ISLAMABAD: The United Arab Emirates has confirmed financial support of $1 billion to Pakistan, the South Asian nation’s finance minister said on Friday, removing a key hurdle to securing a much-awaited bailout tranche from the International Monetary Fund (IMF).
The commitment is one of the IMF’s last requirements before approving a staff-level pact to release a tranche of $1.1 billion, delayed for months, that is crucial for Pakistan to resolve an acute balance of payments crisis.
“The State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities,” Finance Minister Ishaq Dar said on Twitter, referring to the central bank.
The pledge makes the UAE the third country, after Saudi Arabia and longtime ally China, to come to Pakistan’s assistance, as external financing is needed to fully fund the balance of payments gap for the fiscal year that ends in June.
“The UAE deal should be helpful because the IMF has been saying Pakistan should secure financing from ‘friendly’ nations,” said Seaport Global EM credit analyst Himanshu Porwal.
“It is still far from over though. The IMF is saying that they (Pakistan) are in breach of certain targets. The fiscal deficit for example is seen peaking at around 8.3 percent (of GDP), so almost double what they were expecting,” he added.
Pakistan’s bonds, which have slumped nearly 70 percent over the last year as the country’s troubles have mounted, climbed for a second day running on the confirmation. The rise was almost 5 percent for its bond with closest payment date – April 15 next year – taking it to almost 50 cents in the dollar, compared to 46 cents a few days ago.
On Thursday, the IMF’s managing director, Kristalina Georgieva, said the fund was also in talks with nations friendly to Pakistan to secure financial assurances vital for the program.
Last week, Saudi Arabia also told the IMF it would provide financing of $2 billion to Pakistan.
Pakistan’s foreign exchange reserves have fallen to cover barely a month of imports after the IMF funding stalled in November, hit by snags over fiscal policy adjustments after officials of the lender visited Islamabad in February for talks.
They formed part of a ninth review exercise on a bailout package of $6.5 billion agreed in 2019 whose resumption is critical for Pakistan to avoid risking default on external payment obligations.
POLICY AND FISCAL MEASURES
Pakistan had to complete actions demanded by the IMF, such as reversing subsidies in its power, export and farming sectors, hikes in the prices of energy and fuel, and a permanent power surcharge, among other measures.
These steps included jacking up its key policy rate to an all-time high of 21 percent, a market-based exchange rate, arranging for the external financing, and raising more than 170 billion rupees ($613 million) in new taxes.
The fiscal adjustments have already fueled Pakistan’s highest inflation ever, which climbed in March to more than 35 percent on the year.
A final issue to be resolved is a fuel pricing scheme meant to bring relief to Pakistan’s lower middle class and poor from crippling inflation. The IMF has asked how it will be funded.
The IMF program will disburse another tranche of $1.4 billion to Pakistan before it concludes in June.
Funds from the lender will also unlock other bilateral and multilateral financing for the cash-strapped country.
Neighboring China has rolled over $2 billion and refinanced another $1.3 billion in recent weeks.
On Friday, Pakistan’s central bank is set to receive a third and final disbursement of $300 million from the refinancing by the Industrial and Commercial Bank of China, Dar added.
Program loans from other multilateral agencies await completion of the IMF review, central bank governor Jameel Ahmad told investors in Washington at the spring meetings of the lender and the World Bank.
Measures such as a hike of 1,400 basis points in interest rates over the last 18 months have put the nation of 220 million on a path to macroeconomic stability, added Ahmad, who hoped for inflation to start decelerating over the next few months.
The government is pursuing a contractionary fiscal policy, with the primary balance in surplus so far compared to a deficit last year, he added.
Pakistan gets closer to IMF deal after UAE pledges $1 billion
https://arab.news/bjxhh
Pakistan gets closer to IMF deal after UAE pledges $1 billion
- The country’s dollar-denominated government bonds firm after the cash pledge by the Arab country
- Last week, Saudi Arabia also told the global lender it would provide $2 billion in financing to Pakistan
‘A flower snatched from us’: Family demands justice for murdered TikTok influencer
- Police say Sana Yousaf, who had over a million TikTok followers, was shot dead after rejecting a man’s advances
- Her killing has reignited debate over women’s safety in Pakistan, where gender-based violence remains widespread
KARACHI: The father of a teenage Pakistani TikTok influencer shot dead this week in Islamabad said on Wednesday he had wanted her to join the bureaucracy, but she had set her sights on the medical field to serve the people of Pakistan.
Sana Yousaf, 17, was shot dead at her home on Monday evening by another social media influencer, 22-year-old Umar Hayat, after she rejected his repeated advances, Islamabad Police chief Syed Ali Nasir Rizvi told reporters on Tuesday.
Originally from Chitral, around 400 kilometers north of the capital, Yousaf had 1.1 million followers on TikTok and over 600,000 on Instagram. Her videos ranged from lip-syncing to songs to food tastings and makeup tutorials.
The last clip posted to her TikTok account— a montage of her birthday celebration with friends— has already garnered 18.6 million views.
“My wish was for her to go on to do CSS [Central Superior Services],” Syed Yousuf Hasan, her father, told Arab News by phone from his ancestral village of Chuing in Chitral.
“But she insisted that she wanted to go into the medical field so that she could serve her country, Pakistan, and its people more,” he continued. “That was her dream.”
Yousaf was pursuing her goal of becoming a doctor and was enrolled in the Faculty of Science (FSc), a two-year pre-university qualification at the intermediate level.
“She was intelligent, talented and cheerful, and her presence would light up any gathering,” Hasan, a government officer, said. “She was like a son to me, like a brave son.”
Yousaf had been expected to travel to Chitral to celebrate Eid Al-Adha with her family. Hasan said she was especially close to him, her mother and her younger brother.
Her uncle, Syed Kausar Ali Shah, described her as an “exceptionally talented child” with a strong sense of purpose.
“She had a vision and used to say, ‘Our parents have invested in us, and we will repay that by serving our ancestral region.’”
‘NO FORGIVENESS’
On Wednesday, an Islamabad district and sessions court remanded Hayat in judicial custody for 14 days, according to a police spokesperson.
Yousaf’s murder has sparked renewed outrage over women’s safety in Pakistan. Activists and rights groups criticized social media users for victim-blaming the teenager as news of her killing broke.
Violence against women is frequently reported in Pakistan, especially in cases involving rejected marriage proposals or women active on social media platforms like TikTok.
Feminist groups and civil society activists have announced protests in several cities on Thursday to demand accountability for Yousaf’s murder.
Hasan, too, is seeking justice.
“If someone enters your home and kills, then there should be no forgiveness for that person,” he said. “Our demand is that he be punished publicly in the same way he treated us.”
Shah said the family and the people of Chitral were proud of Yousaf for standing her ground.
“She was our whole world,” he said, his voice breaking. “She was a flower that was snatched from us.”
US hails Pakistan role in India ceasefire, counterterrorism cooperation
- Natalie Baker says Pakistan-US partnership has boosted security in both countries and the region
- She praises Pakistan for choosing path to peace with India, hopes to expand ties ‘into new frontiers’
ISLAMABAD: The United States on Wednesday praised Pakistan’s leadership for helping broker a ceasefire with India and deepening counterterrorism cooperation, saying such efforts had made both nations and the wider region more secure.
The comments were made by US Chargé d’Affaires Natalie Baker at her country’s Independence Day reception in Islamabad.
The ceasefire was announced by President Donald Trump on May 10 following a four-day standoff between nuclear-armed India and Pakistan, during which the two sides exchanged missile, drone and artillery fire in one of the most intense military escalations in their recent history.
“Our collaboration helped broker a ceasefire between Pakistan and India, a reminder that when we stand together, even persistent tensions can find a path to peace,” Baker said in her remarks.
“I want to echo President Trump’s deep appreciation to Prime Minister Shehbaz Sharif and Chief of Army Staff Field Marshal [Asim] Munir for their leadership and commitment in choosing the path of peace,” she continued, calling their vision “transformative” while hoping to “take the US-Pakistan relationship into new frontiers.”
The US diplomat described the security and defense cooperation between the two countries as a pillar of bilateral partnership.
“For decades, our militaries have trained together, operated together and stood together to address shared threats, from terrorism to regional instability,” she continued. “Through joint exercises, capacity-building programs and military education exchanges, we’ve improved not only the security of our own nations but the safety of the wider region.”
“I want to acknowledge and thank our US and Pakistani military officials for your dedication, sacrifice and shared mission to make both our countries safer – a legacy we deeply honor,” she added.
Baker cited Pakistan’s recent capture and extradition of the Daesh militant responsible for the deadly 2021 Abbey Gate bombing in Kabul as a major milestone, saying it reflected growing operational trust between the two countries.
The attack killed 13 American service members and over 160 Afghan civilians during the US military withdrawal from Afghanistan.
“Thanks to the leadership and resolve of Pakistan’s military and security authorities, terrorists are being brought to justice,” she said.
“As President Trump noted in his March address to the US Congress, the bravery and wisdom of Pakistan’s leadership has made both of our nations more secure.”
The event marked the 249th anniversary of the US Declaration of Independence and was attended by Prime Minister Shehbaz Sharif and other senior Pakistani officials, diplomats, business leaders and civil society representatives.
Baker said the bilateral US-Pakistan relationship had grown stronger across multiple sectors, from security and trade to innovation and cultural exchange.
Pakistan condemns US veto of Gaza ceasefire bid, condemns storming of Al-Aqsa Mosque
- It criticizes UN inaction over ‘one of the most grave and sustained humanitarian catastrophes of our time’
- The foreign office also condemns Al-Aqsa storming as assault on the sanctity of a revered Muslim holy site
ISLAMABAD: Pakistan on Wednesday condemned Washington’s decision to veto a United Nations Security Council resolution demanding an immediate ceasefire in Gaza, describing it as tacit approval for the “continued annihilation” of Palestinians, while also denouncing the storming of Jerusalem’s Al-Aqsa Mosque by Israeli settlers this week.
The US blocked a draft resolution tabled by the 10 elected members of the Security Council, which called for an “immediate, unconditional and permanent ceasefire” between Israeli forces and Hamas, along with unhindered humanitarian access across the war-battered enclave.
The United States said it would not support any measure that did not include provisions for Hamas to disarm and withdraw from Gaza.
Reacting to the US decision, Pakistan’s Permanent Representative to the UN, Ambassador Asim Iftikhar Ahmad, regretted the council’s failure to adopt the resolution tabled by its ten elected members “to address one of the most grave and sustained humanitarian catastrophes of our time.”
“Let us be clear: this failure will not go down in records as a mere procedural footnote,” he told the council. “It will be remembered as complicity, a green light for continued annihilation, a moment where the entire world was expecting action, but yet again, this Council was blocked and prevented by one member from carrying out its responsibility.”
Calling the humanitarian situation in Gaza a collapse of both international law and moral responsibility, Ahmad cited figures of over 54,000 civilian deaths, including 28,000 women and girls and 18,000 children, with nearly 100 Palestinians reported killed in the last 24 hours alone.
He said the enclave had been “decimated,” with famine, disease and displacement spreading faster than aid could arrive.
The ambassador rejected arguments that called for delaying action to allow negotiations to proceed, questioning how much more “space filled with rubble, graves and the anguished cries of children” would be needed before meaningful intervention took place.
He reiterated Pakistan’s support for a ceasefire, unimpeded humanitarian access to Gaza and a negotiated two-state solution based on pre-1967 borders with East Jerusalem as the capital of a sovereign Palestinian state.
Ahmed said the international community had spoken clearly through the General Assembly and the International Court of Justice, while the Security Council remained “muzzled.”
AL-AQSA MOSQUE STORMING
In a separate statement issued in Islamabad, Pakistan’s foreign ministry condemned the storming of the Al-Aqsa Mosque compound in East Jerusalem by Israeli settlers this week, calling it a “direct assault” on the sanctity and legal status of one of Islam’s holiest sites.
According to media reports, dozens of Israeli settlers entered the mosque compound and performed Talmudic rituals, prompting condemnation from several Muslim-majority countries.
“These reprehensible acts, including violations at multiple entrances of the Mosque, are a direct assault on the sanctity, historical character, and legal status of the revered Muslim holy site,” the foreign ministry said, warning that such actions could ignite further unrest in an already volatile region.
The ministry also expressed concern over the continued targeting of civilians in Gaza, saying that nearly 100 Palestinians had been killed in the span of a single day, including people waiting at food distribution points.
It noted that Israeli forces were operating with impunity and called for their international accountability.
Reaffirming Pakistan’s position on the conflict, the ministry called for immediate steps to halt the violence, ensure access to humanitarian assistance and revive efforts toward a political resolution to the conflict.
Pakistan seeks IMF nod to sell surplus power to industry, agricultural sector
- Power minister says talks with IMF on 7.5 cent per unit tariff have been underway for the last six months
- He says 7,000 megawatts of surplus electricity will be supplied to industries and farms without subsidy
KARACHI: Pakistan is seeking the International Monetary Fund’s (IMF) approval to supply surplus power to the industrial and agriculture sectors at an unsubsidized tariff of seven to 7.5 cents per unit, the country’s power minister, Awais Leghari, said, according to an official statement on Wednesday.
The once energy-deficient South Asian nation now boasts 7,000 megawatts of surplus electricity that it began generating with Beijing’s help under the multibillion-dollar China-Pakistan Economic Corridor (CPEC), a flagship project of President Xi Jinping’s Belt and Road Initiative.
“We have been consulting with the IMF for the past six months to approve the scheme,” Leghari told a consultative meeting held in the federal capital Islamabad regarding Pakistan’s transition from solar net metering to a net billing system.
The government plans to generate as much as 60 percent of its power from renewable energy sources like solar, wind, hydropower and nuclear energy over the next five years to cut the cash-strapped country’s oil import bill.
“There is no direct financial pressure on us [from the IMF],” the minister said, adding the move would balance the nation’s supply and demand of electricity, strengthen the power system and benefit consumers.
The Washington-based lender approved a $7 billion loan for Pakistan last year to help support export-led growth and is reviewing the government’s budgetary plans for FY26, starting in July.
According to the National Accounts Committee, Pakistan’s economy is expected to expand by 2.7 percent during the outgoing FY25 due to lackluster agricultural and industrial performance.
The power minister said the government, since June, has provided cross-subsidies of Rs 174 billion ($617 million) to industries, a measure that brought down industrial tariffs by 31 percent and significantly increased consumption.
Under its ongoing energy reforms, the minister said, the government is considering various proposals, including changing the current solar net metering system into a more effective, transparent and sustainable model.
“The government is not abolishing net metering,” he continued, adding that its scope had expanded so significantly that it was now seriously impacting the national grid, thus requiring timely intervention.
In the fast-solarizing Pakistan, net metering allows consumers to utilize the electricity generated by their in-house solar systems and send the surplus to the national grid at an agreed rate.
Beauty at a price: Rajanpuri Nukra goats steal the show at Islamabad’s Eid cattle market
- Native to southern Punjab, this prized breed attracts customers with large size, muscular build, striking white coats
- Breed highly prized for meat production, popular choice for Eid Al-Adha sacrifices, with some selling for over $7,000
ISLAMABAD: With their snow-white coats, drooping pink ears and regal built, Rajanpuri Nukra goats are turning heads and emptying wallets at Islamabad’s bustling Eid Al-Adha cattle market this year.
A strain of the Beetal goat native to the Rajanpur region of Pakistan’s Punjab province, these goats are known for their large size, muscular build and striking white coat. They are highly prized for meat production and are a popular choice for Eid Al-Adha sacrifices, with some selling for as much as Rs2 million ($7,140) this season.
At Islamabad’s cattle market on Bhatta Chowk earlier this week, many people gathered around the goats to admire their appearance and snap pictures, while others negotiated deals.
“We have come here from Rajanpur as people in Islamabad and Rawalpindi prefer Rajanpuri goats over other breeds due to their white and pink coloration and impressive height,” said merchant Hamza Ali, adding that he had brought 20 of the prized animals to the market and sold most of them within four days.
“We’re getting good prices for them here. Of the 20 goats we brought, one sold for Rs2 million last night.”
On an average, traders at the market have been selling the Rajanpuri goats for anywhere between Rs200,000 and Rs2 million ($715 to $7,140), a number of merchants said.
Highlighting the care involved, Muhammad Umair, a cattle trader, said the goats were nurtured from birth, referring to them as a “purebred line.”
“We divide them into two groups. Those with good height and large size receive a special diet that includes wanda, choker, desi ghee and other nutritious ingredients,” he told Arab News as he petted one of his animals.
Goats similar in size to regular breeds were available at lower prices but still higher than other strains.
“It has large pink ears, white eyes, and a pink nose, along with a pure white coat, which makes it highly attractive to buyers,” Umair added.
Muhammad Bilal, a 23-year-old student from Islamabad, said he wanted to buy a Rajanpuri goat because of its white coat and long ears.
“Although the price is a bit higher, we will still buy it because we really like it,” he told Arab News.
Another customer Ilyas Khan, 40, expressed frustration over the high prices of the breed, saying they were unaffordable for most visitors at the market.
“My children took pictures with them,” Khan, a businessman, said, “but these are out of our reach as even the smallest ones are starting at Rs150,000 ($535), which is too much.”
