KARACHI: Pakistan expects $517 million from Saudi Arabia and $7 million from the United Arab Emirates under the Debt Service Suspension Initiative (DSSI) announced by leaders of the world’s 20 biggest economies, or G20 countries, between May to December 2020, the Pakistani Ministry of Economic Affairs has said.
G20 nations on Sunday endorsed a plan to extend a freeze in official debt service payments by the poorest countries to mid-2021 and backed a common approach for dealing with their debt problems.
The G20 debt relief initiative — launched shortly after the start of the pandemic in the spring — has helped 46 of 73 eligible countries defer $5.7 billion in 2020 debt service payments, freeing up funds for countries to fight the pandemic and shore up their economies.
But lack of private-sector participation and countries’ concerns about marring future access to capital markets have limited the success of the debt freeze, which was initially projected to generate some $12 billion in extra liquidity.
“The government has engaged 21 bilateral creditor countries for the purpose of rescheduling $1,704 million of its debt, which was to be paid between May and December 2020,” Samar Ihsan, the economic affairs ministry spokesperson, told Arab News.
The amount includes $517 million to be returned to Saudi Arabia and $7 million to the UAE by the end of the year, she said.
Pakistan has formally secured $839 million in debt relief out of the expected $1,704 million from 16 bilateral creditors.
“Among the 21 bilateral creditors, the quantum of debt relief expected from countries like Japan, Saudi Arabia, Russia, the United Arab Emirates and United Kingdom is about $865 million,” the spokesperson said, adding: “The amounts that we were required to pay to KSA [Kingdom of Saudi Arabia] and the UAE is $517 million and $7 million, respectively.”
Ihsan said Pakistan had already requested Saudi Arabia and the UAE for debt relief under the DSSI for the period ending December 2020. “We are now waiting for their response,” Ihsan continued.
Pakistan also expects about $900 million in additional debt relief from G20 creditors during the next moratorium period, which begins in January.
“It is expected that between January and June 2021, Pakistan may get an additional relief of $800 million to $900 million under the G20 DSSI framework,” Ihsan added.
Pakistan’s de facto finance minister, Abdul Hafeez Shaikh, told Arab News in June this year that Pakistan was expecting $1.8 billion in debt relief from G20 countries, adding that the amount would be utilized to provide relief to people affected by COVID-19.
Pakistan expects $524 million from Saudi Arabia, UAE under G20 debt relief initiative
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Pakistan expects $524 million from Saudi Arabia, UAE under G20 debt relief initiative
- The G20 initiative has helped 46 of 73 eligible countries defer $5.7 billion in 2020 debt service payments
- Pakistan has formally secured $839 million in debt relief out of an expected $1,704 million from 16 bilateral creditors
Pakistan urges Saudi Arabia to help de-escalate tensions with India over Kashmir attack
- Public anger has swelled in India since the attack and PM Narendra Modi has vowed to pursue the attackers ‘to the ends of the earth’
- The Pakistani information minister says New Delhi has offered no evidence of Pakistan’s involvement in the attack that killed 26 people
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday sought Saudi Arabia’s assistance in de-escalating heightened tensions with India over an attack in the disputed Kashmir region that killed 26 tourists last week, Sharif’s office said.
New Delhi has accused Pakistan of backing the deadliest attack in Indian-administered Kashmir since 2000. Islamabad denies it and has offered to participate in a credible international probe. The two nuclear-armed neighbors have since exchanged gunfire, diplomatic barbs, expelled each other’s citizens and shut border in a series of punitive measures against each other.
Top Pakistani leaders have reached out to senior officials in China, Saudi Arabia, Iran, Egypt and other countries, amid fears that India’s possible actions over the attack in Pahalgam may lead to a wider conflict in the region, and on Friday, Sharif met with Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki.
He shared Pakistan’s perspective on recent developments in South Asia after the Kashmir incident and said Pakistan had rendered great sacrifices in its counter-terrorism efforts over the years not only to protect itself but the entire world, rejecting the “baseless Indian accusations” linking Islamabad with the April 22 assault.
“The prime minister said it was inconceivable for Pakistan to act in an irresponsible manner to jeopardize its achievements and derail the country from the path of economic progress,” Sharif’s office said. “He urged brotherly countries, including Saudi Arabia, to impress upon India to de-escalate and defuse tensions. He reaffirmed Pakistan’s desire for peace and stability in South Asia.”
Pakistan is treading a long, tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default on its foreign debt obligations in 2023. Islamabad has reached out to countries in Central Asia and beyond to boost trade as economic indicators significantly improved in the South Asian country.
Public anger has swelled in India and Prime Minister Narendra Modi has vowed to pursue the attackers “to the ends of the earth.” A Pakistani minister has said that Pakistan has “credible intelligence” that India is planning to attack it within days.
Since the attack, Pakistani and Indian troops have exchanged fire along their de facto border in Kashmir, driving tensions between both sides to their highest point in recent years. The disputed region is split between India and Pakistan and claimed by both in its entirety. The two countries have fought two wars and one limited conflict over the Himalayan territory.
During his conversation with the Saudi envoy, the Pakistan premier reiterated his call for a transparent and neutral international investigation into the April 22 incident.
“The Saudi ambassador thanked the prime minister for sharing his views on this important issue and said that Saudi Arabia wanted to work with Pakistan for peace and security in the region,” Sharif’s office said.
The United Nations (UN) has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, along with other countries has called on both sides to “exercise restraint.”
Pakistan stocks rebound as investor confidence returns amid calls to de-escalate tensions with India
Pakistan stocks rebound as investor confidence returns amid calls to de-escalate tensions with India
- Relations between the neighbors have plummeted after India accused Pakistan of backing an attack in Kashmir that killed 26 tourists on April 22
- Analysts say the weekend developments are likely to be closely watched and will dictate whether Friday’s bounce will spill over into the next week
ISLAMABAD: The Pakistan Stock Exchange (PSX) bounced back strongly on Friday as investor confidence returned amid calls from the United States (US) and the United Nations (UN) for de-escalation of India-Pakistan tensions over Kashmir, traders and analysts said, as the market gained more than 2,500 points during the intraday trade.
Relations between the neighbors have plummeted after India accused Pakistan of backing an attack in Kashmir that killed 26 tourists on April 22. Islamabad denies the accusation.
The benchmark KSE-100 index gained 2,628 points, or 2.36 percent, to reach 113,954 points around noon on Friday, compared to the previous day’s close of 111,326 points.
Stock analysts attributed the bullish sentiment to calls from the UN, US and other countries to de-escalate tensions between the two countries and offers to mediate the crisis.
“Stocks showed sharp recovery after the US and the UN urged Pakistan and India to defuse tensions,” Ahsan Mehanti, CEO of Arif Habib Group, told Arab News.
“Reports of 0.3 percent year-on-year Consumer Price Index (CPI) inflation for April 25 likely to further ease SBP policy and expected receipt of IMF tranche [of $1 billion] this month played catalyst role in record bullish activity at PSX.”
Pakistan is currently navigating an economic recovery program under a $7 billion International Monetary Fund (IMF) program.
But tensions with India over Kashmir saw the Pakistani stock market shedding over 3,500 points on Wednesday. The US State Department said it was in contact with the India and Pakistan, while State Secretary Marco Rubio on Wednesday held telephonic conversations with Prime Minister Shehbaz Sharif and Indian Foreign Minister Subrahmanyam Jaishankar in a bid to ease tensions.
The UN has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, this week repeated its call on both sides to “exercise restraint.” Saudi Arabia has said Riyadh was trying to “prevent an escalation,” while Iran has offered to mediate the crisis.
“The developments over the weekend are likely to be closely watched and will dictate whether today’s bounce spills over into next week also,” Raza Jafri, head of research at Intermarket Securities, told Arab News.
Pakistan foils bid to smuggle donkey hides worth Rs80 million to China
- Pakistan is frequently listed as one of the countries with highest number of donkey populations worldwide
- The animal’s meat and hide, used in the Ejiao traditional medicinal remedy, are quite popular in China
KARACHI: Pakistan Customs has foiled an attempt to smuggle donkey hides, worth around Rs80 million ($283,862), to China, a customs spokesperson said on Friday.
The staff deployed on the Risk Management Profiling System of the Karachi customs collectorate detected a container number SEGU-3154225 cleared from the South Asia Pakistan Port (SAPT) terminal in Karachi, whose export documents showed 285 packages of leather products were being sent to China by Messrs. Wow Trading.
The container was allowed to be loaded on a ship after the export collectorate issued a permit, but customs authorities conducted a detailed inspection after being informed by the Anti-Smuggling Organization (ASO) staff and found the prohibited donkey hides in the container.
“[The inspection] resulted in the recovery of 14,000 kilograms of prohibited donkey hides, declared under the guise of leather products, in the container, the export of which is prohibited under the export policy of the Government of Pakistan,” Irfan Ali, a customs spokesperson, said in a statement.
“A case has been registered against the exporter under the relevant provisions of the Customs Act. Further investigation is underway.”
Pakistan is frequently listed as one of the countries with the highest number of donkey populations worldwide, with Islamabad reporting its donkey population had increased to 5.9 million during the fiscal year 2023-24 from 5.5 million in 2019-2020, according to the Pakistan Economic Survey (PES) 2023-24.
The animal’s meat and hides are quite popular in China. Gelatin derived from donkey hides is highly sought after in China for its use in Ejiao, a traditional medicinal remedy. Several Chinese eateries sell donkey meat and burgers for consumption.
The seizure of donkey hides comes amid a Pakistani government crackdown on smuggling of various goods.
“Karachi Customs Enforcement Collector Moinuddin Wani appreciated and praised the performance of the officers and staff of the enforcement collectorate for this successful operation,” Ali added.
Threat of war with India empties scenic Pakistani valley of summer tourists
- Gunmen last week killed 26 people in the Indian-administered Kashmir’s resort town of Pahalgam
- The attack has fueled tensions after India blamed Pakistan for the attack, Islamabad denies charge
MUZAFFARABAD: Neelum Valley in northern Pakistan attracts some 300,000 tourists each summer who marvel at its natural beauty. But the threat of war with nearby India has emptied its hotels.
Gunmen last week killed 26 people in the Indian-administered Kashmir’s resort town of Pahalgam, fueling tensions between the nuclear-armed nations after India blamed Pakistan for the attack, a charge Pakistan denies.
Neelum Valley is less than 3 kilometers (1.8 miles) from the Line of Control, the de facto border that divides the disputed region of Kashmir, making it vulnerable to any military activity.
Hotel owner Rafaqat Hussain said Thursday the crisis has hit the tourism industry hard.
“Most tourists have left and returned to their cities because there is a risk of war,” he said.
Authorities in the Indian-controlled part of Kashmir temporarily shuttered dozens of tourist resorts following the attack as a precaution.
No such order has come from Pakistani authorities. Bazaars in the Pakistani border town of Chakothi were open for business, although people were concerned.
“First of all, our prayer is for peace, as war always affects civilians first,” shop owner Bashir Mughal told The Associated Press, saying he would fight alongside the army in the event of conflict.
Pakistan used to help residents build bunkers near their homes during periods of intense cross-border firing. But the population has grown and some homes lack shelters.
“Local casualties could be devastating if war breaks out,” Mughal warned.
Saiqa Naseer, also from Chakothi, shuddered at the childhood memories of frequent firing across the border.
“Now, as a mother, I find myself facing the same fears,” she said.
She remembered Indian shells striking the picturesque valley when the two countries came close to war in 2019. She has a bunker at her home.
“If war comes, we will stay here. We won’t run away,” she said.
Rising Jhelum River threatens people in Azad Kashmir
- The development comes after India’s suspension of the Indus Waters Treaty, cutting off vital flood data
- Locals face growing uncertainty and increased risk, say they received no prior notification of water release
MUZAFFARABAD, Azad Kashmir: Rising water levels along the Jhelum River in Muzaffarabad in Azad Kashmir have caused concern for thousands of residents living downstream.
With India releasing more water than usual into the river and the suspension of the Indus Waters Treaty cutting off vital flood data, locals face growing uncertainty and increased risk.
Along the riverbank, 72-year-old Rafiq Hussain and his family of six have been watching floodwaters creep within meters of their home.
“When India released the water, the river rose by eight to ten feet. There’s a lot of fear and uncertainty, especially after hearing reports that more water could be released without any warning,” he said.
Hussain, a farmer and father of four, said they received no prior notification of the water release. He estimates that over ten thousand people residing in about one thousand homes along the riverbank are directly exposed to the flood risk.
The 1960 Indus Waters Treaty, once a rare symbol of cooperation, is now in question. India claims sovereignty over water use, while Pakistan warns of weaponization of a shared resource.
“Well there are bilateral agreements between India and Pakistan, but this Indus Waters Treaty is trilateral. It’s not between only India and Pakistan, but the World Bank is there. And as far as the articles of that agreement is concerned, that no one, either India or Pakistan, can walk away from this. They have to agree mutually if they want to scrap this agreement,” said Raja Muhammad Farooq Haider Khan, former prime minister of Azad Kashmir, a region administered by Pakistan as a nominally self-governing entity in the western portion of the larger, disputed Kashmir region.
For families like Hussain’s, this is no longer just about diplomacy — it’s about survival.
“I cross the river to fish and sell it locally, just enough to get by. Last week, I set my nets, but two days later, a sudden ten-foot surge of water hit. By the time I returned, the nets were gone. I suffered heavy losses,” said Hameed Hussain, Rafiq’s son.
Tensions between India and Pakistan in Kashmir have increased since an attack last week on tourists in Indian-controlled Kashmir that killed at least 26 people, mostly Indian visitors to the region. India has blamed Pakistan for supporting the attack, a charge which Pakistan vigorously denies.
