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IMF mission arrives in Pakistan to conduct reviews of $8.4 billion loan programsÌę

IMF mission arrives in Pakistan to conduct reviews of $8.4 billion loan programsÌę
The seal for the International Monetary Fund is seen near the World Bank headquarters (R) in Washington, DC. (AFP/ file)
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Updated 3 min 22 sec ago

IMF mission arrives in Pakistan to conduct reviews of $8.4 billion loan programsÌę

IMF mission arrives in Pakistan to conduct reviews of $8.4 billion loan programsÌę
  • IMF mission to hold second review of $7 billion loan, first review of $1.4 billion climate resilience fund
  • Analysts expect IMF will revise down Pakistan’s tax collection, growth targets due to catastrophic floods

KARACHI: An International Monetary Fund (IMF) mission has arrived in Pakistan to hold the second review of its $7 billion External Fund Facility (EFF) and first review of the $1.4 billion Resilience and Sustainability Facility (RSF) loan programs for the country, an official of the global lender confirmed on Thursday.Ìę

The IMF approved a $7 billion bailout package for Pakistan under its EFF program in September last year. In May 2025, it approved a separate $1.4 billion loan to Pakistan under its climate resilience fund. The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters.Ìę

The mission arrives in Pakistan a day after Prime Minister Shehbaz Sharif met the fund’s Managing Director Kristalina Georgieva in New York on the sidelines of the ongoing United Nations’ General Assembly session. During the meeting on Wednesday, Sharif spoke about Pakistan’s progress in fulfilling the IMF program targets but also demanded that the impact of recent floods on Pakistan’s economy “must be factored into the IMF’s review.”

“[The IMF mission will] hold discussions on the second review under the Extended Fund Facility and the first review of the Resilience and Sustainability Facility,” Mahir Binici, the IMF’s resident representative to Pakistan, told Arab News.Ìę

Islamabad has so far received more than $2 billion under the EFF and is expecting a third tranche of $1 billion after the second review concludes successfully.

’A LITTLE BREATHER’

IMF bailout programs have been crucial for cash-strapped Pakistan to keep its fragile economy afloat. Islamabad has had to take painful decisions to secure bailouts from the IMF in the past, such as removing subsidies from food and fuel items.

The IMF’s review takes place as Pakistan reels from a deadly monsoon season, which has killed over 1,000 people since Jun. 26. Unusually heavy rains and excess water released by dams in India since late August caused the country’s breadbasket Punjab province to be hit by floods. At least 134 people were killed while more than 4.5 million people were affected as thousands of acres of farmland were inundated with floodwaters.Ìę

Pakistani financial analysts expect the IMF will grant some concessions to Pakistan by revising down its tax collection, fiscal balance and economic growth targets.
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“We are expecting Pakistan to get a little breather due to the floods,” economist Sana Tawfik said.

The analyst said Pakistan would comfortably meet the international lender’s targets.Ìę
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Shankar Talreja, head of research at brokerage firm Topline Securities Ltd., said the current review will focus on continuing the IMF’s reforms under revised parameters due to the floods. He said the government is expected to keep pushing for privatization of state-owned enterprises and clearing its old backlog of circular debt.
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“The concessions are likely in form of some downward revisions in FBR (Federal Board of Revenue) tax revenue, upward revision in fiscal balance over relief spending and there might a downward adjustment in GDP growth target as well,” Talreja said.Ìę

Pakistan’s government has set its GDP growth target for this fiscal year at 4.2 percent.
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JS Global Capital analyst Muhammad Waqas Ghani said he was “cautiously positive” about Pakistan’s prospects of completing the second review successfully.Ìę
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“The IMF may still insist on additional reforms or stricter compliance on benchmarks, especially if they perceive backsliding,” Ghani said. “That could raise the political cost or put some stress on already fragile sectors.”
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Ghani agreed with Talreja that the IMF may reduce Pakistan’s growth target.

“IMF will obviously examine how flexible the FY26 budget is to absorb emergency spending without derailing fiscal targets,” he noted, adding that damages due to floods were likely to reduce the lender’s growth estimates.
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Tawfik, meanwhile, showed optimism that the lender might consider increasing its climate resilience fund for Pakistan.Ìę

“If they (IMF) can increase the amount ($1.4 billion) of the RSF facility, then maybe that will also be considered,” she said, adding that the decision would depend on the assessment Pakistan makes of the damages inflicted by the floods.Ìę


Father of Pakistani TikTok influencer calls for justice as murder suspect appears in court

Father of Pakistani TikTok influencer calls for justice as murder suspect appears in court
Updated 25 September 2025

Father of Pakistani TikTok influencer calls for justice as murder suspect appears in court

Father of Pakistani TikTok influencer calls for justice as murder suspect appears in court
  • Sana Yousaf, 17, was fatally shot after alleged killer broke into her Islamabad home in JuneÌę
  • Umar Hayat, 22-year-old suspect, has repeatedly denied being involved in Yousaf's murderÌę

ISLAMABAD: The father of a teenage social media influencer who was killed at her family home in Pakistan in June said on Thursday he hopes for a speedy trial of the suspect.

Syed Yousaf Hassan spoke after attending the latest hearing in the case of his daughter, 17-year-old Sana Yousaf, who was fatally shot when her alleged killer broke into the property in Islamabad after she rejected his friendship request.

According to a police report, 22-year-old Umar Hayat fired two shots at the teenager, stole her phone, and then fled. He has denied the charges during the high-profile trial, which began last week.

“I am not fighting this case only to seek justice for my daughter,” Hassan told reporters outside the court. “I want all children who use social media to be protected from the pain my daughter suffered at the hands of a man who killed her. I will pursue this case until my last breath.”

He praised the investigation into his daughter's death and said he hoped the judge would reach a verdict soon.

The June 2 killing drew nationwide condemnation, with many people online demanding harsh punishment for the suspect, who was arrested days after he fled to Faisalabad in Punjab.

Hayat has repeatedly said that he was not behind the murder.

Looking composed, Hayat has been present in the courtroom for trial. Sardar Qadeer, a lawyer for the family of Yousaf, told The Associated Press that the court recorded testimony from a police officer who recovered the pistol used in the attack.

Hayat's face was covered when he was escorted from the courtroom and taken back to jail. The next hearing is scheduled for Saturday.

Yousaf, originally from the scenic northern region of Chitral, was known for promoting traditional Chitrali music and dress on TikTok, where she also advocated for girls’ education. Hours before her killing, she had posted a photo from a birthday celebration with friends.

She had a wide following in Pakistan, with half a million fans on Instagram. After her death, hundreds of thousands of people began following her on TikTok, which is one of Pakistan’s most popular apps, with tens of millions of users.

Pakistan has suspended the platform several times, citing concerns that the app promotes immoral or unlawful content.


Balochistan chief minister accuses India of uniting elements seeking to destabilize Pakistan

Balochistan chief minister accuses India of uniting elements seeking to destabilize Pakistan
Updated 36 min 41 sec ago

Balochistan chief minister accuses India of uniting elements seeking to destabilize Pakistan

Balochistan chief minister accuses India of uniting elements seeking to destabilize Pakistan
  • Sarfraz Bugti alleges militants launch attacks against Pakistan from “safe havens” in Afghanistan
  • India has always denied Pakistan’s allegations it funds, trains separatist militants in BalochistanÌę

ISLAMABAD: The chief minister of the southwestern Balochistan province on Thursday accused India’s top intelligence agency of attempting to unite militants who seek to destabilize Pakistan, as Islamabad struggles to contain surging militancy in its western regions. 

Balochistan, Pakistan’s largest province by land yet its poorest by almost all social and economic indicators, has been hit hard by an insurgency for decades now. Ethnic Baloch separatist militants accuse Islamabad of denying locals a share in the province’s mineral resources, an allegation the federal government and military deny. 

These militant groups, the most prominent among them being the Balochistan Liberation Army (BLA), have frequently launched attacks targeting law enforcers, civilians and commuters from the eastern Punjab province. 

“They [India’s intelligence agency RAW] have launched an intelligence-based war against us and are trying to unite all those who seek to destabilize Pakistan,” Balochistan Chief Minister Sarfraz Bugti told reporters at a media briefing in Islamabad. 

India, Pakistan’s arch-rival and nuclear-armed neighbor, has repeatedly denied Islamabad’s accusations that it arms and funds militant groups in the southwestern province. New Delhi accuses Islamabad of supporting militants in the disputed Kashmir territory it administers, a charge Pakistan has always denied. 

Apart from accusing India of stoking militancy in Pakistan, Islamabad also blames Afghanistan’s government for not taking action against militants that it alleges operate from sanctuaries in Afghanistan. The Taliban-led government in Afghanistan rejects these allegations and urges Pakistan to resolve their security challenges internally. 

Bugti reminded Afghanistan’s government that it had assured Islamabad it would not allow militants to use Afghan soil to launch attacks against Pakistan. 

“They [terrorists] have safe havens in Afghanistan and have been provided places for the training camps,” he said. “And they attack us from there.”

The chief minister pointed out that several militants recently killed by security forces in Pakistan were Afghan nationals. 

Pakistani security forces have intensified operations in its northwestern Khyber Pakhtunkhwa and Balochistan province after an uptick in violence in these regions. According to an Islamabad-based think tank, Pakistan witnessed a sharp escalation in militant violence in August, with attacks reaching their highest monthly level in more than a decade. 

The Pakistan Institute for Conflict and Security Studies (PICSS), which tracks militancy, recorded 143 militant attacks in August in a report it published earlier this month. It said Balochistan saw 28 attacks in August that killed 52 people, including 23 security personnel and 21 civilians. 

Last week, unidentified kidnappers killed senior government officer Assistant Commissioner (AC) Muhammad Afzal and his son in Balochistan. On Sept. 15, five soldiers were killed in an IED blast that took place when security forces were moving for a sanitization operation in Balochistan’s Kech district. 


Saudi Wafi Energy launches second eco-friendly fuel station in Pakistan

Saudi Wafi Energy launches second eco-friendly fuel station in Pakistan
Updated 25 September 2025

Saudi Wafi Energy launches second eco-friendly fuel station in Pakistan

Saudi Wafi Energy launches second eco-friendly fuel station in Pakistan
  • New station built using 7,700kgs of plastic waste is located in Police Lines Rawalpindi
  • Rawalpindi launch reflects firm’s mission to promote climate resilience in Pakistan

ISLAMABAD: Saudi company Wafi Energy Pakistan Limited on Thursday inaugurated the country’s second retail station built with recycled plastic in Rawalpindi, highlighting its push for green solutions in Pakistan’s energy and retail sectors.

Wafi Energy, an affiliate of the Asyad Group, became the majority shareholder of Shell Pakistan Limited (SPL) in November last year and now holds approximately 87.78 percent of the total issued share capital of SPL.

The new station located in Police Lines Rawalpindi was built using 7,700kgs of plastic waste, equal to more than 5.8 million pieces of end-of-life plastics infused into construction materials, according to Wafi Energy.

“At Wafi Energy, sustainability is not just a commitment — it is a responsibility,” Wafi Energy quoted CEO Zubair Shaikh as saying.

“With the launch of Pakistan’s second retail site made with recycled plastic, we are demonstrating how innovation and environmental responsibility can go hand in hand,” it continued.

“By reusing over 5.8 million pieces of plastic waste, this site is more than just a fuel station — it is a symbol of our belief in a cleaner, greener future for Pakistan.”

Wafi Energy’s first station in Pakistan’s metropolitan Karachi city, built with alumni startup Concept Loop, used 6,500 kg of plastic waste to make pavers and concrete blocks.

The company has also built a 730-foot plastic road outside its Karachi head office using 2.5 tons of waste lubricant bottles, which has proven resilient against heat and rain.

The launch of the Rawalpindi site reflects Wafi Energy’s mission to develop solutions contributing toward Pakistan’s climate resilience, according to the company.

Officials from the șÚÁÏÉçÇűn embassy and the Oil and Gas Regulatory Authority also attended the inauguration ceremony.

SPL is one of the oldest multinationals in Pakistan, with a network of over 600 sites, countrywide storage facilities and a broad portfolio of global lubricant brands.

Shell has supported Pakistan’s development by providing energy for major projects like Mangla Dam and Kotri Barrage, powering the first flights of Pakistan International Airlines and expanding road infrastructure.


Pakistan reviews National Resilience Plan to prepare for next year’s monsoon season

Pakistan reviews National Resilience Plan to prepare for next year’s monsoon season
Updated 25 September 2025

Pakistan reviews National Resilience Plan to prepare for next year’s monsoon season

Pakistan reviews National Resilience Plan to prepare for next year’s monsoon season
  • Pakistan has reported 1,006 deaths and over 1,000 injuries in rain-related incidents across the country since June this yearÌę
  • Climate change minister says current disaster response system “fragmented,” requires integration into streamlined frameworkÌę

ISLAMABAD: Pakistan’s Climate Change Minister Musadik Malik on Thursday discussed the need for a National Resilience Plan 2025-26, aimed at enhancing preparations and mitigating climate-related disasters, ahead of next year’s monsoon season. 

Heavy monsoon rains and floods in Pakistan have killed around 1,006 people and injured 1,063 nationwide since Jun. 26. The country’s most populous Punjab province reported massive devastation in late August after heavy rains coupled with water released by dams in India, triggered floods. At least 134 people were killed while over 4.5 million were affected by the deluges, as the provincial Punjab government launched the largest rescue and relief operation in its history to evacuate over 2.6 million people to safer locations. 

Malik called on NDMA Chairman Lt. Gen Inam Haider Malik in Islamabad to discuss strategies to reduce losses inflicted by climate-related disasters on humans, infrastructure, crops and livestock via a National Resilience Plan 2025-26, the climate change ministry said. 

“The plan aims to enhance preparedness for the upcoming 2026 monsoon season and to mitigate the devastation caused by natural disasters,” the ministry said in a statement.

Malik stressed the importance of creating a “robust mechanism” that delivers tangible results for the most vulnerable communities. 

“The Federal Minister further observed that the current disaster response system is fragmented and requires integration into a single, streamlined framework that is quick, coordinated, and effective,” the climate change ministry said. 

Malik reaffirmed the government’s commitment to work closely with the NDMA and all stakeholders to ensure a “comprehensive and unified disaster management strategy.”

The NDMA chairman laid emphasis on the need to identify vulnerable regions across Pakistan and assess their exposure to specific risks including floods, cloudbursts, glacial melt, glacial lake outburst flood (GLOF) and landslides. 

Pakistan is among the countries most vulnerable to climate change despite contributing less than one percent of global greenhouse gas emissions. 

Catastrophic floods in 2022 killed nearly 1,700 people, submerged a third of the country at one point, and inflicted over $30 billion in damages, according to government estimates.

The government has stressed the importance of early warning systems and disaster mitigation efforts, as experts warn future monsoon seasons could cause even more destruction across Pakistan.


Pakistan, Bangladesh eye revival of Dhaka-Karachi air and shipping links

Pakistan, Bangladesh eye revival of Dhaka-Karachi air and shipping links
Updated 25 September 2025

Pakistan, Bangladesh eye revival of Dhaka-Karachi air and shipping links

Pakistan, Bangladesh eye revival of Dhaka-Karachi air and shipping links
  • Both countries have sought to strengthen ties since Sheikh Hasina’s ouster in a student-led uprising in August 2024
  • Sharif also met Bangladesh Chief Adviser Muhammad Yunus on UNGA sidelines to discuss forward-looking relations

KARACHI: Pakistan and Bangladesh officials agreed on Thursday that direct flight and shipping services between Karachi and Dhaka were needed to boost trade and people-to-people contact, the Sindh government said, in a move reflecting warmer ties between the South Asian countries.

The development took place during a meeting between Sindh Chief Minister Syed Murad Ali Shah and Bangladesh’s Home Secretary Naseem-ul-Ghani and High Commissioner Iqbal Hussain Khan to discuss areas of mutual trade and strengthen economic ties.

“The Bangladeshi Secretary recalled that a direct shipping service had recently been established by a private company but had since stopped and appealed to the Sindh CM to help resume it through federal channels,” said a statement issued by the provincial administration after the meeting.

The meeting came after Prime Minister Shehbaz Sharif’s discussions with Bangladesh Chief Adviser Muhammad Yunus on the sidelines of the 80th session of the United Nations General Assembly in New York.

Pakistan Prime Minister Shehbaz Sharif speaks during a bilateral meeting with Chief Adviser of Bangladesh Prof. Muhammad Yunus on the sidelines of 80th Session of UNGA in New York on September 25, 2025. (Handout/PMO)

Both top leaders focused on building constructive and forward-looking ties rooted in mutual respect and trust between the countries.

Pakistan and Bangladesh used to be one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.

Ties between Pakistan and Bangladesh have warmed since the fall of the administration of former Bangladeshi prime minister Sheikh Hasina, who was widely viewed as close to India and critical of Pakistan, following a student-led uprising in August 2024.

Islamabad has attempted to forge closer ties with Bangladesh in recent months as relations remain frosty between Dhaka and New Delhi over India’s decision to grant asylum to Hasina after she fled the country.