ISLAMABAD: Pakistan’s finance ministry on Tuesday denied any “hiccups” in the implementation of a $7 billion IMF bailout program, saying it was progressing “smoothly” and the country was committed to a macroeconomics reforms agenda attached to the loan.
The finance ministry statement came a day after a major Pakistani newspaper, the Express Tribune, reported that Finance Minister Muhammad Aurangzeb had said in a briefing to the National Assembly Standing Committee on Finance that there were “hiccups” in the implementation of the IMF program.
The bailout is attached to tough economic reforms, including prudent fiscal and monetary policies, and mobilizing revenue from untapped tax bases.
Pakistan’s $350 billion economy has struggled for decades with boom-and-bust cycles, needing 23 IMF bailouts since 1958.
“The IMF program is proceeding smoothly, with no disruptions, as the government of Pakistan remains fully committed to meeting all the conditionalities and ensuring the successful completion of the 37-month program in close coordination with the IMF staff,” the finance ministry statement said, adding that Aurangzeb had “consistently emphasized upon the government’s continued commitment to macroeconomic reforms.”
Referring to the local media report on the recent briefing to the National Assembly Standing Committee on Finance, the ministry said Aurangzeb had reiterated there that adhering to the IMF program was critical for achieving lasting macroeconomic stability.
“Any speculation regarding “hiccups” in the program’s implementation is based on one’s subjective interpretations and lacks credible evidence,” the finance ministry added.
“The government remains focused on maintaining economic stability and fulfilling all obligations under the IMF program with diligence and transparency, aiming to lay the foundation for stronger, sustainable, and inclusive growth.”
The IMF, which approved the new bailout in September, has said the program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”
The IMF said in its statement on approving the loan that Pakistan had taken key steps to restore economic stability with consistent policy implementation under the 2023-24 standby arrangement.
It added that growth had rebounded to 2.4 percent and inflation has receded significantly, falling to single digits, amid appropriately tight fiscal and monetary policies.
A contained current account and calm foreign exchange market conditions have allowed the rebuilding of reserve buffers, and the central bank of Pakistan has been able to reduce interest rates by 700 bps since June in four consecutive cuts.
Despite this progress, Pakistan’s vulnerabilities and structural challenges remain formidable and the tax base remains too narrow.
The South Asian country is the IMF’s fifth-largest debtor, owing the Fund $6.28 billion as of July 11, according to the lender’s data.
Pakistan denies ‘hiccups’ in IMF program, reaffirms commitment to reforms agenda
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Pakistan denies ‘hiccups’ in IMF program, reaffirms commitment to reforms agenda
- Statement comes on the heels of local media report that there were “hiccups” in the implementation of IMF program
- IMF is pushing Pakistan to continue prudent fiscal and monetary policies, mobilize revenue from untapped tax bases
Government says Pakistan preparing Cyber Security Act as digital expansion raises risks
- The proposed legislation will create Cyber Security Authority to oversee the country's cyber defenses
- IT minister warns misuse of genetic and digital data could enable targeted cyber and biological threats
ISLAMABAD: Pakistan is preparing a Cyber Security Act and a dedicated regulatory authority to strengthen defenses against rising digital threats as the country rapidly digitizes government services and economic systems, IT Minister Shaza Fatima said while addressing a ceremony in the federal capital on Wednesday.
The planned legislation is part of Islamabad’s broader “Digital Nation Pakistan” initiative, which aims to expand e-governance, a cashless economy and online public services while safeguarding national cyber infrastructure.
“The more we move toward digitization, with the kind of opportunities that are opening up for us, it is also bringing an equal, or even greater, set of challenges,” the minister said. “This does not mean that we stop digitization. It means that we must make our cybersecurity systems robust.”
She said Pakistan had already activated its National Computer Emergency Response Team (CERT) and provincial CERTs to detect and respond to cyber incidents, while a multi-agency digital monitoring framework known as the National Threat Intelligence System (NTIS) operates around the clock.
“We have a Cyber Security Act coming up, under which a Cyber Security Authority will be established.”
The minister said cybersecurity was not a “generic” concept and required multiple technical specializations as well as comprehensive monitoring and regulation. She warned that the rapid expansion of data-driven technologies was creating new risks even as it opened opportunities in areas such as health and biotechnology.
Referring to advances in genomics and precision medicine, she said the same technologies that help treat diseases could also pose security risks if sensitive biological data were misused. She warned that access to large-scale genetic data could potentially allow hostile actors to develop targeted viruses or other biological threats against populations.
The minister also highlighted Pakistan’s cyber defense capabilities, saying government and military systems remained secure during last year's war with India despite sustained cyber warfare attempts.
She said multiple institutions, including the IT ministry, the National Telecommunication Corporation (NTC), national cybersecurity teams and the armed forces’ cyber command structures, worked together to defend critical systems.
“Despite that massive war ... we did not face a single communication breakdown and we did not allow any penetration into our government systems,” she said, adding that the experience demonstrated the need to further strengthen cybersecurity coordination across institutions.
