The IMF bailout is a double-edged sword for Pakistan. It saved the country from default, but it also imposed harsh conditions. The country faces a dilemma: how to comply with the Fund without alienating the public, who suffer from inflation and energy prices. The govt must balance fiscal discipline with public welfare. IMF chief recommends taxing the rich and shielding the poor.
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Pakistan’s growth lags behind region as inflation soars, ADB says
ADB lowers Pakistan’s growth forecast to 1.9pc from 2pc, citing erratic rainfall and global price shocks. Inflation projected to rise to 25pc, the highest in Asia. The country’s economic recovery hinges on the IMF-supported adjustment program.
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Freeze likely on PKR 30 billion in dev spending greenlit by PDM
The caretaker government would like to put a freeze on the funds released to the districts and intended to be spent through the general election – but can or should it? By Muhammad Ali.
Pakistan-Afghanistan border reopens after nine-day standoff
By Staff Reporter
ISLAMABAD: The main Pakistan-Afghanistan border crossing, a key trade and travel route between the two countries, reopened on Friday after a nine-day closure following a clash between their border forces, officials said.
PM Kakar pushes for quick sale of troubled PIA
By Staff Reporter
ISLAMABAD: Caretaker Prime Minister Anwaarul Haq Kakar instructed his newly appointed Privatization Minister Fawad Hassan Fawad to fast-track the sale of the state-owned Pakistan International Airlines Corp. (PIA), which is facing a severe cash crunch and has grounded some of its planes.
No rate hike as SBP sees inflation peaking in September
By Staff Reporter
KARACHI: The State Bank of Pakistan kept its benchmark interest rate unchanged at 22 percent on Thursday, defying market expectations of a hike to curb inflation and support the rupee, which has plunged to record lows in recent months.
PIA faces collapse as debt and losses swell
PIA is on the verge of collapse as it struggles to pay its bills and maintain its fleet. It has asked for a bailout from the government, which is itself in an economic crisis. The caretaker government has pushed for privatization, but will it happen before it’s too late?
President Alvi suggests Nov. 6 election date, but it may not be up to him
A constitutional crisis is looming over the country’s general election date, as President Alvi and the election commission disagree on who has the power to decide it. The president has suggested Nov. 6 as the date, citing a provision that requires him to appoint a date within 90 days of dissolving the parliament. However, the election commission claims that it is in charge of setting the date and running the polls, and that it requires more time to redraw the constituencies, based on a new census. The president’s letter has caused confusion and increased the uncertainty over the country’s democratic transition.
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Caretakers resolve to do everything in national interest, get tough on bad guys
PM Kakar announced fast-track visa processing for potential investors under the Open Pakistan Policy as officials said they hoped to close mega investment deals with multiple Gulf countries within a month. By Muhammad Ali.
Pakistan seeks $2billion in World Bank aid for economic recovery
By Staff Reporter
ISLAMABAD: Pakistan is seeking about $2 billion in aid from the World Bank to boost its economic recovery and support its reform efforts, especially in the energy sector.