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"The meeting agreed to launch an all-out comprehensive operation with the entire nation and the government, which will rid the country of the menace of terrorism with renewed vigor and determination," the security committee said in a statement. Pakistan, a nuclear-armed country of 220 million people, has seen a rise in attacks by Islamist militants in the last few months, particularly since negotiations with the Tehreek-e-Taliban Pakistan militant group broke down last year. The court has already rejected the government's argument, but Friday's security committee statement brings with it the key endorsement of Pakistan's powerful military. It (the government) gets the military's backing without the military giving any sort of political statement," Hussain added. Pakistan's military has ruled the country for over 30 years out of its 75-year history and continues to wield enormous power.

☆ Exclusive: China plans $500 million subsea internet cable to rival US-backed project
▼ + stars: | 2023-04-06 | by ( Joe Brock | ) www.reuters.com time to read: +10 min

China's three main carriers – China Telecommunications Corporation (China Telecom), China Mobile Limited and China United Network Communications Group Co Ltd(China Unicom) – are mapping out one of the world’s most advanced and far-reaching subsea cable networks, according to the four people, who have direct knowledge of the plan. They said HMN Tech, which is majority-owned by Shanghai-listed Hengtong Optic-Electric Co Ltd, would receive subsidies from the Chinese state to build the cable. China Mobile, China Telecom, China Unicom, HMN Tech, and Hengtong did not respond to requests for comment. The consortium on the SeaMeWe-6 cable – which originally had included China Mobile, China Telecom, China Unicom and telecom carriers from several other nations – initially picked HMN Tech to build that cable. China Telecom and China Mobile pulled out of the project after SubCom won the contract last year and, along with China Unicom, began planning the EMA cable, the four people involved said.

☆ Exclusive: China plans $500 mln subsea internet cable to rival U.S.-backed project
▼ + stars: | 2023-04-06 | by ( Joe Brock | ) www.reuters.com time to read: +10 min

China's three main carriers – China Telecommunications Corporation (China Telecom), China Mobile Limited and China United Network Communications Group Co Ltd(China Unicom) – are mapping out one of the world’s most advanced and far-reaching subsea cable networks, according to the four people, who have direct knowledge of the plan. They said HMN Tech, which is majority-owned by Shanghai-listed Hengtong Optic-Electric Co Ltd, would receive subsidies from the Chinese state to build the cable. China Mobile, China Telecom, China Unicom, HMN Tech, Hengtong and China’s Foreign Ministry did not respond to requests for comment. The consortium on the SeaMeWe-6 cable – which originally had included China Mobile, China Telecom, China Unicom and telecom carriers from several other nations – initially picked HMN Tech to build that cable. China Telecom and China Mobile pulled out of the project after SubCom won the contract last year and, along with China Unicom, began planning the EMA cable, the four people involved said.

I'll never get over his death as long as I live," his father, Umer Zada, told Reuters. Zada said the distribution of aid should have been better organised, with police supervision of the hungry and desperate seeking help. "There has been a 50% reduction in donations this year, while there has been a 50% increase in people seeking help." The group's ambulances took away the injured and the bodies of Saad and the others killed in the Karachi crush. Like everyone, Zada is struggling with inflation but he also has to contend with grief and questions that torment him.

KARACHI, Pakistan, April 4 (Reuters) - Pakistan's central bank raised its key interest rate by 100 basis points to a record 21% on Tuesday, as the cash-strapped country stepped up its fight against soaring consumer prices. Investors polled by Reuters had expected an even-bigger rate hike of 200 basis point from the State Bank of Pakistan (SBP), which is facing on consumer price inflation that hit a record annual level of just over 35% in March. Worldwide growth in consumer prices has compounded high inflation in Pakistan caused by a weakening currency, energy tariff increases and elevated food prices due to Ramadan. The SBP has hiked the key rate by cumulatively by 1025 bps since January 2022. In early March, the bank raised its key rate by 300 basis points to 20%, exceeding market expectations, likely to meet a key requirement of the IMF for release of bailout funds.

☆ Pakistan posts highest-ever annual inflation; stampedes for food kill 16
▼ + stars: | 2023-04-01 | by ( Asif Shahzad | ) www.reuters.com time to read: +2 min

REUTERS/Akhtar SoomroISLAMABAD, April 1 (Reuters) - Consumer price inflation in Pakistan jumped to a record 35.37% in March from a year earlier, the statistics bureau said on Saturday, as at least 16 people were killed in stampedes for food aid. The March inflation number eclipsed February's 31.5%, the bureau said, as food, beverage and transport prices surged up to 50% year-on-year. A spokesman at the statistics bureau said the inflation number was the highest ever year-on-year increase recorded by the bureau since monthly records began in the 1970s. Annual food inflation in March was at 47.1% and 50.2% for urban and rural areas respectively, the bureau said. Core inflation, which strips out food and energy, stood at 18.6% in urban areas and 23.1% in rural areas.

Eighteen out of 20 economists and market watchers surveyed said the central bank would hike rates, with 12 of them predicting a 200 bps increase. Two poll participants saw the benchmark raised by 100 bps, while four forecast a 150 bps hike. Worldwide growth in consumer prices has compounded high inflation in Pakistan caused by a weakening currency, energy tariff increases and elevated food prices due to Ramadan. The latest consumer price-based inflation clocked a 31.5% rise on year in February, the highest in nearly 50 years. The State Bank of Pakistan has raised rates by a total 10.25% since January 2022.

KARACHI, Pakistan, March 30 (Reuters) - China is working on a request by Pakistan to roll over a $2-billion loan that matured last week, a top finance ministry official told Reuters. The rollover is critical for the South Asian nation, as its foreign exchange reserves have dipped to just four weeks worth of imports at a time when it is locked in talks with the International Monetary Fund (IMF) to secure bailout funds. The loan matured on March 23. The IMF funding is critical for Pakistan to unlock other external financing avenues, and the two have been negotiating since early February to resume $1.1 billion in funding held since November, part of a $6.5 billion bailout agreed in 2019. One of the lender's last remaining conditions for release of the tranche is securing an assurance on external financing to fund Pakistan's balance of payments.

Pakistan is no stranger to economic crises - this is its fifth IMF bailout since 1997 - but economists say the latest measures, which include higher taxes and fuel costs, are hurting educated professionals. "Unfortunately the poor in Pakistan are left with nothing to lose," said Abid Suleri, the Sustainable Development Policy Institute of Pakistan, an economic think tank. "Educated professionals... find their purchasing power and savings eroded, and daily consumption either unaffordable or out of reach." "It will be more difficult to buy sweets and gifts for Eid, which is a break from our family tradition." The economic turmoil is driving some professionals out of the country.

[1/2] Former Pakistani Prime Minister Imran Khan, waves from the vehicle as he leaves from Lahore to appear before Islamabad High Court, in Lahore, Pakistan March 18, 2023. 'GOVT INTENDS TO ARREST ME'The court has previously issued arrest warrants for Khan in the case as he had failed to appear on previous hearings despite summons. On his assurance that he would appear on Saturday, the court granted Khan protection against arrest, but he said he feared the police and government planned to take him into custody. There were reports of fresh clashes between police and supporters of Khan and his party, the Pakistan Tehreek-e-Insaf (PTI) in Lahore. (This story has been corrected to show Khan is to appear in court, not appearing in court, in the headline.

☆ Pentagon chief visits Israel amid West Bank violence, anti-Netanyahu protests
▼ + stars: | 2023-03-09 | by ( Idrees Ali | Thomson Reuters | National Security Correspondent Focusing On The Pentagon In Washington D.C. Reports On U.S. Military Activity | ) www.reuters.com time to read: +4 min

Hours earlier, Israeli forces killed three Islamic Jihad gunmen in the West Bank, among territories that have seen simmering violence amid the Palestinians' long-stalled goal of statehood. "We’re especially disturbed by violence by settlers against Palestinians," Austin said, adding that his discussions were frank and candid. Austin had originally been due to arrive on Wednesday and stay overnight in Tel Aviv, where Israel's Defence Ministry is based. FLASHPOINTSAmong West Bank flashpoints concerning the United States is the village of Huwara, where the Feb. 26 killing by a Palestinian gunman of two brothers from a Jewish settlement triggered revenge riots by settlers. The rampage triggered worldwide outrage and condemnation, which increased when ultra-nationalist Finance Minister Bezalel Smotrich, who has responsibility for aspects of the West Bank administration, said Huwara should be "erased".

☆ Pakistan's Honda Atlas shuts production to end-March on import difficulties
▼ + stars: | 2023-03-08 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

KARACHI, Pakistan, March 8 (Reuters) - Honda Atlas Cars Pakistan Ltd has announced the longest plant shutdown to date in the current economic crisis amongst the country's automakers, which are struggling to obtain raw materials due to import difficulties. The company, a unit of Japanese car giant Honda Motor Co Ltd (7267.T), said its plant would shut from March 9, 2023, to March 31, 2023. Other listed-automakers, such as Indus Motor Company Limited (INDU) and Pak Suzuki Motor Company (PSMC), have also been forced to halt production during the past three quarters due to Pakistan's economic difficulties, which have seen central bank foreign exchange reserves drop to a level barely able to cover four weeks of imports. “Pakistan has limited dollars and until reserves improve to at least two months’ worth of import cover, import restrictions would likely continue.”Other manufacturing halts in the sector have been between two and 16 days. Reporting by Ariba Shahid in Karachi; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

☆ Activists rally, some governments seek change as world marks Women's Day
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +3 min

[1/4] Demonstrators take part in a march to call for gender equality and protest against gender discrimination, marking the International Women's Day in Tokyo, Japan March 8, 2021. REUTERS/Issei KatoMarch 8 (Reuters) - Activists planned rallies and marches to celebrate International Women's Day on Wednesday while governments in several countries promised action to help improve the lot of half the world's population. International Women's Day has its roots in the U.S. socialist and labour movements of the early 20th century when many women were fighting for better working conditions and the right to vote. In Russia, where International Women's Day is one of the most celebrated public holidays, the head of its upper house of parliament used the occasion to launch a vehement attack on sexual minorities and liberal values promoted by the West. Reporting by Reuters bureaus; Writing by Raju Gopalakrishnan; Editing by Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ Pakistani fintech startup Trukkr raises $6.4 mln, gets lending licence
▼ + stars: | 2023-03-07 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

KARACHI, Pakistan, March 7 (Reuters) - Trukkr, a fintech platform for Pakistan’s trucking industry, said on Tuesday it had raised $6.4 million in a funding round and also received a non-banking financial company (NBFC) licence. Trukkr offers Pakistan’s small- and medium-sized trucking companies a transport management system and supply chain solutions, and is unique in providing fintech to digitise the largely unbanked and undocumented industry. The seed funding round was led by U.S. based Accion Venture Lab and London based Sturgeon Capital. Haitou Global, Al Zayani Venture Capital and investor Peter Findley also participated in the round, Trukkr said in a statement. Adamjee told Reuters that Pakistan's $35 billion a year trucking industry is growing at 10% annually despite limited rail and water freight infrastructure.

☆ Pentagon chief makes unannounced trip to Iraq as 20-year anniversary of invasion nears
▼ + stars: | 2023-03-07 | by ( Idrees Ali | Thomson Reuters | National Security Correspondent Focusing On The Pentagon In Washington D.C. Reports On U.S. Military Activity | ) www.reuters.com time to read: +2 min

Austin, the most senior official in President Joe Biden’s administration to visit Iraq, was the last commanding general of U.S. forces there after the invasion. “I'm here to reaffirm the U.S.-Iraq strategic partnership as we move toward a more secure, stable, and sovereign Iraq,” Austin said. The United States is broadly interested in a strategic partnership with the government of Iraq," the senior U.S. defense official, speaking on the condition of anonymity, told reporters. The United States and Iran came close to full-blown conflict in 2020 after Iran's Revolutionary Guards' top commander Qassem Soleimani was killed in a drone strike. "I think that Iraqi leaders share our interest in Iraq not becoming a playground for conflict between the United States and Iran," the defense official added.

Finance Minister Ishaq Dar had said last week that the external financing assurance was not one of the IMF's conditions for clearance of the funding. Pakistan has completed almost all other measures needed except for the external financing requirement, officials say. Dar said last week that Pakistan will need $5 billion external financing to close its financing gap this fiscal year ending June 30, adding the IMF believed it should be $7 billion. Dar said hoped more external financing will be coming as Pakistan signs the IMF deal this week. Ruiz noted that the difference in foreign exchange rates between the open and informal markets has been very damaging for Pakistan, resulting in shortages of foreign exchange and consequently imported goods.

☆ Fall of Bakhmut would not mean Russia has turned tide of war - Pentagon chief
▼ + stars: | 2023-03-06 | by ( Idrees Ali | Thomson Reuters | National Security Correspondent Focusing On The Pentagon In Washington D.C. Reports On U.S. Military Activity | ) www.reuters.com time to read: +2 min

AMMAN, March 6 (Reuters) - U.S. Defense Secretary Lloyd Austin said on Monday that the eastern Ukrainian city of Bakhmut was of more symbolic than operational importance, and its fall would not necessarily mean that Moscow had regained the initiative in the war. "I think it is more of a symbolic value than it is strategic and operational value," Austin told reporters while visiting Jordan. "The fall of Bakhmut won't necessarily mean that the Russians have changed the tide of this fight," he said, adding that he would not predict whether or when Bakhmut might fall. Austin said that if Ukrainian forces decided to reposition west of Bakhmut, he would not view that as a strategic setback. Austin alluded to differences between Wagner and the military, saying: "I think the fissures are there ..."I would say the Wagner forces have been a bit more effective than the Russian forces ... Having said that, we have not seen exemplary performance from Russian forces."

☆ U.S. defense secretary aims to reassure Mideast allies, deliver tough message
▼ + stars: | 2023-03-06 | by ( Idrees Ali | Thomson Reuters | National Security Correspondent Focusing On The Pentagon In Washington D.C. Reports On U.S. Military Activity | ) www.reuters.com time to read: +4 min

The United States has about 30,000 troops in the region and is seen as pivotal in helping counter Iranian influence. Austin is poised to send a clear message on the need for Egypt's President Abdel Fattah al-Sisi to respect human rights, underscoring Washington's concern on the issue. "I fully expect him to bring up human rights, respect for fundamental freedoms," the U.S. defense official said. The United States has withheld small amounts of military aid to Cairo, citing a failure to meet human rights conditions. The United States has committed more than $32 billion in weapons to Ukraine including sophisticated air defense systems and tanks.

☆ Pakistan central bank may hike rates another 200 bps to unlock IMF funds
▼ + stars: | 2023-02-28 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

KARACHI, PAKISTAN, Feb 28 (Reuters) - Pakistan’s central bank is widely expected to raise its key policy rate by 200 basis points in an off-cycle meeting on Thursday as it struggles to unlock critical funding from the IMF, a Reuters poll showed. All sixteen economists and market watchers surveyed said there would be a hike -- 14 of them predicted 200 basis points (bps), while two expected 250 bps. The State Bank of Pakistan (SBP) has raised rates by 725 bps since January 2022. In its last policy meeting in January, the bank raised the key rate by 100 bps to 17%, citing inflationary pressure. He said the market had already incorporated a 200 bps hike in the last treasury bill auction where the government accepted bids with yields more than 200 bps higher than the policy rate.

The area, part of Khyber-Pakhtunkhwa province, is a hotbed for fighters of the Tehreek-e-Taliban Pakistan (TTP), an umbrella organisation of Sunni Islamist groups. A TTP spokesman, Muhammad Khurasani, told Reuters its main target was Pakistan's military, but the police were standing in the way. "Khyber-Pakhtunkhwa pays a greater price for that" because of its exposure to the Islamist militants, he said. The TTP ended the ceasefire in November 2022, and regrouped militants restarted attacks in Pakistan soon after. Reporting by Gibran Naiyyar Peshimam and Jibran Ahmad in Bara, Pakistan; additional reporting by Saud Mehsud in Dera Ismail Khan, Pakistan; editing by David Crawshaw.

☆ Pakistan set to increase interest rates in off-cycle review, say investors
▼ + stars: | 2023-02-23 | by ( Ariba Shahid | ) www.reuters.com time to read: +2 min

Market participants in a recent treasury bill auction are expecting at least a 200 basis points increase in the central bank's policy rate, which stands at 17%. The expected increase is based on the rates the Pakistan government set in the auction to raise the funds. The cut off rates for the three-month, six-month, and 12-month tenors jumped 195 bps, 206 bps, and 184 bps higher than the previous auction. While the government expects a deal with IMF soon, media reports say that the agency expects the policy rate to be increased. “Pakistan has two core inflation readings i.e., Urban (15.4% for Jan-23) and Rural (19.4%) and no national core number is released.

☆ China lends Pakistan further $700 mln to shore up FX reserves
▼ + stars: | 2023-02-22 | by ( Asif Shahzad | ) www.reuters.com time to read: +3 min

"This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves," Finance Minister Ishaq Dar said on Twitter. A finance ministry official said the loan was in addition to other facilities that China has already extended to Pakistan. China Development Bank did not respond to a faxed request for comment. Addressing his cabinet, he said the government was focusing on austerity as a top priority. China is already Pakistan's single largest creditor with its commercial banks holding about 30% of its external debt.

☆ Pakistan finance secretary sees IMF staff level talks wrapping up this week
▼ + stars: | 2023-02-21 | by ( Asif Shahzad | ) www.reuters.com time to read: +3 min

[1/2] Men reach out to buy subsidised flour sacks from a truck in Karachi, Pakistan January 10, 2023. We expect to conclude the consultations soon, even within the week," Hamed Yaqoob Sheikh, the top official in the finance ministry, told Reuters. The staff level agreement would need approval from the IMF's board before the funds can be released. Pakistan has taken steps, such as raising more than 170 billion Pakistani rupees ($648 million) through a supplementary finance bill passed by the parliament on Monday. The IMF funds are critical for the $350 billion South Asian economy, which is facing a severe balance of payments crisis.

☆ Pakistan current account deficit falls to $0.2 billion in Jan - cenbank
▼ + stars: | 2023-02-20 | by ( Ariba Shahid | ) www.reuters.com time to read: +1 min

KARACHI, Pakistan, Feb 20 (Reuters) - Pakistan’s current account deficit (CAD) dropped to $0.2 billion in January 2023, down 90% from last year as the rupee's depreciation slowed down imports, the central bank said on Monday. During the first seven months of the current fiscal year, the country’s current account deficit decreased by 67% to $3.8 billion, compared with a deficit of $11.6 billion during the same period last year. “This monthly deficit is lowest after 25 months, and lower than expectations,” said Mohammad Sohail, CEO of Topline Securities. The weaker currency has made imports more expensive, effectively slashing them. Reporting by Ariba Shahid in Karachi, Editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

[1/5] Police officers stand in the aftermath of an attack on a police station in Karachi, Pakistan February 17, 2023. REUTERS/Akhtar SoomroKARACHI, Pakistan, Feb 17 (Reuters) - Islamists stormed a police station in the southern Pakistani city of Karachi on Friday, killing two people in a hail of gunfire and a series of loud explosions before they themselves were killed, officials said. Security forces retook the building after several hours and killed three militants, a government spokesman said. A huge explosion was heard inside the station after a series of blasts when it was first attacked. The Pakistani Taliban, or Tehreek-e-Taliban Pakistan (TTP), took responsibility for the attack in a message sent by their spokesman to journalists.

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