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Agreement with IMF for fresh loan expected next month: Pak Finance Minister

Pakistan's finance minister Mohammad Aurangzeb on Thursday said an agreement to secure a fresh loan to address the country's economic woes is expected to be reached with the International Monetary Fund next month. Aurangzeb, while addressing a post-budget press conference here, a day after unveiling the Rs 18,877 billion budget, announced that negotiations with the IMF were underway and going in the right direction. I don't want to say anything in finality other than the fact that it's (IMF talks) moving positively, he said and expressed hope that a staff-level agreement (SLA) is expected in July too. He, however, declined to talk further on the topic of SLA. The budget, which many believe is designed to meet IMF requirements for securing another USD 6 billion to USD 8 billion loans under the medium-term Extended Fund Facility (EFF), marks a 25 per cent increase over the outgoing fiscal year's outlay. The government has proposed historically-high additional taxes through various .

IMF extends $336 mn to Lanka amid 'knife-edged' path to debt sustainability

The International Monetary Fund in March this year approved a 48-month, $2.9 billion extended arrangement under the Extended Fund Facility (EFF) to support Sri Lanka's economic policies and reforms

Pak may borrow $23 bn in next fiscal year to finance development plans

Pakistan has planned to borrow a minimum of USD 23 billion in the next fiscal year, including the rollover of a bilateral debt of USD 12 billion, to finance its development plans and meet its external financing requirement which will keep the cash-strapped country's foreign and economic policies dependent on global financial institutions like the IMF, according to a media report on Thursday. Budget documents for fiscal year 2024-25 showed that Pakistan would borrow at least USD 23.2 billion, or Rs 5.9 trillion, which did not include any loan from the International Monetary Fund (IMF), The Express Tribune newspaper reported, adding that the International Monetary Fund's loan will be for balance of payments support. Out of the USD 23 billion, the government has included USD 20 billion in budget documents. It has not made the rollover of USD 3 billion by the United Arab Emirates (UAE) part of federal books as it is also meant for balance of payments support. Details showed that Pakista

Pakistan budget sets big tax target of $46.66 bn ahead of IMF talks

Pakistan has projected a sharp drop in its fiscal deficit for the new financial year to 5.9% of GDP, from an upwardly revised estimate of 7.4% for the current year

Pakistan likely to hike taxes in budget to bolster chances of IMF loan

"Everyone will have to contribute in this economy because schools or universities or hospitals can run with philanthropy but countries can only run through taxes," Pak Finance Minister Aurangzeb said

Pakistan's Budget aims to set stage for new bailout deal with IMF

Pakistan is in talks with the IMF for a loan estimated to be anything between $6 billion to $8 billion to avert a default for an economy

China more important than IMF? Why Pak PM postponed Budget to visit Beijing

Presenting the Budget is critical for Pakistan to finalise a fresh IMF deal

IMF says ECB interest rate cut 'appropriate,' Fed should stay cautious

IMF spokesperson Julie Kozack also told a regular news briefing that the US economy needs to slow in 2024 and the Fed should remain cautious in cutting rates

IMF's second review for extended fund facility set for June 12: Sri Lanka

The second review of the IMF's Extended Fund Facility under the USD 2.9 billion bailout to Sri Lanka has been set for June 12, the cash-strapped island nation's minister of state for finance Shehan Semsinghe said on Monday. Semasinghe hoped that if everything goes according to the procedure, the review should lead to the release of USD 300 million from the international lender's third tranche. "The second review of the International Monetary Fund's extended fund facility under the USD 2.9 billion bailout to the cash-strapped Sri Lanka has been set for June 12," he said. He said that Sri Lanka expects continued support from all countries for a successful review to unlock the third tranche. "We look forward to the continued support of all countries for a successful review to unlock the third tranche which will further enhance economic stability, growth and reform efforts," Semasinghe said. The island nation, in April 2022, declared its first-ever sovereign default since gaining ...

IMF upgrades China's 2024, 2025 GDP growth forecasts after 'strong' Q1

The global lender now expects the world's second-largest economy to grow 5 per cent in 2024 and to slow to 4.5 per cent in 2025

IMF, Pakistan make considerable progress on extended loan facility

The IMF has opened discussions with Pakistan on a new loan programme after Islamabad last month completed a short-term $3 bn programme

Pak mulls 5-yr extension on $15.5 bn Chinese debt amid IMF loan talks

Amidst talks with the International Monetary Fund about a fresh loan, cash-strapped Pakistan is contemplating seeking a five-year extension on the USD 15.5 billion debt in the Chinese energy sector, it emerged on Friday. The consent of the Chinese government as well as its Independent Power Producers' (IPPs) operating in Pakistan is mandatory to alter the existing contracts, which might require long negotiations to clinch the desired results, The News reported. If the government decides to make a formal request to China, then it will require long negotiations, the paper reported, and highlighted various options. One of the options is to reduce the tariff for consumers by Rs 1.1 from 2024-2029, and Rs 0.9 from 2030 to 2040. So, in totality, the average tariff will reduce by Rs 0.18 kWh from 2024 to 2040 with an extension in the tenor of debt for five years from 2036-2041, the report said, quoting top official sources. According to the official workings done by the relevant ministrie

IMF okays members to channel reserve assets to MDBs for hybrid instruments

The IMF said the board's decision on May 10, should help broaden the use of SDRs, while increasing the attractiveness of the SDR as a reserve asset

Pakistan PM Sharif unveils broader plan to sell most state-owned firms

The statement didn't clarify which sectors would be deemed strategic and non-strategic

Apex capex: How is govt capital expenditure driving India's growth

Centre and states capex now at Rs 19 trillion, cornered by infra

IMF expresses concern over ongoing political uncertainty in Pakistan

The IMF noted that despite a coalition government formed by the alliance of Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party

IMF mission to meet Pak officials next week to discuss economic trajectory

An IMF mission will meet authorities of cash-strapped Pakistan next week to hold discussions for laying the foundation for "better governance" and "stronger economic growth", an official said on Sunday. Last month Pakistan completed a short-term USD 3 billion programme with the International Monetary Fund (IMF), which bailed the country out of any default. On Friday, an advance team of the Washington-based global lender reached the cash-strapped country to hold talks after Islamabad requested a longer and larger bailout package. A mission team led by Nathan Porter, IMF's mission chief to Pakistan, will meet with authorities next week to discuss the next phase of engagement," said Esther Perez Ruiz, IMF's resident representative for Pakistan. The aim is to lay the foundation for better governance and stronger, more inclusive, and resilient economic growth that will benefit all Pakistanis, the Dawn newspaper quoted her as saying. Pakistan has sought the next bailout package in the r

The ominous shadow of global debt

The IMF's latest reports warn that piecemeal solutions won't suffice anymore

Pak finance ministry sees inflation at 18.5%-19.5% in April, easing in May

Gross domestic product growth for the second quarter of the fiscal year ending in June is estimated at 1% and expected to improve in the second half of the fiscal year, it said in its monthly report

IMF approves immediate disbursal of $1.1 billion loan tranche to Pakistan

The International Monetary Fund has approved an immediate disbursal of USD 1.1 billion to Pakistan as part of a bailout package and said the country needs to take tough measures to bring its economy back on track. A decision in this regard was taken by the International Monetary Fund (IMF) Executive Board as it completed the second and final review of Pakistan's economic reform programme supported by the IMF's Stand-By Arrangement (SBA). With this development, the disbursements under the SBA reached around USD 3 billion. IMF's Deputy Managing Director Antoinette Sayeh said, "Given the significant challenges ahead, Pakistan should capitalize on this hard-won stability, persevering -- beyond the current arrangement -- with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth." Continued external support will also be critical, she said. Achieving strong, long-term inclusive growth and creating jobs require accelerating structural .