KARACHI: International Monetary Fund IMF on Tuesday said with the achievements of all the performance criteria set for the first quarter the fund’s bailout program now moves to the structural reforms to get the country out of boom and bust cycle.
“We see that the authorities remain strongly committed to all the objectives of the program. We are now at the stage in the program where we move to the area of structural reforms. These are really important to build an institutional framework for the country so that there is no repetition of the boom bust cycles of the past,” Ramirez Rigo, Mission Chief for Pakistan at International Monetary Fund, said in a conference call.
The IMF mission chief identified the three areas for continued progress that Pakistan needs to focus including the quality of the fiscal adjustment that will require continued work on the tax revenue side, energy sector reforms for more automaticity capacity implementation by legislation for National Electric Power Regulatory Authority (NEPRA), and the independence of central bank.
The fund on Monday released report of the first review of the bailout program under which it agreed to extend $6 billion to Pakistan. The IMF has documented progressed made by the authorities and revised targets including the revenue collection target for current fiscal year.
Islamabad had targeted Rs 5.5 trillion tax collection for the current fiscal year FY20 through Federal Board of Revenue FBR but the fund projects agency’s tax collection would be Rs 5.238 trillion, showing a reduction of Rs 265 billion.
The report highlights that the country has met around 6 performance criteria while two are continuous and the Islamabad has missed 5 indicative targets that include cumulative floor on targeted cash transfers spending Benazir Income Support Program (BISP) as only Rs 5 billion were released against target of Rs 45 billion.
Real GDP growth is projected at 2.4% in FY 2020, but net exports are now expected to provide a larger contribution to growth mainly due to greater import compression. Growth is projected to strengthen to around 3% in FY 2021, and 4.5–5% over the medium-term.
Average CPI inflation is projected to decelerate slightly to 11.8 percent in FY 2020 as administrative and energy tariff adjustments are expected to offset the effects from weak domestic demand.
The Fund views that the Pakistan has made progress on Anti-Money Laundering and Combating the Financing of Terrorism AML/CFT deficiencies, although much remains to be done. With assistance from capacity development providers (including the IMF), the authorities are committed to completing the actions in the structural benchmark by end-June 2020.
Analysts say the funds appraisal is positive for Pakistan though some targets were missed. “We believe overall IMF’s staff appraisal is positive, though some indicative targets were missed. In fact, on some accounts (like Net international reserves (NIR), Net Domestic Assets (NDA),budget deficit), the authorities have achieved over performance,” Muhammad Sohail, senior financial analysts and CEO of Topline Securities, said.
Economists say the fund has identified the important area where if the government fails to focus the situation may lead to agitation. “The IMF has reported that the job creation is need which has been hampered by the slowing growth. The fund has expressed its concerns that it could lead to agitation as you already see due to inflation. The solution they have provided is that they have suggested to increase the allocation for development spending to create more jobs,” Dr. Vaqar Ahmed, Joint Executive Director of Sustainable Development Policy Institute (SDPI), told Arab News.
The IMF will hold the next review of the bailout program from March 6, 2020 for the disbursement of another $452.4 million tranche.
IMF says bailout program to get Pakistan out of boom and bust cycle
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IMF says bailout program to get Pakistan out of boom and bust cycle
- Pakistan met 6 performance criteria, missed 5 indicative targets — IMF report
- Slow growth rate may spark agitation in the country, analysts
At UN, Pakistan calls for concessional financing for transition to clean energy
- Fossil fuels are the largest contributor to climate change, accounting for 75 percent of the world’s greenhouse gas emissions
- Pakistan is among the countries most affected by climate change, with less than 1 percent contribution to global gas emissions
ISLAMABAD: Pakistan has called for supportive global policies to enable cash-strapped developing countries to navigate energy transition at an event Islamabad co-sponsored to commemorate the ‘International Day of Clean Energy’ at the United Nations (UN) headquarters in New York, Pakistani state media reported on Sunday.
The International Day of Clean Energy, observed on January 26 each year, is a UN-designated day to raise awareness and encourage action toward a transition to clean energy sources for the benefit of people and the planet.
The event at the UN headquarters was organized by the “Group of Friends of Energy,” an informal coalition of member states that actively collaborate and advocate for policies and initiatives focused on promoting sustainable energy access and development on a global scale.
“Developing countries with limited fiscal space are unable to invest in costly energy projects without enhanced access to finance,” Ambassador Usman Jadoon, Pakistan’s deputy permanent representative to the UN, told delegates this week.
“On this International Day of Clean Energy, we must commit to taking the necessary actions, at both national and international level, to achieve our global energy transition goals.”
Analysts say increasing climate threats have accelerated the clean energy policies and big tickets investments that are needed to transition to renewable energy, especially wind and solar energy, around the world.
Fossil fuels are the largest contributor to climate change, accounting for 75 percent of the world’s greenhouse gas emissions, according to the United Nations. The world must slash greenhouse emissions 45 percent by 2030 to cap global warming at 1.5 degrees Celsius above late-19th-century levels. Warming beyond that threshold, scientists warn, could push Earth toward an unlivable hothouse state.
Pakistan is among the countries most affected by climate change, while its contribution to global greenhouse gas emissions is less than 1 percent, according to Pakistani officials. The South Asian country suffered from deadly deluges in 2022, which were blamed on unprecedented monsoon rains and glacier melts due to climate change. The floods killed more than 1,700 Pakistan, affected 33 million and caused more than $30 million losses.
Ambassador Jadoon said developing countries were dedicated to making their contribution to the just energy transition, with Pakistan having committed to increasing the share of renewable energy in its energy mix to 60 percent by 2030.
“We plan on adding an additional 13,000MW [megawatts] of hydro-power capacity by 2030,” he said.
However, Pakistan’s energy transition goals were estimated to cost over $100 billion, the Pakistani envoy said, pointing out that capping global warming at 1.5 degrees Celsius would require $150 trillion investments globally in transition technologies and infrastructure by 2050.
“Undoubtedly, partnerships are essential to aid developing countries in overcoming these obstacles,” he added.
One killed, 15 injured in southwestern Pakistan as IED blast targets Punjab-bound bus
- Pakistan army soldiers among 15 injured in blast, says paramilitary force Levies official
- No group has claimed responsibility for attack but suspicion likely to fall on separatist BLA
QUETTA: One person was killed while 15 others, including army soldiers, were injured in southwestern Pakistan on Sunday when a passenger bus headed toward Pakistan’s Punjab province was targeted by an improvised explosive device (IED), an official of the paramilitary Levies force said.
The blast occurred in Khori, a small town located at a distance of 40 kilometers from Khuzdar city in southwestern Balochistan province, Ali Nawaz, a Levies official in Khori, told Arab News.
He said the bus carrying 30 passengers was headed to the eastern city of Rawalpindi from Khuzdar when it was targeted by an IED blast fitted in a vehicle parked on the M-8 highway at 9:30 am.
“One passenger was killed on the spot while 15 were injured,” Nawaz told Arab News. “Initial investigations by police have revealed that around 25 kilograms of explosive material were used in the attack, which destroyed one side of the passenger bus.”
Nawaz said the injured have been shifted to the District Headquarters (DHQ) hospital and the Combined Military Hospital (CMH) in Khuzdar.
“Soldiers of Pakistan’s armed forces are among the injured who were traveling in the bus,” he said, without specifying how many of the injured were soldiers.
No group has claimed responsibility for the blast. However, the separatist Balochistan Liberation Army (BLA) has claimed killing ethnic Punjabi laborers in the past.
BLA militants claimed responsibility for killing at least 23 residents of Punjab in Balochistan’s Musakhel district in August 2024. The victims were forced out of their vehicles by the militants, who shot them after checking their identity.
Simultaneous attacks were also launched on the same day that killed over 50 in one of the deadliest attacks in Balochistan in recent years.
Balochistan, a mineral-rich province that shares borders with Iran and Afghanistan, has faced an insurgency for decades which has intensified in recent years.
Baloch separatist groups and nationalist political leaders accuse the central government in Islamabad of exploiting the province’s natural resources such as gold and copper while neglecting the local population.
Successive Pakistani governments have denied the allegations, saying they have prioritized Balochistan’s development through investments in health, education and infrastructure projects.
Earlier this month the BLA targeted a convoy of paramilitary soldiers in the province’s Turbat city with a vehicle-borne bomb. Five Pakistani paramilitary soldiers were killed in the attack.
Imran Khan calls on overseas Pakistanis to halt remittances amid renewed political tensions
- In social media post, ex-PM Khan calls for nationwide protests on Feb. 8 anniversary of Pakistan election
- Pakistan’s government blames Khan and his party for breakdown of negotiations to ease political tensions
ISLAMABAD: Jailed former prime minister Imran Khan on Sunday reiterated his demand for overseas Pakistanis to boycott sending remittances to the country, amid renewed political tensions between his Pakistan Tehreek-e-Insaf (PTI) party and the government.
The development takes place as talks between the government and the PTI that began last month broke down this week. Talks were suspended after Khan’s party told the government it would not partake in the process if judicial commissions to investigate anti-government protests of May 9, 2023 and November 2024 are not formed.
On May 9, 2023, angry Khan supporters are accused of rampaging through military offices and installations while on Nov. 26, 2024, they gathered in Pakistan’s capital to demand Khan’s release. The government says four troops were killed in the November protests while the PTI says its supporters also died in clashes.
Pakistan’s Information Minister Ataullah Tarar this week criticized the PTI for ending talks “unilaterally,” saying the party took the decision in a hurry. The government’s negotiation committee says it will respond to the PTI’s demands formally on Jan. 28.
“Once again, I urge overseas Pakistanis to continue their boycott of foreign currency remittances,” a post on Khan’s X account read. “Sending money to this government strengthens the very hands that are tightening the noose around your necks.”
Foreign workers’ remittances from countries such as Saudi Arabia, United Arab Emirates, US, UK and others are important for cash-strapped Pakistan to shore up its foreign reserves and stabilize its fragile economy.
Khan also repeated his demand for supporters to mark Pakistan’s election anniversary on Feb. 8 as a “Black Day.” The PTI alleges that the results of the contentious election last year, marked by delayed vote results and suspension of Internet and mobile services countrywide, were manipulated by the caretaker government at the time and Pakistan’s election commission to keep it away from power. Both deny Khan’s allegations
“Prepare to observe a nationwide ‘Black Day’ on February 8th,” the post read. “People from Khyber Pakhtunkhwa and northern Punjab should gather in Swabi for protests, while others must hold demonstrations in their respective cities.”
Khan was ousted from power in 2022 after what is widely believed to be a falling out with the country’s powerful top generals. The army denies it interferes in politics.
He has been in prison since August 2023 and faces a slew of legal challenges that ruled him out of the Feb. 8 general elections and which he says are politically motivated to keep him and his party away from power.
Khan has either been acquitted or his sentences have been suspended in most cases. However, in the latest blow, Khan was handed a 14-year jail sentence in a land corruption case last week.
All cases against Khan have been tried inside prison, away from the public or media eye, on security grounds.
West Indies scent series-levelling win in second Pakistan Test
- The gutsy West Indies scored 244 in their second innings to set the hosts a daunting 254-run target on a spinning Multan Stadium pitch
- At stumps, Saud Shakeel was unbeaten on 13 and nightwatchman Kashif Ali on one, with West Indies needing only six more wickets for a draw
MULTAN: Kevin Sinclair led a West Indian spin trio to give the tourists a sniff of a series-levelling win in the second Test Sunday with Pakistan on the ropes at 76-4 after day two in Multan.
The gutsy West Indies scored 244 in their second innings to set the hosts a daunting 254-run target on a spinning Multan Stadium pitch.
At stumps, Saud Shakeel was unbeaten on 13 and nightwatchman Kashif Ali on one. The West Indies need only six more wickets to draw the series 1-1.
Pakistan need a demanding 178 runs for victory. They won the first Test by 127 runs, also in Multan.
Sinclair (2-41) opened the floodgates by trapping Pakistan skipper Shan Masood leg before for two and then had the prized wicket of Babar Azam caught for a dour 31.
Azam had added 43 with Kamran Ghulam, who was dropped twice, on two and six, but the lapses did not prove costly to the West Indies.
Gudakesh Motie had Muhammad Hurraira for two and Jomel Warrican dismissed Ghulam for 19.
The day saw 14 wickets fall, after 20 on day one.
In the morning West Indian skipper and opener Kraigg Brathwaite led the fight for the visitors with a gritty 52.
The last four wickets added an invaluable 99 runs before the tourists were dismissed for 244 in their second innings at tea.
Left-arm spinner Noman Ali finished with 4-80 — 10 wickets in the match — while partner Sajid Khan took 4-76, six in the match.
The West Indies were 129-5 at lunch when Noman dismissed Alick Athanaze for six, before the tourists put up a fight that could prove decisive.
Tevin Imlach scored 35 and Sinclair 28 to boost their team’s lead during a stubborn stand of 51 for the seventh wicket, before Sajid accounted for Sinclair and Motie for 18.
Pacer Kashif had Imlach but the last pair of Warrican and Kemar Roach took the total past 240, before Sajid had Warrican caught for 18.
Earlier, Brathwaite led the way with two sixes and four boundaries in his 31st Test half-century.
Noman broke a solid 50-run opening stand by dismissing Mikyle Louis for seven after the tourists started their second innings in the morning.
Brathwaite overturned two leg-before decisions against him before he was stumped by Mohammad Rizwan off Noman.
Debutant Amir Jangoo also batted well for his 30 with three boundaries, before Sajid had him caught in the slips by Salman Agha.
Kavem Hodge was stumped by Rizwan off Noman for 15 as the West Indies slumped from 92-1 to 129-5.
Pakistan Association Dubai hosts climate action event to promote sustainable solutions
- Pakistan is counted among world's most severely threatened countries due to climate change effects
- Event brings together climate activists, advocates and youth leaders to discuss climate challenges
ISLAMABAD: The Pakistan Association Dubai (PAD) this week organized a climate action event in the city to promote sustainable solutions and highlight the dangers of deteriorating weather patterns, the Pakistani embassy in the UAE said.
The event on Friday was a collaboration between community climate action platform Extreme Hangout Dubai, social enterprise Earth Warriors and the Pakistan Youth Forum.
It featured climate advocates and members of the Pakistani community in the UAE, and Pakistan’s Consul General in Dubai Hussain Muhammad.
“Pakistan remains committed to be part of the solution,” Muhammad was quoted as saying by the Pakistani embassy in UAE. “However, global solidarity, climate finance, and technology transfer are essential to tackling this crisis.”
The event featured entrepreneurial stalls showcasing innovative eco-friendly solutions, keynote speeches and panel discussions by experts, activists and youth leaders who engaged in insightful discussions on climate action strategies and the importance of collective efforts.
The event also included performances and artistic presentations highlighting the beauty of nature and the necessity of preserving it for future generations.
“The Consul General encouraged the Pakistani community in the UAE to act as global ambassadors for Pakistan’s climate challenges through storytelling, social media and community engagement to raise awareness and bring change,” the embassy’s statement said.
The South Asian country is counted among the most severely threatened countries in terms of climate–induced challenges, especially in the context of its dependency on climate-sensitive sectors such as agriculture, water, natural resources and the environment, and socio-economic issues such as poverty.
Unusually heavy monsoon rains and melting of glaciers in June 2022 triggered flash floods across the country which killed over 1,700 people and dealt damages to critical infrastructure across the country.
Pakistan estimates damages from the floods to be around $33 billion.
