Pakistan expects $10 billion from global lenders, friendly countries to shore up reserves

A Pakistani dealer counts US dollars at a currency exchange shop in Karachi on October 9, 2018. (AFP/File)
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Updated 17 July 2022
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Pakistan expects $10 billion from global lenders, friendly countries to shore up reserves

  • Finance minister says Pakistan to receive over $6 billion from World Bank, Asian Development Bank
  • Last week Pakistan reached an IMF agreement paving the way for disbursement of $1.17 billion 

KARACHI: Pakistan is expected to receive $10 billion from “friendly countries” and global lenders this fiscal year, Finance Minister Miftah Ismail said on Saturday, days after the South Asian nation reached an agreement with the International Monetary Fund (IMF).

Depleting reserves, a widening current account deficit and the depreciation of the Pakistani rupee against the US dollar, have left Pakistan facing a balance of payment crisis and an inflation rate of 21.3 percent.

As it reached a staff level agreement with the IMF last week — which would pave the way for the disbursement of $1.17 billion under a stalled $6 billion program — Pakistan hopes to receive additional external funding from its Middle Eastern allies such as Saudi Arabia and the UAE, multilateral creditors and global lenders.

“We think one of our friend countries will give $1.2 billion in financing for oil payment on deferred payment (basis), one country would invest $1.5 billion to $2 billion in stocks on G2G basis, and one friendly country will facilitate with supplies of gas on deferred payment,” Finance Minister Miftah Ismail told reporters.

Global financial institutions like the World Bank and the Asian Development Bank (ADB), are expected to provide Pakistan with an additional $6 billion in financing in the fiscal year 2022-23.

“My expectation is that we will get around $3.5 billion from the Asian Development Bank, $2.5 billion from the World Bank, that will make $6 billion. Apart from this, Asian Infrastructure Investment Bank will extend around $400-500 million, and also expect funding enhancement from Islamic Development Bank,” Ismail said.  

IMF spokesperson Gerry Rice said in a press briefing on Friday that Pakistan will immediately receive $1.17 billion after approval from the IMF board, which is going to meet “anytime between three to six weeks.”  

Pakistan secured a $6 billion IMF program in 2019, but less than half of that amount has been disbursed to date.

The expected tranche will bring total IMF disbursements to Pakistan to about $4.2 billion.

“We’re hoping this will help to stabilize the economy,” Ismail said, as the IMF deal is also expected to help take the load off the rupee, which is trading at historic high levels against the US dollar and crossed the Rs210 mark last month.

“We expect that after signing the agreement with IMF in July, the pressure on the rupee will ease off because last month $3.7 billion energy imports were made, we believe that this would come down to around $2.7 billion,” Ismail said. “This would help us to reduce import bill by $1 billion on energy import alone.”

“We think that if we reduce our imports from $6.5 billion, it would ease pressure on the rupee and the rupee may appreciate.”


Pakistan reports first Congo virus death of 2025 in Karachi

Updated 55 min 23 sec ago
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Pakistan reports first Congo virus death of 2025 in Karachi

  • Virus is transmitted through tick bites or direct contact with blood of infected animals
  • Pakistan’s southwestern province of Balochistan reported 23 Congo virus cases in 2024

KARACHI: A 42-year-old man lost his life after contracting the Crimean-Congo Hemorrhagic Fever (CCHF), marking the first confirmed fatality from the virus in Pakistan’s southern Sindh province this year, the health department said on Wednesday.

The fatality rate for the Congo virus ranges from 10 percent to 40 percent, depending on the quality of health care, timeliness of treatment and the patient’s overall health, according to the World Health Organization.

The virus, which is endemic in parts of Africa, Europe and Asia, is primarily transmitted through tick bites or contact with the blood or tissues of infected animals.

“First case of Congo virus [has been] reported in Sindh,” the Sindh Health Department said in a statement on Wednesday.

“42-year-old male was a resident of District Malir,” it continued. “The test report came out positive on June 16 and the patient passed away on June 17.”

Pakistan’s southwestern Balochistan province reported 23 Congo virus cases in 2024, with five deaths since January last year.

Local medical practitioners said most cases were diagnosed during the summer, when the likelihood of the virus spreading increases, particularly around the Eid Al-Adha festival.

The Islamic holiday, marked by the mass slaughter of animals, typically leads to greater human-animal interaction and exposure to infected livestock.

Pakistan witnessed its first case of Congo virus in 1976 and remained a major victim for years, according to the National Library of Medicine.

The country faces major challenges in combating Congo virus every year due to its specific geographical position and a majority of the population being involved with animal husbandry, it added.

There is no approved vaccine for its prevention.

The European Medicines Agency in May 2024 approved a Phase I clinical trial in Sweden for a DNA-based vaccine candidate, N-pVAX1, targeting the Congo virus.

Separately, the University of Oxford in August 2023 launched a Phase I trial of its ChAdOx2 CCHF vaccine, based on the Oxford/AstraZeneca Covid-19 platform, to assess safety and immune response.


Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi

Updated 18 June 2025
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Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi

  • Pakistan evacuates the injured sailor from a Liberian-flagged tanker with an all-Indian crew
  • Rare humanitarian gesture follows recent Pakistan-India war amid strained diplomatic ties

ISLAMABAD: Pakistan on Wednesday evacuated an injured Indian sailor from an oil tanker in the Arabian Sea, in a rare humanitarian gesture weeks after the two countries fought a brief four-day war that further strained already tense relations.

The medical evacuation was coordinated by the Pakistan Navy’s Joint Maritime Information and Coordination Center (JMICC), which received a distress call from the Liberian-flagged oil and chemical tanker MT HIGH LEADER, carrying an all-Indian crew.

The Pakistan Maritime Security Agency (PMSA) deployed a vessel and transferred the injured crew member to a hospital in Karachi for emergency treatment.

“The successful medical evacuation is yet another testament to the operational readiness and responsiveness of Pakistan’s maritime safety apparatus,” the Pakistan Navy said in a statement.

“The swift execution reflects Pakistan Navy’s resolve to fulfill its international obligations for the safety of life at sea, irrespective of the nationality of the seafarers involved,” it added.

The incident comes at a time of high diplomatic friction between the two nuclear-armed neighbors.

Last month’s military confrontation, involving missile, drone and artillery exchanges, marked one of the most serious escalations in recent years.

Pakistan has repeatedly called for the revival of a composite dialogue process to resolve long-standing issues, including the Kashmir dispute, cross-border militancy and a water-sharing arrangement under the Indus Waters Treaty.

India, however, has resisted any engagement so far.

The JMICC, which coordinated the evacuation, serves as Pakistan’s central maritime emergency response hub and regularly liaises with both national and international stakeholders.


Pakistan reduces sales tax on imported solar panels from 18 percent to 10 percent amid parliamentary pushback

Updated 34 min 47 sec ago
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Pakistan reduces sales tax on imported solar panels from 18 percent to 10 percent amid parliamentary pushback

  • The government proposed 18% GST on imported solar panels during budget 2025-26
  • Pakistan imported 17 gigawatts of solar panels in 2024, twice the previous year’s volume

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Wednesday said the general sales tax (GST) on imported solar panels had been reduced from 18% to 10% for the current year, following concerns raised by a parliamentary finance body.

The Senate Standing Committee on Finance and Revenue had urged the government a day earlier to withdraw the proposed 18% GST on imported solar panels, noting that some stakeholders had begun stockpiling equipment ahead of the federal budget to avoid the new levy.

The country’s proposed federal budget for the 2025-26 fiscal year included an 18% GST on the import and local supply of solar panels and related equipment, prompting concern from industry stakeholders and clean energy advocates.

Pakistan imported 17 gigawatts (GW) of solar panels in 2024, twice the volume recorded the year before, to meet rising consumer demand, according to the Global Electricity Review 2025.

“The 18 percent on top of 46% was an additional burden,” Dar told the National Assembly.

“So, regarding this, after consultations and deliberations, we have decided that this year we will keep a 10% sales tax and not 18%.”

Dar highlighted how this was the most debated subject after the budget was announced.

He also explained that around 46% of components used in solar installations in Pakistan were imported while the remaining 54% including inverters and other equipment were locally sourced and already subject to standard taxation.

Solar energy has supplied 25% of Pakistan’s grid electricity so far this year, placing the country among fewer than 20 globally that generate at least a quarter of their monthly power from solar farms.

Industry stakeholders and clean energy activists had warned that the added cost in tax could slow the rapid adoption of rooftop solar systems by households and businesses, potentially undermining national targets for expanding the share of renewables in the country’s energy mix.

Pakistan increased its solar electricity generation at a rate more than three times the global average in 2025, driven by a surge in solar capacity imports that were over five times higher than in 2022, according to data from Ember, a UK-based energy think tank.

This rapid growth in both capacity and output has propelled solar energy from being the country’s fifth-largest power source in 2023 to the top spot in 2025.


Pakistan unveils draft tariff policy to drive export-led growth

Updated 18 June 2025
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Pakistan unveils draft tariff policy to drive export-led growth

  • The policy plans to phase out Additional Customs Duties, rationalize the tariff structure
  • It aims to reduce tariffs on raw materials, deliver $700 million in benefits to industries

ISLAMABAD: Pakistan on Wednesday unveiled a draft National Tariff Policy 2025-30 at a regulatory reforms conference, aiming to shift the country toward an export-led growth model by overhauling its trade tariff structure to boost industrial productivity, investment and competitiveness.

The event was organized by the Board of Investment (BoI), and attended by senior government officials, diplomats and private sector representatives.

The policy sets out sweeping reforms, including the phasing out of Additional Customs Duties (ACDs) within four years, elimination of Regulatory Duties (RDs) and the 5th Schedule within five years, and the creation of a simplified four-tier Customs Duty structure of 0 percent, 5 percent, 10 percent and 15 percent.

Key sectors expected to benefit include textiles, engineering, pharmaceuticals and information technology, with the policy designed to lower production costs and attract businesses.

“The National Tariff Policy 2025-30 is designed to create a predictable, transparent and investment-friendly tariff structure,” said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, at the conference.

“By facilitating duty-free access to raw materials, phasing out ACDs and RDs and supporting nascent and green industries, this policy paves the way for innovation, employment generation and sustained economic growth.”

Afzal said implementation will begin with tariff reductions on approximately 7,000 tariff lines, mainly raw materials and intermediate goods, expected to deliver an estimated Rs200 billion ($700 million) in benefits to trade and industry.

“These reforms will enable Pakistan’s industries to scale, compete globally and shift toward higher value-added exports,” he added. “With these changes, we anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity and enhanced investor confidence.”

According to an official statement issued by the BoI, the participants lauded the government’s efforts to streamline regulation and modernize trade facilitation, calling the draft policy a significant step toward Pakistan’s long-term economic transformation.
 


Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 

Updated 18 June 2025
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Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 

  • Meeting in Turkiye will focus on coordinated diplomacy to de-escalate Iran-Israel standoff, address aid crisis in Gaza
  • For Pakistan, a direct neighbor of Iran, prolonged clash threatens border security, could aggravate sectarian tensions

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Wednesday urged global powers to broker a ceasefire between Iran and Israel, as Deputy Prime Minister Ishaq Dar prepares to attend a meeting of foreign ministers of member states of the Organization of Islamic Cooperation (OIC).

The meeting in Turkiye from June 21-22 is expected to focus on coordinated diplomatic steps to de-escalate the Iran-Israel standoff and address the continuing humanitarian crisis in Gaza.

Thousands of people were fleeing Tehran on Wednesday after Israeli warplanes bombed the city overnight and the air fight between the two Middle Eastern powers entered the sixth day amid media reports US President Donald Trump was considering options that include joining Israel in attacking Iranian nuclear sites.

“I feel that ... global countries should try hard for a ceasefire,” Sharif told a federal cabinet meeting, calling the escalation “regrettable” and condemning what he described as Israel’s aggression against Pakistan’s neighboring “brotherly” country of Iran. 

Iran launched retaliatory strikes last week after Israeli forces attacked sites linked to Iran’s nuclear and military infrastructure on June 13. Iranian officials say at least 224 people, mostly civilians, have been killed, while Israel has reported over 20 deaths.

The latest escalation follows months of hostilities between Israel and Iranian-backed groups in Lebanon, Syria and Yemen, which intensified after the war in Gaza was launched late in 2023. Regional powers fear a direct confrontation could spiral into a broader conflict involving major oil shipping lanes and global energy supplies.

For Pakistan, a close Iranian neighbor and a longtime opponent of Israel, a prolonged conflict risks disrupting border security, inflaming sectarian tensions at home, and possibly putting it in a tight spot with other Arab allies and the West.

Pakistan does not recognize Israel and has historically aligned itself with the Palestinian cause of an independent state.