KARACHI: Pakistan’s stocks and currency closed bullish on Monday as the country announced progress in negotiations with the International Monetary Fund (IMF) for the revival of a loan program that originally amounted to $6 billion but could further increase in size.
The IMF confirmed it held “productive meetings” with Pakistani officials, saying its mission chief Nathan Porter would visit the country in May to resume discussions over the seventh review under the program before the fund released the next tranche.
Negotiations between the two sides over the seventh review had stalled after former prime minister Imran Khan’s administration deviated from the program objectives by announcing subsidized fuel prices and electricity tariffs in February.
Pakistan’s finance minister Miftah Ismail told a news conference in Washington the IMF had agreed in principle to extend the bailout package for Pakistan for another year and add $2 billion to the total loan size.
The bulls celebrated the news at the Pakistan Stock Exchange, making the market gain 520 points to close at 46,073 against the weekend session’s bearish close on Friday.
“Stocks showed a sharp recovery while responding to reports of the IMF program extension for a year along with an addition of $2 billion to the $6 billion Extended Fund Facility,” Ahsan Mehanti, CEO of Arif Habib Corporation, told Arab News.
Following the successful IMF talks, Pakistan’s national currency also posted slight gains, with 0.38 percent appreciation.
The rupee closed at Rs186.05 as compared to Saturday’s close of Rs186.75 against the US dollar.
The IMF mission chief for Pakistan said in a statement his team had held fruitful meetings with the Pakistani finance minister.
“We agreed that prompt action is needed to reverse the unfunded subsidies which have slowed discussions for the 7th review,” Porter continued. “Based on the constructive discussions with the authorities in Washington, the IMF expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.”
The breakthrough in talks can potentially lead to an inflow of $1 billion from the IMF, as the seventh review concludes.
“Other bilateral financing avenues, including the World Bank, could also materialize and unlock an additional $1.8 billion to $2 billion in financing,” KASB Securities said in its research report on Monday, adding: “A successful conclusion of the 7th review could provide a near-term respite to the PKR/USD parity.”
The south Asian country is facing financial constraints after the costly imports lifted the current account deficit to $1 billion in March 2022 with accumulated deficit to $13 billion during the current fiscal year.
The annual inflation rate during the month of March also increased to 12.7 percent, as compared to 12.24 percent in February, due to higher food prices.
Pakistan’s stocks and currency close bullish after headway in IMF talks
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Pakistan’s stocks and currency close bullish after headway in IMF talks
- The country’s equities and currency made 1.14 percent and 0.38 percent gains during Monday’s trading sessions
- IMF officials will visit Pakistan in May to resume discussions over the seventh loan program review
Zimbabwe stuns new-look Pakistan in rain-affected first one-day international
- Pakistan limped to 60-6 in 21 overs before rain denied further play, giving Zimbabwe 80-run win
- The hosts now have a 1-0 lead against Pakistan in the ODI series ahead of three T20 matches
BULAWAYO, Zimbabwe: All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method in the rain-affected first one-day international against a new-look Pakistan white-ball team on Sunday.
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out by sharing a 62-run eighth wicket stand with number nine batter Richard Ngarava, who top-scored with 48.
Under overcast conditions, Raza picked up two wickets in one over as Pakistan limped to 60-6 in 21 overs before it rained and denied further play as Zimbabwe took a 1-0 lead in the three-match series.
Pakistan’s second-string new ball bowlers – debutant Aamer Jamal and Mohammad Hasnain – couldn’t make an impact on Zimbabwe’s openers after the visitors had rested frontline pacers Shaheen Shah Afridi and Naseem Shah for the white-ball series in Zimbabwe.
Pakistan also rested its ace batter Babar Azam for the first time in an ODI since 2019 as it experimented with its bench strength ahead of next year’s Champions Trophy.
Tadiwanashe Marumani (29) flicked Jamal to square leg for a six and Joylord Gumbie (15) hit three fours against the seamers as they combined in a better than run-a-ball opening stand of 40 runs against a wayward Pakistan pace attack.
Gumbie got run out in a mix-up with Marumani in the sixth over before Pakistan came back hard through its spinners and struck at regular intervals. One of the three Pakistan debutants – left-arm wristspinner Faisal Akram took 3-24 and vice-captain Salman Ali Agha claimed 3-42 as Zimbabwe slipped to 125-7 in the 26th over.
However, Ngarava and Raza thwarted Pakistan’s spinners and pacers alike in a 69-ball stand to give the total respectability. Raza perished when he tried an expansive hit against Akram and was caught on the edge of the boundary while Ngarava was the last man to get dismissed after hitting five fours and a six when he chopped Hasnain back onto his stumps.
Fast bowler Blessing Muzarabani used the home conditions to perfection and snared the early wickets of Saim Ayub (11) and Abdullah Shafique (1), who both got caught behind inside the first three overs from the tall pacer.
Kamran Ghulam (17) and skipper Mohammad Rizwan (19 not out) couldn’t pace the chase before Pakistan lost four wickets in the space of 18 runs against the spinners. Ghulam tried to break the shackles but Sean Williams (2-12) got a thick edge and earned Marumani his third catch behind the wickets before Raza had two in three balls.
Raza pinned Salman plumb leg before wicket of his second ball and one ball later Haseebullah Khan was out for zero in his ODI debut when he played the wrong line and was clean bowled.
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.
68-member Belarusian delegation arrives in Pakistan to strengthen economic ties
- Belarusian President Aleksandr Lukashenko will reach Islamabad for three-day visit on Monday
- Several agreements and memorandums of understanding are expected to be signed during the visit
ISLAMABAD: A high-level Belarusian delegation arrived in Pakistan on Sunday as the two countries prepare to deepen bilateral economic collaboration, with the president of the Eastern European state, Aleksandr Lukashenko, scheduled to reach Islamabad tomorrow.
The 68-member delegation, which includes key Belarusian ministers, was received at Islamabad airport by Interior Minister Mohsin Naqvi and officials from Pakistan’s foreign ministry.
Pakistan and Belarus established diplomatic ties in 1994 and have since worked to strengthen their relationship, with recent efforts focusing on industrial and technological collaboration, trade and investment.
Belarus exports machinery, fertilizers and synthetic yarn to Pakistan, while Pakistan provides textiles, leather goods and surgical instruments to Belarus.
“On behalf of the government and people of Pakistan, we warmly welcome the Belarusian delegation,” Naqvi said in a statement circulated by the interior ministry, as he interacted with the foreign dignitaries.
“This visit is of great importance for strengthening bilateral relations and fostering collaboration in various sectors, including industry and trade,” he added.
According to Pakistan’s foreign office, the delegation includes 43 business leaders and 25 ministerial officials. It is led by Foreign Minister Maxim Ryzhenkov, who is accompanied by colleagues holding portfolios in energy, industry, justice, communications, natural resources and emergency situations.
The chairman of Belarus’s Military Industry Committee is also part of the group.
The visit of the delegation marks another step in enhancing bilateral ties, with both countries aiming to explore new avenues of cooperation.
The foreign office said in a statement on Thursday “President Lukashenko will hold extensive talks with Prime Minister Muhammad Shehbaz Sharif and discuss areas of bilateral cooperation and engagement.”
“Several agreements and MoUs [memorandums of understanding] will also be signed during the visit,” it added.
Naqvi also emphasized the significance of the visit, hoping it would further solidify the relationship between our two countries.
Pakistan shuts down schools in Islamabad amid opposition party’s protest call
- Capital administration says closure applies to all public and private educational institutions
- Such closures have been a recurring practice during times of political unrest, high-profile visits
ISLAMABAD: Authorities in Islamabad announced on Sunday that all educational institutions in the federal capital will remain closed tomorrow, citing the ongoing situation linked to a protest call by former prime minister Imran Khan to his party supporters.
The decision comes as leaders and workers of Khan’s Pakistan Tehreek-e-Insaf (PTI) continue their march to the city, demanding the release of the ex-premier and protesting alleged election rigging and perceived threats to judicial independence.
“The decision to close schools has been taken in view of the current circumstances,” the Islamabad Capital Territory administration said in a statement.
It added that the closure applies to all public and private educational institutions in the city.
Such closures have become a recurring practice in Islamabad during times of political unrest or high-profile visits by foreign dignitaries. Pakistani authorities also shut down schools and colleges during the Shanghai Cooperation Organization (SCO) Summit in October.
Officials have intensified security measures in the capital, deploying police and paramilitary personnel equipped with riot gear across the city and sealing key roads with shipping containers to prevent protesters from entering the federal capital.
Additionally, mobile Internet services have been suspended, and Wi-Fi connections remain slow in Islamabad.
Pakistan vows order as Imran Khan’s party launches protest amid Belarusian delegation visit
- Deputy PM questions PTI motives, calling protest march ‘conspiracy’ against Pakistan’s honor
- Interior Minister Mohsin Naqvi asks Ali Amin Gandapur to prioritize stability in his own province
ISLAMABAD/PESHAWAR: Tension continued to mount in Pakistan on Sunday as the government vowed to prevent any disruption in Islamabad during a high-level visit by the Belarus president, as supporters of jailed former prime minister Imran Khan began marching to the capital to demand his release.
Khan’s Pakistan Tehreek-e-Insaf (PTI) party is spearheading a “long march” to the capital after more than a year of his incarceration on charges he claims are politically motivated. The party is also protesting alleged rigging in February’s general elections and raising concerns about judicial independence, which it says has been undermined by recent constitutional amendments, a claim the government denies.
Security in Islamabad has been tightened, with paramilitary forces deployed and major roads sealed with shipping containers. The interior ministry has suspended mobile data services in sensitive areas, and highways have been blocked to thwart the arrival of protesters.
Addressing the media in Islamabad, Interior Minister Mohsin Naqvi criticizing PTI’s timing ahead of the three-day visit of Belarusian President Aleksandr Lukashenko to discuss for bilateral economic cooperation.
“Protecting the lives and property of citizens is a priority,” he said. “Disruption during the arrival of foreign guests will not be tolerated under any circumstances. Anyone spreading chaos will be arrested.”
Naqvi also urged Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, a close aide of ex-PM Khan, to prioritize stability in his own province instead of staging protests, calling such demonstrations harmful to national interests.
He also informed the authorities had detained “extremists” in Islamabad.
Pakistan’s Deputy Prime Minister Ishaq Dar also questioned PTI’s motives, describing its protest as “a deliberate conspiracy against the country’s honor and dignity.”
Earlier, Planning Minister Ahsan Iqbal accused Khan’s party of attempting to disrupt Pakistan’s economic recovery by launching a demonstration right ahead of the Belarusian president’s visit.
“I am hopeful this drama will end tonight, and normalcy will return,” he said at a press conference in Lahore.
Iqbal defended the government’s strict measures, highlighting its responsibility to ensure law and order.
Meanwhile, residents of Islamabad said they were already grappling with disruptions. Mohammad Hayat, a 32-year-old fruit vendor, lamented the impact of the ongoing political friction between the government and the opposition party on his livelihood.
“Since morning, I haven’t had a single customer. Roads are blocked, people can’t come out, and my fruit is perishing,” he said.
Another resident, Sayyed Sarmad from E-16 sector, criticized the road closures, claiming, “A girl died in an ambulance yesterday. The government should allow protests but manage them better.”
PTI leaders also remained resolute as caravans from KP headed toward Islamabad.
Asif Khan, a party lawmaker, declared “we will go to our destination at any cost,” highlighting transportation challenges as booked vehicles were allegedly blocked. “We arranged vehicles from other districts and captured videos to show our strength,” he added.
Iman Tahir, a women’s leader from Attock, underscored the movement’s peaceful nature.
“We have always been peaceful and will go peacefully this time again,” she said. “Today, all of Pakistan will rise, and Khan’s final call will be a successful one.”
Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, leading the rally, reiterated his commitment while traveling in official protocol.
“We are going to D-Chowk at any cost, and we will not return before reaching D-Chowk,” he said at the Peshawar Motorway toll plaza, referring to an iconic spot in Islamabad that has witnessed political protests for decades.
Another PTI lawmaker, Arbab Sher Ali, echoed the party’s determination to reach the federal capital, saying, “We are instructed to reach Islamabad and are following Khan’s directives. If we can’t reach today, we will reach tomorrow or the day after.”
PTI leaders have hinted at an indefinite sit-in in Islamabad, saying the will not return until their demands are met by the government.
Pakistan vows to facilitate Chinese investors in Special Economic Zones
- China, a major ally of Islamabad, has pledged $65 billion for a massive economic corridor project in Pakistan
- Chinese investment and financial support since 2013 have been key for Pakistan’s struggling, fragile economy
ISLAMABAD: Pakistan’s Privatization Minister Abdul Aleem Khan promised to facilitate Chinese investors in Special Economic Zones (SEZs), state media reported this week as Islamabad eyes foreign investment in vital sectors to sustain growth and avoid a macroeconomic crisis.
SEZs are usually subject to different and more favorable economic regulations compared to other parts of the same country, which include tax incentives and the opportunity to pay lower tariffs.
China, a major ally and investor in Pakistan, has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC) project. CPEC is a part of the Belt and Road Initiative, a massive China-led infrastructure project that aims to connect various countries around the globe through trade.
“Federal Minister for Privatization and Communications Abdul Aleem Khan says the Board of Investment will provide all facilities to Chinese investors including sale and transfer of land in Special Economic Zones,” Radio Pakistan reported on Saturday.
Khan, as per the state-run media, was presiding over a meeting in Lahore to discuss difficulties being faced by investors in SEZs.
“He directed to resolve all problems being faced in the Special Economic Zones across the country,” the state broadcaster said.
Chinese investment and financial support since 2013 have been key for Pakistan’s struggling economy, including the rolling over of loans so that Islamabad is able to meet external financing needs at a time its foreign reserves are low.
Though time-tested allies, recent security challenges have put a slight strain on Pakistan’s ties with China. Separatist militants have attacked Chinese projects in Pakistan over the past few months, killing Chinese personnel.
In October, a suicide blast claimed by the separatist Balochistan Liberation Army (BLA) killed three people in Pakistan’s southern port city of Karachi, including two Chinese nationals, who were targeted in the attack.
Five Chinese workers were killed in a suicide bombing in March this year, which was the third major attack on Chinese interests in Pakistan in a week.
China has called on Islamabad to ensure security for its citizens in Pakistan. The South Asian nation has in turn sought to ease Chinese fears, vowing to provide fool-proof security to its citizens living and working in the country.
