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Civil-military leadership up to taCkle food inseCurity, soaring agri import
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Saturday, 8 July, 2023 I 19 Zil Hajj, 1444
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Rs 15.00 | Vol XIV No 8 I 8 Pages I Islamabad Edition
g STATE-OF-ART SYSTEM TO ENHANCE FOOD PM SHEHBAZ, COAS INAUGURATE LAND INFORMATION AND MANAGEMENT SYSTEM SECURITY, IMPROVE AGRI EXPORTS TO TO OPTIMISE AGRICULTURAL PRODUCTION REDUCE BURDEN ON EXCHEQUER
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ISLAMABAD
STAFF REPORT
He country’s civil and military leaders on Friday inaugurated the Land Information and Management System – Centre of excellence (LIMS-COe) to addressing the pressing issues of food insecurity, malnutrition, and soaring import costs in the agriculture sector. The inauguration of groundbreaking solution of Prime Minister Shehbaz Sharif and Chief of Army Staff (COAS) General Asim Munir, aims to transform unproductive acres, ensure food security, boost agricultural exports, and lighten the load on the national economy. Besides the Prime Minister, the COAS, ministers of finance, defence, planning and information chief secretaries of the provincial governments, agricultural experts, senior army officials and several other key officials of the other countries were also present on the occasion. “establishment of LIMS is the first exceptional initiative, aimed at enhancing food security and improving agri exports thus reducing import burden on the national exchequer,” read the official statement issued by the PM Office, adding that the initiative would help transform millions of acres of uncultivated or low yield land within the country. “This state-of-the-art system will help optimise the agricultural production through innovative technologies and sus-
tainable precision agricultural practices based on the agroecological potential of land,” the statement added, saying the system would ensure the well-being of rural communities and the preservation of the environment. According to the World Food Programme, 36.9 per cent of Pakistanis are food insecure and 18.3 per cent of these are facing severe food crisis. Cognisant of the prevailing food insecurity, the statement continued, mass malnutrition and widening import bill of agri-related products vis-à-vis projected population growth and future domestic food needs, “the national political, economic and military leadership has decided
Pakistan observes ‘Quran Sanctity Day’ to denounce desecration in Sweden
Weekly inflation up 0.70pc to reach 28.5pc ISLAMABAD
STAFF REPORT
to undertake the decisive and meaningful steps to address this critical issue.” The GIS-based LIMS will greatly improve the national agri yield by systemising digitisation of agriculture, it said, providing real-time information to local farmers about soil, crops, weather, water resource and pest monitoring through remote sensing and geospatial technologies as well as minimising the role of middlemen through efficient marketing system. The LIMS-COe initiative has come on the heels of the civil-military leadership presenting an “economic Revival Plan” on June 20, which was stated to be bigger than the China-Pakistan eco-
nomic Corridor (CPeC), to address the nation’s continued struggles with growth. The government had established a Special Investment Facilitation Council (SIFC) under the economic recovery plan, which would serve as a streamlined interface for investors and remove all the bottlenecks in investments with the help of the army. The army-backed plan was focused on harnessing the country’s untapped potential in key sectors through local development and foreign investments mainly from Gulf countries and expediting project implementation. Just before the government is about to complete its five-year constitutional term and the country is about to go for general elections, this is the second initiative where the civil-military leadership has come united to move ahead. earlier, the plan was unveiled during an event, which was chaired by PM Shehbaz and attended by the COAS at the Prime Minister’s House. The prime minister had stressed the need for export-oriented foreign direct investments (FDIs) while the army chief pledged the full support of the military, recognising the plan’s importance for national prosperity. The plan envisages capitalising Pakistan’s untapped potential in key sectors of defence production, agriculture, livestock, minerals and mining, information technology and energy, through indigenous development as well as investments from friendly countries.
The weekly inflation, measured by Sensitive Price Indicator (SPI), witnessed an increase of 0.70 pc to jump to 28.55pc on a year-on-year basis for the week ending on June 6, official data showed. According to Federal Bureau of Statistics, this is the lowest rate since October 20, 2022, when SPI inflation clocked in at 27.1 percent. The short-term inflation rose by an all-time high of 48.35pc for the period that ended on May 4. During the week, out of 51 items, prices of 24 (47.06 percent) items increased, 10 (19.61 percent) items decreased and 17 (33.33 percent) items remained stable. The items, which recorded an increase in their average prices during the week over the previous include tomatoes (42.25 percent), onions (8.70 percent), potatoes (4.79 percent), wheat flour bag 20 kg (4.05 percent), gur (4.01 percent), sugar (3.48 percent), shirting (3.02 percent), hi-speed diesel (2.95 percent), garlic (1.90 percent), matchbox each (1.66 percent), curd (1.43 percent), pulse mash (1.29 percent), milk fresh (1.20 percent), rice irri-6/9 (0.74 percent), rice basmati broken (0.67 percent), mustard oil (0.59 percent), tea prepared (0.56 percent), long cloth 57″ Gul ahmed/Al Karam (0.51 percent), mutton (0.40 percent), beef with bone (0.39 percent), toilet soap (0.24 percent), powdered milk Nido 390 gm polybag each (0.13 percent), georgette (0.08 percent) and cooked daal (0.04 percent). The items, which recorded a decrease in their average prices during the week over the previous include bananas (7.51 percent), chicken (2.80 percent), eggs (1.17 percent), LPG (0.96 percent), vegetable ghee Dalda/Habib 2.5 kg tin each (0.74 percent).
ISLAMABAD/LAHORE STAFF REPORT
Pakistani nation on Friday observed “Youm-i-Taqaddus-iQuran” (Quran Sanctity Day) with fervour and organized rallies and protests to give vent to their anger against the desecration of the Holy Quran in Sweden. The nation also reiterated the pledge to never hesitate from rendering any sacrifice for upholding sanctity of the Holy Quran and urged the world leaders to act fast against rising trend of islamopobia to ensure peace and tranquillity in the world. Last week, a man had desecrated the Holy Quran in Sweden’s capital Stockholm, resulting in strong condemnation from several Muslim states, the Organisation of Islamic Cooperation (OIC), the european Union, Pope Francis and the Swedish government, among others. earlier this week, a joint session of Parliament had passed a resolution urging Sweden to take “appropriate steps” against the perpetrators involved while the government had designated today as Yaum-i-Taqaddus-i-Quran to express outrage over the incident. earlier in the day, Prime Minister Shehbaz Sharif said that the whole nation will hold a peaceful protest against the Sweden incident across Pakistan under the title of ‘Holy Quran Day’ today. “After Friday prayers all Pakistani Muslims will record their peaceful protest. Quran is in our hearts,” PM Shehbaz said adding that the entire Muslim Ummah was worried over the Holy Quran’s des-
ecration incident in Sweden. Protests and rallies took place across the country including by political parties, lawyers, the Christian community and other segments of the society. Rallies were held in major cities after Friday prayers with citizens expressing their anger at the incident in Sweden. The PML-N organized various rallies across the country to condemn the discretion of Quran and renew the pledge to ensure sanctity of the Holy Quran at all costs. Similarly, the PTI organised rallies in all the four provinces, Gilgit Baltistan and AJK to observe Youm-i-Taqaddus-i-Quran” (Quran Sanctity Day). The PPP, JUI-F and other parties also held rallies to vent off their anger against the discretion of Holy Quran in Sweden. Religious organisations and members of civil society staged a demonstration outside the Quetta Press Club. On the occasion, protesters said that the desecration of the Holy Quran in Sweden had
hurt the sentiments of Muslims across the world. They also called on the government to summon the Swedish envoy to record Pakistan’s strong protest. Another rally was also organised in Chagai and Dera Bugti, where protesters carried placards and chanted slogans. Muslim Ummah has strong resentment over desecration of Holy Quran: PM: Prime Minister Shehbaz Sharif has said there is a strong resentment in the Muslim Ummah over the desecration of holy Quran in Sweden. In a tweet Friday on the occasion of Yaum-e-Taqaddus-e-Quran, he said the nation is united for the sanctity of holy Quran. He said all segments of the society will stage peaceful demonstrations after Friday prayers today to express their sentiments over the despicable incident of desecration of holy Quran. The Prime Minister said holy Quran is in our hearts. He said Quran is not only recitation for us, but a guideline for living.
Currency dealers hold back on dollar sales g
DEALERS BUYING DOLLARS IN RANGE OF RS 275-280 BUT NOT WILLING TO SELL PROFIT
MARIAM UMAR FAROOQ
On Thursday, the availability of greenbacks in the open market seems to be scarce. In an effort to gain insights, Profit engaged with several foreign exchange dealers to assess the situation. While the supply of dollars is not necessarily limited, the currency dealers appear to be refraining from selling to anyone. Despite their willingness to purchase the dollars at a rate ranging between Rs 275-280, none of the foreign exchange dealers are currently willing to part with their stock. This is not the first time that such a situation has occurred where the Pakistani Rupee had appreciated against the greenback but exchange dealers were not willing to sell greenbacks. In fact, a similar situation occurred a month ago when the State Bank of Pakistan granted banks the authority to purchase US dollars from the interbank market for settling cardbased cross-border transactions with International Payment Schemes (IPSs). Rupee appreciation against greenbacks in June The central bank implemented this measure with the objective of narrowing the disparity between exchange rates observed in the interbank and open markets. Prior to this change, banks had been purchasing dollars from exchange companies for the past 17 years. The open market rate for US dollars had surged due to high demand from travellers, students, pilgrims, and banks. Banks were buying dollars for settling card-based cross-border transactions with IPSs. Besides, supply had decreased significantly because of the devaluation of the Pakistani currency and better rates of the dollar in the unofficial market. As banks were granted the option to purchase and settle payments through the interbank system, the demand for trading in the open market further dwindled. This placed pressure on exchange companies and contributed to the appreciation of the Pakistani rupee against the US dollar within the open currency market. However, even back then Profit reached out to different foreign exchange dealers and sources who contended that the rupee’s appreciation was artificial. These sources revealed that currency dealers were solely interested in purchasing dollars at the prevailing rate but were not engaging in any selling transactions. Consequently, the displayed rate in the open market was deemed incongruous with the actual prevailing rate. A similar situation persists today, where despite the availability of dollars, currency dealers are focused on buying rather than selling. Currency dealers are presently awaiting a resurgence in the dollar rates before opting to sell at more favourable rates. Rupee appreciation following the agreement with IMF In the wake of the agreement with the International Monetary Fund (IMF), the Pakistani rupee orchestrated an unexpected resurgence against the US dollar, surging by more than Rs 11 on Tuesday. The first day of trading in the open market following Pakistan’s Standby Agreement (SBA) with the IMF, which secured a $3 billion funding package, instilled a sense of economic stability, which was reflected in the improved value of the rupee. Consequently, dollar hoarders flocked to the exchange companies to sell their holdings. However, owing to ongoing bank holidays, only a handful of exchange companies possessed physical cash in Pakistani rupees, and even their reserves were limited. Thus, most exchange companies faced constraints in their ability to purchase dollars due to a shortage of Pakistani rupees. The scarcity of cash rupees stemming from the bank holidays created an opportunity for several money changers to independently set their own rates for purchasing dollars, which ranged from Rs 275 to Rs 285. According to exchange companies, there was a surplus of sellers but a notable absence of buyers for dollars.
IMF delegation calls on Imran Khan, PPP leaders ahead of board meeting g
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MEETING WITH PTI CHIEF WAS ATTENDED BY IMF COUNTRY CHIEF NATHAN PORTER VIRTUALLY AND RESIDENT REPRESENTATIVE ESTER PEREZ LUIZ PROFIT
STAFF REPORT
Days before the International Monetary Fund (IMF) executive board meeting to review and possibly endorse a $3 billion Standby Arrangement (SBA) for Pakistan, a delegation of the global lender on Friday called on Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan in Lahore and leaders of Pakistan People Party in Islamabad. The Washington-based lender is seeking the support of major political parties including the PTI, ruling Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) for the recently announced $3 billion bailout programme. Unlike previous programmes, the fund is proactively seeking assurance from all Pakistan’s political players to stand by the
prior conditions set by the fund and not sabotage the deal for political gains. earlier today, the IMF’s resident representative esther Perez Ruiz said in a statement that the meetings with political parties were to “seek assurances of their support for the key objectives and policies under a new IMF-supported programme ahead of the approaching national elections.” It is pertinent to mention here that the IMF executive board will meet on July 12 to review the SBA for Pakistan. The cash-strapped country and the IMF had reached a long-awaited staff-level agreement (SLA) on $3 billion SBA on June 30. With sky-high inflation and foreign exchange reserves barely enough to cover one month of controlled imports, Pakistan has been facing its worst economic crisis in
decades, which analysts say could have spiraled into a debt default in the absence of the IMF deal. “I am pleased to announce that the IMF team has reached a staff-level agreement with the Pakistani authorities on a ninemonth Stand-by Arrangement (SBA) in the amount of SDR 2,250 million (about $3 billion or 111 percent of Pakistan’s IMF quota),” Nathan Porter, the IMF’s Mission Chief to Pakistan, had said in a statement. The $3 billion funding, spread over nine months, is higher than expected for Pakistan. The country was awaiting the release of the remaining $2.5 billion from a $6.5 billion bailout package agreed in 2019. The deal comes after an eight-month delay and offers some respite to Pakistan, which is battling an acute balance of payments crisis and falling foreign exchange reserves.
The former ruling party, PTI, also welcomed the SBA to preserve macroeconomic stability by anchoring external financing and sound policies ahead of the national elections due in the fall of this year and until a new government is formed, party leader Hammad Azhar said. Taking to Twitter, Azhar said that the IMF team called on the PTI chairman at his residence on Friday. The meeting was attended by IMF country chief Nathan Porter who joined virtually from Washington and Resident Representative ester Perez Luis who was physically present, he added. Giving details, the former minister said that discussions took place around the stafflevel agreement that the IMF reached with the government for a 9-month $3 billion SBA. “In this context, we support the over-
all objectives and key policies.” The PTI leader also said that they wish to stress the importance of programmes to protect the lower-income segments of the population from high inflation. The PTI considers political stability and rule of law as integral to the economic stability of Pakistan, Azhar said, adding that following free, fair, and timely elections as per the Constitution, a new government mandated by the people will initiate reforms and engage on a longer-term basis with multilateral institutions to further economic transformation, higher and more inclusive growth. PTI’s team included Imran Khan, Shah Mehmood Qureshi, Hammad Azhar, Shaukat Tarin, Omer Ayub Khan, Dr Sania Nishtar, Shibli Faraz, Taimur Jhagra & Muzammil Aslam. earlier, Federal Minister for Commerce Syed Naveed Qamar also held a crucial meeting with ester Perez Luis, the country representative of the IMF.
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