Finance Minister meets IMF and World Bank heads I Pakistan and UAE ink agreements, MoU to enhance bilateral ties
In Focus
Government-PPP dialogue on Cholistan project continues
On 21 April, Prime Minister’s adviser Rana Sanaullah held the second telephonic conversation with Sindh Chief Minister Sharjeel Memon, indicating an intra-coalition thaw between the Pakistan Muslim League (N) (PMLN) and the Pakistan People’s Party. Both parties have been unable to see eye-to-eye on the Cholistan canal project proposed on the Indus River, to the extent that the PPP threatened to walk out of the coalition at the centre. Matters took a turn after the PML-N invited the PPP to discuss the issue. In this regard, Sanaullah expressed the government’s commitment to adhere to the 1991 Water Accord and resolve the issue on “administrative and technical grounds,” in a separate statement. In response, the Sindh government asked all nationalist parties to call off their demonstrations across the province. Despite all the progress, Sindh Minister Saeed Ghani criticized the federation for “deliberately attempting” to weaken the PPP via the canal project. He said: “They must remove any notion from their minds that” the PPP “will accept the canal projects through negotiations. We categorically reject them.” On the same day, according to sources reported by The Express Tribune, the government has constituted a negotiations committee to allay PPP and other stakeholders’ grievances over the canal project. The committee, led by Deputy Prime Minister Ishaq Dar, will attempt to arrive at a political resolution to all objections arising against the project. Additionally, the PML-N also plans to table the project in the Parliament and convene a meeting of the Council of Common Interests if necessary. (Imran Ayub, “Coalition partners put canals on the negotiating table,” Dawn, 22 April 2025; Amir Khan, “Govt to form high-level committee to address PPP concerns over canal project,” The Express Tribune, 21 April 2025)
Finance Minister meets IMF and World Bank heads
On 21 April, Finance Minister Mohammad Aurangzeb met with the heads of the International Monetary Fund and the World Bank in Washington on the sidelines of the 2025 Spring Meetings of both institutions. These meetings provide a platform for central bank governors and finance ministers from 191 countries to address international challenges like sovereign debt and climate finance, among others. Diplomatic sources report by Dawn revealed that these discussions have been “constructive” as the minister’s meeting with the IMF managing director, Kristalina Georgieva, is anticipated to positively impact the ongoing USD 7 billion Extended Facility Fund in Pakistan. It comes ahead of the IMF’s review for the second tranche release on 14 May. Aurangzeb thanked Georgieva for the Staff Level Agreement on the new Resilience Sustainability and the first review of the EEF while expressing the Pakistani government’s commitment to continue with the reforms. He also met World Bank President Ajay Banga to discuss Pakistan’s medium-term reforms and development financing. In the upcoming period, Pakistan is expected to hold talks with China, the US, the UAE, Saudi Arabia, and European representatives, along with global credit rating agencies, commercial banks, and multilateral lenders. Major discussions on the week’s agenda include a meeting with China’s foreign minister to request a reschedule of USD 3.4 billion debt, and a meeting with a US Treasury official to highlight Pakistan’s USD three billion financing gap for the Reko diq copper-gold project. (Anwar Iqbal, “Focus on recovery, reforms as Aurangzeb meets IMF, World Bank heads,” Dawn, 22 April 2025; “Aurangzeb holds meeting with IMF chief,” The News International, 22 April 2025)
Pakistan and UAE to formulate Joint Consular Affairs Committee, Joint Business Council and enhance cultural ties
On 21 April, UAE and Pakistan inked “two agreements and a MoU” with an objective to further intensify bilateral ties and increase cooperation in multiple areas. This came after UAE Deputy Prime Minister and Minister of Foreign Affairs Sheikh Abullah Zayed Al Nahayan met with Deputy PM and Foreign Minister Ishaq Dar in Islamabad. As per one of the agreements, a “Joint Consular Affairs Committee” would be formulated. The other agreement is regarding the resolve of the two countries to boost “cultural” ties. As per the MoU, a “UAE-Pakistan Joint Business Council” would be formulated for enhancing cooperation in trade. Zayed Al Nahayan stressed on the need to put “joint efforts” for enhancing “development priorities” of UAE and Pakistan. He said “UAE and Pakistan share a long-standing friendship and we are dedicated to exploring opportunities for cooperation across various fields.” Dar also highlighted how UAE and Pakistan have maintained deep brotherly ties. PM Sharif had also stated about his commitment to enhance “political ties” with the UAE and translate it to “mutually beneficial economic partnership.” (Sibte Arif, “Pakistan, UAE to set up joint business council,” The News International, 22 April 2025; “PM seeks economic partnership with UAE,” The Express Tribune, 22 April 2025)
In Brief
POLITICS & GOVERNANCE
Growing divide between PTI and JUI-F
On 21 April, Pakistan Tehreek-e-Insaaf (PTI) leader Omar Ayub Khan hinted at a widening gulf between the PTI and the Jamiat-e-Ulema-e-Isami (F) (JUI-F) despite attempts at reconciliation. In a statement, Khan revealed said: ““We will take our caravan and move forward. Whoever comes in the caravan is fine, we will not force Maulana Sahib to support” the grand opposition alliance. This follows PTI’s efforts, with assistance from its allies, to insert the JUI-F into the Tehreek Tahaffuz Aayen-i-Pakistan (TTAP) alliance. However, recent reports highlighting a potential deal between Imran Khan and the establishment for the former’s release has set the two parties at odds. On the same day, the JUI-F founder Fazlur Rehman expressed an interest in mending ties with the PTI “to an extent where political dialogue is possible and national issues discussed” while speaking at a conference alongside Jamat-i-Islami chief in Mansoora. He stated that despite political differences, there is no personal vendetta with the Pakistan Muslim League (N) and the Pakistan People’s Party. Similarly, the JUI-F seeks “relations with the PTI to be cordial enough to carry on political dialogue.” However, other leaders like JUI-F Senator Kamran Murtaza demanded the PTI explain its stance, on whetherit wants to launch an anti-government rally or warm up to the powers. (“PTI-JUI gulf widens despite overtures,” Dawn, 22 April 2025)
ECONOMY
Government seeks to raise PKR 52 billion from domestic market
On 22 April, The Express Tribune reported that the federal government seeks to obtain “debt” from the “domestic capital market” for financing “three clean energy projects.” The realization of the three projects still requires PKR 52billion. The government aims to “raise debt” by floating the country’s “first sustainable investment asset-backed Sukuk bonds.” The bonds will be purveyed under the recently brought “Sustainable Investment Sukuk Framework.” As per the members of the Ministry of Finance, the first set of Sukuk would fall somewhere between PKR 3000 crores. The Finance Ministry’s first set of priorities include providing funds for the completion of Garuk storage dam in Balochistan, Naigaj dam in Sindh and Shagarthang hydropower project in Skardu. Previously, in 2021, the Water and Power Development Authority (WAPDA) had floated a Sukuk bond for obtaining PKR 640 crores to fund the “extension project” of “Tarbela dam.” The “delay” incurred in the construction of Garuk Dam has resulted in surging the cost by PKR 2800 crores. Government still requires close to PKR 500 crores for its completion. Similarly, for the Nai Gaj Dam, the government still requires PKR 2200 crores. For Shargarthang hydropower project, the government needs PKR 2500 crores so that it can produce 26 Megawatts of power. The same would be used to provide electricity to Skardu and the nearby regions. (Shahbaz Rana, “Govt to raise Rs52b via Green Sukuk,” The Express Tribune, 22 April 2025)
USD 12.5 billion inflows in foreign loans: Economic Affairs Division report
On 21 April, a monthly report ‘Foreign Economic Assistance (FEA)’ released by the Economic Affairs Division (EAD), revealed assistance amounting to USD 12.5 billion in foreign loans in the first 9 months of the current fiscal. The annual target is USD 19.2 billion. Against an annual target of USD 19.4 billion in FEA, total FEA secured between July and March was valued at USD 5.51 billion, lower than the USD 6.9 billion assistance secured in the last fiscal. Besides, three roll-overs and new disbursements from Saudi Arabia, UAE, and China were recorded in the nine months, bringing the total assistance to USD 12.46 billion. However, a 20 per cent decline in flows, at USD 5.5 billion in the July-March period in assistance compared to USD 7.9 billion inflows in the last year. It was due to the delayed IMF bailout and the USD 1 billion disbursements that followed it. Moreover, the EAD reported an inflow of USD 504 million worth loans from foreign commercial lenders in the first nine months of 2024-2025 fiscal,, indicating a minor recovery in funding from commercial banks that avoided financing Pakistan in the previous year. (Khaleeq Kiani, “Pakistan receives $12.5bn in foreign loans,” Dawn, 22 April 2025)
SECURITY
Militant kills police official accompanying polio team in Khyber Pakhtunkhwa
On 22 April, The News International reported on a militant attack on the polio vaccinators in South Waziristan, Khyber Pakhtunkhwa. A police official who was providing security to the polio team lost his life. The police managed to neutralize one of the militants. The militant had a “rocket launcher and a machine gun” which were later confiscated by the police. PM Sharif denounced the assault and paid his respect to the police official who lost his life in the attack. He urged the citizens to fight back against the “pressure” exerrted by militants. Further, he stated that the vaccination “campaign” must remain uninterrupted. (“Cop martyred in attack on polio team in Waziristan,” The News International, 22 April 2025)
Security forces kill 16 TTP militants in three separate operations in Punjab and KP
On 21 April, 16 Tehreek-e-Taliban Pakistan (TTP) militants were neutralized by the security forces. The three military operations were carried out in Punjab and Khyber Pakhtunkhwa. In Punjab, the counter-terrorism department of police neutralized ten militants in Mianwali. The police initiated the operation along with the Rangers after it got information regarding the presence of militants in Mullakhel. It was also confirmed by the sources of The Express Tribune that the police are initiating “further action.” As per Punjab police, in the cross-fire with the militants, a citizen got wounded. However, the police officials and the Rangers did not suffer any injury. CM Maryam Nawaz applauded the efforts of the Punjab police and the counter-terrorism department for successfully neutralizing the militants. Praise for Punjab police and the counter-terrorism department also came from Interior Minister, Mohsin Naqvi. He called it as “significant success” for the police.
In a separate operation, in North Waziristan, KP, five TTP militants were neutralized. The security forces had launched an intelligence-based operation (IBO) after they received information regarding the “presence” of militants. In South Waziristan, as per Law-enforcement agencies, a notorious high-profile militant named Zabi Ullah was neutralized. The Inter-Services Public Relations had later stated that further operations are being initiated to root out any hiding militants. (Tariq Saeed Awan, “16 TTP terrorists neutralised in Punjab, K-P,” The Express Tribune, 22 April 2025)
AF-PAK
On Deputy PM and Foreign Minister Ishaq Dar’s visit to Afghanistan: “Pak-Afghan relations may be moving in a more positive direction” says an editorial in Dawn
On 22 April, an editorial in Dawn titled “Dar in Kabul” discussed the implications of Deputy PM and Foreign Minister Ishaq Dar’s visit to Afghanistan. The editorial states that the “visit” could signify that the “relations” between the two countries is going in the right “direction.” The editorial reminds how the visit was preceded by border skirmishes and Pakistan continually voicing its concerns regarding Taliban government not being able to eliminate the threat posed by Tehreek-e-Taliban Pakistan (TTP). The editorial highlights the substantial damage caused by the TTP to Pakistan and stresses on the need for both Afghanistan and Pakistan to neutralize the group. The editorial mentions the “report” by BBC as per which the TTP and various other militant organizations are exploiting the weaponry which the US forces had abandoned while leaving Afghanistan. The editorial argues that the US and Taliban government must make sure that the militant groups do not get their hands on the abandoned weapons. The editorial also urges the government to ensure that the dignity of the refugees who are being deported remains unharmed.
On the same day, an editorial in The News International titled “Pak-Afghan ties” highlighted the domestic response to Dar’s visit to Kabul. The editorial mentions how Muhammad Ali Saif, who is the advisor to KP CM, called out the federal government for not including the KP government in the talks. As per Muhammad Ali Saif, the same could be seen as “lack of seriousness” on part of the federal government. The editorial reminds that the “bilateral relations” come exclusively under the realm of the federal government. The editorial also sees Dar’s visit as a move in the positive “direction.” The editorial focuses on the need for uninterrupted “engagements” between Afghanistan and Pakistan which could bring “positive” results. The editorial hints towards the possibility that the Taliban government might put an end to their backing for the militants given the “international pressure,” in addition to the “pressure” from Islamabad, over how militants are getting their hands on abandoned American weapons. (“Dar in Kabul,” Dawn, 22 April 2025; “Pak-Afghan ties,” The News International, 22 April 2025)
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Whether one likes it or not, the key to the unity of the nation lies with the prisoner of Adiala Jail. What kind of prisoner is he who has become a brand? Can someone tell me the science in which the nation can be kept united by keeping a popular leader in jail?
Paras Jahanzeb
- PTI Khyber Pakhtunkhwa
Two years ago, when I did a show on these mineral deposits in North Waziristan, the social media warriors of the PML-N abused me a lot. A petition was filed against me in the Peshawar High Court. Now everyone is throwing bhangra at those mineral deposits and I am just smiling.
- Hamid Mir
No province can interfere in any other province and Punjab, being a big province, has always sacrificed for its younger brother. Punjab can never take a single drop of Sindh's water nor does it accept it.
Provincial Minister of Information Uzma Bukhari
- PMLN
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"Men get uncomfortable when women begin to stake a claim to the political stage."
- An opinion in Dawn, 'A question of gender.’
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