Pakistan’s liquidity risk remains high even with IMF deal — Moody’s

A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar, Pakistan, on December 3, 2018. (REUTERS/File)
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Updated 04 July 2023
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Pakistan’s liquidity risk remains high even with IMF deal — Moody’s

  • Pakistan secured a critical $3 billion short-term financial package from IMF on Friday
  • Moody’s says new IMF financing will not be enough to allow Pakistan to meet debt repayments

MUMBAI: Pakistan’s liquidity risks will remain high even if a new stand-by arrangement (SBA) with the International Monetary Fund (IMF) is approved, Moody’s Investors Service said on Tuesday.

The South Asian country secured a badly needed $3 billion short-term financial package from the IMF on Friday, giving its crisis-hit economy a much-awaited respite as it teeters on the brink of default.

“We expect government liquidity risks to remain high, even if the new SBA is approved. It is uncertain whether Pakistan will secure the full $3 billion of IMF financing during the nine-month program,” Moody’s said in a statement.

“The government’s commitment to continually implement reforms, particularly revenue-raising measures, will also be tested as it prepares for elections due by October.”

The new IMF financing on its own will not be enough to allow Pakistan to meet all its external debt repayments, Moody’s said.

However, an IMF disbursement is likely to catalyze financing from other bilateral and multilateral partners, which will be as critical in aiding Pakistan meet its financing needs, it said.

“Pakistan will need a longer-term financing plan to meet its large external financing needs over the next few years,” it said.

Pakistan could look at another IMF program which could be in place for a few years but this is likely to become clear only after the general election, it said, adding that negotiations over future programs would take time even if they do succeed.

“Until a new program is agreed, Pakistan’s ability to secure loans from other bilateral and multilateral partners will be severely constrained beyond the period of this new SBA.


Pakistan’s death toll from heavy rains since June 26 surges past 100

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Pakistan’s death toll from heavy rains since June 26 surges past 100

  • Punjab reports highest number of rain-related deaths, 39, followed by Khyber Pakhtunkhwa with 31
  • Pakistan has warned of flash flood risks in Punjab, KP and Balochistan provinces from July 12-17

ISLAMABAD: The death toll from heavy rains and flash floods in Pakistan since June 26 has climbed to 104, the National Disaster Management Authority (NDMA) said in its latest report this week, as the country braces for more monsoon downpours and possible floods. 

As per the NDMA’s latest situation report, Punjab has reported the highest number of deaths from rain-related incidents, 39, followed by Khyber Pakhtunkhwa (KP) with 31, Sindh with 17, Balochistan with 16, while Azad Kashmir also reported one death since June 26. 

“The total number of 104 deceased include 49 children, 37 men and 18 women,” the NDMA report said, adding that 200 people were injured, among them 76 children, 78 men and 46 women.

The report further said 413 houses have been damaged since June 26 due to rain-related incidents across the country, with the most houses damaged in KP, 146, Sindh 86, Punjab 54, Balochistan 52, Azad Kashmir 45 and 30 in Gilgit-Baltistan. 

Sindh reported the highest number of livestock that perished due to rains, 58, followed by KP with 43, Punjab with seven and Azad Kashmir with three. 

The NDMA, meanwhile, issued a fresh alert for heavy rains on Saturday. It warned of potential flood and flash flood risks in various regions of Punjab, KP and Balochistan provinces from July 12 to July 17 in its latest advisory. 

The authority advised administrations to ensure the readiness of emergency teams, the availability of machinery and ensure clearance of drainage systems.

It also called on tourists to avoid high-altitude areas, saying that residents in vulnerable zones must secure valuables, vehicles and livestock, and keep essential supplies. 

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change. In 2022, record-breaking monsoon rains and glacier melt triggered catastrophic floods that affected 33 million people and killed more than 1,700.


Pakistan vows political, diplomatic support for Kashmiris on Kashmir Martyrs’ Day

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Pakistan vows political, diplomatic support for Kashmiris on Kashmir Martyrs’ Day

  • Pakistan observes Kashmir Martyrs’ Day on July 13 to honor 22 Kashmiris killed in 1931 by then ruler of disputed territory
  • Nuclear-armed India and Pakistan have both fought three wars since 1947, with two of them over disputed Kashmir

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday vowed to extend Pakistan’s diplomatic and political support to the people of Kashmir on Kashmir Martyrs’ Day, calling for the resolution of the dispute as per the United Nations Security Council resolutions, state-run media reported. 

Pakistan marks Kashmir Martyrs’ Day on July 13 every year to pay tribute to 22 Kashmiri protesters who were shot dead in Srinagar, the capital of Indian-administered Kashmir, in 1931 by soldiers of Maharaja Hari Singh, the Hindu ruler of the then princely state.

Pakistan sees the day as a symbol of Kashmiris’ struggle against what it says is illegal Indian occupation in the disputed Himalayan valley. Both India and Pakistan have fought three wars since 1947, with two of them over Kashmir. Both claim territory in full but administer only parts of it.

“The Kashmiri people have been and are sacrificing their lives in their legitimate struggle for the right to self-determination,” Sharif was quoted as saying by the Associated Press of Pakistan (APP).

“The government of Pakistan expresses its political, diplomatic and moral support in solidarity with the Muslims of Jammu and Kashmir, which is illegally occupied by India.”

Every year on the occasion, special rallies, seminars, and conferences are held across Pakistan and Azad Kashmir to express solidarity with the people of Kashmir. 

India accuses Pakistan of backing separatist militants in the part of Kashmir it administers. Islamabad denies the allegations and says it only extends political and diplomatic support to Kashmiris. 

The two countries engaged in the worst fighting between them in decades in May when gunmen shot dead 26 people, mostly tourists, in Indian-administered Kashmir. India blamed Pakistan for supporting the attack, which Pakistan strongly denied and called for an international probe into the incident. 

The two countries engaged in a military conflict for four days that killed over 70 people on both sides of the border before US President Donald Trump announced a ceasefire between Delhi and Islamabad on May 10. 


Punjab launches Pakistan’s first riot management police force

Updated 13 July 2025
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Punjab launches Pakistan’s first riot management police force

  • Riot management force equipped with advanced crowd-control equipment, safety gear, riot protection tools, says report
  • Force’s training followed manuals from the US, Turkiye, Europe and other developed countries, says report by state-run media 

ISLAMABAD: The chief minister of Pakistan’s most populous Punjab province this week launched the country’s first-ever riot management police force, state-run media reported, saying the move would prove instrumental in protecting people’s lives and ensure the safety of government infrastructure. 

As per a report in the state-run Associated Press of Pakistan (APP), a comprehensive eight-week training program was held at the Police Training Center in Punjab’s Farooqabad city for the first batch of the force. 

The training followed manuals from the United States, Turkiye, Europe and other developed countries, and was delivered by experts trained in Turkiye, the report said. During the passing-out ceremony, officers demonstrated exceptional crowd-control drills designed to safely manage violent protest scenarios.

“Punjab Chief Minister Maryam Nawaz Sharif has established Pakistan’s first-ever dedicated Riot Management Police Force, marking a major milestone in law enforcement and crowd control in the province,” the APP report said on Saturday. 

“The new force has been created within the Punjab Police framework to protect the life, property, and safety of citizens as well as government infrastructure.”

The report said that the Riot Management Police, which consists of physically active, capable, and agile officers, was trained specifically to respond to volatile situations with professionalism.

It said the first phase of the Riot Management Police Force includes 5,000 personnel, out of which 3,000 have successfully completed training. The report said these personnel will be deployed across Punjab’s regional headquarters, with 250 officers assigned to each region to ensure “swift and organized response” to unrest.

Each Riot Management Police team of 250 personnel is supported by 15 specialized sub-units, including the First Aid Unit, the Drone Surveillance Team, the Crowd Engagement Team, the Negotiation Team, the Crowd Control Unit, the Arrest Unit, the Evacuation Team, the K9 (dog handler) Unit, the Sniper and Tactical Response Team.

“The force has been equipped with advanced crowd-control equipment, safety gear, and riot protection tools, and personnel will receive special allowances based on their professional roles,” APP said. 

Punjab Chief Minister Maryam Nawaz was briefed that the force has been specially trained to manage all types of crowds, including organized violent groups. The aim is to not only neutralize threats but also engage with protesters proactively to prevent damage to public and private property, she said.

“The establishment of this force brings a new dimension to modern governance,” Nawaz was quoted as saying. “By safely controlling angry crowds, it becomes possible to de-escalate tension and prevent chaos.”

Pakistan has historically seen violent protests that have caused significant damage to people’s lives, property and government infrastructure. 


Pakistani man deported after boarding wrong flight to Jeddah serves legal notice to airline

Updated 13 July 2025
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Pakistani man deported after boarding wrong flight to Jeddah serves legal notice to airline

  • Civil aviation regulator urged to impose ‘heavy fine’ on the private airline over security lapse
  • Malik Shahzain Ahmed ‘mistakenly’ boarded Jeddah flight instead of Lahore–Karachi route

KARACHI: A Pakistani man who was mistakenly flown to Saudi Arabia earlier this week has issued a legal notice to Air Sial, seeking compensation for “gross negligence,” his lawyer said on Saturday.

Malik Shahzain Ahmed, a resident of Karachi, was scheduled to fly from Lahore to Karachi on July 8 on the private airline’s flight PF-146. However, he boarded an international flight to Jeddah without any visa or passport and was subsequently detained and deported by Saudi immigration authorities.

A legal notice sent by Ahmed’s counsel to Air Sial’s chief executive reads the airline’s “gross dereliction of duty, reckless conduct and operational failure” had led to the wrongful boarding of his client on the international flight.

“We have served the airline a notice, and if they fail to compensate my client, we will file a petition,” Advocate Muhammad Nawaz Dahri told Arab News.

The legal notice says Ahmed was denied assistance by the airline and subjected to humiliation, distress. He also faced severe mental trauma and had to purchase another ticket to return to Karachi.

The notice accuses the airline of violating the Sindh Consumer Protection Act, 2014, citing “defective” service, lack of identity verification and “misleading representations regarding safety and professionalism.”

It also alleges breaches of Pakistan’s Civil Aviation Rules, 1994, the Pakistan Immigration Ordinance, 1979, and international air travel conventions, including the Montreal Convention of 1999.

“Your airline’s failure to perform this basic due diligence endangered passenger security and violated air travel norms,” the notice added.

In a statement on Friday, the Pakistan Airport Authority said it had taken notice of the lapse and written letters to the civil aviation regulator and the station manager.

“In the letter, the civil aviation regulator has been requested to impose a heavy fine on the airline that is guilty of negligence,” PAA spokesman Saifullah, who goes by a single name, told Arab News.

In a video clip circulating online, Ahmed said he went to Lahore airport to board the Karachi-bound flight on July 8 but “mistakenly” sat in the Jeddah-bound flight after collecting his boarding pass.

“After two hours, I asked [myself], ‘This plane doesn’t seem to be landing,’” he said. “Then I got to know that I had boarded the wrong plane.”

The legal notice demands a written response within two days alongside compensatory damages.

It warns of legal proceedings if the airline fails to comply, including a constitutional petition and complaints to Pakistan’s aviation and human rights authorities.

Air Sial is yet to comment publicly on the matter.


Pakistani province offers to help build cancer hospital in Afghanistan

Updated 12 July 2025
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Pakistani province offers to help build cancer hospital in Afghanistan

  • Ali Amin Gandapur tells Afghan envoy his administration is ready to support the welfare of the Afghan people
  • KP chief minister says he wants to send a delegation to the neighboring state to ‘promote trust and harmony’

ISLAMABAD: The provincial administration of Pakistan’s northwestern Khyber Pakhtunkhwa (KP) on Saturday offered assistance to build a cancer hospital in neighboring Afghanistan during a meeting between Chief Minister Ali Amin Gandapur and Afghan envoy to Pakistan, Sardar Ahmad Shakib.

KP shares a long and porous border with Afghanistan and maintains strong cultural and linguistic ties with Pashtun populations across the frontier.

The province has also experienced a major surge in militant violence in recent months, with Pakistani officials frequently accusing armed groups based in Afghanistan of orchestrating cross-border attacks, a claim the Taliban government in Kabul denies.

“Chief Minister Ali Amin Gandapur held an important meeting with Afghanistan’s Ambassador Sardar Ahmad Shakib, during which bilateral relations, mutual cooperation and regional stability were discussed in detail,” the KP administration said in a statement.

“Gandapur offered assistance in establishing a cancer hospital in Afghanistan and assured full support in the agricultural sector [to Kabul] as well,” it added. “He expressed his commitment that the Khyber Pakhtunkhwa government is ready to play every possible role in the welfare of the Afghan people.”

Ties between Pakistan and Afghanistan became strained in 2023 when Islamabad launched a major crackdown on undocumented migrants, most of them Afghans, citing security concerns.

While Pakistan’s federal administration and military adopted a tough posture toward Kabul, it was widely reported in the local media that the KP government wanted diplomatic engagement with Afghan Taliban, signaling an interest in negotiated cooperation.

The two sides have recently sought to reset relations and agreed to appoint ambassadors following a China-facilitated tripartite meeting this year.

Saturday’s discussion also emphasized the deep cultural and ethnic links between the two countries, with both sides agreeing that these bonds should be strengthened through mutual respect and cooperation.

The statement said Gandapur plans to send a special delegation to Afghanistan “to serve as a bridge between the people of Pakistan and Afghanistan and to promote trust and harmony.”

Ambassador Shakib expressed appreciation for the KP government’s support for Afghan refugees and reaffirmed his commitment to enhancing bilateral ties through peaceful and people-centric initiatives.