Tag: Funding

  • IMF deal to improve Pakistan’s financial outlook, but continuous reforms are essential: Moody’s

    IMF deal to improve Pakistan’s financial outlook, but continuous reforms are essential: Moody’s

    Moody’s Investors Service has stated that Pakistan’s recent staff-level agreement with the International Monetary Fund (IMF) enhances the nation’s funding prospects.

    However, the global rating agency stressed the necessity of sustained reforms to mitigate liquidity risks.

    On 12 July, Pakistani authorities and the IMF reached a staff-level agreement on a 37-month Extended Fund Facility (EFF) worth approximately $7 billion. This agreement still awaits approval from the IMF Executive Board, with no specific date set for the vote.

    Moody’s commented that once the loan deal is approved, which is highly anticipated, it will significantly boost Pakistan’s funding prospects. The new IMF program is expected to provide reliable financing from the IMF and attract additional funding from other bilateral and multilateral partners, addressing Pakistan’s external financing needs.

    Nonetheless, Moody’s cautioned that the government’s ability to consistently implement reforms will be crucial to maintaining continuous financial support throughout the IMF program, ultimately reducing liquidity risks.

    The new IMF EFF requires Pakistan to undertake extensive reforms, including broadening the tax base, eliminating exemptions, timely managing and privatising energy enterprises, phasing out agricultural support prices and related subsidies, advancing anti-corruption measures, enhancing governance and transparency, and gradually liberalising trade policy.

    Moody’s also warned that rising social tensions, driven by the high cost of living—which could be exacerbated by increased taxes and future energy tariff adjustments—might hinder reform implementation. Furthermore, the coalition government may struggle to maintain sufficient electoral support to implement these challenging reforms consistently.

    An IMF report published in May highlighted Pakistan’s external financing needs, estimated at $21 billion for fiscal year 2025 (ending June 2025) and approximately $23 billion for fiscal years 2026-2027.

    Moody’s noted that Pakistan’s external position remains precarious, with substantial external financing requirements over the next three to five years.

    The country remains vulnerable to policy slippages, weak governance, and high social tensions, which could impair the government’s ability to advance reforms, complete IMF program reviews, and secure external financing.

  • Pakistan anticipates final IMF tranche approval in late April

    Pakistan anticipates final IMF tranche approval in late April

    The International Monetary Fund (IMF) announced that its Executive Board meeting, anticipated for late April, is crucial for approving Pakistan’s final tranche of approximately $1.1 billion (SDR 828 million). 

    This sum represents the last portion of the $3-billion Stand-By Arrangement (SBA) initiated in June of the previous year.

    Julie Kozack, IMF Communication Director, revealed this information during a media briefing, highlighting the significance of the staff-level agreement reached on March 19 between IMF staff and Pakistani authorities. 

    This agreement, subject to approval by the IMF’s Executive Board, acknowledges Pakistan’s strong program implementation by the State Bank of Pakistan (SBP) and the interim government, as well as the new government’s commitment to ongoing policy and reform endeavors aimed at transitioning Pakistan from stabilisation to robust, sustainable recovery.

    Kozack emphasised the improvement in Pakistan’s economic and financial position since the completion of the first review, with growth and confidence steadily rebounding. 

    Looking ahead, she mentioned the possibility of a successor IMF-supported program to address Pakistan’s fiscal and external stability challenges and foster inclusive growth, indicating the IMF’s readiness to engage in discussions with Pakistani authorities.

    Meanwhile, Pakistan’s foreign exchange reserves witnessed a modest increase, reaching $8.04 billion as of March 29, although still considered low for an import-dependent economy, raising concerns about potential future pressure. 

    Finance Minister Muhammad Aurganzeb has acknowledged the need for another IMF bailout, with discussions slated for the upcoming Spring meetings of the Board of Governors of the World Bank Group and IMF scheduled for April 15-20, 2024, in Washington DC, where Aurangzeb is expected to lead Pakistan’s delegation.

  • Iran Ambassador fears US may hinder Pak-Iran gas pipeline project

    Iran Ambassador fears US may hinder Pak-Iran gas pipeline project

    Iran’s Ambassador to Pakistan Dr Reza Amiri Moqaddam has said that the United States may create obstructions in the payment procedure of Pak-Iran gas project, however, both countries could find a solution to this.

    The Ambassador’s statement came after US Assistant Secretary of State Donald Lu, in a congressional hearing, gave caustic remarks regarding the gas pipeline project and emphasized that the US would try to halt the mega project.

    “I fully support the efforts by the US government to prevent this pipeline from happening,” he said during a congressional hearing on 19 March. “We are working toward that goal.”
    “We are tracking this planned pipeline between Iran and Pakistan … Honestly, I don’t know where the financing for such a project would come from. I don’t think that many international donors would be interested in funding such an endeavor,” the US official added, highlighting that the White House “will uphold both in letter and spirit all sanction laws related to Iran.”

    The Iranian envoy pointed out that Iran had already completed its side of the agreement by constructing a 1,000 kilometers gas pipeline on its side and Pakistan had yet to start it. “The Iranian gas pipeline is in the wider interest of people of both countries,” he added.

  • ‘Star Wars’ actor sues Disney with funding from Elon Musk’s X

    ‘Star Wars’ actor sues Disney with funding from Elon Musk’s X

     A “Star Wars” actor backed by Elon Musk’s X is suing Disney for firing her over inflammatory social media posts about the Holocaust, the pandemic and trans rights.

    Gina Carano, who had a major role in the wildly popular Disney+ series “The Mandalorian” until 2021, filed a lawsuit in California on Tuesday claiming wrongful termination.

    The suit says Carano was expressing personal political views but was hounded by an “extreme progressive” online mob, and alleges that Disney’s actions and comments had damaged her reputation and ability to find work in the future. 

    The lawsuit is being funded by X, a spokesman for the company confirmed to AFP.

    Carano, an outspoken former martial arts fighter-turned-actor, was fired by Disney for what the company at the time dubbed “abhorrent and unacceptable” social media posts “denigrating people based on their cultural and religious identities.”

    One particularly controversial post shared by Carano appeared to liken being a conservative in the United States to being Jewish in Nazi Germany.

    Another post appeared to mock a person for wearing multiple masks during the Covid-19 pandemic in California.

    And Carano had earlier drawn the wrath of members of the trans community for adding “boop/bop/beep” as preferred pronouns on her Twitter profile.

    In a statement, Carano said she had “never even used aggressive language” but had shared “thought provoking” posts with “respect & the occasional comedy.”

    Both her statement and the lawsuit allege that Carano was afforded less right to exercise her freedom of speech than some of her male colleagues.

    Carano said she had been contacted by an X lawyer offering to take on her case after she publicly replied to an open offer from Musk to help anyone fired after using X to exercise free speech.

    “As a sign of X Corp’s commitment to free speech, we’re proud to provide financial support for Gina Carano’s lawsuit,” said an official post by X on Tuesday.

    The lawsuit does not specify the amount of damages Carano is seeking, but claims she lost a role on planned “Mandalorian” spin-off “Rangers of the New Republic” that would have been worth “$150,000 to $250,000 per episode.”

  • Israel alleges UN organisation involved in Oct 7 attack, funding suspended for agency

    Israel alleges UN organisation involved in Oct 7 attack, funding suspended for agency

    Australia and Canada have suspended their funding to the UN agency for Palestinian refugees, after Israel accused several employees of involvement in October 7 attacks by Hamas.

    Australian Foreign Minister Penny Wong said on Saturday she was “deeply concerned” by the allegations against the agency, UNRWA.

    “We are speaking with partners and will temporarily pause disbursement of recent funding,” she wrote on social media platform X.

    “We welcome UNRWA’s immediate response, including terminating contracts and launching an investigation, as well as its recent announcement of a full investigation into allegations against the organization,” she added.

    Canada’s International Development Minister Ahmed Hussen on Friday announced that Ottawa had “temporarily paused any additional funding to UNRWA while it undertakes a thorough investigation into these allegations”.

    “Canada is taking these reports extremely seriously and is engaging closely with UNRWA and other donors on this issue,” he wrote on X.

    “Should the allegations prove to be accurate, Canada expects UNRWA to immediately act against those determined to have been involved in Hamas’s terrorist attacks.”

    The moves come after the United States halted its funding to UNRWA on Friday, saying the allegations were against 12 employees who “may have been involved” in the Hamas attack that triggered the war in Gaza.

    The United Nations agency for Palestinian refugees says it has opened an investigation into some employees Israel alleges were involved in the October 7 attacks, and that it has severed ties with those staff members.

    “The Israeli authorities have provided UNRWA with information about the alleged involvement of several UNRWA employees in the horrific attacks on Israel on October 7,” Philippe Lazzarini, commissioner-general of the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), said on Friday.

    UN chief Antonio Guterres has pledged to conduct an “urgent and comprehensive independent review of UNRWA”.

    Established in 1949 following the first Arab-Israeli war, the agency provides services including schooling, primary healthcare and humanitarian aid to Palestinians in Gaza, the West Bank, Jordan, Syria and Lebanon.

    It is important to note that since the onset of the war on Gaza, Israeli authorities, including Prime Minister Benjamin Netanyahu, have accused it of fuelling anti-Israeli incitement – allegations it denies.

    UNRWA says it has provided aid to desperate people in Gaza and used its facilities to shelter those fleeing Israeli attacks.

    The agency’s shelters have also been repeatedly targeted by Israeli missiles during the war, despite pleas for safe passages to deliver humanitarian aid and assistance.

  • Pakistan plans to secure $4.5 billion from diverse sources in current fiscal year

    Pakistan plans to secure $4.5 billion from diverse sources in current fiscal year

    Caretaker Minister for Finance, Dr Shamshad Akhtar, has outlined Pakistan’s financial projections for the current fiscal year (2023–24), highlighting an anticipated mobilisation of approximately $4.5 billion from both multilateral and bilateral sources, excluding the International Monetary Fund (IMF).

    Minister Akhtar disclosed that the government foresees receiving over $1.6 billion in the second quarter (Q2) from sources such as the Asian Development Bank (ADB), the World Bank, and the Asian Infrastructure Investment Bank (AIIB).

    She clarified that these inflows encompass funds allocated to both project-based and programme-based initiatives.

    Highlighting progress in negotiations, the minister revealed the completion of discussions for certain programme loans, with impending disbursements expected.

    She reassured that Pakistan remains committed to meeting its debt obligations promptly, both currently and in the future.

    Regarding the International Monetary Fund (IMF) programme, Minister Akhtar reported the successful conclusion of the first review of the Standby Agreement, resulting in the attainment of a Staff Level Agreement (SLA).

    Pending approval by the IMF’s Executive Board, this agreement will grant Pakistan access to $700 million.

    Commenting on the prevailing economic situation, Minister Akhtar acknowledged the challenges faced domestically and globally during FY2023.

    Despite these hurdles, she asserted that fiscal and external sector stability have been achieved through the implementation of various stabilisation measures and structural reforms.

  • Fulbright scholarship: TOEFL replaced by Duolingo English Test for 2025

    Fulbright scholarship: TOEFL replaced by Duolingo English Test for 2025

    The United States Educational Foundation in Pakistan (USEFP) has announced an update in the language proficiency test for the Fulbright Scholarship Program for the year 2025.

    Applicants were previously required to pass TOEFL (Test of English as a Foreign Language), which will now be replaced by the Duolingo English Test.

    Fulbright scholarship program: Duolingo english test replaces TOEFL for 2025

    The eligibility criteria for the Fulbright Scholarship Program, however, is the same as before.

    A generously funded scholarship programme, Fulbright is open for all Pakistanis citizens with a strong academic background, who commit to return back and serve Pakistan.

    Preference is given to women, individuals with disabilities, and those hailing from specific regions such as Balochistan, Northern Sindh, Southern Punjab, KP, AJK, and GB.

    Application and documentation

    Prospective applicants are required to submit an application form along with three reference letters, a GRE score report, and scanned transcripts.

    Deadline and submission

    The deadline for applications for the 2025 Fulbright Scholarship Program is February 28, 2024, accessible through the USEFP’s website.

  • Pakistan to receive $1.5 billion from international lenders following IMF approval

    Pakistan to receive $1.5 billion from international lenders following IMF approval

    Pakistan is poised to secure funds amounting to $1.5 billion from global lenders, contingent on the approval of the loan tranche under the $3 billion Stand-By Arrangement (SBA) by the International Monetary Fund (IMF), as highlighted by Dr Shamshad Akhtar, the caretaker finance minister, in a recent interview with a local news channel.

    It’s noteworthy that the IMF granted preliminary approval on November 15, 2023, for the disbursement of the upcoming loan tranche within the programme.

    Upon receiving approval, Pakistan will gain access to SDR 528 million, equivalent to approximately $700 million. This will contribute to the cumulative disbursements under the program reaching almost $1.9 billion.

    The agreement underscores the authorities’ commitment to advancing planned fiscal consolidation, expediting cost-reducing reforms in the energy sector, completing the transition to a market-determined exchange rate, and pursuing reforms in state-owned enterprises and governance.

    These measures aim to attract investment, support job creation, and simultaneously enhance social assistance.

    Nathan Porter remarked, “Anchored by the stabilization policies under the SBA, a nascent recovery is underway, supported by international partners and indications of improved confidence.”

    He added that the steadfast execution of the FY24 budget, ongoing adjustments of energy prices, and renewed inflows into the foreign exchange (FX) market have alleviated fiscal and external pressures.

  • Pakistan expected to secure second IMF tranche despite missed deadlines

    Pakistan expected to secure second IMF tranche despite missed deadlines

    Pakistan is poised to secure the next installment of its $3 billion stand-by arrangement (SBA) with the International Monetary Fund (IMF), despite potential delays in meeting certain deadlines, as indicated in a recent brokerage report. 

    Topline Securities, in its analysis, acknowledged that Pakistan had achieved the prescribed targets for net international reserves, net domestic assets, and foreign currency swap/forward positions as of the close of June 2023.  

    However, it also pointed out that Islamabad had fallen short in meeting the targets for the primary deficit, which assesses the fiscal balance excluding interest payments as well as external public debt disbursements. 

    Furthermore, the report highlighted that Pakistan had yet to implement a gas price adjustment agreed upon with the IMF, which was a prerequisite for completing the second review of the program. 

    Pakistan initially received a $1.2 billion installment from the IMF’s stand-by arrangement in July after the IMF’s Executive Board approved the bailout package to stabilise the country’s economy.  

    Under the agreement, the remaining $1.8 billion is set to be disbursed in two tranches following reviews in November and February. 

    The current IMF programme outlines nine performance criteria, four indicative targets, and ten structural benchmarks for the upcoming review. 

    In a briefing for analysts on September 14, the Governor of the State Bank of Pakistan confirmed that all quantitative performance targets related to the central bank, including net domestic assets, swaps, and net international reserves, had been met.  

    Similarly, the Finance Ministry expressed its commitment to maintaining fiscal discipline and achieving primary balance targets. 

    Despite challenges and some unmet targets related to external funding, the primary deficit, gas price adjustments, etc., Topline Securities remains optimistic about Pakistan’s chances of receiving the next IMF tranche.  

    They believe that if the government can effectively manage the current account deficit to around $4 billion for FY2024, as opposed to the projected $6.5 billion, it can meet its financing requirements, particularly given the difficulty of commercial borrowing. 

    The Ministry has projected gross external financing requirements of $28.4 billion for the current fiscal year, including the current account deficit of $6.5 billion, aligning with IMF projections outlined in the latest country report. 

    Regarding funding sources, the government plans to secure a total of $11 billion, with $5 billion coming from China and $6 billion from Saudi Arabia, primarily in the form of rollovers and an oil facility with deferred payments, according to Topline’s report.  

    The government also anticipates around $6.3 billion from multilateral creditors, including the World Bank, Asian Development Bank, Islamic Development Bank, and Asian Infrastructure Investment Bank. 

  • Don’t miss this scholarship opportunity in the UK

    If you are planning to pursue further studies abroad, apply for this ongoing scholarship in the UK.

    In a recent post, the Higher Education Commission (HEC) announced Commonwealth Scholarships for masters and PhD programmes for the next cohort.

    The Commonwealth Scholarship Commission in the UK (CSC) is a UK-based scholarship scheme led by international development objectives.

    The scholarship covers full tuition fees, airfare to and from the UK, and provides a living allowance to support you while you are there.

    Pakistan and Azad Jammu and Kashmir (AJK) students are also eligible for the scholarships.

    The deadline to apply is October 17 (Tuesday) on the CSC portal.

    According to HEC’s website, 26 nominations are available for masters, 30 for PhD and 10 for teaching faculty PhD.

    For further details and understanding of the requirements, eligibility and more, visit their website:

    1. HEC
    2. British Council
    3. Commonwealth Scholarship
    4. Commonwealth Scholarship Commission in the UK (CSC)