Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities

Pakistan Prime Minister Shehbaz Sharif (center) chairs a meeting on Pakistan Railways in Islamabad, Pakistan, on January 27, 2025. (PID)
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Updated 27 January 2025
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Pakistan sacks 18% railways employees in bid to implement IMF reforms in state entities

  • Pakistan’s Prime Minister Shehbaz Sharif chairs review meeting on Pakistan Railways performance
  • IMF has pressed Pakistan to improve governance in state-owned assets for financial bailouts

ISLAMABAD: Pakistan Railways has sacked 18% of its “unnecessary staff” in a bid to improve the state-owned asset’s performance, Prime Minister Shehbaz Sharif was briefed on Monday according to a statement from his office, as Islamabad moves to implement ambitious reforms mandated by the International Monetary Fund (IMF) in exchange for a financial bailout. 

Improving governance in loss-making state-owned enterprises (SOEs) has long been on the IMF’s list of recommendations for Pakistan, which has turned to the international lender for frequent financial bailouts, the latest of which was a $7 billion loan last year. Pakistan’s prolonged economic crisis has forced the country to implement an ambitious reforms program designed by the IMF, which includes privatizing public sector organizations and laying off unnecessary staff to enhance their revenue.

Pakistan’s SOEs have accumulated losses in the billions over the years due to mismanagement, operational challenges, high debt loads, inefficiencies and alleged corruption. Pakistan’s railways sector has also been poorly managed over the years, with the country witnessing several train accidents over the past few years due to decades-old signal systems and tracks.

Sharif chaired a meeting to review the railway sector’s performance on Monday which was attended by senior cabinet ministers and officials, the Prime Minister’s Office (PMO) said in a statement. 

“As part of the Pakistan Railways rightsizing process, 18% of unnecessary staff has been laid off,” Sharif was briefed during the meeting, according to the PMO. 

Sharif issued instructions to Pakistan Railways to attract passengers in a competitive manner, calling on the organization to provide better travel services to passengers through public-private partnerships. 

He also instructed railways to hire professional and capable manpower, and replace its old system with modern technology that is more in line with today’s age, the PMO said. 

Sharif was briefed that the railways suffered losses of Rs10 billion during the devastating floods of 2022, during which most of its tracks remained underwater for 35 days. 

“Pakistan Railways improved its performance through various measures after the 2022 floods and has so far earned a profit equal to the initial cost of its freight operations,” the PM was told. 

The Pakistani premier urged railways to use its land for business activities in collaboration with the private sector, directing it to formulate a strategy to increase trade in the region, especially with Central Asian countries. 


UAE activates visa waiver for Pakistani diplomatic, official passport holders

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UAE activates visa waiver for Pakistani diplomatic, official passport holders

  • Pakistan, UAE signed agreement on mutual visa exemption for diplomatic, official passport holders of both countries in June
  • Islamabad considers the UAE a vital economic ally as it is Pakistan’s third-largest trading partner after China and the United States

ISLAMABAD: The UAE this week activated its visa waiver for holders of Pakistani diplomatic and official passports as per an agreement signed between the two countries last month, the Gulf state’s embassy in Islamabad said on Sunday. 

Pakistan and the UAE signed an agreement on mutual visa exemption for the holders of diplomatic and official passports of the two countries on June 25. The agreement was signed at the conclusion of the 12th session of the Pakistan-UAE Joint Ministerial Commission (JMC) in Abu Dhabi, Pakistan’s Deputy Prime Minister Ishaq Dar had said. 

“His Excellency Hamad Obaid Ibrahim Salim AlZaabi, the ambassador of the Embassy of the United Arab Emirates Islamabad feels immense pleasure to announce that the visa waiver for diplomatic and official passports entering the United Arab Emirates has been activated, effective July 25, 2025, at all UAE airports,” the UAE embassy in Islamabad said in a message to reporters. 

The two countries discussed collaborations in trade, investment, food security, aviation, IT and energy at the 12th JMC last month, Pakistan’s state broadcaster reported. 

Islamabad considers the UAE a vital economic ally as it is Pakistan’s third-largest trading partner after China and the United States.

Bilateral trade between the two nations reached approximately $10.9 billion in fiscal 2023–24, including $8.41 billion in goods and $2.56 billion in services. Exports from Pakistan to the UAE were around $2.1 billion in FY25, compared to $8 billion in imports.

The UAE is also a major source of remittances. In 2024, money sent home by the Pakistani diaspora was $6.7 billion, which is projected to exceed $7 billion in 2025.


In flood-hit Sindh, women revive barter trade to weather climate shocks

Updated 59 min 36 sec ago
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In flood-hit Sindh, women revive barter trade to weather climate shocks

  • With farming no longer reliable, rural women turn to cashless business models to survive inflation, displacement, environmental collapse
  • Backed by a German NGO, women entrepreneurs are exchanging scrap for household essentials to build low-cost livelihoods

JHUDDO, Pakistan: On any given morning in this flood-ravaged town in southern Sindh, Shamim Akhtar’s team of three men fans out on motorbikes, collecting scrap metal and plastic from doorsteps. 

In return, they hand over household essentials: pots, mugs, jugs — items many families need but can no longer afford.

It’s a barter economy, resurrected not by nostalgia but by necessity.

Once a farmer scraping by on unstable harvests, Akhtar, now 48, has become a self-made entrepreneur, running what she calls a modern twist on a traditional system. The shift has brought her stability and income — nearly Rs50,000 ($175) in monthly profit — in a region where formal employment is rare and inflation relentless.

“What we do [in this business] is that we take scrap from people’s houses and in return give them new things,” Akhtar told Arab News.

“In old times, our mothers used to give some junk or grain from home and take edible items or some vegetables … We now have revived the same system that we give house utensils [in exchange for their scrap].”

RETHINKING LIVELIHOODS AFTER FLOODS

The transformation began in the aftermath of Pakistan’s devastating 2022 floods, which killed over 1,700 people and displaced millions. In Jhuddo, where vast stretches of farmland were inundated, Akhtar lost her crops and her confidence in agriculture.

“All our crops would get destroyed whenever the flood would hit us,” she said. “In the initial days of flooding, the NGOs or government would help us but later we used to face very tough financial conditions.”

Farming, once her only means of survival, was no longer viable. So she pivoted, choosing to barter in utensils, essential items that every household needs. With capital provided by Germany’s Malteser International relief agency, she set up shop with wholesale goods from Hyderabad, sold scrap to local junkyards, and launched a low-cost business model tailored to village economics.

“We don’t have a cost-intensive system of giving expensive stuff to the villagers which they can’t even afford,” Akhtar explained. “We are doing this trade at the village level and are giving stuff that the villagers can afford.”

The NGO-backed program, a €600,000, 36-month initiative implemented by the Sindh Rural Support Organization (SRSO), has helped more than 150 women launch nano-enterprises in climate-affected areas of Mirpurkhas district.

“Earlier, the people here mostly used to do farming and rear livestock, but now they have diversified [their sources of income] to business,” said Komal Jameel, a livelihood officer at SRSO.

“She [Akhtar] keeps giving us her data entry through digitalization on a daily basis. She tells our team how much loss and earnings she is making out of her business. This scrap exchange is a very good business.”

WOMEN LEAD NEW ECONOMIC MODELS

Across the region, other women are following suit. In Niaz Kapri village, 48-year-old Hameeda Tariq began a similar scrap-for-goods exchange after floods wiped out her family’s farmland and livestock. 

Working with her husband, who sources utensils from nearby cities, she now earns around Rs40,000 ($140) a month.

“Before starting this business, we used to work in the fields and domesticate livestock,” said Tariq, a mother of three. “What brought us here is the recurring incidents of flooding in our village that would damage our crops and kill our animals.”

In neighboring villages, women are testing other models: a cosmetics stall in Roshanabad, a spice business in Khuda Bux II, a beauty parlor and tuck shop in Mir Allah Bachayo union council. All operate on small grants and are tracked digitally via mobile apps provided by SRSO.

“So far we have given grants to 320 individuals for starting nano businesses, of which 50 percent are females,” said SRSO district project officer Maqsood Alam. 

“We are strengthening local stakeholders and communities so that they could head toward sustainable livelihood and we could protect them in terms of climate change.”

The return to barter, often dismissed as outdated, is gaining currency in places where cash flow is erratic, formal banking is inaccessible, and climate volatility threatens conventional trade.

“This is a miracle in the history of Jhuddo that a female shopkeeper is sitting there and five females are jointly running this business,” Alam said.

For Akhtar, the impact is not just economic, but personal.

“This [business] has had a huge impact on my family,” she said. “Now we are earning a very good income from this, Mashallah, and we are getting a lot of support because of this.”


Pakistan warns of more monsoon rains next week as death toll reaches 271

Updated 27 July 2025
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Pakistan warns of more monsoon rains next week as death toll reaches 271

  • Pakistan state media says westerly wave expected to approach country from Tuesday
  • Punjab issues flood warning for Chenab, Jhelum rivers and their adjoining tributaries 

ISLAMABAD: Pakistan’s state media on Sunday forecast more rain and likely flooding in several parts of the country from next week, as the death toll from monsoon downpours since late June reached 271. 

Intense monsoon rains have battered Punjab, Khyber Pakhtunkhwa (KP), Sindh, Balochistan, Azad Kashmir, Gilgit-Baltistan and Islamabad since June 26, causing urban floods and glacial lake outburst floods in several parts of the country. 

Pakistan has received above-normal rainfall this monsoon season, raising concerns of a repeat of the devastating 2022 floods that submerged a third of the country and killed 1,737 people. 

“More monsoon rains with wind-thundershower have been predicted across the country from tomorrow (Monday),” state broadcaster Radio Pakistan reported. 

According to the Met Office, a westerly wave is also expected to approach on Tuesday.

The state broadcaster warned heavy rains may generate flash floods in local nullahs and streams across the country, adding that torrential rains may cause urban flooding in low-lying areas of major cities.

“Landslides and mudslides may cause road closures in the vulnerable hilly areas of Khyber Pakhtunkhwa, Gilgit-Baltistan, Murree, Galliyat, and Kashmir during the forecast period,” it added. 

Keeping in mind the rain forecast, the Punjab Disaster Management Authority (PDMA) has issued a flood warning for the Chenab and Jhelum rivers and their adjoining tributaries. 

The disaster management authority cautioned the public and authorities of possible low to medium-level flooding from Monday to July 31. 

It warned of an “unusual rise” in water levels in both rivers, urging authorities to take preemptive measures.

Monsoon rains have wreaked havoc across Pakistan, killing 271 and injuring 655 since June 26. As per the NDMA’s latest situation report, Punjab has reported the highest number of deaths with 145 killed, followed by Khyber Pakhtunkhwa (KP) with 63 casualties, Sindh with 25 deaths, Balochistan with 20, the northern Gilgit-Baltistan region with eight deaths, Islamabad with eight and Azad Kashmir region reporting two deaths. 

In total, 1,191 houses have been damaged, and 367 livestock have perished due to rain-related incidents since June 26. 


Pakistan confers award on CENTCOM chief for promoting Islamabad-Washington military ties

Updated 27 July 2025
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Pakistan confers award on CENTCOM chief for promoting Islamabad-Washington military ties

  • President Asif Ali Zardari confers Nishan-e-Imtiaz (Military) award on General Michael E. Kurilla 
  • Pakistan credits General Kurilla for deepening counterterrorism cooperation between two countries 

ISLAMABAD: President Asif Ali Zardari this week conferred the Nishan-e-Imtiaz (Military) award on United States Central Command (CENTCOM) chief General Michael E. Kurilla for promoting military cooperation between the two states, state-run media said. 

Kurilla arrived in Pakistan to attend a rare regional defense conference on Saturday in which officials from Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan also took part.

Zardari conferred the award on General Kurilla during a formal investiture ceremony in Islamabad on Saturday, state broadcaster Radio Pakistan reported, acknowledging his “outstanding contributions” to regional security and his dedicated efforts in strengthening strategic defense ties between the two countries.

“The award has been given in recognition of his exemplary service and pivotal role in advancing enduring military cooperation between Pakistan and the US,” Radio Pakistan said. 

The state media credited Kurilla’s leadership for fostering mutual understanding, enhancing defense collaboration and deepening counterterrorism cooperation between Pakistan’s armed forces and CENTCOM.

Radio Pakistan said during his visit, Kurilla held detailed meetings with senior Pakistani civil and military leadership,which included Zardari and Field Marshal Syed Asim Munir.

“Discussions encompassed regional security, military-to-military engagement, and joint efforts to combat terrorism and emerging transnational threats,” the statement said. 

Pakistan has recently sought a diplomatic reset with Washington after years of estrangement between the two countries, particularly during the Afghan war, where diverging perspectives deepened mistrust.

High-level bilateral exchanges gradually faded as the US withdrew from Afghanistan. However, Islamabad has undertaken efforts in recent months to grow closer to the US administration, with Pakistan even nominating President Donald Trump for a Nobel Peace Prize for brokering a ceasefire between Islamabad and New Delhi on May 10. 


Monsoon floods hitting key crops, says farmers’ body, amid risk to Pakistan’s growth target

Updated 27 July 2025
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Monsoon floods hitting key crops, says farmers’ body, amid risk to Pakistan’s growth target

  • Cotton arrivals fall 33 percent as rains hit production, according to the country’s ginners’ association
  • Pakistan’s Met department forecasts more monsoon rains in Punjab and Khyber Pakhtunkhwa

KARACHI: Deadly monsoon floods are devastating Pakistan’s standing crops, with cotton the worst hit, a leading farmers’ representative warned on Saturday, raising concerns about a potential setback to the government’s ambitious 4.2 percent growth target this fiscal year.

Over 270 people, mostly children, have died and hundreds more have been injured since June 26 as intense monsoon rains battered Punjab, Khyber Pakhtunkhwa (KP), Sindh, Balochistan, Azad Kashmir, Gilgit-Baltistan and Islamabad, according to the National Disaster Management Authority (NDMA).

Around 1,200 houses, 12 bridges and 18 kilometers of road have also been damaged, along with more than 360 livestock killed.

“Cotton is the worst-hit crop, besides rice, maize and mango orchards,” Khalid Mehmood Khokhar, president of the Kissan Ittehad Council (KIC), told Arab News. “While most of the rice has already been sown, floods have disrupted the remaining cultivation.”

Agriculture contributes nearly 23 percent to Pakistan’s GDP and underpins key export sectors. Cotton, in particular, is a vital raw material for Pakistan’s textiles, which fetched $18 billion in exports last fiscal year. Pakistan also exported $3.4 billion worth of rice and $308 million in fruits, including mangoes.

The government aims to produce 10.1 million bales of cotton across Punjab, Sindh, KP and Balochistan in the ongoing financial year. But progress has been uneven.

In Sindh, the biggest cotton-producing province, only 65 percent of the sowing target has been met. Punjab, the second-largest grower, has achieved 90 percent of its target.

Pakistan’s agriculture sector grew just 0.6 percent during the last fiscal year, dragging overall GDP growth down to 2.7 percent.

Economists warn the impact of the floods could again weigh heavily on national output.

“These floods will definitely impact Pakistan’s growth target this year,” Sana Tawfik, head of research at Arif Habib Limited, said. “This is a serious concern.”

She projects GDP growth to be closer to 3.4 percent this year.

“Agriculture may once again be a major drag,” she added.

Khalid Abdullah, Pakistan’s former cotton commissioner, said rainfall was already affecting crop quality.

“Rains and cloudy weather have been consistent in some areas,” he said. “This not only increases weeds but also flares up fungus attacks. If this weather continues, the cotton seed may start germinating inside the boll, which would mean the crop is gone.”

As of July 15, cotton arrivals were down 33 percent year-on-year, according to Pakistan Cotton Ginners’ Association data, with only 297,751 bales entering markets nationwide.

The government has still not shared estimated economic damages from the ongoing monsoon season, though they may run into billions of dollars once again.

Pakistan is one of the world’s most climate-vulnerable countries. According to the Economic Survey 2024–25, it has suffered 224 extreme natural disasters, 109 of them floods, since 1980, in which more than 100 million people were affected, causing $36.4 billion in economic losses.

Three years ago, Pakistan experienced heavy monsoon rains that killed about 1,700 people and caused widespread destruction of houses, farms and public infrastructure.

The Pakistan Meteorological Department has forecast further rainfall in parts of Punjab and KP over the coming days, as the monsoon season continues in the country.