KARACHI: Police on Tuesday launched a crackdown on the main protest organized by the religio-political party Majlis Wahdat-e-Muslimeen (MWM), leaving several, including cleric Allama Hasan Zafar Naqvi, injured, according to a spokesperson for the group.
The MWM has been staging sit-ins at over 10 locations in Karachi since last week to protest against sectarian violence in the northwestern Kurram district. Home to around 600,000 people, Kurram is located in Khyber Pakhtunkhwa province and has long been a hotspot for tribal and sectarian conflicts, with authorities struggling to maintain control.
The area’s volatile situation has necessitated travel in convoys escorted by security personnel, but this measure failed to prevent a deadly ambush on November 21, when gunmen attacked a convoy, killing 52 people, mostly Shias.
At least 136 people have so far lost their lives in the violence that followed, as a grand jirga, or traditional council of political and tribal elders, continues efforts to mediate between rival factions, though the unrest has now spilled beyond Kurram.
Police in Karachi moved against the central MWM protest camp at Numaish Chowrangi on Tuesday afternoon after days of complaints that life in the city had been brought to a near standstill, triggering clashes during the crackdown.
“Alama Hasan Zafar Naqvi is among many wounded in police attack,” Ahmer Naqvi, spokesperson of MWM told Arab News.
Prior to that, police and paramilitary Rangers used tear gas to disperse protesters and cleared Abul Hasan Isfahani Road near Abbas Town and Kamran Chowrangi in Gulistan-e-Jauhar.
Addressing a press conference, Allama Hasan Zafar Naqvi condemned the action and vowed that the group would not only continue its sit-in but also expand it to other parts of the city.
Meanwhile, Sindh Chief Minister Syed Murad Ali Shah took notice of protesters setting vehicles on fire, his office said in a statement.
“No permission will be given to cause damage to public or private property in any form,” Shah was quoted as saying. “Everyone has the right to protest, but damaging city property in this manner is incitement to violence.”
The CM said legal action would be taken against those who set vehicles on fire. Shah also directed the police to improve the situation in Karachi.
“The chief minister has instructed the additional inspector general of police to eliminate disorder in the city and submit an immediate report,” the statement said.
The Karachi police chief on Monday warned demonstrators of action if the protests continued to disrupt public life.
The Ahle-Sunnat Wal Jamaat (ASWJ), the MWM’s rival religious group, also threatened to hold counter-protests at 60 locations in Karachi if the MWM sit-in was not brought to an end.
Karachi police crack down on religio-political party’s days-long protest
https://arab.news/zby79
Karachi police crack down on religio-political party’s days-long protest
- Majlis Wahdat-e-Muslimeen is holding sit-in protests in solidarity with people of violence-hit Kurram district
- The Karachi police chief warned demonstrators of action a day earlier if they continued to disrupt public life
Islamabad dismisses claims about paying up to 8 percent interest on foreign loans as ‘misleading’
- Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves
- Pakistan’s total external debt, liabilities stand at $138 billion at an overall average cost of around 4 percent, ministry says
KARACHI: Pakistan’s finance ministry on Sunday dismissed as “misleading” claims that the country is paying up to 8 percent interest on external loans, saying the overall average cost of external public debt is approximately 4 percent.
Pakistan has long relied on external loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.
Over the decades, successive governments have turned to multilateral and bilateral lenders, including the International Monetary Fund, the World Bank and the Asian Development Bank, to support budgetary needs and shore up foreign exchange reserves.
The finance ministry on Sunday issued a clarification in response to a “recent press commentary” regarding the country’s external debt position and associated interest payments, and said the figures required contextual explanation to ensure accurate understanding of Pakistan’s external debt profile.
“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion,” it said.
“Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans ‘up to 8 percent’ is misleading.
The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.”
With respect to interest payments, public external debt interest outflows increased from $1.99 billion in Fiscal Year (FY) 2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion, it said.
According to the State Bank of Pakistan’s records, Pakistan’s total debt servicing payments to specific creditors during the period under reference were as follows: the IMF received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.
“While interest payments have increased in absolute terms, this rise cannot be attributed solely to an expansion in the debt stock,” the ministry said. “Although the overall debt stock has increased slightly since FY2022, the additional inflows have primarily originated from concessional multilateral sources and the IMF’s Extended Fund Facility (EFF) under the ongoing IMF-supported program.”
Pakistan secured a $7 billion IMF bailout in Sept. 2024 as part of Prime Minister Shehbaz Sharif’s efforts to stabilize the South Asian economy that narrowly averted a default in 2023. The government has since been making efforts to boost trade and bring in foreign investment to consolidate recovery.
“It is also important to note that the increase in interest payments reflects prevailing global interest rate dynamics. In response to the inflation surge of 2021–22, the US Federal Reserve raised the federal funds rate from 0.75-1.00 percent in May 2022 to 5.25–5.50 percent by July 2023. Although rates have since moderated to around 3.75 percent, they remain significantly higher than 2022 levels,” the finance ministry said.
“The government remains committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability,” it added.
