ISLAMABAD: Pakistan’s new prime minister has appointed 57-year-old economist and businessman Miftah Ismail as the finance minister who will be tasked with quickly arresting a downward economic spiral and getting IMF talks back on track.
Ismail, who briefly held the post four years ago, brings with him a record of decisive policy action and a close relationship with Prime Minister Shehbaz Sharif but faces a daunting array of challenges, from falling foreign currency reserves to soaring inflation and potentially historic deficits.
He will have limited time to act, with a maximum of 15 months before general elections are due, while they may be called sooner.
The former IMF economist, with a PhD in Public Finance and Political Economy from the Wharton School of Business, held the job for a few months in 2018 when he joined a government near the end of its term.
In that short period, Ismail scrapped costly government exchange rate controls and gave the Pakistani rupee more flexibility, while cutting income taxes as part of a growth promotion policy.
As he returns to the post, central bank foreign reserves have fallen to $10.8 billion from $16.2 billion in just one month, according to the latest figures released on Thursday, providing import cover of only around 50 days, Ismail said.
To rebuild reserves, he is considering pushing for more deposits from friendly countries such as China, Saudi Arabia and the United Arab Emirates, sources in the ministry have said. All of those countries have parked funds in Pakistan’s central bank that will need to be rolled over.
He will also prioritize securing a successful International Monetary Fund review to release a tranche of more than $900 million and unlock finances from other international lenders that require a clean bill of health from the Fund.
Ismail has said he intends to restart talks soon to resume the 39-month, $6 billion bailout program, which Pakistan entered in 2019, but negotiations will be tough with many targets off track.
He has also said his foremost task will be to contain a burgeoning fiscal deficit that could hit 6.4 trillion Pakistani rupees ($35 billion), or about 10 percent of gross domestic product, versus a target of about 4 trillion rupees, by the end of June.
Energy subsidies announced by ousted premier Imran Khan, which are burning through Pakistan’s public finances, are also an immediate concern.
A rollback would be politically difficult, with Khan ratcheting up pressure for fresh elections and consumer inflation already clocking in at 12.7 percent in March.
The subsidies were rolled over on Friday for at least two weeks, with Sharif citing political pressure, but Ismail has made clear the support was not sustainable and would have to be revisited.
“We cannot let our fiscal and external financial position deteriorate further and have our development partners walk out. Tough choices need to be made,” he said in a tweet on Saturday.
Ismail, from a wealthy family that runs a confectionery business, Ismail Industrial Ltd, is expected to have a strong working relationship with the new premier. Sharif was a provincial chief minister when Ismail began his public service career as the head of a provincial investment board a decade ago.
Pakistan’s new finance minister faces tight time frame to tackle crises
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Pakistan’s new finance minister faces tight time frame to tackle crises
- Miftah Ismail briefly held the post four years ago, brings with him record of decisive policy action
- But the minister faces a daunting array of challenges, from falling foreign reserves to soaring inflation
Pakistan Hajj Mission awarded for excellence as Saudi Arabia unveils 2026 pilgrimage policy
- Pakistan’s director general of Hajj says early release of Hajj policy will ensure timely preparations
- He calls the Excellence Award a recognition of the ‘outstanding performance’ of the Pakistan team
Songs of healing: Karachi’s blind musician uplifts young patients at kidney hospital
- For over two decades, Zainab Imran has used music to bring comfort to children battling chronic illnesses
- SITU is a highly regarded hospital for its urology and transplantation services, particularly kidney transplants
KARACHI: In the waiting area of the Sindh Institute of Urology and Transplantation (SIUT), soft music drifted through the corridors earlier this month.
Children began to gather, some sitting beside a woman at the keyboard, others nestled quietly in their parents’ laps.
The melodies bring calm, even joy, to an otherwise tense space filled with long waits to see doctors and the dread of the difficult treatments that follow.
At the heart of this daily ritual is Zainab Imran, a 44-year-old blind singer known among staff and patients as the “nightingale of SIUT.”
For more than 20 years, she has been performing for young patients at SIUT, a leading health care facility in Karachi, highly regarded for its urology and transplantation services, particularly kidney transplants.
“If these children find happiness through my singing, then nothing is greater than that,” Imran said as she prepared for another session of singing. “I cannot see, but I truly feel their pain, what they’re going through, how hard it must be. When they smile, even briefly, it brings me deep inner peace.”
Her journey with SIUT began in February 2004, when she met Javed Mir, a musician with polio who hosted children’s music programs on national television.
“He used to sit with me and sing for the children. He encouraged me and taught me so much,” she recalled.
During her first performance at SIUT’s children’s ward around two decades, Imran played national songs on a keyboard.
The response was overwhelming — clapping, smiles, and laughter filled the room. But behind the joy, there was also visible pain.
“Many children were crying, they were in such pain,” she said.
Her mother, who had accompanied her to the hospital, gently urged her to continue and to be strong for the children who needed her.
Imran also credits the support of SIUT founder Professor Dr. Adib ul Hasan Rizvi as a defining moment.
“He placed his hand on my head and said, ‘You are our daughter, and you can do anything.’ That gave me strength.”
Imran has since become a beloved fixture at SIUT. To her, music is not just art, it is also medicine.
“It’s often said that music is food for the soul,” she said with a smile. “If you’re upset or sad, even humming a tune can help you feel better. That’s exactly how I see music as well.”
“NEVER LOSE HEART”
Founded in 1974 as a 12-bed ward within a public hospital, SIUT has grown into a 2000-bed hospital with multiple units. In 2024 alone, it treated 4.2 million patients, including over 600,000 outpatient visits and more than 500,000 dialysis sessions.
Professor Dr. Ali Asghar Lanewala, head of the Pediatric Nephrology Department, said the facility’s outpatient pediatric clinic saw 300 to 400 children on each of its four weekly working days, with families often waiting three to four hours to see a doctor.
“Her very melodious voice creates a vibrant atmosphere, and she engages the children by singing familiar songs with them,” he told Arab News. “This way, the long three to four-hour waiting period becomes a bit easier for the children.”
Imran hopes she can carry on singing for as long as life allows her.
“Never lose heart. Insha’Allah, everything will be fine,” she told the children as she started to tap the keys of her keyboard.
“Children must stay brave and strong, and keep reminding themselves, ‘No, I have to get better’.”
Pakistan expects 2.7% economic growth in FY25 amid weak farm and industrial outlook
- Current account swings to $1.9 billion surplus after record remittance inflows and stronger exports
- Some analysts expect industrial and services sectors to post decent growth due to lower interest rates
KARACHI: Pakistan’s economy is expected to grow 2.7 percent in the outgoing fiscal year, missing the government’s 3.7 percent target due to what analysts called weaker-than-expected performance in the agriculture and industrial sectors, as Finance Minister Muhammad Aurangzeb unveiled the annual Economic Survey on Monday.
The survey, released ahead of the national budget on June 10, serves as a pre-budget document assessing the economy’s trajectory over the past year.
It outlines key indicators and policy challenges facing the country, which remains under an International Monetary Fund (IMF) program and is navigating a fragile recovery after a prolonged financial crisis.
“This has been a gradual recovery,” Aurangzeb told a televised news briefing in Islamabad, adding that the country’s economic performance must be viewed in the larger global context.
The finance minister said after contracting by 0.2 percent in FY23, Pakistan’s economy grew 2.5 percent last year and is expected to expand slightly to 2.7 percent in the outgoing year.
“We plan to stay the course to ensure that we remain on the sustainable growth trajectory,” he added.
Aurangzeb reaffirmed the government’s commitment to implementing IMF-backed structural reforms to transform the fundamentals of Pakistan’s economy.
“The DNA of Pakistan’s economy has to be fundamentally changed through tax and energy reforms that have started showing remarkable results,” he said.
The minister maintained staying in the IMF program would help Pakistan bring permanence to its hard-earned macroeconomic stability and reduce its economic vulnerability.
“Implementing a 37-month, US$7 billion IMF Extended Fund Facility (IMFEFF) has bolstered policy credibility and provided essential financial support to promote inclusive and reform-driven growth,” the Economic Survey also proclaimed.
Analysts said Pakistan targeted 3.7 percent economic growth for the outgoing fiscal year but was forced to revise it to 2.7 percent last month due to underperformance in the agriculture sector.
“The government did fall short of its 3.7 percent GDP growth target for FY25 and primarily it was due to a major setback in the agriculture sector,” said Sana Tawfik, head of research at Arif Habib Limited.
“The agriculture sector posted a growth of just 0.6 percent so the situation was especially concerning in major crops,” she added.
According to the survey, the agriculture sector is expected to grow by 0.56 percent, while the industrial and services sectors are likely to expand by 4.77 percent and 2.91 percent, respectively.
Meanwhile, inflation has eased significantly, giving room for monetary easing.
Aurangzeb called the inflation trend a “fantastic story” for Pakistan, with the pace of price hikes slowing to a record low of 0.3 percent in April. Inflation is expected to settle at 4.3 percent in the outgoing financial year.
The State Bank of Pakistan also cut its benchmark interest rate by over 1,000 basis points to 11 percent in FY25, with more easing likely ahead.
“This is the domain of the State Bank and the monetary policy committee so I don’t want to comment on that,” Aurangzeb said. “But I do expect where our core inflation is, where headline inflation is, there is room to do more.”
On the fiscal side, the survey showed that the government managed to contain the deficit at 2.6 percent of GDP for July-March, compared with 3.7 percent during the same period a year ago.
Revenues rose sharply, with tax collections increasing by 26.3 percent to Rs9.3 trillion ($32.9 billion), while total revenues stood at Rs13.4 trillion ($47.5 billion). Primary surplus also improved to 3.0 percent from 1.5 percent.
Government expenditure during this period rose to Rs16.3 trillion ($58 billion), with current and development spending increasing by 18.3 percent and 33 percent, respectively.
On the external front, Pakistan recorded a sharp turnaround in its current account, moving from a $1.3 billion deficit to a $1.9 billion surplus, driven by improved exports and record remittance inflows.
“The industry also struggled. If you look at the manufacturing sub-sector so LSM [large scale manufacturing] remained in the negative territory,” said Tawfik, noting that weak domestic demand, high inflation and elevated interest rates had weighed on performance.
“In short both demand and supply side factors combined dragged down the overall growth across key sectors of the economy,” she continued.
Aurangzeb said the government was working to further reduce energy costs for local investors.
“On the energy side, as I said one-third of the tariffs, seven rupee is not a small amount and Mr. Leghari [power minister] is working on it day in and day out,” he said.
Planning Minister Ahsan Iqbal last week said the government was targeting 4.2 percent growth in the next fiscal year starting July. Aurangzeb echoed this target, noting that growth would be driven by a rebound in agriculture and industry.
“This target would be achieved through growth in industries and agriculture that are expected to rebound on the back of government’s favorable financial, tax and energy policies,” he said.
Pakistan’s multilateral and bilateral partners, including the IMF, World Bank, China, Saudi Arabia and the United Arab Emirates, remain supportive of the country’s reform path.
“With respect to the Fund and multilateral partners I’ve already mentioned we are in a good place with them both in terms of the mission and the senior management of the Fund,” Aurangzeb said. “The monetary institutions and our bilateral partners are standing by us as we move forward.”
Shankar Talreja, an economist and director at Topline Research Ltd., expressed optimism about the outlook.
“There will be some natural rebound in important crops under the agriculture segment,” he said. “Similarly, due to lower interest rates, industrial and services sectors will also post decent growth.”
Over 50 killed, dozens injured in accidents and shootings during Eid in northwest Pakistan
- Fatalities occurred in road accidents, drownings, fires and gun violence across Khyber Pakhtunkhwa
- Mardan and Peshawar districts reported the highest death tolls with 14 and 13 fatalities, respectively
PESHAWAR: At least 55 people were killed and 50 others injured in various incidents across Pakistan’s northwestern Khyber Pakhtunkhwa province during the three days of Eid Al-Adha, rescue officials said on Monday.
The fatalities were reported in traffic accidents, drowning incidents, fires and gun violence across multiple districts, including the provincial capital, Peshawar. The injured were taken to local hospitals for medical treatment, according to a statement released by Rescue 1122.
“The total number of deaths across the province during the Eid holidays has reached 55,” Shah Fahad, Director General of Rescue 1122 in Khyber Pakhtunkhwa, said. “Fifty others were injured in shooting incidents and provided emergency medical aid.”
According to the data, Rescue 1122 responded to about 2,000 emergencies and provided medical assistance to 1,897 individuals across the province during Eid.
These included 1,400 medical emergencies, 349 traffic accidents, 112 fire incidents, six drowning cases and 50 crime-related incidents.
In Peshawar alone, the agency handled 418 emergency calls, including 43 road accidents, 338 medical cases, 20 fire incidents and eight gun-related injuries. A total of 431 patients were transported to hospitals in the city.
District-wise, the highest number of fatalities was reported in Mardan (14) and Peshawar (13).
Fire incidents on festive occasions in the province are often caused by barbecues or fireworks, while traffic accidents typically stem from congestion, reckless driving by youth and occasional road rage.
Drowning incidents occur when people visit rivers or lakes for boating without adequate safety measures, and gun-related injuries often result from either criminal activity or celebratory gunfire.
New Karachi-based private airline receives license, plans launch with three aircraft
- Air Karachi is backed by prominent Pakistani business leaders and modeled on Air Sial
- It plans to expand its fleet to seven aircraft and begin international flights within a year
KARACHI: A new private airline based in Karachi received its Regular Public Transport (RPT) license from Pakistan’s Civil Aviation Authority (CAA) last week, one of its key stakeholders confirmed on Monday, expressing hope the carrier would begin operations soon.
Air Karachi, spearheaded by prominent business leaders from Pakistan’s southern port city, is modeled after the success of Air Sial, another airline launched by industrialists in Sialkot.
The idea, conceived amid growing challenges faced by the country’s national carrier Pakistan International Airlines (PIA), is to develop a business-backed airline that can operate with efficiency and financial autonomy.
“Yes, we got the license from CAA,” Hanif Gohar, one of the airline’s shareholders, told Arab News. “We are looking for aircraft and will start with three aircraft soon.”
Gohar said Air Karachi was issued the RPT license by the CAA on June 5.
According to a copy of the approval letter seen by Arab News, the airline has been directed to deposit a license issuance fee of Rs500,000 ($1,750) and a security deposit of Rs100 million ($350,000). It must also raise its paid-up capital to
Rs600 million ($2.1 million) before commencing operations, in line with the National Aviation Policy 2023.
Air Karachi has been registered with the Securities and Exchange Commission of Pakistan and plans to raise Rs5 billion ($17.5 million) by pooling Rs50 million ($175,000) from each of its 100 shareholders.
Last year, Gohar told Arab News the response from Karachi’s business community was so overwhelming that some families proposed contributing as multiple shareholders.
He informed that aviation veteran Air Vice Marshal (r) Imran Qadir had been appointed chief operating officer of the airline, supported by a team of retired Pakistan Air Force officials.
Once operational, Air Karachi will begin domestic flights with three aircraft and later expand its fleet to seven before launching international flights to the Middle East after the mandatory one-year domestic run.
