KARACHI: Pakistan remains hopeful of clearing the International Monetary Fund’s (IMF) inaugural economic review for its short-term loan program next month, a success that would unlock approximately $700 million in disbursements, following the implementation of stringent financial reforms, according to financial experts in the country.
In July of this year, the IMF Executive Board approved a vital nine-month Stand-By Arrangement (SBA) for Pakistan, allocating $3 billion to bolster the country’s economic stabilization efforts. Having received an initial sum of $1.2 billion the same month, Pakistan is now gearing up for a review scheduled for November.
The country’s interim administration has implemented a raft of tough financial measures in recent months to secure the IMF backing, including hikes in electricity and fuel prices as well as interest rates, which led to intense inflationary pressure in the economy.
The government also plans to increase gas tariffs, fulfilling a critical stipulation set by the IMF.
“Despite challenges and a few missed targets related to external funding, primary deficit and gas price adjustments, we think there is high probability that Pakistan will get the next IMF tranche,” Muhammad Sohail, CEO of Topline Securities, said.
According to a research report by Topline Securities released a day earlier, the IMF’s upcoming review for Pakistan includes a comprehensive set of performance markers, comprising two continuous criteria, four indicative targets, and 10 structural benchmarks. Out of these benchmarks, three are continuous, while the remaining seven are scheduled for completion post-September 2023.
During his post-monetary policy analysts briefing on September 14, the governor of the country’s central bank emphasized that all quantitative performance goals pertaining to the State Bank of Pakistan (SBP) — including Net Domestic Assets (NDA), swaps, and net international reserves — had been successfully met.
Supported by the SBA, Pakistan’s new IMF program serves as a foundational policy framework for addressing both domestic and external imbalances. It also paves the way for financial backing from multilateral and bilateral partners.
Key focal points of the program involve the execution of the FY24 budget to enact required fiscal adjustments for debt sustainability, reestablishing a market-driven exchange rate, enhancing the functionality of the foreign exchange market, and implementing a rigorously tight monetary policy aimed at curbing inflation.
With elections on the horizon for early next year, experts believe that essential reforms are likely to be rolled out during the tenure of the caretaker government, as an elected administration may hesitate to impose stringent financial measures.
“The most likely situation will be that the unpopular reforms, which the elected government may be reluctant to enforce, are likely to be implemented by the current government,” Dr. Vaqar Ahmed, Joint Executive Director at the Sustainable Development Policy Institute (SDPI), told Arab News.
Ahmed expressed confidence that Pakistan would successfully pass the IMF review, with the expectation that all required reforms would be completed by the end of February next year. He noted that challenging measures, such as hikes in electricity and fuel prices, had already been implemented.
The national polls in Pakistan were constitutionally scheduled to take place in November, though they were delayed by the election commission to redraw national and provincial constituencies and are now slated for January.
The government that emerges from these elections will negotiate a new loan program with the IMF.
“In another situation,” Dr. Ahmed said, “there is no clarity, in case the election is delayed, whether the SBA could be extended, or new program would materialize.”
According to a briefing by the governor of the State Bank of Pakistan, the country’s total external financing requirement for FY24 stands at $24.6 billion. Of this amount, $2.8 billion has already been disbursed, and the central bank has secured commitments for rollovers amounting to $8 billion.
Pakistan optimistic about success of IMF review following painful economic measures
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Pakistan optimistic about success of IMF review following painful economic measures
- The country has increased electricity and fuel prices to comply with the IMF conditions ahead of next month’s review
- Pakistan will get $700 million disbursement after the successful completion of the IMF evaluation under July agreement
Pakistan says will push for peace in Middle East if elected non-permanent UNSC member
- Elections for five of 10 non-permanent seats of UNSC for 2025-26 to take place on June 6
- Pakistan has been elected as non-permanent UNSC member seven times, most recently in 2013
ISLAMABAD: Pakistan will work for peace in the Middle East and Africa, and promote the right of self-determination of people living under foreign occupation if it gets elected as a non-permanent member of the Security Council, Pakistan’s ambassador to the UN said on Sunday.
Elections for five of the 10 non-permanent seats on the UN Security Council for 2025-26 are set to take place on June 6. Pakistan says its candidacy has the endorsement of the 55-member Asian Group.
The South Asian country has been elected to the Security Council seven times, most recently in 2013. Other times Pakistan got elected was in 1952-1953, 1968-1969, 1976-1977, 1983-1984, 1993-1994 and 2003-2004.
Speaking to members of the US-based Pakistan Students Association Coalition (PSA Coalition) via video link, Pakistan’s Ambassador to the UN Munir Akram said election to the Security Council would require Islamabad to play a leading role in addressing Kashmir, Afghanistan and counterterrorism issues.
“Pakistan will articulate developing countries’ aspirations, work for peace and in the Middle East and Africa as well as promote the right of self-determination for peoples under foreign occupation if elected as a non-permanent member of the UN Security Council,” Akram said, according to the state-run Associated Press of Pakistan (APP).
Akram spoke about the current state of the world. including key global challenges amid regional conflicts.
“He said that as the intense competition between major powers became a new reality of the world order, the world was undergoing a fast transition from its unipolar status to a bipolar plus order,” the APP said.
The Pakistani ambassador’s comments came as Israel continues its relentless military assault on Gaza. Israel’s attacks against Hamas have killed at least 35,386 people, mostly civilians, according to the Hamas-run Gaza health ministry.
The Jewish state’s siege has brought dire food shortages and the threat of famine to the densely populated territory.
Pakistan, which does not have diplomatic ties with Israel, has consistently called for an immediate ceasefire in the Middle East and urged world powers to work toward a two-state solution in the restive region, according to the aspirations of the people of Palestine.
Polling for NA-148 by-election in Pakistan’s Multan underway
- Ex-PM Yousaf Raza Gillani vacated NA-148 seat after getting elected Senate chairman
- Tough competition expected between SIC’s Taimur Malik and PPP’s Ali Musa Gillani
ISLAMABAD: Polling commenced for Multan’s NA-148 on Sunday, state-run media reported, with thousands expected to cast their ballots in today’s by-election.
Former prime minister Yousaf Raza Gillani won the NA-148 constituency in Multan in the contentious Feb. 8 national election. However, Gillani had to vacate the seat after he was elected to the post of Senate chairman in April.
A total of 444,231 registered voters in the constituency are expected to exercise their right to cast votes in 275 polling stations and 933 polling booths set up for the polling exercise. Pakistan’s election regulator has set up 485 polling booths for men and 448 for women, state-run Radio Pakistan said.
Voting commenced at 08:00 a.m. and is expected to continue till 5:00 p.m.
“People in good numbers are arriving at the polling stations to cast their votes at the earliest due to hot weather,” Radio Pakistan said.
“Comprehensive security arrangements have been made for free, fair and transparent polls.”
Eight candidates including the Imran Khan-backed Sunni Ittehad Council (SIC) leader Taimur Malik and Pakistan Peoples Party’s (PPP) Ali Qasim Gillani are vying for the seat.
The Feb. 8 election was marred by a countrywide shutdown of mobile phone services. The results of the polls, which were declared unfair by Khan and his PTI party, threw up a hung parliament in which no political party emerged with the majority to form its government.
Khan’s PTI, which formed the largest bloc in the National Assembly after winning over 90 seats, said it won a two-thirds majority but was denied victory by Pakistan’s election regulator, accusing it of manipulating votes. The Election Commission of Pakistan (ECP) denied the allegations and so did the caretaker government.
Pakistan’s religion minister arrives in Makkah to review Hajj 2024 arrangements
- Chaudhry Salik Hussain to visit Saudi institutions, catering companies and residences of Hajj pilgrims today, says religion ministry
- At least 22,696 Pakistani pilgrims arrived in Madinah via 93 flights since April 9 when Pakistan started pre-Hajj flight operations
ISLAMABAD: Religious Affairs Minister Chaudhry Salik Hussain reached Makkah on Sunday to review Hajj 2024 arrangements, the religion ministry said, as Pakistani pilgrims continue to arrive in Saudi Arabia ahead of the annual Islamic pilgrimage.
Hajj is one of the five pillars of Islam and requires every adult Muslim to undertake the journey to the holy Islamic sites in Makkah at least once in their lifetime if they are financially and physically able.
Pakistani pilgrims have been arriving in Madinah since May 9 when Pakistan launched its pre-Hajj flight operations. At least 22,696 Pakistani pilgrims have since arrived in Madinah through 93 flights, the Ministry of Religious Affairs (MoRA) said in a statement.
Hussain, who arrived in Madinah earlier this week to inspect Hajj arrangements, reached Makkah on Sunday to hold important meetings with Saudi officials and gauge preparations for the Islamic pilgrimage.
“Chaudhry Salik Hussain will visit Saudi institutions, catering companies, and residences of Hajj pilgrims today, Sunday,” MoRA said in a statement.
It added the minister would visit the Pakistan Hajj Mission in Makkah’s office after performing Umrah.
Pakistan’s religion ministry said over 11,000 Pakistani Hajj pilgrims visited the “Riazul Jannah” in Madinah, a small space between the pulpit and the grave of Prophet Muhammad (peace be upon him).
Pakistan has a Hajj quota of 179,210 pilgrims this year, of which 63,805 people will perform the pilgrimage under the government scheme, while the rest will use private tour operators. This year’s pilgrimage is expected to run from June 14-19.
UN-linked body grants ‘A status’ to Pakistan’s National Commission for Human Rights
- Accreditation allows National Commission for Human Rights to sit at Human Rights Council, other UN bodies’ meetings
- NCHR was formed in 2012 for promotion and protection of human rights in Pakistan as per country’s constitution
ISLAMABAD: The Global Alliance for National Human Rights Institutions (GANHRI), one of the largest rights networks worldwide, has granted Pakistan’s National Commission for Human Rights (NCHR) an A-list status, making it a “historic first” for the South Asian country, state media reported this week,
Representing over 110 National Human Rights Institutions (NHRIs), their members and staff across all regions, GANHRI is one of the largest human rights networks worldwide. It is also a trusted partner of the United Nations.
The NCHR was formed in 2012 for the promotion and protection of human rights in Pakistan as per the country’s constitution and international rights instruments.
“Despite it being extremely rare for commissions to attain A status in the first round, Pakistan’s NCHR has been accredited with this highest grade in its first try,” the state-run Associated Press of Pakistan (APP) reported on Saturday.
“It is also the only country to have attained new A status in this year’s session.”
The status grants NCHR a seat at the Human Rights Council and other UN bodies, APP said, adding that it was “a historic first” for Pakistan.
“In the past, Pakistan’s commission could only act as an observer but now will get a voice at the table,” it said.
“NCHR Pakistan joins the ranks of the United Kingdom, Sweden, Denmark, France and others as an A status NHRI.”
The NCHR’s application process involved submitting a lengthy 125-page report about its establishment, independence, composition, organizational infrastructure, working methods, mandate, and quasi-judicial functions.
The NCHR team was interviewed by a committee comprising over 25 persons and select chairpersons of accredited commissions throughout the world before it attained the prestigious status.
“This milestone positions Pakistan’s NCHR in a global alliance of quality, world-class commissions,” the state media said.
“It allows NCHR to speak at the UN Human Rights Council and other global forums to present Pakistan’s case for human rights. Its voice is strategic for financial concessions to Pakistan such as GSP+, FATE, and IME.”
Special flight carrying first batch of Pakistani students from Bishkek arrives in Lahore
- Interior Minister Mohsin Naqvi receives first batch of 140 Pakistani students stranded in Bishkek following violent clashes
- Pakistan’s deputy PM to travel to Bishkek today as part of a delegation to review arrangements for students’ safe return
ISLAMABAD: A special flight carrying 140 Pakistani students from the Kyrgyz capital of Bishkek landed at the Lahore airport late Saturday night, following violent attacks against foreign nationals in the city this week after a dispute between locals and migrants that led to evacuation requests.
This was the first batch of Pakistani students to arrive in the country after violence erupted in Bishkek on Friday night. Videos of a brawl between Kyrgyz and Egyptian students went viral online, prompting furious mobs to target hostels of medical universities and private lodgings of international students, including Pakistanis, in the city.
According to official statistics, around 10,000 Pakistani students are enrolled in various educational institutions in Kyrgyzstan, with nearly 6,000 residing and studying in Bishkek.
Speaking to Arab News on Saturday, many students reported the Pakistan embassy had advised them to stay indoors, though they had run out of food and water. Some even expressed fears that rioting might resume at night and requested evacuation by the authorities.
Interior Minister Mohsin Naqvi welcomed the first batch of Pakistani students as they arrived at the Allama Iqbal International Airport in Lahore and inquired about their well-being, the interior ministry said in a statement.
“Interior Minister Mohsin Naqvi asked students about the tragic incident in Bishkek and inquired about their problems,” the ministry said.
While the interior ministry said 140 students had arrived from Kyrgyzstan, Pakistan’s state broadcaster PTV News said 180 students had arrived in Lahore.
Naqvi said Pakistani students in Kyrgyzstan are “children of the nation,” vowing that those from cities other than Lahore would be provided free transport.
A statement released by the PM’s Office on Saturday evening said Prime Minister Shehbaz Sharif had directed Deputy Prime Minister Ishaq Dar and another cabinet member, Amir Maqam, to travel to Bishkek on Sunday and address the situation there.
The two Pakistani officials will meet with senior government officials in the Kyrgyz capital to ensure medical treatment for injured students and review arrangements for their return.
“Our first concern is the safe return of Pakistani students,” Naqvi said. “God willing, more students would be brought back via additional flights tomorrow [Sunday].”
The country’s ambassador to Kyrgyzstan Hasan Zaigham said on Saturday that five Pakistani medical students had been injured in the mob attack. One student was admitted to a local hospital with a jaw injury, while the other four were released after receiving first aid.
“No Pakistani was killed or raped in the violence,” he told Arab News over the phone, dispelling rumors circulating on social media. “The situation is under control now as Bishkek authorities have dispersed all the miscreants.”
Separately, Pakistan’s foreign ministry said on Saturday it had summoned and handed a note of protest to Kyrgyzstan’s top diplomat in the country in response to violence against Pakistani students in Bishkek.
“It was impressed on the Kyrgyz charge d’affaires that the Kyrgyz government should take all possible measures to ensure the safety and security of Pakistani students and citizens,” Pakistan’s foreign ministry said in a statement.
The statement said the Kyrgyz health ministry had confirmed four Pakistanis were given first aid and discharged while one was still under treatment for injury.
