KARACHI: Pakistan on Thursday confirmed its place among world nations that would get debt relief from G20 creditors starting from May 1, making room for its government to divert vital resources to strengthen its health care sector and fight the coronavirus pandemic.
“The International Monetary Fund has announced it will give relief to developing nations, including Pakistan. The debt relief will be for a year and come into effect from May 1,” Foreign Minister Shah Mahmood Qureshi told journalists in Islamabad after meeting with Special Assistant to Prime Minister on Finance, Dr. Abdul Hafeez Shaikh, at the foreign office.
The move will bring “substantial economic relief to the country,” the minister added.
The G20 economies decided to suspend both principal and interest repayments on Wednesday to help the world’s poorest countries. The plan is to defer the payments that accumulate between May 1 and December 1, 2020, and allow these nations to pay them by December 1, 2021.
The countries that are currently indebted to the IMF and World Bank will benefit from the moratorium on debt payments announced by the G20 countries.
“We agreed on a coordinated approach with a common term sheet providing the key features for this debt service suspension initiative, which is also agreed by the Paris Club,” the G20 said in a joint statement on Wednesday.
“The debt relief means that the loans a country has taken from the creditors will not be serviced during the moratorium period and will be rescheduled. This is important for Pakistan because its payments will be deferred,” Dr. Muhammad Zubair Khan, a senior economist, told Arab News.
Pakistan is in a debt trap and now the economic toll of COVID-19 outbreak has made things worse for the country.
“After paying the provinces and going for debt servicing, the federal government is not even left with any money to properly meet its defense budget,” Dr. Ikram Ul Haq, another economic expert, told Arab News.
Economists say the South Asian nation has $12.731 billion of external debt repayment obligations in FY2021 that will be covered under the debt relief plan.
“Although the plan targets official bilateral creditors, it is understood that commercial creditors will also be asked to follow the same template. Pakistan owes $2.545 billion of debt service payments to commercial creditors during the next fiscal year out of which $2.3 billion is to China,” Haq continued.
“After this, $6.744 billion is owed to non-Paris Club bilateral creditors out of which $3.48 billion is supposed to go to China, $2.245 billion to Saudi Arabia and $1 billion to the United Arab Emirates. The country has to make $1.627 billion of payment to multilateral creditors out of which half of the amount will go to the Asian Development Bank and the rest to the World Bank. The Paris Club creditors, who are also to be included in the terms of the debt relief plan, are owed $787 million next year, with Japan and France accounting for the bulk of the amount,” Haq added.
Experts familiar with the matter say the amount of debt servicing Pakistan has to make between May 1 and December 1 will now be rescheduled and will be paid by December 1, 2021. “However, Pakistan has proposed to delay the payment until 2023 for short loans and 2025 for the long term loans,” Dr. Vaqar Ahmed, Joint Executive Director of the Sustainable Development Policy Institute (SDPI), told Arab News.
The coming three-year liabilities of Pakistan on the external front is about $23 billion on account of the principal amount and debt. The debt relief by G20 will help, say the economists, but the main liabilities are that of bonds and multilateral loans since they will not be deferred.
Pakistan to get debt relief from G20 creditors — FM Qureshi
https://arab.news/jpa4t
Pakistan to get debt relief from G20 creditors — FM Qureshi
- Countries currently indebted to the IMF and World Bank will benefit from the moratorium on debt payments announced by G20 states
- Pakistan’s 3-year liabilities on account of principal and debt on external front are $23 bn, economists say
Islamabad says Iranian authorities confirm killing of two Pakistanis in Sistan-Baluchistan
- Pakistan says efforts underway to repatriate bodies of its nationals, Mujahid and Mohammed Faheem, from Iran
- Pakistan and Iran are often at odds over instability on their shared, porous border plagued by militant attacks
ISLAMABAD: Pakistan’s foreign office spokesperson on Wednesday confirmed the killing of two Pakistanis in Iran’s volatile Sistan-Baluchistan province, saying that efforts were underway to repatriate the bodies.
In a brief statement, the foreign office spokesperson said Iranian authorities have confirmed the killing of Pakistani nationals named Mujahid and Mohammed Faheem in Sistan-Baluchistan. However, the statement did not mention how the two were killed.
The spokesperson said Pakistan’s embassy in Tehran is in “active communication” with Iranian authorities, who were extending the necessary support and assistance.
“Efforts are being made to repatriate the dead bodies as soon as necessary administrative and legal requirements are fulfilled,” he said.
Thousands of Pakistanis, mostly from economically disadvantaged areas, frequently cross into Iran to take up informal work in sectors such as vehicle repair, construction and agriculture.
One of Iran’s poorest regions, Sistan-Baluchistan on the border with Pakistan has long been plagued by unrest involving drug-smuggling gangs, rebels from the Baloch minority and religiously motivated militants.
Eight Pakistanis were killed in its Mehrestan County in April. The attack was claimed by the Balochistan National Army (BNA), one of several separatist outfits operating in Pakistan’s southwestern Balochistan province.
Pakistan and Iran have had a history of rocky relations despite a number of commercial pacts, with Islamabad being historically closer to Saudi Arabia and the United States.
Both countries are often at odds over instability on their shared porous border, routinely trading blame for not rooting out militancy.
Pakistan energy minister says net metering to be reformed, not scrapped
- Net metering allows consumers to generate electricity through solar panels and sell excess power back to the national grid
- Minister says expansion of net metering now impacting national grid, reforms needed to address this in a “timely manner”
KARACHI: Pakistan will not abolish its solar net metering policy but is working to reform the mechanism to make it more “transparent and sustainable,” Energy Minister Sardar Awais Leghari said on Wednesday.
Net metering allows consumers to generate electricity through solar panels and sell excess power back to the national grid, receiving credits or monetary compensation in return. The policy was introduced in 2017 to promote renewable energy and ease pressure on the national grid.
“The government is not abolishing net metering but is considering changing its current mechanism to a more effective, transparent and sustainable model,” the Ministry of Energy’s Power Division said in a statement.
The minister said the expansion of net metering was now impacting the national grid and reforms were needed to address this in a “timely manner.”
Pakistan’s current policy pays Rs21 per unit of solar electricity, resulting in a government subsidy of Rs1.90 per unit, according to the energy ministry. Officials say the cost is ultimately borne by domestic and industrial consumers, effectively subsidizing wealthier users who can afford to install solar panels.
Leghari said the government may align the solar purchase rate with overall energy procurement prices, allowing it to adjust with market fluctuations. However, he stressed that the aim was not to eliminate incentives.
“We are not saying that net metering consumers should provide us with electricity at the rates of the cheapest sources of electricity,” Leghari said. “These reforms are not a deterrent, but a step toward a better, balanced and sustainable system.”
He said the typical payback period for solar investments in Pakistan was around three years, provided that consumers use 40 percent of the electricity they generate.
Leghari also said the government was in discussions with the International Monetary Fund about the scheme but stressed “there is no direct financial pressure on us.”
In a post on social media platform X, formerly Twitter, Leghari said the government was reviewing all stakeholder proposals and would not take steps that harmed businesses.
“We strongly hope that any changes in these regulations will be in the best interest of all stakeholders, the national grid and the electricity consumers of Pakistan,” he said.
In January, Leghari called for a review of the net metering policy, saying it was becoming financially unsustainable. A government report from last year said the existing net metering framework had shifted a burden of Rs103 billion ($366 million) onto other electricity consumers in 2024.
Pakistan has set a goal of generating 60 percent of its electricity from renewable sources by 2030 and cutting projected carbon emissions by 50 percent. But the country remains far behind on those targets, despite growing solar adoption and abundant sunlight across most regions.
Pakistani PM reiterates gratitude to Trump, Gulf nations for India ceasefire
- US President Donald Trump brokered ceasefire between arch-rivals India and Pakistan on May 10
- Shehbaz Sharif to visit Saudi Arabia on Thursday to thank Kingdom for support during India standoff
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday thanked US President Donald Trump and Gulf countries for helping defuse Pakistan’s tensions with India following an armed conflict between the nuclear-armed nations last month.
Trump announced he had helped broker a ceasefire between India and Pakistan on May 10 after the worst fighting between the two countries since 1999. Following weeks of tensions, India and Pakistan pounded each other with artillery, fighter jets, missiles and drones in May before agreeing to cease hostilities.
Gulf countries, including Saudi Arabia and the United Arab Emirates (UAE) also engaged both Indian and Pakistani officials throughout the conflict to help defuse tensions.
“[US] President [Donald] Trump has shown, beyond a ray of doubt and imagination, that he is a man for peace,” Sharif said at a ceremony at the US embassy in connection with the upcoming American Independence Day.
“He is a man for promoting peace and beneficial business needs. He is a man who is against escalation,” he added.
Days after the ceasefire agreement was announced, Trump said he used trade to defuse tensions between India and Pakistan.
Sharif noted Trump had advised both countries to promote trade and investments instead of fighting each other. The Pakistani premier appreciated Trump’s “outstanding contribution” to broker the ceasefire.
The Pakistani premier hoped the ceasefire would last between the two countries and lead to increased trade and investment.
“I hope and pray to God Almighty that this will become a long, lasting ceasefire on which we can build an edifice of investments, trade, pollution and so on so forth,” he said.
The Pakistani premier also appreciated the role played by Middle Eastern countries in resolving the dangerous conflict.
“And here, obviously, I’d like to mention the role of our friendly and brotherly countries in the Gulf, in the Middle East, who proactively coordinated with us and supported President Trump’s genuine efforts,” Sharif said.
Sharif will travel to Saudi Arabia on a day-long visit to the Kingdom on Thursday, Pakistan Deputy Prime Minister Ishaq Dar said.
The Pakistani premier will thank the Saudi leadership for its solidarity and support to Pakistan throughout the India standoff, Dar said.
Pakistan, UK discuss strengthening cooperation in railways sector
- Pakistan Railways Minister Hanif Abbasi meets British High Commissioner Jane Marriott in Islamabad
- Pakistan’s railway sector faces several challenges which caused train derailments, fatal accidents
ISLAMABAD: Pakistan’s Railways Minister Hanif Abbasi and British High Commissioner Jane Marriott on Wednesday discussed bilateral cooperation between the two nations with a special focus on railways, state-run media reported.
Pakistan’s railway sector faces several challenges such as an 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 a 2021 train collision that left at least 65 people dead.
As opposed to that, the UK has one of the densest railway networks in Europe with almost all major towns and cities connected by rail.
“Pakistan and the United Kingdom have emphasized joint measures to further strengthen their bilateral trade and economic relations, with special focus on the railways sector,” state-run media reported following Abbasi’s meeting with Marriot in Islamabad.
State broadcaster Radio Pakistan said Abbasi called for “a comprehensive strategy” between Pakistan and the United Kingdom to develop and modernize the former’s railway sector.
“He said Pakistan is ready to fully benefit from UK’s expertise in modernizing the railways infrastructure in the country and improving performance of this sector,” Radio Pakistan said.
Abbasi said the two countries would continue to work together on mutual interest railways projects that will benefit their economies and improve public transportation.
Pakistan has recently attempted to improve its railway infrastructure to ensure economic growth and development.
In March, Pakistan and United Arab Emirates (UAE) officials agreed to expand bilateral cooperation between the two countries in the railways sector.
Abbasi had said Pakistan Railways is continuously working to improve its services through long-term agreements with domestic and international suppliers, emphasizing that Islamabad offers a business-friendly environment and presents significant opportunities for investors.
Pakistan reports second death of 2025 from deadly brain-eating amoeba
- Naegleria fowleri, with a 98 percent fatality rate, spreads when contaminated water enters through the nose
- Victim, a Karachi resident, used water at home and nearby mosque for ablution, says Sindh government
KARACHI: A 23-year-old man died in Pakistan’s southern port city of Karachi this week after contracting Naegleria fowleri, the Sindh Health Department said on Wednesday, marking the second death of the year from the deadly brain-eating amoeba.
Naegleria fowleri, commonly known as the brain-eating amoeba, has a fatality rate of over 98 percent. It is transmitted when contaminated water enters the body through the nose and cannot be spread from person to person.
Pakistan has witnessed a rise in Naegleria fowleri cases in recent years, with more than 100 reported deaths since the first confirmed infection in 2008. Five fatalities were recorded in 2024 alone.
In the latest case the deceased, a resident of Karachi’s Orangi Town area, was hospitalized on May 30 after suffering from symptoms on May 28. He died on June 3 after the presence of Naegleria fowleri was confirmed in the patient on June 1.
“Upon investigation, it was noted that the patient had not participated in any water-related activities,” the Sindh Health Department said. “His only exposure was regular use of water at home and use of water at a nearby local mosque to perform ablution.”
Symptoms of Naegleria fowleri infection include severe headache, altered sense of taste, high fever, sensitivity to light, nausea and vomiting. Death typically occurs within five to seven days of infection.
The health department confirmed this was the second death in Pakistan from Naegleria fowleri in 2025. The first death was reported in March when a 36-year-old woman died from the same disease. She was also a resident of Karachi.
A 2021 study by the Sindh Health Department found that 95 percent of water samples in Karachi, Sindh’s provincial capital, were unfit for human consumption.
Experts say the contamination leads to the spreading of the brain-eating amoeba among the city’s residents.
