ISLAMABAD: US Ambassador Donald Blome expressed optimism over the ongoing negotiations between Pakistan and the International Monetary Fund (IMF) on Wednesday, as the global lending agency confirmed its executive board meeting for April 29 to discuss the approval of $1.1 billion funding for the South Asian state.
The funding is the second and last tranche of a $3 billion standby arrangement with the IMF, which it secured last summer to avert a sovereign default and which runs out this month. Pakistan is now seeking a new long-term and larger IMF loan, with finance minister Muhammad Aurangzeb saying Islamabad could secure a staff-level agreement on the fresh program by early July.
Ambassador Blome praised the performance of the country’s economic team in a meeting with the newly elected Senate chairman, Yousaf Raza Gillani, at the Parliament House wherein he also discussed strengthening of US-Pakistan bilateral relations.
“Acknowledging the positive economic indicators of Pakistan, Ambassador Blome noted the downward trend in inflation and high dollar reserves, stating that the IMF’s positive feedback would encourage investors,” said an official statement issued after the meeting. “He highlighted the flourishing gaming industry in Pakistan and called for enhanced [US-Pakistan] cooperation in the digital sector.”
The American envoy also noted the potential for further economic cooperation between the two countries in his conversation.
Pakistan’s $350 billion economy faces a chronic balance of payment crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year — three-time more than its central bank’s foreign currency reserves.
Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the current fiscal year ending June, while average inflation is projected to stand at 24 percent, down from 29.2 percent in fiscal year 2023/2024. Inflation soared to a record high of 38 percent last May.
With input from Reuters

RAWALPINDI: At a small tea shop in Pakistan’s garrison city of Rawalpindi, Nazir Hussain pours piping hot tea from a kettle into small cups and hands them away to eager customers, many of them regulars who have been frequenting the shop for decades.
This is the scene from a typical evening at Ludhiana Tea Shop, located in the narrow streets of Rawalpindi’s old Lal Kurti area. The tea shop takes its name after the northwestern Indian city of Ludhiana, from where its owners migrated to Rawalpindi in 1947.
“My grandfather named this business in the memory of his hometown in India,” Hussain, who took charge of the shop in 1976, told Arab News, adding that he also sold dairy products and ghee.
“We are a family of milk sellers,” he said. “In India, we used to do the same. We were milk sellers and we used to own buffaloes.”
The shop has been serving tea to customers for the past 77 years. Agha Asghar Saeed, 72, is one of them and has been coming here since he was young.
“I was born here. I spent my childhood here, my youth and now my old age as well,” he told Arab News. “I’ve been having this tea since then.”
During the Muslim holy month of Ramadan, Saeed would break his fast at home but have tea at Ludhiana Tea Shop.
“I am addicted to this tea,” he explained.
But what inspires such loyalty in customers?
“You have to buy good quality milk,” Hussain said, adding that he purchased pure and organic milk for his shop that was a bit expensive. “Not everyone knows how to buy good milk.”
He maintained that most milk sellers in Pakistan did not sell pure milk, making him take several sips while buying to check the fat content.
Just like the milk, he continued, the quality of the tea leaves was also important.
The price of one cup of tea used to be around five paisas several years ago.
“Now, we sell it for Rs60 (22 cents),” he added.
The rich taste of Ludhiana Tea Shop means Muhammad Hasnain and his friends visit it every day rather than go to other tea shops in the neighborhood.
“Obviously, everybody wants a good bang for their buck,” Hasnain told Arab News. “The most important thing for anyone is that the quality should be good, and both quality and quantity are good here.”
Ludhiana Tea Shop offers customers deep-fried sweet and savory snacks, such as pakoras, samosas, jalebis and spring rolls, delectable items popularly consumed in Pakistan with tea.
Muhammad Shoaib Khan, a man in his 30s, informed he visited the shop with his friends at least a couple of times every day.
“We come on our bikes and travel for at least 1.5 kilometer on every trip,” Khan told Arab News. “It roughly adds up to 6 kilometers.”
Despite the cost of petrol, which has surged in recent times, Khan said he visited the shop for tea because it was worth it.
Hussain said he understood why customers came from far-off places just to have a cup of tea at his 77-year-old shop.
“Everyone cannot make good tea,” he said. “They don’t pour their heart in it. They lack passion. Making good tea is something that can only be done from the heart.”