Tag Archives: IMF

IMF Bailout at Risk: Pakistan Must Secure $2 Billion in Financing to Avoid Delay

The International Monetary Fund (IMF) could delay the new $7 billion bailout if Pakistan fails to secure a $2 billion financing gap from commercial lenders by the end of the current week.Pakistan must submit a signed Letter of Intent (LoI) to the IMF Executive Board for approval of the 37-month Extended Fund Facility (EFF) while committing to comply with all …

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IMF Imposes New Conditions on Pakistan Amid Concerns Over Energy

IMF

IMF Imposes New Conditions Following Punjab’s “Fiscally Reckless” Electricity Subsidy The International Monetary Fund (IMF) has imposed several new conditions on Pakistan’s provincial governments concerning energy subsidies and budget management. This move follows Punjab’s controversial decision to provide Rs45 to Rs90 billion in electricity subsidies over two months, which the IMF has labeled as “fiscally reckless.” Government sources revealed that …

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IMF Delays Consideration of Pakistan’s $7 Billion Bailout Package

IMF

Introduction The International Monetary Fund (IMF) has postponed the approval of Pakistan’s $7 billion bailout package, as it is not part of the IMF Executive Board’s agenda for the upcoming week. This delay adds to the uncertainty surrounding Pakistan’s efforts to stabilize its economy, which continues to struggle with significant financial challenges. IMF Executive Board Meeting Schedule The IMF’s Executive …

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Pakistan Weekly Market Update – August 23, 2024: Optimism Grows Amid IMF Progress

Market Commentary Pakistan Weekly Market Update: The week commenced with slight market pressure due to Pakistan’s absence from the IMF Executive Board’s schedule for August 2024, leading to concerns about the disbursement of the expected tranche. However, optimism returned midweek when the Finance Minister announced progress in negotiations with the IMF, suggesting the possibility of securing approval from the IMF …

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US Dollar Continues to Climb in Interbank Market, Reaches Rs278.60

US Dollar

The US dollar maintained its upward momentum in the interbank market on Thursday, increasing by eight paisas and bringing its value to Rs278.60. This rise follows a similar increase on Wednesday when the dollar gained 11 paisas, reaching Rs278.45. The recent surge in the dollar’s value is attributed to the continued delay in the approval of Pakistan’s much-anticipated $7 billion …

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Government’s Rs32 Trillion Borrowing Plan

IMF

The Pakistani government announced on Tuesday its need for Rs32 trillion in loans for the fiscal year 2024-25, relying heavily on rollovers from foreign banks and bilateral lenders. The success of this borrowing plan is contingent on the timely approval of the International Monetary Fund (IMF) programme and continued financial support from China. Key Aspects of the Borrowing Plan The …

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Government Plans to Reduce Electricity Tariffs Amid Financial Risks

In a bid to tackle the financial challenges plaguing Pakistan’s power sector, the federal government has unveiled plans to reduce current electricity tariffs. This initiative comes amid growing concerns over the sector’s significant financial risks and inefficiencies. The proposed measures aim to provide some relief to consumers while addressing the underlying issues within the power sector. The government’s strategy involves …

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Federal Government’s Five-Year Revenue Plan Targets 20 Million New Taxpayers

Overview of the Plan The federal government has presented a five-year revenue generation plan to the International Monetary Fund (IMF) with the goal of significantly expanding the tax base. The plan aims to add over 20 million new taxpayers to the tax net over the next five years. Targets for Expansion To achieve this ambitious target, the plan includes specific …

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Foreign Investment in Pakistan Stock Exchange Hits Historic Low Despite Recent Surge

Decline in Foreign Investment Foreign investors’ stakes in companies listed on the Pakistan Stock Exchange (PSX) have plummeted to a historic low of 3.7% ($491 million) of the total value of publicly traded shares by the end of June 2024. This marks a significant decrease from 28.7% ($2.97 billion) in FY17. The decline has been attributed to economic and political …

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Government Delays National Bank of Pakistan Privatisation Due to Legal Complications

Introduction On Monday, the Pakistani government decided to defer the privatisation of the National Bank of Pakistan (NBP) due to legal hurdles, contradicting a prior commitment made to the International Monetary Fund (IMF). This decision highlights ongoing challenges in Pakistan’s efforts to reform state-owned enterprises (SOEs) and align with international agreements. Legal and Policy Challenges Last month, Pakistan assured the …

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