KARACHI: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday acknowledged Pakistan’s economic progress, saying the country was moving in the “right direction” by staying the course of IMF-backed structural reforms.
She said this while moderating a panel discussion, titled “A Path for Emerging Market Resilience,” on the second day of AlUla Conference for Emerging Market Economies in Saudi Arabia. The discussion featured Pakistan’s finance minister, Muhammad Aurangzeb, and his counterparts from Türkiye, Brazil and Egypt.
Pakistan, which averted a default in 2023, is currently navigating a path to economic recovery under a $7 billion IMF program and has undertaken several reforms in taxation, energy and others sectors as well as with regard to better management of loss-making state-owned enterprises (SOEs).
Aurangzeb shared the South Asian nation had achieved a primary surplus on the fiscal deficit front with its overall debt-to-GDP ratio having declined to mid-60s from more than 73 percent, thanks to “prudent fiscal management.”
“This is indeed the right trajectory, the right direction to travel and I want to thank you for your dedication to stay the course,” Georgieva said after Aurangzeb detailed his government’s efforts to keep the fiscal and current account deficits in check.
The statement by the IMF chief comes days before the arrival of a team of IMF experts to review Pakistan’s performance under the ongoing loan program. A successful review would lead to the release of around $1 billion to the cash-strapped South Asian nation.
Georgieva lauded Pakistan for “improving the overall performance of the economy” through privatization and trying to reform the loss-making SOEs, especially the government’s failed attempt to sell off its stake in the Pakistan International Airlines (PIA).
“You rightly pointed out the bane of our country has been the twin deficits,” Aurangzeb said, adding that Pakistan’s tax-to-GDP ratio was languishing between 9 percent to 10 percent, the lowest in the region, but the government was able to increase it to 10.8 percent in end-December by mobilizing local resources.
In its 37-month loan agreement with the Washington-based lender, Pakistan has agreed to increase the country’s tax-to-GDP level to 13.5 percent to join the comity of nations and to bring a certain level of sustainability to the primary surplus that it has achieved.
Aurangzeb said his country was working and making “tough policy choices with respect to what is a good cost and bad cost.”
The government of Prime Minister Shehbaz Sharif is trying to rid Pakistan’s economy of the recurring boom-and-bust cycles by enticing overseas Pakistanis to remit their earnings through formal banking channels as well as increasing exports. Pakistan expects worker remittances to rise above $35 billion this year through June.
“If we have to grow sustainably it has to be export-led growth. And we have to change fundamentally the DNA of the economy and we are working toward that,” Aurangzeb said.
“We just need to make sure we make it sustainable as we go forward.”
To a question, the minister said developing economies like Pakistan were relatively in a good place as they had entered 2025 on a “relatively strong note” in terms of market stability, resilience of the banking system, and the bold and structural reforms, which a number of economies were undertaking at this point.
“Therefore, a lot is in our control in terms of staying the course,” Aurangzeb said, adding Pakistan’s recent 10-year agreement with the World Bank Group would allow it to look at the existential issues of population control and climate change.
The use of artificial intelligence (AI) is going to become a huge enabler and game changer for a productivity-led economic growth in Pakistan, according to the finance minister. The use of agri-tech and AI-inspired precision farming will hike crop yields by 5 percent to 20 percent, while AI-powered digital banking and other services have already begun to help increase Pakistan’s IT exports by 25 percent.
“What we need to do is to ensure that the third largest freelancer population in the country gets the requisite resources,” he added.
Pakistan economy moving in ‘right direction’ — IMF chief
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Pakistan economy moving in ‘right direction’ — IMF chief
- Pakistan, which averted a default in 2023, is currently navigating a path to economic recovery under a $7 billion IMF program
- Finmin says Pakistan has achieved a primary surplus on the fiscal side, with overall debt-to-GDP ratio having declined to mid-60s
PM directs speedy container clearance, attractive tariffs at Pakistan ports as part of maritime reforms
- Pakistan has formed a maritime taskforce to streamline its blue economy by optimizing operations at various ports
- Shehbaz Sharif asks officials to accelerate pace of installation of scanners to reduce time for container clearance
ISLAMABAD: Prime Minister Shehbaz Sharif has instructed officials to speed up the process of container clearance and ensure attractive trade tariffs at Pakistani ports, his office said on Monday, as the South Asian country undertakes maritime reforms to boost its economy.
Pakistan, which averted a default in 2023, is currently navigating an economic recovery path under a $7 billion International Monetary Fund (IMF) program and has undertaken several reforms in various sectors.
A taskforce is working on sustainable reforms in the maritime sector to end the long-standing stagnation in Pakistan’s maritime economy, according to the prime minister.
“Pakistan has been bestowed with a long coastline, sea and other unlimited resources,” Sharif was quoted as saying at a meeting of the maritime taskforce he presided over in Islamabad.
“A plan should be made to minimize the duration of the presence of containers at the ports,” he said, asking authorities to auction containers available at the ports as soon as possible to better utilize the port space.
During the meeting, officials informed the prime minister that a National Dredging Plan (NDP) has been formulated keeping in mind the country’s needs for the next ten years. It will help set up a National Dredging Company for dredging of all the ports, according to Sharif’s office.
A plan of action has also been prepared for the rehabilitation and reconstruction of the Pakistan National Shipping Corporation (PNSC) through public-private partnership for the next 25 years. Similarly, a plant is being established in Gadani, Balochistan to dispose of chemical waste and other hazardous materials, while the Pakistan Maritime Port Act is in the final stages, which will implement uniform rules and regulations at all ports.
On the occasion, Sharif said the development of economy is linked to marine resources and access to them.
“The pace of installing the latest scanners at all ports should be accelerated,” he said. “Trade tariffs should be reviewed to bring the country’s ports to a competitive standard.”
Pakistan regulator moves to reinvigorate ‘waqf’ charitable endowments for Islamic social finance
- In Islamic tradition, waqf charitable endowments, or religious donations, are made by Muslims to benefit the community
- Historically, the instrument has funded education, health care and social welfare, supporting institutions like Al-Azhar
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), a corporate legislative and financial regulatory agency, has issued a ‘concept paper’ to revive and modernize ‘waqf’ charitable endowments for Islamic social finance, it said on Monday.
In Islamic tradition, waqf charitable endowments, or religious donations, are made by Muslims for the benefit of the community. Historically, the instrument has funded education, health care and social welfare, supporting institutions like Al-Azhar and the Ottoman public works system.
Waqf remains an important player in the socio-economic fabric of the Muslim world and countries like Malaysia, Turkiye, and Indonesia have successfully adapted it to modern financial systems through regulatory frameworks, innovative governance models, and Shariah-compliant financial instruments.
But in Pakistan, the financial instrument remains underutilized due to outdated management practices and the lack of a robust regulatory framework, according to the SECP, which aims to develop modern and efficient corporate sector, insurance and capital markets in Pakistan.
“The concept paper proposes strategies to harness waqf for Islamic social finance, including reinvigorating the waqf institution, enabling the establishment of waqf in corporate structures as waqf companies, and developing Islamic instruments and financial services products for such companies,” the regulator said.
The proposals aim to improve efficiency, complete the Islamic finance ecosystem, and create social impact in Pakistan, according to the SECP. The suggested pathway to transform waqf into a dynamic, sustainable and impactful institution for socio-economic development will be deliberated and discussed with key industry stakeholders before initiating the required regulatory interventions.
It noted that the concept paper included various options, such as amending provincial waqf laws and other regulations, to provide for waqf companies in order to address concerns pertaining to its jurisdiction and legal considerations.
“It is expected that the revival and modernization of waqf will enable sustainable Islamic social finance institutions, thereby helping achieve the objective of shared prosperity by making resources available for social and welfare projects,” the SECP added.
Women strangle blackmailing Pakistan faith healer — police
- The women say they turned to Riaz Hussain for help in removing black magic curses but he instead took their compromising videos
- Faith healers are revered by some communities in Pakistan and their orders are followed devotedly, allowing for widespread exploitation
LAHORE: Two women have been arrested for murder after strangling a Pakistani faith healer with a scarf after years of being blackmailed over videos he took of them, police said on Monday.
The women told police they had turned to Riaz Hussain for help in removing black magic curses but he instead took compromising videos that he threatened to release.
“During the investigation it was found that Riaz Hussain had been sexually harassing women for a long time under the pretext of spiritual healing,” police in the city of Multan in Punjab province said in a statement.
The women, with the help of their cousin and another man, strangled the faith healer with a scarf before dumping his body.
The four have been arrested for murder, police said, adding that a fifth man has also been arrested.
Faith healers are revered by some communities in Pakistan and their orders are followed devotedly, allowing for widespread exploitation.
A pregnant woman was brought to a hospital with a nail hammered into her head in 2022 after a faith healer said it would guarantee she gave birth to a boy.
Another woman died the following year after being tortured with sticks for days by a faith healer who claimed to be following an exorcism ritual.
Pakistan says Saudi Arabia, China, US among countries participating in Minerals Investment Forum
- Pakistan is hosting summit from Apr. 8-9 in Islamabad to attract international investment in its mining sector
- Ali Pervaiz Malik says around 2,000 people expected to attend conference, out of which 300 will be foreigners
ISLAMABAD: Business representatives and officials from Saudi Arabia, China, US and the UK, among other countries, will participate in the two-day Pakistan Minerals Investment Forum scheduled to take place this week, Petroleum Minister Ali Pervaiz Malik said on Monday.
The summit will be held in Pakistan’s capital from April 8-9 and is part of the government’s recent efforts to attract local and international investment in the mining and minerals sector. Pakistan has vast reserves of minerals and natural resources, which the government hopes can become a key source of economic development in the future.
The country is home to one of the world’s largest porphyry copper-gold mineral zones. The Reko Diq mine in southwestern Balochistan has an estimated 5.9 billion tons of ore. Barrick Gold, which owns a 50 percent stake in the Reko Diq mines, considers them one of the world’s largest underdeveloped copper-gold areas, and their development is expected to have a significant impact on Pakistan’s struggling economy.
Pakistan’s state media said in February that the Oil and Gas Development Company Limited (OGDCL), the country’s leading exploration and production (E&P) company, in collaboration with the government and strategic partners, would organize the summit.
“We are expecting participation at the senior level [for the summit] from Azerbaijan, Saudi Arabia, China and America,” Malik told reporters at a press conference, adding that participants from Denmark, Finland, Kenya and the UK are also expected to attend.
Malik said the government estimates around 2,000 people to participate at the event, out of which 300 are expected to be foreigners. He said Pakistan will sign key agreements and memoranda of understanding (MoUs) with other countries at the summit.
“It is the prime minister’s wish that we do not restrict this event to just words, so we will confirm some MoUs in front of you,” Malik said. “Along with this, not just MoUs but a few agreements will also be executed after which we will take these entire matters toward implementation.”
The minister said that the government will formally unveil Pakistan’s newly developed, investor-friendly National Minerals Harmonization Framework 2025, which aims to attract investment in the country’s mineral sector.
Pakistan has designated mining and minerals as a priority sector for national economic development, aiming to reduce its reliance on imports and enhance exports. The country is undertaking efforts to utilize its natural resources through foreign investment and collaboration to stabilize its $350 billion economy, which has suffered a prolonged economic crisis over the past few years.
Brutal day at Pakistan Stock Exchange as Trump tariffs hammer global financial markets
- Trading at PSX halted briefly on Monday as benchmark share index declined over 5% during the day
- Asian equity markets sank, European shares crashed to a 16-month-low and oil prices plummeted
KARACHI: The Pakistan Stock Exchange fell to an intraday low of 8,687 points, the largest intraday point-wise drop in PSX history, before ending the session down 3.3% from the previous close, as major stock indexes plunged on Monday over US President Donald Trump’s sweeping tariff plans.
Trump has announced tariffs on goods imported from the rest of the world, saying a 10% tariff on all nations and much higher rates of up to 50% on individual countries will boost the US economy and protect jobs.
Asian equity markets sank, European shares crashed to a 16-month-low and oil prices plummeted on Monday as investors feared the duties Trump announced last week could lead to higher prices, weaker demand and potentially a global recession.
The PSX suspended stocks trading for an hour at 11:58 am after the KSE-30 index, which tracks the performance of the 30 most liquid companies listed on the exchange, fell by 5.6% or 2,055 points to 34,723 points. According to PSX rules, trading is halted if the KSE-30 index falls below 5% and keeps trading below that number continuously for five minutes. The benchmark KSE-100 index, which measures the performance of 100 companies, lost 5.3 percent or 6,287 points, the highest intraday drop in terms of points.
However, as trading resumed at 1:03pm, the index pared some losses and ended the week’s first session at 114,909 points, down 3.3% or 3,882 points from the previous close.
“A brutal day at the Pakistan Stock Exchange as the market mirrored the global sell-off, opening on a sharply negative note and experiencing relentless selling pressure throughout the day,” Topline Securities said in its daily market review.
“The benchmark index nosedived to an intraday low of 8,687 points … While this decline set a new record in absolute terms, it was not the steepest in percentage terms. The most severe single-session percentage fall remains the 12.4% drop on June 1, 1998.”
Mohammed Sohail, CEO at Topline Securities Ltd, said in a note to clients the global market crash would most affect the oil and gas exploration, technology and textile sectors “as these are either linked to the global commodity prices (like crude oil) or linked with global aggregate demand.”
Trump’s Wednesday tariff announcement shook global stock markets, wiping out $5 trillion in value for S&P 500 index companies by Friday’s close, a record two-day decline driven by recession fears, prices for oil and commodities plunged, while investors fled to the safety of government bonds.
Washington has also imposed 29% tariffs on Pakistani goods.
“The sharp selloff this morning mirrors a broader wave of global market volatility, driven by the US administration’s recent imposition of sweeping tariffs,” Shahid Ali Habib, chief executive officer at Arif Habib, told Arab News. “These measures have intensified fears of a global trade war, shaking investor confidence worldwide.”
“Impact on the KSE-100 index is a reflection of investor anxiety as they anticipate negative effects on overall economic stability,” Muhammad Waqas Ghani, head of research at JS Global Capital, said.
The stock market slump is bound to weigh on investor sentiments in Pakistan, where equity traders had just started earning profits from a boom triggered by a much-awaited IMF deal with Pakistan last month for a new $1.3 billion climate arrangement and a successful first review of an ongoing 37-month bailout program.
