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IMF reaches staff-level agreement to release $1.17 billion in funds for Pakistan

Pakistan's Finance Minister Miftah Ismail presents the annual fiscal budget for 2018-19 at the Parliament House in Islamabad on April 27, 2018. (AFP/File)
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Updated 14 July 2022
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IMF reaches staff-level agreement to release $1.17 billion in funds for Pakistan

  • IMF to restart stalled loan program after Pakistan ended fuel subsidies, hiked fuel prices and taxes
  • Staff-level agreement will end months of uncertainty in equity and currency markets
Updated 14 July 2022
KHURSHID AHMED   

KARACHI: Finance minister Miftah Ismail said on Thursday Pakistan would receive $1.17 billion from the International Monetary Fund as part of a stalled $6 billion loan package, following months of talks and deeply unpopular belt-tightening measures by the government of Prime Minister Shehbaz Sharif.

A statement from the IMF on Wednesday said a “staff level agreement” that is still subject to board approval would bring to $4.2 billion the amount dispersed under an extended fund facility (EFF) that could increase to $7 billion and stretch until June next year.

Pakistan entered the IMF program in 2019 spread over three years and three months, but with less than half the amount disbursed, the IMF suspended the bailout earlier this year after the previous prime minister, Imran Khan, announced unfunded subsidies for the oil and power sectors. Khan’s government was ousted in April. The new government has since raised the prices of petroleum products at least four times to meet IMF conditions.

The resumption of the stalled program is expected to end months of uncertainty in the currency and equity markets. 
“We will soon receive $1.17b as the combined 7th & 8th tranche,” Ismail said in a Twitter post on Thursday morning.

The IMF team, led by Nathan Porter, said it had finalized discussions for the combined seventh and eight reviews of Pakistan’s economic program supported by an IMF Extended Fund Facility (EFF).
 “Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the program to about $4.2 billion.” Porter said in the statement.
“Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million that will bring the total access under the EFF to about $7 billion.”
Pakistan desperately needs help from international donors and institutions to support depleting foreign exchange reserves and a falling currency and take inflation, at 13-year-high.

“Pakistan is at a challenging economic juncture. A difficult external environment combined with procyclical domestic policies fueled domestic demand to unsustainable levels,” the IMF said. “The resultant economic overheating led to large fiscal and external deficits in FY22, contributed to rising inflation, and eroded reserve buffers.”
Outlining policy priorities, the IMF said steadfast implementation of the FY2023 budget, power sector reforms, a proactive monetary policy to guide inflation to more moderate levels, reduction in poverty and strengthening social safety and governance were the key policy actions to support the program.
Pakistan has assured the IMF it will improve governance and mitigate corruption by setting up a robust electronic asset declaration system and plans to undertake a comprehensive review of its anticorruption institutions, including the National Accountability Bureau, to enhance effectiveness in investigating and prosecuting corruption cases. 
“Steadfast implementation of the outlined policies, underpinning the SLA for the combined seventh and eighth reviews, will help create the conditions for sustainable and more inclusive growth,” the IMF statement said.

“The authorities should nonetheless stand ready to take any additional measures necessary to meet program objectives, given the elevated uncertainty in the global economy and financial markets.”
 

Topics: IMF Pakistan talks IMF

Azeri air and ground crew undergo training at Pakistan Air Force base

Updated 12 sec ago
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Azeri air and ground crew undergo training at Pakistan Air Force base

  • A high-level Azerbaijani delegation also called on Pakistan’s air chief on Tuesday to discuss training cooperation
  • The visit signifies resolute commitment of both countries to reinforce military partnership, Pakistani military says
Updated 12 sec ago
Hasaan Ali Khan

ISLAMABAD: The Pakistan Air Force (PAF) has been enhancing operational capabilities of the Azerbaijan Air Force by training Azeri air and ground crews at an operational Pakistani base, the Pakistani military said on Tuesday.
The statement came after a high-level Azerbaijani delegation, comprising Deputy Defense Minister Agil Gurbanov and Air Force Commander Lt. Gen. Namig Islamzade, called on Pakistan’s air chief, Air Chief Marshal Zaheer Ahmed Baber Sidhu, at the Air Headquarters in Islamabad.
The officials discussed the importance of training cooperation, with Air Chief Marshal Sidhu reaffirming his commitment to strengthening bilateral relations and enhancing cooperation in operational and training areas, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“He noted that the [ongoing] training program is on schedule, with over 50 percent of the training objectives successfully achieved,” the ISPR said in a statement.
“He further emphasized that the initiative is expected to culminate within one-month timeframe, reflecting the commitment of PAF to enhance the operational capabilities of Azerbaijan Air Force.”
The air chief highlighted the PAF’s recent accomplishments, reflecting his vision of operational excellence in modern warfare, according to the ISPR.
The visiting dignitaries lauded the professionalism demonstrated by PAF personnel and their notable progress in developing a thriving domestic capability in the aviation industry in a short timeframe.
“The dignitaries expressed satisfaction on the training imparted to 70 aircrew & technicians getting trained in PAF and expressed their desire for enhanced Air Force to Air Force collaboration between the two sides,” the ISPR statement read.
“Emphasizing on the need to adapting to the evolving landscape of modern warfare, the Azerbaijan military leadership also proposed the establishment of a more comprehensive training regimen focusing on niche and disruptive technologies, as well as cyber and electronic warfare capabilities.”
Later the delegation visited the PAF Cyber Command at the Air Headquarters, where it was briefed about the operational capabilities and ongoing projects of PAF’s modernization drive.
The Pakistani military said the visit of the high-level defense delegation from Azerbaijan signified a resolute commitment of both countries to reinforce their military partnership, fostering collaboration and promoting robust relations.
In recent months, there has been a flurry of visits by Azerbaijani officials to Pakistan, highlighting the growing cooperation between the two countries in various sectors. Pakistan, which has been facing an economic crisis, is currently making efforts to position itself as a pivotal trade and transit hub connecting Central Asian states and China with the rest of the world.
In July, Azerbaijan President Ilham Aliyev’s arrived in Pakistan on a two-day visit, during which both nations agreed to enhance the volume of bilateral trade to $2 billion and vowed to increase cooperation in mutually beneficial economic projects.
Last week, Pakistan waived customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement. The agreement signed on July 11 aimed to boost economic cooperation by reducing tariffs on goods like Pakistan’s sports equipment, leather, and pharmaceuticals apart from Azerbaijan’s oil and gas products.

Topics: pakistan air force pakistan azerbaijan ties

Pakistan’s Imran Khan demands ‘time frame’ for progress in talks with government

Updated 17 min 59 sec ago
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Pakistan’s Imran Khan demands ‘time frame’ for progress in talks with government

  • The jailed ex-premier seeks a meeting with his negotiating team to get the details of the process
  • Government asked Khan’s PTI to bring its demands in writing in the next round of talks on Jan. 2
Updated 17 min 59 sec ago
Muhammad Ibrahim

ISLAMABAD: Former Prime Minister Imran Khan on Tuesday called for a “time frame” within which negotiations with the government should progress and the demands of his Pakistan Tehreek-e-Insaf (PTI) party, including the release of political prisoners, should be addressed.
Khan’s message was conveyed by Barrister Gohar Ali Khan, chairman of PTI, after meeting the ex-premier at a high-security prison in Rawalpindi. The former prime minister, who has been imprisoned for over a year on charges he claims are politically motivated, has threatened to launch a civil disobedience movement by urging overseas Pakistanis to halt remittances if his demands are not met.
Khan’s demands include the release of all PTI political prisoners and the establishment of judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government claims involved PTI supporters.
His insistence on a time frame comes just a day after the government initiated formal negotiations with the PTI, asking it to bring all its demands in writing.
“I informed Khan Sahib about the negotiations that have started,” Gohar said while speaking to the media after the meeting. “Khan Sahib said it’s a good thing that negotiations are taking place, but there should be a time frame within which progress should be made.”
Asked about the exact time frame he had in mind, Gohar said Khan had not specified one, only emphasizing that progress on his party’s demands should happen “as soon as possible.”
He described his interaction with Khan as a “routine meeting” lasting half an hour.
Gohar said PTI plans to present its charter of demands in the next round of talks, scheduled for Jan. 2, and expressed hope for meaningful results.
Meanwhile, Khan reiterated his stance through a post on X, formerly Twitter, calling for his nominated negotiation team to meet him.
“To make the negotiation process meaningful, it is important that I meet with my nominated negotiation team so that I can have a proper understanding of what is going on,” he said.
The ex-premier maintained that his party would postpone the civil disobedience movement if its demands were implemented but expressed skepticism about the government’s willingness to investigate the May 9 and November 26 incidents.
“We will not allow that to happen,” he added.

Topics: Imran Khan Pakistan Tehreek-e-Insaf (PTI) party adiala jail Gohar Khan

Pakistan Railways starts manufacturing new coaches after technology transfer from China

Updated 24 December 2024
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Pakistan Railways starts manufacturing new coaches after technology transfer from China

  • Pakistan will assemble 184 new passenger coaches at Railways Carriage Factory in Islamabad in next three years
  • China is also helping Pakistan upgrade and dualize an existing Main Line- 1 rail track from Karachi till Peshawar
Updated 24 December 2024
KASHIF IMRAN

ISLAMABAD: Pakistan Railways (PR) has started production of new train coaches in the country, Pakistani state media reported on Tuesday, following the transfer of technology from China.
The South Asian country has been able to locally produce high-speed passenger coaches and goods wagons using technology transferred by China, according to media reports.
China has also helped build capacity of PR engineers and technicians who have succeeded in manufacturing new coaches and wagons at workshops in Lahore and Islamabad.
"As many as 184 new passenger coaches would also be assembled at Pakistan Railways Carriage Factory, Islamabad during the next three years," the Associated Press of Pakistan (APP) state news agency reported, citing a railways official.
PR Executive Officer Amir Ali Baloch said that a new Green Line-styled train will be run between Lahore and Karachi soon, according to the Radio Pakistan broadcaster.
He said he had issued orders to further improve the quality of food and drink in trains, and requested public to take special care of cleanliness.
Last month, China and Pakistan discussed advancement of rail, road and economic zone projects under the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), a part of China's Belt and Road Initiative, which aims to connect China to the Arabian Sea through a network of roads, railways, pipelines and ports in Pakistan and help Islamabad expand and modernize its economy.
The discussions on key projects were held during Chinese Ambassador to Pakistan Jiang Zaidong's meeting with Pakistani Planning Minister Ahsan Iqbal, according to Pakistan's Press Information Department (PID).
China is also helping Pakistan upgrade and dualize an existing Main Line- 1 (ML-1) railway track, built in the late 19th century. The $6.8 billion, 1,872-kilometer-long ML-1 line connects the southern Pakistani port city of Karachi to Peshawar in the country's northwest.

Topics: Pakistan Railways Pakistan China Ties

ICC Champions Trophy schedule announced, matches split between Pakistan and Dubai

Updated 45 min 18 sec ago
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ICC Champions Trophy schedule announced, matches split between Pakistan and Dubai

  • The tournament is set to begin on 19 February in Karachi, with Pakistan taking on New Zealand
  • ICC says Lahore will host the final match of the cricket contest on 9 March, unless India qualify
Updated 45 min 18 sec ago
Shahjahan Khurram

ISLAMABAD: The International Cricket Council (ICC) on Tuesday unveiled the schedule for the ICC Champions Trophy 2025, which will take place from February 19 to March 9, with matches hosted across Pakistan and Dubai in a hybrid model.
The tournament’s structure follows a compromise decision after India refused to play in Pakistan, citing security concerns. Exercising its rights as the host nation, Pakistan designated Dubai as the neutral venue for India’s matches, ensuring all teams’ participation.
“The ICC Champions Trophy 2025 fixtures and groupings have been announced by the ICC ... with the tournament set to begin on 19 February in Karachi with the final on 9 March,” the global governing body of cricket announced in a statement on its website.
“The eight-team tournament will feature 15 matches, and will be played across Pakistan and in Dubai,” it added. “Lahore will also host the final on 9 March, unless India qualify, in which case it will be played in Dubai. Both the semifinals and the final will have reserve days.”


In Pakistan, Karachi, Lahore and Rawalpindi will host three group-stage games each. Lahore is also set to host the second semifinal.
Meanwhile, Dubai will host all three of India’s group matches and the first semifinal, should India qualify.
The tournament opener on February 19 will feature Pakistan taking on New Zealand in Karachi, while India will face Bangladesh in Dubai on February 20.
This will be the ninth edition of the ICC Champions Trophy and its return after an eight-year hiatus, the last tournament having taken place in England in 2017. The event will feature the top eight teams in world cricket competing for one of the sport’s most prestigious titles.
The hybrid model, while a logistical challenge, aims to strike a balance between accommodating geopolitical realities and ensuring the integrity of the tournament, which cricket fans worldwide await.

Topics: ICC Champions Trophy 2025 Champions Trophy 2025

Pakistan to link up with 2Africa submarine cable from next year, boosting internet speeds

Updated 24 December 2024
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Pakistan to link up with 2Africa submarine cable from next year, boosting internet speeds

  • Pakistanis have been experiencing a months-long internet slowdown, which has sparked a backlash from activists
  • The government has attributed the slowdown to a surge in Virtual Private Network usage, damaged underwater cables
Updated 24 December 2024
Hasaan Ali Khan

ISLAMABAD: Pakistan is set to enhance its internet speeds and connectivity by linking up with the 2Africa submarine cable next year, state media reported on Tuesday.
2Africa, one of the world's largest submarine cable systems, spans 45,000 kilometers and connects 46 locations across Africa, Europe, and the Middle East, utilizing SDM1 technology to offer speeds of up to 180 Tbps.
Millions of Pakistanis have experienced a mysterious, months-long internet slowdown, sparking backlash from activists and business leaders who believe the government is testing a firewall to control online spaces.
The Pakistani government has attributed the slowdown to a surge in Virtual Private Networks (VPNs) usage and damaged underwater cables, while also acknowledging that the country is "undergoing a transition."
"The project, according to Pakistan Telecommunication Authority (PTA), will improve Pakistan’s international telecommunications infrastructure and enhance connectivity," the Associated Press of Pakistan (APP) news agency reported.
"PTA has made significant strides in enhancing international connectivity through the facilitation of Transworld Associate, the landing partner of the 2Africa submarine cable for Pakistan."
The first phase of 2Africa cable project began on Dec. 1, with the Pre-Lay Shore End (PLSE) installation. This key step in deploying submarine cables involves the initial setup and preparation at the shore end before the deep-sea cable laying begins, according to the PTA.
The installation of the deep-sea section of the submarine cable will begin on April 1, 2025 in the second phase of the project, which will involve laying the cable across the ocean floor to connect various regions.
In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.”
The Pakistan Software Houses Association (P@SHA) had also warned that internet slowdowns and the restriction of VPN services could lead to financial losses and closures, and an increase in operational costs for the industry by up to $150 million annually.
Pakistan’s IT exports have been growing at an average of 30 percent per year and are on way to achieving over $15 billion in the next 5 years, according to industry data. But it depends upon the government's ability to ensure continuity of export, fiscal, financial, infrastructure and IT policies, P@SHA said.

Topics: Pakistan internet Pakistan Telecommunication Authority (PTA)

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