KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday acknowledged Saudi Arabia’s critical role in helping secure the country’s International Monetary Fund (IMF) loan package and invited his counterpart from the Kingdom to visit Pakistan, during a series of high-level bilateral meetings held on the sidelines of the IMF-World Bank Spring Meetings in Washington, DC.
The IMF approved a $7 billion Extended Fund Facility (EFF) for Pakistan in September 2024 after Saudi Arabia, the United Arab Emirates and China provided essential financing assurances to unlock the package.
The deal was widely seen as vital to stabilizing Pakistan’s economy amid declining foreign reserves and mounting fiscal stress.
The Pakistani finance chief acknowledged the Kingdom’s role in a meeting with his Saudi counterpart, Mohammed Aljadaan, during his trip to the United States.
“Senator Aurangzeb thanked H.E. Aljadaan for Saudi Arabia’s longstanding and strong support to Pakistan in its pursuit of economic development, including through support for the IMF program, and invited him to visit Pakistan,” the finance ministry said in a statement circulated after the meeting.
Aurangzeb reaffirmed Pakistan’s commitment to economic reforms and welcomed Saudi investments. The meeting followed Aurangzeb’s engagement a day earlier with Sultan bin Abdulrahman Al-Murshid, the top Saudi Fund for Development (SFD) official, where he sought faster disbursements under the $1.2 billion Saudi Oil Facility, an arrangement that allows Pakistan to defer payments on oil imports.
He also requested SFD’s support for the National Highway N-25 and reviewed the pace of implementation of ongoing projects.
In addition to his meeting with the Saudi counterpart, the Pakistani finance chief held separate sessions with senior UAE and Chinese officials.
During a meeting with UAE Minister of State for Financial Affairs Mohamed Bin Hadi Al Hussaini, Aurangzeb discussed his country’s improving economic indicators, including a recent credit rating upgrade by Fitch, and briefed him on the government’s privatization program.
He informed the UAE side that a Staff-Level Agreement (SLA) had been reached with the IMF under the EFF and a new arrangement under the Resilience and Sustainability Facility.
The finance minister also expressed interest in the UAE’s regulatory experience in cryptocurrency and invited his counterpart to visit Pakistan.
In another bilateral engagement, Aurangzeb met with Chinese Finance Minister Lan Fo’an to discuss Beijing’s continued economic support.
He sought support from the People’s Bank of China to fast-track the issuance of Pakistan’s Panda Bond, a renminbi-denominated bond issued in China’s capital markets.
Pakistan’s finance chief acknowledges Saudi role in IMF deal, invites counterpart to visit
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Pakistan’s finance chief acknowledges Saudi role in IMF deal, invites counterpart to visit
- Saudi Arabia, UAE and China provided financing assurances needed to unlock the $7 billion IMF loan
- Aurangzeb also discusses Panda bonds, cryptocurrency regulation with Chinese and UAE ministers
IMF may disburse first tranche of climate loan to Pakistan in ‘about six months’
- Lender to approve first climate loan payment with the second review of Pakistan’s External Fund Facility program, says source
- Pakistan’s finance adviser says loan, linked to implementation of key performance indicators, to be released over next 28 months
KARACHI: The International Monetary Fund (IMF) is likely to release the first tranche of its $1.4 billion climate resilience loan for Pakistan “in about six months,” a source with direct knowledge of the development told Arab News on Thursday.
The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion External Fund Facility program, freeing about $1 billion in cash.
The Washington-based lender is expected to start the Resilience and Sustainability Facility (RSF) funding for Pakistan along with its second review of Islamabad’s EFF program, the source disclosed on condition of anonymity as they are not authorized to speak to media on the matter.
“With the second review of the EFF, if the [IMF] board approves then they [Pakistan] might get the first tranche of the RSF, ” the source said, adding that the next EFF review is expected to take place “in about six months.”
“For climate financing, nothing will be disbursed now,” they added.
Pakistan’s finance adviser Khurram Schehzad said the climate loan is not a “one-off payment.”
“The RSF fund will be released gradually over the next 28 months, which is linked to the implementation of 13 KPIs (key performance indicators),” the official told Arab News.
He did not elaborate how much the global lender would release as part of the first tranche.
The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters. The South Asian country has been consistently ranked as one of the worst affected countries due to climate change effects.
In 2022, Pakistan was devastated by flash floods triggered by unusually heavy rains and the melting of glaciers. The catastrophe killed 1,700 people, displaced more than 30 million others and damaged crops and infrastructure worth $30 billion.
That forced Pakistan last year to request the IMF for the RSF fund to address its vulnerability to climate change.
The IMF on May 9 approved the much-awaited climate loan for Pakistan and disbursed the $1.02 billion as its first tranche under the EFF program on May 13.
The Washington-based lender is scheduled to hold its second EFF review of Pakistan’s economic performance on Sept. 15, Sana Tawfik, the head of research at Arif Habib Ltd., said, citing the IMF’s Pakistan Country Report 2024.
When asked if the next IMF review will be delayed, the source replied in the negative.
The RSF funds are crucial for Pakistan as its dwindling foreign exchange reserves rose to $10.3 billion last week. This amount does not meet the IMF’s three-month import cover threshold requirement.
In its monetary policy statement on May 5, Pakistan’s central bank said delays in the realization of official inflows coupled with “large debt repayments” weakened net financial inflows into the country till March.
Pakistan, which narrowly averted a sovereign default in 2023 after a last-gasp IMF bailout package, owed about $26 billion debt repayments this year ending June. While most of its foreign debt has been repaid, the country still relies heavily on the IMF’s funds to keep its balance of payment position in check.
The central bank expects the country’s foreign reserves to increase to $14 billion by June “on the back of the expected realization of planned official inflows.”
“This build-up in FX reserves to continue in FY26, based on a moderate current account deficit and improved financial inflows,” the SBP said in its statement.
Pakistan Air Force shot down six Indian fighter jets, says PM Sharif
- Pakistan PM visits air force base in eastern Kamra town with army chief, senior members of the cabinet
- Pakistan and India engaged in combat for four days last week beafore agreeing to ceasefire on Saturday
ISLAMABAD: Prime Minister Shehbaz Sharif paid rich tributes to the Pakistan Air Force (PAF) on Thursday, crediting them for shooting down six Indian fighter jets during the military conflict between the nuclear-armed neighbors last week.
Pakistan’s government and the PAF recently hailed the use of the J-10Cs, saying they were used to shoot down five Indian fighter jets, including three French Rafales, during hostilities between the two sides on the night of May 6. Four days of fighting between India and Pakistan saw them pound each other with missiles, drones and artillery until the United States brokered a ceasefire on Saturday.
The Indian Air Force (IAF) has so far not commented on the reports that Pakistan downed five of its fighter jets, but its chief said admitted this week during a news conference that “losses are a part of combat.”
Sharif paid a visit to the PAF’s operational air base in Kamra, a town located in Pakistan’s eastern Attock district. Accompanied by Army Chief General Syed Asim Munir and senior members of the cabinet, including Foreign Minister Ishaq Dar, Sharif lauded Pakistani pilots for successfully defending the country when India fired missiles into Pakistani territories last Wednesday night.
“Just now we were given an excellent presentation and in that, the actual situation [of the conflict] surfaced,” Sharif told PAF personnel at the air base. “Based on the presentation I can tell the nation today without fear of contradiction that not five but these falcons, you, shot down six enemy jets.”
In a separate statement, the military’s media wing said the sixth Indian aircraft downed by the PAF was a Mirage-2000 fighter jet. It said the jet was shot down near Pampore, east of Srinagar in Indian-administered Kashmir.
Sharif paid trich tribute to the PAF, saying that it had proven to be superior in combat to the IAF based on its homegrown technical expertise.
“The entire nation takes immense pride in the valor and vigilance of its armed forces,” Sharif said. “Under the capable stewardship of the chief of army staff, our defenders have once again underscored that Pakistan’s security is inviolable and any act of belligerence will be met with a forceful, resolute and unforgiving response.”
Sharif warned India that Pakistan’s armed forces were ready to respond to any future acts of aggression.
“Pakistan’s armed forces remain fully prepared and resolutely committed to defending every inch of our territory,” he said. “We stand united, vigilant, and unshakable for the defense of our homeland.”
Dar earlier on Thursday informed lawmakers in parliament that the ceasefire agreement between Islamabad and Delhi has been extended till Sunday.
“For now, these are military-to-military communications, so obviously, then political dialogue will take place,” he said. “The resolution of all issues lies there.”
India and Pakistan, both bitter rivals who possess nuclear weapons, have fought three wars since 1947 after gaining independence from British colonial India. The root cause of their conflict is the disputed Himalayan Kashmir region, which they both claim in full but administer only parts of.
Pakistan offers lowest-cost Hajj package under government scheme globally, says official
- Nearly 89,000 Pakistani pilgrims are expected to perform Hajj under government scheme this year
- Pakistan has set cost of long Hajj package at Rs1,075,000 ($3,854), Rs1,150,000 ($4,122) for short one
ISLAMABAD: Pakistan’s Director General Hajj Abdul Wahab Soomro said on Thursday that Islamabad is offering its citizens the lowest-cost Hajj package globally, vowing that authorities have aimed to prioritize pilgrims’ comfort, safety and spiritual fulfillment for this year’s pilgrimage.
Pakistan this year introduced a shortened Hajj program of 20 to 25 days to make the pilgrimage more convenient and accessible, the Ministry of Religious Affairs said earlier this year. It set the cost at around Rs1,075,000 ($3,854) for the long Hajj package and Rs1,150,000 ($4,122) for the short Hajj package, as shorter stays often incur higher airfare, premium accommodation rates, and expedited transport services, which drive up overall costs.
In a statement issued from Makkah, Soomro said the government’s Hajj Scheme for 88,380 pilgrims is being elevated to “unprecedented heights” to ensure a seamless and spiritually enriching pilgrimage, state broadcaster Radio Pakistan reported.
“Highlighting the key initiatives, he [Soomro] said our scheme offers the lowest-cost Hajj package globally,” Radio Pakistan said. “Pilgrims are now given the option to choose between single, double, or triple-bed rooms at an additional cost.”
The official said that due to the non-uniform nature of Makkah’s buildings, accommodations are allocated to Pakistani pilgrims based on pilgrim profiling to ensure optimal convenience.
He said Pakistan’s health care network, in collaboration with the Saudi German Hospital and other leading medical institutions, ensures 24/7 emergency care.
“The DG Hajj said such innovative measures and enhancements demonstrate a strong commitment to facilitating Hajj with maximum convenience at minimal cost,” the statement added.
This year’s Hajj will take place in June, with over 23,620 Pakistanis expected to perform the pilgrimage through private tour operators.
Pakistan seeks greater collaboration with US in blockchain, artificial intelligence
- Pakistan Crypto Council CEO Bilal bin Saqib meets Acting US Ambassador Natalie Baker in Islamabad, says finance ministry
- Pakistan says it plans to initiate joint programs, talent exchanges and MoUs between American companies and its startups
ISLAMABAD: Pakistan’s Crypto Council (PCC) CEO Bilal bin Saqib met Acting US Ambassador Natalie Baker on Thursday to seek deeper collaboration with Washington in blockchain and artificial intelligence (AI), the finance ministry said.
Pakistan has increasingly sought to formalize its crypto economy amid rising interest in blockchain technologies worldwide. The country is already among the world’s fastest-growing crypto markets, ranking near the top in global adoption rates, with an estimated $300 billion in annual crypto transactions and around 25 million active users.
As part of these efforts, the PCC last month partnered with World Liberty Financial (WLF), a decentralized finance platform backed by US President Donald Trump, to advance blockchain innovation, stablecoin adoption and decentralized finance (DeFi) integration across Pakistan.
“Pakistan Crypto Council CEO meets US ambassador to advance youth collaboration in blockchain & AI,” the finance ministry’s statement said.
It added that Saqib met Baker to discuss creating bridges between US institutions and Pakistan’s entrepreneurial ecosystem. The PCC emphasized Pakistan’s commitment to becoming a globally competitive innovation hub, with blockchain and AI at the core of its future economy, the council said.
“Pakistan is home to one of the world’s youngest populations — eager, ambitious, and ready to lead the future of Web3 and AI,” Saqib said. “This is the time to invest in them, to connect them with global leaders, and to create real pipelines of opportunity between the US and Pakistan.”
The ministry said that Pakistan plans to initiate joint programs, talent exchange and strategic memoranda of understanding between American tech companies and Pakistani startups to build long-term partnerships that benefit both nations.
“The Pakistan Crypto Council remains committed to using blockchain as a tool of diplomacy, education, and empowerment — ensuring that Pakistan’s youth are not left behind but stand at the forefront of the global digital revolution,” the statement concluded.
Pakistan’s proactive stance to formalize its crypto economy follows its broader push to position itself as a hub for digital finance innovation, with 64 percent of its population under the age of 30.
Rising mobile broadband access, a booming freelance economy and increasing government interest in blockchain have accelerated the country’s Web3 adoption.
Pakistanis constituted largest group of UK asylum seekers in 2024
- Number of asylum seekers in UK has tripled in recent years, with 84,200 applications in 2024
- In previous years, asylum seekers came to the UK mainly from Syria and Iran, official data says
LONDON: The number of asylum seekers has risen sharply in recent years in the United Kingdom, with tens of thousands of applications still waiting to be decided, according to official figures.
Labour Prime Minister Keir Starmer announced Thursday that he had begun formal talks with unspecified countries to create “return centers” outside the UK for those who have exhausted all legal avenues to remain in the country.
The number of asylum seekers in the UK has tripled in recent years, with 84,200 applications in 2024, compared with an average of 27,500 between 2011 and 2020, according to official figures.
In 2022, there were approximately 13 asylum applications per 10,000 people in the UK, compared with 25 asylum applications per 10,000 people in the EU at the same time.
Some 11 percent of migrants in the UK were asylum seekers or refugees in 2023 — almost twice as high as the 2019 figure of six percent.
The proportion of initial asylum applications rejected in 2024 was 53 percent, compared with 88 percent in 2004 and 24 percent in 2022.
Between 2004 and 2021, approximately three-quarters of applicants whose initial request was rejected appealed the decision, with a third being succesful.
More than 9,000 failed asylum seekers were deported in 2024 — 36 percent more than in 2023.
Some 224,700 cases were a “work in progress” in 2024, with 87,200 awaiting an initial decision and 137,500 awaiting follow-up after an initial refusal, according to official documents.
This total has been declining since 2022 but remains four times higher than in 2014 due to longer waiting times for an initial decision and a larger number of people facing deportation.
The number of people crossing the Channel in makeshift boats, a route that virtually did not exist before 2018, has increased sharply in recent years.
Between 2018 and December 2024, 148,000 migrants risked their lives and reached UK shores by this route, according to official figures.
Of those, 95 percent applied for asylum, representing 29 percent of all asylum seekers over that period.
Nearly 13,000 migrants have already crossed the Channel in 2025, more than in the same period in 2024.
In 2024, the largest group of asylum seekers hailed from Pakistan, followed by Afghanistan. In previous years, they came mainly from Syria and Iran.
