Tag: IMF

  • Pakistan’s foreign currency reserves down by $328 million

    Pakistan’s foreign currency reserves down by $328 million

    State Bank of Pakistan (SBP) on April 28, revealed that the central bank’s foreign exchange reserves fell by 3 per cent on a weekly basis.

    The central bank’s foreign currency reserves were $10,558.2 million on April 23, a $328 million decrease from the previous day’s total of $10,885.7 million. according to the SBP, this decline was caused by external debt and other payments.

    Pakistan’s total liquid foreign currency reserves, comprising net reserves held by banks other than the SBP, were $16,668.2 million. Banks held a total of $6,110 million in net reserves.

    SBP’s foreign exchange reserves reached an all-time high of $20.15 billion in the week ending August 27, 2021, after Pakistan received a general allocation of Special Drawing Rights (SDRs) worth $2,751.8 million from the IMF on August 24.

    Pakistan bought $2.5 billion using Eurobonds on March 30, 2021, by offering attractive interest rates to lenders in order to enhance foreign exchange reserves.

    Read more: All banks to remain open this Saturday

    On July 9, 2019, it received the first loan amount of $991.4 million from the IMF, which helped to boost reserves. The IMF released the second loan tranche of approximately $454 million in late December 2019.

  • ‘Imran caused huge damage to Pakistan in every sense’: Nawaz Sharif

    ‘Imran caused huge damage to Pakistan in every sense’: Nawaz Sharif

    Former Prime Minister (PM) Nawaz Sharif met with Pakistan People’s Party (PPP) Chairman Bilawal Bhutto-Zardari who both lashed out at former PM Imran Khan and his policies, regretting that Imran Khan promoted the culture of hooliganism and immorality in politics. “The PTI chairman has caused huge damage to Pakistan in every sense of the word.”

    Both PML-N supremo Nawaz Sharif and Bilawal Bhutto Zardari talked at length about political as well as coalition government affairs during the meeting that lasted for over three hours on Thursday in London.

    Later, both the leader addressed a press conference where they lashed out at former PM Imran Khan and his policies. Nawaz Sharif said: “Khan promoted the culture of hooliganism and immorality. He has caused huge damage to Pakistan in every sense of the word.”

    About the US foreign conspiracy which was claimed by Khan, Nawaz Sharif posed several questions: “Were you involved in holding an atomic blast? Why will there be a foreign conspiracy against you?”

    Nawaz said that Khan had claimed that he would take his own life before approaching the International Monetary Fund (IMF) for financial support. “But we did not see him taking his own life till now,” he added.

    “Imran Khan’s rule has been the darkest chapter in the history of Pakistan. We are saddened at the state of affairs in Pakistan and what it has been turned into. There are enormous challenges we are facing but we will repair the damage, through national consensus. All the stakeholders from all the provinces including PPP, PML-N, JUI-F and others political powers will play their due role”, he added.

    Similarly taking a jibe at Khan, Bilawal said: “There was no conspiracy against Khan at the White House. However, a conspiracy against him was hatched at the Bilawal House to throw out an illegal, selected and cruel government through the power of the vote [no-confidence motion].”

    Moreover, he said that using the experience and guidance of elders like Sharif and his father the new generation will strengthen Pakistan to face the challenges.

    About the meeting between Bilawal and Sharif, Geo News‘ sources revealed that the PPP chairman didn’t ask for the positions of Senate chairman, Governor Punjab or seat adjustments.

    As per the sources, Nawaz was told that Bilawal may bring up these matters. However, Bilawal told Nawaz he was calling him to discuss the possibility and the need for working together in the future for the greater cause of a strong and vibrant democracy.

    The three-hour-long meeting between the PML-N supremo and PPP chairman was held in two parts. In the first part, Bilawal and Nawaz held a one-on-one meeting, while in the second half, other senior leaders of both parties were also present in the meeting.

    Now, upon his return to the country, Bilawal will take an oath as foreign minister of Pakistan.

  • PKR continues losing streak against US dollar, sheds Rs1.48

    PKR continues losing streak against US dollar, sheds Rs1.48

    The Pakistani currency plummeted further against the US Dollar (USD) on April 20, with losses reported on the interbank exchange. At the completion of today’s session, the Pakistani rupee (PKR) lost Rs1.48 versus the US dollar.

    It declined by 0.80 per cent versus the greenback, closing at Rs185.92, after shedding Rs1.90 in the interbank market on Tuesday, April 19th, and concluding at Rs184.44. During today’s open market session, the Indian rupee (INR) fell to an intraday low of Rs185.95 over the US dollar.

    The local currency weakened against the dollar as businesses remained under pressure amid the ongoing dialogue between Pakistan and the International Monetary Fund (IMF). The Pakistani government is likely to undertake certain difficult and problematic steps in order to revive the local economy.

    Read more: PKR declines against US Dollar after winning for a week

    Oil prices rallied following steep losses the previous day as concerns about tighter supply from Russia and Libya arose, although industry data showed a decline in US crude inventories in the previous week.

  • PM Shehbaz rejects OGRA’s proposal, petrol price to remain unchanged till April 30

    PM Shehbaz rejects OGRA’s proposal, petrol price to remain unchanged till April 30

    Pakistan’s new Prime Minister (PM) Shehbaz Sharif on Friday dismissed the proposal from the Oil and Gas Regulatory Authority (OGRA) to raise the price of petroleum products for the fortnight. The recent decision is aimed at providing relief to the public affected by inflation.

    It is worth noting that the present government’s choice to maintain the same prices will oblige it to provide another substantial subsidy till the end of April 2022.

    Earlier, OGRA suggested to the Finance Division that the price of petrol be increased by Rs21.50 and that of diesel be hiked by Rs51.30 in view of the current petroleum levy and general sales tax (GST).

    Read more: Massive hike of Rs83.5 for petrol, Rs119 for diesel proposed by OGRA

    The authority also proposed a hike of Rs83.50 per liter of petrol and Rs119.88 per liter of diesel considering the federal government’s recommended petroleum levy of Rs30 and 17 per cent GST, as per the official statement.

  • State Bank of Pakistan hikes interest rate to 12.25% in an emergency meeting

    State Bank of Pakistan hikes interest rate to 12.25% in an emergency meeting

    Following an emergency meeting, the State Bank of Pakistan (SBP) raised interest rates by 250 basis points, as mounting political uncertainty and rising worldwide oil prices threaten to drive the country into a full-fledged economic catastrophe.

    The key rate is now 12.25 per cent, as per the latest statement released by the central bank on Thursday. According to the report, this makes the real rate “mildly positive” and will assist maintain external and price stability.

    The judgment came a few hours before the Supreme Court was due to rule on the constitutionality of Prime Minister Imran Khan’s disputed move to dissolve parliament and hold new elections. Pakistan may find it difficult to persuade the International Monetary Fund (IMF) to grant a much-needed loan tranche due to the political limbo.

    At the recent briefing, SBP governor, Reza Baqir, said, “We thought it’s important to take decisive action”.  He added that the body does not intend to do anything else.

    The central bank claimed that intensified domestic political turmoil contributed to the rupee’s 5 per cent loss and caused a jump in local bond rates, as well as Pakistan’s Eurobond yields and Credit Default Swap (CDS) spreads. Oil prices are likely to remain elevated, and the Federal Reserve of the United States is expected to compress sooner than expected, according to the report.

    The PKR broke all records on Thursday, selling at more than Rs189 per dollar in intraday trading in the interbank market, continuing a slump that has witnessed its decline of more than 10 per cent since March 4.

    Read more: Pakistan to import 32.7 million barrels of oil to cover petroleum needs

    Pakistan’s political instability, in addition to money from the IMF, is causing delays in a planned $1 billion green bond offering. A refinancing from China is also expected; the repayment in recent weeks caused Pakistan’s foreign-exchange reserves to plummet to their lowest level since records began in 2010.

    In a meeting last month, SBP cautioned that it might convene earlier than planned to avoid a crisis. It revised its average inflation prediction for the fiscal year ending in June from 9 per cent to little more than 11 per cent.

  • Govt decides to increase power tariff by Rs2.8 per unit

    Govt decides to increase power tariff by Rs2.8 per unit

    The government has decided to further increase the electricity tariff by Rs2.8 per unit, under the Circular Debt Management Plan (CDMP). The decision has been taken to collect an additional Rs292 billion from consumers as per the conditions of the International Monetary Fund (IMF).

    The tariff will go up from February to July this year, in two phases.

    As per the sources of The Nation, the Cabinet Committee on Energy (CCOE), which met under the chairmanship of Federal Minister for Planning, Development, and Special Initiatives Asad Umar, was informed that the power sector circular debt has increased by Rs196b during the first six months (Jul-December) of the fiscal year 2021-22 as compared to the same period of the previous year and has increased to a record high of Rs2,476b.

    The first rise, of at least 63 paisa, is anticipated to be implemented from this month, bringing in Rs85 billion for the government till June of next year.

    However, because of the higher-than-expected currency devaluation, the Ministry of Energy has warned the cabinet committee that the rise might be as high as 75 paisa per unit. According to the decision, another hike of Rs2.17 per unit will be implemented in July, putting an additional cost of Rs207 billion on customers.

  • IMF approves one billion dollar loan tranche for Pakistan

    IMF approves one billion dollar loan tranche for Pakistan

    The International Monetary Fund’s (IMF) Executive Board has approved the $1 billion loan tranche of their programme for Pakistan.

    Federal Minister for Finance and Revenue Shaukat Tarin taking to Twitter confirmed the news.

    “I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan,” he wrote.

    https://twitter.com/shaukat_tarin/status/1488928059562545159

    The sixth review was scheduled for January 12, 2022, and later January 28, but was postponed twice on Pakistan’s request, to attain more time for implementing IMF conditions.

    In order to meet another condition of the IMF, the government had successfully managed to get the State Bank of Pakistan (Amendment) Bill, 2021, cleared from the Upper House of Parliament — which was the last stumbling block in reviving the stalled programme.

  • PML-N’s Musadik Malik questions Yusuf Raza Gilani’s absence as Senate passes SBP Amendment Bill

    PML-N’s Musadik Malik questions Yusuf Raza Gilani’s absence as Senate passes SBP Amendment Bill

    The Senate on Friday passed the State Bank of Pakistan (SBP) Amendment Bill 2021 amid an outcry from the Opposition on suffering back-to-back defeats in the House, where it otherwise enjoys a dominating numerical strength.

    The bill was passed by the upper house with the treasury benches enjoying a one-vote lead of 43 members over the Opposition’s 42. The bill was presented by Finance Minister Senator Shaukat Tarin.

    Pakistan Muslim League-Nawaz (PML-N) leader Dr Musadik Malik, taking to Twitter, said, “Leader of the Opposition Yusuf Raza Gilani is missing. One vote, i.e. of Mr Gilani, is missing and the bill to make Pakistan a slave of the IMF was passed. And those who made him Leader of the Opposition voted for the government.”

    Taking to Twitter, Gilani’s son, Kasim Gilani said his father was absent from the Senate session because he had to attend Ghulam Rabbani Khar’s Qul. “To schedule secret sessions at midnight deliberately to overlap with bereavements is a violation of all norms of our culture, politics, and decency.”

    “The government summoned the session post midnight knowing well that the Qul of Noor Rabbani Khar was scheduled for today. YRG was in Multan and would not have been able to make it to Islamabad by 10am in anyway ent and he had to attend the Qul of his long time friend, political colleague, and father of two PPP MNAs.”

    On January 25, the Senate session was adjourned for Friday, January 28.

    The SBP Amendment Bill, 2021, promises complete autonomy to the central bank and places a complete restriction on the government’s borrowing from the central bank. However, the government can now borrow at a market rate from commercial banks, which will benefit private banks owned by business elites, according to the Opposition.

    The bill was passed by a majority vote. Chairman Senate Sadiq Sanjrani then adjourned the session till January 31.

  • Hand protecting Imran Khan can be on Opposition’s neck but never in their support, says Sheikh Rasheed

    Hand protecting Imran Khan can be on Opposition’s neck but never in their support, says Sheikh Rasheed

    Interior Minister Sheikh Rasheed during a press conference, while taking a jibe at the Opposition, said, “They [Opposition] want that the hand [protecting] Imran Khan should be on their head as well,” adding, ” this hand can be on their [Opposition] neck but never on their head.” Rasheed’s words hint towards the establishment.

    Talking to the journalists, Rasheed said, “If the Opposition goes to International Monetary Fund (IMF) its halal but if Imran Khan does the same its considered haram.”

    “These people went 23 times to the IMF. This time around, the conditions of IMF were pretty tough, hence we were not left with any option but to go to IMF,” said Rasheed.

    Addressing the Opposition, Rasheed said that the Opposition is planning two different long marches toward the capital. He said that the government will provide them the way to continue their march but the Opposition should keep in mind the importance of March 23 and the respect one gives to the country on [the Resolution Day of Pakistan].

    “Important personalities from Organisation of Islamic Cooperation (OIC) are coming to Pakistan on March 23 and all eyes from India will be directed towards Pakistan as well,” said Rasheed.

    Accusing the Pakistan Muslim League-Nawaz (PML-N) leaders of corruption, Raseed said, ” Shehbaz Sharif is more corrupt than Nawaz Sharif,” adding, “I am saying this based on my own knowledge.”

    “I would like to say a historical sentence that all four Sharif’s are minus from the politics of Pakistan,” said Rasheed.

  • PM Khan launches first-ever National Security Policy, original document remains classified

    PM Khan launches first-ever National Security Policy, original document remains classified

    Prime Minister (PM) Imran Khan launched the public version of the country’s first-ever National Security Policy (NSP) which aimed at addressing the external imbalance, socio-economic inequalities, and geographic disparities, reports Radio Pakistan.

    It is reported that the original version of the policy will remain classified.

    According to PM Khan, the nation is now headed in the right direction and added that national security was defined “in the right manner” in the new policy.

    Speaking about the International Monetary Fund (IMF), PM said, “We approach IMF under duress as in the end, only IMF is ready to help us and provide the cheapest loans. We have to abide by their conditions, and as a result, impose a burden on the people.”

    National Security Adviser (NSA) Dr Moeed Yusuf also addressed the launching ceremony.

    He said, “We are not seeking hostility with India for the next 100 years. The new policy seeks peace with immediate neighbours.”

    The NSP will mainly secure Pakistan’s interest and position globally. Moreover, the document would provide for pursuing youth-focused policies, guaranteeing food security, improving preventive healthcare, and mainstreaming climate adaptation.