Pakistan central bank surprises with hold on key policy rate

Pakistan central bank surprises with hold on key policy rate
The emblem of the State Bank of Pakistan during a news conference in Karachi, Pakistan, on Monday, Jan. 23, 2023. (Getty Images/ File)
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Updated 11 min 39 sec ago
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Pakistan central bank surprises with hold on key policy rate

Pakistan central bank surprises with hold on key policy rate
  • In widely unexpected move, Pakistan’s central bank held key policy rate at 12 percent 
  • Central bank has slashed rates by 1000 bps from all time high of 22 percent in June 2024

KARACHI: Pakistan’s central bank held its key policy rate at 12 percent on Monday, it said in a statement, a widely unexpected move which halted an easing cycle that witnessed six straight reductions since June.
The central bank has slashed rates by 1000 bps from an all time high of 22 percent in June 2024, to revive economic sentiment and growth, while navigating reforms under a $7 billion facility from the International Monetary Fund (IMF) in September.
“On balance, the MPC (monetary policy committee) assessed the current real interest rate to be adequately positive on forward-looking basis to sustain the ongoing macroeconomic stability,” the bank statement said.
The State Bank of Pakistan (SBP), despite the halt in cuts, is one of the most aggressive central banks among central banks of emerging markets during the current easing cycle and has topped the 625 bps in rate cuts it did in 2020 during the COVID-19 pandemic.
At its last policy meeting, SBP kept its forecast of full-year GDP growth at 2.5 percent to 3.5 percent, and predicted faster growth would help boost foreign exchange reserves that had been lacklustre.
Pakistan’s economy grew by 0.92 percent in the first quarter of the fiscal year 2024-25 which ends in June.
Ten of 14 analysts surveyed by Reuters expected the central bank to cut its key rate, while four expected it to hold the rate. Analysts surveyed said they expect inflation may pick up in May as the base year effect wears off.
Pakistan’s consumer inflation rate slowed to a near decade low of 1.5 percent in February, largely due to a high year-ago base. That was below the government’s forecast and significantly lower than a multi-decade high of around 40 percent in May 2023. 


PM calls for improving awareness of digital wallet use for full utilization of Ramadan package 

PM calls for improving awareness of digital wallet use for full utilization of Ramadan package 
Updated 6 sec ago
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PM calls for improving awareness of digital wallet use for full utilization of Ramadan package 

PM calls for improving awareness of digital wallet use for full utilization of Ramadan package 
  • Previously, annual Ramadan package used to be administered by utility stories that sold essential food items at reduced rates
  • Under new system, government has deposited Rs5,000 in digital wallets for four million families to make withdrawals from 

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed relevant ministries, the central bank, and private partners to improve awareness of using digital wallets so that poor families could fully utilize a Rs20 billion ($71.4 million) Ramadan relief package.

Announcing the package at the start of this month, the government said it would credit Rs5,000 ($17.87) into digital wallets for around 4 million families across the country to support them in the holy month of Ramadan.

During a visit on Monday to the National Telecommunication Corporation Headquarters to monitor the execution of the Ramadan program, Sharif was informed that around 2.8 million entitled accounts had been credited with Rs5,000 each but money had only been withdrawn from 683,000 accounts. 

“As 94 percent of accounts have been established, the withdrawal ratio is just 22 percent,” the PM was quoted as saying by state-run APP news agency.

“There is a big gap between disbursement and withdrawal, which shows a lack of awareness among the people,” the PM added, calling on the governor central bank to join the campaign to ensure that maximum people benefitted from the program.

In the past the annual Ramadan relief package would be implemented through state-run utility stores, from where low-income households could buy essential commodities such as wheat, sugar, oil, and pulses, among other items, ar reduced prices. However, each year, consumers complain of long queues at the stores, limited stock availability, substandard food items, and difficulties with the process of identification verification needed to receive the discounted package at utility stores, which led the government to announce it would no longer utilize utility stores to administer its Ramadan program. 

Other than in Ramadan also, utility stores have been plagued by reports of corruption and mismanagement for years, with consumers complaining of substandard merchandise being sold and staff accused of vending subsidized products in the open market.

During Ramadan in Pakistan, there is a significant increase in the demand for essential food items at subsidized prices, which overwhelms the capacity of utility stores, causing long lines and potential shortages. 

Ensuring equitable distribution of the package across different regions and demographics can also be difficult in a country of 241 million people, sometimes leading to some areas receiving less benefits than others. To prevent abuse, the government implements strict verification processes like CNIC checks, which also leads to delays and inconvenience for customers. 

The allocated stock of subsidized items at utility stores is also often not sufficient to meet the high demand during Ramadan, leading to disappointment for customers who cannot purchase everything they need. 

“This [digital wallets] was a new concept to say goodbye to the utility stores forever due to the massive complaints of worst corruption of public money, which was also an injustice to the common man,” Sharif said. “The issue of poor quality and corruption have been done away with through a new modern digital wallet.”

The PM also urged people to call the program helpline at 9999 to get their financial support without any delay.


Global rights watchdog classifies Pakistan as ‘repressed’ in civic freedom report

Global rights watchdog classifies Pakistan as ‘repressed’ in civic freedom report
Updated 40 min 19 sec ago
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Global rights watchdog classifies Pakistan as ‘repressed’ in civic freedom report

Global rights watchdog classifies Pakistan as ‘repressed’ in civic freedom report
  • Online platform CIVICUS blames Pakistan for stifling protests, criminalizing activists and restricting digital spaces
  • Includes Pakistan with Congo, Serbia, Italy and US among countries “experiencing rapid declines in civic freedoms“

ISLAMABAD: International rights watchdog CIVICUS classified Pakistan as “repressed” in its latest report on civic freedom on Monday, accusing authorities of placing restrictions on social media platforms, stifling protests from opposition parties and criminalizing activists. 

Pakistan’s rights groups and opposition parties have highlighted what they say is growing suppression of their fundamental rights over the past few years. They point to legislations in recent months that recommend hefty fines and jail terms for those spreading “fake news” online, a ban on social media platform X that has been in place since February last year, arrests of opposition leaders and their supporters, and alleged harassment of journalists. 

Pakistan’s government denies the allegations, saying that its legislations ensure data privacy on social media platforms, and it only takes action against violent protesters who take the law into their hands. 

According to the latest report compiled by CIVICUS, an online platform that tracks the latest developments to civic freedoms worldwide, Pakistan joins Congo, Serbia, Italy and the US in this year’s watchlist which “lists countries experiencing rapid declines in civic freedoms.”

“Pakistan’s recent criminalization of activists, stifling of opposition and minority protests, and digital space restrictions have resulted in the county being added to the CIVICUS Monitor watchlist,” the rights body said in a press release. 

CIVICUS classified Pakistan in the “repressed” section, where it said countries where civic spaces are significantly constrained are included. CIVICUS said individuals and civil society members who criticize power holders risk surveillance, harassment, intimidation, imprisonment, injury and death in countries categorized as repressed. 

The press release mentioned the government’s move to ban the Pashtun Tahafuz Movement (PTM) last year under it anti-terror laws. The PTM is a pro-Pashtun rights group that is known for its criticism of Pakistan’s powerful military. The online platform also mentioned the charges that prominent ethnic Baloch rights activist Dr. Mahrang Baloch, a fierce critic of Pakistan’s military who blames it for enforced disappearances and extrajudicial killings in southwestern Balochistan province, faces. 

The army says many of Balochistan’s so-called disappeared have links to separatists while military spokespersons have also variously accused the rights movement led by Baloch of being “terrorist proxies.”

“She faces multiple criminal charges including under Anti-Terrorism Act, for organizing sit-in across the country and attending gatherings,” Rajavelu Karunanithi, CIVICUS Advocacy and Campaign Officer for Asia, said. “CIVICUS calls on the government to drop these fabricated charges immediately and to revoke the ban against the Pashtun Tahaffuz Movement.”

It also mentioned the government’s amendments to the Prevention of Electronic Crimes Act (PECA) in January, saying that they aim to tighten control on online speech and target journalists. 

“The crackdown on protests by the opposition and ethnic minority groups and targeting of journalists and digital restrictions are inconsistent with Pakistan’s international human rights obligations,” Karunanithi said. 

“The authorities must take steps to reverse course and protect the rights to peaceful assembly and expression and bring perpetrators to justice,” Karunanithi added. 

CIVICUS said it assigns ratings as either “closed,” “repressed,” “obstructed,” “narrowed” or “open,” based on a methodology that combines several data sources on the freedoms of association, peaceful assembly and expression.

Over 20 organizations collaborated to provide an evidence base for action to improve civic space on all continents, the platform said in its press release.


Pakistan declares Mar. 15 as ‘Day of Protection of Sanctity of Prophethood’

Pakistan declares Mar. 15 as ‘Day of Protection of Sanctity of Prophethood’
Updated 10 March 2025
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Pakistan declares Mar. 15 as ‘Day of Protection of Sanctity of Prophethood’

Pakistan declares Mar. 15 as ‘Day of Protection of Sanctity of Prophethood’
  • Religion ministry spokesperson says initiative to curb rising incidents of blasphemy, sacrilegious content on social media
  • Prominent religious scholars urged to devise comprehensive strategy against blasphemous content, says state media

ISLAMABAD: Pakistan’s religion ministry has officially declared Mar. 15, 2025, as the “Day of Protection of the Sanctity of Prophethood” to address rising incidents of blasphemy and sacrilegious content online, state-run media reported on Monday.

Every year on Mar. 15 the world commemorates the “International Day to Combat Islamophobia” to stress the right to freedom of religion and belief and condemn incidents of blasphemy. Mar. 15 also marks the day when a gunman entered two mosques in Christchurch, New Zealand, killing 51 people and injuring 40 others in a hate crime against Muslims.

“The Ministry of Religious Affairs and Interfaith Harmony has officially declared March 15, 2025, as the Day of Protection of the Sanctity of Prophethood (Yum-e-Tahaffuz-e-Namoos-e-Risalat Peace Be Upon Him),” the state-run Associated Press of Pakistan (APP) reported on Sunday. 

As per the report, religious affairs ministry’s spokesperson Muhammad Umar Butt said the initiative will curb rising incidents of blasphemy and sacrilegious content on social media. Butt said the ministry has issued directives to provincial secretaries of the religious affairs and Auqaf departments in all four provinces, Islamabad, Azad Jammu and Kashmir and Gilgit-Baltistan to launch an awareness campaign against blasphemous content. 

He said the ministry has also urged prominent religious scholars to devise a comprehensive strategy for public awareness against blasphemous content.

Blasphemy, punishable by death in Muslim-majority Pakistan is an incendiary charge, where even unsubstantiated accusations can incite public outrage and lead to lynchings. Human rights groups say Pakistan’s blasphemy laws are often misused to settle personal scores.

Pakistan has seen a sharp rise in the prosecution of “online blasphemy” cases recently, with private groups accusing hundreds of young individuals of blasphemy, according to AFP.

A report published by the government-run National Commission for Human Rights in October last year said there were 767 people, mostly young men, in jail awaiting trial over blasphemy allegations.

Meanwhile, Sardar Muhammad Yousaf of the ruling Pakistan Muslim League Nawaz (PML-N) party assumed charge as the new Minister of Religious Affairs and Interfaith Harmony, according to a statement from the religion ministry. 

“Federal Minister Sardar Muhammad Yousuf assumed the portfolio of the Ministry of Religious Affairs and Interfaith Harmony,” the ministry said. “He was given a detailed briefing on the Ministry of Religious Affairs, the ministry’s subordinate institutions and Hajj preparations.”

Yousaf said prioritizing the welfare of pilgrims and visitors was essential, emphasizing that all necessary steps would be taken to address their issues and improve Hajj facilities.


Pakistan says main suspect in 2024 Greek boat tragedy arrested

Pakistan says main suspect in 2024 Greek boat tragedy arrested
Updated 10 March 2025
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Pakistan says main suspect in 2024 Greek boat tragedy arrested

Pakistan says main suspect in 2024 Greek boat tragedy arrested
  • Four Pakistanis were killed when a migrant boat sank near Greek island of Crete in December 2024
  • Federal Investigation Agency says arrested suspect is part of international gang of human traffickers

ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) announced on Monday that it has arrested the main suspect in the 2024 Greek boat tragedy, vowing to continue its crackdown against human traffickers who send people to Europe and other countries on illegal sea journeys. 

The incident took place in December 2024 when four Pakistanis died after a migrant boat they were on sank near the Greek island of Crete. Each year, thousands of Pakistanis pay large sums for risky and illegal journeys to developed countries, hoping to find work and send money back to their families. 

The FIA said its team arrested the main suspect, Usman Jaja, from the eastern city of Sialkot. The agency said he had gone into hiding since the Greek boat tragedy took place in December last year. 

“Suspect Usman Jaja tried to send several citizens to Europe via boat,” the FIA said in a statement. “The boat met with an accident in which several youths died.”

The FIA said Jaja was wanted by the FIA’s Gujranwala chapter in more than eight cases, alleging that he was part of an international gang of human traffickers. The agency said it has started an investigation against the suspect, adding that raids are being conducted to arrest others involved with him as well. 

“Our crackdown against elements involved in boat accidents is underway,” FIA Gujranwala Director Abdul Qadir Qamar was quoted as saying by the agency. “All resources are being used to arrest the suspects.”

He said the agency’s intelligence-based operations against human traffickers are underway, vowing that no one would be allowed to play with the lives of innocent people. 

In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel capsized and sank in international waters off the southwestern Greek coastal town of Pylos. It was one of the deadliest boat disasters ever recorded in the Mediterranean Sea.

Greece was a favored gateway to the European Union for migrants and refugees from the Middle East, Africa and Asia in 2015-2016, when nearly 1 million people landed on its islands, mostly via inflatable dinghies.

Incidents with migrant boats and shipwrecks off Crete and its tiny neighbor Gavdos, which are relatively isolated in the central Mediterranean, have increased since 2023.


UAE consul general holds iftar dinner for Pakistan’s Special Olympics athletes

UAE consul general holds iftar dinner for Pakistan’s Special Olympics athletes
Updated 10 March 2025
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UAE consul general holds iftar dinner for Pakistan’s Special Olympics athletes

UAE consul general holds iftar dinner for Pakistan’s Special Olympics athletes
  • Pakistani athletes are second to none, says UAE Consul General Bakheet Ateeq Al Remeithi 
  • UAE consul general stresses on the importance of giving confidence to persons with disabilities

KARACHI: UAE Consul General Bakheet Ateeq Al Remeithi held an iftar dinner in honor of Pakistan’s Special Olympics athletes on Sunday, the UAE consulate in Karachi said, stressing the need to empower them through confidence. 

The development takes place as Pakistani athletes prepare to take part in the World Winter Games Turin 2025 that are being organized by the Special Olympics organization. The global event is scheduled to run from Mar. 8-15 and will feature at least 1,500 athletes from over 100 countries who will compete in eight sporting competitions throughout Italy’s Piedmont region. 

The UAE consul general welcomed the athletes at his residence in Karachi on Sunday evening. He said that athletes from Pakistan are second to none in the Special Olympics. 

“A little hard work on athletes boosts their morale,” Al Remeithi was quoted as saying by the UAE consulate. “The consul general said that despite mental or physical problems, special athletes are no less capable than anyone else. They need to be given confidence.”

The UAE consul general said that Arab culture during the holy month of Ramadan further strengthens the love and ties between the brotherly countries of Pakistan and the UAE. 

The participants thanked the UAE consul general for hosting the iftar and thanked him for extending his hospitality, the UAE’s consulate general said.