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Pakistan eyes early staff-level deal with IMF as finance minister departs for Washington

Pakistan eyes early staff-level deal with IMF as finance minister departs for Washington
Pakistan Finance Minister Muhammad Aurangzeb participates in a panel titled “Navigating an Uncertain World” during the 2025 annual IMF/World Bank Spring Meetings in Washington DC, US, April 25, 2025. (REUTERS/File)
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Updated 4 min 28 sec ago

Pakistan eyes early staff-level deal with IMF as finance minister departs for Washington

Pakistan eyes early staff-level deal with IMF as finance minister departs for Washington
  • The IMF this week said the two sides have made ‘significant progress’ on reviews of Pakistan $8.4 billion loan programs
  • The government is finalizing flood damage assessments and will prioritize the use of domestic resources, Aurangzeb says

ISLAMABAD: Pakistan is aiming to secure an early staff-level agreement with the International Monetary Fund (IMF) as Finance Minister Muhammad Aurangzeb is set to depart for Washington this week, seeking approval for reviews of the country’s $8.4 billion loans.

Pakistan secured a $7 billion, 37-month Extended Fund Facility in Sept. last year, followed by a $1.4 billion, 28-month Resilience and Sustainability Facility in May, to bankroll its economy.

The IMF this week said the two sides have made “significant progress” toward a staff-level agreement on reviews of the South Asian country’s $8.4 loans, the lender said late Wednesday.

Pakistan’s program implementation remained strong and broadly aligned with commitments, while progress was made in discussions on fiscal consolidation to strengthen public finances, according to the lender.

“The minister reaffirmed that talks with the IMF mission remain constructive, with only a few outstanding issues, and expressed optimism about reaching a staff-level agreement shortly during his upcoming meetings in Washington,” the Pakistani finance ministry said, following Aurangzeb’s virtual meeting with a Saudi business delegation.

On the domestic front, the minister said, the government is finalizing rapid damage assessments following recent floods and will prioritize the use of domestic resources for rescue and relief operations, before considering external assistance for rehabilitation and reconstruction.

Pakistan’s recent floods, triggered by heavy monsoon rains and India’s release of excess water, have killed more than 1,037 people and affected another over 4 million, besides damaging standing crops, homes and road network. The government has initially estimated the losses at Rs370 billion ($1.31 billion), though a detailed assessment has yet to be made.

This week, the World Bank projected Pakistan’s economy to grow by 2.6 percent in the ongoing fiscal year that began in July, lowering its earlier estimate due to the recent monsoon floods.

On Thursday, the IMF said its officials would continue policy discussions with Pakistani authorities with a view to settling any outstanding issues.

“The IMF team wants to express its sympathy to those affected by the recent floods, and is grateful to the Pakistani authorities, private sector, and development partners for many fruitful discussions,” the lender said as its mission completed its two-week visit to Pakistan.


Pakistan minister highlights investment opportunities, economic reforms in talks with Saudi delegation

Pakistan minister highlights investment opportunities, economic reforms in talks with Saudi delegation
Updated 8 sec ago

Pakistan minister highlights investment opportunities, economic reforms in talks with Saudi delegation

Pakistan minister highlights investment opportunities, economic reforms in talks with Saudi delegation
  • The delegation has held a series of meetings with federal ministers, received detailed presentations on various projects
  • On Thursday, the two sides signed two memorandums of understanding to strengthen investment in Pakistan’s energy sector 

ISLAMABAD: Pakistan’s finance minister, Muhammad Aurangzeb, on Friday held virtual talks with a Saudi business delegation, currently on a visit to Pakistan, highlighting the country’s economic reforms and investment opportunities it offered to investors.

A 16-member Saudi delegation, led by Prince Mansour bin Mohammed bin Saad Al-Saud, is currently visiting Pakistan amid efforts from the two countries to boost economic cooperation. 

The delegation, which arrived late Tuesday, held a series of meetings with federal ministers and received detailed presentations from the Special Investment Facilitation Council (SIFC) and Pakistani firms. 

On Friday, Aurangzeb held a virtual meeting with Saudi delegates as well as members of the Pakistan Business Council and the Overseas Investors Chamber of Commerce & Industry (OICCI).

“The visit of the Saudi delegation is very timely,” the minister said, adding his government would make sure “our existing investors also work in a good environment, and we don’t go through the boom-and-bust [like] in the previous years.”

Aurangzeb pointed out agriculture, mining, information technology (IT), pharmaceutical and tourism as some of the areas of mutual interest. He said there are two areas which Prime Minister Shehbaz Sharif is leading himself in and take stock on a weekly basis. 

“One is our taxation reform, and everything that is going on in terms of people, process, technology, to get the sort of the fiscal side of things moving forward,” he said.

“The second one... is our digital journey and moving toward cashless economy, because both of these are actually interrelated.” 

The finance minister urged the Saudi business delegation to explore opportunities in these and other sectors of Pakistan’s $411 billion economy.

The development came a day after the visiting Saudi business delegation signed two memorandums of understanding (MoUs) to strengthen investment in Karachi’s energy sector as Riyadh seeks deeper economic engagement with Pakistan under its Vision 2030 initiative.

The delegation, led by Prince Mansour who is the chairman of the Saudi-Pakistan Joint Business Council, finalized a share-sale agreement in KES Power Limited and a cooperation framework between K-Electric and Trident Energy Limited to explore new investment in Pakistan’s power and infrastructure markets.

Pakistan and ֱ have close religious, cultural, diplomatic and strategic ties, particularly in trade and defense. Last year, the two countries signed 34 agreements worth nearly $3 billion, of which, memorandums of understanding (MoUs) worth $700 million have already entered the implementation stage, according to Pakistani officials.


Pakistan army says 30 militants killed in raids after attack left 11 soldiers dead

Pakistan army says 30 militants killed in raids after attack left 11 soldiers dead
Updated 10 October 2025

Pakistan army says 30 militants killed in raids after attack left 11 soldiers dead

Pakistan army says 30 militants killed in raids after attack left 11 soldiers dead
  • Pakistan is struggling to contain a surging militancy in its northwestern Khyber Pakhtunkhwa province that borders Afghanistan
  • Islamabad accuses Afghanistan and India of backing militant groups for attacks against Pakistan, Kabul and New Delhi deny this

ISLAMABAD: Pakistan’s security forces have killed 30 militants involved in an ambush that killed 11 soldiers this week near the Afghan border, the Pakistani army said on Friday.

The soldiers were killed in an overnight gunbattle in Orakzai district, which also killed 19 militants, according to the Inter-Services Public Relations (ISPR), the army’s media wing.

It said security forces have been conducting a series of “retribution operations” against the Pakistani Taliban militants involved in heinous incident that occurred in the Orakzai district.

During the conduct of an operation in Orakzai’s Jamal Maya area, 30 Pakistani Taliban militants involved in the Oct. 7 incident were killed after intense fire exchange.

“These successful operations have avenged the heinous act and have brought the main perpetrators to justice,” the ISPR said. “Sanitization operations are being conducted to hunt and eliminate any other Indian-sponsored kharji (militant) found in the area.”

The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), and other militant groups have frequently targeted security forces convoys and check-posts, besides targeted killings and kidnappings of law enforcers and government officials in recent months.

Islamabad has frequently accused Afghanistan of allowing the use of its soil and India of backing militant groups for attacks against Pakistan. Kabul and New Delhi both deny the allegation.

On Thursday, another Pakistan army major and seven militants were killed in a gunbattle in Dera Ismail Khan in northwest Pakistan, according to the ISPR.

Pakistan’s northwestern tribal regions turned into militant hotspots after the US invasion of Afghanistan in the wake of the September 11, 2001, attacks. Islamabad launched multiple military operations over the last two decades to push away militants but they have managed to regroup and the threat has persisted in the rugged, mountainous region.


‘We make our own norms’: Pakistan’s first woman racer breaks ground in global motorsport

‘We make our own norms’: Pakistan’s first woman racer breaks ground in global motorsport
Updated 21 min 59 sec ago

‘We make our own norms’: Pakistan’s first woman racer breaks ground in global motorsport

‘We make our own norms’: Pakistan’s first woman racer breaks ground in global motorsport
  • Lahore-born Arshia Akhter went from karting in Riyadh to earning a professional FIA racing license
  • Alongside motorsport, she pursues a career in clinical research with multiple academic publications

ISLAMABAD: When Arshia Akhtar first stepped onto a karting track in Riyadh as a child, she had no idea it would lead her to professional racing.

Nearly two decades later, she has become the first Pakistani woman to receive a professional license from the Fédération Internationale de l’Automobile (FIA) — motorsport’s global governing body — a milestone that places her among the few women competing internationally in formula racing.

Born in Lahore and raised in ֱ, Akhtar moved to the United States in 2017, where she now works full-time in clinical research while pursuing her motorsport ambitions.

“My mom and my sister, they don’t even have a driver’s license,” she told Arab News in an online interview from Texas. “It has always been my dad and I who are more sports-oriented.”

Akhtar first tried karting at age 11 and returned to it in her teens before transitioning to competitive circuits. She has since raced in the Formula Race Promotions Series and the F4 US Championship, both featuring international drivers.

Pakistani motorsport driver Arshia Akhtar in action during the Formula Race at Road America in Wisconsin, US, on June 27, 2025. (Arshia Akhtar)

Robert Wright, owner of Formula Race Promotions, said Akhtar began competing with their team in early 2025 and showed steady improvement throughout the season.

“Her progress through the season was steady and rewarded her with fourth place in the season points standings,” he said, adding that plans are already underway to further her skills and experience in 2026.

Securing a professional license from the FIA was a demanding process. As a Pakistani woman entering a sport still dominated by men and the West, Akhtar said much of her journey involved learning through trial and error.

She spent months studying regulations, car specifications and race categories while building a resumé that met FIA standards.

“When you’re the first one doing something, you’re figuring it out as you go,” she said.

Akhtar currently holds a Grade C FIA license and is working toward Grade B, a step closer to the elite “super license.”

“Every time I race in the championship, I gain points,” she explained. “You only gain points if you’re in the top ten. You need to build up to a certain number to even qualify for a super license.”

The photograph shared on July 2, 2025, shows Pakistani motorsport driver Arshia Akhtar with her 7-month-old puppy, Ezra, during a test day drive at MSR Houston in Texas, US. (Arshia Akhtar)

Currently, she is competing in Formula E, a category of high-speed electric racing that tests drivers’ reflexes, technical precision and strategy.

Her coach, professional driver Nathan Byrd, described her as “a fast learner with a good attitude, taking all of my feedback well and then immediately executing on-track.”

‘ADRENALINE JUNKIE’

Beyond the racetrack, Akhtar juggles a demanding schedule.

“I wake up early, check emails, handle racing or sponsorship calls and then start my research job by 7:30,” she said. “After work, I take my dogs to the park, work out, practice on the simulator and sometimes I’m working till late.”

Despite the sport’s high costs, Akhtar continues to self-fund her career.

Women remain vastly underrepresented in motorsport. A 2023 study by More Than Equal, an initiative by former Formula 1 driver David Coulthard and entrepreneur Karel Komárek, found that women make up just around 10 percent of global participants.

Against that backdrop, Akhtar’s progress marks both a national milestone and a personal test of endurance. She said she often races on unfamiliar tracks against seasoned competitors.

“Every time I go on a track, that’s my first time on that track, while other people I’m competing against have been there at least 10 or 12 times,” she said.

Arshia Akhtar is having a chat with race engineer Angelo Zarra at Road Atlanta Raceway in Hall County, Georgia, US, on March 20, 2025. (Arshia Akhtar)

To prepare, she spends hours in simulation and track analysis, though she admits that practice can’t replace real racing.

“Once you are on track, the execution part kind of includes dealing with things that are changing,” she said.

Away from motorsport, Akhtar describes herself as an “adrenaline junkie.” She has competed in equestrian events in the US, earning several podium finishes, and enjoys snowboarding, skydiving, and scuba diving.

“My family has just accepted the fact that I’m the weird kid,” she laughed.

Akhtar also excelled academically, staying on the dean’s list and publishing in scientific journals. Now, she hopes her example will inspire more Pakistani women to explore motorsport, not just as drivers, but also in engineering, management and technical roles.

“We make our own norms,” she said. “If you truly believe that something should be normal and you do it... then it will become normal.”


Religious party protest triggers road closures, disrupts mobile services in Pakistani capital

Religious party protest triggers road closures, disrupts mobile services in Pakistani capital
Updated 10 October 2025

Religious party protest triggers road closures, disrupts mobile services in Pakistani capital

Religious party protest triggers road closures, disrupts mobile services in Pakistani capital
  • The TLP party called for a march on Islamabad to stage a protest outside US embassy in solidarity with Palestinians
  • Authorities have since placed shipping containers on key roads, amid reports of arrests of dozens of TLP supporters

ISLAMABAD: A protest announced by the Tehreek-e-Labbaik Pakistan (TLP) religious party has paralyzed the Pakistani capital of Islamabad and other cities, with authorities closing roads amid a disruption in mobile phone services.

The TLP this week called for a march on the federal capital where it planned to stage a protest outside the United States (US) embassy in solidarity with Palestinians.

Authorities raided the party headquarters in Lahore late Wednesday in a bid to keep the TLP from following through on its plans. The raid resulted in clashes that continued on Thursday.

Shipping containers have since been placed on key roads in Islamabad, Lahore and other cities to block the protesters, amid reports of arrests of dozens of TLP supporters.

“All types of heavy traffic will be banned from entering Islamabad until further notice,” the city’s traffic police said on X, sharing alternate traffic routes for public.

School administration in the twin cities of Rawalpindi and Islamabad returned students to homes early Friday in view of the law-and-order situation, according to school association.

The Ministry of Interior directed the Pakistan Telecommunication Authority (PTA) to suspend 3G and 4G services in Islamabad and Rawalpindi.

A directive dated October 9 stated the ministry had “accorded approval to suspend 3G/4G services in the twin cities of Islamabad and Rawalpindi, starting from 12am tonight till further orders.” It directed the PTA to take “further necessary action” in this regard in coordination with local administration and police in Islamabad and Rawalpindi.

The TLP has previously staged protests, most prominently in support of blasphemy laws and to call on the government to cut diplomatic ties with Western nations where Holy Qur’an desecrations have taken place.

Some of these protests turned violent and continued for days.

In Oct. last year, police in Karachi arrested more than a dozen TLP activists and members of a local human rights group for staging separate demonstrations over a blasphemy case, amid a ban on public gatherings.

In July 2024, hundreds of TLP supporters had camped at the Faizabad interchange connecting Islamabad and Rawalpindi to demand the Pakistani government officially boycott Israeli products and declare Israeli PM a ‘terrorist.’ The protest continued for a week and was ended after talks with government.


Pakistan, ֱ sign agreement to counter corruption, facilitate mutual legal aid

Pakistan, ֱ sign agreement to counter corruption, facilitate mutual legal aid
Updated 10 October 2025

Pakistan, ֱ sign agreement to counter corruption, facilitate mutual legal aid

Pakistan, ֱ sign agreement to counter corruption, facilitate mutual legal aid
  • Both nations will exchange information to recover proceeds of crime, extend technical support to each other
  • The development comes amid growing cooperation between the countries, particularly in defense, trade and economy

KARACHI: Pakistan and ֱ have signed an agreement to strengthen cooperation between both sides to counter corruption, money laundering and facilitate mutual legal assistance, Pakistan’s National Accountability Bureau (NAB) said on Thursday.

The agreement was signed by Mazin bin Ibrahim Al-Kahmous, president of Saudi Oversight and Anti-Corruption Authority (Nazaha) and NAB Chairman Nazir Ahmed during the inaugural session of Asset Recovery Interagency Network for Middle East and North Africa (MENA) region in Jeddah.

Under this memorandum of understanding (MoU), both agencies have agreed to strengthen collaboration through the exchange of information related to corruption and money laundering. Asset-tracing and recovery of proceeds of crime is also a common area of interest.

“The MoU envisions mutual cooperation in matters related to mutual legal assistance (MLA), and extending technical support for the preparation of MLA requests prior to their submission through diplomatic channels,” Pakistan’s NAB said in a statement.

The Nazaha president lauded NAB efforts in global drive against corruption, especially the reforms that have yielded unprecedented recoveries of 6.4 trillion Pakistani rupees or $23 billion in a short span of time, according to NAB. He particularly praised Chairman NAB’s address to the MENA ARIN forum that objectively covered the challenges faced by all states in curbing corruption.

The development comes amid growing cooperation between the two countries, particularly in defense, trade and economy. The two countries signed a ‘Strategic Mutual Defense Agreement’ during Prime Minister Shehbaz Sharif’s visit to Riyadh last month, pledging that aggression against one would be treated as an attack on both. This week, a Saudi business delegation of arrived in Pakistan to explore opportunities in various sectors.

NAB chief Ahmed lauded the Saudi leadership in taking successive anti-corruption initiatives that have rejuvenated regional anti-corruption efforts. He particularly praised the recent landmark defense agreement between the two countries that will further augment the brotherly ties between the two countries.

Pakistan and ֱ have close religious, cultural, diplomatic and strategic ties, particularly in trade and defense. The Kingdom is home to over two million Pakistani expatriates, who are the largest source of remittances to the South Asian country.

ֱ has also provided substantial support to Pakistan during its prolonged economic challenges in recent years, including oil cargoes on deferred payments as well as external financing and assistance with International Monetary Fund loan programs.