ISLAMABAD: Pakistan’s expulsion of 18 international aid agencies will hurt 11 million aid recipients in a South Asian nation grappling with perilously low standards of education and health care, two Western diplomats said on Tuesday.
Affected NGOs include World Vision, Pathfinder, Plan International, Trocaire and Saferworld, while another group, ActionAid, last week said it was closing offices and laying off staff after the government told it to halt operations and leave.
Pakistan’s interior ministry confirmed it had rejected the appeals of 18 NGOs that had been allowed to continue operations while their appeals were being reviewed, but declined to give further details.
Aid groups and western diplomats have criticized a lack of transparency in the process of expulsion and the review of appeals by the aid agencies, saying they crimped humanitarian work.
“It is as appalling as it is inexplicable that the government has decided to deprive 11 million of its own people of much-needed support with no apparent reason,” a Western diplomat told Reuters, asking not to be identified.
The interior ministry did not immediately respond to the diplomats’ comments, instead referring Reuters to a statement by Pakistan’s foreign office last month.
In its Nov. 15 statement, the foreign office said policies regarding international aid groups were “fully aligned” with nationally determined development priorities and needs, and that Islamabad appreciated the assistance provided by donor agencies.
“Representatives of all 18 INGOs were given the right to appeal and the opportunity to provide additional details and discuss mutual concerns,” it added.
“As for shrinking space, the evidence is contrary to assertions. Out of 141 that applied for registration since October 2015, applications of 74 INGOs have been approved.”
A total of 27 international NGOs received expulsion orders late last year, but 18 appealed. Most of the affected groups worked on human rights and advocacy issues.
This week’s expulsion orders come amid complaints by Pakistani journalists about growing curbs on media freedom, though Islamabad has clamped down on foreign-funded aid groups for years.
“The international community is disappointed by the recent forced closures of a number of international NGOs,” another Western diplomat told Reuters.
“We have consistently expressed our concern to the government and continue to urge a clear and transparent process to ensure INGOs can operate effectively in Pakistan or understand the reasons for their eviction.”
Pakistan’s aid group clampdown could hit 11 mln people, diplomats say
Pakistan’s aid group clampdown could hit 11 mln people, diplomats say
- A total of 27 international NGOs received expulsion orders late last year, but 18 appealed
- Most of the affected groups worked on human rights and advocacy issues
Pakistan secures $1.2 billion as IMF clears reviews, flags gains on stability and reforms
- IMF praises Pakistan’s policy implementation despite challenging global environment and climate-driven shocks
- The Executive Board urges faster energy, SOE and governance reforms for macroeconomic and fiscal sustainability
KARACHI: The International Monetary Fund (IMF) approved Pakistan’s second review under its Extended Fund Facility (EFF) and the first review of its Resilience and Sustainability Facility (RSF), said a statement on Tuesday, unlocking about $1.2 billion in new financing while praising the country’s progress in stabilizing the economy despite recent floods.
The decision taken by the IMF Executive Board allows Islamabad to draw $1 billion under the EFF and $200 million under the RSF, bringing total disbursements under both arrangements to about $3.3 billion. The Fund said Pakistan’s policy implementation had improved financing conditions, strengthened reserves and preserved stability even as the country faced a challenging global environment and climate-driven shocks.
Under the 37-month EFF, approved last year in September, the IMF noted strong fiscal performance, including a primary surplus of 1.3 percent of GDP, a rebound in gross reserves to $14.5 billion by end-FY25 from $9.4 billion a year earlier and progress on rebuilding confidence. It noted a surge in inflation due to flood-related food price spikes but said it was expected to ease.
“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF Deputy Managing Director Nigel Clarke said. “Real GDP growth has accelerated, inflation expectations have remained anchored, and fiscal and external imbalances have continued to moderate.”
Clarke said Islamabad’s commitment to meeting its FY26 primary balance target while also addressing urgent post-flood relief signaled strong fiscal intent. He urged continued tax policy simplification and base broadening to build space for climate resilience, social protection and public investment.
The IMF official maintained a tight monetary stance should be continued to keep inflation within the State Bank Pakistan’s target range, while allowing exchange-rate flexibility and deepening the interbank market.
Additionally, he said financial regulation enforcement and capital market development were essential for a resilient financial sector.
The IMF also flagged energy sector reforms as “critical to safeguarding viability,” noting that timely tariff adjustments had helped curb circular debt but that Pakistan must now focus on reducing electricity production and distribution costs and addressing operational inefficiencies in both the power and gas sectors.
The statement also welcomed the publication of Pakistan’s Governance and Corruption Diagnostic report, a detailed IMF-supported assessment that maps out where government systems are vulnerable to inefficiency or misuse and recommends reforms to improve transparency, accountability and service delivery.
Further priorities include the privatization of state-owned enterprises and strengthening economic data quality.
Clarke said reducing Pakistan’s climate vulnerability was vital for long-term stability, referring to the RSF, a financing tool that provides long-term, low-cost loans to help countries address climate risks.
“The RSF arrangement is supporting efforts to strengthen natural disaster response and financing coordination, improve the use of scarce water resources, raise climate considerations in project selection and budgeting, and improve the information on climate-related risks in financing decisions,” he said.
Pakistan faced a prolonged economic crisis in recent years before it began implementing stringent IMF-recommended reforms, which have driven a gradual improvement in macroeconomic indicators over the past two years.
The country also remains one of the world’s most climate-vulnerable nations despite contributing less than one percent of global greenhouse-gas emissions.
It has endured a series of extreme weather events in recent years, most notably the 2022 super-floods that submerged one-third of the country, displaced millions and caused an estimated $30 billion in losses.
This year’s floods killed over 1,000 people and caused at least $2.9 billion in damage to agriculture and infrastructure, underscoring the scale of climate pressures facing the economy.
Economic experts told Arab News a day earlier that the Fund’s disbursements under the two loan programs would support the cash-strapped nation, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders.
“It obviously will help strengthen the external sector, the balance of payments,” said Samiullah Tariq, group head of research at Pakistan Kuwait Investment Company.
Another analyst, Shankar Talreja, head of research at Karachi-based Topline Securities, said the move was likely to send a positive signal to domestic and international investors about the government’s commitment to its reform agenda.
“This will help strengthen reserves and will eventually help a rating upgrade going forward,” he said.
