Tag: United Arab Emirates

  • Overseas remittances to Pakistan soar to $2.4 billion

    Overseas remittances to Pakistan soar to $2.4 billion

    The State Bank of Pakistan (SBP) revealed that the inflow of overseas workers’ remittances reached $2.4 billion in December 2023, marking a notable 5.4 per cent increase from the previous month’s $2.25 billion, according to data released on Wednesday.

    On a yearly basis, December’s remittances exhibited a robust growth of 13.4 per cent, totaling $2.1 billion compared to the same period in the previous year.

    These remittances continue to play a pivotal role in sustaining Pakistan’s external account, fostering economic activity, and supporting the disposable incomes of remittance-dependent households.

    Despite the December upswing, the cumulative workers’ remittances for July-December FY24 recorded a decline of 6.8 per cent Year-on-Year (YoY), amounting to $13.43 billion.

    This decrease amounted to $982.8 million compared to the $14.42 billion reported in the corresponding period of FY23.

    Saudi Arabia

    Overseas Pakistanis in Saudi Arabia led the remittance surge in December, contributing $577.6 million. This figure marked a 6 per cent increase from the previous month and over 9 per cent higher than the same month in the previous year.

    United Arab Emirates (UAE)

    Remittances from the UAE witnessed a marginal monthly increase of nearly 2 per cent, rising from $411.8 million in November to $419.2 million in December. Year-on-year, these remittances surged by almost 27 per cent.

    United Kingdom (UK)

    December saw an uptick in remittances from the United Kingdom, totaling $368 million—a 7.5 per cent increase compared to November 2023.

    European Union (EU)

    Remittances from the European Union demonstrated substantial growth, rising by 19 per cent YoY and 6 per cent on a monthly basis, reaching $284.9 million in December 2023.

    United States (US)

    Overseas Pakistanis in the United States sent $263.9 million in December 2023, reflecting an 8.5 per cent YoY increase.

    This breakdown underscores the significance of remittances from various regions, contributing to Pakistan’s economic resilience amid global challenges. 

    The upward trajectory in December bodes well for the nation’s economic prospects as it navigates through the fiscal year.

  • Pakistan and UAE forge multi-billion dollar partnerships for economic cooperation

    Pakistan and the United Arab Emirates (UAE) signed several multi-billion dollar Memorandum of understanding (MoUs) in a range of areas on Monday.

    According to the press release issued by the Prime Minister’s office, Caretaker Prime Minister Anwaar-ul-Haq Kakar and the President of the UAE Sheikh Mohammed bin Zayed Al Nahyan witnessed the signing of MoUs between Pakistan and UAE.

    Chief of Army Staff (COAS) General Syed Asim Munir was also present at the meeting.

    In a video message, Kakar said that the goal of MoUs is to enhance economic, regional, and strategic cooperation between both nations.

    https://twitter.com/PakPMO/status/1729173407332466874?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1729173407332466874%7Ctwgr%5Eaddee714f32d7b43fa9911635f92c991472709f4%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Ftribune.com.pk%2Fstory%2F2448174%2Finvestment-worth-billions-of-dollars-unlocked-as-pakistan-uae-sign-key-deals

    The interim prime minister extended congratulations to the people of Pakistan and the UAE, highlighting that the foundation of friendship with Pakistan was established by Sheikh Zayed bin Sultan Al Nahyan in the 1970s. He further said that this legacy has been advanced by his son, ushering in a new era of bilateral cooperation.

    In a separate statement, the Prime Minister’s Office (PMO) reported that interim PM Kakar engaged in a bilateral meeting with His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the United Arab Emirates, in Abu Dhabi. The meeting was also attended by the Army chief.

  • Lahore High Court gave Pervez Musharraf relief which he didn’t even ask for

    Lahore High Court gave Pervez Musharraf relief which he didn’t even ask for

    The Supreme Court of Pakistan has questioned the Lahore High Court’s (LHC) decision to overturn the death sentence of former military dictator Pervez Musharraf.

    The initial death sentence was imposed by a special court in December 2019 on charges of high treason.

    The Chief Justice of Pakistan, Qazi Faez Isa, leading a four-judge bench, expressed astonishment at the approach taken by LHC, suggesting that it may have exceeded its jurisdiction in the matter.

    “At best, the LHC could do was to allow the prayers sought in the petition, but what the court did was uprooting the special court itself,” Justice Isa said.

    The special court had originally adjudicated the high treason charges against Musharraf.

    A four-member bench, headed by Chief Justice of Pakistan Justice Qazi Faez Isa and comprising Justice Syed Mansoor Ali Shah, Justice Athar Minallah, and Justice Amin-ud-Din Khan conducted the hearing of the appeals of Bar Councils and others against the judgment of a three-member bench of the LHC.

    The Supreme Court’s scrutiny focused on the LHC January 2020 order, which not only declared the special court’s ruling unconstitutional but also entertained Musharraf’s appeal against his death conviction.

    A three-member bench of the LHC, headed by Justice Syed Mazahar Ali Akbar Naqvi, and comprising Justice Muhammad Masood Jahangir and Justice Ameer Bhatti on January 13, 2020, had declared; “The Special Court was established without an iota of doubt that very basis of initiation of proceedings against the petitioner/ General (R) Pervez Musharraf, since its inception to the culmination are beyond the constitutional mandate, ultra vires, coram-non-judice, unlawful, hence, any superstructure raised over it shall fall to ground.”

    It further said; “Trial in absentia is declared as illegal, unconstitutional being repugnant to injunctions of Islam, as well as, Article 2-A, 8 and 10-A of the Constitution.”

    Pervez Musharraf passed away earlier this year, on February 5, after a prolonged illness.

    The Supreme Court’s review also brought attention to concerns about the LHC’s territorial jurisdiction.

    Justice Syed Mansoor Ali Shah noted that the constitution of the special court was never directly challenged.

    The Chief Justice cautioned against labeling Musharraf as an absconder during the hearing, as it could prejudice the ongoing appeal.

    The hearing is set to continue next Tuesday.

    The Supreme Court has asked the petitioner’s counsel to conclude arguments on Musharraf’s petition against the Special Court judgment.

  • SBP reports $112 million increase in workers’ remittances

    SBP reports $112 million increase in workers’ remittances

    In September 2023, Pakistan experienced a notable surge in workers’ remittances, marking a 5.3 per cent increase compared to August 2023.

    This uptick can be primarily attributed to a crackdown on the informal money transfer systems known as hawala and hundi.

    According to the State Bank of Pakistan (SBP), the country received remittances amounting to $2.206 billion in September 2023, up from $2.094 billion in August 2023, equating to a $112 million rise.

    The majority of remittance inflows for September 2023 were derived from several key sources, with Saudi Arabia contributing $538.2 million, the United Arab Emirates $400 million, the United Kingdom $311.1 million, and the United States of America $263.4 million.

    This increase in remittances can be linked to the fact that a substantial number of Pakistani expatriates resorted to using the Hawala/Hundi channels during the initial two months of the fiscal year, largely due to a significant disparity between official and unofficial exchange rates.

    Subsequently, strict enforcement measures against illegal currency dealers have curbed this volatility, leading to a gradual appreciation of the Pakistani rupee in both the interbank and open currency markets.

    In the last month, the rupee has rebounded by 9 per cent, recovering from its record low of 307.1 against the dollar on September 5. The crackdown on these illicit currency dealers has also contributed to the 5 per cent month-on-month increase in remittances for September.

    However, when examining the entire first quarter of fiscal year FY24, the overall home remittances to Pakistan have experienced a sharp decline of 20 per cent, totalling $1.57 billion. Home remittances for the July-September period of FY24 amounted to $6.33 billion, a decrease from $7.90 billion during the same period in the previous fiscal year, FY23.

    During this initial quarter, remittances from all major sources displayed a downward trajectory. Specifically, home remittances from Saudi Arabia decreased by 22 per cent to $1.516 billion for July–September in FY24, down from $1.946 billion in the equivalent period in FY23.

  • Govt attributes UAE’s fresh meat export ban to faulty refrigeration systems in containers

    Govt attributes UAE’s fresh meat export ban to faulty refrigeration systems in containers

    The Trade Development Authority of Pakistan (TDAP) has attributed the United Arab Emirates’ (UAE) restriction on fresh chilled meat exports from Pakistan to issues with inefficient or non-functional refrigeration systems.

    The ban, effective October 10, 2023, was enacted in response to substandard fresh beef shipments detected in Dubai. TDAP revealed that subpar meat quality was linked to refrigeration problems in reefer containers, a responsibility of shipping lines. Exporters affected by the ban have filed claims against these shipping entities.

    According to Brecorder, the UAE’s Ministry of Climate Change and Environment revised its list of approved slaughterhouses for meat exports via sea routes, imposing specific requirements on shipments of fresh and chilled meat until October 10. Only vacuum-packed or modified-atmosphere-packed meat, conforming to specific shelf-life criteria, will be permitted via sea transport.

    Notably, this ban does not affect fresh and chilled meat shipments by air. TDAP is actively engaged in resolving the issue, with the Pakistani Consulate in Dubai collaborating with stakeholders to determine the cause. TDAP remains optimistic that constructive dialogue and cooperation will lead to a resolution, allowing the resumption of fresh chilled meat exports from Pakistan to the UAE.

  • CAA gathers global players: Meeting in Dubai to discuss Islamabad airport outsourcing 

    CAA gathers global players: Meeting in Dubai to discuss Islamabad airport outsourcing 

    The Civil Aviation Authority (CAA) has convened a significant meeting in Dubai to address matters pertaining to the outsourcing of Islamabad airport. 

    Sources indicate that the CAA administration has scheduled this meeting for September 26 in Dubai, extending invitations to international companies interested in participating in the outsourcing of the airport. 

    This development follows the federal government’s issuance of tenders, soliciting applications for the outsourcing of Islamabad International Airport for a duration of 15 years. 

    According to ARY News, the Civil Aviation Authority has stipulated that interested bidders must submit their applications, along with a Rs5,000 fee, in favour of CAA by November 8. 

    Notably, the government recently made the decision to pursue the outsourcing of Karachi, Lahore, and Islamabad International Airports, drawing keen interest from the United Arab Emirates, Qatar, Turkey, China, and Saudi Arabia. 

    In response to this decision, CAA unions launched a protest movement, which has persisted despite attempts at negotiation by Aviation Minister Khawaja Saad. 

    The steadfast stance of CAA employees remains unwavering, with a spokesperson for the CAA Union asserting during a media address that the protest movement will persist until their demands are met. 

  • IMF demands approval for subsidies as Pakistan struggles to secure tranche

    IMF demands approval for subsidies as Pakistan struggles to secure tranche

    Pakistan has been negotiating an agreement with the International Monetary Fund (IMF) since January 2023. The IMF has specified that Pakistan must receive prior approval before providing any additional subsidies.

    Negotiations have hit a snag over a plan announced by Prime Minister Shehbaz Sharif in March to charge wealthy fuel consumers more to subsidise prices for the poor who have been severely impacted by inflation.

    Despite meeting almost all of the Fund’s conditions, the government is struggling to convince the lender to release the tranche. On a separate issue of securing confirmation on the external financing gap of $5 billion by June 2023, the Kingdom of Saudi Arabia and the United Arab Emirates have provided over $2 billion and $1 billion respectively.

    The formal agreements with these countries are expected to be signed soon. The Pakistani authorities are complaining that the IMF has placed prior actions before signing the staff-level agreement, which was not done in the past.

    According to The News, the IMF asks for confirmation from commercial banks before signing the agreement, while banks are asking for IMF’s board approval and the revival of the Fund program to refinance loans worth $2-3 billion.

    Finance Minister Ishaq Dar has assured US diplomat Andrew Schofer that the government is committed to completing the ongoing IMF program.

  • Pakistan to receive written guarantee from UAE for $1 billion loan

    Pakistan to receive written guarantee from UAE for $1 billion loan

    Pakistan is making progress towards securing a loan from the International Monetary Fund (IMF) with a $1 billion financing pledge from the United Arab Emirates (UAE) expected this week. Sources suggest that the UAE will provide written confirmation of the financing to the IMF through the Finance Secretary during the current annual meeting in Washington.

    To secure external financing for this fiscal year, the IMF has asked Pakistan to seek assurances from friendly countries and multilateral partners for funding its balance of payment gap. In addition to Saudi Arabia’s $2 billion pledge, the agreement with the IMF is also contingent on the UAE’s $1 billion commitment.

    According to sources within the Ministry of Finance, the UAE has finalised the agreement, and as soon as Pakistan receives a written guarantee from the Gulf state, the IMF will also be informed. This development follows requests from Pakistan’s Prime Minister and Finance Minister to UAE officials to complete the necessary prerequisites for the Fund.

    Pakistan is currently facing one of the most severe economic crises in its history, with consumer prices at a record high and interest rates raised to an all-time high. Due to a dollar shortage, the IMF has revised its growth forecast for Pakistan to 0.5% from the earlier estimate of 2%, causing supply chain disruptions and companies to halt production.

    The IMF is also assessing the coalition government’s proposed fuel discount for lower-income groups, which is planned to be financed by raising fuel prices for wealthier motorists. The finance minister has assured that the IMF has received all the required information.

    The finance minister had cancelled his scheduled in-person meetings with IMF officials in Washington but has repeatedly claimed that the staff-level agreement with the lender would be reached soon. Islamabad has been hosting an IMF mission since January to negotiate policy measures and secure $1.1 billion in funding for the cash-strapped economy, which is on the verge of collapse.

    The funds are part of a $6.5 billion bailout package approved by the IMF in 2019, which analysts argue is crucial for Pakistan to avoid defaulting on external payment obligations. The deal will also unlock other financing options to shore up Pakistan’s foreign exchange reserves, which have fallen to four weeks’ worth of import cover and help resolve the balance of payment crisis.

  • US Ambassador assures Pakistan of continued assistance for IMF bailout programme

    On Thursday, US Ambassador to Pakistan Donald Blome reassured Finance Minister Ishaq Dar that Washington would continue to assist Islamabad in unlocking a long-stalled International Monetary Fund (IMF) bailout. This bailout is intended to help the liquidity-challenged country’s economy avoid imminent default. The assurance was given during a meeting between the finance minister and the ambassador in the federal capital.

    According to details, the envoy was briefed on the progress of the Washington-based lender’s programme. During the meeting, FinMin Dar requested the US ambassador’s assistance in unlocking the bailout programme. He also informed him about a $2 billion commitment from Saudi Arabia and ongoing talks with the United Arab Emirates for financing $1 billion. The minister expressed the need for additional resources and financing, to which Blome promised cooperation from the United States.

    According to an official statement from the Ministry of Finance, Dar briefed the envoy on the country’s economic outlook and the challenges faced by the nation. He also shared the government’s pragmatic policy decisions aimed at stabilising and growing the economy.

    The statement noted that Blome expressed confidence in the government’s policies and programmes, supporting them for the economic sustainability of the country and the socio-economic upliftment of the masses. He extended his support to promote bilateral economic, investment, and trade relations between both countries.

    The two sides discussed matters of common interest and showed an interest in enhancing the existing bilateral relations between both countries. They also talked about various economic avenues through which both countries can strengthen their ties. This meeting with Blome took place days after FinMin Dar met with UAE’s ambassador to Pakistan, Hamad Obaid Ibrahim Salim Al-Zaabi, to discuss economic relations.

    Since early February, Islamabad has been hosting an IMF mission to negotiate a series of policy measures aimed at securing $1.1 billion in funding for the cash-strapped economy, which is on the verge of collapse.

    The IMF has requested Pakistan to secure assurances on external financing from friendly countries and multilateral partners to fund its balance of payment gap for this fiscal year, ending in June. The funds are part of a $6.5 billion bailout package the IMF approved in 2019, which analysts say is critical for Pakistan to avert defaulting on external payment obligations.

  • General Musharraf laid to rest in Karachi

    General Musharraf laid to rest in Karachi

    The funeral prayer of former President General (retd) Pervez Musharraf was performed in Malir Cantt, Karachi, after which he was laid to rest with full military honours.

    Former Army Chief General (retd) Qamar Javed Bajwa, and Gen (R) Ashfaq Parvez Kayani attended the prayer, among others.

    On February 5, Musharraf passed away in Dubai.

    Gen Musharraf’s body will be flown to Pakistan today

    A day earlier, it was reported that Musharraf’s body would be repatriated to Pakistan today from the United Arab Emirates (UAE), where he passed away on Sunday.

    Musharraf died at the age of 79 after a prolonged illness.

    The Pakistani embassy in the UAE had issued a No Objection Certificate (NOC) for the repatriation of Musharraf’s body to Pakistan at the request of his family.

    According to reports, Musharraf’s mortal remains were to be flown to his homeland at 11:30 am, Pakistan time. However, there has been a delay and the special jet will leave for Pakistan in the afternoon.