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ISLAMABAD: Dr. Ahmad Javed Qazi, the home secretary of Pakistan’s Punjab, met Chinese Consul General Zhao Shiren on Wednesday to discuss security arrangements for Chinese nationals in the eastern province, the home department said in a statement.

The move follows Pakistani Prime Minister Shehbaz Sharif’s announcement last week to enhance security measures for Chinese nationals across Pakistan, aiming to boost bilateral engagement under the second phase of the China-Pakistan Economic Corridor (CPEC).

Beijing has been frustrated by a string of attacks on Chinese nationals in Pakistan since last year. These attacks have mostly been carried out by separatist Baloch militant groups, who accuse Pakistan and China of depriving locals in Balochistan of a share in the province’s mineral resources. Beijing has invested in the province with a key port and has mining interests there as well. Both Islamabad and Pakistan deny the allegations.

“The meeting focused on the law and order situation in Punjab and the security arrangements for Chinese nationals,” the provincial home department said in a statement issued after the Shiren-Qazi meeting.

One of the attacks included a bombing at the Karachi airport last October that killed two Chinese engineers returning to work at a power plant. Beijing has called on Islamabad to bolster security for its nationals in Pakistan in recent months.

Qazi assured Shiren that ensuring the safety of Chinese tourists and officials working on CPEC projects was a top priority, the home department said.

“We are committed to the security and facilitation of all Chinese nationals residing in Punjab,” he added. “The capacity of the Special Protection Unit is being enhanced to further strengthen security for Chinese citizens.”

Pakistan announced forming the special police unit last year to protect foreigners, particularly Chinese nationals, living in the country amid increasing attacks on Chinese citizens.

Qazi highlighted that foolproof security arrangements were in place across all industrial zones across the province. He said the federal government’s guidelines regarding the movement of Chinese nationals should be followed strictly.

“Our offices are always open to Chinese citizens and government representatives,” Qazi said.

Beijing has been pressing Pakistan in recent months to allow Chinese security personnel to protect the thousands of its citizens working there amid frustration over the attacks.

Thousands of Chinese officials live and work in Pakistan, where Beijing has invested in the multi-billion-dollar CPEC project. The CPEC is a network of roads, railways, and energy projects designed to link China’s Xinjiang province with Pakistan’s Gwadar port on the Arabian Sea.

KARACHI: Pakistan’s central bank left its key interest rate unchanged at 11% on Wednesday, saying the inflation outlook had worsened a little due to energy price fluctuations, surprising analysts who had expected another cut.

In a Reuters poll this week, all 15 analysts said they expected the SBP to ease, with nine forecasting a 50-basis-points cut, four predicting a deeper 100-basis-points reduction and two projecting a smaller 25-basis-points cut.

The decision came as Pakistan pushes reforms under a $7 billion IMF program and a contractionary budget to curb deficits.

In its Economic Outlook Update on Tuesday, the IMF cut its growth forecast for the fiscal year ending June 2026 to 3.6%, well below the government’s 4.2% target.

“The Monetary Policy Committee (MPC) ... noted that the inflation outlook has somewhat worsened in the wake of higher than anticipated adjustment in energy prices, especially gas tariffs,” the State Bank of Pakistan (SBP) said in a statement.

The panel also noted that the trade deficit was expected to widen further in the fiscal year ending June 2026 amid a pickup in economic activity and a slowdown in global trade.

“Given this macroeconomic outlook and the emerging risks, the MPC considered today’s decision as necessary to ensure price stability,” it said.

The SBP had held rates in June after a 100-basis-points cut in May that resumed easing following a March pause. Since June 2024, it has lowered its policy rate by 1,100 basis points from a record 22% as price pressures receded.

Headline inflation slowed to 3.2 % in June and is projected at 3.5%–4.5% in July, within the SBP’s 5.5%–7.5% target range for the fiscal year ending June 2026.

The government says the economy has stabilized, but analysts warn growth remains fragile and global commodity price swings could still add pressure on prices and external balances.