KARACHI: Saudi Arabia remains the main source of Pakistan’s remittances despite global business shutdowns amid the coronavirus pandemic, central bank data showed on Monday.
Overseas Pakistani workers sent about $18.78 billion back home between July 2019 and April 2020, 5.5 percent more than in the previous fiscal year, with $4.4 billion remitted from Saudi Arabia alone, according to a statement issued by the State Bank of Pakistan (SBP).
Contrary to the expectations of most economists that money inflows would decline as many workers have been furloughed and repatriated amid the pandemic, $451.4 million was sent back home from Saudi Araba by Pakistani workers — 5.4 percent more than last year and only 0.2 percent less than in March 2020, SBP data showed.
Total remittances the country received in April amounted to $1.79 billion, 5.5 percent less than in the previous month.
The US emerged as Pakistan’s second largest remittance contributor after Saudi Arabia, with inflows of $401.9 million in April, followed by the United Arab Emirates with $353.8 million, and the United Kingdom with $226.6 million.
According to experts, there has been an increase in the use of official channels for money transfers in the wake of international flight suspensions and movement restrictions.
“As the airline industry is not operational, people who used to send money through personal contacts have resorted to the official channels,” Muzamil Aslam, senior financial expert, told Arab News.
But since layoffs are still expected to affect overseas Pakistanis, a government intervention may be required to further discourage unofficial transfers to sustain money inflows from abroad.
“Sustaining remittances with expected job losses abroad requires an unprecedented intervention to bring between $5 billion and $10 billion of hawala or hundi money through legal channels,” said Dr. Khaqan Hassan Najeeb, former adviser at the Ministry of Finance.
Hawala and hundi are informal ways of transferring money across borders.
Najeeb told Arab News that incentive programs such as lotteries could help put an end to illegal money transfers.
According to the Ministry of Finance, from July withholding tax exemption will be introduced for incoming remittances, while National Remittance Loyalty Program will be launched in September in collaboration with major commercial banks and government agencies to incentivize remitters.
Middle Eastern countries are major job markets for Pakistani workers. Since the beginning of this year alone, the region has provided employment to more than 171,500 Pakistanis — nearly 105,000 in Saudi Arabia alone, according to the Bureau of Emigration and Overseas Employment.
Concerns are rising, however, whether workers will still be able to seek overseas jobs, as labor markets, also in the Middle East, have been upended by the coronavirus outbreak.
“More than 100,000 visas were issued prior to COVID-19. Some 65,000 people were ready to fly, but now their future is uncertain,” said Ikram Qureshi of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
“Around 70,000 workers have already registered themselves for repatriation from the Middle east region,” he added.
Pakistan's remittances from Saudi Arabia remain high despite economy slowdown
https://arab.news/rbkjp
Pakistan's remittances from Saudi Arabia remain high despite economy slowdown
- Remittances from Saudi Arabia in April were 5.4 higher than last year
- Inflows through official channels are on the rise amid international movement restrictions
From suhoor drums to online apps: Ramadan through lens of three generations of a Pakistani family
- Digital age has significantly altered how Ramadan is observed, offering spiritual engagement through apps, social media and online platforms
- Mobile apps have become indispensable tools for Muslims worldwide during Ramadan, whether to check prayers timings or order food
ISLAMABAD: The clatter of plates, spoons and forks filled the air as Mahmood Ahmed Hashmi, 67, broke his fast earlier this week at his home in Islamabad, seated with his three sons, daughters-in-law and grandchildren around a large, colorful tablecloth spread on the floor.
Ramadan traditions and practices evolve across generations, influenced by changing demographics, media, lifestyles and digital apps, while retaining the core spiritual elements of fasting, prayer, and charity. As in other parts of the world, the digital age has also significantly altered how Ramadan is observed by Pakistani families, offering new avenues for spiritual engagement, community connection, and resource access through apps, social media, and online platforms.
Hashmi, a retired civil servant, detailed how Ramadan had changed through the generations of his family, beginning with the tradition of Ramadan drummers walking through the streets, beating drums to wake people for the pre-dawn meal (suhoor) before fasting began for the day. Once a typical feature of the holy month, today the tradition’s usefulness had been eclipsed by TV, mobile phones and alarm clocks.
“In those days, the elders used to come out in the neighborhood to wake up people for suhoor,” Hashmi told Arab News at iftar. “They used to do some drumming and other things so that people could get up, but now you have everything in your cell phone.”
Mobile apps have become indispensable tools for Muslims around the world during Ramadan, offering features like prayer time reminders, Qur’anic recitations, and fasting trackers, ensuring accurate timing and accessibility.
While many people used to visit neighborhood or community religious gatherings earlier, now platforms like YouTube and TikTok host Islamic scholars and influencers who share daily Ramadan reflections, Qur’anic tafseer (exegesis), and tips for spiritual growth, making Islamic education more accessible, especially for younger Muslims.
Social media platforms have also become main avenues for sharing Ramadan greetings, exchanging recipes, and discussing spiritual reflections.
Handwritten Eid cards — once widely exchanged among friends and relatives ahead of the post-Ramadan Eid Al-Fitr festival — were now a rarity in the age of digital greeting cards shared on Whatsapp and other messaging platforms, Hashmi lamented.
“How good the feeling used to be to get Eid cards from your loved ones,” he said. “Your near and loved ones used to wait for them. People used to display them in their drawing rooms or bedrooms. Now a picture [card] will come [on mobile phone].”
Iftar and suhoor meals would also be made entirely at home, or with snacks and food bought from neighborhood eateries, and would be consumed as a family, while food was now increasingly ordered from online apps as per individual choices, Hashmi added.
While the retired official lamented the decline in many of the Ramadan customs of his youth, his son Miraj Mustafa Hashmi, a professor at the National University of Sciences and Technology (NUST), said digital innovations such as mobile apps had streamlined everyday rituals while still nurturing cherished Ramadan traditions.
“Apps like FoodPanda have replaced traditional market trips for iftar [items],” Miraj said, explaining that this was beneficial for people who did not have the luxury of time due to jobs and other responsibilities.
“It is a digital era, things are going on like that and people are comfortable in it. I think it is a very positive change … because people like us have to stay in the office all day and work … Obviously, we want to go to the market but the pressure of work and the load is there.”
Digital platforms and apps have also made it easier for people to donate to charity and support those in need during Ramadan, a core aspect of the holy month, Miraj said.
For his 10-year-old son Ibrahim, a student of grade five who began fasting at the age of seven, Ramadan was about being able to order his favorite dishes online and checking the Internet for iftar and suhoor timings.
“I love having noodles, pizza, macaroni, samosas, pakoras, and jalebis for iftar,” Ibrahim said as he had a piece of pizza for iftar.
But was there anything Miraj missed about the way Ramadan used to be observed?
Relatives and friends used to meet each other more often at Ramadan events when they did not have the luxury to connect through video calls, he said.
“When I think of my childhood, we used to go to social events, we used to go shopping with our grandparents, we used to do all these activities,” the professor said.
“If we see, our parents spent a very tough life due to limited facilities, but they made it a little easier [for us] and our children are living a much easier life and technology is helpful.”
Pakistan floats bitcoin mining proposal using surplus electricity at first crypto council meeting
- The council was officially launched this month to integrate crypto technologies into Pakistan’s financial system
- The country’s finance chief emphasizes the need for a future-ready financial ecosystem that attracts investment
KARACHI: A proposal to leverage surplus electricity for bitcoin mining was floated at the inaugural meeting of the Pakistan Crypto Council (PCC) on Friday, according to a statement by the Finance Division, as members of the newly established body vowed to open a new digital economy chapter in the country’s history.
The PCC was officially launched on March 15 to explore the integration of crypto and blockchain technologies into Pakistan’s financial ecosystem and draft a regulatory framework for the sector. Its formation marked a significant shift for the country that was once reluctant to embrace cryptocurrencies due to regulatory and security concerns.
The council’s first meeting was presided over by Finance Minister Muhammad Aurangzeb and attended by senior officials, including the governor of the State Bank, the chairman of the Securities and Exchange Commission of Pakistan and the federal IT and law secretaries.
“The meeting focused on Pakistan’s untapped potential in the crypto space, with [PCC] CEO Bilal Bin Saqib presenting a comprehensive vision and mission for the Council,” the statement said.
“Saqib emphasized the importance of regulatory models and use cases, particularly in the region, that could be tailored to Pakistan’s unique context,” it added. “He also presented the concept of leveraging Pakistan’s surplus electricity for Bitcoin mining, potentially turning the country’s liabilities into assets.”
Bitcoin mining is the process by which new bitcoins are created and transactions verified through complex mathematical computations that require powerful, energy-intensive computers.
Pakistan’s surplus electricity, which often goes unused due to low demand or inadequate infrastructure, could be redirected to power these mining operations, according to the proposal, and generate revenue from otherwise wasted energy.
Finance Minister Aurangzeb praised the council’s vision and underlined its strategic importance for Pakistan’s digital transformation.
“This is the beginning of a new digital chapter for our economy,” he said. “We are committed to building a transparent, future-ready financial ecosystem that attracts investment, empowers our youth and puts Pakistan on the global map as a leader in emerging technologies.”
Aurangzeb noted that while Pakistan should learn from global best practices, it must develop business and revenue models grounded in local realities.
He called for building on previous work by various stakeholders to ensure the country doesn’t start from scratch.
Other council members highlighted the need for regulatory clarity, consumer protection, licensing regimes and a national blockchain policy. They also stressed the importance of sequencing the rollout, running pilot programs and ensuring compliance with international obligations.
Pakistan stocks post 2.5% weekly gain as IMF talks fuel investor confidence
- The bullish sentiment was triggered by a recent IMF visit, raising hopes for a staff-level agreement
- Analysts expect the market to remain positive as Pakistan seeks $1.5 billion in IMF climate financing
KARACHI: Pakistan’s stocks ended the week on Friday with a 2.5 percent weekly gain, with the benchmark KSE-100 Index hitting a record high as investors expected a positive outcome from the country’s ongoing talks with the International Monetary Fund (IMF) under the first review.
The last trading session of the week witnessed the stocks gauge rising to 119,405 points during the day before closing in the red at 118,442 points, 0.3 percent lower than the last close due to profit-taking.
An IMF staff mission left Pakistan last week after concluding a visit that lasted for over half a month, with its chief, Nathan Porter, issuing a statement saying the two sides “made significant progress toward reaching a Staff Level Agreement,” triggering a bull run at the Pakistan Stock Exchange.
“The week commenced with the completion of the IMF mission’s visit to Pakistan for the first review of the ongoing $7 billion Extended Fund Facility, though a staff-level agreement remains awaited,” he said.
Pakistan, he continued, was also in the process of securing an arrangement under the Resilience and Sustainability Facility (RSF) with the IMF for additional financing to address the impacts of climate change.
Pakistan is one of the world’s most affected nations by climate change and has witnessed extreme weather events like floods, droughts and heatwaves. The country is seeking about $1.5 billion in climate financing from the global lender, which is currently evaluating the country’s request.
The Karachi-based brokerage research firm Arif Habib Ltd. said the market remained “jubilant” during the week as investor sentiment was supported by expectations of a staff-level agreement between Pakistan and the IMF that will lead to the disbursement of $1.1 billion to Pakistan.
The IMF, it said, shared a draft of the Memorandum of Economic and Financial Policies with the authorities in Pakistan, which signaled progress.
“Furthermore, potential resolution of power circular debt charged up the overall sentiment,” it said.
The IMF has also allowed the government to recalibrate its Rs12.97 trillion tax collection target for the current fiscal year to Rs12.35 trillion.
“We expect the market to remain positive in the upcoming week,” said the research firm. “The equity investors will closely follow developments leading up to Pakistan’s pact with the IMF that is projected to keep the momentum at the bourse buoyant.”
Pakistan highlights ‘positive’ IMF response as it seeks $1.5 billion in climate funding
- Finance Minister Muhammad Aurangzeb calls talks with the global lender ‘very constructive’
- The minister oversees the signing of Pakistan’s first green bond denominated in local currency
KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Friday the International Monetary Fund’s (IMF) response to his country’s request for climate financing was “very positive,” as he oversaw the signing of Pakistan’s first green bond denominated in the local currency.
The IMF’s climate finance funding provides long-term, low-interest loans to help vulnerable countries tackle climate-related risks and transition to greener economies.
Pakistan, which has experienced extreme weather events like floods, droughts and heatwaves, is in talks with the Washington-based lender to secure as much as $1.5 billion in climate resilience funding.
The IMF is also reviewing Pakistan’s economic performance under its $7 billion Extended Fund Facility (EFF) program.
“Over the last few weeks, we have had very constructive discussions with the IMF with respect to the climate resilience fund,” the minister said while addressing an event in Islamabad, adding it was the first time his country had approached the global lender for climate financing and had got a “very positive” response.
“In the coming days, hopefully, we will get to hear more about it,” he continued.
Aurangzeb witnessed the signing of Parwaaz Green Action Bond, Pakistan’s first-ever rupee-denominated green bond to be listed on the stock exchange.
The Rs1 billion ($3.6 million) bond aims to mobilize capital for environmentally sustainable projects and strengthen Pakistan’s green investment ecosystem.
This is the second green bond after Pakistan issued the $500 million Water and Power Development Authority (WAPDA) bond, which was oversubscribed by six times.
Recalling the devastating effects of the 2022 floods and growing pollution, the finance minister said Pakistan was beginning to see and accept climate change as an existential threat.
He said out of a total 13,000 glaciers in Pakistan, 10,000 were receding and were expected to cause significant water disruptions.
He pointed out Pakistan needed financing to deal with such challenges for which it looked toward its multilateral and development partners. However, he emphasized the importance of building Pakistan’s own capacity “in terms of investable, bankable projects” in the context of increasing climate disasters.
“After the 2022 flood, the pledges which were made exceeded $10 billion,” he noted. “What we finally received in the country was one third of it.”
About Pakistan’s first rupee-denominated green bond, he said the country would require some key enablers, such as a proper bond yield curve, secondary market liquidity and a green taxonomy framework.
“Hopefully, as it gets sold out, it should encourage more people both locally and internationally to come up with the financing structures,” he added.
Pakistani religio-political party holds protests over US backing of Israel’s renewed Gaza offensive
- Jamaat-e-Islami asks the government to clarify its position on the reported visit of Pakistani journalists to Israel
- Its top leader blames Washington for encouraging ‘Israel’s terrorism’ leading to the Palestinian ‘genocide’ in Gaza
KARACHI: A prominent Pakistani religio-political party held pro-Palestine protests outside the American diplomatic missions in major cities on Friday, condemning Washington’s support for Israel’s recent military actions in Gaza.
Israeli airstrikes have killed over 500 Palestinians, with more than half of them women and children, since Tuesday, according to Palestinian health authorities in Gaza.
The renewed escalation is a blow to the ceasefire agreement reached between Israel and Hamas on Jan. 15, following more than a year of Israeli airstrikes that flattened much of Gaza’s infrastructure, including schools, hospitals and residential neighborhoods.
Around 48,000 Palestinians in Gaza were killed during the 15-month war that began in October 2023.
Reacting to the development, Jamaat-e-Islami (JI) Pakistan decided to bring out pro-Palestine rallies, with its chief Hafiz Naeem-ur-Rahman addressing his followers in Lahore to highlight the gravity of the situation.
“People are on the streets showing solidarity with their Palestinian brothers, sisters and children,” he said. “This is the month of Ramadan, and the calamity happening during this month is a shameful reality for humanity.”
Rahman condemned the “relentless bombardment” in Gaza that has led to the death of hundreds of people and caused widespread destruction in the area.
“If there is any power behind Israel’s terrorism and the genocide of Palestinians, it is the power of America,” he said. “This is why America is complicit in the bloodshed of Palestinians, supporting Israel and Netanyahu.”
He criticized the international community’s inaction and the perceived complacency of Muslim rulers, questioning the silence of their armies and the continuation of trade with the US and Israel.
“All these people share equal responsibility for the blood of Palestinians,” he declared.
The JI chief demanded the government to clarify how a group of Pakistani journalists recently managed to travel to Israel.
“Reports are circulating on social media about Pakistani journalists traveling to Israel,” he said. “The government should present its stance on this matter. If a deal is made with the Zionists and the blood of Palestinians traded, the nation will turn these rulers into an example for others.”
Pakistan does not recognize Israel and explicitly states this on its passport. The foreign office said this week it was seeking more information about the reported visit of the Pakistani delegation while ruling out any possibility of recognizing Israel.
In Karachi, JI’s city head, Munim Zafar Khan, led a protest outside the US Consulate, where he reiterated the importance of protecting Jerusalem by framing it as a matter of faith.
“The people of Gaza remain steadfast despite the devastation Israel has inflicted upon them,” he said. “With faith in Allah and perseverance, no worldly power can defeat you.”
Khan echoed Rahman’s criticism of Muslim rulers, accusing them of being “meek before America” and failing to protect the Palestinian people.
He also praised young people around the world for showing solidarity with Palestine and highlighted the resilience of the Gazan people, who are observing Ramadan under dire conditions.
