International
‘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.
“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.
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.
–IANS
hamza/uk
International
Lee Hsien Yang seeks refuge in United Kingdom
Lee Hsien Yang, the youngest son of Singapore’s founding father, the late Lee Kuan Yew, announced on Tuesday that he is now a political refugee in the United Kingdom after seeking asylum from the British government “as a last resort.”
“I remain a Singapore citizen and hope that someday it will be safe to return home,” Lee stated in a Facebook post, as reported by Channel News Asia (CNA).
Citing what he described as the Singapore government’s “attacks” against him, Lee, who is the younger brother of former Prime Minister Lee Hsien Loong, revealed that he sought asylum protection in 2022.
Lee Hsien Yang and his late sister, Lee Wei Ling, who passed away earlier this month, have been in conflict with their brother Lee Hsien Loong over the fate of their father’s home following his death in 2015, resulting in a public dispute that has estranged the siblings.
In an interview with the UK-based newspaper The Guardian, Lee alleged that a “campaign of persecution” compelled him to seek asylum in Britain.
In response to his claims, the Singapore government stated that there is “no basis” for his allegations of “a campaign of persecution” or other assertions regarding political repression in the country.
“Singapore’s judiciary is impartial and makes decisions independently. This is why Singaporeans have a high level of trust in the judiciary,” a government spokesperson remarked.
The spokesperson added that there are no legal restrictions preventing Lee and his wife, lawyer Lee Suet Fern, from returning to Singapore. “They are and have always been free to return to Singapore,” the spokesperson said.
Lee and his wife have been outside of Singapore since 2022, having opted not to attend a scheduled police interview regarding potential offenses related to providing false evidence in judicial proceedings concerning their father’s will and the family home.
Lee and his late sister, who had been living at the property, alleged they felt threatened while trying to fulfill their father’s wish to demolish the house. They also accused their elder brother, former Prime Minister Lee Hsien Loong, of abusing his governmental influence to advance his personal agenda.
International
Indo-Russian ties are stronger than ever before at BRICS
Kazan, Russia: Prime Minister Narendra Modi held a bilateral meeting with Russian President Vladimir Putin on the sidelines of the 16th BRICS Summit.
During the meeting, President Putin remarked, “I recall our meeting in July, where we had productive discussions on various issues. We’ve also spoken over the phone several times. I am very grateful you accepted the invitation to come to Kazan. Today, we will attend the BRICS Summit’s opening ceremony, followed by dinner.”
PM Modi responded by expressing his appreciation, saying, “I sincerely thank you for your friendship, warm welcome, and hospitality. It’s a great pleasure to visit such a beautiful city as Kazan for the BRICS Summit. India shares deep historical ties with this city, and the opening of our new embassy here will further strengthen these connections.”
International
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.
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
int/psd
International
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.
Typically, these pilgrims also visit Najaf as part of their journey to Karbala.
–IANS
int/jk/arm
International
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.
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
int/jk/as
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