Current account deficit increases economic problems: Ahsan Iqbal

LAHORE

Staff RepoRt

Madiha Usman had the best experience of traveling with Pakistan Railways when she took a ride from Islamabad to Lahore in the recently launched coaches in the Green Line Express train service. Talking about the train on which she was traveling with her kids, the mother of four said she had been anxiously waiting for the new coaches since she heard about them on social media. “I had to visit my sister in Lahore and I purposely delayed it till the induction of these Chinese coaches in the service. I must say that I have never had such a good experience during my years of traveling with the railways, and I will recommend my relatives and friends to choose the comfortable train for their travel,” Usman said while curiously checking the LED screen in front of her in the train. The Green Line Express train halted the operation for about five months due to a flood which submerged railway tracks in Sindh province, and the service has resumed with nine Chinese coaches, including the six imported from China Railway Rolling Stock Corporation Tangshan Company in late 2022 and three recently refurbished carriages that were imported from China in 2015. Zareer Mahmood, station superintendent of the Rawalpindi Railway station, one of the busiest stations in the South Asian country, said that considering the coaches are the best in the system, the railway department has also provided the best possible facilities to the passengers traveling through it. “The ticket between Lahore to Karachi is around Rs8,500, slightly higher than other trains, but the passengers get good quality meals, free of cost tea, and personal use items at it,” he told Xinhua. Mahmood said that due to positive feedback on the coaches, all the tickets have been booked for over 10 days since its launch on January 27. Speaking from his office at the heavily crowded train station, Mahmood said the new Chinese coaches have not only shortened the distance because of their high speed but also provide comfy travel to passengers because of their advanced breaks which minimize the vibration and discomfort on the train. Addressing the ceremony of the formal induction of the carriages in the railways, Prime Minister Shahbaz Sharif said the China-imported coaches would uplift the image of Pakistan Railways and help the department increase its revenue by attracting more passengers. He said the Chinese company has provided coaches to Pakistan with new features including WiFi services, washrooms for disabled people, modern chairs and infotainment facilities. People from every walk of life are traveling the newly inducted coaches and are calling it the best service provided by the railways.

Federal Minister for Planning Development and Special Initiatives Ahsan Iqbal said on Saturday that economic problems increased due to current account deficit, while inflation ratio had been on the rise during the last five years.

He expressed these views while addressing a ‘Roundtable Conference on Economy’ here at Lahore School of Economics (LSE). Dean Dr. Azam Amjad Chaudhry also spoke at the conference.

The federal minister said that the current account deficit led to numerous economic problems, asserting that the previous government did not initiate any energy projects, though purchase of big vehicles continued. He mentioned that the energy crisis started in Pakistan after 2007. He made it clear that prior to the present government, the Ministry of Finance had made an announcement that quarterly funds of budget were not being released.

Ahsan Iqbal recalled that despite sanctions on Pakistan due to nuclear tests, the then government had provided funds for developmental projects. Pakistan had been facing problems due to political instability and economic policies could not flourish because of frequent political changes in Pakistan. He observed that every succeeding government blamed the previous government for its failure because projects were not completed in its five-year term. He said that a country could develop only with political stability for at least 10 years.

The minister said that Pakistan had Thar coal reserve, which was a bigger treasure than oil of Iran and Saudi Arabia. Thar coal could provide cheap energy, he said and added that Pakistan could also enhance its energy generation by optimum utilisation from other energy resources such as wind, hydel and solar.

Ahsan Iqbal said that privatisation in telecom sector led to economic growth in the country, adding, “We got a peace plan in the form of CPEC (ChinaPakistan Economic Corridor), by which the country could increase its economic growth capacity. The structure of the economy is not very strong; however, CPEC attracted the world towards Pakistan like a magnet,” he said and cited that around 100 Chinese companies had opened offices in Islamabad.

He was of the view that Pakistan had dropped the economic growth catch due to 1965 war and no economic planning could be done properly with frequent changes of governments.

Ahsan Iqbal said, “CPEC is not a catch for cricket but for football. CPEC is a game-changer, and we all must not missed this great opportunity. China always stood with Pakistan in difficult times.”

The previous leadership had levelled baseless allegations of corruption in the projects of Chinese companies, and he was also accused of Rs 70 billion embezzlement in Multan-Sukkur Motorway project, he said and asserted that due to such baseless allegations, all companies closed their offices and went back and not a single dollar came to the country and the world’s trust in Pakistan had been lost during the last four years of previous government.

He remarked, “Pakistan’s push-start economy will have to be done by changing the engine battery. If import increases, emergency brake has to be applied. The push-start will not work for long, the battery of support will have to be invested in the economy.”

APBF laments ‘failed’ economic policies almost devour rupee

LAHORE

Staff RepoRt

The All Pakistan Business Forum (APBF) has said that failure of the economic policies has pulled the local currency down by around 18% during just one week, with no result of the ongoing talks with the International Monetary Fund (IMF).

President APBF Syed Maaz Mahmood urged the government to control volatility of rupee against the US dollar, as the industrial revival and economic growth is not possible without stability of local currency. He said that the massive devaluation of currency fuelled inflationary pressures, adding that two major factors contributed to the price hike.

Maaz Mahmood said that no relaxation in the IMF’s conditions has been made despite the government’s repeated request.

This continues to destabilize financial markets leading to economic uncertainty.

The government has, however, assured the global lending institution that it shall implement all of its conditions.

APBF Chairman Ibrahim Qureshi said that the demand for US dollars has remained high in the system due to the piled up imported raw material lying at Karachi ports. The currency is market determined. Accordingly, the rupee-dollar exchange rate depreciates on the days when demand for the foreign currency appears higher than supplies in the market, he added.

As per the State Bank of Pakistan, the currency settled at 276.58, a decline of Rs5.22 or 1.89% against the US dollar. The currency has depreciated by 25.93% during the ongoing fiscal year against the greenback. In the open market, the rupee lost 6.50 rupees for buying and 7.50 rupees for selling against USD, closing at 280 and 283, respectively.

Khyber Pakhtunkhwa but were routed by Zarb-i-Azb, an army offensive after 2014.

But over the first year of Taliban rule, Pakistan witnessed a 50 percent uptick in militant attacks, concentrated in the border regions with Afghanistan and Iran, according to the Pak Institute for Peace Studies.

The TTP, notorious for shooting schoolgirl Malala Yousafzai, has “arguably benefitted the most of all the foreign extremist groups in Afghanistan from the Taliban takeover”, a UN Security Council (UNSC) report said in May 2022.

khar, top Bangladesh diplomat discuss bilateral cooperation

ISLAMABAD

Staff RepoRt

Deputy Foreign Minister Hina Rabbani Khar and Foreign Minister Abul Kalam Abdul Momen of Bangladesh on Saturday discussed “mutually beneficial bilateral cooperation” in several arenas, especially economy and trade. The two diplomats met on the sidelines of the independence day celebrations in Sri Lanka, a Foreign Office spokesperson said in a press statement. According to Radio Pakistan, Khar expressed her satisfaction with the growing commercial relations between Pakistan and Bangladesh. She emphasised the importance of enhancing economic, trade, and investment ties, as well as increasing tourism and people-to-people interactions. The minister also highlighted the shared perspectives of Pakistan and Bangladesh on various international issues, particularly those related to the Muslim world. Her comments reflect the growing cooperation and positive momentum between the two countries, analysts said. Pakistan and Bangladesh have made significant progress in strengthening their relationship over the years. The relationship took a positive turn in March 2021 when thenprime minister Imran Khan wrote a letter of congratulations to his Bangladeshi counterpart, Sheikh Hasina, on the occasion of Bangladesh’s 50th independence anniversary. Bangladesh’s response was positive, with Sheikh Hasina stating that her country is committed to maintaining peaceful and cooperative relationships with its neighbouring countries, “including Pakistan”.

pakhtuns, like past, will defeat enemies at any cost: Iftikhar

PESHAWAR

Staff RepoRt

Secretary General Awami National Party, Mian Iftikhar Hussain said here on Saturday that Pakhtuns would not hesitate to make any sacrifice to restore peace in their motherland and defeat the enemies at any cost.

Addressing the participants of Peace March in front of Peshawar Press Club, Mian Iftikhar recalled the attack on Army Public School and termed the recent attack on Police Lines mosque as a cowardly act of terrorists. He said that the Pakhtun nation was united to end militancy that created the deteriorating law and order situation. He said that it was most unfortunate that innocent Pashtuns were being targeted by terrorists, adding that concerned institutions should investigate the Police Lines blast and bring the culprits to the court of law. He further said our police are being targeted frequently and more than 102 families were affected in the recent explosion. We equally share the grief of heirs of martyred families, he said. Awami National Party Secretary Finance Haji Hidayatullah Khan, Secretary Youth Affairs Khan Zaman Kakar, Provincial General Secretary Sardar Hussain Babak, Senior Vice President Khushdil Khan Advocate, Haji Ghulam Ahmad Bilour and other party workers were present on the occasion.