Pakistan's state minister for trade, finance and Commerce Hammad Azhar presented the country's first Federal Budget for the coming fiscal year. The estimated outlay for the 2019-20 fiscal year is six trillion Pakistani rupees.

The budget presentation comes a day after Prime Minister Imran Khan warned of legal action against those who do not declare their undisclosed assets by June 30, as the cash-strapped government ramps up efforts to fix the country's economy.

The austerity-oriented budget, approved by the cabinet, has proposed a 10 per cent cut in ministers' salaries and a subsidy worth 40 billion Pakistani rupees (US $2.6 million) on gas and electricity. However, the salaries of government employees and the pension of retired ones will get a 10 per cent hike.&nbsp;

The defence allocation was Pakistani rupees 1150 billion (US $7.5 million). It was claimed that defence allocation would remain the same as last year, however, the budget document indicates there has been a slight increase. Clarity on this is yet to be done by the Pakistani government. 
&nbsp; 
Azhar, while presenting the budget, said that Pakistan's trade deficit has been reduced by US $4 billion and now stands at US $22 billion.

In May, the Pakistan Tehreek-e-Insaf government had announced its first tax amnesty scheme "Asset Declaration Scheme" for whitening of undisclosed expenditures, sales and assets, including foreign assets, at nominal tax rates.

Pakistan recently reached a preliminary agreement with the IMF for a $6 billion bailout.

Pakistan's state minister for trade, finance and Commerce Hammad Azhar presented the country's first Federal Budget for the coming fiscal year. The estimated outlay for the 2019-20 fiscal year is six trillion Pakistani rupees.

Pakistan's state minister for trade, finance and Commerce Hammad Azhar presented the country's first Federal Budget for the coming fiscal year. The estimated outlay for the 2019-20 fiscal year is six trillion Pakistani rupees. The budget presentation comes a day after Prime Minister Imran Khan warned of legal action against those who do not declare their undisclosed assets by June 30, as the cash-strapped government ramps up efforts to fix the country's economy. The austerity-oriented budget, approved by the cabinet, has proposed a 10 per cent cut in ministers' salaries and a subsidy worth 40 billion Pakistani rupees (US $2.6 million) on gas and electricity. However, the salaries of government employees and the pension of retired ones will get a 10 per cent hike. The defence allocation was Pakistani rupees 1150 billion (US $7.5 million). It was claimed that defence allocation would remain the same as last year, however, the budget document indicates there has been a slight increase. Clarity on this is yet to be done by the Pakistani government. Azhar, while presenting the budget, said that Pakistan's trade deficit has been reduced by US $4 billion and now stands at US $22 billion. In May, the Pakistan Tehreek-e-Insaf government had announced its first tax amnesty scheme "Asset Declaration Scheme" for whitening of undisclosed expenditures, sales and assets, including foreign assets, at nominal tax rates. Pakistan recently reached a preliminary agreement with the IMF for a $6 billion bailout.

Pakistan commerce minister presents austerity oriented budget; 10% cut in ministers' salaries

Pakistan's economy grew at an average rate of 3.29 per cent in the fiscal year 2018-19 against an ambitious target of 6.2 per cent set in last year's budget, the Pakistan Economic Survey revealed on Monday.

The government unveiled the Economic Survey 2018-19 -- a report card displaying all economic indicators and how the Imran Khan government performed in its first year in power.&nbsp;

Advisor on Finance Abdul Hafeez Shaikh who unveiled the Economic Survey at a press conference ahead of the announcement of budget on June 11, said burgeoning debt has become a major burden for Pakistan's economy.

"The previous governments took Rs 31,000 billion loans in the last 10 years,"&nbsp;he said.

"Now we have to pay Rs 3,000 billion as interest on those loans."

He said the country had also accumulated around $100 billion external loans which included $9.2 billion in the tenure of the current government that came to power in August last year.

The advisor admitted that new loans were being used to pay off old debt.

He said the government this year spent Rs 2.3 trillion beyond its revenues by printing new currency which created inflation.

"If you spend trillions beyond your income, you will need to borrow, print money and increase prices. These all lead to increased inflation,"&nbsp;he said.

He said the national entities like Pakistan Steel Mills, Pakistan International Airlines, Pakistan Railways and others were running into losses and governed had to spend Rs 1,300 billion to keep them operational which put a lot of pressure on the economy.

Shaikh said that stability of economy was a first priority which would be done by generating more resources and austerity.

"I don't want to create panic by giving the correct picture of the economy,"&nbsp;he said, adding more details will be presented in the budget speech. 
The survey showed that the government missed targets set for the outgoing fiscal including 6.2 per cent growth, as the economy grew by merely 3.29 per cent.

The agriculture sector grew by 0.85 per cent against a target of 3.8 per cent. The industrial sector grew by 1.4 per cent against the target of 7.6 and the manufacturing sector was down by 0.3 per cent.

The large scale manufacturing showed a negative growth of 2 per cent against the target 8.1 while the service sector grew by 4.7 per cent against the target of 6.5.

The construction sector achieved a growth of 7.6 per cent against a target of 10 per cent.

The fiscal deficit was recorded at 5 per cent of the GDP compared to 4.3 in the corresponding period last fiscal.

However, Shaikh dismissed the dismal performance by saying the previous budget target was set by the government of Pakistan Muslim League-Nawaz and they were unrealistic.&nbsp;

Advisor on Commerce Razzak Dawood, who was with Shaikh, said that due to some difficult decision made by the government the trade deficit during current fiscal was reduced from $73.6 billion to $32 billion.&nbsp;

He said that de-industrialisation had stopped due to policies of the government. He said the new Free Trade Agreement (FTA) was also finalised with China which will help the industry.&nbsp;

Minister for Power Omar Ayub said that power generation improved due to better management. He said there was $80 billion investment opportunity in power generation and distribution sector.

Chairman Federal Bureau of Revenue (FBR) Shabbar Zaidi said that government was trying to increase the tax base. He urged that rich to pay taxes.&nbsp;

Pakistan's economy grew at an average rate of 3.29 per cent in the fiscal year 2018-19 against an ambitious target of 6.2 per cent set in last year's budget, the Pakistan Economic Survey revealed on Monday.

Pakistan's economy grew at an average rate of 3.29 per cent in the fiscal year 2018-19 against an ambitious target of 6.2 per cent set in last year's budget, the Pakistan Economic Survey revealed on Monday. The government unveiled the Economic Survey 2018-19 -- a report card displaying all economic indicators and how the Imran Khan government performed in its first year in power. Advisor on Finance Abdul Hafeez Shaikh who unveiled the Economic Survey at a press conference ahead of the announcement of budget on June 11, said burgeoning debt has become a major burden for Pakistan's economy. "The previous governments took Rs 31,000 billion loans in the last 10 years," he said. "Now we have to pay Rs 3,000 billion as interest on those loans." He said the country had also accumulated around $100 billion external loans which included $9.2 billion in the tenure of the current government that came to power in August last year. The advisor admitted that new loans were being used to pay off old debt. He said the government this year spent Rs 2.3 trillion beyond its revenues by printing new currency which created inflation. "If you spend trillions beyond your income, you will need to borrow, print money and increase prices. These all lead to increased inflation," he said. He said the national entities like Pakistan Steel Mills, Pakistan International Airlines, Pakistan Railways and others were running into losses and governed had to spend Rs 1,300 billion to keep them operational which put a lot of pressure on the economy. Shaikh said that stability of economy was a first priority which would be done by generating more resources and austerity. "I don't want to create panic by giving the correct picture of the economy," he said, adding more details will be presented in the budget speech. The survey showed that the government missed targets set for the outgoing fiscal including 6.2 per cent growth, as the economy grew by merely 3.29 per cent. The agriculture sector grew by 0.85 per cent against a target of 3.8 per cent. The industrial sector grew by 1.4 per cent against the target of 7.6 and the manufacturing sector was down by 0.3 per cent. The large scale manufacturing showed a negative growth of 2 per cent against the target 8.1 while the service sector grew by 4.7 per cent against the target of 6.5. The construction sector achieved a growth of 7.6 per cent against a target of 10 per cent. The fiscal deficit was recorded at 5 per cent of the GDP compared to 4.3 in the corresponding period last fiscal. However, Shaikh dismissed the dismal performance by saying the previous budget target was set by the government of Pakistan Muslim League-Nawaz and they were unrealistic. Advisor on Commerce Razzak Dawood, who was with Shaikh, said that due to some difficult decision made by the government the trade deficit during current fiscal was reduced from $73.6 billion to $32 billion. He said that de-industrialisation had stopped due to policies of the government. He said the new Free Trade Agreement (FTA) was also finalised with China which will help the industry. Minister for Power Omar Ayub said that power generation improved due to better management. He said there was $80 billion investment opportunity in power generation and distribution sector. Chairman Federal Bureau of Revenue (FBR) Shabbar Zaidi said that government was trying to increase the tax base. He urged that rich to pay taxes.

Pakistan's economic growth falls to 3.29 per cent in FY19

<a href="https://www.wionews.com/south-asia/pakistan-stocks-crash-as-pm-imran-receives-insufficient-imf-bailout-218461">Pakistan Prime Minister Imran Khan</a> on Monday warned of legal action against those who do not declare their undisclosed assets by June 30, as the cash-strapped government ramps up efforts to fix the country's economy.

Addressing the nation ahead of the federal budget for the fiscal year 2019-20 to be announced Tuesday, Khan said, "We will need to change ourselves if we want to become a great country."&nbsp;

"I am appealing to all of you to take part in the Asset Declaration Scheme that we have brought because if we don't pay taxes, we will not be able to raise our country up," Khan said.

The premier said that people have until June 30 to declare their benami assets, benami bank accounts and money that was kept abroad.

Benami is a term used for a transaction, contract, or property that is made or held under a name that is fictitious or is that of a third party who holds as the ostensible owner for the principal or beneficial owner.

"After June 30, you will not get this opportunity," he said. "Our agencies have information about who has benami accounts and benami properties," the premier said.

"This was never available to us before therefore take advantage of this scheme. Give Pakistan the benefit.&nbsp;

Fix your children's future. Give us, the chance that we get this country to stand on its own two feet and take people out of poverty," he said.&nbsp;

"My Pakistanis, in the past ten years <a href="https://www.wionews.com/south-asia/our-debt-has-gone-up-to-205-billion-in-the-last-decade-pakistan-pm-imran-khan-in-national-address-225840">Pakistan's debt</a> went from Rs 6,000 billion to Rs 30,000 billion," he said.

Khan said that the damage that this had caused to the country was that the annual tax collected was approximately Rs 4,000 billion, half of which went towards repaying loans "they" had taken.

"This country cannot cover its expenses on the money that is left behind," he added.

Pakistan recently reached a preliminary agreement with the IMF for a $6 billion bailout.&nbsp;

"Pakistan is the country that unfortunately gives the least tax in the world but is among the few countries that give the most charity."

"This is the country that has [the] capability and if passion comes in, we can at the very least gather Rs10,000 billion every year," the premier said.

In May, the Pakistan Tehreek-e-Insaf government had announced its first tax amnesty scheme "Asset Declaration Scheme"&nbsp;for whitening of undisclosed expenditures, sales and assets, including foreign assets, at nominal tax rates.

The scheme came into effect through a presidential ordinance, which will offer a period of 45 days to people for declaration of their undeclared assets, expenditures, and sales along with payment of taxes until June 30 this year.

The scheme, approved by the federal Cabinet during a meeting presided over by the premier, has five main pillars, scope, default surcharge, exclusions, tax rates and conditions.

Unlike the past schemes, no revenue realisation projection was made on the plea that it is meant for allowing the grey economy's inclusion in the tax net, Dawn newspaper said.

The government plans to present an austerity-oriented budget with no increase in the salaries of army officials of higher ranks.&nbsp;

This is the second time that the premier has appealed to the people to declare their benami assets and bank accounts under the government's Assets Declaration Scheme by June 30.

Pakistan Prime Minister Imran Khan on Monday warned of legal action against those who do not declare their undisclosed assets by June 30, as the cash-strapped government ramps up efforts to fix the country's economy.

Pakistan Prime Minister Imran Khan on Monday warned of legal action against those who do not declare their undisclosed assets by June 30, as the cash-strapped government ramps up efforts to fix the country's economy. Addressing the nation ahead of the federal budget for the fiscal year 2019-20 to be announced Tuesday, Khan said, "We will need to change ourselves if we want to become a great country." "I am appealing to all of you to take part in the Asset Declaration Scheme that we have brought because if we don't pay taxes, we will not be able to raise our country up," Khan said. The premier said that people have until June 30 to declare their benami assets, benami bank accounts and money that was kept abroad. Benami is a term used for a transaction, contract, or property that is made or held under a name that is fictitious or is that of a third party who holds as the ostensible owner for the principal or beneficial owner. "After June 30, you will not get this opportunity," he said. "Our agencies have information about who has benami accounts and benami properties," the premier said. "This was never available to us before therefore take advantage of this scheme. Give Pakistan the benefit. Fix your children's future. Give us, the chance that we get this country to stand on its own two feet and take people out of poverty," he said. "My Pakistanis, in the past ten years Pakistan's debt went from Rs 6,000 billion to Rs 30,000 billion," he said. Khan said that the damage that this had caused to the country was that the annual tax collected was approximately Rs 4,000 billion, half of which went towards repaying loans "they" had taken. "This country cannot cover its expenses on the money that is left behind," he added. Pakistan recently reached a preliminary agreement with the IMF for a $6 billion bailout. "Pakistan is the country that unfortunately gives the least tax in the world but is among the few countries that give the most charity." "This is the country that has [the] capability and if passion comes in, we can at the very least gather Rs10,000 billion every year," the premier said. In May, the Pakistan Tehreek-e-Insaf government had announced its first tax amnesty scheme "Asset Declaration Scheme" for whitening of undisclosed expenditures, sales and assets, including foreign assets, at nominal tax rates. The scheme came into effect through a presidential ordinance, which will offer a period of 45 days to people for declaration of their undeclared assets, expenditures, and sales along with payment of taxes until June 30 this year. The scheme, approved by the federal Cabinet during a meeting presided over by the premier, has five main pillars, scope, default surcharge, exclusions, tax rates and conditions. Unlike the past schemes, no revenue realisation projection was made on the plea that it is meant for allowing the grey economy's inclusion in the tax net, Dawn newspaper said. The government plans to present an austerity-oriented budget with no increase in the salaries of army officials of higher ranks. This is the second time that the premier has appealed to the people to declare their benami assets and bank accounts under the government's Assets Declaration Scheme by June 30.

Pakistan Prime Minister Imran Khan asks citizens to declare undisclosed assets by June 30

Pakistan's Finance Ministry expects economic growth in the financial year ending in June to hit 3.3%, well below a target of 6.2% set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters.

The document also sets a target of 4% growth for the 2020 financial year, underlining the economic headwinds facing the government of Prime Minister Imran Khan.

The targets are due to be published officially on Monday ahead of the budget on June 11, which is expected to include tough austerity measures following a provisional bailout agreement with the International Monetary Fund.

Khan`s government came to power in August facing a yawning budget deficit expected at around 7% of gross domestic product as well as a balance of payments crisis, with foreign exchange reserves that cover less than three months of imports.

It has promised reforms to stimulate exports, cut the deficit and overhaul the power sector, and has pushed ahead with an ambitious infrastructure development project with China. But Pakistani households have struggled, with inflation running at more than 9%.

Key sectors in Pakistan's economy are all performing below the levels foreseen in last year's budget, which was passed under the previous government of Shahid Khaqan Abbasi.

Agriculture is seen growing just 0.8% compared with a 3.8% target, industrial output is set to rise 1.4% against a 7.6% target and services are forecast to grow 4.7%, compared with a target of 6.5%.

Pakistan's Finance Ministry expects economic growth in the financial year ending in June to hit 3.3%, well below a target of 6.2% set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters.

Pakistan's Finance Ministry expects economic growth in the financial year ending in June to hit 3.3%, well below a target of 6.2% set last year, with key sectors all performing worse than expected, according to a planning document seen by Reuters. The document also sets a target of 4% growth for the 2020 financial year, underlining the economic headwinds facing the government of Prime Minister Imran Khan. The targets are due to be published officially on Monday ahead of the budget on June 11, which is expected to include tough austerity measures following a provisional bailout agreement with the International Monetary Fund. Khan`s government came to power in August facing a yawning budget deficit expected at around 7% of gross domestic product as well as a balance of payments crisis, with foreign exchange reserves that cover less than three months of imports. It has promised reforms to stimulate exports, cut the deficit and overhaul the power sector, and has pushed ahead with an ambitious infrastructure development project with China. But Pakistani households have struggled, with inflation running at more than 9%. Key sectors in Pakistan's economy are all performing below the levels foreseen in last year's budget, which was passed under the previous government of Shahid Khaqan Abbasi. Agriculture is seen growing just 0.8% compared with a 3.8% target, industrial output is set to rise 1.4% against a 7.6% target and services are forecast to grow 4.7%, compared with a target of 6.5%.

Pakistan sees 2019 GDP growth at 3.3%, sharply below target

Pakistan PM Imran Khan announced today that the country's military has decided on "unprecedented voluntary initiative of stringent cuts in its defence expenditures" due to the critical financial situation prevailing in the country.

"Despite multiple security challenges. My government will spend this money saved on development of merged tribal areas and Balochistan," the Pakistan prime minister said on Twitter.

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<blockquote class="twitter-tweet">
I appreciate Pak Mil's unprecedented voluntary initiative of stringent cuts in their defence expenditures for next FY bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas &amp; Balochistan.
— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1135971466552512520?ref_src=twsrc%5Etfw">June 4, 2019</a></blockquote>
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Major General Asif Ghafoor head of Pakistan's Inter-Services Public Relations(ISPR), the military's media wing, added&nbsp;that voluntary cut in the defence budget for a year wouldn't be at the cost of defence and security.&nbsp;

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<blockquote class="twitter-tweet">
Voluntary cut in def budget for a year will not be at the cost of def &amp; security. We shall maint effective response potential to all threats.Three services will manage impact of the cut through appropriate internal measures. It was imp to participate in dev of tribal areas &amp; Bln.
— Maj Gen Asif Ghafoor (@OfficialDGISPR) <a href="https://twitter.com/OfficialDGISPR/status/1136003059476324353?ref_src=twsrc%5Etfw">June 4, 2019</a></blockquote>
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"We shall maintain effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It is important to participate in the development of tribal areas and Balochistan," Ghafoor said.

However, the move was criticised by Opposition PML(N) leader Maryam Nawaz Sharif who said PM Imran Khan's announcement was "nothing but an admission of your incompetence and sheer ineptitude."

Last month the International Monetary Fund(IMF) had agreed on a $6 billion bailout for Pakistan's beleaguered economy. The IMF had stated that&nbsp;"priority" areas included improving the management of public enterprises, strengthening institutions and "continuing anti-money laundering and combating the financing of terrorism efforts".

Pakistan has had 21 bailouts since it joined the IMF in 1950. It's most recent loan was issued in 2013, worth $6.6 billion.

Post the bailout, the Pakistan currency had hit an all-time low as the rupee slipped over 3 per cent last month.

Pakistan is battling being blacklisted by Financial Action Task Force (FATF) due to inaction on terror financing. The Pakistan economy for the past two years has been fighting a deep balance-of-payments crisis hit by low growth, soaring inflation&nbsp;and mounting debt.

In recent months, Pakistan prime minister Imran Khan has travelled to China, Saudi Arabia and Malaysia in an attempt to request financial aid, although he has been promised substantial aid but it still hasn't been enough to tide over the crisis.

Pakistan PM Imran Khan announced today that the country's military has decided on "unprecedented voluntary initiative of stringent cuts in its defence expenditures" due to the critical financial situation prevailing in the country.

Pakistan PM Imran Khan announced today that the country's military has decided on "unprecedented voluntary initiative of stringent cuts in its defence expenditures" due to the critical financial situation prevailing in the country. "Despite multiple security challenges. My government will spend this money saved on development of merged tribal areas and Balochistan," the Pakistan prime minister said on Twitter. I appreciate Pak Mil's unprecedented voluntary initiative of stringent cuts in their defence expenditures for next FY bec of our critical financial situation, despite multiple security challenges. My govt will spend this money saved on dev of merged tribal areas & Balochistan. — Imran Khan (@ImranKhanPTI) June 4, 2019 × Major General Asif Ghafoor head of Pakistan's Inter-Services Public Relations(ISPR), the military's media wing, added that voluntary cut in the defence budget for a year wouldn't be at the cost of defence and security. Voluntary cut in def budget for a year will not be at the cost of def & security. We shall maint effective response potential to all threats.Three services will manage impact of the cut through appropriate internal measures. It was imp to participate in dev of tribal areas & Bln. — Maj Gen Asif Ghafoor (@OfficialDGISPR) June 4, 2019 × "We shall maintain effective response potential to all threats. Three services will manage the impact of the cut through appropriate internal measures. It is important to participate in the development of tribal areas and Balochistan," Ghafoor said. However, the move was criticised by Opposition PML(N) leader Maryam Nawaz Sharif who said PM Imran Khan's announcement was "nothing but an admission of your incompetence and sheer ineptitude." Last month the International Monetary Fund(IMF) had agreed on a $6 billion bailout for Pakistan's beleaguered economy. The IMF had stated that "priority" areas included improving the management of public enterprises, strengthening institutions and "continuing anti-money laundering and combating the financing of terrorism efforts". Pakistan has had 21 bailouts since it joined the IMF in 1950. It's most recent loan was issued in 2013, worth $6.6 billion. Post the bailout, the Pakistan currency had hit an all-time low as the rupee slipped over 3 per cent last month. Pakistan is battling being blacklisted by Financial Action Task Force (FATF) due to inaction on terror financing. The Pakistan economy for the past two years has been fighting a deep balance-of-payments crisis hit by low growth, soaring inflation and mounting debt. In recent months, Pakistan prime minister Imran Khan has travelled to China, Saudi Arabia and Malaysia in an attempt to request financial aid, although he has been promised substantial aid but it still hasn't been enough to tide over the crisis.

Pak PM Imran Khan announces military's 'voluntary cut' in defence expenditure amid financial crisis

Less than 10 months after coming to power in Pakistan with visions of creating a welfare system to lift millions out of poverty, the economic crisis has forced Prime Minister Imran Khan into the hard realities of an IMF bail-out.

In the days since last week's agreement in principle with the <a href="http://wionews.com/world/prevent-imf-bailout-to-pakistan-to-repay-chinese-debt-208726">International Monetary Fund for a $6 billion loan</a>, the rupee currency dropped 5 per cent against the dollar, and it has now lost a third of its value in the past year.

<a href="https://www.wionews.com/south-asia/pakistans-currency-reaches-all-time-low-against-us-dollar-219221">Financial crises</a> have shaken the world's sixth-largest nation repeatedly over the years, threatening the stability of a nuclear-armed state plagued by Islamist militancy, and while the IMF programme may help stabilise the economy, it will bring more hardship.

"It is coming with a lot of pain," Ashfaque Hasan Khan, an academic and a member of Khan's economic advisory council, commented on the likely impact.

Under the IMF's terms, the government is expected to let the rupee fall to help correct an unsustainable current account deficit and cut its debt while trying to expand the tax base in a country where only 1% of people file returns.

Just how committed the government is to make changes could become clearer on Saturday when newly appointed Finance Minister Abdul Hafeez Shaikh is due to unveil his plan for the economy.

Shaikh has to present a 2019/20 budget next month, having been told by the IMF that the primary budget deficit - excluding interest payments - should be cut to 0.6 per cent of GDP, implying a $5 billion reduction from the current projection for a deficit of 2.2 per cent.

The crisis has taken a toll on policymakers. Khan has also replaced the central bank governor, and this week the finance secretary and the head of Board of Investment left their posts.

Foreign currency reserves stand at around $8 billion, not enough to cover three months of imports, making Pakistan desperate for the IMF board to give its blessing for the release of the first tranche of the loan.

Warning of growing inflationary pressures that are already squeezing household budgets hard, the central bank has hiked its key interest rate by 150 basis points to 12.25 per cent even though the economy is slowing and millions of people are struggling to find work.

Khan's government had tried to avoid going to the IMF. Instead, it sought billions of dollars in loans from countries including Saudi Arabia, the United Arab Emirates and Pakistan's "all-weather friend" China.

But that money has not been enough, and analysts say the government will suffer for not reaching an agreement with the IMF more quickly.

"The cost of going into this program is far higher than if we had done it much earlier," said Mohammed Sohail, head of Topline Securities in Karachi. "It shattered confidence."

Foreign direct investment halved during the first 10 months of a fiscal year that began in July.

The $60 billion China Pakistan Economic Corridor, launched in 2015, had promised a new beginning, with infrastructure projects that could become a new foundation for growth, but it also required heavy imports of capital equipment, widening the trade deficit.

&nbsp;Fragile democracy&nbsp;&nbsp;

Once the IMF loan is finalised it should open the way for other funding agreements with other lenders.

While that will bring some relief, Yousuf Nazar, former head of emerging market equity investments at Citigroup and author of a book on Pakistan's economy, saw dangers ahead.

"The fallout could be a widespread social and political backlash that could cut short Imran Khan's tenure in the office," he said.

Opposition parties have threatened protests once the Muslim holy month of Ramadan ends in early June.

At least, unlike some other civilian leaders in Pakistan's fragile democracy, Khan appears to have good relations with the country's powerful generals.

But he's working with a budget where more than half of spending currently goes on the military and debt servicing costs.

Problems are deep-rooted. The tax system is weak, carried by customs and sales tax and a tiny minority of salaried employees and companies. In a population of 208 million, only 1.8 million file income tax returns.

Key industries with powerful lobbies including agriculture as well as an informal sector, estimated at anywhere between a third and 90% of the overall economy, are untouched and tax evasion is rampant.

Having widened to its highest in 11 years, the fiscal deficit is forecast by the IMF at more than 7% of GDP, and while data released this week showed the current account narrowing, the IMF has forecast it at 5.2% of GDP.

"The imbalances are out of hand and to fix those you have to take difficult actions," said former finance secretary Waqar Khan, who helped negotiate Pakistan's last IMF bailout in 2013-16.

Less than 10 months after coming to power in Pakistan with visions of creating a welfare system to lift millions out of poverty, the economic crisis has forced Prime Minister Imran Khan into the hard realities of an IMF bail-out.

Less than 10 months after coming to power in Pakistan with visions of creating a welfare system to lift millions out of poverty, the economic crisis has forced Prime Minister Imran Khan into the hard realities of an IMF bail-out. In the days since last week's agreement in principle with the International Monetary Fund for a $6 billion loan, the rupee currency dropped 5 per cent against the dollar, and it has now lost a third of its value in the past year. Financial crises have shaken the world's sixth-largest nation repeatedly over the years, threatening the stability of a nuclear-armed state plagued by Islamist militancy, and while the IMF programme may help stabilise the economy, it will bring more hardship. "It is coming with a lot of pain," Ashfaque Hasan Khan, an academic and a member of Khan's economic advisory council, commented on the likely impact. Under the IMF's terms, the government is expected to let the rupee fall to help correct an unsustainable current account deficit and cut its debt while trying to expand the tax base in a country where only 1% of people file returns. Just how committed the government is to make changes could become clearer on Saturday when newly appointed Finance Minister Abdul Hafeez Shaikh is due to unveil his plan for the economy. Shaikh has to present a 2019/20 budget next month, having been told by the IMF that the primary budget deficit - excluding interest payments - should be cut to 0.6 per cent of GDP, implying a $5 billion reduction from the current projection for a deficit of 2.2 per cent. The crisis has taken a toll on policymakers. Khan has also replaced the central bank governor, and this week the finance secretary and the head of Board of Investment left their posts. Foreign currency reserves stand at around $8 billion, not enough to cover three months of imports, making Pakistan desperate for the IMF board to give its blessing for the release of the first tranche of the loan. Warning of growing inflationary pressures that are already squeezing household budgets hard, the central bank has hiked its key interest rate by 150 basis points to 12.25 per cent even though the economy is slowing and millions of people are struggling to find work. Khan's government had tried to avoid going to the IMF. Instead, it sought billions of dollars in loans from countries including Saudi Arabia, the United Arab Emirates and Pakistan's "all-weather friend" China. But that money has not been enough, and analysts say the government will suffer for not reaching an agreement with the IMF more quickly. "The cost of going into this program is far higher than if we had done it much earlier," said Mohammed Sohail, head of Topline Securities in Karachi. "It shattered confidence." Foreign direct investment halved during the first 10 months of a fiscal year that began in July. The $60 billion China Pakistan Economic Corridor, launched in 2015, had promised a new beginning, with infrastructure projects that could become a new foundation for growth, but it also required heavy imports of capital equipment, widening the trade deficit. Fragile democracy Once the IMF loan is finalised it should open the way for other funding agreements with other lenders. While that will bring some relief, Yousuf Nazar, former head of emerging market equity investments at Citigroup and author of a book on Pakistan's economy, saw dangers ahead. "The fallout could be a widespread social and political backlash that could cut short Imran Khan's tenure in the office," he said. Opposition parties have threatened protests once the Muslim holy month of Ramadan ends in early June. At least, unlike some other civilian leaders in Pakistan's fragile democracy, Khan appears to have good relations with the country's powerful generals. But he's working with a budget where more than half of spending currently goes on the military and debt servicing costs. Problems are deep-rooted. The tax system is weak, carried by customs and sales tax and a tiny minority of salaried employees and companies. In a population of 208 million, only 1.8 million file income tax returns. Key industries with powerful lobbies including agriculture as well as an informal sector, estimated at anywhere between a third and 90% of the overall economy, are untouched and tax evasion is rampant. Having widened to its highest in 11 years, the fiscal deficit is forecast by the IMF at more than 7% of GDP, and while data released this week showed the current account narrowing, the IMF has forecast it at 5.2% of GDP. "The imbalances are out of hand and to fix those you have to take difficult actions," said former finance secretary Waqar Khan, who helped negotiate Pakistan's last IMF bailout in 2013-16.

Reality bites after IMF tells Pakistan to leave rupee to market forces

Pakistan`s central bank raised its key interest rate to 12.25% on Monday, warning that already soaring inflation risked further rises on the back of higher oil prices and reforms required for a bailout from the International Monetary Fund.

The 150 basis points increase follows a preliminary agreement last week with the IMF for a $6 billion loan that is expected to come with tough conditions, including raising more tax revenues and putting up gas and power prices. It was the eighth time the central bank has increased its main policy rate since the start of last year.

With economic growth set to slow to 2.9% this year from 5.2% last year, according to IMF forecasts, the rate rise adds to pressure on Prime Minister Imran Khan, who came to power last year facing a balance of payments crisis that has now forced his government to turn to the IMF.

Higher prices for basic essentials including food and energy has already stirred public anger but the central bank suggested there was little prospect of any immediate improvement.

Noting average headline inflation rose to 7% in the July-April period from 3.8 per cent a year earlier, the central bank said recent rises in domestic oil prices and the cost of food suggested that "inflationary pressures are likely to continue for some time".

It said it expected headline inflation to average between 6.5% and 7.5% for the financial year to the end of June and was expected to be "considerably higher" in the coming year. Expected tax measures in next month`s budget, as well as higher gas and power prices and volatility in international oil prices, could push inflation up further, it said.

It said the fiscal deficit, which the IMF expects to reach 7.2% of gross domestic product (GDP) this year, was likely to have been "considerably higher" during the July-March period than in the same period a year earlier due to shortfalls in revenue collection, higher interest payments and security costs.

Despite some improvements, financing the current account deficit remained "challenging" and foreign exchange reserves of $8.8 billion were below standard adequacy levels at less than the equivalent of three months of imports.

The central bank said it was watching foreign exchange markets closely and was prepared to take action to curb "unwarranted" volatility, after the sharp fall in the rupee over recent days that saw the currency touch a record low of 150 against the US dollar.

Details of what Pakistan will be required to do under the IMF agreement, which must still be approved by the Fund`s board, have not been announced but already opposition parties are planning protests.

As well as higher energy prices that will hit households hard, there are also expectations of new taxes and spending cuts in next month`s budget to reach a primary budget deficit - excluding interest payments - of 0.6% of GDP.

With the IMF forecasting a primary deficit of 2.2% for the coming financial year, that implies squeezing roughly $5 billion in extra revenues from Pakistan`s $315 billion economies, which has long suffered from problems raising tax revenue.

Pakistan`s central bank raised its key interest rate to 12.25% on Monday, warning that already soaring inflation risked further rises on the back of higher oil prices and reforms required for a bailout from the International Monetary Fund.

Pakistan`s central bank raised its key interest rate to 12.25% on Monday, warning that already soaring inflation risked further rises on the back of higher oil prices and reforms required for a bailout from the International Monetary Fund. The 150 basis points increase follows a preliminary agreement last week with the IMF for a $6 billion loan that is expected to come with tough conditions, including raising more tax revenues and putting up gas and power prices. It was the eighth time the central bank has increased its main policy rate since the start of last year. With economic growth set to slow to 2.9% this year from 5.2% last year, according to IMF forecasts, the rate rise adds to pressure on Prime Minister Imran Khan, who came to power last year facing a balance of payments crisis that has now forced his government to turn to the IMF. Higher prices for basic essentials including food and energy has already stirred public anger but the central bank suggested there was little prospect of any immediate improvement. Noting average headline inflation rose to 7% in the July-April period from 3.8 per cent a year earlier, the central bank said recent rises in domestic oil prices and the cost of food suggested that "inflationary pressures are likely to continue for some time". It said it expected headline inflation to average between 6.5% and 7.5% for the financial year to the end of June and was expected to be "considerably higher" in the coming year. Expected tax measures in next month`s budget, as well as higher gas and power prices and volatility in international oil prices, could push inflation up further, it said. It said the fiscal deficit, which the IMF expects to reach 7.2% of gross domestic product (GDP) this year, was likely to have been "considerably higher" during the July-March period than in the same period a year earlier due to shortfalls in revenue collection, higher interest payments and security costs. Despite some improvements, financing the current account deficit remained "challenging" and foreign exchange reserves of $8.8 billion were below standard adequacy levels at less than the equivalent of three months of imports. The central bank said it was watching foreign exchange markets closely and was prepared to take action to curb "unwarranted" volatility, after the sharp fall in the rupee over recent days that saw the currency touch a record low of 150 against the US dollar. Details of what Pakistan will be required to do under the IMF agreement, which must still be approved by the Fund`s board, have not been announced but already opposition parties are planning protests. As well as higher energy prices that will hit households hard, there are also expectations of new taxes and spending cuts in next month`s budget to reach a primary budget deficit - excluding interest payments - of 0.6% of GDP. With the IMF forecasting a primary deficit of 2.2% for the coming financial year, that implies squeezing roughly $5 billion in extra revenues from Pakistan`s $315 billion economies, which has long suffered from problems raising tax revenue.

Pakistani central bank lifts interest rate as inflation bites

Despite government's efforts, Paypal, a US-based online payment giant, will not be launching its services in the Pakistan, local media reported on Friday.&nbsp;

Pakistan's Ministry of Information Technology Secretary Maroof Afzal informed the Senate committee today that Paypal's internal working is such that "they are not ready to introduce its services", local media reported.

"Paypal did not decline because it has issues operating in Pakistan. Their internal working is such that they are not ready to introduce services in Pakistan," Dawn quoted Maroof Afzal as saying.

Also read:<a href="https://www.wionews.com/south-asia/pakistans-currency-reaches-all-time-low-against-us-dollar-219221"> Post IMF bailout, Pakistan's currency reaches all-time low against US dollar</a>

Pakistan's Senate Standing Committee on Information and Technology has been pushing the IT ministry to ask Paypal to launch its services in the country.

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In February, Pakistan's finance minister Asad Umar had said that talks to bring PayPal in the country are underway while rubbishing reports that the federal government was impeding the company's entry into the Pakistani market. He had claimed that it is actually "chasing" the company.

In November 2015, the IT Ministry had announced that it was set to invite PayPal and Chinese e-commerce giant Alibaba to offer their services in Pakistan. The move followed a decision by the global Financial Action Task Force to remove Pakistan from its list of high-risk and non-cooperative jurisdictions linked to money laundering.

(With inputs from agencies)

Despite government's efforts, Paypal, a US-based online payment giant, will not be launching its services in the Pakistan, local media reported on Friday. Pakistan's Ministry of Information Technology Secretary Maroof Afzal informed the Senate committee today that Paypal's internal working is such that "they are not ready to introduce its services", local media reported.

Despite government's efforts, Paypal, a US-based online payment giant, will not be launching its services in the Pakistan, local media reported on Friday. Pakistan's Ministry of Information Technology Secretary Maroof Afzal informed the Senate committee today that Paypal's internal working is such that "they are not ready to introduce its services", local media reported. "Paypal did not decline because it has issues operating in Pakistan. Their internal working is such that they are not ready to introduce services in Pakistan," Dawn quoted Maroof Afzal as saying. Also read: Post IMF bailout, Pakistan's currency reaches all-time low against US dollar Pakistan's Senate Standing Committee on Information and Technology has been pushing the IT ministry to ask Paypal to launch its services in the country. × In February, Pakistan's finance minister Asad Umar had said that talks to bring PayPal in the country are underway while rubbishing reports that the federal government was impeding the company's entry into the Pakistani market. He had claimed that it is actually "chasing" the company. In November 2015, the IT Ministry had announced that it was set to invite PayPal and Chinese e-commerce giant Alibaba to offer their services in Pakistan. The move followed a decision by the global Financial Action Task Force to remove Pakistan from its list of high-risk and non-cooperative jurisdictions linked to money laundering. (With inputs from agencies)

Paypal not ready to introduce services in Pakistan: Secretary of Information Technology ministry

Pakistan's currency plunged to a new all-time low against the US dollar on Thursday after the government last week reached a <a href="https://www.wionews.com/south-asia/imf-agrees-to-6-billion-bailout-for-pakistan-but-wants-action-on-terror-funding-218179">preliminary agreement with the International Monetary Fund</a> for $6 billion bailout.

The Pakistani rupee slipped 3.1 per cent to 147 rupees a dollar on Thursday morning in&nbsp;another all-time low for the second consecutive day.

The rupee was trading&nbsp;at 141.5 on Wednesday, prompting country's Prime Minister Imran Khan to set up a committee to control the devaluation of the local currency.

According to a report by local media, there is speculation that it may slide further.

Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington.

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For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, <a href="https://www.wionews.com/south-asia/pakistan-stocks-crash-as-pm-imran-receives-insufficient-imf-bailout-218461">soaring inflation</a>, and mounting debt.

Discontent is already growing over measures the government has taken in the last year to fend off the crisis, including devaluing the rupee by some 30 percent since January 2018, sending inflation to five-year highs.

Analysts had warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Imran Khan's promise to build an Islamic welfare state, as the country is forced to tighten its purse strings.

Pakistan has had 21 bailouts since it joined the IMF in 1950. Its most recent loan was issued in 2013, worth $6.6 billion.

(With inputs from agencies)

Pakistan's currency plunged to a new all-time low against the US dollar on Thursday after the government last week reached a preliminary agreement with the International Monetary Fund for $6 billion bailout.

Pakistan's currency plunged to a new all-time low against the US dollar on Thursday after the government last week reached a preliminary agreement with the International Monetary Fund for $6 billion bailout. The Pakistani rupee slipped 3.1 per cent to 147 rupees a dollar on Thursday morning in another all-time low for the second consecutive day. The rupee was trading at 141.5 on Wednesday, prompting country's Prime Minister Imran Khan to set up a committee to control the devaluation of the local currency. According to a report by local media, there is speculation that it may slide further. Pakistan and the IMF on Sunday had reached a new agreement securing a $6 billion bailout for the cash-strapped country, following months of painstaking negotiations between the two sides. The deal still needs approval from the IMF board in Washington. × For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis while its economy teeters due to low growth, soaring inflation, and mounting debt. Discontent is already growing over measures the government has taken in the last year to fend off the crisis, including devaluing the rupee by some 30 percent since January 2018, sending inflation to five-year highs. Analysts had warned that any fresh IMF deal would likely come with myriad restrictions that could hobble Imran Khan's promise to build an Islamic welfare state, as the country is forced to tighten its purse strings. Pakistan has had 21 bailouts since it joined the IMF in 1950. Its most recent loan was issued in 2013, worth $6.6 billion. (With inputs from agencies)

Post IMF bailout, Pakistan's currency reaches all-time low against US dollar

An attack on a luxury hotel in the southwestern city of Gwadar was a bid to "sabotage prosperity", Pakistani prime minister Imran Khan said Sunday, as police confirmed all the attackers had been killed.

At least <a href="https://www.wionews.com/south-asia/pakistan-hotel-attack-process-of-clearing-enters-final-stage-all-guests-staff-members-rescued-safely-217875">one person was shot dead</a> Saturday after gunmen stormed a luxury hotel in the southwestern Pakistani city of Gwadar, the centrepiece of a multi-billion dollar Chinese infrastructure project.&nbsp;

A Baloch separatist group, the <a href="https://www.wionews.com/south-asia/4-killed-as-armed-militants-storm-5-star-hotel-in-pakistans-gwadar-port-city-police-217847">Balochistan Liberation Army</a> (BLA), claimed responsibility for the attack via Twitter.

"Such attempts, especially in Balochistan, are an effort to sabotage our economic projects and prosperity. We shall not allow these agendas to succeed," Khan said in a statement issued by his office.

The Chinese embassy in Islamabad also strongly condemned the incident.&nbsp;

Local police said four gunmen who had stormed the hotel, shooting dead a security guard, had been killed overnight by security forces.

"All four terrorists were killed and security forces had taken complete control of the hotel building," a local police official in Gwadar told AFP via telephone.

His account was confirmed by a security source in Islamabad. The military had said on Saturday that there were three gunmen.

Mohammad Aslam, a police official in Gwadar, told AFP Saturday that only staff were present in the building at the time of the attack.

The BLA is one of a myriad of insurgent groups fighting in tightly-guarded Balochistan province, which has been rocked by separatist, Islamist and sectarian violence for years.

'The next Dubai'

The Pearl Continental, part of Pakistan's largest five-star hotel chain, is the only luxury hotel in Gwadar, frequented by foreign and Pakistani business delegations as well as diplomats.

It sits isolated on a ridge overlooking the Arabian Sea port city that was formerly a small fishing village, but now touted by officials as "the next Dubai" thanks to the multi-billion dollar China-Pakistan Economic Corridor (CPEC).

Part of China's Belt and Road initiative, CPEC seeks to connect the western Chinese province of Xinjiang with Gwadar, with the development of the port as the plan's flagship project.

Gwadar will provide China with safer and more direct access to the oil-rich Middle East than the waterway trade route it currently uses through the narrow Malacca Straits.

But it has also drawn its share of attacks -- particularly from separatists who have long complained that residents of Pakistan's poorest and largest province do not receive a fair share of profits from its resources.

The BLA has targeted Chinese workers in Pakistan multiple times, including during a brazen daylight attack on the Chinese consulate in Karachi which killed four people in November last year.

At the time, the BLA branded Beijing "an oppressor".

Balochistan is tightly guarded by the Pakistani military, who have been targeting insurgents there since 2004. The army has been repeatedly accused by international rights groups of abuses there, but denies all allegations.

The attack was the second deadly attack in a prominent Pakistan city this week, after a suicide blast claimed by the Pakistani Taliban at one of the country's oldest and most popular Sufi shrines killed at least 12 people in the eastern city of Lahore.

An attack on a luxury hotel in the southwestern city of Gwadar was a bid to "sabotage prosperity", Pakistani prime minister Imran Khan said Sunday, as police confirmed all the attackers had been killed.

An attack on a luxury hotel in the southwestern city of Gwadar was a bid to "sabotage prosperity", Pakistani prime minister Imran Khan said Sunday, as police confirmed all the attackers had been killed. At least one person was shot dead Saturday after gunmen stormed a luxury hotel in the southwestern Pakistani city of Gwadar, the centrepiece of a multi-billion dollar Chinese infrastructure project. A Baloch separatist group, the Balochistan Liberation Army (BLA), claimed responsibility for the attack via Twitter. "Such attempts, especially in Balochistan, are an effort to sabotage our economic projects and prosperity. We shall not allow these agendas to succeed," Khan said in a statement issued by his office. The Chinese embassy in Islamabad also strongly condemned the incident. Local police said four gunmen who had stormed the hotel, shooting dead a security guard, had been killed overnight by security forces. "All four terrorists were killed and security forces had taken complete control of the hotel building," a local police official in Gwadar told AFP via telephone. His account was confirmed by a security source in Islamabad. The military had said on Saturday that there were three gunmen. Mohammad Aslam, a police official in Gwadar, told AFP Saturday that only staff were present in the building at the time of the attack. The BLA is one of a myriad of insurgent groups fighting in tightly-guarded Balochistan province, which has been rocked by separatist, Islamist and sectarian violence for years. 'The next Dubai' The Pearl Continental, part of Pakistan's largest five-star hotel chain, is the only luxury hotel in Gwadar, frequented by foreign and Pakistani business delegations as well as diplomats. It sits isolated on a ridge overlooking the Arabian Sea port city that was formerly a small fishing village, but now touted by officials as "the next Dubai" thanks to the multi-billion dollar China-Pakistan Economic Corridor (CPEC). Part of China's Belt and Road initiative, CPEC seeks to connect the western Chinese province of Xinjiang with Gwadar, with the development of the port as the plan's flagship project. Gwadar will provide China with safer and more direct access to the oil-rich Middle East than the waterway trade route it currently uses through the narrow Malacca Straits. But it has also drawn its share of attacks -- particularly from separatists who have long complained that residents of Pakistan's poorest and largest province do not receive a fair share of profits from its resources. The BLA has targeted Chinese workers in Pakistan multiple times, including during a brazen daylight attack on the Chinese consulate in Karachi which killed four people in November last year. At the time, the BLA branded Beijing "an oppressor". Balochistan is tightly guarded by the Pakistani military, who have been targeting insurgents there since 2004. The army has been repeatedly accused by international rights groups of abuses there, but denies all allegations. The attack was the second deadly attack in a prominent Pakistan city this week, after a suicide blast claimed by the Pakistani Taliban at one of the country's oldest and most popular Sufi shrines killed at least 12 people in the eastern city of Lahore.

Pakistan PM Imran Khan slams hotel attack as bid to damage economy

The talks between cash-strapped Pakistan and the <a href="https://www.wionews.com/pakistan/imran-khan-asks-people-of-pakistan-to-bear-with-rising-inflation-217696">IMF</a> will continue over the weekend after the parleys between the two sides reached a deadlock due to <a href="https://www.wionews.com/south-asia/pakistan-growth-to-hit-eight-year-low-as-imf-bailout-looms-217509">Prime Minister Imran Khan</a>'s reservations over heavy taxation the people would have to bear, according to a media report on Saturday.

Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around $6.5 billion.

We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend, Khaqan Hasan Najeeb, the spokesman of the Finance Ministry, was quoted as saying by the Express Tribune.

Sources in the ministry of finance said that there were at least three main sticking points that led to inconclusive talks till the last day of the IMF visit. As of Thursday, the top management of the Ministry of Finance was hopeful to conclude the deal and the IMF team had planned to return on May 11, the report said.

But things went off the track after the IMF insisted on the inclusion of some new conditions in the programme, which appeared unreasonable.

Prime Minister Imran Khan also expressed reservations over massive additional taxes burden that the nation will bear from July this year, provided both sides reach an agreement, it said.

Pakistan has accepted the IMF's demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowing from the central bank and reinitiating the privatisation programme.

The talks remained inconclusive despite Pakistan conceded to almost everything that the IMF asked for, the report said.

Pakistan and the IMF are engaged to finalise the bailout package for the past eight months. It was the second visit by the IMF staff level team during the past five months that again could not conclude the deal within the due time.

The sources said the IMF has sent a draft of the proposed agreement to Washington for vetting that includes some new conditions which were not part of negotiations in the first round of talks.&nbsp;

The talks between cash-strapped Pakistan and the IMF will continue over the weekend after the parleys between the two sides reached a deadlock due to Prime Minister Imran Khan's reservations over heavy taxation the people would have to bear, according to a media report on Saturday.

The talks between cash-strapped Pakistan and the IMF will continue over the weekend after the parleys between the two sides reached a deadlock due to Prime Minister Imran Khan's reservations over heavy taxation the people would have to bear, according to a media report on Saturday. Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around $6.5 billion. We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend, Khaqan Hasan Najeeb, the spokesman of the Finance Ministry, was quoted as saying by the Express Tribune. Sources in the ministry of finance said that there were at least three main sticking points that led to inconclusive talks till the last day of the IMF visit. As of Thursday, the top management of the Ministry of Finance was hopeful to conclude the deal and the IMF team had planned to return on May 11, the report said. But things went off the track after the IMF insisted on the inclusion of some new conditions in the programme, which appeared unreasonable. Prime Minister Imran Khan also expressed reservations over massive additional taxes burden that the nation will bear from July this year, provided both sides reach an agreement, it said. Pakistan has accepted the IMF's demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowing from the central bank and reinitiating the privatisation programme. The talks remained inconclusive despite Pakistan conceded to almost everything that the IMF asked for, the report said. Pakistan and the IMF are engaged to finalise the bailout package for the past eight months. It was the second visit by the IMF staff level team during the past five months that again could not conclude the deal within the due time. The sources said the IMF has sent a draft of the proposed agreement to Washington for vetting that includes some new conditions which were not part of negotiations in the first round of talks.

Pakistan to continue talks with IMF on bailout over weekend

<a href="https://www.wionews.com/south-asia/pakistan-taliban-faction-claims-responsibility-for-blast-in-lahore-216950">Pakistan</a>'s growth rate is set to hit an eight-year low, a government report predicted Friday, with all major indicators down as the country continues negotiating its 22nd bailout from the International Monetary Fund.

A report by the National Accounts Committee, released late Thursday, forecast growth of a mere 3.3 per cent in the current fiscal year against a projected target of 6.2 per cent.&nbsp;

"These are provisional data, not final, but <a href="https://www.wionews.com/south-asia/pakistan-appoints-former-imf-official-as-new-state-bank-of-pakistan-governor-216057">Pakistan's economy</a> is witnessing a slowdown," Muzammil Aslam, an independent economist, said.

The report came as an IMF mission to Pakistan was expected to conclude its visit Friday, where it has been holding negotiations over a long-delayed bailout to stave off a potential balance-of-payments crisis.&nbsp;

A deal could be announced shortly, according to local media.

"We expect an IMF package similar to the one Pakistan obtained in 2008," Aslam, who heads Emerging Economic Research, said.

Then, Pakistan got a $7.6 billion loan for five years to support its programme to stabilise and rebuild the economy.

Analysts have warned that any fresh IMF deal could come with restrictions that would hobble Prime Minister Imran Khan's grand promises to build an Islamic welfare state.&nbsp;

Discontent is already growing over the measures the government has taken to fend off the crisis, including devaluing the rupee by some 30 per cent since January 2018, sending inflation to five-year highs.&nbsp;

"I had to halve my blood pressure medicine does as we can't afford to buy expensive medicines," Shehla Samad, a 45-year housewife, told AFP in Karachi recently.

The IMF has issued an even more grim forecast for Pakistan, predicting economic growth of 2.9 per cent -- a 10-year low -- for the current fiscal year.

Government officials said last month they have reached an "agreement in principle" with the IMF.

But Khan's finance minister Asad Umar, who was leading negotiations, quit after a cabinet reshuffle last month.

"We need to take some difficult decisions and we need to show some patience... Don't expect that there will be miracles and rivers of honey and milk," Umar warned after his resignation.

The negotiations are now being led by Abdul Hafeez Sheikh, a former World Bank official who was Pakistan's finance minister from 2010-2013.

The US has warned that it will be watching closely to ensure Pakistan does not use IMF money to repay debts to China, which has poured billions into the country for infrastructure projects under its Belt and Road Initiative.

Pakistan, which joined the IMF in 1950, has had 21 bailouts since then. Its most recent loan was issued in 2013, worth $6.6 billion.

The United Arab Emirates, Pakistan's largest trading partner in the Middle East and a major investment source, recently offered $3 billion to support the battered economy.

Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan's visit to the kingdom in October.

Pakistan's growth rate is set to hit an eight-year low, a government report predicted Friday, with all major indicators down as the country continues negotiating its 22nd bailout from the International Monetary Fund.

Pakistan's growth rate is set to hit an eight-year low, a government report predicted Friday, with all major indicators down as the country continues negotiating its 22nd bailout from the International Monetary Fund. A report by the National Accounts Committee, released late Thursday, forecast growth of a mere 3.3 per cent in the current fiscal year against a projected target of 6.2 per cent. "These are provisional data, not final, but Pakistan's economy is witnessing a slowdown," Muzammil Aslam, an independent economist, said. The report came as an IMF mission to Pakistan was expected to conclude its visit Friday, where it has been holding negotiations over a long-delayed bailout to stave off a potential balance-of-payments crisis. A deal could be announced shortly, according to local media. "We expect an IMF package similar to the one Pakistan obtained in 2008," Aslam, who heads Emerging Economic Research, said. Then, Pakistan got a $7.6 billion loan for five years to support its programme to stabilise and rebuild the economy. Analysts have warned that any fresh IMF deal could come with restrictions that would hobble Prime Minister Imran Khan's grand promises to build an Islamic welfare state. Discontent is already growing over the measures the government has taken to fend off the crisis, including devaluing the rupee by some 30 per cent since January 2018, sending inflation to five-year highs. "I had to halve my blood pressure medicine does as we can't afford to buy expensive medicines," Shehla Samad, a 45-year housewife, told AFP in Karachi recently. The IMF has issued an even more grim forecast for Pakistan, predicting economic growth of 2.9 per cent -- a 10-year low -- for the current fiscal year. Government officials said last month they have reached an "agreement in principle" with the IMF. But Khan's finance minister Asad Umar, who was leading negotiations, quit after a cabinet reshuffle last month. "We need to take some difficult decisions and we need to show some patience... Don't expect that there will be miracles and rivers of honey and milk," Umar warned after his resignation. The negotiations are now being led by Abdul Hafeez Sheikh, a former World Bank official who was Pakistan's finance minister from 2010-2013. The US has warned that it will be watching closely to ensure Pakistan does not use IMF money to repay debts to China, which has poured billions into the country for infrastructure projects under its Belt and Road Initiative. Pakistan, which joined the IMF in 1950, has had 21 bailouts since then. Its most recent loan was issued in 2013, worth $6.6 billion. The United Arab Emirates, Pakistan's largest trading partner in the Middle East and a major investment source, recently offered $3 billion to support the battered economy. Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan's visit to the kingdom in October.

Pakistan's growth to hit eight-year low as IMF bailout looms

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China.

Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year.

According to adviser and spokesman for the Ministry of Finance Khaqan Najeeb, the IMF team will meet officials of the ministry, the Federal Board of Revenue and the State Bank during its visit.

The two sides will discuss the possibility of a $7 to $8 billion loans for Pakistan, Geo News reported.

"The talks aim to determine the terms and conditions of the three-year programme," an official at the finance ministry told PTI.

The details of the package will be finalised between the funds' team lead by the director for the Middle East and Central Asia Ernesto Meris and Finance Secretary Yunus Dhaga.

The talks will continue for about a week, the official said.

Pakistan has already finalised the summary of data on various economic matters as demanded by the IMF, including details about the performance of the economy in the first nine months of the current fiscal year.

The IMF will also get details about the upcoming budget for 2019-20 which is expected to be announced towards the end of May.

Details about loans from China and the IMF insistence to increase the tax-to-GDP ratio to 13.2 per cent were some of the sticking points to finalise the package.

It is not clear how much assistance IMF will provide but Pakistan is expecting between $6-8 billion, the official said.

Pakistan was already taking measures to fulfil some of the pre-conditions to increase exports, widen the tax base and adjust the exchange rate.

Prime Minister Khan met IMF Director Lagarde on Friday on the sidelines of the second Belt and Road Forum in Beijing, China.

During the meeting, they agreed on the importance of the IMF programme for the country and reviewed the relationship between Pakistan and the global lender, the report said.

Khan had identified areas of reforms and initiatives being undertaken by his government to stabilise the economy, control inflation and achieve fiscal balance.

They also agreed on the need for a social safety net for vulnerable groups of society.

"We discussed prospects for a comprehensive policy package and international financial support to help stabilise the economy of Pakistan, and also the need to strengthen governance and protect the poor," Lagarde said in a post after the meeting.

Pakistan wants the IMF to focus on the long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.&nbsp;

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China.

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for a bailout package to the cash-strapped country, days after Prime Minister Imran Khan met IMF chief Christine Lagarde in China. Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year. According to adviser and spokesman for the Ministry of Finance Khaqan Najeeb, the IMF team will meet officials of the ministry, the Federal Board of Revenue and the State Bank during its visit. The two sides will discuss the possibility of a $7 to $8 billion loans for Pakistan, Geo News reported. "The talks aim to determine the terms and conditions of the three-year programme," an official at the finance ministry told PTI. The details of the package will be finalised between the funds' team lead by the director for the Middle East and Central Asia Ernesto Meris and Finance Secretary Yunus Dhaga. The talks will continue for about a week, the official said. Pakistan has already finalised the summary of data on various economic matters as demanded by the IMF, including details about the performance of the economy in the first nine months of the current fiscal year. The IMF will also get details about the upcoming budget for 2019-20 which is expected to be announced towards the end of May. Details about loans from China and the IMF insistence to increase the tax-to-GDP ratio to 13.2 per cent were some of the sticking points to finalise the package. It is not clear how much assistance IMF will provide but Pakistan is expecting between $6-8 billion, the official said. Pakistan was already taking measures to fulfil some of the pre-conditions to increase exports, widen the tax base and adjust the exchange rate. Prime Minister Khan met IMF Director Lagarde on Friday on the sidelines of the second Belt and Road Forum in Beijing, China. During the meeting, they agreed on the importance of the IMF programme for the country and reviewed the relationship between Pakistan and the global lender, the report said. Khan had identified areas of reforms and initiatives being undertaken by his government to stabilise the economy, control inflation and achieve fiscal balance. They also agreed on the need for a social safety net for vulnerable groups of society. "We discussed prospects for a comprehensive policy package and international financial support to help stabilise the economy of Pakistan, and also the need to strengthen governance and protect the poor," Lagarde said in a post after the meeting. Pakistan wants the IMF to focus on the long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.

IMF delegation arrives in Pakistan to hold talks on bailout package

International Monetary Fund (IMF) mission's visit to Pakistan for finalising a bailout package has been postponed until May.

"Both sides are still engaged in an intense conversation on the final details of that full agreement. So, the IMF mission is now more likely to visit Islamabad in May, not April," a government source, who did not want to be identified, told The Dawn.

Last month, Pakistan's Finance Minister Asad Umar had announced that the mission would visit Islamabad in April to sign an agreement.

However, the IMF, during spring meetings with Umar last week, had expressed its reservations over China's financial assistance to Pakistan.

The IMF has asked Islamabad to share details of loans that it has received from Beijing.

It has also asked for a written guarantee from Pakistan and China that IMF assistance will not be used to repay loans to China, reported Express Tribune.

Besides these, the mission has also asked Islamabad to make State Bank completely independent.

Notably, it will be the 14th package with the IMF, if released.

The Imran Khan government has professed that previous bailout packages could not be fully implemented owing to the conditions they came with.

Umar is expected to visit China later this month to discuss the IMF`s concerns over the China Pakistan Economic Corridor (CPEC).

International Monetary Fund (IMF) mission's visit to Pakistan for finalising a bailout package has been postponed until May. "Both sides are still engaged in an intense conversation on the final details of that full agreement.

International Monetary Fund (IMF) mission's visit to Pakistan for finalising a bailout package has been postponed until May. "Both sides are still engaged in an intense conversation on the final details of that full agreement. So, the IMF mission is now more likely to visit Islamabad in May, not April," a government source, who did not want to be identified, told The Dawn. Last month, Pakistan's Finance Minister Asad Umar had announced that the mission would visit Islamabad in April to sign an agreement. However, the IMF, during spring meetings with Umar last week, had expressed its reservations over China's financial assistance to Pakistan. The IMF has asked Islamabad to share details of loans that it has received from Beijing. It has also asked for a written guarantee from Pakistan and China that IMF assistance will not be used to repay loans to China, reported Express Tribune. Besides these, the mission has also asked Islamabad to make State Bank completely independent. Notably, it will be the 14th package with the IMF, if released. The Imran Khan government has professed that previous bailout packages could not be fully implemented owing to the conditions they came with. Umar is expected to visit China later this month to discuss the IMF`s concerns over the China Pakistan Economic Corridor (CPEC).

International Monetary Fund's visit to Pakistan postponed

International Monetary Fund asked Pakistan to disclose the complete details of loan it took from China. Watch complete video to know more.

IMF asks for detail of Pakistan's loan from China

Pakistan Finance Minister <a href="https://www.wionews.com/south-asia/pakistans-economy-out-of-crisis-phase-finance-minister-208906">Asad Umar</a> on Wednesday (local time) held meetings with World Bank Group President David R Malpass and senior officials of the International Monetary Fund (IMF), in a bid to seek a three-year bailout package.

The delegation led by the finance minister which included State Bank of Pakistan Governor Tariq Bajwa, Finance Secretary Younas Dagha and Economic Affairs Division Secretary Noor Ahmed, reached Washington for a two-day meeting.

This comes a day after the IMF in its yearly World Economic Outlook reportedly projected that Pakistan's growth may remain at 2.5 per cent till 2024 unless Islamabad undertakes indispensable economic reforms.

Last year in October, Pakistan formally requested the IMF for yet another economic assistance package.

The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks.

The US views Pakistan as a safe haven for the terrorists and insurgents, responsible for the 17-years-old war going on in the neighbouring country Afghanistan.

Pentagon, in September, had reportedly cut off aid worth $300 million due&nbsp;to the growing concerns regarding the Islamabad's failure to tackle the militants.

In August, the Congress had also slashed the security-oriented financial aid to Pakistan.

Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time.

However, Pakistan secured loans up to $6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October.

Islamabad has been seeking commercial loans of $2 billion&nbsp;from Beijing. China has already refused to provide a balance of payment (BoP) support to Pakistan.&nbsp;

Pakistan Finance Minister Asad Umar on Wednesday (local time) held meetings with World Bank Group President David R Malpass and senior officials of the International Monetary Fund (IMF), in a bid to seek a three-year bailout package.

Pakistan Finance Minister Asad Umar on Wednesday (local time) held meetings with World Bank Group President David R Malpass and senior officials of the International Monetary Fund (IMF), in a bid to seek a three-year bailout package. The delegation led by the finance minister which included State Bank of Pakistan Governor Tariq Bajwa, Finance Secretary Younas Dagha and Economic Affairs Division Secretary Noor Ahmed, reached Washington for a two-day meeting. This comes a day after the IMF in its yearly World Economic Outlook reportedly projected that Pakistan's growth may remain at 2.5 per cent till 2024 unless Islamabad undertakes indispensable economic reforms. Last year in October, Pakistan formally requested the IMF for yet another economic assistance package. The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks. The US views Pakistan as a safe haven for the terrorists and insurgents, responsible for the 17-years-old war going on in the neighbouring country Afghanistan. Pentagon, in September, had reportedly cut off aid worth $300 million due to the growing concerns regarding the Islamabad's failure to tackle the militants. In August, the Congress had also slashed the security-oriented financial aid to Pakistan. Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time. However, Pakistan secured loans up to $6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October. Islamabad has been seeking commercial loans of $2 billion from Beijing. China has already refused to provide a balance of payment (BoP) support to Pakistan.

Pakistan Finance minister Asad Umar held meetings with World Bank leaders, seeking bailout

Finance Minister Asad Umar said on Monday that <a href="https://www.wionews.com/world/prevent-imf-bailout-to-pakistan-to-repay-chinese-debt-208726">Pakistan's economy</a> was out of the crisis phase even as the cash-strapped country's economic growth is projected to slump further to 3.9 per cent in the fiscal year 2019 from 5.2 per cent in 2018.

"The crisis phase for the economy is over, however, we are still in the stabilisation phase," Umar was quoted as saying by Geo TV.

He said this stabilisation phase would continue for the next one and a half years as he compared Pakistan's economy to a patient in the ICU who had been treated and now brought back to a normal ward, the channel reported.

"The situation right now is that we are not taking loans to pay off past loans, but to pay off interest," he said.

Umar said Pakistan was facing three main problems on the economic front. "We are stuck with the fiscal deficit, current account deficit and saving and investment gap," he said.

He called on the Federal Board of Revenue (FBR) to simplify the tax return system with easier forms and lesser questions.

"The amount of questions FBR asks you for your returns is more than those asked when you are accepting a marriage proposal for your daughter," Umar said.

He said Pakistan's talks with the International Monetary Fund (IMF) for a financial package were in its final stage.

On March 16, Umar had hinted that bailout package talks with the IMF are in their final stages and the government will have further negotiations with the newly appointed IMF mission chief before reaching an agreement.

Cash-strapped Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year.

While China has pumped-in $4.1 billion, Pakistan has got $3 billion from Saudi Arabia and $2 billion from the United Arab Emirates (UAE).

In its flagship economic publication titled "Asian Development Outlook 2019," the Manila-based Asian Development Bank said Pakistan's economic growth decelerated in the fiscal year 2018 despite revived agriculture.

Pakistan's GDP growth is forecast to decelerate further to 3.9 per cent in FY2019 as macroeconomic challenges continue and despite steps to tighten fiscal and monetary policies to rein in high and unsustainable twin deficits.

Continued fiscal consolidation in FY2020 will keep growth subdued at 3.6 per cent, the ADB said.&nbsp;

Finance Minister Asad Umar said on Monday that Pakistan's economy was out of the crisis phase even as the cash-strapped country's economic growth is projected to slump further to 3.

Finance Minister Asad Umar said on Monday that Pakistan's economy was out of the crisis phase even as the cash-strapped country's economic growth is projected to slump further to 3.9 per cent in the fiscal year 2019 from 5.2 per cent in 2018. "The crisis phase for the economy is over, however, we are still in the stabilisation phase," Umar was quoted as saying by Geo TV. He said this stabilisation phase would continue for the next one and a half years as he compared Pakistan's economy to a patient in the ICU who had been treated and now brought back to a normal ward, the channel reported. "The situation right now is that we are not taking loans to pay off past loans, but to pay off interest," he said. Umar said Pakistan was facing three main problems on the economic front. "We are stuck with the fiscal deficit, current account deficit and saving and investment gap," he said. He called on the Federal Board of Revenue (FBR) to simplify the tax return system with easier forms and lesser questions. "The amount of questions FBR asks you for your returns is more than those asked when you are accepting a marriage proposal for your daughter," Umar said. He said Pakistan's talks with the International Monetary Fund (IMF) for a financial package were in its final stage. On March 16, Umar had hinted that bailout package talks with the IMF are in their final stages and the government will have further negotiations with the newly appointed IMF mission chief before reaching an agreement. Cash-strapped Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year. While China has pumped-in $4.1 billion, Pakistan has got $3 billion from Saudi Arabia and $2 billion from the United Arab Emirates (UAE). In its flagship economic publication titled "Asian Development Outlook 2019," the Manila-based Asian Development Bank said Pakistan's economic growth decelerated in the fiscal year 2018 despite revived agriculture. Pakistan's GDP growth is forecast to decelerate further to 3.9 per cent in FY2019 as macroeconomic challenges continue and despite steps to tighten fiscal and monetary policies to rein in high and unsustainable twin deficits. Continued fiscal consolidation in FY2020 will keep growth subdued at 3.6 per cent, the ADB said.

Pakistan's economy out of crisis phase: Finance Minister

Pakistan’s finance minister on Friday ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars.

Since coming to power in August, much of the government’s focus has been in staving off a balance of payments crisis. It is in talks with the International Monetary Fund over a 13th bailout since the 1980s which is expected in the next few weeks.

Consumer price inflation rose in March to its highest since November 2013. Energy costs, in particular, have risen sharply, hit by a series of a devaluation.

"Today, State Bank of Pakistan has given a categorical statement that rupee is in equilibrium. The central bank cannot speak clearer than this,” Finance Minister Asad Umar said in a speech at the Pakistan Stock Exchange shown on television.

"There is no reason for big devaluations."

He added that there were no demands for what the exchange rate should be in the talks with the IMF.

Traditionally, Pakistan has kept its exchange rate over-valued, incurring losses to the economy, the finance minister said. The rupee should be aligned with its fundamentals and its benchmark should be the real effective exchange rate (REER), he added.

The minister advised the people not to waste money buying dollars, but instead invest in the stock market.

"One should not say the rupee would comfortably become stable or inflexible in terms of movement. It will remain flexible, but one should not expect big devaluation,"&nbsp;Fawad Khan, head of Research at BMA Capital Management Limited, told Reuters.

The finance minister’s remarks would help bring stability, Khan said.

"Overall, the statement has been taken positively by the equity market,"&nbsp;he told Reuters.

The question of whether the finance minister should have given this statement or not was another issue, Khan said because the management of the exchange rate is the joint responsibility of the ministry of finance and the central bank.

Pakistan’s finance minister on Friday ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars.

Pakistan’s finance minister on Friday ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars. Since coming to power in August, much of the government’s focus has been in staving off a balance of payments crisis. It is in talks with the International Monetary Fund over a 13th bailout since the 1980s which is expected in the next few weeks. Consumer price inflation rose in March to its highest since November 2013. Energy costs, in particular, have risen sharply, hit by a series of a devaluation. "Today, State Bank of Pakistan has given a categorical statement that rupee is in equilibrium. The central bank cannot speak clearer than this,” Finance Minister Asad Umar said in a speech at the Pakistan Stock Exchange shown on television. "There is no reason for big devaluations." He added that there were no demands for what the exchange rate should be in the talks with the IMF. Traditionally, Pakistan has kept its exchange rate over-valued, incurring losses to the economy, the finance minister said. The rupee should be aligned with its fundamentals and its benchmark should be the real effective exchange rate (REER), he added. The minister advised the people not to waste money buying dollars, but instead invest in the stock market. "One should not say the rupee would comfortably become stable or inflexible in terms of movement. It will remain flexible, but one should not expect big devaluation," Fawad Khan, head of Research at BMA Capital Management Limited, told Reuters. The finance minister’s remarks would help bring stability, Khan said. "Overall, the statement has been taken positively by the equity market," he told Reuters. The question of whether the finance minister should have given this statement or not was another issue, Khan said because the management of the exchange rate is the joint responsibility of the ministry of finance and the central bank.

Pakistan finance minister Asad Umar rules out further devaluation

Imran Khan's promise of 'Naya Pakistan' seems to be a distant dream' with the country's economy in shambles

According to the latest numbers released by Pakistan Bureau of Statistics, inflation in Pakistan is at an all-time high at 9.41 per cent, up from the previous 8.21 per cent.

A sharp rise in food, fuel and transport costs have squeezed household budgets in Pakistan, according to the data.

Energy costs, in particular, have risen sharply, hit by a series of devaluations of the Pakistan Rupee. To add to consumer woes, the Pakistan government on Sunday announced a Rs 6 rise in petrol prices to 98.88 rupees a litre.

Pakistan’s currency has lost over a quarter of its value over the past year.

The country has been in talks with the international monetary fund on what would be its 13th bailout since the late 1980s.

However, there are wide differences over issues ranging from lifting exchange rate controls to bringing down the twin deficits.

As a saving grace, Imran Khan government has however secured loans over $8 billion from Saudi Arabia, the United Arab Emirates (UAE)and China. This besides credit oil facility on deferred payment of $3 billion each from Riyadh and the UAE.

The escalation of tensions between India and Pakistan in recent months after the Pulwama attack has put international pressure on Pakistan to act against terror camps operating from its soil, squeezing it of international aid that it could have otherwise secured, draining its already bleeding economy.

Imran Khan's promise of 'Naya Pakistan' seems to be a distant dream' with the country's economy in shambles According to the latest numbers released by Pakistan Bureau of Statistics, inflation in Pakistan is at an all-time high at 9.

Imran Khan's promise of 'Naya Pakistan' seems to be a distant dream' with the country's economy in shambles According to the latest numbers released by Pakistan Bureau of Statistics, inflation in Pakistan is at an all-time high at 9.41 per cent, up from the previous 8.21 per cent. A sharp rise in food, fuel and transport costs have squeezed household budgets in Pakistan, according to the data. Energy costs, in particular, have risen sharply, hit by a series of devaluations of the Pakistan Rupee. To add to consumer woes, the Pakistan government on Sunday announced a Rs 6 rise in petrol prices to 98.88 rupees a litre. Pakistan’s currency has lost over a quarter of its value over the past year. The country has been in talks with the international monetary fund on what would be its 13th bailout since the late 1980s. However, there are wide differences over issues ranging from lifting exchange rate controls to bringing down the twin deficits. As a saving grace, Imran Khan government has however secured loans over $8 billion from Saudi Arabia, the United Arab Emirates (UAE)and China. This besides credit oil facility on deferred payment of $3 billion each from Riyadh and the UAE. The escalation of tensions between India and Pakistan in recent months after the Pulwama attack has put international pressure on Pakistan to act against terror camps operating from its soil, squeezing it of international aid that it could have otherwise secured, draining its already bleeding economy.

Imran Khan's promise of 'Naya Pakistan' a distant dream as economy struggles 

Pakistan, facing acute financial woes, will soon reach an agreement with the <a href="https://www.wionews.com/south-asia/imf-likely-to-give-6-billion-us-dollar-bailout-package-to-pakistan-197059">IMF on a bailout plan</a> after the global lender revised its stand, Finance Minister Asad Umar on Monday.

Cash-strapped Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

While speaking to journalists here, Umar said Pakistan had not changed its stance in talks with the IMF. He added that the IMF had revised their stance and "the gap" between the IMF and Pakistan had decreased.

Pakistan will reach an agreement soon with the IMF, Dawn newspaper quoted Umar as saying.

He said the new IMF mission chief is to arrive in Pakistan on Tuesday for an introductory visit.

Earlier, media reports said the IMF has proposed tough conditions for a bailout package.

With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year.

While China has pumped-in $4.1 billion, Pakistan has got $3 billion from Saudi Arabia and $2 billion from United Arab Emirates (UAE).

On March 16, Umar had hinted that bailout package talks with the IMF are in their final stages and the government will have further negotiations with the newly appointed IMF mission chief before reaching an agreement.

"Pakistan has come closer to reaching an agreement with the IMF as the differences between Pakistan and the IMF over a possible bailout package have decreased," he had said.

The finance minister had said that a deal would materialise only after a detailed discussion with the IMF mission chief.&nbsp;

He said that no final amount for the bailout package had been decided so far, as negotiations were still underway.

Pakistan, facing acute financial woes, will soon reach an agreement with the IMF on a bailout plan after the global lender revised its stand, Finance Minister Asad Umar on Monday.

Pakistan, facing acute financial woes, will soon reach an agreement with the IMF on a bailout plan after the global lender revised its stand, Finance Minister Asad Umar on Monday. Cash-strapped Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. While speaking to journalists here, Umar said Pakistan had not changed its stance in talks with the IMF. He added that the IMF had revised their stance and "the gap" between the IMF and Pakistan had decreased. Pakistan will reach an agreement soon with the IMF, Dawn newspaper quoted Umar as saying. He said the new IMF mission chief is to arrive in Pakistan on Tuesday for an introductory visit. Earlier, media reports said the IMF has proposed tough conditions for a bailout package. With the generous Chinese assistance, Pakistan has so far received a total of $9.1 billion in financial aid packages from friendly countries during the current fiscal year. While China has pumped-in $4.1 billion, Pakistan has got $3 billion from Saudi Arabia and $2 billion from United Arab Emirates (UAE). On March 16, Umar had hinted that bailout package talks with the IMF are in their final stages and the government will have further negotiations with the newly appointed IMF mission chief before reaching an agreement. "Pakistan has come closer to reaching an agreement with the IMF as the differences between Pakistan and the IMF over a possible bailout package have decreased," he had said. The finance minister had said that a deal would materialise only after a detailed discussion with the IMF mission chief. He said that no final amount for the bailout package had been decided so far, as negotiations were still underway.

Pakistan, IMF to reach agreement soon on bailout package: Finance Minister

Saudi Arabia will announce eight investment agreements during a <a href="http://www.wionews.com/pakistan/cash-strapped-pakistan-to-host-saudi-crown-prince-197175">visit to Pakistan by Crown Prince Mohammad Bin Salman</a>, officials said on Wednesday, a trip that is expected to set the seal on growing closeness between the historic allies.

The investment is welcome in Pakistan, which is facing sharply slowing economic growth this year, a ballooning budget deficit and foreign currency reserves dwindling to less than $8 billion or two months' of imports.

Saudi Arabia, meanwhile, is looking to diversify its economy beyond oil exports and also needs allies in the aftermath of the killing of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October.

While Islamabad has begun talks over a possible bailout with the International Monetary Fund, it has already won $6 billion in badly needed loans and credit arrangements from Saudi Arabia to prevent a balance of payments crisis.

"Saudi Arabia always supported us in these tough times," Foreign Minister Shah Mahmood Qureshi told a news conference in Islamabad.

The government is also looking for new sources of investment alongside the mammoth $60 billion China Pakistan Economic Corridor infrastructure project with Beijing.

Total Saudi investments could reach $20 billion over the next few years, the Board of Investment said in a statement, without providing any detailed breakdown.

Eight memoranda of understanding are expected to be signed during Prince Mohammad's visit this weekend after plans were announced last month for a $10 billion oil refinery in Gwadar where China is building a deepwater port as part of its Belt and Road intitiative.

"We would like this economic corridor that is being built and Gwadar to become a hub of trade, energy and economic activity," Qureshi said.

Saudi Arabia is also interested in buying two liquefied natural gas-based power plants at Haveli Bahadur Shah and Bhikki which the government is looking to sell as part of a privatization drive, he said.

Pakistani Prime Minister Imran Khan was among a handful of world leaders who attended Riyadh's flagship investment conference in October, which was shunned by many companies and governments in protest at Khashoggi's murder.

Pakistani newspapers have reported in awe-struck tones on preparations for Prince Mohammad's two-day visit, during which he will be accompanied by a 1,000-strong entourage and five truckloads of effects including his personal gym equipment.

Qureshi rejected suggestions that Pakistan had promised its support for the Saudi-backed coalition waging war in Yemen against the Iran-aligned Houthi movement.

"There is no such conditionality, there is no attempt to push Pakistan into Yemen," he said.

Saudi Arabia will announce eight investment agreements during a visit to Pakistan by Crown Prince Mohammad Bin Salman, officials said on Wednesday, a trip that is expected to set the seal on growing closeness between the historic allies.

Saudi Arabia will announce eight investment agreements during a visit to Pakistan by Crown Prince Mohammad Bin Salman, officials said on Wednesday, a trip that is expected to set the seal on growing closeness between the historic allies. The investment is welcome in Pakistan, which is facing sharply slowing economic growth this year, a ballooning budget deficit and foreign currency reserves dwindling to less than $8 billion or two months' of imports. Saudi Arabia, meanwhile, is looking to diversify its economy beyond oil exports and also needs allies in the aftermath of the killing of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. While Islamabad has begun talks over a possible bailout with the International Monetary Fund, it has already won $6 billion in badly needed loans and credit arrangements from Saudi Arabia to prevent a balance of payments crisis. "Saudi Arabia always supported us in these tough times," Foreign Minister Shah Mahmood Qureshi told a news conference in Islamabad. The government is also looking for new sources of investment alongside the mammoth $60 billion China Pakistan Economic Corridor infrastructure project with Beijing. Total Saudi investments could reach $20 billion over the next few years, the Board of Investment said in a statement, without providing any detailed breakdown. Eight memoranda of understanding are expected to be signed during Prince Mohammad's visit this weekend after plans were announced last month for a $10 billion oil refinery in Gwadar where China is building a deepwater port as part of its Belt and Road intitiative. "We would like this economic corridor that is being built and Gwadar to become a hub of trade, energy and economic activity," Qureshi said. Saudi Arabia is also interested in buying two liquefied natural gas-based power plants at Haveli Bahadur Shah and Bhikki which the government is looking to sell as part of a privatization drive, he said. Pakistani Prime Minister Imran Khan was among a handful of world leaders who attended Riyadh's flagship investment conference in October, which was shunned by many companies and governments in protest at Khashoggi's murder. Pakistani newspapers have reported in awe-struck tones on preparations for Prince Mohammad's two-day visit, during which he will be accompanied by a 1,000-strong entourage and five truckloads of effects including his personal gym equipment. Qureshi rejected suggestions that Pakistan had promised its support for the Saudi-backed coalition waging war in Yemen against the Iran-aligned Houthi movement. "There is no such conditionality, there is no attempt to push Pakistan into Yemen," he said.

Pakistan expects eight investment deals during Saudi prince's visit

<a href="http://www.wionews.com/south-asia/saudi-crown-prince-expected-to-seal-multi-billion-dollar-deals-in-pakistan-196969">Pakistan is preparing to welcome Saudi Arabian Crown Prince Mohammed bin Salman </a>for a state visit over the weekend, the foreign ministry confirmed Wednesday, as Islamabad hopes to sign various investment deals to prop up its slumping economy.

The two-day visit will kick off on February 16 and include a raft of high-level talks with Prime Minister Imran Khan along with Pakistan's military chief.

"During his stay, Pakistan and <a href="http://www.wionews.com/india-news/saudi-crown-prince-mohammad-bin-salman-to-visit-india-on-february-19-20-196873">Saudi Arabia </a>will be signing a number of agreements... related to diverse sectors," Pakistan's foreign ministry said in a statement.

"The two countries will also discuss ways and means to develop a robust follow-up mechanism to ensure effective implementation and quick progress on tangible areas of cooperation."

Two five-star hotels have been fully booked by the Saudi delegation while the Kingdom's elite royal guards arrived in Pakistan earlier this week to assist with security arrangements, according to a municipal official in Islamabad. &nbsp;

Riyadh and Islamabad, decades-old allies, have been involved for months in talks to iron out details of the deals in time for the crown prince's visit.

Saudi Arabia is reportedly preparing to sign a record investment package with Pakistan aiming to provide welcome relief for its cash-strapped Muslim ally.&nbsp;

At the heart of the investment is a reported $10-billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor.

The visit comes just weeks after Pakistan rolled out the red carpet for Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan, shortly after the emirate pledged to provide $3 billion to support Pakistan's battered economy.

The Wall Street Journal reported last month that both Saudi Arabia and the United Arab Emirates, Islamabad's biggest trading partner in the Middle East, have offered Pakistani Prime Minister Imran Khan some $30 billion in investment and loans.

Pakistan has been courting its Gulf allies for months as Khan's new government desperately seeks to stave off an ongoing balance of payments crisis and reduce the size of any potential bailout from the International Monetary Fund.

Pakistan is preparing to welcome Saudi Arabian Crown Prince Mohammed bin Salman for a state visit over the weekend, the foreign ministry confirmed Wednesday, as Islamabad hopes to sign various investment deals to prop up its slumping economy.

Pakistan is preparing to welcome Saudi Arabian Crown Prince Mohammed bin Salman for a state visit over the weekend, the foreign ministry confirmed Wednesday, as Islamabad hopes to sign various investment deals to prop up its slumping economy. The two-day visit will kick off on February 16 and include a raft of high-level talks with Prime Minister Imran Khan along with Pakistan's military chief. "During his stay, Pakistan and Saudi Arabia will be signing a number of agreements... related to diverse sectors," Pakistan's foreign ministry said in a statement. "The two countries will also discuss ways and means to develop a robust follow-up mechanism to ensure effective implementation and quick progress on tangible areas of cooperation." Two five-star hotels have been fully booked by the Saudi delegation while the Kingdom's elite royal guards arrived in Pakistan earlier this week to assist with security arrangements, according to a municipal official in Islamabad. Riyadh and Islamabad, decades-old allies, have been involved for months in talks to iron out details of the deals in time for the crown prince's visit. Saudi Arabia is reportedly preparing to sign a record investment package with Pakistan aiming to provide welcome relief for its cash-strapped Muslim ally. At the heart of the investment is a reported $10-billion refinery and oil complex in the strategic Gwadar Port on the Arabian Sea, the ultimate destination for the massive multi-billion dollar China Pakistan Economic Corridor. The visit comes just weeks after Pakistan rolled out the red carpet for Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan, shortly after the emirate pledged to provide $3 billion to support Pakistan's battered economy. The Wall Street Journal reported last month that both Saudi Arabia and the United Arab Emirates, Islamabad's biggest trading partner in the Middle East, have offered Pakistani Prime Minister Imran Khan some $30 billion in investment and loans. Pakistan has been courting its Gulf allies for months as Khan's new government desperately seeks to stave off an ongoing balance of payments crisis and reduce the size of any potential bailout from the International Monetary Fund.

Saudi Crown Prince Mohammed bin Salman to visit cash-strapped Pakistan on February 16

Pakistan has revised its economic growth figures for the last financial year to 5.2 per cent from a previously reported figure of 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said.

The revision of figures reported by the previous government underlines the economic headwinds facing Pakistan which is holding discussions over a possible bailout from the International Monetary Fund.

When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi, it was hailed as the strongest growth in 13 years.

The office, in a statement issued after a meeting of the national accounts committee late on Friday, said gross domestic product in the 2017/18 financial year to June rose 5.22 per cent compared with a previously reported 5.79 per cent.

Growth in the industrial sector was revised to 5.01 per cent from a previously reported 5.8 per cent in the provisional estimate. The biggest change came in the large-scale manufacturing segment, which saw growth revised to 5.01 per cent from 6.13 per cent previously.

In the agriculture sector, growth was revised to 3.7 per cent, from a previous 3.81 per cent, while in services, growth was revised to 5.78 per cent from 6.43 per cent previously. 
Growth in the current year is expected to slow further to 4 per cent this year, according to an IMF forecast from November.

Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistan has revised its economic growth figures for the last financial year to 5.2 per cent from a previously reported figure of 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said.

Pakistan has revised its economic growth figures for the last financial year to 5.2 per cent from a previously reported figure of 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said. The revision of figures reported by the previous government underlines the economic headwinds facing Pakistan which is holding discussions over a possible bailout from the International Monetary Fund. When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi, it was hailed as the strongest growth in 13 years. The office, in a statement issued after a meeting of the national accounts committee late on Friday, said gross domestic product in the 2017/18 financial year to June rose 5.22 per cent compared with a previously reported 5.79 per cent. Growth in the industrial sector was revised to 5.01 per cent from a previously reported 5.8 per cent in the provisional estimate. The biggest change came in the large-scale manufacturing segment, which saw growth revised to 5.01 per cent from 6.13 per cent previously. In the agriculture sector, growth was revised to 3.7 per cent, from a previous 3.81 per cent, while in services, growth was revised to 5.78 per cent from 6.43 per cent previously. Growth in the current year is expected to slow further to 4 per cent this year, according to an IMF forecast from November. Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistan cuts 2017/18 economic growth estimate to 5.2 per cent

Cash-strapped Pakistan is likely to receive investments for development projects, including roads and sewerage plants, worth USD 1.4 billion by the China-led Asian Infrastructure Investment Bank (AIIB), according to a media report.&nbsp;

The Beijing-based AIIB is considering investment in the Karachi Bus Rapid Transit (BRT) project, Rawalpindi's Ring Road project, Lahore Waste Water Management project and Karachi Water and Sewerage Service project among others, the Express Tribune reported on Friday.&nbsp;

"Work on projects amounting to $4 million is in progress while projects worth $1 billion are awaiting approval, Laurel Ostfield, AIIB head of communications, said on Thursday.

Last month, Pakistan said that Saudi Arabia headquartered Islamic Development Bank was providing it with&nbsp;three-year $4.5 billion oil financing facility, which will ease pressure on its balance-of-payments.

Pakistan is also negotiating an $8 billion bailout package from the International Monetary Fund (IMF) to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy.

The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Imran Khan assumed office in August last year and has received financial help to a great extent.

Pakistan's close ally China is already building the $50 billion China-Pakistan Economic Corridor.&nbsp;

Launched in 2015, CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea.

Ostfield said the AIIB desired to launch even more development projects in Pakistan in the future.&nbsp;

Currently, the AIIB is considering investing in the $100-million Karachi Bus Rapid Transit project, she said.

Ostfield said that Asia needs connectivity and investment from the private sector and the AIIB, for the first time, is presenting its report in Pakistan.

"We are focusing on eight markets including Pakistan,"&nbsp;she said, adding the AIIB runs the projects on merit without any discrimination among member states.&nbsp;

"No economy can develop without making an investment in infrastructure,"&nbsp;Ostfield stated.&nbsp; 
 
Noting that AIIB was also looking into projects related to renewable energy, she said, "Pakistan holds immense potential in power produced from hydel sources. Pakistan incurs a higher cost on road construction."

"We must have our focus on environment-friendly projects,"&nbsp;she said.

She said strong infrastructure and cross-border mobility were among top priorities of the Asian infrastructure bank.&nbsp;

Cash-strapped Pakistan is likely to receive investments for development projects, including roads and sewerage plants, worth USD 1.4 billion by the China-led Asian Infrastructure Investment Bank (AIIB), according to a media report.

Cash-strapped Pakistan is likely to receive investments for development projects, including roads and sewerage plants, worth USD 1.4 billion by the China-led Asian Infrastructure Investment Bank (AIIB), according to a media report. The Beijing-based AIIB is considering investment in the Karachi Bus Rapid Transit (BRT) project, Rawalpindi's Ring Road project, Lahore Waste Water Management project and Karachi Water and Sewerage Service project among others, the Express Tribune reported on Friday. "Work on projects amounting to $4 million is in progress while projects worth $1 billion are awaiting approval, Laurel Ostfield, AIIB head of communications, said on Thursday. Last month, Pakistan said that Saudi Arabia headquartered Islamic Development Bank was providing it with three-year $4.5 billion oil financing facility, which will ease pressure on its balance-of-payments. Pakistan is also negotiating an $8 billion bailout package from the International Monetary Fund (IMF) to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy. The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, China and the UAE since Prime Minister Imran Khan assumed office in August last year and has received financial help to a great extent. Pakistan's close ally China is already building the $50 billion China-Pakistan Economic Corridor. Launched in 2015, CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea. Ostfield said the AIIB desired to launch even more development projects in Pakistan in the future. Currently, the AIIB is considering investing in the $100-million Karachi Bus Rapid Transit project, she said. Ostfield said that Asia needs connectivity and investment from the private sector and the AIIB, for the first time, is presenting its report in Pakistan. "We are focusing on eight markets including Pakistan," she said, adding the AIIB runs the projects on merit without any discrimination among member states. "No economy can develop without making an investment in infrastructure," Ostfield stated. Noting that AIIB was also looking into projects related to renewable energy, she said, "Pakistan holds immense potential in power produced from hydel sources. Pakistan incurs a higher cost on road construction." "We must have our focus on environment-friendly projects," she said. She said strong infrastructure and cross-border mobility were among top priorities of the Asian infrastructure bank.

China-led AIIB likely to invest $1.4 billion for development projects in Pakistan

China on Friday skirted direct response if it would provide a bailout loan to its all-weather ally Pakistan to tide over the present balance of payment of crisis.&nbsp;

Pakistan's Finance Minister Asad Umar on Thursday told reporters in Islamabad that after the support from Saudi Arabia and the UAE, an economic support package had been finalised with China and the government was expecting financial assistance from Beijing within next few days.&nbsp;

When asked for her reaction to Asad's comments, Chinese Foreign Ministry spokesperson Hua Chunying told a media briefing that she has no specific information on the loan.

"As you know, China and Pakistan are all-weather strategic cooperative partners. China has always provided support and assistance to Pakistan's economic and social development within its capacity. We support Pakistan in taking active measures to cope with and tide over the immediate and temporary difficulties," she said.

"As for the specific issues you mentioned, I don't have the relevant information," Hua said.

Pakistan has received $1 billion each from Saudi Arabia and the UAE as part of the bailout package by the two Gulf nations to help shore up Islamabad's dwindling foreign currency reserves.

The kingdom has already deposited $2 billion, in two tranche, in the State Bank of Pakistan.

Earlier, reports said that China has agreed to provide&nbsp;two billion dollars after prolonged talks between the two countries.

Pakistan is nearly broke with the drying up of foreign cash reserves and mounting external debt.

To stave off the crisis, Islamabad has turned to Saudi Arabia and its greatest ally China. Prime Minister Imran Khan last year travelled to Riyadh and Beijing to seek loans. While Khan managed to secure a loan of $6 billion from Riyadh, it is not known if China has made any commitment to Pakistan after publicly vowing to help the country "tide over" the crisis.

Beijing on earlier occasions had issue loans to Pakistan, a scenario, experts fear, might compromise Islamabad's sovereignty.

According to the SBP, Pakistan's foreign currency reserves dropped to a 57-month low of $6.63 billion as of January 18, 2019. With these reserves, Pakistan can hardly cover one-and-a-half-month of imports. The reserves have continued to drop for the last two years due to the country's high foreign expenditure and low income, which is better known as the current account deficit.

The deficit was recorded at $8 billion in the first half (July-December) of the current fiscal year 2018-19, which was slightly lower than $8.4 billion in the same period of previous year.

This assistance has improved Pakistan's position in terms of import payments and debt repayment in the short term.

Pakistan has also sought a bailout package from the International Monetary Fund (IMF) which wants Islamabad to disclose the financial details of the

Beijing-funded China-Pakistan Economic Corridor for providing the assistance.

Experts say that the Chinese have pushed Pakistan into heavy debt through the CPEC, a charge denied by Beijing.

Umar earlier said that Pakistan faced a total of $27 billion deficit which include $nine billion debt repayment for this year.

China on Friday skirted direct response if it would provide a bailout loan to its all-weather ally Pakistan to tide over the present balance of payment of crisis.

China on Friday skirted direct response if it would provide a bailout loan to its all-weather ally Pakistan to tide over the present balance of payment of crisis. Pakistan's Finance Minister Asad Umar on Thursday told reporters in Islamabad that after the support from Saudi Arabia and the UAE, an economic support package had been finalised with China and the government was expecting financial assistance from Beijing within next few days. When asked for her reaction to Asad's comments, Chinese Foreign Ministry spokesperson Hua Chunying told a media briefing that she has no specific information on the loan. "As you know, China and Pakistan are all-weather strategic cooperative partners. China has always provided support and assistance to Pakistan's economic and social development within its capacity. We support Pakistan in taking active measures to cope with and tide over the immediate and temporary difficulties," she said. "As for the specific issues you mentioned, I don't have the relevant information," Hua said. Pakistan has received $1 billion each from Saudi Arabia and the UAE as part of the bailout package by the two Gulf nations to help shore up Islamabad's dwindling foreign currency reserves. The kingdom has already deposited $2 billion, in two tranche, in the State Bank of Pakistan. Earlier, reports said that China has agreed to provide two billion dollars after prolonged talks between the two countries. Pakistan is nearly broke with the drying up of foreign cash reserves and mounting external debt. To stave off the crisis, Islamabad has turned to Saudi Arabia and its greatest ally China. Prime Minister Imran Khan last year travelled to Riyadh and Beijing to seek loans. While Khan managed to secure a loan of $6 billion from Riyadh, it is not known if China has made any commitment to Pakistan after publicly vowing to help the country "tide over" the crisis. Beijing on earlier occasions had issue loans to Pakistan, a scenario, experts fear, might compromise Islamabad's sovereignty. According to the SBP, Pakistan's foreign currency reserves dropped to a 57-month low of $6.63 billion as of January 18, 2019. With these reserves, Pakistan can hardly cover one-and-a-half-month of imports. The reserves have continued to drop for the last two years due to the country's high foreign expenditure and low income, which is better known as the current account deficit. The deficit was recorded at $8 billion in the first half (July-December) of the current fiscal year 2018-19, which was slightly lower than $8.4 billion in the same period of previous year. This assistance has improved Pakistan's position in terms of import payments and debt repayment in the short term. Pakistan has also sought a bailout package from the International Monetary Fund (IMF) which wants Islamabad to disclose the financial details of the Beijing-funded China-Pakistan Economic Corridor for providing the assistance. Experts say that the Chinese have pushed Pakistan into heavy debt through the CPEC, a charge denied by Beijing. Umar earlier said that Pakistan faced a total of $27 billion deficit which include $nine billion debt repayment for this year.

After Saudi Arabia and UAE, China finalises support package to Pakistan: Finance Minister Asad Umar

Asserting that India has been and will remain a long-term partner of Afghanistan, the Afghan finance minister has said that Kabul has no secret deal with New Delhi, while hoping that it can have a similar relationship with Pakistan.

"India has been a traditional and long-term partner of Afghanistan spanning over a couple of millennia more. Culturally, commercially in so many things, we have so much common heritage, so many common elements. They have been a long-term partner. They will remain a long-term partner," Afghan Finance Minister Mohammad Humayon Qayoumi told a Washington audience this week.

"Afghanistan has no secret deals with India. All of the relationship that we have is based on trust, based on two countries, based on two sovereign governments, two people that have a long history," he said, responding to a question at the School of Advanced International Studies of the Johns Hopkins University.

India and Afghanistan will continue to have strong cultural, educational ties as well as commercial ties, he said.

"Our hope is that we have a similar relationship with Pakistan. But I think it's Pakistan that has to decide what they would like to do as part of it in where they would like to be," the Afghan finance minister said early this week.

Noting that Pakistan has the sixth largest population in the world, yet, he said, it has an economy smaller than Israel. So, the conflict is not in the interest of Pakistan, he said.

For the betterment of the people of Pakistan, he said it would be helpful for Pakistan to have closer linkages and ties with India and Central Asia as a whole.

He said the South Asia region is ripe for being a very functioning economic ecosystem but right now it is the least integrated region of the world economically. "It's not helping anyone," Qayoumi said.

"We hope Pakistan can really see that as a way on how we can work together as a region, as equals, as sovereign nations, but also as a region that can have a future together successfully where economically and politically all areas can work together," he said.&nbsp;

Asserting that India has been and will remain a long-term partner of Afghanistan, the Afghan finance minister has said that Kabul has no secret deal with New Delhi, while hoping that it can have a similar relationship with Pakistan.

Asserting that India has been and will remain a long-term partner of Afghanistan, the Afghan finance minister has said that Kabul has no secret deal with New Delhi, while hoping that it can have a similar relationship with Pakistan. "India has been a traditional and long-term partner of Afghanistan spanning over a couple of millennia more. Culturally, commercially in so many things, we have so much common heritage, so many common elements. They have been a long-term partner. They will remain a long-term partner," Afghan Finance Minister Mohammad Humayon Qayoumi told a Washington audience this week. "Afghanistan has no secret deals with India. All of the relationship that we have is based on trust, based on two countries, based on two sovereign governments, two people that have a long history," he said, responding to a question at the School of Advanced International Studies of the Johns Hopkins University. India and Afghanistan will continue to have strong cultural, educational ties as well as commercial ties, he said. "Our hope is that we have a similar relationship with Pakistan. But I think it's Pakistan that has to decide what they would like to do as part of it in where they would like to be," the Afghan finance minister said early this week. Noting that Pakistan has the sixth largest population in the world, yet, he said, it has an economy smaller than Israel. So, the conflict is not in the interest of Pakistan, he said. For the betterment of the people of Pakistan, he said it would be helpful for Pakistan to have closer linkages and ties with India and Central Asia as a whole. He said the South Asia region is ripe for being a very functioning economic ecosystem but right now it is the least integrated region of the world economically. "It's not helping anyone," Qayoumi said. "We hope Pakistan can really see that as a way on how we can work together as a region, as equals, as sovereign nations, but also as a region that can have a future together successfully where economically and politically all areas can work together," he said.

India has been and will remain long-term partner: Afghan finance minister

Pakistan Prime Minister Imran Khan is on a five-day official visit to China even as the country is rocked by protest over the&nbsp;acquittal of Christian woman, Asia Bibi, in&nbsp;blasphemy charges. Khan's official visit to China is aimed at amassing bail out package for Pakistan whose economy is on the brink of collapse.

Khan inherited a near-bankrupt economy when he took over as prime minister in&nbsp;August.

Gross mismanagement of the economy compounded by massive corruption over the years has left the country with a humongous debt burden.

Pakistan currently owes nearly a $ 100 billion to the world, out of which $ 19 billion to China alone -- mainly due to the projects commissioned under China-Pakistan Economic Corridor or CPEC.

On top of this crushing burden of foreign debt, there is a whopping current account deficit of $16 billion.&nbsp;

Currency reserves are down to a meagre $10 billion, or even less. It's barely enough to pay for two months of imports.

The Pakistani rupee has plunged by over 25 per cent. It's&nbsp;currently hovering around 133 rupees to a dollar.

Adding to this is the condition of Pakistan government run corporations which are also bleeding.

State-owned Pakistan International Airlines (PIA), once the pride of Pakistan as a profitable airline, has a cumulative debt of 360 billion rupees.&nbsp;

The country's power sector is caught in a circular debt trap worth over 1200 million rupees.

The situation is turning worse each day and Khan does not have much time as loan after loan comes up for interest payment.&nbsp;

Pakistan is also aware that a bailout from IMF will come with tough conditions.&nbsp;

Khan who spoke vociferously against seeking foreign monetary aid in his election campaign chose to embrace Saudi Arabia from where he received 6 billion dollars upon his return from Riyadh.&nbsp;

Khan is most likely to get a bailout package during his five-day visit to China.&nbsp;

Pakistan Prime Minister Imran Khan is on a five-day official visit to China even as the country is rocked by protest over the acquittal of Christian woman, Asia Bibi, in blasphemy charges.

Pakistan Prime Minister Imran Khan is on a five-day official visit to China even as the country is rocked by protest over the acquittal of Christian woman, Asia Bibi, in blasphemy charges. Khan's official visit to China is aimed at amassing bail out package for Pakistan whose economy is on the brink of collapse. Khan inherited a near-bankrupt economy when he took over as prime minister in August. Gross mismanagement of the economy compounded by massive corruption over the years has left the country with a humongous debt burden. Pakistan currently owes nearly a $ 100 billion to the world, out of which $ 19 billion to China alone -- mainly due to the projects commissioned under China-Pakistan Economic Corridor or CPEC. On top of this crushing burden of foreign debt, there is a whopping current account deficit of $16 billion. Currency reserves are down to a meagre $10 billion, or even less. It's barely enough to pay for two months of imports. The Pakistani rupee has plunged by over 25 per cent. It's currently hovering around 133 rupees to a dollar. Adding to this is the condition of Pakistan government run corporations which are also bleeding. State-owned Pakistan International Airlines (PIA), once the pride of Pakistan as a profitable airline, has a cumulative debt of 360 billion rupees. The country's power sector is caught in a circular debt trap worth over 1200 million rupees. The situation is turning worse each day and Khan does not have much time as loan after loan comes up for interest payment. Pakistan is also aware that a bailout from IMF will come with tough conditions. Khan who spoke vociferously against seeking foreign monetary aid in his election campaign chose to embrace Saudi Arabia from where he received 6 billion dollars upon his return from Riyadh. Khan is most likely to get a bailout package during his five-day visit to China.

Imran Khan arrives in China seeking help to save Pakistan's shrinking economy

It took rickshaw driver Mohammad Rasheed a year to save 300 rupees to buy his daughter a bike, so when he found three billion rupees ($22.5 million) had passed through an unused bank account in his name, he was stunned ... and scared.

"I started sweating and shivering," said the 43-year-old &nbsp;-- just the latest victim of a money laundering scheme that Pakistan's new prime minister, Imran Khan, has vowed to crush.

When he got a call from the Federal Investigation Agency, Rasheed's first inclination was to go into hiding, but friends and family members finally convinced him to cooperate with officials. &nbsp;

His case mirrors dozens of similar stories in recent weeks that have filled newspapers in Pakistan and riled a populace long accustomed to extravagant tales of corruption and theft.

The incidents follow a similar arc -- bank accounts in poor residents' names are flooded with cash, then suddenly emptied in a laundering scheme that has likely seen hundreds of millions of dollars moved out of the country.

Rasheed's name was eventually cleared, but his anxiety remained.

"I stopped driving my rented rickshaw on the roads because of the fear that some other investigating agencies might pick me up," he said.&nbsp;

"My wife fell sick because of the tension."

Only weeks before the fiasco he had finally been able to buy a 300-rupee bike with worn tyres for his daughter -- the fruit of a year's careful saving.

'Stolen money'

The revelation of the laundering frenzy comes as the newly elected Khan has vowed to squash rampant corruption and recover billions syphoned from the country as his government scrambles to shore up Pakistan's deteriorating finances.

"This is your stolen money," said the former cricketer during a televised address to the nation Wednesday.&nbsp;

"It was stolen on public contracts... and transferred into these accounts, then laundered abroad.

"I will spare no corrupt man in this country," he promised.

But for victims like Mohammad Qadir the damage has already been done. &nbsp;

"I have never even seen a bank from the inside," said the 52-year-old ice cream vendor.

Transactions were nevertheless made in his name for 2.25 billion rupees.

Since news of the incident spread Qadir says he is regularly mocked by his neighbours and also fears being kidnapped by criminal elements who believe he has billions of rupees to spare for hefty ransoms.

"He is a penniless billionaire," one of Qadir's acquaintances laughed while driving past his ice cream cart in the Karachi slum of Orangi town.

"People make fun of me, but I ended up with nothing at all from this situation," said Qadir. "It is such a tragedy."

Sarwat Zehra, a 56-year-old official, says she has suffered from high-blood pressure after being handed a bill for 13 million rupees in back taxes.

"I was told that a company had illegally passed 14 or 15 billion rupees through my account," she said.

Pakistan's poor have long been used as fronts for the elite to dodge taxes and hide assets.

But the scale of the bank account scheme is unprecedented, with authorities pointing the finger at some of Karachi's wealthiest power brokers including figures with links to former president Asif Zardari.

'Blacklist'

In September, Pakistan's Supreme Court established a commission to investigate the scourge, finding that at least 400 million dollars had passed through "thousands of false accounts", using the names of impoverished people.

Some 600 companies and individuals "are associated with the scandal", the commission concluded.

It is all the more embarrassing for Khan as his administration scrambles to secure billions of dollars in foreign financial assistance, while also entering talks with the International Monetary Fund for a potential bailout amid a widening balance of payment crisis. &nbsp;

The brazen laundering schemes come as Pakistan was again placed on a watchlist this year by the Financial Action Task Force (FATF) -- an anti money-laundering monitor based in Paris -- for failing to do enough to combat terror financing.

It took rickshaw driver Mohammad Rasheed a year to save 300 rupees to buy his daughter a bike, so when he found three billion rupees ($22.5 million) had passed through an unused bank account in his name, he was stunned .

It took rickshaw driver Mohammad Rasheed a year to save 300 rupees to buy his daughter a bike, so when he found three billion rupees ($22.5 million) had passed through an unused bank account in his name, he was stunned ... and scared. "I started sweating and shivering," said the 43-year-old -- just the latest victim of a money laundering scheme that Pakistan's new prime minister, Imran Khan, has vowed to crush. When he got a call from the Federal Investigation Agency, Rasheed's first inclination was to go into hiding, but friends and family members finally convinced him to cooperate with officials. His case mirrors dozens of similar stories in recent weeks that have filled newspapers in Pakistan and riled a populace long accustomed to extravagant tales of corruption and theft. The incidents follow a similar arc -- bank accounts in poor residents' names are flooded with cash, then suddenly emptied in a laundering scheme that has likely seen hundreds of millions of dollars moved out of the country. Rasheed's name was eventually cleared, but his anxiety remained. "I stopped driving my rented rickshaw on the roads because of the fear that some other investigating agencies might pick me up," he said. "My wife fell sick because of the tension." Only weeks before the fiasco he had finally been able to buy a 300-rupee bike with worn tyres for his daughter -- the fruit of a year's careful saving. 'Stolen money' The revelation of the laundering frenzy comes as the newly elected Khan has vowed to squash rampant corruption and recover billions syphoned from the country as his government scrambles to shore up Pakistan's deteriorating finances. "This is your stolen money," said the former cricketer during a televised address to the nation Wednesday. "It was stolen on public contracts... and transferred into these accounts, then laundered abroad. "I will spare no corrupt man in this country," he promised. But for victims like Mohammad Qadir the damage has already been done. "I have never even seen a bank from the inside," said the 52-year-old ice cream vendor. Transactions were nevertheless made in his name for 2.25 billion rupees. Since news of the incident spread Qadir says he is regularly mocked by his neighbours and also fears being kidnapped by criminal elements who believe he has billions of rupees to spare for hefty ransoms. "He is a penniless billionaire," one of Qadir's acquaintances laughed while driving past his ice cream cart in the Karachi slum of Orangi town. "People make fun of me, but I ended up with nothing at all from this situation," said Qadir. "It is such a tragedy." Sarwat Zehra, a 56-year-old official, says she has suffered from high-blood pressure after being handed a bill for 13 million rupees in back taxes. "I was told that a company had illegally passed 14 or 15 billion rupees through my account," she said. Pakistan's poor have long been used as fronts for the elite to dodge taxes and hide assets. But the scale of the bank account scheme is unprecedented, with authorities pointing the finger at some of Karachi's wealthiest power brokers including figures with links to former president Asif Zardari. 'Blacklist' In September, Pakistan's Supreme Court established a commission to investigate the scourge, finding that at least 400 million dollars had passed through "thousands of false accounts", using the names of impoverished people. Some 600 companies and individuals "are associated with the scandal", the commission concluded. It is all the more embarrassing for Khan as his administration scrambles to secure billions of dollars in foreign financial assistance, while also entering talks with the International Monetary Fund for a potential bailout amid a widening balance of payment crisis. The brazen laundering schemes come as Pakistan was again placed on a watchlist this year by the Financial Action Task Force (FATF) -- an anti money-laundering monitor based in Paris -- for failing to do enough to combat terror financing.

Pakistan's 'penniless billionaires' expose money laundering frenzy

Pakistan's finance minister promised Saturday to end the country's reliance on International Monetary Fund bailouts to shore up its shaky economy, as officials prepare to negotiate a new loan.

Asad Umar's pledge comes days after Pakistan's central bank warned inflation could double in the coming year -- hitting 7.5 per cent -- while the country’s growth target rate of 6.2 per cent would likely be missed.

"This will be the 13th and the last IMF programme," Umar said during a speech at the Karachi Stock Exchange.

Prime Minister Imran Khan's administration has sent mixed messages over whether Pakistan will enter another IMF programme, with the former cricketer suggesting this week that going to the fund may not be necessary.

But Umar spoke in grave terms of the country's balance of payment crisis, which has sparked a depreciation of the rupee and sent stocks tumbling.

"We are heading towards bankruptcy very fast. We have to save the 210 million Pakistanis," Umar added.&nbsp;

An IMF team is set to arrive in Pakistan in early November to begin negotiations.

Similar vows to end reliance on IMF loans have been made by past governments including former premier Nawaz Sharif's administration, which received a $6.6 billion loan to tackle a similar crisis in 2013.

Khan's new administration took office in August vowing to weigh up whether to seek an IMF bailout as it sought other avenues of financing, including from "friendly" countries such as China and Saudi Arabia.

But aid has been in short supply and economists' warnings have grown urgent.

The government also announced this week that Khan would attend a controversial Saudi Arabian investment summit in the coming days.

The meeting has been shunned by leading policy-makers and corporate chiefs in response to the death of journalist Jamal Khashoggi at the Saudi consulate in Istanbul -- a scandal that has tipped Riyadh into a diplomatic crisis. 
 
&nbsp;

Pakistan's finance minister promised Saturday to end the country's reliance on International Monetary Fund bailouts to shore up its shaky economy, as officials prepare to negotiate a new loan.

Pakistan's finance minister promised Saturday to end the country's reliance on International Monetary Fund bailouts to shore up its shaky economy, as officials prepare to negotiate a new loan. Asad Umar's pledge comes days after Pakistan's central bank warned inflation could double in the coming year -- hitting 7.5 per cent -- while the country’s growth target rate of 6.2 per cent would likely be missed. "This will be the 13th and the last IMF programme," Umar said during a speech at the Karachi Stock Exchange. Prime Minister Imran Khan's administration has sent mixed messages over whether Pakistan will enter another IMF programme, with the former cricketer suggesting this week that going to the fund may not be necessary. But Umar spoke in grave terms of the country's balance of payment crisis, which has sparked a depreciation of the rupee and sent stocks tumbling. "We are heading towards bankruptcy very fast. We have to save the 210 million Pakistanis," Umar added. An IMF team is set to arrive in Pakistan in early November to begin negotiations. Similar vows to end reliance on IMF loans have been made by past governments including former premier Nawaz Sharif's administration, which received a $6.6 billion loan to tackle a similar crisis in 2013. Khan's new administration took office in August vowing to weigh up whether to seek an IMF bailout as it sought other avenues of financing, including from "friendly" countries such as China and Saudi Arabia. But aid has been in short supply and economists' warnings have grown urgent. The government also announced this week that Khan would attend a controversial Saudi Arabian investment summit in the coming days. The meeting has been shunned by leading policy-makers and corporate chiefs in response to the death of journalist Jamal Khashoggi at the Saudi consulate in Istanbul -- a scandal that has tipped Riyadh into a diplomatic crisis.

Next IMF loan will be 'the last': Pakistan finance minister

Shah Nawaz walks Karachi&#39;s dusty streets,&nbsp;one of thousands in the financial hub who are being fed by charities as Pakistan&#39;s economy picks up pace -- but, some say, not fast enough for its poverty-stricken millions.

Confidence in Pakistan is growing, with the International Monetary Fund claiming in October that the country has emerged from crisis and stabilised its economy after completing a bailout programme.&nbsp;

Its credit rating has improved, while there are encouraging signs of foreign investment, such as a massive Chinese infrastructure project officials routinely call a &quot;gamechanger&quot;.&nbsp;

But all this glittering promise has yet to feed millions like Nawaz.

The 14-year-old stands waiting with more than 100 others outside the Saylani Welfare building to receive free meals twice a day for his family.

He dropped out of school four years ago, when Pakistan&#39;s GDP still hovered around a weak three percent, as his family struggled to survive on his father&#39;s meagre part-time wage of 250 rupees ($2.30) a day.&nbsp;

&quot;I have immense passion for my studies and want to become a prosperous man, but I can&#39;t,&quot; he tells AFP.&nbsp;

His despair resonates throughout Pakistan, where a new central bank report says 60.6 per cent of the population do not have access to cooking fuel, half of all children are deprived of a basic education, and a third of Pakistanis have no access to a primary medical facility.

&quot;The number of people coming to our centres is growing, and they are not beggars but poor people who are not able to make ends meet,&quot; Aamir Saylani, one of the charity&#39;s officials, told AFP.

Prime Minister Nawaz Sharif vowed to boost the long-depressed economy after winning a third term in 2013.

The key challenge Sharif faced was a chronic energy crisis, as power outages shut down factories and bring businesses to a virtual standstill daily.

He approved more than a dozen coal, hydro, gas and combined cycle power generation plants, most due to begin generating electricity by mid-2017.&nbsp;

Meanwhile his advisers negotiated a three-year extended fund facility with the IMF to raise $6.4 billion. That, coupled with remittances from Pakistanis overseas, have taken foreign exchange reserves to an estimated $22 billion, from $3 billion in 2008.

In the 2015/2016 fiscal year the economy grew 4.7 percent, while inflation was at a low of 3.8 percent and interest rates down at 5.75 percent.

Encouraged -- and undeterred by domestic debt of $182 billion -- Islamabad set an ambitious yearly growth target of 5.7 percent for 2016/2017. The World Bank predicted 5.4 percent growth by 2018.

Grinding poverty

But independent economists doubt the growth is sustainable.&nbsp;

&quot;You were on artificial support, and it will be a real litmus test for the government once the IMF facility is over,&quot; said Abid Suleri, who heads the Sustainable Development Policy Institute in Islamabad.

It would take sustained growth of around six percent for five successive years to make a real dent in poverty, said Mohammad Sabir, a senior economist at the Social Policy and Development Centre (SPDC) in Karachi.

Hopes are pinned on the China-Pakistan Economic Corridor (CPEC), a $46 billion initiative by Beijing that aims to link the Asian superpower&#39;s Xinjiang region with the Arabian Sea through Pakistan.

The plan encompasses a series of infrastructure, power and transport upgrades that Islamabad hopes will kickstart the economy.

But experts say the deal is opaque, and much more transparency is needed before they can assess any impact for Pakistan -- including, for example, whether the $46 billion is an investment or a loan.

&quot;If it is a loan, it would severely hamper the future foreign payment capability of the country,&quot; warned Sabir. Foreign debt remains around $73 billion, just over a quarter of GDP, the central bank says.

Werner Liepach, Pakistan country director for the Asian Development Bank, told AFP it was &quot;much too early to tell&quot; what effect CPEC would have.

However given the challenging global context, &quot;contrary to what many believe, Pakistan is actually doing quite well&quot;, he said.

&quot;The benefits of growth in Pakistan are actually more widespread... as compared to many other developing countries that may show higher levels of growth, but with greater inequality.&quot;

Nevertheless there is room to improve, he added.

Meanwhile, Pakistanis like Shah Nawaz still struggle.&nbsp;Days after speaking to AFP, the building housing the charity providing food for his family was flattened in an operation targeting illegal settlements on government land.

(AFP)

Poverty remains deep-set in the country despite improvement in credit rating and encouraging signs of foreign investment

Shah Nawaz walks Karachi's dusty streets, one of thousands in the financial hub who are being fed by charities as Pakistan's economy picks up pace -- but, some say, not fast enough for its poverty-stricken millions. Confidence in Pakistan is growing, with the International Monetary Fund claiming in October that the country has emerged from crisis and stabilised its economy after completing a bailout programme. Its credit rating has improved, while there are encouraging signs of foreign investment, such as a massive Chinese infrastructure project officials routinely call a "gamechanger". But all this glittering promise has yet to feed millions like Nawaz. The 14-year-old stands waiting with more than 100 others outside the Saylani Welfare building to receive free meals twice a day for his family. He dropped out of school four years ago, when Pakistan's GDP still hovered around a weak three percent, as his family struggled to survive on his father's meagre part-time wage of 250 rupees ($2.30) a day. "I have immense passion for my studies and want to become a prosperous man, but I can't," he tells AFP. His despair resonates throughout Pakistan, where a new central bank report says 60.6 per cent of the population do not have access to cooking fuel, half of all children are deprived of a basic education, and a third of Pakistanis have no access to a primary medical facility. "The number of people coming to our centres is growing, and they are not beggars but poor people who are not able to make ends meet," Aamir Saylani, one of the charity's officials, told AFP. Prime Minister Nawaz Sharif vowed to boost the long-depressed economy after winning a third term in 2013. The key challenge Sharif faced was a chronic energy crisis, as power outages shut down factories and bring businesses to a virtual standstill daily. He approved more than a dozen coal, hydro, gas and combined cycle power generation plants, most due to begin generating electricity by mid-2017. Meanwhile his advisers negotiated a three-year extended fund facility with the IMF to raise $6.4 billion. That, coupled with remittances from Pakistanis overseas, have taken foreign exchange reserves to an estimated $22 billion, from $3 billion in 2008. In the 2015/2016 fiscal year the economy grew 4.7 percent, while inflation was at a low of 3.8 percent and interest rates down at 5.75 percent. Encouraged -- and undeterred by domestic debt of $182 billion -- Islamabad set an ambitious yearly growth target of 5.7 percent for 2016/2017. The World Bank predicted 5.4 percent growth by 2018. Grinding poverty But independent economists doubt the growth is sustainable. "You were on artificial support, and it will be a real litmus test for the government once the IMF facility is over," said Abid Suleri, who heads the Sustainable Development Policy Institute in Islamabad. It would take sustained growth of around six percent for five successive years to make a real dent in poverty, said Mohammad Sabir, a senior economist at the Social Policy and Development Centre (SPDC) in Karachi. Hopes are pinned on the China-Pakistan Economic Corridor (CPEC), a $46 billion initiative by Beijing that aims to link the Asian superpower's Xinjiang region with the Arabian Sea through Pakistan. The plan encompasses a series of infrastructure, power and transport upgrades that Islamabad hopes will kickstart the economy. But experts say the deal is opaque, and much more transparency is needed before they can assess any impact for Pakistan -- including, for example, whether the $46 billion is an investment or a loan. "If it is a loan, it would severely hamper the future foreign payment capability of the country," warned Sabir. Foreign debt remains around $73 billion, just over a quarter of GDP, the central bank says. Werner Liepach, Pakistan country director for the Asian Development Bank, told AFP it was "much too early to tell" what effect CPEC would have. However given the challenging global context, "contrary to what many believe, Pakistan is actually doing quite well", he said. "The benefits of growth in Pakistan are actually more widespread... as compared to many other developing countries that may show higher levels of growth, but with greater inequality." Nevertheless there is room to improve, he added. Meanwhile, Pakistanis like Shah Nawaz still struggle. Days after speaking to AFP, the building housing the charity providing food for his family was flattened in an operation targeting illegal settlements on government land. (AFP)

Pakistan's economy on upswing, but pace remains sluggish

Pakistan&#39;s education budget has doubled in recent years, to almost as much as the military&#39;s, but literacy and dropout rates remain abysmal and &quot;ghost schools&quot; persist, a new report said. 
 
A staggering 24 million children are not in school and more than half of eight-year-olds cannot read despite the budget growing twofold to $7.5 billion in the last six years, the report from the US-based Wilson Center released on Thursday found. 
 
Pakistan&#39;s poor report card comes even as the number of so-called ghost schools, which receive funding but have no teachers or students, has declined in some areas. 
 
Nationwide there were fewer ghost schools than in the early 2000s when up to 20 per cent of all schools across the country were empty, the study called &quot;Pakistan&#39;s Education Crisis: The Real Story&quot; said. 
 
The United States, Britain and the World Bank have poured money into Pakistan&#39;s stagnating public education sector, seen as a key weapon against religious extremism and rising income inequality. 
 
But the number of children out of school today is second only to Nigeria, and the South Asian country of about 200 million people has an adult literacy rate of 56.4 per cent as many parents see little use in putting their children in school, the report added. 
 
It found that although combined spending in the public and private education sectors was above four per cent -- the globally accepted benchmark for education spending -- money was not being spent wisely. 
 
&quot;Pakistan&#39;s education crisis does not come down to how much the country spends, but how the money is spent,&quot; said report author Nadia Naviwala. 
 
&quot;Pakistan needs to spend better, not simply spend more.&quot; 
 
She added education spending was almost on a par with the powerful military, which has a budget of $8.2 billion for 2016. 
 
The study registered that there had been improvements despite some setbacks. 
 
In Punjab, the country&#39;s most populous province, teacher absenteeism dropped from 20 per cent to six per cent between 2010 and 2015. 
 
But the rise in funding -- mainly spent on salary boosts for teachers -- has had little effect. 
 
In Sindh province, standardised test scores of fifth and sixth graders, or children aged 10 and 11, showed zero improvement between 2012 and 2014. Improvements in other provinces were also marginal. 
 
Britain&#39;s development agency is the primary donor, giving $150 million in 2016, or about two per cent of Pakistan&#39;s overall education budget. 
 
(AFP)

24 million Pakistani children are not in school and more than half of eight-year-olds cannot read despite the country's $7.5 billion budget

Pakistan's education budget has doubled in recent years, to almost as much as the military's, but literacy and dropout rates remain abysmal and "ghost schools" persist, a new report said. A staggering 24 million children are not in school and more than half of eight-year-olds cannot read despite the budget growing twofold to $7.5 billion in the last six years, the report from the US-based Wilson Center released on Thursday found. Pakistan's poor report card comes even as the number of so-called ghost schools, which receive funding but have no teachers or students, has declined in some areas. Nationwide there were fewer ghost schools than in the early 2000s when up to 20 per cent of all schools across the country were empty, the study called "Pakistan's Education Crisis: The Real Story" said. The United States, Britain and the World Bank have poured money into Pakistan's stagnating public education sector, seen as a key weapon against religious extremism and rising income inequality. But the number of children out of school today is second only to Nigeria, and the South Asian country of about 200 million people has an adult literacy rate of 56.4 per cent as many parents see little use in putting their children in school, the report added. It found that although combined spending in the public and private education sectors was above four per cent -- the globally accepted benchmark for education spending -- money was not being spent wisely. "Pakistan's education crisis does not come down to how much the country spends, but how the money is spent," said report author Nadia Naviwala. "Pakistan needs to spend better, not simply spend more." She added education spending was almost on a par with the powerful military, which has a budget of $8.2 billion for 2016. The study registered that there had been improvements despite some setbacks. In Punjab, the country's most populous province, teacher absenteeism dropped from 20 per cent to six per cent between 2010 and 2015. But the rise in funding -- mainly spent on salary boosts for teachers -- has had little effect. In Sindh province, standardised test scores of fifth and sixth graders, or children aged 10 and 11, showed zero improvement between 2012 and 2014. Improvements in other provinces were also marginal. Britain's development agency is the primary donor, giving $150 million in 2016, or about two per cent of Pakistan's overall education budget. (AFP)

'Ghost schools' haunt Pakistan despite budget boost