Pakistanis feel effects of Ramadan price hikes despite lower inflation

ISLAMABAD: The World Bank said on Friday economic stabilization was “taking hold” in Pakistan, making this an opportune moment for the group to sign an agreement for a ten-year plan to focus $20 billion in development lending in the cash-strapped country.

The new plan, known as the Country Partnership Framework, was announced by the World Bank last month and will focus the global institution’s pledge of $20 billion in areas including clean energy and climate resilience in the ten years from 2026.

The country has teetered on the brink of economic crisis for several years and economists and international financial institutions have called for major economic reforms. Pakistan is currently under a $7 billion International Monetary Fund bailout program, which requires the country to boost government revenues and shore up external sources of financing, much of which comes from loans from China and Gulf nations.

“This is an important moment for the partnership between the World Bank Group and Pakistan as we engage on this journey at a particular moment for Pakistan where stabilization is taking hold and there are new ambitions and new plans for development on the long term that are very aligned with the prioritizes of the World Bank Group in the country,” WB Country Director for Pakistan, Najy Benhassine, said in a video message on X.

“This is a groundbreaking joint commitment with the government of Pakistan both at the federal and provincial level to commit to focus on six of the most acute development challenges that the country is facing.”

The World Bank’s lending for Pakistan will start in 2026 and focus on six outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development and increasing private investment.

The finance ministry’s monthly outlook report said this week Pakistan’s consumer inflation was expected to remain stable in February and maintain a downward trajectory compared to the previous year. Inflation has eased since last year with CPI coming in at 2.4 percent in January compared to 24 percent in the same period last year. Authorities have credited the downward trend to economic stabilization under the IMF program secured last summer.

An IMF mission is due to arrive in Islamabad next week for the first review of the global lender’s facility.

“The primary surplus is expected to improve further in the coming months,” the finance ministry said, pointing to one of the benchmarks identified by the IMF.

The report also said that foreign remittances, a crucial lifeline for Pakistan’s economy, were expected to rise.

“Workers’ remittances recorded robust inflows of $20.8 billion during July-Jan FY2025, marking a 31.7 percent increase over $15.8 billion last year,” the ministry said.

ISLAMABAD: Pakistan Navy warship Yarmook participated in two defense exhibitions held in the United Arab Emirates (UAE), the navy said on Friday, highlighting the South Asian nation’s robust defense ties and active role in global maritime security.
The International Defense Exhibition (IDEX) and Naval Defense Exhibition (NAVDEX), held on Feb. 21-25 in Abu Dhabi, are premier global platforms to showcase advanced defense technologies and latest innovations, and to foster international collaboration.
More than 200,000 visitors attended the joint exhibition that saw participation of over 1,500 exhibitors from 65 countries, according to the IDEX website. Naval vessels from eight nations, including Pakistan, participated in the exhibition.
Upon arrival in Abu Dhabi, the Pakistani ship was received by Pakistan’s Ambassador to the UAE Faisal Niaz Tirmizi, followed by the Yarmook commanding officer’s meetings with various dignitaries to discuss matters of mutual interest, according to Pakistan Navy’s Directorate General of Public Relations (DGPR).
“During its stay, PNS YARMOOK remained open to visitors and welcomed numerous officials from the armed forces, business, and corporate sectors,” the DGPR said in a statement.
“Distinguished visitors included the UAE’s Minister of Tolerance and Coexistence, Romania’s Minister of National Defense, Yemen’s Defense Minister, the Chief of the Romanian Naval Forces, the Chief of Staff of the Egyptian Naval Forces, the Commander of the Royal Saudi Naval Forces, the Commander of the Royal Bahrain Navy, and the CEO of DAMEN Shipyard.”
Pakistan’s participation in NAVDEX 2025 highlights its strong defense ties with the UAE and its active role in global maritime security initiatives.
“Upon departure, PNS YARMOOK also conducted a passage exercise with the UAE Navy Ship AL-EMARAT,” the DGPR added.
PNS Yarmook regularly participates in joint operations and exercises with friendly countries in addition to its own operations.
Last July, Pakistan deployed PNS Yarmook to protect commercial vessels arriving at its ports. In August 2024, the warship conducted bilateral exercises with allied navies in Bahrain as part of a Regional Maritime Security Patrol deployment, aimed at enhancing naval coordination and joint operational capabilities in the region.