Pakistan speaking to bilateral lenders to restructure debt –finance minister 

This handout photograph taken and released on June 9,2023 by the Pakistan National Assembly, shows Pakistan's Finance Minister Ishaq Dar presenting the budget 2023-2024 in the national assembly in Islamabad. (AFP/File)
Short Url
Updated 10 June 2023
Follow

Pakistan speaking to bilateral lenders to restructure debt –finance minister 

  • Pakistan’s IMF program runs out this month with about $2.5 billion in funds yet to be released 
  • Islamabad struggles for an agreement amid record inflation, fiscal imbalances, low forex reserves 

KARACHI: Pakistan is speaking to its bilateral creditors to restructure its debt, the cash strapped country’s finance minister said on Friday. 

Pakistan’s IMF program runs out this month with about $2.5 billion in funds yet to be released as it struggles to strike an agreement with the lender, as it grapples with record inflation, fiscal imbalances and critical levels of reserves that cover barely a month worth of imports. 

Bilateral creditors made up $37 billion of Pakistan’s debt in the fiscal year 2021, out of which $23 billion is owed to China, according to an IMF country report released last year. 

Minister Ishaq Dar said, “We are in the process of engaging bilateral lenders to restructure debt,” speaking on Geo TV hours after presenting the country’s national budget. 

“No haircuts will be made... Interest will be serviced, and principal payments will be staggered,” said Dar. 

In order to unlock funding under its long-delayed 9th review, Pakistan is required to secure firm and credible financing commitments to close the $6 billion gap. The government has only been able to get commitments of $4 billion, mainly from Saudi Arabia and the United Arab Emirates. 

The country has also rolled over debt from China as its reserves reach critical levels. 
 


Pakistan police say two militants killed during gunbattle in northwest

Updated 5 sec ago
Follow

Pakistan police say two militants killed during gunbattle in northwest

  • Police say Tehreek-e-Taliban Pakistan militants ambushed police vehicle on patrol in northwestern Bannu district
  • Pakistan has frequently blamed neighboring Afghanistan for facilitating what it calls “cross-border attacks” against it

ISLAMABAD: Police in Pakistan’s Bannu district said on Monday it thwarted an ambush and killed two militants during a fierce gunbattle, as Islamabad grapples with a surge in militant attacks in the northwestern Khyber Pakhtunkhwa (KP) province. 

A police vehicle came under attack from militants affiliated with the Tehreek-e-Taliban Pakistan (TTP) or Pakistani Taliban group within the jurisdiction of the Domel Police Station in Bannu, a statement from police said. 

The police van was on patrol when TTP militants, who were lying in wait near the district’s Company Road, suddenly opened indiscriminate firing on the police party. Following the attack, both sides traded fire for approximately 20 minutes. 

“During the exchange of fire, two militants were killed and weapons were recovered from their possession,” the statement said. 

Police launched a search operation in the area after the gunfire ended, during which the bodies of the two militants were recovered. The bodies were shifted to the Khaleefa Gul Nawaz (KGN) Hospital in the area for legal formalities. 

Bannu Deputy Inspector General Sajjad Khan praised police for its unwavering commitment in saving people’s lives and for “standing firm against terrorism at all costs.” 

“He said operations against elements of Fitna Al-Khawarij will continue under a zero-tolerance policy and those attempting to disrupt peace and order will not be spared under any circumstances,” the police statement said. 

Pakistan’s government and army frequently use the term “Fitna Al-Khawarij” to describe TTP militants. The term is drawn from Islamic history for an extremist sect that rebelled against authority and declared other Muslims apostates.

The TTP has carried out some of the deadliest attacks against law enforcement agencies since 2008 in a bid to impose its strict version of Islamic law across Pakistan.

Bannu has also seen several militant attacks in the recent past, with four members of a pro-government peace committee killed by militants in the district earlier this month. In 2025, Bannu police said it recorded 134 attacks on police stations, checkpoints and those targeting its personnel. At least 27 police officers were killed, while authorities say 53 militants died in the clashes. 

Pakistan has repeatedly accused neighboring Afghanistan of allowing its soil to be used by armed groups such as the TTP for “cross-border attacks.” It has also alleged that India supports militant groups carrying out attacks against Pakistan. Both Kabul and New Delhi have denied these claims.