leaders, who have already reached out to foreign capitals over India’s aggressive posturing since the Kashmir attack, are expected to discuss with Araghchi the latest crisis with New Delhi.
