Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year

Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year
A man counts Saudi Riyal banknotes in Riyadh, Saudi Arabia, in this October 18, 2017 photo. (Reuters/ file)
Short Url
Updated 4 min 15 sec ago
Follow

Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year

Saudi Arabia top contributor as Pakistan remittances grow 38.6 percent year-on-year
  • In Feb. 2025, Pakistan received highest inflows from Saudi Arabia, $744.4 million, followed by UAE, which contributed $652.2 million
  • Among factors driving up remittances are reforms to curb illegal foreign exchange trading and incentives implemented by central bank 

ISLAMABAD: Pakistan recorded year-on-year growth of 38.6 percent in remittances with inflows of $3.1 billion in February, the central bank said on Monday, with the highest contributions coming from Saudi Arabia and the UAE.

Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting balance of payments. 

“Workers’ remittances recorded an inflow of $3.1 billion during February 2025,” the State Bank of Pakistan (SBP) said in a press release. “In terms of growth, remittances increased by 38.6 percent and 3.8 percent on year-on-year and month-on-month basis respectively.”

In February 2025, Pakistan received its highest inflows from Saudi Arabia, $744.4 million, followed by the UAE, which contributed $652.2 million. Remittances received from the United Kingdom and the United States stood at $501.8 million and $309.4 million respectively.

“Cumulatively, with an inflow of $24 billion, workers’ remittances increased by 32.5 percent during July to February, FY25 compared to $18.1 billion received during July to February FY24,” the central bank added.

Among factors driving an increase in remittances are reforms that have curbed illegal foreign exchange trading and incentives implemented by the State Bank of Pakistan. Decreased global inflation rates have encouraged Pakistani migrants to send more money back home. 

Families in Pakistan are also relying more on financial support from relatives working abroad due to inflation at home. 


Pakistan reports first death of 2025 from deadly brain-eating amoeba

Pakistan reports first death of 2025 from deadly brain-eating amoeba
Updated 24 sec ago
Follow

Pakistan reports first death of 2025 from deadly brain-eating amoeba

Pakistan reports first death of 2025 from deadly brain-eating amoeba
  • Naegleria fowleri, with 98 percent fatality rate, is transmitted when contaminated water enters body through nose
  • Over a hundred people have died from the infection in Pakistan since 2008, five people died last year 

KARACHI: A 36-year-old woman died in the Pakistani city of Karachi last month after contracting Naegleria fowleri, a health official confirmed on Monday, marking the first death this year from the deadly brain-eating amoeba.

Naegleria fowleri has a fatality rate of more than 98 percent. It is transmitted when contaminated water enters the body through the nose and cannot be passed person-to-person.

Pakistan has seen a rise in Naegleria fowleri cases in recent years, with over a hundred people dead since the first reported infection in 2008. Five people died from the infection last year.

Symptoms of Naegleria fowleri infection include severe headache, altered taste, high fever, light sensitivity, nausea and vomiting. Death usually occurs five to seven days after infection.

In the latest case, a woman was admitted to the hospital on Feb. 19 after experiencing symptoms and died four days later on Feb. 23. 

“The presence of Naegleria fowleri was confirmed in the patient on Feb. 24, 2025 after the patient had passed away,” Sindh Health Department spokesperson Meeran Yousuf said in a statement.

“Upon investigation, it was noted that the patient had not participated in any water-related activities and her only exposure was regular use of water to perform ablution five times a day at home.”

Yousaf said this was the first death in Pakistan from Naegleria fowleri in 2025.

A 2021 study by the Sindh Health Department found that 95 percent of water samples in Karachi, the provincial capital, were unfit for human consumption, with experts attributing the contamination to the spread of amoeba.
 


Two police officers killed in drive-by shooting in Pakistan’s militancy-wracked northwest 

Two police officers killed in drive-by shooting in Pakistan’s militancy-wracked northwest 
Updated 10 March 2025
Follow

Two police officers killed in drive-by shooting in Pakistan’s militancy-wracked northwest 

Two police officers killed in drive-by shooting in Pakistan’s militancy-wracked northwest 
  • Latest attack near Tanda Dam in Kohat district killed two inspectors working wit counter-terrorism department
  • Pakistan government has struggled to contain militancy since collapse of truce with Tehreek-e-Taliban Pakistan group

PESHAWAR: Two police officers with the counter-terrorism department (CTD) were killed by unidentified gunmen in a drive-by shooting in Pakistan’s northwestern Khyber Pakhtunkhwa province, police said on Monday. 

The Pakistan government has struggled to contain rising militancy in Khyber Pakhtunkhwa since the collapse of a fragile truce with the Pakistani Taliban, or Tehreek-e-Taliban Pakistan (TTP), in November 2022. Pakistan says the takeover of Kabul by the Afghan Taliban with whom the TTP is allied has emboldened the group as it is able to operate out of and launch attacks from safe havens in neighboring Afghanistan, whose government denies the charges. 

The Center for Research and Security Studies said in a report in December last year Pakistan experienced a 40 percent surge in militant attacks in 2024 compared to the previous year, recording 905 incidents that resulted in 1,177 deaths and 1,292 injuries. These included 444 militant attacks that killed 685 soldiers and police officers and 927 civilians.

The latest incident took place near the Tanda Dam in KP’s Kohat district.

“Two CTD officials, Zahid ur Rehman and Ghulam Mustafa, who were an inspector and assistant sub-inspector respectively, died on the spot following an attack,” Dr. Zahidullah, Kohat District Police Officer (DPO), told Arab News, saying the gunmen were on a motorbike and fled after killing the officers. 

Another police officer, Shahid Khan, added that the attackers had been monitoring the movement of the CTD officers.

“The incident took place all of a sudden and in a comparatively populated area,” he said. 

While no group has claimed responsibility for the attack, suspicion is likely to fall on the TTP, who almost daily targets security forces, police convoys and check-posts and carries out targeted killings and kidnappings of law enforcement and government officials in KP.

Islamabad has frequently blamed the surge in militancy in KP on Afghanistan, accusing it of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement and insist Pakistan’s security issues are an internal matter.


Pakistan president thanks Saudi Arabia, UAE for support through economic crisis

Pakistan president thanks Saudi Arabia, UAE for support through economic crisis
Updated 10 March 2025
Follow

Pakistan president thanks Saudi Arabia, UAE for support through economic crisis

Pakistan president thanks Saudi Arabia, UAE for support through economic crisis
  • Debt rollovers from Saudi Arabia, UAE have bailed Pakistan out of crisis, helped secure IMF loans
  • President’s speech marred by loud chanting and sloganeering by opposition throughout the address

ISLAMABAD: President Asif Ali Zardari thanked Saudi Arabia, the United Arab Emirates and Turkiye for supporting Pakistan through its economic challenges, reiterating Islamabad’s push to further strengthen ties with the friendly countries. 

Debt rollover commitments from Pakistan’s regional allies Saudi Arabia, UAE and China have been instrumental in helping Islamabad secure financial bailout packages from the International Monetary Fund (IMF), including a $7 billion program that was approved last year and is currently in its first review. Saudi Arabia and UAE have also bailed Pakistan out through loans and deferred oil payments.

“We deeply appreciate the support of our trusted friend Saudi Arabia, the United Arab Emirates, Turkiye and others who have stood by us in times of economic challenges,” Zardari said in an address to a joint session of Pakistan’s parliament in Islamabad.

“We are committed to further strengthening long standing historical and cultural, and economic ties with these friendly nations.”

Zardari addressed parliament as Pakistan navigates a tricky path to economic recovery after a prolonged macroeconomic crisis and faces a spike in terror attacks, particularly in its Balochistan and Khyber Pakhtunkhwa provinces. The government says its economic reforms over the past one year have yielded fruit, pointing to improving macroeconomic indicators such as GDP growth recovering in FY24 and continuing into this year, fueled by sound macroeconomic management and inflation control. 

Speaking about internal affairs, the president acknowledged the surge in militancy in Pakistan in recent years but credited the country’s armed forces for dismantling terror networks, paying tribute to security forces battling militants and sacrificing their lives for the homeland. 

Zardari also addressed recent counter-terrorism cooperation between Pakistan and the United States, which led to the arrest of key Daesh operative Mohammad Sharifullah, accused of planning an attack at Kabul airport in 2021 which killed at least 170 Afghans and 13 US soldiers as they sought to help Americans and Afghans flee in the chaotic aftermath of the Taliban takeover. The attack was claimed by Daesh-K, the Afghan branch of the Daesh group. 

“The recent successful counterterrorism cooperation between the US and Pakistan is encouraging,” Zardari said. “And the two countries should build on this success to renew and enhance cooperation for joint goals.”

Besides economic challenges and terrorism, Pakistan’s coalition government is also grappling with a long political stalemate marked by worsening tensions with the opposition Pakistan Tehreek-e-Insaf of jailed ex-premier Imran Khan. 

Khan was ousted from power in a parliamentary vote of no confidence in 2022, which plunged the country into prolonged political uncertainty, with his PTI emerging as a thorn in the side of the federal government and the military and keeping the country’s politics on razor’s edge by holding regular protests and speaking about the party’s alleged persecution and rights abuses at international platforms. 

Zardari’s speech on Monday was also marred by loud chanting and sloganeering by the opposition throughout, particularly parliamentarians from the PTI whose noisy protests made it difficult for the president to be heard.


Karachi’s Peetal Gali, once a buzzing market for brass wares, dies slow death

Karachi’s Peetal Gali, once a buzzing market for brass wares, dies slow death
Updated 10 March 2025
Follow

Karachi’s Peetal Gali, once a buzzing market for brass wares, dies slow death

Karachi’s Peetal Gali, once a buzzing market for brass wares, dies slow death
  • Peetal Gali used to have around 70 handicrafts shops but now only houses seven 
  • Craftsmen blame low demand, inflation, frequent power outages for market’s decline

 KARACHI: Brass, silver and copper animal figurines, plates and vases were on display earlier this month on the side of a narrow, sequestered alley in the southern Pakistani port city of Karachi. 

The slender winding street, not visible from the main road, is known as ‘Peetal Gali,’ or Brass Market, once a go-to area for anyone looking for utensils and decoration pieces made from brass and copper. 

A bustling home for decades to over 70 shops and run by artisans who had originally migrated from Moradabad in India after the partition of the Indian subcontinent in 1947, today Peetal Gali in the Gulbahar area of Karachi is dying a slow death. Only seven or eight shops remain, while the others have shut down due to dwindling demand for brass wares, inflation and frequent power outages.

“We have been working for 22–23 years, but in these 22–23 years, this craft has been completely ruined,” brass artisan Sharjeel Khan, 38, told Arab News as he carved a floral design on a vase. “There used to be a high demand for this work. Tourists from abroad, the British and Chinese used to come.”

Khan’s Khan’s family migrated from Moradabad after the 1947 partition and set up a brass shop at Peetal Gali.

“Whatever style you ask for [in brass] we can make it in that style. Even if you want figurines made, like an animal or a bird, we can craft it for you by hand,” he boasted.

But now there are no customers. 

“There are neither shops nor customers, and only about 50 to 60 craftsmen remain here,” Khan lamented, saying he made less than $5 a day and would not encourage others to take up this line of work.

Wilayat Shah, a shopkeeper who has been in the brass business since 1993, also blamed unreliable power supply for the decline of the industry. 

An energy network desperately in need of an upgrade can lead to frequent blackouts and electricity rationing in Pakistan. Millions of Pakistanis suffer partial blackouts almost daily, including scheduled “load shedding” power cuts aimed at conserving electricity.

“The main reason is electricity, there is no power here,” Shah told Arab News. “From morning till evening, we only get electricity for about 4.5 hours. How can work be done in such conditions?“

The lack of “fair” wages for brass craftsmen and inflation had also forced many to leave the profession. 

Pakistan’s annual inflation rate slowed to 1.5 percent in February, the lowest in nearly a decade, below the finance ministry’s estimates and down from a multi-decade high of around 40 percent in May 2023.

“Some started working in factories, some became rickshaw drivers, and others started selling fruits,” Shah said of artisans leaving the profession.

Muhammad Shamim, 67, a veteran trader born in Karachi to a family of Moradabad craftsmen, remembered when exports of brassware was thriving and locals and foreigners alike flocked to Peetal Gali.

He blamed multiple factors for the decline of Peetal Gali, mainly the fall of brass exports to Europe due to the withdrawal of NATO forces from Afghanistan, and an increase in the costs of materials due to inflation. 

After the 9/11 terror attacks on the United States and the subsequent invasion of Afghanistan which borders Pakistan, NATO assumed command of the International Security Assistance Force in Afghanistan in 2003, initially focused on securing Kabul, but later expanded its role and troop presence to cover the entire country, culminating in a peak of over 130,000 troops. NATO troops withdrew with US forces after the Afghan Taliban took Kabul in 2021. 

 “When NATO forces were here, they used to buy a lot of our products, and the business thrived,” Shamim explained. “But ever since the Afghan Taliban took over, demand has dropped significantly.”

But the trader was hopeful that the market could be revived if craftsmen were provided with the necessary infrastructure and power supply was ensured. 

Khan, the brass worker, however, was less optimistic.

“If someone comes and asks us to teach this craft to their children, we refuse,” he said. “Why should such an art form not disappear when it cannot help a person sustain his household?” 


Pakistan central bank holds key policy rate at 12% to stabilize inflation

Pakistan central bank holds key policy rate at 12% to stabilize inflation
Updated 40 min 43 sec ago
Follow

Pakistan central bank holds key policy rate at 12% to stabilize inflation

Pakistan central bank holds key policy rate at 12% to stabilize inflation
  • State Bank says “maintaining cautious monetary policy stance to stabilize inflation within target range of 5–7 percent.”
  • Bank has slashed rates by 1000 bps from all time high of 22% in June 2024 to revive economic sentiment and growth

KARACHI: Pakistan’s central bank held its key policy rate at 12% on Monday, saying it was adopting a “cautious” approach in order to stabilize inflation and consolidate economic gains.

The State Bank of Pakistan (SBP) has slashed rates by 1000 bps from an all-time high of 22% in June 2024 to revive economic sentiment and growth while navigating reforms under a $7 billion bailout program from the International Monetary Fund (IMF) approved last September. But on Monday, the monetary policy committee “reiterated the importance of maintaining a cautious monetary policy stance to stabilize inflation within the target range of 5–7 percent.”

The decision to hold the interest rate comes despite cooling inflation that slowed to a near decade low of 1.5% in February. That was below the government’s forecast and significantly lower than a multi-decade high of around 40% in May 2023. The fall in inflation has been largely due to a decline in food and energy prices. Easing consumer prices have helped the central bank lower its borrowing costs by 1,000 basis points since June and support economic growth.

“The committee assessed the risks posed by the inherent volatility in these prices to the current declining trend in inflation,” the central bank said, adding that core inflation persisted at an elevated level and thus a hike in food and energy prices could lead to an increase in inflation.

Monday’s decision surprised many in the market where the majority of the economists were expecting a rate cut ranging from 50-150 basis points owing to favorable inflation numbers and the need for increased demand in the economy.

Amreen Soorani, head of research at Al Meezan Investment Management, said the central bank decided to adopt a “cautious stance” as the normalized real interest rate in Pakistan stood close to 400 basis points — higher than the historical average of near 150-200 basis points.
 
The central bank, however, deems the current real interest rate as “adequately positive” on a forward-looking basis to sustain ongoing macroeconomic stability.
 
“The strategy may continue to consolidate the economy for now, with a lower GDP growth and controlled inflation,” said Soorani.
 
In its previous monetary policy statement in January, the central bank called the 1,000 basis point reduction in interest rate “significant,” saying it would continue to support economic activity. On Monday, the bank said the impact of a sizable earlier reduction was now materializing.
 
The central bank maintained its earlier forecast of 2.5% to 3.5% growth and said economic activity in the country of more than 240 million people could gain further momentum and economic growth was expected to recover in the second half of FY25 ending June on the back of easing financial conditions.

According to Muhammad Waqas Ghani, head of research at JS Global Capital, the decision to hold the interest rate may not “drastically” change consumer and business borrowing behavior since the rates were already lower than before.
 
Pakistan seeks to achieve 3.6% economic growth this fiscal year through June on the back of structural reforms backed by the IMF, a staff mission of which is in Pakistan to review the country’s performance under its $7 billion Extended Fund Facility (EFF). A successful review will result in the release of about a $1 billion tranche to Pakistan that would keep its balance of payment position in check.
 
The State Bank said while economic activity was gaining traction, some pressures had emerged on the external account because of growing imports and weak financial inflows. The uptick in some global commodity prices had also pushed up Pakistan’s import payments in January.
 
Pakistan’s current account turned into a deficit of $0.4 billion in January after showing surplus over the past few months. This coupled with weak financial inflows and ongoing debt repayments weighed on Pakistan’s foreign exchange reserves, which have declined to $11 billion, enough to finance two months of imports. The State Bank, however, reaffirmed its current account balance projection of a surplus and a deficit of 0.5% for this year.
 
The nation expects its foreign exchange reserves to increase beyond $13 billion by June despite weak net financial inflows caused by a shortfall in the planned official inflows. Pakistan has also repaid the majority of its external debt due this year, according to the central bank.
 
The country faced a revenue shortfall during the last two months in January and February, which may concern the IMF mission that wants Pakistan to increase its revenues through taxing incomes from the agriculture, real estate and retails sectors and hiking energy tariffs. The central bank said meeting the target for primary balance would be challenging.
 
“It would be crucial for the SBP to carefully manage the potential risks, particularly concerning inflation and currency stability,” Soorani told Arab News.

Meanwhile, Pakistan’s main business association expressed disappointment the central bank had maintained the interest rate despite lower inflation.
 
“The business, industry and trade community of Pakistan is disappointed with the monetary policy as it continues to be based on a heavy premium vis-à-vis core inflation,” said Atif Ikram Sheikh, president of the Federation of Pakistan Chamber of Commerce & Industry, the nation’s biggest representative body of traders and industrialists.