Pakistan hopes to clear final IMF review, considers additional financing of $6-8 billion

The seal of the International Monetary Fund is seen at the headquarters building in Washington, DC on July 5, 2015. (AFP/File)
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Updated 27 February 2024
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Pakistan hopes to clear final IMF review, considers additional financing of $6-8 billion

  • Pakistan has increased energy prices to meet the global lender’s conditions under the short-term $3 billion loan
  • Pakistani officials say the final decision to avail another IMF program will be made by the next elected government

KARACHI: Expressing confidence to clear the final review of $3 billion short-term financing program of International Monetary Fund (IMF) after meeting key conditions including energy price hike, Pakistani authorities are weighing options to avail another $6-8 billion program, an official privy to the situation confirmed on Tuesday.
The South Asian nation, with a population of over 241 million, increased gas prices by up to 76 percent for domestic consumers in recent months before raising petroleum prices by 1-3 percent in February. The National Electric Power Regulatory Authority (NEPRA) also notified Rs7.05 per unit hike in power prices under fuel charge adjustment (FCA) on Monday.
Pakistani authorities are confident that recent energy price adjustments to meet some of the key conditions of the global lender would help clear the second and last review of the $3 billion Stand By Arrangement (SBA) that ends in March 2024.
“With latest energy price hikes, Pakistan has met almost all the preconditions set by the IMF for end-December 2023 review including exchange rate stability, continuation of tight monetary policy and restricted circular debt flow,” an official of finance division on Tuesday told Arab News on condition of anonymity.
The official said the government was successful in restricting the circular debt flow below the fund’s stated target of Rs385 billion ($1.37 billion), though it went as high as Rs378 billion ($1.35 billion) by the end of last December.
Pakistan’s circular debt stock, outstanding payments and liabilities in the country’s energy sector, continues to swell despite taking painful measures by the government including tariff hikes that resulted in high inflation.
The circular debt within the energy sector escalated to a staggering Rs5.73 trillion (approximately $20.5 billion) by the end of last November, official data reveals. This figure encompassed a power sector debt of Rs2.7 trillion ($9.66 billion) alongside a gas sector indebtedness surpassing Rs3 trillion ($10.7 billion).
While the IMF has not yet announced dates to start negotiations with Pakistan for the second review since it was ostensibly waiting for the formation of the next government, a successful review of the program will enable the South Asian nation to receive another tranche of about $1.1 billion from the fund.
The Pakistani official said the country was exploring various options to put before the IMF to avail new long-term program in recent weeks.
“The options under consideration included the size and conditions for the new program,” he said adding: “Yes, the size could be anywhere between $6-8 billion including the climate financing factor, the RSF.”
The Resilience and Sustainability Facility (RSF) of the IMF offers affordable, long-term financing to countries committed to reforms aimed at mitigating risks to future balance of payments stability, including challenges posed by climate change and pandemic preparedness.
The official, however, clarified that nothing had been finalized yet, adding these options were still at a preliminary stage and would be suggested to the next government, if finalized.
“It will be the prerogative of the next elected government to negotiate the size, terms and condition of the next program with the fund or whether or not they want to go to the IMF,” he added.
Last year in November, Pakistan’s caretaker finance minister Dr. Shamshad Akhtar hinted the country would continue to seek financial facility from the IMF to keep its fragile economy afloat.
Pakistani economists underscored the need for a new IMF program while calling for immediate engagement with the fund.
“It is good to hear that the government is working to get another IMF program,” Dr. Sajid Amin, deputy executive director at Islamabad-based Sustainable Development Policy Institute (SDPI), said.
“The real test, however, will be how quickly the new government takes up the challenge and engages with the fund.”
The present state of economy, particularly the low foreign exchange reserves and high external debt repayments, made it imperative for the country, Amin continued, to seek the IMF support for at least three more years.
“Unnecessary delays, as we witnessed in the PTI [Pakistan Tehreek-e-Insaf] and PDM [Pakistan Democratic Movement] tenures, will hurt the economy,” he warned.
Arab News sought comments from both the IMF and the finance ministry for this story, but received no response.


PM meets UAE, US investors as Pakistan navigates tricky economic recovery path

Updated 38 min 43 sec ago
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PM meets UAE, US investors as Pakistan navigates tricky economic recovery path

  • Sharif discusses investments with DP World CEO, US businessman and hedge fund manager 
  • PM is currently in the UAE to attend World Governments Summit taking place from Feb. 11-13

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Tuesday met with investors from the US and United Arab Emirates (UAE), his office said, as Islamabad seeks to attract foreign funds and projects to help shore up its $350 billion economy.
Sharif is currently in the UAE to attend the World Governments Summit taking place from Feb. 11-13. On the sidelines, the premier is meeting foreign companies and investors as the South Asian nation, currently bolstered by a $7 billion facility from the International Monetary Fund (IMF) granted in September, navigates a narrow economic recovery path.
In one meeting, Sharif met with the Dubai-owned ports and logistics company DP World’s CEO Sultan Ahmed bin Sulayem and discussed ongoing and future investments.
“Sharif appreciated DP World’s investment in Pakistan and its role in enhancing trade and logistics infrastructure,” the PM said in a statement, reiterating Pakistan’s commitment to the early completion of projects under two Inter-Governmental Framework Agreements (GAs) signed in Jan. 2024 to strengthen relations in the marine and logistics sectors, including the establishment of a freight corridor and an economic zone near Karachi, the Pakistani commercial capital. 

Pakistan Prime Minister Shehbaz Sharif shakes hands with Sultan Ahmed bin Sulayem, Group Chairman and CEO DP World, during a meeting on the sidelines of the World Governments Summit in Dubai on February 11, 2025. (Photo courtesy: PMO)

“[Sharif] said that Pakistan’s strategic location provides an ideal opportunity for DP World to expand its operations and emulate successful projects like Jebel Ali Port in Pakistan,” the PM office said.
Under the IGAs, DP World is developing a dedicated freight corridor to run from Karachi Port on the Arabian Sea, passing through Karachi, Pakistan’s most populous city, to the Pipri Marshalling Yard, approximately 45km away. The corridor will improve efficiency, transport times, and reduce the overall cost of logistics. State-run Pakistan Railways and Port Qasim Authority will act on behalf of the Pakistan government for the development of the corridor. 
A second framework agreement was signed with Pakistan’s ministry of maritime affairs to dredge the navigation channel. DP World will carry out the capital dredging on behalf of the government of Dubai. 
The framework agreement will also see the development of an economic zone at Port Qasim, which aims to attract more than US $3 billion foreign direct investment. DP World, on behalf of the government of Dubai, will carry out the development of the economic zone, with the aim of maximizing economic activity in Pakistan. 
DP World began operations in Pakistan in 1997 at the Qasim International Container Terminal (QICT) – the first of its kind in the country – and has since transformed the facility into a leading gateway for global trade in the region.

Pakistan Prime Minister Shehbaz Sharif meets US businessman and Texas hedge fund manager Gentry Beach (2L) on the sidelines of the World Governments Summit in Dubai on February 11, 2025. (Photo courtesy: PMO)

Separately, Sharif also met US businessman and Texas hedge fund manager Gentry Beach, who is close to the family of American President Donald Trump. Beach visited Pakistan last month and discussed investments in the real estate, energy and minerals sectors.
“Beach, while recalling his recent visit to Pakistan, described the government’s policies as conducive for business and investment and expressed keen interest in investing in various sectors,” Sharif’s office said in a statement, adding that the US investor had pledged to “implement his investment plans in Pakistan at the earliest.”


PM directs authorities to expedite identification of Pakistanis in shipwreck off Libyan coast

Updated 11 February 2025
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PM directs authorities to expedite identification of Pakistanis in shipwreck off Libyan coast

  • Boat carrying 65 passengers capsized near port of Marsa Dela in northwest of Libya’s Zawiya city
  • Shehbaz Sharif vows stern action against human traffickers, expresses condolences to families 

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the foreign ministry to expedite the identification process of Pakistanis aboard a ship carrying 65 passengers that had capsized near the coast of Libya, his office said on Tuesday, vowing stern action against human traffickers. 

A boat capsized near the port of Marsa Dela in the northwest of Zawiya city in Libya, the foreign office confirmed on Monday, prompting the Pakistani government to activate a crisis management cell to confirm if any Pakistanis were on board.

The latest tragedy comes weeks after at least 13 Pakistanis died when a boat carrying 86 migrants to Europe capsized near the coast of Morocco on Jan. 16. Each year, thousands of Pakistanis pay traffickers large sums for risky and illegal journeys to Europe, hoping to find work and send money back to their families. Many also take these perilous routes to escape conflicts and religious persecution.

“The prime minister has directed the Ministry of Foreign Affairs to expedite the identification of the deceased Pakistanis and provide all possible assistance to the affected individuals,” the PM’s Office (PMO) said in a press release. “The prime minister has requested a report on the incident from the relevant authorities.”

Calling for strict action against people involved in human trafficking, Sharif said no negligence would be tolerated in this regard. He assured that the government was undertaking comprehensive measures to combat the crime.

Sharif expressed condolences to the families of the deceased and also prayed for the souls of those who had died in the incident. 

Pakistan has intensified its crackdown on human trafficking rings facilitating dangerous sea journeys for migrants, as many of its nationals frequently drown on overcrowded boats in the Mediterranean, the world’s deadliest migrant route. 

In 2023, 262 Pakistanis were among the hundreds who died when a vessel sank off Greece’s Pylos. Recently, five Pakistanis perished in a shipwreck near Gavdos on Dec. 14.


Erdogan to visit Pakistan from Feb. 12-13 to strengthen cooperation in bilateral trade and investment

Updated 11 February 2025
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Erdogan to visit Pakistan from Feb. 12-13 to strengthen cooperation in bilateral trade and investment

  • Turkish president to co-chair Pakistan-Turkiye High Level Cooperation Council session with PM Shehbaz Sharif, says FO
  • HLSCC focuses on trade, investment, banking, finance, culture, tourism, energy, defense, agriculture and other sectors

ISLAMABAD: Turkish President Recep Tayyip Erdogan will visit Pakistan with a high-level delegation from Feb.12-13, Pakistan’s foreign office said on Tuesday, during which he will co-chair the session of a high-level strategic cooperation council focusing on bilateral trade, investment and other priority sectors between the two countries, and oversee the signing of several agreements. 
The Pakistan-Turkiye High Level Cooperation Council (HLSCC) was established in 2009 as a framework for consultations at the highest political level between the two sides. Several joint standing committees under the HLSCC cover vital sectors such as trade, investment, banking, finance, culture, tourism, energy, defense, agriculture and others. 
Six sessions of the HLSCC have been conducted since it was founded, with the last one held in Islamabad from Feb. 13-14, 2020. 
Erdogan’s high-level delegation will comprise ministers, senior officials and corporate leaders, the foreign office said. 
“During the visit, Prime Minister Shehbaz Sharif and President Erdogan will co-chair the 7th Session of the Pakistan-Turkiye High Level Strategic Cooperation Council (HLSCC),” the foreign office said. “At the conclusion of the Session, a Joint Declaration and a number of important agreements/MoUs are expected to be signed. The two leaders will also address a joint press stakeout.”
Erdogan will hold bilateral meetings with Sharif and President Asif Ali Zardari, the foreign office said, adding that the Turkish president will address the Pakistan-Turkiye Business and Investment Forum with Sharif. The forum will bring together leading investors, companies and businesspersons from both sides, the statement said. 
“The visit of Turkish President and the holding of the 7th Session of the HLSCC would serve to further deepen the brotherly relations and enhance multifaceted cooperation between the two countries,” the foreign office said. 
Turkiye and Pakistan enjoy cordial relations with one another that has expanded to cooperation in several sectors between the two nations. Both agreed to enhance the bilateral trade volume to $5 billion last year in May when Turkish Foreign Minister Hakan Fidan arrived in Pakistan’s capital on a two-day visit. 
Pakistan has been eagerly reaching out to international partners and close allies since last year in its quest to escape a prolonged macroeconomic crisis by strengthening cooperation in business, investment and other sectors. 
Pakistan’s economic crisis has drained its financial resources, weakened its national currency and triggered inflation in the country. The South Asian country has repeatedly stated its desire to achieve sustainable economic growth through foreign trade and investment, long-term reforms and by promoting exports.


PM says Pakistan prioritizing skill development, increased funding on International Day of Women in Science

Updated 11 February 2025
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PM says Pakistan prioritizing skill development, increased funding on International Day of Women in Science

  • International community marks day on Feb. 11 to highlight gender gap in all levels of science and technology
  • Pakistan PM says government undertaking initiatives to train women in robotics, AI and digital solutions

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif said on Tuesday that empowering females is a “national priority” and essential for the nation’s economic well-being and development, as the world marks International Day of Women and Girls in Science. 

The world marks Feb. 11 each year as the International Day of Women and Girls in Science to highlight the significant gender gap in all levels of science, technology, engineering and mathematics (STEM) disciplines around the world. 

In conservative Pakistan, some rural areas are still ruled by a patriarchal system of male village elders who wield significant influence in their communities and bar women from seeking educational and employment opportunities. 

“For us empowering women and girls in science is a national priority and an all-out effort is being made to create an enabling environment and providing equal opportunities, to ensure that women become key drivers of progress and innovation in the 21st century,” Sharif said in a message shared by the Prime Minister’s Office (PMO). 

He said the Pakistani government has prioritized programs that focus on skill development, support for women-led start-ups and greater access to research funding. 

“Initiatives include training in robotics, AI and digital solutions, scholarships and programs encouraging innovation and entrepreneurship,” the PMO said. 

Sharif highlighted the underrepresentation of women in science and technology, noting that they make up less than 30 percent of the world’s researchers and only 22 percent in the field of AI, citing data from the UNESCO Institute for Statistics.

Despite the challenges in conservative Pakistan, some women have made significant contributions to science globally. Dr. Nergis Mavalvala, a Pakistani American astrophysicist, was part of the team that achieved the scientific milestone of detecting gravitational waves, ripples in space and time hypothesized by physicist Albert Einstein a century ago. Dr. Tasneem Zehra Husain, a theoretical physicist, science writer and educator, made headlines around the world when she became the first Pakistani woman to earn a PhD in string theory. 


Saudi warships join international fleet review as Pakistan concludes AMAN-25 naval exercise

Updated 56 min 55 sec ago
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Saudi warships join international fleet review as Pakistan concludes AMAN-25 naval exercise

  • Over 30 warships, including Royal Saudi Navy’s HMS Jazan and HMS Hail take part in international fleet review
  • Five-day exercise featured harbor and sea phases, various drills and operations to enhance naval cooperation

KARACHI: Saudi warships took part in an international fleet review at the Arabian Sea off the coast of Karachi on Tuesday as Pakistan concluded its multinational naval exercise AMAN-25, which aimed to strengthen maritime security and cooperation and featured participation from over 60 countries. 

A fleet review is a formal inspection of a navy’s fleet by high-ranking officials. The international fleet review in Karachi, marking the finale of the five-day naval exercise, was attended by senior military and diplomatic officials including Pakistan’s Army Chief General Syed Asim Munir and Saudi Ambassador Nawaf bin Said Al-Malki.

“This international fleet review marks the conclusion of exercise AMAN-25,” Rear Admiral Abdul Munib, Pakistan Navy’s fleet commander, said. “In 2007, we started AMAN exercise series, and this one is the ninth edition of the exercise.”

Munib said 28 countries participated in the first AMAN edition while during last year’s exercise, 50 countries took part. He said in the 2025 edition the number of participating countries swelled to over 60. 

The AMAN exercise is conducted every two years under the “Together for Peace” theme. Over 30 warships, including the Royal Saudi Navy’s HMS Jazan and HMS Hail along with 16 air units took part in the international fleet review. 

The naval exercise began on Feb. 7 and consisted of harbor and sea phases, featuring various drills and operations to enhance interoperability among the naval forces. The last day of the sea phase included aerial operations, replenishment-at-sea exercises, counter-piracy demonstrations, and live-fire exercises followed by a spectacular fly-past.

Captain Humayun Yaqoob, commanding officer of Pakistan Navy ship PNS Moawin, emphasized the strategic importance of the event. 

“The basic purpose of this exercise is ‘Together for Peace’. All these 60 nations, they are here. They are together with us for peace,” Yaqoob said. “It [exercise] is giving a message. It is the confidence of the international community that this exercise is a meaningful platform.”

Pakistan Navy's PNS Tippu Sultan and PNS Taimur frigate warships lead the Naval vessels of participating countries during the sea phase of Pakistan Navy's 9th Multinational Maritime Exercise AMAN-25 under the slogan "Together for Peace," in the Arabian Sea near Karachi, Pakistan, on February 10, 2025. (REUTERS)

The AMAN-25 exercise was complimented by the inaugural AMAN Dialogue, held from Feb. 9-10, which brought together naval chiefs, coast guard officials and defense representatives to discuss challenges in the Indian Ocean. Topics included strategic competition, piracy, narco-trafficking, climate change, and the use of emerging technologies such as artificial intelligence and unmanned systems.

Pakistan’s Planning Minister Ahsan Iqbal underscored the importance of collaboration in the region during the dialogue. 

“The Indian Ocean should not be a rivalry playground but a center of opportunities for all nations,” he said. “Pakistan prefers collaboration over confrontation, and Aman-25 is an example of mutual trust and shared prosperity.”

The Indian Ocean remains a focal point of geopolitical competition, with China expanding its naval presence and the United States strengthening defense ties with India. Pakistan, through AMAN-25, positioned itself as an advocate for cooperative maritime security, engaging regional and global partners to ensure stability in waters crucial for global trade.

The event also included counterterrorism drills at sea, with special forces from various nations conducting visit, board, search and seizure (VBSS) operations, amphibious exercises, and combat search-and-rescue missions.

As the exercise concluded on the last day, participating warships including those from Saudi Arabia, Bangladesh, China, Indonesia, Japan, Malaysia, Oman, Sri Lanka, UAE and the US paid a ceremonial mark of respect to the chief guest on PNS Moawin, Pakistan’s army chief.