Pakistan’s finance minister says no risk of default as government works on federal budget

Pakistani Finance Minister Ishaq Dar (C) gives a press conference in Islamabad on July 11, 2017. (AFP/File)
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Updated 25 May 2023
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Pakistan’s finance minister says no risk of default as government works on federal budget

  • Senator Ishaq Dar calls it ‘unfortunate’ the 9th IMF review began with a substantial delay of three months
  • He says his team has completed all the technical work required for the resumption of the $7 billion loan facility

ISLAMABAD: Federal Minister for Finance and Revenue Senator Ishaq Dar on Wednesday ruled out the possibility of a default while discussing budget proposals with representatives of local business community during a ceremony held in the federal capital.

Pakistan is witnessing a serious economic turmoil amid declining forex reserves and rapidly depreciating national currency. The government has held several rounds of talks with the International Monetary Fund (IMF) to revive a stalled loan program amounting to $7 billion. However, it has not managed to secure external financing from the international lender despite making an effort to implement all its conditions.

The situation has led to fears of a default on the country’s international financing obligations as the IMF program nears its expiry on June 30.

Addressing the ceremony, the finance minister said Pakistan faced similar threat of default in 2013, adding that no international financial institution or multilateral donor was not willing to provide it external assistance back then.

“If we get together and face this challenge collectively, which is what is happening now, we will come out of [the challenging economic situation],” he told the gathering.

“We are not in a danger of default,” he continued. “Pakistan will not default.”

Dar said his team had completed all the technical work required by the IMF under the 9th review of the loan program.

“It is unfortunate that this review started with a delay of three months,” he said. “Its understanding, which existed before I [took over as finance minister], was that it would begin in November. But it actually started on January 31.”

He added the technical review was over on February 9.

“We have completed all prior actions,” he continued while referring to the IMF conditions required for the resumption of the loan facility.

The finance minister said Pakistan had only completed one IMF program in the past between 2013 and 2016 which was done while he was managing the finance ministry.

He added it was his “sincere effort” to complete this IMF program, though the time was too short for that.

Dar asked the business community for its proposals and put them down in writing, adding the government would facilitate local companies in every possible way.


Empress Market: a Karachi commerce icon built to bury ashes of a rebellion

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Empress Market: a Karachi commerce icon built to bury ashes of a rebellion

  • It was at this site where the British executed participants of the 1857 Sepoy Mutiny in the Indian Sub-continent
  • Unaware of its grim past, people visit the place for grocery shopping and to see its magnificent Gothic architecture

KARACHI: In the heart of Karachi’s Saddar neighborhood, the Empress Market stands as a towering relic of British colonial ambition, where the scent of fresh produce mingles with the sharp tang of spices, and shopkeepers hawk everything from live poultry to antique coins.
But few realize that underneath its ornate clocktower and gothic arches lies a darker, forgotten history that is stained by rebellion and retribution for those who took part in the 1857 uprising against British rule in the Indian Sub-continent.
It was at this site where the British executed scores of mutineers and their local sympathizers after they got to know of their plans and later constructed this magnificent market between 1884 and 1889 to prevent the place from becoming a commemorative site.
“The Empress Market building has a very unique architectural design, but apart from its design, its history is very interesting, which actually reveals why it was built in the first place,” Tania Ali Soomro, a Karachi-based architect, told Arab News this week, elaborating on the site’s grim past.
“The rebels of the freedom struggle would be punished here. The method of punishment was such that they would be tied in front of cannons and then fired upon.”
The 1857 mutiny, also known as the Sepoy Mutiny, was a major uprising in India against the rule of the British East India Company, which began with a revolt by Indian soldiers of the Company in Meerut on May 10 that year and later spread to Delhi, Kanpur, Agra and Lucknow.
Though the uprising ultimately unsuccessful, it demonstrated the widespread discontent with British rule and paved the way for the rise of the Indian nationalist movement.
Historian Gul Hassan Kalmati notes in his book, ‘Karachi — Glory of the East,’ that following the failed rebellion, four mutineers, including Sooraj Bali Tivari and Ram Din Panday, were tied to the cannons and executed at the site of Empress Market.
Citing a confidential British document, titled ‘Secret document number D/223/1857, dated 14th September 1857, Secret Branch,’ Kalmati writes Tivari and Panday had led soldiers of the 21st Native Infantry Regiment, but two informants, Ram Bane and Lakhshman Gadari, alerted the British and thus failed the rebellion.
“The local people had started celebrating this place as a commemorative site. They would light oil lamps there and began to renovate it like a shrine,” Soomro said, adding this burgeoning memorial prompted the British to act.
“To erase this memory, the British decided to create something which is public and holds strong social value. As a result, the market was established at this location.”
In her book ‘The Dual City: Karachi During the Raj,’ Yasmeen Lari, a celebrated Pakistani architect, agrees with the notion.
“Although the imperialists were particular in commemorating significant events, it is not surprising that a plaque was not placed at the site of the Empress Market to mark the spot where native sepoys had been executed,” she writes.
The market was named in honor of Queen Victoria, the then Empress of India, with its Gothic architecture reflecting British authority with local adaptations.
“If we talk about the design, the architectural style of this building is Gothic, but it has been built in a somewhat localized and contextualized way,” Soomro said, adding the building was designed by James Strachan, who was an engineer.
“His distinct style, including linearity, pointed arch windows and the clock tower, can be seen across several buildings he designed, including DJ Science College and Sindh Madrasatul Islam [in Karachi].”
Lari describes the market as a “very handsome building designed in what is known as the ‘Domestic Gothic Style’.”
“While the use of the alien Gothic form was understandable, the presence of an atrium was highly unusual for the time,” she writes in her book.
“With a frontage of 231 feet on Preedy Street, its four galleries, each 46 feet wide, surround the generous size courtyard, 130 feet by 100 feet. The single-story building is not pretentious except for the tall central tower that rises to a height of 140 feet.”
The market was so beautiful that while praising it, Commissioner Pritchard had said that the “only one other market [that] surpassed it in the whole Presidency was the ‘Crawford Markets’ of Bombay,” according to Lari.
The most monumental feature of the building is its clock tower, which is positioned right at the center of the front wing. It was designed in a very symmetrical manner, with the front and back being exactly the same.
It has two levels. The first level features an arched entrance at the very bottom and then there is a balcony above it. The balcony is adorned with beautiful wrought iron grills. The second level has the clock installed and above that, the canopy of the tower serves as the cover for the structure.
Each wing of the market was originally dedicated to a separate function, a different type of shopping, according to Soomro. In some areas, there were wet groceries, and in others, dry groceries.
While this zoning has blurred, the market remains a vibrant hub.
“It’s a very historic and old market, and the best thing about it is that you can find everything in bulk — it’s called a one-stop shop,” said Zia Shahid, a regular at Empress Market.
“From vegetables to dry fruits, from groceries to various other items, you can get everything here at very good rates.”
But it isn’t just the wide variety of items that attract shoppers to the market. Many visit the place due to its magnificent structure and to take photos.
“We had heard a lot about how the art of photography stands out here in this market, in its own unique way,” said Afaan Adnan, a 21-year-old student, unaware of the site’s bleak past.
“We needed to take some pictures in which we could tell stories. Empress Market is a key part of Karachi, where countless stories unfold. We are here to capture them.”
But for shopkeepers like Y.B. Sethna, Empress Market is deeply personal as his family has been here since 1938.
“In 1938, my grandfather came to the market... After 1946, there was Partition, so the person he was working with at the time left and he said to my grandfather, ‘you’ve worked hard with us, so why don’t you take over this shop?’,” he said, adding that his grandfather, father and uncle used to run the grocery shop before him.
Sethna’s long association with the market has kept him from moving elsewhere.
“When I was seven years old, they [Sethna’s grandfather and other elders] would hold my hand and bring me here,” he said, adding people often ask him why he didn’t open a shop at a less crowded place with relative calm.
“The attachment I had with this place was so strong that I couldn’t leave it.”


On World Press Freedom Day, Pakistan honors journalists killed in Gaza

Updated 49 min 54 sec ago
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On World Press Freedom Day, Pakistan honors journalists killed in Gaza

  • Israel’s war on Gaza has killed 232 journalists, an average of 13 per month, making it the deadliest conflict for media workers
  • President Asif Ali Zardari says media is indispensable in promoting dialogue, highlighting social, economic and environmental issues

ISLAMABAD: Pakistan’s President Asif Ali Zardari on Saturday hailed journalists who lost their lives while reporting in conflict zones like Gaza, saying their dedication continues to inspire others.
The statement came on the World Press Freedom Day on May 3 that aims to raise awareness about the importance of press freedom and remind governments of their duty to respect and uphold the right to freedom of expression enshrined under Article 19 of the 1948 Universal Declaration of Human Rights.
Israel’s war on Gaza has killed 232 journalists – an average of 13 per month – making it the deadliest conflict for media workers ever recorded, according to a report by the Watson Institute for International and Public Affairs’ Costs of War project issued on April 1.
More journalists have been killed in Gaza than in both world wars, the Vietnam War, the wars in Yugoslavia and the United States war in Afghanistan combined. The 18-month Israeli war, which began after the Oct. 2023 attacks on Israel by Hamas, has also killed more than 52,000 Palestinians, laying waste to almost all of Gaza.
“[We] honor the sacrifices made by those who have lost their lives in pursuit of truth, especially reporting in conflict zones like Gaza and Palestine,” President Zardari said in his statement on the day.
“Their courage and dedication continue to inspire us.”
The media is indispensable in promoting dialogue, highlighting issues of social, economic and environmental significance, uncovering corruption and advocating for the marginalized communities, according to the Pakistan president.
Article 19 of the Constitution of Pakistan guarantees the right to freedom of speech and a free press, subject to “certain restrictions.”
Pakistan ranks 152nd out of 180 countries on Reporters Without Borders (RSF) press freedom index, and journalists in the country have long complained of increasing state pressure on traditional media. Social media platform X is officially banned, but accessible using VPNs, while YouTube and TikTok have faced bans in the past.
“We have taken a number of steps for the protection and welfare of journalists, but more needs to be done by providing them a safe, secure, and enabling environment,” Zardari said.
“A culture where journalists feel secure to perform their duties without fear and harassment is the need of the time. I urge the media to uphold the highest standards of journalism, accuracy, and professionalism.”


Pakistan will strike any Indian structure built to divert its water, minister says

Updated 53 min 42 sec ago
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Pakistan will strike any Indian structure built to divert its water, minister says

  • India suspended a key water-sharing treaty with Pakistan after an attack in Indian-administered Kashmir that New Delhi has blamed on Pakistan
  • Pakistan has denied involvement in the attack that killed 26 tourists and described India’s suspension of the treaty as an ‘act of war’

ISLAMABAD: Pakistan will destroy any structure built by India to divert its share of water under the Indus Waters Treaty, Defense Minister Khawaja Asif said on Friday, amid heightened tensions between the two countries over an attack in the Kashmir region.
India suspended on April 23 the World Bank-mediated Indus Waters Treaty of 1960 that ensures water for 80 percent of Pakistani farms, saying it would last until “Pakistan credibly and irrevocably abjures its support for cross-border terrorism.”
The development came a day after an attack killed 26 tourists in Indian-administered Kashmir’s Pahalgam tourist town. India said two of the three militants who attacked tourists were from Pakistan. Islamabad denied the allegation and said any attempt to stop or divert the flow of Pakistan’s water will be considered an “act of war.”
Speaking to a private news channel on Friday night, Asif said diverting Pakistan’s water was also a “face of aggression” against the country and entire nations could die of thirst and hunger because of it.
“That will be aggression against Pakistan,” he said. “So, even if they made an architectural attempt of this kind, then Pakistan will destroy that structure.”
Pakistan has rights to the western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower, according to the Indus Waters Treaty. India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow. India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes.
Asif’s comments came hours after Pakistan’s top generals blamed the April 22 attack on New Delhi’s “governance failures” and its strategy of using such incidents for political gains, warning Pakistani security forces were ready to respond to any attack on the country’s sovereignty.
Pakistan Army’s top brass gathered at the General Headquarters (GHQ) in Rawalpindi on Friday to review the geo-strategic environment, with a particular focus on the Pakistan-India standoff and the broader regional security situation, the military’s media wing, Inter-Services Public Relations (ISPR), said.
“The Forum noted, with serious concern, India’s consistent pattern of exploitation of crises to achieve political and military objectives. They have been following a predictable template — whereby internal governance failures are externalized,” the ISPR said.
“These incidents have often coincided with unilateral moves by India to alter the status quo, as seen in 2019 when India similarly exploited the Pulwama incident to unilaterally alter the status quo of Indian Illegally Occupied Jammu & Kashmir, through revocation of Article 370,” it added.
The 2019 Pulwama attack killed 40 Indian paramilitary personnel and was also blamed on Pakistan before New Delhi revoked the region’s special constitutional status to integrate it in the Indian union, a move repeatedly condemned by Islamabad.
Tensions have been high in the South Asian region since last week’s attack in Kashmir, a situation exacerbated by retaliatory actions between the two nuclear-armed rivals, including the expulsion of diplomats and citizens, border closures and airspace shutdowns.
Pakistan and India have a history of bitter relations. They have fought two of their three wars over Kashmir, a region split between them, since gaining independence from the former British colonial rule in 1947.
On Friday, Pakistan Prime Minister Shehbaz Sharif with envoys from Gulf allies and briefed them on Islamabad’s stance regarding the April 22 attack in Indian-administered Kashmir, seeking to defuse tensions.
The international community has encouraged both sides to exercise restraint and resolve the crisis through dialogue.


Pakistan’s factory PMI dips in early sign of global tariff headwinds

Updated 03 May 2025
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Pakistan’s factory PMI dips in early sign of global tariff headwinds

  • New orders slumped while export orders in particular plummeted
  • Employment fell for a second month as manufacturers cut costs

KARACHI: Pakistan’s manufacturing sector growth slowed to a seven-month low in April, with the HBL Pakistan Manufacturing Purchasing Managers’ Index (PMI)easing to 51.9 from 52.7 in March, as concerns over global trade weighed, HBL said in a press release.
The latest dip in the index hints at the impact of US President Donald Trump’s trade tariffs, said Humaira Qamar, Head of Equities & Research at HBL.
“We believe that the latest PMI dips are early signs of the headwinds to the global economy from the introduction of US tariffs,” said Humaira Qamar — Head Equities & Research at HBL.
New orders slumped while export orders in particular plummeted. Employment fell for a second month as firms cut costs, said Qamar.
Qamar warned that any US stagflation would hurt Pakistan’s exports, particularly to the US which accounts for 18 percent of its total, potentially prolonging the manufacturing downturn, though lower commodity prices could provide some relief, she added.
Despite the slowdown, the PMI remains above 50, indicating expansion amid a favorable inflation outlook.
Qamar said she expects an interest rate cut on Monday due to strong deflationary pressures. But a Reuters poll suggests Pakistan’s State Bank will hold rates steady at 12 percent, following a surprise pause in its last meeting due to geopolitical tensions and inflation concerns.
Pakistan’s annual inflation rate fell to 0.3 percent in April, well below the Ministry of Finance estimate of 1.5 percent to 2 percent. The central bank forecasts average inflation to be in the range of 5.5 percent to 7.5 percent for the fiscal year ending June.
Pakistan’s largest bank, HBL, and global financial information and analytics firm S&P Global launched the index In February to track the country’s manufacturing sector.


China’s BYD partners with local firms to launch largest EV charging network in Pakistan

Updated 03 May 2025
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China’s BYD partners with local firms to launch largest EV charging network in Pakistan

  • 128 DC fast chargers will be installed across Pakistan over the next three years
  • Pakistan approved EV policy in 2019 with a target of 30 percent electric vehicles by 2030

KARACHI: China’s BYD, the world’s largest New Energy Vehicle (NEV) manufacturer and Pakistan’s Mega Motor Company (MMC) have partnered with Hub Power Company (HUBCO) to launch the country’s largest NEV charging network, the company said on Friday.
NEVs refer to alternative-fuel vehicles that rely on electric, hybrid, hydrogen or other non-traditional power sources instead of conventional gasoline or diesel engines
BYD, a global leader in battery-electric and plug-in hybrid vehicles, has expanded aggressively in Asia, Europe and Latin America. Mega Motor, a subsidiary of Pakistan’s HUBCO, is spearheading the local manufacturing, distribution and sales of BYD-branded vehicles.
“This nation-wide rollout of infrastructure marks one of the most significant developments in the country’s shift toward electric mobility by addressing a critical gap in Pakistan’s EV ecosystem and establishing the most extensive NEV charging network,” BYD said in a statement.
“As part of this strategic and groundbreaking roadmap, HGL will install approximately 128 DC fast chargers across the country over the next three years, with 50 installations planned by December 2025.”
It added that the charging points would be placed every 150-200 kilometers of highways and motorways along with malls, hotels and hospitals.
“Range anxiety remains one of the most significant barriers to NEV adoption across Pakistan,” BYD Pakistan Vice President Sales and Strategy Danish Khaliq said.
“Through this groundbreaking partnership with HUBCO Green, we are not just addressing a logistical issue but shaping the entire mobility landscape of the country.”
BYD and MMC partnered last year to introduce electric vehicles (EVs) in Pakistan, aiming to accelerate the country’s transition toward sustainable mobility.
The government approved the National Electric Vehicles Policy in 2019, setting a target of 30 percent EVs by 2030. In March, Pakistan inaugurated the country’s fastest EV charging station in Islamabad.
Earlier this year, Pakistan announced a 45 percent reduction in power tariffs for electric vehicle charging stations. The government is also planning financing schemes for e-bikes and the conversion of two and three-wheeled petrol vehicles.
According to a report submitted by the power ministry, there are currently more than 30 million two- and three-wheeled vehicles in Pakistan, which consume more than $5 billion worth of petroleum annually.
In January, China’s ADM Group revealed plans to invest $250 million in setting up an electric vehicle manufacturing plant in Pakistan.