Pakistan monetary policy ‘adequate’ to manage inflationary risks, support economic growth — analysts 

A man counts Pakistani rupee notes at a currency exchange shop in Peshawar, Pakistan, on September 12, 2023. (REUTERS/File)
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Updated 17 December 2024
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Pakistan monetary policy ‘adequate’ to manage inflationary risks, support economic growth — analysts 

  • State Bank of Pakistan cut its key policy rate by 200 basis points to 13 percent on Monday
  • This was fifth straight reduction since June as Pakistan tries to revive sluggish economy

ISLAMABAD: Analysts said on Tuesday Pakistan’s monetary policy was “adequate” to manage inflationary and external risks while also supporting economic growth, a day after the central bank cut its key policy rate by 200 basis points to 13 percent.

This is the fifth straight reduction since June as the country keeps up efforts to revive a sluggish economy with inflation easing. Pakistan’s latest move makes this year’s cuts one of the most aggressive among emerging market central banks in the current easing cycle. Cumulatively, the central bank has cut rates by 900 basis points during 2024, even higher than during the pandemic in 2020 when it cut 625 basis points in a year. 

Monday’s move follows cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22 percent, set in June 2023 and left unchanged for a year.

“The key driver for this [rate cut] decision is continuous decline in food prices … sticky core inflation and volatile inflation expectation of consumers and business are also key factors,” Topline Securities said in an analysis of the monetary policy announcement on Monday evening.

“In addition, key demand indicators have shown signs of improvements. Based on these factors, central bank believes that current approach of monetary settings is adequate to manage inflationary and external risks and will also support economic growth.”

Key developments as highlighted by the monetary policy committee were a third consecutive month of a current account surplus, supportive global commodity prices, higher credit offtake primarily driven by the Advance-to-Deposit Ratio (ADR) threshold and a widening revenue shortfall by the Federal Board of Revenue. 

“Policy rate cuts since June 24 are beginning to take effect and real policy rate remains suitably positive to ensure inflation stabilizes within the target range of 5 percent-7 percent,” the report said. 

For the next fiscal year, average inflation is likely to remain much lower than the earlier forecast of 11 percent-13 percent. Core inflation saw a slight decline in November, while consumer inflation expectations edged higher. However, the inflation outlook remains exposed to risks such as additional revenue measures, a resurgence in food inflation, and rising global commodity prices, Topline added. 

Responding to a question, the governor of the central bank said on Monday the sharp decline in the policy rate was likely to aid the government on the expenditure front and despite the shortfall on revenue, the fiscal balance was expected to remain in the budgeted range.

Pakistan is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.

While announcing the monetary policy, the central bank noted that “considerable efforts and additional measures” would be required for Pakistan to meet its annual revenue target, a key focus of the IMF agreement.


Pakistan launches new pharma export council to boost overseas sales

Updated 7 sec ago
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Pakistan launches new pharma export council to boost overseas sales

  • Industry aims to raise exports from $700 million to $3 billion
  • Government pledges policy support and facilitation desk

ISLAMABAD: Pakistan has this month established a new Pharmaceutical Export Promotion Council (PharmEx Pakistan) in a bid to expand exports and enhance the global competitiveness of its drug manufacturers, the country’s commerce minister said.

Pakistan’s pharmaceutical industry, valued at about $4 billion domestically, has recorded steady growth in exports in recent years but remains a relatively small player globally.

Commerce Minister Jam Kamal Khan announced the formation of the new council under the Trade Development Authority of Pakistan (TDAP) while addressing a gathering organized by the Pakistan Pharmaceutical Manufacturing Association (PPMA) earlier this month. 

“The pharmaceutical sector has huge export potential, and PharmEx Pakistan is just one or two steps away from becoming operational,” Khan was quoted as saying by state-run Pakistan Television, adding that the government would continue to facilitate the industry in achieving higher international sales.

At the event, PPMA Chairman Touqeer ul Haq said the new council would work as a public-private initiative to strengthen compliance with international standards, improve market access, and showcase Pakistani products abroad.

Haq identified Afghanistan as a critical export destination and welcomed minister Khan’s assurance of better coordination to keep cross-border trade smooth.

In addition to the new council, the government will also set up an Exporter Facilitation Desk at the ministry of commerce to resolve urgent problems faced by pharma exporters and ensure direct support when needed, minister Khan said.

The setting up of PharmEx is part of Islamabad’s broader push to diversify exports beyond traditional sectors such as textiles, rice and sports goods, amid persistent current account pressures and the need to earn more foreign exchange.

According to PPMA data, pharmaceutical exports increased from $270 million in 2020–21 to about $355 million in the current fiscal year 2024–25, and industry leaders say the country has the potential to reach $3 billion in annual exports if regulatory hurdles and market access barriers are addressed.

Pakistan produces over 90 percent of its medicines locally, supplying a large portion of the country’s health care needs and serving niche markets in Afghanistan, Central Asia and parts of Africa and the Middle East.

The industry, however, faces challenges such as high input costs, regulatory bottlenecks, and tough global competition.


‘This is a culture’: TikTok murder highlights Pakistan’s unease with women online

Updated 15 June 2025
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‘This is a culture’: TikTok murder highlights Pakistan’s unease with women online

  • Sana Yousaf was shot dead outside her house in the capital Islamabad by a man whose advances she had repeatedly rejected
  • Violence against women is pervasive in Pakistan, according to the country’s Human Rights Commission

ISLAMABAD: Since seeing thousands of comments justifying the recent murder of a teenage TikTok star in Pakistan, Sunaina Bukhari is considering abandoning her 88,000 followers.

“In my family, it wasn’t an accepted profession at all, but I’d managed to convince them, and even ended up setting up my own business,” she said.

Then last week, Sana Yousaf was shot dead outside her house in the capital Islamabad by a man whose advances she had repeatedly rejected, police said.

News of the murder led to an outpouring of comments under her final post — her 17th birthday celebration where she blew out the candles on a cake.

In between condolence messages, some blamed her for her own death: “You reap what you sow” or “it’s deserved, she was tarnishing Islam.”

Yousaf had racked up more than a million followers on social media, where she shared her favorite cafes, skincare products and traditional shalwar kameez outfits.

TikTok is wildly popular in Pakistan, in part because of its accessibility to a population with low literacy levels. On it, women have found both audience and income, rare in a country where fewer than a quarter of the women participate in the formal economy.

But as TikTok’s views have surged, so have efforts to police the platform.

Pakistani telecommunications authorities have repeatedly blocked or threatened to block the app over what it calls “immoral behavior,” amid backlash against LGBTQ and sexual content.

TikTok has pledged to better moderate content and blocked millions of videos that do not meet its community guidelines as well as at the request of Pakistan authorities.

After Yousaf’s murder, Bukhari, 28, said her family no longer backs her involvement in the industry.

“I’m the first influencer in my family, and maybe the last,” she said.

Only 30 percent of women in Pakistan own a smartphone compared to twice as many men (58 percent), the largest gap in the world, according to the Mobile Gender Gap Report of 2025.

“Friends and family often discourage them from using social media for fear of being judged,” said a statement from the Digital Rights Foundation (DRF).

In southwestern Balochistan, where tribal law governs many rural areas, a man confessed to orchestrating the murder of his 14-year-old daughter earlier this year over TikTok videos that he said compromised her honor.

In October, police in Karachi, in the south, announced the arrest of a man who had killed four women relatives over “indecent” TikTok videos.

These murders each revive memories of Qandeel Baloch, dubbed Pakistan’s Kim Kardashian and one of the country’s first breakout social media stars whose videos shot her to fame.

After years in the spotlight, she was suffocated by her brother.

Violence against women is pervasive in Pakistan, according to the country’s Human Rights Commission, and cases of women being attacked after rejecting men are not uncommon.

“This isn’t one crazy man, this is a culture,” said Kanwal Ahmed, who leads a closed Facebook group of 300,000 women to share advice.

“Every woman in Pakistan knows this fear. Whether she’s on TikTok or has a private Instagram with 50 followers, men show up. In her DMs. In her comments. On her street,” she wrote in a post.

In the fifth-most-populous country in the world, where 60 percent of the population is under the age of 30, the director of digital rights organization Bolo Bhi, Usama Khilji, says “many women don’t post their profile picture, but a flower, an object, very rarely their face.”

“The misogyny and the patriarchy that is prevalent in this society is reflected on the online spaces,” he added.

A 22-year-old man was arrested over Yousaf’s murder and is due to appear in court next week.

At a vigil in the capital last week, around 80 men and women gathered, holding placards that read “no means no.”

“Social media has given us a voice, but the opposing voices are louder,” said Hira, a young woman who joined the gathering.

The capital’s police chief, Syed Ali Nasir Rizvi, used a press conference to send a “clear message” to the public.

“If our sisters or daughters want to become influencers, professionally or as amateurs, we must encourage them,” he said.


Pakistan evacuates 450 pilgrims as Israel and Iran strike at each other

Updated 25 min ago
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Pakistan evacuates 450 pilgrims as Israel and Iran strike at each other

  • Foreign minister says arrangements underway for return of over 150 Pakistani students from Iran, stranded pilgrims in Iraq also being assisted
  • Iran has said at least 138 people have been killed in Israel’s onslaught since Friday, including 60 on Saturday, half of them children

ISLAMABAD: Islamabad has facilitated the evacuation of at least 450 Pakistani pilgrims from Iran and is arranging the safe return of more than 150 Pakistani students, Foreign Minister Ishaq Dar said, as Israel and Iran launched fresh attacks on each other overnight into Sunday, killing scores.

Thousands of Pakistani zaireen (pilgrims) travel annually to Iran and Iraq to visit holy sites. Many have been stranded since Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict.

“Evacuation of 450 Pakistani zaireen from Iran has been facilitated as of yesterday,” Dar, who is also the deputy premier, said in a post on social media platform X.

“Arrangements are being made for the safe evacuation of Pakistani students (154 in the first batch) currently residing in Iran.”

Dar said Pakistan’s embassy in Iraq was also in touch with stranded Pakistani pilgrims after Iraq closed its airspace in response to the regional security situation.

“Measures are underway to ensure their safe stay in Iraq and possible evacuation,” the deputy prime minister said, adding that a crisis unit set up at the foreign ministry was operating around the clock.

“Our embassies in the region are closely coordinating all necessary efforts to support Pakistani nationals and zaireen,” Dar said.

Since Friday. Pakistan’s government has repeatedly urged its citizens to postpone travel to Iran and Iraq until the security situation improves. 

On Saturday, Islamabad issued a formal travel advisory asking Pakistanis to avoid travel to Iran “for a limited period” due to the Israeli attacks.

Pakistan has condemned the Israeli strikes, calling them an unjustified violation of Iranian sovereignty, and has urged the international community to help de-escalate tensions through dialogue.

Iran has said at least 138 people have been killed in Israel’s onslaught since Friday, including 60 on Saturday, half of them children, when a missile brought down a 14-story apartment block in Tehran.

The Israeli military has warned Iranians living near weapons facilities to evacuate after both Israeli Prime Minister Benjamin Netanyahu and US President Trump said Israel’s attacks would intensify, not abate.


Pakistani religiopolitical party to organize anti-Israel ‘million march’ in Hyderabad today

Updated 15 June 2025
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Pakistani religiopolitical party to organize anti-Israel ‘million march’ in Hyderabad today

  • Jamiat Ulama-e-Islam Pakistan party says caravans of supporters arriving in Hyderabad from all over Sindh 
  • Protest takes place in backdrop of surging tensions Middle East tensions amid Iran-Israel military conflict

KARACHI: A leading religiopolitical party, Jamiat Ulama-e-Islam Pakistan, (JUI-F) announced it would organize a “million march” in the southern city of Hyderabad against Israel today, Sunday, to express solidarity with the people of Palestine. 

The march will take place as tensions in the Middle East surged late Friday night after Israel attacked Iran’s nuclear facilities and military leadership. Iran’s prominent nuclear scientists and the chief of its Revolutionary Guards paramilitary force were killed in the attack, which Tehran said claimed 78 lives and injured over 300. 

Iran has since then conducted retaliatory strikes against Israel. So far, at least nine people in Israel have been killed and over 300 others injured since Friday, as per media reports. 

In a statement released to the media, a JUI-F spokesperson said the party’s caravans from all over the southern Sindh province are gathering at Hyderabad’s Qasim Chowk venue for the protest. 

“A strong protest will be held against Israel and solidarity will be expressed with the Palestinians,” the statement said. 

Israel has killed over 55,000 Palestinians in Gaza since Oct. 7, 2023, as per the Gaza Health Ministry. Israeli forces have destroyed vast areas of the territory and displaced about 90 percent of Gazans.

In recent weeks, more than half of Gaza has been transformed into a military buffer zone that includes the now mostly uninhabited southern city of Rafah.

Israel’s war on Gaza has incited anger in various countries across the world, including Pakistan. Various civil rights organizations and political parties such as the Jamaat-e-Islami, have held large gatherings in Karachi, Lahore, Islamabad and other parts of the country to denounce Israel’s military campaigns in the Middle East. 

JUI-F chief Maulana Fazlur Rehman will address participants of the rally, the party said. 

“Strict security arrangements are in place in Hyderabad,” the statement said. “Supporters gathered at the Qasim Chowk venue are highly enthusiastic.”

Israel says it attacked Iran in a bid to discourage the Islamic country from developing nuclear weapons. Israel sees Iran’s nuclear program as a threat to its existence. It said the bombardment was designed to avert the last steps to the production of a nuclear weapon.

Tehran insists the program is entirely civilian and that it does not seek an atomic bomb. The UN nuclear watchdog, however, reported Iran this week as violating obligations under the global non-proliferation treaty.

Pakistan has criticized Israel in strong words and repeatedly said Iran has the right to retaliate under the United Nations Charter. Islamabad has also vowed to offer diplomatic support to Iran at international forums. 
 


Over 11,410 Pakistani Hajj pilgrims return from Saudi Arabia

Updated 15 June 2025
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Over 11,410 Pakistani Hajj pilgrims return from Saudi Arabia

  • Another 4,995 Pakistani Hajj pilgrims to return via 20 flights on Sunday, says religion ministry 
  • Pakistan sent over 115,000 pilgrims under both government, private schemes for Hajj this year

ISLAMABAD: A total of 11,418 Pakistani pilgrims have returned in the post-Hajj flight operation so far, the country’s religion ministry said on Sunday. 
Pakistan began its post-Hajj flight operation with the arrival of PIA flight PK-732 in Islamabad on June 11, carrying 307 pilgrims. The country is expected to conclude the operation on July 10, with the last flight carrying Hajj pilgrims to land in Islamabad.
This year’s Hajj took place from June 4 to June 9, drawing millions of pilgrims to the holy cities. Pakistan sent over 115,000 pilgrims under both the government and private schemes. 
“As of Saturday, June 14, a total of 11,418 pilgrims have returned home,” a spokesperson of Pakistan’s Ministry of Religious Affairs and Interfaith Harmony said in a statement. “On Sunday, June 15, another 4,995 pilgrims will arrive in the country through 20 flights.”
The spokesperson said six flights carrying Hajj pilgrims will each land in both Islamabad and Lahore, while four will arrive in Karachi, three in Multan and one in Quetta on Sunday.
Of the 20 flights, eight will be operated by the state-run Pakistan International Airlines, five by Saudia, four by Airblue, two by AirSial and one by Serene Air.
“Despite global air traffic disruptions, Pakistan’s post-Hajj flight operation is successfully going on,” the ministry said, referring to the recent diversion of flights due to the ongoing Iran-Israel conflict. 
The spokesperson advised Pakistani pilgrims to ensure their return journey remained a “smooth” one by maintaining discipline.
“Pilgrims should ensure their baggage weight complies with the limit stated on their air tickets,” he said, advising pilgrims to reach their respective airports in Saudi Arabia six to eight hours before departure.