World Bank, IMF chiefs acknowledge Pakistan reforms after $7 billion bailout approval 

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Updated 26 September 2024
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World Bank, IMF chiefs acknowledge Pakistan reforms after $7 billion bailout approval 

World Bank, IMF chiefs acknowledge Pakistan reforms after $7 billion bailout approval 
  • Pakistani PM holds separate bilateral meetings with World Bank President Ajay Banga, IMF MD Kristalina Georgieva
  • IMF has approved loan program after Pakistan committed to strengthen macroeconomic stability, structural reforms

ISLAMABAD: World Bank President Ajay Banga and IMF Managing Director Kristalina Georgieva on Thursday separately acknowledged steps taken by Pakistan to strengthen macroeconomic stability and address structural challenges, hours after the International Monetary Fund’s executive board approved a long-awaited $7 billion bailout deal for the struggling economy.

The IMF approved the 37-month Extended Fund Facility (EFF) late on Wednesday after commitments from Pakistan that it would strengthen fiscal and monetary policy and implement reforms to broaden the tax base, secure a level playing field for investment and enhance human capital. 

The bailout deal was reached in July. 

“Your prime minister laid out a very clear set of ideas of what he wants to prioritize. He used the words that he wants to prioritize things that help his people,” Banga told reporters after meeting with Prime Minister Shehbaz Sharif. 

“Already in these six months, you [Pakistan] are already making a whole series of steps on macro stability and reforms. I think that is something I appreciate.”

In a separate bilateral meeting with Banga on the sidelines of the UN General Assembly, Sharif appreciated the World Bank’s continuous support to the government of Pakistan in introducing critical economic reforms and addressing economic challenges, including poverty reduction and infrastructure development.

“The Prime Minister apprised the president of the government’s steps, involving policy, administrative and organizational reforms, to realize the full potential of the economy and to promote inclusive and sustainable economic growth,” a statement from Sharif’s office said after the meeting.

“He added that the government has also implemented reforms, particularly in Energy, Finance and Revenue sectors and Pakistan looks forward enhanced support from World Bank for government’s revitalized economic reforms agenda.”

After the bailout approval, PM Sharif also thanked the IMF managing director, Kristalina Georgieva, and said the country would continue to implement the tough economic reform agenda.

Georgieva also congratulated Pakistan for moving forward with “home-defined” reforms.

“The economy is on the sound path,” she told reporters after the board meeting. “Growth is up and inflation is down.”

Sharif also held a bilateral meeting with Georgieva on Thursday and appreciated the collaboration with the IMF on the Extended Fund Facility.

“Prime Minister highlighted the government’s commitment to implementing structural reforms and promoting private sector development,” a statement from Sharif’s office said after he met the IMF MD. 

“The Prime Minister also expressed appreciation for the IMF’s technical assistance and capacity-building programs, which have helped to strengthen the country’s institutions and improve its economic management.”

 “SOUND POLICIES AND REFORMS”

The IMF has said the new program would require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”

An immediate disbursement of about $1 billion will take place, an IMF statement said.

Pakistan’s stock benchmark index rose in early trade to a record high of 82,905.73 points, before reversing those gains later in the day to close 0.7 percent down at 81,657.

Islamabad had been working on implementing conditions, which Sharif had previously called “strict,” including getting additional external financing, which the country was struggling to do.

The IMF said in its statement that Pakistan had taken key steps to restore economic stability with consistent policy implementation under the 2023-24 standby arrangement.

It added that growth had rebounded to 2.4 percent and inflation has receded significantly, falling to single digits, amid appropriately tight fiscal and monetary policies.

A contained current account and calm foreign exchange market conditions have allowed the rebuilding of reserve buffers, and the central bank of Pakistan has been able to cut the policy rate by a total of 450 bps since June, the statement said.

Despite this progress, it said, Pakistan’s vulnerabilities and structural challenges remain formidable, adding that the tax base remained too narrow.

“Without a concerted adjustment and reform effort, Pakistan risks falling further behind its peers,” it warned.

The South Asian country is the IMF’s fifth-largest debtor, owing the Fund $6.28 billion as of July 11, according to the lender’s data.

Pakistan has been struggling with boom-and-bust economic cycles for decades, leading to more than 20 IMF bailouts since 1958.

Speaking to reporters on the UNGA sidelines, Pakistan Finance Minister Muhammad Aurangzeb vowed to make this the country’s last IMF program.

“So we will have to undertake structural reforms,” he said. 
With inputs from Reuters


Pakistan heightens security measures in Karachi, Lahore and Rawalpindi ahead of Champions Trophy 

Pakistan heightens security measures in Karachi, Lahore and Rawalpindi ahead of Champions Trophy 
Updated 1 min 14 sec ago
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Pakistan heightens security measures in Karachi, Lahore and Rawalpindi ahead of Champions Trophy 

Pakistan heightens security measures in Karachi, Lahore and Rawalpindi ahead of Champions Trophy 
  • Pakistan will host eight-nation Champions Trophy cricket tournament from Feb. 19-Mar. 9 
  • Police in Lahore, Karachi and twin cities have deployed over 20,000 troops for security 

ISLAMABAD: Pakistani authorities have started implementing sweeping security measures in the southern port city of Karachi and Punjab’s Lahore and Rawalpindi ahead of the Champions Trophy tournament, the first multi-country cricket event in nearly 30 years to take place in the country. 

The South Asian nation hopes to erase worries of instability in the country and restore confidence in it as a tourism and investment destination despite its security challenges. Pakistan has suffered a surge in militant attacks in its western provinces bordering Afghanistan since November 2022 after a fragile truce between militants and the state broke down. 

A near fatal militant attack on the Sri Lankan cricket team in 2009 in Lahore scared away international teams from touring Pakistan for several years. For the Champions Trophy, police in Lahore, Karachi and the twin cities of Rawalpindi and Islamabad have deployed over 20,000 troops, including snipers on rooftops along key routes. Hotels where players will stay, stadiums and airports will be heavily guarded as will the roads connecting these locations.

“My team and all the members of all the relevant forces are engaged in this, and from the police side 5000 plus police officers will be deployed,” Maqsood Ahmed, the deputy inspector general of security in Karachi, told Reuters. “They will be doing the traffic duties, the rout protection, the venue protection, the crowd management and other duties along with the intelligence gathering and the operations before the event.”

Pakistan's para-military soldiers stand guard at the National Stadium in Karachi on February 17, 2025. (AFP)

Karachi police said they have set up an additional SWAT unit to respond to emergencies and conducted preventive intelligence operations to identify potential threats. Ahmed said other law enforcement agencies such as Rangers and the Pakistan Army will cover emergency situations as a secondary reaction force.

Meanwhile, Punjab Police have updated surveillance systems and installed around 10,000 AI-powered facial recognition cameras and additional CCTV cameras across the two cities.

Mohammad Taha, a Karachi resident, pointed out that in the past, authorities would not only block the main thoroughfare but all streets surrounding the National Stadium in the city when international cricket newly returned to Pakistan.

“Now the situation is different,” he told Reuters. “Yes, the main thoroughfare Shahrah-e-Faisal will be closed but the traffic will keep flowing on other roads and flyovers surrounding the stadium.”

Pakistan's police commandos stand guard outside the National Stadium in Karachi on February 17, 2025. (AFP)

Mohammad Munaf, another Karachi resident, agreed. 

“This time the planning seems to be good that the matches are going on and there is no hindrance in traffic flow,” Munaf told Reuters. “The security is also very good. We can easily go to watch matches. We can go toward stadium or anywhere near it anytime. So, we don’t face these issues.”
 


Pakistan pacer Haris Rauf says ‘personally satisfied’ with fitness ahead of Champions Trophy

Pakistan pacer Haris Rauf says ‘personally satisfied’ with fitness ahead of Champions Trophy
Updated 52 min 31 sec ago
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Pakistan pacer Haris Rauf says ‘personally satisfied’ with fitness ahead of Champions Trophy

Pakistan pacer Haris Rauf says ‘personally satisfied’ with fitness ahead of Champions Trophy
  • Rauf sustained muscular sprain in lower chest this month during first match of tri-nation series against New Zealand 
  • Hosts and defending champions Pakistan take on New Zealand in Champions Trophy 2025 opener on Feb. 19 in Karachi

ISLAMABAD: Pakistan’s fiery right-arm pacer Haris Rauf put injury fears to rest this week by saying he felt comfortable bowling during practice and was “personally satisfied” with his fitness ahead of the Champions Trophy opener. 

Rauf sustained a muscular sprain in his lower chest during Pakistan’s match against New Zealand earlier this month, triggering fears the bowler would be ruled out of the tournament. Along with pacers Naseem Shah and Shaheen Shah Afridi, Rauf is an essential part of the South Asian country’s pace attack.

Pakistan will face New Zealand in the first match of the ICC Champions Trophy tournament on Wednesday, Feb. 19, in the southern port city of Karachi. Two days before the clash, Pakistan’s cricket team held a training and practice session at the Oval Ground of the PCB’s Hanif Muhammad High Performance Center in Karachi on Monday. 

“I am feeling very good and have been practicing with high intensity for the past two days,” Rauf told reporters on Monday. “I did a bit of bowling today as well and did not feel any pain. Personally I am satisfied but will follow the management’s plan.”

In response to a question, Rauf said Pakistan had plenty of spinners in the form of Khushdil Shah, Abrar Ahmed and Salman Ali Agha apart from pacers. 

“We have a whole bowling unit and we properly utilize it as such,” Rauf said. “As a bowling unit, we have a lot of belief in ourselves.”

The Pakistani pacer pointed out that the green shirts have played the semifinal and final of two ICC T20 World Cups since 2021 and had also played the final of the Asia Cup in 2022. 

“We have together as a group for quite good time and wish to be remembered as the ones who won an ICC event for the country,” he said.

Pakistan are in Group A of the Champions Trophy tournament along with India, New Zealand and Bangladesh. Australia, England, South Africa and Afghanistan comprise Group B. The top two teams will qualify for the next round of the tournament. 


Pakistan minister says over 400 human traffickers arrested amid migrant boat tragedies

Pakistan minister says over 400 human traffickers arrested amid migrant boat tragedies
Updated 18 February 2025
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Pakistan minister says over 400 human traffickers arrested amid migrant boat tragedies

Pakistan minister says over 400 human traffickers arrested amid migrant boat tragedies
  • Information Minister Ataullah Tarar says human traffickers’ properties seized, bank accounts frozen 
  • Pakistan has already reported two migrant boat tragedies this year near Morocco and Libyan coasts

ISLAMABAD: Pakistan’s Information Minister Ataullah Tarar said this week that the government has arrested over 400 human traffickers recently and seized their properties, state-run media reported as Islamabad cracks down on human smuggling amid an increase in migrant boat tragedies. 

Pakistan has intensified its crackdown on human smugglers after multiple boat tragedies resulted in its citizens getting killed. Two migrant boat tragedies involving dozens of Pakistanis — one near Morocco and the other off the coast of Libya — have been reported this year. Prior to these incidents, an overcrowded vessel carrying over 250 Pakistanis capsized in June 2023 near Greece, in what was one of the deadliest migrant boat disasters in recent history. 

Pakistan’s Senate on Friday approved amendments to three key laws aimed at combating human trafficking and illegal migration. The legislation, which covers human trafficking, migrant smuggling and emigration, seeks to strengthen penalties for offenders, including those involved in smuggling young girls and trafficking beggars to Gulf states.

“The National Assembly was informed today that over four hundred human smugglers have been arrested,” state broadcaster Radio Pakistan reported on Monday. “Minister for Information and Broadcasting Attaullah Tarar told the house during question hour that the properties of these human smugglers have been seized and their bank accounts frozen.”

The minister did not specify the time period during which these human traffickers were arrested. Tarar said the government has taken notice of human smuggling, stressing that those involved in the practice will “not find any place to hide and will receive strict punishment.”

The minister referred to last week’s legislation against human trafficking, saying that the laws were enacted to make the offense a non-bailable one. 

“He said anti-human trafficking cell has been activated and an awareness campaign has also been launched,” Radio Pakistan said. “He expressed the firm commitment to eradicate this menace.”

Migrant boat tragedies put the spotlight on perilous journeys many migrants undertake, often driven by economic hardship as young individuals seek better financial prospects by attempting dangerous crossings to Europe.

Several Pakistanis attempt the dangerous and illegal journey each year in a bid to escape surging inflation and opt for a better life as the cash-strapped country navigates a tricky path to economic recovery from a macroeconomic crisis. 


Amid drought warnings, Pakistan forecasts rain, snowfall in several regions this week

Amid drought warnings, Pakistan forecasts rain, snowfall in several regions this week
Updated 18 February 2025
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Amid drought warnings, Pakistan forecasts rain, snowfall in several regions this week

Amid drought warnings, Pakistan forecasts rain, snowfall in several regions this week
  • Last month, Pakistan Meteorological Department said rainfall from Sept. 1 to Jan. 15 was 40 percent below normal across the country
  • Sindh, Balochistan and Punjab were the most affected provinces, with deficits of 52 percent, 45 percent and 42 percent respectively

ISLAMABAD: The National Disaster Management Authority (NDMA) has predicted rain, snow and thunderstorms in several parts of Pakistan this week, amid an ongoing drought that has dented winter crops in the country’s breadbasket.

Last month, the Pakistan Meteorological Department (PMD) said rainfall from Sept. 1 to Jan. 15 was 40 percent below normal across Pakistan, with Sindh, Balochistan, and Punjab being the most affected provinces with deficits of 52 percent, 45 percent and 42 percent, respectively.

The severe drought, which was in fact part of a larger trend of increasing climate variability, has adversely impacted the growth of crops like wheat, a staple food, as well as vital cash crops like potato, according to the Pakistani climate change ministry.

However, a fresh weather advisory by the NDMA said rains were expected in Punjab, Balochistan, Khyber Pakhtunkhwa, Gilgit-Baltistan (GB) and Azad Jammu and Kashmir (AJK), which are likely to bring some respite to farmers who rely on rainwater to cultivate their lands.

“Rain and snowfall are expected in Pothohar region, including Murree and Galliyat, upper and northeastern Punjab, and Islamabad from February 19 to 21,” the NDMA said.

“Northern and northwestern Balochistan may experience rain, wind, thunderstorms, and snowfall from February 18 to 20. Upper KP is likely to see similar conditions from February 18 to 20, while GB and AJK will have cloudy weather with rain, wind, and snowfall on February 19 and 20.”

The agriculture sector contributes nearly a quarter of Pakistan’s gross domestic product (GDP) and employs 37 percent of the national labor force, according to the United Nations’ Food and Agriculture Organization.

Pakistan generally relies on water from the Indus river which bisects the country from north to south, where it empties into the Arabian Sea.

Experts say a fast-growing population, climate change and poor resource management with an over-reliance on a single water source are all spurring scarcity, and building water reservoirs, restoring wetlands and promoting drought tolerant crop varieties is vital to mitigating recurring and intensifying drought risks in the country.

In its advisory, the NDMA urged the public to use ‘Pak NDMA Alert App’ to stay updated about the weather conditions before traveling.

“NDMA has advised relevant authorities to stay vigilant, especially in snowfall and rain-prone areas,” it added.


Pakistan urges OIC to dissuade Israel and its backers from reviving Gaza war

Pakistan urges OIC to dissuade Israel and its backers from reviving Gaza war
Updated 17 February 2025
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Pakistan urges OIC to dissuade Israel and its backers from reviving Gaza war

Pakistan urges OIC to dissuade Israel and its backers from reviving Gaza war
  • The statement comes amid a six-week truce between Hamas and Israel that ended 15-month war, which has killed over 48,000 Palestinians
  • Deputy PM Ishaq Dar says ​​Pakistan supports diplomacy to preserve Gaza ceasefire deal and negotiations for its second and third phases

ISLAMABAD: Pakistan Deputy Prime Minister Ishaq Dar on Monday urged the Organization of Islamic Cooperation (OIC) to dissuade Israel and its supporters from reviving the war on Gaza, while at the same time opposing the proposals for the expulsion of Palestinians from their country.
The statement by the Pakistan deputy premier came during his briefing to the OIC Group on Pakistan’s priorities on the sidelines of a United Nations Security Council (UNSC) meeting in New York on multilateralism and global governance.
Israel’s war on Gaza, which began after the Oct. 7, 2023 attacks by Hamas, has killed more than 48,000 Palestinians and displaced almost all of Gaza’s 2 million population by laying waste to swathes of neighborhoods, schools and hospitals.
Dar said the Gaza war has had catastrophic consequences for the Palestinian people and the OIC countries should work collectively to preserve the interests of Palestine and the objectives of the Arab and Muslim world.
“​​Pakistan supports the pursuit of diplomacy to preserve the Gaza ceasefire agreement and the negotiation and implementation of its second and third phases,” he said.
“We must dissuade Israel and its supporters from reviving the war in Gaza, and ensure adequate humanitarian assistance to the people of Gaza, including by preserving the essential role of UNRWA (United Nations Relief and Works Agency for Palestine).”
Dar’s statement came amid a six-week truce announced on Jan. 19 between Hamas and Israel that ended 15 months of war, involving the gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to the north.
He said the OIC must “rigorously oppose” proposals for the expulsion of the Palestinians from their country. It followed remarks by United States (US) President Donald Trump and Israeli PM Benjamin Netanyahu about the relocation of Palestinians to Egypt, Jordan or other countries, which have been rejected by Saudi Arabia, Egypt, Jordan, Pakistan and other nations apart from being condemned by international rights groups.
“​​Simultaneously, we should take steps to end Israel’s campaign of violence and displacement in the West Bank. We should clarify our common position of opposition to the plans of Israeli extremists to annex the West Bank,” Dar said. “We must initiate concrete steps to secure the two-state solution.”
Palestinian territory – encompassing the Gaza Strip and West Bank, including East Jerusalem – has been occupied by Israel since 1967. Pakistan does not recognize Israel and has consistently called for an independent Palestinian state based on “internationally agreed parameters
Dar welcomed an agreement brokered by France and the US last November that led to a cessation of hostilities in Lebanon, but said Israel’s continued military actions in south Lebanon violate the agreement and threaten to reignite the conflict. He said ​​Pakistan supports the stabilization of Syria through an “inclusive, Syrian-owned and Syrian-led political process,” facilitated by the UN.
He also spoke about a number of African issues of interest to the OIC that are under consideration in the Security Council, including Libya, Sudan, Sahel and Somalia.
“Pakistan will work with other OIC and African countries to promote effective solutions to these situations where the challenges of international terrorism, organized crime, external intervention and the exploitation of national resources are all intertwined,” the deputy PM added.
Speaking about ​Islamophobia, he said it remains a “persistent and alarming challenge” for the world, demanding urgent action.
“The OIC Group must also remain actively engaged in formulation of the Secretary-General’s Action Plan to combat Islamophobia, ensuring sustained progress and impact,” Dar added.