KARACHI: Pakistan’s new government is expected to approach the International Monetary Fund (IMF) in the last week of August or early September for financial assistance. The country desperately needs to stabilize the economy, say officials.
The caretaker officials have already started work on the program agenda to be presented to the fund, Dr. Shamshad Akhtar, Pakistan’s caretaker finance minister recently confirmed, saying that they are “working on the agenda just to save the time of the ncoming government.”
The Pakistan Tehreek-e-Insaf (PTI), led by Imran Khan, gained a majority of votes in the election on July 25.
Khan is working on the formation of a new government and is expected to take the oath of office of prime minister on Aug. 11, before the country’s independence day which falls on Aug. 14.
“The final decision to approach IMF, including the required amount, will be taken soon after the formation of a new government,” Senator Mohsin Aziz, member of the Senate’s committee on finance, revenue and economic affairs, told Arab News.”Currently the party is contemplating other options as well to avoid the IMF program, including financial assistance from China and import of oil on credit or deferred payment from Saudi Arabia, but the situation is worst,” said Senator Aziz, who belongs to the PTI.
The country is expected to seek between $6 and $12 billion financial assistance from the IMF.
“The actual need of the country is $28 billion. However, from the IMF the country can avail up to $6 billion out of its $12 billion Special Drawing Rights (SDR) quota as the country has already consumed half of the quota by availing the program in 2013,” Dr. Hafeez Pasha, former finance minister and economist, told Arab News.
Pasha, however, said it would be difficult to get loan of up to $12 billion from the IMF.
“It may only be possible if the friendly countries, especially Washington, support Pakistan in this case. If Pakistan manages to get an IMF loan, other lenders such as the Asian Development Bank and the World Bank can also step forward to help as they need a letter of comfort from the IMF,” Pasha noted.
Pakistan is suffering from historical external account imbalances as its current account deficit swelled to $18 billion by the end of the fiscal year 2018.
The country’s dollar reserves have declined to $9 billion which is not even enough to cover its two months’ import requirements.
The country’s national currency, the Pak rupee, has been constantly under pressure due to the demand-supply gap.
However, after the election the sentiments have changed in favor of the PTI, which resulted in appreciation of the Pak rupee.
On Monday the Pak rupee in the interbank market traded at 124/126, which is an appreciation of 3 percent over Friday’s close of 127.90.
This follows gains witnessed in open market over the weekend where the dollar was quoted at 121/122 compared with the pre-election level of 131.80, an appreciation of 4 to 5 percent.
“The sentiments after election have changed the trends in the open market where we have abundant stocks of currency but no buyers,” Zafar Paracha, general secretary of Exchange Companies Association of Pakistan, told Arab News.
Paracha attributes currency appreciation to three factors: suspension of currency smuggling from Afghanistan and Iran due to the border closure, steps taken by State Bank of Pakistan against unregistered exchange companies, and the sentiment that arose after the election victory of PTI.
Pakistan’s stock market also reacted positively after the election, gaining 2,218 points as investors expressed satisfaction over political clarity.
“Recent news flow regarding a loan from China of $2 billion and possible assistance from Saudi Arabia is helping foreign exchange market sentiments,” said Muhammad Sohail, CEO of Topline Securities.
Senator Aziz said: “Positive sentiments prevail in the currency and stock market of the country but these are not going to stay for long as the country’s actual situation is worse.”
The country will have to seek financial assistance from the IMF, he added.
Pakistan to approach IMF soon after formation of new government, say officials
Pakistan to approach IMF soon after formation of new government, say officials
- Oil import on credit from Saudi Arabia, loan from China may ease external pressure, PTI senator Mohsin Aziz says
- Pakistan needs $28 billion, seeks up to $12 billion IMF bailout package, economist says
Pakistan envoy stresses continued engagement with Afghanistan to secure border with India
- Pakistan has been battling twin insurgencies in its western regions that border Afghanistan, while Islamabad’s tensions with Indian have also flared up recently
- Analysts’ term simultaneous pressure on both eastern and western borders a ‘serious challenge’ for Pakistan, warning it could dilute Islamabad’s focus on militancy
ISLAMABAD: Pakistan’s special representative to Afghanistan, Ambassador Muhammad Sadiq, said on Tuesday it was important for Islamabad to continue engagement with Afghanistan to better manage the country’s western border with India, amid friction between the neighbors over a surge in militancy in Pakistan.
Pakistan has witnessed a surge in militant violence since the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), called off their months-long ceasefire with the government in late 2022. Islamabad has frequently accused that militant groups use Afghan soil to launch cross-border attacks in Pakistan, an allegation the Afghan Taliban deny, maintaining there are no militant groups operating in their territory.
Late last month, Pakistan’s army said it had killed over 70 militants who were attempting to cross into Pakistan from Afghanistan. The development came amid Pakistan’s tensions with another neighbor to the east, India, following an attack in Indian-administered Kashmir that killed 26 tourists on April 22. Pakistani Information Minister Attaullah Tatar has said that New Delhi blamed the attack on Islamabad to divert Pakistan’s security focus from its western border.
“The important thing [for Pakistan] to do, particularly with Afghanistan, is to continuously remain engaged with them, to act when it’s required and act in a required way,” Sadiq said, addressing a regional conference in Islamabad on ‘Pathways to Peace and Prosperity in Turbulent Times.’
“The sooner we act on something, the sooner we engage with Afghanistan and the government and people of Afghanistan, the sooner we will get results and whenever we delay, we actually get into trouble, more and more trouble.”
Pakistan’s focus should be prevention of smuggling and promotion of trade with Afghanistan, according to the envoy. The “one-document regime” should regulate travel between the two countries and not “hinder people-to-people contact.”
“Anybody who’s going to Afghanistan or coming from Afghanistan should take a passport and get a visa, so that we can have a proper record of entry and exits,” he added.
Pakistan implemented the one-document regime with Afghanistan on January 1, 2023, which requires Afghan nationals to present a valid passport and visa for entry into Pakistan, ending the previous practice of cross-border movement showing local identity documents. The regime aims to regulate travel, enhance border security, and maintain a proper record of entry and exit.
Speaking at the event, Faisal Karim Kundi, governor of Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province that borders Afghanistan, said Islamabad seeks peace not for political gains, but to unlock the true potential of the region.
“Pakistan always believes in dialogues, but dialogues are not our weakness as we are ready for any adventure from India,” he said, adding that Pakistan’s defense was in “safe hands” which was portrayed in the past as well.
Defense analysts and security expert term simultaneous pressure on both eastern and western borders a “serious strategic challenge” for Pakistan, warning it could dilute the country’s focus in its fight against militancy.
Besides a surge in militancy in the northwest, Pakistan is also facing an intensifying separatist insurgency in the southwestern Balochistan province, where separatist militants have mounted their attacks on security forces, police and foreign nationals in recent months.
Dr. Qamar Cheema, a defense analyst, said if India engaged Pakistan through “kinetic means,” it could undermine Pakistan’s ability to effectively combat militancy.
“Any direct attack on Pakistan at the eastern border will definitely challenge [Pakistan’s] capabilities because it will stretch the armed forces,” he told Arab News on the sidelines of the conference.
Muhammad Ali, a security expert, agreed with Cheema.
“It seems that India seeks to divert Pakistan’s attention, resources and force posture to provide relief to TTP and BLA (Baloch Liberation Army) in KP and Balochistan,” he said, adding that Islamabad was “well aware of the challenges” in simultaneously facing rising militancy and an escalation on the Pakistan-India border.
Cheema said Pakistan did not want to be stretched further, which was why it was telling the international community that the transnational militant threat was more important.
“I think this is where the West needs to jump in so that Pakistan’s efforts against the war against terrorism and militant organizations do not get compromised,” he added.
Seven soldiers killed as separatists attack security vehicle in southwest Pakistan
- Pakistan army says IED attack launched in Kachhi District by BLA separatist group, accuses it of being an Indian “proxy”
- BLA carried out train hijacking in March in which 23 soldiers, three railway employees, five passengers were killed
KARACHI: The Pakistan army said on Tuesday seven soldiers were killed after militants attacked a security vehicle in the southwestern Balochistan province, where the military is fighting an intensifying separatist insurgency.
The army said the Baloch Liberation Army (BLA) has targeted the vehicle with an improvised explosive device in Mach in Kachhi District.
“Resultantly, seven brave sons of soil embraced shahadat [martyrdom],” a statement from the army said.
The military accused the BLA, the strongest of a number of insurgent groups long operating in Balochistan, of being a proxy of India.
“Nefarious designs of India and its proxies operating on Pakistani soil will be defeated by the valiant security forces, law enforcement agencies and the brave nation of Pakistan,” the military statement said.
The latest attack is the worst since March when the BLA carried out a train hijacking that resulted in the deaths of 23 soldiers, three railway employees and five passengers. At least 33 insurgents were also killed.
In what was previously a low-level insurgency, the militants have in recent months stepped up their activities using new tactics to inflict high death and injury tolls and target Pakistan’s military. It has also targeted Chinese interests.
The BLA seeks independence for Balochistan, a province located in Pakistan’s southwest and bordering Afghanistan to the north and Iran to the west.
It is the biggest of several ethnic insurgent groups that have battled the federal government for decades, saying it unfairly exploits Balochistan’s rich gas and mineral resources. Balochistan’s mountainous border region serves as a safe haven and training ground for the Baloch and other insurgents.
The BLA often targets infrastructure and security forces in Balochistan, but has also truck in other areas — most notably the southern port city of Karachi.
The insurgents target Pakistan’s army and Chinese interests, in particular the strategic port of Gwadar on the Arabian Sea, accusing Beijing of helping Islamabad to exploit the province.
Militants have killed Chinese citizens working in the region and attacked Beijing’s consulate in Karachi.
Balochistan is an important part of China’s $65 billion investment in the China Pakistan Economic Corridor, a wing of President Xi Jinping’s Belt and Road initiative. It is home to key mining projects, including Reko Diq, run by mining giant Barrick Gold (ABX.TO), and believed to be one of the world’s largest gold and copper mines. China also operates a gold and copper mine in the province.
The decades-old insurgency has continued to keep the province of some 15 million people unstable and created security concerns around Pakistan’s plans to access untapped resources.
It is Pakistan’s largest province by area, but smallest by population. Balochistan also has a long Arabian Sea coastline, not far from the Gulf’s Strait of Hormuz oil shipping lane.
Islamabad accuses India and Afghanistan of backing the militants to damage Pakistan’s relations with China, a charge both countries deny.
With inputs from Reuters
Pakistan accuses India of altering Chenab River flow as tensions rise
- Punjab irrigation minister says Pakistan has ‘witnessed changes in the river which are not natural’
- India recently lowered the sluice gates of the Baglihar dam to restrict water as a ‘punitive action’
LAHORE: Pakistan on Tuesday accused India of altering the flow of the Chenab River, one of three rivers placed under Pakistan’s control according to the now suspended Indus Waters Treaty.
This major river originates in India but was allocated to Pakistan under the 1960 Indus Waters Treaty, signed by the two nuclear powers.
India suspended the treaty following a deadly attack in Indian-administered Kashmir on April 22 that killed 26 people.
Islamabad warned that tampering with its rivers would be considered “an act of war.”
“We have witnessed changes in the river (Chenab) which are not natural at all,” Kazim Pirzada, irrigation minister for Punjab province, told AFP.
Punjab, bordering India and home to nearly half of Pakistan’s 240 million citizens, is the country’s agricultural heartland, and “the majority impact will be felt in areas which have fewer alternate water routes,” Pirzada warned.
“One day the river had normal inflow and the next day it was greatly reduced,” Pirzada added.
In Azad Kashmir, large quantities of water from India were reportedly released on April 26, according to the Jinnah Institute, a think tank led by a former Pakistani climate change minister.
“This is being done so that we don’t get to utilize the water,” Pirzada added.
The gates of the sluice spillways on the Baglihar dam in Indian-administered Kashmir which lies upstream of Pakistani Punjab “have been lowered to restrict water flow ... as a short-term punitive action,” a senior Indian official has told The Indian Express.
The Indus Waters Treaty permits India to use shared rivers for dams or irrigation but prohibits diverting watercourses or altering downstream volumes.
Indian authorities have not commented yet but Kushvinder Vohra, former head of India’s Central Water Commission, told The Times of India: “Since the treaty is on pause ... we may do flushing on any project without any obligation.”
Experts said the water cannot be stopped in the longer term, and that India can only regulate timings of when it releases flows.
However, the Jinnah Institute warned: “Even small changes in the timing of water releases can disrupt sowing calendars (and) reduce crop yields.”
Fear and uncertainty grip Azad Kashmir’s tourism sector as India-Pakistan tensions soar
- Guesthouses in Azad Kashmir experiencing “zero occupancy” due to safety concerns and restrictions, says hotel association
- Tensions between Delhi, Islamabad have surged since last month when militant attack killed 26 in Indian-administered Kashmir
PIR CHANASI, Muzaffarabad: Tensions between India and Pakistan have impacted tourism in Pakistan-administered Kashmir, with local business owners reporting a sharp decline in visitor arrivals on Sunday (May 4) due to safety concerns and restrictions on movement enforced by Pakistani authorities.
The latest crisis between the nuclear-armed neighbors was sparked by a deadly attack on tourists in the disputed Kashmir region last week that saw suspected militants kill at least 26 people. India has accused Pakistan of involvement in the attack, which Islamabad denies. Pakistan has said it has “credible intelligence” that India intends to launch military action.
The Pir Chinasi area in Muzaffarabad district, a popular hilltop tourist destination not far from the border with India-administered Kashmir, has seen a dramatic drop in footfall, leaving hotels empty and businesses struggling.
“Due to tensions between India and Pakistan, the roads have been closed here since the border is nearby,” Mohammad Saghir, a local restaurant owner, said. “Because of this, only a few tourists are coming here.”
However, Syed Yasir Ali, a tourist from Islamabad, said he believes the area is still “a safe place” and “very peaceful.”
Despite Ali’s positive reassurances, Abrar Ahmed Butt, a spokesperson for the All Kashmir Hotel Association, local hotels and guesthouses have experienced “zero occupancy” over the past eight days due to road closures and restrictions on movement being enforced by local authorities. With no end in sight for the current hostilities, Butt said he is “hoping for the best”, but very supportive of Pakistani authorities, even if it means preventing tourists from traveling to the Muzaffarabad area.
“National security is our top priority. As patriots, we love our country. When our country is secure, business and other aspects will follow suit. With faith, we trust things will improve,” said Butt.
Flight club: Pinching pigeons on the India-Pakistan border
- Pigeon fanciers on both sides of de facto border try to lure birds from each other
- Indian bird keepers say Pakistani pigeons are “bred better and fly longer durations”
JAMMU: In the skies above the bunkers where Indian and Pakistani soldiers trade gunfire, masters of an ancient sport beloved on both sides seek to snatch prized pigeons from the other.
Indian breeder Pyara Singh spends his days trying to lure Pakistani birds from across the Himalayan valley, and guard against rivals wooing his flock.
“We get pigeons from Pakistan — we catch them,” said 33-year-old Singh, watching as some of his feathered favorites twisted like jets overhead. “We also often lose our pigeons to them.”
An attack in Indian-administered Kashmir last month that New Delhi blames on Islamabad has sparked fears of renewed conflict between the nuclear-armed arch-rivals.
Pakistan insists it was not involved in the April 22 killings of 26 mainly Hindu men but Indian Prime Minister Narendra Modi has vowed to respond.
Like every night since April 26, India’s army said Monday that its troops had exchanged gunfire with Pakistani soldiers overnight across the de facto frontier in contested Kashmir.
Pigeon fanciers across the divide can’t meet face-to-face but share the same passion. Breeders say the top birds can be worth hundreds of dollars.
The skill of “kabutar-baazi” pigeon flying stretches back centuries, straddling a border created at the violent end of British imperial rule in 1947.
Singh, sitting with his 100-strong flock on the roof of his home in the village of Pangali, said it was “it is an old art.”
Keepers guide the flight of their flocks with whistles to provide a swirling spectacle.
Others race them, timing their flight home, or simply find peace in their graceful colorations and gentle coos.
But Indian keepers like Singh say their Pakistani counterparts rear “better and stronger” birds, explaining the buzz in catching their pigeons.
“They are a treasured possession,” said Aarav KHajjuria, from Sainth, another frontline Indian village.
He proudly showed his flock of 29 birds — three of which are from Pakistan.
“Our pigeons also fly there,” he said. “Two of my pigeons went.”
The teenager started breeding pigeons four years ago after watching another local fancier catch a bird.
“I was fascinated,” KHajjuria added. “I now spend time on the roof, both immediately before and after I return from school.”
But he is most proud of his Pakistani captives.
“I lured them after they’d strayed across,” he said, pointing to a nearby row of trees that mark the border.
Pakistani pigeons “are better because they’re bred better and fly longer durations in a competition,” KHajjuria said.
Keepers say capturing a pigeon is a skill, using water, grain and their own flock to lure the stray bird into the fold.
Once the bird lands, they immediately clip some feathers to stop them flying. While they grow back, the bird builds a bond with the new flock.
Fanciers fix leg rings with contact details to the animals.
“If we catch a bird that belongs to someone from the nearby villages, and we know them, we call them and hand it back,” Singh said, hand on his heart.
Birds from Pakistan are a different matter.
“Given the overall situation, and the risks involved, no one calls if the bird is from the other side,” he said.
“We don’t want any issues in the future, and allegations that as an Indian we were contacting Pakistanis.”
In fact, fanciers say that police are wary Pakistani pigeons might be carrying messages.
Indian police have in recent years “detained” several suspected of being enemy carrier pigeons, with some jailbirds accused of having Pakistani links, others Chinese.
“The Pakistani side often marks their pigeons with ink stamps, names, or rings — but beyond that, we haven’t seen anything suspicious yet,” Singh said.
“We inform the army if we come across such a pigeon, but so far, we haven’t caught any with a camera,” he joked.
Singh says he worries that the nightly gunfire will escalate.
“Ideally there shouldn’t be a war,” he said, but said the April 22 attack was “so wrong that it can’t be left unanswered.”
But he is confident nothing will stop his pigeons flying free.
“The border is not for the bird,” he said.
“No army or fence could stop them. How could you? Our pigeons go there, and theirs often cross into India.”
