Central bank governor says $4.2 billion Saudi package will support ‘external development’

A Pakistani dealer counts US dollars at a currency exchange shop in Karachi on November 30, 2018. (AFP/ File)
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Updated 30 October 2021
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Central bank governor says $4.2 billion Saudi package will support ‘external development’

  • Raza Baqir says government and IMF to soon announce agreement to resume $6 billion loan program 
  • Projects Pakistan economy will grow by around 5 percent in 2022 as opposed to World Bank projection of 3.4 percent

ISLAMABAD: State Bank of Pakistan (SBP) Governor Dr. Reza Baqir has said long-time ally Saudi Arabia announcing a package of $4.2 billion for Pakistan would help support the country’s “external development” over and above an International Monetary Fund bailout, local media reported on Saturday.

Saudi Arabia announced on Tuesday $3 billion to support Pakistan’s foreign reserves, as well as extending financing of oil derivatives trade for a total of $1.2 billion during the year.

Pakistan has also been in talks with the IMF for over two weeks to secure a $1 billion funding tranche, but its sixth review remained inconclusive.

“These [support from friendly countries] are the measures that over and above the IMF engagement are going to further support our external development,” the SBP chief was quoted by The News as saying about the Saudi package at the Pakistan Banking Awards 2021.

Baqir also said the government and the IMF would soon announce the agreement to resume the $6 billion loan program and the release of the latest tranche of $1 billion.

“The adviser to the prime minister on finance [Shaukat Tarin] has said clearly that we are very soon about to announce the agreement with the IMF for the next review,” he said.”The determination expressed by the government of Pakistan that we see the journey ahead in partnership with the IMF ... it is also the fact that we have confidence in the direction on our policies.”

Baqir said the country’s economy has performed much better than predicted by the IMF last year, adding that the country’s GDP growth, current account deficit, foreign exchange reserves, and external debt were in a better position than IMF projections.

“Back in June 2019 when the IMF started the program with Pakistan, it projected our growth would be 3 percent in FY2021, instead the economy of Pakistan grew nearly 4 percent in the fiscal year that closed in June 2021,” Baqir said.

“For the current account deficit, the IMF projected we have a deficit of 1.7 percent of GDP, but we had a deficit of 0.6 percent. For workers’ remittances, the IMF projected a number of around $23 billion, but we closed the year with $29 billion in remittances.”

The governor said he was optimistic about the country’s economic growth prospects, saying he expected the economy to grow around 5 percent in the fiscal year 2021-22.

The World Bank had lowered Pakistan’s GDP growth projection to 3.4 percent in its latest report titled ‘Pakistan Development Update: Reviving Exports’.

“The economy grew about 4 percent in the last fiscal year, and we expect it to grow close to 5 percent in the current fiscal year; that is a welcome challenge for us,” Baqir said.

In partnership with the government, the central bank was taking measures to support economic growth without compromising the sustainability of the external sector, the governor said.


Pakistan likely to clear first review of $7 billion IMF loan — Bloomberg 

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Pakistan likely to clear first review of $7 billion IMF loan — Bloomberg 

  • IMF team in Pakistan this week to meet with officials and assess their progress in meeting loan conditions
  • Pakistan was able to build some trust with IMF by completing a short-term nine-month program last year

ISLAMABAD: Pakistan is likely to pass the first review of its $7 billion loan program with the International Monetary Fund since it has made enough progress to raise revenue, Bloomberg reported this week, quoting officials and diplomats familiar with the matter.

An IMF team led by Mission Chief to Pakistan Nathan Porter is in Pakistan this week to meet with government officials and assess their progress in meeting the loan conditions. If the IMF approves the first review of the loan, the country is in line to receive about $1 billion as the second installment of the loan package. The IMF review is being closely watched by investors as a sign of progress in economic reforms.

“The government of Prime Minister Shehbaz Sharif has approved a law to tax agricultural income, attempted to sell a stake in state-owned Pakistan International Airlines and taken steps to meet an ambitious tax target, and have presented these developments to the IMF,” Bloomberg said on Tuesday, listing reforms that could lead to Pakistan clearing the review. 

Sharif told the global lender’s Managing Director Kristalina Georgieva last month his government plans to submit a plan to boost economic growth after achieving stability. The IMF chief said in an X post the lender was encouraged by Pakistan’s strong commitment and reforms.

A team from Pakistan led by Finance Minister Muhammad Aurangzeb started the “kick-off meeting” with the IMF team on Tuesday, the ministry said in a statement. Aurangzeb said in an interview last month the country will meet its revenue goals for the fiscal year to June and any shortfall will be met by expanding the tax net. He has separately said the nation is confident to meet other targets of the program. 

Pakistan was able to build some trust with the IMF by completing a short-term nine-month program last year. Previous loan programs in Pakistan ended prematurely or saw delays after the governments at the time faltered on meeting key conditions.


Five soldiers, 13 civilians killed in attack at military base in northwestern Pakistan 

Updated 53 min 14 sec ago
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Five soldiers, 13 civilians killed in attack at military base in northwestern Pakistan 

  • Army says militants rammed two explosive-filled vehicles into boundary wall of military cantonment in Bannu
  • Military says attack was orchestrated from neighboring Afghanistan, whose rulers deny allowing militant activity 

ISLAMABAD: Five soldiers and thirteen civilians were killed as militants rammed two explosive-filled vehicles into the boundary wall of a military cantonment in northwestern Pakistan, the army said on Wednesday, as the country faces a surge in terror attacks. 

The assault, which involved “multiple suicide blasts,” took place on Tuesday in Bannu, which is in Pakistan’s Khyber Pakhtunkhwa province bordering Afghanistan. The military’s media wing said in a statement militants had sought to breach Bannu cantonment’s security, causing the partial collapse of its perimeter wall and damaging nearby buildings.

The KP province has seen a surge in militant attacks in recent years that Pakistan blames on insurgents harboring in Afghanistan. Kabul denies it provides refuge to militants and says Pakistan’s security challenges are a domestic issue. 

“Our valiant troops engaged the intruders with precision, eliminating all sixteen terrorists, including four suicide bombers. In this intense exchange of fire, five brave soldiers, after putting up a heroic resistance, embraced martyrdom in the line of duty,” the army said in a statement. 

The latest attack occurred in an area adjacent to a local market after sunset, when people were breaking their fast during the Muslim holy month of Ramadan. Video clips circulating on social media showed thick grey plumes of smoke rising into the air as gunshots rang out.

The army said a mosque and a civilian residential building close to the military facility were damaged in the attack, killing thirteen civilians and injuring 32.

Intelligence reports had “unequivocally confirmed the physical involvement of Afghan nationals in this heinous act,” the military said, adding that evidence proved the attack was orchestrated and directed by insurgents operating from Afghanistan.

“Pakistan expects the Interim Afghan Government to uphold its responsibilities and deny its soil for terrorist activities against Pakistan. Pakistan reserves the right to take necessary measures in response to these threats emanating from across the border,” the military concluded. 

Jaish-e-Fursan Muhammad, a militant faction affiliated with the Pakistani Taliban (TTP), claimed responsibility for the attack in a statement released to media, saying dozens of security officials had been killed in the assault. 

Pakistan has repeatedly accused the Taliban authorities in Kabul of facilitating cross-border militant attacks, a charge Afghan authorities deny. 

The TTP was formed in 2007 as an umbrella organization of various hard-line groups operating individually in Pakistan.

The TTP pledges allegiance to, and gets its name from, the Afghan Taliban, but is not directly a part of the group that now rules Afghanistan. Its stated aim is to impose Islamic religious law in Pakistan, as the Taliban have done in Afghanistan.

The TTP is responsible for some of the bloodiest attacks in Pakistan, including on churches and schools and the shooting of Malala Yousafzai, who survived the 2012 attack after she was targeted for her campaign against the Taliban’s efforts to deny women education.

Militants have targeted Bannu several times in the past also. Last November, a suicide car bomb killed 12 troops and wounded several others at a security post. In July, a suicide bomber detonated his explosives-laden vehicle and other militants opened fire near the outer wall of the military facility.
 


Leader of Pakistan opposition movement says will meet Imran Khan if he has learnt from past mistakes

Updated 4 min 25 sec ago
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Leader of Pakistan opposition movement says will meet Imran Khan if he has learnt from past mistakes

  • Former PM Shahid Khaqan Abbasi calls for ‘national dialogue’ of politicians, army, judiciary to end Pakistan’s long political stalemate
  • Abbasi, who heads Awaam Pakistan Party, has emerged as main leader of joint opposition movement against government of PM Shehbaz Sharif

ISLAMABAD: Former prime minister Shahid Khaqan Abbasi said this week he was willing to meet jailed ex-premier Imran Khan to cool political instability in Pakistan provided that he had reflected on the mistakes of his four years in power and was willing to change.

Khan’s opponents including Abbasi, chairman of the newly formed Awaam Pakistan Party (APP), say he failed during his years in power from 2018-2022 to revive an economy battered by COVID-19 or fulfil promises to make Pakistan a corruption-free, prosperous nation respected on the world stage. They also say Khan victimized his political opponents by jailing them and launching court cases against them while in power. Khan denies the allegations.

Khan has been in jail since August 2023 and faces a slew of charges from corruption to treason that he says are politically motivated. Even from behind bars, he arguably remains the nation’s most popular politician, according to most polls. 

Speaking to Arab News, Abbasi, a main leader in a joint opposition movement against the government of Prime Minister Shehbaz Sharif, said he was willing to meet with the jailed Khan to resolve the country’s long political stalemate. 

“My first dialogue with him would be about whether he has reflected in jail, whether he has contemplated what he did in his four years [in office], and if he’s willing to change,” Abbasi said. 

“If he’s not willing to change, if he thinks he can operate the same way he did for four years, run government and parliament and the country the same way, then I don’t see much hope.”

“NATIONAL DIAGLOGUE”

Khan, a cricketer-turned-politician, surged to power in 2018 with what is widely believed to be the support of the military, which maintains it is neutral in politics. He was ousted from power in a parliamentary vote of no confidence in 2022, which plunged the country into prolonged political uncertainty, with his Pakistan Tehreek-e-Insaf (PTI) emerging as a thorn in the side of the federal government and the military and keeping the country’s politics on razor’s edge by holding regular protests and speaking about the party’s alleged persecution and rights abuses at international platforms. 

Khan, since his ouster, has faced dozens of legal cases, including charges of corruption, revealing state secrets and inciting mutiny during anti-government protests his party is accused of leading on May 9, 2023. The cases and a string of court convictions ruled the 71-year-old out of the Feb. 8 general elections last year and the PTI was also barred by the election commission from contesting as a party on the basis of a technicality, forcing members to run as independents. 

Though the PTI-linked independents won the greatest number of seats, they did not have the majority to form a government, which was put together as a coalition administration led by Shehbaz Sharif as prime minister. Sharif is the younger brother of three-time prime minister Nawaz Sharif and led the successful bid by the opposition in parliament to topple Khan in the 2022 no-confidence vote.

The PTI and other opposition parties have alleged rigging in the Feb. 8 general elections, which were marred by nationwide Internet shutdowns and delayed results, and the PTI has since held multiple protests, including some that have turned violent, calling for fresh elections and demanding Khan’s release from prison. 

Talks between the PTI and the government to resolve the political stalemate began in December but broke down earlier this year. Since then, the PTI has formed a joint front against the federal government along with other opposition parties, and former prime minister Abbasi has emerged as a main leader of that movement, called the Tehreek-e-Tahaffuz-e-Ayeen-e-Pakistan, or the Movement for the Protection of the Constitution of Pakistan. 

“In our last opposition meeting, we gave the solution, the solution was new elections but before that, there is a need for a national dialogue with the national leadership,” Abbasi said, commenting on a grand moot of the opposition alliance last week. 

“I advocated [for] the military to sit on that table, the judiciary to sit on that table.”

The purpose of the national dialogue, which could also include business leaders and top media house bosses, Abbasi said, was to develop a consensus on an “action plan.”

“And then implement it jointly. This is an extraordinary situation for Pakistan, it needs an extraordinary solution.”

Pakistan, a country of over 240 million people, narrowly avoided default in 2023 and has since been treading a tricky path to economic recovery, buttressed by a $7 billion IMF bailout approved last year and tied to tough reforms. 

“Pakistan needs massive, massive reforms in every segment and then [stakeholders] need to work together to implement that,” the ex-premier said. “That is the need of the hour.”


Pakistan holds funeral prayers for 12 victims of double suicide bombing near military base in Bannu

Updated 05 March 2025
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Pakistan holds funeral prayers for 12 victims of double suicide bombing near military base in Bannu

  • The city is observing a day of mourning, with joint funeral prayers scheduled at a sports complex
  • Gunshots could still be heard early on Wednesday as security forces combed through the area

PESHAWAR: Schools and shops closed as residents of a northwestern Pakistani city prepared for the funeral ceremonies on Wednesday for 12 people killed in a twin suicide bombing that targeted a military base the day before.
A militant group linked with the Pakistani Taliban claimed responsibility for the bombing in Bannu on Tuesday evening when two suicide bombers breached the wall surrounding the base.
Most of the local residents were breaking their daylong fast during the Muslim holy month of Ramadan or praying at a nearby mosque.
After the explosions, other attackers stormed the compound and set off a firefight with the troops.
The powerful blasts tore through walls and ripped off roofs and also severely damaged the mosque. Along with the 12 killed, 30 people were also wounded in the attack, some of whom were reported to be in critical condition.
The casualty figures did not include troops. It was not immediately known how many security forces were killed or injured in the assault or the subsequent gunfight.
On Wednesday, a mechanical digger was clearing away rubble where homes used to stand, and debris-covered prayer mats lay crumpled on the mosque floor.
A day of mourning was being observed, said Bannu community elder Alam Khan, and joint funeral prayers were to be held for the victims at a sports complex in the area.
Gunshots could still be heard early on Wednesday as security forces combed through the area, looking to clear it of any militants involved in the attack.
“All education institutions are closed,” Khan said. “Most shops are also shut. Rescue workers have completed their operation by recovering the bodies of three deceased worshippers who were trapped under the collapsed roof of the mosque.”
Bannu is located in the northwest province of Khyber Pakhtunkhwa that borders Afghanistan, and several armed groups are active there. A group affiliated with the Pakistani Taliban, Jaish Al-Fursan, has claimed responsibility for the attack.


Pakistan PM orders polio data digitalization after surge in cases last year

Updated 05 March 2025
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Pakistan PM orders polio data digitalization after surge in cases last year

  • The country saw a significant resurgence of the poliovirus in 2024, with 74 cases reported nationwide
  • This year, six cases have emerged, with authorities planning next vaccination rounds in April and May

KARACHI: Prime Minister Shehbaz Sharif on Wednesday instructed authorities to digitize polio data across Pakistan as he presided over a meeting to review the country’s polio situation, following an alarming rise in cases last year.

Pakistan saw a significant resurgence of the poliovirus in 2024, with 74 cases reported nationwide. Of these, 27 were from Balochistan, 22 from Khyber Pakhtunkhwa, 23 from Sindh and one each from Punjab and Islamabad.

Polio is a paralyzing disease with no cure, and multiple doses of the oral polio vaccine, along with the completion of the routine vaccination schedule for children under five, are essential to providing immunity against the virus.

Last month, Pakistan concluded its first nationwide anti-polio campaign of 2025. So far, the country has reported six polio cases since the beginning of this year.

“A gradual decline in polio cases has been made possible due to the tireless efforts of provincial administrations,” Sharif said in a statement issued by the Prime Minister’s Office. “The complete eradication of polio from the country will only be possible with collaboration between federal and provincial governments.”

“All polio data must be digitized to strengthen our monitoring efforts,” he directed.

Officials briefed the prime minister on the progress of anti-polio efforts, saying the February campaign covered 42.5 million children, including nearly 90 percent of children in polio-affected districts.

Pakistan has planned three major polio campaigns in the first half of 2025, with the next rounds scheduled for April and May. Officials also told Sharif an IT dashboard is being used to track and monitor vaccination efforts in real time.
Pakistan and Afghanistan are the last two countries in the world where polio remains an endemic.

Pakistan’s polio program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies.

Militant groups also frequently attack and kill members of polio vaccine teams.