BBC Documentary Against Altaf Hussain

Pakistan strikes $5.3 billion loan deal with IMF

ISLAMABAD: The government of Pakistan Thursday agreed to a $5.3 billion loan deal with International Monetary Fund (IMF) to boost its foreign exchange reserves, fight an acute energy crisis, and prop up depreciating rupee

"The government of Pakistan and IMF have reached an agreement for a three-year programme of at least 5.3 billion dollars under an extended fund facility," Finance Minister Ishaq Dar announced during a joint press conference with the IMF mission here.

The minister said that the mutually agreed markup rate for the loan had been set at 3 percent.

Replying to a question, Dar said the new government had no choice but to borrow to avoid a balance of payments crisis.
 
"The borrowed money will be used to service external debts as we just cannot let Pakistan default on its payments, said he.

"We have not carried the begging bowl in our hands nor are we getting a grant, Pakistan is a member of IMF," Dar said.

Dar said the Pakistan had targeted a fiscal deficit of 4 of gross domestic product (GDP) in the next three years.

To a question he said that the federal government could not tax the agriculture sector as it was a provincial matter.

Finance minister also said that the loss-making state-owned enterprises (SOEs) would be restructured to help boost the economy.

Speaking on the occasion, IMF mission chief, Jeffrey Franks, said the loan agreement would be formally approved by Fund's executive board in early September.

"The interest rate will be set at 3 percent and that the loan will be payable over a longer period than conventional stand-by arrangements", he said.

The interest rate would be set at three percent and that the loan would be payable over a longer period than conventional stand-by arrangements, he added.

Franks said the aim was to bring down the fiscal deficit -- which neared nine percent last year -- to a more sustainable level and reform the energy sector to help resolve severe power cuts that have sapped growth potential.

He added an agreement with the State Bank of Pakistan was also designed to help rebuild forex reserves and keep inflation at acceptable

Franks told newsmen that the government of Pakistan had itself structured the loan programme according to its specific requirements.

Giving details Franks said the agreement necessitated reforms in Pakistan's energy sector as it aimed at improving the south Asian country's ailing economy.

"Pakistan will have to bring its loss-making SOEs back on a profitable track as they are eating away at the country's economy big time", said Franks

IMF mission chief said such liabilities could be privatized to give Pakistan's economy a breather, which would generate significant revenues.

Warning of ballooning fiscal deficit, Franks said the loan agreement also calls for a reduction in Pakistan's fiscal deficit.

As part of the loan agreement, Franks added, the Pakistani government had developed plans to improve tax collection and to eliminate tax loop holes and exemptions.

"The overall focus on this programme is to boost economic growth so we can have a better future for all Pakistanis," he said. "There will be some difficult decisions... but these will be necessary decisions to make sure that the economy is stable going forward."

According to a declaration issued by the IMF after the agreement the government of Pakistan was advised to abolish all the SROs and tax exemptions, widen the tax tax net, and improve revenue collection.

Rain in Some Area of Karachi

KARACHI: Citizens of Karachi were treated to some drizzling on Thursday that turned the weather pleasant after days of scorching heat



Drizzling was reported from the city’s Malir, Gulshan-i-Iqbal, Aisha Manzil, Karimabad, Garden, Shah Faisal Colony, Gulistan-i-Jauhar and North Karachi areas.

Light rain was also experienced on Shahrah-i-Faisal and other parts of the provincial capital whereas heavy showers were also reported from several localities in the city.

Twin Blast In Peshawar Death Reached to 22

PESHAWAR: At least 22 people including a child were killed and 47 others sustained injuries in a powerful blast near Badaber police station, Geo News reported.

Police said militants targeted security forces convoy in the attack.

The dead and injured have been rushed to Lady Reading Hospital. Condition of six injured is said to be critical.

Police and Law Enforcement Agencies (LEAs) have cordoned off the area.

Deputy Commissioner Peshawar Javed Marwat has confirmed that 20 people have been killed and 47 wounded in the attack.

Hospital sources said 18 bodies and 32 injured were present in the hospital.

Bomb Disposal Squad (BDS) said that at least 40 kg explosive material was used in the attack.

Ten nearby shops and vehicles were badly damaged.

Security forces have launched search operation in the area, Marwat added.

 The car bomb was parked in a market packed with the general public. When the FC convoy comprising of three vehicles passed by, the bomb exploded and hit a vehicle in the convoy," police official Shafiullah Khan told AFP.

"But many civilians were killed and wounded in the attack because there was a big rush in the market at the time," he added.

"So far, we have reports that two Frontier Corps soldiers have been injured. We don't know about any other losses," a military official told AFP on condition of anonymity.

Twin blasts kill 2 in Quetta’s Hazara Town 17 killed

QUETTA: At least two persons were killed and several others wounded when two back-to-back bombs struck Hazara Town in Qeutta on Sunday, police say. 

The blasts took place near an Imambargah in Aliabad locality of Hazara Town

According to Rescue teams 17 peoples Were killed and 44 people are  injured which were shifted to Bolan Medical Complex. 

Meanwhile, security forces cordoned off the area and launched a probe into the attack.

Quetta: blast in Aliabad Area 15 injured in Hazara

QUETTA: Fifteen people were injured in a blast in Aliabad area of Hazara Town here on Sunday, Geo News reported quoting rescue sources.



The injured have been rushed to Combined Military Hospital (CMH), Bolan Medical Centre and Civil Hospital.

Committee to propose steps for Aafia’s repatriation

ISLAMABAD: Federal Minister for Interior Chaudhry Nisar Ali Khan has formed a committee to make recommendations to the cabinet to facilitate Dr Aafia Siddiqui’s repatriation to Pakistan, said an official announcement on Saturday.

However, the composition of the committee remains a mystery with even the interior ministry’s spokesman unaware about it.

“I am not aware of the composition and do not even know if such a committee has been formed,” Interior Ministry spokesman Umar Hameed said.

Dr Siddiqui, declared by the Federal Bureau of Investigation as the most wanted female terrorist facilitator, is serving an 86-year prison term in the US.

Dr Siddiqui and her family have denied all allegations levelled by the US against her, including a murder attempt during her days in the US army base at Bagram, Afghanistan.

Meanwhile, an official told Dawn that composition of a task force on missing persons had almost been finalised, adding a formal announcement to this effect was expected next week.

The task force will prepare a list of missing persons after holding deliberations with security agencies, their families and human rights organisations and propose ways and means for their early return.

The task force will also look into the recommendations prepared by a commission on missing persons headed by retired Justice Javed Iqbal. The interior minister said the task force must be in place by next week for preparing a transparent policy in the light of the Supreme Court’s orders on the issue. He said processing of mercy petitions should be restarted and all processed cases be sent to Aiwan-i-Sadr for decision.

The minister asked Gilgit-Baltistan Chief Secretary Younus Dhagha to step up investigation into the recent murder of 11 tourists at the base camp of Nanga Parbat and keep him posted about the progress.