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
UAE promotes Arab culture and cuisine at three-day festival in Karachi
- UAE consulate in Karachi kicks off celebrations ahead of nation’s National Day
- UAE is one of Pakistan’s largest trading partners and major source of remittances
KARACHI: The United Arab Emirates (UAE) Consul General in Karachi this week paid a visit to promote several stalls selling Arab cuisine and highlighting Arab culture at a three-day festival in Pakistan’s southern port city of Karachi, ahead of the Gulf nation’s National Day.
Sindh’s Culture Minister Syed Zulfiqar Ali Shah inaugurated the three-day Sindh Craft Festival on Friday which showcases traditional shawls, quilts, handlooms, and caps made by artists from all over Sindh at Karachi’s famous Port Grand entertainment hub.
UAE Consul General Dr. Bakheet Ateeq Al Rumaithi visited the festival on Friday to highlight Arab cuisine and review stalls promoting Arab culture at the festival. The UAE consulate is gearing up for celebrations to mark the nation’s 53rd National Day on Dec. 2.
“Various stalls have been set up at Port Grand keeping in mind Arab culture,” the UAE Consulate in Karachi said in a statement on Friday.
Al Rumaithi noted that women, children and the elderly were all taking part in the three-day cultural festival.
“We have a centuries-old relationship with Pakistan which is strengthening,” he observed.
The UAE is one of Pakistan’s largest trading partners and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE ministry of foreign affairs. The UAE-Pakistan trade volume rose to $7.9 billion in 2023, up 12 percent from 2022.
In May this year, Prime Minister Shehbaz Sharif said the Emirates had committed $10 billion to invest in promising economic sectors in Pakistan. The Pakistan Business Council (PBC), set up this September at the Sharjah Chamber of Commerce and Industry, also aims to increase Pakistan’s bilateral trade volume with the UAE to $40 billion in three years.
The UAE is also home to more than a million Pakistani expatriates and the second-largest source of remittances to Pakistan after Saudi Arabia.
T20 Blind Cricket World Cup kicks off in Pakistan today sans India’s participation
- Pakistan’s blind cricket team to take on South Africa in Lahore today
- India failed to secure clearance from government to travel to Pakistan
ISLAMABAD: The fourth T20 Blind Cricket World Cup will kick off today, Saturday, with Pakistan set to face South Africa in the eastern city of Lahore, state-run media reported days after India pulled out of the tournament.
The T20 Blind Cricket World Cup is scheduled to be held in Pakistan from Nov. 23-Dec. 3. As per Radio Pakistan, the tournament will feature blind cricket teams from Pakistan, Sri Lanka, Bangladesh, South Africa, Nepal and Afghanistan.
“In the Fourth edition of the Blind Cricket T20 World Cup, the opening match will be played between South Africa and Pakistan in Lahore today,” Radio Pakistan said.
India was also scheduled to take part in the tournament but the Cricket Association for the Blind in India (CABI) announced on Wednesday that its blind cricket team was withdrawing from the event, citing its failure to secure clearance from New Delhi to travel to Pakistan.
Political tensions between nuclear-armed neighbors India and Pakistan have restricted cultural exchanges and bilateral sports events between the two nations.
Both countries have fought three wars, two of them over the Muslim-majority Himalayan region of Kashmir, which they both claim in full but rule in part.
India withdrew its blind cricket team from the tournament with a little over three months left before the start of the 2025 Champions Trophy, which is also set to be held in Pakistan in February/March next year. The Board of Control for Cricket in India (BCCI) informed the International Cricket Council (ICC) this month that India will not travel to Pakistan for the tournament.
The ICC informed the PCB of the BCCI’s decision, following which Pakistan demanded an explanation from the cricket governing body. Pakistan has repeatedly insisted it will not agree for the tournament to be shifted to another country and has insisted India travel to Pakistan for the Champions Trophy.
Pakistan hosted last year’s Asia Cup but all of India’s games were played in Sri Lanka under a “hybrid” hosting model for the tournament. Several months later, Pakistan traveled to India for the 50-over World Cup.
Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest
- Jailed Imran Khan’s party has called for a “long march” to Islamabad on Nov. 24 to demand his release
- Motorway police say as per intelligence reports, protesters will be armed with sticks and slingshots
ISLAMABAD: Pakistan’s National Highways and Motorway Police (NHMP) has said that motorways across the country have been sealed from various areas to protect people’s lives ahead of a planned protest by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party to Islamabad on Sunday.
Pakistani authorities sealed off major arteries and roads with shipping containers leading to Islamabad from the surrounding Rawalpindi city and other areas on Friday ahead of the PTI’s “long march” scheduled for Sunday, Nov. 24.
In a notification released on Friday, the NHMP cited intelligence reports that protesters were planning to disrupt law and order in the capital, adding that they would be armed with sticks and slingshots.
“To prevent any untoward situation and to protect the lives of the people, motorways have been closed from various locations,” the NHMP said.
“The lives and property of the people will be guaranteed at all costs. Those who take the law into their hands will be dealt with strictly.”
Hours earlier, the NHMP had shared a notification on its social media platform X in which it had said that certain sections of the motorway were closed due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot.
As per local media reports, the Metro Bus service between the twin cities of Islamabad and Rawalpindi will be suspended on Nov. 24 while a ban on public gatherings has been imposed in Punjab from Nov. 23-25 ahead of the PTI’s march.
The PTI’s protest is primarily aimed at pressurizing the government to end Khan’s imprisonment which has lasted for over a year on what his party contends are politically motivated charges. The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this.
Earlier this week, Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and Frontier Corps troops in Islamabad to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.
Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release
- Thirteen Pakistanis were allegedly lured with job offers and trafficked to Myanmar from Thailand
- Families say captors torture them to lure others into cryptocurrency scams disguised as investments
ISLAMABAD: The families of 13 Pakistani nationals allegedly taken hostage by job scammers in Myanmar have appealed to authorities this week to secure their release, saying their loved ones are being confined to a compound, subjected to torture and forced to lure customers online for cryptocurrency scams.
The incident is part of a growing trend of Pakistanis falling victim to transnational criminal networks operating in Southeast Asia. In July this year, families of six other Pakistanis reported similar cases, claiming their relatives were held hostage by criminal gangs in Myanmar.
According to the families of the 13 individuals, including two women, they traveled to Thailand in March on valid work visas for a construction company, where they worked for two months. Subsequently, they were relocated to Laos and then Myanmar after their employer claimed to be moving operations.
The victims, who had completed short computer and IT courses, had prior experience in online jobs and were recruited by an agent in Rawalpindi, Pakistan.
“They are now being held hostage in Myanmar, subjected to physical torture and sleep deprivation and forced to lure customers from Europe, America and Canada into cryptocurrency scams,” Danish Qamar, a resident of Wah Cantt in Punjab province, whose brother and nephew are among the trapped, told Arab News.
“They are tortured and made to work over 18 hours daily to trap people into fake cryptocurrency investments,” he added. “We have written applications to Pakistan’s foreign office and the Overseas Pakistani Foundation, but there has been no meaningful response.”
The issue of Myanmar’s criminal zones has also raised global concern, with the United States Institute of Peace reporting in November 2022 that these areas have been facilitating human trafficking, slavery and international fraud on a large scale.
Such criminal activities exploit vulnerable individuals, lured by the promise of high-paying jobs abroad, only to be trapped in forced labor and fraudulent operations.
Earlier this year, Pakistan’s foreign office acknowledged reports of Pakistani citizens being detained by such networks in Myanmar, saying that its diplomatic mission in the Southeast Asian country was working with local authorities to secure their release. The foreign office also emphasized the need for a coordinated international response to combat human trafficking and transnational organized crime.
Asked about the 13 Pakistanis, foreign office spokesperson Mumtaz Zahra Baloch reiterated in a brief response to Arab News, “Our mission is in contact with the relevant authorities.”
However, she did not provide further details on the number of Pakistanis held or the measures being taken for their release.
According to the families, the 13 individuals have been trapped in Myanmar for about 20 days. Efforts to seek help from Pakistani missions in Myanmar and Thailand have proven futile, as officials reportedly cited limited access to the “lawless” border regions where the victims are being held.
“Officials say this is a lawless area, but the scammers have all the facilities like the Internet and electricity to run their operations,” said Maqsood Sadiq, the father of Suleman, 20, one of the hostages.
“We urge the government to act immediately to secure their release,” he added.
Pakistan PM forms committee to resolve tensions with key coalition ally
- Deputy PM Ishaq Dar, Defense Minister Khawaja Asif and Law Minister Azam Nazeer Tarar key members of committee
- PPP Chairman Bilawal Bhutto-Zardari last week criticized federal government for imposing Internet restrictions, other issues
ISLAMABAD: Prime Minister Shehbaz Sharif this week formed a committee to resolve tensions between the ruling Pakistan Muslim League-Nawaz (PML-N) party and the Pakistan Peoples Party (PPP), a key coalition ally of the government, state-run media reported.
PPP Chairman Bilawal Bhutto-Zardari publicly lashed out at the PML-N-led government last week, regretting its decision to block virtual private networks (VPNs) across the country. Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online.
Speaking to journalists at his party’s media cell, the PPP chairman had also criticized the government for approving a project to construct new canals on the Indus River, saying the decision had been taken without consulting his party.
“Prime Minister Shehbaz Sharif has constituted a committee to resolve issues between the Pakistan People’s Party and the Pakistan Muslim League-Nawaz and to foster cooperation on political and other matters,” state broadcaster Radio Pakistan reported on Friday.
Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Defense Minister Khawaja Muhammad Asif, Minister for Law Azam Nazeer Tarar and Minister for Economic Affairs Ahad Khan Cheema are members of the committee.
It also includes Minister for Kashmir Affairs and Gilgit-Baltistan Engineer Amir Muqam, Adviser to Prime Minister Rana Sanaullah, Speaker Punjab Assembly Malik Ahmad Khan, Senior Punjab Minister Marriyum Aurangzeb, PML-N leaders Khawaja Saad Rafique, Jaffar Khan Mandokhail, and Bashir Ahmed Memon, it added.
“The Prime Minister has assigned the committee the responsibility of having detailed consultation with the PPP to ensure political collaboration and resolve the issues,” Radio Pakistan said.
It added that the committee would hold talks with members nominated by the PPP to discuss the future course of action between the two parties.
The PPP is a major coalition ally of the coalition government which also voted Sharif into power after the contentious national election in February. While it is not part of the federal government, the PPP has its government in Pakistan’s southern Sindh province.
Sharif’s government has relied on the PPP’s crucial votes in parliament to pass the national budget and key constitutional amendments earlier this year.
