ISLAMABAD: Pakistanis are observing a ‘Day of Gratitude’ today, Friday, to honor a response by armed forces and the public to this month’s Indian strikes against Pakistan, with President Asif Ali Zardari describing it as “great moment.”

India struck several Pakistani cities with missiles on May 7 amid heightened tensions over an attack last month in Indian-administered Kashmir. Pakistan said it immediately responded to Indian strikes and downed six Indian fighter jets, including three French-made Rafales.

India has not officially confirmed the downing of jets, but its air force chief this week told a news conference in New Delhi that “losses are a part of combat.” Both neighbors traded air, missile, drone and artillery fire for four days before the United States brokered a ceasefire on May 10.

In his message on the Day of Gratitude, President Zardari said the success of ‘Operation Bunyan-um-Marsoos’ against India belongs to both the armed forces and the entire Pakistani nation, who stood like an iron wall against “enemy aggression.”

“I am proud of our Armed forces who responded to Indian provocation with precision, professionalism, and strength. I am glad that the world witnessed and acknowledged Pakistan’s patience and restraint as well as the operational effectiveness that compelled the enemy to cease its aggression. We stood firm. We stood united. And we emerged victorious with dignity,” he said in a statement.

“Pakistan is a peace-loving country and does not harbor aggressive design against any country. However, let there be no doubt: Pakistan will never compromise on its sovereignty, territorial integrity, or its core national interests. Any aggression against our homeland will be met with full force.”

On Friday morning, a 31-gun salute was held in the federal capital of Islamabad and 21-gun salutes in provincial capitals. Several rallies, gatherings, events and visits to national memorials are expected to held, mainly after Friday prayers, across the South Asian country. Public and private institutions will hold commemorative programs as well.

India and Pakistan, both bitter rivals who possess nuclear weapons, have fought three wars since 1947 after gaining independence from British colonial India. The root cause of their conflict is the disputed Himalayan region of Kashmir, which they both claim in full but rule only in part.

This month’s military conflict between the rivals was also triggered by an attack by gunmen on tourists in Indian-administered Kashmir’s Pahalgam town, which killed 26 people on April 22. India blamed the attack on Pakistan. Islamabad denies the charge and has called for a credible, international probe into it.

On Thursday, Pakistan Prime Minister Shehbaz Sharif, accompanied by Army Chief General Asim Munir and senior members of the cabinet, visited Pakistan Air Force (PAF) base Kamra to laud Pakistani pilots for successfully defending the country, hours after Deputy Prime Minister Ishaq Dar informed lawmakers in parliament that the ceasefire agreement between Islamabad and Delhi has been extended till Sunday.

“For now, these are military-to-military communications, so obviously, then political dialogue will take place,” he said. “The resolution of all issues lies there.”

Also on Thursday, India’s Foreign Minister Subrahmanyam Jaishankar said a key water treaty, which governs river water critical to parched Pakistan for consumption and agriculture, would remain suspended until “cross-border terrorism by Pakistan is credibly and irrevocably stopped.” New Delhi suspended the treaty a day after the April 22 attack.

Dar responded by calling the treaty “a no-go area.”

“The treaty can’t be amended, nor can it be terminated by any party unless both agree,” he told parliament.

Militants have stepped up operations on the Indian side of disputed Kashmir region since 2019, when Prime Minister Narendra Modi’s Hindu nationalist government revoked the region’s limited autonomy and imposed direct rule from New Delhi.
 

KARACHI: The International Monetary Fund (IMF) is likely to release the first tranche of its $1.4 billion climate resilience loan for Pakistan “in about six months,” a source with direct knowledge of the development told Arab News on Thursday. 

The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion External Fund Facility program, freeing about $1 billion in cash.

The Washington-based lender is expected to start the Resilience and Sustainability Facility (RSF) funding for Pakistan along with its second review of Islamabad’s EFF program, the source disclosed on condition of anonymity as they are not authorized to speak to media on the matter. 

“With the second review of the EFF, if the [IMF] board approves then they [Pakistan] might get the first tranche of the RSF, ” the source said, adding that the next EFF review is expected to take place “in about six months.”

“For climate financing, nothing will be disbursed now,” they added. 

Pakistan’s finance adviser Khurram Schehzad said the climate loan is not a “one-off payment.”

“The RSF fund will be released gradually over the next 28 months, which is linked to the implementation of 13 KPIs (key performance indicators),” the official told Arab News.

He did not elaborate how much the global lender would release as part of the first tranche.

The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters. The South Asian country has been consistently ranked as one of the worst affected countries due to climate change effects. 

In 2022, Pakistan was devastated by flash floods triggered by unusually heavy rains and the melting of glaciers. The catastrophe killed 1,700 people, displaced more than 30 million others and damaged crops and infrastructure worth $30 billion.

That forced Pakistan last year to request the IMF for the RSF fund to address its vulnerability to climate change.

The IMF on May 9 approved the much-awaited climate loan for Pakistan and disbursed the $1.02 billion as its first tranche under the EFF program on May 13.

The Washington-based lender is scheduled to hold its second EFF review of Pakistan’s economic performance on Sept. 15, Sana Tawfik, the head of research at Arif Habib Ltd., said, citing the IMF’s Pakistan Country Report 2024.

When asked if the next IMF review will be delayed, the source replied in the negative. 

The RSF funds are crucial for Pakistan as its dwindling foreign exchange reserves rose to $10.3 billion last week. This amount does not meet the IMF’s three-month import cover threshold requirement.

In its monetary policy statement on May 5, Pakistan’s central bank said delays in the realization of official inflows coupled with “large debt repayments” weakened net financial inflows into the country till March.

Pakistan, which narrowly averted a sovereign default in 2023 after a last-gasp IMF bailout package, owed about $26 billion debt repayments this year ending June. While most of its foreign debt has been repaid, the country still relies heavily on the IMF’s funds to keep its balance of payment position in check.

The central bank expects the country’s foreign reserves to increase to $14 billion by June “on the back of the expected realization of planned official inflows.”

“This build-up in FX reserves to continue in FY26, based on a moderate current account deficit and improved financial inflows,” the SBP said in its statement.