Pakistan introduces 'smart lockdowns' in virus epicenters

A plain clothes policeman wearing a facemask seals off a street with barbed wire at a residential area after some people tested positive for coronavirus during a government-imposed nationwide lockdown as a preventive measure against the COVID-19 coronavirus, in Islamabad on April 30, 2020. (AFP)
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Updated 03 June 2020
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Pakistan introduces 'smart lockdowns' in virus epicenters

  • 'Smart lockdowns' to replace nationwide lockdowns concentrating on sealing COVID-19 hotspots
  • Face masks to be made compulsory, movement of elderly, children, and people with health issues to be banned outside

ISLAMABAD: In a bid to prevent further spread of the coronavirus, a full-scale lockdown of Pakistan was not feasible given its huge human and economic cost, but the partial lockdown itself has not yielded entirely desired results to stop the zoonotic disease which has cast its shadow nationwide with domestic transmission of the contagion up by 84 percent, forcing the government back to the drawing board for a smart new plan -- the "smart lockdown."

“Every city has one or two cases so placing entire Pakistan under quarantine was never possible,” said Islamabad’s Deputy Commissioner Hamza Shafqaat, “so the next possible solution was to impose a partial lockdown to slow down the spread of the disease while we focus on building our own capacity and enhancing our protection infrastructure but now we are moving to smart lockdowns.”

As Pakistan has eased restrictions on the lockdown, the smart lockdown features concentrate on sealing any section or area of a city deemed a COVID-19 epicenter, shutting it down and cutting it off completely from the outside for at least 14 days.

Shafqat explained that the smart lockdown strategy has produced encouraging results halting spread of the virus. 
Islamabad administration also plans to ban movement of the elderly, people with health problems, and children as part of the smart lockdown procedures and says face mask will become compulsory carrying hefty fines imposed on those found in violation.

“These measures we anticipate will bring down the spread of the disease down to 10 percent” he said adding that the move will allow resumption of most of the business activity saving peoples’ livelihoods.

Shafqaat admits “that would be a huge challenge” and “implementing SOPs through police in the entire city” is another challenge he said adding “and for that we need volunteers and massive awareness, and we are working on it.”

Arab News was given a rare opportunity to exclusively cover COVID-19 epicenters placed under smart lockdowns in Islamabad where entire towns and sections of residential sectors were sealed with certain exceptions at the discretion of the government.

Outside the town of Shah Allah Ditta, densely populated with 30,000 people, security forces stood at entry and exit points guarding moveable barriers, enforcing a complete lockdown. Government permitted transports carrying food and rations for the quarantined community of the city’s low-income segment were permitted inside the perimeter. One resident attempting to leave the zone was stopped and told to return home. An ambulance travelled on a twisted road as the Assistant Commissioner gave the official account of the situation with barely a soul in sight other than the security personnel.

“After discovering two confirmed (coronavirus) cases and through contact tracing finding seven or eight more positive cases in a close vicinity, authorities decided to lock down this village or town,” said Gohar Zaman, who assists the deputy commissioner.

“This is one of the strategies, smart approaches we have been doing in Islamabad. We started from Bara Kahu, then we shifted to Shehzad Town. The mains idea is to stop the virus from spreading across the city and this lockdown is very different from the lockdown in Islamabad because we totally seal the area,” Zaman said.

“We do give exceptions to medical emergencies or serious emergencies. We do allow a couple of stores to operate so people can buy food items. We are also providing them daily rations through support of philanthropists and civic society. We have convinced some from the business community to provide Iftaar boxes. A list has been made of people in the town who are at the bottom of the hierarchy and then there are mobile food vans and trucks to ensure food security as well”, the assistant commissioner said.

At sector I-10, similar situation emerged with smart lockdown procedures employed following over 20 positive cases according to the district official. Half the sector which borders Rawalpindi was sealed. Days later, lockdown perimeter was reduced to a few streets after sections of the residential area tested negative. Zaman said these actions were necessary because of the uncooperative attitude of people with authorities looking after the health safety of the city, agreed that the emergency imposition of a full lockdown was an inconvenience to people.

Back at the deputy commissioner’s office, Arab News was given a tour of the capital’s COVID-19 nerve center and the digitization steps, some under the directives of Prime Minister Imran Khan were shared which are also part of the smart plans to reduce chances of infection through e-governance and virtual healthcare. Arab News has more in this video.


Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’

Updated 22 February 2026
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Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’

  • Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
  • Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says

KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.

Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.

Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.

The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.

“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.

“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.

The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”

With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.

According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.

“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”

Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.

“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.

“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.