ISLAMABAD: An International Monetary Fund (IMF) team is currently visiting Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), a finance ministry official said on Monday, adding the visit has nothing to do with the country’s judicial system or a review of Pakistan’s ongoing $7 billion IMF program.
The statement came a day after the finance ministry said the three-member IMF mission would conduct the governance and corruption assessment to recommend reforms for transparency, institutional strengthening and sustainable growth in the South Asian country.
Pakistan, currently bolstered by the $7 billion IMF facility that was granted in September, is navigating an economic recovery path. IMF bailouts are critical for Pakistan, which narrowly avoided a sovereign default in June 2023 by clinching a last-gasp, $3 billion IMF loan.
The global lender is set to review Pakistan’s progress on the current $7 billion program by March, with the government and central bank expressing confidence about meeting the targets.
“All rumors suggesting that the IMF team is here to evaluate the judicial process or other related matters are baseless and nothing of that sort is happening during this visit,” Khurram Shehzad, an adviser to Finance Minister Muhammad Aurangzeb, told Arab News.
“The purpose of the IMF team’s visit is to assess the governance structure, which falls under the global lender’s mandate for countries under its program.”
Arab News approached the IMF mission currently visiting Pakistan but did not get a reply by the filing of this story.
Shehzad refuted reports suggesting that the IMF team would meet members of the Judicial Commission of Pakistan next week to discuss the process of judges’ appointment.
The reports emerged amid calls from lawyer bodies and opposition to repeal the 26th constitutional amendment, which empowered parliament to pick the country’s top judge and introduced fundamental changes in the appointment of judges in the superior judiciary.
Shehzad said the IMF team’s visit was not sudden, it was rather planned in July 2024 as part of Pakistan’s previous $3 billion Stand-By Arrangement (SBA).
“This visit is unrelated to the six-month review of the current IMF program, which will be conducted by a separate team,” he said. “That team has not yet arrived in Pakistan and is expected [to arrive] by the end of February or the first week of March.”
He said this was not a new development neither exclusive to Pakistan as similar assessments had been conducted in many other countries.
“They are in Pakistan to conduct a Governance and Corruption Diagnostic Assessment (GCDA), focusing on evaluating corruption vulnerabilities across six core state functions, including fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT),” the finance adviser said.
The IMF has been offering guidance and technical support for a long time, which has contributed to improved governance by enhancing public sector transparency and accountability, according to the official.
“They followed a process in which they assess a country’s governance structure by meeting regulators and institutions to explore ways to improve it in line with global best practices,” he shared.
Following the analysis, Shehzad said, the IMF team will provide GCDAs with recommendations to systematically address the vulnerabilities.
“They will provide a comprehensive overview of the governance structure, highlighting areas for improvement and suggesting methods to bring that improvement and the report on the IMF team’s assessment will be published by the government in July this year,” he added.
The IMF mission will mainly engage with the Finance Division, Federal Board of Revenue, State Bank of Pakistan, Auditor General of Pakistan, Securities & Exchange Commission of Pakistan, Election Commission of Pakistan, and Ministry of Law & Justice, according to Pakistan’s finance ministry.
Traditionally, the IMF’s main focus has been to encourage countries to correct macroeconomic imbalances, reduce inflation, and undertake key trade, exchange and other market reforms needed to improve efficiency and support sustained economic growth.
“While these remain its main focus in all its member countries, however, the IMF has found that a much broader range of institutional reforms is needed if countries are to establish and maintain private sector confidence and thereby lay the basis for sustained growth,” the ministry said in a statement, adding that the IMF identified that promoting good governance in all its aspects, including ensuring the rule of law, improving the efficiency and accountability of the public sector and tackling corruption, are essential elements of a framework within which economies can prosper.
In 1997, the IMF adopted a policy on how to address economic governance, embodied in the Guidance Note “The Role of the IMF in Governance Issues.” To further strengthen the implementation of this policy, the IMF adopted in 2018 a new Framework for Enhanced Engagement on Governance (Governance Policy) that aims to promote more systematic, effective, candid, and evenhanded engagement with member countries regarding governance vulnerabilities, including corruption, that are critical to macroeconomic performance, according to the finance ministry.
Under this policy and framework, the IMF offers to undertake GCDA with member countries to analyze and recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance in IMF member countries. Since 2018, 20 GCDA reports have been finalized, including those for Sri Lanka, Mauritania, Cameroon, Zambia, and Benin and ten diagnostics are ongoing, with several more under IMF consideration.
Islamabad says IMF team in Pakistan for governance review, not judicial oversight
https://arab.news/5km3e
Islamabad says IMF team in Pakistan for governance review, not judicial oversight
- Finance adviser says IMF mission is evaluating corruption vulnerabilities across six core state functions
- IMF team will engage with law ministry, finance division, financial institutions, and election commission
Karachi street performer juggles hardships, brings smiles on bustling food street
- Jamal Shah began performing in theater as a teenager but lost his job during the coronavirus pandemic
- He says survival is a battle, as he navigates the harsh stage of the streets to support his five children
KARACHI: As dusk falls over Burns Road, Karachi’s busy food street, a man in a bright blue curly wig and neon-yellow jacket steps into the crowd, a red clown nose perched on his face. His hands, covered in red gloves, juggle colorful balls, drawing the attention of people, particularly children who watch with excitement.
This is Jamal Shah, a street performer whose journey from stage artist to roadside entertainer is a tale of resilience and a deep desire to connect with people through his passion for performance.
Before the coronavirus pandemic shuttered theaters and circuses, Shah was a seasoned performer, traveling across Pakistan’s four provinces and receiving praise for his magic shows and juggling acts.
Since 1998, the 41-year-old has led a life of artistic fulfillment. But the pandemic changed everything, leaving him and countless others jobless.
“Before COVID, I used to perform in theaters, circuses, variety shows, magic shows, and festivals,” Shah said, his voice cutting through the noise. “I am not just a street artist. I am a trained theater and stage performer.”
Yet, circumstances forced him out of familiar settings, leaving him to perform on the streets, where passersby are often too absorbed to notice his skillful acts.
“I turned to street performances after [theater] shows were shut down,” he said. “Without these shows, I had to find a way to survive with a wife and five children. I live on rent, so I had no choice but to perform on the streets.”
Every evening, Shah leaves Quaidabad on his motorcycle, making a 25-kilometer journey to the Burns Road in heart of Saddar, which has been his lifeline for the past five years.
During Ramadan, he performs from Iftar to Suhoor, his efforts barely enough to cover his family’s basic needs.
“My family is struggling,” Shah told Arab News. “One of my children is unwell, I am also unwell, and so is my wife. But I decided that I would not beg from anyone. Instead, I would use my skills here.”
But the street is a harsh stage where sometimes speeding motorcyclists crash into him and passersby occasionally hurl mocking remarks. Despite the hardships, Shah takes comfort in the smiles he brings to children’s faces.
“When I see children smiling, my personal sorrows fade away,” he said. “I never bring my grief to the public. As for my tears, I know when they well up and when I hide them. When I am performing, the character I embody requires me to conceal my tears, which I do, while striving to keep people happy and smiling.”
His children, who once went to school, now attend a seminary for religious education. Shah said his greatest desire was to provide them with a brighter future.
“I want to support my family and children so that my children can also go to school and study, educate themselves, play a positive role in society and become its valuable members,” he said. “If my children get an education, they will develop a good character.”
Shah’s dedication to his craft is unwavering, making him pledge to perform until there is strength in his body.
“One must fight for survival,” he added. “Whether it’s scorching heat or cold, I am here.”
Shah said performers like him felt duty-bound to spread joy among people.
“Every person deprived of happiness should find joy in watching us, and their sadness should be transformed into smiles and happiness,” he said, his eyes reflecting the flickering lights of the food street and hope for a better future.
Pakistan Tekken 8 team delivers historic victory in Seoul, dismantling South Korea
- Pakistan wins with seven of the best players from both countries taking part in special Tekken 8 team event
- Winning team included Pakistan’s Arslan Siddique, considered one of the greatest Tekken players in the world currently
ISLAMABAD: A team from Pakistan delivered a historic victory in Seoul this week in a special Tekken 8 event, dismantling South Korea’s long-standing dominance in competitive Tekken esports.
South Korea had for years been the leading force in competitive Tekken until Pakistan’s Arslan Siddique, better known as Arslan Ash, began to gain prominence by winning major international tournaments. He is a five-time EVO champion, having emerged victorious in EVO Las Vegas 2019, 2023, 2024 as well as EVO Japan 2019 and 2023.
Considered one of the greatest Tekken players in the world currently, Ash became the first professional gamer in 2023 to win the global Tekken 7 title four times. Ash also won the Tekken World Tour Finals 2023 and has made the Tekken battle between Pakistan and South Korea one of the most enduring and celebrated storylines in the esports community.
“Pakistan is the best Tekken region in the world again,” Ash posted on X, after Pakistan’s win against South Korea, with seven of the best players from each country taking part.
The players participating in the Pakistan team event were TM|Arslan Ash, DRX|Knee, Falcons|Atif, KDF|Ulsan, Falcons|Farzeen, Varrel|Rangchu, QAD|TheJon, KDF|CBM, Fate|Numan Ch, VIT|JeonDDing, ROC|Usama Abbasi, KDF|Mulgold, TM|Hafiz Tanveer and DRX|Chanel.
“With yet another Pakistan Tekken victory, the nation has cemented its position at the pinnacle of competitive Tekken,” Pakistan’s top tech news and media outlet, TechJuice, reported on Monday.
“Once seen as challengers, Pakistan’s Tekken warriors have rewritten history, proving that the Tekken esports landscape belongs to them.”
Pakistani, UAE officials agree to expand cooperation in railways sector
- The UAE is Pakistan’s third-largest trading partner after China and US, and a key source of foreign investment
- Pakistan Railways is currently working to improve its services with the help of domestic and international partners
ISLAMABAD: Pakistani and United Arab Emirates (UAE) officials have agreed to expand bilateral cooperation between the two countries in the railways sector, the Pakistani railway ministry said on Monday.
The statement came after Railways Minister Hanif Abbasi’s meeting with UAE First Secretary to Pakistan Ahmed Al-Tahiri, at which both officials discussed strengthening bilateral relations across all sectors.
Abbasi highlighted that Pakistan Railways is continuously working to improve its services through long-term agreements with domestic and international suppliers, emphasizing that Pakistan offers a business-friendly environment and presents significant opportunities for investors.
“Both sides deliberated on various aspects of railway operations and mutual trade interests,” the Pakistani railways ministry said in a statement. “Both leaders agreed to continue and expand bilateral cooperation in the railway sector and other economic domains.”
Pakistan Railways faces many challenges like aging infrastructure, outdated tracks, locomotives and signal systems. Poor maintenance and a lack of modern safety measures often contribute to train derailments and accidents. Notable tragedies include the 2005 Ghotki train disaster, which killed over 130 people and the 2021 collision that left at least 65 people dead.
The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry. Both countries have stepped up efforts in recent years to strengthen their economic relations. In Jan. 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure.
During Monday’s meeting, the UAE first secretary emphasized the deep-rooted ties of brotherhood and mutual respect between the two nations, according to the Pakistani railway ministry.
“He reaffirmed the UAE’s commitment to further enhancing bilateral cooperation,” the ministry said.
Pioneering American AI firm to expand operations in Pakistan, finance ministry says
- Afiniti is a leading global AI provider in health care, telecommunications, travel, hospitality, insurance and banking industries
- Around 80 percent of Afiniti’s operational support team is based in Pakistan, with its customer base extending to Europe and other regions
ISLAMABAD: A pioneering American artificial intelligence (AI) company, Afiniti, has decided to expand its operations in Pakistan and recruit more talent in the South Asian country, the Pakistani finance ministry said on Monday.
Founded in 2005, Afiniti is a global AI provider in health care, telecommunications, travel, hospitality, insurance and banking industries as well as across multiple customer experience channels.
A delegation, led by Afiniti Chief Executive Officer Jerome Vaughan Kapelus, called on Finance Minister Muhammad Aurangzeb on Monday to discuss the company’s growth and continued investment in Pakistan.
“The meeting focused on discussions regarding Afiniti’s expanding business operations in Pakistan, the recruitment of talent and associated issues related to the taxation structure,” the Pakistani finance ministry said in a statement.
Kapelus highlighted that around 80 percent of Afiniti’s operational support team was based in Karachi, Lahore and Islamabad, with the company’s customer base extending to North America, Europe and other regions.
He praised Pakistani engineers, computer scientists and technologists, and said that his firm had an “exceptional” experience while recruiting people from Pakistan, according to the statement.
Pakistan is making steady progress in AI, with increasing investments in research, education and industry. Initiatives like the National Center for Artificial Intelligence are driving innovation, while startups explore AI applications in health care, finance and security sectors.
Despite challenges such as limited funding and infrastructure, Pakistan’s AI sector shows promise, with companies leveraging AI for data analytics, automation and customer engagement. As global AI adoption increases, the South Asian country aims to strengthen its position through policy support and technological advancements.
Aurangzeb appreciated Afiniti’s continued investment in Pakistan and assured the delegation of his government’s support in creating an enabling ecosystem for IT and agriculture sectors. He apprised the delegation of the Pakistan Crypto Council’s launch to regulate and integrate blockchain technology and digital assets into Pakistan’s financial landscape.
“The meeting concluded with a reaffirmation of the government’s commitment to supporting businesses like Afiniti, and the importance of continued collaboration between the public and private sectors to foster growth and development in Pakistan,” the finance ministry said.
‘Significant progress’ in IMF review triggers bull run at Pakistan stock market
- The KSE-100 index gained over 1,000 points to close the week’s first session at 116,199.59 points
- The index may rise to a record 123,000 points by June, if Pakistan clears IMF review, analyst says
KARACHI: Pakistan’s stocks rallied on Monday and rose 0.6 percent to the highest close in more than two months as the International Monetary Fund (IMF) gave some positive signals about its ongoing review of the South Asian country’s $7 billion loan program.
The benchmark KSE-100 index gained more than 1,000 points in the day trade before closing the week’s first session at 116,199.59 points, according to stock analysts.
Sana Tawfik, head of research at Arif Habib Ltd, said the stock market could reach 123,000 points by June if Pakistan sails through the first review of the IMF program.
“This is the highest since January 6,” Tawfik said, citing two main reasons for Monday’s bullish run.
“One is the IMF that issued a statement saying significant progress has been made [in talks with Pakistan] toward reaching the staff-level agreement. [Secondly], the overall sentiment is positive.”
The Washington-based lender put all speculation about its negotiations with Islamabad to an end, when its mission chief, Nathan Porter, said last week the two sides had made “significant progress” toward reaching an accord.
“The mission and the authorities will continue policy discussions virtually to finalize these discussions over the coming days,” Porter said on March 15.
The IMF team stayed in Pakistan for more than two weeks and reviewed the country’s economic reforms under its Extended Fund Facility as well as a fresh loan of about $1.5 billion to increase its climate resilience and sustainability.
“The IMF described the progress of the $7 billion loan program as ‘strong’ despite the absence of a staff-level agreement,” said Naveed Nadeem, a senior equity trader at Topline Securities Ltd., in a note to clients.
Monday’s rally was driven by Mari Energies, Pakistan State Oil, Oil & Gas Development Company Ltd. Lucky Cement and Searle Pakistan that collectively added 658 points to the benchmark index at the Pakistan Stock Exchange.
The equity market also gained some strength from reports of the government’s plan to resolve the longstanding issue of power sector debt, or the circular debt, according to analysts.
“This performance was influenced by the government’s initiatives to tackle Pakistan’s power sector debt,” Nadeem added.
