KARACHI: The International Monetary Fund (IMF) said on Thursday it would wait for findings of its mission, currently holding talks in Islamabad, for further engagement with Pakistan, which seeks a fresh bailout from the global lender.
The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.
While Islamabad has said it expects a staff-level agreement by July, both Pakistani and IMF officials have refrained from commenting on the size of the program. The South Asian country is expected to seek around $7-8 billion bailout from the global lender.
An IMF team, led by Mission Chief Nathan Porter, this week met Pakistan Finance Minister Muhammad Aurangzeb, central bank governor, chairman of the Federal Board of Revenue and other officials in Islamabad to kickstart discussions on the country’s further engagement with the lender.
“Right now, a mission team led by Nathan Porter, our Mission Chief, is meeting with the authorities this week to discuss the next phase of our engagement with Pakistan,” IMF spokesperson Julie Kozack said at a press briefing on Thursday, when asked about the status of talks with Pakistan.
“Given that there is a mission on the ground, we will wait for them to complete their work and we will communicate the findings of the mission in due course.”
Pakistan narrowly averted a default last summer and its $350 billion economy has slightly stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high of 38 percent in May last year.
However, the South Asian country is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year, compared to negative growth last year.
Wall Street Bank Citi expects Pakistan to reach an agreement with the IMF of up to $8 billion program by end-July, and recommends going long on the country’s 2027 international bond.
“While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients.
“First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including Finance Minister Muhammad Aurangzeb.
Citi said it expected Pakistan’s international 2027 bond to offer a sweet spot to investors with sufficient liquidity and large upside as risks of default dissipate further.
IMF to wait for ‘findings’ of mission in Pakistan for further engagement with Islamabad — spokesperson
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IMF to wait for ‘findings’ of mission in Pakistan for further engagement with Islamabad — spokesperson
- An IMF team this week met top Pakistani officials in Islamabad to kickstart discussions on a fresh bailout
- The cash-strapped South Asian country is expected to seek around $7-8 billion bailout from the global lender
Two suicide bombings at Pakistan military base kill at least nine people, injure 25
- A group affiliated with the Pakistani Taliban militant group claimed responsibility for the attack in Bannu
- The military did not immediately confirm casualties, but Bannu District Hospital said nine people were dead
PESHAWAR: Attackers launched two suicide bombings to breach a wall at a military base in northwestern Pakistan while others stormed the compound and were repelled in violence that killed at least nine people and injured 25, officials and a local hospital said.
A group affiliated with the Pakistani Taliban militant group claimed responsibility for the attack in Bannu, in Khyber Pakhtunkhwa province, and said dozens of Pakistani security forces were killed. The military did not immediately confirm any casualties, but Bannu District Hospital said at least nine people were dead.
Plumes of gray smoke rose into the air and gunshots continued after the two explosions, police officer Zahid Khan said. Four of those killed were children, hospital officials said. The victims lived close to the scene of the blasts.
The two suicide bombers blew themselves up near the wall of the sprawling military area, a security official said, speaking on condition of anonymity because he was not authorized to speak to reporters.
“After a breach in the wall, five to six more attackers attempted to enter the cantonment but were eliminated. Operations in the area are still ongoing,” the security official said.
The blasts happened after sunset, when people would have been breaking their fast during the Muslim holy month of Ramadan.
Jaish Al-Fursan claimed responsibility for the attack, the third militant assault in Pakistan since Ramadan started Sunday. In a statement, the group said the source of the blasts were explosive-laden vehicles.
Militants have targeted Bannu several times. Last November, a suicide car bomb killed 12 troops and wounded several others at a security post.
In July, a suicide bomber detonated his explosives-laden vehicle and other militants opened fire near the outer wall of the military facility.
Pakistan announces probable players for AFC Asian Cup qualifying match against Syria
- Pakistan have been placed in Group E alongside Syria, Afghanistan and Myanmar in the Asian Cup qualifiers
- Stephen Constantine has been reappointed as Pakistan head coach for the match against Syria on March 25
ISLAMABAD: The Pakistan Football Federation (PFF) on Tuesday announced the list of probable players for the forthcoming AFC Asian Cup 2027 qualifiers away match against Syria.
The development came a day after the Fédération Internationale de Football Association (FIFA) lifted its international suspension against the South Asian country.
FIFA hit Pakistan on Feb. 6 with a third international suspension in less than eight years after the federation rejected its electoral reforms. Following the suspension, the PFF unanimously approved FIFA’s proposed constitutional amendments in an extraordinary meeting in Lahore last Thursday.
The lifting of the suspension will enable Pakistan to take part in the AFC Asian Cup. The green shirts will kick off their AFC Asian Cup 2027 qualifying campaign with an away match against Syria.
“The [Pakistan-Syria] match will be played on March 25, 2025 in Al-Ahsa, Saudi Arabia,” the PFF said in a statement.
Stephen Constantine, who previously served as the Pakistan head coach from late 2023 until mid-2024, has been reappointed as head coach for the match against Syria, according to the PFF.
The AFC Asian Cup qualifiers will be played on a home-and-away basis, with Pakistan placed in Group E alongside Syria, Afghanistan and Myanmar.
PAKISTAN PROBABLES
Goal-Keepers: Yousuf Butt, Saqib Hanif, Abdul Basit and Adam Khan
Defenders: Abdullah Iqbal, Easah Suliman, Haseeb Khan, Junaid Shah, Mamoon Moosa, Mohammad Fazal, Abdul Rehman and Waqar Ihtisam
Midfielders: Alamgir Ghazi, Ali Uzair, Ali Zafar, Muhammad Umar Hayat, Rahis Nabi, Toqeer ul Hassan, Umair Ali and Moin Ahmed
Forwards: Fareedullah, Harun Hamid, Imran Kayani, Mckeal Abdullah, Abdul Samad, Shayak Dost and Muhammad Adeel Younas
Pakistan’s finance chief says economic reforms ongoing as IMF begins $7 billion loan review
- Successful review and subsequent approvals can take a few weeks before IMF disburses $1.1 billion
- Muhammad Aurangzeb says Pakistan is ‘well positioned’ to discuss economic performance with IMF
KARACHI: Pakistan is continuing with macroeconomic reforms, its finance chief said on Tuesday, as a visiting International Monetary Fund (IMF) delegation formally kicked off the country’s economic review under a $7 billion loan program.
This is the first review carried out by the IMF since Pakistan secured the loan under the Extended Fund Facility (EFF). A nine-member mission of the global lending agency, led by Nathan Porter, landed in the country a day earlier to assess Pakistan’s economic performance before the disbursement of a $1.1 billion tranche.
Pakistan’s macroeconomic indicators have gradually improved since it secured the IMF bailout last year. The country’s consumer price index maintained a downward trend last month, hitting a more than 9-year low at 1.51 percent year-on-year in February.
Pakistan’s current account recorded a surplus of $682 million from July 2024 till January 2025, compared to a deficit of $1.8 billion during the same period of the previous year, according to the central bank data. The Pakistan Stock Exchange (PSX) also reported record gains last year, with frequent bullish trends dominating the market.
“[The] macroeconomic stability has been achieved in the country, and structural reforms are ongoing,” Federal Minister for Finance and Revenue Muhammad Aurangzeb said at an event in Islamabad.
Earlier in the day, Pakistan’s finance ministry released photos showing Aurangzeb, his economic team and the IMF delegation, led by Nathan Porter, holding a meeting.
A successful review and subsequent approvals can take a few weeks before the Washington-based lender releases the funds. However, Pakistan’s finance chief told Reuters his country was “well positioned” to discuss its performance with the visiting IMF team, with which it is expected to hold both technical and policy level talks in the coming days.
According to Pakistan’s Dawn newspaper, the IMF team has expressed concerns about Pakistan’s slow tax collection rate against the required target of Rs1.3 trillion ($4.65 billion) until June. The tax collection is likely to fall short by about Rs600 ($2.15 billion).
However, the newspaper noted, the international lender might look the other way, given the rest of the positive macroeconomic indicators, including a higher-than-expected budget surplus the debt-ridden nation is expected to show in its fiscal plan in June.
“Except for revenue collections, Pakistan has achieved most of its quarterly quantitative targets,” Mohammed Sohail, chief executive officer at Topline Securities, said while speaking to Arab News.
“The IMF may insist on increasing and broadening taxes in the coming budget,” he added.
One of the IMF’s requirements for Pakistan is to privatize loss-making state-owned enterprises, including the national airline and power distribution companies.
The process to sell off such enterprises has already begun, with the government having hired a financial adviser, according to Business Recorder newspaper.
Citing unnamed officials at the power division, the English-language daily said all power sector benchmarks agreed upon with the IMF were progressing as planned.
Kohli helps India beat Australia to reach Pakistan-hosted Champions Trophy final
- Steve Smith top-scored for Australia with 73 runs from 96 balls
- India’s Varun Chakravarthy, Ravindra Jadeja took two wickets each
DUBAI: Virat Kohli led the way with 84 runs off 98 balls as India beat Australia by four wickets on Tuesday to reach the final of the Champions Trophy.
Kohli’s 74th ODI half-century helped India finish with 267-6 in reply to Australia’s 264 all out in the first semifinal. Pacer Mohammed Shami spearheaded India’s bowling and took 3-48 in 10 overs to restrict Australia on a slow wicket.
“This game is all about pressure – if you go deep, the opposition usually gives in,” Kohli said.
Steve Smith top-scored for Australia with 73 off 96 balls. Indian spinners Varun Chakravarthy and Ravindra Jadeja grabbed two wickets each.
For India, Shreyas Iyer helped put on 91 off 111 balls for the third wicket and anchor the chase.
Lokesh Rahul finished with 42 not out off 34 balls as India registered the highest chase against Australia in an ICC event.
India’s victory confirms that the final will be played in Dubai, where the 2013 champions will face the winner between South Africa and New Zealand, who play on Wednesday in Lahore, Pakistan. Lahore would have hosted the final if India had exited the tournament.
After Australia won the toss and opted to bat, Shami struck early as opener Cooper Connolly was caught behind for a nine-ball duck.
Smith anchored the Australian innings with a sedate half-century as he put on 50 off 32 balls for the second wicket with Travis Head, who started slow but hit five fours and two sixes to score 39 off 33 balls. Chakravarthy had him caught in the ninth over, with Shubman Gill taking a fine running catch in the deep.
Marnus Labuschagne scored 29 and added another 56 runs with Smith for the third wicket but India’s spinners dominated the middle overs after Rohit Sharma changed his bowlers around.
Jadeja trapped Labuschagne lbw in the 23rd over, and then Josh Inglis was out caught four overs later.
It brought Smith and Carey together and they added 54 off 58 balls before Shami returned to bowl Smith for a timely breakthrough in the 37th over. It became a double blow as Axar Patel bowled Glenn Maxwell (7) in the next over.
At 205-6, Carey dug Australia out of trouble by hitting eight fours and a six to shepherd the third powerplay for his side, reaching 50 off 48 balls.
After Carey was run out, Australia crossed the 250-mark in the 48th over and Ben Dwarshuis scored 19 runs with a four and a six, but the total was still under par by about 20-30 runs.
Chasing 265, Sharma hit three fours and a six to score 28 off 29 balls, but Shubman Gill was out bowled for eight. Connolly trapped Sharma lbw in the eighth over, bringing Kohli and Iyer together.
Their partnership proved to be key.
Kohli hit five fours in all and reached 50 off 53 balls. Together, they never let the required run-rate go too high as India exerted control over the chase.
Zampa missed a return catch off Kohli, but made amends by bowling Iyer at the other end. It didn’t trigger the required collapse as Axar Patel scored a calm 27 off 30 balls.
The game went deep as India did lose wickets whenever it looked like it was in complete control – Patel was bowled in the 35th over, and Kohli was caught at the boundary off Zampa against the run of play in the 43rd.
Rahul finished things off with two fours and two sixes, finishing unbeaten in the end. Hardik Pandya scored 28 off 24 balls, with three sixes, to move things along, as India was never really bothered in its pursuit.
“At the halfway stage, we felt like it’s a reasonable score,” Sharma said. “The nature of this pitch doesn’t allow you to play your shots. We were clinical with the bat, and calm and composed in our chase.”
Iraqi scholars seek Islamic finance collaboration with Pakistan during stock market visit
- Half of Iraq’s banks operate on Islamic principles, with the sector boasting a value of a trillion dinars in six years
- Pakistan has been transitioning toward Islamic finance since a court ruling declared interest to be against Shariah
KARACHI: A delegation from Iraq’s Scientific Foundation for Financial Transactions, led by prominent scholars, announced plans on Tuesday to collaborate with the Pakistani banking sector by adopting its Shariah-compliant financing models during a visit to the Pakistan Stock Exchange (PSX), according to an official statement.
Pakistan has been actively transitioning toward Islamic finance since April 2022, after the Federal Shariat Court (FSC) ruled that the prevailing interest-based banking system violated Islamic principles, directing the government to fix the problem within five years.
The ruling came as the country faced significant economic challenges, ultimately bringing it closer to sovereign debt default in 2023 before securing a $3 billion Stand-By Arrangement from the International Monetary Fund (IMF) in July of that year.
Despite these hurdles, the PSX demonstrated remarkable resilience, with its benchmark KSE-100 Index reaching an all-time high of 81,459 points in September 2024, earning recognition as one of the world’s best-performing equity markets. The PSX also came to symbolize Pakistan’s economic recovery, attracting foreign delegations, most recently the Iraqi scholars.
“Our objective is to leverage Pakistan’s proven models of Islamic finance to benefit our own market,” the PSX statement quoted one of them as saying. “With 50 percent of Iraqi banks operating on Islamic principles and remarkable growth— from 200 billion dinars to a trillion dinars over the past six years— we see immense potential for collaboration in Islamic finance.”
PSX officials provided an overview of Pakistan’s capital market and highlighted the country’s evolving landscape of Islamic finance.
“We are thrilled to host our esteemed Iraqi counterparts and explore partnership opportunities,” PSX Managing Director Farrukh H. Sabzwari said. “By focusing on capacity building and product innovation, we are confident that our collaborative efforts will benefit both Pakistani and Iraqi capital markets.”
The visit is part of a series of high-level exchanges between Pakistan and Iraq, aiming to deepen bilateral cooperation across various sectors. The ongoing visit of the Iraqi scholars also marks a step toward expanding economic and financial collaboration, particularly in Islamic finance.
