Pakistan presents budget for next fiscal year as economy continues to melt down

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Updated 09 June 2023
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Pakistan presents budget for next fiscal year as economy continues to melt down

  • The South Asian country is facing an acute balance-of-payment crisis, currency devaluation and inflation at record 38%
  • On Thursday, Finmin Ishaq Dar said the outgoing year was ‘a difficult year for economy’ and posed ‘extreme challenges’

KARACHI: Pakistani finance authorities will present on Friday federal budget for the next fiscal year 2023-24, the state media reported, as the South Asian country is likely to post a Gross Domestic Product (GDP) growth of 0.29 percent in the fiscal year ending June 30.

Pakistan missed the GDP target by a huge 4.7 percent this fiscal year, which is well below the target of 5 percent set last year, according to the country’s economic survey that highlights the trend of macro-economic indicators, development policies and strategies as well as sectoral achievements of the economy.

The cash-strapped country is due to present its budget at a time when it is in desperate need of bailout funds from the International Monetary Fund (IMF) to shore up its foreign currency reserves that are barely enough to cover a month’s imports.

“Finance Minister Ishaq Dar will present the budget in the National Assembly scheduled to meet at four in the evening at the parliament house in Islamabad,” the state-run Radio Pakistan broadcaster reported on Friday.

At a pre-budget presser on Thursday, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.

“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms, the fiscal reforms … we had to do the pending actions,” Dar told reporters.

“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”

Islamabad has been hoping to have $1.1 billion of the funds released since November, but the IMF has insisted on a number of conditions being met before it makes any more disbursements.

On Thursday, an IMF official said Pakistan had to satisfy the lender on three counts, starting with a budget due on Friday, before its board reviews whether to release at least some of the $2.5 billion still pending under the $6.5 billion program expiring on June 30.

“As communicated to the authorities, there can be one remaining Board meeting under the current EFF at end-June,” Perez Ruiz said in an email response to Reuters.

“To pave the way for a final review under the current EFF, it is essential to restore the proper functioning of the FX market, pass a FY24 Budget consistent with program objectives, and secure firm and credible financing commitments to close the $6 billion gap ahead of the Board.”

The IMF had tasked Pakistan with securing external financing commitments for $6 billion from other sources, but so far it has only obtained commitments for $4 billion, mostly from Saudi Arabia and the United Arab Emirates.

Under pressure to shift to a more market-determined exchange rate regime and shut down an unofficial currency market, Pakistan removed daily limits on fluctuations earlier this year.

The country is already reeling from an economic crisis with inflation reaching a record 37.97 percent in May.

The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, while its central bank has also raised policy interest rates to a record 21 percent.

The IMF has so far conducted just eight of the 11 reviews that were to take place during the three-year program. The last review took place in August last year.


Pakistan PM forms special sub-committees to promote ‘cashless’ economy

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Pakistan PM forms special sub-committees to promote ‘cashless’ economy

  • Committees to provide recommendations on facilitating payments between public and businesses, raise awareness about digital systems
  • Pakistan is a cash-dominated market where a significant portion of transactions, particularly in informal sector, are conducted using cash

ISLAMABAD: Prime Minister Shehbaz Sharif has formed three special sub-committees to promote a “cashless” system in the country, his office said on Monday amid Islamabad’s efforts to promote digital transactions to ensure more transparency in the national economy. 

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted using cash. Pakistan’s central bank has taken steps in recent months to ensure a more cashless economy so that financial transactions are more traceable, reducing chances of tax evasion and corruption. 

Pakistan has witnessed significant growth in digital transactions in recent years. The country’s central bank said in April that its instant payment system, Raast, has processed over 892 million transactions amounting to Rs20 trillion ($72 billion) since its launch in 2021. 

“Prime Minister Shehbaz Sharif chaired a meeting on promoting a cashless economy,” the Prime Minister’s Office (PMO) said in a statement. “He directed the formation of three committees: Digital Payments Innovation and Adoption Committee, the Digital Public Infrastructure Committee and the Government Payments Committee.”

The press release said these special sub-committees would present recommendations on facilitating payments between the public and businesses, raise awareness about digital systems, activate the Pakistan Digital Authority and simplify transactions between the public and private sectors.

Sharif instructed officials to ensure digital transactions are made more affordable and easier for the public compared to cash ones. He further directed that the RAAST digital payment system be established across the federation and all Pakistani provinces.

“Establishing a digital transaction system is extremely important to bring transparency into the economy,” Sharif was quoted as saying. “Around the world, developed nations and successful economies are prioritizing cashless systems.”

During a briefing given to the premier on the government’s steps to promote a cashless economy, Sharif was told that 40 million users in total are benefiting from RAAST. The Pakistani premier was told that the federal government’s entire financial transactions are being conducted via RAAST and the system is being expanded to provinces as well.

“The Pakistan Digital Authority has been established, and work is underway under its umbrella to promote a cashless economy,” the PMO said. 

The prime minister was also briefed that through the IT ministry’s Smart Islamabad Pilot Project, the government is taking steps to make Islamabad the first cashless city in Pakistan. 


Pakistan to face Qatar in Asian Volleyball Nations Cup semifinal today

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Pakistan to face Qatar in Asian Volleyball Nations Cup semifinal today

  • Pakistan defeated Indonesia 3-1 in quarterfinals to book semifinal berth
  • Tournament serves as qualifier for 2026 Asian Volleyball Championship

ISLAMABAD: Pakistan will take on Qatar today, Monday, in the semifinal of the 2025 Asian Volleyball Nations Cup in Bahrain, state-run media reported.

The tournament is being played in Manama from June 17 to 24 and features 12 teams. These include Pakistan, Bahrain, Indonesia, Thailand, Qatar, Australia, Kazakhstan, Chinese Taipei, the Philippines, South Korea, Vietnam and New Zealand.

The tournament serves as a qualifier for the 2026 Asian Volleyball Championship, with top-performing teams earning world ranking points and potential entry into the 2028 Olympic Games and the 2027 FIVB World Championships.

“The semifinals of the Asian Volleyball Nations Cup are being played today,” Pakistan State Television (PTV) said in a report on Monday. “Pakistan will face Qatar in the first semifinal of the event being played in Bahrain.”

Pakistan defeated Indonesia 3-1 in the quarterfinals to book the semifinal berth. The second semifinal will be played between Bahrain and South Korea.

Qatar will head into the match with some confidence, considering they beat Pakistan last year by a score of 25-22, 25-20, 25-19 in the same championship held in Bahrain. 

The match is scheduled to be held at 19:00 local time (16:00 Coordinated Universal Time).

In August 2024, Pakistan defeated Japan 3-0 to clinch the bronze medal at the Asian Men’s U18 Volleyball Championship.

Volleyball is a steadily growing sport in Pakistan governed by the Pakistan Volleyball Federation. The Pakistan volleyball team has shown consistent improvement in regional and international competitions.

Pakistan regularly participates in events such as the Asian Games and Asian Volleyball Championships, with the men’s team recently recording notable wins in regional tournaments. 


Pakistan PM summons National Security Committee meeting as Middle East tensions surge

Updated 23 June 2025
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Pakistan PM summons National Security Committee meeting as Middle East tensions surge

  • Chaired by the prime minister, NSC is the principal decision-making body on Pakistan’s national security matters 
  • Experts warn Pakistan, which shares a porous border with Iran, may face security, economic challenges as conflict worsens

KARACHI: Pakistan’s premier Shehbaz Sharif has summoned a meeting of the National Security Committee (NSC) today, Monday, an official of the Prime Minister House confirmed amid surging tensions in the Middle East following the United States’ (US) involvement in the Iran-Israel military conflict. 

The NSC is the principal decision-making body on Pakistan’s national security matters. Chaired by the prime minister, it comprises the ministers of defense, foreign affairs, finance, interior, information and senior military leadership. 

The meeting will take place a day after US targeted key Iranian nuclear facilities, joining Israel in its military conflict against Iran which began on June 13. Israel had launched strikes against Iran’s nuclear sites and targeted its military leadership, saying its attack intended to prevent Tehran from developing nuclear weapons. Iran insists its nuclear program is for peaceful purposes. 

“This [NSC meeting] is to happen today,” the official confirmed to Arab News, adding that a statement about the meeting will be released as well. 

The development takes place a day after Pakistan’s mission to the United Nations (UN) announced Islamabad, Beijing and Moscow will present a joint resolution at the UN Security Council calling for an immediate and unconditional ceasefire in the Middle East. 

As per a copy of the draft seen by Arab News, the resolution calls for an immediate and unconditional ceasefire and a diplomatic solution to the nuclear issue to reach an agreement acceptable to all parties that “guarantees the exclusively peaceful nature of the Islamic Republic of Iran’s nuclear program in exchange for complete lifting of all multilateral and unilateral sanctions.”

Pakistan has condemned the US strikes against Iran, with its UN Ambassador Asim Iftikhar Ahmad calling on the Security Council on Monday to act “urgently and decisively,” warning against the danger posed to the populations of the region as the war intensifies. 

Experts warn Pakistan, which shares a 900-kilometer porous border with Iran in its southwestern region prone to separatist militancy and cross-border attacks, will face additional security and economic challenges due to the worsening conflict between Tehran and Tel Aviv. 

Financial analysts have warned that surging global oil prices due to the worsening conflict will cause economic setbacks for Pakistan, which relies on expensive fuel imports for its energy demands. Islamabad is grappling with a macroeconomic crisis amid a precarious balance of payment position. 

The crisis also raises questions about how Islamabad will navigate its delicate balancing act between Iran, other Gulf partners, and the US, which remains one of Pakistan’s largest trading partners and a critical source of military and economic assistance. How Pakistan manages these competing ties amid an escalating regional conflict could test its diplomacy in the coming weeks.


Pakistani superstar Hania Aamir to star alongside India’s Diljit Dosanjh in ‘Sardaar Ji 3’

Updated 23 June 2025
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Pakistani superstar Hania Aamir to star alongside India’s Diljit Dosanjh in ‘Sardaar Ji 3’

  • Dosanjh announces Sardaar Ji 3 will release on June 27 in theaters around the world except India 
  • Frequent political tensions between India and Pakistan prevent artists from working with each other

ISLAMABAD: Pakistani superstar Hania Aamir recently shared the trailer of her upcoming Indian Punjabi horror-comedy movie “Sardaar Ji 3” in which she stars alongside famed Indian singer Diljit Dosanjh, announcing that the film will release in cinemas around the world except India on June 27.

Frequent political tensions between bitter rivals India and Pakistan have restricted artists from both countries from working with each other over the years. Indian producers imposed an unofficial ban on Pakistani artists in 2016 after ties deteriorated. Pakistan also banned the screening of Indian movies after relations with New Delhi reached a new low in 2019 over the disputed Kashmir region.

Pakistani superstar Hania Aamir (R) and Indian singer Diljit Dosanjh in the trailer of their upcoming punjabi film ‘Sardaar Ji 3’, released on June 23, 2025. (Screengrab/ @whitehillmusic/ Youtube) 

Tensions between India and Pakistan surged in May after they engaged in a days-long military conflict before the United States brokered a ceasefire between them. Several Indian media outlets reported this month that Aamir has been replaced as the female lead from Sardaar Ji 3 following the latest hostilities between the neighbors.

“SARDAAR JI 3 releasing 27th June OVERSEAS only!” Aamir wrote on social media platform Instagram on Sunday, sharing the trailer of the film. 

Dosanjh confirmed on his Instagram as well that the movie will not release in India. 

“Sardaar Ji 3 releasing 27th June OVERSEAS only,” the Indian actor wrote.

The movie has been directed by Aamr Hundal and other than Dosanjh and Aamir, stars Gulshan Grover, Neeru Bajwa, Jasmin Bajwa and Manav Ji in prominent roles. 

Pakistani superstar Hania Aamir in the trailer of her upcoming punjabi film ‘Sardaar Ji 3’, released on June 23, 2025. (Screengrab/ @whitehillmusic/ Youtube) 

As per the film’s trailer, Aamir and Neeru Bajwa both play romantic leads opposite Dosanjh. All three work together as ghost hunters tasked with removing a spirit from a mansion in the UK. 

Pakistani actor Fawad Khan and Indian actress Vaani Kapoor’s Bollywood film “Abir Gulaal” was scheduled to release in India on May 9. However, India’s broadcasting ministry said in April it would not allow the film to be released in the country following the April 22 killing of 26 people at a tourist resort in Indian-administered Kashmir.

India accused Pakistan of being involved in the attack, which Islamabad denied. After weeks of tensions, both countries engaged in armed conflict before the ceasefire on May 10. 


Pakistan urges UN Security Council to act ‘decisively’ as Iran-Israel conflict intensifies

Updated 23 June 2025
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Pakistan urges UN Security Council to act ‘decisively’ as Iran-Israel conflict intensifies

  • Middle East tensions surged on Sunday after US carried out airstrikes against Iran’s nuclear facilities
  • Pakistan calls for “peaceful, lasting resolution” to Iran’s nuclear issue via dialogue and diplomacy

ISLAMABAD: Pakistan’s ambassador to the United Nations has urged the Security Council to act “urgently and decisively” to ensure cessation of hostilities in the Middle East, as tensions surge following Washington’s move to join the ongoing conflict between Iran and Israel. 

The international community has intensified its calls for peace in the Middle East after US carried out attacks against Iran’s key nuclear facilities on Sunday, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.

Pakistan’s UN mission announced on Sunday that Islamabad, Beijing and Moscow will present a joint resolution calling for an immediate and unconditional ceasefire in the Middle East. The announcement was made as the Security Council convened an emergency session to discuss US airstrikes on Iranian nuclear sites. Pakistan has strongly condemned the American strikes, reiterating that Tehran reserves the right to respond under the UN Charter.

“As the body entrusted with the primary responsibility for the maintenance of international peace and security, the Security Council must act urgently and decisively,” Pakistan’s Permanent Representative to the UN Asim Iftikhar Ahmad said during the Security Council emergency meeting. 

He said it was the Security Council’s collective responsibility to reject and condemn attacks against Iran launched since June 13, stating that they were in “clear contravention” of international law and the UN Charter. The Pakistani envoy reaffirmed that it was the Security Council’s obligation to protect civilian lives and properties on both sides. 

Ahmad called for an immediate cessation of hostilities and a “complete ceasefire” in the Middle East. 

“Promote urgent recourse to dialogue and diplomacy, consistent with the purposes and principles of the UN Charter, to find a peaceful and lasting resolution to the Iranian nuclear issue,” the Pakistani ambassador said. 

Iran on Sunday requested for the UN Security Council meeting, calling on the 15-member body “to address this blatant and unlawful act of aggression, to condemn it in the strongest possible terms” following America’s strikes. 

Israel’s UN Ambassador Danny Danon said in a statement on Sunday that the US and Israel “do not deserve any condemnation, but rather an expression of appreciation and gratitude for making the world a safer place.”

UN Secretary-General Guterres branded the US strikes on Iran as a “dangerous escalation in a region already on the edge – and a direct threat to international peace and security.”

Iran’s UN Ambassador Ali Bahreini said Washington had decided to “destroy diplomacy” with its attacks, making it clear that the Iranian military will decide on the “timing, nature and scale” of its response.