Pakistan headline inflation rises 29.2% year-on-year on back of gas price hike 

Pakistan headline inflation rises 29.2% year-on-year on back of gas price hike 
People buy pulses and grains at a wholesale market in Karachi on February 1, 2023. (AFP/File)
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Updated 01 December 2023
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Pakistan headline inflation rises 29.2% year-on-year on back of gas price hike 

Pakistan headline inflation rises 29.2% year-on-year on back of gas price hike 
  • Prices went up by 2.7 percent in November as compared to a 1 percent increase in the month before 
  • Analysts say increase in inflation figures for November is ‘in line with expectations’ after gas price hike 

ISLAMABAD: Pakistan’s consumer price index (CPI) jumped 29.2 percent in November on a year-on-year basis, the country’s statistics bureau said on Friday, with analysts attributing monthly increase in prices to a recent hike in gas tariff. 

The headline inflation was recorded at 26.8 percent in October and 23.8 percent in November last year, according to the Pakistan Bureau of Statistics (PBS). 

Prices went up by 2.7 percent in November as compared to a 1 percent increase in the month before and a rise of 0.8 percent in November 2022. 

Financial analysts say the increase in inflation figures for the month of November was “in line with the expectations” after the gas price hike. 

“The inflation for the month of November is in line with the expectations. The major impact has come from the gas tariff hike,” Samiullah Tariq, a director at the Pakistan Kuwait Investment Company, to Arab News. 

“Going forward we hope that the inflation would ease off.” 

In late October, Pakistan announced a sharp increase in the price of natural gas for most households and industries ahead of the cash-strapped country’s first review of a $3 billion International Monetary Fund (IMF) bailout it entered in July. 

While the government did not increase the tariff for the protected category (57 percent of the domestic consumers), it increased the fixed monthly charge from Rs10 to Rs400 for this category. 

The price of gas was set at Rs2,100/mmbtu for export process industry, Rs2,400/mmbtu for export captive industry, Rs2,200/mmbtu for non-export process industry, Rs2,500/mmbtu for non-export captive industry, and Rs3,600/mmbtu for the CNG sector. 

In November, Pakistan cleared the first review of the nine-month standby arrangement, paving the way for Islamabad to receive a second tranche of around $700 million from the lender. 

Among the food items that recorded highest increase in November prices were tomatoes (60.42 percent), potatoes (14.92 percent), tea (12.95 percent), onions (12.32 percent), dry fruits (7.91 percent), fish (7.75 percent), eggs (7.15 percent) and fresh vegetables (4.47 percent), according to the PBS. 

Non-food items whose prices recorded the highest increased included gas charges (280.55 percent), woolen readymade garments (8.16 percent), dental services (5.19 percent), transport services (5.11 percent) and solid fuel (3.52 percent). 


Pakistan rudderless after white-ball skipper Babar Azam resigns

Pakistan rudderless after white-ball skipper Babar Azam resigns
Updated 02 October 2024
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Pakistan rudderless after white-ball skipper Babar Azam resigns

Pakistan rudderless after white-ball skipper Babar Azam resigns
  • Pakistan’s cricket has suffered due to revolving door of bosses and allegations of nepotism 
  • Wicketkeeper-batsman Mohammad Rizwan is considered front-runner for white-ball captain

KARACHI: Pakistan’s limited-overs team was leaderless on Wednesday after captain Babar Azam resigned, compounding a management crisis experts say has badly affected the team’s international performance.

Pakistani cricket is flailing in all formats after a series of stinging losses, with a revolving door of bosses and allegations that nepotism has seeped into the sport.

Azam announced his resignation on his personal social media just before midnight on Tuesday, before an official Pakistan Cricket Board (PCB) statement more than 12 hours later.

Pakistan cricket has plowed through four coaches, three board heads and four captains in the past two years, at the same time sliding down international standings.

“It’s a leadership crisis,” former Pakistan captain Rashid Latif told AFP. “Pakistan cricket is in the ICU with no specialist for treatment.”

Azam’s resignation came hours before England touched down on Wednesday for a three-match Test series that follows Pakistan’s humiliating 2-0 home series defeat to lowly ranked Bangladesh last month.

It was 29-year-old Azam’s second turn as captain after a flip-flop saw him resign in all three formats following Pakistan’s early exit from the ODI World Cup in November.

He returned in March to captain white-ball competitions but lasted just six months, leaving Pakistan leaderless with four major series coming up and the Champions Trophy next year.

Azam was captain when Pakistan crashed out of the T20 World Cup after a bruising loss to newcomers the United States.

He said he stood down to focus on his playing role as a batsman.

“He should not have accepted captaincy again,” Latif said.

“Neither the team was performing nor was he scoring big,” he said. “This resignation has come very late and that has not only cost him badly, but also the team.”

The PCB said on Wednesday the national selection committee would begin the hunt for a successor.
“He believes that dedicating himself fully to his batting will enable him to play a more decisive role in the team’s success in the shorter formats,” a PCB statement said.

Wicketkeeper-batsman Mohammad Rizwan is considered the front-runner for the job.

Azam is slated to play in the England Test series starting in Multan on Monday, but red-ball skipper Shan Masood is also facing calls to step down over dire performances.

Pakistan has lost all five matches under his tenure, which began last year.


Pakistan signs agreement with Denmark to restructure maritime sector

Pakistan signs agreement with Denmark to restructure maritime sector
Updated 02 October 2024
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Pakistan signs agreement with Denmark to restructure maritime sector

Pakistan signs agreement with Denmark to restructure maritime sector
  • Agreement to pave the way for Maersk to invest $2 billion in Pakistan, says maritime affairs minister
  • MoU to help Pakistan Marine Academy upgrade curriculum and equipment, train country’s ports

ISLAMABAD: Pakistan’s Minister for Maritime Affairs Qaiser Ahmed Shaikh signed an agreement with Denmark’s Industry, Business and Financial Affairs Minister Morten Bodskov on Wednesday which would allow the South Asian country to restructure its maritime sector and provide technical trainings to its ports, state media reported. 

With access to the Arabian Sea, Pakistan’s sea ports in the coastal city of Karachi are vital for international trade, help facilitate international trade and provide jobs for thousands of people in the country. 

Pakistan has been keen on restructuring and upgrading its ports. In August, state media reported that Danish shipping firm Maersk will invest $2 billion in Pakistan’s port and transport infrastructure over the next two years. 

“After this MOU, Maersk (Danish Shipping Company) is ready to invest almost two billion dollars in Pakistan’s maritime sector,” state-run Associated Press of Pakistan (APP) reported. 

Shaikh said the agreement would help Pakistan integrate logistics hubs in all ports, establish a deep-water container terminal in Karachi, create an International Maritime Organization (IMO) and European Union (EU)-compliant ship recycling facilities. 

He also said the memorandum of understanding between the two countries will help Pakistan Marine Academy upgrade its curriculum and equipment and provide continuous technical and training assistance to Pakistani ports.

Shaikh noted that Maersk has the highest market share of 20 percent for containerized imports and exports in Pakistan. Apart from that, the global market capital of this company is around 175 billion Danish Krone, he said. 

“The Danish Ambassador to Pakistan Jakob Linulf also thanked the Government of Pakistan and Minister for Maritime Affairs on this progress,” APP said. “Both sides were willing to strengthen ties for the growth of maritime sector.”


Provinces agree ‘in principle’ to National Fiscal Pact as Pakistan moves to implement IMF conditions

Provinces agree ‘in principle’ to National Fiscal Pact as Pakistan moves to implement IMF conditions
Updated 02 October 2024
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Provinces agree ‘in principle’ to National Fiscal Pact as Pakistan moves to implement IMF conditions

Provinces agree ‘in principle’ to National Fiscal Pact as Pakistan moves to implement IMF conditions
  • IMF is pushing Pakistan to achieve fiscal discipline, abolish duplication, levy agriculture taxes through provincial governments
  • To achieve this, the federal government is taking all provincial governments on board by signing a National Fiscal Pact

ISLAMABAD: An official from Pakistan’s finance ministry said this week all federating units had agreed “in principle” to a new financial pact that would help bring fiscal discipline, levy new taxes, particularly on agriculture, and streamline expenses for development and welfare projects.

Last week the IMF approved a $7 billion, 37-month loan program for Pakistan, which will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.” 

The IMF package comes with tough conditions such achieving fiscal discipline, abolishing duplication and levying agriculture taxes through provincial governments. 

To achieve this, the federal government is taking all provincial governments on board through the National Fiscal Pact, a ministry of finance official told Arab News, requesting anonymity as he was not authorized to speak to the media on the record. 

He said all federating units had agreed to the National Fiscal Pact (NFP) “in principle,” while its modalities would be finalized in the coming months.

“A ministerial committee will be constituted by the federal government to oversee the implementation of the pact,” the official added.

Muzzammil Aslam, an adviser on finance and inter-provincial coordination to the chief minister of the Khyber Pakhtunkhwa province, called the NFP a “good initiative.”

“Like all other provinces, we [Khyber Pakhtunkhwa] have agreed to the pact as we feel this will help protect rights of the people of KP,” he told Arab News, confirming that the federal government would constitute a ministerial committee in the “coming weeks” to discuss procedural issues and ensure the pact’s implementation.

“It will help bring fiscal discipline, end duplication of projects among the center and the provinces, and streamline the expenses,” he said.

“This pact is not an alternative to the National Finance Commission,” Aslam clarified, referring to a constitutional mechanism of revenue sharing between the federation and provinces. Starting from 1974, seven NFC awards have been announced up till now, with the most recent one in Dec. 2009. 

Under the NFC, the provincial share in federal taxes stands at around 57.5 percent, but the federal government still has responsibilities in areas like provincial road infrastructure, health and education.

“National Fiscal Pact is aimed at introducing synergy among the center and the provinces with respect to revenue collection and spending,” Aslam said. 

Under the new pact, he said, it had been decided that the provincial governments would be empowered to collect taxes on agriculture and other fields, which were otherwise federal subjects.

Apart from this, the provincial governments were running independent welfare projects for the needy, while the federal government was disbursing billions of rupees annually through the national Benazir Income Support Program (BISP), Aslam explained. 

“The focus is to end this kind of duplication through the new pact,” he said.

“Also, there are numerous development projects that are being financed in the provinces through the center which would be transferred to the respective provincial governments.”

The finance adviser said the pact would also help resolve “financial issues, discrimination and discretion” among the center and the provinces to benefit the public equally in all federating units.

The governments of the Punjab, Balochistan and Sindh provinces could not be immediately reached for comment on the new pact.


Punjab tense with road blocks, police deployment amid protests by ex-PM Khan’s party

Punjab tense with road blocks, police deployment amid protests by ex-PM Khan’s party
Updated 2 min 56 sec ago
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Punjab tense with road blocks, police deployment amid protests by ex-PM Khan’s party

Punjab tense with road blocks, police deployment amid protests by ex-PM Khan’s party
  • PTI is protesting proposed constitutional amendments it says are aimed at curtailing judiciary’s independence 
  • Rallies announced in Bahawalpur, Faisalabad, Mianwali cities but Punjab government has banned public gatherings

ISLAMABAD: Many cities and towns in the Pakistani province of Punjab remained tense on Wednesday with heavy police deployment and road blockades as supporters of the opposition Pakistan Tehreek-e-Insaf (PTI) came out to protest constitutional amendments the party says are aimed at curtailing the independence of the judiciary.

The PTI of former prime minister Imran Khan had announced rallies in the cities of Bahawalpur, Faisalabad and Mianwali against the proposed constitutional amendments, which the ruling coalition of Premier Shehbaz Sharif denies are meant to suppress judicial independence. 

In response to the protest calls, the Punjab home ministry imposed Section 144, a legal provision that allows a ban on the gathering of more than four people on account of security threats. The Home Department said political gatherings and rallies could provide a soft target to militants and were likely to cause “threat to public peace and order as well as inconvenience to public at large.” 

Local media widely reported that various thoroughfares and arteries across Punjab had been cordoned off after Section 144 was imposed. 

In Mianwali, Internet services were blocked city-wide and the PTI said police were “tear gas shelling peaceful protesters,” calling on the provincial chief minister and police not to attack “common citizens who are protesting as per their right!”

In a separate clip, a crowd of Khan supporters can be seen fleeing as tear gas shells are fired by police personnel. In another footage, Khan supporters can be seen chanting slogans during a motorcycle rally in Mianwali. 

Major routes leading in and out of Bahawalpur were sealed, with containers placed at strategic locations such as the Qutubpur Toll Plaza and Mewati in Dunyapur, as well as at the Empress Bridge connecting the cities of Lodhran and Bahawalpur. Check posts had been erected on five main highways leading from Lodhran to Bahawalpur.

In Faisalabad, the PTI had announced they would hold a protest at Chowk Ghanta Ghar at 2pm but all roads leading to the venue were blocked off on Wednesday afternoon and there was heavy police deployment. 

In a clip widely shared from Chowk Ghanta Ghar in Faisalabad, dozens of Khan supporters can be seen thrashing police officers who later break free and escape. 

The exit and entry points of the city were also closed with shipping containers and eight major markets in Faisalabad were shut down and sealed with barbed wire. 

Pakistani news channel Samaa reported police had conducted raids across Faisalabad, arresting over 200 PTI supporters, including some provincial legislators. 

Despite the blockades and police deployment, the PTI said its supporters were going in large numbers to the designated venues of the protests.

Aun Abbas Bappi, the PTI president for South Punjab, called on people to come out and exercise their right to protest.

“This war is not just Imran Khan’s war,” he said in a message on X. “This war is my war and your children’s war so go out today with your families and children. Come out and record your peaceful protest.”

The PTI has challenged the imposition of Section 144 in the Lahore High Court (LHC), saying the government had banned gatherings to block PTI supporters from staging protests, which was a constitutional right.

PREVIOUS PROTESTS

The garrison city of Rawalpindi, bordering the federal capital of Islamabad, remained tense last Saturday as police fired tear gas shells to disperse hundreds of Khan supporters ahead of a protest in the city to demand the release of Khan, who has been in jail since August last year on multiple charges that he says are politically motivated to keep him and his party out of politics.

After a PTI rally in Islamabad on Sept. 8, over a dozen legislators from the party were arrested on charges of violating an agreement based on which permission for the gathering was issued, including abiding by a time limit and supporters sticking to certain routes to reach the designated venue for the rally on Islamabad’s outskirts.

Khan’s party says the challenges in holding rallies are part of an over-year-long crackdown it has faced since protesters allegedly linked to the party attacked and damaged government and military installations on May 9, 2023, after the former premier’s brief arrest the same day in a land graft case.

Hundreds of PTI followers and leaders were arrested following the riots and many remain behind bars as they await trial. The military, which says Khan and his party were behind the attacks, has also initiated army court trials of at least 103 people accused of involvement in the violence.

Khan, who has been in jail since last August, was ousted from the PM’s office in 2022 in a parliamentary vote of no confidence after what is widely believed to be a falling out with Pakistan’s powerful military, which denies being involved in politics.


England cricket team arrives in Pakistan for three-match Test series 

England cricket team arrives in Pakistan for three-match Test series 
Updated 02 October 2024
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England cricket team arrives in Pakistan for three-match Test series 

England cricket team arrives in Pakistan for three-match Test series 
  • World Test Championship cycle matches to be played in Multan, Rawalpindi
  • Pakistan have not won a Test match on home ground since February 2021

ISLAMABAD: The England cricket team arrived in Pakistan today, Wednesday, to play a three-match Test series from Oct. 7-28, a month after Bangladesh completed a 2-0 series sweep against Pakistan. 

The three-match series is part of the World Test Championship cycle. After being whitewashed by Bangladesh at home this month, Pakistan are placed at number eight on the points table, just ahead of the West Indies. 

The English side is led by all-rounder Ben Stokes and will resume practice from Oct. 4 after resting on Oct. 2-3.

“The first Test match between Pakistan and England will be played at the Multan Cricket Stadium from October 7. The second Test will also be played in Multan from October 15, while the third Test will be played in Rawalpindi from October 24.”

Pakistan have a busy cricket schedule in the months to come, with the green shirts scheduled to play an away white-ball series against Australia in November before playing another white-ball series against Zimbabwe in November and December. 

The green shirts will tour South Africa for a T20, ODI and Test series in December and January before they host the West Indies for a Test series the same month.

Pakistan’s recent lackluster performances in all three formats of the game have invited scathing criticism from cricket experts and fans alike. Both have blamed a lack of quality pitches and infrastructure in the country for Pakistan’s hapless performances while many also point to frequent changes in the PCB’s management and a lack of unity in the team for Pakistan’s losses.

The country has not won a Test match at home since Feb. 2021.

On Wednesday, the PCB confirmed batting ace Babar Azam had tendered his resignation as Pakistan men’s white-ball captain on Tuesday evening, and it had been accepted by the Board. The national selection committee has been tasked with beginning the process of formulating future white-ball cricket strategies, including recommending a new captain, the PCB said. 

“Although the PCB had backed Babar Azam as the white-ball captain, his decision to step down reflects his desire to focus more on making a greater impact as a player.

“This decision is a testament to his professionalism and commitment to Pakistan cricket. He believes that dedicating himself fully to his batting will enable him to play a more decisive role in the team’s success in the shorter formats.

“The PCB acknowledges Babar’s contributions as white-ball captain, his ability to prioritize the team’s needs and his unwavering dedication to Pakistan cricket. The PCB will continue to support Babar Azam, recognizing he still has much to offer both as a world-class batter and a senior statesman of the team.”

Pakistan squad: Shan Masood (captain), Saud Shakeel (vice-captain), Aamir Jamal, Abdullah Shafique, Abrar Ahmed, Babar Azam, Mir Hamza, Mohammad Huraira, Mohammad Rizwan (wicket-keeper), Naseem Shah, Noman Ali, Saim Ayub, Salman Ali Agha, Sarfaraz Ahmed (wicket-keeper), and Shaheen Shah Afridi, Zahid Mehmood.

England squad: Ben Stokes (captain), Rehan Ahmed, Gus Atkinson, Shoaib Bashir, Harry Brook, Brydon Carse, Jordan Cox, Zak Crawley, Ben Duckett, Jack Leach, Ollie Pope, Matthew Potts, Joe Root, Jamie Smith, Olly Stone, Chris Woakes.