KARACHI: Pakistan’s accumulated debt stock rose by 7.6 percent to $108.53 billion in 2020 from $100.83 billion a year before that, said a study conducted by the World Bank on Monday.
The global lending agency said its report, International Debt Statistics 2022, showed the debt vulnerabilities of low-income countries had significantly increased as a result of the COVID-19 pandemic.
Pakistan was among the top 10 countries that became eligible for debt relief under the Debt Services Suspension Initiatives announced by the G20 creditors after the emergence of the pandemic.
Data presented in a tabulated form in the report showed the overall rise in the country’s debt last year.
“Net inflows from other private creditors rose 15 percent in 2020 to $14 billion but were highly concentrated and also reflected rollovers and extension of new credits by commercial bank loans to Pakistan in the context of the IMF program,” the report added.
Pakistan’s debt stock was $63.09 billion in 2010 which rose to $93.5 billion by 2018, up by 48 percent while stock of debts rose by 16 percent between 2018 and 2020, according to the figures quoted in the World Bank report.
The external debt stock of low- and middle-income countries in 2020 rose, on average, by 5.6 percent to $8.7 trillion.
However, for many countries the increase was in double digits.
The external debt stock of countries eligible for the G-20 debt service initiative rose on average by 12 percent to $860 billion. In certain cases, the increase was even recorded at 20 percent or more.
For most countries, the rise in external indebtedness was not matched by the growth of gross national income (GNI) and exports, the report informed.
The external debt-to-GNI ratio of low- and middle-income countries’ rose to 42 percent in 2020 from 37 percent in 2019 while their debt-to-export ratio increased to 154 percent in 2020 from 126 percent in 2019.
Governments around the world responded to the COVID-19 pandemic with massive fiscal, monetary, and financial stimulus packages.
“While these measures were aimed at addressing the health emergency, cushioning the impact of the pandemic on the poor and vulnerable and putting countries on a path to recovery, the resulting debt burden of the world’s low-income countries rose 12 percent to a record $860 billion in 2020,” said a World Bank statement.
Even before the pandemic, many low- and middle-income countries were in a vulnerable position, undergoing a slowdown of economic growth and public and external debt at elevated levels.
Taken together, external debt stocks of low- and middle-income countries rose by 5.3 percent in 2020 to $8.7 trillion.
“We need a comprehensive approach to the debt problem, including debt reduction, swifter restructuring and improved transparency,” said David Malpass, the president of the World Bank Group in a statement, adding: “Sustainable debt levels are vital for economic recovery and poverty reduction.”
Overall, in 2020, net inflows from multilateral creditors to low- and middle-income countries rose to $117 billion, the highest level in a decade.
Net debt inflows of external public debt to low-income countries rose by 25 percent to $71 billion, also the highest level in a decade.
Multilateral creditors, including the International Monetary Fund, provided $42 billion in net inflows while bilateral creditors accounted for an additional $10 billion.
World Bank says Pakistan’s external debt stock rose to over $108 billion in 2020
https://arab.news/jdn8u
World Bank says Pakistan’s external debt stock rose to over $108 billion in 2020
- According to the bank’s International Debt Statistics 2022 report, Pakistan’s foreign debt has increased by 16 percent since 2018
- On average, the external debt stock of low- and middle-income countries rose by 5.6 percent to $8.7 trillion in 2020
Pakistan eyes leadership in digital finance as it launches crypto council to regulate digital assets
Pakistan eyes leadership in digital finance as it launches crypto council to regulate digital assets
- The council will help integrate blockchain innovations into Pakistan’s financial framework
- Pakistan’s finance chief says government wants responsible crypto ecosystem for economic growth
KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Friday his country wanted to be a leader in digital finance as the government officially launched the Pakistan Crypto Council to establish regulatory guidelines for crypto adoption.
The newly established council is a government-backed initiative that seeks to integrate blockchain and cryptocurrency innovations into Pakistan’s financial and economic framework. Led by key policymakers, regulatory heads and industry experts, it plans to establish a progressive digital asset ecosystem.
The government’s decision to launch the council marks a shift in Pakistan’s stance on cryptocurrencies, moving from previous resistance to a more open and regulatory-focused approach.
“The world is moving rapidly toward digital finance, and Pakistan wishes to be a leader in the space,” an official statement circulated after the launch quoted the finance minister as saying.
“The establishment of the Pakistan Crypto Council is a step toward embracing innovation while ensuring that we create a regulatory framework that protects investors and the financial system,” he continued. “We are committed to fostering a responsible and progressive crypto ecosystem that can contribute to Pakistan’s economic growth.”
Earlier this month, the government appointed Bilal Bin Saqib as lead adviser to the finance minister to develop policy measures ahead of adopting digital currencies.
Saqib will serve as the council’s CEO, bringing his expertise in blockchain technology, investment strategy and digital innovation to spearhead the initiative.
“Our goal is to ensure that Pakistan becomes a competitive player in the global digital economy while prioritizing security, transparency and innovation,” he said at the launch. “By bringing together key stakeholders, we aim to strike a balance between progressive policymaking and fostering an environment where entrepreneurs and businesses can confidently explore the potential of blockchain technology.”
As the council begins operations, it aims to prioritize engagement with international crypto and blockchain organizations to ensure best practices.
It will also collaborate with fintech startups, investors and blockchain developers to encourage responsible innovation and safeguard consumers through a strong legal and compliance framework.
Pakistan International Airlines flight lands safely in Lahore with ‘missing wheel’
- PIA flight safety teams will submit a report after completing their investigation into the matter
- The missing wheel of the plan was later found near a remote parking bay at Karachi airport
KARACHI: A Pakistan International Airlines (PIA) flight from Karachi to Lahore landed with a missing wheel at its destination, authorities said on Friday, adding that an investigation into the matter was underway.
PIA has faced a history of challenges, particularly regarding the safety and reliability of its flights. In May 2020, one of its planes crashed into a residential area near Karachi’s Jinnah International Airport, killing 97 of the 99 people on board.
The crash led to deep scrutiny of PIA’s safety protocols, with the European Union Aviation Safety Agency (EASA) suspending its authorization to operate in Europe, citing serious safety deficiencies. The ban severely impacted PIA’s international operations, tarnished the airline’s reputation and led to massive financial losses.
According to a PIA statement, PK-306 departed from Karachi to Lahore on Thursday and made a “smooth, uneventful” landing despite a wheel missing from the main landing gear.
“On the walk-around inspection by the captain, it was revealed that one out of the six-wheel assemblies on the main landing gear at the back side was missing,” the airline’s spokesperson, Abdullah Khan, said in the statement.
He added that PIA flight safety teams would submit a report in this regard once the investigation was complete.
“It is worth mentioning that the aircraft is designed to handle these contingencies and that at no point was there any risk posed to the equipment or to the passengers,” Khan said.
Later, the missing wheel of the plane was found near a remote parking bay at Karachi airport. The Pakistan Airports Authority confirmed that there was no evidence of casualties or property damage resulting from the wheel’s detachment.
The incident comes after EASA lifted the four-year ban on PIA on November 29, 2024, citing significant improvements in safety and regulatory compliance by Pakistan’s Civil Aviation Authority.
PIA welcomed the decision and promptly scheduled flights to European destinations. The first direct flight from Islamabad to Paris took off on January 10, 2025, marking the official resumption of PIA’s European operations.
Pakistan military calls India main sponsor of ‘terrorism’ in Balochistan as train attack toll hits 26
- BLA separatists targeted a passenger train in Pakistan’s southwest earlier this week, 26 passengers and five troops killed
- Lt. Gen. Ahmad Sharif Chaudhry accuses India of launching information warfare by using AI images of the attack
ISLAMABAD: Pakistan’s military spokesperson, Lt. Gen. Ahmad Sharif Chaudhry, on Friday accused India of being the main sponsor of “terrorism” in Balochistan, as the death toll from a separatist group’s attack on a passenger train, which triggered a hostage crisis earlier this week, rose to 26.
The separatist Balochistan Liberation Army (BLA) bombed part of a railway track and stormed the train on Tuesday afternoon in Mushkaaf, a rugged area in the mountainous Bolan range of Balochistan. The hostage crisis was resolved a day later when the armed forces conducted a successful operation to rescue the hostages, killing 33 militants in the process.
“We must understand that in this terrorist incident in Balochistan, and others before, the main sponsor is your eastern neighbor [India],” the military spokesperson said during a joint news conference with Chief Minister Balochistan Sardar Sarfraz Bugti in Islamabad, though New Delhi has previously denied such allegations.
He criticized the Indian media for “glorifying” the Jaffer Express attack, accusing it of launching an information warfare campaign while militants held hostages and forces assessed the situation.
“The Indian media was using videos shared by the internationally recognized terrorist group,” he said, referring to the visuals shared by the BLA. “They used images generated by artificial intelligence and old videos as well to glorify and promote the attack internationally.”
In response to a question, the military spokesperson said 33 terrorists had been killed during the rescue operation, while the number of passengers who had lost their lives after being shot by the militants had risen to 26 from the previous count of 21.
“Of the 26 killed, 18 were from the army and the FC [frontier corps], three were railway employees and the remaining five were civilians,” he said, adding that apart from them five FC soldiers were also killed during the attack.
Chaudhry said 354 hostages had been rescued, identified, contacted and treated. He said with 26 people killed, the total count of hostages who had been accounted for was 380. He also expressed fear of a potential rise in casualties due to 37 injured among the rescued passengers.
Asked if the large-scale BLA attack indicated an intelligence failure, the military spokesperson said Balochistan’s difficult terrain made intelligence gathering challenging, but agencies were working around the clock to track leads and prevent attacks.
“I don’t agree with the term ‘intelligence failure’ because there are thousands of intelligence successes that people do not hear about, incidents that never happened because our intelligence detected and neutralized the threats,” he added.
Providing the train rescue details, he described the operation as “one of the most successful” conducted in a hostage situation and completed within a period of 36 hours.
“Not even a single casualty of hostages took place during the process,” he said, adding the passengers who were killed by the militants died shortly after they took over the train. “The whole operation was done with extreme expertise.”
Chaudhry said the armed forces executed the mission after a careful assessment of the situation, ensuring the safety of the hostages while eliminating the militants who had positioned suicide bombers near civilians to prolong the standoff.
The military spokesperson also reiterated that BLA militants were in contact with individuals inside Afghanistan, echoing Islamabad’s allegation that Afghan authorities have been backing anti-Pakistan groups, a charge the administration in Kabul denies.
Addressing the media, the Balochistan chief minister maintained India’s spy agencies and other hostile entities were waging an intelligence-driven war against Pakistan using Afghan soil.
Balochistan, Pakistan’s largest province by land area, has long been the site of a low-level insurgency, with separatist groups accusing the government of exploiting the province’s natural resources while leaving its people in poverty.
Government officials deny the allegation and say they are developing the province through multibillion-dollar projects, including those backed by China.
PM presents Rs2.5 million cheque to struggling Pakistani footballer, promises government job
- A video of Muhammad Riaz frying popular street snack to make ends meet went viral on social media this month, drawing online criticism
- PM Shehbaz Sharif calls for a strategy to provide sustainable employment opportunities to athletes representing Pakistan internationally
ISLAMABAD: Prime Minister Shehbaz Sharif has met with Pakistani footballer Muhammad Riaz and handed him Rs2.5 million ($8,916) cheque and promised a government job for him in a federal department of his choice, Sharif’s office said on Friday.
Riaz, who represented Pakistan in the 2018 Asian Games, made headlines after a video of him selling jalebis, a popular street snack, went viral online, with netizens criticizing the government and sports bodies for ignoring the footballer.
Sports athletes in the subcontinent, including Pakistan, usually come from economically disadvantaged backgrounds before becoming household names overnight and attaining financial success.
In his meeting with the footballer, PM Sharif praised his courage and determination, and urged to continue playing football and an active role in promoting the game in the South Asian country.
“Pakistani youth are a valuable asset of the country,” Sharif’s office quoted him as saying. “Providing all kinds of facilities to Pakistani athletes and resources for them to compete at the international level is among the top priorities of the government.”
The prime minister instructed officials to provide Riaz with job in federal department of his choice.
“Steps should be taken to promote sports in the country,” he said. “A strategy should be formulated to provide sustainable employment opportunities to the athletes representing Pakistan at the international level and for their welfare.”
Riaz thanked the prime minister for the financial support and for taking steps for the welfare of players and the promotion of sports, according to Sharif’s office.
The plight of football in Pakistan is a tale of unfulfilled potential, administrative chaos and lack of investment. Despite a passionate fan base and a pool of talented players, the sport has suffered due to mismanagement by governing bodies, political interference and inadequate infrastructure.
The Pakistan Football Federation (PFF) has been marred by internal disputes and FIFA suspensions which have hindered the development of the game at all levels.
On Wednesday, the Pakistan Football League (PFL) also announced a cash prize of Rs1 million ($3,573) and a “prominent position” in the league for Riaz.
The PFL is a franchise league that says it is driven by a UK-based company with foreign investment solely committed to uplifting football from the grassroots to a professional level in Pakistan.
Blast in northwestern Pakistan mosque injures religious party leader, three others
- Attacks have been escalating in Pakistan’s border regions with Afghanistan in recent months
- Last month, a suicide bomber killed six worshippers during Friday prayers at an Islamic seminary
PESHAWAR: A blast tore through a mosque on Friday in northwestern Pakistan, police said, injuring a religious party leader and three others, including children.
Abdullah Nadeem, a local leader of the Jamiat Ulema Islam-Fazl (JUI-F) political party, was believed to be the target of the blast and had been hospitalized with serious injures, said Asif Bahadar, a district police chief in South Waziristan. He said two children were among the injured.
It was not immediately clear who was behind the explosion.
Attacks have been escalating in Pakistan’s border regions with Afghanistan in recent months.
Last month, a suicide bomber killed six worshippers during Friday prayers at an Islamic seminary in northwestern Pakistan, known as a historic training ground for the Afghan Taliban.
This week in southwestern Balochistan, separatist militants hijacked a train and held passengers hostage in a day-long standoff with security forces.
Pakistan has vowed to crack down on growing militancy and has said the militants are finding safe haven in neighboring Afghanistan, a charge the ruling Afghan Taliban deny.
