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Pakistan says IMF approved $1 billion loan tranche ‘on merit’ despite Indian push for review

Pakistan says IMF approved $1 billion loan tranche ‘on merit’ despite Indian push for review
Pakistan Finance Minister Muhammad Aurangzeb gestures while speaking with media representatives at the finance ministry in Islamabad on March 22, 2024. (AFP/File)
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Updated 26 May 2025

Pakistan says IMF approved $1 billion loan tranche ‘on merit’ despite Indian push for review

Pakistan says IMF approved $1 billion loan tranche ‘on merit’ despite Indian push for review
  • India has raised concerns with IMF on its loans to Pakistan after militant attack Delhi blamed on Islamabad
  • Last week, India announced plans to approach Financial Action Task Force to place Pakistan on grey list again

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Monday the International Monetary Fund (IMF) had approved a $1 billion disbursement for Pakistan on “merit” despite India leaving “no stone unturned” to convince the lender to review the payout.

Pakistan secured a $7 billion bailout program from the IMF last year and was granted a new $1.3 billion climate resilience loan in March. Earlier this month, Pakistan received the second tranche of special drawing rights worth $1,023 million from the IMF under the extended fund facility (EFF) program, bringing disbursements to $2 billion within the latest bailout.

The program is critical to the $350 billion economy and Pakistan has said it has stabilized under the bailout that helped it stave off a default threat.

India raised concerns with the IMF on its loans to Pakistan, asking for a review earlier this month as tensions soared after an attack on Hindu tourists in Indian-administered Kashmir that New Delhi blamed on Islamabad — an accusation it denies. The tensions erupted into military fighting as the two nuclear-armed nations launched missiles and drones deep into each other’s territories and exchanged gunfire on their de facto border, the Line of Control, until a ceasefire was announced on May 10. Nearly 70 people combined were killed on both sides of the border.

“Our armed forces and political leadership, the way they stood up against the [Indian] aggression, the entire nation has celebrated it, and rightly so,” Aurangzeb told reporters in Islamabad.

“At the same time, there was no stone left unturned in terms of ensuring that the [IMF board] meeting doesn’t happen and if the meeting does happen, then these items are not on the agenda, whether it’s the second tranche [of $7 billion loan] under the EFF or the RSF [Resilience and Sustainability Facility] of $1.3 billion in terms of our climate resilient facility.”

The finance minister said he was thankful that the IMF went on to discuss and decide the Pakistan case “on merit.”

Last week, India also announced plans to approach the global financial watchdog, the Financial Action Task Force (FATF), to place Pakistan on its grey list and said it would oppose a World Bank plan to focus $20 billion in lending to the cash-strapped nation over the coming decade on development issues like the impact of climate change as well as boosting private-sector growth.

Pakistan was removed from the FATF grey list in 2022, receiving a clean bill of health on terror financing, which significantly improved its standing with international lenders, crucial for its crisis-hit economy.


International Day of Family Remittances: Pakistani PM hails expats for record payments this year

International Day of Family Remittances: Pakistani PM hails expats for record payments this year
Updated 16 June 2025

International Day of Family Remittances: Pakistani PM hails expats for record payments this year

International Day of Family Remittances: Pakistani PM hails expats for record payments this year
  • In current fiscal, overseas Pakistanis remitted record $34.9 billion, a 28.8 percent increase over the previous year
  • Pakistan received $3.7 billion in workers’ remittances in May 2025 alone, a strong 13.7 percent year-on-year

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday hailed the record $34.9 billion in remittances sent by overseas Pakistanis this fiscal year, describing it as a sign of their “growing confidence in the government’s economic policies.”

In a statement marking the International Day of Family Remittances, the premier said the 28.8 percent year-on-year rise in remittances had significantly bolstered the country’s foreign exchange reserves. Pakistan received $3.7 billion in workers’ remittances in May 2025 alone, a strong 16 percent increase month-on-month and 13.7 percent year-on-year.

“These historic figures are a testament not only to the hard work and loyalty of our diaspora but also to their growing confidence in the government’s economic policies,” Sharif said, calling remittances a “powerful pillar supporting Pakistan’s economic resilience.” 

“This trust reinforces our resolve to redouble efforts for the revival and growth of our economy.”

With over 9 million Pakistanis living abroad, mainly in the Gulf, Europe, and North America, the prime minister praised the expatriate community for their enduring commitment to families back home and their role in sustaining the national economy.

Sharif reiterated the government’s commitment to attracting foreign investment and expanding exports to ensure long-term economic stability, stressing that remittances remained crucial to this goal.

“Let us renew our collective pledge to work hand in hand with our diaspora, development partners, and all stakeholders to overcome our economic challenges and usher in a new era of investment, prosperity, and national progress,” the premier said.


Pakistan closes pedestrian traffic at all Iran border crossings as Israel strikes escalate

Pakistan closes pedestrian traffic at all Iran border crossings as Israel strikes escalate
Updated 16 June 2025

Pakistan closes pedestrian traffic at all Iran border crossings as Israel strikes escalate

Pakistan closes pedestrian traffic at all Iran border crossings as Israel strikes escalate
  • Closures affect crossings in Balochistan’s border districts of Chaghi, Gwadar, Kech, Panjgur
  • All are key routes for cross-border movement, local trade between Iran and Balochistan province

 QUETTA: Pakistani authorities have closed all major border crossings with Iran for pedestrian traffic amid escalating cross-border strikes between Iran and Israel, officials in the southwestern Balochistan province said on Sunday.

The closures affect the Taftan crossing in Chaghi district, the Gabd-Rimdan crossing in Gwadar district, the Chedgi and Jirrak crossings in Panjgur district and the Rideeg Mand crossing in Kech district. All are key routes for cross-border movement and local trade between Balochistan and Iran. 

“All kinds of pedestrian movement at the Gabd-Rimdan border has been suspended due to the Iran-Israel conflict,” Jawad Ahmed Zehri, assistant commissioner for Gwadar, told Arab News.

Trade activity at the crossing would remain open and Pakistani citizens stranded in Iran would be allowed to return, he said, but no new entries into Iran would be permitted through this point until further notice.

In a separate order, authorities also said the Taftan border crossing in Chaghi district had been closed for pedestrian traffic.

“We have closed pedestrian movements at the Taftan border until further notice,” said Naveed Ahmed, assistant commissioner for Taftan, adding that trade and customs operations from the crossing were continuing as usual.

The Chedgi, Jirrak and Mand Radig border crossings have also been shut, officials in the Kech and Panjgur districts confirmed. 
 
The closures come amid heightened tensions following Israeli strikes on Iranian cities since Friday with scores killed, including senior Iranian military commanders.

The blockade is expected to affect daily wage laborers, small-scale traders and local residents who depend on frequent cross-border movement for commerce, supplies and family visits.

Small items such as fruit, vegetables and household goods are commonly traded by hand or in small vehicles along these routes.

Bilateral trade volume between Pakistan and Iran reached $2.8 billion in the last fiscal year, which ended in June. Both countries have signed a memorandum of understanding with the aim of increasing this volume to $10 billion.

Iran also supplies about 100 megawatts of electricity to border towns in Balochistan.


Israel’s unchecked nuclear capability will have ‘catastrophic consequences,’ Pakistan warns West

Israel’s unchecked nuclear capability will have ‘catastrophic consequences,’ Pakistan warns West
Updated 16 June 2025

Israel’s unchecked nuclear capability will have ‘catastrophic consequences,’ Pakistan warns West

Israel’s unchecked nuclear capability will have ‘catastrophic consequences,’ Pakistan warns West
  • Analysts warn Israel’s unacknowledged nuclear weapons could encourage it to take more aggressive steps
  • Tensions have surged in the Middle East following Israel’s June 13 “Operation Rising Lion” aerial offensive on Iran

ISLAMABAD: Pakistan’s defense minister Khawaja M. Asif on Sunday warned Western governments that their support for Israel risked unleashing “catastrophic consequences,” citing concerns over Israel’s nuclear capabilities and regional aggression.

Tensions have surged in the Middle East following Israel’s June 13 “Operation Rising Lion” aerial offensive targeting Iranian nuclear and military facilities, reportedly killing more than 130 people, including senior military commanders and nuclear scientists. Iran has retaliated with missile and drone barrages on Israeli cities, sparking concerns of a wider conflict. 

Israel is widely believed to possess nuclear weapons but maintains a policy of ambiguity and is not a party to the Nuclear Non-Proliferation Treaty (NPT). The 1970 accord is aimed at preventing the spread of nuclear weapons, promoting disarmament, and ensuring peaceful use of nuclear technology. Pakistan is also not a signatory to the NPT but frequently underscores its commitment to nuclear safety and non-proliferation principles through other international frameworks.

Displaced Palestinians stand outside tents as they watch trails of Iranian missiles targeting Israel, from Rafah's Mawasi area in the southern Gaza Strip on June 15, 2025.(AFP)

Analysts warn that in the current volatile situation, Israel’s unacknowledged nuclear weapons could encourage it to take more aggressive steps, increasing the risk that the conflict could spread across the region or even spark a wider international crisis.

“World should be wary and apprehensive about Israel’s nuclear prowess, a country not bound by any international nuclear discipline,” Asif said in a post on social media platform X. “It is not signatory to NPT or any other binding arrangement.”

The minister contrasted Israel’s position with Pakistan’s, stating that Islamabad was a signatory to “all international nuclear disciplines” and maintained a nuclear program solely for “the benefit of our people and defense of our country against hostile designs.”

“We do not pursue hegemonic policies against our neighbors,” Asif added, accusing Israel of doing just that through its military actions. 

“Western world must worry about conflicts being generated by Israel. It will engulf the whole region and beyond. Their patronage of Israel, a rogue state, can have catastrophic consequences.”

The Pakistani minister’s comments come amid growing international concern over the humanitarian toll of Israel’s ongoing military operations in Gaza, as well as fears that the conflict could expand regionally following tensions with Iran and Hezbollah.

There was no immediate response from Israeli or Western officials to Asif’s remarks.


Pakistan hikes petrol, diesel prices in fortnightly review

Pakistan hikes petrol, diesel prices in fortnightly review
Updated 16 June 2025

Pakistan hikes petrol, diesel prices in fortnightly review

Pakistan hikes petrol, diesel prices in fortnightly review
  • Government sets petrol at Rs258.43 per liter, up from Rs253.63
  • High-speed diesel will cost Rs262.59 per liter, up from Rs254.64

KARACHI: Pakistan’s government has increased fuel prices, raising the rate of high-speed diesel (HSD) by Rs7.95 per liter and petrol by Rs4.80 per liter effective from today, Monday, an official notification from the finance division said. 

The notification set the price of petrol at Rs258.43 per liter, up from Rs253.63, while high-speed diesel will cost Rs262.59 per liter, up from Rs254.64.

The revision is based on “recommendations from the Oil and Gas Regulatory Authority and relevant ministries,” the finance division saiad. 

The government did not provide a specific explanation for the hike.

Fuel prices in Pakistan are generally influenced by global oil market trends, currency fluctuations, and changes in domestic taxes.

Fuel costs are revised every two weeks and have a direct impact on inflation. Rising fuel prices increase production and transportation costs, leading to higher prices for goods and services across the board in Pakistan, including food and other essential items. This direct relationship is further amplified by the country’s dependence on imported fuel. 


Pakistan closes pedestrian traffic at key Iran border crossings as Israel strikes escalate

Pakistan closes pedestrian traffic at key Iran border crossings as Israel strikes escalate
Updated 15 June 2025

Pakistan closes pedestrian traffic at key Iran border crossings as Israel strikes escalate

Pakistan closes pedestrian traffic at key Iran border crossings as Israel strikes escalate
  • The closures affect the Taftan crossing in Chaghi district and the Gabd-Rimdan crossing in Gwadar district
  • Both are key rotes for cross-border movement, local trade in Pakistan’s Balochistan province

QUETTA: Pakistani authorities have closed two major border crossings with Iran for pedestrian traffic amid escalating cross-border strikes between Iran and Israel, officials in the southwestern Balochistan province said on Sunday.

The closures affect the Taftan crossing in Chaghi district and the Gabd-Rimdan crossing in Gwadar district, both key routes for cross-border movement and local trade between Balochistan and Iran. 

The Gabd-Rimdan border crossing is a point on the Iran-Pakistan border, specifically at “BP-250,” the second crossing along the 900-kilometer border between the two countries. The crossing facilitates trade and people-to-people contact between Iran and Pakistan.

“All kinds of pedestrian movement at the Gabd-Rimdan-250 border have been suspended due to the Iran-Israel conflict,” Jawad Ahmed Zehri, assistant commissioner for Gwadar, told Arab News.

Trade activity at the crossing would remain open and Pakistani citizens stranded in Iran would be allowed to return, he said, but no new entries into Iran would be permitted through this point until further notice.

In a separate order, authorities also closed the Taftan border crossing in Chaghi district for pedestrian traffic.

“We have closed pedestrian movements at the Taftan border until further notice,” said Naveed Ahmed, assistant commissioner for Taftan, adding that trade and customs operations from the crossing were continuing as usual.

The closures are expected to affect daily wage laborers, small-scale traders and local residents who depend on frequent cross-border movement for commerce, supplies and family visits.

Small items such as fruit, vegetables and household goods are commonly traded by hand or in small vehicles along these routes.

The closures come amid heightened tensions following Israeli strikes on Iranian cities since Friday with scores killed, including senior Iranian military commanders.

The bilateral trade volume between Pakistan and Iran reached $2.8 billion in the last fiscal year, which ended in June. Both countries have signed a memorandum of understanding with the aim of increasing this volume to $10 billion.

Iran also supplies about 100 megawatts of electricity to border towns in Balochistan.