KARACHI: The International Monetary Fund (IMF) said on Monday talks for a seventh review of a $6 billion loan program would continue with Pakistan once a new government was formed after the South Asian country’s prime minister announced fresh elections last week.
Pakistan and the IMF were negotiating for the completion of the seventh review under the IMF’s Extended Fund Facility program, which has so far disbursed $3 billion out of a stipulated $6 billion. The discussion had stalled over the fund’s concerns about a $1.7 billion relief package, which included the freezing of petroleum prices and a cut in electricity tariffs in response to rising inflation.
“The Fund looks forward to continue its support to Pakistan and, once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis program engagement,” Esther Perez Ruiz, the IMF’s resident representative for Pakistan, said in a statement on Monday. “There is no concept of suspension within IMF programs.”
On Sunday the deputy speaker of the National Assembly of Pakistan, who belongs to PM Khan’s party, blocked a vote on a no-confidence motion from taking place, and the president subsequently dissolved the lower house of parliament on the PM’s advice, triggering political and constitutional crisis in the country.
Pakistan’s ministry of finance officials are hopeful IMF talks will continue when a new finance minister takes charge.
“We have shared our documents with fund officials and once the new finance minister will take the charge the talks with the fund will start,” Muzzamil Aslam, the spokesman for the finance ministry, told Arab News.
Pakistan expects to receive around $1 billion after the completion of the seventh review of the loan program.
Pakistan has faced significant pressure on its foreign-exchange reserves in recent months, amid elevated global commodity prices and a recovery in domestic demand. The Russia-Ukraine military conflict, which has driven up global commodity prices, has amplified pressure on its external position. The country is a net oil importer, with petroleum and related products accounting for about 20 percent of total imports.
Pakistan’s current account deficit amounted to more than $12 billion between July 2021 and February 2022, a stark contrast to a $1 billion surplus in the same period a year earlier. The South Asian country is expected to witness a widening current account deficit to 5-6 percent of GDP.
IMF says will continue talks with Pakistan on loan program once new government formed
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IMF says will continue talks with Pakistan on loan program once new government formed
- Pakistan and IMF were negotiating for the completion of seventh review under IMF’s Extended Fund Facility program
- The IMF has so far disbursed $3 billion of a stipulated $6 billion, the program was initially approved in July 2019
Pakistan military says 13 militants killed in counterterror operations across northwest
- Military says counterterror operations launched in Bajaur, Bannu, Dera Ismail Khan, Khyber and South Waziristan districts
- The counterterror operations take place as Afghanistan and Pakistan remain locked in conflict since late last month
ISLAMABAD: Pakistani security forces this week killed 13 militants in five separate counterterror operations in the northwestern Khyber Pakhtunkhwa (KP) province, the military’s media wing said on Sunday, vowing to eliminate militancy from the country.
The counterterror operations were conducted on Mar. 6-7, with Pakistani troops killing five militants in the northwestern Bajaur district in the first operation. In two other encounters in Bannu and Dera Ismail Khan district, security forces killed three militants belonging to the Tehreek-e-Taliban Pakistan (TTP) militants, the Inter-Services Public Relations (ISPR) said.
Meanwhile, five other militants were killed in two separate counterterror operations in Khyber and South Waziristan districts in which five more militants were slain.
“Weapons and ammunition were also recovered from Indian-sponsored killed khwarij, who remained actively involved in numerous terrorist activities in the area,” ISPR said in a statement.
Pakistan’s military frequently uses the term “Fitna al Khwarij” to describe TTP militants. The militant outfit has carried out some of the deadliest attacks against Pakistani civilians and security forces since 2007 in a bid to impose their strict brand of Islamic law across the country.
Islamabad accuses Afghanistan of sheltering the TTP and facilitating their attacks against Pakistan, a charge Kabul has denied. Pakistan also accuses India of supporting these militant groups, which New Delhi has repeatedly rejected.
The counterterror operations take place as Pakistan remains locked in conflict with Afghanistan since late February.
The worst fighting between the two sides began late last month when Afghan forces launched a surprise attack on Pakistani military installations along their shared border. Afghanistan said the assault was in retaliation for Pakistan’s earlier airstrikes in February on what Islamabad described as militant camps inside Afghanistan.
Pakistan’s Information Minister Attaullah Tarar said on Saturday that Islamabad has killed 527 Afghan Taliban fighters and injured more than 755 since clashes began.
Afghanistan has also claimed attacking multiple Pakistani military bases and killing several Pakistani soldiers. Arab News has not independently verified the claims by both sides.
Pakistan has ruled out talks with Afghanistan and said it will continue its military operations in the country till it withdraws support for militant groups that Islamabad says operate from Afghanistan.
