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Pakistan is in talks to release of $1.1bn (£890m) of cash from the International Monetary Fund (IMF) to help ease its financial crisis.

Pakistan’s economic woes are a culmination of years of political turmoil, a financial crisis and last year’s catastrophic floods, with its reserves only able to cover three weeks – rather than the required three months.

Inflation is also thought to stand at around 24% to 26%, according to the country’s finance ministry, and the currency has been devalued against the dollar.

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The IMF delegation will be encouraging the Pakistani government to implement bold cost-cutting measures to help it bridge its financial gap, with mission chief Nathan Porter saying: “You don’t have any other option.”

In 2019, Pakistan secured a $6bn (£4.9bn) bailout from the IMF. It got another $1bn (£811m) last year to help overcome the devastating floods, but in November the IMF suspended payments, saying the government failed to make progress on its fiscal consolidation.

In response, Ishaq Dar, the country’s finance minister, told the IMF it had made some efforts to bring its crisis under control, including increasing taxes on petrol and natural gas, and increased prices for electricity.

If released, the cash from the IMF would go towards paying its external debt to the tune of $8bn, which has to be paid by the end of June.

Backlogs at ports, factories closed and electricity blackouts

The government has stopped issuing lines of credit, causing a backlog of container ships at the port of Karachi, while industry has been battered by the currency devaluation and imports block.

Domestic investment has dried up, with textile factories partially closing due to demand, and construction projects have been delayed due to lack of investment.

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Communities flee flooding

There has also been severe energy shortages, which has hindered remaining economic activity, while companies that generate and supply energy struggle with the high costs of fuel and turn off the electricity grid to save money.

Last week the country of 243 million people was plunged into darkness after a major breakdown of the national grid, which lasted several hours – the impact was felt on schools, hospitals, businesses and industry further hindering economic activity.

The country’s economy has been faltering for many years, with the floods in 2022 pushing it over the edge.

Pakistan’s floods impacted a third of the country and wiped out millions of hectares of crops. Almost 2,000 people were killed, and around 33 million people were displaced, with damage thought to cost around $40bn (£32.4bn).

Successive governments have been accused of making little effort to widening the tax net and increasing sources of revenue, while loans from allies such as China, Saudi Arabia and the United Arab Emirates kept its economy afloat.

FILE PHOTO: People wait their turn to get fuel at a petrol station, in Karachi, Pakistan June 2, 2022. Picture taken June 2, 2022. REUTERS/Akhtar Soomro/File Photo
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Fuel taxes have been increased. File pic: Reuters

Some blame former PM Imran Khan

Former prime minister Imran Khan, and his government, have been accused of contributing to the immediate crisis. A year into his premiership, the fiscal deficit shot to a record high of $25.3bn (£20.5bn) and by the time he was ousted early last year, inflation was over 12%.

Mr Khan delayed approaching the IMF, despite economists recommending it, saying he wants to shun the practice of approaching foreign entities with a “begging bowl”.

However, his government was unable to bear the costs of a slew of welfare schemes it rolled out – though it helped his popularity.

His government’s reluctance to increase fuel costs, even in early 2022 when international crude rates had breached the $100 mark due to the war in Ukraine war, meant the state exchequer lost precious dollars.

People warm themselves by a fire beside a solar panel, a day after a country-wide power breakdown, in Peshawar, Pakistan, January 24, 2023. REUTERS/Fayaz Aziz

Is Pakistan going the same way as Sri Lanka?

There is comparison of what is taking place in Pakistan with the collapse of the Sri Lankan economy last year.

But this is unlikely, as almost half of Sri Lanka’s external debt was owed to private creditors while for Pakistan, this is only about 8% of what it owes.

Pakistan’s large bilateral loan payments are to friendly countries like Saudi Arabia, the UAE, and China, which will be rolled over.

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With the present government starting to implement changes that would satisfy the IMF and a release of the $1.1bn tranche, this will pave the way for the release of the loan and other bilateral assistances.

But more importantly, Pakistan is a nuclear nation and a geostrategic country, and its allies, and the world, would prevent its economy from collapsing.

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Trump says Ukraine will have to accept peace plan – but critics warn it has ‘real problems’

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Trump says Ukraine will have to accept peace plan - but critics warn it has 'real problems'

Donald Trump has said Volodymyr Zelenskyy will have to approve a proposed peace plan to end the war in Ukraine.

The controversial 28-point proposal – which would hand swathes of land to Russia and limit the size of Kyiv’s military – closely resembles the Kremlin’s demands.

Mr Zelenskyy has warned he has reservations about the plan, telling Ukrainians in a solemn speech: “Now is one of the most difficult days in our history.”

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Russia-Ukraine peace proposal explained

But Russian President Vladimir Putin has cautiously welcomed the US proposals – and said they “could form the basis for a final peace settlement”.

Speaking to reporters at the White House, Mr Trump appeared to dismiss Mr Zelenskyy’s concerns: “He’ll have to like it… at some point, he’s going to have to accept something.”

The US president went on to reference their now-infamous Oval Office meeting back in February, where he told Ukraine‘s leader “you don’t have the cards”.

Kyiv has been given until Thursday to accept the peace plan – but this deadline could be extended to finalise the terms.

Ukraine war – latest updates

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We face losing major partner or dignity, says Zelenskyy

‘I am highly sceptical it will achieve peace’

Mr Trump has received pushback from members of his own party, with a prominent Republican warning the plan “has real problems”.

Senator Roger Wicker, who chairs the Senate Committee on Armed Services, expressed doubt that the White House proposals would achieve peace.

“Ukraine should not be forced to give up its lands to one of the world’s most flagrant war criminals in Vladimir Putin,” he warned.

Tim Ash from the Chatham House think tank added: “Russia gets everything it wants and Ukraine gets not very much.

“If Zelenskyy accepts this, I anticipate huge political, social and economic instability in Ukraine.”

Analysis: We could all pay if Europe doesn’t step up


Dominic Waghorn

Dominic Waghorn

International affairs editor

@DominicWaghorn

The Trump peace plan is nothing of the sort. It takes Russian demands and presents them as peace proposals, in what is effectively a surrender ultimatum for Ukraine.

If accepted, it would reward armed aggression. The principle that even de facto borders cannot be changed by force – sacrosanct since World War Two for very good reasons – will have been trampled on at the behest of the leader of the free world.

Read Dominic’s full analysis here.

According to Reuters, European nations including the UK, France and Germany are now working on a counterproposal with Kyiv.

EU leaders, who were not consulted about the plan, will hold a meeting on the sidelines of the G20 summit in South Africa on Saturday.

Sir Keir Starmer, who spoke to Mr Zelenskyy by phone on Friday, has warned “Russia pretends to be serious about peace, but their actions never live up to their words”.

Ahead of the talks, the prime minister said: “Ukraine has been ready to negotiate for months, while Russia has stalled and continued its murderous rampage. That is why we must all work together, with both the US and Ukraine, to secure a just and lasting peace once and for all. We will continue to coordinate closely with Washington and Kyiv to achieve that.

“However, we cannot simply wait for peace, we must strain every sinew to secure it. We must cut off Putin’s finance flows by ending our reliance on Russian gas. It won’t be easy, but it’s the right thing to do.”

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Inside the Ukraine peace plan

The EU’s foreign policy chief, Kaja Kallas, said: “We all want this war to end, but how it ends matters. Russia has no legal right whatsoever to any concessions from the country it invaded. This is a very dangerous moment for us all.”

Read more from Sky News:
Starmer refuses to rule out manifesto-breaking tax rises
BBC board member resigns – and criticises ‘governance issues’

‘Ukraine may be facing an extremely difficult decision’

During his address, Mr Zelenskyy said he would not betray Ukraine’s national interest – but warned dilemmas lie ahead.

He added: “Either a loss of dignity or the risk of losing a key partner. Either accepting a complicated list of 28 demands or enduring an extremely harsh winter, the harshest yet, with all the risks that follow.

“A life without freedom, without dignity, without justice. And all while being asked to trust someone who has already attacked us twice.”

Pics: Reuters
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Pics: Reuters

Washington has reportedly threatened to cut off intelligence sharing and weapons supplies if Kyiv refuses to accept the deal.

The US-backed proposal would require Ukraine to withdraw from territory it still controls in eastern provinces that Russia claims to have annexed – with Russia giving up smaller amounts of land it holds in other regions.

Ukraine would also be permanently barred from joining NATO, and its armed forces would be capped at 600,000 troops.

Sanctions against Russia would also be gradually lifted, with Moscow invited back into the G8 and frozen assets pooled into an investment fund.

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Ukraine and Europe cannot reject Trump’s plan – they will play for time and hope he can still be persuaded to desert the Kremlin

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Ukraine and Europe cannot reject Trump's plan - they will play for time and hope he can still be persuaded to desert the Kremlin

“Terrible”, “weird”, “peculiar” and “baffling” – some of the adjectives being levelled by observers at the Donald Trump administration’s peace plan for Ukraine.

The 28-point proposal was cooked up between Trump negotiator Steve Witkoff and Kremlin official Kirill Dmitriev without European and Ukrainian involvement.

It effectively dresses up Russian demands as a peace proposal. Demands first made by Russia at the high watermark of its invasion in 2022, before defeats forced it to retreat from much of Ukraine.

Ukraine war latest: Kyiv receives US peace plan

(l-r) Kirill Dmitriev and special envoy Steve Witkoff in St Petersburg in April 2025. Pic: Kremlin Pool Photo/AP
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(l-r) Kirill Dmitriev and special envoy Steve Witkoff in St Petersburg in April 2025. Pic: Kremlin Pool Photo/AP

Its proposals are non-starters for Ukrainians.

It would hand over the rest of Donbas, territory they have spent almost four years and lost tens of thousands of men defending.

Analysts estimate at the current rate of advance, it would take Russia four more years to take the land it is proposing simply to give them instead.

It proposes more than halving the size of the Ukrainian military and depriving them of some of their most effective long-range weapons.

And it would bar any foreign forces acting as peacekeepers in Ukraine after any peace deal is done.

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Is Moscow back in Washington’s good books?

The plan comes at an excruciating time for the Ukrainians.

They are being pounded with devastating drone attacks, killing dozens in the last few nights alone.

They are on the verge of losing a key stronghold city, Pokrovsk.

And Volodymyr Zelenskyy is embroiled in the gravest political crisis since the war began, with key officials facing damaging corruption allegations.

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Ukrainian support for peace plan ‘very much in doubt’

The suspicion is Mr Witkoff and Mr Dmitriev conspired together to choose this moment to put even more pressure on the Ukrainian president.

Perversely, though, it may help him.

There has been universal condemnation and outrage in Kyiv at the Witkoff-Dmitriev plan. Rivals have little choice but to rally around the wartime Ukrainian leader as he faces such unreasonable demands.

The genesis of this plan is unclear.

Was it born from Donald Trump’s overinflated belief in his peacemaking abilities? His overrated Gaza ceasefire plan attracted lavish praise from world leaders, but now seems mired in deepening difficulty.

The fear is Mr Trump’s team are finding ways to allow him to walk away from this conflict altogether, blaming Ukrainian intransigence for the failure of his diplomacy.

Mr Trump has already ended financial support for Ukraine, acting as an arms dealer instead, selling weapons to Europe to pass on to the invaded democracy.

If he were to take away military intelligence support too, Ukraine would be blind to the kind of attacks that in recent days have killed scores of civilians.

Europe and Ukraine cannot reject the plan entirely and risk alienating Mr Trump.

They will play for time and hope against all the evidence he can still be persuaded to desert the Kremlin and put pressure on Vladimir Putin to end the war, rather than force Ukraine to surrender instead.

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Eurovision to change voting rules after claims of Israeli government ‘interference’

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Eurovision to change voting rules after claims of Israeli government 'interference'

The Eurovision Song Contest is changing its voting system, following allegations of “interference” by Israel’s government this year.

Israeli singer Yuval Raphael received the largest number of votes from the public in the contest in May, ultimately finishing as runner-up after the jury votes were counted.

But a number of broadcasters raised concerns about Israel’s result.

After the final, Irish broadcaster RTE requested a breakdown in voting numbers from contest organiser the European Broadcasting Union (EBU), while Spain’s public broadcaster, Radio Television Espanola (RTVE), called for a “complete review” of the voting system to avoid “external interference”.

In September, Dutch public broadcaster AVROTROS said it could no longer justify Israel‘s participation in the contest, due to the Israel-Hamas war in Gaza.

It went on to say there had been “proven interference by the Israeli government during the last edition of the Song Contest, with the event being used as a political instrument”. The statement did not elaborate on the means of “interference”.

Sky News has contacted the Israeli government for comment.

More on Eurovision

In early December, the EBU will hold its winter general assembly, with members due to consider the changes, and if not satisfied, vote on Israel’s participation.

Key changes to next year’s competition include:

• Clearer rules around promotion of artists and their songs
• Cap on audience voting halved
• The return of professional juries to semi-finals
• Enhanced security safeguards

Read more: Could Eurovision boycotts over Israel lead to a competition crisis?

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Will Eurovision boycott Israel?

Sanctions threat

The EBU said the tightening of rules around promotion was to “discourage disproportionate promotion campaigns… particularly when undertaken or supported by third parties, including governments or governmental agencies”.

It said that “any attempts to unduly influence the results will lead to sanctions”.

Contest director Martin Green said “no broadcaster or artist may now directly engage with or support campaigns by third parties – including governments or their agencies – that could distort the vote”.

He said the reduction in the number of votes that can be made online, or via SMS or phone call, from 20 to 10 was “designed to encourage more balanced participation”.

He said that “although the number of votes previously allowed did not unduly influence the results of previous contests, there were concerns expressed by participating broadcasters and fans alike”.

Professional juries in semi-finals – and younger jurors

It was also announced that professional juries in the semi-finals would be restored for the first time since 2022, with an expansion to the range of professions from which jurors can be chosen.

The EBU said this will give roughly 50-50 percentage weight between audience and jury votes.

At least two jurors aged 18-25 will be present in every jury, to reflect the appeal of the contest with younger audiences.

Also mentioned were enhanced technical safeguards designed to “protect the contest from suspicious or coordinated voting activity” and strengthen security systems that “monitor, detect and prevent fraudulent patterns”.

Politics making itself heard over Europop lyrics

Mr Green said that the neutrality and integrity of the competition is of “paramount importance” to the EBU, its members, and audiences, adding that the event “should remain a neutral space and must not be instrumentalised”.

Israel's 2024 representative, Eden Golan. Pic: AP
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Israel’s 2024 representative, Eden Golan. Pic: AP

A vocally apolitical event, world events have dominated Eurovision in recent years.

Russia was banned from the competition in 2022 following its invasion of Ukraine.

Israel has competed in Eurovision for more than 50 years and won four times, but there have been ongoing calls to block their participation over the conduct of Prime Minister Benjamin Netanyahu’s government in the Hamas-Israel war.

Israel denies targeting civilians in Gaza and has said it is being unfairly demonised abroad.

In September, Spain, the Netherlands, Ireland, Iceland, and Slovenia threatened to withdraw their participation in Eurovision unless Israel is excluded from the competition.

There were also demonstrations against Israel’s inclusion in Basel, Switzerland, when the 2025 competition took place.

‘Step in right direction’

Responding to the changes, Iceland’s official broadcaster RUV told Sky News they were “a step in the right direction”, and they would be discussing them with their “sister stations in the Nordic countries” ahead of the EBU meeting in December.

Ireland’s official broadcaster RTE told Sky News: “Clearly, events in the Middle East are unfolding day by day. As previously confirmed by the EBU, the issue of participation in the 2026 Eurovision Song Contest has been included on the agenda of the EBU Executive Board’s ordinary Winter General Assembly.”

Sky News has also contacted the official broadcaster for the Netherlands (AVROTROS), Spain (RTVE), Slovenia (RTVSLO), and Israel (Kan) for comment.

The chief executive of Kan, Golan Yochpaz, has previously said the event should not become political and that there is “no reason” why Israel should not be part of it.

Israeli Prime Minister Benjamin Netanyahu. Pic: Reuters
Image:
Israeli Prime Minister Benjamin Netanyahu. Pic: Reuters

Netanyahu praised Israeli entrant

Earlier this year, Israeli Prime Minister Benjamin Netanyahu told Israel’s 2025 Eurovision entrant Yuval Raphael she had brought the country “a lot of honour” after she finished in second place, adding “you’re the real winner. Statistically, it’s true… You entered the hearts of a huge portion of the public in Europe.”

The year before he told entrant Eden Golan: “I saw that you received almost the highest number of votes from the public and this is the most important thing, not from the judges but from the public, and you held Israel’s head up high in Europe.”

In October, a ceasefire deal was put in place, aimed at bringing an end to the two-year war in the Middle East.

The war began when Hamas stormed into Israel on October 7 2023, killing around 1,200 people and taking 251 hostage.

Israel invaded Gaza in retaliation, with airstrikes and ground assaults devastating much of the territory and killing more than 67,000, according to the Hamas-run health ministry.

Its figures do not differentiate between civilians and combatants, but it says around half of those killed were women and children.

The world’s largest live music event, next year’s contest will be held in Vienna, Austria, in May and will celebrate 70 years of Eurovision.

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