Experts blame Pakistan’s financial woes on political and economic mismanagement despite multiple IMF bailouts

A security guard stands outside a currency exchange shop in Rawalpindi on July 15, 2023. (AFP/File)
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Updated 19 July 2023
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Experts blame Pakistan’s financial woes on political and economic mismanagement despite multiple IMF bailouts

  • Pakistan has availed 23 IMF bailout programs since 1958, but all of them failed to stabilize the South Asian economy 
  • The successive Pakistani governments have failed to complete the programs, except the one completed in 2013-2016 

KARACHI: The absence of political will and the inability to implement necessary structural reforms are the primary factors that have failed Pakistan in its quest to achieve economic stability, economists say, despite financial assistance from the International Monetary Fund (IMF) on multiple occasions over the decades. 

The South Asian country last month signed a $3 billion Standby Arrangement (SBA) with the IMF making it the 23rd such deal with the global lender since 1958 when the country sought its first $25 million bailout, though the funds were not ultimately withdrawn, according to the IMF data. 

Despite having a long history of reaching out to the IMF for financial assistance, the successive Pakistani governments have failed to complete the programs, except the one completed in 2013-2016, and set a direction for the country to attain economic stability. 

Asked about the failures of the successive administrations in ending the country’s financial woes, Pakistani economists pointed to the politically weak governments and easy access to the IMF as the key factors that contributed to the economic failure. 

“The first reason is that you have not completed any structural reform program of the IMF that we agreed with the Fund, so the problem lies with us,” Dr. Vaqar Ahmed, joint executive director at the Islamabad-based Sustainable Development Policy Institute (SDPI), told Arab News on Tuesday. 

“The second reason is that we lack political will and consistency that is required to implement the structural reforms. The third is the inability of the civil service to implement the reforms.” 

The expert noted that no Pakistani prime minister had ever completed their tenure, neither there were consistent policies in the country since its formation in 1947, which was vital to the continuation of structural reforms. 

“Political cycle is short in Pakistan and these reforms, for example, in the energy sector need 10-15 years to be fully implemented, but the horizon of any government is not that longer,” Ahmed said. 

When governments raise power tariff, they can’t withstand the public backlash and they eventually pull back the reforms, he added. 

Some economists, however, believe the IMF does not have the remedy for the economic ills of Pakistan. 

“It is the problem we have created and we can solve it with determination,” said Dr. Ashfaque Hassan Khan, a senior economist. “IMF will not solve our fundamental problems.” 

Asked why governments preferred IMF bailouts if the lender could not resolve Pakistan’s woes, the veteran economist said there were two contributing factors that forced the governments to repeatedly approach the IMF. 

“One is push and the other is pull factor,” Khan said, explaining the pull factor was from the IMF side to bring Pakistan into an IMF program, while the push factor involved people “strategically placed” within the country. 

“These people employ fear tactics to compel prime ministers to seek assistance from the IMF, citing concerns about market instability and claiming the country would face severe consequences.” 

Pakistan does not need the IMF for economic reforms as the fundament responsibility for this lies with the Pakistani policymakers, according to Khan. 

“If we need to increase revenue, will we wait for the IMF to tell us? Similarly, if we have to rationalize our expenditures and curb our unnecessary imports, do we need IMF to tell us,” Khan asked. 

“We are responsible for our economic problems and we can resolve them, but we are not doing this as we look for easy ways out.” 

Political parties, according to Khan, also lack economic experts that adds to problems on the economic front. 

Dr. Farukh Saleem, a financial analyst and former government spokesman, believed that putting the economy on the track was not a mandate of the IMF. 

“It is not the mandate of the IMF to put the economy of any country on the track. It is the responsibility of the government of that country and its policymakers,” Saleem said. 

“Whatever IMF says, that is in the interest of Pakistan. The IMF is sometimes scapegoated here. When they (governments) raise electricity or gas rates they say they are doing it on the demand of the IMF.” 

But the fact was the IMF didn’t ask to raise power or gas tariffs, but it insisted on selling electricity at a price that was compatible with its cost and it discouraged subsidies, he said. 

Saleem stressed the need to restructure the energy sector and to address the budget deficit, which he said germinated other ills. 

The economists agreed the country needed a charter of economy with a long-term legal cover. 

“Pick up three sectors for reforms such as taxation, energy and state-owned enterprises (SOEs) and draw action plan for next 15 years that should be backed by a legislative cover ensuring that nobody will disturb the plan,” Ahmed suggested. 


Pakistan re-elected to OIC’s human rights commission till 2028

Updated 8 sec ago
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Pakistan re-elected to OIC’s human rights commission till 2028

  • Former diplomat Riffat Masood to represent Pakistan at commission, says Deputy PM Ishaq Dar 
  • Commission deliberates on key issues such as women’s rights, Islamophobia, extremism and others

ISLAMABAD: Pakistan has been re-elected to the Organization of Islamic Cooperation’s (OIC) human rights commission from 2025-2028, Deputy Prime Minister Ishaq Dar said this week, thanking member states for their support. 

The Independent Permanent Human Rights Commission (IPHRC) is an expert body with advisory capacity established by the OIC as one of the principal organs working independently in human rights. 

Since it was launched in 2011, the commission has deliberated on important issues such as the rights of women and children, the right to development, combating Islamophobia, extremism and intolerance as well as human rights situations in different countries.

 “Pakistan has been re-elected today to the OIC-Independent Permanent Human Rights Commission (IPHRC) for the period 2025-2028 on the sidelines of ongoing meetings of the Council of Foreign Ministers in Istanbul,” Dar, who also serves as Pakistan’s foreign minister, wrote on X on Saturday.

Dar said former Pakistani ambassador Riffat Masood will represent Pakistan at the Commission.

“We thank the Member States for their support & commend IPHRC’s vital role in promoting respect for Human Rights globally,” the Pakistani minister concluded. 

At the 51st session of the OIC’s CFM in Istanbul, Dar voiced alarm over escalating tensions in the Middle East, blaming Israel’s military actions in Gaza and recent strikes in Iran for deepening instability and humanitarian crisis in the region.

The high-level conference was held at a moment of crisis for several OIC member states. Two of the bloc’s key countries — Pakistan and Iran — have recently experienced military escalations with regional rivals.

“Israeli aggression against Iran is not an isolated event,” Dar said in his address to the forum on Saturday night. “It is part of a dangerous and consistent pattern of militarism that Israel has demonstrated across the Middle East.”


Dust, paper, and crowds: Inside the Peshawar book bazaar that never runs out

Updated 16 min 49 sec ago
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Dust, paper, and crowds: Inside the Peshawar book bazaar that never runs out

  • Chaka Gali serves students and collectors with used and rare books at affordable prices
  • Booksellers say many visit the lane out of compulsion, not passion, due to financial hardship

PESHAWAR: In a narrow alley in the heart of Peshawar’s walled city, the scent of dusty pages lingers in the air as visitors step into Chaka Gali, a book bazaar believed to be even older than Partition that continues to serve students and collectors with stacks of used and rare titles at prices few other markets can match.
Thought to have been there in some form before 1947, the market remains one of the oldest surviving second-hand book bazaars in Pakistan. Its tight street is lined with small, dimly lit shops where wooden shelves sag under the weight of textbooks, novels, encyclopedias and exam guides.
Some titles lie in neat piles. Others are scattered on the ground. Most have passed through many hands.
“Chaka Gali is more than 70 years old,” Abdul Jameel, a bookshop owner in his 50s, told Arab News. “You can see the houses [around]. They are almost older than the partition [of Pakistan and India].”
The market’s offerings cater to a wide range of interests. Textbooks for schoolchildren sit alongside Urdu and English fiction, MBBS manuals, CSS prep guides, and religious literature, all at steeply discounted prices.
“You can find any sort of book here,” Jameel continued. “If you need books for primary school for children [or] course books, they can be found here. If you need general English novels, they are also available. If you require Urdu novels, you can get them from here.”
The books, he said, come from multiple sources. Some are purchased from families clearing out private collections while others are supplied by scavengers who collect discarded books from homes and streets and resell them to vendors in the lane.
He identified Lahore’s famed Urdu Bazaar — a historic hub of Pakistan’s publishing trade — as the third source, noting that it supplies unsold or surplus books to dealers across the country.
Jameel said many of these brand-new but excess titles are passed on to vendors at reduced prices.
This benefits the market’s primary customers who come not for the love of books but because they have no other choice.
“The buyers mainly come from the lower class,” he said. “Those who can’t buy books for children [since they can’t afford them] come and take old books from us.”
Jameel said such buyers arrive in the lane “out of compulsion, not a passion for reading.”
“The craze for reading has almost ended,” he added.
Ismail Khan, another second-hand bookseller in his 30s, said he had worked in the market for 15 years.
He pointed out that the rise of digital learning and online reading has cut into sales, though physical books still hold emotional and practical value for many.
“The sales of old books has declined these days,” he noted. “If you see, many people read ebooks.”
However, he noted some readers prefer the tactile experience of a physical book and aren’t drawn to screens.
He also blamed the shrinking customer base on widespread financial hardship.
“A book that previously cost Rs100 is now available for Rs500,” he continued, adding that many people have lost the capacity to buy new books.
Hasir Mir, one of the regular visitors to the lane, said he is a pharmacy student who has relied on Chaka Gali for his academic needs since school.
“I have bought all books of Grade 8, 9 and 10 … from here,” he said. “One of the reasons is that the prices here are reasonable compared to other places.”
Beyond affordability, he observed, the market offers an unmatched range of books.
“I can easily find pharmacy-related books here,” he added. “If you are doing IT, ACCA or you are a student of any other field, you can find the books you want.”
For Mir and many others, Chaka Gali is more than just a marketplace — it’s a lifeline.
Visitors to the second-hand market say that in a country where inflation has turned books into a luxury, the lane quietly preserves the belief that knowledge should remain within reach — even if the pages are a little worn.


Pakistan’s foreign minister meets Saudi, Kuwaiti and Kazakh counterparts on OIC sidelines

Updated 22 June 2025
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Pakistan’s foreign minister meets Saudi, Kuwaiti and Kazakh counterparts on OIC sidelines

  • Ishaq Dar and Prince Faisal bin Farhan discuss avenues to strengthen ‘strategic cooperation across all sectors’
  • Dar also focuses on enhanced trade and investment in talks with the Kuwaiti and Kazakh foreign ministers

ISLAMABAD: Pakistan’s Foreign Minister Ishaq Dar on Saturday met his Saudi counterpart Prince Faisal bin Farhan in Istanbul to discuss bilateral ties and strategic cooperation, as he held a series of diplomatic engagements on the sidelines of the 51st session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers.
The talks came as the escalating crisis in the Middle East, particularly Israel’s military campaign in Gaza and its recent strikes inside Iran, dominated the agenda of the high-level summit, drawing sharp rebukes from several Muslim countries including Pakistan.
“Delighted to meet my brother, HH Prince Faisal bin Farhan, on the sidelines of the 51st OIC Council of Foreign Ministers Meeting in Istanbul,” Dar said in a social media post. “We reaffirmed the deep-rooted brotherly ties between our two countries & explored avenues to further strengthen our strategic cooperation across all sectors.”
https://x.com/mishaqdar50/status/1936410048219001309?s=46&t=x28vcP-XUuQ0CWAu-biScA 
The meeting underscored Pakistan’s close relations with Saudi Arabia, which has extended critical financial support to help Islamabad navigate a prolonged economic crisis in recent years. The Kingdom played a key role in unlocking a crucial loan program from the International Monetary Fund and remains Pakistan’s largest source of worker remittances, a major pillar of the country’s economy.
Dar also met Kuwaiti Foreign Minister Abdullah Ali Al-Yahya to discuss expanding trade and investment ties, amid Pakistan’s efforts to attract Gulf investment and secure more employment opportunities for its workers in the region.
“Met my dear brother Abdullah Al-Yahya, Foreign Minister of Kuwait, on the sidelines of the 51st OIC CFM in Istanbul,” he said. “We discussed Pak–Kuwait bilateral ties, trade & investment, cooperation within OIC, and regional & international developments of mutual concern. Grateful for Kuwait’s steadfast support, especially amidst recent escalations [with India].”
https://x.com/mishaqdar50/status/1936411452463570991?s=46&t=x28vcP-XUuQ0CWAu-biScA 
Dar also held a meeting with Kazakh Deputy Prime Minister and Foreign Minister Murat Nurtleu to reaffirm strong bilateral ties and explore opportunities for regional connectivity.
According to Pakistan’s foreign office, the two leaders agreed to enhance cooperation in trade, investment and infrastructure, with Dar welcoming a planned high-level visit from Kazakhstan to Pakistan in October 2025 to strengthen the partnership further.
Islamabad has repeatedly highlighted the importance of ties with Central Asian states, offering its southern ports as a gateway for the landlocked region to access international markets through sea trade.


New Zealand beat Pakistan 6-2 to clinch FIH Hockey Nations Cup trophy

Updated 22 June 2025
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New Zealand beat Pakistan 6-2 to clinch FIH Hockey Nations Cup trophy

  • Kiwis stunned Pakistan with five goals in first half of one-sided FIH Hockey Nations Cup final 
  • New Zealand promoted to prestigious FIH Pro League after winning second consecutive trophy

ISLAMABAD: New Zealand ended Pakistan’s bid to clinch the FIH Hockey Men’s Nations Cup title on Saturday, winning the trophy a second consecutive time in Kuala Lumpur after beating the green shirts 6-2. 

It was a one-sided contest right from the beginning, with the Kiwis stunning Pakistan with five goals in the high-octane first half at the Bukit Jalil National Hockey Stadium. 

Despite a fightback by Pakistan in the second half of the match, which saw the green shirts score two goals, New Zealand managed to score another and add 6-2 to the final tally. 

“New Zealand’s triumph not only earned them the championship but also promotion to the prestigious FIH Pro League, reaffirming their growing stature in international hockey,” state-run Associated Press of Pakistan (APP) wrote. 

New Zealand signaled intent from the outset, with two early goals disallowed but persistent pressure finally paying off when Scott Cosslett converted a penalty corner. Jonty Elmes then set up Sam Hiha to double the lead, followed by goals from Dylan Thomas and Sean Findlay — the latter finishing from a difficult angle after receiving a precise aerial pass.

Before the halftime whistle, Scott Boyde capitalized on a rebound from the Pakistani goalkeeper to make it 5-0, giving New Zealand an unassailable lead.

Pakistan’s Moin Shakeel responded with a 33-minute goal, briefly shifting the momentum. 

“Cosslett netted his second goal of the match via a penalty corner in the closing minutes, while Sufyan Khan grabbed a consolation for Pakistan to end the match 6-2,” APP reported. 

France, which lost to Pakistan in the semifinal earlier this week, claimed the bronze medal by defeating South Korea in a shootout, while Wales beat hosts Malaysia for fifth place.

Japan finished seventh with a win over former champions South Africa.

The FIH Men’s Nations Cup was being played in Kuala Lumpur from June 15 to 21 that brought together eight top-ranked teams competing with each other.
Hockey is Pakistan’s national sport.

The national team boasts a proud legacy with three Olympic gold medals in 1960, 1968 and 1984 along with four World Cup titles in 1971, 1978, 1982 and 1994.

Hockey in Pakistan has faced a sharp decline in recent decades due to administrative challenges, underinvestment and inadequate infrastructure.

Renewed efforts are underway to revive the game with increased government support, youth development initiatives and greater international engagement aimed at restoring Pakistan’s former glory in the sport.


Pakistan tells OIC conference Israeli military actions driving Middle East instability

Updated 21 June 2025
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Pakistan tells OIC conference Israeli military actions driving Middle East instability

  • Ishaq Dar tells Istanbul conference Israeli strike on Iran ‘not an isolated event,’ reflects ‘continued impunity’
  • He calls on the OIC to play its role in shaping a more just and stable global order for the Muslim world

ISLAMABAD: Pakistan on Saturday voiced alarm over escalating tensions in the Middle East, blaming Israel’s military actions in Gaza and recent strikes in Iran for deepening instability and humanitarian crisis in the region.

Addressing the 51st session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Istanbul, Deputy Prime Minister Ishaq Dar reiterated his country’s condemnation of Israel’s attack on Iran.

The high-level conference comes at a moment of crisis for several OIC member states. Two of the bloc’s key countries — Pakistan and Iran — have recently experienced military escalations with regional rivals.

While Pakistan’s brief but intense standoff with India ended in a ceasefire last month, Israel’s strikes on Iranian nuclear and military facilities, launched more than a week ago, have shown no signs of de-escalation.

“Israeli aggression against Iran is not an isolated event,” Dar said in his address to the forum. “It is part of a dangerous and consistent pattern of militarism that Israel has demonstrated across the Middle East.”

“Pakistan remains deeply concerned at the escalating tensions, deepening instability and humanitarian crises across the Middle East,” he added. “What underpins many of these situations is the continued impunity with which Israel is undermining peace and stability of the broader region.”

The Pakistani deputy PM condemned Israel’s “unprovoked aggression” against Iran as a violation of international law and the UN Charter, warning that such actions posed a grave threat to both regional and global peace.

“We can all feel the reverberations of this instability,” he said.

Turning to Gaza, Dar said Israel was waging a “genocidal campaign” against Palestinians, pointing out that over 55,000 people, mostly women and children, had been killed since the start of the conflict in October 2023.

He noted Israel was deliberately blocking life-saving humanitarian aid and targeting relief workers, leaving millions displaced and entire neighborhoods in ruins.

Calling for an immediate and unconditional ceasefire in Gaza, Dar said that lasting peace in the region was impossible without a viable, sovereign Palestinian state based on pre-1967 borders, with Jerusalem as its capital.

He also referenced last month’s military standoff between Pakistan and India, telling the conference participants that Pakistan had shot down six Indian fighter jets in the confrontation.

He said that his country was committed to regional stability and warned that India’s unilateral actions — including the suspension of the Indus Waters Treaty — were further escalating tensions.

“Pakistan will not allow India to stop water for our people,” he said. “It will be treated as an act of war.”

Dar also urged the OIC to assert itself as a collective voice for the Muslim world.

“The OIC has a crucial role to play in streamlining the rapidly evolving and deteriorating global order to the benefit of the Muslim world,” he added.