Pakistan will continue to meet international financial obligations, finance minister assures US delegation

Robert Kaproth (L), Deputy Assistant Secretary of the US Department of the Treasury for Asia meeting the Federal Finance Minister Senator Mohammad Ishaq Dar on January 25, 2023, in Islamabad, Pakistan. (Photo courtesy: @FinMinistryPak/Twitter)
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Updated 26 January 2023
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Pakistan will continue to meet international financial obligations, finance minister assures US delegation

  • Ishaq holds a meeting with US treasury department officials, apprise them on the country’s economic outlook
  • A US official indicated earlier this week Pakistan was free to benefit from discounted Russian energy supplies

ISLAMABAD: Pakistan’s finance minister Ishaq Dar told a visiting United States delegation on Wednesday the government was doing it best to put the country’s economy on a positive trajectory and would continue to fulfil its international financial obligations.

The delegation was led by the deputy assistant secretary of the US Department of Treasury, Robert Kaproth, and included macroeconomists and other US officials.

Pakistan is facing huge economic challenges with a mounting current account deficit, depleting foreign exchange reserves and depreciating national currency. The country has also been reeling from last year’s devastating floods that caused damages of more than $30 billion while striving to generate money from friendly nations and international lending agencies.

Dar welcomed Kaproth and his team at the Finance Division in Islamabad and briefed them on the country’s overall economic outlook. He maintained the government had inherited a weak economy and was trying to reform energy sector and capital market to achieve growth and development.

“The finance minister apprised them on the economic priorities of the government to fix the economy to the right path while fulfilling its international obligations,” said a statement issued by his office after the meeting.

Dar also told the US team about damages caused by the recent floods in Pakistan and how they had impacted the country’s economy. He added the government was handling “all challenges with complete commitment.”

The finance ministry statement said the US official expressed confidence in the policies and programs of the government to bring about economic and financial stability in Pakistan.

He also extended his country’s support and cooperation to the government to deal with the prevailing economic challenges.

Earlier in the week, US State Department spokesperson Ned Price told a media briefing that Washington had been encouraging countries to benefit from discounted oil offered by Russia while answering a question about Pakistan.

Officials in Islamabad have been trying to reduce the country’s import bill by bringing down its energy costs that stood at about $23 billion in the last fiscal year.

Pakistan has also been seeking US help for the resumption of an International Monetary Fund (IMF) bailout program which requires it to carry out painful economic reforms.
 


UN says 270,000 Afghans have returned from Iran, Pakistan this year

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UN says 270,000 Afghans have returned from Iran, Pakistan this year

  • UNHCR says 110,000 Afghans returned from Iran while 160,000 returned from Pakistan since start of 2026
  • Return numbers seem to have risen since Gulf war erupted on Feb. 28, says UNHCR official in Afghanistan

GENEVA: Some 270,000 Afghans have returned to their country from Pakistan and Iran so far this year, the UN said Tuesday, warning that the escalating Middle East war risked pushing the numbers higher.

UNHCR, the United Nations’ refugee agency, said that 110,000 Afghans had returned from Iran and another 160,000 had returned from Pakistan since the start of 2026.

And the numbers seem to have risen since the Middle East erupted on February 28, with the United States and Israel unleashing a barrage of strikes on Iran, and Tehran responding with drone and missile strikes on Israeli and US interests across the region.

Since then, there have been some 1,700 returns from Iran to Afghanistan each day, Arafat Jamal, UNHCR’s representative in Afghanistan, told reporters in Geneva.

Speaking from Islam Qala, on the Afghan-Iranian border, he said the situation there was “deceptively calm.”

“Returns are orderly but freighted with tension and apprehension,” he said, adding that with the hostilities elsewhere escalating, “I do fear there is more to come.”

“We are preparing for massive returns.”

He pointed out that Afghanistan was “facing the ramifications of what is happening with Iran,” while clashes have erupted along the Afghan border with Pakistan.

The new Middle East war, he warned, was “layering itself on top of an existing war on another frontier,” Jamal said.

UNHCR highlighted that the latest crises came after returns to Afghanistan had already been “exceptionally high” in recent years.

More than five million Afghans had returned from neighboring countries in the past two years, including 1.9 million returning from Iran last year alone.

Jamal warned that “many Afghan families are now facing cycles of displacement: first forced to flee Afghanistan, later displaced again inside Iran due to conflict, and now returning once more to Afghanistan.”

“And upon return in Afghanistan, the triply-displaced enter a spiral of precarity and uncertainty.”
Returns from Pakistan had meanwhile stabilized in recent weeks, as the main crossing point at Torkham remained closed due to the tensions there, Jamal said.

But he warned that “movements could increase sharply once the border reopens.”

UNHCR and the UN children’s agency UNICEF said Tuesday they were working to strengthen their capacity to operate at the borders and within Afghanistan.

But “given the scale of returns and the financial constraints facing humanitarian operations, additional support will be needed if arrivals increase,” UNHCR said, without specifying the amount needed.