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Pakistan’s last-gasp IMF bailout as it happened

Pakistan Prime Minister Shehbaz Sharif meets with managing director of the International Monetary Fund (IMF), Kristalina Georgieva, in Paris, France June 22, 2023. (REUTERS/File))
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Updated 30 June 2023
Reuters
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Pakistan’s last-gasp IMF bailout as it happened

  • Agreement is under a Stand-By Arrangement, existing Extended Financing Facility signed in 2019 expires later on Friday
  • IMF approved $6 billion, 39-month bailout package for Pakistan under EFF struck with government of then PM Imran Khan
Updated 30 June 2023
Reuters

KARACHI: Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) to release $3 billion in critical bailout funds following a long drawn-out review process for the cash-strapped economy since November last year.

The agreement is under a Stand-By Arrangement (SBA), as the existing Extended Financing Facility (EFF) program signed in 2019 expires later on Friday.

Here are some facts about the lead up to the last-gasp agreement:

-May 2019: IMF approves a $6 billion, 39-month bailout package for Pakistan under the EFF struck with the government of then Prime Minister Imran Khan.

-April 2022: Khan’s government is removed in a parliamentary vote of no confidence. Shehbaz Sharif takes over as Prime Minister as the country reels from economic and political turmoil.

-July 2022: IMF and Pakistan reach staff-level agreement for the release of about $1.2 billion in the last successful EFF review until the SBA.

-Aug 2022: The IMF board approves the seventh and eighth reviews of the bailout program, allowing for a release of over $1.1 billion and an extension by a year.

-Sept 2022: Miftah Ismail resigns as finance minister, the fifth such minister to be replaced in less than four years.

Ishaq Dar takes over as finance minister for his fourth stint in the job, with Pakistan’s next staff review, the ninth under the EFF, and funds tranche due in November.

-Nov 2023: Pakistan, IMF begin virtual engagement for the ninth review of the loan program. A staff delegation visit does not materialize due to differences on program targets, and Dar hits out at the IMF for the delay.

-Jan 2023: Pakistan reiterates commitment to completing the IMF program in a meeting on the sidelines of a climate conference in Geneva.

An IMF staff delegation visits Pakistan after weeks of delays, but the 10-day visit concludes without an agreement to send the matter to the board, increasing economic uncertainty.

-Feb 2023: Pakistan, IMF decide to resume talks virtually on steps needed to secure an agreement for the ninth review.

-May 2023: IMF mission chief says continuing to work with Pakistani authorities to bring the ninth review to conclusion once necessary financing is in place.

-June 22, 2023: Sharif meets IMF Managing Director Kristalina Georgieva in Paris, looking to secure a last minute release of the stalled funds before the program expires on June 30.

-June 24, 2023: Pakistan changes its budget for the financial year starting on July 1, including the latest fiscal tightening measures dictated by the IMF.

-June 26, 2023: Pakistan’s central bank raises its benchmark interest rate by 100 basis points to 22 percent at an emergency meeting days before IMF program expires.

-June 30, 2023: IMF reaches staff-level agreement with Pakistan on $3 billion funding, which is spread over nine months and is higher than expected. The country was awaiting the release of the remaining $2.5 billion from the $6.5 billion bailout package agreed in 2019, which was expiring on Friday.

Topics: International Monetary Fund (IMF) Pakistan IMF

Four militants killed in northwest Pakistan operation — military

Updated 10 sec ago
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Four militants killed in northwest Pakistan operation — military

  • The development comes amid a surge in violence in Khyber Pakhtunkhwa province, mostly blamed on Pakistani Taliban
  • Last week, Taliban militants also abducted a district and sessions judge in the same province, who was freed two days later
Updated 10 sec ago
Arab News Pakistan

ISLAMABAD: Four militants were killed during an intelligence-based operation in northwest Pakistan on Monday, the Pakistani military said, amid a spate of militant violence in the region.

The operation was conducted in the Khyber tribal district of Pakistan’s Khyber Pakhtunkhwa province, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

An intense exchange of fire during the operation killed four militants.

“Terrorists’ hideout was also busted during the operation and a large cache of weapons, ammunition and explosives was recovered,” the ISPR said in a statement.

A sanitization operation was being carried out to eliminate any other threats in the vicinity, the ISPR added.

The development came amid a surge in violence in Pakistan’s northwest, mostly blamed on the Tehreek-e-Taliban Pakistan (TTP), since the group ended a ceasefire with the central government in November 2022.

Last week, TTP militants abducted a district and sessions judge, Shakirullah Marwat, in the same province. The judge was recovered after a joint operation by police and security forces, police said on Monday. 

Earlier this month, six people, including five customs department officials, were killed in an attack in Dera Ismail Khan. Two customs officers were also killed in the area in a separate attack earlier.

Militants have also targeted security officials in the province in recent weeks, killing a number of police and counterterrorism department officials.

Both Pakistan and Afghanistan have traded blame in recent months over who is responsible for the recent spate of militant attacks in Pakistan.

Islamabad says the attacks are launched mostly by TTP members who operate from safe havens in Afghanistan. Kabul denies this and blames Islamabad for not being able to handle its own security challenges.

Topics: Pakistan Military

Pakistan confers military award on Turkish land forces commander

Updated 29 April 2024
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Pakistan confers military award on Turkish land forces commander

  • President Asif Ali Zardari conferred the award at a special investiture ceremony held in Islamabad
  • General Selcuk Bayraktaroglu, who is currently visiting Pakistan, also met Army Chief Gen Asim Munir
Updated 29 April 2024
Arab News Pakistan

ISLAMABAD: Pakistan on Sunday conferred a military award, Nishan-i-Imtiaz, on Commander of the Turkish Land Forces, General Selcuk Bayraktaroglu, during his visit to Islamabad, Pakistani state media reported.

Pakistan President Asif Ali Zardari bestowed the Turkish general with the award at a special investiture ceremony held at the Presidency in Islamabad, the state-run Radio Pakistan broadcaster reported.

“The award was conferred upon him in recognition of his illustrious services and contribution toward strengthening Pakistan-Turkiye defense relations,” the report read.

The investiture ceremony was attended by foreign diplomats and high-ranking military officials.

Separately, General Bayraktaroglu called on Pakistan’s army chief, General Asim Munir, and General Sahir Shamshad Mirza, chairman of the Joint Chiefs of Staff Committee, the Pakistani military said.

During his meeting with Gen Munir, matters of mutual interest and measures to further enhance bilateral defense cooperation were discussed, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing. 

“Both sides expressed satisfaction over deep-rooted relations between the two countries, based on historic, cultural and religious affinity,” the ISPR said.

“COAS emphasized the need to further strengthen existing military to military cooperation between the two Armed Forces.”

During the meeting, the ISPR added, the visiting dignitary appreciated the role of Pakistan Army in ensuring peace and stability in the region.

Topics: Pakistan Turkey Ties

Pakistan court hands life sentences to four in 2018 murder of lawmaker

Updated 29 April 2024
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Pakistan court hands life sentences to four in 2018 murder of lawmaker

  • The accused were convicted of aiding, abetting, reconnaissance, and facilitating murder of Syed Ali Raza Abidi
  • Court suspends proceedings against prime accused, citing Supreme Court ruling that prohibits judgments in absentia
Updated 29 April 2024
NAIMAT KHAN

KARACHI: A Pakistani court on Monday handed life sentences to four accused who were convicted of aiding, abetting, reconnaissance and facilitating the murder of a Pakistani lawmaker in the southern city of Karachi in 2018.

Ali Raza Abidi, a businessman and politician, who belonged to the Muttahida Qaumi Movement-Pakistan (MQM-P) party, was shot dead outside his residence in the Defense Housing Authority (DHA) area of Karachi.

Police had registered a case against the suspects in the Gizri police station under the Anti-Terrorism Act.

“The evidence shows that all the accused persons in furtherance of their common intention are involved in the commission of murder of Syed Ali Raza Abidi and they are equally responsible for the act,” Zeeshan Akhter Khan, the Anti-Terrorism Court judge, stated in his detailed judgment.

The convicts, Muhammad Farooq, Muhammad Ghazali, Abu Bakar and Abdul Haseeb, were also fined under various sections of the Pakistan Penal Code. They can appeal the verdict within 15 days.

The court, citing a Supreme Court judgment, said since a case against absconding accused, Bilal, Hasnain, Ghulam Mustafa and Faizan, could not be proceeded in absentia, it was placed on dormant status until their arrest or appearance before the court.

Abidi was elected as a Member of the National Assembly (MNA) on the ticket of the MQM-P in the 2013 general election. He, however, quit the MQM-P following the party’s formation of an alliance with the rival Pak Sarzameen Party (PSP).

Despite briefly rejoining the MQM-P in December 2017, Abidi ultimately parted ways with the party in September 2018. He was killed months later on December 25, 2018.

Topics: Ali Raza Abidi

Pakistani PM meets Malaysia’s Ibrahim on WEF sidelines, invites on official Islamabad visit 

Updated 29 April 2024
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Pakistani PM meets Malaysia’s Ibrahim on WEF sidelines, invites on official Islamabad visit 

  • Shehbaz Sharif was in Riyadh to attend a WEF special meeting on Global Collaboration, Growth and Energy for Development on April 28-29
  • The Pakistan PM invited Malaysian traders and businessmen to visit Pakistan to discuss expansion of bilateral trade, investment relations
Updated 29 April 2024
Arab News Pakistan

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Monday met his Malaysian counterpart Anwar Ibrahim in Riyadh and invited him to visit the South Asian country, Sharif’s office said. 
The two leaders met on the sidelines of a two-day World Economic Forum (WEF) summit in Saudi Arabia’s capital of Riyadh, according to PM Sharif’s office.
During the meeting, both sides agreed to further develop relations.
“The two leaders also agreed to hold the next meeting of the Joint Ministerial Commission in Islamabad soon,” Sharif’s office said in a statement. 
“The prime minister reiterated his invitation to Malaysian Prime Minister Anwar Ibrahim to pay an official visit to Pakistan.”
The two leaders discussed bilateral ties in the fields of education, science and technology, livestock and trade, and vowed to further enhance cooperation in the future, according to the statement.
PM Sharif also invited Malaysian traders and businessmen to visit Pakistan to discuss the expansion of bilateral trade and investment relations.
The Pakistan prime minister was in Riyadh to attend the WEF special meeting on Global Collaboration, Growth and Energy for Development on April 28-29.
Sharif spoke about Gaza at the closing plenary of the two-day summit and held several bilateral meetings, particularly with Saudi officials, during the visit.

Topics: Pakistan Malaysia ties World Economic Forum

No peace in the world without ceasefire in Gaza, Pakistani PM says at WEF 

Updated 29 April 2024
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No peace in the world without ceasefire in Gaza, Pakistani PM says at WEF 

  • Pakistan does not recognize Israel and calls for an independent Palestinian state based on pre-1967 borders
  • Sharif is in Riyadh for two-day World Economic Forum summit on growth, has met top Saudi leaders on sidelines 
Updated 29 April 2024
Arab News Pakistan

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif said on Monday there could be no peace in the world without a permanent ceasefire in Gaza, as Israel’s attacks on the besieged Palestinians territory continue. 

The statement came during the prime minister’s address at the closing plenary of a special two-day World Economic Forum (WEF) summit held in Riyadh, with a focus on global collaboration, growth and energy for development.

Israel’s air and ground assault on Gaza has killed about 34,500 Palestinians, according to Palestinian health authorities. The enclave is also in the grips of severe shortages of food, fuel and medicine since October 7 when the war started after attacks by Hamas on Israel.

“The world will not be in peace unless there is permanent peace in Gaza,” PM Sharif said.

Pakistan does not recognize the state of Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.

Sharif said conflicts in Gaza, Ukraine and elsewhere had led to inflation globally, which was “breaking the back of developing countries.”

Sharif arrived in Riyadh on Saturday for the WEF special meeting on Global Collaboration, Growth and Energy for Development on April 28-29.

The conference has convened more than 700 participants, including key stakeholders from governments and international organizations, business leaders from the World Economic Forum’s partner companies, as well as Young Global Leaders, experts and innovators.

During his address, the Pakistan prime minister also thanked Saudi Arabia and other friendly countries for supporting Pakistan through difficult times.

“I have to acknowledge from the core of my heart the support we have been given and received from the Saudi leadership,” he said. “I think, a friend in need is a friend in deed and we will never be able to repay back to them what they have done to Pakistan in difficult times.”

Sharif said his government was going for “deep-rooted structural reforms” to put the country on the path to economic recovery.

“It will hit me as prime minister, obviously,” he said. “But ladies and gentlemen, without that nothing will happen.”

Pakistan is facing a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year, three-time more than its central bank’s foreign currency reserves.

The country is in talks with the International Monetary Fund (IMF) to secure a new loan program after its ongoing $3 billion program expires this month.

Topics: World Economic Forum

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