ISLAMABAD: Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan program, the IMF said on Friday, the country’s latest move to turn to the global lender for assistance in keeping its fragile economy afloat.
Pakistan completed a short-term $3 billion IMF program in April this year, with the release of a final tranche of $1.1 billion. The facility helped Islamabad avert a default last year. Pakistan’s Finance Minister Muhammad Aurangzeb said his government planned to seek a longer-term loan from the IMF to help stabilize the $350 billion economy after the end of the last program.
The IMF said the new loan deal, which will span 37 months, was aimed at strengthening fiscal and monetary policy as well as reforms to broaden the tax base, improve management of state-owned enterprises, strengthen competition, secure investment, enhance human capital, and scale up social protection through increased generosity and coverage in major welfare programs.
“The program aims to capitalize on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth,” IMF’s mission chief to Pakistan Nathan Porter said in a statement.
The deal, which is subject to approval by the IMF executive board, came after the government of Prime Minister Shehbaz Sharif presented its first budget in parliament last month, promising an increase of up to 25 percent in salaries of government employees and setting an ambitious tax collection target.
The finance minister said Pakistan wanted to collect Rs13 trillion ($44 billion) in taxes, which would be 40 percent more than the last fiscal year’s. He said the government would ensure an increase in the number of taxpayers the country from the existing 5 million people who paid taxes in Pakistan.
Analysts said the new budget of about $68 billion, up from $50 billion in the last year, was likely to land a longer-term IMF bailout of up to $8 billion to help stabilize the economy.
Pakistan reaches new $7 billion loan deal with IMF, says lender
https://arab.news/juaky
Pakistan reaches new $7 billion loan deal with IMF, says lender
- The new loan deal, which will last for 37 months, is aimed at strengthening fiscal and monetary policy as well as reforms
- The program aims to capitalize on the hard-won macroeconomic stability achieved over the past year, says IMF’s mission chief
Amid X ban, Pakistan pushes for better Internet access in GSM Asia Pacific talks
- Pakistani authorities banned social media platform X in February, triggering concerns about Internet freedom
- Telcos authority has reportedly said it plans to restrict the use of VPN to prevent users from accessing X
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday called for better Internet access for the masses during his meeting with a delegation of the Global Systems for Mobile Communication’s (GSM) Asia Pacific, despite Pakistan’s ongoing ban on social media platform X.
Pakistani authorities banned X on Feb. 17 after protests swept the country over rigging allegations in the general election held earlier this year. The government defended the “legitimate” ban in court, saying it was aimed at addressing the country’s national security concerns.
Additionally, Pakistan Telecommunication Authority (PTA) Chairman Major General (retired) Hafeezur Rehman reportedly said the authority plans to restrict the use of Virtual Private Networks (VPN) to prevent users from accessing X. The move was criticized by digital rights activists and triggered fears of digital censorship and Internet freedom.
“Better access to the Internet for the common man, improvement of digital infrastructure, e-governance, vocational training of digital skills among youth and innovation and promotion of business in this sector are focused,” Sharf told a four-member delegation led by GSM Asia Pacific chief Julian Gorman.
As per the Prime Minister’s Office (PMO), Sharif said his government was implementing an action plan for reforms and digitization of the information technology sector, adding that it would also allocate a “historic” development budget in the current financial year.
He noted that Pakistan was working to increase IT exports on priority. The Pakistani prime minister said his vision revolved around every person in the country having access to a smartphone, broadband Internet connection and every business having a QR code facility.
The visiting delegation briefed the prime minister about GSM’s role in promoting telecom services across the world, including Pakistan. It expressed interest in further enhancing cooperation with the Pakistani government in the field of IT and telecom, the PMO said.
Pakistan cautions Palestine, Iran against fulfilling Netanyahu’s ‘wider war’ designs in avenging assassinations
- Deputy PM Dar is in Jeddah to attend an OIC Executive Council meeting on Palestine
- Calls for trade, oil sanctions against Israel if it does not relent military campaign in Gaza
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Wednesday urged Iran and Palestine to avoid avenging recent assassinations carried out by Israel, warning them against fulfilling Benjamin Netanyahu’s designs for a “wider war” in the Middle East.
Dar is in Jeddah to attend the OIC’s Executive Council meeting which was convened on requests by Palestine and Iran. The intergovernmental body discussed the ongoing Israeli aggression against Palestine and other regional states during the meeting.
Tensions have escalated in the Middle East after Hamas’ political chief Ismail Haniyeh was killed in Tehran last week when a short-range projectile was fired at his accommodation. Iran blamed Israel for the attack, vowing vengeance against the Jewish state.
“We fully understand the determination of the Islamic Republic of Iran and the Palestinian people to respond to and avenge the provocative and criminal assassinations by Israel and the flagrant violation of international law,” Dar told participants of the meeting.
“While such grave action must be avenged, we must not fulfill Netanyahu’s design for a wider war.”
Almost 40,000 Palestinians have been killed in an Israeli military campaign in Gaza triggered by a Hamas-led attack on southern Israel on Oct. 7 last year.
Dar urged OIC member states to respond to Israel with “several collective measures” if it does not relent from its military campaign in Gaza.
“We should make it clear: if the Israeli leadership continues to subvert the legally binding demand for an immediate and permanent ceasefire, the entire OIC membership would take several collective measures in response, including imposition of trade and oil sanctions,” he said.
The Pakistani minister urged OIC countries to enhance their assistance for Palestinians in Gaza so that their demands for food, medicines, energy and other essential supplies are met. He also called for Palestine’s admission as a “full member” of the United Nations.
DAR MEETS OIC CHIEF
The Pakistani foreign minister separately met OIC Secretary-General Hissein Brahim Taha on the sidelines of the meeting.
Both leaders discussed the situation in Gaza, Indian-administered Kashmir, Islamophobia, discrimination and violence against Muslims, Pakistan’s foreign ministry said in a statement.
“The foreign minister underscored the urgency of a ceasefire and unhindered supply of humanitarian assistance for the Palestinian people,” the statement said.
Dar also met the foreign ministers of Algeria and Malaysia to discuss bilateral ties and economic cooperation between the two countries.
In his meeting with Algeria’s Ahmad Attaf, the Pakistani minister noted the historic ties between the two countries, the foreign ministry added.
“Deputy Prime Minister Dar and Foreign Minister Attaf agreed to further strengthen bilateral economic ties through enhanced trade and investment,” it said.
With his Malaysian counterpart, Dar spoke about enhancing bilateral trade and investment, educational linkages, capacity building of workforce, and people-to-people contacts between the two countries.
Pakistani party holding protests against inflation threatens civil disobedience, new sit-ins
- Hafiz Naeem-ur-Rehman, chief of the Jamaat-e-Islami party, says will appeal to people not to pay electricity bills
- Around 3,000 supporters of the Jamaat-e-Islami have occupied a road in the garrison city of Rawalpindi since July 26
ISLAMABAD: Hafiz Naeem-ur-Rehman, the chief of the Jamaat-e-Islami party which has been holding a sit-in in the garrison city of Rawalpindi against inflation and high electricity costs, on Wednesday threatened to launch a civil disobedience movement if the government did not meet its demands.
Around 3,000 supporters of the religious political party, demanding that the government withdraw taxes on electricity to offset price hikes, have occupied a road in Rawalpindi since July 26, after being prevented by police from heading to the capital, Islamabad.
Several rounds of talks have been held between a government negotiating team and protest leaders but there has been no breakthrough so far.
“Our sit-in protest is continuing and we will march tomorrow [Aug. 8] on Murree Road [Rawalpindi], on Aug. 11 we will stage a sit-in protest outside the Chief Minister’s House in Lahore, on Aug. 12 we will protest in Peshawar, on Aug. 16 we will also hold a sit-in protest in Multan,” Rehman told reporters on Wednesday.
“We also have the option to call a strike. And if they [the government] still don’t change after all this, we also have the option to peacefully appeal to the people to not pay electricity bills. We don’t want things to get to that point.”
The government raised power prices 26 percent during the last fiscal year, which ended June 30, before tacking on another 20 percent increase on July 13. Officials say the increases were needed to meet conditions set by the International Monetary Fund for a $7 billion loan deal reached last month.
The government has also added a confusing bevy of taxes on top of the base price, adding up to a bill that has more than doubled for some Pakistanis.
“Striking is our democratic right, that we appeal to the people to peacefully shut down their businesses,” Rehman said. “Already they [government] have led to the collapse of people’s businesses.
Pakistan’s disaster management body predicts more rain, thundershowers in northwest
- At least 44 people have been killed, 83 wounded in rain-related incidents in Khyber Pakhtunkhwa since July 1
- Pakistan is recognized as one of the worse affected countries from erratic weather patterns caused by climate change
ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) has predicted more rainfall and thundershowers in the northwestern Khyber Pakhtunkhwa province over the next 48 hours, state-run media reported on Wednesday, as monsoon downpours continue to lash parts of the South Asian country.
At least 44 people have been killed and 88 injured in rain-related incidents in the province so far, the provincial disaster management authority in KP said.
“NDMA’s National Emergencies Operation Center anticipated that rainfall and thundershowers were expected in most parts of the province over the next 24 to 48 hours,” the state-run Associated Press of Pakistan (APP) reported.
It said chances of heavy rainfall were expected in the Hazara and Malakand, Bannu, Peshawar, Kohat, Swabi, Swat, Mansehra, Haripur, Dera Ismail Khan divisions of the province and their surrounding areas.
The statement advised people to stay informed by keeping track of weather updates and alerts through the “Pak NDMA Disaster Alert Application” which provides timely alerts, adviseries and guidelines to the public.
The NDMA issued instructions to all relevant departments to take necessary precautions to mitigate the possible effects of floods and extreme weather.
Pakistan is recognized as one of the most vulnerable countries to climate change effects in the world. Last month, a United Nations official warned that an estimated 200,000 people in Pakistan could be affected by the ongoing monsoon season.
In 2022, unusually heavy rains triggered flash floods in many parts of the country, killing over 1,700 people, inflicting losses of around $30 billion, and affecting at least 30 million people.
The arrival of the monsoon season has also sparked floods and landslides across South Asia,, with at least 195 killed and almost 200 missing in one disaster in neighboring India.
Pakistan, Iraq announce slew of measures for Pakistani pilgrims traveling for Arbaeen
- Arbaeen marks end of 40-day mourning period for Prophet Muhammad’s (PBUH) grandson Imam Hussain
- Pakistani pilgrims traveling to Iraq will not have to surrender passports on arrival, says state-run media
ISLAMABAD: Pakistan and Iraq have agreed on a slew of measures to facilitate Pakistani pilgrims traveling to the Middle Eastern country for the Arbaeen religious festival, state-run media said, which include easing travel restrictions and operating special flights between the two countries.
Arbaeen is a significant event in the Islamic calendar observed by Shia Muslims around the world. It signifies the end of a 40-day mourning period for Prophet Muhammad’s (peace be upon him) grandson Imam Hussain, who was killed in the Battle of Karbala in 680 CE.
Pilgrims from Pakistan and all around the world flock to the Middle Eastern country every year to pay tribute to Hussain on the occasion.
“Pakistan and Iraq have agreed to operate special flights for Pakistani pilgrims on the occasion of Arbaeen,” the state-run Associated Press of Pakistan (APP) said on Wednesday.
“Both sides agreed that Pakistani pilgrims traveling to Iraq for Arbaeen would no longer need to surrender their passports upon arrival.”
The decision was reached during a meeting between Interior Minister Mohsin Naqvi and Iraq’s Ambassador Hamid Abbas Lafta. As per the APP, both officials promised to make the religious journey smoother and more accessible for thousands of devotees.
It was agreed during the meeting that Iraq would increase the quota for Pakistani pilgrims and would issue them visas directly from the Embassy of Iraq, APP said.
The state media also said that a new Iraqi consulate would also be opened in Pakistan’s southern port city of Karachi.
Both countries would also initiate a crackdown on travel agents charging excessive fees to pilgrims, APP said. A visa waiver agreement on diplomatic and official passports was also reached during the meeting, the state media reported, adding that Pakistan requested the same for citizens who held regular passports.
Decisions taken in the meeting aimed to provide equal facilities to Pakistani pilgrims by ensuring a hassle-free experience, APP said. It said Naqvi also managed to secure approval from Aviation Minister Khawaja Asif to allow Iraqi airlines to operate special flights to Pakistan for the occasion.
This development marked a significant improvement in travel arrangements for Pakistani pilgrims, promising a more convenient and accessible journey to Iraq, APP said.
