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‘Long-term IMF bailout plan would be an economic disaster for Pakistan’

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‘Long-term IMF bailout plan would be an economic disaster for Pakistan’

Islamabad, March 24 (IANS) Pakistan’s crippling economy is in emergency need of another bailout plan from the IMF (International Monetary Fund) through its Extended Fund Facility (EFF) to save it from a suspected meltdown. However, an economic expert is wary of entering into a long-term plan with the IMF, terming it as a debt trap which would turn Pakistan into another Argentina.

Dr. Ashfaque Hasan Khan, a senior financial expert and economist, has expressed serious concerns over the new government’s plan to seek a long-term financial funding facility from IMF, warning them to stay extremely cautious.

“Pakistan should seek the new IMF loan package of $3-4 billion for a maximum period of three years, as a longer and larger programme would be an economic disaster, potentially making Pakistan another Argentina, which is stuck in a debt trap,” he said.

Dr. Ashfaque highlighted that Pakistan government’s plan to seek an $8 billion loan for a five-year programme, would be a disaster.

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“The government of Prime Minsiter Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and the economic team should focus on attracting foreign investment from Special Investment Facilitation Council (SIFC) platform and implementing reforms to strengthen the domestic economy instead of investing its time and efforts to acquire new debt to repay maturing debt,” he said.

Comparing Pakistan to the ‘future Argentina’, in case it goes into long-term funding facility from the IMF, Dr. Ashfaque said that Argentina has been under the IMF programme for almost half a century now.

“Argentina has continually increased the size of the programme, now close to $43 billion, and has emerged as the largest customer of the IMF. Hence, Argentina will never break free from the IMF’s clutches,” he said.

“Pakistan should not make the same mistake. It is going to turn into a never-ending debt trap. The larger the amount it borrows from the IMF, the larger the repayment will be. Our foreign exchange earnings will not be enough to repay the larger amount. Hence, we will further increase the size of the IMF loan, ultimately becoming like Argentina,” he added.

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The IMF has dictated Pakistan’s economic decision making as it struggles to stay afloat and tackle a financial shutdown. IMF has been strict with Pakistan as it set tough preconditions to meet for the government before being eligible for any long-term bailout.

The IMF compliance has forced an increase in fuel and energy prices; while inflation has sky rocketed to over 35 per cent. The inflation, lack of business opportunities and job losses have pushed the locals into severe financial crisis.

Now, with the new government in place, it is expected that the first step will be to go to the IMF for a long-term financial funding facility. However, with experts cautioning the government to not get carried away with its acquiring limitations, the coming days would certainly be a time for the new finance minister and his team to join heads and work out a plan to get Pakistan out of the economic crunch and also save it from the IMF debt trap.

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–IANS

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Laos seeks to enhance nutrition amid climate change concerns

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Laos seeks to enhance nutrition amid climate change concerns

Laos seeks to enhance nutrition amid climate change concerns

Vientiane (Laos), Aug 22 (IANS) Representatives from the Lao government and development partners have attended a conference here titled “Climate Change and Nutrition in Laos: Intersections and Interventions” to discuss the impact of climate change on nutrition in the Southeast Asia country and potential solutions.

Speaking at the conference, deputy director general of the Department of Hygiene and Health Promotion under the Lao Ministry of Health Viengkhan Phixay, said, “We gather to address a critical and interwoven issue: the impact of climate change on nutrition and how we can work together to tackle these challenges,” Xinhua news agency reported.

The Lao government is actively engaged in this endeavor, with numerous policies and initiatives aimed at addressing both climate change and nutrition, Lao National Television reported on Thursday.

“By leveraging the Scaling Up Nutrition network in Laos, which is led by the government, and supported by civil society, donors, and the United Nations, we have a robust platform to tackle the negative impacts of climate change while improving nutrition and overall health for everyone in Laos,” Viengkham said at the conference held on Monday.

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The conference featured a series of presentations that not only detailed evidence-based research but also introduced innovative tools for measuring and enhancing nutrition under the impact of climate change.

The conference stressed the critical need for integrated approaches to tackle the intertwined challenges of climate change and nutrition, and setting the stage for impactful future collaborations.

–IANS

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One killed, seven injured in shootout in Iraq

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One killed, seven injured in shootout in Iraq

One killed, seven injured in shootout in Iraq

Baghdad, Aug 22 (IANS) A civilian was killed while seven others were injured on Thursday in a tribal shootout in Iraq’s holy Shiite province of Najaf, according to a local security source.

The shootout erupted in the early hours between armed men from the local tribe in the al-Zarga area in northern Najaf, some 160 km south of Baghdad, a local police officer told Xinhua on condition of anonymity.

The clash resulted in the killing of an Iraqi civilian and the injury of seven others, including three Iranian Shiite pilgrims, the source added.

A joint force from the Interior Ministry’s emergency response division and Najaf provincial police arrested 53 gunmen from both sides of the shootout and seized weapons and ammunition, the Interior Ministry said in a statement.

It added that search operations are ongoing to locate additional gunmen and weapons, with more details to be released later.

The incident took place as numerous pilgrims traveled to the city of Karbala to observe Arbaeen, which marks the end of a 40-day mourning period for the killing of Imam Hussein, the grandson of Prophet Muhammad, in the Battle of Karbala in 680 A.D.

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Typically, these pilgrims also visit Najaf as part of their journey to Karbala.

–IANS

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Bangladesh seeks $1 billion budget support from World Bank

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Bangladesh seeks  billion budget support from World Bank

Bangladesh seeks $1 billion budget support from World Bank

Dhaka, Aug 22 (IANS) Bangladesh’s interim government has sought $1 billion from the World Bank as budgetary support.

The call came from the country’s Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan’s meeting with Abdoulaye Seck, the World Bank’s Country Director for Bangladesh and Bhutan, in Dhaka on Wednesday.

He made the plea as the ministry owes more than 2 billion dollars to suppliers in import costs of power and energy, Xinhua news agency reported.

Khan mentioned that the interim government, which was formed with many pressing mandates, is due to settle a $2 billion debt left by the previous government in the power sector.

He said they have already suspended activities under the much-criticized Quick Enhancement of Electricity and Energy Supply Act 2010 and abolished the government’s power to set energy prices without any public hearing.

On August 5, the former Prime Minister of Bangladesh, Sheikh Hasina, was ousted from her country and power, ending her rule since January 2009.

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This event was seen as a massive escalation, with what initially started as student’s protests and resulted in a major crisis in Bangladesh.

Earlier on August 8, Nobel laureate Muhammad Yunus took oath as the head of Bangladesh’s interim government.

–IANS

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Search for missing migrants underway after boat capsizes in Serbia: Ministry

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Search for missing migrants underway after boat capsizes in Serbia: Ministry

Search for missing migrants underway after boat capsizes in Serbia: Ministry

Belgrade, Aug 22 (IANS) Serbian police are still searching for seven missing migrants in the Drina River after their boat capsized when crossing from Serbia to Bosnia and Herzegovina, Serbia’s Interior Ministry confirmed in a press release issued on Thursday.

According to testimonies of the migrants who managed to reach the shore, there were approximately 25 people on board. So far, police and rescue teams have found 18 individuals, including three children, on the riverbank, Xinhua news agency reported.

Serbian Deputy Prime Minister and Minister of the Interior Ivica Dacic said police and the Emergency Situations Sector responded promptly after being alerted by the Bosnian border authorities early Thursday morning.

An intensive search is underway in the Drina River and its surrounding area.

The European Border and Coast Guard Agency, Frontex, reported a significant decrease in illegal border crossings in the Western Balkans during the first half of 2024.

The illegal crossings towards EU borders reached 12,407 between January and July 2024, a 75 per cent drop compared to the same period last year.

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–IANS

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Islamabad sealed with containers amid threats of religious and political protests

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Islamabad sealed with containers amid threats of religious and political protests

Islamabad sealed with containers amid threats of religious and political protests

Islamabad, Aug 22 (IANS) Islamabad, the capital of Pakistan, turned into a fortress on Thursday with dozens of containers forcing closure of several roads with heavy deployment of law enforcement forces following the cancellation of a No-Objection Certificate (NOC) of an anti-government protest planned by Pakistan Tehreek-e-Insaf (PTI) and protest call by religious parties, including the Jamaat-e-Islami (JI), Jamiat Ulema-e-Islam (JUI) under the banner of Majlis-e-Tahaffuz-e-Khatme Nabuwwat against a Supreme Court decision in the Mubarak Sani case.

Anticipating widespread protests, the local administration, which had cancelled the NOC, imposed Section 144 in the city, barring assembly of people and also closed all educational institutions for the day.

Later in the day, the PTI announced its decision to postpone its protest rally and rescheduled it for September 8.

The government maintained that it did not want to take any chance considering the Supreme Court hearing and also the presence of Bangladeshi cricket team in the country which is currently touring Pakistan for a Test series.

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On Wednesday, the capital administration of Islamabad decided to cancel the NOC for PTI, less than 24 hours before the scheduled public gathering in Tarnol area. PTI had earlier announced that it would go ahead with its planned gathering even after its NOC was revoked.

“It is concerning that the government might try to exploit the rally to incite unrest and blame it on PTI. They are scared and are trying to find ways to orchestrate cases against us,” said senior PTI leader Azam Swati.

Imran Khan’s party has been struggling to hold a political gathering in the capital for the past five months with the local administration delaying grant of any permission to hold such an event. Even after a permission is granted, it ends up being revoked a few hours later.

The latest episode is the second time the capital administration has cancelled the NOC issued to PTI for holding a political gathering at Tarnol.

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The government maintains that it had detailed meeting with the Inspector General Police, Deputy Commissioner, senior officers from the Chief Commissioner’s office, officials of the Inter-Services Intelligence (ISI), Military Intelligence (MI) and Intelligence Bureau (IB) after which it was decided that there will be serious law and order concerns if the gathering is allowed.

On the other hand, several religious parties have also taken to the streets in Islamabad, protesting against the Supreme Court of Pakistan’s verdict in the Mubarak Sani case.

Tehreek-e-Khatam-e-Nabuwat, an umbrella name for different religious parties, has called for a protest in front of the Supreme Court after the July 24 Supreme Court verdict in the case, maintaining and ruling that while Ahmadis are declared non-Muslims, they retain the right to profess and proliferate their religion, provided they do not publicly use Muslim terms or introduce themselves as Muslims.

In February 2024, Mubarak Ahmed Sani, an Ahmadi, was accused of violating the Punjab Holy Quran (Printing and Recording) Amendment) Act 2021 by distributing the proscribed book ‘Tafseer-e-Sagheer’. However, the Supreme Court maintained that the alleged act occurred in 2019, before it was criminalised in 2021.

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The Supreme Court decision was widely criticized by the religious groups who demanded the federal and the Punjab government to challenge the decision and ensure punishment for Sani.

The Punjab government later filed a review petition in the Supreme Court while a petition was also filed by the Federal government on directions of the Prime Minister Shehbaz Sharif.

–IANS

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