Pakistan says open to talks with India after IMF flags tensions as loan risk

International Monetary Fund logo is seen outside the headquarters building during the IMF/World Bank spring meeting in Washington DC, US, on April 20, 2018. (REUTERS/File)
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Updated 21 May 2025
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Pakistan says open to talks with India after IMF flags tensions as loan risk

  • Indian Defense Minister Rajnath Singh has called on IMF to reconsider $1 billion loan to Pakistan
  • Finance advisor says structural benchmarks mentioned in the lender’s latest report not new terms

KARACHI: Pakistan on Tuesday hinted that it was open to “constructive diplomatic and economic engagement” with India as the International Monetary Fund (IMF) said prevailing tensions between the two archfoes had increased enterprise risks to Islamabad’s ongoing loan program.

The development comes days after Indian Defense Minister Rajnath Singh said the IMF should reconsider a $1 billion loan to Pakistan alleging it was “funding terror,” a move denounced by Islamabad as proof of New Delhi’s desperation.

India and Pakistan this month clashed in the worst military violence in decades, killing around 70 people before agreeing a ceasefire on May 10. The conflict was sparked by an attack on tourists in Indian-administered Kashmir that New Delhi blamed on Islamabad, a charge it denies.

Khurram Schehzad, adviser to Pakistan’s finance minister, said the Washington-based lender had not imposed any new “conditions” on Pakistan, which continues to pursue stability and responsible governance that supports long-term growth for itself and the region alike.

“Constructive diplomatic and economic engagement in the region, including with neighbors, remains essential,” Schehzad told Arab News, when asked about the recent developments on the fiscal front.

The IMF last week approved a loan program review for Pakistan, unlocking a $1 billion payment which the State Bank of Pakistan said had been received. A fresh $1.4 billion loan was also approved under the IMF’s climate resilience fund.

But the lender last week said the rising India-Pakistan tensions, if sustained or deteriorated further, could heighten enterprise risks to the fiscal, external and reform goals of its $7 billion ongoing loan program for cash-strapped Pakistan.

The IMF loan is vital for Pakistan which is trying to revive its debt-ridden economy that is expected to expand 2.68 percent by June, about one percent lower than the government’s earlier projection.

“Yes, the IMF report identifies regional tensions as a potential risk, as is customary in such assessments,” Schehzad said, adding that at the same time, the Fund had noted that Pakistan’s stocks market had reacted to the conflict modestly and retained most of its recent gains.

“We view this as a reflection of investor confidence in Pakistan’s macroeconomic path.”

Pakistan’s stocks, which rose more than 80 percent last year, have largely resisted selling pressures in recent weeks, despite the country’s conflict with India that saw the two sides strike each other with missiles, drones and artillery.

Schehzad rejected the impression that Pakistan had increased its defense budget and said it remained constant at 1.9 percent of the gross domestic product this fiscal year starting in June 2024.

“The Rs2.414 trillion defense budget cited in the IMF’s staff report is an absolute projection,” he said.

After debt servicing, defense spending is the second biggest drain on Pakistan’s revenues that the country is trying to improve by withdrawing energy subsidies and taxing incomes from agriculture, retail and real estate sectors as one of the conditions set by the IMF under its 37-month Extended Fund Facility (EFF) secured in September.

BUDGET DISCUSSIONS

An IMF team is currently discussing with Pakistan the upcoming federal budget that the country is expected to unveil early next month, said IMF officials privy to the discussions, requesting anonymity as they were not authorized to speak to media.

The talks are expected to conclude “this week” after which the IMF would issue a concluding statement, they told Arab News, without explaining what exactly the two sides were discussing.

The IMF’s latest country report, issued last week, mentioned certain structural benchmarks for Pakistan’s economic reform program that Schehzad said represented the natural progression of the measures already agreed upon, when Pakistan signed the Memorandum for Economic and Financial Policies (MEFP) in September.

“There are not newly introduced conditions. Each step builds logically on the foundations laid in earlier phases of the program,” he said, adding that each structural benchmark the IMF’s report mentioned was part of a sequenced approach to reforms that was designed in phases and built upon progress achieved in the country’s earlier reviews.

Pakistan on May 9 secured the IMF board’s nod for its first review that saw the release of about $1 billion to the cash-strapped country and the approval of the country’s request for a 28-month, $1.4 billion Resilience and Sustainability Facility (RSF) to cope with environmental vulnerabilities.

“These benchmarks are not surprises. They are deliberate follow-ons to earlier milestones,” Schehzad said, citing Pakistan’s parliamentary approval of the next budget in line with the IMF staff agreement as a second step toward the country’s goal of achieving a primary surplus of 2 percent of GDP by FY27.

“The first step was the FY25 budget [presented in June last year], which targeted a 1.0 percent surplus.”

Terming several other IMF structural benchmarks as a continuation of what has been agreed upon with the lender, Schehzad said some new benchmarks were introduced in response to recent developments.

“The plan to publish a post-2027 financial sector strategy and the move to remove the cap on the debt service surcharge are based on new realities, including the recent constitutional amendment and the government’s evolving energy sector reform strategy,” he said.

Other reforms, according to the adviser, included phasing out incentives in Pakistan’s special technology zones and industrial parks by 2035 to ensure a level-playing field, and lifting a ban on the import of used cars to reduce trade barriers was consistent with the trade liberalization goals outlined in the September 2024 MEFP.

The finance adviser confirmed that the remaining 13 actions fall under the separate climate resilience-focused facility, RSF, that were approved by the IMF’s executive board.

“These measures reflect Pakistan’s steady and sovereign commitment to economic reform and transparency, not externally imposed demands,” he said. 


Pakistan, China, Bangladesh agree to enhance cooperation in trade, investment and maritime affairs

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Pakistan, China, Bangladesh agree to enhance cooperation in trade, investment and maritime affairs

  • Pakistan and Bangladesh are both part of China’s multi-billion, ambitious Belt and Road Initiative project
  • All three sides hold trilateral vice foreign minister/foreign secretary meeting in Kunming, Yunnan on Thursday

ISLAMABAD: Senior officials of Pakistan, Bangladesh and China on Friday vowed to enhance trilateral cooperation in various sectors such as trade, investment, health, education, maritime affairs and others, the Chinese foreign ministry said. 

Pakistan and Bangladesh are both part of China’s ambitious Belt and Road Initiative (BRI) which aims to connect Asia, Africa and Europe. China envisions the BRI to be a global network of roads, railways, ports, energy pipelines and trade corridors that strengthens Beijing’s trade ties with other regions for the benefit of its economy. 

Pakistan and China are historic allies while strained ties between Islamabad and Dhaka have started to improve since the ouster of former Bangladesh PM Sheikh Hasina last year. The China-Pakistan-Bangladesh Trilateral Vice Foreign Minister/Foreign Secretary meeting was held in Kunming, Yunnan on Thursday, to discuss cooperation in various sectors between the three countries. 

The meeting was attended by Chinese Vice Foreign Minister Sun Weidong, Bangladeshi Acting Foreign Secretary Ruhul Alam Siddique and Pakistani Additional Secretary (Asia Pacific) Imran Ahmed Siddiqui. Pakistan’s Foreign Secretary Amna Baloch participated in the first phase of the meeting via video link.

“The three sides agreed to explore and implement cooperation projects in such areas as industry, trade, maritime affairs, water resources, climate change, agriculture, human resources, think tanks, health, education, culture, and youth,” the Chinese foreign ministry said. 

The statement said Pakistan, Bangladesh and China will establish a working group to follow up and implement the understandings reached during the meeting on Thursday. The three sides emphasized that China-Bangladesh-Pakistan cooperation adheres to true multilateralism and open regionalism, not directed at any third party, it added. 

Pakistan’s foreign office said Baloch conveyed Islamabad’s readiness to work with China and Bangladesh to enhance ties in trade and investment, agriculture, digital economy, environment protection, marine sciences, green infrastructure, culture, education and people-to-people exchanges. 

“The three sides agreed that trilateral cooperation would be guided by the principles of openness, inclusivity, good neighborliness, mutual respect and trust, while working toward win-win cooperation,” Pakistan’s foreign office said. 

Pakistan has recently eyed closer cooperation in trade and investment with regional allies as it grapples with a macroeconomic crisis that has drained its financial resources, significantly weakened its currency and triggered a balance of payments crisis for the South Asian country.

Prime Minister Shehbaz Sharif has repeatedly spoken about his government’s intention to enter “mutually beneficial” partnerships with allies as opposed to seeking loans from them.

In recent months Pakistan has signed memoranda of understanding with allies such as Saudi Arabia, China, United Arab Emirates, Azerbaijan, Turkiye and others worth billions of dollars.


Pakistani minister, FIFA president discuss football’s growing popularity in country

Updated 48 min 21 sec ago
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Pakistani minister, FIFA president discuss football’s growing popularity in country

  • Football has been growing popular over the years in Pakistan, particularly among young fans
  • Mohsin Naqvi invites Gianni Infantino to Pakistan, discusses potential of sports in Pakistan

ISLAMABAD: Interior Minister Mohsin Naqvi met FIFA President Gianni Infantino on Friday to discuss football’s growing popularity in Pakistan and the potential that the sport has in the country, the minister said in a statement. 

Football in Pakistan has long existed in the shadow of cricket. However, the sport has been growing popular over the years, particularly among the youth, who form a passionate fan base in urban centers.

Naqvi, who is also the chairman of the Pakistan Cricket Board (PCB), met Infantino in Washington on Friday. 

“Had an excellent meeting with FIFA President Gianni Infantino,” Naqvi said in a post on X following his meeting with him during a trip to the US.

“We discussed the immense potential of sports in Pakistan — especially the growing popularity of football following cricket,” he added. 

Pakistan and FIFA share a complex yet evolving relationship, shaped by ongoing efforts to develop football infrastructure and promote the sport in the country.

Pakistan has faced repeated administrative challenges and international suspensions, largely due to government interference in football affairs.

In 2019, FIFA appointed a normalization committee to restore order within the Pakistan Football Federation (PFF) and facilitate the holding of democratic elections.

FIFA suspended the PFF earlier in February after its elected congress rejected the constitutional amendments proposed by the global football body but the ban was reversed in March after PFF accepted the proposed constitutional amendments.

However, Pakistan remains committed to elevating its football profile despite recurring setbacks such as suspensions.

The Pakistan national football team last played a match in March, losing 2–0 to Syria in an AFC Asian Cup qualifier.

The next FIFA World Cup is scheduled to take place from June 11 to July 19, 2026, and will be jointly hosted by the United States, Canada and Mexico.


Pakistani FM in Istanbul to demand Iran-Israel ceasefire at this week’s OIC meeting

Updated 20 June 2025
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Pakistani FM in Istanbul to demand Iran-Israel ceasefire at this week’s OIC meeting

  • OIC’s Council of Foreign Ministers (CFM) 51st session will be held from June 21-22
  • Meeting to take place as Iran-Israel conflict intensifies with no sign of either side letting up

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar arrived in Istanbul on Friday to attend the 51st session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers, his office said, as Israel and Iran continue to engage in military conflict while the humanitarian situation in Gaza deteriorates. 

The 51st session of the OIC Council of Foreign Ministers is expected to focus on coordinated efforts to de-escalate tensions between Iran and Israel, the two regional rivals, along with the ongoing humanitarian crisis in Gaza.

The meeting comes at a time when Middle East tensions are high, with Iran and Israel trading missiles and strikes for seven days now. Pakistan has condemned Israel for launching a surprise attack on Iran’s nuclear facilities and military leadership last Friday, calling for peace and diplomacy to resolve the issue.

“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, arrived in Istanbul to participate in the 51st Session of the Council of the Foreign Minister (CFM) of the Organization of Islamic Cooperation (OIC) being held on 21-22 June 2025 and to attend the Islamic Cooperation Youth Forum award ceremony where President Erdogan will be honored,” the Foreign Office said in a press release. 
 

The Pakistani foreign office said Dar was received by Pakistan’s Ambassador to Turkiye, Dr. Yousaf Junaid, Consul General Nauman Aslam and the representatives of the Turkish ministry of foreign affairs. 

“During the plenary session, the DPM/FM will share Pakistan’s perspective on the developments in South Asia following the ceasefire arrangement between Pakistan and India and the situation in the Middle East after Israel’s recent aggression against Iran and other regional states,” the foreign office spokesperson, Shafqat Ali Khan, said in a statement on Thursday. 

He added that Dar would advocate for peace in the Middle East and highlight the need for humanitarian assistance to the people of Gaza during the meeting on June 21 and 22.
Beyond the Middle East, Dar is also expected to address broader issues of concern to the Muslim world, urging the international community to “combat the escalating tide of Islamophobia” by addressing rising extremism and militancy, as well as the growing threat of climate change.

He will also reaffirm Pakistan’s commitment to the principles and objectives of the OIC in addressing challenges faced by Muslim nations globally.

Dar, who also holds the portfolio of foreign minister, is scheduled to hold bilateral meetings with his counterparts from other OIC member states on the sidelines of the conference.

The high-level meeting is taking place amid media reports that the United States is weighing options, including potentially joining Israeli strikes on Iranian nuclear sites.


Pakistan army chief calls for dialogue, diplomacy to resolve regional conflicts

Updated 20 June 2025
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Pakistan army chief calls for dialogue, diplomacy to resolve regional conflicts

  • Field Marshal General Syed Asim Munir interacts with American scholars, analysts, foreign media outlets’ representatives in Washington
  • Munir calls for “broader” relationship with Washington based on mutual respect, shared strategic interests and economic interdependence

ISLAMABAD: Pakistan’s army chief advocated for dialogue and diplomacy to resolve regional conflicts in his interaction with American policy experts, analysts, scholars and representatives of foreign media outlets, the military’s media wing said on Friday amid Islamabad’s simmering tensions with New Delhi. 

Munir is on a solo trip to the US, where he met President Donald Trump for lunch on Wednesday in an unprecedented White House meeting. Trump told reporters afterward that the two had discussed the ongoing Iran-Israel crisis, and that the main reason he wanted to meet Munir was to thank him for not pursuing war with India last month. 

Pakistan and India remained engaged in a military confrontation for four days last month before Washington brokered a ceasefire between the two on May 10. Pakistan has since then sent delegations to various capitals around the world, urging countries to persuade India to resolve bilateral issues with Islamabad via dialogue and diplomacy. 

“The Army Chief also provided a detailed exposition of Pakistan’s balanced approach to regional and global conflicts, advocating for dialogue, diplomacy, and adherence to international law,” the Inter-Services Public Relations (ISPR), the military’s media wing, said. “He reaffirmed that Pakistan continues to play a responsible and proactive role in mitigating regional tensions and promoting cooperative security frameworks.”

Munir also spoke about Pakistan’s recent conflict with India, elaborating on Pakistan’s perspective on “terrorism.” Without naming anyone in particular, the Pakistan army chief spoke about the influence of regional actors in sponsoring and perpetuating “terrorism” as a tool of hybrid warfare. 

“The COAS emphasized that Pakistan has been on the front lines of the global war against terrorism, having rendered immense sacrifices— both human and economic— in pursuit of a safer and more secure world,” the statement said. 

Pakistan denies India’s allegations it supports militant attacks in the part of disputed Kashmir that New Delhi governs. After the April 22 attack in Pahalgam, a tourist resort in Indian-administered Kashmir, tensions between the two countries surged as New Delhi blamed Islamabad for being involved. Pakistan denied the allegations and called for an impartial, international probe into the incident. 

The Pakistan army chief spoke about his country’s untapped potential in information technology, agriculture and its underexploited reserves in the mining and mineral sectors. Munir invited international partners to explore collaborative opportunities in these sectors to unlock “shared prosperity,” the ISPR said. 

The discussion between Munir and the participants also involved an evaluation of the long-standing Pakistan–US partnership, the military’s media wing said. 

“The COAS [chief of army staff] underlined the historical convergences between the two nations, particularly in areas such as counterterrorism, regional security, and economic development,” the ISPR said.

“He underscored the immense potential for a broader, multidimensional relationship built upon mutual respect, shared strategic interests, and economic interdependence.”

The ISPR said the interaction was marked by mutual understanding and was widely regarded as a “positive step” toward enhancing strategic dialogue between the two countries. 

Pakistan’s military plays a key role in shaping the country’s foreign policy, and Munir’s high-profile White House invitation is being seen as part of Washington’s broader effort to recalibrate ties with Islamabad, a vital but often difficult ally for the US in South Asia.

Under Trump, Islamabad and Washington both have appeared eager to rebuild military and economic cooperation after years of strained ties, largely over counter-terrorism disagreements.


Islamabad’s first woman to lead men’s police station takes on drug lords, land mafia

Updated 20 June 2025
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Islamabad’s first woman to lead men’s police station takes on drug lords, land mafia

  • Misbah Shahbaz is SHO of Phulgran, Islamabad suburb long a magnet for drug and land-grabbing gangs
  • Only about 3.2% of officers in Pakistani police are women, just 15,509 women out of 489,645 total

ISLAMABAD: Tucked amid the dust and bustle of Islamabad’s fringes, the suburb of Phulgran has long been a magnet for trouble: drug dens, land-grabbing, and a loose grip on law and order.

But now, it has something new: a phenomenon.

In her blue uniform and a modest headscarf, Misbah Shahbaz quietly took charge in 2025 as Station House Officer (SHO) of Phulgran, Islamabad’s first-ever female SHO at a general, or men’s, police station. 

The post of SHO is one of the most visible and operationally significant leadership roles in Pakistan’s police hierarchy, responsible for crime investigation, public safety, and station-level administration. Until now, female SHOs in Islamabad had only led women police stations.

“It’s a historic decision, and I feel very proud,” Shahbaz told Arab News as she walked through a briefing with her team. 

Station House Officer, Misbah Shahbaz (right), talsk to her colleague in Islamabad, Pakistan, in June 17, 2025. (AN photo)

Phulgran sits at the nexus of rural sprawl and urban ambition, where narcotics and land mafias thrive. Shahbaz’s three-fold roadmap is simple: Clean up the drug trade, target land-grab networks, and raise the ethical bar in policing.

Methodical yet unspoken in her stride, she is already tackling the tough territory:

“Drug trafficking is a major concern. I’ve already developed strategies … and God willing, you’ll soon see the results.”

Her academic résumé reads like an MBA case study: she holds a Master’s and an MBA. But she insisted: 

“I’ve always been drawn to the uniform … This was never about the degree, it was about a passion to serve.” 

Back in 2012, Shahbaz took one of the 87 Assistant Sub-Inspector slots based strictly on merit. And that was just the beginning of a journey in which she says her male colleagues largely treated her as an equal.

“I was lucky to have excellent mentors, all-male officers who treated me no differently,” she said. “They taught me the finer points of investigation, from identifying subtle clues to interviewing techniques.”

Station House Officer, Misbah Shahbaz, speaks to Arab News Pakistan in Islamabad, Pakistan, in June 17, 2025. (AN photo)

Today, when Shahbaz rolls through Phulgran in her official vehicle, residents pause. Men nod, women whisper encouragement and in the sidewalks, young girls see her, and absorb a message: you, too, can wear the badge.

“She’s not less than any man,” a constable under her command said. “In fact, she leads better.”

TURNING TIDE?

Let’s zoom out: Pakistan’s police force is staggeringly male.

According to the National Police Bureau (NPB) and UN Women Pakistan as of 2023,  only about 3.2 % of officers are women, just 15,509 women out of 489,645 total. And while Islamabad fares slightly better, with around 5% of women, most provinces hover at 1–4%.

A mandatory 10 % quota exists but the officers actually recruited, trained, and retained are far fewer. In some provinces, it’s under 1%.

So, Shahbaz’s promotion is more than symbolic. She’s a breakthrough not just for Islamabad but for an entire force held back by gender disparity.

With so few female officers, women are often reluctant to report crimes, especially those involving domestic or gender-based issues. Experts also say the absence of women in decision-making and field leadership reduces community trust in law enforcement.

Female officers like Shahbaz could change that balance. 

And her rise isn’t just a personal triumph. It’s the latest clue in the slow shift in a system where less than 1 in 30 cops is a woman.

As the police officer said:

“Islamabad Police already have a reputation for professionalism but I want to raise the bar so that every citizen feels heard and respected.”