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Pakistan PM Sharif welcomes IMF’s $7 billion funding agreement

The IMF said the new program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”

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Pakistan’s Prime Minister Shehbaz Sharif welcomed the International Monetary Fund’s decision to approve a $7 billion funding agreement for the country, his office said on Wednesday.

Islamabad had been working on implementing conditions that Sharif had previously called “strict” from the IMF to complete the 37-month loan programme agreed to in July, which the country hopes will be its last, Reuters reported.

The IMF said the new program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”

An immediate disbursement of about $1 billion will take place.

Sharif, on the sidelines of the United Nations General Assembly, told Pakistani media this week that Pakistan had fulfilled all of the lender’s conditions, with help from China and Saudi Arabia.

“Without their support, this would not have been possible,” he said, without elaborating on what assistance Beijing and Riyadh had provided to get the deal over the line.

Rollovers or disbursements of loans from Pakistan’s long-time allies, in addition to financing from the IMF, have helped the country meet its external financing needs in the past.

The government had also vowed to increase its tax intake, in line with IMF requirements, despite protests in recent months by retailers and some opposition parties over the new tax scheme and high electricity rates.

Pakistan has been struggling with boom-and-bust economic cycles for decades, leading to 22 IMF bailouts since 1958. Currently the country is the IMF’s fifth-largest debtor, owing the Fund $6.28 billion as of July 11, according to the lender’s data.

The latest economic crisis has been the most prolonged and has seen Pakistan facing its highest-ever inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.

Inflation has since eased and credit ratings agency Moody’s has upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to ‘Caa2’ from ‘Caa3’, citing improving macroeconomic conditions and moderately better government liquidity and external positions.

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Blast in Pakistan’s Dera Ismail Khan kills 11, injures 30

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Eleven people were killed and ​30 injured in a blast ‌in Dera Ismail Khan in northwestern Pakistan on Saturday, emergency service Rescue ​1122 said.

The Tehreek-e-Taliban Pakistan claimed responsibility for ​Saturday’s attack.

The blast occurred near ​Aman Mela in the Darazinda area of ‌the ⁠district, Rescue 1122 said in a statement.

Rescue teams from the Darazinda station reached the scene ​and began ​relief operations, ⁠providing medical assistance to the wounded and taking ​them to hospital, the ​service ⁠said.

Security incidents have continued in the district this month, including attacks ⁠involving ​the Pakistani Taliban.

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Imran Khan’s party postpones planned Islamabad march to October 4

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Jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf party has postponed ​a planned long march from Peshawar to Islamabad ‌until October 4, the chief minister of the PTI-ruled Khyber Pakhtunkhwa province, Sohail Afridi, told reporters on Friday.

PTI had planned ​to begin the march on September 27 to ​press for the release of Khan, who has ⁠been in jail since 2023. The PTI’s last ​large-scale protest two years ago ended in deadly clashes ​with security forces, Reuters reported.

Earlier this week, Pakistan curbed access to its capital, Islamabad, by blocking major highways with shipping containers and deploying ​tens of thousands of security forces, ahead of the ​march planned by Khan’s supporters.

Party spokesperson Zulfi Bukhari, however, told Reuters ‌that ⁠although they had moved the planned date to October 4, they could launch the march earlier.

“We can now do it whenever we deem fit. The question ​is to the ​government, as ⁠to how long they’re willing to keep the country closed off?”, Bukhari said.

Authorities have ​detained three of Khan’s sisters and hundreds ​of ⁠party activists in recent days, citing a need to maintain public order.

Khan, 73, a former cricket star ousted ⁠by ​parliament in a 2022 no-confidence vote, ​has claimed to be a political prisoner.

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Saudi Grand Mufti tells troops to be ready to sacrifice their lives fighting Houthis

State TV has ⁠in recent weeks aired footage of an alleged Houthi strike on a mosque in the kingdom’s south, and authorities have also accused the Houthis of launching an attack on Mecca, Islam’s holiest site.

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Saudi Arabia’s top religious authority called on soldiers in the kingdom to be ready to lay ‌down their lives to fight the Iran-backed Houthis until the group is ousted from power, a statement posted on the Saudi state news agency said.

The rare and strongly worded message by Saudi Grand Mufti Sheikh Saleh bin Fawzan Al-Fawzan was addressed to soldiers stationed at the country’s borders and ​drew heavily on Quranic verses and recorded sayings of the Prophet Mohammad related to sacrifice and struggle in defence ​of God, Reuters reported.

It comes after weeks of escalating violence between Saudi Arabia and the Houthis which has ⁠seen the Iran-backed group attack the kingdom with salvos of missiles and drones and Saudi Arabia respond with airstrikes.

Observers have ​been questioning whether Saudi Arabia will launch a broader military operation along with Yemeni government forces it backs.

“Protecting this great nation… and ​punishing anyone who seeks to lay a hand on even an inch of its territory are among the greatest duties and most virtuous acts of devotion, for which lives and souls may be sacrificed in seeking God’s pleasure,” said the statement, issued late Thursday.

Asserting the authority of the ​Saudi-backed internationally recognized Yemeni government over the entire country was “among the most pressing obligations,” it added.

Those government forces lost control of ​the vital Bab el-Mandeb waterway to the Houthis two weeks back, a blow to the kingdom, which has been mired in the conflict since ‌2015 ⁠after it launched an unsuccessful operation to oust the Houthis from the Yemeni capital Sanaa.

The recent fighting is the latest episode in 12 years of civil war in Yemen which had largely been frozen since a 2022 but has escalated again and has become linked to the wider Iran war.

“We ask God Almighty to grant you all his support, and to protect our countries and ​beloved Yemen from all harm. ​We also ask him to ⁠bring about the complete defeat of the Houthi group and those who assist and support them,” the statement said.

The Mufti’s letter adds to a growing religiously centered narrative by authorities in the ​conservative Sunni Muslim kingdom aimed at discrediting the Houthis, who follow a different sect of ​Islam.

State TV has ⁠in recent weeks aired footage of an alleged Houthi strike on a mosque in the kingdom’s south, and authorities have also accused the Houthis of launching an attack on Mecca, Islam’s holiest site.

“It is incumbent upon you, brothers serving on the front lines, to ⁠remain constantly ​prepared to perform your duty, to obey the rulers and your field commanders, ​and to carry out orders with the utmost precision, as God Almighty commanded the companions of his Prophet to do,” the statement said.

“You are following in ​the footsteps of the Prophet’s companions, defending the sacred sites of Muslims.”

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