KARACHI: Pakistan and China are in the process of finalizing the details of a $6 billion bailout package which Islamabad is seeking to stabilize its external balance of payment situation, officials said on Saturday.
During Prime Minister Imran Khan’s recent visit to China, Beijing had assured Pakistan of its support to uplift the country’s economy and “firmly move forward” on various infrastructure projects.
A Pakistani delegation — comprising the State Bank of Pakistan’s (SBP) governor and secretaries of finance, trade and planning — is in Beijing to finalize the details of the program, which is aimed at enhancing exports, too.
“The details of the outcome will be shared once the delegation returns home,” Noor Ahmed, spokesman for Pakistan’s Minister of Finance, told Arab News on Saturday without divulging any other details.
However, Dr. Farrukh Saleem, spokesman on Economy and Energy, said that China in principle has approved the aid package for Pakistan. “Now three things are under discussion. First, the framework of this aid package; so, the magnitude of the aid package and thirdly the sources of the aid package,” Dr. Saleem told Arab News on Saturday.
“China does not want publicity of its activities as it is against its nature of working,” he said, adding that during the past three fiscal years, “China has provided around $6.5 billion” through the Bank of China to the SBP, but “only few people know about it”.
Meanwhile, it is pertinent to note that during PM Khan’s visit, the Chinese authorities offered $1 billion market access to double Islamabad’s exports to $2.75 billion.
“Pakistan is looking at ways to increase exports to China in order to avail market access,” Abdul Razak Dawood, Adviser for Commerce, Textile, Industry & Production, had told Arab News in a recent interview.
Earlier, this week, Pakistan’s Finance Minister, Asad Umar announced that Pakistan has emerged out of its balance-of-payments crisis, after securing $6 billion from Saudi Arabia and an equal amount from China, adding that Islamabad needed $12 billion to fill its external financing gap.
Pakistan is simultaneously negotiating with China and the International Monetary Fund (IMF) for a bailout program. “Pakistan will receive some $5-6 billion from the IMF,” Umar was quoted as saying by the local media.
Meanwhile, overseas workers’ remittances — another integral source of support for the country’s economy — showed encouraging growth as Pakistan received $7.4 billion in the first four months of the fiscal year 2018, compared to $6.4 billion received during the same period last year (2018).
“The prospects to get Chinese support are high and it will substantially ease the pressure on the balance of payment situation,” Dr. Ikram Ul Haq, an expert on economic and legal matters, told Arab News, adding that the move would “bring in no positive results as the entire amount is going to bridge the gap and in essence would be a fresh liability replacing the old one”.
Muzzamil Aslam, a senior economist and CEO of EFG-Hermes Pakistan, believes that China and the IMF are two opposing sources which Pakistan is dealing with at the moment. “If we seek Chinese support they will demand to not share the details of the CPEC with the IMF and if we rely heavily on the IMF, they will ask for sharing information of China,” Aslam said.
He added that Pakistan will continue to seek Chinese support “to avoid harsh conditionalities of the IMF and to run the economic affairs of its country as per its own will”.
China, the second biggest global economy, shares minimal trade ties with Pakistan at 0.8 percent, with 0.1 percent dedicated to exports and imports respectively.
The existing Sino-Pak trade ties are largely tilted toward Beijing — Pakistan exported $1.75 billion worth of goods to China, while Beijing’s exports stood at $11.47 during the fiscal year 2018, according to the SBP.
China, Pakistan etch out details for $6bn bailout plan
China, Pakistan etch out details for $6bn bailout plan
- Islamabad says Beijing has approved aid package in principle
- Crucial details of program still under discussion, top official says
Sri Lankan artist immortalizes Pakistan’s Olympic hero Arshad Nadeem with special painting
- Arshad Nadeem won Pakistan its first Olympic gold medal since 1992 in August with record-breaking javelin throw
- Titled “The Throw,” Mueen Saheed’s painting features an abstract portrayal of Nadeem and his mother
ISLAMABAD: Sri Lankan artist Mueen Saheed has paid tribute to Pakistani Olympian Arshad Nadeem by dedicating a “special painting” to the sportsman, state-run media recently reported, as a mark of respect for bagging the gold medal for his country earlier this year.
Nadeem made history at the Paris Olympics in August by setting a new record for the longest javelin throw in the global competition, winning Pakistan its first gold medal since 1992 with a record-breaking 92.97m javelin throw.
Saheed last week concluded an art cultural tour in Pakistan where he showcased his artwork at three major exhibitions in Lahore and Islamabad.
“Renowned Sri Lankan artist, Mueen Saheed made a memorable addition to his tour of Pakistan by presenting a special painting dedicated to Arshad Nadeem, Pakistan’s celebrated Olympic gold medalist, to the Pakistan National Council of the Arts (PNCA),” the state-run Associated Press of Pakistan (APP) reported on Sunday.
The painting, now a part of the PNCA’s prestigious permanent collection, pays homage to Nadeem’s remarkable achievements and his role in uniting fans across borders.
Titled “The Throw,” the painting features an abstract portrayal of Nadeem and his mother, veiled behind Saheed’s distinctive brushstrokes and use of small squares, the APP said.
The presentation ceremony at the PNCA in Islamabad, part of the artist’s “Passages of Light” exhibition, was attended by key figures in the arts and culture sector, including PNCA Director General Muhammad Ayoub Jamali and Information Minister Attaullah Tarar.
“Arshad Nadeem’s story is one of resilience and humility,” Saheed explained. “His victory at the Olympics and the moments of sportsmanship with his Indian counterpart, Neeraj Chopra, were powerful examples of unity in competition.”
Tarar praised Saheed’s gesture, noting the significance of honoring a national hero whose journey resonates beyond sports, inspiring audiences from Pakistan, India, and around the world, the state-run media said.
Belarus President Lukashenko to arrive in Pakistan today amid Islamabad protest
- Thousands of ex-PM Khan supporters expected to arrive in Pakistan’s capital for anti-government protest
- Pakistan, Belarus expected to sign several agreements during Aleksandr Lukashenko’s three-day visit to Pakistan
ISLAMABAD: Belarus President Aleksandr Lukashenko is scheduled to arrive in Pakistan on a three-day visit today, Monday, as thousands of supporters of former prime minister Imran Khan march toward the capital for an anti-government march.
Pakistan’s state media said last week that Lukashenko was expected to hold talks with Prime Minister Shehbaz Sharif on bilateral cooperation while several agreements would be signed between the two countries.
His visit comes at a time when thousands of supporters of jailed ex-PM Khan’s Pakistan Tehreek-e-Insaf (PTI) party are headed toward Islamabad for a protest “long march.” Khan’s party is demanding his release from prison, independence of the judiciary and protesting against alleged rigging in the February national elections.
“President of the Republic of Belarus Aleksandr Lukashenko will undertake three-day visit to Pakistan from today,” state broadcaster Radio Pakistan reported.
As a 68-member delegation from Belarus arrived in Pakistan’s capital on Sunday ahead of Lukashenko’s visit, Pakistan’s government described the PTI’s protest as a “deliberate conspiracy” against the country’s “honor,” vowing stern action against any persons found violating the law.
The government last week took measures to enhance security in Islamabad, sealing off key highways and motorways leading to the capital from surrounding areas with shipping containers.
Security in the capital has also been beefed up with the deployment of paramilitary forces and police while the government has suspended Internet services in areas deemed sensitive for security.
PTI CARAVAN
Meanwhile, the PTI convoy led by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur left Peshawar around 1:30 p.m. on Sunday and reached Swabi in the evening, where it was joined by protesters from across the province.
The caravan then proceeded to Ghazi Barotha near Punjab, where it expects resistance from federal authorities.
Hajji Fazal Elahi, a PTI provincial lawmaker, told Arab News the party workers were determined to reach D-Chowk, the protest venue in Islamabad.
“There are hurdles as the government has placed barriers in different places. We will try our best to remove them, but if we don’t succeed, we’ll spend the night here,” he said, referring to Ghazi Barotha.
“We will go to D-Chowk and cross all the barriers, even if it takes a day or two,” he added.
Pakistan says protests cost $684 million daily as Imran Khan’s supporters march on Islamabad
- Finance Ministry’s estimates exclude losses from IT, telecom sectors and provincial economies
- Imran Khan has called for protests demanding his release, with demonstrations also held abroad
ISLAMABAD: Pakistan’s Ministry of Finance has prepared a report estimating economic losses of Rs190 billion ($684 million) per day due to political protests, Federal Finance Minister Muhammad Aurangzeb said on Sunday, as supporters of jailed former prime minister Imran Khan march toward Islamabad to demand his release.
The protest, led by Khan’s Pakistan Tehreek-e-Insaf (PTI) party, has effectively cut off the federal capital from other cities, with authorities using shipping containers to seal all entry and exit points and announcing the closure of all educational institutions in Islamabad.
The disruption has also impacted small businesses, with slow Internet and telecom services further compounding the economic losses.
“Protests result in a daily loss of Rs190 billion,” the finance minister said in a statement circulated by his office, warning of repercussions for the national economy.
According to the ministry’s report, the GDP suffers a daily loss of Rs144 billion, accounting for the largest share of the economic impact. Additionally, a decline in exports results in a daily loss of Rs26 billion, while disruptions in foreign direct investment contribute Rs3 billion to the daily losses.
Losses in the IT and telecom sectors are significant but separate from these figures.
“The federal government’s daily loss is Rs190 billion, while provincial losses are even higher,” Aurangzeb noted, without providing detailed provincial breakdowns.
Khan, who has been incarcerated for over a year on charges he claims are politically motivated, has urged his followers to rally both in Pakistan and abroad.
PTI supporters in countries such as the United Kingdom, France, Sweden, Spain and Japan have also organized demonstrations, calling for the former prime minister’s release.
As tensions persist, the government remains firm in its resolve to maintain public order, with Finance Minister Aurangzeb stressing that the ongoing unrest is severely undermining the country’s economic recovery efforts.
Pakistan urges climate justice at COP29, highlights gaps in global commitments
- It highlights mismatch between developed nations’ pledges and developing countries’ needs
- Romina Alam says Pakistan is forced into debt to manage the fallout of climate disasters
ISLAMABAD: Pakistan’s top climate change official on Sunday voiced concern over the widening gap between global climate commitments and the needs of vulnerable nations as COP29 ended in Azerbaijan.
Addressing the closing plenary, Romina Khurshid Alam, Prime Minister’s Coordinator on Climate Change, emphasized Pakistan’s acute vulnerability to phenomenon, citing devastating floods, glacial melt, extreme heatwaves and droughts that have affected millions and strained the country’s resources.
“Climate justice is not charity; it is a moral obligation,” she said during her statement, criticizing the mismatch between developed nations’ pledges and the requirements of developing countries to implement their climate plans.
The Pakistani official welcomed the adoption of the Baku Climate Unity Pact, though she expressed “mixed feelings” about the outcomes.
“We note critical gaps in the decisions adopted here,” she said. “Global solidarity is important, but the goals set by developed countries fall short of addressing the needs of developing nations to implement their NDCs [Nationally Determined Contributions] and National Adaptation Plans.”
Alam highlighted the inequity in the international climate finance system, pointing out that countries like Pakistan are being forced into debt to manage the fallout of climate disasters.
“The climate crisis is turning into a debt crisis because the means of implementation are not clear,” she added.
The Pakistani official urged all parties to return to the negotiating table with renewed determination ahead of COP30.
“Multilateralism remains the cornerstone of Pakistan’s climate diplomacy, and we hope for greater equity and commitment in addressing outstanding critical issues,” she added.
Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. Apart from floods, droughts and heatwaves, the country’s eastern cities in Punjab have also witnessed unprecedented smog, taking the AQI level as high as 2,000.
Imran Khan’s party decries ‘crackdown’ as caravan nears Punjab amid government’s protest ban
- Government says it will not allow anyone to disrupt public order amid Belarusian delegation visit to Pakistan
- PTI caravan from KP expect resistance from federal authorities near Punjab, plans to camp overnight if needed
ISLAMABAD/GHAZI BAROTHA: Sporadic clashes erupted near Islamabad on Sunday as jailed ex-premier Imran Khan’s supporters from nearby Rawalpindi tried to enter the capital in response to a protest call, while their party leaders criticized what they described as a government “crackdown” to block the demonstration.
Khan’s Pakistan Tehreek-e-Insaf (PTI) has launched a “long march” to Islamabad, seeking the release of its founding leader after more than a year of his incarceration on charges it claims are politically motivated.
The party is also protesting alleged rigging in February’s general elections and raising concerns about judicial independence, which it says has been undermined by recent constitutional amendments, a claim the government denies.
Speaking to Arab News, Sayed Zulfikar Bukhari, a senior PTI leader and close aide to Khan, expressed dismay at the government’s response, saying his party only wanted to hold a peaceful protest.
“There is a heavy crackdown in Rawalpindi, as they [the law enforcement officials] have shot rubber bullets, teargas and also picked up people,” he said.
“We just want to do a peaceful protest,” he added. “We will continue [the demonstration] for days to come because we have the right to peaceful assembly and protest.”
Arab News reached out to police officials for comment but did not receive a response.
SECURITY MEASURES
Interior Minister Mohsin Naqvi toured Islamabad, Rawalpindi and Attock by air on Sunday to review security arrangements, expressing satisfaction with the measures and reiterating that the government would take every step to maintain law and order in Islamabad.
“The government has made every possible effort to protect the lives and property of citizens,” Naqvi said, warning that “troublemakers will be dealt with strictly according to the law.”
He added that police, paramilitary Frontier Corps and Rangers were performing their duties with vigilance.
The government has described PTI’s protest as a “deliberate conspiracy” against the country’s “honor,” citing its timing as a 68-member Belarusian delegation arrived in Islamabad for bilateral economic talks.
President Aleksandr Lukashenko is scheduled to arrive in the federal capital on Monday, with officials characterizing the PTI march as an attempt to sabotage Pakistan’s economic recovery.
Naqvi underscored earlier in the day that no one would be allowed to disrupt public order in the federal capital during the visit.
PTI CARAVAN
Meanwhile, the PTI convoy led by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur left Peshawar around 1:30 p.m. and reached Swabi in the evening, where it was joined by protesters from across the province.
The caravan then proceeded to Ghazi Barotha near Punjab, where it expects resistance from federal authorities.
Hajji Fazal Elahi, a PTI provincial lawmaker, told Arab News the party workers were determined to reach D-Chowk, the protest venue in Islamabad.
“There are hurdles as the government has placed barriers in different places. We will try our best to remove them, but if we don’t succeed, we’ll spend the night here,” he said, referring to Ghazi Barotha.
“We will go to D-Chowk and cross all the barriers, even if it takes a day or two,” he added.
Elahi also acknowledged challenges due to “insufficient machinery” for clearing blockades, adding that the group was prepared to camp at their current location if necessary.
PTI leaders remain defiant, with Gandapur vowing to reach the federal capital “at any cost.”
The party has hinted at an indefinite sit-in in Islamabad, pledging not to return until their demands are met by the government.
