Pakistan presents budget for next fiscal year as economy continues to melt down

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Updated 09 June 2023
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Pakistan presents budget for next fiscal year as economy continues to melt down

  • The South Asian country is facing an acute balance-of-payment crisis, currency devaluation and inflation at record 38%
  • On Thursday, Finmin Ishaq Dar said the outgoing year was ‘a difficult year for economy’ and posed ‘extreme challenges’

KARACHI: Pakistani finance authorities will present on Friday federal budget for the next fiscal year 2023-24, the state media reported, as the South Asian country is likely to post a Gross Domestic Product (GDP) growth of 0.29 percent in the fiscal year ending June 30.

Pakistan missed the GDP target by a huge 4.7 percent this fiscal year, which is well below the target of 5 percent set last year, according to the country’s economic survey that highlights the trend of macro-economic indicators, development policies and strategies as well as sectoral achievements of the economy.

The cash-strapped country is due to present its budget at a time when it is in desperate need of bailout funds from the International Monetary Fund (IMF) to shore up its foreign currency reserves that are barely enough to cover a month’s imports.

“Finance Minister Ishaq Dar will present the budget in the National Assembly scheduled to meet at four in the evening at the parliament house in Islamabad,” the state-run Radio Pakistan broadcaster reported on Friday.

At a pre-budget presser on Thursday, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.

“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms, the fiscal reforms … we had to do the pending actions,” Dar told reporters.

“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”

Islamabad has been hoping to have $1.1 billion of the funds released since November, but the IMF has insisted on a number of conditions being met before it makes any more disbursements.

On Thursday, an IMF official said Pakistan had to satisfy the lender on three counts, starting with a budget due on Friday, before its board reviews whether to release at least some of the $2.5 billion still pending under the $6.5 billion program expiring on June 30.

“As communicated to the authorities, there can be one remaining Board meeting under the current EFF at end-June,” Perez Ruiz said in an email response to Reuters.

“To pave the way for a final review under the current EFF, it is essential to restore the proper functioning of the FX market, pass a FY24 Budget consistent with program objectives, and secure firm and credible financing commitments to close the $6 billion gap ahead of the Board.”

The IMF had tasked Pakistan with securing external financing commitments for $6 billion from other sources, but so far it has only obtained commitments for $4 billion, mostly from Saudi Arabia and the United Arab Emirates.

Under pressure to shift to a more market-determined exchange rate regime and shut down an unofficial currency market, Pakistan removed daily limits on fluctuations earlier this year.

The country is already reeling from an economic crisis with inflation reaching a record 37.97 percent in May.

The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, while its central bank has also raised policy interest rates to a record 21 percent.

The IMF has so far conducted just eight of the 11 reviews that were to take place during the three-year program. The last review took place in August last year.


‘Everything came crashing down’: US visa freeze shatters hopes of young Pakistani students

Updated 4 sec ago
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‘Everything came crashing down’: US visa freeze shatters hopes of young Pakistani students

  • Washington has temporarily suspended student and exchange visa appointments to expand social media vetting
  • Pakistani students say the move threatens their academic year and could cause them significant financial losses

ISLAMABAD: For many in Pakistan, the US visa freeze has felt like a devastating setback after years of academic effort and ambition, affected applicants and an education consultant said on Friday.

The suspension, ordered by US Secretary of State Marco Rubio earlier this week, halts new student and exchange visa appointments worldwide and is part of a broader policy under President Donald Trump’s administration to intensify screening of foreign nationals, including expanded social media vetting.

US embassies have been instructed to pause interviews while new guidelines are being finalized, as officials in Washington say the goal is to identify potential security risks amid a rise in campus activism following Israel’s war in Gaza, which has sharply polarized student opinion.

Trump’s critics argue, however, the measures are discriminatory and risk undermining access to American higher education for bright students from developing countries — long considered a cornerstone of the US advantage in global research and innovation.

“I had always dreamed of pursuing higher education in the United States and after months of preparation, hard work and dedication, I finally got accepted into New York University,” Mohammad Ibrahim, a student from Lahore, told Arab News over the phone.

“But just as I was preparing for the next big chapter of my life, everything came crashing down,” he continued, adding that due to the sudden visa ban imposed by the Trump administration, his plans have been put on hold.

Ibrahim said despite getting admission after meeting all the university requirements, he was now stuck in an uncertain situation, with nothing to do but wait, hope and keep trying to move forward, even when everything had suddenly gone beyond his control.

“It’s disappointing,” he said. “An entire year of my life feels like being wasted.”

Inayah Murtaza, an exchange program candidate from the same city, said the new US policy had led to delays in visa interviews and a ban on the exchange student program, leaving her and many others devastated.

“American higher education system provides excellent opportunities. However, the recent policies by the Trump administration are extremely devastating,” she said, adding the ban had hurt her both emotionally and financially.

For Malik Zalaid Hassan, from Sheikhupura, who had secured admission to study artificial intelligence at the University of California, the visa suspension was a huge setback.

“I won’t get my money back… I just lost a ton of money,” he told Arab News, emphasizing he had already paid thousands of dollars in tuition and housing fees.

“I really hope America does something about this and I really hope it changes because this has an impact on a lot of people,” he continued.

Mohammad Ayyan Akhtar, a counselor at UniGrad, an education consultancy firm in Lahore, said the visa appointments ban had placed many students in a heart-wrenching situation.

“It includes their financial losses, and on top of everything, their academic loss is a big concern,” he said.

“The Trump administration should lift [the ban] as early as possible to save the loss of hundreds of Pakistani students [of their] academic year,” he added.


Trump says Pakistani representatives coming to US next week for trade talks

Updated 15 min 53 sec ago
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Trump says Pakistani representatives coming to US next week for trade talks

  • Pakistan faces a potential 29% tariff on its exports to the United States due to a $3 billion trade surplus with world’s biggest economy
  • Trump said he would have no interest in making a deal with the South Asian country or its neighbor, India, if they were to engage in war

WASHINGTON: US President Donald Trump said on Friday representatives from Pakistan are coming to the United States next week as the South Asian country seeks to make a deal on tariffs.

Pakistan faces a potential 29 percent tariff on its exports to the United States due to a $3 billion trade surplus with the world’s biggest economy, under tariffs announced by Washington last month on countries around the world.

Trump said he would have no interest in making a deal with the South Asian country or its neighbor, India, if they were to engage in war with each other. The two nuclear-armed rivals used fighter jets, missiles, drones and artillery in four days of clashes this month, their worst fighting in decades.

“As you know, we’re very close making a deal with India,” Trump told reporters at Joint Base Andrews after departing Air Force One.

Indian Trade Minister Piyush Goyal visited Washington recently to advance trade talks, with both sides aiming to sign an interim agreement by early July.

India faces 26 percent tariffs on shipments to the US.

Reuters reported last week that India is likely to allow US firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with Washington.


Police in Islamabad briefly detain senior rights activists protesting Israel’s war in Gaza

Updated 30 May 2025
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Police in Islamabad briefly detain senior rights activists protesting Israel’s war in Gaza

  • Tahira Abdullah and Samina Khan were detained by police outside the Islamabad Press Club
  • No charges were specified, and both rights activists were released by the police later in the day

ISLAMABAD: Two senior human rights activists, Tahira Abdullah and Samina Khan, were briefly detained by police on Friday outside the Islamabad Press Club for ostensibly protesting against Israel’s war in Gaza before their release later in the day.

A video purportedly showing their arrest depicts them wearing Palestinian flags and keffiyeh scarves as they are escorted away by women police personnel, along with a man and three youths.

Abdullah can be seen asking a policeman why they are being taken away. She then tells the female police personnel not to push her and Khan, and requests that they be moved to a separate car instead of the police truck.

“They [Abdullah and Khan] were illegally picked up from outside the Islamabad Press Club premises and taken away to the women police station in G-7,” lawyer Hadi Ali Chattha told Arab News.

“They aren’t allowed to meet their counsel to discuss options,” he continued. “Station House Officer (SHO) Misbah Waqas is refusing to let their families and counsel meet them.”

Police did not specify any charges against the two rights activists. Islamabad police spokesperson Dr. Taqi Javed also did not respond to a query from Arab News in this regard.

Last year in May, Abdullah was among the protesters who staged a demonstration at Islamabad’s D-Chowk in support of the Palestinians. She had urged everyone to come out in large numbers, saying the Pakistani government would not pay heed to their demands otherwise.

The Islamabad Press Club is a key venue in Pakistan’s capital where journalists and activists hold press conferences and protests. It serves as a platform for raising awareness and drawing media attention to political and social issues. Protesters use it to voice demands and push for government action.

A video of Abdullah and Khan that was later shared by lawyer Chattha shows them stepping out of the police precinct after being released, chanting the slogan, “Free, free Palestine.”

Pakistan does not recognize Israel and supports an independent Palestinian state based on pre-1967 borders, with Jerusalem as its capital.


Farhan and Abrar star as resurgent Pakistan win Bangladesh series

Updated 30 May 2025
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Farhan and Abrar star as resurgent Pakistan win Bangladesh series

  • This is Pakistan’s first Twenty20 home series win since December 2021
  • Pakistan also won the first match against Bangladesh by 37 runs in Lahore

LAHORE: Opener Sahibzada Farhan notched his maiden half century and spinner Abrar Ahmed grabbed three wickets to guide Pakistan to another convincing 57-run win over Bangladesh in Lahore on Friday.

Farhan smashed a 41-ball 74 and Hasan Nawaz unbeaten 51 off 26 balls to help the home team post 201-6 before Abrar grabbed 3-19 to keep Bangladesh to 144-9 in 19 overs, with the last man Shoriful Islama unable to bat due to injury.

Pakistan, who won the first match by 37 runs at the same venue, take an unassailable 2-0 lead with the final match on Sunday, also in Lahore.

The win also gives a kickstart to Pakistan’s new white-ball head coach Mike Hesson appointed earlier this month to stem a slide which saw them win just three of their last 13 T20s before this series.

Bangladesh raced to 32 in the first two overs but openers Parvez Hossain (eight) and Tanzid Hasan (19-ball 33 with five boundaries and a six) fell within two runs of each other.

From 46-2, Bangladesh slumped to 56-5 with Abrar dismissing Tohid Hridoy (five) and Jaker Ali (nought) off successive deliveries while pacer Hasan Ali had skipper Litton Das for six.

Tanzim Hasan, who topscored with a career best 31-ball 50, and Mehidy Hasan Miraz, 23 off 17 balls, added 33 for the eighth wicket but it was too late, too little.

Pakistan’s first T20 home series win since December 2021 delighted skipper Salman Agha.

“It feels good, I didn’t know it was three and a half years ago that we won a series at home,” said Agha of Pakistan’s last win over the West Indies at home.

“This is what I want, we should always have players who can come in and replace anyone, any captain would love that,” said Agha, praising the new coach.

“It’s been a few days and we are loving the environment, credit to Hesson. He has managed to gel the team really well and built a nice environment, he has done that very quickly.”

Bangladesh skipper Litton Das rued loss of wickets in cluster.

“There were back-to-back wickets and in cricket you have to follow basics, sometimes you don’t follow the basics that cost you,” said Das. “We still have a game to comeback strongly.”

Earlier, Pakistan posted a consecutive 200-plus total with Farhan and Nawaz ably supported by Mohammad Haris whose 41 came off 25 balls after the home team won the toss and batted.

After losing fellow opener Saim Ayub to a run out for four, Farhan put the innings on a solid footing with a 103-run second wicket stand of 54 balls with Haris.

The Farhan-Haris duo smashed Bangladesh bowlers to all corners, with Farhan hitting six sixes and four boundaries while Haris’s knock had two sixes and four boundaries.

Farhan was finally caught by Litton Das off leg-spinner Rishad Hossain in the 12th over. His previous best of 39 was against Australia in Dubai in 2018.

Nawaz gave a final polish to the innings by hitting three sixes and two boundaries as Pakistan added 40 in the last five overs.

Agha fell for 19 and Shadab Khan made seven.

For Bangladesh Tanzim finished with 2-36 and Hasan Mahmud took 2-47.


Senior Pakistani official killed in Balochistan as government blames ‘Indian-backed’ militants

Updated 30 May 2025
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Senior Pakistani official killed in Balochistan as government blames ‘Indian-backed’ militants

  • Balochistan CM says Hidayatullah Buledi was shot dead when he tried to protect civilians in a local market
  • Pakistan’s PM and army chief say the country’s war will continue until militant violence is fully eradicated

KARACHI: The Pakistani government on Friday condemned the killing of a senior administration official in a gun attack in the volatile southwestern Balochistan province, with top officials attributing the assault to what they described as “Fitna Al-Hind” — or Indian-sponsored proxies — fueling unrest in the region.

Additional Deputy Commissioner (ADC) Hidayatullah Buledi was shot dead by armed militants in the Sorab area as he reportedly intervened to protect civilians, including women and children, during an armed assault in a local market.

In a post on social media platform X, the province’s chief minister, Sardar Sarfraz Bugti, said the attack was carried out by militants affiliated with the Baloch Liberation Army (BLA), a separatist group banned in Pakistan, which he said was backed by the neighboring Indian state.

“Despite holding the office of ADC Revenue, when terrorists of Fitna Al-Hind BLA opened fire on women and children in Sorab today, Hidayatullah Buledi honored the traditions of Baloch valor and sacrificed his life in defense of the Pakistani state,” he said in the post while praying for the deceased officer and his family.

Prime Minister Shehbaz Sharif also issued a statement, condemning the “cowardly attack” on a local bank, civilians and public officials in Sorab and paying tribute to Buledi for defending his community.

“The entire nation stands with the family of Shaheed [martyr] Hidayatullah Buledi,” he said, vowing to bring the perpetrators to justice.

“Their attack reflects a mindset that is openly hostile to Pakistan’s progress and stability in Balochistan,” he added.

The prime minister also praised the efforts of the Pakistani armed forces and reiterated the government’s commitment to eradicating militant violence from the country.

Pakistan’s army chief, Field Marshal Asim Munir, who was in Quetta during the day to address officers at the Command and Staff College, also promised to take Pakistan’s war against militancy to its “logical conclusion.”

“The nation’s fight against terrorism will be driven to a logical conclusion — success against all forms and manifestations of terrorism,” the military’s media wing, Inter-Services Public Relations, quoted him as saying in a statement.

Balochistan, Pakistan’s largest but least developed province, has long been the site of a separatist insurgency, with militants blaming the state for exploiting the mineral resources of the region without doing much for the local population.

The government has repeatedly denied the allegation, pointing to the infrastructure and livelihood projects it has been carrying out in the area for years.

Pakistan has also frequently accused India of funding and arming militant groups, a charge New Delhi denies.