ISLAMABAD: Pakistan’s finance chief said on Friday the International Monetary Fund (IMF) bailout package was not likely to impede the country’s economic growth while addressing a gathering in Karachi.
The IMF provided a $6 billion lifeline to Pakistan in 2019 to ease the country’s economic challenges caused by a massive current account deficit.
However, the loan was offered under strict economic conditions that required the government to end subsidies, generate greater tax revenue and implement painful structural reforms.
Experts warned the IMF program would undermine Prime Miniter Imran Khan’s promise to build a future welfare state where underprivileged segments were going to find a more comfortable economic life.
“I do not think the IMF program is going to impede our 5 percent growth rate,” The Express Tribune quoted Tarin as saying. “If we remain within the range of 5, 5.25 and 5.5 percent, we will be fine.”
He said the government had already surpassed its revenue collection target by Rs230 billion until the current stage of the fiscal year, adding it was likely to cross the Rs6 trillion mark by the end of it.
The country’s finance chief also maintained a comprehensive economic plan and political will were imperative for Pakistan’s progress, reported the APP news agency.
He said the country was not too far away from the IMF’s recommended reforms, as the international financial institution continues to scrutinize the economic performance of the country.
Pakistan’s finance chief says IMF program won’t hurt economic growth
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Pakistan’s finance chief says IMF program won’t hurt economic growth
- Shaukat Tarin maintains the country is likely to surpass the Rs6 trillion mark in revenue collection
- The finance chief informs the country is not too far away from the IMF’s recommended reforms
US study group urges Washington to address growing threats from Pakistan, Afghanistan
- Study group led by US policymakers say extremist groups gaining strength in ways that threaten America, allied interests
- Group calls on US to work with Pakistan again on fighting militants, securing long-term access to Pakistani airspace
Washington: The United States must move on from the “trauma” of two decades of war and step up counterterrorism efforts to face growing threats from Afghanistan and Pakistan, a study said Tuesday.
The study group, led by former senior US policymakers, made clear it was not advocating a return to America’s longest war which ended when President Joe Biden pulled troops from Afghanistan in 2021 and the Taliban regained control.
But it said that, after the overwhelming focus on counterterrorism following the September 11, 2001 attacks, the pendulum “appears to have swung in the opposite direction” as the United States focuses on competition with China, Russia’s invasion of Ukraine and Israel’s war on Hamas.
“Both decision-makers and many who have labored within the national security agencies show signs of something like collective trauma resulting from a 20-year-long counterterrorism effort,” said the study group, convened in 2022 under the US Institute of Peace.
“The tragic end of US involvement in Afghanistan has also made it a toxic issue, reinforcing inclinations to keep the region off the policy agenda and the public’s radar,” it said.
But it said that extremist movements are “gaining strength in ways that threaten US and allied interests” and have found a “range of new opportunities for regrouping, plotting and collaborating” in Afghanistan.
It pointed to the Daesh, Taliban rivals who have nonetheless found a haven in Afghanistan and were implicated in a major attack in March in Moscow, and the Tehreek-e-Taliban Pakistan, which has been waging an armed campaign against Islamabad.
The report called on the United States to be “less restrictive” on the use of force against threats in Afghanistan — not a return to conventional war but pursuing military action against direct threats identified to the United States.
It also called for the United States to consider “shows of force” such as flying drones to pressure Taliban leaders to sever persistent ties with Al-Qaeda.
Noting a drop in US intelligence and capabilities since the withdrawal, the study called for the United States again to work with Pakistan, including on fighting militants and securing long-term US access to Pakistani airspace.
Pakistan became a top US aid recipient during the Afghanistan war but US officials long believed that Islamabad was playing a double-game and keeping the Taliban alive.
The Biden administration has shown little interest in engaging Pakistan, an inclination not helped by the tumultuous politics inside the world’s fifth most populous country.
“You’ve got a lot of people currently serving at the highest levels of the US government who have a strong distaste for Pakistan based on experience during the 20 years in Afghanistan,” said Laurel Miller, co-chair of the study group, who served as the US special representative for Afghanistan and Pakistan and now heads The Asia Foundation.
“There’s a strong feeling of Pakistan having been disingenuous, to say the least, with the United States,” she told AFP.
“But there are certain immutable realities, which include that Pakistan is next door to Afghanistan, which currently is a sanctuary for terrorist groups,” she said.
“So I think there’s just no choice other than to have a kind of relationship with Pakistan that enables the US to protect its own interests in the region.”
She said that US policy on Pakistan was also affected by the “zero-sum view” of India, a growing partner of Washington which has long criticized US ties with its neighbor and historic adversary.
The study called for the United States to make clear to Pakistan “serious negative repercussions” if militants based in the country again attack India.
The report’s other co-chair was Michael Nagata, a retired army lieutenant general with experience in counterterrorism.
Other members of the group included Anne Patterson and Michael McKinley, former US ambassadors to Pakistan and Afghanistan respectively, and prominent scholars.
Pakistan vows to foster efficiency, sustainable growth in public entities amid privatization push
- Finance minister chairs cabinet committee meeting to review privatization agenda of public entities
- Pakistan agreed to overhaul loss-making entities in exchange for a financial bailout from IMF last year
KARACHI: Key ministers of the government, including Finance Minister Muhammad Aurangzeb this week vowed to ensure efficiency and sustainable growth in Pakistan’s public entities as Islamabad moves to privatize state-owned enterprises (SOEs) that have accumulated losses worth billions over the years.
Pakistan agreed to overhaul its public entities under a $3 billion financial bailout agreement it signed with the International Monetary Fund (IMF) last year, a deal that helped it avert a sovereign debt default in 2023. The IMF has said Pakistan’s SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is currently negotiating with the international lender for a larger, longer program for which it must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.
Among the main entities Pakistan is pushing to privatize is its national flag carrier, Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.
Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises on Monday which was attended by ministers of maritime affairs, economic affairs, housing and works, the governor of Pakistan’s central bank and other officials. The meeting was held to evaluate the performance of the country’s public entities and review the progress of the government’s privatization agenda.
“The meeting concluded with a commitment to fostering transparency, efficiency, and sustainable growth within the State-Owned Enterprises, reflecting the government’s dedication to ensuring the optimal utilization of public resources,” the finance ministry said.
Aurangzeb directed concerned ministries and divisions to submit proposals for the categorization of their respective public entities by May 20. The step is aimed at reviewing the rationale for retaining any commercial functions within the public sector, the ministry said.
“The objective is to retain only the essential functions within the public sector & to assign the remaining functions to the private sector,” it said. “At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.”
The finance minister noted that there were gaps in the governance and financial management of some companies which needed to be addressed. He directed the vacancies on the Board of Directors (BoD) of some companies to be filled and for others to have their accounts audited.
“The Chairman emphasized that continued losses & fiscal haemorrhage had to be stopped as a national priority,” the finance ministry said. “Therefore SOEs restructuring & privatization agenda needed to be expedited in order to improve the efficiency of these entities.”
Prime Minister Shehbaz Sharif has assured the business community that the privatization process would be a transparent one and has warned the country’s bureaucracy that the government would not tolerate any delays in it.
Pakistani fintech JazzCash partners with UAE’s du Pay for cross-border payments
- du Pay, licensed by the UAE central bank, offers international money transfers, mobile top-ups, bill payments and salary deposits
- JazzCash says both firms will explore new avenues of cooperation, leveraging their strengths to expand JazzCash’s footprint in UAE
KARACHI: JazzCash, a leading Pakistani fintech organization, on Monday announced its partnership with Emirati financial services provider, du Pay, for cross-border payments.
The signing of a memorandum of understanding (MoU) marked the “first-ever” collaboration between a Pakistani fintech organization and du Pay to simplify the transfer of payments from the United Arab Emirates (UAE) to Pakistan, according to JazzCash.
The Gulf nation hosts a vast Pakistani expatriate community and holds the distinction of being the second-largest contributor of remittances to Pakistan after Saudi Arabia, with $548 million transferred to Pakistan in March alone.
Aamir Ibrahim, CEO of Jazz, the parent company of JazzCash, said remittances from Pakistani expats were vital to Pakistan and this collaboration would help ensure these contributions had a lasting impact on Pakistan’s economic stability.
“We are committed to using technology to enhance financial inclusion,” Ibrahim was quoted as saying in a JazzCash statement. “Our partnership with du Pay simplifies payments for Pakistanis everywhere, emphasising our role in boosting economic growth.”
du Pay, licensed by the UAE central bank, offers a diverse suite of services, including international money transfers, peer-to-peer (P2P) transfers, mobile top-ups, bill payments, and salary deposits through an IBAN, according to the statement.
As strategic allies, both firms will be exploring new avenues of cooperation, leveraging their strengths to drive innovation and expand JazzCash’s footprint in the UAE markets.
“As a leading digital telco, we are committed to delivering exceptional services and solutions to our customers, and we believe this partnership between du Pay and JazzCash, a leading mobile money operator in Pakistan, will ensure streamlined customer experience with great benefits,” said Fahad Al Hassawi, CEO of du.
“du Pay will offer a simplified and secure digital service that will advance financial inclusion and positively impact the lives of Pakistani nationals.”
Pakistan, US discuss jointly countering Daesh, Pakistani Taliban to advance regional security
- Development comes amid renewed violence in Pakistan’s western regions that border Afghanistan, where TTP and Daesh are said to have sanctuaries
- A Pakistani military spokesman last week said a suicide attack that killed five Chinese engineers in March was planned in neighboring Afghanistan
ISLAMABAD: Pakistan and the United States (US) have discussed jointly countering Daesh, Pakistani Taliban and other militant groups to advance regional security and address transnational threats, the Pakistani foreign ministry said on Monday.
The consensus was reached during a recently held Pakistan-US Counterterrorism Dialogue in Washington DC, which was co-chaired by Pakistan’s Additional Foreign Secretary Syed Haider Shah and US State Department coordinator for counterterrorism, Elizabeth Richard.
The dialogue underscored the cooperation between Pakistan and the US in addressing challenges to regional and global security, including the Tehreek-e-Taliban Pakistan (TTP) and Daesh-Khorasan, with discussions centered on the counterterrorism landscape in the region.
“Pakistan and the United States recognize that a partnership to counter Daesh-Khorasan (Daesh-Khorasan), TTP and other terrorist organizations will advance security in the region and serve as a model of bilateral and regional cooperation to address transnational terrorism threats,” the Pakistani foreign ministry said in a statement.
“Both governments resolved to increase communication on these topics and continue collaboration to detect and deter violent extremism through whole-of-government approaches.”
The development came amid a renewed wave of violence in Pakistan’s western regions that border Afghanistan, where the TTP and Daesh are said to have their sanctuaries.
Islamabad has accused Kabul of not doing enough to tackle militant groups targeting Pakistan from across the border. Last week, a Pakistani military spokesman said a suicide bomb attack that killed five Chinese engineers in March was planned in neighboring Afghanistan, and that the bomber was also an Afghan national.
Kabul has denied allowing the use of its territory against any country and says rising violence in Pakistan is a domestic issue of Islamabad.
During the dialogue, Pakistani and US officials emphasized the importance of expanded counterterrorism collaboration and capacity-building, including exchanges of technical expertise and best practices, investigative and prosecutorial assistance, provision of border security infrastructure and training, and strengthening multilateral engagement such as in the United Nations and the Global Counterterrorism Forum, according to the Pakistani foreign ministry.
“The Counterterrorism Dialogue reaffirms Pakistan’s and the United States’ shared determination to contribute to both regional and global security and stability,” it added.
Three killed in clashes with paramilitary Rangers amid Azad Kashmir protests
- Protesters have been calling for reduction in wheat, electricity prices in Himalayan valley through days-long demonstrations
- Earlier on Monday, PM approved $83 million wheat flour and electricity subsidy and Azad Kashmir announced new prices
ISLAMABAD: At least three people were killed and scores injured as protesters clashed with paramilitary Rangers troops in Azad Kashmir, officials said on Monday, despite Pakistan’s announcement of a $83 million subsidy to reduce wheat flour and electricity prices in the region.
The development comes amid days-long protests in the disputed Himalayan valley, which is administered by Pakistan, led by the Jammu Kashmir Joint Awami Action Committee (JAAC), which is demanding subsidized wheat flour and that electricity prices be set as per the hydropower generation cost in Azad Kashmir.
On Saturday, a policeman was killed in clashes between police and demonstrators as authorities blocked a rally from moving toward Azad Kashmir’s capital, Muzaffarabad, from the region’s Poonch and Kotli districts. Weekend talks between the JAAC core committee and AJK Chief Secretary Dawood Bareach in Rawalakot ended in a stalemate and a planned march by protesters to the capital resumed on Monday.
Azad Jammu and Kashmir (AJK) Prime Minister Anwar-ul-Haq said at a press conference on Monday the regional government had notified reduced prices of wheat flour and electricity after Pakistani Premier Shehbaz Sharif okayed Rs23 billion ($83 million) in subsidies.
“Despite the issuance of notifications to reduce electricity and wheat prices, along with addressing other demands, protesters attacked a Rangers convoy, leading to an exchange of gunfire that resulted in the death of three civilians and many injuries on both sides,” Abdul Majid Khan, a spokesperson of the AJK government, told Arab News.
“The deployment of Rangers is not uncommon and their [protesters] attack on the convoy was uncalled for as it occurred after the government had already accepted their demands,” he added.
“The situation is currently under control and we are trying to bring calm as the government will not allow mischievous elements to succeed.”
Amjad Ali Khan, a member of the JAAC core committee member, said the protesters had been contemplating calling off the protest after the price reduction announcements, but the situation had “completely changed” after the killings of the three demonstrators.
“At the moment, we are not clear about the exact number of injured as many are injured, while three deaths have been confirmed,” he told Arab News.
Amjad said protesters got agitated by the heavy deployment of the paramilitary Rangers and clashes resultantly erupted in different areas of Muzaffarabad.
“Although the actual issue for which demonstrations started [protesting] has been settled, this new development has changed everything and now we will decide our new course of action tomorrow (Tuesday),” he added.
The Himalayan territory of Kashmir has been divided between India and Pakistan since their independence from Britain in 1947, with both countries ruling part of the territory, but claiming it in full. The western portion of the larger Kashmir region is administered by Pakistan as a nominally self-governing entity while India rules the southern portion of the larger Kashmir region as a union territory.
While the Indian portion has faced an ongoing insurgency for decades and multiple armed attempts by the state to quell it, the Pakistani side has remained relatively calm through the decades, though it is also highly militarized.
SUBSIDY
Earlier on Monday, AJK PM Haq announced a reduction in the prices of wheat flour and electricity in the region, thanking Pakistan PM Shehbaz Sharif for approved a Rs23 billion ($83 million) subsidy to make it possible.
“He [Sharif] issued instructions and the things that had been pending for a long time with regard to subsidy, electricity prices, resources, have been provided to Azad Kashmir,” Haq said.
The new price of electricity in the region will be Rs3 per unit for 1-100 units, Rs5 per unit for 100-300 units and Rs6 per unit for those consuming above 300 units. Commercial unit price will be Rs10 for 1-300 units, and Rs15 for above 300 units, according to Haq. A 40kg bag of wheat flour, which was previously priced at Rs3,100, will now be sold for Rs2,000.
“This would cost more than Rs23 billion to the national exchequer,” Haq added, “which the [federal] government and the prime minister of Pakistan gladly accepted.”
