ISLAMABAD: Pakistan’s planning minister Asad Umar warned on Wednesday the government would impose stricter restrictions to curb the spread of the coronavirus, including completely shutting down major cities, after an alarming increase in COVID-19 cases and deaths in the country’s major centers.
According to the NCOC, the federal body responsible for combatting the coronavirus, 47,301 tests were conducted in Pakistan during the last 24 hours, with 5,499 confirmed COVID-19 cases, and 148 deaths. A day earlier, 137 people had died.
Addressing a news conference after chairing an NCOC meeting, Umar said it was time to act since hospitals were running out of space and more and more people needed supplemental oxygen.
“Let me make it clear,” the minister said, “the level at which the virus is spreading and our hospitals are filling up ... if we don’t act now, we will have no choice but to close down major cities.”
He said over 600 people were now going to the hospital daily with coronavirus-related complications, describing the ongoing week as “dangerous,” with the number of deaths recorded in recent days the highest since the beginning of the pandemic last February.
“We have reviewed the situation at the NCOC and found it to be bad,” he said. “We have taken decisions regarding the imposition of more restrictions which will be announced on Friday.”
Umar urged the people to follow officially prescribed measures to prevent the spread of the disease while urging the chief ministers of the four provinces to help.
“You are elected leaders,” he said. “People have voted for you and will listen to you.”
The minister also revealed that the coronavirus positivity rate was alarmingly high in places like Nowshera (38 percent), Mardan (33 percent), Rawalpindi (28 percent) and Lahore (27 percent).
He added that about 80 percent of ventilators were occupied in some cities, warning that the country was already consuming about 90 percent of the oxygen produced for medical purposes.
Pakistan says may lock down major cities after deadly COVID-19 surge
https://arab.news/r4qn6
Pakistan says may lock down major cities after deadly COVID-19 surge
- Planning minister reveals the coronavirus positivity rate has reached 38 percent in places like Nowshera
- Pakistan has reported 5,499 confirmed COVID-19 cases and 148 related deaths in the last 24 hours
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.
