IMF chief wants Pakistan to increase tax revenue from rich, protect vulnerable

In this handout photo, taken and released by the Prime Minister's Office on September 20, 2023, Caretaker Prime Minister Anwaar-ul-Haq Kakar (2nd right) speaks to the International Monetary Fund Managing Director, Kristalina Georgieva (left), at the United Nations Headquarters in New York on the sidelines of the 78th UNGA Summit. (Photo courtesy: PMO)
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Updated 22 September 2023
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IMF chief wants Pakistan to increase tax revenue from rich, protect vulnerable

  • The poor segments have been suffering due to high inflation which the government has attributed to IMF reforms
  • Kristalina Georgieva says economic reforms are not easy to implement but they are in the interest of Pakistani people

ISLAMABAD: International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Friday her organization had been consistently communicating the need for Pakistani authorities to generate more tax revenue from wealthier social segments while protecting the underprivileged classes in the country.

The top IMF official made the comment during a brief interaction with a Pakistani reporter on the sidelines of the 78th United Nations General Assembly session in New York.

Her statement comes against the backdrop of spiraling inflation in Pakistan which has primarily affected the poor. The government has consistently attributed the increasing cost of living in the country to stringent economic reforms recommended by the international lender while approving a $3 billion bailout in June.

“Let me send a simple message to everybody in Pakistan,” she said while speaking to Geo News correspondent. “What we are asking in our program is please collect more taxes from the wealthy and please protect the poor people of Pakistan.”

“I do believe that this is in line with what people in Pakistan would like to see for the country,” she added.

The IMF chief acknowledged the conditions laid down by her organization to revitalize Pakistan’s economy and address the mistakes of the past were not easy to implement.

However, she maintained they were in the interest of the people of Pakistan.

Georgieva statement comes following her meeting with Prime Minister Anwaar-ul-Haq Kakar on Tuesday in which she was briefed on measures taken by the country’s interim administration to stabilize the economy.

The IMF asked Pakistan to raise energy prices and following market-driven exchange rate which made the CPI hit a record 38 percent this year and the national currency plummet to all-time lows.

Kakar said he had a “constructive dialogue” with the IMF chief who, in turn, said there was an agreement to follow policies to ensure stability and foster sustainable and inclusive growth in Pakistan.


Trump’s mediation offer renews global focus on Kashmir after India-Pakistan escalation

Updated 8 sec ago
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Trump’s mediation offer renews global focus on Kashmir after India-Pakistan escalation

  • Analysts say Trump’s offer brings global spotlight on Kashmir conflict, “a diplomatic coup for Pakistan”
  • India has always insisted Kashmir is India’s internal issue and opposed any third-party intervention

SRINAGAR, INDIAN-ADMINISTERED KASHMIR: A series of military strikes last week by India and Pakistan brought the nuclear-armed rivals closer to a broader war. The possibility of a nuclear conflagration seemed real and the fighting only stopped when global powers intervened.

Experts say the crisis deepened the neighbors’ rivalry as both crossed a threshold with each striking the other with high-speed missiles and drones. The tit-for-tat strikes also brought Kashmir again into global focus, as the US President Donald Trump offered mediation over the simmering dispute that has long been described as the regional nuclear flashpoint.

Paul Staniland, South Asia expert and a professor of political science at the University of Chicago, said the four days of fighting shows that “India now feels substantial space to directly target Pakistan, as well as that Pakistan is willing to escalate in response.”

Unlike in past years, when fighting was largely limited to Kashmir, the two armies last week fired missiles and drones at each other’s military installations deep inside their cities and exchanged gunfire and heavy artillery along their frontier in Kashmir.

Dozens of people were killed on both sides. Each claimed it inflicted heavy damage on the other and said its strikes met the country’s objectives.

Trump touts a possible ‘solution’ for Kashmir

The fighting began Wednesday after India retaliated for last month’s attack that killed 26 people, mostly Hindu tourists, in Kashmir, a Himalayan territory claimed in entirety by both nations. India blamed Pakistan for supporting the attackers, an accusation Islamabad denied, saying no evidence was shared.

The Indian military said it could again strike Pakistan if it felt threatened. Pakistan’s military also warned against any violation of the country’s sovereignty and vowed to respond.

Pakistan and India have fought two wars over Kashmir and the specter of two nuclear-armed foes once again trading blows over the region alarmed the international community. Trump on Saturday broke news that the two countries had agreed to stop fighting after US-led talks. 

On Sunday, Trump once again offered to help and said he will work to provide a “solution” regarding the dispute over Kashmir.

Pakistan thanked the US and Trump for facilitating the ceasefire. India, however, has not said anything about Trump’s mediation offer and only acknowledged the ceasefire was reached after military contacts with Pakistan.

Trump’s Kashmir offer also provoked criticism against Prime Minister Narendra Modi’s government, which has insisted Kashmir is India’s internal issue and had opposed any third-party intervention, arguing it was fighting “Pakistan’s proxy war.”

Pakistan is trying to raise Kashmir as global issue

Pakistan’s position is that divided Kashmir is an internationally recognized dispute and must be solved according to the UN resolutions and wishes of Kashmiri people.

South Asia analyst Michael Kugelman called Trump’s offer “a diplomatic coup for Pakistan.”

“A core and consistent Pakistani foreign policy goal is to internationalize the Kashmir issue. And that’s exactly what has happened here, much to the chagrin of an Indian government that takes a rigid position that the issue is settled and there’s nothing to discuss,” he said.

Meanwhile, people on both sides of the border have heaved a sigh of relief after the ceasefire but some insisted a lasting peace will only be possible if Kashmir dispute is solved.

Praveen Donthi, senior analyst with the International Crisis Group, said “the two countries have to give Kashmiris a chair at the table of negotiations for a more durable peace process and faster resolution of the problem.” 

He said Kashmiris have lost more lives due to the conflict than government forces on both sides.

“They always have more to lose … in the absence of mechanisms that resolve the Kashmir dispute,” Donthi said.

For residents in Kashmir, the dispute is not just about India and Pakistan, or mere geopolitics and diplomacy, but about survival and peace.

“Let’s be honest, India and Pakistan are fighting over Kashmir. So let it be resolved once and forever,” said student Shazia Tabbasum.


Pakistan to get $1 billion IMF tranche today, no large fiscal impact of India standoff — finmin

Updated 12 min 47 sec ago
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Pakistan to get $1 billion IMF tranche today, no large fiscal impact of India standoff — finmin

  • IMF last week approved fresh $1.4 billion climate loan, $1 billion under bailout program 
  • Successful review approval brings disbursements to $2 billion within $7 billion loan program

KARACHI: Pakistan is expected to receive a $1 billion loan disbursement from the IMF today, Tuesday, as part of a larger $7 billion bailout agreement, Finance Minister Muhammad Aurangzeb has said.

The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash. The review approval brings disbursements to $2 billion within the $7 billion program. 

In a statement released after a virtual meeting on Monday between Aurangzeb and Johana Chua, head of emerging markets economies for Citigroup Global Markets, the finance ministry confirmed that Pakistan would receive the latest IMF tranche on Tuesday.

“The Minister also apprised the participants of the successful conclusion of a Staff Level Agreement with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), with the next tranche expected to be received tomorrow [Tuesday],” the statement said. 

“He further mentioned the approval of the Resilience and Sustainability Facility (RSF), calling it a milestone achievement for Pakistan.”

The loan disbursement comes amid a military standoff with arch-rival India, though Aurangzeb told Reuters in an interview on Monday the conflict would not have a large fiscal impact on Pakistan.

The finance minister described the conflict as a “short duration escalation” with minimal fiscal impact, stating it can be “accommodated within the fiscal space which is available to the government of Pakistan.”

When questioned about potential increased military spending in the upcoming budget, Aurangzeb deferred comment, saying it was premature to discuss specific plans. However, he said: “Whatever we need to do in terms of ensuring that our defense requirements are met will be met.”

Aurangzeb said he expects the Indus Water Treaty, which India unilaterally suspended, to be reinstated and rolled back to where it was.

He said there is not going to be any immediate impact from India’s suspension and Pakistan does not “even want to consider any scenario which does not take into account the reinstatement of this treaty.”

Tensions between India and Pakistan began mounting after the April 22 attack in Indian-administered Kashmir on Hindu tourists that killed 26 people, sparking the worst clashes between the nuclear-armed neighbors in more than two decades.

On Saturday, a ceasefire in the Himalayan region was announced by US President Donald Trump, following four days of fighting and diplomacy and pressure from Washington.

Pakistan’s federal budget for the next fiscal year, starting July, will be finalized within the next four weeks, with scheduled budget talks with the IMF to take place from May 14-23, according to the finance ministry. 


With inputs from Reuters
 


OIC welcomes India-Pakistan ceasefire, calls for ‘constructive dialogue’ to resolve issues

Updated 10 min 15 sec ago
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OIC welcomes India-Pakistan ceasefire, calls for ‘constructive dialogue’ to resolve issues

  • India and Pakistan used fighter jets, drones, missiles and artillery to attack each other last week
  • OIC calls on India, Pakistan to engage in dialogue in accordance with UN Security Council resolutions

ISLAMABAD: The Organization of Islamic Cooperation (OIC) this week welcomed the ceasefire between India and Pakistan after days of fighting, calling for the nuclear-armed neighbors to engage in “constructive dialogue” to resolve their outstanding issues, Pakistani state media reported. 

US President Donald Trump on Saturday announced India and Pakistan had agreed to a ceasefire after the two countries were engaged in conflict. The two sides used fighter jets, drones, missiles and artillery to attack each other in the worst fighting between them since the 1999 Kargil war, leaving around 70 people dead on both sides of the border.

“The Organization of Islamic Cooperation today welcomed the ceasefire between Pakistan and India and lauded the countries that brought two sides together to finalize the agreement,” state broadcaster Radio Pakistan reported on Monday. 

The global body of Muslim nations called on the international community to “redouble efforts” and encourage Pakistan and India to engage in a “constructive dialogue” to resolve outstanding issues, including the Kashmir dispute. 

It asked both countries to engage in dialogue through peaceful means and in accordance with the relevant United Nations Security Council Resolutions.

“The OIC also reaffirmed its principled and firm position, calling for a peaceful resolution to Jammu and Kashmir issue,” Radio Pakistan added. 

At the heart of India and Pakistan’s dispute lies the Himalayan territory of Kashmir. The disputed region is claimed in full by both India and Pakistan, who only govern parts of it separated by a de facto border known as the Line of Control. 

India and Pakistan have fought two wars out of three since 1947 over Kashmir. India has for years insisted Kashmir is a bilateral issue and not allowed any third-party mediation.

Tensions, however, remain high since Saturday’s announcement by Indian Foreign Secretary Vikram Misri that the 1960 World Bank-brokered treaty would remain in abeyance, signaling deeper diplomatic rifts despite the temporary cessation of hostilities between the two neighbors.

India suspended the treaty, which ensures water for 80 percent of Pakistani farms, a day after the April 22 attack in Indian-administered Kashmir. Islamabad described the Indian move to suspend the treaty as an “act of war.”


Pakistan Hajj mission chief says Saudi digital innovations have ‘revolutionized’ pilgrimage experience

Updated 40 min 5 sec ago
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Pakistan Hajj mission chief says Saudi digital innovations have ‘revolutionized’ pilgrimage experience

  • Saudi Arabia has several apps in recent years to streamline booking, health, travel and other services
  • More than 112,000 Pakistani pilgrims will benefit from the innovation during this year’s pilgrimage

ISLAMABAD: Saudi Arabia has “revolutionized” spiritual experience of Hajj pilgrims by means of various mobile applications and digital platforms, Pakistan’s Hajj mission chief said on Monday.

Over the last few years, Saudi Arabia has launched mobile apps like Nusuk, Hajj Navigator, Tawakkalna and Asefny to streamline services, making the Hajj experience smoother by offering real-time guidance and ensuring pilgrim safety.

The Nusuk app offers permit issuance, booking services, interactive maps, real-time updates and health facility access — all in multiple languages. Tawakkalna provides information and services related to the pilgrimage, Hajj Navigator offers real-time maps, crowd updates and traffic alerts. Asefny allows requests for emergency medical services.

“These innovations have made the pilgrimage significantly easier, providing services at the click of a button and eliminating the need to wait in long queues,” Director-General of Pakistan Hajj Mission Abdul Wahab Soomro told Arab News from Makkah.

He said the applications have assisted all foreign missions with early bookings and other arrangements, contributing to better Hajj planning.

“There is an e-Hajj portal where all Hajj contracts, such as those for buildings, camps and service providers are uploaded which has helped complete payments and other formalities through a unified platform,” Soomro said.

About arrangements for Pakistani pilgrims, the official said around 89,000 Pakistani pilgrims are performing Hajj under the government scheme this year and all of them have been accommodated near the Prophet’s Mosque in Madinah.

In Makkah, he said, pilgrims were given residence in the “best hotels and buildings” in Azizia and Batha Quraish neighborhoods.

“For the first time in Pakistan’s history, the Mina arrangements for government scheme pilgrims are done in fully air-conditioned camps, with sofa-cum-beds replacing mattresses and shields provided for bag storage,” he added.

Pakistan’s Hajj medical mission includes one hospital each in Makkah and Madinah, along with two dispensaries in Madinah and nine in Makkah, according to the official. All of these are fully functional.

On April 29, Pakistan launched its Hajj flight operation which will continue till May 31. However, the operations witnessed some disruptions last week due to the closure of Pakistani airspace, amid a military standoff with India.

Soomro shared that they were trying to address the flight disruptions by arranging special flights.

“More than 25,000 Pakistani pilgrims have arrived in Saudi Arabia so far; 11,543 in Makkah and 13,477 in Madinah,” he said.

The annual pilgrimage is expected to take place between June 4 and June 9 this year.

Besides the 89,000 individuals performing Hajj under the government scheme, 23,620 Pakistanis will perform the pilgrimage through private tour operators this year.


In Pakistan, ceasefire with India seen as military victory, fueling surge of nationalistic fervor

Updated 12 May 2025
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In Pakistan, ceasefire with India seen as military victory, fueling surge of nationalistic fervor

  • Pakistan has trumpeted successes in the skies, claiming its pilots shot down five Indian fighter jets in aerial battles
  • India has released satellite images showing serious damage to air strips and radar stations at Pakistani military bases

ISLAMABAD: Pakistani officials and the public on Monday celebrated a ceasefire with India as a victory in their latest military confrontation which had raised widespread concerns that the two nuclear powers could end up in all-out war before a sudden truce was called.
Tensions between India and Pakistan over an attack in Indian-administered Kashmir that New Delhi blamed on Islamabad escalated last Wednesday, with India striking multiple Pakistani cities with missiles. Islamabad said 31 civilians were killed while India insisted it had hit “terrorist” infrastructure.
This followed nearly four days of the two nations hitting each other with missiles, drones and artillery in which dozens were killed, until Saturday evening when US President Donald Trump announced a surprise ceasefire that has largely held, except for a few alleged violations in the disputed Kashmir regions on both sides.
Pakistan has said its pilots shot down five Indian fighter jets in aerial battles, including three advanced French-made Rafales. India has released new satellite images showing serious damage to air strips and radar stations at what Indian defense officials say are multiple Pakistani military bases crippled by massive Indian airstrikes. Pakistan itself admitted India had tried to hit three air bases, including one in Rawalpindi, where the military’s highly fortified headquarters are located.
In both nations, political and military leaders are spinning the latest conflict as a victory.
On Monday, Pakistani Premier Sharif announced that his country would annually observe May 10 as ‘Youm-e-Marka-e-Haq,’ which means the Day of the Battle of Truth, to celebrate the success of Pakistan’s retaliatory strikes against India.
“The professional capabilities of our brave forces have made us proud,” Sharif said in a statement. “Youm-e-Marka-e-Haq will be celebrated every year across the country with enthusiasm and spirit of national unity.”
Even before the announcement of the commemoration day, crowds have gathered daily in the streets of several Pakistani cities since the ceasefire to celebrate what Sharif described as “military history” achieved by “our brave army in a spectacular fashion.” Parades have also been held at a land border crossing to shower the military with petals.
During a visit to a hospital where soldiers and civilians wounded during the four-day standoff were recovering, Pakistani army chief, General Asim Munir, said Pakistan’s retaliatory strikes were a “defining chapter” in the country’s military history, lauding the army’s “resolute and unified response” and the “steadfast support of the Pakistani people.”
Pakistan’s parliament also passed a resolution on Monday commending the army for its “victory.”
“[The House] commends the valiant armed forces of Pakistan for their exemplary professionalism, vigilance and courage in defending the sovereignty of Pakistan in response to unprovoked Indian aggression with exceptional restraint and responsibility, and through a measured and befitting response,” the resolution said.
“This House congratulates the entire nation which rose above all differences and stood united behind its leadership across the political spectrum with one voice.”
“HISTORY OF CONFLICT“
In India, premier Narendra Modi said New Delhi had only “paused” its military action and would “retaliate on its own terms” if there is any future militant attack on the country.
At a press briefing on Sunday, Indian military spokespeople offered more details on the offensive against Pakistan and claimed it was Pakistan that had first requested a ceasefire.
India said five of its soldiers were killed by Pakistani firing over the border and claimed Pakistan lost about 40 soldiers in firing along the line of control. It also claimed to have killed 100 terrorists living over the border in Pakistan. The numbers could not be verified.
It also claimed to have “downed a few Pakistani planes,” though it did not elaborate further. Asked about claims made by Pakistan, and backed up by expert analysis of debris, that Pakistani missiles had downed at least three Indian military jets during the offensive on Wednesday, including multimillion-dollar Rafale jets, India said, “losses are a part of combat” and that all its pilots had returned home.
The hostilities between the nuclear-armed rivals began after a deadly attack on tourists in Kashmir that killed 26 tourists last month. India accused Pakistan of backing the militants, a charge Islamabad denied.
Here is a look at multiple conflicts between the two countries since 1947:
1947 — Months after British India is partitioned into a predominantly Hindu India and a Muslim-majority Pakistan, the two young nations fight their first war over control of Muslim-majority Kashmir, then a kingdom ruled by a Hindu monarch. The war killed thousands before ending in 1948.
1949 — A UN-brokered ceasefire line leaves Kashmir divided between India and Pakistan, with the promise of a UN-sponsored vote that would enable the region’s people to decide whether to be part of Pakistan or India. That vote has never been held.
1965 — The rivals fight their second war over Kashmir. Thousands are killed in inconclusive fighting before a ceasefire is brokered by the Soviet Union and the United States. Negotiations in Tashkent ran until January 1966, ending in both sides giving back territories they seized during the war and withdrawing their armies.
1971 — India intervenes in a war over the independence of East Pakistan, which ends with the territory breaking away as the new country of Bangladesh. An estimated 3 million people are killed in the conflict.
1972 — India and Pakistan sign a peace accord, renaming the ceasefire line in Kashmir as the Line of Control. Both sides deploy more troops along the frontier, turning it into a heavily fortified stretch of military outposts.
1989 — Kashmiri dissidents launch a bloody rebellion against Indian rule. Indian troops respond with brutal measures, intensifying diplomatic and military skirmishes between New Delhi and Islamabad. India says Pakistan supports the insurgency, which it denies.
1999 — Pakistani soldiers and Kashmiri fighters seize several Himalayan peaks on the Indian side. India responds with aerial bombardments and artillery. At least 1,000 combatants are killed over 10 weeks, and a worried world fears the fighting could escalate to nuclear conflict. The US eventually steps in to mediate, ending the fighting.
2016 — Militants sneak into an army base in Indian-controlled Kashmir, killing at least 18 soldiers. India responds by sending special forces inside Pakistani-held territory, later claiming to have killed multiple suspected rebels in “surgical strikes.” Pakistan denies that the strikes took place, but it leads to days of major border skirmishes. Combatants and civilians on both sides are killed.
2019 — The two sides again come close to war after a Kashmiri insurgent rams an explosive-laden car into a bus carrying Indian soldiers, killing 40. India carries out airstrikes in Pakistani territory and claims to have struck a militant training facility. Pakistan later shoots down an Indian warplane and captures a pilot. He is later released, de-escalating tensions.
2025 — Militants attack Indian tourists in the region’s resort town of Pahalgam and kill 26 men, most of them Hindus. India blames Pakistan, which denies it. India vows revenge on the attackers as tensions rise to their highest point since 2019.
Both countries cancel visas for each other’s citizens, recall diplomats, shut their only land border crossing and close their airspaces to each other. New Delhi also suspends a crucial water-sharing treaty.
Days later, India strikes what it calls nine “terror” hideouts across Pakistan and Azad Kashmir with precision missiles. Islamabad retaliates and fires missiles and swarms of drones across multiple northern and western Indian cities, targeting military installations and air bases. India then targets Pakistan’s multiple air bases, radar systems and military installations. As the situation intensifies, the US holds talks with leadership of the two countries, and President Donald Trump announces a ceasefire has been reached.
— With inputs from AP