Bloodbath at Pakistan equity market amid political turmoil, IMF program delay

Stockbrokers speak while monitoring the share prices during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on July 19, 2022. (AFP/File)
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Updated 20 December 2022
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Bloodbath at Pakistan equity market amid political turmoil, IMF program delay

  • The market lost more than 1,100 points as worried investors stayed away from taking any fresh positions
  • The government decides to enforce restricted business hours as part of its energy-conservation policy

KARACHI: Pakistan’s equity market witnessed a bloodbath on Tuesday as the benchmark index plunged below the 40,000-point level, analysts said, amid uncertainty surrounding the country’s political situation and a delay in 9th review of the International Monetary Fund (IMF) program. 

The benchmark KSE100 index shed 1,138 points to close at 39,832 points on Tuesday. The market previously closed below the 40,000-point level in July this year. 

Analysts said profit-taking was witnessed across the board as worried investors did not take fresh positions due to rising political uncertainty and economic situation in the South Asian country. 

“The equity market reacted to the news of the power tariff hike, overall delayed IMF program and ongoing political noise,” Samiullah Tariq, research director at the Pakistan-Kuwait Investment Company, told Arab News. 

Pakistan is currently engaged with the IMF for the 9th review of its $7 billion loan program, but no headway has been made since November though the fund termed the discussions “productive.” 

The South Asian country is expected to receive around $1 billion from the IMF after the completion of the review. The inflows are vital for the country’s depleting foreign exchange reserves, which stand at $6.7 billion, barely enough to cover imports for a month. 

Though the market also reacted to the news of a power tariff hike, the energy ministry denied that the “government has made any decision to raise the power tariff.” 

However, the government has decided to reduce business hours to conserve energy, similar to measures taken in the past. 

Defense Minister Khawaja Asif on Tuesday said the federal government would approach provinces for the implementation of the energy-saving policy. 

Under the policy, Asif informed, restaurants, hotels and markets would be closed by 8pm, while wedding halls would be shut down by 10pm. 

But traders said the policy had failed time and again and the measures did not yield the desired result. 

“In the past as well, energy could not be saved through such measures which was evident from load-shedding,” said Atiq Mir, chairman of All-Karachi Tajir Ittehad, which is an umbrella group of major business associations in the Pakistani financial hub. 

“Our business has already shrunk to around 40 percent and the recent move would further dent business activities.” 

Pakistan is also caught in the middle of a political turmoil since the ouster of former prime minister Imran Khan in a parliamentary no-trust vote in April. 

Khan, in his latest move to pressure the federal government into announcing nationwide snap polls, has announced dissolving the Punjab and Khyber Pakhtunkhwa provincial assemblies on December 23. His Pakistan Tehreek-e-Insaf (PTI) party and allies rule the two provinces. 

“Stocks slumped on political uncertainty after the PDM (Pakistan Democratic Movement) moved for a no-trust motion [against Chief Minister Pervaiz Elahi] in the Punjab Assembly,” Ahsan Mehanti, CEO of the Karachi-based Arif Habib Corporation brokerage and securities firm, told Arab News. 

The PDM on Monday submitted a no-confidence motion in the Punjab Assembly, ahead of planned dissolution of the provincial assemblies. 

Khan’s party controls two of the country’s four provincial assemblies, while the other two are ruled by his political opponents, who are also in power in the center. 

Pressure in the currency market continued to persist as well, with the dollar closing slightly higher at Rs225.12 against the rupee in the interbank market. 


Pakistan to face India on Oct. 6 in women’s T20 World Cup clash 

Updated 05 May 2024
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Pakistan to face India on Oct. 6 in women’s T20 World Cup clash 

  • ICC Women’s T20 World Cup to run from Oct. 3-20 in Dhaka and Sylhet
  • Pakistan are placed in Group A with Australia, India, New Zealand, Qualifier 1

DHAKA: England will face South Africa in the opening match of the ICC Women’s Twenty20 World Cup to be held in Bangladesh later this year, the International Cricket Council announced on Sunday.
The event will run from October 3 to 20 in the capital Dhaka and the northeastern city of Sylhet, with warm-up matches starting on September 27.
Hosts Bangladesh and the top six teams from the previous edition in South Africa — Australia, England, New Zealand, South Africa and the West Indies — qualified automatically for the tournament, with Pakistan joining them as the next best ranked team.
Ireland, the UAE, Sri Lanka and Scotland are in contention for the remaining two places, with the semifinals of the qualifying tournament being held in the UAE.
Six-times winners and current world number one Australia will play in Group A alongside India, New Zealand, Pakistan and a Qualifier 1.
Neighbours and rivals India and Pakistan will face off on October 6.
Group B will feature South Africa, Bangladesh, England, West Indies, and Qualifier 2.
“Over the last six to seven years we have seen women’s cricket grow exponentially,” ICC chief executive officer Geoff Allardice said at the announcement of the fixture list and trophy unveiling in Dhaka.
“This is going to be a very special tournament,” he added.
It will be the ninth edition of the tournament, with Bangladesh previously hosting in 2014.


From bricks to clicks, Pakistani laborer achieves fame and financial independence via YouTube videos

Updated 23 min ago
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From bricks to clicks, Pakistani laborer achieves fame and financial independence via YouTube videos

  • Riaz Ali who built homes working as a manual laborer initially began making videos on TikTok
  • 30-year-old made his YouTube channel in 2022 and has since become an online sensation

SANGHAR: Riaz Ali, 34, would stack brick over brick and bond them with mortar, a thick paste of cement, water and sand, as he built homes and did other manual labor work for years in the southern Pakistani district of Sanghar.

In 2022, he started making engaging video content that included throwing and catching mortar, targeting a tall pole with a motorbike tire and some prank videos, which have not only turned the daily wager into a millionaire but also a digital sensation.

Ali, better known as Riaz Jaan, initially posted videos on TikTok after which a friend advised him to post them on YouTube. He created his YouTube channel in April 2022 which was monetized only nine months later.

He now earns 20 times more than what he used to make two years ago.

“As a laborer, my wage was Rs1,500 [per day]. In a month, I used to earn Rs30,000 or Rs35,000 ($107-$125) as it was an inconsistent livelihood,” he told Arab News on Thursday.

“From YouTube, I earn more than Rs500,000 ($1,795) per month.”

Ali, who has 1.9 million subscribers on YouTube, 439,000 followers on TikTok and 359,000 on Facebook, says his content went viral through YouTube Shorts — vertical videos that have a duration of 60 seconds or less.

“My first earnings on YouTube were Rs800,000 ($2,872). I had never seen such a huge amount of money before. My family and I were so delighted that such a significant sum had come into my hands,” he said.

“After YouTube, my life changed. As they say, when Allah gives, He gives abundantly.”

Ali, who started working as a daily wager in 2010, has left his laboring job since becoming a digital sensation but still makes videos related to his former work.

He has also enabled the sharing of his viral videos on YouTube, helping several other content creators have engagement on their channels.

“There are people from various countries who repost my content and videos on their channels, and their channels have also been monetized,” he said. “I have granted them permission.”

This success has helped Ali buy two residential plots and two buffaloes, send his children to better schools, and take care of his family in a much better way. The 30-year-old has also bought a mobile phone worth Rs500,000, which he uses to create quality video content.

But Ali has not kept his success to himself and has passed his digital skills on to his family, friends and whoever he found willing to learn.

“Besides myself, my brother also has a YouTube channel where he posts labor-related videos. His channel has also been monetized,” he told Arab News.

“Additionally, I have two sons, Ali Ayan and Zeb Zohan, whose channel is also monetized.”

He says neither his brother’s nor his sons’ channels gained traction in the beginning and so, he began posting his content on their channels, which helped them gain momentum. Consequently, both channels were monetized.

The 30-year-old offers free, informal consultancy services to youth, who are interested in establishing their own YouTube channels, in his hometown of Jhol in Sanghar. He says he has around 50 to 60 youngsters, who either have monetized channels or are actively working toward them.

“I guide them all, and they follow my directions,” Ali said.

Ali Raza, a farmer and a friend of Ali, got inspired by seeing his friend earn through YouTube. Raza created his own account on the video-sharing website, where he posts funny videos.

“Since Riaz Jaan is teaching others, I also joined his group. It’s been four months since my YouTube channel has been monetized,” Ali Raza told Arab News.

“I earn between Rs25,000 and Rs30,000 ($89-$107) per month.”


Pakistan’s PM Sharif congratulates Sadiq Khan on winning third term as London mayor

Updated 05 May 2024
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Pakistan’s PM Sharif congratulates Sadiq Khan on winning third term as London mayor

  • Sadiq Khan secured historic third term in office as London mayor on Saturday 
  • PM Sharif says Khan’s third victory reflects his dedication to public service 

ISLAMABAD: Prime Minister Shehbaz Sharif congratulated London Mayor Sadiq Khan on Sunday for winning a third consecutive term in office, saying the landmark victory reflected the British-Pakistani official’s dedication to public service. 

Khan, 53, who was first elected in May 2016, beat his Conservative rival Susan Hall by more than 276,000 votes, with his win representing a swing of 3.2 percent to the Labour party. He won nine of the 14 constituencies, results showed on Saturday. 

Taking to social media platform X, Sharif offered his heartiest felicitations to Khan for his “hattrick” of victories. 

“As a hard-working British Pakistani, he not only raised the head of his parents high but also made every Pakistani to rejoice his victory with pride,” Sharif wrote.

He offered Khan best wishes for his future success as mayor of London. 

“The prime minister further said that his re-election for the third term also indicated his popularity and his devotion to public welfare,” the Pakistani prime minister wrote. 

Khan, who replaced Boris Johnson as London mayor in 2016 and who has widespread policing and budget powers, has been an increasingly divisive figure in the past few years regardless of the facts for or against, particularly in the suburbs, where he fared worse than in the inner city.

His supporters say he has multiple achievements to his name, such as expanding housebuilding, free school meals for young children, keeping transport costs in check and generally backing London’s minority groups. His critics say he has overseen a crime surge, been anti-car and has unnecessarily allowed pro-Palestinian marches to become a regular feature at weekends.

With inputs from AP

 


Naila Kiani becomes first Pakistani woman to summit world’s fifth-highest mountain

Updated 05 May 2024
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Naila Kiani becomes first Pakistani woman to summit world’s fifth-highest mountain

  • Naila Kiani summitted 6,485-meter high Mount Makalu in Nepal on Sunday morning, says Alpine Club of Pakistan
  • Kiani’s latest achievement makes her first and only Pakistani woman to summit eleven peaks higher than 8,000 meters

KHAPLU, GILGIT BALTISTAN: Dubai-based mountaineer Naila Kiani has become the first woman from Pakistan to summit Mount Makalu, the fifth-highest mountain in the world, the country’s leading non-governmental organization promoting mountaineering said on Sunday.

Mount Makalu is located in the Mahalangur range of the Nepal Himalayas, southeast of Mount Everest. The imposing mountain stands at 8,485 meters (27,838 feet) high. Kiani’s latest achievement makes her the first and only Pakistani woman to summit eleven peaks higher than 8,000 meters. 

She has previously summited Broad Peak (8,047 meters), Annapurna (8,091 meters), K2 (8,611 meters), Lhotse (8,516 meters), Gasherbrum 1 (8,068 meters), Gasherbrum II (8,035 meters), Nanga Parbat (8,125 meters), Mount Everest (8,849 meters), Manaslu (8,156 meters) and Cho Oyu (8,201 meters). 

“Congratulations, Nail Kiani has summited Makalu,” Karrar Haidri, the secretary general of the Alpine Club of Pakistan, told Arab News over the phone.

“So far out of 14 eight-thousanders, she has completed the 11th peak. She summited the peak at 8:50 am local time,” he added.

The Alpine Club said in a separate statement that Naila was grateful for all the prayers and wishes she had received from people, thanking Sherpa Gelgen Dai from Imagine Nepal, a company that promotes mountain trekking and peak climbing in Nepal. 

“This latest success highlights her exceptional endurance and determination,” the statement said. “She now holds the record as the fastest Pakistani, both male and female, to have summited 11 of the 8,000-meter peaks, accomplished in under 3 years.” 

Kiani is a Pakistani banker living in Dubai and a mother of two. She garnered fame in 2018 after her wedding photos from K2 basecamp were widely shared on social media. The Pakistani climber received the Sitara-e-Imtiaz, Pakistan’s third-highest civilian award, in March this year for climbing Mount Everest. 

“We are proud of the inspiration created by Naila, not only for her daughters and wider family but across the nation from every household,” Khalid Raja, Kiani’s husband, told Arab News over the phone.

Supporting his wife’s expeditions, Raja said it gets challenging for him at times to look after their children when Kiani is away. 

“If Naila completes 14 of the world’s 8,000-meter peaks, then we hope she can reduce the levels of time that she is away from her family and we can build together from there,” he said. 

“Then who knows, maybe I can do a few expeditions of my own.”


PM Sharif forms committee to resolve Pakistani wheat farmers’ grievances 

Updated 05 May 2024
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PM Sharif forms committee to resolve Pakistani wheat farmers’ grievances 

  • Farmers are demanding government stop wheat imports that have flooded markets, leading to reduced prices
  • Government committee to take measures to address farmers’ complaints within four days, says state media 

ISLAMABAD: Prime Minister Shehbaz Sharif this week formed a government committee to address the ongoing wheat crisis in the country, state-run media said, amid protests by thousands of farmers who say they are facing difficulties in selling and buying the food grain in Pakistan.

Farmers in Pakistan’s most prosperous Punjab province are demanding the government stop wheat imports that have flooded the market at a time when they expect bumper crops. The import of wheat in the second half of 2023 and the first three months of 2024 has resulted in excess amounts of the commodity leading to reduced prices, they say. 

“Prime Minister Shehbaz Sharif on Saturday taking notice of the issues faced by the farmers in selling their wheat and obtaining wheat bags, formed a committee under Ministry of National Food Security and Research to address their grievances,” the state-run Associated Press of Pakistan (APP) reported. 

Sharif issued the directives to form the committee during a high-level meeting he chaired on Saturday to review wheat procurement matters through the Pakistan Agricultural Storage and Services Corporation (PASSCO). The meeting was attended by federal ministers Rana Tanveer Hussain, Attaullah Tarar, and other officials.

The committee would take measures to address farmers’ concerns within four days, APP said, adding that Sharif expressed concerns over reports of farmers facing difficulties in buying wheat at “fair” prices and tasked authorities to resolve the issue immediately. 

“The federal government, through PASSCO, is procuring 1.8 million metric tons of wheat to ensure maximum benefit to farmers,” the APP quoted Sharif as saying. 

“The prime minister emphasized that the government will not compromise on the economic protection of farmers and will take all necessary steps to ensure their well-being.”

Agriculture is the backbone of Pakistan’s economy and constitutes its largest sector. The majority of Pakistan’s population, directly or indirectly, depends on agriculture for their income. 

According to the Pakistan Bureau of Statistics (PBS), agriculture contributes about 24 percent of the Gross Domestic Product (GDP) and accounts for half of the employed labor force in the country.