Pakistan, IMF fail to reach staff-level agreement – finance secretary

A participant stands near a logo of IMF at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, on October 12, 2018. (REUTERS/File)
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Updated 09 February 2023
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Pakistan, IMF fail to reach staff-level agreement – finance secretary

  • IMF asks for additional time to reach staff-level agreement as some issues between both sides remain unsettled, confirms official
  • Lender shares MEFP, a key document that leads to agreement, with government after Islamabad agrees to prior actions

ISLAMABAD: After an entire day of suspense, talks between a cash-strapped Pakistan and the International Monetary Fund (IMF) concluded on Thursday without the two sides reaching a staff-level agreement, secretary finance Hamed Yaqoob Sheikh confirmed.  

The two sides have been negotiating since the beginning of the month for the revival of a stalled $6.5 billion loan program. The IMF mission, which was scheduled to leave Pakistan on February 10, was involved in day-long talks with government officials to find a breakthrough that would see Pakistan receive the next tranche of $1.1 billion from the lender.

Pakistan faces a crippling dollar liquidity crunch amid the rapid depletion of its official foreign currency reserves which currently stand at $2.916 billion. The situation has forced the government to restrict even the import of essential items, including medical equipment and industrial raw material, which has had a negative impact on Pakistan's overall economy. 

The resumption of the IMF loan is expected to ease the situation while making other bilateral and multilateral sources of funding available to the country. 

“The staff-level agreement between Pakistan and the IMF has not been reached yet,” the secretary-finance told a select group of journalists after negotiations with the global lender concluded.  

"The IMF has shared the MEFP (a key document indicating a movement toward a likely agreement) with the government," he said. He added that both sides have agreed on certain prior actions before the staff-level agreement. 

Implementing the prior actions means the government would hike electricity and gas prices to abolish the energy sector debt. This would generate additional revenue through new taxes to overcome the primary deficit. 

"Some points between the IMF and Pakistan are yet to be settled, which will be decided from Washington [the IMF headquarters],” he said, adding that the staff-level agreement would be signed after approval from the IMF's headquarters.  

"The IMF review mission has sought additional time to reach a staff-level agreement," he said. Sheikh added that the IMF mission said “it was beyond their mandate” to accept some suggestions of the government without the approval of the headquarters. 

He said the IMF mission would issue a detailed statement on the negotiations, following which Finance Minister Ishaq Dar will brief the media.  

The IMF staff mission was in Pakistan from January 31 to February 9 following a request from Islamabad for negotiations to revive the bailout program. 

The finance secretary claimed the government and the IMF have reached an agreement over the required external financing of Pakistan for the remaining fiscal year. These additional required inflows will be coming from multilateral creditors, friendly countries, and commercial loans, he said. 

Sheikh did not specify the amount.


Pakistan restores train service from restive Balochistan province after bombing at train station

Updated 6 sec ago
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Pakistan restores train service from restive Balochistan province after bombing at train station

  • At least 24 people were killed in a bomb blast on Saturday at a railway station in the city of Quetta
  • In August, over 50 people were killed in Balochistan in militants attacks on police stations, railway lines, highways.

QUETTA: A train service between the southwestern city of Quetta and Peshawar in Pakistan’s northwest resumed on Friday after being shut for four days following a deadly bombing at a railway station.
At least 24 people were killed and more than 40 injured in a bomb blast on Saturday at a railway station in the city of Quetta in the province of Balochistan, which is grappling with a surge in strikes by separatist ethnic militants that has raised security concerns for projects aiming to develop the province’s untapped mineral resources.
Imran Hayat, Divisional Superintendent of Pakistan Railways Quetta Division, said train operations from Balochistan to the rest of the country had been restored, with the Quetta-Peshawar bound Jaffar Express departing from Quetta Railway Station on Friday morning amid tight security at the railway station.
“We had suspended our service for four days following the threat of attacks on the train service in Balochistan,” Hayat told Arab News. 
“Today, the Quetta-Peshawar bound Jaffar Express departed from Quetta Railway Station at 9am and we have resumed service for Karachi and Chaman amid stringent security measures across the railway station.” 
The Baloch Liberation Army (BLA), a separatist militant group, claimed responsibility for Saturday’s attack.
The BLA seeks independence for Balochistan, a province of about 15 million people that borders Afghanistan to the north and Iran to the west. The BLA is the biggest of several ethnic insurgent groups battling the government, saying it unfairly exploits the province’s rich gas and mineral resources. The government denies this. 
In August, over 50 people were killed in Balochistan after separatist militants attacked police stations, railway lines and highways.
The assaults in August were the most widespread in years by militants fighting a decades-long insurgency to win secession for the province, home to major China-led projects such as a port and a gold and copper mine.


Pakistan deploys mobile air monitoring stations in Lahore amid toxic smog

Updated 15 November 2024
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Pakistan deploys mobile air monitoring stations in Lahore amid toxic smog

  • Each station costs over $322,000, equipped for real-time air quality data
  • Smog has enveloped Lahore, Pakistan’s cultural capital, since last month

ISLAMABAD: Authorities in Pakistan’s populous Punjab province have deployed five mobile air quality monitoring stations in Pakistan’s eastern Lahore city, each costing over Rs90 million ($322,000), amid worsening smog conditions, state-run media reported on Thursday.
Lahore, consistently ranked as the world’s most polluted city in live IQAir rankings in recent weeks, is facing hazardous air quality due to cold atmospheric conditions trapping dust, vehicle emissions and smoke from illegally burned fires.
The toxic smog, which has spread to 17 other districts in Punjab, has caused over 40,000 cases of respiratory illnesses this month, according to health officials, prompting authorities to close schools until November 17.
“The Punjab government has established five mobile air quality monitoring stations in Lahore to track the city’s air quality index,” Radio Pakistan reported.
It quoted the Punjab Environment Protection Department official Farooq Alam as saying the mobile stations had been placed in highly polluted areas, such as the Defense Housing Authority, Model Town, Gulberg, Bhatta Chowk and near Shimla Pahari.
Alam told Radio Pakistan that “each mobile monitoring station costs over ninety million rupees,” adding that they are equipped with advanced technology to collect real-time air quality data.
The Punjab administration official, however, did not mention any sustainable solution to the worsening smog condition, which has become a regular feature during the winter season.
Meanwhile, Punjab’s Provincial Disaster Management Authority has urged people to wear face masks as a precautionary measure against smog and to avoid venturing out unnecessarily.
The United Nations children’s agency has warned that the health of 11 million children in Punjab is at risk due to air pollution.
According to a study by the University of Chicago’s Energy Policy Institute last year, pollution could reduce life expectancy in the region by more than five years.


New polio case reported in Pakistan, taking 2024 tally to 49

Updated 15 November 2024
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New polio case reported in Pakistan, taking 2024 tally to 49

  • In early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases
  • This year, 24 cases reported in Balochistan, 13 in Sindh, 10 in KP and one each in Punjab and Islamabad

ISLAMABAD: Pakistan’s anti-polio program said on Friday the country had reported a new case of the polio virus in the southwestern Balochistan province, taking the nationwide tally to 49 this year.
A new case was reported from Jaffarabad in Balochistan, according to updated figures on the website of the Pakistan Polio Eradication Program. 
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. Starting from late 2018, Pakistan saw a resurgence of cases and increased spread of polio, highlighting the fragility of gains achieved in the preceding three years.
“Genetic sequencing of the samples collected from the child is under process,” the polio program said in a statement.
This year, 24 cases have been reported in Balochistan, 13 in Sindh, 10 in Khyber Pakhtunkhwa and one each in Punjab and the federal capital of Islamabad. In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021. 
Pakistan’s polio eradication program began in 1994, and the number of cases has declined dramatically since then. 
But Pakistan continues to face challenges in its fight against polio, including militancy, with polio workers regularly targeted by attacks, particularly in the northwestern KP province.
The polio program has adapted to respond to climate disasters such as floods, but continues to face disruptions. There are also gaps in supplementary immunization activities, especially in areas where the virus is still present.


Pakistan calls for renewed international support for UN agency for Palestinian refugees

Updated 28 min 25 sec ago
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Pakistan calls for renewed international support for UN agency for Palestinian refugees

  • Israel’s parliament voted last month to ban UNRWA from operating within Israel and occupied East Jerusalem
  • Almost all of Gaza’s population of more than two million people are dependent on aid and services from UNRWA

ISLAMABAD: Pakistan on Thursday urged the international community to renew its support for the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), following the Israeli parliament passing a law last month that will ban the body from operating in the country when it takes effect in late January.
Israel’s parliament voted last month to ban the UNRWA from operating within Israel and occupied East Jerusalem, crippling its ability to work in Gaza and the Israeli-occupied West Bank. Almost all of Gaza’s population of more than two million people are dependent on aid and services from the agency.
The move has faced widespread condemnation, with UNRWA warning the new law could see aid supply chains “fall apart” in the coming weeks. Israel has defended the move, repeating its allegation that a number of the agency’s staff were involved in Hamas’s Oct. 7 attacks last year, which killed 1,200 people.
UN Secretary-General Antonio Guterres has told Israel that replacing UNRWA in Gaza and the West Bank would be Israel’s responsibility as the occupying power.
In a statement delivered at the UN Fourth Committee meeting, First Secretary at the Pakistani Mission to the UN, Ansar Shah, underlined the importance of “concrete measures to ensure that UNRWA remains operational and continues its critical humanitarian work for Palestinian refugees.”
“He called on all UN member states to provide political, financial, and operational support to UNRWA and stressed that sustaining and expanding the agency’s operations is essential to mitigating the harmful effects of Israel’s actions in the region,” state broadcaster Radio Pakistan said.
“Pakistan strongly condemns the Israeli attempts to dismantle UNRWA’s operations, which is a blatant violation of the UN Charter, international law, and the provisional measures set by the International Court of Justice (ICJ).”
Shah said the international community must step in to prevent the collapse of UNRWA, which would leave millions of Palestinians without access to essential services like education, health care, and social support.
Founded in 1949, UNRWA works in Gaza, the West Bank, Syria, Lebanon and Jordan, initially caring for the 700,000 Palestinians who were forced from or fled their homes after the creation of the state of Israel. Over the decades, the agency has grown to become the biggest UN agency operating in Gaza.
Since the war in Gaza began in October last year, the agency says it has distributed food parcels to almost 1.9 million people and also offered nearly six million medical consultations across the enclave over the course of the conflict.
More than 200 UNRWA staff have been killed in Israeli attacks since October 2023 in the course of those duties, according to the agency.


Pakistan’s defense minister reports ‘death threat’ to British police, received during subway ride

Updated 14 November 2024
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Pakistan’s defense minister reports ‘death threat’ to British police, received during subway ride

  • Individuals who heckled Khawaja Asif recorded a video, warning he could be stabbed with a knife
  • Pakistani ministers have also complained of harassment by Imran Khan’s followers in the past

ISLAMABAD: Defense Minister Khawaja Asif has lodged a report with the British police over the alleged death threat and abuses hurled at him during a train ride in London, the Pakistan High Commission in the United Kingdom said on Thursday.
A viral video surfaced on social media a day earlier, showing an unidentified man hurling abuses at the Pakistani minister in the native Punjabi language, saying, “Take him away before someone stabs him with a knife.”
While Asif chose to ignore the incident and got off the next stop, he visited the Pakistan High Commission on Thursday to formally report the “death threat” to the UK police and demanding an investigation.
“Khawaja Muhammad Asif lodged a report of the train incident with the local police at the Pakistan High Commission,” said a statement released by the Pakistani diplomatic facility. “He informed the police about the details of the knife threat and harassment incident on the train.”
The incident that took place on the Elizabeth Line is now being investigated by the London Transport police, it added.
“I am on a private visit to London,” Asif was quoted as saying. “I was going to Reading via the Elizabeth Line with a loved one.”
He added that a family of three to four persons “harassed and threatened to kill with a knife and used abusive language” against him while making the video.
“I do not know anyone involved in the incident,” the Pakistan High Commission quoted him as saying. “London Transport Police should use CCTV footage to track down the suspects.”
Asif further said death threats and harassment were a “source of shame” for 1.7 million Pakistanis residing in the UK apart from British citizens.
This is not the first time Pakistani ministers belonging to Prime Minister Shehbaz Sharif’s coalition government, led by the Pakistan Muslim League Nawaz party, have been heckled or harassed in the UK.
In the past, Pakistan Information Minister Ataullah Tarar and Punjab Minister Marriyum Aurangzeb have endured the same treatment allegedly by the Pakistan Tehreek-e-Insaf party supporters of jailed former PM Imran Khan.