ISLAMABAD: Pakistan’s newly-formed ruling alliance is yet to finalize its finance minister, the person who has to lead an immediate effort to negotiate a new International Monetary Fund (IMF) bailout, sources familiar with the discussions said.
The struggling $350 billion economy has a narrow path to recovery and the current IMF agreement expires on April 11, with critical external financing avenues linked to securing another extended program.
Former four-time finance minister Ishaq Dar remains the top contender, according to two sources in his Pakistan Muslim League-Nawaz (PML-N) party, which is leading the coalition.
PML-N’s Shehbaz Sharif has been nominated by the alliance to be prime minister in an election scheduled for March 3. He will announce his cabinet, including the finance minister, shortly after being elected.
But Dar is not the only candidate being considered, the sources said. Despite being a relative of, and close aide to, PML-N chief Nawaz Sharif, many political allies have criticized Dar’s handling of the economy in the last coalition set up.
He, however, has defended his actions, saying he had to take tough measures to avert a sovereign default by securing the IMF program, which former Prime Minister Imran Khan had scuttled days before leaving his office, a charge Khan denies.
Pakistan struggled for over four months to lock in the stand-by arrangement last summer when Dar was finance minister, and it took the intervention of his prime minister, Shehbaz Sharif, to secure a last-ditch deal.
Dar also regularly criticized the IMF on public platforms in the middle of negotiations, and has long favored market interventions to prop up the Pakistani rupee – something the IMF has warned against.
If Dar doesn’t get the portfolio, his party might consider creating a position of deputy prime minister for him, one of the sources in the PML-N said.
Also being considered are caretaker Finance Minister Shamshad Akhtar, a former central bank governor, who is overseeing key policy measures under the current IMF program, both sources said.
Akhtar has been a key part of the caretaker set up that has been praised by the IMF for “decisive policy efforts” to maintain stability.
Another name being considered is Muhammad Aurangzeb, president and chief executive officer of the country’s largest bank, Habib Bank Limited, the sources said.
Aurangzeb had also served as the CEO of JP Morgan’s Global Corporate Bank based in Asia.
Akhtar did not respond to a Reuters request for a comment and Aurangzeb’s HBL said it would not comment on “rumors and speculations.”
A PML-N spokesperson did not respond to a request for comment.
Dar himself told reporters before the parliament’s inaugural session on Thursday that there was no decision yet when asked if he would be the choice for finance minister again.
PML-N senior leader Irfan Siddiqui told the local newspaper The News that Dar will “most probably” be picked for the post.
Aside from negotiating a new and extended IMF program, the new finance minister will have about three months to prepare a federal budget that will need to strike a difficult balance between tough reforms and rejuvenating a struggling economy.
The PML-N, leading a minority government, will be relying on the support of different parties to pass critical legislation, with alliance partner Pakistan Peoples Party saying it would support the government on an issue-to-issue basis.
Efforts to assuage growing public anger at record inflation hovering around 30 percent will also be challenging with limited fiscal space.
“Pakistan needs someone who has broad and in-depth international experience to introduce the kind of reforms that have helped many other countries to come out of economic crises,” said Yousuf Nazar, a London-based economist and former Citigroup banker.
He, however, declined to say who was best suited.
Race for new Pakistan finance minister heats up ahead of crucial IMF negotiations
https://arab.news/9r8tr
Race for new Pakistan finance minister heats up ahead of crucial IMF negotiations
- Ishaq Dar remains the top contender, though he may be declared deputy PM if he does not get the portfolio
- Pakistan’s interim finance minister and president of the country’s largest HBL bank are also said to be in the race
Pakistan and Belarus agree to strengthen cooperation in industry, health and tourism sectors
- Both countries hold eighth session of Pakistan-Belarus Joint Ministerial Commission on Trade and Economic Cooperation in Minsk
- Islamabad is pushing for foreign investment from allies in a bid to shore up $350 billion economy
ISLAMABAD: Pakistan has agreed to expand its cooperation with Belarus in industry, media, tourism and other vital economic sectors, state-run media reported this week, as Islamabad pushes for foreign investment from allies to shore up its $350 billion economy.
The decision was taken on Monday at the Eighth Session of the Pakistan-Belarus Joint Ministerial Commission on Trade and Economic Cooperation held in Minsk during a meeting between Commerce Minister Jam Kamal Khan and Belarusian Energy Minister Aleksey Kushnarenko.
“Both sides agreed to expand industrial cooperation, particularly in agricultural machinery, transportation and industrial equipment,” Radio Pakistan said. “They also pledged to work together on health care and pharmaceuticals sector, seed production, livestock, veterinary medicine and fisheries to boost food security and trade between the two nations and many other sectors.”
The meeting focused on strengthening the two countries’ economic, commercial, and technical ties, the state broadcaster said. Both sides agreed to strengthen cooperation on labor migration issues, promote tourism, and renew the agreement between the National State Television and Radio Company of Belarus and Pakistan Television Corporation, it added.
Pakistan and Belarus marked 30 years of diplomatic ties in 2024. Earlier this year, Belarus’s prime minister visited Islamabad to meet key civilian and military officials including the prime minister and army chief.
In November 2024, Pakistani Prime Minister Shehbaz Sharif and Belarus President Aleksandr Lukashenko witnessed the signing of 15 memorandums of agreements in Islamabad for cooperation in disaster management, environmental protection, science and technology and halal trade.
In September 2024, Pakistan and Belarus explored joint ventures in agricultural machinery including a tractor plant and a foot-and-mouth disease vaccine for cattle. They also agreed to collaborate on agricultural mechanization, livestock, seeds and veterinary medicine.
The two countries have a history of cooperation, having held the first Joint Economic Commission in 2015 focusing on textile, pharmaceutical and lighting industries.
Pakistan’s efforts to increase trade and investment ties with regional allies and other countries stems from its desire to pursue sustainable growth amid a prolonged economic crisis. Pakistan last year came to the brink of a sovereign default before it clinched a last-gasp $3 billion bailout package from the International Monetary Fund (IMF).
Pakistan’s UN ambassador calls for global action against militants operating from Afghanistan
- Pakistan accuses Afghanistan of harboring safe havens for militants as it suffers from surge in attacks
- Munir Akram calls for eliminating root causes of militancy such as poverty, injustice and unresolved conflicts
ISLAMABAD: Pakistan’s UN Ambassador Munir Akram has called for global action against religiously motivated militants such as Daesh, the Tehreek-e-Taliban Pakistan (TTP) and the separatist Majeed Brigade outfits, alleging that over two dozen “terrorist groups” are operating from Afghanistan which are a threat to the entire region and beyond.
Pakistan has suffered a surge in militant attacks in its western provinces bordering Afghanistan. The TTP or the Pakistani Taliban have carried out attacks against civilians and law enforcers in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) provinces while the Majeed Brigade, a specialized unit of the Baloch Liberation Army, have scaled attacks in the southwestern Balochistan province.
Islamabad has repeatedly urged Kabul to take action against militants that it says are using Afghan soil to launch attacks against Pakistan, a charge the Taliban-led government denies. Pakistan last year conducted cross-border strikes into Afghanistan against alleged militant targets, escalating tensions with its western neighbor.
Akram made the comments during the UN Security Council briefings on “Threats to international peace & security caused by terrorist acts,” Pakistan’s Permanent Mission to the UN shared on social media platform X on Tuesday.
“While strongly rejecting any imputation that an ISIL-K/Daesh recruitment is taking place inside the country, Pakistan has urged the international community to take greater cognizance of the renewed terrorist threat posed by the TTP, Majeed Brigade and Daesh,” the mission said.
“He stated in unequivocal terms that over two dozen terrorist groups are operating inside Afghanistan, which is also the ‘main hub for ISIL-K’s recruitment and facilitation,’ as is confirmed by the UN Monitoring Team’s recent report.”
Akram pointed out that Pakistan had defeated Al-Qaeda and other militant networks within its borders, adding that the South Asian country continues to confront “terrorist threats” such as the TTP, Daesh and the Majeed Brigade operating from safe havens across the border.
He demanded addressing root causes of militancy such as poverty, injustice, prolonged unresolved conflicts, foreign occupation and denial of the right of self-determination to people.
“Without addressing the root causes, we can hope for little success if our focus remains restricted to the consequences of such policies,” he maintained.
Akram pointed out that it was unfortunate how counter-terrorism policies have often equated Islam with extremism, adding that such misplaced notions fuel Islamophobia and further radicalization.
He condemned “terrorism” in all its forms, saying Pakistan was one of the countries worldwide leading the battle against militancy.
“For more than four decades, we have remained at the forefront of global counter terrorism efforts and been a principle target of terrorist attacks, financed by our adversaries in the region and we have paid a heavy price in innocent human life; lost 80,000 casualties and enormous damage to our economy,” Akram said.
Polio vaccination mandatory for Pakistani Umrah pilgrims following surge in cases
- Saudi Arabia instructs Pakistani pilgrims to receive polio vaccination at least four weeks before departure, says state media
- Development takes place amid surge in polio cases in recent months, with Pakistan reporting 73 infection cases last year
ISLAMABAD: Saudi Arabia’s General Authority of Civil Aviation (GACA) has made it mandatory for Umrah pilgrims from Pakistan to receive polio vaccination before traveling to the Kingdom for the spiritual pilgrimage, state broadcaster Radio Pakistan reported this week.
The development takes place amid a surge in poliovirus cases in Pakistan in recent months, with the South Asian country reporting 73 cases last year and only one this year. Polio is a paralyzing disease with no cure and to ensure immunity, health experts say it is crucial that all children under five complete the oral polio vaccine series.
According to Radio Pakistan, GACA has issued a letter directing Umrah pilgrims from Pakistan to receive polio vaccination at least four weeks before their departure and to carry the vaccination certificate with them.
“The vaccination should not be more than six months old at the time of departure,” the state broadcaster said.
The Pakistani state media said Umrah pilgrims and relevant institutions have been asked to “strictly implement” this condition to avoid offloading of pilgrims from the plane.
Pakistan has said it vaccinated over 45 million children in its first anti-polio vaccination campaign of the year conducted last week from Feb. 3-9.
Pakistan and Afghanistan are the last two countries where polio remains endemic. In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases.
Pakistan’s polio program began in 1994, but efforts to eradicate the virus have been hampered by vaccine misinformation, opposition from some religious hard-liners who view immunization as a foreign plot, and frequent attacks on polio vaccination teams by militant groups.
Review clears Uruguay, Pakistan and Uganda challenge WADA anti-doping listings
- All three were put on WADA’s watchlist in September 2024 over “outstanding non-conformities” to updated anti-doping code
- Sanctions bar non-compliant nations or organizations from hosting major sporting events, flying their flag at sporting events
Montreal: The World Anti-Doping Agency announced Friday that a review committee recommended the removal of Uruguay from its compliance watchlist, while Pakistan and Uganda vowed to fight accusations of code violations.
All three were put on WADA’s watchlist in September 2024 over “outstanding non-conformities” to the agency’s updated anti-doping code.
Some of the states’ legislation was also alleged to be in conflict with those rules.
In a statement, WADA said Uruguay’s national anti-doping organization provided information and documentation that showed “critical corrective actions had now been corrected in full.”
As such, the agency’s Compliance Review Committee recommended the withdrawal of a notice of non-compliance against Uruguay.
If the Executive Committee agrees, there would be no sanctions applied to Uruguay.
The Olympic committees of Pakistan and Uganda, meanwhile, notified WADA they plan to “dispute the allegations of non-compliance against them, as well as the proposed consequences, and the conditions of reinstatement,” the global anti-doping body said.
The two cases would be referred to the Court of Arbitration for Sport for consideration “in due course.”
No penalties will be imposed until the court rules.
There are currently four signatories to WADA’s code that are non-compliant: Cameroon and Russia, the International Federation of Basque Pelota and the International Fitness and Bodybuilding Federation.
Sanctions bar non-compliant nations or organizations from hosting major sporting events and from flying their flag at sporting events.
Pakistan says has ‘close interaction’ with Saudi Arabia, UAE in minerals and mining sectors
- Pakistan’s landscape is a treasure trove of diverse mineral deposits from coal reserves to gold and copper deposits and gemstones
- Islamabad has expedited efforts in recent months to exploit this untapped mineral potential to speed up Pakistan’s economic growth
ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday that Pakistan was having a “very close interaction” with Saudi Arabia and the United Arab Emirates (UAE) in minerals and mining sectors, amid Islamabad’s efforts to focus on key sectors to boost the country’s economy.
Pakistan’s landscape is a treasure trove of diverse mineral deposits from huge coal reserves in the southern Sindh province to gold and copper deposits in the southwestern Balochistan province. The northwestern Khyber Pakhtunkhwa province is home to several gemstone mines, including emerald mines in Swat, Mardan’s pink topaz mines, and peridot mines in Kohistan.
Petroleum Minister Musadik Malik said last month Pakistan and Saudi Arabia were in “advanced” stages of talks relating to investment in Reko Diq copper and gold mine, one of the world’s largest underdeveloped copper-gold mines, in Balochistan, with Saudi Arabia reportedly offering Pakistan a 15 percent investment stake in the project. The UAE, a key development and investment partner of Pakistan, has also recently expressed its “keen interest” in collaborating with Pakistan in mining, minerals and agriculture sectors, according to PM Sharif’s office.
While this huge mineral potential has remained largely unexplored, Pakistan has expedited efforts in recent months to exploit this untapped potential to speed up its economic growth.
“Mines and minerals, which is generally a G2G [government-to-government] corridor, in this, we are having a very close interaction with the UAE [United Arab Emirates] and Saudi Arabia,” PM Sharif told a group of Pakistani businessmen and investors in Dubai.
Sharif is currently in the UAE to attend the World Governments Summit (WGS) on Feb. 10-11, which brings together a large number of heads of state/government, global policymakers, and leading private sector figures to discuss the future of governance, innovation and international cooperation. This will be Sharif’s second visit to the UAE since assuming office in March last year.
His statement follows remarks by Petroleum Minister Malik, in which he said Pakistan and Saudi Arabia had done all the requisite homework with regard to a “very large asset.”
“Both sides have come up with valuation frameworks, the valuation ranges are in place, and both of the teams are empowered now to negotiate, and right now, we are under non-disclosure. So, I can’t give you the details, but suffice to say that we are expecting very big announcements very soon,” he said, on the sidelines of Future Minerals Forum (FMF) in Riyadh last month.
Reuters reported that Saudi Arabian mining company Manara Minerals could invest in Pakistan’s Reko Diq mine in the next two quarters, citing the Pakistani petroleum minister.
Saudi Arabia is the largest source of remittances to Pakistan, which were recorded at $728.3 million in January, and a key ally, whereas Pakistani policymakers consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
Pakistan, faced with a prolonged economic crisis, last year also signed several agreements worth $2.8 billion and $3 billion with Saudi Arabia and the UAE, respectively.
