Pakistani industrialists urge government to tackle high energy prices, interest rate in budget 2024-25

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Updated 29 May 2024
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Pakistani industrialists urge government to tackle high energy prices, interest rate in budget 2024-25

  • Pakistan’s finance minister expected to unveil federal budget next week, shed light on priorities to address fiscal challenges
  • Pakistan has hiked fuel and energy prices over past two years in line with reforms recommended by International Monetary Fund 

KARACHI: Highlighting exorbitant energy costs, a high interest rate, and multiple taxations as major hurdles to industrial growth, Pakistan’s leading body of industrialists and traders on Wednesday said it hoped the government would address these challenges next week when it unveils the federal budget.

Pakistan’s Finance Minister Muhammad Aurangzeb is expected to unveil budget 2024-25 next week in the parliament. The document will outline the government’s financial plans and allocations across various sectors. The budget will also shed light on Pakistan’s economic priorities, potential reforms and strategies to address pressing fiscal challenges.

The development takes place as the South Asian country grapples with an economic crisis that has seen its reserves plummet, national currency decline in value significantly against the US dollar, and inflation surge.

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI), the apex representative body of Pakistani traders and industrials in the country, said it has submitted budget proposals to the government, adding that it expects 80 percent of its demands to be met.

“We have collected all the information from our trade bodies, from all the chambers and we have made the proposals and we have already sent them to the FBR (Federal Board of Revenue), Ministry of Finance and the other departments,” Atif Ikram Sheikh, the FPCCI’s president, told Arab News on Tuesday.

Sheikh said the FPCCI has invited the government’s attention toward major issues that industrialists and traders in Pakistan encounter, such as exorbitant energy costs, taxation and the prevailing high interest rate. 

He said these issues were not making it “bearable” to run industries in Pakistan. 

“So we want the government to reduce interest rates, energy costs like fuel prices, gas and electricity and to run the economy in a better way,” Sheikh explained. 

Pakistan has hiked prices of fuel and energy as part of reforms demanded by the International Monetary Fund (IMF) in exchange for a $3 billion loan program last year.

Pakistan increased gas charges by 318.74 percent and electricity charges by 71.12 percent since April 2023, as per official data. Surging energy costs took inflation to a historic high of 38 percent in May 202, which gradually eased to 17.3 percent in April 2024. 

Pakistan’s central bank has projected the annual average inflation in the range of 23– 25 percent for the current fiscal year against a target of 21 percent.

The country’s finance minister expects inflation to decrease to 13.5-14.5 percent range in May 2024 and decline further to 12.5-13.5 percent by June 24. 

Industrialists want the government to slash the interest rate, which has made the cost of borrowing high in Pakistan. The central bank has cumulatively raised the policy rate by 1,500 basis points during FY22 and FY23 and has maintained it at 22 percent at present. 

Pakistan’s finance ministry said on Wednesday it expects a “promising” economic outlook amid improving industrial activities. 

“The economic outlook is promising as industrial activities are gradually improving, inflation is on a downward trajectory and the external sector is stable,” the finance ministry said in its monthly economic report for May 2024.

The ministry observed that as the fiscal year is about to end, the economic indicators reflect that stability is gaining strength in the real, fiscal and external sectors.

It said Pakistan’s GDP growth is increasing while the inflation rate is on a decline, reflecting the effectiveness of recent fiscal consolidation efforts. The report said the country’s economic performance also reveals that agriculture has been a major contributor to this fiscal year’s economic upswing, attributed to government-led initiatives that enhanced input supply and credit disbursements. 

The FPCCI has demanded a reduction in import duties and sales tax on various items. The body has also demanded a revival of the zero rating of sales tax for five export-oriented sectors, namely sports, surgical, leather, textiles, and carpets.

“We are sure and expecting what we are sending, what we have requested to the government, they will consider the FPCCI’s proposals,” Sheikh said.

“And I am sure 80 percent of our demands will be fulfilled.”


Pakistan confirms killing of eight nationals in Iran, urges regional counterterrorism strategy

Updated 12 April 2025
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Pakistan confirms killing of eight nationals in Iran, urges regional counterterrorism strategy

  • Baloch separatists have claimed responsibility for killing the victims, who reportedly worked as auto mechanics
  • Pakistani authorities say they are aware of the incident and are in contact with relevant Iranian officials

ISLAMABAD: Pakistan confirmed late Saturday night the killings of eight of its nationals in Iran’s Sistan-Baluchestan province, with Prime Minister Shehbaz Sharif emphasizing the need for all regional countries to come together to devise and enforce a coordinated counterterrorism strategy to eliminate militant violence.
The news of the killings first emerged in local media in the evening, though the country’s foreign ministry and federal authorities did not issue immediate statements.
However, the foreign office later confirmed the development in response to media queries.
“We are aware of this tragic incident and are in touch with Iranian authorities,” said spokesperson Ambassador Shafqat Ali Khan. “We will comment once facts are established and confirmed details are available.”
Khan added that Pakistan’s embassy in Tehran and consulate in Zahedan had been in constant contact with the relevant Iranian authorities over the incident.
In a separate statement, Prime Minister Shehbaz Sharif expressed grief over the killing of the eight Pakistani nationals and voiced concern over the attack on Iranian soil.
“Terrorism is a scourge that is devastating for all countries in the region,” he said. “All regional states must implement a coordinated strategy to root out terrorism.”
Sharif urged the Iranian government to swiftly apprehend the perpetrators and ensure they are held accountable.
“The Iranian government must bring those responsible to justice and share the reasons behind this heinous act with the public,” he continued.
The prime minister also directed Pakistan’s foreign ministry to remain in contact with the victims’ families and instructed the embassy in Tehran to ensure the safe repatriation of the bodies.
Earlier in the day, Afghanistan’s Khaama Press News Agency reported the attack took place in the early hours of the day in a village in Mehrestan district, located near the Iran-Pakistan border. The outlet said the victims were auto mechanics.
However, the separatist Balochistan National Army (BNA) claimed responsibility for the attack later in the day, alleging that the slain workers were members of Pakistan’s premier spy agency.
Pakistan’s southwestern Balochistan province, which borders Iran and Afghanistan, has faced a low-level insurgency for nearly two decades. Baloch separatist groups accuse the central government of exploiting the region’s natural resources, such as gold and copper, without benefiting the local population.
Islamabad denies the allegations, saying it is committed to improving the lives of Baloch residents through various development projects.
Thousands of Pakistanis, mostly from economically disadvantaged regions, frequently cross into Iran to take up informal work in sectors such as vehicle repair, construction and agriculture.
In January last year, nine Pakistani laborers were killed and three critically injured in a similar attack in Saravan city, also located in Iran’s southeastern border region.
The victims in that case had also been working at an auto repair shop.
Last year’s killings took place at a time when Pakistan and Iran were trying to mend diplomatic ties following tit-for-tat missile and drone strikes.


Punjab CM invites Turkish universities to expand footprint in Pakistan at Antalya Diplomacy Forum

Updated 12 April 2025
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Punjab CM invites Turkish universities to expand footprint in Pakistan at Antalya Diplomacy Forum

  • Maryam Nawaz Sharif meets President Erdoğan and First Lady before addressing a session on education
  • She says the provincial administration is committed to education and opportunities for women and children

ISLAMABAD: Chief Minister of Punjab Maryam Nawaz Sharif on Saturday invited leading Turkish universities to expand their footprint in Pakistan’s most populous province while addressing a session focused on education at the Antalya Diplomacy Forum 2025.
The annual forum, now in its fourth edition, is hosted under the patronage of Turkish President Recep Tayyip Erdoğan and aims to foster dialogue and cooperation on pressing global issues. This year’s theme, “Reclaiming Diplomacy in a Fragmented World,” has drawn world leaders, diplomats and civil society actors to discuss solutions to global challenges, including education, conflict and development.
Before her address, Sharif met with Erdoğan and First Lady Emine Erdoğan. The Turkish president warmly welcomed and thanked her for participating in the forum.
“I take this opportunity to invite the top universities of Türkiye to expand their presence in Punjab, to create more centers of eminence, more centers of excellence where our youth can learn, grow and lead,” she said while addressing the gathering.
“Let us ensure that our collaboration and exchange programs become the foundation for a brighter, human-centric future, a future that both Pakistanis and Turkish generations will be proud to inherit,” she added.
The Punjab chief minister emphasized her provincial government’s commitment to transforming education landscape.
She outlined several reform initiatives, including the upgradation of more than 4,000 primary schools into elementary schools to combat generational dropouts, particularly in rural areas where children often leave school after Class 5 due to the absence of nearby middle schools.
“This upgradation is not a token gesture. It is a systemic intervention,” she said, adding that digital learning rooms were also being established in over 6,000 schools across the province to integrate technology with pedagogy.
Sharif also spoke of reviving non-functional schools and turning them into “sanctuaries of learning,” while highlighting a new nutrition program launched in underserved districts to address malnutrition among schoolchildren, especially girls.
“My government’s foremost commitment is to women and children, to education and opportunity, and to dignity and justice,” she said. “And it is in these arenas that I seek to construct a unique model of governance that is both ethical and effective.”
The chief minister further announced the creation of Pakistan’s first Artificial Intelligence University in Lahore and the development of the Nawaz Sharif Internet City, a hub intended to foster innovation and IT-based learning that is named after her father.
“We are recruiting about 30,000 new school teachers entirely on merit,” she informed, noting that the province had also established a dedicated institution for teacher training and curriculum development aligned with 21st-century learning goals.
Sharif positioned herself during the speech not only as a political leader but also as “an ambassador of education,” vowing to ensure that “no child is left behind due to poverty, geography, gender or social restrictions.”


Pakistan and Nigeria discuss enhanced counterterrorism and defense cooperation

Updated 12 April 2025
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Pakistan and Nigeria discuss enhanced counterterrorism and defense cooperation

  • Both sides reaffirm resolve to boost security ties during General Sahir Shamshad Mirza’s visit
  • Pakistan and Nigeria are members of Commonwealth and Organization of Islamic Cooperation

KARACHI: Pakistan’s Chairman Joint Chiefs of Staff Committee, General Sahir Shamshad Mirza, held high-level meetings with Nigeria’s defense minister and senior military leadership during an official visit to the African nation, with both sides agreeing to strengthen security cooperation, particularly in the field of counterterrorism, the Pakistani military said on Saturday.
Nigeria faces a range of counterterrorism challenges, primarily from Boko Haram and its affiliates, which have waged a years-long insurgency in the country’s northeast, marked by attacks, abductions and mass displacements.
Pakistan, meanwhile, has seen a resurgence in militant violence in its western provinces from groups like Tehreek-e-Taliban Pakistan and the Baloch Liberation Army, with officials in Islamabad blaming them for cross-border attacks from Afghanistan, a charge Kabul denies.
In a statement, Pakistan’s Inter-Services Public Relations (ISPR) said Mirza met with Nigeria’s defense minister as well as the chiefs of the army, navy and air force. The meetings focused on “challenges faced by both countries, especially in the domain of counterterrorism,” as well as broader defense cooperation and regional security.
“During the separately-held meetings, both sides engaged in discussions on challenges faced by both countries especially in the domain of Counter Terrorism (CT) and areas of mutual interest, including security, defense cooperation, and the evolving international / regional landscape,” the ISPR said.
“Both sides reaffirmed the resolve to further enhance defense and military collaboration between both militaries,” it added.
Pakistan and Nigeria have maintained bilateral relations since establishing diplomatic ties in 1961. Both countries are members of the Commonwealth of Nations and the Organization of Islamic Cooperation, sharing common interests in international forums.
Over the years, more than 2,000 Nigerian military personnel have received training in Pakistan, reflecting the scale of the defense collaboration between the two nations.
In recent years, Pakistan has also intensified its diplomatic and economic engagement with African nations under its “Engage Africa” policy, leading to the opening of new diplomatic missions across the continent to increase trade.


Magnitude 5.5 earthquake shakes northern Pakistan with no reports of casualties or damage

Updated 12 April 2025
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Magnitude 5.5 earthquake shakes northern Pakistan with no reports of casualties or damage

  • Pakistan is in a seismically active region, on the boundary of the Indian and Eurasian tectonic plates
  • Pakistan witnessed deadly earthquakes in 2005 and 2013 that caused widespread destruction

ISLAMABAD: A moderate earthquake struck northern Pakistan on Saturday, briefly shaking buildings in the twin cities of Rawalpindi and Islamabad and prompting residents to step outside.
There were no immediate reports of casualties or significant damage.
“An earthquake originated on 12-04-2025 at 12:31 PST [Pakistan Standard Time],” confirmed the Pakistan Meteorological Department (PMD) shortly after the tremors, adding that its magnitude was 5.5 on the Richter scale.
The PMD said the quake’s epicenter was located 60 kilometers northwest of Rawalpindi at a depth of 12 kilometers.
Pakistan sits on the boundary of the Indian and Eurasian tectonic plates and is prone to seismic activity.
The country’s northern and western regions are home to mountain ranges such as the Himalayas, Hindu Kush and Karakoram.
Pakistan also has some of the world’s tallest peaks, including K2, the second-highest mountain on Earth.
Among the most devastating earthquakes in Pakistan’s history was the 2005 Kashmir quake, which measured 7.6 in magnitude and killed more than 86,000 people.
In 2013, a 7.7-magnitude earthquake struck southwestern Balochistan, killing over 800 people and flattening entire villages.


Sindh Wildlife Department reports nearly 15% drop in migratory birds amid drying wetlands

Updated 12 April 2025
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Sindh Wildlife Department reports nearly 15% drop in migratory birds amid drying wetlands

  • The annual waterfowl survey counts 545,258 birds this season, down from 639,122 last year
  • Experts warn that continued habitat loss is likely to cause further decline in bird numbers

KARACHI: The number of migratory birds arriving in the wetlands of Pakistan’s Sindh province has declined by nearly 15% compared to last year, according to the Sindh Wildlife Department on Saturday, raising alarm among conservationists about the impact of water scarcity and climate change on critical habitats.
A recently completed “Annual Waterfowl Survey” for the 2024–25 season recorded 545,258 migratory waterbirds at 30 major wetland sites across the province. The data show a 14.68% drop from the previous year’s count of 639,122 birds, with both surveys covering around 40% of Sindh’s total wetland area.
“The apparent reason for the decline in migratory bird numbers is the decrease in water bodies, as these migratory waterfowl are associated with wetlands and the availability of natural food therein,” Javed Ahmed Mehar, Conservator at the Sindh Wildlife Department, told Arab News.
“We plan to conduct a detailed study with relevant stakeholders to determine the causes of this decline [with greater certainty],” he added.
Wildlife photographer Shahbaz Alam, who has documented Sindh’s lakes and marshlands extensively, also attributed the drop to drying wetlands.
“These birds spend their day in the water, searching for food, and then move toward greener areas,” he said. “With Sindh facing severe water shortages and the drying of wetlands due to climate change, the habitat is simply vanishing.”
Describing the situation as “very alarming,” Alam said he had also noticed the decline over the years.
“Where we once saw thousands [of birds], we now see only hundreds,” he told Arab News.
Pakistan has 19 wetlands designated as Ramsar sites under the Ramsar Convention on Wetlands, an international treaty named after the Iranian city where it was adopted in 1971. The convention aims to conserve globally important wetlands and promote their sustainable use.
Together, these Pakistani sites span 1.34 million hectares. More than half are located in Sindh, including Keenjhar Lake, Haleji Lake, the Indus Delta, Jubho Lagoon and the Rann of Kutch. These wetlands have long served as critical stopovers for migratory birds traveling along the Indus Flyway, an avian route from Siberia and Central Asia.
Among the worst-hit areas this season was the Rann of Kutch Wildlife Sanctuary, which witnessed drought-like conditions, while Nareri Lagoon in Badin hosted the largest number— 155,068 birds.
According to Rasheed Ahmed Khan, who led the survey, the decline is directly related to the decrease in rainfall and the reduction of water bodies and wetlands.
“Due to a severe lack of rainfall last year, almost all dams in Tharparkar remained dry. If reduced rainfall continues due to climate change, there could be a significant decrease in the future,” he warned.
The survey team, comprising experts from the Sindh Wildlife Department and Zoological Survey of Pakistan, recorded over 57 species of migratory waterfowl. These included prominent sightings of Common Teal, Northern Shoveler, Indian Spot-Billed Duck, Cotton Pygmy Goose and Lesser Flamingo.
Endangered species like the Great White Pelican were also documented, highlighting the region’s ecological significance.