High-level Pakistan delegation to visit US ‘shortly’ to address trade imbalance, finmin says

In this handout photo, released by Pakistan’s Finance Ministry on April 26, 2025, senior representatives of the United States Export-Import Bank (EXIM), led by Vice Chairman Jim Barrows (3L), gesture during the meeting with Pakistan Finance Minister Muhammad Aurangzeb (not pictured) in Washington, on the sidelines of the IMF–World Bank Spring Meetings. (Photo courtesy: Handout/Finance Ministry)
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Updated 26 April 2025
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High-level Pakistan delegation to visit US ‘shortly’ to address trade imbalance, finmin says

  • The development comes as the South Asian country mulls options to offset a trade imbalance that has triggered higher tariffs from Washington
  • The US is Pakistan’s largest export market with over $5 bln annual exports as of 2024, while Pakistan’s imports from the US are about $2.1 bln

KARACHI: A high-level Pakistani delegation will “shortly” visit the United States to address trade imbalance between the two countries, Pakistani Finance Minister Muhammad Aurangzeb said on Friday.
The statement came after Aurangzeb’s meeting with Thomas Lersten, a senior State Department Official for economic growth, energy and environment, in Washington, on the sidelines of the International Monetary Fund-World Bank spring meetings.
The development comes as Islamabad mulls options, which range from importing crude oil from the US to abolishing tariffs on American imports, to offset a trade imbalance that has triggered higher tariffs from Washington.
In his meeting with Lersten, Aurangzeb thanked the United States for the participation of a well-represented US delegation in a minerals summit held in Pakistan this month, according to the Pakistani finance ministry.
“He expressed Pakistan’s desire to engage constructively to address the trade imbalance between the two countries and informed that a high-level trade and investment delegation was expected to visit the United States shortly to explore avenues of mutually rewarding economic engagement,” the ministry said.




This handout photo, released by Pakistan’s Finance Ministry on April 26, 2025, shows officials from Pakistan (right) and senior representatives of the United States Export-Import Bank (left) during a meeting in Washington, on the sidelines of the IMF–World Bank Spring Meetings. (Photo courtesy Handout/Finance Ministry)

Pakistan is looking to buy more cotton and soybean from the US, while it is also in talks to tear down non-trade barriers to open its markets to more US products.
“We can also look at if there are any issues with respect to non-tariff discussion, whether there are any onerous inspections at our end for US products, we can obviously view that,” Aurangzeb told Bloomberg this week.
Islamabad is trying to appease the US to seek reprieve from the 29 percent reciprocal tariffs imposed by Trump. Those levies are on hold until July.
The US is Pakistan’s largest export market with over $5 billion in annual exports as of 2024, while Pakistan’s imports from the US are about $2.1 billion.
Aurangzeb also held a meeting with senior representatives of the US Export-Import Bank (EXIM), led by its Vice Chairman Jim Barrows, according to his ministry. The finance minister briefed the EXIM delegation on Pakistan’s improving macroeconomic fundamentals and the fiscal consolidation measures undertaken by the government.
“He called for the EXIM Bank’s enhanced support to facilitate greater US investment in Pakistan,” the finance minister said.
“Senator Aurangzeb further expressed Pakistan’s desire to engage constructively with the United States to address tariff-related issues and strengthen bilateral trade relations.”
Authorities are trying to rebuild Pakistan’s tattered economy after it came close to a default in 2023. The South Asian nation last year secured a 37-month, $7 billion IMF program to help stabilize the $350 billion South Asian economy.
This month, Fitch upgraded Pakistan’s credit rating, citing confidence that the South Asian country will be able to sustain reforms under the IMF loan program.


IMF defends $1 billion disbursement to Pakistan amid India’s objections

Updated 58 min 9 sec ago
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IMF defends $1 billion disbursement to Pakistan amid India’s objections

  • IMF communications director says the board approved funding as Pakistan had ‘met all of the targets’
  • She clarifies EFF disbursements go to the central bank and are not used to fund the national budget

KARACHI: The International Monetary Fund (IMF) this week defended its decision to release a $1 billion tranche to Pakistan, despite India’s concern over its potential misuse, by pointing out the country had met all requisite targets under the Extended Fund Facility (EFF).

India had raised objections to the IMF’s disbursement amid a military confrontation with Pakistan, saying the funds could be diverted to support activities that it described as detrimental to regional stability. New Delhi abstained from the IMF Executive Board vote on May 9, highlighting apprehensions about the timing and potential implications of the financial assistance.

During a news briefing in Washington on Thursday, IMF Communications Director Julie Kozack addressed these concerns, saying the international lender provided financing to member states for the purpose of resolving balance of payments problems.

“In the case of Pakistan … the EFF disbursements … are allocated to the reserves of the central bank,” she said. “Under the program, those resources are not part of budget financing … [and] are not transferred to the government to support the budget.”

The IMF official further emphasized the Fund’s decision was based on Pakistan meeting all the targets set under the loan program.

“Our Board found that Pakistan had indeed met all of the targets,” she continued. “It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the program.”

Kozack also outlined the safeguards to prevent any potential misuse of funds, including targets on the accumulation of international reserves and a zero target for central bank lending to the government.

She also noted the program includes substantial structural conditionality aimed at improving fiscal management.

The IMF’s disbursement this month was part of a broader $7 billion support program aimed at stabilizing Pakistan’s economy. The Fund has said future disbursements will depend on Pakistan’s continued adherence to the program’s conditions and reforms.
 


PM Sharif tells business leaders private sector key to economy ahead of June 10 budget

Updated 23 May 2025
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PM Sharif tells business leaders private sector key to economy ahead of June 10 budget

  • The prime minister assures chambers of commerce representatives of his administration’s full support
  • He promises to reduce cost of doing business in the country, highlights zero tolerance for tax evasion

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday emphasized the pivotal role of the private sector in driving economic development, asserting that a robust public-private partnership was essential for the country’s emergence as a strong global economy.
Sharif made these remarks during a meeting with presidents of chambers of commerce from across the nation, coinciding with the government’s announcement to present the next federal budget on June 10.
The government has consistently stressed the need for the private sector to lead in strengthening the national economy, assuring it of state support.
Sharif reiterated this stance, highlighting the necessity of collaboration between the government and private enterprises in the country.
“There is a need to mobilize the private sector to achieve economic self-reliance,” the Prime Minister’s Office quoted him as saying during the meeting.
“Protecting the rights of the Pakistani business community and providing them with a conducive environment for profitable business are among the top priorities of the government,” he continued.
Sharif also pledged to reduce the cost of doing business in Pakistan, noting that measures were being implemented to facilitate access to loans and reduce electricity prices.
Addressing tax compliance, he emphasized a zero-tolerance policy toward tax evasion. Pakistan has historically one of the lowest tax-to-GDP ratios in the region.
The government has tried to addressed the situation by reforming its tax collection body through increased automation to improve collection and compliance.
The official statement said the delegation of business leaders commended the government’s economic policies, citing gradual improvements in the national economy and business environment.
They also presented budget proposals for the upcoming fiscal year.
Pakistan is scheduled to release a comprehensive economic survey for the outgoing fiscal year on June 9, only a day ahead of the budget preparation.


Pakistan says 25,698 pilgrims to perform Hajj under private quota in 2025

Updated 23 May 2025
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Pakistan says 25,698 pilgrims to perform Hajj under private quota in 2025

  • The annual pilgrimage is expected to take place between June 4 and June 9 this year
  • Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights

ISLAMABAD: Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, said on Friday only 25,698 pilgrims would be able to perform Hajj this year under the private scheme, after thousands of allocated slots were revoked due to non-compliance by private operators with Saudi booking rules and deadlines.

The kingdom had granted Pakistan a total quota of 179,210 pilgrims for Hajj 2025. Typically, this national quota is evenly split between the government-run and private schemes. However, the private sector failed to meet procedural requirements set by Saudi authorities, leading to a significant cut in their share, down from 89,801 to just over 25,000, leaving more than 67,000 would-be pilgrims affected.

“25,698 people will be able to go for Hajj under the private quota,” Yousaf said while addressing a press conference.

“Up until February 14, only 3,600 pilgrims had submitted their payments, but after a one-week extension, 10,000 more applications were received, bringing the total number to 13,000.”

He highlighted that private Hajj operators had registered 904 companies with the Saudi authorities, based on a list provided by the religious affairs ministry. However, some people ignored this and made payments to unregistered Hajj operators.

Yousaf assured that a committee formed by Prime Minister Shehbaz Sharif would investigate the issue.

He said Pakistan International Airlines, Saudi Airlines, Air Sial, Airblue, and Serene Air would be transporting Pakistani pilgrims for Hajj.

Earlier in May, a ministry spokesperson issued guidelines for Hajj pilgrims, including verifying the authenticity and quota approval of private tour operators before making payments, visiting the ministry’s official website to confirm registration and avoiding reliance on unverified advertisements or information.

The ministry strongly urged all prospective pilgrims to exercise utmost caution when booking Hajj packages through private tour operators.

Some registered private organizations also failed to pay dues within the timeline set by Saudi authorities, prompting Sharif to intervene and request an extension of the deadline, which was approved.

This year’s annual pilgrimage is expected between June 4 and June 9, with nearly 89,000 Pakistanis traveling to Saudi Arabia under the government scheme.

Pakistan launched its Hajj flight operation on April 29.

Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights.


Karachi hospital reports four COVID-19 deaths amid surprise summer surge

Updated 23 May 2025
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Karachi hospital reports four COVID-19 deaths amid surprise summer surge

  • A senior physician says all those who succumbed to the disease in the past fortnight were elderly individuals
  • Health experts say the recent surge in coronavirus cases during the summer months is an unusual trend

KARACHI: At least four people with underlying health conditions have died of COVID-19 at a major Karachi hospital in the past two weeks, as experts report an unusual spike in infections during the city’s peak summer season.

All four fatalities occurred at the Aga Khan University Hospital (AKUH), where doctors say they are seeing a steady increase in admissions linked to the coronavirus— a trend they describe as “unexpected” at this time of year.

“In the past two to three weeks, we have seen a significant increase in COVID cases,” Prof. Dr. Syed Faisal Mahmood, a professor of infectious diseases at AKUH, told Arab News, confirming the death of four people during the past two weeks.

The surge, he said, was happening in late spring with temperatures exceeding 40 degrees Celsius.

COVID-19, caused by the SARS-CoV-2 virus, is a highly contagious respiratory illness that was first detected in late 2019 and declared a global pandemic within months. While the virus typically spreads more easily in colder months due to increased indoor activity and lower humidity, experts say its spread during summer in Karachi is a rare deviation from past seasonal patterns.

Mahmood said most infected individuals have been coming to the hospital with mild symptoms, such as sore throat, cough, body aches, and fever, but the virus remains dangerous for older adults and those with weakened immune systems.

“Like in previous years, this year the severe cases of COVID are mostly being seen in people who are older, especially those above 65, or those with weak immune systems,” he said.

“Among these COVID cases, there are some patients who have been hospitalized, and there have also been some deaths,” he added.

Mahmood added that while routine testing is no longer required for everyone with symptoms, caution is essential.

“If you suspect that you have COVID or any other cold or cough-related infection, it is better that you wear a mask,” he advised. “We recommend wearing a mask for at least five to ten days so that others do not get infected.”

The infectious diseases expert also urged caution for those in close contact with the elderly.

“If you are caring for someone who is elderly, then please do not visit them if you are feeling unwell, or at least wear a mask,” he said. “Please take care of yourself, and we hope that there will not be a major further increase in COVID cases.”


Pakistan extends airspace ban on Indian aircraft until June 24 amid ongoing tensions

Updated 23 May 2025
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Pakistan extends airspace ban on Indian aircraft until June 24 amid ongoing tensions

  • The restriction was originally imposed on April 24 after an attack in Kashmir killed 26 tourists
  • The airspace closure impacted Indian airlines, particularly on long-haul international routes

ISLAMABAD: Pakistan has extended its ban on Indian aircraft using its airspace until June 24, the Pakistan Airports Authority (PAA) announced on Friday, amid continued bilateral tensions following recent military clashes this month.

The restriction was first imposed on April 24, only two days after an attack in Indian-administered Kashmir that killed 26 people. India blamed Pakistan for the attack despite Islamabad’s denials. The administration in New Delhi also downgraded bilateral diplomatic ties and took other steps like suspending visas for Pakistanis and shutting border crossings.

In response, Pakistan took its own measures, including the closure of its airspace to Indian aircraft, including commercial and military flights.

“The ban on Indian aircraft flying through Pakistani airspace has been extended until 4:59 AM on June 24, 2025,” the PAA said.

“All aircraft that are Indian-registered, operated, owned or leased will remain subject to the ban,” it added.

The airspace closure has significantly impacted Indian airlines, particularly on long-haul international routes.

Air India, which operates numerous flights to Europe and North America, has been forced to reroute flights, leading to increased fuel consumption, longer flight times, and additional operational costs.

The airline estimates that the ban could result in approximately $600 million in additional expenses over a year and has sought compensation from the Indian government.

Despite a ceasefire agreement announced on May 10, which has held according to Pakistani Deputy Prime Minister Ishaq Dar, the extension of the airspace ban indicates ongoing diplomatic strains.

The situation was further exacerbated by a recent school bus bombing in Pakistan that killed four children, an incident Islamabad has blamed on New Delhi. However, the Indian authorities have denied the charge.