Pakistan expects $10 billion from global lenders, friendly countries to shore up reserves

A Pakistani dealer counts US dollars at a currency exchange shop in Karachi on October 9, 2018. (AFP/File)
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Updated 17 July 2022
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Pakistan expects $10 billion from global lenders, friendly countries to shore up reserves

  • Finance minister says Pakistan to receive over $6 billion from World Bank, Asian Development Bank
  • Last week Pakistan reached an IMF agreement paving the way for disbursement of $1.17 billion 

KARACHI: Pakistan is expected to receive $10 billion from “friendly countries” and global lenders this fiscal year, Finance Minister Miftah Ismail said on Saturday, days after the South Asian nation reached an agreement with the International Monetary Fund (IMF).

Depleting reserves, a widening current account deficit and the depreciation of the Pakistani rupee against the US dollar, have left Pakistan facing a balance of payment crisis and an inflation rate of 21.3 percent.

As it reached a staff level agreement with the IMF last week — which would pave the way for the disbursement of $1.17 billion under a stalled $6 billion program — Pakistan hopes to receive additional external funding from its Middle Eastern allies such as Saudi Arabia and the UAE, multilateral creditors and global lenders.

“We think one of our friend countries will give $1.2 billion in financing for oil payment on deferred payment (basis), one country would invest $1.5 billion to $2 billion in stocks on G2G basis, and one friendly country will facilitate with supplies of gas on deferred payment,” Finance Minister Miftah Ismail told reporters.

Global financial institutions like the World Bank and the Asian Development Bank (ADB), are expected to provide Pakistan with an additional $6 billion in financing in the fiscal year 2022-23.

“My expectation is that we will get around $3.5 billion from the Asian Development Bank, $2.5 billion from the World Bank, that will make $6 billion. Apart from this, Asian Infrastructure Investment Bank will extend around $400-500 million, and also expect funding enhancement from Islamic Development Bank,” Ismail said.  

IMF spokesperson Gerry Rice said in a press briefing on Friday that Pakistan will immediately receive $1.17 billion after approval from the IMF board, which is going to meet “anytime between three to six weeks.”  

Pakistan secured a $6 billion IMF program in 2019, but less than half of that amount has been disbursed to date.

The expected tranche will bring total IMF disbursements to Pakistan to about $4.2 billion.

“We’re hoping this will help to stabilize the economy,” Ismail said, as the IMF deal is also expected to help take the load off the rupee, which is trading at historic high levels against the US dollar and crossed the Rs210 mark last month.

“We expect that after signing the agreement with IMF in July, the pressure on the rupee will ease off because last month $3.7 billion energy imports were made, we believe that this would come down to around $2.7 billion,” Ismail said. “This would help us to reduce import bill by $1 billion on energy import alone.”

“We think that if we reduce our imports from $6.5 billion, it would ease pressure on the rupee and the rupee may appreciate.”


Pakistan pushes back deadline for expressions of interest to buy national airline

Updated 5 sec ago
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Pakistan pushes back deadline for expressions of interest to buy national airline

  • The extension came a day before the expressions of interest had originally been due
  • Pakistani tycoon Arif Habib, aviation-based company Gerry’s Group were among bidders

ISLAMABAD: Pakistan will push back the deadline for companies to express interest in buying national carrier Pakistan International Airlines to May 18, the country’s privatization minister said on Thursday.
The extension, announced in a statement by Minister for Investment and Privatization Abdul Aleem Khan, came a day before the expressions of interest had originally been due. He said 10 companies had already expressed an interest.
“The Board accorded approval for extension in the date for submission of interests on the request of interested parties,” he said, referring to the Privatization Commission Board he leads.
Pakistani tycoon Arif Habib and aviation-based company Gerry’s Group were among the 10 bidders looking to buy a majority stake in Pakistan International Airlines, Bloomberg News reported on Friday.
Arif Habib, Pakistan International Airlines and Gerry’s Group did not immediately respond to a Reuters request for comment.
Pakistan’s government has previously said it was putting on the block a stake of between 51 percent and 100 percent in the loss-making airline as part of reforms urged by the International Monetary Fund.
The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on the privatization will help cash-strapped Pakistan pursue further funding talks with the IMF.


A village in Pakistan keeps business and tradition of pottery alive

Updated 23 min 13 sec ago
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A village in Pakistan keeps business and tradition of pottery alive

  • At least 150 families are engaged in pottery-making in Tehi, village in Talagang district of Punjab province
  • Young craftsmen are trying to expand businesses by introducing innovation, delivering customized products

ISLAMABAD: Sitting in the veranda of his house, Muhammad Shabbir picked up a lump of clay and set it on a potter’s wheel as it spun before him, producing a whirring sound. A few meters away in a large courtyard, his two sons kneaded clay and put finished pots out to dry in the sunlight before they would be taken to a furnace to bake.

The scene is from Shabbir’s home in Tehi village of district Talagang in Pakistan’s vast Punjab province, some 150 kilometres from Pakistan’s federal capital, Islamabad, where over 150 families are involved in pottery as their primary source of livelihood. They have learnt the techniques and styles from their ancestors and continue to uphold the age-old tradition of fashioning clay wares by hand.

Around the world, pottery was replaced at the beginning of the 20th century by glass, aluminum, tin and plastic, materials all cheaper and better suited to most tasks than clay.

But Shabbir and his two sons remain steadfast in keeping the craft alive even as it no longer earns them enough to live a prosperous life.

“I have been doing this for the last twenty years,” Shabbir told Arab News. “I used to see my elders, first they used to make them [pots] and now I have engaged my sons to work in the business.”

A special, fine-grained soil sourced from a nearby village is used to make the pots, Shabbir said, which was mixed with sand and shaped into dough to be turned into different designs.

“We knead the mud, make a dough and bring it to the potter’s wheel and then design it into a pot. We put them out to dry and then bake them in the furnace to get the final product,” Shabbir explained.

Across the streets of Tehi, clay pots of different shapes and sizes were displayed at wholesale shops from where they are bought by locals, traders in Punjab and also exported to retailers across the country.

“GOVERNMENT SUPPORT”

Craftsmen in the village make the clay pots five months in a year, three months in summer and two in winter, and pause work in the rainy season when the weather is humid and frequent rains drench the giant clay furnaces used to bake the utensils.

Like Shabbir’s sons, many children in the village started learning pottery-making at a very young age to lend a helping hand to their elders.

Shabbir said his two sons had ambitions to leave the business and graduated high school but could not find jobs.

“We went to school, did matriculation, applied for a job but didn’t get it, and then decided why shouldn’t we learn the craft of our forefathers and do it,” Muhammad Kabeer, a young potter and Shabbir's son, told Arab News as he prepared dough in a barrel.

Kabeer and his younger brother said they wanted to expand their business and the family’s earnings by introducing innovation in the field and making customized pots on order.

“If a customer comes with their own designs, we give them two, three days’ time to deliver the order,” Kabeer said.

The family mainly makes clay pots for wholesalers and while loyal customers do keep ordering, Shabbir said the pottery business had been impacted by inflation and high transportation rates, forcing many people to switch to other lines of work.

Pakistan has been beset by inflation above 20% since May 2022, registering a high of 38 percent in May 2023 mainly due to high food and energy costs. Inflation eased off to 17.3%, the lowest since May 2022, on a year-on-year basis in April 2024 from 20.7% recorded in March 2024 and 36.4% in April 2023, official data issued this week.

His father added: “We work for five months and have to make do with those earnings for the whole year,” Shabbir lamented.

Kabir added:

“We sell them [the pots] to wholesalers and they pay us labor cost only ... If we get the government’s support, we can really expand this business and provide jobs to our friends as well.”


‘Historic moment’: Pakistani satellite bound for orbit in Chinese high-stakes moon mission today

Updated 35 min 43 sec ago
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‘Historic moment’: Pakistani satellite bound for orbit in Chinese high-stakes moon mission today

  • Chang’e 6 is a planned robotic Chinese and Pakistani lunar exploration mission that will attempt China’s second sample return mission
  • Around 100 students from Pakistan’s Institute of Space Technology have contributed to the satellite set for launch on Friday

ISLAMABAD: ‘ICUBE-Qamar’ (ICUBE-Q), a cube satellite, is poised to become Pakistan’s first entry into the lunar orbit as part of China’s Chang’e-6 mission today, Friday, with developers describing it as a “historic moment” that would open new avenues for future deep space missions from the South Asian nation.

Chang’e 6 is a planned robotic Chinese and Pakistani lunar exploration mission that will attempt Beijing’s second sample return mission and aims to obtain the first-ever soil and rock samples from the lunar far side and return them to earth. The samples will contain material ejected from the lunar mantle and will be used to provide insight into the history of the moon, earth, and the solar system.

The primary phase of the mission is expected to last about 53 days. Like its predecessors, the spacecraft is named after the Chinese moon goddess Chang’e.

Around 100 students from Pakistan’s Institute of Space Technology (IST) have contributed to developing the satellite, scheduled to launch into lunar orbit at 12:50 PM PST on Friday, May 3, 2024, from the Wenchang space launch site in Hainan, China.

“This is Pakistan’s first deep space mission which is indeed a historic moment and following that maybe in the future other deep space missions can be planned,” Khurram Khurshid, the head of the electrical engineering and computer science department at IST and a co-lead on the satellite project, told Arab News.

Pakistan’s proposal to build the satellite was accepted by the China National Space Agency (CNSA) from plans submitted by eight member states of the Asia-Pacific Space Cooperation Organization (APSCO).

“In the first month of 2022, out of all the proposals from the APSCO member states, the Chinese space agency thoroughly evaluated and selected one, which happened to be ours which was a significant moment for us as our proposal was chosen in deep space mission.”

The design, development, and qualification of the ICUBE-Q satellite were spearheaded by faculty members and students of the IST in collaboration with China’s Shanghai Jiao Tong University (SJTU), with support from Pakistan’s National Space Agency, SUPARCO.

“Along with faculty members, around 100 students contributed to various aspects of the satellite, including electrical engineering for electronics, aerospace engineering for control systems, computer science for software, and mechanical/materials engineering for identifying materials suitable for the moon’s harsh environment,” Khurshid said. 

The ICUBE-Q has two cameras as payload for taking images of the lunar surface that will be transmitted back to earth for analysis, the official said. 

Khurshid said after selection in 2022, it took two years of round-the-clock work by students and researchers to complete the project within the deadline. 

“The design and development of the satellite were finished approximately eight months ago after rigorous qualification tests, some conducted in-house and others by SPARCO,” he said.

The satellite was then sent to China eight months back for further verification to ensure it met all requirements. 

“China’s stringent standards meant even minor discrepancies could result in rejection, emphasizing the importance of successful qualification tests,” he added, “and once these tests were successfully completed, it marked a significant milestone as it validated our designs and confirmed the satellite’s readiness for the mission.” 

The major cost in such missions was the substantial funding required to launch a satellite, Khurshid said, adding that the cost of manufacturing the satellite was not high and was funded by SUPARCO:

“It is a small satellite, like a 7 kg satellite, so it was not a big cost as major cost required for launching a satellite will be provided free by China.” 

After securing the free launch opportunity, all the faculty and students involved “got very excited and devoted their efforts to this project,” Khurshid said. 

Four of the Pakistan team members are in China to witness the historic launching. 


Pakistan double landmine blasts kill one person, wound at least 18 

Updated 02 May 2024
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Pakistan double landmine blasts kill one person, wound at least 18 

  • First mine exploded when a truck was passing through a valley in coal-rich Duki district in Balochistan province
  • Second detonated when counter-terrorism officials and civilians were examining initial blast site, police said

QUETTA, Pakistan: Double landmine blasts killed one person and wounded at least 18 on Thursday in Pakistan’s southwest, a police officer said.

The first mine exploded when a truck was passing through a valley in coal-rich Duki district in Balochistan province. The second detonated when counter-terrorism officials and civilians were examining the initial blast site, said district police officer Asif Haleem.

No one immediately claimed responsibility for the blast. But Baloch separatist groups have previously struck security personnel or infrastructure in the southwest.

They initially wanted a greater share of provincial resources, but later initiated an insurgency for independence from the central government.

Also on Thursday, an Islamabad-based think tank said that militant assaults killed 70 people nationwide in April, mostly in northwest Khyber Pakhtunkhwa province.

The Pakistan Institute for Conflict and Security Studies also said the country experienced 323 militant attacks in the first four months of the year, resulting in 324 deaths.

Such incidents are unusual in eastern Punjab province, but police said militants from banned groups are responsible for killing three uniformed officers in Lahore city during the past 10 days.

Inspector General of Punjab Usman Anwar urged people to report any suspicious activity.

A report issued in January by another think tank, the Pak Institute for Peace Studies, said there were 306 attacks last year, killing 693 people.


Volunteers who helped with rescue work during UAE rains honored by Pakistani consulate

Updated 02 May 2024
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Volunteers who helped with rescue work during UAE rains honored by Pakistani consulate

  • Last month UAE received heaviest rains in the 75 years that records have been kept
  • Rains brought much of the country to a standstill and caused significant damage

ISLAMABAD: A team of Pakistani volunteers who helped rescue hundreds of people and dozens of vehicles during last month’s record-breaking rains and flooding in the UAE have been honored by the Consulate General of Pakistan in Dubai, a press statement from the mission said on Thursday.

Last month, Dubai was hit by unprecedented storms that paralyzed the Emirates for days. The downpours brought much of the country to a standstill and caused significant damage, flooding trapped residents in traffic, offices and homes and overrunning malls and roads.

“The volunteers were honored with certificates of appreciation by the Consul General in recognition of their unmatched services. Other officers and officials of the consulate were also present on the occasion,” the consulate’s statement said. 

“We are immensely proud of the Pakistani volunteers who demonstrated exceptional courage and compassion during the recent heavy rains in the UAE. Their selfless dedication to rescuing those in need reflects the true spirit of humanity … We salute these volunteers for their unwavering commitment to serving others, and their actions serve as an inspiration to us all.”

One volunteer, Tanvir Athar, said their efforts had also inspired others. 

“After our services in the recent rains, a number of volunteers have connected us and offered their services for any such efforts in future,” Athar was quoted in the statement as saying. 

He said the group of volunteers had been rescuing people stuck in deserts and developed a mobile application to receive requests for assistance. 

Last month, Dubai had to endure the towering task of clearing its water clogged roads and drying out flooded homes after a record storm saw a year’s rainfall in a day. Dubai International Airport, a major travel hub, also struggled for days to clear a backlog of flights and many roads were still flooded in the aftermath of the deluge.

The rains were the heaviest experienced by the United Arab Emirates in the 75 years that records have been kept.