Pakistan not seeking debt relief from commercial creditors — finance minister 

Pakistan's Finance Minister Miftah Ismail speaks during the launch ceremony of 'Economy Survey 2021-22' in Islamabad on June 9, 2022. (AFP/File)
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Updated 24 September 2022
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Pakistan not seeking debt relief from commercial creditors — finance minister 

  • Pakistan’s bonds slumped to just half their face value after a UN policy memo urged the cash-strapped country to restructure debt 
  • Miftah Ismail says given the climate-induced disaster in Pakistan, Islamabad is seeking debt relief from bilateral Paris Club creditors 

ISLAMABAD: Pakistan’s finance minister Miftah Ismail on Friday tried to calm creditor fears and said the South Asian country would not seek any relief from commercial banks or Eurobond creditor, after Prime Minister Shehbaz Sharif requested wealthy countries for a “substantial debt relief.” 

Pakistan’s bonds had slumped to just half their face value throughout the day after the Financial Times said a United Nations development agency was urging the cash-strapped country to restructure its debt. 

Devastating floods have inundated large swathes of Pakistan since mid-June, killing more than 1,500 people and causing damages estimated at $30 billion, fanning fears that Pakistan would not meet its debts. 

“Given the climate-induced disaster in Pakistan, we are seeking debt relief from bilateral Paris Club creditors,” Finance Minister Miftah Ismail said on Twitter on Friday. 

“We are neither seeking, nor do we need, any relief from commercial banks or Eurobond creditors.” 

 

 

The bond market reaction on Friday strengthened fears of another default by Pakistan, hammering its international market government debt. 

One of the main sovereign bonds due for repayment in 2024 slumped more than 10 cents to about 50 cents on the dollar, while another due in 2027 fell to about 45 cents. 

Ismail said the country had $1 billion bond due in December which it would “pay on time and in full.” 

A memorandum the United Nations Development Programme (UNDP) is set to hand Pakistan’s government this week says its creditors should consider debt relief in the wake of the floods, according to the Financial Times. 

The memorandum further proposed debt restructuring or swaps, in which creditors would forego some repayments in exchange for Pakistan’s agreement to invest in climate change-resilient infrastructure, the paper said. 

PM Sharif appealed on Friday to rich nations for immediate debt relief, saying what had been done was commendable, but it was far from meeting the country’s needs. 

The prime minister, who along with Ismail was in New York to attend the United Nations General Assembly (UNGA) session, told Bloomberg TV that Pakistan had taken up the debt relief issue with UN Secretary-General Antonio Guterres and world leaders. 

“We have spoken to European leaders and other leaders to help us in Paris club, to get us a moratorium,” he said, referring to rich nation creditors. 

Sharif and finance minister Ismail said they had also taken up the relief issue with the International Monetary Fund (IMF) and the World Bank. 

Ismail said the IMF had “almost agreed” to the request for easing the conditions of Pakistan’s $7 billion program that was resumed in July after being delayed for months. 

Of late, there have been concerns about Pakistan’s debt obligations and its declining foreign exchange reserves due to political uncertainty. 

The floods have come at a time when the Pakistani rupee is on the verge of a record low. The economy is forecast to slow amid floods, policy tightening and efforts to tackle fiscal and external imbalances, according to the Asian Development Bank, which cut growth forecasts to 3.5 percent from 4.5 percent for the 2023 fiscal year this week. 


Pakistan to kickstart post-Hajj flight operations today to bring back pilgrims

Updated 5 sec ago
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Pakistan to kickstart post-Hajj flight operations today to bring back pilgrims

  • State media says Pakistan International Airlines’ flight carrying 307 pilgrims will leave Jeddah for Islamabad
  • Over 88,000 Pakistani pilgrims under government scheme to return to country via 362 flights, says state media

ISLAMABAD: Pakistan will kickstart its post-flight Hajj operations to bring thousands of pilgrims back to the country from today, Tuesday, state-run media reported, adding that they would continue till July 10. 

Pakistan concluded its 33-day pre-Hajj flight operation last month, transporting more than 115,000 pilgrims to Saudi Arabia under both the government and private schemes for the annual Islamic pilgrimage.

This year’s Hajj pilgrimage took place from June 4 to June 9, drawing millions of pilgrims to the holy cities of Makkah and Madinah. Pakistan was among several countries managing large-scale contingents during the annual religious gathering.

“Post-Hajj flight operation to bring back Pakistani pilgrims is starting from Tuesday,” state broadcaster Radio Pakistan reported on Monday, quoting Secretary Religious Affairs Dr. Syed Ata ur Rehman. 

Sharing details, Rehman said Pakistan International Airlines’ flight PK-732 carrying 307 pilgrims will leave Jeddah for Islamabad. 

“Similarly, the first post-Hajj flight from Madinah PK-7030 will depart for Lahore on Thursday,” Radio Pakistan said. “The national flag carrier will airlift 307 pilgrims.”

The Pakistani official said the flight operation would continue till July 10 during which a total of over 88,000 pilgrims under the government scheme will be transported to Pakistan via 362 flights.

“Meanwhile, Dr. Syed Ata ur Rehman highlighted that elaborate arrangements have been made for smooth transportation of the pilgrims back to their homeland,” the state broadcaster said. 

Prime Minister Shehbaz Sharif on Monday thanked Saudi King Salman and Crown Prince Mohammed bin Salman for the Kingdom’s “exceptional organization” of Hajj 2025. 

“Thank you for making this spiritual experience more comfortable and memorable for all those who performed Hajj this year,” Sharif wrote on social media platform X. 


Pakistan to kickstart post-Hajj flight operations today to bring back pilgrims

Updated 6 min 39 sec ago
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Pakistan to kickstart post-Hajj flight operations today to bring back pilgrims

  • State media says Pakistan International Airlines’ flight carrying 307 pilgrims will leave Jeddah for Islamabad
  • Over 88,000 Pakistani pilgrims under government scheme to return to country via 362 flights, says state media

ISLAMABAD: Pakistan will kickstart its post-flight Hajj operations to bring thousands of pilgrims back to the country from today, Tuesday, state-run media reported, adding that they would continue till July 10. 

Pakistan concluded its 33-day pre-Hajj flight operation last month, transporting more than 115,000 pilgrims to Saudi Arabia under both the government and private schemes for the annual Islamic pilgrimage.

This year’s Hajj pilgrimage took place from June 4 to June 9, drawing millions of pilgrims to the holy cities of Makkah and Madinah. Pakistan was among several countries managing large-scale contingents during the annual religious gathering.

“Post-Hajj flight operation to bring back Pakistani pilgrims is starting from Tuesday,” state broadcaster Radio Pakistan reported on Monday, quoting Secretary Religious Affairs Dr. Syed Ata ur Rehman. 

Sharing details, Rehman said Pakistan International Airlines’ flight PK-732 carrying 307 pilgrims will leave Jeddah for Islamabad. 

“Similarly, the first post-Hajj flight from Madinah PK-7030 will depart for Lahore on Thursday,” Radio Pakistan said. “The national flag carrier will airlift 307 pilgrims.”

The Pakistani official said the flight operation would continue till July 10 during which a total of over 88,000 pilgrims under the government scheme will be transported to Pakistan via 362 flights.

“Meanwhile, Dr. Syed Ata ur Rehman highlighted that elaborate arrangements have been made for smooth transportation of the pilgrims back to their homeland,” the state broadcaster said. 

Prime Minister Shehbaz Sharif on Monday thanked Saudi King Salman and Crown Prince Mohammed bin Salman for the Kingdom’s “exceptional organization” of Hajj 2025. 

“Thank you for making this spiritual experience more comfortable and memorable for all those who performed Hajj this year,” Sharif wrote on social media platform X. 
 


Pakistan likely to hike defense spending but slash overall budget in 2025-26

Updated 10 June 2025
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Pakistan likely to hike defense spending but slash overall budget in 2025-26

  • Media reports say government likely to present Rs17.6 trillion ($62.45 billion) budget for budget 2025-26
  • Analysts expect increase of around 20 percent in defense budget likely offset by cuts in development spending

ISLAMABAD: Pakistan will unveil its annual federal budget for the coming fiscal year later on Tuesday, seeking to kickstart growth while finding resources for an expected hike in defense expenditure following the conflict with India last month.

Islamabad will also have to contend with remaining within the discipline of its International Monetary Fund program and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market.

Media reports say the government is likely to present a 17.6 trillion rupee ($62.45 billion) budget for the fiscal year beginning July 1, down 6.7 percent from this fiscal year. It has projected a fiscal deficit of 4.8 percent of GDP, against a targeted 5.9 percent deficit in 2024-25, the reports say.

Analysts said they expect an increase of around 20 percent in the defense budget, likely offset by cuts in development spending.

Pakistan allocated 2.1 trillion Pakistani rupees ($7.45 billion) for defense in the outgoing fiscal year, including $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defense budget.

India’s defense spending in its 2025–26 (April-March) fiscal year was set at $78.7 billion, a 9.5 percent increase from the previous year, including pensions and $21 billion earmarked for equipment. It has indicated it will step up expenditure following the May conflict with Pakistan.

The government of Pakistani Prime Minister Shehbaz Sharif has projected 4.2 percent economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7 percent, against an initial target of 3.6 percent set in the budget last year.
Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8 percent and 6.0 percent growth is expected in 2025, according to the Asian Development Bank.

RATE CUTS NOT ENOUGH

Expansion of the economy should be aided by a sharp drop in the cost of borrowing, the government says, after a succession of interest rate cuts by the central bank. But economists warn that monetary policy alone may not be enough, with fiscal constraints and IMF-mandated reforms still weighing on investment.
Finance Minister Muhammad Aurangzeb said on Monday that he wanted to avoid Pakistan’s boom and bust cycles of the past.

“The macroeconomic stability that we have achieved, we want to absolutely stay the course,” he said. “This time around we are very, very clear that we do not want to squander the opportunity.”

The budget is expected to prioritize expanding the tax base, enforcing agriculture income tax laws, and reducing government subsidies to industry, to meet the terms of a $7 billion IMF bailout signed last summer. Just 1.3 percent of the population paid income tax in 2024, according to the tax authorities, with agriculture and the retail sector largely outside of the tax net.

The IMF has urged Pakistan to widen the tax base through reforms which include taxing agriculture, retail, and real estate.

Ahmad Mobeen, senior economist at S&P Global Market Intelligence, said that he expected the revenue target for 2025-26 will be missed.

“The shortfall will mostly be owing to lack of optimal implementation of announced measures as well as absence of meaningful structural reforms to widen the tax net in general,” said Mobeen.

 ($1 = 281.8400 Pakistani rupees)
 


Pakistan’s Punjab says ongoing heat wave likely to continue till Thursday

Updated 10 June 2025
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Pakistan’s Punjab says ongoing heat wave likely to continue till Thursday

  • Pakistan ranks among top 10 countries most vulnerable to climate change, faces irregular weather patterns
  • Heat wave may be severe in Bahawalpur, Rahim Yar Khan, Dera Ghazi Khan and Multan, says state broadcaster

ISLAMABAD: The Provincial Disaster Management Authority (PDMA) in Pakistan’s Punjab said this week that the ongoing heat wave in the country’s most populous province is likely to continue till Thursday. 

Pakistan’s Meteorological Department last week forecast that the ongoing heat wave in the country will continue throughout the Eid Al-Adha holidays . It said day temperatures are likely to remain 5°C to 7°C above normal in the upper half (central & upper Punjab, Islamabad, Khyber-Pakhtunkhwa, Kashmir, Gilgit-Baltistan).

Pakistan ranks among the top ten countries most vulnerable to climate change and has faced increasingly frequent extreme weather events in recent years, including deadly heatwaves and devastating floods.

“Provincial Disaster Management Authority Punjab has cautioned that current heat wave will likely to continue in the province till Thursday,” state broadcaster Radio Pakistan said in a report on Monday. “He said that the heat wave may be severe in Bahawalpur, Rahim Yar Khan, Dera Ghazi Khan and Multan of South Punjab.”

Director General of PDMA Punjab Irfan Ali Kathia said that under the chief minister’s directions, the supply of water is being ensured in the Cholistan desert region located in southern Punjab. He warned that special care of the children, elderly and the sick should be taken during this time period.

Pakistan experienced its most recent heatwave in May but no loss of life was reported.
In June 2024, nearly 700 people died in less than a week during a severe heatwave in the country, with most fatalities reported in the port city of Karachi and other parts of the southern Sindh province.

A similar heatwave in 2015 claimed over 2,000 lives in Pakistan’s largest city Karachi alone, while catastrophic floods in 2022 left more than 1,700 people dead and displaced over 33 million across the country.


From Pakistan to the Middle East: Art director Hashim Ali champions regional creative expansion

Updated 10 June 2025
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From Pakistan to the Middle East: Art director Hashim Ali champions regional creative expansion

  • Cultural overlaps, thirst for diverse aesthetics reshaping industries in Gulf are offering vast opportunities for Pakistanis, Ali says
  • Artist says felt “empowered” while directing Pakistani fashion and Sufi music show at Qatar’s Museum of Islamic Art in January

LAHORE: When one of Pakistan’s most renowned art directors Hashim Ali landed in the Qatari capital of Doha earlier this year, he wasn’t quite prepared for how much the city and its creative scene had transformed since he last visited around seven years ago.

Ali, who directed a Pakistani fashion and Sufi music show at Qatar’s Museum of Islamic Art in January, was mesmerized by the cultural transformation in the Gulf nation, balancing its traditional heritage with modernization and global influences. 

In recent years, Qatar has established numerous museums, art galleries, and heritage centers, including the Museum of Islamic Art, Mathaf: Arab Museum of Modern Art, and the National Museum of Qatar. The country has also emerged as a major player in the global art world, with significant investments in the arts and culture sector. 

Looking at the transformation, Ali said the time was ripe for Pakistani designers and artists to expand their reach to the Gulf, where cultural overlaps and a hunger for diverse aesthetics are reshaping creative industries.

“Everybody who asks me that we want to expand our business, I say expand to the Middle East because the way that region is growing, it’s not just the buildings, it’s the mindset and the heart,” Ali, who provides production design, art direction and styling services to various industries in Pakistan, told Arab News.

The 34-year-old art director, who graduated in Visual Communication Design from Lahore’s National College of Arts (NCA), said his experience in Doha was quite “empowering” as he was able to present his hometown of Lahore to the world.

“You had this showcase of Pakistan, and the entire space was turned into a Chahar Bagh [Persian quadrilateral garden] for the night with oil lamps and flowers, all the napkins were hand-done from Lahore, we got block printers involved who did the Mughal motifs on them,” Ali said. 

“The entire experience was so almost empowering that you are bringing parts of Lahore to the world and you’re showing the world that we just not only do Sufi music, we do great fashion of different kinds.”

Ali, known for creating intricate and stunning sets, said Middle Eastern creatives responded to Pakistani culture because of the cultural and religious similarities between the two regions.

“So, the collaboration, it’s set in stone that it’s going to happen,” he added.