Pakistan’s finance minister eyes fresh IMF loan deal by fiscal year-end

Pakistan Finance Minister Muhammad Aurangzeb gestures while speaking with media representatives at the finance ministry in Islamabad on March 22, 2024. (AFP/File)
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Updated 30 March 2024
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Pakistan’s finance minister eyes fresh IMF loan deal by fiscal year-end

  • Muhammad Aurangzeb plans to discuss the contours of the new loan program during his meetings in Washington
  • Pakistan has successfully completed the second and final review under a short-term IMF agreement for $1.1 billion

ISLAMABAD: Pakistan plans to reach a staff-level agreement with the International Monetary Fund (IMF) for a new loan program by the end of the current fiscal year, said finance minister Muhammad Aurangzeb on Friday, adding the issue would come up for discussion in his upcoming meetings in Washington.

Pakistan successfully completed the second and final review under a short-term IMF stand-by arrangement amounting to $3 billion earlier this month, clearing the way for the disbursement of the final tranche of nearly $1.1 billion.

However, the country’s fragile $350-billion economy continues to be in desperate need for external financing to shore up its foreign exchange reserves and escape yet another macroeconomic crisis. This was also indicated by Prime Minister Shehbaz Sharif who pointed out it was “inevitable” for his government to seek further IMF assistance after taking over the top political office of his country.

The Pakistani finance minister said he was going to attend the spring meetings in Washington where he would meet the IMF and World Bank officials and discuss the contours of a fresh Extended Fund Facility (EFF).

“Those discussions will go into end April, into May,” he informed. “We can expect, because no final discussion or agreement [with IMF] has taken place yet, but it is our desire that by the time we wrap up this fiscal year, so end June, early July, we at least reach the staff-level agreement [for the EFF].”

Committing to a new IMF program will require Pakistan to implement steps needed to stay on a narrow path to recovery. The country has already tried to implement stringent economic reforms like raising fuel and power rates that have led to spiraling inflation in the country.

Getting into another IMF program would further limit the government’s policy options to provide relief to a deeply frustrated population and cater to industries that are looking for government support to spur growth.


Gunmen attack aid convoy enroute to Pakistani district hit by sectarian clashes, injuring 4

Updated 16 January 2025
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Gunmen attack aid convoy enroute to Pakistani district hit by sectarian clashes, injuring 4

  • At least 136 have been killed due to sectarian, land disputes in Kurram district since Nov. 21
  • Five persons were injured on Jan. 4 in same locality when armed men attacked an aid convoy

PESHAWAR: Four persons were injured when an aid convoy enroute to Pakistan’s northwestern Kurram district, which has been rocked by sectarian clashes in recent months, was attacked by unidentified armed men on Thursday, police and health officials confirmed, as authorities struggle to main law and order in the restive area.
Kurram, a northwestern district of around 600,000 people in Pakistan’s Khyber Pakhtunkhwa (KP) province, has been hit hard by tribal and sectarian clashes since Nov. 21, 2024, when gunmen attacked a convoy of Shia passengers, killing 52. Sporadic clashes since then have killed at least 136 people before the provincial government brokered a peace agreement among the warring tribes this month.
The attack sparked further violence and blockade of a main road connecting Kurram’s main town of Parachinar with the provincial capital of Peshawar, causing medicine, food and fuel shortages in the area.
This is the second such attack on an aid convoy enroute to the district, in the locality. Unidentified gunmen attacked an aid convoy at Bagan, a tense locality, on Jan. 4, injuring five people including a top administration official. Thursday’s attack also took place in Began.
“The aid convoy of more than 30 vehicles en route to Upper Kurram was attacked with gunfire by unknown armed men in Bagan area,” a police official, who spoke on condition of anonymity as he was not authorized to speak to the media, told Arab News.
“A few of the trucks which were loaded with food items were put on fire and have been burnt,” he added.
Police and law enforcement agencies are investigating the matter, the official said.
The attack caused injuries to four persons, according to Zakir Khan, the senior medical officer at the Basic Health Unit in Manduri, Lower Kurram.
“Four injured were brought to the hospital (BHU Manduri) among whom two were serious,” he said, adding that patients critically wounded had been referred to Peshawar for treatment.
The attack takes place days after authorities started demolishing bunkers in Lower Kurram, more than a week after the peace agreement was reached.
Under the peace agreement signed on Jan. 1, both sides agreed on the demolition of bunkers and the handover of heavy weapons to authorities within two weeks.
Any party that launches an attack after the signing of the deal will be considered a “terrorist” and action will be taken against it, as per the agreement. A fine of Rs10 million ($35,933) will be imposed on those who violate the terms of the deal by using weapons against each other, it said. 
The agreement called for land disputes in the volatile district to be settled on a priority basis with the cooperation of local tribes and the district administration. 
It also said that opening offices of banned outfits will be prohibited in the district, while social media accounts spreading hate will be discouraged via collective efforts backed by the government.


Pakistan, Bangladesh envoys in UAE meet, propose direct flights from Islamabad, Karachi to Dhaka

Updated 16 January 2025
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Pakistan, Bangladesh envoys in UAE meet, propose direct flights from Islamabad, Karachi to Dhaka

  • The two diplomats discuss enhanced trade and investment cooperation, people-to-people contact
  • Both envoys agree to support the welfare of the Pakistani and Bangladeshi diaspora in the UAE

ISLAMABAD: Pakistan and Bangladesh discussed the resumption of direct flights between Islamabad, Karachi and Dhaka during a meeting in Abu Dhabi on Thursday, signaling a potential step toward closer bilateral cooperation.
Pakistan and Bangladesh were once one nation but split in 1971 after a bloody civil war, which saw the part previously referred to as East Pakistan secede to form an independent nation.
In the decades since, Bangladeshi leaders, particularly former Prime Minister Sheikh Hasina Wajid, maintained close ties with India, Pakistan’s arch-rival. However, ties between the two countries warmed up since her ouster in a student-led uprising last year in August, marking a new phase of bilateral relations.
The discussion focusing on the ties between both nations took place between Tareq Ahmed, the newly appointed Bangladeshi envoy to the United Arab Emirates, and Faisal Niaz Tirmizi, Pakistan’s ambassador to the UAE.
The interaction happened at Pakistan House in Abu Dhabi.
“During the meeting, matters of mutual interest including cooperation in trade and investment, efforts to increase people-to-people contact, and resumption of direct flights from Islamabad and Karachi to Dhaka, were discussed,” said a statement released after the two diplomats met. “Both sides underscored the importance of supporting the welfare of the large Pakistani and Bangladeshi diaspora in the UAE.”
The Pakistani ambassador highlighted the deep historical and cultural ties between the two nations and stressed the untapped trade potential that could contribute to their economic growth.
His counterpart reaffirmed Bangladesh’s commitment to strengthening ties with Pakistan and emphasized the need for dialogue and cooperation to tackle shared challenges in the region.
There have also been interactions on multilateral forums between the top leaders of both countries since the fall of Wajid’s administration.
Deputy Prime Minister Ishaq Dar is also scheduled to visit Dhaka in the beginning of February to further consolidate relations between the two countries.


Pakistani PM seeks ‘immediate’ restoration of humanitarian aid to Gaza following ceasefire accord

Updated 16 January 2025
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Pakistani PM seeks ‘immediate’ restoration of humanitarian aid to Gaza following ceasefire accord

  • Deal between Hamas and Israel outlines six-week initial ceasefire with the gradual withdrawal of Israeli forces from the Gaza Strip
  • In 15 months of war, Israel has laid to waste much of Gaza, pre-war population of 2.3 million people has been displaced multiple times

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday called for humanitarian assistance to be restored “immediately” to Gaza and other war-torn areas, a day after a ceasefire accord was reached between Israel and Hamas, which controls the Gaza Strip.

The deal comes after months of mediation by Qatar, Egypt and the US and 15 months of war during which Israel has laid to waste much of Gaza and the pre-war population of 2.3 million people has been displaced multiple times. United Nations Secretary-General Antonio Guterres has described the humanitarian situation in the Palestinian enclave as “catastrophic.”

A six-week initial ceasefire phase includes the gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to northern Gaza. The deal requires 600 truckloads of humanitarian aid to be allowed into Gaza every day of the ceasefire, 50 of them carrying fuel, with 300 of the trucks allocated to the north. 

“It is imperative that provision of urgently needed humanitarian assistance is immediately restored to Gaza and other war-torn areas,” Sharif wrote on X, welcoming the ceasefire and thanking the US, Qatar, Saudi Arabia, Egypt and other nations who helped broker the deal.

“Pakistan stands in solidarity with the Palestinian people and pays homage to the sacrifices of tens of thousands of innocent people who lost their lives as victims of Israeli atrocities over the past several decades.”

If successful, the ceasefire will halt fighting that has razed much of heavily urbanized Gaza and killed over 46,000 people, according to Gaza authorities. That in turn could defuse tensions across the wider Middle East, where the war has stoked conflict in the Israeli-occupied West Bank, Lebanon, Syria, Yemen and Iraq, and raised fears of all-out war between arch regional foes Israel and Iran.

“It is hoped that the truce would lead to permanent ceasefire and help in scaling up humanitarian assistance,” Pakistani foreign office spokesman, Shafqat Ali Khan, said at a weekly press briefing, calling for the “immediate and full implementation” of the ceasefire accord. 

Islamabad, which does not recognize nor have diplomatic ties with Israel, said “indiscriminate” use of force by Israeli forces had caused unprecedented loss of lives and property and the displacement of hundreds of thousands of Palestinians while its “expansionist designs” had destabilized the entire Middle East region.

“Pakistan reiterates its support for a just, comprehensive, and durable solution to the Palestinian issue, leading to the establishment of a sovereign State of Palestine based on pre-June 1967 borders, with Al-Quds Al-Sharif as its capital,” Khan added. 

SALIENT FEATURES OF CEASEFIRE DEAL

Under the deal, Hamas will release 33 Israeli hostages, including all women (soldiers and civilians), children, and men over 50. Hamas will release female hostages and under 19s first, followed by men over 50. 

Meanwhile, Israel will release 30 Palestinian detainees for every civilian hostage and 50 Palestinian detainees for every Israeli female soldier Hamas released. Israel will also release all Palestinian women and children under 19 detained since Oct. 7, 2023, by the end of the first phase. The total number of Palestinians released will depend on hostages released, and could be between 990 and 1,650 Palestinian detainees including men, women and children.

Hamas will release the hostages over a six-week period, with at least three hostages released each week and the remainder of the 33 before the end of the period. All living hostages will be released first, followed by remains of dead hostages. 

The implementation of the agreement will be guaranteed by Qatar, Egypt and the United States.

Negotiations over a second phase of the agreement will begin by the 16th day of phase one and are expected to include the release of all remaining hostages, including Israeli male soldiers, a permanent ceasefire and the complete withdrawal of Israeli soldiers.

A third phase is expected to include the return of all remaining dead bodies and the start of Gaza’s reconstruction, supervised by Egypt, Qatar and the United Nations.

At a news conference in Doha on Wednesday, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said the ceasefire would take effect on Sunday. Negotiators were working with Israel and Hamas on steps to implement the agreement, he said.

“This deal will halt the fighting in Gaza, surge much-needed humanitarian assistance to Palestinian civilians, and reunite the [Israeli] hostages with their families after more than 15 months in captivity,” US President Joe Biden said in Washington.

Israel’s acceptance of the deal will not be official until it is approved by the country’s security cabinet and government, with votes slated for Thursday, an Israeli official said.

While people celebrated the pact in Gaza and Israel, Israel’s military escalated attacks after the announcement, the civil emergency service and residents said.

Heavy Israeli bombardment, especially in Gaza City, killed 32 people late on Wednesday, medics said. The strikes continued early on Thursday and destroyed houses in Rafah in southern Gaza, Nuseirat in central Gaza and in northern Gaza, residents said.

Israel’s military made no immediate comment and there were no reports of Hamas attacks on Israel after the ceasefire announcement.

A Palestinian official close to the ceasefire negotiations said mediators were seeking to persuade both sides to suspend hostilities ahead of the ceasefire going into effect, Reuters reported.

With inputs from Reuters


Pakistan denies speculation over Wakhan Corridor takeover amid tensions with Afghanistan

Updated 16 January 2025
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Pakistan denies speculation over Wakhan Corridor takeover amid tensions with Afghanistan

  • Foreign office says Pakistan recognizes Afghanistan’s sovereignty and territorial integrity
  • It also mentions TTP ‘sanctuaries’ on Afghan soil as a key issue straining ties with Kabul

ISLAMABAD: Pakistan dismissed speculation on Thursday about taking over Afghanistan’s Wakhan Corridor, following complaints by officials in Islamabad of cross-border militant attacks, with the foreign office reaffirming its respect for the sovereignty and territorial integrity of the neighboring country.

The Wakhan Corridor, a narrow strip of land in northeastern Afghan region, connects Afghanistan to China and separates Tajikistan from Pakistan’s Gilgit-Baltistan region.

Pakistan has experienced a surge in militant attacks by the Tehreek-e-Taliban Pakistan (TTP) in recent years, with Islamabad accusing the Afghan administration in Kabul of “facilitating” such cross-border violence. Afghan officials, however, have consistently denied the claim.

Tensions escalated between the two countries following reports of Pakistani airstrikes targeting alleged militant camps in Afghanistan in December. Afghan officials reported the strikes resulted in civilian casualties, warning Pakistan of consequences.

“The Wakhan Corridor is a part of Afghan territory,” foreign office spokesperson Ambassador Shafqat Ali Khan said during the weekly news conference. “For us, Afghanistan is a neighbor of Pakistan. We recognize its sovereignty and territorial integrity. There is no question of Pakistan having designs on one of its neighbors.”

Stretching approximately 350 kilometers, the corridor also holds strategic significance as a potential trade and transit route, particularly within the frameworks of China’s Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC).

Khan highlighted the longstanding relationship between the two neighboring countries and Pakistan’s commitment to fostering strong ties with Afghanistan.

“[Afghanistan] is an important neighbor,” he said. “Both countries understand the importance of this equation, the importance of good relations between two neighbors.”

“We wish Afghanistan the best,” he added. “And we want to nurture and develop strong, vibrant relations the way it should be between two neighbors.”

While addressing the broader bilateral relationship, he noted ongoing diplomatic efforts to address security concerns, particularly regarding the presence of the TTP on Afghan soil.

“One of the key problems right now is the sanctuaries that the terrorist group TTP enjoys on Afghan soil. The two sides are in contact on this,” he said, adding that diplomatic engagements between the countries were multi-layered and often go unreported.


Pakistan say aiming to finish ICC Test Championship 2023-25 on ‘winning note’

Updated 16 January 2025
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Pakistan say aiming to finish ICC Test Championship 2023-25 on ‘winning note’

  • West Indies will play a Test match in Pakistan for first time since December 2006
  • They are currently positioned at bottom of the ICC World Test Championship table

ISLAMABAD: Pakistan will aim to finish the ICC World Test Championship 2023-25 on a winning note when they face West Indies in the two-match Test series commencing at the Multan Cricket Stadium from Jan. 17, the Pakistan Cricket Board said on Thursday. 

West Indies, who will play a Test match in Pakistan for the first time since December 2006, are currently positioned at the bottom of the ICC World Test Championship table. In the last Test series between the two sides on Pakistan soil, PCB Hall of Famer Inzamam-ul-Haq led the home side to a 2-0 win in three-match Test series.

Pakistan and West Indies last faced each other in the red-ball format in 2021 in West Indies, where the two-match series was levelled 1-1.

Pakistan under the leadership of Shan Masood will be looking to win their second consecutive home series after they defeated England 2-1 in October last year.

“This is our last Test series in the current ICC World Test Championship cycle, and we would like to finish it on a winning note. Every match in this format holds great importance, and we are committed to giving it our all to end the campaign with a memorable series win,” Shan Masood, Pakistan’s Test captain, said. 

“West Indies are a decent side with a lot of talented players. They bring a unique style to the game, and we know they will push us hard. Test cricket is about adapting to challenges, and as a team, we are prepared to respond to whatever comes our way.

“The series win against England at home has given us a lot of confidence and momentum. We are fully focused on putting in strong performances and carrying forward that winning attitude.”

West Indies’ Test Captain Kraigg Brathwaite said the team was a “very excited” to be in Pakistan. 

“I personally had never come to Pakistan before and probably the majority of players are also touring for the first time and we are really looking forward to doing well in the series. Pakistan are a strong side at home, so we look forward to doing well in these conditions,” Brathwaite was quoted as saying in a statement shared by PCB.

“Our team’s performance will be quite crucial here, and obviously putting runs on the board is important but taking 20 wickets will be the key to win the Test match.

“Our preparations are going well, we had few days in Islamabad where we played a practice game which went quite good for us as a group and we had our sessions here in Multan which were helpful as well.”

Pakistan’s 15-member squad has undergone three days of extensive training, while the Brathwaite-led side practiced for two days at the Multan Cricket Stadium. The touring side also featured in a three-day warm-up game against Pakistan Shaheens at the Islamabad Club in Islamabad last week.

The home side squad comprises of three uncapped players – Kashif Ali (right-arm fast bowler), Mohammad Huraira (right-handed batter) and Rohail Nazir (wicketkeeper-batter), while Abrar Ahmed, Imam-ul-Haq, Mohammad Ali and Sajid Khan have been recalled to the side.

Abrar and Sajid require 11 and six wickets, respectively to complete their 50 Test wickets each.

Pakistan squad:

Shan Masood (captain), Saud Shakeel (vice-captain), Abrar Ahmed, Babar Azam, Imam-ul-Haq, Kamran Ghulam, Kashif Ali, Khurram Shahzad, Mohammad Ali, Mohammad Huraira, Mohammad Rizwan (wicketkeeper/batter), Noman Ali, Rohail Nazir (wicketkeeper/batter), Sajid Khan, and Salman Ali Agha.

West Indies 12 for the 1st Test:

Kraigg Brathwaite (captain), Alick Athanaze, Amir Jangoo (wicket-keeper), Gudakesh Motie, Jayden Seales, Jomel Warrican, Justin Greaves, Kavem Hodge, Keacy Carty, Kevin Sinclair, Mikyle Louis and Tevin Imlach

Also, part of the squad but not considered for selection in the first Test:

Anderson Phillip, Joshua Da Silva (vice-captain) and Kemar Roach