Pakistan has to abide by tough IMF conditions out of ‘compulsion’ — defense minister

A woman walks past the International Monetary Fund headquarters in Washington, DC, on January 26, 2022. (AFP/File)
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Updated 29 January 2023

Pakistan has to abide by tough IMF conditions out of ‘compulsion’ — defense minister

  • IMF wants Pakistan to reestablish market-based mechanism to determine Pakistani rupee's value
  • Defense Minister Khawaja Asif says government would try not to burden citizens under IMF’s conditions

ISLAMABAD: As Pakistan increased petrol prices by Rs35 per liter, Defense Minister Khawaja Muhammad Asif said on Sunday that the country had to agree to “very tough” conditions imposed by the International Monetary Fund (IMF) out of “compulsion” to address its economic woes.

The IMF’s mission is scheduled to visit Pakistan on January 31 to discuss the resumption of its $7 billion loan program, as Islamabad desperately seeks another loan tranche to shore up its foreign exchange reserves. Pakistan's forex reserves have declined to a staggering $3.6 billion, not even enough to cover a month of imports.

Earlier today, Finance Minister Ishaq Dar announced jacking up prices of petroleum products in the country by as much as Rs35 per liter. The minister said the decision was taken due to the Pakistani rupee's recent devaluation and up to an 11 percent increase in global fuel prices.

The hike in prices of petroleum products is part of the IMF's conditionalities to revive the stalled loan program, which requires Pakistan to do away with expensive energy subsidies. The price hike is expected to further increase decades-high inflation in the South Asian country. 

The global lender also wants Pakistan to reestablish a market-based mechanism to determine the value of the Pakistani rupee, which fell to a record low of 269.60 against the dollar in the open market this week. Such a mechanism is a key prior action for the country to receive IMF support.

“The IMF program, which we had to re-enter because of the [current] circumstances and out of compulsion, has set very strict and tough conditions for Pakistan,” Asif said on Sunday, speaking to reporters.

He added the government would undertake efforts to ensure the common man would not have to bear the economic burden of IMF’s conditions.

“We will try that only those belonging to the [upper] socioeconomic class will have to bear the economic burden of this crisis,” he said.

Answering a question related to the acute dearth of forex reserves in the country and the ensuing depreciation of the rupee against the dollar, the defense minister said people who have a foreign currency account in the country would still be able to withdraw “some” of their money in dollars.

“If someone here has a dollar account and wants to withdraw money from their banks, they can do so but in small amounts. For instance, if someone wants to take out money to pay for their children’s school fees, they can do so,” he clarified.

Asif also said the country’s imports, which had to be halted due to the dwindling reserves, were “gradually being relaxed.”

“Our exports are gradually being relaxed, so we will hopefully recover from the economic [turmoil] soon,” he said. “Slowly and gradually, things are being streamlined.”

Pakistan secured a $6 billion IMF bailout in 2019, which was topped up with another $1 billion last year. However, the lender then stalled disbursements in November due to Pakistan’s failure to make more progress on fiscal consolidation and economic reforms.


Ramadan moon sighted, Pakistan to observe first fast on Thursday

Updated 15 min 23 sec ago

Ramadan moon sighted, Pakistan to observe first fast on Thursday

  • Moon-sighting testimonies received from Bahawalpur, Rahim Yar Khan, Mardan and other cities, Ruet-e-Hilal Committee says
  • Muslims in Pakistan and around the world fast from dawn till sunset during Ramadan, the ninth month of the Islamic calendar

ISLAMABAD: Pakistan's central moon-sighting committee announced on Wednesday that the Ramadan moon had been sighted and the nation would observe the first fast of the holy month from Thursday. 

The Central Ruet-e-Hilal Committee (RHC), Pakistan's official body responsible for sighting the new moon marking the beginning of each Islamic month, held a meeting to sight the Ramadan crescent in Pakistan's northwestern city of Peshawar. 

"Testimonies of sighting the moon of the holy month of Ramadan were received from many parts of Pakistan," RHC Chairman Maulana Abdul Khabir Azad said during a news conference. "These [areas] included Bahawalpur, Rahim Yar Khan, Swabi, Killa Saifullah and Mardan. And the moon has been sighted," he added. 

"Hence, it was decided according to consensus that the first of Ramadan, 144 A.H. will fall on Thursday, March 23, 2023, God willing," Azad said.  

 

 

 

Fasting during Ramadan is one of the five pillars of Islam, wherein Muslims abstain from food and drink from sunrise till sunset for a month.

This is followed by the sighting of the new moon and is marked by Eid Al-Fitr, a religious holiday and celebration that is observed by Muslims across the world.


Pakistan political crisis deepens as election body postpones Punjab elections to Oct. 8

Updated 51 min 5 sec ago

Pakistan political crisis deepens as election body postpones Punjab elections to Oct. 8

  • Not possible to hold and organize elections fairly and peacefully on April 30, says Pakistan's election regulator
  • Fresh schedule will be issued in due course of time with poll date on October 8, says Election Commission of Pakistan

ISLAMABAD: Pakistan's political crisis deepened on Wednesday as the election regulator announced polls in the country's most populous Punjab province would be postponed from April 30 to October 8.

The move is likely to irk former Prime Minister Imran Khan who, since his ouster from office last April, has been calling for early elections and holding mass demonstrations and sit-ins to pile pressure on the government. In recent days, Khan's party has said it would launch countrywide street protests if general elections in Punjab and Khyber Pakhtunkhwa, where provincial assemblies were dissolved in January, are not held within a constitutionally mandated 90-day limit.

After much political and legal debate, Pakistan’s President Arif Alvi announced April 30 as the date for Punjab provincial assembly elections earlier this month. 

The president announced the date after Pakistan's top court ruled that elections in Punjab and Khyber Pakhtunkhwa (KP) provinces should be held within 90 days of the dissolution of the provincial legislatures.

The controversy was triggered when former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party and allies dissolved the Punjab and KP  provincial assemblies in January, in a bid to force the government of PM Shehbaz Sharif to announce nationwide polls.

The Election Commission of Pakistan (ECP) said in a notification that it held meetings on March 20, 21, and 22 to "deliberate extensively" on the matter of Punjab elections after receiving briefings from law enforcement agencies, ministries of finance, defence, interior and the secretary of Punjab, 

"The Commission after considering the reports, briefing and material brought before it, has arrived at the just conclusion that it is not possible to hold and organize the elections honestly, justly, fairly, in a peaceful manner and in accordance with the Constitution and law," it said. 

"The Commission hereby withdraws the election program issued vide Notification No. F. 2(3)/2023/Cord dated 8th March, 2023 and fresh schedule will be issued in due course of time with poll date on 08th October, 2023," it added. 

"The constitution and the Supreme Court have been practically abolished," Chaudhry Fawad Hussain, a close aide of Khan, wrote on Twitter. "Pakistan is now without a constitution."

 

 

 

Ousted via a parliamentary vote in April 2022, Khan has been pressurizing the government to hold early elections, a demand repeatedly rejected by PM Shehbaz Sharif. Khan has alleged that the ruling coalition government is "running away" from elections out of fear of his surging popularity. 


Pakistan seeks parliament ruling to empower authorities to tackle ex-PM Khan's party

Updated 22 March 2023

Pakistan seeks parliament ruling to empower authorities to tackle ex-PM Khan's party

  • Ruling was asked for in joint session of parliament convened over instability caused by crisis over Khan
  • Interior minister requested house give "guidance" to government about violence stoked by Khan's supporters

LAHORE: Pakistan's Interior Minister Rana Sanaullah on Wednesday sought a parliament ruling to empower authorities to tackle former Prime Minister Imran Khan's party's alleged involvement in violence.

The ruling was asked for in a joint session of parliament convened over the instability caused by the crisis over Khan.

Sanaullah told the house nearly 68 security personnel were injured in clashes and 16 arrested Khan aides will be tried on terrorism charges.

The clashes erupted after Khan's supporters prevented police and paramilitary forces from arresting him in a case in which he is accused of unlawfully selling state gifts during his tenure as premier from 2018-2022. He denies any wrongdoing.

The minister requested the house give "guidance" to the government about the violence stoked by Khan's supporters, who he said included "miscreants, armed groups, and terrorists".

"It is required that the security forces should be given authority and other measures to deal with this issue," he said, adding that Khan's agenda is "chaos and anarchy."

The government has alleged that Khan's supporters had militants among them and ministers have called for proscribing Khan's Pakistan Tehreek-e-Insaf (PTI) party.

Khan has rejected the allegation, saying that the government wanted his party out of politics.

The former premier has demanded snap elections since he was ousted in a parliamentary vote of confidence in April last year. Khan's successor Shehbaz Sharif has said that a general election will be held as scheduled later this year.


Pakistani TV anchor breaks internet for continuing bulletin amid powerful earthquake jolts

Updated 9 min 40 sec ago

Pakistani TV anchor breaks internet for continuing bulletin amid powerful earthquake jolts

  • Local TV anchor Shah Faisal says powerful earthquake "frightened" him
  • 6.5-magnitude earthquake in parts of Pakistan killed at least 10 on Tuesday

PESHAWAR: A Pakistani TV anchor broke the internet this week after a video of him continuing to read a news bulletin amid a powerful earthquake late on Tuesday evening was shared widely on social media.

At least 10 people were killed and over 60 injured in Pakistan's northwestern Khyber Pakhtunkhwa (KP) province on Tuesday night when a 6.5-magnitude earthquake jolted parts of the South Asian country.

In a video that has gone viral on social media since, young TV anchor Shah Faisal, 30, can be seen reading the news when tremors start to shake the studio. Instead of running to safety, the journalist, who works for Pashto-language Mashriq TV in KP's provincial capital Peshawar, breaks the news of the earthquake.

"The cameraman had already fled while I was here in the studio," Faisal, who hails from Mardan city, told Arab News in an interview at the studio. "I was speaking, but in my mind, I kept thinking, 'What will happen now?' Our studio is on the fifth floor and it was shaking a lot, there were a lot of jolts."

Before the quake struck, Faisal was reading a news story about Prime Minister Shehbaz during the 09:00 p.m. bulletin. Next, Faisal can be seen swaying from side to side. Numerous LED TVs in the background and his own laptop are also seen shaking as another man scurried out of the studio behind the anchorman who continued with the bulletin.

One of the two producers working with him fled for safety, Faisal said. The second one took over and told him to break the news of the earthquake.

Faisal said he initially thought the earthquake would be of a similar nature to a “milder” one that had taken place in KP around two months ago.

"This one was very severe and its duration was longer too," Faisal said, adding that the quake "frightened" him.

After the jolts, Faisal immediately called home to inquire after his family and learnt that his father was watching him on TV as the earthquake occurred.

Faisal has since been reading comments on social media about his viral video. Almost 90% of them are encouraging while the remaining are critical of his choice to continue with the bulletin rather than run for cover.

"But it is our belief that life and death is in the hands of Allah," Faisal said. 

"And on the day that we are decreed to leave here [this world], we will leave on that day. I had faith and praise be to Allah, he gave me encouragement."


UAE-based Carrefour partners with Pakistani NGO to help the needy in Ramadan

Updated 22 March 2023

UAE-based Carrefour partners with Pakistani NGO to help the needy in Ramadan

  • Carrefour, Pakistan’s Alkhidmat Foundation to provide meals to less privileged Pakistanis in Ramadan
  • The two will also provide humanitarian aid to people affected by the devastating quake in Türkiye, Syria

ISLAMABAD: Retail company Carrefour Pakistan, owned and operated by UAE-based holding firm Majid Al Futtaim, announced on Wednesday its decision to join hands with Pakistani non-profit organization (NGO) Alkhidmat Foundation to provide relief to earthquake victims in Syria and Turkiye, and provide free meals to the less privileged in Pakistan during Ramadan. 

Ramadan is the ninth month of the Islamic calendar, observed by Muslims worldwide as a month of fasting, prayer, reflection, and charity. The first fast in Pakistan is likely to be observed on Thursday, March 23.

Through the collaboration, Carrefour said the two would provide meals to the less privileged Pakistanis in Ramadan and also send relief items to victims of the recent devastating earthquakes in Türkiye and Syria.

“We believe in the power of collective action and community support. We are greatly pleased to join hands with Alkhidmat Foundation to play our part in eliminating food hunger in the country, whilst providing relief to those affected by the earthquakes in Turkiye and Syria,” Umer Lodhi, Carrefour Pakistan’s country manager, said.

“We hope our combined efforts will make a positive impact on those who need it the most.”

The statement added that customers would also have the opportunity to give back to the community this Ramadan by purchasing special, pre-packed boxes filled with essential food items such as rice, flour, oil, dates & pulses.

The pre-packed boxes, it said, will then be distributed among needy families to help provide them some relief during Ramadan as the South Asian country grapples with decades-high inflation.

“Earthquake relief boxes comprising shelter supplies, clothing, and non-perishable food items are available for customers to buy and donate at all Carrefour stores,” the statement said.