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Regional leaders meet in Islamabad today for key summit to discuss trade, security and other issues

Special Regional leaders meet in Islamabad today for key summit to discuss trade, security and other issues
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Participants of Shanghai Cooperation Organization (SCO) Summit pose for a group picture in Islamabad, Pakistan on October 16, 2024. (Government of Pakistan)
Special Regional leaders meet in Islamabad today for key summit to discuss trade, security and other issues
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People are seen at the Crescent and Star Monument, as Pakistan hosts the Shanghai Cooperation Organization (SCO) summit, in Islamabad on October 15, 2024. (REUTERS)
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Updated 16 October 2024
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Regional leaders meet in Islamabad today for key summit to discuss trade, security and other issues

Regional leaders meet in Islamabad today for key summit to discuss trade, security and other issues
  • Top officials from China, Russia, India, Iran and several Central Asian states are attending the two-day summit in Islamabad
  • On Tuesday, PM Shehbaz Sharif warmly greeted the visiting dignitaries, including Indian FM, at a dinner he hosted in their honor
Updated 16 October 2024
SAIMA SHABBIR
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ISLAMABAD: Pakistan is hosting the main session of a two-day summit of the Shanghai Cooperation Organization (SCO) in Islamabad today, Wednesday, wherein leaders from SCO member states are expected to discuss trade, security and other issues of mutual interest.

The prime ministers of China, Kyrgyzstan, Tajikistan, Russia, Belarus, Kazakhstan and Uzbekistan as well as Iran’s first vice president and the Indian external affairs minister are in Islamabad to attend the regional summit.

The Pakistani government has declared a three-day holiday in the federal capital of Islamabad since Monday, with schools and businesses closed to ensure security of foreign leaders attending the high-profile regional summit.

On Tuesday, Prime Minister Shehbaz Sharif hosted a dinner in honor of the visiting foreign dignitaries, wherein he was seen greeting and shaking hands with the attendees, including Indian External Affairs Minister Subrahmanyam Jaishankar.




Pakistan Prime Minister Shehbaz Sharif (right) shakes hand with Indian External Affairs Minister Subrahmanyam Jaishankar as he arrives at the Jinnah Convention Center to attend the Shanghai Cooperation Organization (SCO) summit in Islamabad, Pakistan, on October 16, 2024. (Government of Pakistan)

“On October 16, Prime Minister Sharif will chair the meeting of the Council of Heads of Government of SCO member states and deliver the opening remarks, followed by statements from the leaders of participating countries,” the Pakistani foreign office said in a statement.

The documents reflecting outcomes of the meeting will also be signed during the session that will conclude with Sharif’s closing remarks, according to the statement.

Pakistan’s Deputy Prime Minister Ishaq Dar and SCO Secretary General Zhang Ming will share a communiqué after the concluding session.

Pakistani authorities have locked down the capital to ensure security of foreign leaders attending the SCO summit. The government has deployed troops and blocked key roads, announcing alternate routes for the residents.

Sharif met with Central Asian leaders and discussed trade, investment and regional connectivity as part of his engagements on the first day of the summit on Tuesday,

Pakistan, faced with tough economic conditions, wants to position itself as a regional trade hub and to leverage its strategic geopolitical position and enhance its role as a pivotal trade and transit hub connecting China and Central Asia with the rest of the world.

Pakistani authorities have locked down the capital to ensure security of foreign leaders attending the SCO summit, while the government has deployed troops and blocked key roads, announcing alternate routes for the residents.

Topics: SCO summit 2024 SCO Summit SCO Pakistan Shanghai Cooperation Organization (SCO)

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Pakistan stocks breach historic 116,000 mark as key rate cut by 200 bps

Pakistan stocks breach historic 116,000 mark as key rate cut by 200 bps
Updated 6 sec ago
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Pakistan stocks breach historic 116,000 mark as key rate cut by 200 bps

Pakistan stocks breach historic 116,000 mark as key rate cut by 200 bps
  • Central bank has already slashed interest rates by 700 basis points in four consecutive meetings since June
  • Pakistan’s latest cut is the most aggressive among emerging market central banks in the current easing cycle
Updated 6 sec ago
Hasaan Ali Khan

ISLAMABAD: Pakistan’s KSE-100 index reached a historic high of 116,691, marking an impressive gain of 1,868 points, or 1.63 percent, as investors anticipated the monetary policy review scheduled for today, Monday, in which the central bank cut its key interest rate by 200 basis points to 13 percent.

This is the fifth straight reduction after the central bank had already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.

Pakistan’s latest move makes this year’s cuts the most aggressive among emerging market central banks in the current easing cycle, barring outliers such as Argentina.

The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.

“The market continued its strong upward momentum, extending its record-breaking rally as investors anticipated the upcoming monetary policy review,” Topline Securities said in its daily market review.

“This was further bolstered by significant buying activity from local institutions, with the index hitting an intraday peak of 116,682.”

Monday’s move follows cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22 percent, set in June 2023 and left unchanged for a year.

It takes the total cuts to 900 bps since June.

Topline said the rise in stocks was primarily driven by strong performances from Mari Petroleum, Fauji Fertilizer, Pakistan Petroleum, Hub Power and the Oil & Gas Development Company, which collectively contributed 1,749 points.

“Trading activity remained lively, with a total volume of 1,469 million shares and a turnover of Rs 66 billion. Worldcall Telecom Limited led the volume charts, with 403 million shares traded during the session,” Topline added. 

During intraday trading, analysts said the anticipation of a sharp interest rate cut together with strong liquidity with mutual funds was driving the market up.

“It is a broad-based increase, with only banks in the red today on fears of higher taxation,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News. 

Pakistani stocks have been performing significantly well this month, closing at record highs multiple times. 

“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.

Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.

Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.

With inputs from Reuters

Topics: Pakistan Stock Exchange Pakistan monetary policy Interest Rate

Pakistan telecom regulator says no VPNs blocked, deadline for ban not yet finalized

Pakistan telecom regulator says no VPNs blocked, deadline for ban not yet finalized
Updated 21 min 37 sec ago
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Pakistan telecom regulator says no VPNs blocked, deadline for ban not yet finalized

Pakistan telecom regulator says no VPNs blocked, deadline for ban not yet finalized
  • PTA chairman says over 31,000 VPNS registered with the authority as government has been cracking down on VPN use for weeks
  • Social media platform X has been blocked since February and the government is also moving to implement a national firewall
Updated 21 min 37 sec ago
SAIMA SHABBIR

ISLAMABAD: The Chairman of the Pakistan Telecommunication Authority (PTA) said on Monday no Virtual Private Networks (VPNs) had been blocked in the country and neither had a deadline been finalized for such an action, adding that over 31,000 VPNs had officially registered with the authority in recent weeks. 

The government has been cracking down on VPN use for weeks, with the PTA announcing that businesses and freelancers would be able to legally use VPNs by registering with the government, but unregistered VPNs would be blocked in Pakistan after Nov. 30. The deadline was later withdrawn, and a new one has not been announced. 

Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online. The government is also moving to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks.

Digital rights activists, however, say the government’s move against VPNs is an attempt to block vital tools that allow users to bypass restrictions amid a wave of digital crackdowns. The use of VPNs has sharply risen in Pakistan since February this year when the government banned X soon after allegations of rigging in general elections surfaced. The election commission denies them. 

“No VPN has been blocked in the country so far,” PTA Chairman Major General (R) Hafeez Ur Rehman told Arab News on the sidelines of an event marking the launch of the authority’s annual performance report.

“No deadline has been set so far to block VPNs and we are working with the government to develop a solution that minimizes inconvenience to the public but nothing has been finalized yet,” he added, saying over 31,000 VPNs had been registered with the authority so far.

Rehman said the PTA had set up a dedicated help desk for IT companies and freelancers to facilitate VPN registration and other matters. All registration applications were processed within eight hours. 

“When Internet shutdowns occur, they can approach us to get whitelisted, ensuring that their connectivity remains unaffected,” Rehman said. 

“Once whitelisted, their Internet will continue to function even during government-imposed closures due to security threats or other reasons. This helps ensure that any closure of Internet due to national security measures do not disrupt their business operations as their Internet will keep working.”

Regarding frequent Internet closures, the official said the question should be addressed to the government, which passed its instructions to the PTA. 

Amid what activists widely say is a digital crackdown in Pakistan, Minister of State for Information Technology and Telecommunications, Shaza Fatima Khawaja, said on Monday the government was establishing a National Digital Commission (NDC) to advance the vision of a Digital Pakistan.

“The Commission, led by Prime Minister Shehbaz Sharif, will include all provincial chief ministers and representatives from key regulatory bodies such as the National Database & Registration Authority (NADRA) and PTA,” she said while addressing an event in Islamabad. 

Legislation in this regard would be introduced in the National Assembly later today, Monday, Khawaja added. 

She also said the government planned to establish a new digital authority, which would develop a comprehensive national framework and master plan for digitalization, focusing on three key areas: economy, governance, and society.  

To address Internet speed issues, the government would introduce new 4G and 5G spectrums, which would help resolve a major challenge faced by freelancers and IT professionals, she said.

According to the Wireless and Internet Service Providers Association of Pakistan (WISPAP), Internet speeds have dropped in the country by 30-40 percent in recent months. 

“5G spectrum auctions will be made in April next year,” Khawaja added, “which will significantly improve Internet services in the country.”

In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” 

The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned last month Internet slowdowns and the restriction of VPN services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.

Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies, P@SHA says. 
 

Topics: VPN PTA

Pakistan court indicts nine Imran Khan aides in case involving attack on army headquarter

Pakistan court indicts nine Imran Khan aides in case involving attack on army headquarter
Updated 43 min 29 sec ago
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Pakistan court indicts nine Imran Khan aides in case involving attack on army headquarter

Pakistan court indicts nine Imran Khan aides in case involving attack on army headquarter
  • Khan supporters attacked GHQ in Rawalpindi, other military installations on May 9, 2023, following his brief arrest in a land graft case
  • Hundreds of PTI supporters and dozens of leaders were subsequently arrested while police registered cases against PTI party top leaders
Updated 43 min 29 sec ago
Arab News Pakistan

ISLAMABAD: Nine aides of jailed ex-premier Imran Khan, including Shireen Mazari who was human rights minister during his tenure, were indicted on Monday in a case involving an attack last year on the military's headquarters (GHQ) by protesters linked to Khan’s Pakistan Tehreek-e-Insaf (PTI), the party said.

The move comes after Khan was himself also indicted on Thursday on charges of inciting his supporters to attack GHQ on May 9, 2023. That day, after Pakistan's powerful military publicly rebuked the PTI founder for repeatedly accusing a senior military officer of trying to engineer his assassination, Khan was arrested by the national anti-corruption agency in a land graft case. The arrest sparked a wave of protests by Khan supporters across the country, with rioters attacking important state buildings and ransacking military facilities, including the GHQ in the garrison city of Rawalpindi and the residence of the army's top commander in the eastern city of Lahore. 

Hundreds of PTI supporters and dozens of leaders were subsequently arrested while police registered cases against the party's top leaders, including Khan.

“It’s good that things are going towards indictment,” the PTI said in a statement to reporters, confirming that nine people had been indicted in the GHQ case. 

“As they take the case to trial, then it will come out whether these accused people are actually involved, and they will get a way to fight these false charges through the legal and judicial system. Up until now, people were just being kept in custody and things were lingering on for a year and a half.”

Nearly 2,000 people were arrested following the May 9 protests and at least eight were killed. The government had called out the army to help restore order.

Though Khan was released on bail within days of the May 9 arrest, he was later arrested in August 2023 after he was handed a three-year prison sentence in a corruption case. He has been in jail since then.

His party was barred from Pakistan's election on Feb. 8, 2024, but the would-be candidates stood as independents.

Despite the ban and Khan's imprisonment for convictions on charges ranging from leaking state secrets to corruption, millions of the former cricketer's supporters voted for him. Independent candidates from his party won the highest number of seats but not enough to form a government on their own. Khan cannot be part of any government while he remains in prison.

Khan and his party say all legal cases against him are based on made-up charges to keep him out of politics at the behest of the army after he had fallen out with the military's generals. The army denies the accusation.

Topics: Pakistan Imran Khan shireen mazari

Pakistan central bank cuts key rate by 200 bps, fifth in a row

Pakistan central bank cuts key rate by 200 bps, fifth in a row
Updated 16 December 2024
Reuters
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Pakistan central bank cuts key rate by 200 bps, fifth in a row

Pakistan central bank cuts key rate by 200 bps, fifth in a row
  • This is fifth straight reduction since June as country keeps up efforts to revive a sluggish economy with inflation easing
  • Pakistan’s latest move makes this year’s cuts most aggressive among emerging market central banks in current easing cycle
Updated 16 December 2024
Reuters

KARACHI: Pakistan’s central bank cut its key policy rate by 200 basis points to 13% on Monday, it said in a statement, for a fifth straight reduction since June as the country keeps up efforts to revive a sluggish economy with inflation easing.

Pakistan’s latest move makes this year’s cuts the most aggressive among emerging market central banks in the current easing cycle, barring outliers such as Argentina.

The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September.

All 12 analysts surveyed by Reuters expected a 200 bps cut, after inflation fell sharply, slowing to 4.9% in November, largely due to a high base a year earlier, coming in below the government’s forecast and significantly lower than a multi-decade high of around 40 percent in May last year.

Monday’s move follows cuts of 150 bps in June, 100 in July, 200 in September, and a record cut of 250 bps in November, that have taken the rate down from an all-time high of 22%, set in June 2023 and left unchanged for a year.

It takes the total cuts to 900 bps since June.
 

Topics: Pakistan State Bank of Pakistan monetary policy Arab News Pakistan

Pakistan attends China’s Indian Ocean forum, seeking blue economy opportunities, regional integration

Pakistan attends China’s Indian Ocean forum, seeking blue economy opportunities, regional integration
Updated 16 December 2024
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Pakistan attends China’s Indian Ocean forum, seeking blue economy opportunities, regional integration

Pakistan attends China’s Indian Ocean forum, seeking blue economy opportunities, regional integration
  • China has significantly expanded Indian Ocean engagements over past three decades, raising concern in US and India 
  • Over 200 delegates from 20 countries and international organizations participating in 3rd China-Indian Ocean Region Forum
Updated 16 December 2024
Arab News Pakistan

ISLAMABAD: Pakistani President Asif Ali Zardari virtually attended the 3rd China-Indian Ocean Region Forum on Monday, a dialogue Beijing says is aimed at connecting governments, financial institutions and businesses to promote regional integration in the development of the blue economy.

Over 200 delegates from 20 countries and international organizations are participating in the event, which is themed: “Future of the Blue Indian Ocean Development, Practices of the Global South” and taking place from Dec. 15-17.

China says the forum represents its concrete actions in supporting development cooperation for the Global South, with the aim of advancing the Global Development Initiative and driving development for countries in the Global South, particularly nations in the Indian Ocean and small island developing countries. The forum is also meant to be a key driver for the sustainable development of the blue economy.

However, as China has significantly expanded its engagements in the Indian Ocean region over the past three decades, concern has risen among American and Indian strategists that its growing naval presence, together with its use of so-called “debt-trap diplomacy,” might provide it with meaningful military advantages far from its shores.

“Zardari has reaffirmed Pakistan’s commitment to promote regional marine cooperation and ensuring peace, progress and sustainability in the Indian Ocean region,” state broadcaster Radio Pakistan said after the president addressed the forum virtually. 

“President stressed the need for collective action to harness the ocean’s potential while addressing the pressing challenges of climate change, pollution, and ecosystem degradation.”

Zardari said Pakistan was ready to partner with all stakeholders to promote marine cooperation and ensure that the Indian Ocean region remained a “bastion of peace, progress, and sustainability.”

Pointing to Pakistan’s efforts to enhance its blue economy, Zardari said it had formulated the National Maritime Policy, launched The Living Indus Initiative, a program by the government of Pakistan and the United Nations to restore the ecological health of the Indus River, and started other initiatives focusing on sustainable fisheries and marine conservation.

The development of the southwestern Gwadar Port under the China-Pakistan Economic Corridor (CPEC) would transform the port city into a regional connectivity hub to drive trade and maritime economic growth, Zardari added. 

“He praised Pakistan’s partnership with China, under the Belt and Road Initiative, emphasizing its role in knowledge exchange, technological advancement and marine conservation,” Radio Pakistan said. 

“The President commended China’s Global Development Initiative and CIDCA’s efforts to embed sustainability in the Forum’s goals. He expressed appreciation for the inclusion of capacity building and island nations in the Forum’s agenda, saying that it aligned with Pakistan’s vision of transnational collaboration and environmental stewardship.”

China has an extensive network of military satellites but just one dedicated military base, and no air cover from land or sea, for Indian Ocean naval deployments.

In its October annual report on China’s military, the Pentagon lists 11 potential Chinese bases on the ocean’s fringes, including Pakistan, Tanzania and Sri Lanka. Those locations reflect Chinese diplomatic and commercial outreach under Xi’s Belt and Road Initiative.

But these have not emerged as hard military assets, with neither a permanent Chinese army presence nor publicly known guarantees of access in a conflict. The Pentagon report notes, in language used for the first time this year, that China still “has little power projection capability” in the Indian Ocean.

Topics: Pakistan China Ties Indian Ocean forum 3rd China-Indian Ocean Region Forum China-Indian Ocean Region Forum

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