Pakistan jacks up gas, electricity tariffs to fulfil IMF conditions amid virtual talks

In this file photo taken on November 7, 2018, a Pakistani employee of the state-run Islamabad Electric Supply Company (IESCO), takes a meter reading with his smartphone at a commercial building in Islamabad. (Photo courtesy: AFP/File)
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Updated 13 February 2023
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Pakistan jacks up gas, electricity tariffs to fulfil IMF conditions amid virtual talks

  • Government raises price of natural gas by up to 124 percent for all domestic and commercial consumers
  • Islamabad will receive a tranche of $1.1 billion from IMF if it “successfully completes all prior actions”

ISLAMABAD: The Pakistan government on Monday jacked up the prices of electricity and gas as virtual negotiations started with the International Monetary Fund (IMF) in a bid to revive a stalled bailout program and unlock critical funding for the cash-strapped South Asian nation.

An IMF mission visited Islamabad from January 31 to February 9 but departed without a deal after 10 days of talks, leaving Pakistan in desperate need of funds as it battles a wrenching economic crisis. Talks have now resumed online and center around reaching an agreement on a reform agenda under the country’s $6.5 billion bailout program, which was signed in 2019. An agreement on the ninth review of the program would release over $1.1 billion.

On Monday, to complete prior actions as per IMF conditionalities, the government jacked up the price of natural gas by up to 124 percent for all domestic and commercial consumers. This price hike will also be applicable to the power sector and fertilizer and CNG stations across the country.

The government has already approved a significant increase in electricity prices by up to Rs15.5 per unit for all residential and commercial consumers and exporters.

“We are hopeful to clinch a staff-level-agreement with the IMF by the end of this week,” a senior official of Ministry of Finance told Arab News on condition of anonymity as he was not authorized to speak to the media about the issue.

“Duration (of the talks) cannot be confirmed but we intend to wrap these up at the soonest,” Finance Secretary Hamed Yaqoob Sheikh told media.

Islamabad is looking to receive a tranche of $1.1 billion from the international lender if it “successfully completes all prior actions” before reaching the staff level agreement.

The government has already received a memorandum of economic and financial policies (MEFP) from the IMF listing all prior actions and demands that Pakistani authorities need to implement for the revival of the bailout program.

The talks come as Pakistan faces a crippling dollar liquidity crunch with its official foreign currency reserves currently at $2.916 billion, barely enough to cover three weeks of imports. A resumption of the IMF program would also unlock other avenues of funding for Pakistan.

The dollar shortage has forced the government to restrict even the import of essential items, including medical equipment and industrial raw material, which has had a negative impact on Pakistan’s overall economy. Industries such as steel, textiles and pharmaceuticals are barely functioning, forcing thousands of factories to close and deepening unemployment.

Economists said apart from the fulfilled prior actions, the government would still have to “do much more” to be able to get the latest loan tranche, including imposing new taxes, reopening imports and clearing billions of rupees of circular debt of the energy sector.

“The government will be sharing all the data with the IMF representatives during the virtual talks to show the progress made on the prior actions,” Dr. Khaqan Hassan Najeeb, a former economic adviser to the government, told Arab News.

“The biggest challenge for the government so far is to arrange the external financing of $7-8 billion from different sources including the friendly countries to boost its foreign exchange reserves.”


China expresses interest in investing in seed development, precision farming in Pakistan, ministry says

Updated 29 July 2025
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China expresses interest in investing in seed development, precision farming in Pakistan, ministry says

  • The agriculture sector contributes nearly a quarter of Pakistan’s gross domestic product and employs 37 percent of the national labor force
  • A first batch of 300 Pakistani graduates this month also completed training in irrigation, seed production and prevention of post-harvest losses

KARACHI: A high-powered Chinese delegation has expressed “keen interest” in making investments in seed development, precision farming, smart irrigation systems and agro-processing in Pakistan, the Pakistani national food security ministry said on Tuesday.

The Chinese delegation, comprising senior officials, agricultural scientists, and private sector representatives, met with National Food Security Minister Rana Tanveer Hussain to explore enhanced cooperation in the field of agriculture.

The two sides discussed joint strategies to modernize Pakistan’s agricultural sector and to initiate collaborative efforts in research, innovation and investment, with the delegation highlighting China’s agricultural advancements and willingness to transfer expertise.

“Through collaboration with China, Pakistan can introduce scientific research, climate-resilient practices, and modern technology that will uplift the productivity of local farmers and ensure long-term food security,” Hussain told the Chinese delegates, stressing the urgent need to formalize agreements between Pakistani and Chinese agricultural institutions.

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. However, a fast-growing population, climate change and poor resource management have greatly impacted Pakistan’s crops in recent years, prompting officials to ponder alternative ways to enhance production.

Pakistan also decided in June last year to send nearly 1,000 graduates to China to train in methods and techniques to enhance Pakistani agricultural production. Of them, around 300 Pakistani graduates this month completed training in water-saving irrigation, seed production, animal husbandry, agriculture production and prevention of post-harvest losses in China’s Shaanxi province.

During Tuesday’s meeting with Chinese delegates, Hussain proposed signing multiple memorandums of understanding (MoUs) focusing on joint research in areas such as biotechnology, crop improvement, pest control and sustainable agricultural practices, according to the national food security ministry.

He also underscored the importance of establishing long-term frameworks for the exchange of scientists, technical training, and capacity-building initiatives to strengthen Pakistan’s agricultural institutions.

“Hussain noted that this partnership must go beyond investment and move toward structured collaboration in research and development,” the ministry said.

“The Chinese delegation appreciated the Minister’s strategic vision and assured full support from their government and private sector to contribute to Pakistan’s agricultural transformation… The meeting concluded with a shared commitment to elevate the Pakistan-China partnership in agriculture to a new level, ensuring tangible outcomes in the coming months through structured planning and implementation.”


German biathlete Dahlmeier injured after mountaineering fall in Pakistan, reports say

Updated 29 July 2025
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German biathlete Dahlmeier injured after mountaineering fall in Pakistan, reports say

  • The accident occurred on Monday when Dahlmeier was hit by a landslide in Hushe Valley in Gilgit-Baltistan region
  • Pakistan’s northern mountainous regions have experienced heavy flooding and landslides, killing several tourists

BERLIN: German biathlete and double Olympic champion Laura Dahlmeier has been at least seriously injured in a mountaineering accident in Pakistan, German media reports citing her management and a Pakistan government spokesperson said on Tuesday.

The accident occurred on Monday when Dahlmeier was hit by a landslide in Hushe Valley in the northern mountain range in Gilgit-Baltistan, said spokesperson Faizullah Faraq.

Germany’s ZDF broadcaster reported that no emergency response had so far reached her.

But Faraq said Dahlmeier, according to reports from the remote valley, was taken away by locals from the landslide site.

One of her companions, identified as Kraus Marina Eva, was still stuck at the site, he said.

Dahlmeier retired from the sport in 2019, aged 25, a year after becoming the first female biathlete to achieve a sprint and pursuit double at the same Olympics.

Her management did not immediately respond to an emailed request for comment from Reuters.

ZDF said that a helicopter overflight on Tuesday had found no signs of life.

The rescue operation is under way with the cooperation of the Pakistan army, Faraq said, adding that bad weather meant a helicopter had been unable to reach the site.

The country’s northern mountainous regions have experienced heavy flooding and landslides, killing several local tourists during the current monsoon spell of rains.

Flooding and other rain-related accidents have killed 288 people in Pakistan since the monsoon season began in late June, says the country’s National Disaster Management Authority.


India’s Modi denies third party brokered peace with Pakistan

Updated 29 July 2025
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India’s Modi denies third party brokered peace with Pakistan

  • The fighting in May brought the rivals close to another war, but Trump announced a ceasefire between them before the two countries did
  • Soon, opposition parties in India started raising questions about third-party mediation between the foes, a claim New Delhi has always denied

NEW DELHI: Prime Minister Narendra Modi on Tuesday denied that any world leader pushed India to stop fighting Pakistan during their recent conflict, after repeated claims by US President Donald Trump that he had brokered peace.

The South Asian rivals fought an intense four-day conflict in May that left more than 70 people dead on both sides before Trump announced a ceasefire between the nuclear-armed neighbors.

“No world leader asked us to stop the operation,” Modi told parliament during a debate on “Operation Sindoor,” the military campaign launched against Pakistan in May.

Modi did not name Trump in his speech.

The Indian prime minister also claimed that it was Pakistan that pleaded with India to stop fighting after feeling the “heat of our attacks.”

The conflict was sparked by an April attack on tourists by gunmen in Indian-administered Kashmir that left 26 men dead, mostly Hindus.

India accused Pakistan of backing the attackers, a charge Islamabad denied.

Trump has claimed numerous times that he brokered peace between the rivals, including most recently on Monday.

“If I weren’t around, you’d have, right now, six major wars going on. India would be fighting with Pakistan,” Trump said during his visit to Scotland.

Modi’s assertion came after Rahul Gandhi from the opposition Congress party challenged the premier to say “inside the parliament that Donald Trump is lying.”

Earlier Tuesday, home minister Amit Shah told lawmakers that three Pakistani gunmen involved in the attack in Indian-administered Kashmir were killed during a military operation on Monday.

Shah told parliament that all three were Pakistani nationals and identified two of them as members of Lashkar-e-Taiba, a UN-designated terrorist group based in Pakistan.

Muslim-majority Kashmir has been divided between India and Pakistan since their independence from British rule in 1947, and the neighbors — who both claim the region in full — have fought two wars and several conflicts over its control.

The fighting in May brought the rivals close to another war, but Trump announced a ceasefire between them before the two countries did.

Soon, opposition parties in India started raising questions about third-party mediation between the foes, a claim New Delhi has always denied.


CM Gandapur to lead Peshawar rally as Imran Khan’s party finalizes Aug. 5 protest plans

Updated 29 July 2025
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CM Gandapur to lead Peshawar rally as Imran Khan’s party finalizes Aug. 5 protest plans

  • The federal, Punjab governments have repeatedly warned in recent weeks they would not tolerate any form of violence in protests
  • Political analysts voice doubts about the ability of Khan’s party to stage effective protest, citing ‘internal fragmentation, leadership crisis’

ISLAMABAD: Jailed former prime minister Imran Khan’s party said on Tuesday that it has finalized all preparations for a “strong and large” protest on Aug. 5, with Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur set to lead the main rally in Peshawar.

Khan’s Pakistan Tehreek-e-Insaf (PTI) party announced a 90-day “do or die” protest movement on July 13, saying it would peak on August 5, the second anniversary of Khan’s arrest.

The PTI has staged several protests in recent years to secure Khan’s release and demand an audit of the February 2024 general election, with a number of demonstrations resulting in clashes with law enforcers and in some cases paralyzing the capital Islamabad for days.

Pakistan’s election authorities deny the allegation of election irregularities, while the federal and Punjab governments have repeatedly warned in recent weeks that they would not tolerate any form of violence, accusing the PTI of trying to derail efforts for sustainable economic growth.

“We have completed our preparations and instructions have been issued to all district-level leaders to mobilize the public,” CM Gandapur told media on Tuesday, adding the party would move forward with its protest plan.

“I will lead a historic and the largest rally in Peshawar and other districts in the province will also arrange their rallies.”

Arab News reached out to the information and interior ministries in Islamabad and Punjab for comments on the government’s strategy to respond to the protest call but did not receive a response by the time of filing of this story.

Speaking to Arab News, Syed Zulifkar Bukhari, a close Khan aide, lamented arrests of supporters and disqualification of PTI lawmakers ahead of the protest, criticizing the Election Commission of Pakistan (ECP).

“The ECP has been biased toward the PTI since the times when polls were conducted and well before too. Disqualification [of lawmakers] on the basis of false charges and politically motivated cases will cause more unrest in the country, in an already highly volatile situation.”

Pakistan’s election regulator this week disqualified PTI Senator Ijaz Chaudhry, Member of National Assembly Muhammad Ahmad Chattha, and Member of Punjab Provincial Assembly Ahmad Khan following their convictions by an anti-terrorism court in cases relating to May 9, 2023 protests, when hundreds of Khan supporters attacked government and military installations over the ex-premier’s brief arrest on graft charges.

Khan’s party termed the ECP’s decision “biased,” saying its lawmakers were not even issued notices before disqualification. In a statement, the ECP rejected the allegations of biasness, saying the three lawmakers had been convicted by the anti-terrorism court and their sentences were still in effect.

Bukhari expressed hopes that a large number of people would respond to their call for protest on Aug. 5.

“We are hopeful this time not only a large gathering from across the country will stage the protest to record their concern over illegal incarceration of former prime minister Khan and [his wife] Bushra Bibi, but also that the cornered quarters will heed to the solidarity at display,” he said.

But analysts were skeptical of an impressive show of political strength by Khan’s party, amid “internal fragmentation.”

“I still hope that sanity will prevail and PTI will call off the protest on August 5,” Ahmed Bilal Mehboob, president of the Islamabad-based think tank Pakistan Institute of Legislative Development and Transparency (PILDAT), told Arab News.

“It may not be a very impressive show for a variety of reasons and the process of fragmentation in the party may be hastened if it is not a huge affair.”

Reports of rifts within the PTI emerged after CM Gandapur announced the 90-day protest drive against the government on July 13. The protest call appeared to contradict an earlier call for a nationwide protest posted on Khan’s official X account, set to culminate on August 5.

Speculation about differences within the party further grew after PTI Punjab’s chief organizer Aliya Hamza Malik voiced concerns on X about a lack of clarity around the protest campaign, questioning the origins of the 90-day plan and seeking details on the party’s strategy to secure Khan’s release.

Dr. Huma Baqai, another political commentator, said a possible government crackdown would deter mass mobilization and affect public participation in the protest.

“The PTI is too fragmented and facing a leadership crisis, yet it still evokes insecurities within the sitting government and perhaps even the establishment, leading to numerous arrests that are likely to have an impact,” she told Arab News.

“Interestingly, Jamaat-e-Islami has announced a rally for Palestine and Kashmir on the same day, a move seen as aimed at creating both confusion and diffusion.”


Pakistan PM offers condolences to China over deadly floods and landslides

Updated 29 July 2025
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Pakistan PM offers condolences to China over deadly floods and landslides

  • At least 30 people have been killed as torrential rains triggered devastation across northern China
  • Sharif says Pakistan has been facing similar challenges and stands in solidarity with Chinese people

ISLAMABAD: Prime Minister Shehbaz Sharif expressed deep condolences to China on Tuesday following a wave of deadly floods and landslides that have killed dozens and displaced thousands across northern regions of the country, including Beijing and Hebei province.

The message came as torrential rains overwhelmed parts of northern China, dumping record volumes of water, triggering landslides and forcing mass evacuations.

At least 30 people have been killed, according to Chinese state media, with more fatalities feared as rescue operations continue.

Beijing and surrounding provinces have witnessed some of their worst flooding in years, with entire villages cut off and widespread infrastructure damage reported.

“We are deeply saddened by the tragic loss of lives and displacement caused by the recent torrential rains and landslides in China,” Sharif said in a statement posted on social media. “On behalf of the people of Pakistan as well as on my own behalf, I extend our heartfelt condolences to the bereaved families and all those affected.”

Sharif noted that Pakistan itself has suffered from extreme weather in recent years and understood the hardship faced by Chinese communities.

“We fully understand and empathize with the hardship that our Chinese brothers and sisters are enduring,” he added. “We are confident that the resilience and unity of the Chinese people, under the resolute leadership of President Xi Jinping, will see them through this difficult time.”

Sharif said the people of Pakistan stood in solidarity with the people of China, adding they were “bound together through thick and thin, in the spirit of iron clad brotherhood.”

China and Pakistan share a longstanding strategic partnership, with close cooperation in defense, infrastructure, and economic development.

Beijing has invested tens of billions of dollars in Pakistan through the China-Pakistan Economic Corridor (CPEC), a flagship project under the Belt and Road Initiative to enhance regional connectivity.