ISLAMABAD: The International Monetary Fund (IMF) has suggested Pakistan to digitalize its budget preparation and execution processes to improve fiscal monitoring and reporting to overcome deviations from the planned budgets.
In a technical assistance report to improve budget practice brought out this week, the international lender said Pakistan needed to take strong control over the budget in the coming years.
The report came as an IMF delegation led by Pakistan mission chief, Nathan Porter, completed a five-day trip to the country in which it discussed 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.
“An examination of Pakistan’s recent budgetary outcomes reveals substantial deviations from planned budgets,” the lender said in the report. “While these discrepancies are partially due to an unstable external environment and political uncertainties, the establishment of stronger fiscal institutions can help deliver a more credible budget, tighten its execution, and prevent policy slippages.”
The IMF pointed out that despite several reforms, the budget processes still involved significant manual and paper-based steps.
“Fully digitalized processes are yet to be prepared and implemented in the Financial Accounting and Budgeting System,” it said in the report. “The Finance Division has designed a data warehouse to store fiscal data and made available a set of dashboards for use by stakeholders, but this is hampered by the lack of timely data provided by some key entities. As a result, fiscal reporting is not yet comprehensive and timely.”
It added that regulatory framework and fiscal data governance practices, including data exchange, did not fully address these challenges.
The IMF also noted Pakistan’s public debt had increased considerably, and interest payments were now absorbing 60 percent of budgeted revenue.
However, it recognized that multiple external shocks and the unprecedented floods in 2022 buffeted the economy and the government’s fiscal position.
“These shocks have been compounded by policy slippages including unbudgeted subsidies, and delays in implementing revenue measures,” it continued, adding the authorities now had the difficult task of converting a primary deficit of 1.3 percent of GDP for FY23 into a primary surplus for FY24. It also emphasized continued fiscal restraint, while preserving essential social and development spending.
The international lender suggested the finance division to require line ministries to prepare their budget submissions within a binding budget ceiling and explain any request for additional resources.
“Consider a reorganization of the Finance Division to reduce fragmentation and improve effective decision-making,” the reported suggested. “Support the reorganization with a functional review of the Division’s structure and staffing.”
IMF urges Pakistan to digitalize budget preparation for better fiscal monitoring
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IMF urges Pakistan to digitalize budget preparation for better fiscal monitoring
- The international lender says budget processes still involve manual and paper-based steps despite reforms
- IMF has pointed out Pakistan’s interest payments absorb 60 percent of budgeted revenue due to public debt
Pakistan signs statute to strengthen labor, social protection collaboration among OIC members
- Pakistan signed statute during 51st session of OIC’s Council of Foreign Ministers meeting in Istanbul, says deputy PM
- Many Pakistanis seek employment opportunities abroad, especially in Gulf countries, for better standard of living
ISLAMABAD: Deputy Prime Minister Ishaq Dar recently announced Islamabad had signed the Statute of the Labour Center of the Organization of Islamic Cooperation (OIC) to strengthen collaboration among member states on labor, social protection and human development capital.
The OIC Labour Center is a strategic institution aimed at enhancing labor conditions, promoting employment opportunities and fostering social protection systems across member states. It emphasizes the crucial need to ensure decent work, sustainable social protection and poverty reduction within OIC member states, in alignment with the objectives of the organization’s charter.
In a post on social media platform X on Sunday, Dar announced he had signed the statute at the OIC’s 51st session of the Council of Foreign Ministers in Istanbul from June 21-22.
“This statute is an important step toward strengthening collaboration among OIC Member States on labor, employment, social protection, and human capital development,” the deputy prime minister wrote.
A significant number of Pakistanis seek employment opportunities abroad for a better standard of living as the country grapples with macroeconomic challenges. Saudi Arabia, the United Arab Emirates (UAE) and other Gulf countries are key destinations for Pakistan’s skilled and unskilled workers, whose remittances are vital for the cash-strapped country.
Pakistan’s state media reported in April that the country sent 151,120 skilled laborers to Gulf countries in the first three months of 2025. Senior Pakistani officials have repeatedly spoken of the need to bridge the skills gap and enhance global competitiveness of Pakistani workers, particularly in the Middle Eastern job market.
Pakistan sends approximately one million skilled workers abroad each year to help reduce unemployment and boost foreign exchange reserves through remittances.
High-level Saudi delegation in Pakistan to strengthen parliamentary ties
- Pakistan and Saudi Arabia enjoy strong trade, defense and cultural relations
- The Saudi delegation will meet top Pakistani parliamentarians during the visit
ISLAMABAD: A high-level parliamentary delegation of the Saudi Shoura Council arrived in Pakistan to strengthen parliamentary ties between the two countries, the National Assembly of Pakistan said on Sunday.
The delegation, led by the Head of the Saudi-Pak Parliamentary Friendship Committee Dr. Abdulrahman bin Sanhat bin Abdullah Al-Harbi, is visiting Pakistan on the invitation of Pakistan’s National Assembly Speaker Ayaz Sadiq.
It comprises members of the Saudi Shoura Council and the Saudi-Pak Parliamentary Friendship Committee, Dr. Iman bint Abdulaziz Al-Jabreen and Engineer Salem bin Ali Al-Shahrani.
The delegates held a meeting with NA Speaker Sadiq in Islamabad, during which both sides agreed to promote parliamentary exchanges, according to a statement on the National Assembly of Pakistan’s Facebook page.
“The Pak-Saudi Friendship Group established in the National Assembly is playing an important role in promoting harmony between the parliaments of the two countries,” NA Speaker Sadiq was quoted as saying.
“Exchanges of parliamentary delegations will give the parliamentarians of both countries an opportunity to benefit from each other’s experiences.”
Dr. Abdulrahman said Saudi Arabia attaches great importance to its relations with Pakistan, according to the Pakistani National Assembly statement.
“During the meeting, discussions were held on the unity of the Muslim world, and joint role for peace and development in the region,” it read.
Pakistan and Saudi Arabia enjoy strong trade, defense and brotherly relations. The Kingdom is home to over 2 million Pakistani expatriates, serving as the top destination for remittances for the cash-strapped South Asian country.
Saudi Arabia has also extended significant support to Pakistan during prolonged economic challenges faced by Islamabad in recent years, including external financing and assistance with International Monetary Fund (IMF) loan programs.
Pakistan’s new electric vehicle policy targets 30% green cars by 2030
- The policy aims to cut Pakistan’s reliance on imported fuel, shielding the economy from global oil price fluctuations
- Electric vehicles are also expected to offer long-term savings for consumers through reduced fuel and maintenance costs
ISLAMABAD: Pakistan has unveiled an ambitious New Electric Vehicle Policy (NEVP) 2025–2030 that targets 30% of all new vehicle sales to be electric by 2030, Pakistani state media reported on Sunday.
The policy, which covers cars, buses, motorcycles and rickshaws, aims to accelerate the country’s shift toward sustainable transport, reduce fossil fuel dependence, and curb climate-warming emissions, the state-run APP news agency reported.
Pakistan imports most of its energy needs and the country’s urban areas exhibit some of the world’s highest levels of air pollution, primarily due to sub-2.5 μm particulate emissions. This issue significantly impairs both the country’s economy and the quality of life of its residents.
“Transitioning to electric vehicles (EVs) is critical for a healthier, greener and economically stable future,” Muhammad Saleem Shaikh, a spokesperson for the Climate Change Ministry, told APP, contending that transport sector was a major contributor to air pollution and greenhouse gas emissions in Pakistan.
With the NEVP now in effect, Pakistan, which has seen erratic changes in its weather patterns which experts blame on climate change, joins a growing list of nations pushing for zero-emission mobility to combat climate change and urban pollution.
Mohammad Asif Sahibzada, director-general of the Climate Change Ministry, highlighted that EVs produce zero tailpipe emissions, which will significantly reduce urban smog and help Pakistan meet its international commitments.
“This shift will also lower respiratory and cardiovascular diseases, particularly benefiting children and the elderly,” he added.
The policy aims to cut Pakistan’s reliance on imported fossil fuels, shielding the economy from global oil price fluctuations. EVs are also expected to offer long-term savings for consumers through reduced fuel and maintenance costs.
The government plans to incentivize EV adoption through tax breaks, subsidies, and infrastructure development, including nationwide charging stations.
“Electric vehicles are not just about transport; they are central to Pakistan’s climate action strategy,” Muhammad Azeem Khoso, the ministry’s director for urban affairs, was quoted as saying by the APP.
“This policy marks a decisive step toward a cleaner, more resilient future.”
Pakistan, China and Russia to push for ceasefire as UN Security Council meets on Iran
- The three countries have circulated a draft resolution text and asked UNSC members to share comments by Monday
- A resolution needs at least nine votes in favor and no vetoes by the US, France, Britain, Russia or China for it to pass
ISLAMABAD: Pakistan, China and Russia will present a joint resolution calling for an immediate and unconditional ceasefire in the Middle East, the Pakistani mission to the United Nations (UN) said on Sunday, ahead of a UN Security Council meeting to discuss US airstrikes on Iranian nuclear sites.
It was not immediately clear when it could be put to a vote. The three countries circulated the draft text, and asked members to share their comments by Monday evening. A resolution needs at least nine votes in favor and no vetoes by the United States, France, Britain, Russia or China to pass.
The US is likely to oppose the draft resolution, which condemns the attacks against “peaceful nuclear sites and facilities under the IAEA (International Atomic Energy Agency) safeguards in the Islamic Republic of Iran” and says that such attacks represent a threat to international peace and security, and to the entire safeguards regime of the IAEA, according to a draft seen by Arab News.
It calls for an immediate and unconditional ceasefire and a diplomatic solution to the nuclear issue to reach an agreement acceptable to all parties that “guarantees the exclusively peaceful nature of the Islamic Republic of Iran’s nuclear program in exchange for complete lifting of all multilateral and unilateral sanctions.”
“Pakistan, China and Russia jointly have drafted a resolution and it is hoped that other countries like Algeria may also become its approvers,” Pakistan’s UN mission said.
“So far, it has been shared with the members countries for comments, which is a procedure before tabling it in the UNSC.”
The member countries will comment on the draft resolution and then a final draft will be tabled in the Security Council.
The world awaited Iran’s response on Sunday after President Donald Trump said the US had “obliterated” Tehran’s key nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.
Iran requested the UN Security Council meeting, calling on the 15-member body “to address this blatant and unlawful act of aggression, to condemn it in the strongest possible terms.”
Israel’s UN Ambassador Danny Danon said in a statement on Sunday that the US and Israel “do not deserve any condemnation, but rather an expression of appreciation and gratitude for making the world a safer place.”
UN Secretary-General Guterres branded the US strikes on Iran as a “dangerous escalation in a region already on the edge – and a direct threat to international peace and security.”
“At this perilous hour, it is critical to avoid a spiral of chaos. There is no military solution. The only path forward is diplomacy. The only hope is peace,” Guterres said in a statement.
Pakistan urges OIC to transform its pronouncements on Kashmir into ‘tangible actions’
- Kashmir has been divided between Pakistan and India since their independence from Britain in 1947
- Both countries claim the territory in full and have fought two of their four wars over the disputed region
ISLAMABAD: Pakistan’s deputy prime minister has urged the Organization of Islamic Cooperation (OIC) to transform its pronouncements on the disputed Kashmir region into “tangible actions,” the Pakistani foreign office said on Sunday, following a meeting of the OIC Contact Group on Jammu and Kashmir.
The meeting took place on the sidelines of the 51st session of the OIC Council of Foreign Ministers in Istanbul, which came in the backdrop of Israeli military campaign against Iran and Pakistan’s recent military conflict with India.
While Pakistan’s brief standoff with India ended in a ceasefire last month, Israel’s attacks on Iran were followed by US airstrikes on three Iranian nuclear facilities, raising fears of further instability in an already volatile region.
Addressing envoys of OIC member states, Pakistan’s deputy premier and foreign minister, Ishaq Dar, described New Delhi’s actions in Indian-administered Kashmir as a replication of the Israeli designs in Palestine, referring to alleged human rights violations and attempts to change demographics of the disputed Himalayan territory.
“The OIC’s pronouncements on Jammu and Kashmir are a major source of support to the Kashmir cause,” Dar said. “However, in view of the mounting challenges to the Kashmiri struggle, the OIC should transform its pronouncements into tangible actions. The Organization should scale up its efforts for mitigation of the Kashmiri people’s sufferings and finding a just settlement of the Jammu and Kashmir dispute.”
Kashmir has been divided between Pakistan and India since their independence from Britain in 1947. Both countries have fought two of their four wars over the disputed region, which is ruled in part but claimed in its entirety by both India and Pakistan.
The latest conflict between the two neighbors was also triggered by a militant attack in Indian-administered Kashmir’s Pahalgam resort town, which killed 26 tourists on April 22. India blamed the attack on Pakistan, a charge Islamabad denies.
New Delhi has long accused Pakistan of fanning an insurgency on its side of Kashmir. Islamabad denies this and maintains that it only offers moral, political and diplomatic support to the Kashmiris.
Dar said Indian authorities exploited the Pahalgam attack to launch a massive crackdown in Kashmir.
“There are reports that over 2800 Kashmiris were arrested or questioned in the immediate aftermath of the attack,” he said. “The draconian Public Safety Act was slapped on at least 75 of them. The police carried out extensive searches at multiple residences of the locals. Around three dozen houses were razed to ground through the use of explosives.”
The Pakistani deputy PM said the disturbing developments in Indian-administered Kashmir have once again shown that a peaceful settlement of the Kashmir dispute is imperative for a lasting peace in South Asia.
“The region is home to over one-fifth of the world population. It could ill-afford the consequences of irresponsible Indian actions,” he said, urging the OIC and its members to use their influence to urge India to improve the human rights situation, release political prisoners and implement relevant United Nations Security Council resolutions in Indian-administered Kashmir.
