KARACHI: The International Monetary Fund (IMF) said on Thursday it would wait for findings of its mission, currently holding talks in Islamabad, for further engagement with Pakistan, which seeks a fresh bailout from the global lender.
The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.
While Islamabad has said it expects a staff-level agreement by July, both Pakistani and IMF officials have refrained from commenting on the size of the program. The South Asian country is expected to seek around $7-8 billion bailout from the global lender.
An IMF team, led by Mission Chief Nathan Porter, this week met Pakistan Finance Minister Muhammad Aurangzeb, central bank governor, chairman of the Federal Board of Revenue and other officials in Islamabad to kickstart discussions on the country’s further engagement with the lender.
“Right now, a mission team led by Nathan Porter, our Mission Chief, is meeting with the authorities this week to discuss the next phase of our engagement with Pakistan,” IMF spokesperson Julie Kozack said at a press briefing on Thursday, when asked about the status of talks with Pakistan.
“Given that there is a mission on the ground, we will wait for them to complete their work and we will communicate the findings of the mission in due course.”
Pakistan narrowly averted a default last summer and its $350 billion economy has slightly stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high of 38 percent in May last year.
However, the South Asian country is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year, compared to negative growth last year.
Wall Street Bank Citi expects Pakistan to reach an agreement with the IMF of up to $8 billion program by end-July, and recommends going long on the country’s 2027 international bond.
“While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients.
“First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including Finance Minister Muhammad Aurangzeb.
Citi said it expected Pakistan’s international 2027 bond to offer a sweet spot to investors with sufficient liquidity and large upside as risks of default dissipate further.
IMF to wait for ‘findings’ of mission in Pakistan for further engagement with Islamabad — spokesperson
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IMF to wait for ‘findings’ of mission in Pakistan for further engagement with Islamabad — spokesperson
- An IMF team this week met top Pakistani officials in Islamabad to kickstart discussions on a fresh bailout
- The cash-strapped South Asian country is expected to seek around $7-8 billion bailout from the global lender
Pakistan seeks joint ventures in renewable energy with Kyrgyztan
- Pakistan’s Power Minister Sardar Awais Ahmed Khan Leghari meets Kyrgyz ambassador to discuss energy opportunities
- Pakistan is part of CASA-1000 project through which it expects to buy energy from ex-Soviet republics Tajikistan, Kyrgyzstan
ISLAMABAD: Pakistan’s Power Minister Sardar Awais Leghari sought joint ventures with Kyrgyzstan in renewable energy, state-run media reported on Tuesday, amid Islamabad’s push to resolve its prolonged energy crisis through collaboration with international partners.
Pakistan has suffered from an energy crisis that stems largely from a gap its energy supplies and electricity demand. The cash-strapped country lacks adequate resources to run its oil-and-gas powered plants and imports most of its energy needs. Similar to Pakistan, Kyrgyzstan also has large but untapped potential for renewable energy, including hydropower, solar and wind.
According to National Electric Power Regulatory Authority’s (NEPRA) 2022 yearly report, Pakistan’s total installed power generation capacity is 43,775 MW, of which 59 percent of energy comes from thermal (fossil fuels), 25 percent from hydro, 7 percent from renewable (wind, solar and biomass) and 9 percent from nuclear energy resources.
“Talking to Ambassador Kyrgyzstan to Pakistan Avazbek Atakhanov in Islamabad, he [Leghari] emphasized the potential for joint ventures in renewable energy,” state broadcaster Radio Pakistan reported.
Leghari invited Kyrgyz investors to explore opportunities in Pakistan’s energy sector. He briefed the ambassador on the ongoing reforms being undertaken by the government in the power sector, which the minister said was aimed at improving efficiency and sustainability.
“The Ambassador of Kyrgyzstan appreciated Pakistan’s reform efforts in the energy sector and expressed his country’s willingness to collaborate in areas of mutual interest,” Radio Pakistan said.
The Kyrgyz ambassador noted that enhanced cooperation in power infrastructure and energy connectivity would contribute to regional stability and economic growth, the state broadcaster added.
Pakistan has been eagerly pushing to leverage its strategic position as a key trade and transit hub to connect Central Asia with global markets. Since last year, there has been a flurry of high-level visits, investment discussions and other economic engagements between Islamabad and Central Asian republics in a bid to achieve that.
Pakistan is eagerly pursuing the CASA-1000 project, through which former Soviet republics Tajikistan and Kyrgyzstan, who both have an extensive network of hydroelectric power plants, will be able to sell excess energy to Pakistan and Afghanistan in the summer months.
Last month Prime Minister Shehbaz Sharif undertook visits to Azerbaijan and Uzbekistan as part of Pakistan’s economic diplomacy push to enhance trade and investment with landlocked Central Asian states.
Uzbekistan is the largest consumer market and the second-biggest economy in Central Asia. It is central to Pakistan’s regional connectivity plans and was the first Central Asian nation with which Pakistani officials signed a bilateral Transit Trade Agreement (UPTTA) and a Preferential Trade Agreement (PTA) covering 17 items.
China ready to strengthen space ties as Pakistani astronaut prepares for Tiangong mission
- Chinese spokesperson hopes Pakistani astronaut’s entry into the Chinese space station will be a success
- The Pakistani astronaut will train as a scientific payload specialist to conduct research aboard the station
ISLAMABAD: China is prepared to strengthen space cooperation with Pakistan, its embassy in Islamabad said on Tuesday, quoting Chinese Foreign Spokesperson Lin Jian, who highlighted a day earlier a Pakistani astronaut would soon join the Chinese space station successfully.
Pakistan’s space agency signed a cooperation agreement with China last week, paving the way for the country’s first astronaut to embark on a mission to the Chinese space station, Tiangong.
According to Pakistan’s Space & Upper Atmosphere Research Commission (SUPARCO), the Pakistani astronaut will be trained as a scientific payload specialist to conduct research aboard the station.
The mission will focus on scientific experiments across disciplines, including biological and medical sciences, aerospace, applied physics, fluid mechanics, space radiation, ecology, material sciences, microgravity studies and astronomy.
“China is ready to work with Pakistan to elevate our space cooperation to a new level and give a stronger boost to the socioeconomic development of the two countries through space technologies,” Lin Jian said, according to a social media post by the Chinese embassy.
Lin told reporters on Monday exploring the universe had always been humanity’s shared aspiration.
“We are glad to see the signing of a space cooperation agreement between China and Pakistan,” he said. “We hope the Pakistani astronaut’s entry into the Chinese space station will be a full success.”
He added that since the launch of China’s manned space engineering program, Beijing had followed principles of peaceful use, equality, mutual benefit and common development.
“We focus on sharing with all humanity the results of China’s development and offer opportunities of cooperation in China’s space station,” he said, noting Beijing was open to further collaboration with other countries.
Pakistan and China have deepened their space partnership in recent years, marked by joint satellite development and a planned lunar mission. In January, the two countries signed a memorandum of understanding for Pakistan’s first lunar rover to be included in China’s Chang’e 8 mission in 2028.
The rover, developed by SUPARCO, will land at the lunar south pole, carrying scientific instruments designed by Pakistani, Chinese and European scientists. Pakistani scientists will operate the rover from Earth, conducting surface mapping, soil analysis and radiation studies.
Pakistan previously participated in lunar exploration in 2024, when its first lunar satellite, ICUBE-Q, developed by students at the Institute of Space Technology (IST) in collaboration with Shanghai Jiao Tong University, was deployed aboard China’s Chang’e 6 mission to capture lunar images and collect magnetic field data.
Baloch separatist group claims attack on Pakistan security convoy by woman suicide bomber
- One Pakistani troop was killed, four injured as suicide bomber targeted security convoy in Balochistan on Monday
- Baloch Liberation Army has previously used woman fighters to carry out suicide attacks against security forces
QUETTA: A prominent Baloch separatist outfit this week claimed responsibility for an attack by a woman suicide bomber targeting a convoy of Pakistani security forces that resulted in the killing of one paramilitary troop and injuries to four others in the southwestern Balochistan province.
The attack took place in Balochistan’s Kalat district on Monday afternoon, when the paramilitary Frontier Corps (FC) convoy was en route to security forces’ mess from the FC Fort on N-25 Quetta-Karachi highway, according to Kalat Deputy Commissioner Bilal Shabbir.
The Baloch Liberation Army, (BLA) the most prominent ethnic Baloch separatist outfits in Balochistan, claimed responsibility for the attack in a statement on Monday night.
“A female suicide bomber struck the security forces convoy killing one soldier of the paramilitary Frontier Corps on the spot and injuring four others who were shifted to hospital,” DC Shabbir told Arab News.
“The female suicide bomber was standing outside the FC fort located at the highway and detonated herself when they were moving from the fort to the security forces’ mess in Kalat.”
The BLA has used woman fighters in its ranks to carry out suicide attacks against Pakistani security forces and Chinese nationals over the last few years.
In 2022, Shari Baloch, a woman suicide bomber linked to the BLA carried out a suicide attack that ripped through a passenger van, killing three Chinese nationals and a Pakistani in the southern port city of Karachi, according to Pakistani authorities.
In November last year, Pakistani officials arrested a woman among three suspects involved in a deadly suicide bombing, also claimed by the BLA, that killed two Chinese nationals and a Pakistani man outside the Karachi airport on Oct. 6, 2024.
Balochistan has for years been the scene of an insurgency, where separatist groups have frequently attacked police and security forces as well as civilians and foreigners they see as “outsiders” in the resource-rich region, where China has been building a deep-sea port in Gwadar on the Arabian Sea and has made huge investments under its Belt and Road Initiative (BRI).
The separatists accuse Islamabad of exploiting the province’s natural resources. Successive Pakistani governments deny the allegations and say they have prioritized Balochistan’s development through investments in health, education and infrastructure projects.
Pakistan, IMF kick off talks on $7 billion bailout program review
- IMF delegation led by Nathan Porter arrived in Pakistan on Monday to assess country’s economic performance
- Pakistan secured the $7 billion Extended Fund Facility (EFF) last summer as part of an economic recovery plan
KARACHI: Pakistan and the International Monetary Fund (IMF) on Tuesday formally kicked off talks for the first review of a $7 billion bailout program that Islamabad secured last year, the finance ministry confirmed in a statement.
A Pakistani economic adviser told Arab News on Monday, requesting anonymity, that a nine-member mission led by Nathan Porter had landed in Pakistan to assess the country’s economic performance to determine the release of a $1.1 billion tranche over the following three weeks.
Pakistan’s macroeconomic indicators have gradually improved since it secured the IMF bailout last summer. The country’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February. Pakistan’s current account recorded a surplus of $729 million in November 2024, marking the fourth consecutive month since the country reported a current account surplus. The Pakistan Stock Exchange (PSX) also reported record gains last year, with frequent bullish trends dominating the market.
“Pictures of kick-off meeting held today, ” the finance ministry wrote as caption of two photos shared with media on WhatsApp. The pictures showed Pakistani officials, led by Finance Minister Muhammad Aurangzeb, involved in discussions with an IMF delegation led by its Pakistan mission chief Nathan Porter.
Pakistan’s finance ministry has so far not shared any details of the talks between the government and the IMF. However, local media has widely covered the delegation’s visit.
Speaking to international news agency Reuters, Aurangzeb said Pakistan is “well-positioned” for the first review.
“They are here. We will have two rounds of talks, first technical and then policy level,” Aurangzeb said. “I think we are well positioned,” he added.
The IMF team usually spends around two weeks reviewing fiscal reforms and policy.
Last week, a separate IMF team visited Pakistan to discuss around $1 billion in climate financing on top of the EFF. That disbursement will take place under the IMF’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.
Upbeat New Zealand feel ‘lucky’ in Lahore for South Africa semifinal
- Kiwis face South Africa in Lahore on Wednesday in second Champions Trophy semifinal
- New Zealand won tri-series tournament involving Pakistan, South Africa in Lahore weeks ago
New Zealand bring “positive emotions” on their return to Lahore for the Champions Trophy semifinal against South Africa after good results during the Pakistan tri-series, coach Gary Stead said on Tuesday.
New Zealand beat a vastly different South Africa team by six wickets in Lahore three weeks ago, two days after beating Pakistan at the same venue in warmups for the ODI tournament.
“We are lucky. We’ve had some experience playing here in the tri-series before the tournament actually kicked off,” Stead told reporters on a video call.
“We’ve got some on-ground experience and I guess some positive emotions to fall back on the way we played here as well.”
Though losing to India on a spin-friendly wicket in Dubai, New Zealand were happy how their three-pronged pace attack of Matt Henry, Kyle Jamieson and Will O’Rourke performed to restrict the South Asians to 249-9.
Stead, also a selector, said it was likely New Zealand would stick with the same trio and complement them with spin from their contingent of all-rounders as they did against India and in the previous win against Bangladesh in Rawalpindi.
New Zealand produced 300-plus totals in both their recent wins in Lahore, and Stead said taking wickets in the early and middle overs would be key to prevent South Africa from batting big.
“We haven’t been down to the ground yet to see if we’re on a used wicket or not, but generally these wickets are pretty good batting surfaces,” he added.
“They don’t bounce too much.”
South Africa will have a very different team than the lineup that played in the tri-series.
Tabraiz Shamsi has not appeared at the Champions Trophy but Stead suggested the left-arm wrist spinner might be called up in place of paceman Lungi Ngidi.
“They’re a very, very good side and we’re going to have to play right near our best to beat them,” he added.
