IMF expresses ‘satisfaction’ over Pakistan’s domestic debt volume— official

This handout photograph released by the Pakistan Press Information Department (PID) on November 12, 2024, shows Pakistan’s Finance Minister Muhammad Aurangzeb (5L) meeting with a International Monetary Fund (IMF) review mission led by IMF mission official Nathan Porter (3R) at the Finance Ministry in Islamabad on November 11, 2024. (PID)
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Updated 13 November 2024
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IMF expresses ‘satisfaction’ over Pakistan’s domestic debt volume— official

  • IMF delegation is in Pakistan till Friday to discuss Pakistan’s performance of $7 billion loan program approved in September
  • Pakistan assures IMF Islamabad reducing domestic debt and increasing debt servicing period, says finance ministry official

ISLAMABAD: A visiting International Monetary Fund (IMF) delegation on Wednesday expressed satisfaction over the volume of Pakistan’s domestic debt, a finance ministry official confirmed, as the international lender’s representatives holds discussions with Islamabad on key benchmarks of a $7 billion loan program approved in September. 
The IMF delegation led by Pakistan mission chief Nathan Porter arrived in Islamabad on Monday on an unplanned visit. The team is expected to hold meetings until Friday with top officials from ministries such as finance and energy and the Federal Board of Revenue, the main tax collection agency, to discuss the performance of a $7 billion loan program approved in September. The IMF has said Porter’s visit is not part of the first review of the loan program, which is not scheduled to take place before the first quarter of 2025.
According to Pakistan’s central bank, the country’s domestic debt rose by Rs7.838 trillion [$28.2 billion] over the past year to reach a total of Rs47.536 trillion [$171.1 billion] in September 2024, up from Rs39.698 trillion [$142.9 billion] in September 2023.
“The IMF delegation and finance ministry officials have discussed the domestic debt portfolio as part of discussions regarding the loan performance,” a finance ministry official told Arab News while seeking anonymity. “The IMF delegation has expressed satisfaction over the [volume] of the country’s domestic debt.”
He said the finance ministry informed the IMF delegation that Islamabad was gradually reducing the volume of its domestic debt and increasing the period of its debt servicing.
“The IMF wants Pakistan to increase the average period of debt servicing as this will help stabilize the economy,” the official said.
He added that the Federal Board of Revenue (FBR) officials also briefed the IMF about the government’s measures to digitize tax collection.
“The briefing is also given on the improvement in the revenue collection after the use of artificial intelligence by the tax collection agency,” the official said. He said the FBR has included over 0.4 million small traders in the tax net during the current fiscal year. These small traders and retailers have deposited Rs12 billion [$43.2 million] in taxes in the first quarter of this fiscal year, he said. 
“Some changes in the Tajir Dost Scheme will also be discussed with the IMF to improve the tax collection,” the official said, referring to an FBR scheme that the government has introduced to bring retailers in the tax net via incentives. 
The IMF reached a staff-level agreement with Pakistan in July for a 37-month $7 billion bailout package, which the Fund’s Executive Board approved in September. This was the 25th loan program that Pakistan has obtained since 1958.
Islamabad secured the bailout 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.
“INTERIM CHECKS”
Pakistan’s macroeconomic conditions and investor sentiment have improved in recent months, which analysts say has led to a bullish trend in the country’s stock market.

Syed Atif Zafar, the chief economist at Topline Securities, said the IMF delegation’s meetings with Pakistani officials were part of “interim checks” to ensure a successful review of the loan facility next year.

“The government failed to achieve the tax revenue target in the first quarter that has perhaps necessitated this IMF visit, but still the authorities have multiple options and time to overcome this gap,” he told Arab News.

“The good thing at this point is that all structural and quantitative benchmarks of the loan program are on track.”

Tahir Abbas, a senior economist and head of research at Arif Habib Limited, said Pakistan last month requested the IMF for a $1 billion climate financing facility to mitigate climate risk, which would be discussed during the ongoing IMF visit.

“Pakistan’s revenue shortfall of around Rs200 billion ($720 million) in the first quarter has mainly necessitated this IMF visit,” he told Arab News.

“The finance ministry will now inform the IMF delegation about the possible revenue measures to overcome the shortfall and cut the expenditures.”


Pakistani security forces kill eight militants in restive northwest

Updated 5 sec ago
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Pakistani security forces kill eight militants in restive northwest

  • Army says six militants also injured during operation in Miran Shah area of North Waziristan
  • South Asian nation blames surge in militancy on TTP fighters operating out of Afghanistan

ISLAMABAD: Security forces killed eight militants while six others sustained injuries during an intelligence-based operation in Pakistan’s restive northwestern Khyber Pakhtunkhwa province, the military’s media wing said on Wednesday.
According to Inter-Services Public Relations (ISPR), the operation was conducted in the Miran Shah area of North Waziristan district.
Khyber Pakhtunkhwa, which borders Afghanistan, has witnessed several attacks by Tehreek-e-Taliban Pakistan (TTP) militants who have targeted security forces’ convoys and check posts, besides killing and kidnapping officials and civilians in recent months.
“Security forces conducted an intelligence-based operation in general area Miran Shah, North Waziristan District on the reported presence of khwarij [militants],” the ISPR said.
“During the conduct of the operation, own troops effectively engaged khwarij’s location, as a result of which, eight khwarij were sent to hell, while six khwarij got injured.”
A “sanitization operation” was also conducted in the area to eliminate any other militants, it added.
Earlier this month on Nov. 10, Pakistani security forces killed four militants in two separate encounters in Khyber Pakhtunkhwa. Prior to that, four Pakistani soldiers and five militants lost their lives in a gunbattle in South Waziristan’s Karama area.
The TTP leadership is said to be based in neighboring Afghanistan, affecting the ties between Kabul and Islamabad since the Pakistani officials have accused the Afghan Taliban of “facilitating” cross-border militant attacks.
Afghanistan denies the allegation and has urged Pakistan to resolve its security challenges internally.
 


Maxwell’s power-hitting and Australia pace flatten Pakistan in a rain-shortened T20

Updated 8 min 57 sec ago
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Maxwell’s power-hitting and Australia pace flatten Pakistan in a rain-shortened T20

  • Match started after a three-hour delay and was shortened to seven over per side
  • Pakistan made 64-9 in response to Australia’s 93-4, losing five wicket in first 15 balls

BRISBANE: Glenn Maxwell’s robust 43 off 19 balls helped Australia thump Pakistan by 29 runs in a rain-shortened first Twenty20 on Thursday.
After a nearly three-hour delay due to lightning and rain, the match was shortened to seven overs per side.
Maxwell powered Australia to 93-4 and Pakistan reached only 64-9 after slumping to 16-5 inside the first 15 balls.
Nathan Ellis (3-9) and Xavier Bartlett (3-13) ran through the top order before No. 8 batter Abbas Afridi’s unbeaten 20.
“Certainly had a lot of fun out there,” Maxwell said. “We thought we had enough on the board … the bowlers did a great job. There was a few of us who had packed our bags expecting the game to be called off, so it was a mad rush to get ready.”
Maxwell followed scores of 0, 16, 0 in the preceding one-day international series won by Pakistan 2-1 by smacking three sixes and five boundaries. He played some extravagant lap shots to third man against the pace of Haris Rauf (1-21) and Naseem Shah (1-37).
Maxwell fell in the penultimate over when he hooked Abbas Afridi (2-9) to backward square leg but Marcus Stoinis provided a final flourish with an unbeaten 21 off seven balls. Stoinis smashed 20 runs in Shah’s last over with two fours and six.
None of the top six Pakistan batters reached double figures.
Sahibzada Farhan hit Spencer Johnson for two successive boundaries off the first two balls he faced before mistiming a pull shot off the fourth ball and holing out at midwicket.
Mohammad Rizwan, in his first match as the Pakistan skipper, fell to the first ball when he top-edged Bartlett to point. Usman Khan was caught at third man in the same over.
Ellis struck twice in his first over when Babar Azam was caught in the deep and Jake Fraser-McGurk snapped his third catch as Irfan Khan also offered a tame catch at deep midwicket.
Pakistan was 24-6 in the fourth over when Salman Ali Agha scored only 4 in his debut T20, guiding a sharp, short Bartlett delivery to Australia first-time captain Josh Inglis on the run.
Leg-spinner Adam Zampa clean-bowled Shaheen Shah Afridi and Naseem Shah off successive balls in the last over to complete the rout.
“It was difficult to keep things normal in a seven-over game,” Rizwan said. “Got to give credit to Maxy, his style worked really well.”
The second T20 is in Sydney on Saturday, and the last in Hobart on Monday.
 


ICC Champions Trophy promo confirms Pakistan as host

Updated 14 min 33 sec ago
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ICC Champions Trophy promo confirms Pakistan as host

  • The video comes days after the ICC informed Pakistan that India had declined to play in the country
  • Pakistan has said it is not interested in a hybrid hosting model adopted during last year’s Asia Cup

ISLAMABAD: The International Cricket Council’s promotional video for the Champions Trophy 2025 has portrayed Pakistan as the tournament host, with the global governing body for cricket promising a “thrilling competition” in a statement released on Wednesday.
The video comes just days after the ICC informed Pakistan that India had declined to play tournament matches in the country, prompting Pakistani authorities to rule out the hybrid hosting model adopted last year for the Asia Cup, where India played all its matches in Sri Lanka.
Political tensions between the two countries have led the Indian team to avoid traveling to Pakistan since 2008, with both sides only competing in multination tournaments, including ICC World Cups.
The ICC has not directly commented on the situation, though the promotional video clearly showed visuals communicating that the tournament will be arranged in Pakistan.
It promo displayed an unconventional logo, which the ICC said was designed to be “bold, loud, confident, and fun,” saying the visual identity was digital-first while calling it a dynamic, typographic logo.
“The two weeks of thrilling competition the event is renowned for is reflected in the bold and loud edge to the brand,” ICC Chief Commercial Officer Anurag Dahiya said in a statement. “The new elements are accompanied by the distinctive white jackets which nod to the history of the Champions Trophy and its unique, global appeal.”
The men’s Champions Trophy is set to return in 2025 after about eight years, with Pakistan clinching the title in the 2017 final against India.
The tournament was last held in England.
The Pakistan Cricket Board (PCB) has spent millions of dollars on the upgrade of stadiums in Karachi, Lahore and Rawalpindi that are due to host 15 Champions Trophy games scheduled to be held between February 19 and March 9.
 


Explosion in house kills 2 children in former stronghold of Pakistani Taliban

Updated 14 November 2024
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Explosion in house kills 2 children in former stronghold of Pakistani Taliban

  • Police investigating what caused the blast including whether someone was handling explosives to make bombs
  • Blast happened in Mir Ali where Pakistani Taliban often target security forces with suicide bombings 

PESHAWAR, Pakistan: A powerful explosion ripped through a house in a former stronghold of the Pakistani Taliban on Thursday, killing at least two children and wounding some others, police said.

Police were still investigating what caused the blast including whether someone was handling explosives to make bombs, local police chief Irfan Khan said.

The blast happened in Mir Ali, a city in the northwest province of Khyber Pakhtunkhwa, which borders Afghanistan and where Pakistani Taliban and other insurgents often target security forces with suicide bombings and other violence.

Elsewhere in the province Thursday, a suicide bomber riding a motorcycle set off an explosive device prematurely on a deserted road in Charsadda district, killing himself but harming no one else, police said.

Local police official Masood Khan said the intended target was unclear and bomb disposal experts and police were still investigating whether the man was wearing the explosives or they were attached to his motorcycle.

The Pakistani Taliban, known as Tehreek-e-Taliban Pakistan, are separate from the Afghan Taliban but have been emboldened by the group’s takeover of Afghanistan in 2021.


‘Media speculation,’ foreign office says on Beijing wanting own security staff in Pakistan

Updated 14 November 2024
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‘Media speculation,’ foreign office says on Beijing wanting own security staff in Pakistan

  • Reuters reported this week Beijing and Islamabad in talks to set up a joint security management system
  • Beijing has been angered by recent attacks on Chinese nationals, has publicly raised security concerns 

ISLAMABAD: The foreign office on Thursday rejected as “media speculation” reports by a foreign news agency that Beijing is pushing Pakistan to allow its own security staff to provide protection to thousands of Chinese citizens working in the South Asian nation.

Reuters, citing five Pakistani security and government sources speaking on condition of anonymity, reported this week that a string of recent attacks on Chinese nationals had angered Beijing and pushed Pakistan to begin formal negotiations for a joint security management system. 

Last month’s airport bombing in the southern port city that killed two Chinese engineers returning to work on a project after a holiday in Thailand was the latest attack on Beijing’s interests in Pakistan.

“Let’s not get carried away with speculation,” Foreign Office Spokesperson Mumtaz Zahra Baloch said at a weekly news briefing in Islamabad when questioned about the Reuters report. 

“I would not like to respond to media speculations that are based on unreliable sources and motivated by an agenda to create confusion about the nature of Pakistan-China relationship.”

She added that Pakistan had raised a security force to protect Chinese nationals and projects, particularly those operating under the China-Pakistan Economic Corridor (CPEC) umbrella, and “this security apparatus continues to provide security to Chinese CPEC projects inside Pakistan.”

Longtime Pakistan ally China has thousands of nationals working on projects grouped under the CPEC, a $65-billion investment in President Xi Jinping’s Belt and Road Initiative, which seeks to expand China’s global reach by road, rail and sea.

The Reuters report said there was now a consensus on setting up a joint security management system, and that Pakistan was amenable to Chinese officials sitting in on security meetings and coordination but there was no agreement as yet on their participating in security arrangements on the ground.

One official said Pakistan had asked China for help in improving its intelligence and surveillance capabilities instead of direct involvement.

“We advise the media to ascertain the motivation of individuals who are feeding them this story,” Baloch said. 

“Pakistan and China have a robust dialogue and cooperation on a range of issues including counterterrorism and security of Chinese nationals in Pakistan … We will continue to work with our Chinese brothers for the safety and security of Chinese nationals, projects and institutions in Pakistan.”

Baloch said as close allies, Pakistan and China had the resolve and capability to foil “any attempts to harm Pakistan-China relations, including by spreading stories about the nature of this relationship.”