ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday urged officials to make speedy and tireless efforts to make a newly secured $7 billion loan deal with the International Monetary Fund (IMF) Pakistan’s last bailout from the global lender.
The prime minister’s statement came during a meeting of fiscal authorities of the country he presided over in the federal capital of Islamabad.
The meeting came hours after Pakistan reached a staff-level agreement with the IMF for a new $7 billion loan, which is subject to IMF board’s approval.
Sharif congratulated Finance Minister Muhammad Aurangzeb and other officials for their hard work in the recent budget that helped materialize the deal.
“Now is the time that we have to act and act speedily and work tirelessly, only then it would be last IMF program,” he said in televised comments.
“Taxing common people who pay tax, if you will impose further tax on them, [then] it’s a premium for those who don’t pay tax and it’s a penalty for those who are honest taxpayers.”
The deal came weeks after Sharif’s government presented its first budget, aiming to collect Rs13 trillion ($44 billion) in taxes, a 40 percent increase from the last fiscal year.
The government has said that it would ensure an increase in the number of taxpayers in the country from the existing 5 million people who paid taxes.
During the meeting, Sharif asked the Federal Board of Revenue (FBR) chairman to collect even the “last penny.”
“Whatever you need in the public interest, national interest to collect the last penny, which is our due right, I will spend any amount of money to get those gadgetries which are required for this purpose,” he offered.
Islamabad wrangled for months with IMF officials to unlock the new loan announced on Friday, which will be paid out over 37 months.
It came on condition of far-reaching reforms including hiking household bills to remedy a permanently crisis-stricken energy sector and uplifting pitiful tax takings.
More unusual methods have seen the tax authority block 210,000 SIM cards of mobile users who have not filed tax returns in a bid to widen the revenue bracket.
Under the deal “revenue collections will be supported by simpler and fairer direct and indirect taxation including by bringing net income from the retail, export, and agriculture sectors properly into the tax system,” IMF Pakistan mission chief, Nathan Porter, said in a statement.
Islamabad also aims to reduce its fiscal deficit by 1.5 percent to 5.9 percent in the coming year, heeding another key IMF demand.
The IMF said the loan and its conditions should allow Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth.”
But Pakistan’s public debt remains huge at $242 billion and servicing it will still swallow up half of the government’s income this fiscal year, according to the lender.
PM urges efforts to make new $7 billion loan deal Pakistan’s last IMF bailout
https://arab.news/5u8d4
PM urges efforts to make new $7 billion loan deal Pakistan’s last IMF bailout
- The new loan, spanning over 37 months, is subject to approval by the IMF executive board
- It came on condition of reforms including hiking household bills and expanding the tax net
Outgoing US president Biden turns down clemency request for Pakistani neuroscientist
- Siddiqui is serving 86-year jail sentence after being convicted of attempting to shoot group of FBI agents, US soldiers and interpreters
- US officials say incident took place as FBI agents, soldiers were about to interrogate Siddiqui at Afghan police compound in Ghazni in 2008
KARACHI: The sister of Dr. Aafia Siddiqui, a Pakistani neuroscientist imprisoned in the US, on Tuesday called on supporters not to lose hope after outgoing US President Joe Biden rejected a petition seeking clemency for the jailed academic.
Siddiqui, a US-trained scientist who denies any wrongdoing, was convicted in 2010 and given a 86-year prison sentence for shooting at FBI agents and soldiers after her arrest in Afghanistan. She was arrested in July 2008 by Afghan police, who said she was carrying two pounds (900 grams) of sodium cyanide and crumpled notes referring to mass casualty attacks and New York landmarks.
The day after her arrest, according to the indictment, Siddiqui grabbed an M-4 rifle in her interrogation room and started shooting while yelling “death to America,” the trial jury heard. No US agents or soldiers were hit, but Siddiqui was shot and wounded in response, according to US prosecutors. She was subsequently convicted by a New York federal jury of attempted murder, armed assault and other charges. Siddiqui was never charged with links to terrorism.
Siddiqui’s family says she was visiting Pakistan in 2003 when she was abducted with her three children by Pakistani intelligence officials and handed to the Central Intelligence Agency (CIA), which took her to Afghanistan. Pakistan’s intelligence agencies deny the claims.
“You must all by now have heard the news that our [mercy] petition was denied at the very last moment,” Dr. Fowzia Siddiqui, who has been lobbying for years for her sister’s release, said in a video message.
The rejection comes in response to a 76,500-word dossier submitted by Siddiqui’s lawyer, Clive Stafford Smith, urging Biden to grant her clemency before the end of his term.
“We will go onto Plan B and Plan D but not lose hope. Please, I have not lost hope, so all I am asking you is to please stay steadfast, stay with me, join us for Plan B and please continue the support,” Fowzia added.
In October 2024, Pakistan’s Prime Minister Shehbaz Sharif also wrote a letter to Biden, calling for Dr. Siddiqui’s release. The letter highlighted concerns about her treatment in prison and warned that her deteriorating physical and mental health could lead to self-harm.
Freeing Siddiqui or winning her repatriation to Pakistan has at times been a popular cause in her homeland, where her trial was seen as unfair.
Eight Chinese Hangor submarines to enter Pakistan fleet ‘very soon’— naval chief
- Joint construction of eight Hangor-class submarines is key project in China-Pakistan naval cooperation
- Pakistan signed agreement with China to procure eight Hangor-class conventional submarines in 2015
ISLAMABAD: Chief of the Pakistan Naval Staff, Admiral Naveed Ashraf, has said this month eight Hangor-class submarines built for Pakistan by China would be included in the South Asian country’s fleet “very soon.”
The joint construction of eight Hangor-class submarines is a key project in China-Pakistan naval cooperation. This type of submarine is equipped with the latest weapons and sensors and with an air independent propulsion (AIP) system on board, the submarine has significantly enhanced submerged endurance capabilities.
Pakistan signed a contract with China to procure eight Hangor-class conventional submarines in 2015, with the first four to be constructed by China and the other four to be assembled by Pakistan under a technology transfer agreement. The plan was that Pakistan will obtain the eight advanced submarines between 2022 and 2028. In December 2021, the fifth Hangor-class conventional submarine, also the first one built in Pakistan, officially received a steel cutting ceremony.
In an interview to China’s Global Times newspaper this month, Ashraf said the Hangor-class submarines would “significantly enhance” Pakistan’s naval capabilities, improving stealth, maneuverability and firepower.
“The project is proceeding as per the timeline. We expect that these submarines will join the Pakistan Navy fleet very soon,” Ashraf said.
The initial Hangor delivery timetable would have seen the four Chinese-built submarines delivered by 2023. But there have been widespread reports that Germany had refused to approve export licenses for its MTU 396 diesel engine, which the submarine was designed to use. The German government had also declined to grant export licenses for its engines in regard to Thailand’s order of the S-26T, a variant of the Chinese Type 039B submarine. The Thai deal eventually fell through.
Neither Germany nor Pakistan have confirmed whether export clearance was ultimately approved or denied.
When Pakistan’s Ministry of Defense (MoD) ordered the eight submarines from China in 2015 at an approximate cost of $4–5 billion, it was the largest arms export contract in China’s military history.
Imran Khan party to boycott talks with Pakistan government unless truth commissions announced
- First round of talks aimed at cooling political instability took place on Dec. 23 with follow ups on Jan. 2 and 16
- Pakistani court last week sentenced Khan to 14 years jail in a land corruption case, a setback to nascent talks
ISLAMABAD: Salman Akram Raja, a lawyer and close aide of former Prime Minister Imran Khan, said the jailed leader had told the party not to participate in the next session of ongoing reconciliatory talks with the Pakistan government unless it announced judicial commissions into accusations Khan’s party and supporters had led violent protests.
The first round of talks aimed at cooling political instability in the 241-million South Asian nation took place between Khan’s Pakistan Tehreek-e-Insaf and the government on Dec. 23, with follow up talks on Jan. 2 and 16.
The PTI party’s demands to the government mainly include the release of all political prisoners including Khan, and the formation of two judicial commissions to probe into the events which led to his arrest in August 2023, and violent protest rallies, including one on May 9, when PTI supporters rampaged through military offices and installations, and a second one on Nov. 26 in which the government says four troops were killed.
A Pakistani court last week sentenced Khan to 14 years imprisonment in a land corruption case, a setback to the nascent talks’ process.
“He [Khan] has said we will not play committee-committee,” Raja told reporters after meeting Khan at the Rawalpindi Adiala prison on Monday.
“Our demands that judicial commissions be formed, if commissions are not announced into the events of May 9 and Nov. 26, then we will not sit in the next round [of talks].”
The talks opened last month as Khan had threatened a civil disobedience movement and amid growing concerns he could face trial by a military court for allegedly inciting attacks on sensitive security installations during the May 9 protests.
The negotiations also began two days after 25 civilians were sentenced by a military court to periods of two to 10 years of “rigorous imprisonment” in connection with attacks on military facilities on May 9, 2023. Just days later on Dec. 26, another 60 civilians were sentenced by a military court to jail time ranging from 2 to 10 years in connection with the May 9 attacks.
Khan’s first arrest in May 2023 in the land graft case in which he was sentenced last week sparked countrywide protests that saw his supporters attack and ransack military installations in an unprecedented backlash against Pakistan’s powerful army generals. Although Khan was released days later, he was rearrested in August that year after being convicted in a corruption case. He remains in prison and says all cases against him are politically motivated.
Protests demanding Khan’s release in November also turned violent, with the PTI saying 12 supporters were killed while the state said four troops had died.
Pakistan’s Reko Diq mine to generate $74 billion in free cash flow over 37 years — Barrick CEO
- Bristow says project’s timeline on track, with fencing, accommodation, and surveys already completed
- Saudi mining firm Manara Minerals could invest in Reko Diq in next two quarters, Pakistani petroleum minister has said
KARACHI: The Reko Diq copper and gold project in Pakistan is expected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices, the CEO of joint owner Barrick Gold said in a media interview.
Barrick Gold owns a 50 percent stake in the Reko Diq mine and the governments of Pakistan and the province of Balochistan own the other 50 percent. Barrick considers the mine one of the world’s largest underdeveloped copper-gold areas, and its development is expected to have a significant impact on Pakistan’s struggling economy.
The project, which was delayed due to a long running dispute that ended in 2022, is expected to start production by the end of 2028. It will produce 200,000 tons of copper per year in its first phase, with an estimated cost of $5.5 billion. The first phase is expected to be completed by 2029, Barrick’s CEO Mark Bristow told Pakistani digital media outlet Dawn News English.
A second phase, estimated to cost $3.5 billion, will double production, he added.
The mine is estimated to have reserves lasting 37 years but Bristow said that through upgrades and expansions it could potentially be mined for much longer.
A free cash flow of $74 billion could generate significant dividends, royalties and taxes for Pakistan, which currently has only around $11 billion in foreign reserves.
Barrick is also in talks with railway authorities and infrastructure providers to revamp the coal terminal in Port Qasim, on the outskirts of Pakistan’s port city Karachi, to develop infrastructure to transport copper in the country and for export.
Bristow said the project’s timeline is on track, with fencing, accommodation, and surveys already completed.
Saudi Arabian mining company Manara Minerals could invest in Pakistan’s Reko Diq mine in the next two quarters, Pakistani Petroleum Minister Musadik Malik said last week.
Executives from Manara visited Pakistan in May last year for talks about buying a stake in the project. Pakistan is also in talks with other Gulf countries about mining opportunities, Malik said.
Pakistan hopes for ‘enduring’ partnership with US under new Trump administration
- In recent years, Washington and Islamabad’s ties deteriorated over the latter’s alleged support of the Taliban in their 2021 takeover of Kabul
- Tensions rose further when ex-PM Imran Khan accused Washington of orchestrating his ouster through a parliamentary vote, a charge the US denies
ISLAMABAD: Prime Minister Shehbaz Sharif has said that he looked forward to working with United States (US) President Donald Trump for an “enduring” Pakistan-US partnership, shortly after the latter was sworn in as the 47th US president.
Pakistan and the US collaborated during the Cold War and in the fight against Al-Qaeda after 9/11, yet their relationship was also tested by divergent priorities on various issues. In recent years, Washington and Islamabad’s ties deteriorated as the former suspected the latter of supporting the Taliban in their 2021 takeover of Kabul, allegations which Islamabad rejected.
Tensions rose further in 2022 when former Pakistan premier Imran Khan accused the Biden administration of orchestrating his ouster via a parliamentary vote, a charge the US denied. Since Khan’s ouster in 2022, Sharif’s government has made frequent efforts to repair the damaged relations.
“Over the years, our two great countries have worked together closely to pursue peace and prosperity in the region and beyond for our peoples & we shall continue to do so in the future,” Sharif said on X, extending his best wishes to Trump for a successful second term in office.
“I look forward to working with him to strengthen the enduring Pakistan-US partnership.”
Differences have also emerged between both countries over Pakistan’s nuclear weapons program. Late last year, US Deputy National Security Adviser Jon Finer said nuclear-armed Pakistan’s development of long-range ballistic missiles could potentially target the US.
The statement came after the US said it was imposing new sanctions related to Pakistan’s missile program, including on the state-owned defense agency that oversees the program. The Foreign Office in Islamabad said at the time that Pakistan’s strategic capabilities were solely meant to defend its sovereignty, dismissing the US allegations as “devoid of rationality.”
On Monday, Shafqat Ali Khan, a Pakistani Foreign Office spokesperson, said Pakistan sought to “solidify” its relations with the US, which were marked by multi-layered cooperation in economy, trade, people-to-people connections, security and counter-terrorism.
“Pakistan-US relations have a very long history, and the relations remain rich and dense, and we would continue to work with the new administration to further solidify and strengthen this vital relationship,” Shafqat told Arab News.
“We seek to further strengthen these ties by ensuring the continued positive growth of bilateral relations.”
But many foreign affairs experts believe the new US administration will continue viewing Pakistan through the “China-India lens.”
“The biggest challenge for Pakistan is that the Trump administration will continue its previous policies of looking at Pakistan through the China-India lens,” Dr. Zafar Nawaz Jaspal, a professor at Quaid-e-Azam University’s School of Politics and International Relations, told Arab News.
“Now, the biggest challenge for us is how to convince the Americans that though we will be not a part of the American policies to contain China, but at the same time, we could be a part of Americans’ policies in addressing the non-traditional security challenges and on Afghanistan.”
Senator Sherry Rehman, who has previously served as Pakistan’s ambassador to the US, said every transition offers opportunities for a reset, and Pakistan needed to state its own goals for a broader bilateral path to widen its relationship with the US from a highly “securitized” lens to a more robust economic and commercial one.
“Islamabad should make a clear agenda with defined milestones for consistent engagement over better terms of trade, not just wait for Washington to respond to regional headwinds, in which Pakistan finds itself seeking balance against an Indian arms race in South Asia,” she told Arab News.
Dr. Salma Malik, another foreign affairs expert, said if the US adopts policies directed against China, every action or policy decision it takes will have a “direct or indirect impact on Pakistan.”
“Therefore, it is important not to overreact or panic, instead, we should cautiously approach developments, assess opportunities, and respond accordingly,” she said.
