Pakistan’s finance minister steps down ahead of IMF deal

Pakistan’s finance minister Asad Umar has stepped down from cabinet, he announced Thursday, ahead of securing a crucial bailout deal with the International Monetary Fund. (File/Reuters)
Updated 18 April 2019
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Pakistan’s finance minister steps down ahead of IMF deal

  • Pakistan has gone to the IMF repeatedly since the late 1980s, and last received an IMF bailout in 2013 to the tune of $6.6 billion
  • Experts have warned that any tough measures imposed by the IMF could impact Khan’s grand plans for an Islamic welfare state in Pakistan

ISLAMABAD: Pakistan’s finance minister Asad Umar has stepped down from cabinet, he announced Thursday, ahead of securing a crucial bailout deal with the International Monetary Fund.
Umar, one of cricketer-turned-premier Imran Khan’s most powerful ministers, had been entrusted with the task of negotiating the long-delayed bailout as Pakistan’s cash-strapped economy faces a balance-of-payments crisis.
“As part of a cabinet reshuffle, PM desired that I take the energy minister portfolio instead of finance,” Asad Umar tweeted.
“However, I have obtained his consent to not take any cabinet position. I strongly believe @ImranKhanPTI is the best hope for Pakistan and inshallah (God willing) will make a naya (new) pakistan,” he wrote.


There was no immediate statement from Khan’s office or confirmation of who would replace Umar, and it was not clear how Umar’s absence would impact the deal.
Pakistan has gone to the IMF repeatedly since the late 1980s, and last received an IMF bailout in 2013 to the tune of $6.6 billion.
Umar has said often that a deal is coming soon, and that it will be the last one.
Earlier this week Hammad Azhar, a state minister for revenue, tweeted that Umar had reached an “agreement in principle” on an IMF deal during a recent trip to Washington, with the agreement to be finalized later this month.
Experts have warned that any tough measures imposed by the IMF could impact Khan’s grand plans for an Islamic welfare state in Pakistan.
Forecasts by the IMF and World Bank suggest the Pakistani economy is likely to grow between 4.0 and 4.5 percent for the fiscal year ending June 2019, compared to 5.8 percent growth in the last fiscal year.
The United Arab Emirates, Pakistan’s largest trading partner in the Middle East and a major investment sources, recently offered $3 billion to support Pakistan’s battered economy.
Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan’s visit to the Kingdom in October.
It has also received billions of dollars in Chinese loans to finance ambitious infrastructure projects.


Philippines’ Duterte loses patience, orders trash shipped back Canada

Updated 22 May 2019
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Philippines’ Duterte loses patience, orders trash shipped back Canada

  • Canada says the waste, exported to the Philippines between 2013 and 2014, was a commercial transaction not backed by the Canadian government
  • Canada has since offered to take the rubbish back

MANILA: President Rodrigo Duterte has ordered his government to hire a private shipping company to send 69 containers of garbage back to Canada and leave them within its territorial waters if it refuses to accept the trash, his spokesman said on Wednesday.
“The Philippines as an independent sovereign nation must not be treated as trash by other foreign nation,” Presidential Spokesman Salvador Panelo told a media briefing.
Canada says the waste, exported to the Philippines between 2013 and 2014, was a commercial transaction not backed by the Canadian government.
Canada has since offered to take the rubbish back and the two countries are in the process of arranging the transfer.
But Canada missed a May 15 deadline set by Manila to take back the shipment, prompting the Philippines to withdraw top diplomats from Canada last week.
“Obviously, Canada is not taking this issue nor our country seriously. The Filipino people are gravely insulted about Canada treating this country as a dump site,” Panelo said.
The Canadian embassy in Manila did not immediately respond to a request for comment.
The Philippines has made several diplomatic protests to Canada since a 2016 court ruling that the garbage be returned.
The consignments were labelled as containing plastics to be recycled in the Philippines but were filled with a variety of rubbish including diapers, newspapers and water bottles.
The issue is not the only one to strain ties between the two countries.
Last year, Duterte ordered the military to cancel a $233 million deal to buy 16 helicopters from Canada, after Ottawa expressed concern they could be used to fight rebels.