Pakistan finance minister hints at ‘Plan B’ as revival of IMF bailout hangs in balance

In this handout photograph, taken and shared by the Ministry of Finance, Pakistan Finance Minister Ishaq Dar (center) addresses the post-budget press conference in Islamabad on June 10, 2023. (Photo courtesy: Government of Pakistan)
Short Url
Updated 10 June 2023
Follow

Pakistan finance minister hints at ‘Plan B’ as revival of IMF bailout hangs in balance

  • Ishaq Dar says Pakistan is expecting transfer of $2 billion and $1 billion from Saudi Arabia and UAE respectively before June 30
  • Minister says the government has levied only $697 million additional taxes in the budget to promote documentation of economy

ISLAMABAD: Pakistan’s finance minister Senator Ishaq Dar said on Saturday his government was looking for a ‘Plan B’ in case the International Monetary Fund (IMF) did not release a $1.1 billion tranche of the stalled $6.5 billion bailout program Islamabad secured in 2019.

The statement came a day after the minister presented a Rs14.46 trillion ($50.4 billion) budget for the next fiscal year, setting a tax collection target of Rs9.2 trillion ($32 billion) that is 23 percent higher than the last year’s and envisioning a 3.5 percent GDP growth.

The government’s fiscal plan was unveiled amid record inflation, a depreciating currency, and fast-depleting foreign exchange reserves. While it stated its intention to provide relief to financially vulnerable segments, the budget numbers were aimed at securing the tough IMF loan amount to stave off a balance of payments crisis.

“A Plan B is always there and that is self-reliance,” the finance minister said, addressing a post-budget press conference in Islamabad. “Pakistan will not default.”

“If we don’t get it, we have a plan ready …. we hope to receive $1.1 billion [tranche], but there is no chance for the tenth review now,” the finance minister said. “We will only be fair to get the money after the ninth review.”

Pakistan’s IMF bailout program has been stalled since November and is set to expire on June 30, with its 9th and 10th reviews still pending the IMF board’s approval.

The finance minister said Saudi Arabia and the United Arab Emirates (UAE) had given a commitment of $2 billion and $1 billion respectively to the IMF as external financing support to Pakistan. 

“We expect if this amount was not transferred to Pakistan by June 30, it will come next year then,” he said, clarifying that debt rescheduling from the multilaterals was not on the cards.

“We can always negotiate with the bilateral for an ease-out.”

The finance minister clarified that there was no need to reschedule domestic loans because it would be a “serious issue” if a sovereign country could not fulfil “requirement of own currency.” 

He said the nation would have to “learn to live” as the country could not print dollars to repay external debts.

“We are trying to mobilize exports and remittances for the external debt [repayments],” Dar said.

About the 3.5 percent growth target, he termed it modest, realistic and in line with the IMF projection, admitting that servicing was one of the biggest items in the budget that the government was “trying to reverse.”

The government has paid special attention to agriculture and information technology (IT) sectors in the budget and given them tax exemptions on seeds and the import of machinery, according to Dar.

The economy is out of the woods now as hectic efforts by the government halted further decline of the economy.

He defended the government’s tax and non-tax revenues as “realistic and achievable” that were set after thorough consultations with stakeholders.

The budget levied new taxes of just Rs200 billion ($697 million) as the tax revenue had increased from Rs7,200 billion in the previous fiscal year to Rs9,200 billion.

“These 200 billion rupees taxes are mostly to promote documentation or fix an anomaly. This is not inflationary,” he said, adding that Rs900 billion out of Rs1,074 billion subsidies allocated in the budget were only meant for the power sector.

“This was a major stumbling block between us and the IMF, we have to focus on it,” he said. “No new major subsidy is being given.”


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

Updated 02 February 2025
Follow

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
Follow

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
Follow

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
Follow

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
Follow

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.