Current account surplus reaches nine-year high; Pakistan Stock Exchange crosses 71,000 points for the first time
In Brief
EXTERNAL
Iranian President Ebrahim Raisi discusses Gaza and bilateral ties with President Zardari
On 22 April, Iranian President Dr Seyyed Ebrahim Raisi, who is on a three day trip to Pakistan, met President Asif Ali Zardari at the President House. The two leaders discussed key regional and global developments, especially the situation in the Middle East. President Zardari condemned Israeli aggression in Gaza, reiterated Pakistan’s support for the Palestinian cause and expressed his “deep concern for the worsening humanitarian situation in Gaza.” Both countries urged international action to bring about an end to the conflict and appealed for more humanitarian relief and aid for the Palestinian people.He expressed gratitude for Iran’s “principled stance and its consistent support to the people of Indian Illegally Occupied Jammu and Kashmir (IIOJK) and their right to self-determination.” President Raisi stressed the need for expansion and consolidation of bilateral ties “the two brotherly countries” and in all areas of mutual interest including economic, trade and cultural relations. President Zardari also highlighted and emphasized the “close fraternal ties based on shared religion, culture, and history.” Both parties stressed the need to boost the volume of trade to USD 10 Billion through bilateral trade mechanism and greater cooperation on regional issues. (“Zardari, Raisi discuss Gaza, bilateral ties,” The Express Tribune, 23 April 2024)
ECONOMY
Current account surplus reaches nine-year high
On 23 April, Dawn reported that according to the latest data released by the State bank of Pakistan, the current account has witnessed a “nine-year high surplus” in the March. The current account surplus in March stood at was USD 619 million which is a rise of 15.3 per cent as compared to USD 537 million surplus recorded in March 2023. This has brought down the overall deficit to below USD 1 billion during the July-March period of FY24.The current account surplus of March 2024 is also significantly higher than February which was pegged at USD 98 million. According to experts, the March surplus is a result of higher exports in the IT sector and increase in remittances because of Ramazan. It is to be the noted that the government had taken proactive steps- slashing of imports- to bring down the current account deficit which was a result of “twin deficits” in trade and current accounts. The import controls, however, had proven injurious to the economy and led to a negative GDP. Despite the effects, it is important to keep the current account deficit under control as “it eats up most of the export earnings and compels the country to borrow from external sources” to meet the deficit. (Shahid Iqbal, “Current account posts highest surplus in 9 years,” Dawn, 23 April 2024)
Pakistan Stock Exchange crosses 71,000 points for the first time in history
On 22 April, the Pakistan Stock Exchange (PSX) crossed 71,000 points for the first time in history. The PSX benchmark KSE-100 Index surged by 1.33 per cent or 940 points and hit an unforeseen all-time high of 71,850 points closing at 71,772 points, inching further towards the 72000 and mark. Chief Operating Officer (CEO) of Topline Securities Muhammad Sohail attributed this to “positive sentiment” pervading the local stock market, the government approaching the International Monetary Fund (IMF) for a loan and strong dividends in the first quarter. The IMF loan is expected to help the government in “timely repayment of maturing foreign debt and fostering economic rejuvenation in the country” leading to increase in investor confidence in the market. Stocks from banks, technology, petroleum refineries, and airlines pushed contributed to the surge. Earlier, the State Bank of Pakistan had attributed the last week’s surge in PSX an expected deal with Saudi Arabia where the latter would acquire a minority stake in Pakistan’s Reko Diq copper and gold mining project. (Salman Siddiqui, “PSX sees record-breaking surge, soars above 71,000 points,” The Express Tribune, 22 April 2024)
POLITICS
PTI alleges rigging in the recently concluded by-elections
On 23 April, Dawn reported that the PTI has alleged massive irregularities rigging in the recently concluded by-elections stating that 21 April will be remembered as a “black day” in the history of Pakistan. They have stressed on the involvement of the intelligence and security agencies in the alleged rigging and urged the Election Commission of Pakistan (ECP) to withhold the announcement and notification of results. They have also called for a series of protests on 26 April. Referring to the instances of rigging, PTI Chairman Barrister Gohar Khan told a press conference that “Gates of polling stations were closed, and at some polling stations, more votes were polled than the total registered votes.” He also accused the ECP of not taking any actions despite being approached by the party and questioned the election watchdog’s credibility over its non- use of returning officers (ROs) and district returning officers from the judiciary. Opposition Leader in the National Assembly Omar Ayub alleged that the pre-poll rigging started with suspension of the internet and stated that Prime Minister Shehbaz Sharif and Punjab Chief Minister Maryam Nawaz did not “believe in transparency”.(Ikram Junaidi, “PTI alleges role of intelligence agencies in election rigging,” Dawn, 23 April 2024)
PTI senator Shibli Faraz has been appointed the new opposition leader in the Senate
On 22 April, a notification issued by the Senate Secretariat confirmed the appointment of PTI Senator Shibli Faraz as the new opposition leader in the Senate. He had been nominated for the position by the PTI founder Imran Khan last week and his candidature had been “widely anticipated” due to endorsement by 21 senators. Shibli Faraz has served as a senator since 2015 and was the information minister during the PTI government. Earlier this month, he was appointed the “focal person” for the party. His election happened amidst a chaotic swearing-in ceremony for 41 newly elected senators whose seats had become vacant on retirement of the preceding members on 12 March. The PTI had boycotted the ceremony protesting incomplete polls in Khyber Pakhtunkhwa. (“Shibli Faraz takes helm as Senate opposition leader,” The Express Tribune, 23 April 2024)
SECURITY
13 terrorists killed in Khyber Pkhtunkhwa and Balochistan, says ISPR
On 23 April, Dawn reported that the security forces have claimed to have killed thirteen alleged terrorists in three separate operations in the provinces of Khyber Pakhtunkhwa and Balochistan, over the past 48 hours. According to a statement released by Inter-Services Public Relations (ISPR), the security forces killed 11 alleged terrorists in two intelligence-based operations in Dera Ismail Khan and North Waziristan on 22 and 23 April. Two of these terrorists were killed in D.I Khan which has witnessed the killing of seven custom officers in the last six days by unknown assailants. The statement revealed that the operations were conducted on the basis of intelligence reports on the presence of terrorists in the area. The statement revealed that “The killed terrorists remained actively involved in numerous terrorist activities in the area against security forces as well as the innocent civilians.” Separately, two terrorist were eliminated and several injured in Balochistan’s Pishin district on 22 April. The local administration had been warned about the presence of terrorists in the Sanzalai mountain range of Pishin. Pishin Deputy Commissioner Jumma Dad Mandokhail stated that these terrorists had been involved in the 27 March attack on security forces. Additionally, the officials of the Frontier Corps (North) have claimed that these terrorists had crossed into Pishin from Afghanistan and established their pickets on top of the hills.( Umer Farooq & Saleem Shahid, “13 ‘terrorists’ killed in KP, Balochistan in 48 hours,” Dawn, 23 April 2024)
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We worked very hard over 6 months to finally put Pakistan’s stagnant IT sector on a growth trajectory. IT holds the key to fixing Pakistan’s economy issues.
-Umar Saif
After 50 years, if Bhutto's legacy endures, what makes anyone believe they can diminish Imran Khan's support in 6-12 months? Imran Khan lives in the hearts and minds of children as young as 5 to elders of 95. He's intertwined with Pakistan's existence, destined to endure as long as Pakistan itself. Dare not harm Imran Khan; the consequences would be beyond your control.
-Atif Khan
The process of repatriating illegal Afghan nationals from Pakistan is ongoing, with a total of 542,981 individuals having departed as of April 22, 2024. Between April 13 and April 22, 7041 Afghan citizens, comprising 2967 men, 1834 women, and 2240 children, returned to their homeland. Notably, 267 families were repatriated in 213 vehicles, reflecting the concerted effort to ensure their safe return to Afghanistan.
-Balochistan Current Affairs
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Arifa Noor, ‘Transitions and instability’
Dawn, 23 April 2024
“As mentioned, these uncomfortable transitions are not limited to the big white building on Constitution Avenue. They extend to other institutions too. Indeed, the military has proven to be just as vulnerable at times. Simply consider the tenure of Gen Bajwa; one interpretation of the political engineering of 2017 onwards is that the PML-N government under Nawaz Sharif may not have agreed to an extension, which was at the time easier to manage through a weak PTI government seen to be more dependent on the machinations of the establishment than solid public support.”
Naseer Memon, ‘Wrong choices’
Dawn, 23 April 2024
“The Punjab irrigation department’s proposals for the Smaller Cholistan scheme entail data on water availability. Water availability from the first week of July to the first week of September has been shown as Punjab’s share from the flood flows. These flows range from 4,137 cusecs to 4,122 cusecs. Developing such a huge command area on the assumption of the availability of flood flows negates the fundamentals of irrigation engineering. Indus data shows that from 2001 to 2022, flows below Kotri Barrage remained less than 10 million acre feet for nine years. Who can guarantee that the Chenab and Sutlej rivers will receive surplus flows every monsoon?”
Editorial, ‘By-election trends’
Dawn¸ 23 April 2024
“By-elections in Pakistan have generally attracted little voter interest, with voters often tending to cast their ballots in favour of the party already in the saddle. As per the provisional results, the PML-N secured two NA seats, while winning 10 provincial constituencies in Punjab. Many of these were seats that N-League candidates had already won on Feb 8.”
Editorial, ‘Privatising PIA’
Dawn, 23 April 2024
“It is encouraging to see the minister consistently underscoring the need for privatising state-owned enterprises, which are incurring massive annual losses of Rs500bn, and have become a source of systemic risk for the national budget as well as our creditors. Yet, he, like other government officials, has never elaborated if the authorities have a clear privatisation roadmap beyond the sale of PIA and the outsourcing of airports.”
Dr Moonis Ahmar, ‘Pakistan’s unbated economic predicament’
The Express Tribune, 23 April 2024
“Is there a way out for the 250 million people of Pakistan from this unabated economic predicament? Why have the successive regimes failed to manage economic crisis? Why are the civil society groups and political parties who used to raise a hue and cry during the PTI government about the rising prices of fuel, gas, electricity and other essential items mostly silent? Three years ago, the prices of essential commodities were less than half of what they are today. The economic growth rate had reached 6% when the PTI government was sent packing; the price of petrol was Rs150 a liter as against approximately Rs294 today; the per unit cost of electricity was Rs32 unlike Rs60 currently for the highest slab; the dollar was available at Rs189 unlike Rs279 today. But those who were highly critical of the PTI government’s economic performance are mum despite all the macroeconomic indicators painting a bleak picture of the economy.”
Editorial, ‘Escalating violence’
The Express Tribune, 23 April 2024
“As the violence continues to escalate, it is imperative for the global community to stand in solidarity with the Palestinian people and call for an immediate end to the bloodshed. The suffering endured by Palestinians must not be overlooked or ignored, and concerted efforts must be made to address the underlying causes of the conflict and pave the way for a sustainable peace settlement.”
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“Europe has dismantled its own value system.”
-An opinion in Dawn, ‘Towards the end’
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