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  • Saudi Arabia to deposit $2 billion in Pakistani central bank before IMF bailout — defense minister 


Saudi Arabia to deposit $2 billion in Pakistani central bank before IMF bailout — defense minister 

Pakistani Defense Minister Khawaja Muhammad Asif speaks during an interview with Arab News at the Ministry Of Defense in Islamabad on May 25, 2023. (AN Photo)
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Updated 27 May 2023
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Saudi Arabia to deposit $2 billion in Pakistani central bank before IMF bailout — defense minister 

  • Khawaja Asif promises to place all resources of Pakistan at the Kingdom’s disposal for its safety and security 
  • Says his party is seeking ‘judicial remedy’ to get ex-PM Nawaz Sharif’s conviction overturned before his return 
Updated 27 May 2023
AAMIR SAEED 

ISLAMABAD: Pakistan’s Defense Minister Khawaja Asif said on Thursday that Saudi Arabia would be depositing funds worth $2 billion in the Pakistani central bank before the revival of a stalled $6.5 billion International Monetary Fund (IMF) bailout program, amid desperate attempts by the South Asian country to secure external financing to avoid a default. 

Pakistan, a nation of over 220 million, has been facing an economic crisis for the last several months, with soaring inflation, a depreciating currency and critically low foreign exchange reserves. To avert the possibility of a default on its international obligations, the government has been striving for the resumption of the IMF loan program, stalled since November last year. 

In March, the IMF asked Pakistan to secure financing assurances from friendly states and multilateral donors before it could release $1.1 billion tranche, after which China rolled over its $2 billion loan to the cash-strapped South Asian nation. This was followed by a $2 billion pledge by Saudi Arabia and the UAE promising $1 billion support to Islamabad. 

However, the global lender has yet to sanction the release of funds. To keep the frail economy afloat, the South Asian country is facing the daunting task of securing the crucial IMF funds ahead of its budget for the next fiscal year on June 9. 

“The IMF asked them (Saudi Arabia) to give that commitment to them. They (Saudi Arabia) have already given that, that means that they will pay [the funds to Pakistan],” Asif told Arab News in an exclusive interview on Thursday. 

“I think, if I am not wrong, they will be depositing that money ($2 billion) before the IMF program. The IMF is not giving us something, not a big amount. It is just a program which we have to complete till 30th of June.” 

Pakistan’s IMF bailout program is set to expire on June 30, which has prompted the government to look for other options to avert a sovereign default. 

“We are receiving help from UAE, Saudi Arabia, China and some other sources also,” Asif said. “We hope to, God willing, come out of this economic wilderness very soon.” 

Earlier this year, the defense minister said in one of his statements that Pakistan had already defaulted, stirring a debate and fueling commotion within the country’s business community. 

“My use of the word default perhaps was not very accurate or very appropriate, but the fact remains that we are in a dire financial situation, we were in dire financial situation and we are still not out of the woods,” he replied, when asked about his statement. 

Asif said he was “just trying to explain” by using the word default that Pakistan was borrowing money to service its loans. 

During the interview, the minister lauded Saudi Arabia for its assistance to Pakistan on several occasions and expressed profound regard for the Saudi royal family. 

“Saudi Arabia, the land obviously, is the ultimate sacredness for us, the two holy cities. And our relationship with Saudi Arabia has a long history of brotherhood and respect and love for each other,” he said. 

“I have no words to explain that the feelings we have for Saudi Arabia and the ruling family of Saudi Arabia. They have helped us at very crucial junctures of our history in last 75 years and we are indebted to them.” 

He vowed to place all resources of Pakistan at the Kingdom’s disposal for its protection and safety. 

“And our forces or our resources, whatever resources we have mostly defense related, they will always be at the disposal of the Kingdom of Saudi Arabia for their defense, their protection,” Asif said. 

“Whatever worth we are, we will always stand by the Kingdom of Saudi Arabia.” 

Arab News also questioned Asif about the return of his Pakistan Muslim League-Nawaz (PML-N) party’s supremo and three-time former prime minister, Nawaz Sharif, to Pakistan. To which, Asif said said they were following a legal way to get his conviction in corruption cases overturned before his return to the country from London. 

Sharif, who is the elder brother of sitting Pakistan PM Shehbaz Sharif, was restricted for life from holding any political office by Pakistan’s top court in April 2018, followed by his conviction in a corruption case the same year. The ex-premier, who left for London in 2019 after securing bail on medical grounds and has since not returned, says the cases against him were politically motivated. 

“He will be returning soon. There are some legal hurdles, the sentence he received during 2017-18 when engineering to bring Imran Khan to power was taking place,” Asif said. “He [Sharif] had to be replaced and sentenced, that was a plan.” 

The defense minister said the “circumstances” forced Sharif to stay in exile in London. 

“He is still suffering, and he is in exile not because of his own choice,” he said, adding that Sharif was dismissed on the “most frivolous” charge of not receiving money from his son’s company. 

“We have to secure his position legally before he returns. I think that will happen soon. We are following the legal path to secure that, nothing, something which is beyond legal realm.” 

The minister said they were working on a legal strategy to get Sharif’s conviction overturned from the Supreme Court. 

“We are seeking a judicial remedy to that,” he said, adding that they would be filing a petition for it in the Supreme Court. “It’ll happen. You’ll come to know about it.” 

Topics: Pakistan’s defense minister Khawaja Asif Pakistan Saudi Ties International Monetary Fund (IMF)

Thousands gather in Pakistan’s Karachi to celebrate Gaza ceasefire

Updated 20 January 2025
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Thousands gather in Pakistan’s Karachi to celebrate Gaza ceasefire

  • The truce took effect on Sunday with the release of first three hostages held by Hamas and 90 Palestinians freed from Israeli jails
  • Jamaat-e-Islami, which organized the Karachi rally, urged the Pakistani people to support its initiative for the rebuilding of Gaza
Updated 20 January 2025
NAIMAT KHAN

KARACHI: Thousands of Pakistanis gathered on Monday on a main thoroughfare in the southern port city of Karachi to celebrate a ceasefire between Israel and Hamas in Gaza, describing it as a “victory of resistance forces.”
The truce in the 15-month-old war, which has laid waste to the Gaza Strip, took effect on Sunday with the release of the first three hostages held by Hamas and 90 Palestinians freed from Israeli jails.
Now, attention is starting to shift to the rebuilding of the coastal enclave which the Israeli military has demolished, killing more than 47,000 Palestinians since Oct. 7, 2023 attacks by Hamas on Israel.
To celebrate the ceasefire, the Jamaat-e-Islami (JI) religious party organized a congregation on Shahrah-e-Quaideen thoroughfare in Karachi, which was attended by thousands of men, women, children and elderly.
“What happened in Gaza once again exposed the United States as it was the sponsor of the genocide,” JI chief Hafiz Naeemur Rehman told the attendees. “The freedom fighters [of Gaza] defeated Israel in all the dimensions.”
The attendees at the rally carried the Palestinian flags and chanted slogans in support of the people of Gaza.
Rehman urged them to support a JI initiative for the rebuilding of Gaza and continue their boycott of Israeli products and the products of the countries that sided with Israel.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters.”
The South Asian country has dispatched several relief consignments for Gaza, besides establishing the ‘Prime Minister’s Relief Fund’ that aims to collect public donations for the war-affected people.
In his address with the participants through a video link, Hamas official Khalid Qadoumi said Gaza proved to be “Vietnam for Israel.”
“Israel opted to retreat due its heavy military losses in the strip,” he was quoted as saying by the JI party.
“Israel displaced 90 [percent] population of Gaza, killed around 50,000 innocent, unarmed people, majority of them women and children, but it couldn’t defeat the resolve of Palestinian Muslims.”
Muhammad Farooq, a Pakistani provincial lawmaker, said the Pakistani nation stood by the Palestinians in their struggle for freedom.
“The freedom movement of Palestine has proved that life of nations is linked with resistance against oppression,” he added.

Topics: pakistan palestine ties Gaza ceasefire

Iran’s top general meets Pakistani leaders, discusses security and border management

Updated 20 January 2025
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Iran’s top general meets Pakistani leaders, discusses security and border management

  • Pakistan, Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy
  • Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both countries claiming to target alleged militant hideouts
Updated 20 January 2025
KASHIF IMRAN

ISLAMABAD: Maj. Gen. Mohammad Bagheri, chief of general staff of Iranian armed forces, on Monday held talks with Pakistani civilian and military leaders with regard to regional security, counter-terrorism measures and joint border management, Pakistani authorities said.
Pakistan and Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy. Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both claiming to target alleged militant hideouts in each other’s territory.
The two-day trip of the Iranian general is aimed at resolving security issues between Pakistan and Iran, while expanding friendship and economic ties along their shared border, Iranian media reported ahead of Major General Bagheri’s arrival in Pakistan on Sunday night.
On Monday, the general held separate meetings with Pakistan’s President Asif Ali Zardari, Defense Minister Khawaja Asif and Army Chief Asim Munir. In his meeting with President Zardari, the two figures exchanged views on matters of bilateral importance and stressed the need to promote bilateral trade and economic relations.
“It was also highlighted that terrorism was a shared challenge, and both countries needed to take effective and coordinated measures to address this challenge,” the Press Information Department (PID) of the Pakistani government said in a statement.
In his conversation with the visiting dignitary, Defense Minister Asif expressed satisfaction over positive progression of bilateral relations between the two countries in all fields.
“Both sides showed satisfaction on progress in various areas of mutual interest, including joint border management and counter-terrorism measures, aimed at enhanced cooperation in areas of common interest in future,” the PID said.
Separately, Major General Bagheri met Pakistan’s army chief at the General Headquarters in Rawalpindi, where he was presented a guard of honor.
“During the meeting, both sides discussed matters related to the prevailing regional security environment and bilateral defense cooperation,” said the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
In a bid to ease tensions, late Iranian president Ebrahim Raisi had also traveled to Pakistan on a three-day visit in April 2024. During the visit, the two sides had signed memorandums of understanding in the fields of trade, science technology, agriculture, health, culture, and judicial matters.
Raisi’s visit was followed by a two-day visit to Islamabad by Iranian Foreign Minister Seyed Abbas Araghchi in Nov. to hold consultations with the Pakistani leadership on the Middle East situation, following Israel’s invasion of Gaza and Lebanon, and to discuss bilateral ties with Pakistan.

Topics: Pakistan Iran Ties Chief of Army Staff General Asim Munir

Foreign Office confirms one more Pakistani survivor of Morocco boat capsize

Updated 20 January 2025
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Foreign Office confirms one more Pakistani survivor of Morocco boat capsize

  • The boat sank off Morocco’s coast last week with 86 people on board
  • The confirmation brings the total number of Pakistani survivors to 22
Updated 20 January 2025
SAIMA SHABBIR

ISLAMABAD: Pakistan’s Foreign Office on Monday confirmed one more survivor of a migrant boat capsize off the coast of Morocco last week, bringing the total number of survivors to 22.
The migrant boat capsized near Morocco’s coast on Jan. 15 while en route to Spain. It was carrying 86 migrants, including 66 Pakistanis, according to migrant rights group Walking Borders.
Moroccan authorities said a day later that 36 people were rescued from the vessel which left Mauritania on Jan. 2, while Foreign Office confirmed on Sunday the survivors included 21 Pakistani nationals.
“Based on verified information, one more Pakistani national named Muhammad Adeel s/o Muhammad Rasheed has been identified among the survivors of the boat tragedy,” the Pakistani foreign office said on Sunday.
The incident near Morocco has once again underscored the dangerous journeys many migrants, particularly Pakistanis, embark on due to conflict and economic instability in their home country.
In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea. More recently, five Pakistani nationals died in a ship wreck off the southern Greek island of Gavdos on Dec. 14.
The Pakistani government has ramped up efforts in recent months to combat human smugglers facilitating dangerous journeys for illegal immigrants to Europe, resulting in several arrests.
Prime Minister Shehbaz Sharif has urged increased collaboration with international agencies to ensure swift action against human trafficking networks.

Topics: Morocco boat tragedy Pakistan foreign office

McCullum sees India series as ideal prep for Champions Trophy in Pakistan

Updated 20 January 2025
AFP
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McCullum sees India series as ideal prep for Champions Trophy in Pakistan

  • The tourists, led by Jos Buttler, will face India in the first of five T20 internationals in Kolkata on Wednesday
  • India series marks England’s first limited-overs tour under coach McCullum, previously in charge only of Test side
Updated 20 January 2025
AFP

KOLKATA: England coach Brendon McCullum said Monday he hopes his side emerge from a host of limited overs matches against India in “good shape” for the upcoming Champions Trophy.
The tourists, led by Jos Buttler, will face India in the first of five T20 internationals at Kolkata’s Eden Gardens on Wednesday.
The India series marks England’s first limited-overs tour under McCullum, previously in charge only of the Test side.
“I’m desperate for us to play a really watchable brand of cricket,” McCullum told reporters. “With the talent we have, there’s no reason we can’t.”
The teams will play three one-day matches, before they move into the eight-team ODI Champions Trophy starting February 19 in Pakistan and Dubai.
“We’ll use the next few weeks to try and hit the ground running, I’m sure there will be some times where we don’t quite get it right,” he added.
“But, hopefully, we will chisel away at that over the next few weeks, and we’ll be in good shape come that Champions Trophy.”
The 43-year-old McCullum said Buttler, who will only play as a batsman and not keep wicket on the tour, will leave a lasting legacy as England’s white-ball leader.
“He’s in a really good space, he’s excited about the team we’ve got, and excited about the opportunity that sits in front of us,” the former New Zealand skipper said.
“I’m sure we’ll see Jos over the next couple of years really enjoy himself, and hopefully finish with a real strong enjoyment for the game at the back end of his career.”
But India, led by Suryakumar Yadav, remain the favorites on home turf — and have been boosted by the return of fast bowler Mohammed Shami after he recovered from a foot injury.
Shami, 34, last played for India in the ODI World Cup final in November 2023 and recently participated in a few domestic matches to mark his return to competitive cricket.
“It’s a really good sign for us,” India’s T20 vice-captain Axar Patel said. “We hope he continues what he did in the World Cup.”

Topics: India cricket ICC Champions Trophy 2025

New Trump administration to view Pakistan through ‘China-India lens’ as Islamabad pledges stronger ties — experts

Updated 20 January 2025
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New Trump administration to view Pakistan through ‘China-India lens’ as Islamabad pledges stronger ties — experts

  • Islamabad-Washington ties, strained over Pakistan’s alleged support of Taliban, further worsened after ex-PM Khan blamed his ouster on Washington
  • Analysts suggest Islamabad to make a clear agenda with defined milestones, cautiously approach developments in relations and respond accordingly
Updated 20 January 2025
SAIMA SHABBIR

ISLAMABAD: The new United States (US) administration of President Donald Trump will continue viewing Pakistan through the “China-India lens,” Pakistani foreign affairs experts said on Monday, as Islamabad pledged to strengthen its relations with Washington.
Trump’s inauguration is scheduled for Monday at 1700 GMT inside the Capitol Rotunda as he returns to the presidency four years after being voted out during a pandemic-driven economic collapse, marking an unprecedented political comeback.
Relations between Islamabad and Washington, once close allies, had been strained because of Pakistan’s alleged support of the Taliban in Afghanistan, a claim Islamabad denies. Ties worsened further during the tenure of Prime Minister Imran Khan, who welcomed the Taliban’s 2021 takeover and accused Washington of trying to oust him. Since Khan’s ouster in 2022, PM Shehbaz Sharif’s government has made frequent efforts to repair the damaged relations.
But Pakistani foreign affairs experts believe that the US is unlikely to seek a significant expansion of ties with Islamabad in the near future and will approach it keeping its China and India policies in view, and remaining largely focused on security cooperation, particularly in counterterrorism and Afghanistan.
“The biggest challenge for Pakistan is that the Trump administration will continue its previous policies of looking at Pakistan through the China-India lens,” Dr. Zafar Nawaz Jaspal, a professor at Quaid-e-Azam University’s School of Politics and International Relations, told Arab News.
“Now, the biggest challenge for us is how to convince the Americans that though we will be not a part of the American policies to contain China, but at the same time, we could be a part of Americans’ policies in addressing the non-traditional security challenges and on Afghanistan.”
He said the new Trump administration could use the incarceration of Pakistani political figures, including ex-PM Khan, to influence the incumbent Pakistani government.
“People think that Imran Khan is an established fact, the political divide in Pakistan exists and that divide could be exploited by the external powers for pursuing their agendas within the country or in the region,” Dr. Jaspal added.
Trump’s special envoy nominee Richard Grenell urged President Joe Biden’s administration to use its last days in power to push for the release of Khan, who has been in jail for more than a year on a slew of charges, so he could run for office in Pakistan.
While a Pakistani Foreign Office spokesperson declined to comment on Grenell’s statement at the time, the Pakistani government and allies have criticized Grenell’s comments.
On Monday, Pakistani Foreign Office spokesperson Shafqat Ali Khan said Pakistan maintained close relations with the US, marked by multi-layered cooperation in economy, trade, people-to-people connections, security and counter-terrorism, and Islamabad seeks to further solidify them.
“Pakistan-US relations have a very long history, and the relations remain rich and dense, and we would continue to work with the new administration to further solidify and strengthen this vital relationship,” Shafqat told Arab News.
“We seek to further strengthen these ties by ensuring the continued positive growth of bilateral relations.”
Senator Sherry Rehman, who has previously served as Pakistan’s ambassador to the US, said every transition offers opportunities for a reset, and Pakistan needs to state its own goals for a broader bilateral path to widen its relationship with the US from a highly “securitized” lens to a more robust economic and commercial one.
“Islamabad should make a clear agenda with defined milestones for consistent engagement over better terms of trade, not just wait for Washington to respond to regional headwinds, in which Pakistan finds itself seeking balance against an Indian arms race in South Asia,” she told Arab News.
“There should be no diplomatic diffidence in stating the country’s strategic interests while iterating confidence in rebuilding trust between the two countries [Pakistan and the US].”
Masood Khan, another former Pakistani ambassador to the US, said Pakistan should try to invest “new energy” into economic cooperation between the two countries and remove any “shackles” in the strategic domain.
“The full contours of President Trump’s policy toward South Asia haven’t become very clear, but we have shared strategic interests in the region and beyond,” he told Arab News.
“This is called Trump 2.0, so it will not be the repetition of the previous tenure,” he said, adding that Trump is more “clear-headed and more forthright” regarding his priorities this time.
Dr. Salma Malik, another foreign affairs expert, said if the US adopts policies directed against China, every action or policy decision it takes will have a “direct or indirect impact on Pakistan.”
“Therefore, it is important not to overreact or panic, instead, we should cautiously approach developments, assess opportunities, and respond accordingly,” she said.

Topics: Pakistan US Ties Donald Trump US India ties

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