AFP

Georgia criminal probe poses greatest threat to Trump

Prime-time congressional hearings and an unprecedented FBI raid on his home have ramped up legal pressures on Donald Trump, but analysts say a slow-moving, lower key investigation in Georgia could be the case that finally brings him down.

Scrutiny of the former president’s effort to overturn the 2020 election in the state he lost to Joe Biden by fewer than 12,000 votes is intensifying as he eyes a third run for the White House in 2024.

The 76-year-old former reality TV star immediately cried foul after becoming the first Republican presidential candidate to lose Georgia in almost three decades.

But after three presidential ballot counts and the failure of numerous lawsuits, no evidence of significant voter fraud surfaced in the critical swing state.

Trump nevertheless meddled repeatedly in Georgia politics, pushing for secretary of state Brad Raffensperger in a now-infamous taped phone call to “find” enough votes to overturn Biden’s victory.

A group of Brookings Institution legal experts wrote in October last year that Trump’s post-election conduct in the state “leaves him at substantial risk of possible state charges predicated on multiple crimes.”  

In May, Fulton County’s top prosecutor Fani Willis assembled a special grand jury to investigate attempts by Trump and his allies to overturn Georgia’s election results.

– ‘Legal exposure’ –

A potentially year-long process, the probe could end in Trump facing a raft of solicitation and conspiracy charges connected to election fraud and interference, according to legal experts.

The former president — who denies all wrongdoing — could also face prosecution under Georgia’s Racketeer Influenced and Corrupt Organizations (RICO) statute, which is usually used to nail down mob figures.

Willis has already amassed significant testimony from Trump’s inner circle, including his former personal lawyer Rudy Giuliani, who has been informed he is the target of criminal investigators.

Georgia Governor Brian Kemp — whom Trump berated repeatedly for certifying the 2020 election results, his duty under the law — was ordered by a judge Monday to testify after November’s midterm elections.

Raffensperger and Georgia attorney general Chris Carr, who was also pushed by Trump to contest the state’s vote count, have already appeared before the grand jury. 

Meanwhile Trump’s ex-White House chief of staff Mark Meadows is fighting his own summons, as is the former president’s Senate ally Lindsey Graham, who denies accusations that he improperly suggested that Georgia toss out lawful mail-in ballots. 

“Willis seeking testimony from additional Donald Trump allies, including Mark Meadows, is a sign of how serious this investigation is — and how concerned Trump should be about his own legal exposure,” Noah Bookbinder, president of Citizens for Responsibility and Ethics in Washington, posted on Twitter on Friday.

Former assistant US attorney Kevin O’Brien, a seasoned trial lawyer specializing in white-collar criminal defense, cautioned that a high-profile witness list does not necessarily equate to a nailed-on prosecution. 

– ‘Big freaking deal’ –

State prosecutors generally have less expertise for white-collar investigations than the federal justice department, O’Brien told AFP, advocating for a “wait-and-see attitude” to the potential for charges. 

“(The) proof will be in the pudding,” he added. “Trump has thus far escaped all accountability for his actions, whether in Georgia or elsewhere.”

Other experts say, however, that the Georgia investigation differs from the federal probes in key ways that may make prosecution more likely than an indictment from the federal justice department.

David French, a former attorney turned conservative commentator, believes Trump faces criminal exposure over the 2021 insurrection, but has long held the view that Trump’s primary risk was in Georgia.

“You can take some criminal statutes — both Georgia and federal — and just pretty much match it up with his conduct,” he said on a recent episode of current affairs podcast The Fifth Column. 

“Let me put it this way: if he was a small-town sheriff, and he had called a local county election commissioner and said, ‘I need 50 more votes or, you know, you might find yourself arrested,’ he’d probably already be indicted.

“But he’s the former president of the United States. That’s a big, big freaking deal to indict him. And I don’t know if that will happen, but Georgia to me has always been a greater risk for him.”

Greenland already locked in to major sea level rise: study

Even without any future global warming, Greenland’s melting ice sheet will cause major sea level rise, with potentially “ominous” implications over this century as temperatures continue to rise, according to a study published Monday.

Rising sea levels — pushed up mainly by melting ice sheets on Greenland and Antarctica — are set to redraw the map over centuries and could eventually swamp land currently home to hundreds of millions of people, depending on humanity’s efforts to halt warming. 

The Greenland ice sheet is currently the main factor in swelling the Earth’s oceans, according to NASA, with the Arctic region heating at a faster rate than the rest of the planet. 

In the new study, published in Nature Climate Change, glaciologists found that regardless of any future fossil fuel pollution, warming to date will cause the Greenland ice sheet to shed 3.3 percent of its volume, committing 27.4 centimetres to sea level rise. 

While the researchers were not able to give an exact timeframe, they said most of it could happen by 2100 — meaning that current modelled projections of sea level rise could be understating the risks this century. 

The “shocking” results are also a lowest estimate because they do not take future warming into account, said lead author Jason Box, of the National Geological Survey of Denmark and Greenland. 

“It’s a conservative lower bound. The climate has only to continue warming around Greenland for more commitment,” he told AFP. 

If the high levels of melting seen in 2012 became an annual occurrence, the study estimated sea-level rise could be around 78 cm, enough to swamp vast swathes of low-lying coastlines and supercharge floods and storm surges. 

This should serve “as an ominous prognosis for Greenland’s trajectory through a 21st century of warming”, the authors said. 

In a landmark report on climate science last year, the Intergovernmental Panel on Climate Change (IPCC) said the Greenland ice sheet would contribute up to 18cm to sea level rise by 2100 under the highest emissions scenario. 

Box, who was an author on that report, said his team’s latest research suggests those estimates could be “too low”. 

Instead of using computer models, Box and colleagues used two decades of measurements and observational data to predict how the Greenland ice sheet will adjust to the warming already experienced. 

Upper areas of the ice sheet adds mass through snowfall every year, but since the 1980s the territory has been running an ice “budget deficit”, which sees it lose more ice than it gains through surface melting and other processes.

– ‘Radical’ method –

The theory that researchers used was initially developed to explain changes in Alpine glaciers, said Box. 

This holds that if more snow piles up on top of a glacier, lower areas to expand. In this case the reduced snow is driving shrinking in lower parts of the glacier as it rebalances, he said. 

Box said the methods his team used were “radically different” from computer modelling, but could complement this work. 

Gerhard Krinner, another IPCC author specialising in ice sheet climate modelling and who was not involved in the study, said the findings broadly tallied with total levels of sea level rise seen in more complicated models, but questioned the arguments that this would largely happen this century. 

“The work really provides an estimate of the committed long-term (multi-century or even multi-millennial) response of the Greenland Ice Sheet, not an estimate of minimum loss over this century,” said Krinner, a senior scientist at the French research agency CNRS. 

The world has warmed an average of nearly 1.2 degrees Celsius since pre-industrial times, unleashing a catalogue of impacts from heatwaves to more intense storms.  

Under the Paris climate deal, countries have agreed to limit warming to 2C. 

In their report on climate impacts this year, the IPCC said even if warming is stabilised at 2C to 2.5C, “coastlines will continue to reshape over millennia, affecting at least 25 megacities and drowning low-lying areas”, which were home to up to 1.3 billion people in 2010. 

Last member of Brazilian indigenous community found dead

The last of his people, a Brazilian indigenous man known only as “the man of the hole” has been found dead, decades after the rest of his uncontacted tribe were killed off by ranchers and illegal miners, officials said.

Having lived in complete isolation for 26 years, the man — whose real name was never known to the outside world — was found in a hammock in a hut in the Tanaru indigenous territory in Rondonia state on the border with Bolivia on August 23, Brazil’s National Indian Foundation (FUNAI) said in a statement.

Since losing everyone he knew, the man had refused all contact with the outside world and supported himself by hunting and raising crops. His nickname derived from his habit of digging deep holes inside the huts he built, possibly to trap animals in but also to hide inside.

He lived in an indigenous territory surrounded by vast cattle ranches and under constant threat from illegal miners and loggers in one of the most dangerous parts of the Brazilian Amazon rainforest, according to Survival International.

Authorities did not comment on the cause of the man’s death, nor his age, which wasn’t known, but said “there were no signs of violence or struggle.”

They also found no evidence of the presence of anyone else in his home or around it.

“Everything indicates that the death was from natural causes,” said FUNAI, a government agency under the justice ministry that is tasked with handling indigenous affairs.

Local media reported that the man’s body had been covered in macaw feathers, prompting one expert to speculate that he had known he was about to die.

The man was believed to have been alone since the remaining members of his small tribe were killed in the mid-1990s by illegal loggers and miners seeking to exploit the tribal area.

Rights groups said that the majority of the tribe had been killed in the 1970s when ranchers moved into the area, cutting down the forest and attacking the inhabitants.

“With his death, the genocide of this indigenous people is complete,” said Fiona Watson, Survival’s director of investigation, who visited the Tanaru territory in 2004.

“It really was genocide: the deliberate elimination of an entire people by ranchers hungry for land and wealth,” she added.

According to the most recent government data, there are some 800,000 indigenous people belonging to more than 300 distinct groups living in Brazil, a country of 212 million.

More than half live in the Amazon and many of those are under threat from illegal exploitation of natural resources that they rely on for their survival.

According to FUNAI, there are 114 records of isolated indigenous groups in Brazil, although that number varies.

Under Brazil’s far-right President Jair Bolsonaro, Amazon deforestation reached a record level in the first half of 2022.

The president, who is trailing in polls ahead of this year’s elections, has encouraged mining and farming activity in protected areas, sparking anger among environmentalists.

Energy price hikes could force UK pubs to shut

British pubs could be forced to close because of massive increases in energy prices, leading industry figures said on Tuesday, urging the government to step in.

Six of the country’s biggest pub and brewing firms said some pubs had seen a more than three-fold hike in bills this year, as part of a wider cost of living crisis.

“We have publicans who are experiencing 300-percent-plus increases in energy costs and some energy companies are refusing to even quote for supply,” said William Lees Jones, managing director of the JW Lees pub group.

“In some instances, tenants are giving us notice since their businesses do not stack up with energy at these costs.”

One pub tenant in the 2,700-strong Greene King group has seen a £33,000 ($38,600) increase in their energy bill this year, said chief executive Nick Mackenzie.

“While the government has introduced measures to help households cope with this spike in prices, businesses are having to face this alone, and it is only going to get worse come the autumn.

“Without immediate government intervention to support the sector, we could face the prospect of pubs being unable to pay their bills, jobs being lost and beloved locals across the country forced to close their doors, meaning all the good work done to keep pubs open during the pandemic could be wasted.”

Britain’s cost of living crisis has seen inflation soar to 40-year highs, with a widening number of strikes over pay offers that fail to keep pace with rising prices.

Last week energy regulator Ofgem announced an eye-watering 80-percent increase in gas and electricity prices for the average household from October, with even higher bills expected from January.

But the energy price cap does not apply to businesses.

The companies — Greene King, JW Lees, Carlsberg Marston’s, Admiral Taverns, Drake & Morgan and St Austell Brewery — urged the government in an open letter to extend the cap to businesses.

– Hospitality fears –

Pubs — a mainstay of British social life for centuries — have faced a torrid few years, with a slump in business due to coronavirus lockdowns and social distancing restrictions.

The number of pubs in England and Wales plunged below 40,000 for the first time ever in the first six months of this year, down more than 7,000 in a decade.

The British Beer and Pub Association, an industry body, said energy price rises, caused by hikes in wholesale costs and a squeeze on supplies due to the war in Ukraine, could damage the sector more than the pandemic if nothing is done.

Independent restaurants and takeaways including those selling another British mainstay — fish and chips — have also voiced concern.

The war in Ukraine has forced up the price of the deep-fried delicacy, because of increased tariffs on the import of white fish from Russia and a reduction in the supply of vegetable oil from Ukraine.

On Monday, more than 750 outlets signed an open letter to the government warning that food price and energy inflation, as well as a lack of staff and supply chain delays, were now making hospitality “unsustainable”.

“If we lose these our local favourites, we risk losing part of what makes us British,” they added. 

The British Takeaway Campaign said some shops were now being quoted an eightfold increase in energy prices. 

It called for grants for small businesses, a temporary cut in sales tax (VAT) and business rates plus a freeze on the introduction of new regulations bringing increased red tape.

Black Sea dolphins casualties of Russia's war in Ukraine

Pacing up and down a beach of fine white sand on the Black Sea coast, 63 year-old Ukrainian scientist Ivan Rusev breathes a sigh of relief: he did not find any dead dolphins today.

A few moments earlier he had rushed towards what he thought was a stranded dolphin. Mercifully it turned out only to be “tangled fishing gear”.

Rusev spoke to AFP from the Tuzly Estuaries National Nature Park, a protected area of 280 square kilometres (108 square miles) in the Bessarabia region of south-west Ukraine.

Rusev, whose weather-beaten face is shaded by a hat he brought during adventures in central Asia, is the scientific director of the park.

Now his job entails walking every morning along beaches bordered by anti-tank mines in search of the dolphins that have been washing up here since the beginning of the war.

“We only found three dolphins over our entire 44 kilometres (27 miles) coastline last year,” he tells AFP.

“This year, over the five kilometres (3 miles) that we can still access, we already found 35 of them.”

Much of the coastline has been off-limits to employees of the park since Ukrainian troops took up positions there to prevent any possible Russian sea assault.

This means Rusev and his team cannot say exactly how many dolphins have been stranded in the park or survey the full extent of the damage.

– Dangerous sonars – 

In any case, the death toll is “terrifying,” says Rusev, who has been keeping an online diary — now widely followed on Facebook — about the impact of the war on wildlife.

When dolphins started washing up on the coast in March, Rusev and his team had to get to work quickly to spot dead animals before the many jackals roaming the area got to them. 

“Then, we reached out to our colleagues in Turkey, Bulgaria, Romania. Everyone witnessed the same thing: a huge number of dolphins have died since the beginning of the war,” Rusev said.

The Turkish Marine Research Foundation (TUDAV) warned in March of an “unusual increase” in dead dolphins washing ashore on the Black Sea coast.

Rusev estimates that 5,000 dolphins have been killed — about 2 percent of the total dolphin population in the Black Sea. 

The Black Sea was home to an estimated 2 million dolphins during the 20th century, but fishing and pollution contributed to their decline.

A survey found there were about 250,000 of dolphins left in 2020. 

There’s no doubt in Rusev’s mind: military sonars used by Russian warships are to blame for the current bloodbath.

The powerful sonars used by warships and submarines “interfere with dolphin’s hearing systems”, he explains.

“This destroys their inner ear, they become blind and cannot navigate or hunt,” and are more susceptible to lethal disease due to their weakened immune systems, according to Rusev.

The dolphin remains do not show any trace of fishing nets or wounds, which for Rusev is further evidence ruling out the possibility they died any other way.

– Trading blame –

Russia and Ukraine are trading blame even on the environmental toll of the war, so Rusev’s theory is disputed. 

Russian scientists who looked into the increase in dolphin mortality blamed morbillivirus, a common lethal disease for the species.

Rusev and his team took samples from dolphins that had recently been found and have sent them to Germany and Italy to settle the debate.

Usually Rusev sleeps in a cabin next to the entrance of the park.

Today, the carcass of a dead dolphin lies next to his cabin, in the lagoon’s stagnant waters.

Rusev covered it with a fishing net. That way, he explains, fish will eat the flesh, and he can give the remaining skeleton to a museum. 

The scientist, sometimes halting conversation to marvel at a white-tailed sea eagle or a flock of pelicans, is visibly worried. 

Military strikes have already hit the national park and burned 100 hectares of protected land.

“War is a terrifying thing,” he said. “It impacts the whole ecosystem, including species that won’t easily recover. 

“Nature’s balance won’t easily recover either.”

Stocks extend losses after Fed chief's warning

Stocks slid further Monday and the dollar rallied as traders continued to digest US Federal Reserve chief Jerome Powell’s warning of more interest rate hikes to fight inflation.

Wall Street’s main indices closed lower, extending Friday’s steep losses immediately following Powell’s speech, where he made clear the Fed’s priority is to bring inflation down from a four-decade high — even at the expense of economic growth and employment.

“Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance,” he told the Jackson Hole gathering of global monetary policymakers.

The comments dealt a blow to markets, which had in recent weeks enjoyed a bounce from June lows as some weak economic data and a modest slowdown in price rises fanned hopes the Fed would temper its interest rate hike drive and potentially start to lower rates next year.

Powell doused those hopes.

He “didn’t splash some cold water on the stock market’s face,” said market analyst Patrick O’Hare at Briefing.com. 

“He dumped a whole bucket of ice water on it and the stock market wasn’t ready for the ice bucket challenge.”

Yanxi Tan of Malayan Banking said: “The game of assessing the Fed outlook has shifted from guessing how high the peak rate might be to also understanding how long it might stay there for.”

Analysts said the chances of a third successive 75 basis-point increase next month had risen, with US Treasury yields — a gauge of future interest rates — surging. That in turn helped propel the dollar higher.

The dollar closed in on the 140-yen mark not seen since 1998, but an easing in European gas prices helped the euro limit its losses.

“Powell sent the dollar rallying… on the back of a solid divergence between the decidedly hawkish Fed, and more hawkish, but increasingly worried, other central banks,” said Swissquote Bank analyst Ipek Ozkardeskaya.  

“Other major central banks are also hawkish, but they are less aggressive than the Fed,” she added.

Asian stocks ended sharply lower except for Shanghai, which eked out a small gain.

In European trading, both Paris and Frankfurt ended the day in the red.

London was closed for a public holiday.

European gas prices retreated from record highs set last week after Germany said Sunday it is replenishing its gas stocks more quickly than expected, and should meet an October target early despite drastic Russian supply cuts.

An emergency meeting of EU energy ministers was called for next week, with European Commission chief Ursula von der Leyen saying the bloc is working on an “emergency intervention” to rein in electricity prices sent soaring by Russia’s war in Ukraine as well as a structural reform of the market.

Oil prices jumped despite talk that surging interest rates could choke off the economic recovery as traders focused on supply concerns.

The commodity has fallen in recent weeks on bets that demand will be hit by an expected drop in economic output, particularly from China as it continues to battle a Covid-19 outbreak with lockdowns.

 

– Key figures at around 2100 GMT –

New York – Dow: DOWN 0.6 percent at 32,098.99 points (close)

New York – S&P 500: DOWN 0.7 percent at 4,030.61 (close)

New York – Nasdaq: DOWN 1.0 percent at 12,017.67 (close)

EURO STOXX 50: DOWN 0.9 percent at 3,570.51 (close)

Frankfurt – DAX: DOWN 0.6 percent at 12,892.99 (close)

Paris – CAC 40: DOWN 0.8 percent at 6,222.28 (close)

London – FTSE 100: Closed for public holiday

Tokyo – Nikkei 225: DOWN 2.7 percent at 27,878.96 (close)

Hong Kong – Hang Seng Index: DOWN 0.7 percent at 20,023.22 (close)

Shanghai – Composite: UP 0.1 percent at 3,240.73 (close)

Euro/dollar: UP at $0.9998 from $0.9964 Friday

Pound/dollar: DOWN at $1.1703 from $1.1743

Euro/pound: UP at 85.42 pence from 84.85 

Dollar/yen: UP at 138.73 yen from 137.38

West Texas Intermediate: UP 4.2 percent at $97.01 per barrel

Brent North Sea crude: UP 4.5 percent at $105.09

burs-rl/hs/sst

US regulators sue firm selling sensitive location data

US regulators on Monday filed a lawsuit to stop data broker Kochava from selling smartphone location information that could help trace visits to “sensitive locations” like reproductive health clinics.

The action by the Federal Trade Commission comes as privacy rights advocates fear that massive troves of information collected from people’s smartphone or internet use could serve to track down women seeking abortion care.

Geolocation data purchased by Idaho-based Kochava comes from hundreds of millions of mobile devices, and could be used to trace people’s movements to or from health clinics, places of worship, drug-addiction centers, or domestic violence shelters, the FTC said in a press release.

“Where consumers seek out health care, receive counseling, or celebrate their faith is private information that shouldn’t be sold to the highest bidder,” Samuel Levine, head of the FTC’s bureau of consumer protection said in a press release.

The FTC lawsuit argues that Kochava is making it possible to identify people based on their health care decisions or religion, then exposing them to “threats of stigma, stalking, discrimination, job loss and even physical violence.”

The FTC is asking a federal court in Idaho to order Kochava to stop selling sensitive geolocation data and to delete whatever data of that kind it has collected.

Kochava did not immediately respond to a request for comment.

Kochava buys location information gathered from mobile devices, then packages it in ways that can identify specific devices and show precisely where they were at given times, according to the FTC.

“For example, the location of a mobile device at night is likely the user’s home address and could be combined with property records to uncover their identity,” the FTC said.

People are typically unaware that their location data is being bought and sold by Kochava, according to the suit.

Privacy advocates have called on internet firms to stop collecting data on users that could be demanded by prosecutors or others out to prosecute women for reproductive health care decisions.

The lawsuit comes just months after the Supreme Court overturned the landmark 1973 Roe v. Wade ruling that guaranteed women’s right an abortion.

US regulators sue firm selling sensitive location data

US regulators on Monday filed a lawsuit to stop data broker Kochava from selling smartphone location information that could help trace visits to “sensitive locations” like reproductive health clinics.

The action by the Federal Trade Commission comes as privacy rights advocates fear that massive troves of information collected from people’s smartphone or internet use could serve to track down women seeking abortion care.

Geolocation data purchased by Idaho-based Kochava comes from hundreds of millions of mobile devices, and could be used to trace people’s movements to or from health clinics, places of worship, drug-addiction centers, or domestic violence shelters, the FTC said in a press release.

“Where consumers seek out health care, receive counseling, or celebrate their faith is private information that shouldn’t be sold to the highest bidder,” Samuel Levine, head of the FTC’s bureau of consumer protection said in a press release.

The FTC lawsuit argues that Kochava is making it possible to identify people based on their health care decisions or religion, then exposing them to “threats of stigma, stalking, discrimination, job loss and even physical violence.”

The FTC is asking a federal court in Idaho to order Kochava to stop selling sensitive geolocation data and to delete whatever data of that kind it has collected.

Kochava did not immediately respond to a request for comment.

Kochava buys location information gathered from mobile devices, then packages it in ways that can identify specific devices and show precisely where they were at given times, according to the FTC.

“For example, the location of a mobile device at night is likely the user’s home address and could be combined with property records to uncover their identity,” the FTC said.

People are typically unaware that their location data is being bought and sold by Kochava, according to the suit.

Privacy advocates have called on internet firms to stop collecting data on users that could be demanded by prosecutors or others out to prosecute women for reproductive health care decisions.

The lawsuit comes just months after the Supreme Court overturned the landmark 1973 Roe v. Wade ruling that guaranteed women’s right an abortion.

IMF approves revival of massive Pakistan loan program

The IMF board on Monday approved an agreement to revive a massive loan program for Pakistan, as the country grapples with devastating monsoon flooding that has worsened an economic crisis.

The Washington-based crisis lender will release $1.1 billion to the country immediately, and has added an additional $500 million to the total size of the package, bringing it to about $6.5 billion.

In addition, the International Monetary Fund agreed to the government’s request to extend the package through June 2023.

The original $6 billion bailout package was signed by former prime minister Imran Khan in 2019, but repeatedly stalled when his government reneged on agreed reforms on subsidies and failed to significantly improve tax collection.

The aid comes as “Pakistan’s economy has been buffeted by adverse external conditions, due to spillovers from the war in Ukraine, and domestic challenges,” said IMF Deputy Managing Director Antoinette Sayeh in a statement.

“Steadfast implementation of corrective policies and reforms remain essential to regain macroeconomic stability, address imbalances and lay the foundation for inclusive and sustainable growth,” she said.

The government reached an agreement with IMF staff last month to restart the suspended aid package.

The new agreement follows months of deeply unpopular belt-tightening by the government of Shehbaz Sharif, who took power in April and has effectively eliminated fuel subsidies and introduced new measures to broaden the tax base.

Finance Minister Miftah Ismail, announcing the approval on Twitter, applauded Sharif “for taking so many tough decisions and saving Pakistan from default.”

The latest disbursement brings the total received under the IMF Extended Fund Facility to about $4 billion.

– Desperate for aid –

Pakistan is desperate for international support for its economy, which suffers from poor revenue collection and dwindling foreign reserves to pay its crippling debt.

The new government has slashed a raft of subsidies to meet the demands of global financial institutions, but risks the wrath of an electorate already struggling under double-digit inflation.

Sharif’s new coalition government has said it will make the tough decisions needed to turn the economy around.

Successive administrations have blamed their predecessors for the country’s economic woes, but analysts say the malaise stems from decades of poor management and a failure to tackle endemic corruption and widespread tax avoidance.

In a bid to secure the IMF loan, Sharif has imposed three fuel price hikes — cumulatively totalling 50 percent — and raised the cost of electricity to effectively end the subsidies introduced by Khan.

Ismail told the national assembly last month that the steps were “essential” to preserve the country from default.

“We knew it would damage our political reputation, but still we did it,” he said. 

The latest budget has earmarked 3.95 trillion rupees ($18.8 billion) just to service the country’s whopping debt of $128 billion.

Sayeh welcomed the government’s intention to achieve a small budget surplus in 2023.

“Containing current spending and mobilizing tax revenues are critical to create space for much-needed social protection and strengthen public debt sustainability,” she said.

She also called recent interest rate increases a “necessary step” to rein in inflation.

Under the deal agreed with the IMF, policy priorities included steadfast implementation of the budget to reduce the need to borrow.

Pakistan also agreed to continue power sector reforms, tighten monetary policy to tackle inflation, strengthen governance, combat corruption and improve the social security net.

IMF approves revival of massive Pakistan loan program

The IMF board on Monday approved an agreement to revive a massive loan program for Pakistan, as the country grapples with devastating monsoon flooding that has worsened an economic crisis.

The Washington-based crisis lender will release $1.1 billion to the country immediately, and has added an additional $500 million to the total size of the package, bringing it to about $6.5 billion.

In addition, the International Monetary Fund agreed to the government’s request to extend the package through June 2023.

The original $6 billion bailout package was signed by former prime minister Imran Khan in 2019, but repeatedly stalled when his government reneged on agreed reforms on subsidies and failed to significantly improve tax collection.

The aid comes as “Pakistan’s economy has been buffeted by adverse external conditions, due to spillovers from the war in Ukraine, and domestic challenges,” said IMF Deputy Managing Director Antoinette Sayeh in a statement.

“Steadfast implementation of corrective policies and reforms remain essential to regain macroeconomic stability, address imbalances and lay the foundation for inclusive and sustainable growth,” she said.

The government reached an agreement with IMF staff last month to restart the suspended aid package.

The new agreement follows months of deeply unpopular belt-tightening by the government of Shehbaz Sharif, who took power in April and has effectively eliminated fuel subsidies and introduced new measures to broaden the tax base.

Finance Minister Miftah Ismail, announcing the approval on Twitter, applauded Sharif “for taking so many tough decisions and saving Pakistan from default.”

The latest disbursement brings the total received under the IMF Extended Fund Facility to about $4 billion.

– Desperate for aid –

Pakistan is desperate for international support for its economy, which suffers from poor revenue collection and dwindling foreign reserves to pay its crippling debt.

The new government has slashed a raft of subsidies to meet the demands of global financial institutions, but risks the wrath of an electorate already struggling under double-digit inflation.

Sharif’s new coalition government has said it will make the tough decisions needed to turn the economy around.

Successive administrations have blamed their predecessors for the country’s economic woes, but analysts say the malaise stems from decades of poor management and a failure to tackle endemic corruption and widespread tax avoidance.

In a bid to secure the IMF loan, Sharif has imposed three fuel price hikes — cumulatively totalling 50 percent — and raised the cost of electricity to effectively end the subsidies introduced by Khan.

Ismail told the national assembly last month that the steps were “essential” to preserve the country from default.

“We knew it would damage our political reputation, but still we did it,” he said. 

The latest budget has earmarked 3.95 trillion rupees ($18.8 billion) just to service the country’s whopping debt of $128 billion.

Sayeh welcomed the government’s intention to achieve a small budget surplus in 2023.

“Containing current spending and mobilizing tax revenues are critical to create space for much-needed social protection and strengthen public debt sustainability,” she said.

She also called recent interest rate increases a “necessary step” to rein in inflation.

Under the deal agreed with the IMF, policy priorities included steadfast implementation of the budget to reduce the need to borrow.

Pakistan also agreed to continue power sector reforms, tighten monetary policy to tackle inflation, strengthen governance, combat corruption and improve the social security net.

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