Pakistan reaches 'agreement in principle' with IMF over bailout

Finance Minister Asad Umar visited Washington this week for meetings with the IMF, this is Asad Umar’s file photo (AFP)
Updated 16 April 2019
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Pakistan reaches 'agreement in principle' with IMF over bailout

  • Rescue package would be Pakistan's 13th IMF bailout programme since the late 1980s
  • Mission team will be visiting Islamabad before the end of April

ISLAMABAD: Pakistan has reached an "agreement in principle" with the International Monetary Fund (IMF) over a bailout programme and expects to formally secure a rescue package later this month, a Pakistani minister said on Monday.
The long-delayed rescue package would be Pakistan's 13th IMF bailout programme since the late 1980s and comes at a time of worsening economic outlook for the South Asian nation of 208 million people.
Earlier this month, Finance Minister Asad Umar visited Washington for meetings with the IMF, which on Monday called the talks "constructive discussions".
Muhammad Azhar, state minister for revenue, tweeted that an "agreement in principle has been reached on all outstanding issues with IMF" during Umar's trip.
"Technical details and formalities will now be finalised during the IMF's staff level visit to Pakistan later this month," Azhar added.
The IMF said on Monday its mission team will be visiting Islamabad before the end of April.
Pakistan's central bank last month lowered growth forecasts and raised interest rates at a time when inflation is at a five-year high. The rupee currency has also lost about 35 percent since December 2017.
The bailout has been delayed since last year as Pakistani officials have said they worry conditions attached to the proposed IMF loans could hurt economic growth.
Analysts have been expecting the package to be concluded this month but say the contours of any proposed assistance programme are unclear.
"There are questions if there will be any further devaluations, how much interest rates will be hiked, what taxation measures are expected of Pakistan, and will there be any further increase in electricity or gas prices?" said Saad Hashemy, Chief Economist for Pakistani brokerage house Topline Securities.
The government of Prime Minister Imran Khan, who took power in August, has obtained temporary relief from close allies such as China and Saudi Arabia with short-term loans worth more than $10 billion to buffer foreign currency reserves and ease pressures on the country's current account.
But analysts have called an IMF bailout inevitable, with Pakistan also facing an increasing fiscal crunch ahead of the annual budget spending review for the next financial year starting July 1.
Khan's government is facing increasing public anger over rising utility prices, many of which have been subsidized by successive cash-strapped governments.
Inflation was over 9.4 percent in March, its highest since November 2013, with strong increases in food and energy, the two most sensitive items for most consumers.
The central bank forecasts growth at 3.5 to 4 percent in the 12 months to end-June, well short of a government target of 6.2 percent. The IMF paints a gloomier picture, predicting Pakistani growth of 2.9 percent in 2019 and 2.8 percent the following year.


Pakistan’s cement exports jump 29 percent but domestic demand remains weak

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Pakistan’s cement exports jump 29 percent but domestic demand remains weak

  • Cement industry has struggled due to economic headwinds, high construction costs in Pakistan
  • APCMA has asked the government to announce industry-friendly measures in the upcoming budget

KARACHI: Pakistan’s cement exports rose nearly 29 percent to 7.4 million tons in the first ten months of the current fiscal year, but overall despatches remained flat due to sluggish domestic demand, industry data showed on Saturday.
Total cement despatches, domestic and exports combined, reached 37.336 million tons during the July 2024 to April 2025 period, just 0.32 percent lower than the same stretch last year, according to the All Pakistan Cement Manufacturers Association (APCMA).
Domestic sales, however, dropped 5.55 percent to 29.978 million tons, while exports surged 28.77 percent from 5.714 million tons to 7.359 million tons.
“A healthy rise in exports this year is a good omen,” an APCMA statement said. “However, the industry’s resurgence was limited due to low domestic demand, leaving about one third of the industry capacity idle.”
April 2025 data showed total cement despatches increased by 13.24 percent year-on-year to 3.342 million tons, driven by a 34.56 percent jump in exports and a modest 7.64 percent rise in local sales.
The APCMA statement urged the government to announce industry-friendly measures in the upcoming budget to boost domestic construction activity and enhance the global competitiveness of Pakistani cement.
Pakistan’s cement industry has struggled in recent years with subdued domestic consumption due to economic headwinds and high construction costs, forcing manufacturers to increasingly rely on exports.


India blocks Pakistani celebrities on social media

Updated 03 May 2025
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India blocks Pakistani celebrities on social media

  • Last month, India banned more than a dozen Pakistani YouTube channels for spreading ‘provocative’ content
  • Fawad Khan, Babar Azam, and Arshad Nadeem among celebrities whose accounts have been blocked

NEW DELHI: New Delhi widened measures against Islamabad on Saturday, blocking access to the social media accounts of Pakistani actors and cricketers, as well as extending trade blocks and stopping postal services.
India blames Pakistan of backing the deadliest attack in years on civilians in Indian-administered Kashmir on April 22, in which 26 men were killed.
Islamabad has rejected the charge, and both countries have since exchanged gunfire across their contested de facto border in Kashmir.
Pakistan’s military said it carried out a “training launch” of a surface-to-surface missile weapons system on Saturday, further heightening tensions.
On Saturday, India’s communications ministry issued a statement saying it had “decided to suspend the exchange of all categories of inbound mail and parcels from Pakistan through air and surface routes.”
The arch-rivals had already expelled each other’s citizens and closed the main border crossing, and barred aircraft from each other’s airspace.
Indian media on Saturday, citing a Directorate General of Shipping (DGS) order, said that Pakistani-flagged ships are barred from any Indian port — and Indian ships are banned from Pakistan.
The move, however, is seen as largely symbolic, as regular diplomatic flare-ups between the neighbors over decades have prevented close economic ties.
But cultural ties remain far stronger. The nations were only divided by the 1947 colonial creation at the violent end of British rule, partitioning the sub-continent into Hindu-majority India and Muslim-majority Pakistan.
On social media, India banned on April 28 more than a dozen Pakistani YouTube channels for allegedly spreading “provocative” content, including Pakistani news outlets.
On Saturday, further restrictions blocked access in India to the Instagram account of Pakistan’s ex-prime minister and cricket captain Imran Khan.
Bollywood movie regulars Fawad Khan and Atif Aslam were also off limits, as well as a wide range of cricketers — including star batters Babar Azam and Mohammad Rizwan and retired players Shahid Afridi and Wasim Akram.
Olympic gold medallist Arshad Nadeem’s Instagram account was also no longer accessible to Indian users, reflecting the broad scope of the clampdown beyond just cricket.
Users in India attempting to access these accounts are shown a message indicating that they are unavailable due to compliance with a legal request.


Pakistan envoy urges Trump administration to help resolve Kashmir amid tensions with India

Updated 38 min 1 sec ago
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Pakistan envoy urges Trump administration to help resolve Kashmir amid tensions with India

  • Pakistan envoy tells Fox News world must address root causes of India-Pakistan tensions
  • He says President Trump can build a peacemaker legacy by resolving the Kashmir dispute

ISLAMABAD: Pakistan’s envoy to the United States has urged Washington to move beyond crisis management and support efforts to resolve the Kashmir dispute, saying President Donald Trump came build a legacy by addressing the issue following last month’s deadly attack in the region.
The April 22 gun attack at a tourist hotspot in Indian-administered Kashmir left 26 people dead, prompting New Delhi to blame Pakistan, though Islamabad denied the charge forcefully.
India expelled Pakistani nationals and diplomats in the wake of the incident, closed a major border crossing, suspended a decades-old river water sharing treaty and imposed trade and shipping restrictions. Pakistan took reciprocal steps but also sought a neutral and impartial international investigation. Islamabad also warned that any military action by India would elicit a major response despite its desire to avoid escalation.
In an interview with Fox News on Friday, Ambassador Rizwan Saeed Sheikh said the risk of such crises would persist unless the global community moved beyond “band-aid solutions” and tackled the root cause of tensions.
“What we would urge the US leadership is to not only afford de-escalatory support in this situation but also to look at the broader issue of the disputed territory of Jammu and Kashmir,” he said.
India and Pakistan have fought several wars over the disputed Himalayan region, which both countries claim in full but rule in part.
“This is one nuclear flash point. There’s nothing flashier than this in terms of the impact on a large chunk of humanity that any misadventure, any miscalculation, any war here can cause. So, it would be an important part, it could be an important part of President Trump’s legacy to attend to this situation,” Sheikh added.
The Pakistani envoy noted that in previous crises, the international community had often intervened only to pull back before tensions were fully defused.
“This time ... it would be reasonable and perhaps even timely ... to perhaps not afford a band-aid solution, but to address the broader problem, the major disease that is there, and try and have a durable solution to the Jammu and Kashmir dispute,” he said.
Sheikh emphasized what he described as the “disproportionate responsibility” of the United States, as a preeminent global power, to help maintain and establish international peace and security.
He warned that the current crisis should not be allowed to fade without meaningful diplomatic solution.
“There is an opportunity in this situation, which we believe should not be squandered by the international community,” he added.


Over 8,800 Pakistani pilgrims in Madinah with 3,300 more expected today — state media

Updated 03 May 2025
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Over 8,800 Pakistani pilgrims in Madinah with 3,300 more expected today — state media

  • The first groups of Pakistani pilgrims are scheduled to depart for Makkah on May 7
  • Pilgrims going directly to Makkah will visit Madinah after performing Hajj rituals

ISLAMABAD: Pakistan’s Hajj mission in Saudi Arabia has received nearly 8,890 pilgrims in Madinah, state media reported on Saturday, adding that 3,300 more were expected to arrive by the end of the day.
Pakistan launched its Hajj flights on April 29. For the first 15 days of the operation, pilgrims will continue to arrive in Madinah. Afterward, incoming pilgrims will land in Jeddah and travel directly to Makkah.
“The Pakistan Hajj Mission has so far received approximately 8,890 intending Pakistani pilgrims in Madinah by Saturday, who arrived through 35 flights operated by various airlines from major cities of Pakistan to perform their religious obligation under the government scheme,” the Associated Press of Pakistan (APP) reported.
“As many as 12 flights, carrying 3,300 more pilgrims, are scheduled to arrive in the holy City Madinah on Saturday,” it added.
Pilgrims from across the world are converging in Saudi Arabia to perform Hajj, which begins on the 8th of Dhu Al-Hijjah, the final month of the Islamic calendar.
The first groups of Pakistani pilgrims are scheduled to depart for Makkah on May 7 after completing their eight-day stay in Madinah. Departures will follow the sequence of their arrival in the city, according to the religious affairs ministry.
Under the single-route system, all Pakistani pilgrims arriving in Madinah will proceed to Makkah for Hajj before returning to Pakistan via Jeddah.
Pilgrims flying directly to Makkah will later visit Madinah before departing for home.
Upon reaching Makkah, pilgrims will perform their first obligatory Umrah, according to the ministry.


India bans imports from Pakistan amid tension over tourist killings

Updated 03 May 2025
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India bans imports from Pakistan amid tension over tourist killings

  • New Delhi has issued a notification barring goods coming from or transiting through Pakistan
  • Pakistani-flagged ships and Indian-flagged ships are barred from entering each other’s ports

NEW DELHI: India said on Saturday it had banned the import of goods coming from or transiting via Pakistan and barred Pakistani ships as tensions rise between the nuclear-armed neighbors in the wake of a deadly attack on tourists in the disputed Kashmir region.
India’s Directorate General of Foreign Trade said in a notification that the ban would take effect immediately.
“This restriction is imposed in the interest of national security and public policy,” it said.
Suspected militants killed at least 26 people in last week’s attack on a mountain tourist destination in the Pahalgam area of the Kashmir valley.
The Muslim-majority Himalayan region is claimed by both India and Pakistan, and has been the focus of several wars, an insurgency and diplomatic standoffs.
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.
Pakistan’s retaliatory measures have included halting all border trade, closing its airspace to Indian carriers and expelling Indian diplomats.
It has also warned that any attempt to prevent the flow of river water promised under a decades-old treaty would be considered an act of war.
On Saturday, India said Pakistani-flagged ships would not be allowed to visit any Indian port, and Indian flagged-ships would not visit any ports in Pakistan.
“This order is issued to ensure safety of Indian assets, cargo and connected infrastructure, in public interest and for interest of Indian shipping,” the Directorate General of Shipping said in an statement.
Trade between the two nations has dwindled over the last few years.