IMF accord halts erosion, sparks hope for sustainable growth

Sun, 13 Aug 2023, 12:35 PM

By Ashraf Wani/Shams Abbasi

ISLAMABAD, Aug 13 (APP): The recent Stand-By Agreement (SBA) signed between Pakistan and the International Monetary Fund (IMF) has proven to be a crucial lifeline, staving off the impending economic crisis that had cast a shadow over the country.

The accord, inked in the second week of July, has not only halted the alarming economic erosion but has also paved the way towards stabilization and potential growth.

However, the continuation of economic policies and structural reforms was vital to achieve sustainability.

The nine-month $3 billion agreement with IMF is aimed at supporting immediate efforts to stabilize the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan.

This infusion serves a dual purpose, providing immediate support to stabilize the economy against external shocks while concurrently carving out a fiscal space for social and developmental expenditures that will directly benefit the people of Pakistan.

While the IMF deal has offered a much-needed reprieve, economic experts emphasize that its true value lies in its function as a catalyst for fiscal discipline.

“It is encouraging to have deal with the IMF, but fiscal discipline is more important,” former Finance Minister, Dr. Hafeez Ahmed Pasha told APP.

He however contended that the accord is but a foundation and the pivotal task of maintaining fiscal responsibility remains the cornerstone for steering the nation toward sustainable economic growth.

“Pakistan had twenty-two programs with the IMF. However, their implementation and maintaining fiscal discipline were always vital to bring about structural reforms,” Pasha said also highlighting the importance of long-term planning for sustainable economic development.

The far-reaching impact of this agreement is manifested across various sectors. The restoration of investor and business confidence has breathed fresh life into the economy, creating a favorable climate for increased investments.

President Pakistan Federation of Chambers of Commerce and Industry (FPCCI), Irfan Iqbal Shaikh, predicts a surge in foreign investor confidence and an overall enhancement of market sentiment, not only revitalizing Pakistan’s internal landscape but also augmenting its external profile.

Swiftly following the accord’s approval, the foreign exchange reserves strengthened as Saudi Arabia and the United Arab Emirates deposited $2 and $1 billion respectively, lifting the reserves up to around $13 billion from a very low.

This timely injection of foreign exchange has averted a potential crisis triggered by shortages of essential imports like fuel, food, and medicines.

For Prime Minister Shehbaz Sharif, the SBA signifies a pivotal stride towards his coalition government’s overarching mission of stabilizing the economy and ensuring macroeconomic equilibrium.

Meanwhile, former Finance Minister Senator Mohammad Ishaq Dar lauded the agreement as a promising trajectory toward economic stabilization, an assertion backed by the country’s recovering stock exchange, which had surged beyond the 48,000-point benchmark.

Notably, global rating agency Fitch Ratings has upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC-‘, reflecting a positive trajectory in the nation’s economic condition. The significance of this endorsement cannot be understated, signaling improved confidence from international financial quarters.

Abid Sulhari, Executive Director, Sustainable Development Policy Institute (SDPI) underscores the deal’s indispensability in revitalizing the economy.

“The agreement not only facilitates ongoing support from bilateral and multilateral partners but also carries the potential for a robust economic revival, contingent upon an unwavering commitment to fiscal discipline,” he points out.

As the nation stands at a crossroads, critical policy implementations loom large, promising to reshape both domestic and external economic landscapes. Alongside fiscal discipline, the continuation of well-calibrated economic policies and sustained political stability are pivotal for fostering long-term economic sustainability.

Pakistan finds itself navigating through challenging times, grappling with persistent inflation projected to average at 21 percent for the current fiscal year (2023-24). A recent monetary policy announcement by the nation’s central bank has maintained the key interest rate at 22 percent, with a gradual decline in inflation anticipated during months ahead.

It is worth noting that, to date, the IMF has disbursed $1.2 billion to the State Bank of Pakistan (SBP) as part of the agreed-upon $3 billion SBA. The remaining $1.8 billion is contingent on successful reviews scheduled for November 2023 and February 2024, underscoring the ongoing partnership and the need for sustained progress.

No doubt, the IMF agreement has undeniably rescued Pakistan from the precipice of economic crisis, heralding a renewed sense of optimism and hope. While the financial injection from the IMF is a pivotal lifeline as the experts assert that a nation’s journey toward economic stability hinges on its commitment to fiscal responsibility, pragmatic policy implementations and political cohesion.

As Pakistan charts a course through challenging economic terrain, the hard-fought gains secured through this accord must be met with an unwavering resolve to ensure sustainable growth and prosperity.

Since the country is passing through hard times, maintaining economic growth and steering the country out of turmoil, need to be the top priority of upcoming governments by embarking on prudent policies and stringent measures to bring in a viable fiscal discipline.

BISP Nashonuma – A contributor to prevent stunted growth

NNPS Desk

Sun, 13 Aug 2023, 12:23 PM

By Shumaila Noreen

ISLAMABAD, Aug 13 (APP): The prevalence of stunted growth among children due to malnutrition is still one of major daunting tasks with most of developing countries buttressing efforts to cope with this challenge for ensuring the well-being of their future generations.

This challenge becomes further enormous for countries like Pakistan where according to statistics, malnutrition rates touch a stunting figure of 40.2 percent besides 28.9 percent underweight and 17.7 percent wasting persist and are indicative of an ongoing child nutrition crisis.

Such levels of malnutrition rank Pakistan as the second-highest burdened country in the region and ring alarm bells for the policymakers as how they could lift this nation to the international horizons for competing with the developed nations.

Taking cognizance of the gravity of the situation, the Benazir Income Support Program launched a valuable initiative of Benazir Nashonuma for preventing stunted growth in children, besides extending benefits to the poor on various fronts.

For those belonging to disadvantaged groups and struggling to meet their both ends in prevailing inflation, the Benazir Nashonuma scheme is not less than any blessing for mother and child care. This initiative is not only meeting their nutritional needs but incentivizing mothers with cash in return of attending proper training sessions.

“We didn’t know how to take care of children and their hygiene. It was just a routine matter for us,” Bakht Zaiba, a beneficiary from Islamabad said. “Then one of my relatives told me about this program. We visited the BISP office where after biometrics, the officials checked my kid’s health and gave me some dietary supplements for him.”

She revealed that after having the supplements, her kid remains usually in peace and does not cry. “With the cash amount of Rs. 2000 I received at the BISP office, I bought some fruits and milk.”

“It is because of this diet that me and my kid both are healthy now. The best thing in Benazir Nashonuma program is that they guide mothers thoroughly about kid’s health and hygiene”, she said.

Benazir Nashonuma is a Conditional Cash Transfer program linked with health and nutrition addressing stunting prevention and promoting dietary diversity during the first 100 days window of opportunity.

The primary objectives of the program were to prevent stunting in children under two years of age, improve weight gain of pregnant women during pregnancy, reduce anemia and micronutrient deficiencies and prevent low birth weight.

Another beneficiary attending a training session at Benazir Nashonuma Center in Karachi said, during her first pregnancy, she was very weak. “But, because of specialized nutritious food, we are getting from BISP, I am feeling much better. Along with food, I also got money to buy fruit and meat”.

She said through this program, I also came to know about importance of vaccination.

“Previously I used to be weak and sometimes faint during pregnancy. But when I started to eat Maamta and followed a healthy diet, I felt better.”

The outgoing coalition government had increased the coverage of the Benazir Nashonuma program from 0.17 million to 0.8 million families last year with an expected increase up to 1.5 million families during fiscal year 2023-24.

Considering the high percentage of stunting, the government has also rapidly expanded program to all districts of the country with establishment of 488 facilitation centers at tehsil and district-level health facilities.

The budgetary allocation for this initiative was increased from Rs. 4.9 billion to Rs. 20 billion (410 percent increase) for FY 2022-23 that had been further increased to Rs. 32.3 billion (61 percent increase) for FY 2023-24.

According to former Federal Minister for Poverty Alleviation and Social Safety, Shazia Marri, Pakistan People’s Party always focused on initiatives meant for welfare of the poor people.

“Expanding scope of the Benazir Nashonuma program to more districts for addressing the issue of stunted growth reflects our government’s commitment to uplift disadvantaged sections”, she said.

World Food Program (WFP) is the lead implementing partner for Benazir Nashonuma program as it addresses stunting among pregnant and lactating women (PLW) and their children less than two years of age through the provision of additional cash of Rs 2,000 per quarter per PLW and boy child and PKR 2,500 per quarter per girl child of BISP beneficiary families.

In return, mothers are required to attend regular antenatal health checks and awareness sessions during pregnancy, consume specialized nutritious food (SNF), and ensure immunization and regular health checks for their children.

The first 1,000 days of a child’s life are a window of opportunity to lay a strong foundation for later achievements. This time frame is a period of enormous change characterized by a high degree of plasticity in a child’s neurological development.

Investments in the early years of life are the foundation of human capital, and human capital is a key driver for economic development.

In this era of challenges like economic turmoil, rising inflation, and food serious security issues due to rising population, a well-nourished generation was imperative to lay foundations for a strong nation.

Therefore, besides increasing our edible and grain foods product, there is also a dire need to reach out to the poor, especially in rural areas, and educate them about healthy dietary routines.

Islamabad police chalk out elaborate security, traffic arrangements on Independence Day

NNPS Desk

Sun, 13 Aug 2023, 11:15 AM

ISLAMABAD, Aug 13 (APP): Islamabad police have chalked out a comprehensive security and traffic plan on the occasion of independence day (August 14) and decided to deploy security personnel at important installations as well as public places too.

A source said that Police, with the help of sniffer dogs and security equipment, will comb the green areas of Daman-e-Koh, Pir Sohawa and Margalla hills.

Islamabad police and intelligence personnel will search Islamabad’s sensitive areas in plain clothes.

It has been also planned to erect police pickets on almost all the city’s major roads. The city has been divided into various security zones for Independence Day and extra contingents of Rangers, Frontier Constabulary, and Islamabad Police will be deployed there along with vigilance at various entry and exit points of the city.

“We’re fully geared up and exercising extra vigilance. There are over dozen points from Faizabad to Pirwadhi Square at GT Road for entering Islamabad and we’ve covered all these points by deploying extra police force there,” a police source said.

He said that the city’s forested areas will be scanned with sophisticated security equipment while security personnel on horses will patrol the city.

Islamabad residents and those coming to the city from other areas have been appealed to keep with them their CNIC or other identification documents.

Islamabad Capital Police (Traffic Division) has also made a specialized traffic plan to ensure smooth traffic and safety precautions across the city.

This plan includes the deployment of a substantial workforce, comprising 550 officers and personnel.

A Superintendent of Police (SP), four Deputy Superintendents of Police (DSPs), and 22 inspectors have also been assigned duties.

To maintain order and security on the roads during the celebrations on August 13 and 14, special squads have been formed.

These squads will be stationed at key locations throughout the city and equipped with roadblocks.

The primary focus of the force is to crack down on violations such as one-wheeling on motorcycles, vehicles with tinted windows, reckless driving, and those with noisy silencers.

To keep citizens informed about the traffic situation, ICTP Radio FM 92.4 will provide real-time updates on the roads.

This initiative aims to create awareness and facilitate smoother traffic movement during the celebrations.

The source said that Islamabad Capital Police’s rigorous traffic and security plan demonstrates its commitment to ensuring the safety of citizens and maintaining order in the city.

Global Young Leaders Dialogue very timely initiative: Ambassador Haque

NNPS Desk

Sun, 13 Aug 2023, 10:56 AM

BEIJING, Aug. 13 (APP): Global Young Leaders Dialogue (GYLD) is a very timely initiative at a time and in a world that is faced with multiple challenges – geopolitical tensions, rising prices of food and fuel, energy crisis, climate change, hunger and poverty – putting pressure on many, especially on the developing countries in terms of economy.

These views were expressed by Pakistan Ambassador to China Moin ul Haque while addressing the Global Young Leaders Dialogue (GYLD) 2023 Annual Forum held in Beijing.

Themed as “Global Development and the Power of Young People”, this year’s forum gathered about 150 participants from nearly 30 countries and regions, including youth leaders, scholars, officials, and so on, China Economic Net (CEN) reported on Sunday.

On the occasion, participants shared insights on topics of global focus, such as cross-cultural communication, climate change and sustainable development of cities.

“Young people in all their diversity are a driving force in accelerating change for the realization of sustainable development goals, world peace, and a greener and healthier planet. I am so pleased to see a dialogue like this one has been convened by CCG in China,” said Sima Sami Iskandar Bahous, Under-Secretary-General of the United Nations and Executive Director of UN Women.

Youth leaders attending the event pinpointed that with the rapid development of science and technology, it gets easier for young people to communicate with others around the world and share their views and experiences, thus promoting the integration of diverse cultures and mutual understanding.

For instance, when it comes to climate change, one of the major challenges haunting the world today, youth can promote sustainable lifestyles to society through education, innovation, and action, and inspire widespread awareness.

Jointly initiated by the Center for China and Globalization (CCG) and the Academy of Contemporary China and World Studies (ACCWS) in 2020, the Global Young Leaders Dialogue (GYLD) program is a unique communication, education, and professional development platform for young achievers with diverse regional, cultural, disciplinary, sectorial, and professional backgrounds across the globe.

The GYLD 2023 Annual Forum is the annual event of the GYLD program.