Tag: Pakistan

  • Telecom operators, govt suffer major revenue losses due to mobile internet shutdown

    Telecom operators, govt suffer major revenue losses due to mobile internet shutdown

    According to reliable sources, the suspension of mobile broadband services has had a devastating impact on the economy in Pakistan. Telecom operators have incurred a revenue loss of approximately Rs820 million, while the government has lost around Rs287 million in tax revenue.

    The suspension has also caused significant losses for digital app users, such as Careem, InDrive, and FoodPanda, as well as brought digital payments to a halt. The situation has caused widespread inconvenience and hardship for the general public, necessitating the immediate attention of the relevant authorities to resume data services.

    Furthermore, social media platforms like Facebook and Twitter remained partially or fully suspended on the second day. Jazz CEO, Aamir Ibrahim, expressed his dissatisfaction through a tweet, emphasising that shutting down the internet is not a solution to any problem, but instead, it creates more problems than it solves. He stated that the impact on the economy is quantifiable, but the inconvenience to the people is incalculable.

    According to Brecorder, Muhammad Zohaib Khan, the Chairman of Pakistan Software Houses Association (P@SHA), strongly criticised the indiscriminate blockage of internet services in Pakistan due to the emergent political situation. He condemned the mindless and consultation-less decision and highlighted that the IT industry has come to a standstill since Tuesday evening.

  • Pakistan could default after June as country fails to meet some IMF conditions

    Pakistan could default after June as country fails to meet some IMF conditions

    Pakistan is in the midst of a balance of payment crisis, and the stakes are high. Without the financial aid of the International Monetary Fund (IMF), the country faces the prospect of defaulting on its external payment obligations.

    Unfortunately, reports say that the IMF is not convinced by the assurances given to them by Pakistan’s friendly countries.

    Officials of the finance ministry, speaking anonymously, have confirmed that Pakistan has fulfilled several conditions set by the lender for the revival of the loan facility, and the staff-level agreement on the ninth review was supposed to be signed by February 9.

    However, the delay in the IMF programme could have severe repercussions. The budget planning, which is expected to be tabled in the second week of June, is likely to be affected.

    Moody’s Investor Service has warned that Pakistan may default if it does not receive a bailout from the IMF as its financing options beyond June are uncertain.

    While Pakistan is expected to meet its external payments until the end of this fiscal year in June, its reserves are weak and without IMF support, it could default.

    Pakistan is struggling to restart a stalled $6.5 billion bailout programme from the IMF due to the government’s failure to meet some loan conditions, and political tensions ahead of elections are adding to the risk of a delay in the loan.

    An engagement with the IMF beyond June would support additional financing from other multilateral and bilateral partners, which could reduce default risk. Pakistan’s foreign-exchange reserves remain very low, standing at $4.5 billion, and sufficient to cover only about one month of imports.

    S&P Global Ratings estimates that Pakistan’s gross external financing needs as a proportion of current-account receipts plus usable reserves will rise to 139.5 per cent in fiscal year 2024 from 133 per cent in 2023.

    S&P analysts believe that an IMF programme would be a foundation for important fiscal policy reforms and that an agreement on the current review cycle could instill more confidence for other bilateral and multilateral lenders to Pakistan.

  • Pakistan buys Russian oil amid chronic energy shortages

    Pakistan, which is facing a severe economic crisis and chronic energy shortages, has turned to Russia for oil imports. However, Pakistan’s petroleum minister, Musadik Malik, believes that the future of energy lies in diversification, particularly towards green energy sources.

    During his visit to the United States, Malik confirmed that Pakistan had placed an initial order for Russian oil, which will arrive within a month, and based on the results, the country will assess how much to import in the future.

    Pakistan, which imports 84 per cent of its petroleum products, mainly from Gulf Arab allies Saudi Arabia and the United Arab Emirates, has been transparent about its dealings with Russia. Malik stated that their initial dealings with Moscow were far less than those of other countries, particularly China and India, whose enthusiastic buying of Russian oil has cast a shadow over India’s warming relationship with Washington.

    Malik spoke with US companies during his visit about buying shale liquified natural gas, upgrading Pakistani refineries and storage facilities, exploring offshore oil and gas and starting horizontal drilling, a method that Pakistan has not yet used.

    However, he emphasized that his talks with the United States also included support for green energy sources, in line with Pakistan’s goal of generating 30 per cent of its electricity from renewables by 2030, including a plan for widespread solar power on rooftops.

    Pakistan is one of the nations most vulnerable to climate change, with floods last year submerging one-third of the country. Geoffrey Pyatt, the assistant secretary of state for energy resources, has promised US backing for Pakistan’s renewable goals during his visit to the country.

    According to France24, Malik also believes that the future of energy security lies in green energy sources. Although Pakistan’s share of Russian oil imports is small, it helps, and the country is open to cheaper sources of energy.

  • FBR officers request leave until June to protest against low salary amid soaring inflation

    The Federal Board of Revenue (FBR) is in the midst of a predicament as its officers have apparently requested leave until June in order to protest against the rising inflation that is affecting their ability to make ends meet.

    In a letter addressed to the FBR Chairman Asim Ahmed, 117 Income Tax officers ranging from grades 17 to 19 have expressed their discontent with a meagre pay scale.

    “Due to low pay, we are unable to meet the expenses of coming to the office in this era of skyrocketing inflation,” the letter stated.

    This issue is extremely worrisome as the absence of these officers during the crucial budgeting process could have grave consequences for the country’s economy since the FBR is accountable for collecting taxes and revenue for the government.

    According to ARY News, the FBR Chairman has promised to raise the matter of the officers’ salary scale with Prime Minister Shehbaz Sharif. Additionally, he mentioned that the tax officers’ performance allowance has been withheld since 2015.

    It’s worth noting that an FBR officer made a peculiar request in a separate incident. In a letter addressed to Prime Minister Shehbaz Sharif, the officer requested permission to engage in corrupt activities in order to cover domestic expenses in the face of soaring inflation.

  • All-black everything: Kia Sportage Black Edition launches in Pakistan

    All-black everything: Kia Sportage Black Edition launches in Pakistan

    Kia Lucky Motor Corporation has introduced a new version of its Sportage SUV, named the ‘Black Limited Edition.’ This latest model is the top-of-the-line version of Sportage in Pakistan.

    The company recently held an unveiling event of the vehicle for its clients and industry experts in major cities across Pakistan, where they discussed the enhancements made to the latest variant.

    The ‘Black Edition’ is primarily a cosmetic package and comes exclusively with an All-Wheel Drive (AWD) powertrain configuration. The new variant features a gloss black front grille, 19″ gloss black alloy rims, gloss black rear scuff-plate, dark-satin mouldings, darkened Kia, Sportage, and AWD emblems, and an all-black leather-wrapped interior. However, the primary features and performance figures of the new model remain the same as the standard Sportage.

    Kia plans to produce the ‘Black Edition’ for a limited time, which could last up to a year. While the new model is visually appealing, its price is relatively high compared to other SUVs on the market. According to Pakwheels, the Sportage Black Edition is priced at Rs9.05 million, which is significantly more than its competitors like the MG HS and Hyundai Tucson.

    Despite the cost, given the Sportage’s overall popularity, the ‘Black Edition’ may still prove to be a big success.

  • From prisoner to artist: Guantanamo Bay detainee showcases work at Karachi exhibition

    From prisoner to artist: Guantanamo Bay detainee showcases work at Karachi exhibition

    Ahmed Rabbani, a 53-year-old Pakistani who was recently released after 20 years of detention at Guantanamo Bay, turned to painting to satisfy his artistic yearnings. When he ran out of paint, he used whatever he could find, including dirt, coffee grinds, and spices such as turmeric from the prison canteen.

    “Through painting, I would feel myself outside Guantanamo,” he said at an exhibition of his work in Karachi. Rabbani was detained in September 2002 and handed over to the US Central Intelligence Agency for a bounty of $5,000. He was accused of being a notorious militant known as Hassan Ghul, but Rabbani always insisted it was a case of mistaken identity. He and his brother were never charged or faced trial during their detention.

    The US Senate published a Rendition Report in 2014, which revealed that Ghul was captured and brought to the same prison, only to be released back to Pakistan for “cooperating.” While Ghul went back to his terrorist ways and was killed in a drone strike in 2012, Ahmed got a one-way trip to Guantanamo Bay.

    Born in Mecca, Saudi Arabia, Rabbani moved back to Karachi as a teen and was a taxi driver at the time of his detention. He specialised in guiding visitors from the Middle East, which contributed to him being misidentified.

    While imprisoned in Guantanamo Bay, painting became an obsession for Rabbani, although years spent on hunger strike meant he was often too frail to even hold a brush. If he ran out of materials, he would improvise by using a piece of discarded or torn clothes as a canvas. He would also use coffee or turmeric as a medium.

    Around two dozen pieces of Rabbani’s artwork, which he was allowed to take from prison, are on display at “The Unforgotten Moon: Liberating Art from Guantanamo Bay” exhibition. The works are displayed alongside pieces by local artists who have “re-imagined” paintings that were confiscated. “He is someone who has lost so much of his life, so to produce images of this quality is a miracle… it’s remarkable,” said Natasha Malik, curator and organiser of the exhibition.

    Rabbani, sporting a salt-and-pepper beard and wearing a traditional shalwar kameez and waistcoat, was the centre of attention at the exhibition opening. He plans to publish a cookery book with his memoirs in it and wants to open a restaurant based on recipes he learned while in prison. He hopes to use funds raised from the sale of his artwork to achieve this.

    His artwork depicts his hopes and despair, and some pieces express his yearnings for freedom, such as nature seen through narrow openings, birds flying, and endless oceans. One painting shows a cage containing bright orange fish, the colour of overalls Guantanamo prisoners were forced to wear. “I spent many years in orange,” he said. “I never accepted their laws. I would always break their laws.”

  • IMF asks for more effort from Pakistan, loan programme in jeopardy

    IMF asks for more effort from Pakistan, loan programme in jeopardy

    Despite assurances from friendly countries regarding external funds for Pakistan, the International Monetary Fund (IMF) remains unconvinced and is asking Islamabad to make additional efforts to unlock a loan programme.

    According to sources, Pakistan has been requested to present a repayment plan for a $3.7 billion loan to the IMF in June and to demonstrate stronger support from friendly nations to fulfill this obligation.

    However, the IMF has not yet accepted a proposal to exchange reserves worth between $11 to $12 billion, equivalent to two months’ revenues. The Ministry of Finance has stated that the government has imposed Rs170 billion in taxes through a mini-budget to secure a staff-level agreement with the IMF, which was initially scheduled for February 9th.

    It is noteworthy that the IMF has not included Pakistan in any agenda until May 17th. The budget-making process may also be affected if transactions with the IMF are not concluded, as funding will not be available from international financial institutions without a staff-level agreement.

    Last month, the staff-level agreement between Pakistan and the International Monetary Fund was postponed due to the lender’s new demand.

    Finance Secretary Hamid Yakoob’s meeting with the International Monetary Fund in the United States did not yield positive results as the lender requested the arrangement of $1 billion from commercial banks to unlock the loan program.

    The staff-level agreement, originally scheduled for February 9th, was delayed due to the IMF’s demands.

  • ADB recommends targeted subsidies and tax reforms for Pakistan’s economic recovery

    ADB recommends targeted subsidies and tax reforms for Pakistan’s economic recovery

    The Asian Development Bank (ADB) has recommended that Pakistan implement targeted subsidies to alleviate inflationary pressures and improve the tax-to-GDP ratio in order to emerge from the current state of economic uncertainty.

    Yevgeniy Zhukov, Director General of the Central and West Asia Department, and Yong Ye, Country Director of the Pakistan Resident Mission, emphasised the significance of targeted subsidies to help the most vulnerable segments of society, as well as the mobilization of domestic resources to bolster the national economy. They also suggested strengthening the Benazir Income Support Programme (BISP) and improving its verification process to ensure that the assistance reaches only those who require it.

    Zhukov noted that the ADB has been providing financial assistance to the government to strengthen social security through the BISP programme since 2016. The ADB has provided $600 million in conditional cash transfers for health and education since 2021, and an additional $1.5 billion under the Countercyclical Support Facility.

    A significant portion of this funding will be directed to the BISP to provide necessary assistance to those most affected by ongoing difficulties. Zhukov further suggested that Pakistan should improve its revenue collection, as its tax-to-GDP ratio of 10 per cent is one of the lowest in the region. He cautioned that if the government is only collecting 10 per cent, it may not have adequate resources to provide support and boost income.

    Yong Ye indicated that the ADB, World Bank, European Union, and United Nations had pledged assistance to Pakistan after devastating floods last year, and a second meeting of the Geneva conference was scheduled to take place soon to discuss progress. Zhukov expressed sympathies for flood victims and stated that the ADB had approved a $1.5 billion programme for Pakistan before the floods to address the negative impact of the Russia-Ukraine war on the country’s economy, which was then repurposed to provide social protection for the flood-affected people.

    The ADB has approved additional emergency assistance, including a $175 million loan and $5 million in grants, to rehabilitate damaged infrastructure and develop a stronger infrastructure that can withstand future floods. The bank is working with Pakistan and other partners, such as the International Monetary Fund and the World Bank, to introduce important structural reforms in public finance management, domestic resource mobilization, and energy sector reforms. The ADB is committed to collaborating with its partners and the Pakistani government to ensure that the reform agenda is advanced.

  • Fact Check: Did Bilawal visit graves of Indian soldiers who died in Kargil war?

    Fact Check: Did Bilawal visit graves of Indian soldiers who died in Kargil war?

    Claim: A tweet is being circulated on social media, stating that Foreign Minister Bilawal Bhutto Zardari visited the graves of Indian soldiers who died in Kargil war against Pakistan. Along with the tweet is a photo of the Foreign Minister wearing a heavy black coat as he stands before a wreath placed at a memorial.

    The tweet has been shared more than 4093 times.

    https://twitter.com/p4pakipower1/status/1654573262955839488

    Fact: The picture is from foreign minister’s visit to Lithuania earlier this year. During the visit, Bilawal laid a wreath at the monument of Lithuanian martyred freedom fighters.

    Verdict: The claim is false.

    Verdict: The claim is false

  • AJK man legally transfers thousands of kanals to Maryam Nawaz

    Zahid Hussain, a man hailing from Azad Jammu and Kashmir (AJK), handed down his land spread across thousands of kanals to Pakistan Muslim League-Nawaz (PML-N) Senior Vice President Maryam Nawaz via a legal procedure.

    He said that Maryam can use the land for whatever purpose she sees fit.

    On the legal deed, which has been shared on Twitter, the man stated, “I, Zahid Hussain, s/o Wilayat Hussain, hereby declare that I am of sound mind and have voluntarily decided to bequeath all the lands I possess, whether 50,000 kanals or 32,000 kanal, to Maryam Nawaz, d/o Nawaz Sharif, without any coercion or pressure from anyone”.

    Moreover, the affidavit stated that the PML-N leader is now the owner of 50 per cent of the property, excluding approximately 50 kanals which is the inheritance of Hussain’s children and other heirs, in the life of Mazhar (possibly an heir of Hussain). According to the man, she will be the owner of 100 per cent of the property, excluding the same as above, after Mazhar’s death.

    Reacting to the news, Maryam Nawaz said that it is “very touching”.

    “OMG! Why would he do that! It is very touching though,” Maryam wrote on Twitter.