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 …
Read More »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 …
Read More »Fitch Upgrades Pakistan’s Credit Rating Amid IMF Support and Economic Reforms
On Monday, Fitch Ratings upgraded Pakistan’s long-term foreign currency issuer default rating (IDR) from CCC to CCC+. This upgrade reflects an improvement in Pakistan’s external liquidity and funding conditions, buoyed by recent agreements with the International Monetary Fund (IMF). Fitch highlighted the significant progress under the previous IMF arrangement, which helped Pakistan reduce its fiscal deficits and rebuild its foreign …
Read More »IMF Chief Warns of Weakest Growth Prospects in Decades
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed significant concern on Friday about the world’s weakest medium-term growth prospects in decades, projecting global growth at just over 3%. Georgieva highlighted several interrelated challenges impeding economic progress, including high debt levels, economic fragmentation, and the complexities involved in navigating digital and green transitions. She warned that a low …
Read More »Government Rejects Rs7.3 Billion Grant for PIA Amid IMF Commitments
The recent decision by the federal government to reject a proposal for a Rs7.3 billion grant to aid Pakistan International Airlines (PIA) has sparked a wave of concerns and discussions, especially given the airline’s ongoing struggles with debt and legal disputes. This move aligns with the government’s commitments to the International Monetary Fund (IMF), emphasizing the complexities faced by PIA …
Read More »Tax the Rich to Protect the Poor, IMF Chief Tells Pakistan
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has urged Pakistan to implement progressive taxation policies that target the wealthy and safeguard the interests of the nation’s impoverished citizens. Georgieva made this recommendation during her meeting with Interim Prime Minister Anwaarul Haq Kakar on the sidelines of the United Nations General Assembly (UNGA). In an interview with a Pakistani private …
Read More »Pakistani Rupee Continues to Strengthen Against US Dollar in Open Market
The Pakistani rupee maintained its positive momentum against the US dollar in the open market, narrowing the gap with the inter-bank rate. This convergence is considered a significant benchmark of the International Monetary Fund’s (IMF) Stand-By Arrangement (SBA). According to reports from currency dealers, the rupee was being quoted at 305 for selling and 302 for buying in the open …
Read More »US Dollar Hits New High Against Pakistani Rupee, Trading at 334 in Open Market
The US dollar’s ascent against the Pakistani rupee persists, reaching new heights in the open market. During Monday’s trading, the dollar was quoted at 334.5 for selling and 331.5 for buying, marking an increase of Rs3.5 from the previous trading session’s levels of 331 and 328, according to dealers reached by Business Recorder. However, the Exchange Companies Association of …
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