Page 2 - International Monetary Fund

ADB assures cash-strapped Pakistan $2 billion in new loans annually: Report

The Asian Development Bank has assured Pakistan it will provide USD 2 billion annually in new loans to the cash-strapped country amid the government's inability to get cheaper credit due to its worsened ratings, according to a media report on Tuesday. The assurance was given by the visiting Asian Development Bank (ADB) President Masatsugu Asakawa during his interaction with Pakistani authorities on Monday, The Express Tribune newspaper reported, citing Ministry of Economic Affairs officials. The Manila-based lender is expected to provide USD 2 billion per annum from 2024 to 2027, the officials said, adding that the total four-year package amounts to USD 8 billion. Out of the USD 2 billion, the ADB will give around USD 1 billion at a fixed 2 per cent rate under its concessional window. Despite having reached a staff-level agreement with the International Monetary Fund (IMF), Pakistan has become a desperate borrower in recent years, striking deals at unsustainably higher interest rate

IMF to discuss $7 billion loan to cash-strapped Pakistan on Sep 25

The International Monetary Fund on Thursday said that its board will meet on September 25 to discuss the USD 7 billion Extended Fund Facility (EFF) to cash-strapped Pakistan. The loan package was agreed on July 12 when the two sides inked a staff level agreement but its formal approval was delayed due to failure of Pakistan to bridge external financing gap. However, chief of the State Bank of Pakistan, Jamil Ahmad, said the country had secured a commitment of USD 2 billion external financing, which had been a hurdle in the key Fund's meeting to endorse the 37-month EFF loan. Addressing a press briefing, IMF's spokesperson Julie Kozack said the Fund had reached a staff-level agreement with Pakistan in July. We are very happy that we can say now that the board meeting is scheduled to take place on September 25, she said. This is following Pakistan obtaining the necessary financing assurances from its development partners. The new EFF arrangement...follows the successful implementatio

Pakistan accepts IMF's condition to not establish new SEZs: Report

Pakistan has accepted the IMF condition that it would not establish any new special economic or export processing zone in the country as it waits for the approval of a USD 7 billion bailout package from the international money lender, a media report said on Wednesday. The Washington-based lender's condition will impact the government's plans to establish an export processing zone (EPZ) on a piece of land belonging to the closed Pakistan Steel Mills, The Express Tribune newspaper reported. The report quoted government sources as saying that the IMF had asked Pakistan that it would not create any new special economic zone (SEZ) or EPZ and tax incentives already availed by the existing zones will not be extended after expiry. While the condition will be applicable to both federal and provincial governments, Khyber Pakhtunkhwa has refused to accept it, the report said. The IMF's conditions underscore how deeply it has captured Pakistan's economic and industrial policies, which could ..

IMF, Ukraine reach deal that would give access to $1.1 bn in financial aid

The IMF is a key international lender to Kyiv and its four-year $15.6 billion programme is a crucial part of a bigger global economic support package to Ukraine

World Bank follows IMF. Revises India's FY25 GDP growth forecast to 7%

The International Monetary Fund had earlier also raised India's growth forecast to 7 per cent for the financial year 2024-25 (FY25), following the conclusion of general elections in the country

Pakistan eyes $4 bn from West Asian banks to plug external financing gaps

Pakistan and the IMF reached an agreement on the loan program in July, subject to approval from the IMF's executive board

India's GDP growth slowed down to six-quarter low of 6% in Q1 FY25: ICRA

The credit rating agency expects India's GDP to grow by 6.8 per cent for the full fiscal year 2024-25, lower than the 8.2 per cent achieved in 2023-24

Centre has done far better in reforms, states need to pull up: Subramanian

It is time now that state governments also work hard in giving us reforms, good policies, not just freebies, he added

Making good progress with IMF to get board approval: Pak finance minister

Pakistan is in talks with Saudi Arabia, the United Arab Emirates and China to meet gross financing needs under the IMF programme

India can become a $55 tn economy by 2047 with 8% growth: IMF exec director

IMF Executive Director Krishnamurthy V Subramanian noted the remarkable progress being made in financial inclusion through initiatives like the 'Pradhan Mantri Jan-Dhan Yojana'

Sri Lanka needs to raise fiscal revenue to maintain economic stability: IMF

IMF has also provided Colombo and financial advisors of the country's bondholders an assessment on a provisional deal

Reduction of corporate tax in Budget will promote India-US trade: Ex-CEA

Professor Krishnamurthy Subramanian said that the removal of Angel Tax would be significant for India's startup ecosystem and encourage investments from outside

Amid Ukraine war, Russia upgraded to 'high-income' nation; here's why

Thriving in a war economy: Amid heavy sanctions, Russia's economy defied expectations, achieving a high-income status for the first time since 2014, according to the World Bank

Pakistan secures new $7 billion loan from IMF offering breather for govt

The new 37-month deal, which will be Pakistan's 25th since independence, comes as the country faces loan repayments of about $24 billion this fiscal year, which started July 1

Lanka approves debt restructuring; to ink deal on Jun 26: Govt spokesman

Cash-strapped Sri Lanka has approved the debt restructuring deal with its creditors while the negotiations with international sovereign bondholders are to be continued further, cabinet spokesperson and minister Bandula Gunawardena said on Tuesday. Gunawardena also said that top treasury officials along with the minister of state for finance have been sent to Paris to sign the relevant agreements with the Official Creditors Committee which comprises two types of creditors called Paris Creditors and Non-Paris Creditors. There are a group of 15 countries under the Paris Creditors group whereas seven countries, including India in the Non-Paris Creditors. "Sri Lanka on Tuesday approved the debt restructuring deal with creditors committee while the negotiations with international sovereign bondholders are to be continued further," Gunawardena, the minister for Transport, Highways and Mass Media said. "Sri Lanka faced its worst crisis since independence when we were no longer able to meet

Shehbaz Sharif vows to end Pak's dependency on foreign aid and IMF bailouts

Prime Minister Shehbaz Sharif has pledged to end Pakistan's dependency on foreign aid and IMF bailouts and surpass neighbouring nations in economic activity, as he outlined a series of bold reforms to reduce the cash-strapped government's expenses and revive the economy. Sharif addressed the nation on Saturday and expressed hope that the next deal with the International Monetary Fund (IMF) for a bailout package would be the last in Pakistan's history. The Pakistan government is currently in talks with the IMF for a loan estimated to be between USD 6 billion to USD 8 billion, as it strives to avert a default in a slow-paced economy. Sharif emphasised that every penny would be spent on the progress of the nation and its people. He expressed commitment to reduce expenses and, within five years, provide education and skills to the youth. Inshallah, this will be the last IMF programme in Pakistan's history. We will stand on our feet and surpass our neighbouring countries in economic ..

Tax burden in UK highest since 1949; election pledges won't bring relief

Election pledges not to raise tax have been common since 1997, when Tony Blair promised not to raise income tax or VAT

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 .

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