Meeting IMF bailout conditions, advancing Arab investments key challenges for caretaker government — analysts

A pedestrian walks past the International Monetary Fund (IMF) headquarters in Washington, DC on January 10, 2022. (AFP/File)
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Updated 16 August 2023
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Meeting IMF bailout conditions, advancing Arab investments key challenges for caretaker government — analysts

  • Pakistani economists say achieving primary surplus targets agreed with IMF a daunting task for caretaker government
  • Financial experts believe caretaker government will face pressure finalizing projects agreed with Arab investors

KARACHI: Pakistan’s Caretaker Prime Minister Anwaar-ul-Haq Kakar will face several challenges while he governs Pakistan, which includes implementing a tough International Monetary Fund (IMF) loan program, advancing Arab investments and ensuring the national currency remains stable, Pakistani economists and financial experts said on Wednesday.

The outgoing government of former prime minister Shehbaz Sharif signed a $3 billion standby agreement (SBA) with the IMF as Pakistan narrowly avoided a sovereign default. The South Asian country is still reeling from staggering inflation, a weak currency and dwindling foreign exchange reserves. The devastating floods of 2022 wreaked immense damage on Pakistan’s already fragile economy.

Most financial experts believe implementing the fund’s program will be the foremost challenge for the new government.

“The caretakers at the federal level are going to face numerous challenges vis-a-vis the nine-month $3 billion SBA with the IMF,” Dr. Ikram ul Haq, a Lahore-based senior economist, told Arab News.

Dr. Haq believed the high cost of borrowing to run even the country’s day-to-day expenditure and then achieve primary surplus targets agreed with the IMF on a quarterly basis, were daunting challenges.

“It needs drastic cuts in expenditure as the revenue stream due to [Pakistan’s] sluggish economy cannot be improved,” he added.

The IMF program focuses on implementation of the FY24 budget to facilitate Pakistan’s needed fiscal adjustment and ensure debt sustainability and a return to a market-determined exchange rate, and proper forex market functioning to absorb external shocks and eliminate forex shortages.

The IMF program has also urged Pakistan to adopt an appropriately tight monetary policy aimed at disinflation; and demanded further progress on structural reforms, particularly with regard to energy sector viability, SOE governance, and climate resilience, according to IMF.

Haroon Sharif, former chairman of the Board of Investment (BoI) agreed with Haq by saying that the caretaker government is facing “immediate challenge of completing the upcoming review under the SBA.”

“Dealing with IMF is a very clear challenge,” Sharif told Arab News.

Sharif said picking the right people for the right job is another challenge for Kakar, adding that the caretaker prime ministers needed an experienced and technical team.

He said another challenge for the government would be to ensure Pakistan’s effective representation at the COP28 climate conference which would take place from November 30 to December 12 in the UAE.

Sharif said the first commitment made at the COP27 conference was made but not honored, adding that though the loss and damage fund was created, however, the money was not distributed.

“Now the challenge is to have a very solid strong team to deal with COP28 so that they could ensure future support for Pakistan,” he added.

Dr. Haq, however, said the second biggest challenge for the caretaker government is ensuring stability of the national currency.

“The second challenge is dollar to rupee parity,” Haq said, referring to the recent hike in the value of dollar against the Pakistani rupee. On Wednesday afternoon, the US dollar was trading at around Rs295 in the interbank market and at Rs302 in the open market.

“IMF will certainly ask [Pakistan] to bridge the gap between the interbank rate and open market rate,” Haq said. “The State Bank needs to take stringent measures to counter speculative business in open market.”

Sharif believes advancing projects identified by the Special Investment Facilitation Council (SIFC), a hybrid civil-military government body formed by the outgoing government to attract international investments in mining, agriculture and other sectors, will be another daunting task for the caretaker government.

“The approved projects are mostly with Saudis and UAE and now they will face pressure to deliver on those projects and finalize transactions,” Sharif said.


Pakistani military blames ‘Indian-sponsored’ militants for children’s death in northwest this week

Updated 21 May 2025
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Pakistani military blames ‘Indian-sponsored’ militants for children’s death in northwest this week

  • Protests broke out in North Waziristan after a suspected drone strike reportedly led to the killings of four children
  • The military says initial investigations have revealed the incident was carried out by ‘Fitna Al Khwarij’ militants

ISLAMABAD: Pakistan’s military on Wednesday denied responsibility for the death of four children in North Waziristan earlier this week, attributing the incident to a proscribed militant network which it said was operating on “the behest of their Indian masters.”

The incident occurred on May 19 in the Hurmuz village of Mir Ali tehsil, where a suspected drone strike reportedly led to the death of four children from the same family and injuries to five others, including a woman.

The tragedy sparked protests in the area, with locals staging a sit-in and refusing to bury the deceased until authorities provided clarity on the incident and ensured accountability for the loss of innocent lives.

In a statement released on Wednesday, the Inter-Services Public Relations (ISPR), the military’s media wing, dismissed allegations implicating Pakistan’s security forces in the strike, labeling the accusations as “entirely baseless” and part of a “coordinated disinformation campaign” aimed at discrediting the military’s counterterrorism efforts.

“Initial findings have established that this heinous act has been orchestrated and executed by Indian-sponsored Fitna Al Khwarij,” the statement said, using a term commonly employed by Pakistani authorities to describe extremist factions like the Tehreek-i-Taliban Pakistan (TTP).

The term “khwarij” is rooted in early Islamic history and refers to an extremist sect that declared other Muslims apostates.

“It is evident that these elements — acting at the behest of their Indian Masters — continue to exploit civilian areas and vulnerable populations as shields to conduct their reprehensible acts of terrorism,” the statement added. “Such tactics aims to unsuccessfully sow discord between the local population and the security forces, who together remain resolute to uproot the menace of terrorism.”

The military also reaffirmed its commitment to bringing the perpetrators to justice, emphasizing its ongoing efforts to combat militant violence in the region.


Afghanistan and Pakistan to work to upgrade diplomatic ties after trilateral talks in Beijing

Updated 21 May 2025
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Afghanistan and Pakistan to work to upgrade diplomatic ties after trilateral talks in Beijing

  • Pakistan and Afghanistan agree to work to extend China-Pakistan Economic Corridor to Afghanistan
  • Neighbors decide in principle to send ambassadors to each other’s capitals as soon as possible

ISLAMABAD: Pakistan and Afghanistan plan to upgrade diplomatic ties and will work to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan, Beijing said on Wednesday after hosting an informal meeting between Islamabad and the Afghan Taliban administration.

The announcement comes as Pakistani Deputy Prime Minister Ishaq Dar was in China on a three-day visit for trilateral talks with Chinese Foreign Minister Wang Yi and Afghanistan’s Acting Foreign Minister Amir Khan Muttaqi in Beijing.

Islamabad and Kabul had agreed in principle to send ambassadors to each other’s capitals as soon as possible, Wang said after his talks with Muttaqi and Dar.

The two countries “clearly expressed” willingness to upgrade the level of their diplomatic relations, Wang said according to a Chinese foreign ministry statement.

The officials also decided to hold the 6th Trilateral Meeting of Foreign Ministers in Kabul at a mutually agreeable date.

“Pakistan, China and Afghanistan have agreed to deepen cooperation on Belt and Road Initiative (BRI) and extend the China-Pakistan Economic Corridor to Afghanistan,” Radio Pakistan reported after Dar concluded his Beijing visit.

The Belt and Road Initiative, also known as the One Belt One Road or the New Silk Road, is China’s large-scale infrastructure development project aimed at connecting the world through land and sea trade routes. It involves investing in infrastructure like ports, railways, roads, and energy projects in over 150 countries. CPEC is a flagship of the BRI scheme under which China has pledged over $60 billion in infrastructure, energy, industrial, and agricultural projects in Pakistan.

Relations between Pakistan and Afghanistan have plummeted in recent months due to a surge in militant attacks that Islamabad blames on Afghan-based insurgents. Kabul denies it allows its territory to be used against other nations.

In December, the Afghan Taliban said bombardment by Pakistani military aircraft in Afghanistan’s eastern Paktika province had killed at least 46 people, most of whom were children and women.

Pakistan has not confirmed the strikes but said at the time it was carrying out “anti-terrorist operations” against militants with safe havens in Afghanistan, a charge Kabul denied.

In a statement on Wednesday, Pakistan’s foreign office said it “welcomed positive momentum in bilateral ties, including enhanced diplomatic engagement, trade, and transit facilitation.”

Afghanistan’s acting foreign minister “emphasized the importance of political and economic relations with both countries and expressed hope for further progress in these areas in the future.”

Tensions appeared to ease after a rare meeting between Muttaqi and Dar in Kabul last month where the Taliban’s acting foreign minister expressed concern over the deportation of tens of thousands of Afghans from Pakistan. Pakistan has expelled more than 80,000 Afghan nationals since the end of March as part of a renewed surge in a repatriation drive that began in 2023.

Wednesday’s meeting in Beijing signaled a further thaw, with all agreeing to a trilateral foreign ministers’ dialogue in Kabul as soon as possible.

Pakistan and Afghanistan have embassies in each other’s capitals, but they are led by charge d’affaires, not ambassadors. China was the first country to accept an ambassador from the Taliban-run administration in Kabul though it does not formally recognize its government. Several other states, including the UAE, followed.

During the talks, China and Pakistan voiced support for the reconstruction and development of Afghanistan, and are willing to expand trade exchanges with Afghanistan, said Wang.

The meeting also agreed on security cooperation, combating terrorist forces and safeguarding regional peace and stability, he said.

With inputs from Reuters


Beloved strongman: Support for Pakistan army chief surges after India conflict

Updated 21 May 2025
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Beloved strongman: Support for Pakistan army chief surges after India conflict

  • Government has promoted Gen Asim Munir to Field Marshal “in recognition of strategic brilliance and courageous leadership” in latest standoff with India
  • Survey conducted after the India conflict by Gallup Pakistan, a local pollster, found that 93 percent of respondents felt their opinion of the military had improved 

ISLAMABAD: Pakistan’s army chief General Asim Munir is the most powerful man in the country, but his popular support has surged after the worst conflict in decades with arch-rival India, shattering criticism of interference in politics and harshly cracking down on opponents.

A grateful government on Tuesday gave him a rare promotion to Field Marshal “in recognition of the strategic brilliance and courageous leadership that ensured national security and decisively defeated the enemy.”

The military has ruled Pakistan for at least three decades since independence in 1947 and wielded extraordinary influence even with a civilian government in office. But it, and its hard-line chief, have rarely received the widespread outpouring of affection seen this month that analysts say has reinforced the military’s dominance in the nuclear-armed nation.

“Long live General Asim Munir!” read placards held aloft in rallies in recent days in towns across Pakistan. His picture was put up on lamp posts and bridges, with some banners saying: “You are our savior!“

A survey conducted after the conflict by Gallup Pakistan, a local pollster, found that 93 percent of respondents felt their opinion of the military had improved.

Munir’s most bitter domestic foe, jailed former Prime Minister Imran Khan, also congratulated the military after this month’s clashes with India, claimed by both nations as a victory.

“It’s my country, it’s my army,” Khan said in a post on X last week. “I pay tribute to the Pakistan Air Force and all our military personnel for their professionalism and outstanding performance.”

Yousuf Nazar, a political commentator, said of Munir: . “He has emerged as Pakistan’s strongman with his military’s reputation restored as a formidable force.”

Six months after he took charge in November 2022, Munir was faced with the most serious challenge to the military’s hegemony when Khan’s supporters attacked and ransacked military installations.

Munir later faced sharp domestic criticism for the jailing of Khan and cracking down on supporters of his Pakistan Tehreek-e-Insaf party, as well as what critics alleged was rigging the general election last year to favor a rival party.

But the conflict with India has turned that around, said Ayesha Siddiqa, author of Military Inc, a book on the Pakistan military.

“It has made the general stronger than any other previous generals. He is a hero now,” she said, adding that the contest between the neighbors will be headed by two hard-liners, India’s Hindu nationalist Prime Minister Narendra Modi and Pakistan’s Munir, a devout Muslim.

“It’s an Islamist general versus a religious strongman,” she said.

The military did not respond to questions sent by Reuters.

FUNDAMENTAL DIFFERENCE

The spark for the latest fighting between the neighbors was an April 22 attack in Indian Kashmir that killed 26 people, most of them tourists. New Delhi blamed the incident on “terrorists” backed by Pakistan, a charge denied by Islamabad.

On May 7, the Indian military carried out air strikes on what it called “terrorist infrastructure” in Pakistan, in response to the attack in Kashmir.

Pakistan claimed to have downed at least 5-6 Indian fighter jets and carried out air strikes on Indian military bases. India has indicated that it suffered some losses and inflicted major damage on key Pakistani air bases and air defiance systems.

Munir, who has memorized the Muslim holy book, the Qur’an, has publicly underlined what he has said are fundamental differences between Islamic Pakistan and predominantly Hindu India.

“Our religion is different. Our customs are different. Our traditions are different,” he said in a speech in Islamabad a week before the attack in Indian Kashmir.

The Indian army “with all their wherewithal” cannot “intimidate” Pakistan, he said, peppering his comments with verses from the Qur’an.

“Pakistan needs to be a hard state.”

Pakistan’s counterstrike against India was named by him as “Bunyan Marsoos,” after a Qur’anic verse, which means Iron Wall, according to the military. It was launched on May 10 to coincide with dawn prayers, considered an auspicious time for Muslims.

Munir, the son of a schoolteacher, is an infantry officer and a former head of both the powerful Inter-Services Intelligence and Military Intelligence. He remains army chief until November 2027 and could be appointed for another five-year term at that point.

Husain Haqqani, a former Pakistani ambassador to the United States, said that even before the latest conflict, Munir was more hawkish on India than his predecessor General Qamar Javed bajwa as army chief, who had taken a more pragmatic and less ideological approach, seeking to improve relations.

“Conflicts with India remind Pakistanis of the fragility of their country and they rally to their army as the entity that will save the country,” said Haqqani.

“The recent show of strength and standing up to India has helped General Munir solidify his position within the country.”


Jumbo task: 400 pills a day for elephants with TB in Pakistan

Updated 21 May 2025
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Jumbo task: 400 pills a day for elephants with TB in Pakistan

  • Vets hide medicines inside food ranging from apples, bananas and Pakistani sweets
  • Sisters Madhubala and Malika were diagnosed with tuberculosis earlier this month 

KARACHI: A team of doctors and vets in Pakistan has developed a novel treatment for a pair of elephants suffering from tuberculosis that involves feeding them at least 400 pills a day. 

The jumbo effort by staff at the Karachi Safari Park involves cunningly administering the tablets, the same as those used to treat TB in humans, hidden inside food ranging from apples and bananas to Pakistani sweets. 

Dr. Buddhika Bandara, a Sri Lankan veterinary surgeon who is treating elephants Madhubala and Malika, said they did not have a “rare disease” as tuberculosis was common in elephants in Asia.

“Giving treatment of TB to elephants is always challenging whenever, whatever and wherever, is always challenging not only in our country Sri Lanka, or in Pakistan, it is challenging everywhere actually,” the vet said.

“Every day we have to think about new methods of giving medicine.”

Bandara said the elephants showed some stress when the treatment was first started but gradually adapted to the procedure and were now getting better.

Under the treatment plan, the elephants will receive medication and monitoring for ten months after the initial phase. They are being kept under round-the-clock supervision, and park officials have restricted access to the enclosure for one year to minimize stress and prevent any risk of disease transmission.

Ali Baloch, a 22-year-old mahout, said though he looked after the elephants, he was unaware that they had TB. 

“The team is saying now that they have the disease. That’s why we must wear mask, and boots, do not go without them. It can infect me and my children as well.”

The two elephants Malika and Madhubala took their medication differently, he added. 

“Malika takes medicine by her trunk while Madhubala can take it directly by her mouth,” Baloch said. “They eat in this way. Malaika smells medicine so she takes by its trunk. To change the taste, we give medicine in sweet potatoes, bananas and other sweet items.”

The novel methods had to be used to ensure the elephants did not reject the treatment.

“They will not eat these [pills] so easily, they are bitter in taste.”

Visitors to the Safari Park are currently only allowed to view the elephants from designated buses or a safe distance, as part of efforts to ensure a stress-free environment during their recovery.

The cautious approach follows years of concern raised by international animal welfare organizations over the treatment of elephants in Karachi.

In 2021, the global group Four Paws assessed the city’s elephants and called for urgent medical care, improved nutrition and enriched environments to support their wellbeing.

The issue gained further attention after the deaths of two elephants — Noor Jehan in 2023 at the Karachi Zoo and Sonu in late 2024 at the Safari Park — both of which highlighted systemic gaps in animal care.

Since then, local authorities have taken steps to improve conditions, including the formation of a technical committee and increased collaboration with foreign veterinary experts.

Madhubala, Noor Jehan, Malika and Sonu were caught in the wild at a young age and brought to Pakistan together in 2009 but were soon separated, with Noor Jehan and Madhubala moved to the Karachi Zoo and Malika and Sonu to the city’s Safari Park. 

Noor Jehan died in April 2023 at age 17, following a prolonged illness caused by neglect, leaving Madhubala alone.

In November last year, she was reunited with Malika and Sonu at the Safari Park. Sonu has since also passed away due to illness. 


A look at recent deadly attacks in Pakistan as it battles rising militancy

Updated 21 May 2025
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A look at recent deadly attacks in Pakistan as it battles rising militancy

  • Government facing insurgencies in northwest and growing separatist insurgency in southwest
  • Pakistan is also currently at loggerheads with both its neighbors India and Afghanistan 

Following are some recent deadly attacks in Pakistan, where the government is facing insurgencies on two fronts — militant attacks in the northwest and a growing separatist insurgency in the south.

MAY 21, 2025 
At least three children were among five people killed when a suicide bomber targeted an army school bus in the restive Pakistani southwestern province of Balochistan, in an attack the military blamed on Indian proxies.
The Indian government did not respond to a request for comment on the accusation.

MARCH 11, 2025
A total of 31 people, including soldiers, staff, and civilians, were killed by militants who hijacked a train as it traveled through a remote mountain pass in Balochistan. The Baloch Liberation Army (BLA), the biggest of several ethnic armed groups fighting the government, claimed responsibility.

MARCH 4, 2025
Suicide bombers drove two vehicles packed with explosives into a military base in the town of Bannu in the northwest, killing 18 people, including six children.
No group claimed responsibility for the violence.

NOVEMBER 1, 2024 
A blast targeting a police van in Mastung town in Balochistan killed seven people, including five school students, and injured 23 others.
No group claimed responsibility.

AUGUST 26, 2024 
At least 38 civilians and 14 soldiers were killed as separatist militants attacked police stations, railway lines and highways in Balochistan, and security forces launched retaliatory operations.
The BLA claimed responsibility for the attacks, the most widespread in the country in years.

DECEMBER 12, 2023 
At least 57 people, including seven children, died as suicide bombings ripped through two mosques in Mastung while believers marked the birthday of the Prophet Muhammed (pbuh).
No group claimed responsibility.

JULY 31, 2023 
A suicide bombing targeting a hard-line religious group’s political rally in Khyber Pakhtunkhwa province’s Bajaur region killed 56 people. The Daesh militant group claimed responsibility for the blast, which took place in northwestern Pakistan.