ISLAMABAD: Pakistan’s newly-formed ruling alliance is yet to finalize its finance minister, the person who has to lead an immediate effort to negotiate a new International Monetary Fund (IMF) bailout, sources familiar with the discussions said.
The struggling $350 billion economy has a narrow path to recovery and the current IMF agreement expires on April 11, with critical external financing avenues linked to securing another extended program.
Former four-time finance minister Ishaq Dar remains the top contender, according to two sources in his Pakistan Muslim League-Nawaz (PML-N) party, which is leading the coalition.
PML-N’s Shehbaz Sharif has been nominated by the alliance to be prime minister in an election scheduled for March 3. He will announce his cabinet, including the finance minister, shortly after being elected.
But Dar is not the only candidate being considered, the sources said. Despite being a relative of, and close aide to, PML-N chief Nawaz Sharif, many political allies have criticized Dar’s handling of the economy in the last coalition set up.
He, however, has defended his actions, saying he had to take tough measures to avert a sovereign default by securing the IMF program, which former Prime Minister Imran Khan had scuttled days before leaving his office, a charge Khan denies.
Pakistan struggled for over four months to lock in the stand-by arrangement last summer when Dar was finance minister, and it took the intervention of his prime minister, Shehbaz Sharif, to secure a last-ditch deal.
Dar also regularly criticized the IMF on public platforms in the middle of negotiations, and has long favored market interventions to prop up the Pakistani rupee – something the IMF has warned against.
If Dar doesn’t get the portfolio, his party might consider creating a position of deputy prime minister for him, one of the sources in the PML-N said.
Also being considered are caretaker Finance Minister Shamshad Akhtar, a former central bank governor, who is overseeing key policy measures under the current IMF program, both sources said.
Akhtar has been a key part of the caretaker set up that has been praised by the IMF for “decisive policy efforts” to maintain stability.
Another name being considered is Muhammad Aurangzeb, president and chief executive officer of the country’s largest bank, Habib Bank Limited, the sources said.
Aurangzeb had also served as the CEO of JP Morgan’s Global Corporate Bank based in Asia.
Akhtar did not respond to a Reuters request for a comment and Aurangzeb’s HBL said it would not comment on “rumors and speculations.”
A PML-N spokesperson did not respond to a request for comment.
Dar himself told reporters before the parliament’s inaugural session on Thursday that there was no decision yet when asked if he would be the choice for finance minister again.
PML-N senior leader Irfan Siddiqui told the local newspaper The News that Dar will “most probably” be picked for the post.
Aside from negotiating a new and extended IMF program, the new finance minister will have about three months to prepare a federal budget that will need to strike a difficult balance between tough reforms and rejuvenating a struggling economy.
The PML-N, leading a minority government, will be relying on the support of different parties to pass critical legislation, with alliance partner Pakistan Peoples Party saying it would support the government on an issue-to-issue basis.
Efforts to assuage growing public anger at record inflation hovering around 30 percent will also be challenging with limited fiscal space.
“Pakistan needs someone who has broad and in-depth international experience to introduce the kind of reforms that have helped many other countries to come out of economic crises,” said Yousuf Nazar, a London-based economist and former Citigroup banker.
He, however, declined to say who was best suited.
Race for new Pakistan finance minister heats up ahead of crucial IMF negotiations
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Race for new Pakistan finance minister heats up ahead of crucial IMF negotiations
- Ishaq Dar remains the top contender, though he may be declared deputy PM if he does not get the portfolio
- Pakistan’s interim finance minister and president of the country’s largest HBL bank are also said to be in the race
Pakistan army says three militants attempting to infiltrate from Afghan border killed
- Kabul government denies it allows militants to use its soil to attack Pakistan
- Pakistan has seen sharp rise in militant attacks across the country in recent months
ISLAMABAD: The Pakistan army said on Tuesday it had killed three militants out of a group that had tried to infiltrate its frontier with neighboring Afghanistan in the northwestern North Waziristan district, calling on Kabul to ensure “effective border management” on its side.
Islamabad, facing a sharp rise in militancy in recent months, says the Tehreek-e-Taliban Pakistan (TTP) group uses Afghanistan as a base to launch attacks and that the ruling Taliban administration has provided safe havens to the group along their shared border. The Taliban government in Kabul denies this.
The TTP is separate from the Afghan Taliban movement but pledges loyalty to the group that has ruled Afghanistan after the US-led international forces withdrew in 2021.
“On night 25/26 November, movement of a group of khwarij [militants], who were trying to infiltrate through Pakistan-Afghanistan border, was picked up by the security forces in general area Hassan Khel, North Waziristan District,” the army said in a statement. “Own troops effectively engaged and thwarted their attempt to infiltrate. Resultantly, three Khwarij were sent to hell.”
The statement said Islamabad had “consistently” been asking the Afghan government to ensure effective border management on their side of the border.
“Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan,” the army added.
“Security Forces of Pakistan are determined and remain committed to secure its borders and eliminate the menace of terrorism from the country.”
What has caused Pakistan’s deadly clashes between police and supporters of Imran Khan?
- Topping the demands of Khan’s Pakistan Tehreek-e-Insaf party is the release of all its leaders, including Khan
- PTI supporters say they will hold ‘do or die’ sit-in at public square near parliament that is a popular protest site
Thousands of supporters of Pakistan’s jailed former Prime Minister Imran Khan marched on the capital Islamabad this week, breaking through barricades and clashing with police in response to his call for a sit-in protest.
Here is a look at what led to the protest and this chapter of political rallies in Pakistan:
WHAT DO PROTESTERS WANT?
Topping the demands of Khan’s Pakistan Tehreek-e-Insaf (PTI) party is the release of all its leaders, including Khan, who has been jailed on a series of corruption charges since August 2023.
They also seek the resignation of the current government over what they call rigged general elections this year.
PTI supporters from across the country, including Khan’s wife Bushra Bibi, have marched on the capital, with large numbers coming from the party’s stronghold in the northern province of Khyber Pakhtunkhwa.
They have vowed to enter the capital and rally at a public square near parliament that is a popular protest site, holding what leaders have called a “do or die” sit-in.
HOW HAS THE GOVERNMENT RESPONDED?
Prime Minister Shehbaz Sharif’s government has given no indication yet of bending to the demands. Authorities have used shipping containers to block major roads and streets in Islamabad, with police and paramilitary patrolling in riot gear.
Mobile Internet links are down and schools have been closed for several days in the capital and the nearby garrison city of Rawalpindi. Gatherings have been banned in Islamabad.
WHAT HAS HAPPENED SINCE THE MARCH BEGAN?
Thousands of supporters clashed with police and paramilitary troops on the weekend, as they tried to enter Islamabad.
Both sides have reported injuries and the prime minister’s office said members of the paramilitary were killed when they were run over by a car in the protest convoy. The interior ministry put the number of those killed at four.
WHERE DO THE PROTESTERS WANT TO GO?
The marchers aim to reach the roundabout near parliament that has long been a rallying point for protests and sit-ins that have marked Pakistan’s turbulent politics for decades.
The site is in Islamabad’s heavily fortified red zone, home to parliament, key government installations, luxury hotels, embassies and the offices of foreign organizations.
WHAT IS THE HISTORY OF POLITICAL PROTEST IN PAKISTAN?
Stormy politics and unrest during Pakistan’s 77-year history have included protests and sit-ins by opposition parties.
Khan led one of Pakistan’s largest sit-ins in 2014 when his supporters protesting against the PML-N government occupied the roundabout site for 126 days.
PTI supporters last marched on Islamabad in October, sparking days of clashes with police that killed one officer.
Ex-PM Khan party’s protest disrupts petrol supply in Islamabad, Punjab— oil transporters
- Authorities have sealed off roads leading to Islamabad with containers to deter protesters
- Several pump stations have run out of petrol due to non-delivery, says oil tankers association
ISLAMABAD: The supply of petrol to Islamabad and several cities in Pakistan’s eastern Punjab province has been “severely affected” due to a protest by former prime minister Imran Khan’s party, an oil tankers association said on Tuesday, as major roads and highways leading to the capital were sealed off.
Pakistani authorities started closing highways and motorways leading to Islamabad in many parts of the country with shipping containers on Saturday, ahead of a “long march” to Islamabad by Khan’s party.
Authorities also said on Sunday they were closing certain sections of the motorway due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot.
The closed routes had stalled the delivery of petrol to several parts of Punjab and Islamabad, Oil Tanker Contractors Association spokesperson Noman Butt said.
“Routes to Islamabad, Rawalpindi and North Punjab are closed due to which supply from petrol tankers is severely affected,” Butt said in a statement.
“Thousands of tankers are waiting for the route to open.”
Butt said petrol had not been supplied to Gujranwala, Jhelum, Sialkot and Kharian districts in Punjab for the last three days.
He said petrol supply has also been affected in Islamabad, Kohala, and the northern city of Gilgit.
“Petrol has run out at pumps in many cities,” he added.
Khan’s party aims to pressure the government to end his imprisonment, which has lasted for over a year on what his party contends are politically motivated charges.
The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this.
Thousands of Khan supporters arrived at D-Chowk, a high-security area in Islamabad’s Red Zone that houses key government buildings and is a popular site for protests, on Tuesday afternoon.
His supporters, led by the former prime minister’s wife Bushra Khan, braved teargassing, arrests and clashes to reach D-Chowk where they plan on staging a sit-in protest to demand his release.
Pakistan’s interior minister said three Rangers personnel and a Punjab Police constable had been killed in the clashes. The PTI rejects its supporters were responsible for their deaths.
Pakistan to build its first indigenously designed and built frigate-sized warship — naval chief
- Frigates are designed for surface warfare, anti-submarine warfare and have air defense capabilities
- Pakistan has been actively working to bolster its naval capabilities by inducting advanced warships
ISLAMABAD: Pakistan Naval Chief Admiral Naveed Ashraf said this week that the country is building its first indigenously designed frigate-sized warship called “Jinnah Class Frigates” to address the challenges presented by the prevalent multi-threat maritime environment.
A frigate-sized warship is a multi-mission naval vessel, typically 100-150 meters in length, with a displacement of 2,000-4,000 tons. Frigates are designed for surface warfare, anti-submarine warfare, and have air defense capabilities. They are equipped with a mix of guns, missiles, torpedoes, and anti-submarine rockets.
Pakistan has been attempting to bolster its naval capabilities through the induction of advanced warships. Recently, it inducted PNS Babur and PNS Hunain, two state-of-the-art vessels, into its fleet. These warships are part of a broader effort to enhance the country’s maritime security and operational readiness.
In an interview with Naval News website on Monday, which covers naval defense and technology, Pakistan Navy chief Admiral Ashraf highlighted that the Pakistan was focusing on inducting modern platforms, force multipliers, and indigenization apart from ensuring a variety of options to reduce reliance on external sources.
“Based on experience gained during the construction of MILGEM Class Ships, the Pakistan Navy is planning to build JINNAH Class Frigates which will be our first ever indigenously designed and built frigate-sized warship,” he said.
The report said Pakistan inducted Type 054 A/P Frigates from China, OPVs Batch-1 and Batch-II from Romania, and MILGEM Class Corvette from Turkiye, adding that these will add to the navy’s existing defense capabilities.
PNS Babur, constructed in Turkiye and PNS Hunain, an offshore patrol vessel from Romania, are equipped with cutting-edge technology to address both surface and air threats.
“Pakistan Navy is in the process of inducting the remaining MILGEM class ships as two of these ships are being constructed indigenously in Pakistan (KS&EW),” the naval chief was quoted as saying.
“Our development strategy is based on ‘progressive capability enhancement’ to create a balanced, potent, and combat-ready force to deal with the evolving threats through the acquisition of force multipliers, and indigenous and innovative technical solutions.”
Zimbabwe win toss and elect to bat in 2nd ODI against Pakistan
- Pakistan suffered 80-run humiliating loss to Zimbabwe in first ODI on Sunday
- Tayyab Tahir and leg-spinner Abrar Ahmed debut for Pakistan in second ODI
BULAWAYO: Zimbabwe won the toss and elected to bat in the second one-day international against Pakistan on Tuesday.
Pakistan made two changes after Zimbabwe recorded a stunning 80-run win on DLS method in the rain-affected first match to lead the three-game series 1-0 on Monday.
Middle-order batter Tayyab Tahir and leg-spinner Abrar Ahmed were awarded ODI debuts in place of Haseebullah Khan and fast bowler Mohammad Hasnain.
Haseebullah got dropped after making 0 in his debut ODI while Hasnain made way for Abrar with the wicket expecting to slow bowlers.
Zimbabwe didn’t tinker with its winning combination after Pakistan struggled against both pace and spin in the first game.
Pakistan have rested its frontline white-ball players Shaheen Shah Afridi, Naseem Shah and Babar Azam as they tested bench strength ahead of next year’s Champions Trophy.
Bulawayo will host the third and final ODI on Thursday and will also host both teams in the three-match T20 series.
