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IMF sees no major flood impact on Pakistan’s economy
Islamabad: The International Monetary Fund (IMF) does not foresee any major setback to Pakistan’s economic growth or revenue collection this fiscal year due to the recent floods. Except for Punjab, provinces have also not reported significant economic losses, minimizing the chances of a downward revision in targets.
According to government sources, Pakistani authorities have assessed flood-related losses in three rivers, but the evaluation of destroyed or damaged infrastructure in Punjab is still ongoing.
Government sources said that an IMF delegation shared its views about the economic impacts of the floods during a kick-off meeting with Finance Minister Muhammad Aurangzeb. The governments of Balochistan, Sindh and Khyber-Pakhtunkhwa (K-P) shared their initial assessments of the flood losses with the IMF team during separate meetings.
The sources said that during the kick-off meeting, the IMF team observed that based on initial input there were no significant economic losses. However, the IMF said that it would wait for the damage assessment report, the sources added.
The global lender also saw no impact of the floods on the tax revenues. It underscored that the Federal Board of Revenue (FBR) should share the visible outcome of the transformation plan. Prime Minister Shehbaz Sharif had approved the transformation plan last year to revitalise the tax machinery and also gave over Rs55 billion for various initiatives under the plan.
The IMF’s observations about the impact of the floods came on the heel of the prime minister’s request to the IMF managing director to factor in the impacts of the floods during the review meetings. The IMF was apprised that the government could meet the flood-related spending from the contingency pool and it might not need additional resources, said the sources.
Pakistan-IMF review talks began on September 25, which are scheduled to continue until October 8. The successful culmination of these talks would pave the way for the release of two tranches, totalling over $1.2 billion under two different loan programmes.
Also, the sources said, Pakistan’s internal assessment was that there would not be any major impact of the floods on the economic growth. The government has set a 4.2% growth target and it still expects to achieve from 3.7% to 4%, the sources added.
The total economic losses are estimated by the Planning Commission at around Rs360 billion or 0.3% of the size of the economy. The commission’s assessment was that the GDP growth may still remain around 4%.
One of the reasons for not estimating major losses to the crops was that the sowing of rice and sugarcane took place more than the area initially estimated. This would offset the impact of loss of the crops, they added.
The current account deficit would also not increase beyond the estimated figure, as no additional need for imports is projected because of floods, the sources added. The Pakistani authorities also do not see any major increase in imports. However, the IMF has not yet shared its projection of the economic growth, imports and current account deficit.
The sources said that the IMF delegation raised the issue of the delay in publication of the Governance and Corruption Diagnosis Assessment report. The authorities assured the global lender that the government would release the report within this week.
The report points out numerous shortcomings in Pakistan’s judicial, administrative and corporate structure, which contributed to poor governance in every important sphere of life. The IMF has also given over a dozen recommendations to ensure rule of law and the integrity of the judiciary.
During its meetings with three provinces, the IMF pointed out low spending on health and education in the last fiscal year. The K-P government said that low spending on health was because of the fact that many posts of doctors could not be filled due to the slow hiring process.
The IMF inquired whether the provinces would be able to meet the additional spending on the flood-related rehabilitation. The sources said that the provincial governments did not indicate the need for any additional resources due to limited impact.
However, the position of the Punjab government will be important in this regard, which plans to provide a comprehensive rehabilitation package to the affected people. The province is the worst-affected by the floods and its meeting with the IMF will take place this week.
The governments of K-P and Sindh shared their initial assessments. According to the authorities, Sindh estimated that the economic losses may remain in the range of Rs40 billion to Rs50 billion. The k-p government told the IMF that losses might be in the range of Rs30 billion.
The FBR remains the weakest link in the chain. The tax authorities are struggling to achieve this quarter’s Rs3.083 trillion target. They needed over Rs500 billion on September 30 (today) – the end of the first quarter of the current fiscal year – to achieve the target.
The filing of the income tax return also stands around 3.2 million as against the total 7.7 million returns filed for the tax year 2024. The FBR has also extended the date for import duty and tax-free sugar by two months to November. Earlier, it had notified that the sugar can be imported tax-free till the September 30.
The FBR also granted a further two-month extension to traders in real-time electronic transmission of sales tax receipts to the computers of the FBR. It was the second extension, which is tantamount to accepting the impracticality of the earlier deadlines.
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UNSC votes to renew sanctions on South Sudan for 1 year, adopting resolution 2821; Pakistan abstains
Islamabad: With Pakistan abstaining, the UN Security Council extended for one year the sanctions imposed on South Sudan, including asset freezes, travel bans and an arms embargo – amid concerns expressed by some speakers that the African position on the issue is being overlooked and that sanctions are hindering progress towards lasting peace.
Nine of the 15 Council members voted in favour, none against, with six abstentions (Pakistan, China, Russia, Democratic Republic of the Congo, Liberia, and Somalia).
Along with renewing those measures until 31 May 2027, the Council also extended the mandate of the Panel of Experts assisting the 2206 South Sudan Sanctions Committee until 1 July 2027.
The United States drafted the text and led negotiations on it, with no substantive changes from the previous resolution 2781 (2025).
Earlier this year, the Council was warned that South Sudan risks relapsing into full-scale civil war.
Explaining his vote, Pakistan’s Deputy Permanent Representative, Ambassador Usman Jadoon, said that Islamabad had consistently abstained because sanctions “should be used judiciously, reviewed periodically and should not become open-ended or punitive in nature”.
“Their purpose should be to support political solutions and stabilization efforts, the Pakistani envoy said, adding, “We also note the African Union’s position against continued sanctions on South Sudan.”
The deteriorating political and security situation raises important questions regarding the effectiveness of the current sanctions regime, Ambassador Jadoon said.
Also Read: UN Adds Israel to List of Parties Accused of Conflict-Related Sexual Violence
South Sudan, the world’s newest country, gained independence in 2011, prompting the establishment of a UN peacekeeping mission to support stability. However, fighting between rival factions erupted in its capital Juba and quickly spread nationwide in 2013, triggering a major political and security crisis. A 2015 peace agreement collapsed soon after it was signed, but a Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan signed in 2018 led to the formation of a Transitional Government. Yet, violence and political tensions persist.
According to the Secretary-General’s latest report on the key benchmarks the period from 2025 to 2026 has been the most difficult since the agreement was signed, marked by stagnation and troubling reversals.
In Friday’s decision, the Council requested the Secretary-General, in close consultation with the United Nations Mission in South Sudan (UNMISS) and the Panel of Experts, “to conduct, no later than 15 April 2027, an assessment of progress achieved on the key benchmarks established in paragraph 2 of resolution 2577 (2021); including recommendations on appropriate updates to the benchmarks”. It also requested South Sudanese authorities to report, by the same date, to the Sanctions Committee on the progress achieved on the key benchmarks.
In his remarks, Ambassador Jadoon, went on to say, “Lasting peace in South Sudan will be advanced through sustained political engagement, implementation of the Revitalized Agreement,” and that “We will continue to engage constructively with all partners in support of durable peace and stability in South Sudan.”
United States’ Ambassador Jennifer Locette, while welcoming the mandate renewal, voiced disappointment over the lack of progress on benchmarks and deterioration of the political and security situation in South Sudan, due to a lack of political will by President Salva Kiir and other South Sudanese leaders.
She urged them to return to direct dialogue, calling it “farcical” to suggest dialogue is occurring when one of the signatories to the 2018 peace agreement is under house arrest and on trial.
The Council cannot accept obstruction of the peace process, the US envoy said.
She called on the transitional Government to deliver all steps to restore peace by declaring a national ceasefire, releasing detainees, renouncing the use of violence for political purposes and using public revenue appropriately to support South Sudan’s citizens.
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UN Adds Israel to List of Parties Accused of Conflict-Related Sexual Violence
New York: Israel has been included for the first time in a United Nations list of parties accused of committing conflict-related sexual violence, according to a report issued by the office of UN Secretary-General António Guterres.
The report states that the UN verified 31 cases of sexual violence allegedly committed by Israeli security personnel against Palestinians in Gaza and the occupied West Bank. According to the findings, 13 cases were documented in 2025, while the remaining incidents were recorded during the previous two years.
The verified cases involved men, women and children, and included allegations of rape, gang rape, forced nudity and other forms of sexual abuse. The report attributes the alleged violations to members of the Israeli military, police and prison authorities.
The United Nations noted that the documented cases represent only verified incidents and should be viewed as indicative of broader patterns rather than a complete account of all alleged abuses.
Israel strongly rejected the allegations. Israeli Ambassador to the United Nations Danny Danon accused the UN leadership of bias and misinformation, while Israel’s UN mission announced that it would suspend engagement with the office of Secretary-General António Guterres.
According to the report, UN investigators faced obstacles in conducting comprehensive investigations, including limited access to detainees and allegations that some victims were discouraged from reporting abuse.
The report comes amid growing international scrutiny over the treatment of Palestinian detainees. One widely reported case involved alleged abuse at the Sde Teiman detention facility, where leaked CCTV footage appeared to show guards mistreating a Palestinian detainee. The incident attracted global attention and intensified calls for accountability.
Human rights organizations and international observers have repeatedly raised concerns regarding conditions in Israeli detention facilities and the handling of abuse allegations. Israeli authorities, however, maintain that any suspected misconduct is investigated under Israeli and international legal standards.
The report also references allegations of sexual violence committed by Hamas. The UN stated that several former hostages released from Gaza reported abuse during captivity, although investigators were unable to independently verify some claims due to limited access.
The latest findings are expected to further intensify international debate over accountability, detainee rights and alleged violations of international humanitarian law during the ongoing conflict.
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South Air launches its first Karachi to Gwadar flight, marks start of operations
Karachi: Pakistan’s new private airline South Air has officially launched its first flight operations with its first Karachi Gwadar flight.
According to details, Flight No. Z8-905 departed from Karachi to Gwadar at 12:00 noon on Monday, marking a major milestone as South Air formally commenced its commercial air operations.
The airline management also confirmed that a new aircraft has reached Sukkur Airport as part of preparations to launch operations from the city in the near future.
Also Read: South Air ready to launch regional flight operations, connecting regions of pakistan
The launch of the Karachi, Gwadar route is being seen as an important step toward improving regional air connectivity, particularly for the coastal city of Gwadar.
The business community in Gwadar welcomed the new air service, saying it will significantly improve travel and trade links between Gwadar, Karachi and other major cities. Traders said the direct air connection will save time, ease travel difficulties, and enhance commercial activity in the region.
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