Pakistan, Iraq announce slew of measures for Pakistani pilgrims traveling for Arbaeen

In this handout photograph, taken and released by Pakistan’s Information Department, Pakistan Interior Minister Mohsin Naqvi (center, left) speaks during a meeting with Iraqi Ambassador Hamid Abbas Lafta (center, right) at the Interior Ministry in Islamabad on August 7, 2024. (PID)
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Updated 07 August 2024
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Pakistan, Iraq announce slew of measures for Pakistani pilgrims traveling for Arbaeen

  • Arbaeen marks end of 40-day mourning period for Prophet Muhammad’s (PBUH) grandson Imam Hussain
  • Pakistani pilgrims traveling to Iraq will not have to surrender passports on arrival, says state-run media

ISLAMABAD: Pakistan and Iraq have agreed on a slew of measures to facilitate Pakistani pilgrims traveling to the Middle Eastern country for the Arbaeen religious festival, state-run media said, which include easing travel restrictions and operating special flights between the two countries. 
Arbaeen is a significant event in the Islamic calendar observed by Shia Muslims around the world. It signifies the end of a 40-day mourning period for Prophet Muhammad’s (peace be upon him) grandson Imam Hussain, who was killed in the Battle of Karbala in 680 CE. 
Pilgrims from Pakistan and all around the world flock to the Middle Eastern country every year to pay tribute to Hussain on the occasion. 
“Pakistan and Iraq have agreed to operate special flights for Pakistani pilgrims on the occasion of Arbaeen,” the state-run Associated Press of Pakistan (APP) said on Wednesday. 
“Both sides agreed that Pakistani pilgrims traveling to Iraq for Arbaeen would no longer need to surrender their passports upon arrival.”
The decision was reached during a meeting between Interior Minister Mohsin Naqvi and Iraq’s Ambassador Hamid Abbas Lafta. As per the APP, both officials promised to make the religious journey smoother and more accessible for thousands of devotees.
It was agreed during the meeting that Iraq would increase the quota for Pakistani pilgrims and would issue them visas directly from the Embassy of Iraq, APP said.
The state media also said that a new Iraqi consulate would also be opened in Pakistan’s southern port city of Karachi.
Both countries would also initiate a crackdown on travel agents charging excessive fees to pilgrims, APP said. A visa waiver agreement on diplomatic and official passports was also reached during the meeting, the state media reported, adding that Pakistan requested the same for citizens who held regular passports. 
Decisions taken in the meeting aimed to provide equal facilities to Pakistani pilgrims by ensuring a hassle-free experience, APP said. It said Naqvi also managed to secure approval from Aviation Minister Khawaja Asif to allow Iraqi airlines to operate special flights to Pakistan for the occasion. 
This development marked a significant improvement in travel arrangements for Pakistani pilgrims, promising a more convenient and accessible journey to Iraq, APP said.


IMF warns against policy slippage amid weak recovery as it clears $1.2 billion for Pakistan

Updated 11 December 2025
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IMF warns against policy slippage amid weak recovery as it clears $1.2 billion for Pakistan

  • Pakistan rebuilt reserves, cut its deficit and slowed inflation sharply over the past one year
  • Fund says climate shocks, energy debt, stalled reforms threaten stability despite recent gains

ISLAMABAD: Pakistan’s economic recovery remains fragile despite a year of painful stabilization measures that helped pull the country back from the brink of default, the International Monetary Fund (IMF) warned on Thursday, after it approved a fresh $1.2 billion disbursement under its ongoing loan program.

The approval covers the second review of Pakistan’s Extended Fund Facility (EFF) and the first review of its climate-focused Resilience and Sustainability Facility (RSF), bringing total disbursements since last year to about $3.3 billion.

Pakistan entered the IMF program in September 2024 after years of weak revenues, soaring fiscal deficits, import controls, currency depletion and repeated climate shocks left the economy close to external default. A smaller stopgap arrangement earlier that year helped avert immediate default, but the current 37-month program was designed to restore macroeconomic stability through strict monetary tightening, currency adjustments, subsidy rationalization and aggressive revenue measures.

The IMF’s new review shows that Pakistan has delivered significant gains since then. Growth recovered to 3 percent last year after shrinking the year before. Inflation fell from over 23 percent to low single digits before rising again after this year’s floods. The current account posted its first surplus in 14 years, helped by stronger remittances and a sharp reduction in imports. And the government delivered a primary budget surplus of 1.3 percent of GDP, a key program requirement. Foreign exchange reserves, which had dropped dangerously low in 2023, rose from US$9.4 billion to US$14.5 billion by June.

“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF Deputy Managing Director Nigel Clarke said in a statement after the Board meeting.

But he warned that Islamabad must “maintain prudent policies” and accelerate reforms needed for private-sector-led and sustainable growth.

The Fund noted that the 2025 monsoon floods, affecting nearly seven million people, damaging housing, livestock and key crops, and displacing more than four million, have set back the recovery. The IMF now expects GDP growth in FY26 to be slightly lower and forecasts inflation to rise to 8–10 percent in the coming months as food prices adjust.

The review warns Pakistan against relaxing monetary or fiscal discipline prematurely. It urges the State Bank to keep policy “appropriately tight,” allow exchange-rate flexibility and improve communication. Islamabad must also continue raising revenues, broadening the tax base and protecting social spending, the Fund said.

Despite the progress, Pakistan’s structural weaknesses remain severe.

Power-sector circular debt stands at about $5.7 billion, and gas-sector arrears have climbed to $11.3 billion despite tariff adjustments. Reform of state-owned enterprises has slowed, including delays in privatizing loss-making electricity distributors and Pakistan International Airlines. Key governance and anti-corruption reforms have also been pushed back.

The IMF welcomed Pakistan’s expansion of its flagship Benazir Income Support Program, which raises cash transfers for low-income families and expands coverage, saying social protection is essential as climate shocks intensify. But it warned that high public debt, about 72 percent of GDP, thin external buffers and climate exposure leave the country vulnerable if reform momentum weakens.

The Fund said Pakistan’s challenge now is to convert short-term stabilization into sustained recovery after years of economic volatility, with its ability to maintain discipline, rather than the size of external financing alone, determining the durability of its gains.