Experts say $700 million IMF tranche to offers limited relief amid Pakistan’s inflation woes

Folk dancers sit along the roadside in Islamabad, Pakistan, on January 10, 2024. (AFP)
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Updated 12 January 2024
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Experts say $700 million IMF tranche to offers limited relief amid Pakistan’s inflation woes

  • IMF agrees Pakistan’s macroeconomic conditions have improved, as it forecasts two percent growth in current fiscal year
  • Experts urge the government to prioritize fiscal discipline, structural reforms to successfully complete the IMF program

KARACHI: Independent financial experts on Friday predicted short-term respite for Pakistan in the wake of the $700 million disbursement after the successful first International Monetary Fund (IMF) review under a $3 billion loan program, though they cautioned economic headwinds would persist ahead of the Feb. 8 general elections.

The executive board of the global lending agency greenlit the second tranche under the Stand-By Arrangement (SBA) with Pakistan just a day earlier, following a comprehensive evaluation of the country’s economic reform program.

Last July, the IMF initiated the nine-month SBA to help tackle Pakistan’s domestic and external economic imbalances and establish a framework for securing financial support from various other multilateral and bilateral donors.

“The IMF funding along with recent inflows from multilateral lenders will help the rupee that has been fairly stable for the last couple of months,” Muhammad Sohail, Chief Executive Officer of Topline Securities, commented. “The new tranche will also help the country secure financial rollovers from friendly countries and will ease external debt repayment pressure.”

The IMF board’s decision is expected to increase Pakistan’s foreign currency reserves to nearly $8.8 billion, up from $8.15 billion reported on January 5.

The international lender also acknowledged the country’s macroeconomic conditions had generally improved, predicting a two percent growth in the current fiscal year with the expansion of nascent recovery in the second half of the year.

However, it noted inflation had remained significantly elevated in the country but was likely to decline to 18.5 percent with a tight monetary policy by end-June 2024.

Pakistani financial experts also mentioned that economic challenges were likely to continue despite the successful completion of the IMF review.

“High inflation remains a pressing concern, necessitating a vigilant monetary approach,” Ali Nawaz, Chief Executive Officer of Chase Securities, told Arab News. “To complete the SBA, the government must prioritize maintaining fiscal discipline, fostering a market-driven exchange rate and implementing structural reforms for inclusive growth.”

The key elements of the SBA reform program are the implementation of the current budget to facilitate much-needed fiscal adjustment and debt sustainability, continuation of a market-driven exchange rate, appropriate tightening of monetary policy for disinflation and further progress on structural reforms, particularly related to energy sector viability, improved governance of state-owned entities and climate resilience.

As Pakistan prepares to hold general elections next month, financial experts noted the new government would have to navigate tough challenges to ensure sustained reforms for effective revenue mobilization and disciplined social spending for long-term economic stability.

“The success of the SBA will hinge on the new government’s commitment to address these issues and pursue comprehensive economic policies,” Nawaz said.
However, Ammar Habib Khan, a senior economist, said he was confident the reform measures taken by the caretaker administration would continue post-elections.
“The upcoming government will have to ensure fiscal consolidation, which has already started,” he said. “Problems will arise if the government decides to boost spending abruptly.”
Meanwhile, the bulls at Pakistan’s capital market celebrated the IMF approval of the country’s reform program, with stocks gaining about 500 points by mid-day trading, and the rupee strengthening by around Rs0.50 against the greenback in the interbank market.

Pakistani currency dealers hope the rupee will further stabilize after the IMF program approval and expected inflows from friendly countries, including Saudi Arabia.

“The approval of the first review, an ongoing mineral conference in Saudi Arabia and recent developments in the United Arab Emirates, Qatar, and other countries for investment in Pakistan are good news for rupee recovery,” Malik Bostan, Chairman of Exchange Companies Association of Pakistan, told Arab News.

He said the dealers were expecting the rupee to stabilize around Rs250 against the dollar by the end of the current year, provided the investment inflows materialized.


Thousands march in Pakistan’s Karachi in solidarity with Palestinians, demand ceasefire in Gaza

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Thousands march in Pakistan’s Karachi in solidarity with Palestinians, demand ceasefire in Gaza

  • The march, organized by Jamaat-e-Islami party, was attended by members of the civil society, professionals and common people
  • Pakistan does not recognize Israel and calls for an independent Palestinian state based on ‘internationally agreed parameters’

KARACHI: Tens of thousands of people, including women and children, on Sunday marched in the southern Pakistani city of Karachi to express solidarity with the Palestinians and demand an immediate ceasefire in Gaza.
The march, organized by the Jamaat-e-Islami (JI) religious party, was attended by members of the civil society, professionals and a large number of families.
The participants carried placards and banners, and chanted slogans against Israel as they marched along Karachi’s Seaview beach.
“Palestinians have been facing a bloodshed, genocide, bombardment, death and hunger for the past 450 days,” JI Karachi Ameer Monem Zafar said, calling for a cessation of Israeli military actions.
“The tragedy that unfolded in Gaza has divided the world into two poles: the people of conscience and the followers of might.”
Israel began pounding Gaza since October 7, 2023 attack by Hamas that resulted in the deaths of 1,208 people, according to official Israeli figures. Israeli attacks on Gaza have since killed 46,537 people, the majority civilians, according to the Palestinian health ministry.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters.”
The South Asian country has dispatched several relief consignments for Gaza, besides establishing the ‘Prime Minister’s Relief Fund’ that aims to collect public donations for the war-affected people.
Zafar hailed the people of Karachi for their show of solidarity with the Palestinians, urging them to continue boycotting Israeli products.
“It’s an obligation for the [Pakistani] nation to take side with the oppressed Palestinians,” he added.
During the march, the participants chanted slogans against continuing Israeli military actions in Gaza and urged the world to ensure a ceasefire in the territory.
Former provincial health minister of Sindh, Saad Khalid Niaz, criticized Israel for bombing hospitals and schools in Gaza.
“For the first time in the history, hospitals were bombed to ashes in a conflict,” he said, adding that expressing solidarity with the Palestinians has become a national obligation.


Pakistan to finish Gaddafi Stadium renovation this month for upcoming Champions Trophy

Updated 12 January 2025
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Pakistan to finish Gaddafi Stadium renovation this month for upcoming Champions Trophy

  • The Champions Trophy tournament is set to begin on Feb. 19 in Karachi with Pakistan taking on New Zealand
  • The stadium will feature over 34,000 seats, brand-new scoreboards and laser light shows during night games

ISLAMABAD: The renovation of Gaddafi Stadium in Pakistan’s eastern Lahore city will be completed this week, Pakistan Cricket Board (PCB) Chairman Mohsin Naqvi said on Sunday, with all major structural work finished and final touches being applied ahead of the upcoming ICC Champions Trophy.
The PCB has been renovating stadiums in Lahore and Karachi for the 2025 Champions Trophy scheduled to take place in Feb. across three venues: Lahore, Karachi, and Rawalpindi. This will be the first ICC tournament held in Pakistan since the 1996 World Cup.
Pakistani fans have long expressed dissatisfaction with the country’s stadiums, particularly the National Bank Stadium in Karachi, citing a lack of basic facilities and a subpar viewing experience for spectators.
On Sunday, the PCB chairman paid a visit to Gaddafi Stadium and inspected the upgradation, renovation and finishing work on the ground, expressing his satisfaction over the pace of work at the iconic venue.
“Gaddafi Stadium, with all its modern facilities, will be ready this month. The work is being carried out at a swift pace,” he said.
“We are set to install brand new and comfortable seats for the fans, with an enhanced view, and work on new LED lights on the light towers is well underway.”
The stadium is set to transform into a world-class facility, featuring over 34,000 seats, brand-new scoreboards on both sides and state-of-the-art floodlights, ensuring exceptional visibility for both players and spectators after sunset.
“The fans will now be able to enjoy laser light shows during night games as well,” Naqvi said. “We are striving to make the ICC Champions Trophy a memorable event in Pakistan.”
The ICC Champions Trophy 2025 will take place from February 19 till March 9, with matches hosted across Pakistan and Dubai in a hybrid model.
The tournament’s structure follows a compromised decision after India refused to play in Pakistan, citing “security concerns.” Exercising its rights as the host nation, Pakistan designated Dubai as the neutral venue for India’s matches, ensuring all teams’ participation.
In Pakistan, Karachi, Lahore and Rawalpindi will host three group-stage games each. Lahore is also set to host the second semifinal. Dubai will host all three of India’s group matches and the first semifinal, should India qualify.
The tournament opener on Feb. 19 will feature Pakistan taking on New Zealand in Karachi, while India will face Bangladesh in Dubai on Feb. 20.
This will be the ninth edition of the ICC Champions Trophy, after an eight-year hiatus. The last tournament took place in England in 2017. The event will feature top eight teams in world cricket competing for one of the sport’s most prestigious titles.


Cyprus orders probe into alleged police shooting of Pakistani man

Updated 12 January 2025
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Cyprus orders probe into alleged police shooting of Pakistani man

  • Police found the 24-year-old’s body in a field in a suburb of the capital Nicosia on January 6, a national holiday
  • Announcement follows postmortem exam that contradicted initial forensic analysis ruling out criminal circumstances

NICOSIA: Cyprus’ chief prosecutor appointed an independent investigator Sunday to oversee a criminal probe into the death of a Pakistani man who was allegedly shot by police earlier this month.
Attorney General George L. Savvides said in a statement that the decision followed a briefing by the chief of police regarding the ongoing inquiry into the incident.
Savvides said he had appointed an independent “criminal investigator in relation to the circumstances of the death of a young man from Pakistan.”
“Senior Counsel of the Republic, Mr. Ninos Kekkos, will lead the investigations being conducted by the police.”
The move comes a day after authorities said the Pakistani national was fatally shot with a police service weapon.
The announcement followed a postmortem exam that contradicted an initial forensic analysis ruling out criminal circumstances.
According to the postmortem, a bullet wound was found on the right side of the man’s back.
Police found the 24-year-old’s body in a field in a suburb of the capital Nicosia on January 6, a national holiday.
Several days later, police disclosed an earlier incident in which officers had fired shots during an attempt to intercept and arrest suspects, saying the death could be connected.
Local news website Phileleftheros reported Sunday that three police officers were being questioned over the shooting, which happened in a different place from where the body was found.
Phileleftheros reported that police had said shots were fired at the tires of a vehicle believed to be involved in illicit migrant smuggling near the line that divides the island into the UN-recognized south and the Turkish-backed north.
Irregular migrants frequently cross the so-called Green Line from the Turkish Cypriot north into the more affluent Greek-speaking Cyprus Republic.
Phileleftheros reported that the health ministry has requested a report from the police on the incident so it can review the forensic expert’s findings.


Pakistani forces kill nine militants in separate operations in restive northwest

Updated 12 January 2025
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Pakistani forces kill nine militants in separate operations in restive northwest

  • Pakistan has struggled to contain militancy in its northwest since a truce with Pakistani Taliban broke down in 2022
  • In 2024 alone, the military reported that 383 Pakistani soldiers and 925 militants were killed in various clashes

ISLAMABAD: Pakistani security forces have killed nine militants in two separate engagements in the northwestern Khyber Pakhtunkhwa (KP) province, the military said on Sunday.
Six militants were killed and two others apprehended in an intelligence-based operation in Dosalli area of the North Waziristan district, according to the Inter-Services Public Relations (ISPR).
Another three militants were killed and two of their accomplices were injured during an exchange of fire in Esham area of the same district, which borders Afghanistan.
“Weapons and ammunition were also recovered from killed khwarij [militants], who remained actively involved in numerous terrorist activities against the security forces as well as target killing of innocent civilians,” the ISPR said in a statement.
“Sanitization operations are being conducted to eliminate any other kharji [militant] found in the area.”
Pakistan has struggled to contain surging militancy in KP since November 2022, when a fragile truce between the Pakistani Taliban and the state broke down.
In 2024 alone, the military reported that 383 soldiers and 925 militants were killed in various clashes.
Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.


Muslim World League pledges to make ‘Islamabad Declaration’ constitutional document for girls’ education

Updated 12 January 2025
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Muslim World League pledges to make ‘Islamabad Declaration’ constitutional document for girls’ education

  • The declaration was adopted at the end of a two-day conference in Pakistan on girls’ education in Muslim communities
  • It outlines framework to tackle challenges in girls’ education through gender-sensitive policies, resource mobilization

ISLAMABAD: Sheikh Mohammad bin Abdul Karim Al-Issa, secretary-general of the Muslim World League (MWL), on Sunday vowed to make the declaration of a global summit in Islamabad on girls’ education in Muslim countries a constitutional document of the MWL for “tangible” impact.
He expressed these views while addressing the concluding session of the two-day conference, titled “Girls’ Education in Muslim Communities: Challenges and Opportunities,” which was co-hosted by Pakistan and the MWL.
Over 150 representatives from 47 countries, including education experts, religious scholars, diplomats and politicians, attended the summit. It comes at a time when global leaders, organizations and activists are urging the Taliban to reverse their restrictive policies about women in Afghanistan.
The conference concluded with the adoption of the ‘Islamabad Declaration,’ a framework to address challenges in girls’ education in Muslim communities through gender-sensitive policies, resource mobilization, and strengthened international partnerships.
“The Muslim World League, along with its partners, commits to making the ‘Islamabad Declaration’ a constitutional document so the impact will be tangible,” the MWL chief said, adding that Islamic scholars addressed various misconceptions during the “exceptional and unified solidarity meeting” in Islamabad.
“Such a diverse group of scholars, with the presence of major Islamic jurisprudential councils, particularly the International Islamic Fiqh Academy under the OIC [Organiation of Islamic Cooperation], sends a strong message to the world about the unified stance of the scholars of the Islamic Ummah regarding girls’ education.”
The MWL chief said the Muslim world needed this collaboration for a unified voice reflecting Islam’s teachings.
“No one can claim to speak on behalf of Islam regarding this issue anymore as the scholars of the Ummah, supported by their jurisprudential councils, have delivered a clear and definitive statement,” he said.
“We do not address any specific individual or entity but speak to anyone opposing or hindering this cause, whether individuals or institutions, public or private.”
Muslim communities have often faced criticism for not providing sufficient opportunities to women in fields like education, though many of their countries have made significant strides in promoting women’s participation across various fields.
The issue of girls’ education has drawn heightened attention recently, particularly after Afghanistan’s interim administration, led by the Taliban, imposed restrictions on girls’ education, including shutting down secondary schools and barring women from attending universities.
On the first day of the conference, the secretary-general of the MWL, a Makkah-based non-governmental organization that represents followers of Islam around the world, said Islam places no restrictive conditions on girls’ education, and anyone opposing it deviates from the global Muslim community.
ISLAMABAD DECLARATION
The declaration emphasized that girls’ education is not only a religious obligation but also an “urgent societal necessity.”
“It is a fundamental right safeguarded by divine laws, mandated by Islamic teachings, reinforced by international charters, and well-established by national constitutions,” it said, calling for unified efforts to safeguard girls’ right to education and ensure their empowerment, and acknowledging that educated women play a pivotal role in fostering stable families and communities.
“This, in turn, promotes global peace, national harmony, and fortifies societies against challenges such as extremism, violence, crime, and atheism.”
Cautioning against extremist ideologies, the declaration said that issuing decrees and opinions, rooted in cultural norms and patterns, that obstruct girls’ education constitute a “regrettable perpetuation of societal biases against women.”
“Such actions represent a grave misuse of religious principles to legitimize policies of deprivation and exclusion,” it said.
The Islamabad Declaration urged mobilizing resources to support efforts to advance education through improved methods and content, with a particular emphasis on girls’ education, ensuring it is placed at the forefront of national priorities.
“Declaring that anyone who rejects or opposes these well-grounded Islamic religious principles is, by the consensus of this gathering as referenced in the preamble of this Declaration, considered outside the framework of the Islamic Ummah’s concepts and cannot be regarded as part of it,” it said, adding that it is essential to disavow such an ideology, whether they are an individual, an institution, or an entity, public or private.
At the end, the declaration stated that the MWL chief, being the initiator of the conference, will communicate all resolutions of the conference, oversee their implementation, and ensure the necessary financial and moral support.
The participants urged the initiator of the conference to establish a permanent committee to oversee the implementation of the outcomes of the event, including various agreements, which laid the foundation for an impactful action.
Yusuf Raza Gilani, chairman of Pakistan’s Senate, urged the Muslim world to embrace a comprehensive approach that combines collaborative action, resource development, and community engagement for girls’ education.
“I urge distinguished scholars and policymakers to translate the invaluable insights and lessons of this conference into tangible, impactful strategies that will inspire change,” he said at the concluding session.