ISLAMABAD: The IMF said on Wednesday the COVID-19 pandemic had exacerbated existing debt vulnerabilities and led to a surge in financing needs across the Middle East, North Africa, Afghanistan, and Pakistan (MENAP).
The Fund uploaded four questions about debt and financing risks from COVID-19 in MENAP as well as responses on its website on Wednesday.
“Across the Middle East, North Africa, Afghanistan, and Pakistan (MENAP), countries responded to the COVID-19 pandemic with unprecedented scale and urgency,” the IMF said. “While this strong response helped save lives and cushion the economic blow, it also exacerbated existing debt vulnerabilities and led to a surge in financing needs.”
Many countries were already facing high debt before the pandemic, the Fund said. By the end of 2019, one-half of MENAP countries had government debt ratios above 70 percent of GDP and one in four countries faced public gross financing needs above 15 percent of GDP annually.
With limited access to external financing, governments and large state-owned enterprises turned to domestic banks. This expanded banks’ exposure to the public sector in several of MENAP’s emerging markets— ranging from over 20 percent of total banks’ assets in Iraq, Jordan, and Qatar, to above 45 percent in Algeria, Egypt, and Pakistan, and up to 60 percent in Lebanon. By contrast, banks in emerging markets elsewhere had a public sector exposure of 12 percent, the Fund added.
The collapse in economic activity led to losses in fiscal revenues, as countries increased government spending to mitigate the pandemic’s impact.
“Although one-third of MENAP countries tapped international financial markets— representing 25.5 percent of worldwide emerging market issuances— domestic financing played a critical role, particularly during the first phase of the crisis when international markets were disrupted,” the Fund said. “For instance, governments in Egypt, Jordan, Pakistan, and Tunisia covered more than 50 percent of their public gross financing needs with domestic bank financing in 2020.”
Responding to a question of what challenges MENAP’s emerging markets would face due to higher financing needs ahead, the Fund said “if domestic banks fund these unexpected needs, in addition to the expected financing needed during 2021–22, Egypt, Oman, Pakistan, and Tunisia would absorb an additional 10 to 23 percent of banks’ assets as government debt by the end of 2022. As a result, Egypt and Pakistan’s banks could reach levels of public sector exposure similar to those currently seen in Lebanon.”
COVID-19 worsened debt vulnerability in Middle East, North Africa, Afghanistan, Pakistan — IMF
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COVID-19 worsened debt vulnerability in Middle East, North Africa, Afghanistan, Pakistan — IMF
- MENAP countries responded to COVID-19 pandemic with unprecedented urgency but also had to face surge in financing needs
- Collapse in economic activity led to losses in fiscal revenues, as countries increased government spending to mitigate pandemic impact
Pakistan sisters set father on fire after rape — police
- Sisters took petrol from motorcycle and set fire to father while he slept on Jan. 1, say police
- Father had been raping eldest girl for a year, twice attempted to rape younger one, sisters allege
LAHORE: Two teenage sisters were arrested in Pakistan for killing their father by setting him on fire in revenge for rape, police said Wednesday.
The father was attacked in the Punjabi city of Gujranwala on January 1 and taken to hospital where he died on Tuesday.
“The girls said that they decided among themselves to find a ‘permanent solution’,” Rizwan Tariq, a senior police official in the city, told AFP.
They then took petrol from a motorcycle and set their father on fire as he slept, he added.
The pair, who are step-sisters, said their father had been raping the eldest girl for a year, and had twice attempted to rape the younger girl.
Their mothers — who are both married to the man — knew about the abuse but did not know of the revenge plan.
AFP has not named the man in order to protect the identities of the girls, one of whom is from a previous marriage.
One of the wives has also been arrested while the second is being questioned.
“We expect to present them before the court in a few days, as soon as we finish the investigation,” Tariq added.
Pakistan dispatches convoy of 40 aid trucks for violence-hit Kurram district
- Tribal and sectarian clashes have caused medicine, food and fuel shortages in Kurram district
- Armed men attacked aid convoy en route to Kurram district on Saturday, injuring five persons
PESHAWAR: The government in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province on Wednesday dispatched a convoy of 40 vehicles carrying relief items for the violence-hit Kurram district, an official confirmed, days after an aid convoy en route to the area came under attack.
Five people, including a top administration official, were injured when armed men shot at an aid convoy en route to Kurram district near Bagan, a tense locality in the district, on Saturday. The convoy was stalled as the provincial government vowed stern action against the culprits and their facilitators.
Kurram, a northwestern district of around 600,000 people in the KP province, has been rocked by tribal and sectarian clashes since Nov. 21 when gunmen attacked a convoy of Shia passengers, killing 52. Sporadic clashes since then have killed at least 136 people before the provincial government brokered a ceasefire between the warring tribes last week.
“A convoy of 40 vehicles carrying relief items for Kurram district was sent safely today,” Muhammad Ali Saif, a spokesperson for the KP government, said in a statement.
Saif said a convoy of 10 vehicles had reached Bagan while another comprising 30 vehicles will arrive at Parachinar, the district’s capital, and Upper Kurram “soon.”
“The convoy was sent after successful negotiations with local protesters till late last night,” the spokesperson said.
The violence in the district forced authorities to block a main road connecting Kurram’s main town of Parachinar with the provincial capital of Peshawar, causing medicine, food and fuel shortages in the area.
Saif said more aid convoys will be sent to the district after peace is established there.
The Saturday gun attack took place days after a grand jirga, or council of political and tribal elders formed by the KP provincial government, brokered a peace agreement between the warring Shia and Sunni tribes on Jan. 1, following weeks of efforts.
Under the peace agreement, both sides had agreed on the demolition of bunkers and the handover of heavy weapons to the authorities within two weeks.
It was also decided that land disputes in the volatile district will be settled on a priority basis with the cooperation of local tribes and the district administration.
The agreement said opening of banned outfits’ offices will be prohibited in the district, while social media accounts spreading hate will be discouraged via collective efforts backed by the government.
Pakistan to host over 150 dignitaries from Jan. 11-12 for girls’ education summit
- Ministers, ambassadors, scholars and academia from 44 Muslim and friendly countries to attend summit, says foreign office
- Summit aims to address challenges and opportunities in advancing girls’ education across Muslim communities worldwide
ISLAMABAD: Pakistan will host over 150 dignitaries from 44 Muslim and other friendly states for an international conference on girls’ education in Muslim communities from Jan. 11-12 in the federal capital, the foreign office said on Wednesday.
The global summit aims to address the challenges and opportunities in advancing girls’ education across Muslim communities worldwide. The foreign office said the conference also aims to foster dialogue, find actionable solutions to address challenges and will provide an ideal platform for high-level discussions and collaborations.
Pakistan’s education ministry will host the conference titled: “Girls’ Education in Muslim Communities: Challenges and Opportunities.”
“The event will bring together over 150 international dignitaries, including ministers, ambassadors, scholars and academia from 44 Muslim and friendly countries, representatives from international organizations including UNESCO, UNICEF, and the World Bank,” the foreign office said.
“Speakers and panelists will share transformative success stories, showcasing innovative approaches to advancing education equity.”
Pakistan’s Prime Minister Shehbaz Sharif will inaugurate the event and deliver the keynote address at the opening session. The foreign office said that the Pakistani premier will reaffirm the nation’s commitment to promoting girls’ education and gender equality.
It said the conference will conclude with a formal signing ceremony of the Islamabad Declaration, outlining the shared commitment of Muslim community to empower girls through education, paving way for inclusive and sustainable educational reforms, and a brighter future for generations to come.
Key Pakistan-China highway remains blocked for sixth day amid power outage protests
- Protesters demand government run thermal generators to minimize power outages lasting over 20 hours
- GB government spokesperson says power production slashed due to low flow of water in hydel stations
KHAPLU, Gilgit-Baltistan: A key highway connecting northern Pakistan and China via land remained closed for trade and traffic for the sixth consecutive day on Wednesday, as hundreds continue to stage sit-in protests against lengthy power outages, protesters and officials said.
The protest, which began last week, involves residents, political parties and civil society groups who vowed to continue their sit-in at the Karakorum Highway (KKH) in Gilgit-Baltistan (GB) that connects Pakistan to China, until their demands for reliable electricity were met.
The KKH, a vital trade and strategic route linking Pakistan with China, has been obstructed at Aliabad, the district headquarters of Hunza. The area plays a critical role in bilateral trade facilitated by the China-Pakistan Economic Corridor (CPEC), which has increased since an agreement to keep the Khunjerab Pass open year-round for economic exchanges.
“The sit-in is continuing in Hunza and the main KKH is still blocked for all kinds of traffic,” Zahoor Ilahi, a protester and member of a committee formed by protesters, told Arab News over the phone.
“More than 200 heavy vehicles, including containers, are stranded in Hunza due to the protest. Today shutter-down and wheel jam strikes are also being observed across Hunza,” he added.
Ilahi said no public transport vehicles were on the roads, only those vehicles were operating that were facilitating protesters. He said women and children have also joined the sit-in protest since Tuesday.
“All four rounds of negotiations with the government have failed,” he said. “And today a meeting is also underway between the protesters and the government.”
He said the protesters were demanding their basic right, electricity, lamenting that no other part of the country was facing power cuts of over 20 hours.
“There is no chance of ending the sit-in until our demands are met,” Ilahi warned.
Shreen Karim a local female journalist, said all activities in Hunza were paralyzed due to power outages.
“From businesses to health and education of students, all are suffering due to power cuts,” she told Arab News. “The Internet is also not properly working due to power cuts. We are also facing issues in sending reports to the newsroom.”
Power cuts, known locally as load shedding, are a chronic issue in Pakistan, with many areas facing significant disruptions. The harsh winters in GB exacerbate the problem, leaving residents without adequate heating or access to essential services.
Faizullah Faraq, the GB government’s spokesperson, admitted that the region has been facing prolonged power outages.
“The government is trying to engage the protesters to end the protest,” Faraq told Arab News. “Not only Hunza, other regions are also facing power outages. All of the power stations are hydel, and due to the low flow of water, the production of the electricity is slashed during the winter,” he added.
He said protesters were pressing the government to run thermal stations to minimize power outages. However, Faraq said the government could not run thermal generators as it was running on federal grants.
“And we don’t have a share in the NFC [National Finance Commission],” he said, referring to a series of economic programs that allocate revenues between the center and Pakistan’s provinces.
“And the government is not in a position to bear the fuel costs of thermal generators. That’s why the negotiations with the government did not reach any conclusion.”
Faraq further said that the chief minister had directed GB’s chief secretary to discuss the issue with the federal government.
“A meeting will be held in Islamabad to discuss the power outage issue,” the spokesperson said.
And if they release funds, the government will run the thermal generators, and the sit-in will be ended.”
PCB moves tri-series to Lahore and Karachi to indicate readiness for Champions Trophy
- Pakistan is scheduled to play tri-nation ODI series at home against South Africa, New Zealand in February
- Series moved from Multan due to advanced stage of preparations at Lahore and Karachi stadiums, says PCB
BENGALURU: The Pakistan Cricket Board (PCB) has relocated February’s tri-nation One-Day International (ODI) series with New Zealand and South Africa from Multan to Lahore and Karachi, two cities set to host the Champions Trophy later in the month.
The PCB said the move was due to the advanced stage of preparations at Lahore’s Qaddafi Stadium and Karachi’s National Stadium, which will host six of the 12 Champions Trophy group stage matches.
Lahore will also host one semifinal as well as the final provided India, who are playing all their matches in Dubai following an agreement that neither India nor Pakistan will visit each other’s countries for ICC tournament matches, do not qualify.
Rawalpindi Cricket Stadium will also host three matches of the eight-team tournament.
The PCB is upgrading the facilities at all three venues in the country as Pakistan prepares to host an ICC tournament for the first time since 1996, when they co-hosted the ODI World Cup.
The tri-series will be played from Feb. 8-14, while the Champions Trophy will kick off on Feb. 19 in Karachi, with defending champions Pakistan playing New Zealand.
