World Bank links approval of $450 million Pakistan loan with IMF review

A man is walking in front of the World Bank Building in Washington DC on September 25, 2020. (Photo courtesy: AFP/File)
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Updated 12 May 2023
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World Bank links approval of $450 million Pakistan loan with IMF review

  •  Pakistan and IMF have been in ninth review since February, aiming to resume stalled funding of $1.1 billion from $6.5-billion bailout
  • IMF funding is crucial for Pakistan to avert default on its external payment obligations during a balance of payment crisis

KARACHI: The World Bank has linked the approval of a $450 million loan for Pakistan with the completion of the ongoing ninth review of the international monetary fund’s $6.7 billion bailout program, the global lender has said. 

The second Resilient Institution for Sustainable Economy (RISE-II) is a policy loan for budgetary support for which the government of Pakistan is expected to receive $450 million from the World Bank. The program was expected to be approved in 2021 but has been delayed.

Nearly 100 days have passed since the last IMF staff level mission to Pakistan and the two sides have yet to strike a preliminary deal - a key step to secure the next funding tranche of a bailout deal signed in 2019. That is the longest such gap since at least 2008.

Meanwhile foreign exchange reserves at $4.457 billion cover barely a month's worth of imports.

A World Bank spokesperson told Arab News this week that considerable progress had been made and the RISE program would now be linked to the completion of the country’s ongoing IMF review. 

“The World Bank continues to work with the Government of Pakistan on the preparation of the RISE-II Development Policy Operation, including discussions around supported policy actions on which there has been considerable progress recently; the adequacy of the macroeconomic framework; the financing amount; and the timeline for approval, in particular, as it relates to the completion of the ongoing IMF review,” WB spokesperson Mariam Altaf said in an emailed response to Arab News.

The global lender had approved $500 million in financing under the RISE-I program for Pakistan to mitigate the impacts of the COVID-19 pandemic, while RISE-II was approved in 2020 to help Pakistan strengthen its fiscal management, promote transparency, increase private sector growth, and undertake foundational reforms in the energy sector to transition to low-carbon energy. 

RISE-II also supports foundational reforms to improve the financial viability of the power sector through a reduction and ultimate elimination of the sector’s circular debt, which was initiated under RISE-I. 

It further aims to improve the investment climate through the implementation of a nationwide harmonized General Sales Tax (GST), a competitive national tariff policy, an inclusive digital payments system that allows fintech companies to undertake electronic money operations, and a better-regulated banking system, according to a World Bank document. 

The South Asian nation is currently negotiating with the IMF for the conclusion of the ongoing review ahead of the fiscal budget for the next year, expected in the first week of June 2023. 

The talks between the Fund and Pakistani authorities are ongoing since November 2022 but no progress is in sight yet, as the IMF calls for more prior actions despite an energy tariff hike, the presentation of a mini budget, and the arrangement of additional financing from friendly countries like China, Saudi Arabia and the UAE.

The deadlock has blocked funding not only from IMF but also from other multilateral and bilateral lenders, including the World Bank. The conclusion of the ongoing review will clear the way for the disbursement of $1.1 billion from the Fund and unleash other bilateral and multilateral financing. 

Nathan Porter, mission chief to Pakistan at the IMF, last week said the lender was working with the Pakistani authorities to bring the ninth review to a conclusion once the necessary financing was in place and the agreement was finalized. 

“In addition, the IMF supports the authorities in the implementation of policies in the period ahead, including in the technical work to prepare the FY24 budget, which is to be passed by the National Assembly before end-June,” he said in a statement shared with Arab News.

In recent negotiations between Pakistan and the IMF, the fuel subsidy scheme announced by Prime Minister Shehbaz Sharif in March 2023 has been a sticking point but after prolonged discussions, Pakistani authorities have finally given up the subsidy, which envisaged charging the country’s rich and subsidizing the poor to mitigate the impacts of high inflation that hit 36.4% in April this year. 

Pakistani authorities have also committed that they will not introduce new tax exemptions and

durably allow a market-based exchange rate for the rupee, according to the report.

The country’s national currency on Thursday breached the psychological barrier of Rs300 against the United State dollar in the interbank market before closing at Rs298.93.

Pakistani analysts believe the recent rupee devaluation against the greenback, among other factors, is the outcome of the government’s assurance of a market-determined exchange rate to the IMF.

“There are three factors that contribute to the rupee depreciation,” Tahir Abbas, the head of research at Arif Habib Limited, told Arab News. “Political instability, market-based exchange rate implementation, and the demand for import payments are the key factors that impact the rupee against the dollar.”

The Pakistani rupee has depreciated by 24.25% so far since January 2023 and by 31.47% since July 2022.


Saudi Arabia’s KSrelief continues relief efforts in Pakistan, Lebanon and Syria

Updated 02 February 2025
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Saudi Arabia’s KSrelief continues relief efforts in Pakistan, Lebanon and Syria

  • The charity distributed 2,160 food packages in Khyber Pakhtunkhwa’s Battagram and Buner districts as well as Sukkur in Sindh
  • The aid was given to families in flood-affected areas as part of the Saudi organization’s Food Security Support Project 2025

RIYADH: The King Salman Humanitarian Aid and Relief Center’s (KSrelief) humanitarian and relief efforts continue with the distribution of food, hygiene supplies as well as the provision of emergency transport services.

In in Ma’arrat Misrin of Syria’s Idlib Governorate, KSrelief handed out 672 food boxes and 672 hygiene kits as part of the second phase of the food aid and hygiene kit distribution project for populations affected by the earthquake in 2025.

In Lebanon’s Akkar Governorate and Miniyeh district, the aid agency during the past week distributed 175,000 bags of bread to Syrian and Palestinian refugees as well as residents of host communities. The initiative was part of the fourth phase of Al-Amal Charitable Bakery Project in the country.

In the Battagram and Buner districts of Khyber Pakhtunkhwa province, as well as the Sukkur district in Sindh province of Pakistan, 2,160 food packages were given to families in flood-affected areas as part of the Food Security Support Project 2025

Meanwhile, KSrelief delivered 125 tons of dates to Sudan as a gift from the Kingdom.

In north Lebanon, the KSrelief-funded ambulance service of Subul Al-Salam Social Association in the Miniyeh district carried out 61 missions during the past week, including transporting patients to and from hospitals and treating burn injuries.


Islamabad lawyers call strike today over ‘unconstitutional’ transfer of judges

Updated 02 February 2025
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Islamabad lawyers call strike today over ‘unconstitutional’ transfer of judges

  • The development comes a day after Pakistan’s president approved transfer of three judges from Sindh, Balochistan and Lahore to Islamabad High Court
  • Pakistan’s constitution empowers the president to transfer a judge from one high court to another after the concerned judge consents to the decision

ISLAMABAD: The Islamabad Bar Council (IBC), Islamabad High Court Bar Association (IHCBA) and the Islamabad District Bar Association (IDBA) have announced a strike on Monday to protest recent transfer of judges to the Islamabad High Court (IHC), calling them “unconstitutional measures affecting the judiciary and the legal profession.”
The announcement was made after a joint meeting of lawyer bodies a day after President Asif Ali Zardari approved the transfer of three judges from the high courts of Sindh, Balochistan and Lahore to the Islamabad High Court (IHC), amid opposition from five IHC judges.
Zardari approved the transfers of Justice Sardar Muhammad Sarfraz Dogar from the Lahore High Court (LHC), the Sindh High Court’s (SHC) Justice Khadim Hussain Soomro and the Balochistan High Court’s (BHC) Justice Muhammad Asif to the IHC. Local media reported the government was considering elevating Justice Dogar to the post of the IHC chief justice.
In a statement issued after Sunday’s meeting of lawyer bodies, the IBC said the legal fraternity of Islamabad “strongly condemns” the recent notification regarding the transfer of judges from other provinces to the Islamabad High Court, describing the move as a “direct violation of the principles of judicial independence and regional representation.”
“It undermines the autonomy of the Islamabad high Court,” the IBC said. “The legal fraternity of Islamabad ensures its commitment to resist the unjustified transfers and appointments of judges from other provinces.”
Pakistan’s constitution empowers the president to transfer a judge from one high court to another after the concerned judge consents to the decision. The president can approve the transfer after consulting the chief justice of Pakistan and the chief justice of both high courts.
On Friday, five of 10 IHC judges opposed Justice Dogar’s transfer in a letter addressed to the chief justices of the Supreme Court and high courts. The five judges said if the decision to transfer the judge was aimed at elevating him to the post of IHC chief justice, it would be a “fraud on the constitution.”
The IBC said the lawyer bodies will pursue all legal and constitutional avenues to challenge the move and safeguard the “judicial independence of Islamabad.”
“An All-Pakistan Lawyers’ Convention will be held under the Islamabad Bar Council tomorrow... to formulate future strategy,” it said on Sunday.


Pakistan deputy PM reviews preparations for key talks with Qatar next week

Updated 02 February 2025
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Pakistan deputy PM reviews preparations for key talks with Qatar next week

  • The bilateral talks in Doha, starting on Feb. 5, are expected to cover areas such as trade, investment and defense collaboration
  • They come at a time when Pakistan is seeking to boost foreign investment and trade to put its fragile economy on path of recovery

ISLAMABAD: Pakistan’s deputy prime minister and foreign minister, Senator Ishaq Dar, has held an inter-ministerial meeting to review preparations for the upcoming Pakistan-Qatar Bilateral Political Consultations in Doha next week, Pakistani state media reported on Sunday.
The bilateral talks in Doha, starting on Feb. 5, are expected to cover key areas, including trade, investment, defense collaboration, and mutual diplomatic interests.
Besides leading Pakistan’s delegation at the talks, Dar will hold meetings with the Qatari leadership, a Pakistani foreign office spokesperson said on Friday.
During Sunday’s meeting, officials briefed the deputy prime minister on the status of various Pakistan-Qatar initiatives, the Radio Pakistan broadcaster reported.
“The deputy prime minister and foreign minister underscored that preparations should be made for substantive, productive and result oriented discussions in Doha,” the report read.
The talks come months after Prime Minister Shehbaz Sharif visited Qatar in Oct. 2024 to bolster economic cooperation between the two countries. Sharif led delegation-level talks with the Qatari emir, Sheikh Tamim bin Hamad Al-Thani, before holding a separate meeting with him to discuss a wide array of issues.
“The leaders reviewed the entire spectrum of Pakistan-Qatar relations, exploring potential avenues for enhanced cooperation in trade, potential areas of investment, energy, and culture,” Sharif’s office said at the time.
Pakistan and Qatar have longstanding economic, defense and cultural relations. In 2022, the Qatar Investment Authority committed $3 billion for projects in Pakistan, spanning airport management, renewable energy and hospitality.
The talks between both countries are occurring at a time when Islamabad is seeking to boost foreign investment and trade to support its dwindling economy, which is on a tricky path to recovery since Pakistan avoided a default in June 2023.


Pakistan demands ‘urgent action’ to protect world wetlands to mitigate climate crisis

Updated 02 February 2025
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Pakistan demands ‘urgent action’ to protect world wetlands to mitigate climate crisis

  • Wetlands are defined as both freshwater and coastal and marine ecosystems that are vital to human well-being and sustainable development
  • These ecosystems act as natural buffers against floods and function as carbon sinks, which helps mitigate the effects of global warming

ISLAMABAD: Pakistan on Sunday called on the world to take “urgent action” to safeguard wetlands, emphasizing their significant role in environmental preservation, biodiversity, and combating impacts of climate change.
The statement by Romina Khurshid Alam, the Pakistan prime minister’s coordinator on climate change, came on the World Wetlands Day being observed under the theme “Wetlands and Water.” Alam called for strengthened global and national efforts to safeguard these vital ecosystems.
The United Nations (UN) has designated Feb. 2 as World Wetlands Day to commemorate the adoption of the Ramsar Convention on Wetlands in 1971. As part of Pakistan’s commitment to the Ramsar Convention, the country has designated 19 wetlands of international importance, including the famous Keenjhar Lake, Rann of Kutch, and the Haleji Lake, which support a wide variety of wildlife, especially for around 2 million migratory birds from countries in Central Asia, Siberia and northern parts of Europe.
The Pakistan PM’s aide stated that climate change has exacerbated the challenges faced by wetlands in Pakistan, with rising temperatures, changing rainfall patterns, and increasing sea levels causing wetlands to shrink disrupting the delicate balance of these ecosystems.
“As we observe World Wetland Day, it is essential that we commit taking action not just today but every day to safeguard the wetlands and the countless species that depend on them,” Alam said. “By collaborating, we can preserve these precious resources and build a sustainable future of environment.”
Wetlands are defined as both freshwater and coastal and marine ecosystems, and include all lakes and rivers, swamps, marshes, peatlands, estuaries, deltas, tidal flats, mangroves, coral reefs, and underground aquifers.
These areas are vital to human well-being and sustainable development but despite their critical role, wetlands are among the ecosystems with the highest rates of decline, loss and degradation, according to environmental experts.
Alam noted that although Pakistan contributes only 1 percent to global greenhouse gas emissions, it has been ranked among top ten climate-vulnerable nations.
“This stark disparity highlights the country’s heightened risk to the effects of climate change, such as extreme weather events, floods, droughts, and rising temperatures, which pose significant threats to its population, economy, and place additional pressure on its wetland resources,” she said, emphasizing that wetlands act as natural buffers against floods and function as carbon sinks, which helps mitigate the effects of global warming.
Pakistan last year recorded its “wettest April since 1961,” with 59.3 millimeters of rainfall while some areas of the country faced a heat wave in May and June. In 2022, unusually heavy rains triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion, and affecting at least 30 million people.
Scientists have attributed Pakistan’s erratic weather patterns to climate change effects and called on countries around the world to take urgent steps to tackle the crisis.
Alam reaffirmed Pakistan’s commitment to protecting these vital ecosystems by strengthening environmental policies, promoting sustainable water management, and working closely with local communities to ensure that wetlands are preserved for future generations.
“Pakistan has shown resilience in the face of climate change, and our government is continuously taking steps to address environmental degradation,” she said. “Wetlands, especially in regions like the Indus Delta, play a crucial role in maintaining the ecological balance and supporting livelihoods.”


Pakistan launches first anti-polio drive of 2025, appreciates Saudi support in disease eradication

Updated 02 February 2025
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Pakistan launches first anti-polio drive of 2025, appreciates Saudi support in disease eradication

  • Pakistan reported a total of 73 polio cases last year amid a resurgence of virus
  • Shehbaz Sharif says Saudi Arabia has pumped in hundreds of millions to fight polio

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday thanked Saudi Arabia for joining hands with Pakistan and its global partners in their fight against polio as he launched a nationwide anti-polio drive, which aims to vaccinate more than 40 million children under the age of five years.
Polio is a paralyzing disease that has no cure. Multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five is essential to provide children high immunity against this terrible disease.
The Pakistan polio program conducts multiple mass vaccination drives in a year, and this year’s first anti-polio vaccination campaign will formally begin on Monday, Feb. 3 and continue until Feb. 9.
PM Sharif noted that Pakistan reported over 70 cases of the virus last year, while the country has reported one polio case this year, launching the campaign by administering anti-polio vaccine to children in Islamabad.
“Now, our brotherly country, Kingdom of Saudi Arabia, has again joined hands [with Pakistan and global partners] against polio and they have pumped in hundreds of millions of dollars for this purpose,” Sharif said.
“I hope we will be able to, this time around, with coordinated and outstanding team efforts, [we] will be able to eradicate this disease from the face of Pakistan.”
Pakistan reported a total of 73 polio cases in 2024. Of these, 27 were from Balochistan, 22 from Khyber Pakhtunkhwa, 22 from Sindh, and one each from Punjab and Islamabad. The country reported its first case of 2025 in Dera Ismail Khan on Jan. 22.
Pakistan and Afghanistan are the last two countries in the world where polio remains an endemic.
Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain. 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 program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams.