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IMF APPROVES $7 BILLION BAILOUT FOR PAKISTAN; FIRST DISBURSEMENT SET FOR SEPTEMBER Thursday, 26 September, 2024 I 21 Rabi ul Awwal, 1446
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PM expresses optimism as initial $1.1b tranche nears release WASHINGTON News desk
E Executive Board of the International Monetary Fund (IMF) has approved a $7 billion Extended Fund Facility (EFF) for Pakistan, with the first tranche of $1.1 billion expected to be released by September 30, 2024. The loan carries an interest rate of under 5%, according to sources in the Ministry of Finance, with a second disbursement anticipated within the current fiscal year. State Bank of Pakistan Governor Jameel Ahmed confirmed that Islamabad has met all conditions set by the IMF for the release of funds. In response to the approval, Prime Minister Shehbaz Sharif expressed his gratitude to IMF Managing Director Kristalina Georgieva and her team, as well as to supportive nations like Saudi Arabia, China,
and the United Arab Emirates (UAE) for their assistance with the bailout. “The implementation of economic reforms is in full swing,” the Prime Minister
stated, emphasizing the government’s commitment to fostering economic stability and growth. He noted that rising business activities and investments reflect the efforts of
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the economic team and expressed hope that this would be Pakistan’s final engagement with the IMF. Earlier this year, Pakistan and the IMF reached an agreement on a 37-month loan program, which the Prime Minister hopes will mark a turning point for the country’s economy. This approval followed confirmation of $12 billion in bilateral loans from supportive countries and external financing of $2 billion, a prerequisite for the IMF’s endorsement. Insiders revealed that Pakistan owes $5 billion to Saudi Arabia, $4 billion to China, and $3 billion to the UAE. To secure the IMF’s approval, Pakistan needed to demonstrate $2 billion in external financing. This was achieved through a combination of a Saudi oil facility, a $400 million facility from the Islamic Development Bank (IsDB), and support from other Middle Eastern banks. The cash-strapped nation has implemented various measures demanded by the IMF, including broadening the tax
Constitutional amendments should be based on consensus, not personal interests: Fazl ISLAMABAD
staff CorrespoNdeNt
Abbasi urges CJP to retire upon completing his term MURREE
staff report
Former prime minister and Awam Pakistan Party leader Shahid Khaqan Abbasi has called for Chief Justice of Pakistan Qazi Faez Isa to retire upon completion his tenure. Speaking to the media at the Murree Press Club on Wednesday, Abbasi stressed that Pakistan is facing severe political turmoil. "The country is in a state of political instability and unrest. There is no option but to run the country according to the Constitution," he said. Abbasi criticised the lack of transparency in recent constitutional amendments. "Parliament is unaware of the constitutional amendments being made. Attempts have been made to undermine the Constitution in the dead of night," he remarked, reiterating that Justice Isa should retire after completing his term. Reflecting on Pakistan's political history, the former premier said, "Every election in Pakistan has been rigged, yet no one has learned any lessons. The people's mandate has also been stolen." Abbasi went on to comment on the political leadership of both Nawaz Sharif and Imran Khan. "Nawaz Sharif abandoned his 'respect the vote' narrative. Imran Khan came to end corruption, but today, corruption has increased tenfold," he stated. He further criticised the current government's performance, saying it has failed to gain public support.
Jamiat Ulema-e-Islam (JUI-F) chief Maulana Fazlur Rehman has expressed his desire for constitutional amendments to be passed through consensus, emphasising that extensions should be granted based on necessity, not personal interests. In a statement issued by JUI-F’s media cell following a meeting with senior journalists on Wednesday, Fazlur Rehman said, “We hope that constitutional amendments are passed with mutual agreement.” He added, “An extension should be granted on the basis of need, not interests. We support the establishment of a constitutional court.” The JUI-F leader also remarked that the previous struggle in support of former chief justice Iftikhar Chaudhry had unfortunate outcomes. “We all supported Iftikhar Chaudhry, but we all
saw the consequences of that decision,” he said. Rehman further expressed concerns about two provinces being under the control of armed groups. “One province has nationalists removed through rigging, and the other province saw religious parties pushed out. The state’s writ in Balochistan and Khyber Pakhtunkhwa has disappeared,” he claimed. Addressing the double standards in dealing with internal matters, he pointed out, “When nationalists talk about separation, it is considered a domestic issue, but when it comes to religion, it is made an international problem. Why this double standard?” Rehman concluded by stressing the need for reforms that serve the national interest, saying, “The current deadlock and struggle are for personal interests. We want amendments to be made beyond individual gains, for the larger national interest. The involvement of institutions in elections cannot be seen as a symbol of national unity.”
IHC questions ISPR exclusive role in designation of defence analysts g
Justice Babar Sattar also questions PEMRA’s authority to regulate TV channel content and its role in pre-clearing analysts’ opinions ISLAMABAD
staff report
The Islamabad High Court on Wednesday asked the Defence Ministry to clarify the legal standing of ISPR and why ISPR deems the designation of defence analysts as its exclusive authority. IHC’s Justice Babar Sattar made the observation during the hearing of a petition against the PEMRA notification that restricts defence analysis on TV channels to only retired military officers. Justice Babar Sattar issued a written order regarding the case and sought original records and inquired about the basis of PEMRA’s notification. During the court questioned PEMRA’s authority to regulate TV channel content and sought clarification on its role in pre-clearing analysts’ opinions. PEMRA’s lawyer referenced Section 20 of the PEMRA Ordinance, which pertains to the responsibility of TV channels regarding national security, integrity, and
sovereignty. At which the court questioned the relevance of pre-clearing analysts to national security and sovereignty. The court granted the PEMRA lawyer additional time to address these queries and to explain why PEMRA felt the need for issuing such a circular. The court also asked if the armed forces or ISPR had made a specific request for this notification. PEMRA issued the notification on April 4, 2019, restricting defense analysis to retired military personnel.
base, imposing taxes on agricultural income, and raising electricity and gas prices. The government has presented a tax-heavy budget for the fiscal year 202425, aiming to generate Rs13 trillion by next July, a nearly 40% increase from the current fiscal year. These tax increases primarily impact salaried workers and some retail and export businesses. The budget also proposed strict penalties for tax evaders, including restrictions on mobile phone use, gas and electricity access, and international travel. Addressing unresolved debts in Pakistan’s power sector has been a critical concern for the IMF, which previously ended a $3 billion bailout in April that resulted in increased tariffs affecting lower and middleincome households. For years, Pakistan has relied on IMF programs, often teetering on the edge of sovereign default and depending on nations like the UAE and Saudi Arabia for financing to meet IMF-mandated external financing targets.
Pakistan, Turkmenistan to sign MoU for Gwadar port access under CPEC ISLAMABAD INp
Pakistan and Turkmenistan are set to sign a Memorandum of Understanding (MoU) that would grant Turkmenistan access to Gwadar Port under the China-Pakistan Economic Corridor (CPEC) framework. This agreement, facilitated by the Special Investment Facilitation Council (SIFC), would make Turkmenistan the first Central Asian country to gain such access through CPEC. The primary objective of this accord is to establish regional and international cooperation for the movement of goods and containers, leveraging the potential capabilities of both nations’ ports. This development aligns with ongoing collaborative projects between Pakistan and Turkmenistan, including the TAPI pipeline, railway track, and fiber connectivity initiatives, aimed at linking South and Central Asia. In preparation for this agreement, the Pakistani government has formed a committee to review the draft agreement between Gwadar and Turkmenbashi ports under CPEC. Additionally, a separate cabinet committee has been established to approve 50% of public sector imports through Gwadar Port. The development of Gwadar Port is expected to generate employment opportunities, stimulate economic growth, and attract foreign investment by enhancing regional connectivity. High-level governmental efforts, supported by SIFC, are underway to promote Gwadar as a global trade hub. The implementation of CPEC projects is anticipated to foster economic stability and prosperity while strengthening economic and trade relations with other countries in the region.
Pakistan, Turkiye agree to bolster defence, economic cooperation g
PM Shehbaz, President Erdogan assess preparations for 7th Pak-Türkiye HLSCC to be held in Islamabad NEW YORK
staff report
New Prime Minister Shehbaz Sharif on Wednesday met with Turkish President Recep Tayyip Erdogan wherein two sides agreed to further strengthen mutually beneficial cooperation in trade, investment, defence and security domain. In the meeting held on the side-lines of the 79th Session of the United Nations General Assembly in New York, the two leaders discussed the bilateral matters, regional and global developments, according to a PM Office press release. Both the leaders assessed preparations for the upcoming 7th session of PakistanTürkiye High-Level Strategic Cooperation Council (HLSCC) to be held in Islamabad in the near future. The two leaders also discussed regional and global developments, especially the ongoing genocide and the dire
humanitarian situation in Gaza. They called for an immediate humanitarian ceasefire in Gaza and end of hostilities. Prime Minister Shehbaz appreciated Türkiye’s firm and consistent support for the oppressed people of the Indian Illegally Occupied Jammu and Kashmir (IIOJK). During the meeting, President Erdogan expressed his admiration for Prime Minister Shehbaz Sharif’s economic policies, which have played a crucial role in stabilizing Pakistan’s economy and commended his leadership and commitment to economic reforms. Furthermore, President Erdogan also extended his heartfelt birthday wishes to Prime Minister Shehbaz who celebrated his 73rd Birthday this week. Talking to reporters after the meeting, Shehbaz Sharif said “The way the Turkish President highlighted the issue touched the hearts of all those listening to him in the Assembly hall.”
Shehbaz Sharif said Pakistan and Turkey have brotherly relations and that President Erdogan would soon pay a visit to Pakistan. PM meets UN Secretary-General, urges for right to right to self-determination of Kashmiris Meanwhile, Prime Minister Muhammad Shehbaz Sharif on Wednesday met United Nations Secretary-General Antonio Guterres and urged him to use his good offices for the implementation of the relevant UN Security Council resolutions on Jammu and Kashmir, and ensuring the right to self-determination of the Kashmiris. The prime minister, in the meeting held on the sidelines of the 79th Session of the UN General Assembly here, briefed the UN secretary-general on the situation in Indian Illegally Occupied Jammu and Kashmir (IIOJK). He underscored Pakistan’s serious concerns over India’s egregious actions in the
IIOJK and stressed upon the need to resolve the dispute to ensure lasting peace and stability in South Asia. Prime Minister Shehbaz welcomed the initiative by the Secretary General Guterres to organize the “Summit of the Future”, and expressed his hope that its outcome would help the developing countries in bridging the financial gap for implementation of SDGs and climate goals. He condemned Israel’s genocidal campaign against the Palestinians, and called for
an immediate and unconditional ceasefire. The prime minister also urged the international community to hold Israel accountable and reaffirmed Pakistan’s support for the establishment of a viable and sovereign State of Palestine. Secretary General Guterres thanked the prime minister for Pakistan’s active engagement at the United Nations as well as for its role towards international peace and security in the form of its UN’s peacekeeping force.