China rolled over $2 billion loan to Pakistan on March 23 — finance minister

This handout picture, released by Finance Ministry on January 17, 2023, shows Pakistan's finance minister Ishaq Dar chairing the Economic Coordination Committee in Islamabad. (Photo courtesy: Twitter/FinMinistryPak)
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Updated 31 March 2023
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China rolled over $2 billion loan to Pakistan on March 23 — finance minister

  • Finance minister Ishaq Dar says Chinese loan no more in the pipeline
  • Rollover critical for Pakistan as it faces a balance of payment crisis

ISLAMABAD: Pakistani Finance Minister Ishaq Dar said on Friday China had rolled over a $2 billion loan to the cash-strapped country on March 23, dismissing what he called “speculative” media reports that the loan was still in the pipeline.

The rollover of the loan is critical for Pakistan as it faces a balance of payment crisis, soaring inflation, and dwindling foreign exchange reserves, barely enough to cover a month of controlled imports.

Islamabad has been negotiating with the IMF since early February for the release of $1.1 billion from a $6.5 billion bailout package agreed in 2019.

One of the IMF's conditions for the release of the tranche is assurance of external financing to fund Pakistan's balance of payments. Longtime ally Beijing is the only help Islamabad has got so far, with refinancing of $1.8 billion credited last month to Pakistan's central bank.

“I am happy to confirm that this [loan] had been rolled over on March 23,” the finance minister told parliament on Friday, responding to a Reuters report this week that quoted an anonymous source as saying China was still working on a request by Pakistan to roll over a $2-billion loan that matured last week.

“The documentation [related to the loan] for 2023 and 2024 has been completed, this loan stands rollover and is no longer in the pipeline.”

Dar's comments were the first official announcement of the rollover after the loan matured. Dar did not give the new maturity date or other terms of the arrangement.


Pakistan projects 3-4 percent inflation next month ahead of June 10 budget

Updated 5 sec ago
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Pakistan projects 3-4 percent inflation next month ahead of June 10 budget

  • Monthly economic report says consumer price inflation is likely to ease by 1.5 percent to 2 percent year-on-year in May
  • It warns that inflationary pressures may resurface slightly in June due to seasonal trends and base effects

KARACHI: Pakistan expects inflation to pick up to between 3 percent and 4 percent in June, the Finance Ministry said in its monthly economic report released Thursday, as the country prepares to announce its federal budget for the fiscal year 2025-26 on June 10, a date that falls during the Eid Al-Adha holidays.

The ministry said consumer price inflation was projected to ease between 1.5 percent and 2 percent year-on-year in May, following months of steady decline driven by monetary tightening and a drop in food and energy prices.

However, it noted that inflationary pressures could resurface slightly next month due to seasonal factors and base effects.

“Improved weather conditions, better crop yields and a stable exchange rate have helped reduce inflation to a historical low,” the report said, adding that “inflation is projected to remain between 1.5-2.0 percent in May, with a possible rise to 3.0-4.0 percent by June 2025.”

The State Bank of Pakistan, in its half-yearly report last month, forecast average inflation for the fiscal year ending June 2025 to remain within 5.5 percent to 7.5 percent, reflecting easing cost pressures across key commodities.

Finance Adviser Khurram Schehzad on Thursday confirmed the official timeline for the country’s fiscal announcements in a social media post aimed at dispelling speculation about possible delays due to the Eid Al-Adha holidays.

“The dates are firm,” he said on platform X. “As communicated earlier, the upcoming Federal Budget FY26 is on schedule to be announced on June 10, 2025. Similarly, the upcoming Pakistan Economic Survey FY25 is scheduled to be announced on June 9, 2025.”

Pakistan’s macroeconomic outlook has improved in recent months, supported by a stronger current account balance, improved remittances and falling inflation.

However, authorities remain cautious as they seek to build on recent economic stabilization, steer the country toward gradual growth and reaffirm their commitment to ongoing economic reforms.

With input from Reuters


Pakistan invites Japan to join mineral sector drive through joint ventures, value addition

Updated 30 min 39 sec ago
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Pakistan invites Japan to join mineral sector drive through joint ventures, value addition

  • Commerce minister Jam Kamal says Japan can help build sustainable supply chains for critical minerals
  • He says Islamabad sees Japan not only as a partner but as a catalyst for transforming Pakistan’s economy

ISLAMABAD: Pakistan has invited Japan to invest in its minerals sector through joint ventures focused on exploration, processing and value addition, with commerce minister, Jam Kamal, holding high-level meetings in Tokyo this week, the government said in a statement on Thursday.

The outreach is part of Pakistan’s broader push to attract foreign investment and strengthen its struggling economy. Islamabad has prioritized mining and minerals as a key sector for economic diversification, and is seeking Japanese collaboration to unlock its untapped resource potential while aligning with Tokyo’s industrial needs.

“Our mineral sector remains largely underexplored,” Kamal said during meetings with officials from the Japan International Cooperation Agency (JICA), the Japan External Trade Organization (JETRO) and the Japan–Pakistan Business Cooperation Committee (JPBCC).

“We are offering Japanese partners the opportunity to participate in high-value ventures that can help build sustainable supply chains for critical minerals,” he added.

The minister highlighted reserves of rare earth elements like copper, gold and other industrial minerals, positioning Pakistan as a strategic destination for resource-based cooperation.

He emphasized Pakistan’s openness to technology transfer, public-private partnerships and long-term frameworks that support mutual gains.

In his conversation with JICA’s Senior Vice President HARA Shohei, Kamal underlined the importance of aligning future development cooperation with Pakistan’s industrial modernization and export-oriented growth.

He acknowledged Japan’s long-standing contribution of over $11 billion in areas such as energy, transport and vocational training, and called for expanded technical assistance in mineral logistics, industrial clusters and green technologies.

Meeting JETRO President Susumu Kataoka and Executive Vice President Kazuya Nakajo, the minister urged greater Japanese investment in Pakistan’s Special Economic Zones and export-oriented sectors.

He called on JETRO to promote Pakistan’s mineral sector to Japanese industry through seminars, business-to-business (B2B) outreach, and participation in trade exhibitions.

At a luncheon hosted by JPBCC, Kamal encouraged deeper B2B ties and sought active Japanese input for the upcoming Pakistan-Japan Business Dialogue.

“Our doors are open,” he said. “We see Japan not only as a partner but as a catalyst for transforming Pakistan’s economic base. With your advanced technology and our resource potential, we can build future-proof industries together.”

Pakistan has in recent years stepped up its diplomatic engagement with key economic partners to promote sectors such as information technology, light engineering and mineral development.

The Tokyo visit marks a fresh attempt to align its resource-led ambitions with Japan’s technological strengths and global supply chain priorities.


Pakistan PM arrives in Tajikistan on final leg of five-day regional diplomacy tour

Updated 29 May 2025
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Pakistan PM arrives in Tajikistan on final leg of five-day regional diplomacy tour

  • The tour earlier took him to Türkiye, Iran and Azerbaijan after a military confrontation with India
  • In Tajikistan, Sharif will attend a glacier conference, present Pakistan’s stance on climate change

ISLAMABAD: Prime Minister Shehbaz Sharif arrived in Tajikistan’s capital Dushanbe on Thursday, the final stop in a five-day regional diplomacy tour that earlier took him to Türkiye, Iran and Azerbaijan, following a recent military confrontation with archrival India.

The tour has seen Sharif engage with regional allies to reaffirm diplomatic ties and economic cooperation, while also garnering support in the wake of heightened tensions with India.

Sharif was received at the Dushanbe airport by Tajik Prime Minister Qohir Rasulzoda.

“Prime Minister Muhammad Shehbaz Sharif has arrived in Dushanbe, the capital of Tajikistan, on a two-day visit,” his office said in a statement.

“During the visit, he will hold a bilateral meeting with Tajik President Emomali Rahmon to discuss cooperation in various sectors and thank the Tajik leader for his strong support during the recent India-Pakistan tensions,” it continued.

Earlier in the day, Sharif concluded his visit to Azerbaijan, where he announced that the Azeri leadership had reaffirmed plans to invest $2 billion in Pakistan and deepen collaboration in commerce, defense, education and health.

On Wednesday, Sharif attended a trilateral summit in the Lachin district with Azerbaijan’s President Ilham Aliyev and Turkish President Recep Tayyip Erdoğan. The three leaders pledged to expand cooperation and turn their longstanding fraternal ties into a strategic partnership for regional prosperity.

During his previous stops, Sharif also met Iranian President Masoud Pezeshkian and Supreme Leader Ayatollah Ali Khamenei in Tehran to discuss trade, energy and regional connectivity. In Türkiye, from where he kicked off his regional tour, the Pakistani prime minister held talks with Erdoğan on defense, infrastructure and intelligence cooperation.

Pakistan has long sought to strengthen ties with landlocked Central Asian nations by offering them access to its Arabian Sea ports, part of its broader push for regional connectivity and economic integration.

The Prime Minister’s Office said in its statement Sharif will also participate in a high-level international conference on glacier preservation in Tajikistan, where he is expected to brief participants on the impact of climate change on Pakistan and reaffirm the country’s commitment to environmental protection.
 


Two police officers, four Pakistani Taliban killed in rare raid in Azad Kashmir

Updated 29 May 2025
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Two police officers, four Pakistani Taliban killed in rare raid in Azad Kashmir

  • While security forces frequently target TTP hideouts in restive northwest and elsewhere, such operations in Kashmir are rare
  • Police chief says TTP is acting as a proxy for India, New Delhi has not responded to the accusation

MUZAFFARABAD, Pakistan: Security forces acting on intelligence raided a militant hideout in Azad Kashmir, triggering a shootout that left two police officers and four Pakistani Taliban fighters dead, police said Thursday.

The rare overnight raid was carried out in the Rawalakot district, according to Abdul Jabbar, the police chief in Kashmir, which is split between Pakistan and India and claimed in full by both countries in its entirety.

Jabbar said the killed militants were members of the Pakistani Taliban, who are known as Tehrik-e-Taliban Pakistan or TTP and are allies of the Afghan Taliban. He alleged the TTP is acting as a proxy for India and said police thwarted an attempt by the insurgents to create a base for future attacks.

There was no immediate response from New Delhi.

While Pakistani security forces frequently target TTP hideouts in the restive northwest and elsewhere, such operations in Kashmir are rare. TTP is a separate group and has been emboldened since the Afghan Taliban returned to power in Afghanistan in 2021.

Many TTP leaders and fighters have since found sanctuary in Afghanistan.


Over 36 million children vaccinated as Pakistan anti-polio campaign enters fourth day

Updated 29 May 2025
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Over 36 million children vaccinated as Pakistan anti-polio campaign enters fourth day

  • Health officials have confirmed 10 polio cases in Pakistan his year
  • Pakistan, Afghanistan are only countries where polio remains endemic

ISLAMABAD: Pakistan has vaccinated approximately 36.4 million children as the third nationwide polio vaccination campaign of the year entered its fourth day today, Thursday, the country’s polio program said.

Around 400,000 frontline workers, including 225,000 women vaccinators, are driving the campaign launched on Monday to vaccinate 45 million children under the age of five. The drive will conclude on June 1. 

Polio is a paralyzing disease with no cure. Multiple doses of the oral polio vaccine, along with the completion of the routine immunization schedule for all children, are essential to ensure strong immunity against the disease.

Pakistan and Afghanistan are the last two countries in the world where polio remains endemic. Pakistan has reported 10 polio cases so far this year, compared to 74 cases in 2024.

“In the first three days, 81 percent of (45 million) children across the country have been vaccinated,” the National Emergency Operations Center (NEOC) said in a statement.

“85 percent in Punjab, 68 percent in Sindh, 86 percent in Khyber Pakhtunkhwa and 74 percent of children in Balochistan have been vaccinated.”

The report said 63 percent of children were administered polio drops in the federal capital, Islamabad, 93 percent in Azad Jammu and Kashmir and 91 percent in Gilgit-Baltistan.

In the early 1990s, Pakistan reported around 20,000 polio cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021. 

Pakistan’s polio program began in 1994, but efforts to eradicate the virus have been repeatedly undermined by vaccine misinformation and resistance from some religious hard-liners who claim that immunization is a foreign plot to sterilize Muslim children or a cover for Western espionage.

Militant groups have also frequently targeted polio vaccination teams and the security personnel assigned to protect them, often resulting in deadly attacks.

A Pakistani police officer was killed earlier this week when gunmen opened fire on a team of health workers carrying out a polio vaccination drive in the volatile Balochistan province on the second day of a door-to-door campaign.