ISLAMABAD: International Monetary Fund’s (IMF) Pakistan Mission Chief Nathan Porter will travel to the South Asian country from Nov. 11-15 to discuss Islamabad’s performance regarding the $7 billion bailout program approved in September, an official with direct knowledge of the development said on Wednesday.
In July, the IMF reached a staff-level agreement on economic policies with Pakistan for a 37-month Extended Fund Facility (EFF) of about $7 billion. In September, the Fund’s executive board approved the 25th loan program that Pakistan has obtained since 1958.
Islamabad was able to secure the loan, critical to keeping its $350 billion fragile economy afloat, after taking painful measures such as hiking fuel and food prices, and implementing reforms to broaden the country’s tax base and privatize state-owned entities.
“IMF staff, led by Mr. Nathan Porter, will travel to Pakistan between November 11-15 for a staff visit to discuss recent developments and program performance to date,” the official said.
“This mission is not part of the first review under the EFF, which will be no earlier than the first quarter of 2025.”
Since it secured the bailout package, Pakistan’s government has said it has been able to increase its foreign exchange reserves and moved toward economic stability.
The country’s stock market has also seen a bullish trend in recent weeks that the government and analysts have attributed to Pakistan’s improving macroeconomic conditions, among other factors.
Inflation in the South Asian country has dropped from a record 38% in May 2023 to 7.2% in October 2024, which the government says dropped due to its prudent fiscal policies.
IMF mission chief to visit Pakistan next week to discuss $7 billion loan ‘performance’
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IMF mission chief to visit Pakistan next week to discuss $7 billion loan ‘performance’
- Nathan Porter to visit Pakistan from Nov. 11-15, says official with knowledge of development
- International lender approved 37-month, $7 billion loan program for Pakistan in September
Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities
- Pakistan’s Prime Minister Shehbaz Sharif chairs review meeting on Pakistan Railways performance
- IMF has pressed Pakistan to improve governance in state-owned assets for financial bailouts
ISLAMABAD: Pakistan Railways has sacked 18% of its “unnecessary staff” in a bid to improve the state-owned asset’s performance, Prime Minister Shehbaz Sharif was briefed on Monday according to a statement from his office, as Islamabad moves to implement ambitious reforms mandated by the International Monetary Fund (IMF) in exchange for a financial bailout.
Improving governance in loss-making state-owned enterprises (SOEs) has long been on the IMF’s list of recommendations for Pakistan, which has turned to the international lender for frequent financial bailouts, the latest of which was a $7 billion loan last year. Pakistan’s prolonged economic crisis has forced the country to implement an ambitious reforms program designed by the IMF, which includes privatizing public sector organizations and laying off unnecessary staff to enhance their revenue.
Pakistan’s SOEs have accumulated losses in the billions over the years due to mismanagement, operational challenges, high debt loads, inefficiencies and alleged corruption. Pakistan’s railways sector has also been poorly managed over the years, with the country witnessing several train accidents over the past few years due to decades-old signal systems and tracks.
Sharif chaired a meeting to review the railway sector’s performance on Monday which was attended by senior cabinet ministers and officials, the Prime Minister’s Office (PMO) said in a statement.
“As part of the Pakistan Railways rightsizing process, 18% of unnecessary staff has been laid off,” Sharif was briefed during the meeting, according to the PMO.
Sharif issued instructions to Pakistan Railways to attract passengers in a competitive manner, calling on the organization to provide better travel services to passengers through public-private partnerships.
He also instructed railways to hire professional and capable manpower, and replace its old system with modern technology that is more in line with today’s age, the PMO said.
Sharif was briefed that the railways suffered losses of Rs10 billion during the devastating floods of 2022, during which most of its tracks remained underwater for 35 days.
“Pakistan Railways improved its performance through various measures after the 2022 floods and has so far earned a profit equal to the initial cost of its freight operations,” the PM was told.
The Pakistani premier urged railways to use its land for business activities in collaboration with the private sector, directing it to formulate a strategy to increase trade in the region, especially with Central Asian countries.
Chinese official criticizes Pakistan’s ‘false rhetoric’ on economic corridor, raises ‘serious’ security concerns — report
- Shengjie says Pakistan’s rhetoric has given “unrealistic expectations” to locals
- Recent attacks have forced Beijing to publicly criticize Pakistan over security lapses
ISLAMABAD: China’s political secretary to Islamabad, Wang Shengjie, has criticized Pakistan’s “false rhetoric” around projects that are part of a joint multi-billion-dollar economic corridor, expressing “serious concerns” over the scheme’s future due to security challenges, a recent report in the Guardian newspaper said.
Beijing has pledged to build energy, infrastructure and other projects as part of the over $60 billion China-Pakistan Economic Corridor (CPEC) scheme launched in 2015 as a flagship of President Xi Jinping’s Belt and Road Initiative to grant China access to trade routes in Asia and Africa.
Recent attacks, including one in October 2024 in which two Chinese workers were killed in a suicide bombing in the Pakistani port city of Karachi, have forced Beijing to publicly criticize Pakistan over security lapses and media has widely reported in recent months that China wants its own security forces on the ground to protect its nationals and projects, a demand Islamabad has long resisted.
Progress on the economic corridor has been slow, particularly in the restive southwestern Balochistan province where China is building a deep-sea port and last week opened Pakistan’s largest airport in the coastal town of Gwadar, among other mega projects. Ethnic separatist groups target Chinese interests in the area, blaming both the governments in Pakistan and China of exploiting the province’s natural resources and neglecting the local population, allegations both Beijing and Islamabad deny. Gwadar residents have held intermittent protests for months, saying Chinese projects in the area have not improved the lives of the local population.
In a report published in the Guardian on Sunday, Shengjie spoke about enduring security challenges in Pakistan.
“Shengjie accused the Pakistani government of using ‘false rhetoric’ around CPEC projects, which had given unrealistic expectations to locals,” the Guardian reported on Sunday,
“We don’t work in rhetoric like Pakistan – we just focus on development,” he was quoted as saying. “If this kind of security situation persists, it will hamper development.”
The report said the Chinese official expressed “serious concerns” over the future of CPEC due to security challenges.
“If the security is not improved, who would come and work in this environment? There is hatred against the Chinese in Gwadar and Balochistan,” Shengjie was quoted as saying . “Some evil forces are against the CPEC, and they want to sabotage it.”
Pakistan has repeatedly assured China it would protect its nationals in the country from militant outfits and has tightened security protocols for Chinese investors and nationals. Islamabad says attacks on Chinese nationals are an “international conspiracy” to sour ties between the two longtime allies.
Pakistan condemns attack on Saudi Hospital in Sudan, killing at least 70
- War between Sudan’s army and Rapid Support Forces broke out in 2023 due to disputes over integration of two forces
- Conflict has killed tens of thousands, driven millions from their homes and plunged half of the population into hunger
ISLAMABAD: Pakistan on Monday condemned a drone attack that killed at least 70 people at the Saudi Teaching Maternal Hospital in the city of El-Fasher in Sudan, the foreign office said.
The war between Sudan’s army and the Rapid Support Forces (RSF), which broke out in April 2023 due to disputes over the integration of the two forces, has killed tens of thousands, driven millions from their homes and plunged half of the population into hunger.
The conflict has produced waves of ethnically driven violence blamed largely on the RSF, creating a humanitarian crisis.
“The attack leading to unfortunate deaths reportedly of seventy people clearly violates international law and puts innocent civilians at grave risk. Pakistan extends its deepest sympathies to the victims and their families,” the foreign office said about the attack on the Saudi hospital.
“This attack underscores the urgent need for upholding the sanctity of health care facilities and adherence to the principles of international humanitarian law.”
The foreign office urged the resolution of the Sudanese conflict through dialogue and diplomacy, while affirming “full support for the unity, sovereignty and territorial integrity of Sudan.”
Darfur Governor Mini Minnawi said on X that an RSF drone had struck the emergency department of the Saudi hospital in the capital of North Darfur, killing patients, including women and children.
Fierce clashes have erupted in El Fasher between the RSF and the Sudanese joint forces, including the army, armed resistance groups, police, and local defense units.
Last week, the RSF issued an ultimatum demanding army forces and allies leave El Fasher city in advance of an expected offensive.
West Indies win Test in Pakistan for first time in 35 years
- Spinner Jomel Warrican took five wickets as West Indies beat Pakistan by 120 runs
- Babar Azam top-scores with 31, Rizwan makes 25 as Pakistan fail to chase 254 runs
MULTAN, Pakistan: Spinner Jomel Warrican took five wickets as the West Indies won a Test match in Pakistan for the first time in nearly 35 years on Monday.
The West Indies won the second Test in Multan by 120 runs on day three to draw the series 1-1.
Pakistan won the first Test by 127 runs, also in Multan.
Warrican finished with nine wickets in the match — 19 in the series — to give the hosts a taste of their own medicine on spin-friendly pitches.
The last time the West Indies won a Test in Pakistan was in Faisalabad in November 1990, having gone winless on their 1997 and 2006 tours.
Resuming on 76-4 and chasing 254, Pakistan’s hopes of victory rested on Saud Shakeel but Kevin Sinclair had the left-hander caught in the slip for 13 to further dent the home team’s fading chances.
Babar Azam top-scored with 31 while Mohammad Rizwan made 25.
World Bank mission in Pakistan to discuss plan to improve power stability system
- World Bank mission to advance preparations for systems that manage, improve quality of power in electrical grids
- Pakistan has taken steps recently to reform its energy sector, lower electricity costs and reduce transmission losses
ISLAMABAD: A World Bank mission is in Pakistan to discuss a plan to improve the power stability system in the energy-starved South Asian country, a spokesperson of the financial institution confirmed on Monday.
As per local media reports, the World Bank mission was due to arrive in Pakistan on Monday for a two-day visit to develop a work plan and agree on the next steps to advance the preparation of Reactive Compensation Devices.
Reactive Compensation Devices are electrical systems used to manage and improve the quality of power in electrical grids by controlling the flow of reactive power.
“There is a mission in town. That’s all I can confirm at this point,” Maryam Altaf, the communications officer at the World Bank’s Pakistan office, told Arab News when asked to confirm reports.
Pakistan has been eagerly attempting to reform its energy sector, lower electricity costs and reduce transmission losses in its bid to curtail its mounting circular debt.
Prime Minister Shehbaz Sharif’s government has increasingly spoken about its desire to reduce electricity theft and transmission losses through energy sector reforms. This has resulted in the country suffering long hours of power outages, especially during summers, and suffering huge economic losses as a result.
Earlier this month, the federal cabinet approved a plan to renegotiate agreements with 14 independent power producers (IPPs). The government said the revised agreements with the IPPs would cause a reduction of Rs802 billion ($2.9 billion) in costs and profits, including a Rs35 billion ($126 million) cut in past excess profits.
At the core of Pakistan’s energy problems are capacity charges, or payments made to IPPs regardless of electricity consumption, which have exacerbated Pakistan’s circular debt, now exceeding Rs2.4 trillion ($8.6 billion), as per energy minister Sardar Awais Ahmad Laghari.
Laghari also announced earlier this month that the government will implement a new energy market system through which consumers will be able to buy power from multiple suppliers starting March.
