Pakistanis feel effects of Ramadan price hikes despite lower inflation

Pakistanis feel effects of Ramadan price hikes despite lower inflation
People visit a bazaar to purchase goods in preparation for the upcoming Muslim fasting month of Ramadan, in Karachi, Pakistan, on February 27, 2025. (AP)
Short Url
Updated 28 February 2025
Follow

Pakistanis feel effects of Ramadan price hikes despite lower inflation

Pakistanis feel effects of Ramadan price hikes despite lower inflation
  • Consumer inflation rate fell to lowest in over nine years, dropping to 2.4 percent year-on-year in January
  • Ramadan in Pakistan is expected to begin on March 1 or 2, depending on the sighting of the crescent

KARACHI: Pakistanis thronged markets this week to shop for the upcoming holy month of Ramadan, keeping a watchful eye on food prices as the South Asian nation navigates a tricky path to economic recovery.

Pakistan’s consumer inflation was expected to remain stable in February and maintain a downward trajectory compared to the previous year, the finance ministry said in its monthly economic outlook report on Thursday (February 27).
Inflation has eased since last year with CPI coming in at 2.4 percent in January compared to 24 percent in the same period last year. A drop in inflation means that prices are now rising more slowly. But shoppers at a market in Karachi, Pakistan’s biggest city, said they are still feeling the pinch.
“If you compare people’s salaries from last year to this year, they have not increased accordingly, they are facing the same inflation,” Azeem Khan, a government employee, told Reuters.
The country’s economy is on a long path to recovery after being stabilized under a $7 billion International Monetary Fund program secured last year. An IMF mission is due to arrive in Islamabad next week for the first review of the global lender’s facility.
Another shopper said the price increase is due to the arrival of Ramadan, the month during which Muslims fast from dawn to dusk.
One shopkeeper, however, said the prices were stable this year compared to last year, and that prices of some commodities have decreased.
“This year the prices are normal and the prices of some items like lentils, spices and vegetables have come down,” shopkeeper Mohammad Aslam said.
Ramadan is expected to begin in Pakistan on Saturday (March 1) or Sunday (March 2) as the first day of fasting, subject to the sighting of the new moon.


Russian delegation in Pakistan to discuss ‘economic cooperation’ — embassy

Russian delegation in Pakistan to discuss ‘economic cooperation’ — embassy
Updated 29 sec ago
Follow

Russian delegation in Pakistan to discuss ‘economic cooperation’ — embassy

Russian delegation in Pakistan to discuss ‘economic cooperation’ — embassy
  • Pakistan, Russia have strengthened ties in recent years through increased dialogue, trade
  • In 2023, Islamabad began purchasing discounted Russian oil banned from European markets

ISLAMABAD: A Russian delegation arrived in Pakistan today, Friday, for a day-long visit to discuss economic cooperation, the Russian embassy in Islamabad said.

The visit comes days after state media reported Russian Ambassador to Pakistan Albert P. Khorev had announced cooperation with Islamabad this year in the energy and industrial sectors, including the modernization of a state-owned steel mill.

Pakistan and Russia, once Cold War rivals, have strengthened ties in recent years through increased dialogue and trade. In 2023, Islamabad began purchasing discounted Russian crude oil banned from European markets due to Russia’s war in Ukraine and also received its first shipment of liquefied petroleum gas from Moscow. 

“It is a trade delegation that came to discuss economic cooperation between Russia and Pakistan,” Russian Embassy Public Relations Officer Igor Kolesenkove told Arab News. “More details will be revealed later.”

He did not respond to questions on whether Pakistan Steel Mills would be on the talks’ agenda. 

A team of technical experts from Russia visited Pakistan in January to assess Pakistan Steel Mills, one of several state-owned firms Islamabad aims to privatize to revive loss-making entities and deliver reforms under a $7 billion International Monetary Fund bailout.

During a meeting earlier this month between Ambassador Khorev and Interior Minister Mohsin Naqvi, both countries agreed to activate a bilateral anti-terrorism dialogue and discussed enhancing cooperation in counter-terrorism and anti-narcotics efforts, with Pakistani officers invited to participate in anti-narcotics training programs in Moscow and Siberia.

Last year, Russian Deputy Prime Minister Alexei Overchuk visited Pakistan to discuss trade, energy, connectivity, and defense ties. 


‘Don’t care’: Hosts’ exit deflates Champions Trophy buzz in Pakistan

‘Don’t care’: Hosts’ exit deflates Champions Trophy buzz in Pakistan
Updated 29 min 37 sec ago
Follow

‘Don’t care’: Hosts’ exit deflates Champions Trophy buzz in Pakistan

‘Don’t care’: Hosts’ exit deflates Champions Trophy buzz in Pakistan
  • The South Asian country has been gradually returning to hosting international teams after years of militancy marked it a no-go zone
  • Security in cities has vastly improved in recent years, including in Karachi, Lahore and Rawalpindi, where the matches are being held

KARACHI: Champions Trophy fever in Pakistan has plummeted after the hosts crashed out of the first major cricket event in the country in three decades without winning a game.
“It feels like attending a wedding where you don’t know the bride or groom,” said Kashan Khan, a medical student who watched Pakistan get beaten by New Zealand by 60 runs in the opening match in Karachi last week.
The defending champions then lost to great rivals India by six wickets to seal their fate, before their dead-rubber last group game against Bangladesh on Thursday was washed out.
“Pakistan’s poor performance has drained my enthusiasm. I don’t care about watching other teams now,” added Khan.
Pakistan’s failure to advance beyond the group phase or even win a game was a huge letdown in a country that has been gradually returning to hosting international teams after years of militancy saw it marked as a no-go zone.
Security in cities has vastly improved in recent years, including in Karachi, Lahore and Rawalpindi, where the matches are being held.
But disheartened fans have begun abandoning the tournament.
Outside Rawalpindi Stadium ticket-holders were seen trying to sell their unwanted seats ahead of Pakistan’s match against Bangladesh, but there were no takers.
“I had three tickets but no one wanted to buy them,” said Farooq Ali.
“I even tried giving them away for free, but my friends weren’t interested.”
For many, the final on March 9 holds little appeal, particularly given its location is still undecided.
Arch-rivals India, with which Pakistan has fought several wars, refused to visit its neighbor and are playing all their matches in Dubai.
In painful contrast to Pakistan’s woes, India are into the semifinals and if they reach the title decider, the final will be moved from Lahore to Dubai.
“If Pakistan isn’t playing in it, why should we care?” asked Amna Mashadi, who watched the tournament on television.
Pakistan’s latest flop dealt a severe blow not just to supporters, but also to the financial ecosystem surrounding the eight-nation event.
With Pakistan out, TV viewership has nose-dived, advertising revenues have shrunk and sponsors are demanding reductions in their campaign costs.
Pakistan’s stated-owned PTV and Ten Sports bought the joint broadcast shares of the 15 matches, each paying 1.2 billion rupees ($4.25 million).
Sources with knowledge of the broadcast deal told AFP that the two broadcasters have already lost close to 180 million rupees in two rained off matches in Rawalpindi.
Broadcasters are bracing for losses as they search for takers for the usually prime advertising spots in the semifinals and final.
“Sports advertising is always a gamble,” said a senior employee at a Pakistani company, one of the tournament’s top advertisers.
“Sponsorship deals cover the whole tournament, so pulling out isn’t an option.
“But when the national team exits early, consumers go away and the sale of the product suffers.”
Shopkeeper Mohammad Rizwan — he coincidentally has the same name as the Pakistan captain — had anticipated selling 60,000 cricket shirts of the home team.
Instead he only sold about a third of that.
“The demand for Pakistan shirts was overwhelming and in the week leading up to the event, I doubled my order,” Rizwan told AFP.
“But as soon as the team started losing, the demand plummeted. Now, I have huge unsold stock in my warehouse.
“It’s a massive loss.”
Renowned television and film actor Adnan Siddiqui fears that Pakistan’s underwhelming performance might push young fans away from the sport altogether.
“I grew up watching cricket late at night or early in the morning,” Siddiqui told AFP.
“But after these defeats, my son has lost interest completely. The real loss here is of the next generation of players and fans.”
Siddiqui flew to watch the India-Pakistan match in Dubai on Sunday and returned heartbroken.
“We used to beat India frequently but now they are well ahead of us in terms of skill and bravery. Our team looked scared.”
Despite the gloom some remain hopeful.
“This is a low point but the sun will rise again,” said Khalil Khan, a club-level cricket coach in Karachi.
“Cricket is the only sport that puts Pakistan on the global map and I’m sure our team will bring joy again in the future.”


Top cleric among several injured in blast at religious seminary in northwest Pakistan — rescue official

Top cleric among several injured in blast at religious seminary in northwest Pakistan — rescue official
Updated 26 min 2 sec ago
Follow

Top cleric among several injured in blast at religious seminary in northwest Pakistan — rescue official

Top cleric among several injured in blast at religious seminary in northwest Pakistan — rescue official
  • Darul Uloom Haqqania is Pakistan’s largest Islamic seminary and alma mater of several Afghan Taliban leaders
  • Blast occurred when large number of worshippers had gathered for Friday prayers at seminary located in Akora Khattak

ISLAMABAD: Several people, including a top cleric, were injured in a blast at a religious seminary in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, a rescue official said on Friday.

Darul Uloom Haqqania is the country’s largest Islamic seminary and the alma mater of several Afghan Taliban leaders. The blast at the seminary occurred when a large number of worshippers had gathered at a mosque inside the building located in the town of Akora Khattak in KP’s Nowshera district.

“Upon receiving the information, six ambulances of Rescue 1122 along with medical teams and fire team reached the spot,” a Rescue 1122 spokesperson told Arab News. “According to initial reports, several people were injured in the explosion.”

He said the injured included former member of the National Assembly, Maulana Hamidul Haq, who is the administrator of the seminary and chief of the Jamiat Ulema-e-Islam (S) party. His father Sami ul Haq is widely referred to as the ‘Father of the Taliban.’

Local media reported that at least five people were killed in the explosion, but Arab News could not confirm this. 

The Darul Uloom Haqqania university is widely believed to be a launching pad for the Taliban movement in the 1990s and is still often described as the incubator for militants, though the seminary denies the claims. Mullah Mohammed Omar, who founded the Taliban movement following the Soviet withdrawal from Afghanistan in 1989, was a student of the seminary. 

This is a developing story.


Pakistan expresses concern over ‘grave situation’ in Gaza, Kashmir

Pakistan expresses concern over ‘grave situation’ in Gaza, Kashmir
Updated 28 February 2025
Follow

Pakistan expresses concern over ‘grave situation’ in Gaza, Kashmir

Pakistan expresses concern over ‘grave situation’ in Gaza, Kashmir
  • Palestinian territory, encompassing Gaza Strip and West Bank, including East Jerusalem, has been occupied by Israel since 1967
  • Pakistan does not recognize Israel, calls for an independent Palestinian state based on “internationally agreed parameters”

ISLAMABAD: The foreign office said on Friday Pakistan had expressed concern over the “grave situation” in Gaza and Indian-administered Kashmir during foreign minister Ishaq Dar’s participation in a recent United Nations Security Council session on multilateralism and global governance. 

Palestinian territory – encompassing the Gaza Strip and West Bank, including East Jerusalem – has been occupied by Israel since 1967. Pakistan does not recognize Israel and has consistently called for an independent state of Palestine based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.

Israel’s latest war on Gaza, which began after a Oct. 7, 2023 attack by Hamas, has killed more than 50,000 Palestinians and displaced almost all of Gaza’s 2 million population, laying waste to swathes of neighborhoods, schools and hospitals.

Earlier this month, the deputy prime minister and foreign minister of Pakistan, Ishaq Dar, traveled to New York to participate in a high-level meeting of the UNSC on practicing multilateralism and reforming and improving global governance.

“In his remarks [at UNSC meeting], the deputy prime minister and foreign minister emphasized the need for international cooperation and commitment to multilateralism and called for upholding principles of the UN Charter, including self-determination, the non-use of force, respect for sovereignty and the peaceful resolution of disputes,” Shafqat Ali Khan, the spokesperson for the foreign office, said.

“The deputy prime minister and foreign minister expressed deep concerns over the grave situation in occupied Palestine and Gaza and the Indian illegally occupied Jammu and Kashmir.”

Relations between India and Pakistan have stood frozen since New Delhi’s revocation in 2019 of the special autonomous status of the part of the Himalayan valley of Kashmir it rules. The two neighbors have fought three wars, two of them over Kashmir, which they both claim in full but rule in part.


World bank says economic stabilization ‘taking hold’ in Pakistan

World bank says economic stabilization ‘taking hold’ in Pakistan
Updated 28 February 2025
Follow

World bank says economic stabilization ‘taking hold’ in Pakistan

World bank says economic stabilization ‘taking hold’ in Pakistan
  • Pakistan and World Bank last month signed an agreement for a ten-year plan for $20 billion in development loans
  • Pakistan currently under IMF bailout that requires it to boost government revenues, external sources of financing

ISLAMABAD: The World Bank said on Friday economic stabilization was “taking hold” in Pakistan, making this an opportune moment for the group to sign an agreement for a ten-year plan to focus $20 billion in development lending in the cash-strapped country.

The new plan, known as the Country Partnership Framework, was announced by the World Bank last month and will focus the global institution’s pledge of $20 billion in areas including clean energy and climate resilience in the ten years from 2026.

The country has teetered on the brink of economic crisis for several years and economists and international financial institutions have called for major economic reforms. Pakistan is currently under a $7 billion International Monetary Fund bailout program, which requires the country to boost government revenues and shore up external sources of financing, much of which comes from loans from China and Gulf nations.

“This is an important moment for the partnership between the World Bank Group and Pakistan as we engage on this journey at a particular moment for Pakistan where stabilization is taking hold and there are new ambitions and new plans for development on the long term that are very aligned with the prioritizes of the World Bank Group in the country,” WB Country Director for Pakistan, Najy Benhassine, said in a video message on X.

“This is a groundbreaking joint commitment with the government of Pakistan both at the federal and provincial level to commit to focus on six of the most acute development challenges that the country is facing.”

The World Bank’s lending for Pakistan will start in 2026 and focus on six outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development and increasing private investment.

The finance ministry’s monthly outlook report said this week Pakistan’s consumer inflation was expected to remain stable in February and maintain a downward trajectory compared to the previous year. Inflation has eased since last year with CPI coming in at 2.4 percent in January compared to 24 percent in the same period last year. Authorities have credited the downward trend to economic stabilization under the IMF program secured last summer.

An IMF mission is due to arrive in Islamabad next week for the first review of the global lender’s facility.

“The primary surplus is expected to improve further in the coming months,” the finance ministry said, pointing to one of the benchmarks identified by the IMF.

The report also said that foreign remittances, a crucial lifeline for Pakistan’s economy, were expected to rise.

“Workers’ remittances recorded robust inflows of $20.8 billion during July-Jan FY2025, marking a 31.7 percent increase over $15.8 billion last year,” the ministry said.