Pakistan’s dependence on external financial support is deepening, with Saudi Arabia adding another $3 billion to Pakistan’s foreign exchange reserves.

The latest support takes Saudi cash deposits with Pakistan’s central bank to $8 billion, providing Islamabad with additional foreign-exchange liquidity and helping meet external financing pressures.

But the fresh Saudi support does not resolve Pakistan’s underlying financing challenges. Islamabad is also looking toward Washington, with Finance Minister Muhammad Aurangzeb confirming that Pakistan has formally requested a $10 billion exchange stabilization support facility from the United States.

Pakistan says the proposed US facility would not be a conventional loan or credit line, but rather a confidence signal for its currency and foreign-exchange stability. Islamabad hopes stronger external backing could improve investor confidence and eventually help the country return to international capital markets for longer-term borrowing.

Pakistan’s Financial Crisis Deepens: Saudi Adds $3 Billion As Islamabad Seeks $10 Billion From US

The United States has raised concerns over Pakistan’s military and intelligence spending, calling for greater civilian and parliamentary oversight of defense budgets and improved transparency in government finances.

According to the US State Department’s 2026 fiscal transparency report, Pakistan has faced criticism over limited public scrutiny of its defense and intelligence budgets, delayed disclosure of its executive budget proposal and insufficient information about government debt and liabilities linked to state-owned companies.

Washington has also highlighted the lack of public disclosure surrounding some major military imports and defense acquisitions, which are reportedly funded outside the main defense budget.

US Pressures Pakistan Over Defense Spending | Washington Demands Greater Civilian Oversight

Pakistan is staring down a perfect storm of crises.
From escalating protests in Pakistan-occupied Kashmir to a rapidly deteriorating security situation in Khyber Pakhtunkhwa, pressure is mounting on the Shehbaz Sharif government. Is the Shehbaz Sharif government losing its grip and can it contain the political, economic and security crises threatening to overwhelm Pakistan?

Protests, Security Crisis & Political Turmoil Rock Pakistan

Pakistan's ex-Federal Board of Revenue Chairman Shabbar Zaidi blamed China for his country's economic crisis. This comes amid reports that only 38 out of 90 projects envisaged under the China-Pakistan Economic Corridor have been completed so far. China remains Pakistan's biggest creditor.

Ex-Top Pak Official Blames Economic Woes on China: Here's How CPEC Has Been a Failure

<p>Even as Pakistan attempts to project itself as a mediator on the global stage, it continues to seek financial assistance from other countries to tackle its worsening economic crisis. The country recently approached the United States for a $10 billion Exchange Stabilisation Facility, underscoring its continued struggle to stabilise its economy.</p><p>&nbsp;</p><p>Amid this backdrop, former Federal Board of Revenue chairman Shabbar Zaidi has blamed China for Pakistan's economic troubles. Speaking at an event, Zaidi claimed that ending economic ties with China would help revive Pakistan's economy. He said, "If there is any person in Pakistan who is against CPEC from day 1, it is Shabbar Zaidi. I said 25 years ago that it is a drama &amp; nothing will come out of it".</p><p>&nbsp;</p><p>The China Pakistan Economic Corridor was launched in 2015 during Chinese President Xi Jinping's visit to Pakistan. The project was promoted as a game changer that would bring billions of dollars in investment while building roads, railways and energy infrastructure across the country.</p><p>&nbsp;</p><p>More than a decade later, however, the project has failed to deliver on many of its promises. While China expanded its strategic footprint in Pakistan and strengthened its control over the Gwadar port in Balochistan, Pakistan has seen limited economic gains. Progress under CPEC slowed during former Prime Minister Imran Khan's tenure and has remained sluggish since then.</p><p>&nbsp;</p><p>The figures reflect the slowdown. Reports show that only 38 of the 90 projects planned under CPEC have been completed. Another 23 projects remain under construction, while work on the remaining projects has not yet begun. The last major project completed under the corridor was the Gwadar East Bay Expressway in 2022.</p><p>&nbsp;</p><p><strong>Also Read: </strong><a href="https://www.wionews.com/world/strait-of-hormuz-deal-with-oman-being-finalised-iran-s-foreign-ministry-1785945741501"><strong>Strait of Hormuz deal with Oman being ‘finalised’: Iran’s foreign ministry</strong></a></p><p>&nbsp;</p><p>Pakistan's economic challenges have continued to deepen. In June, the country's total central government debt climbed to a record $290 billion, the highest level in its history. The surge highlights growing fiscal pressure and increasing dependence on borrowing.</p><p>&nbsp;</p><p>The economic strain has coincided with mounting political instability. A few days ago, Pakistan's Interior Minister Mohsin Naqvi said the country's existing governance structure had collapsed. He proposed creating more provinces or administrative units to improve governance.</p><p>&nbsp;</p><p>The Pakistani military quickly backed Naqvi's remarks, fuelling speculation about possible differences between Army Chief Asim Munir and the Sharif family. The development drew attention because the Pakistan Muslim League Nawaz has traditionally opposed the creation of new provinces.</p><p>&nbsp;</p><p>Political tensions have also intensified. While former Prime Minister Imran Khan's Pakistan Tehreek-e-Insaf continues to challenge the ruling government, its ally, the Pakistan Peoples Party, has also stepped up its criticism. The PPP has accused the Pakistan Muslim League Nawaz of rigging the so-called assembly elections in Pakistan-occupied Kashmir.</p><p>&nbsp;</p><p>PPP chairman Bilawal Bhutto Zardari warned that the ruling party's countdown had begun.</p><p>Although Army Chief Asim Munir's long-term strategy remains unclear, Pakistan's economic difficulties and political uncertainty appear set to deepen further as pressure continues to mount on the country's hybrid governance system.</p>

ormer Pakistan FBR chairman Shabbar Zaidi blamed China and the China Pakistan Economic Corridor for Pakistan's economic troubles, saying the project failed to deliver the promised benefits as the country faces mounting debt and political instability.

Even as Pakistan attempts to project itself as a mediator on the global stage, it continues to seek financial assistance from other countries to tackle its worsening economic crisis. The country recently approached the United States for a $10 billion Exchange Stabilisation Facility, underscoring its continued struggle to stabilise its economy. Amid this backdrop, former Federal Board of Revenue chairman Shabbar Zaidi has blamed China for Pakistan's economic troubles. Speaking at an event, Zaidi claimed that ending economic ties with China would help revive Pakistan's economy. He said, "If there is any person in Pakistan who is against CPEC from day 1, it is Shabbar Zaidi. I said 25 years ago that it is a drama & nothing will come out of it". The China Pakistan Economic Corridor was launched in 2015 during Chinese President Xi Jinping's visit to Pakistan. The project was promoted as a game changer that would bring billions of dollars in investment while building roads, railways and energy infrastructure across the country. More than a decade later, however, the project has failed to deliver on many of its promises. While China expanded its strategic footprint in Pakistan and strengthened its control over the Gwadar port in Balochistan, Pakistan has seen limited economic gains. Progress under CPEC slowed during former Prime Minister Imran Khan's tenure and has remained sluggish since then. The figures reflect the slowdown. Reports show that only 38 of the 90 projects planned under CPEC have been completed. Another 23 projects remain under construction, while work on the remaining projects has not yet begun. The last major project completed under the corridor was the Gwadar East Bay Expressway in 2022. Also Read: Strait of Hormuz deal with Oman being ‘finalised’: Iran’s foreign ministry Pakistan's economic challenges have continued to deepen. In June, the country's total central government debt climbed to a record $290 billion, the highest level in its history. The surge highlights growing fiscal pressure and increasing dependence on borrowing. The economic strain has coincided with mounting political instability. A few days ago, Pakistan's Interior Minister Mohsin Naqvi said the country's existing governance structure had collapsed. He proposed creating more provinces or administrative units to improve governance. The Pakistani military quickly backed Naqvi's remarks, fuelling speculation about possible differences between Army Chief Asim Munir and the Sharif family. The development drew attention because the Pakistan Muslim League Nawaz has traditionally opposed the creation of new provinces. Political tensions have also intensified. While former Prime Minister Imran Khan's Pakistan Tehreek-e-Insaf continues to challenge the ruling government, its ally, the Pakistan Peoples Party, has also stepped up its criticism. The PPP has accused the Pakistan Muslim League Nawaz of rigging the so-called assembly elections in Pakistan-occupied Kashmir. PPP chairman Bilawal Bhutto Zardari warned that the ruling party's countdown had begun. Although Army Chief Asim Munir's long-term strategy remains unclear, Pakistan's economic difficulties and political uncertainty appear set to deepen further as pressure continues to mount on the country's hybrid governance system.

<p>Former Pakistan FBR chairman Shabbar Zaidi blamed China and the China-Pakistan Economic Corridor for Pakistan's economic troubles, saying the project failed to deliver the promised benefits as the country faces mounting debt and political instability.</p>

Ex top Pakistan official blames economic woes on China: Here's how CPEC became a failure

Rising oil prices triggered by escalating tensions in West Asia are putting pressure on South Asia's most vulnerable economies. Pakistan and Bangladesh, both heavily dependent on imported energy, face risks of higher inflation, weaker currencies, and mounting fiscal challenges. This edition of This Week in Asia explores how a potential oil shock could impact millions across the region.

Pakistan, Bangladesh brace for oil shock

Pakistan continues to rely on international financial assistance as concerns grow over the country's long-term economic stability. With repeated bailout packages and limited structural reforms, leading global financial institutions are warning about deep-rooted vulnerabilities. Is Pakistan trapped in a cycle of borrowing, or can meaningful reforms change the country's economic trajectory?

Pakistan's economy running on lifelines 

Hundreds of members of Pakistan's transgender (Khwaja Sira) community and their supporters gathered in Karachi to protest against soaring inflation, rising fuel prices, expensive food, and the increasing cost of living.

The demonstrators carried placards demanding urgent government action, better employment opportunities, and financial relief for vulnerable communities. Protesters said the rapid increase in the prices of essential goods, housing, and transportation has made survival increasingly difficult, especially for transgender Pakistanis who continue to face discrimination and limited access to formal employment.

Pakistan's Transgender Community Protests Rising Inflation and Cost of Living in Karachi

The European Union has issued a strong warning to Pakistan over alleged human rights violations, cautioning that the country could lose its preferential GSP+ trade status if meaningful reforms are not implemented. The European Commission's latest assessment raises concerns over enforced disappearances, extrajudicial killings, restrictions on freedom of expression, and the use of anti-terrorism and blasphemy laws against journalists, dissidents and religious minorities. The report also states that many of Pakistan's reforms remain largely on paper and have not resulted in significant improvements. The EU has urged Islamabad to strengthen accountability, improve labour protections, reform controversial laws, and ensure greater protection for minorities before revised GSP+ rules come into effect in 2027.

EU warns Pakistan over human rights violations | Islamabad risks losing gsp+ trade benefits

<p>Pakistan Foreign Ministry on Wednesday (Apr 15) announced that Saudi Arabia has agreed to $3 billion in fresh deposits, with disbursement expected in the coming week. The nation has also agreed to restructure an existing $5 billion facility on more favourable terms, announced Pakistan's Finance Minister Muhammad Aurangzeb. The announcement came on the sidelines of the IMF-World Bank Spring Meetings in Washington, following talks between Aurangzeb and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. The two had met previously in Islamabad last Friday, though Pakistani authorities deliberately held back from making any public statement until both sides had reached a formal agreement. This comes as Islamabad navigates a demanding external repayment schedule.</p><p><strong>Also read | </strong><a href="https://www.wionews.com/world/-be-careful-pope-has-a-doctorate-in-theology-but-jd-vance-just-told-him-he-s-wrong-about-god-1776229084645"><strong>'Be careful...': Pope has a doctorate in theology, but JD Vance just told him he’s wrong about God</strong></a></p><h2><strong>Saudi commits to $3 billion in additional deposits to Pakistan</strong></h2><p>"Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with disbursement expected in the coming week," announced Pakistan's Ministry of Finance on X. &nbsp;</p><p>"The existing USD 5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period," added the post.</p><p>The more consequential of the two developments may be the restructuring of the existing $5 billion deposit. Previously, that facility was subject to annual rollovers, a cycle that created recurring uncertainty for Pakistan's foreign exchange position and was entangled with IMF conditionalities. Under the new arrangement, the deposit will be extended for a longer, unspecified term, removing that source of annual market anxiety.</p><p><strong>Also read | </strong><a href="https://www.wionews.com/world/-it-s-close-to-over-trump-s-stunning-prediction-for-the-iran-war-revealed-1776214629874"><strong>'It's close to over': Trump’s stunning prediction for the Iran war REVEALED</strong></a></p>

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Saudi Arabia Announces USD 3 Billion Additional Support, Extends USD 5 Billion Deposit: Finance Minister<br><br>Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with… <a href="https://t.co/E8dXPg6g9Y">pic.twitter.com/E8dXPg6g9Y</a></p>&mdash; Ministry of Finance, Government of Pakistan (@Financegovpk) <a href="https://twitter.com/Financegovpk/status/2044247340308148616?ref_src=twsrc%5Etfw">April 15, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<h2><strong>Pakistan's financial woes</strong></h2><p>Pakistan faces a $3.5 billion repayment to the UAE by the end of April. Reports indicate the UAE had been pressing for immediate settlement, while Saudi Arabia and Qatar have together assembled a combined $5 billion buffer to absorb the impact on Pakistan's reserves, which currently stand at roughly $16.4 billion. The government has set a target of reaching approximately $18 billion in reserves, equivalent to around 3.3 months of import cover, by the end of the fiscal year.</p><p>Aurangzeb also noted that Pakistan had successfully repaid a $1.4 billion Eurobond last week, describing it as a "non-event".</p>

After talks involving Pakistan's Finance Minister Muhammad Aurangzeb with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, Riyadh has agreed to a fresh $3bn deposit and easier terms on existing funds.

Scroll down to read more.

Pakistan Foreign Ministry on Wednesday (Apr 15) announced that Saudi Arabia has agreed to $3 billion in fresh deposits, with disbursement expected in the coming week. The nation has also agreed to restructure an existing $5 billion facility on more favourable terms, announced Pakistan's Finance Minister Muhammad Aurangzeb. The announcement came on the sidelines of the IMF-World Bank Spring Meetings in Washington, following talks between Aurangzeb and Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. The two had met previously in Islamabad last Friday, though Pakistani authorities deliberately held back from making any public statement until both sides had reached a formal agreement. This comes as Islamabad navigates a demanding external repayment schedule. Also read | 'Be careful...': Pope has a doctorate in theology, but JD Vance just told him he’s wrong about God Saudi commits to $3 billion in additional deposits to Pakistan "Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has informed that the Kingdom of Saudi Arabia has committed USD 3 billion in additional deposits, with disbursement expected in the coming week," announced Pakistan's Ministry of Finance on X. "The existing USD 5 billion Saudi deposit would no longer remain subject to the earlier annual rollover arrangement and would instead be extended for a longer period," added the post. The more consequential of the two developments may be the restructuring of the existing $5 billion deposit. Previously, that facility was subject to annual rollovers, a cycle that created recurring uncertainty for Pakistan's foreign exchange position and was entangled with IMF conditionalities. Under the new arrangement, the deposit will be extended for a longer, unspecified term, removing that source of annual market anxiety. Also read | 'It's close to over': Trump’s stunning prediction for the Iran war REVEALED

<p>After talks involving Pakistan's Finance Minister Muhammad Aurangzeb with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, Riyadh has agreed to a fresh $3bn deposit and easier terms on existing funds.</p><p>Scroll down to read more.</p>

Saudi Arabia commits $3bn new deposit to Pakistan as Islamabad faces $3.5bn repayment to UAE

<p>Pakistan has announced that it will repay the $3.5 billion United Arab Emirates debt. According to a senior Pakistani Cabinet Minister, the repayment will be made to its “brotherly country” UAE, after it declined rollovers of the loans. He added that Pakistan could not compromise “national dignity" for "financial considerations”. This comes amid the escalation in the West Asia and the need for immediate settlement after shifting from annual to short term month to month extensions.&nbsp;</p><p>These funds were part of an external financial assistance issued by Abu Dhabi to Islamabad in 2019. The entire debt amount is roughly $3.5 billion over the last 30 years, to address the balance-of-payment crisis and maintain foreign exchange reserves. Pakistan's Cabinet has approved a three-part repayment of the loan: $450 million on April 11, $2 billion on April 17, and $1 billion on April 23.&nbsp;</p><p><strong>Also Read: </strong><a href="https://www.wionews.com/world/iran-denies-us-embassy-saudi-drone-strike-accuses-israel-false-flag-1775307032394"><strong>Iran denies drone strike on US embassy in Saudi Arabia, accuses Israel of ‘false flag’ operation</strong></a></p><p>This repayment, along with the $1.3 billion Eurobond maturity, will put the total capital outflow for April to $4.8 billion, reducing Pakistan's foreign exchange reserves by nearly 18 per cent. However, the government claims that the foreign exchange reserves are at comfortable levels. Pakistan maintains a Foreign exchange reserve of $16.4 billion before the capital outflow of April.&nbsp;</p><p>Under the IMF's &nbsp;37-month Extended Fund Facility (EFF) valued at approximately $7 billion, Pakistan must maintain a $12.5 billion in cash deposits from external financing. For Pakistan, this is from China, the UAE and Saudi Arabia. This is done to artificially prop up the foreign reserves. Now, as the UAE is increasingly becoming uncertain and Pakistan is paying $3.5 billion back to its lender, it reduces the cushion and risks pause of EFF disbursements from the IMF. However, there are also reports of discussions between the two parties to convert the paid sum into investments in the energy and infrastructure sectors.&nbsp;</p><p>The Finance Ministry of Pakistan said in a post on X that it is “continuously monitoring and managing Pakistan’s external flows in order to ensure stable foreign exchange reserves”, It added, “The government of Pakistan remains committed to fulfilling all its external obligations."</p><p>&nbsp;</p>

Pakistan will repay $3.5 billion to the UAE after loan rollover refusal, raising concerns over foreign exchange reserves and IMF programme stability amid West Asia tensions.

Pakistan has announced that it will repay the $3.5 billion United Arab Emirates debt. According to a senior Pakistani Cabinet Minister, the repayment will be made to its “brotherly country” UAE, after it declined rollovers of the loans. He added that Pakistan could not compromise “national dignity" for "financial considerations”. This comes amid the escalation in the West Asia and the need for immediate settlement after shifting from annual to short term month to month extensions. These funds were part of an external financial assistance issued by Abu Dhabi to Islamabad in 2019. The entire debt amount is roughly $3.5 billion over the last 30 years, to address the balance-of-payment crisis and maintain foreign exchange reserves. Pakistan's Cabinet has approved a three-part repayment of the loan: $450 million on April 11, $2 billion on April 17, and $1 billion on April 23. Also Read: Iran denies drone strike on US embassy in Saudi Arabia, accuses Israel of ‘false flag’ operation This repayment, along with the $1.3 billion Eurobond maturity, will put the total capital outflow for April to $4.8 billion, reducing Pakistan's foreign exchange reserves by nearly 18 per cent. However, the government claims that the foreign exchange reserves are at comfortable levels. Pakistan maintains a Foreign exchange reserve of $16.4 billion before the capital outflow of April. Under the IMF's 37-month Extended Fund Facility (EFF) valued at approximately $7 billion, Pakistan must maintain a $12.5 billion in cash deposits from external financing. For Pakistan, this is from China, the UAE and Saudi Arabia. This is done to artificially prop up the foreign reserves. Now, as the UAE is increasingly becoming uncertain and Pakistan is paying $3.5 billion back to its lender, it reduces the cushion and risks pause of EFF disbursements from the IMF. However, there are also reports of discussions between the two parties to convert the paid sum into investments in the energy and infrastructure sectors. The Finance Ministry of Pakistan said in a post on X that it is “continuously monitoring and managing Pakistan’s external flows in order to ensure stable foreign exchange reserves”, It added, “The government of Pakistan remains committed to fulfilling all its external obligations."

<p>Pakistan will repay $3.5 billion to the UAE after loan rollover refusal, raising concerns over foreign exchange reserves and IMF programme stability amid West Asia tensions.</p>

Pakistan to repay $3.5 billion UAE debt amid West Asia tensions, reserves under pressure

<p>Pakistan is plagued with corruption due to systemic weaknesses across state institutions, which need to be addressed in order to boost its economic growth, said the International Monetary Fund (IMF), in its long-awaited Governance and Corruption Diagnostic Assessment (GCDA). IMF has called for urgent structural reform for strengthening Pakistan's economy that has been in a poor state for a long time.</p><p>&nbsp;</p><p>The Governance and Corruption Diagnostic Assessment of IMF estimates a 5 to 6.5 per cent economic growth over five years if Pakistan begins to implement a comprehensive package of governance reforms, reported the Dawn.</p><p>&nbsp;</p><p>“Pakistan could generate between a 5pc to 6.5pc increase in GDP by implementing a package of governance reforms over the course of five years” beginning in three to six months, it said.</p><p>The report has urged an end to preferential treatment to influential public sector entities in government contracts. It has also demanded transparency in the functioning of the Special Investment Facilitation Council (SIFC).</p><p>&nbsp;</p><p>“A unifying theme is the emphasis on increasing transparency and accountability in policy formulation, implementation and monitoring. This involves improving access to information and strengthening the capacity of state and non-state stakeholders to participate effectively in governance and economic decision-making,” read the IMF assessment, according to Dawn.</p><p>The report spoke about Pakistan gaining substantial economic grown if the governance is improved by fixing accountability and instilling integrity based on the recommendations of the GCDA.</p><p>&nbsp;</p><p>It also identified the tax system of the country as a problem area for the 'poor economy'. According to Dawn the system that is overly complex and opaque has insufficient capacity, management and oversight and requires an overhaul.</p><p>&nbsp;</p><p>The judicial sector for its organisational complexities and inefficiency to reliably enforce contracts or protect property rights was also said to be a hurdle in the growth of Pakistan's economy.</p><p>&nbsp;</p><p>&nbsp;</p>

The Governance and Corruption Diagnostic Assessment of IMF also identified the tax system of the country as a problem area for the ‘poor economy’.

Pakistan is plagued with corruption due to systemic weaknesses across state institutions, which need to be addressed in order to boost its economic growth, said the International Monetary Fund (IMF), in its long-awaited Governance and Corruption Diagnostic Assessment (GCDA). IMF has called for urgent structural reform for strengthening Pakistan's economy that has been in a poor state for a long time. The Governance and Corruption Diagnostic Assessment of IMF estimates a 5 to 6.5 per cent economic growth over five years if Pakistan begins to implement a comprehensive package of governance reforms, reported the Dawn. “Pakistan could generate between a 5pc to 6.5pc increase in GDP by implementing a package of governance reforms over the course of five years” beginning in three to six months, it said. The report has urged an end to preferential treatment to influential public sector entities in government contracts. It has also demanded transparency in the functioning of the Special Investment Facilitation Council (SIFC). “A unifying theme is the emphasis on increasing transparency and accountability in policy formulation, implementation and monitoring. This involves improving access to information and strengthening the capacity of state and non-state stakeholders to participate effectively in governance and economic decision-making,” read the IMF assessment, according to Dawn. The report spoke about Pakistan gaining substantial economic grown if the governance is improved by fixing accountability and instilling integrity based on the recommendations of the GCDA. It also identified the tax system of the country as a problem area for the 'poor economy'. According to Dawn the system that is overly complex and opaque has insufficient capacity, management and oversight and requires an overhaul. The judicial sector for its organisational complexities and inefficiency to reliably enforce contracts or protect property rights was also said to be a hurdle in the growth of Pakistan's economy.

<p>The Governance and Corruption Diagnostic Assessment of IMF also identified the tax system of the country as a problem area for the ‘poor economy’.&nbsp;</p>

Pakistan economy hit by 'deep corruption across state institutions', requires urgent reforms, says IMF

<p>Pakistan has hiked its defence spending by a steep 20% after suffering serious setbacks from Indian strikes during Operation Sindoor despite battling severe economic challenges and had to slash its overall federal expenditure for fiscal 2025-26 by a hefty 7% to 17.57 trillion rupees ($62 billion) in its budget.</p><p>&nbsp;</p><p>The military spending has been increased even as Pakistan is battling weak finances and tremendous economic challenges.</p><p>&nbsp;</p><p>The overall spending planned in the budget is down 7% to 17.57 trillion rupees ($62 billion).</p><p>&nbsp;</p><p>The budget presented on Tuesday by Prime Minister Shehbaz Sharif’s government allocated 2.55 trillion rupees ($9 billion) to defence in July-June 2025-26, up from 2.12 trillion.</p><p>It projected a deficit of 3.9% of GDP against the 5.9% targeted for 2024-25. Inflation has been projected at 7.5% and growth at 4.2%.</p><p>&nbsp;</p><p>Pakistan has to kickstart growth while meeting the strictures of an International Monetary Fund finance programme. It also has to cope with the uncertainty of new import tariffs being imposed by the United States, which is its biggest export market.</p><p>&nbsp;</p><p>Pakistan boosts military spending</p><p>&nbsp;</p><p>Besides, Pakistan has allocated 742 billion Pakistani rupees ($2.63 billion) to military pensions, taking the entire defence budget to 3.292 trillion Pakistani rupees ($11.67 billion). That included 704 billion Pakistani rupees ($2.5 billion) in spending on equipment and other physical assets.</p><p>&nbsp;</p><p>The Sharif government has projected 4.2% economic growth in 2025-26, claiming that it has steadied the economy which was facing the risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7%, against the budgeted target of 3.6%.</p><p>&nbsp;</p><p>Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and the Asian Development Bank expects 6.0% in 2025.</p><p>&nbsp;</p><p>Finance Minister Muhammad Aurangzeb said the government intends to complete the privatisation of Pakistan International Airlines, a request of the IMF.</p><p>&nbsp;</p><p>Growth should be aided by a sharp drop in the cost of borrowing, the government says, after a series of interest rate cuts.&nbsp;</p><p>Economists, however, warn that monetary policy alone may not be enough, as fiscal constraints and IMF-mandated reforms are still weighing on investment.</p><p>Aurangzeb said, “The budget was the start of a strategy to boost exports, increase foreign currency reserves to avoid the balance of payments crises of the past, and create a more competitive economy.”</p><p>“In short, our budget strategy is to change the economy’s DNA by bringing basic changes,” he said.</p>

Pakistan has to kickstart growth while meeting the strictures of an International Monetary Fund finance programme. Its also has to cope with the uncertainty of new import tariffs being imposed by the United States, which is its biggest export market.

Pakistan has hiked its defence spending by a steep 20% after suffering serious setbacks from Indian strikes during Operation Sindoor despite battling severe economic challenges and had to slash its overall federal expenditure for fiscal 2025-26 by a hefty 7% to 17.57 trillion rupees ($62 billion) in its budget. The military spending has been increased even as Pakistan is battling weak finances and tremendous economic challenges. The overall spending planned in the budget is down 7% to 17.57 trillion rupees ($62 billion). The budget presented on Tuesday by Prime Minister Shehbaz Sharif’s government allocated 2.55 trillion rupees ($9 billion) to defence in July-June 2025-26, up from 2.12 trillion. It projected a deficit of 3.9% of GDP against the 5.9% targeted for 2024-25. Inflation has been projected at 7.5% and growth at 4.2%. Pakistan has to kickstart growth while meeting the strictures of an International Monetary Fund finance programme. It also has to cope with the uncertainty of new import tariffs being imposed by the United States, which is its biggest export market. Pakistan boosts military spending Besides, Pakistan has allocated 742 billion Pakistani rupees ($2.63 billion) to military pensions, taking the entire defence budget to 3.292 trillion Pakistani rupees ($11.67 billion). That included 704 billion Pakistani rupees ($2.5 billion) in spending on equipment and other physical assets. The Sharif government has projected 4.2% economic growth in 2025-26, claiming that it has steadied the economy which was facing the risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7%, against the budgeted target of 3.6%. Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and the Asian Development Bank expects 6.0% in 2025. Finance Minister Muhammad Aurangzeb said the government intends to complete the privatisation of Pakistan International Airlines, a request of the IMF. Growth should be aided by a sharp drop in the cost of borrowing, the government says, after a series of interest rate cuts. Economists, however, warn that monetary policy alone may not be enough, as fiscal constraints and IMF-mandated reforms are still weighing on investment. Aurangzeb said, “The budget was the start of a strategy to boost exports, increase foreign currency reserves to avoid the balance of payments crises of the past, and create a more competitive economy.” “In short, our budget strategy is to change the economy’s DNA by bringing basic changes,” he said.

<p>Pakistan has to kickstart growth while meeting the strictures of an International Monetary Fund finance programme. It also has to cope with the uncertainty of new import tariffs being imposed by the United States, which is its biggest export market.</p>

Pakistan hikes defence budget by 20% despite economic challenges, cuts overall spending in 2025-26

<p>Pakistan has failed in achieving key economic targets, but its finance minister used the occasion to discuss the dire state of affairs to blame India in the context of its recent bailout package tranche from IMF. The economic survey of Pakistan revealed some shocking numbers, which give an indication of how badly the South Asian nation has been performing. But instead of facing reality, the Pakistani Finance Minister Muhammad Aurangzeb found time to blame, without proof, an unnamed 'Indian executive director' of IMF for trying to ‘block’ the IMF package.</p><p>But first, here is a look at the economic situation, as revealed in the Pakistan Economic Survey 2024-25 unveiled by Aurgangzeb on Monday (June 9).</p><p>&nbsp;</p><h2>Pakistan misses GDP target, crop production down</h2><h2>&nbsp;</h2><p>The key aspect of the economic survey was the GDP failing to meet the target. Pakistan's GDP growth stood at 2.68 per cent, far below the target of 3.56 per cent.&nbsp;</p><p>&nbsp;</p><p>Though slightly better than the previous year, the GDP growth was less than the country's five-year average of 3.3 per cent, and long-term average of over 4.5 per cent.</p><p><br>&nbsp;</p><h2>Pakistan minister takes global economy as alibi as most targets missed</h2><p>&nbsp;</p><p>While explaining the poor performance of the economy, Aurangzeb cited global economic headwinds.</p><p>&nbsp;</p><p>Almost all key economic targets were missed. On the crop production, the shortfall was blamed on a 35 per cent water shortage, revised down to 11-12 per cent.</p><p><br>Both industries and services underperformed, failing to meet targets despite moderate growth.</p><p>&nbsp;</p><p>The country's large-scale manufacturing continued to struggle for the third straight year.</p><p>&nbsp;</p><p>&nbsp;</p><p>Yet, the Pakistani finance minister put up a brave front, calling it a gradual recovery even as he promised a turnaround next year.</p><h2><br>Crop production down</h2><p>&nbsp;</p><p>One glaring aspect in Pakistan's economic survey was the fall in crop production. Major crop production was down 13.5 per cent. The survey blamed it on a 'water crisis'.</p><p>&nbsp;</p><p>The survey showed that wheat, cotton, and maize production went down by 13.5 per cent, while cotton ginning fell by 19 per cent.</p><p><br>&nbsp;</p><h2>Blaming 'Indian IMF executive director'</h2><p>&nbsp;</p><p>But what stuck out like a sore thumb in the finance minister's presentation of the survey was the unfounded allegations targeting India, indirectly blaming it for its internal economic mismanagement.</p><p>&nbsp;</p><p>He was speaking in the context of the recent $1 billion tranche released by the IMF.</p><p><br>Without offering any proof, or naming anyone, Aurangzeb claimed that 'the Indian executive director at the IMF' tried to keep Pakistan bailout discussion off the agenda of the IMF board.</p><p>&nbsp;</p><p>He claimed that the Indian official tried to block the second instalment of the bailout package, as well as another $1.4 billion Resilience and Sustainability Facility for Pakistan's climate crisis financing.</p>

Instead of facing reality, the Pakistani Finance Minister Muhammad Aurangzeb found time to blame, without proof, an unnamed Indian executive director of IMF for trying to block the IMF tranche.

Pakistan has failed in achieving key economic targets, but its finance minister used the occasion to discuss the dire state of affairs to blame India in the context of its recent bailout package tranche from IMF. The economic survey of Pakistan revealed some shocking numbers, which give an indication of how badly the South Asian nation has been performing. But instead of facing reality, the Pakistani Finance Minister Muhammad Aurangzeb found time to blame, without proof, an unnamed 'Indian executive director' of IMF for trying to ‘block’ the IMF package. But first, here is a look at the economic situation, as revealed in the Pakistan Economic Survey 2024-25 unveiled by Aurgangzeb on Monday (June 9). Pakistan misses GDP target, crop production down The key aspect of the economic survey was the GDP failing to meet the target. Pakistan's GDP growth stood at 2.68 per cent, far below the target of 3.56 per cent. Though slightly better than the previous year, the GDP growth was less than the country's five-year average of 3.3 per cent, and long-term average of over 4.5 per cent. Pakistan minister takes global economy as alibi as most targets missed While explaining the poor performance of the economy, Aurangzeb cited global economic headwinds. Almost all key economic targets were missed. On the crop production, the shortfall was blamed on a 35 per cent water shortage, revised down to 11-12 per cent. Both industries and services underperformed, failing to meet targets despite moderate growth. The country's large-scale manufacturing continued to struggle for the third straight year. Yet, the Pakistani finance minister put up a brave front, calling it a gradual recovery even as he promised a turnaround next year. Crop production down One glaring aspect in Pakistan's economic survey was the fall in crop production. Major crop production was down 13.5 per cent. The survey blamed it on a 'water crisis'. The survey showed that wheat, cotton, and maize production went down by 13.5 per cent, while cotton ginning fell by 19 per cent. Blaming 'Indian IMF executive director' But what stuck out like a sore thumb in the finance minister's presentation of the survey was the unfounded allegations targeting India, indirectly blaming it for its internal economic mismanagement. He was speaking in the context of the recent $1 billion tranche released by the IMF. Without offering any proof, or naming anyone, Aurangzeb claimed that 'the Indian executive director at the IMF' tried to keep Pakistan bailout discussion off the agenda of the IMF board. He claimed that the Indian official tried to block the second instalment of the bailout package, as well as another $1.4 billion Resilience and Sustainability Facility for Pakistan's climate crisis financing.

<p>Instead of facing reality, the Pakistani Finance Minister Muhammad Aurangzeb found time to blame, without proof, an unnamed 'Indian executive director' of IMF for trying to block the IMF tranche.</p>

Pak minister blames India, without proof, on IMF tranche issue even as its economy misses crop production, GDP targets

<div class="x_elementToProof" data-olk-copy-source="MessageBody">As India and Pakistan teeter on the edge of another diplomatic standoff after the April 22 terror attack in Pahalgam, a stark economic warning has emerged from global ratings agency Moody&rsquo;s. Released on May 5, the Moody's report outlines how the latest escalation could unravel Pakistan&rsquo;s fragile path to recovery, derail its fiscal reforms, and push it back toward financial instability.</div>
<h2 class="x_elementToProof"><b>Moody&rsquo;s stern warning to Pakistan&rsquo;s economy</b><b></b></h2>
<div class="x_elementToProof">In its latest assessment, Moody's stated that &ldquo;a sustained escalation in tensions with India would likely weigh on Pakistan&rsquo;s growth and hamper the government&rsquo;s ongoing fiscal consolidation.&rdquo; The global rating agency warned that prolonged geopolitical stress could &ldquo;impair Pakistan&rsquo;s access to external financing and pressure its foreign-exchange reserves, which remain well below what is required to meet its external debt payment needs.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Pakistan&rsquo;s foreign exchange reserves currently stand at just over $15 billion, a fraction of India&rsquo;s $688 billion, raising red flags about its ability to service debt in the near future.<b></b></div>
<h2 class="x_elementToProof"><b>What about India?</b></h2>
<div class="x_elementToProof">In contrast, Moody&rsquo;s noted that India&rsquo;s economic exposure to Pakistan is negligible, with less than 0.5% of its total exports heading to the neighboring country in 2024. As such, the agency does &ldquo;not expect major disruptions to India&rsquo;s economic activity&rdquo;, even in the case of sustained tensions.</div>
<div class="x_elementToProof">However, there could be a fiscal cost to India, Moody&rsquo;s acknowledged, noting that &ldquo;higher defence spending would potentially weigh on India&rsquo;s fiscal strength and slow its fiscal consolidation.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">India&rsquo;s macroeconomic stability, bolstered by robust public investment and private consumption, remains intact for now, but prolonged tensions could still put pressure on its fiscal targets.</div>
<h2 class="x_elementToProof"><b>IMF reviews Pakistan&rsquo;s growth prospects</b><b></b></h2>
<div class="x_elementToProof">Pakistan is already walking a tightrope with the International Monetary Fund (IMF), and Moody&rsquo;s fears the latest developments may derail progress on its reform agenda. The IMF&rsquo;s executive board is scheduled to meet on May 9 to review the country&rsquo;s performance under the ongoing $7 billion Extended Fund Facility.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">In April, IMF staff reached a staff-level agreement with Pakistan for a $1.3 billion climate resilience loan spanning 28 months. If approved, it will bring total disbursements to $2 billion, including $1 billion under the existing bailout programme. But any instability or deviation from reform commitments could stall this funding pipeline.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to the IMF, &ldquo;Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment.&rdquo; Finance Minister Muhammad Aurangzeb has assured the IMF that Islamabad remains committed to reforms, but that commitment may be tested as political and security tensions rise.</div>
<h2 class="x_elementToProof"><b>Pakistan&rsquo;s economic turmoil: A fragile recovery</b><b></b></h2>
<div class="x_elementToProof">Once considered one of South Asia&rsquo;s most promising economies, Pakistan is still grappling with the aftershocks of its worst financial crisis in decades. In the aftermath of the COVID-19 pandemic, a combination of poor governance, soaring inflation, and mounting debt brought the country to the brink of sovereign default in 2023. According to data from the State Bank of Pakistan and IMF country reports, inflation surged to a record 38.5 per cent in May 2023, while interest rates climbed to 22 per cent among the highest in the region. Foreign exchange reserves plummeted to just $3.7 billion, barely enough to cover a few weeks of essential imports. Meanwhile, the debt-to-GDP ratio hovered dangerously around 70 per cent, and between 40 to 50 per cent of the federal government&rsquo;s revenues were being consumed solely by interest payments.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">For nearly five years, Pakistan remained on the Financial Action Task Force (FATF) grey list, which significantly constrained its access to international financial markets. It narrowly escaped default in mid-2023 after securing a $3 billion Stand-By Arrangement from the International Monetary Fund, along with emergency financial assistance from Saudi Arabia, the United Arab Emirates, and China.</div>
<h2 class="x_elementToProof"><b>Post-Pahalgam terror attack: KSE crash, India response</b><b></b></h2>
<div class="x_elementToProof">Investor confidence has taken a sharp hit since the Pahalgam attack. Between April 23 and May 5, the KSE-100 index has plunged by over 8,400 points, as traders brace for potential military escalation and further economic fallout. The sustained market meltdown reflects deepening anxiety over the Indo-Pak tensions, particularly amid fears that the crisis could derail Pakistan&rsquo;s fragile economic recovery and jeopardize its upcoming IMF review.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">The April 22 attack, allegedly carried out by Pakistan-backed militants, killed 26 civilians in Jammu and Kashmir. In response, India suspended the Indus Waters Treaty, halted trade via the Attari border, slashed diplomatic ties, and granted the military full autonomy to retaliate. Pakistan responded by suspending the 1972 Simla Agreement, banning Indian flights from its airspace, and terminating remaining trade links.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Moody&rsquo;s geopolitical risk assessment emphasizes that flare-ups between India and Pakistan are not unusual, but warns that this time the stakes are dangerously high. While a full-blown war remains unlikely, even a localized conflict could derail Pakistan&rsquo;s tentative recovery and send its economy spiraling once again.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">With the IMF&rsquo;s critical review just days away, Islamabad faces a dual challenge: navigating rising external pressures while staying the course on deep economic reforms. The world is watching, and for Pakistan, the cost of miscalculation could be economically catastrophic.</div>

Business & Economy: Pakistan's fragile economic recovery faces risks from heightened tensions with India, warns Moody's recent analysis which was Released on May 05.

As India and Pakistan teeter on the edge of another diplomatic standoff after the April 22 terror attack in Pahalgam, a stark economic warning has emerged from global ratings agency Moody’s. Released on May 5, the Moody's report outlines how the latest escalation could unravel Pakistan’s fragile path to recovery, derail its fiscal reforms, and push it back toward financial instability. Moody’s stern warning to Pakistan’s economy In its latest assessment, Moody's stated that “a sustained escalation in tensions with India would likely weigh on Pakistan’s growth and hamper the government’s ongoing fiscal consolidation.” The global rating agency warned that prolonged geopolitical stress could “impair Pakistan’s access to external financing and pressure its foreign-exchange reserves, which remain well below what is required to meet its external debt payment needs.” Pakistan’s foreign exchange reserves currently stand at just over $15 billion, a fraction of India’s $688 billion, raising red flags about its ability to service debt in the near future. What about India? In contrast, Moody’s noted that India’s economic exposure to Pakistan is negligible, with less than 0.5% of its total exports heading to the neighboring country in 2024. As such, the agency does “not expect major disruptions to India’s economic activity”, even in the case of sustained tensions. However, there could be a fiscal cost to India, Moody’s acknowledged, noting that “higher defence spending would potentially weigh on India’s fiscal strength and slow its fiscal consolidation.” India’s macroeconomic stability, bolstered by robust public investment and private consumption, remains intact for now, but prolonged tensions could still put pressure on its fiscal targets. IMF reviews Pakistan’s growth prospects Pakistan is already walking a tightrope with the International Monetary Fund (IMF), and Moody’s fears the latest developments may derail progress on its reform agenda. The IMF’s executive board is scheduled to meet on May 9 to review the country’s performance under the ongoing $7 billion Extended Fund Facility. In April, IMF staff reached a staff-level agreement with Pakistan for a $1.3 billion climate resilience loan spanning 28 months. If approved, it will bring total disbursements to $2 billion, including $1 billion under the existing bailout programme. But any instability or deviation from reform commitments could stall this funding pipeline. According to the IMF, “Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment.” Finance Minister Muhammad Aurangzeb has assured the IMF that Islamabad remains committed to reforms, but that commitment may be tested as political and security tensions rise. Pakistan’s economic turmoil: A fragile recovery Once considered one of South Asia’s most promising economies, Pakistan is still grappling with the aftershocks of its worst financial crisis in decades. In the aftermath of the COVID-19 pandemic, a combination of poor governance, soaring inflation, and mounting debt brought the country to the brink of sovereign default in 2023. According to data from the State Bank of Pakistan and IMF country reports, inflation surged to a record 38.5 per cent in May 2023, while interest rates climbed to 22 per cent among the highest in the region. Foreign exchange reserves plummeted to just $3.7 billion, barely enough to cover a few weeks of essential imports. Meanwhile, the debt-to-GDP ratio hovered dangerously around 70 per cent, and between 40 to 50 per cent of the federal government’s revenues were being consumed solely by interest payments. For nearly five years, Pakistan remained on the Financial Action Task Force (FATF) grey list, which significantly constrained its access to international financial markets. It narrowly escaped default in mid-2023 after securing a $3 billion Stand-By Arrangement from the International Monetary Fund, along with emergency financial assistance from Saudi Arabia, the United Arab Emirates, and China. Post-Pahalgam terror attack: KSE crash, India response Investor confidence has taken a sharp hit since the Pahalgam attack. Between April 23 and May 5, the KSE-100 index has plunged by over 8,400 points, as traders brace for potential military escalation and further economic fallout. The sustained market meltdown reflects deepening anxiety over the Indo-Pak tensions, particularly amid fears that the crisis could derail Pakistan’s fragile economic recovery and jeopardize its upcoming IMF review. The April 22 attack, allegedly carried out by Pakistan-backed militants, killed 26 civilians in Jammu and Kashmir. In response, India suspended the Indus Waters Treaty, halted trade via the Attari border, slashed diplomatic ties, and granted the military full autonomy to retaliate. Pakistan responded by suspending the 1972 Simla Agreement, banning Indian flights from its airspace, and terminating remaining trade links. Moody’s geopolitical risk assessment emphasizes that flare-ups between India and Pakistan are not unusual, but warns that this time the stakes are dangerously high. While a full-blown war remains unlikely, even a localized conflict could derail Pakistan’s tentative recovery and send its economy spiraling once again. With the IMF’s critical review just days away, Islamabad faces a dual challenge: navigating rising external pressures while staying the course on deep economic reforms. The world is watching, and for Pakistan, the cost of miscalculation could be economically catastrophic.

Moody’s report flags economic fallout for Pakistan amid escalating tensions with India

<p>Chinese electric vehicle giant BYD announced on Saturday that it would commence car production in Pakistan, where three of its models would also be sold in conjunction with Mega Motors.</p>

<p>BYD would be the first major new EV entrant into the Pakistani market, which completely lacks infrastructure for charging.</p>

<p>"Our entry into the Pakistani market is not just about bringing advanced vehicles to consumers," said Liu Xueliang, BYD's general manager for Asia Pacific.</p>

<p>"It's about driving a broader vision of environmental responsibility and technological innovation."</p>

<p>It also wants to open three "flagship stores and experience centres" in Karachi, Lahore, and Islamabad, the company said in a statement at an inauguration ceremony in Lahore, adding that it would start selling two models of sport utility vehicles and a sedan from the fourth quarter of 2024 onwards.</p>

<p>Mega Motors is a subsidiary of the largest private utility in Pakistan, Hub Power Co Ltd &nbsp;HPWR.PSX, better known as Hubco.</p>

<p>"We will establish Pakistan's first NEV assembly plant... dedicated to producing BYD's cutting-edge new energy vehicles," said Hubco Chief Executive Kamran Kamal, who described the deal as a "landmark investment".</p>

<p>The new plant will start operations in 2026, according to Reuters.</p>

<p>Hubco will set up fast-charging stations across major cities, motorways, and highways to improve Pakistan's charging infrastructure.</p>


Chinese electric vehicle giant BYD announced on Saturday that it would commence car production in Pakistan, where three of its models would also be sold in conjunction with Mega Motors.

Chinese electric vehicle giant BYD announced on Saturday that it would commence car production in Pakistan, where three of its models would also be sold in conjunction with Mega Motors. BYD would be the first major new EV entrant into the Pakistani market, which completely lacks infrastructure for charging. "Our entry into the Pakistani market is not just about bringing advanced vehicles to consumers," said Liu Xueliang, BYD's general manager for Asia Pacific. "It's about driving a broader vision of environmental responsibility and technological innovation." It also wants to open three "flagship stores and experience centres" in Karachi, Lahore, and Islamabad, the company said in a statement at an inauguration ceremony in Lahore, adding that it would start selling two models of sport utility vehicles and a sedan from the fourth quarter of 2024 onwards. Mega Motors is a subsidiary of the largest private utility in Pakistan, Hub Power Co Ltd HPWR.PSX, better known as Hubco. "We will establish Pakistan's first NEV assembly plant... dedicated to producing BYD's cutting-edge new energy vehicles," said Hubco Chief Executive Kamran Kamal, who described the deal as a "landmark investment". The new plant will start operations in 2026, according to Reuters. Hubco will set up fast-charging stations across major cities, motorways, and highways to improve Pakistan's charging infrastructure.

China's BYD to establish car plant in Karachi, marking its entry into Pakistan

Pakistan is undertaking a significant economic shift by privatising most state-owned enterprises. This move aims to address the financial strain caused by loss-making s-o-e-s and bolster the country's economy.

25 entities listed for privatisation in Pakistan

<p>The IMF has approved an immediate disbursal of the final tranche of $1.1 billion to Pakistan as part of a bailout package, emphasising that the cash-strapped country needs to take tough measures to bring its economy back on track.</p>

<p>The International Monetary Fund (IMF) Executive Board's decision on Monday came after the global lender completed the second and final review of Pakistan's economic reform programme supported by the IMF's Stand-By Arrangement (SBA).</p>

<p><strong>Also read:&nbsp;</strong><a data-ctorig="https://www.wionews.com/south-asia/pakistans-foreign-minister-ishaq-dar-appointed-as-deputy-pm-with-immediate-effect-716026" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/south-asia/pakistans-foreign-minister-ishaq-dar-appointed-as-deputy-pm-with-immediate-effect-716026&amp;sa=U&amp;ved=2ahUKEwiKzt_AyOmFAxVq1TgGHdHRCb8QFnoECAMQAg&amp;usg=AOvVaw2BkRb0J4O0DTiUdjD8CqqV&amp;arm=e" dir="ltr" href="https://www.wionews.com/south-asia/pakistans-foreign-minister-ishaq-dar-appointed-as-deputy-pm-with-immediate-effect-716026" target="_blank"><b>Pakistan's</b>&nbsp;Foreign Minister Ishaq Dar appointed as deputy PM</a></p>

<p>With this development, the disbursements under the SBA reached around $3 billion. All board members favoured the release of the last installment. India, however, abstained from voting.</p>

<p>"Given the significant challenges ahead, Pakistan should capitalise on this hard-won stability, persevering -- beyond the current arrangement -- with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth," said IMF's Deputy Managing Director Antoinette Sayeh.</p>

<p>Continued external support will also be critical, she said.</p>

<p>"Achieving strong, long-term inclusive growth and creating jobs require accelerating structural reforms and continued protection of the most vulnerable through an adequately financed Benazir Income Support Programme," she added.</p>

<p>She further stressed that advancing the reform of state-owned enterprises (SOEs) and ensuring that all SOEs fall under the new policy framework, strengthening governance and anti-corruption institutions, and continuing to build climate resilience was the priority.</p>

<p><strong>Also read:</strong>&nbsp;<a data-ctorig="https://www.wionews.com/india-news/damaged-sea-cables-trigger-major-internet-disruption-in-pakistan-715671" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/india-news/damaged-sea-cables-trigger-major-internet-disruption-in-pakistan-715671&amp;sa=U&amp;ved=2ahUKEwiKzt_AyOmFAxVq1TgGHdHRCb8QFnoECAAQAg&amp;usg=AOvVaw08myF6zJspwvI0PeTeeSiJ&amp;arm=e" dir="ltr" href="https://www.wionews.com/india-news/damaged-sea-cables-trigger-major-internet-disruption-in-pakistan-715671" target="_blank">Damaged sea cables trigger major internet disruption in&nbsp;<b>Pakistan</b></a></p>

<p>The IMF official said Pakistan will receive the loan payment this week.</p>

<p>Sayeh emphasised Pakistan needed to "adhere to a market-determined exchange rate to absorb external shocks and broaden structural reforms to support stronger and more inclusive growth".</p>

<p>"Moreover, stronger action to address undercapitalised financial institutions and, more broadly, vigilance over the financial sector are needed to ensure financial stability," she said in a statement.</p>

<p>The development came a day after Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva in Riyadh, Saudi Arabia.</p>

<p>In his first meeting with the IMF chief since his re-election as premier, Sharif also discussed Pakistan's demand for another IMF programme as the country still needs the global lender's crutches to wobble on to get its economy back on track.</p>

<p>An IMF team is expected to visit Pakistan in May to initiate talks for a new long-term Extended Fund Facility (EFF) ranging between $6 to $8 billion with the possibility of augmentation through climate financing.</p>

<p>However, the exact size and time frame will only be determined after evolving consensus on the major contours of the next programme in May 2024.</p>

<p>If secured, it would be Pakistan's 24th IMF bailout.</p>

<p>Separately, former prime minister Shahid Khaqan Abbasi said all indicators of the economy were negative and the government's decision to seek another bailout from the IMF was an admission of their "failure", The Express Tribune newspaper reported.</p>

<p>"Economic growth stalls and inflation rises due to such agreements with the IMF," he said, adding that the "IMF keeps you alive, but your economic condition deteriorates on every parameter."</p>

<p>"Your industry cannot thrive if political issues remain unresolved, as everything is interconnected. Do not harbour the illusion that things will improve spontaneously," he cautioned.</p>

<p><strong>Also read:</strong>&nbsp;<a data-ctorig="https://www.wionews.com/videos/pakistan-inflation-falls-below-interest-rate-for-first-time-in-3-years-716538" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/videos/pakistan-inflation-falls-below-interest-rate-for-first-time-in-3-years-716538&amp;sa=U&amp;ved=2ahUKEwiKzt_AyOmFAxVq1TgGHdHRCb8QFnoECAYQAg&amp;usg=AOvVaw20YE_dNoxvDh0Dte5RY1K3&amp;arm=e" dir="ltr" href="https://www.wionews.com/videos/pakistan-inflation-falls-below-interest-rate-for-first-time-in-3-years-716538" target="_blank"><b>Pakistan</b>&nbsp;inflation falls below interest rate for first time in 3 years</a></p>

<p>Abbasi pointed out that IMF agreements impede growth and exacerbate inflation.</p>

<p>The $350 billion economy faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year, three times more than its central bank's foreign currency reserves.</p>


The IMF has approved an immediate disbursal of the final tranche of $1.1 billion to Pakistan as part of a bailout package, emphasising that the cash-strapped country needs to take tough measures to bring its economy back on track.

The IMF has approved an immediate disbursal of the final tranche of $1.1 billion to Pakistan as part of a bailout package, emphasising that the cash-strapped country needs to take tough measures to bring its economy back on track. The International Monetary Fund (IMF) Executive Board's decision on Monday came after the global lender completed the second and final review of Pakistan's economic reform programme supported by the IMF's Stand-By Arrangement (SBA). Also read: Pakistan's Foreign Minister Ishaq Dar appointed as deputy PM With this development, the disbursements under the SBA reached around $3 billion. All board members favoured the release of the last installment. India, however, abstained from voting. "Given the significant challenges ahead, Pakistan should capitalise on this hard-won stability, persevering -- beyond the current arrangement -- with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth," said IMF's Deputy Managing Director Antoinette Sayeh. Continued external support will also be critical, she said. "Achieving strong, long-term inclusive growth and creating jobs require accelerating structural reforms and continued protection of the most vulnerable through an adequately financed Benazir Income Support Programme," she added. She further stressed that advancing the reform of state-owned enterprises (SOEs) and ensuring that all SOEs fall under the new policy framework, strengthening governance and anti-corruption institutions, and continuing to build climate resilience was the priority. Also read: Damaged sea cables trigger major internet disruption in Pakistan The IMF official said Pakistan will receive the loan payment this week. Sayeh emphasised Pakistan needed to "adhere to a market-determined exchange rate to absorb external shocks and broaden structural reforms to support stronger and more inclusive growth". "Moreover, stronger action to address undercapitalised financial institutions and, more broadly, vigilance over the financial sector are needed to ensure financial stability," she said in a statement. The development came a day after Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva in Riyadh, Saudi Arabia. In his first meeting with the IMF chief since his re-election as premier, Sharif also discussed Pakistan's demand for another IMF programme as the country still needs the global lender's crutches to wobble on to get its economy back on track. An IMF team is expected to visit Pakistan in May to initiate talks for a new long-term Extended Fund Facility (EFF) ranging between $6 to $8 billion with the possibility of augmentation through climate financing. However, the exact size and time frame will only be determined after evolving consensus on the major contours of the next programme in May 2024. If secured, it would be Pakistan's 24th IMF bailout. Separately, former prime minister Shahid Khaqan Abbasi said all indicators of the economy were negative and the government's decision to seek another bailout from the IMF was an admission of their "failure", The Express Tribune newspaper reported. "Economic growth stalls and inflation rises due to such agreements with the IMF," he said, adding that the "IMF keeps you alive, but your economic condition deteriorates on every parameter." "Your industry cannot thrive if political issues remain unresolved, as everything is interconnected. Do not harbour the illusion that things will improve spontaneously," he cautioned. Also read: Pakistan inflation falls below interest rate for first time in 3 years Abbasi pointed out that IMF agreements impede growth and exacerbate inflation. The $350 billion economy faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year, three times more than its central bank's foreign currency reserves.

IMF approves immediate disbursal of $1.1 billion loan tranche to Pakistan

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">According to Bloomberg, Sharif's directive to fast-track talks for a new loan comes amid mounting financial challenges faced by Pakistan, including heavy external debt obligations and the need for immediate financial support.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">"Sharif's return as Prime Minister Increases Pakistan’s chances of securing a new IMF aid package," remarked Bloomberg Economics, highlighting the optimism surrounding Sharif's leadership and his administration's track record in implementing reforms. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">The urgency to secure fresh funds stems from Pakistan's looming external debt payments, which amount to $25 billion in the upcoming fiscal year, posing a burden on the nation's foreign exchange reserves.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">While Pakistan had initially planned to seek a new loan of at least $6 billion from the IMF, the final decision on the loan amount remains pending. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Sharif's administration is keen on securing financial assistance to navigate the country through its fiscal challenges and implement necessary reforms aligned with IMF targets.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Aisha Ghaus Pasha, a former junior finance minister and economist, <span style="mso-spacerun:yes">&nbsp;</span>said that securing aid would provide the country with essential fiscal space to undertake crucial reforms. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Pasha underscored the inevitability of tough reforms as part of any IMF program, highlighting the need for Pakistan to demonstrate a strong commitment to fiscal discipline and economic stability during negotiation.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Sharif has yet to appoint a new finance minister to lead the IMF negotiations.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Habib Bank Ltd President Muhammad Aurangzeb, considered a potential candidate for the finance minister post, attended a recent meeting chaired by Sharif to discuss the IMF talks, indicating ongoing deliberations within the government regarding key appointments.<o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Securing a new IMF aid package is not only crucial for Pakistan's economic stability but also for maintaining support from creditor nations such as Saudi Arabia and the United Arab Emirates. <o:p></o:p></span></p>

<p class="MsoNormal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">Additionally, a successful negotiation with the IMF could strengthen investor confidence in Pakistan's dollar bonds, potentially stabilising financial markets and fostering economic growth.<o:p></o:p></span></p>

<p class="MsoNormal"><i style="mso-bidi-font-style:normal"><span lang="EN-GB" style="mso-ansi-language:EN-GB">(With inputs from Bloomberg)<o:p></o:p></span></i></p>


Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April.

Pakistan's newly appointed Prime Minister, Shehbaz Sharif, has directed authorities to expedite negotiations with the International Monetary Fund (IMF) as the country's existing $3 billion bailout program approaches its conclusion in April. According to Bloomberg, Sharif's directive to fast-track talks for a new loan comes amid mounting financial challenges faced by Pakistan, including heavy external debt obligations and the need for immediate financial support. "Sharif's return as Prime Minister Increases Pakistan’s chances of securing a new IMF aid package," remarked Bloomberg Economics, highlighting the optimism surrounding Sharif's leadership and his administration's track record in implementing reforms. The urgency to secure fresh funds stems from Pakistan's looming external debt payments, which amount to $25 billion in the upcoming fiscal year, posing a burden on the nation's foreign exchange reserves. While Pakistan had initially planned to seek a new loan of at least $6 billion from the IMF, the final decision on the loan amount remains pending. Sharif's administration is keen on securing financial assistance to navigate the country through its fiscal challenges and implement necessary reforms aligned with IMF targets. Aisha Ghaus Pasha, a former junior finance minister and economist, said that securing aid would provide the country with essential fiscal space to undertake crucial reforms. Pasha underscored the inevitability of tough reforms as part of any IMF program, highlighting the need for Pakistan to demonstrate a strong commitment to fiscal discipline and economic stability during negotiation. Sharif has yet to appoint a new finance minister to lead the IMF negotiations. Habib Bank Ltd President Muhammad Aurangzeb, considered a potential candidate for the finance minister post, attended a recent meeting chaired by Sharif to discuss the IMF talks, indicating ongoing deliberations within the government regarding key appointments. Securing a new IMF aid package is not only crucial for Pakistan's economic stability but also for maintaining support from creditor nations such as Saudi Arabia and the United Arab Emirates. Additionally, a successful negotiation with the IMF could strengthen investor confidence in Pakistan's dollar bonds, potentially stabilising financial markets and fostering economic growth. (With inputs from Bloomberg)

Pakistan's prime minister initiates talks with IMF for crucial loan renewal

Pakistan's debt crisis is looming high as the latest IMF package will be running out in a month. The elections that were held last week in the South Asian nation gave a grey picture of the political stability aspect. One of the biggest challenges of the newcomer government will be settling the debt crisis which has blown out of proportion. Watch in for more details!

Pakistan: Economic headache for new government

Despite the political theatrics that have been unfolding in Pakistan, we focus on the severe financial setbacks plaguing the economy. Watch in for more details!

Pakistan among worst-hit economies post pandemic

<p>The Pakistani government is seeking a rollover of a $2 billion loan from China, as the term for safe deposit is expiring next month. According to a report by ARY News on Friday (Jan 26), caretaker Prime Minister Anwaar-ul-Haq Kakar wrote to Beijing, requesting for the loan. Citing sources, the report said that Pakistan formally requested China to roll over its loan, which is expiring on March 23, on the same terms and conditions.</p>

<p>The sources said that Pakistan’s finance ministry is in contact with the Chinese officials for a timely loan rollover. PM Kakar's letter also appreciated Beijing's assistance to Islamabad in&nbsp;easing&nbsp;the burden of foreign payments.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-reopens-border-crossing-with-afghanistan-after-deadlock-over-visa-requirements-683062">Pakistan reopens border crossing with Afghanistan after deadlock over visa requirements</a></strong></p>

<p>The loan from China comes days after the United Arab Emirates (UAE) rolled over $2 billion for one year to Pakistan, ARY News reported.&nbsp;</p>

<p>Pakistan is going through an economic crisis and will hold its parliamentary election next month.&nbsp;</p>

<p>Last week, Reza Baqir, the former governor of the State Bank of Pakistan said that the International Monetary Fund (IMF) was facing tough choices on how to deal with Pakistan after the election and how to assess the country's debt situation.</p>

<p><strong>Also watch |&nbsp;Pakistan elections: Will Nawaz Sharif get clear majority?</strong></p>

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<p>In July 2023, Pakistan secured a $3 billion loan programme with the IMF in July that helped pull the country back from the brink of a sovereign debt default. However, the programme whihc is&nbsp;a nine-month standby arrangement is set to expire this spring.</p>

<p>Speaking to&nbsp;news agency Reuters on Jan 18, Baqir, head of sovereign advisory services at Alvarez &amp; Marsal, said, "The IMF will have to decide whether to pull the plug on Pakistan or not, and by that I mean it will have to decide about its assessment of debt sustainability."</p>

<p>"That's almost like having it both ways," Baqir said, adding, that investors would be watching whether the IMF would continue to label the debt as sustainable or whether it would offer its support on a debt restructuring as part of a new programme should Pakistan's authorities chose to go down that route.</p>

<p>Pakistan would also be a potential candidate for a "debt-for-nature"-style debt swap, he added pointing to the deadly 2022 floods.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>


The Pakistani government is seeking a rollover of a $2 billion loan from China, as the term for safe deposit is expiring next month. According to a report by ARY News on Friday (Jan 26), caretaker Prime Minister Anwaar-ul-Haq Kakar wrote to Beijing, requesting for the loan.

The Pakistani government is seeking a rollover of a $2 billion loan from China, as the term for safe deposit is expiring next month. According to a report by ARY News on Friday (Jan 26), caretaker Prime Minister Anwaar-ul-Haq Kakar wrote to Beijing, requesting for the loan. Citing sources, the report said that Pakistan formally requested China to roll over its loan, which is expiring on March 23, on the same terms and conditions. The sources said that Pakistan’s finance ministry is in contact with the Chinese officials for a timely loan rollover. PM Kakar's letter also appreciated Beijing's assistance to Islamabad in easing the burden of foreign payments. Also read | Pakistan reopens border crossing with Afghanistan after deadlock over visa requirements The loan from China comes days after the United Arab Emirates (UAE) rolled over $2 billion for one year to Pakistan, ARY News reported. Pakistan is going through an economic crisis and will hold its parliamentary election next month. Last week, Reza Baqir, the former governor of the State Bank of Pakistan said that the International Monetary Fund (IMF) was facing tough choices on how to deal with Pakistan after the election and how to assess the country's debt situation. Also watch | Pakistan elections: Will Nawaz Sharif get clear majority? × In July 2023, Pakistan secured a $3 billion loan programme with the IMF in July that helped pull the country back from the brink of a sovereign debt default. However, the programme whihc is a nine-month standby arrangement is set to expire this spring. Speaking to news agency Reuters on Jan 18, Baqir, head of sovereign advisory services at Alvarez & Marsal, said, "The IMF will have to decide whether to pull the plug on Pakistan or not, and by that I mean it will have to decide about its assessment of debt sustainability." "That's almost like having it both ways," Baqir said, adding, that investors would be watching whether the IMF would continue to label the debt as sustainable or whether it would offer its support on a debt restructuring as part of a new programme should Pakistan's authorities chose to go down that route. Pakistan would also be a potential candidate for a "debt-for-nature"-style debt swap, he added pointing to the deadly 2022 floods. (With inputs from agencies)

Pakistan seeks rollover of $2 billion loan from China: Report

The year gone by saw massive uptick in terrorist attacks in Pakistan. Apart from targeting civilians, many security personnel came under heavy attack. Attacks by militant groups in Pakistan have been on the rise, after the hardline Islamist militant group Tehrik-i-Taliban Pakistan (TTP) withdrew from a ceasefire last year. But why have attacks on security forces increased and why the Pakistani government and the military failed to handle these attacks? According to the Pakistan Institute for Conflict and Security Studies , an Islamabad-based research organisation. The first 11 months of the year witnessed 664 attacks an increase of 67 percent from 2022. Here's more

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On Tuesday, PML-N supremo Nawaz Sharif cleared yet another legal hurdle ahead of the Feb 8 general election after the Islamabad High Court (IHC) acquitted him in the Al-Azizia reference. The Al-Azizia case was one of the two graft references that Nawaz was convicted in. He was acquitted in the Avenfield reference on Nov 29 by the same bench.

We shot ourselves in our own foot', Nawaz Sharif on Pakistan's economy

Western diplomats and the UN have criticized Pakistan's move to charge hundreds of dollars in exit fees to each Afghan refugee who left the Taliban's persecution, calling it "shocking and frustrating."

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Pakistan citizens are facing difficulty securing new passports, because of the scarcity of lamination paper in the country. The delays in securing passports add to the woes of citizens wanting to travel abroad for study, work or leisure.

Gravitas: Pakistan's Massive Passports Backlog as It Runs Out of Lamination Paper

A controversial revelation has emerged in the 'cypher' case which reportedly led to now jailing of Imran Khan's ouster as prime minister. This has raised several questions including the timing of the revelation. A report by a US-based news publication, the intercept, is substantiating some of Imran Khan's claims the report says the US. Was secretly pressurising the Pakistan government to remove Khan from his position over his neutrality on the Russian invasion of Ukraine. This is according to a classified Pakistani government document

Did US compromise Pakistan's democracy?

<p>Even as Pakistan is mired in an economic crisis&nbsp;and struggles to stay afloat, its President Dr Arif Alvi has sought a massive increase in his monthly salary. In fact, not one, the president has sought two raises, first with effect from 1st July 2021 and the second with effect from 1st July 2023.</p>

<p>As of today, the president is entitled to have a monthly salary of $2800 (Pakistan Rupees 846,550). Dr Alvi wants it raised to $3360 (Rs 1,024,325) and $4034 (Rs 1,229,190) per month with effect from July 2021 and July 2023 respectively.</p>

<p>The President’s Secretariat earlier this month wrote a letter to the Secretary Cabinet through his Military Secretariat, demanding that desired amendments must be implemented. He sought an amendment in the Fourth Schedule of the President’s Salary Allowances and Privileges (Amendment) Act, 2018.</p>

<h2><strong>The presidency cites hike in salary of chief justice</strong></h2>

<p>The letter justified the president’s demand by highlighting how the salary of the Chief Justice of Pakistan was also increased twice during the said period.</p>

<p><strong>Watch:&nbsp;Gravitas: Will Pakistan's interim PM's tenure be extended?</strong></p>

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<p>The presidency wrote, “It is highlighted that the salary of the Chief Justice of Pakistan being a holder of Public Office was increased twice in the last 2 years through Presidential Orders. Pay of Chief Justice of Pakistan was fixed @ Rs1,024,324/ per month w.e.f 01 July 2021 and subsequently @ Rs 1,229,189/ per month w.e.f. 01 July 2023. Salary of the President was not enhanced in relation to the laid down principle of one rupee higher than the salary of any holder of public office i.e. Chief Justice of Pakistan.”</p>

<h2><strong>Law ministry approves</strong></h2>

<p>Upon receiving the request, the Secretary Cabinet forwarded the matter to the law ministry of Pakistan, which on August 18 advised the former to register the case and process a salary hike.&nbsp;</p>

<p><a href="https://www.wionews.com/trending/watch-lioness-on-loose-in-pakistan-streets-causes-panic-630329"><strong>Also read:&nbsp;Watch: Lioness on loose in Pakistan streets causes panic</strong></a></p>

<p>The law ministry in a statement said, “The Federal Government by virtue of section 3(2) of the same Act has the power to amend that Schedule by way of a notification in the official gazette henceforth in relation to the issue at hand the Federal Government is competent to amend the Fourth Schedule by way of gazette notification and no amendment in the Fourth Schedule is required via an amending Act to effectuate a revision in the salary of the President.”</p>

<h2><strong>What next?</strong></h2>

<p>The finance ministry also examined the matter and, on August 22, endorsed the suggested salary raise for the president. This adjustment involves amending the Fourth Schedule of the President (Salary, Allowances &amp; Privileges) Act, 1975.</p>

<p>The next step involves presenting this matter to the cabinet for approval. Along with the proposed increases, the president is anticipated to receive substantial arrears due to two-step raises being applicable from July 2021 and July 2023 respectively.<br />
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Even as Pakistan is mired in an economic crisis and struggles to stay afloat, its President Dr Arif Alvi has sought a massive increase in his monthly salary. In fact, not one, the president has sought two raises, first with effect from 1st July 2021 and the second with effect from 1st July 2023.

Even as Pakistan is mired in an economic crisis and struggles to stay afloat, its President Dr Arif Alvi has sought a massive increase in his monthly salary. In fact, not one, the president has sought two raises, first with effect from 1st July 2021 and the second with effect from 1st July 2023. As of today, the president is entitled to have a monthly salary of $2800 (Pakistan Rupees 846,550). Dr Alvi wants it raised to $3360 (Rs 1,024,325) and $4034 (Rs 1,229,190) per month with effect from July 2021 and July 2023 respectively. The President’s Secretariat earlier this month wrote a letter to the Secretary Cabinet through his Military Secretariat, demanding that desired amendments must be implemented. He sought an amendment in the Fourth Schedule of the President’s Salary Allowances and Privileges (Amendment) Act, 2018. The presidency cites hike in salary of chief justice The letter justified the president’s demand by highlighting how the salary of the Chief Justice of Pakistan was also increased twice during the said period. Watch: Gravitas: Will Pakistan's interim PM's tenure be extended? × The presidency wrote, “It is highlighted that the salary of the Chief Justice of Pakistan being a holder of Public Office was increased twice in the last 2 years through Presidential Orders. Pay of Chief Justice of Pakistan was fixed @ Rs1,024,324/ per month w.e.f 01 July 2021 and subsequently @ Rs 1,229,189/ per month w.e.f. 01 July 2023. Salary of the President was not enhanced in relation to the laid down principle of one rupee higher than the salary of any holder of public office i.e. Chief Justice of Pakistan.” Law ministry approves Upon receiving the request, the Secretary Cabinet forwarded the matter to the law ministry of Pakistan, which on August 18 advised the former to register the case and process a salary hike. Also read: Watch: Lioness on loose in Pakistan streets causes panic The law ministry in a statement said, “The Federal Government by virtue of section 3(2) of the same Act has the power to amend that Schedule by way of a notification in the official gazette henceforth in relation to the issue at hand the Federal Government is competent to amend the Fourth Schedule by way of gazette notification and no amendment in the Fourth Schedule is required via an amending Act to effectuate a revision in the salary of the President.” What next? The finance ministry also examined the matter and, on August 22, endorsed the suggested salary raise for the president. This adjustment involves amending the Fourth Schedule of the President (Salary, Allowances & Privileges) Act, 1975. The next step involves presenting this matter to the cabinet for approval. Along with the proposed increases, the president is anticipated to receive substantial arrears due to two-step raises being applicable from July 2021 and July 2023 respectively. WATCH WION LIVE HERE ×

From $2800 to $4000: President of cash-strapped Pakistan demands massive hike in monthly salary

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