Tag: IMF

  • Finance Minister Aurangzeb meets Donald Lu in Washington DC

    Finance Minister Aurangzeb meets Donald Lu in Washington DC

    Finance Minister Muhammad Aurangzeb held a high-level meeting with the United States State Department Assistant Secretary Donald Lu at World Bank headquarters in Washington to discuss financial reforms that Pakistan is planning to implement.

    The meeting was held in the background of the Finance Minister’s visit to Washington in order to finalize talks about the latest International Monetary Fund (IMF) bailout package.

    Aurangzeb and the US official focused on upgrading economic partnerships, with emphasis on alternate energy, agriculture, climate resilience and technology.

    Aurangzeb was positive about the investment opportunities by America in information technology, renewables, agriculture and minerals extraction.

    He also pledged close collaboration with the US International Development Finance Corporation and Exim Bank for mutual development.

    Aurangzeb has been conducting high-level meetings with top officials in the US on the sidelines.

  • Halaat kb behtar honge? Finance Minister gives timeline for structural reforms

    Halaat kb behtar honge? Finance Minister gives timeline for structural reforms

    Finance Minister Muhammad Aurangzeb spoke at the US think tank Atlantic Council in Washington DC, stating that Pakistan needs two or three years to implement structural reforms prescribed by International Monetary Fund (IMF).

    The minister remarked that Pakistan does not need any more policy prescription from the IMF because it knows what it needs to do in terms of reforms.

    “We have known the what and why not for years but for decades. […] It’s time for us to actually start moving the execution of these aspects and why we’re looking for a larger and extended program, so once we get into the execution we will need a two to three-year time period to go through the structural reforms,” said Aurangzeb, previously the head of Pakistan’s largest bank.

    The minister also remarked that if Pakistan failed to implement reforms, then it would be looking at another IMF program later.

    The Finance czar was of the opinion that Pakistan entered 2024 in a much better economic shape and credited the nine-month Stand-By Arrangement (SBA) programme.

    He also emphasized that needs to bring the under-taxed and untaxed sectors into the national tax net and also said that taxation process needed reforms.

  • ’Four salary bonus’, PM Shehbaz is reportedly rewarding his staff

    ’Four salary bonus’, PM Shehbaz is reportedly rewarding his staff

    A few days before leaving for Washington to ask the International Monetary Fund (IMF) for a new bailout package to avoid a default, Prime Minister Shehbaz Sharif approved a proposal to give up to four salaries in bonuses to his staff. He also asked his finance minister to concur with it.

    The PM is being faced with criticism that the policy to hand out such big awards to bureaucrats amidst such deeply serious economic conditions is against an austerity drive.

    Also, analysts are asking whether this move would bode well for the new IMF bailout package as the IMF discourages bloated government expenditures.

    The rewards were approved for staff officers because of ‘their extraordinary efforts in the completion of tasks’, according to the Express Tribune.

    More importantly, the cost for these bonuses will be paid to these government servants by taking loans from banks at a 23 per cent interest rate.

  • 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.

  • Finance Minister Muhammad Aurangzeb will meet with IMF on April 14–15

    Finance Minister Muhammad Aurangzeb will meet with IMF on April 14–15

    Minister for Finance and Revenue Muhammad Aurangzeb announced on Friday that a government delegation will meet with the International Monetary Fund (IMF) in Washington DC on April 14 and 15.

    Talking to the media during his visit to the Pakistan Stock Exchange (PSX), the Minister said that the features of a new programme will be discussed in a Washington DC meeting. However, detailed talks will be held in Pakistan.

    He also said that the government plans to join a longer programme with the IMF, adding that the country’s economy will stay stable with the fund.

    Prime Minister Shehbaz Sharif also hinted on March 21 that the new IMF programme will last for three years.

    “New tranche of loan is likely to be received from the IMF in a few days, however, we would need another programme,” he had said while addressing a session of the Special Investment Facilitation Council’s (SIFC) apex committee attended by civil-military leadership.

    Aurangzeb responded to a question regarding the IMF, saying that the size of the new programme has not been discussed yet.

  • IMF engagement should not hinder Pakistan’s economic progress: PM Shehbaz

    IMF engagement should not hinder Pakistan’s economic progress: PM Shehbaz

    Prime Minister (PM) Shehbaz Sharif asserted on Tuesday that any forthcoming engagement with the International Monetary Fund (IMF) must not impede Pakistan’s economic progress.

    His remarks come in the wake of discussions regarding a potential Extended Fund Facility (EFF) with the IMF, scheduled for deliberation in Washington next month, as the nation grapples with mitigating a looming economic crisis.

    With the expiration of the standby $3 billion arrangement with the IMF looming on April 11, recent negotiations have culminated in a staff-level agreement, paving the way for the disbursal of the final tranche of $1.1 billion.

    PM Shehbaz, following his re-inauguration, promptly directed his financial team to initiate efforts towards securing an EFF from the IMF.

    Speaking at a ceremony in Islamabad, the Prime Minister underscored the indispensability of another IMF programme while highlighting the imperative of simultaneously pursuing economic expansion.

    He highlighted key areas such as agriculture, IT exports, and both traditional and non-traditional exports as avenues for growth, questioning any limitations posed by an IMF programme on such initiatives.

    “If there is an IMF programme, who has stopped you from doubling agriculture output? from increasing IT exports? from increasing traditional and non-traditional exports?” PM Shehbaz posited, stressing the compatibility of economic growth initiatives with an IMF programme.

    He cautioned against using the IMF as an excuse for stagnation, urging prioritisation of domestically controllable economic avenues.

    In reiterating his stance, Prime Minister Shehbaz Sharif conveys a dual commitment to engaging with the IMF while ensuring a steadfast focus on bolstering Pakistan’s economic trajectory, fostering employment, and curbing inflation.

    As the nation navigates through economic challenges, the Prime Minister’s emphasis on proactive economic strategies resonates as a call to action for sustainable growth and resilience.

  • PM Shehbaz says Pakistan needs another IMF programme

    PM Shehbaz says Pakistan needs another IMF programme

    Prime Minister Shehbaz Sharif has said that Pakistan needs another International Monetary Fund (IMF) programme for economic stability. Recognizing the programme’s ‘limitations’, however, he said that alongside the loan, his government will focus on the country’s growth, provide job opportunities and address inflation.

    “We have to do another IMF programme. It won’t work out without one. Rome was not built overnight,” the Prime Minister said addressing the Tax Excellence Awards in Islamabad today.

    The premier stressed the importance of collaboration between federal and provincial governments to facilitate the private sector of the country. He said it is the government’s responsibility to foster a conducive environment for business, and not its job to conduct business. The Prime Minister also stated that the FBR will be totally restructured through complete digitalization.

    He said that leading exporters and taxpayers are the heroes of Pakistan and said, “Those who are being given awards today will be given blue passports as honourary ambassadors of Pakistan.”

  • PTI denied permission for protest on March 30

    PTI denied permission for protest on March 30

    Pakistan Tehreek-e-Insaf (PTI) has been denied permission by district authorities to hold a protest on March 30 in Islamabad. The party had reached out to the Islamabad High Court (IHC) to get permission for holding a rally on March 30 after the district administration of Islamabad did not respond to the party’s request. However, the capital’s administration on Sunday finally refused to allow PTI to hold a public rally against alleged poll rigging in 2024 general elections, citing security concerns.

    The reply from the administration came after the deadline given to them by the IHC to take a decision on PTI’s request to stage a protest in the capital city.

    PTI’s regional president Aaamir Masood Mughal opined that his party would again approach the courts. “If you can’t provide security even in the capital, then you have no right to stay in the government,” he added.

    PTI also planned to hold a press briefing about the upcoming International Monetary Fund (IMF) package, its consequences on the public and the economy on March 25.

  • PTI decides to march against alleged poll rigging

    PTI decides to march against alleged poll rigging

    The Pakistan Tehreek-e-Insaf (PTI) has announced to stage a protest against the alleged rigging in the 2024 general elections. The incarcerated founder of the party Imran Khan believes that the mandate was stolen from people and post-poll rigging was rampant.

    According to them, election results were changed in the Form 47s compared to Form 45s to benefit the current ruling party Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP).
    PTI member and the Chief Minister of Khyber Pakhtunkhwa (KPK) also said “The incumbent government at the Centre has been formed after stealing PTI’s 180 seats.”

    Previously, the party had sought permission from the Deputy Commissioner of Islamabad to lawfully stage a protest in the capital city but received no reply. After this, they reached the Islamabad High Court (IHC) to be allowed to hold a rally. It is believed that they wanted to stage the protest on Pakistan Day but later decided against it and set the date to March 30.

    Imran Khan’s party is also set to hold a press briefing on the impacts of upcoming International Monetary Fund (IMF) package on the general public on March 25.

  • Government likely to extend new IMF programme for three years, says Shehbaz Sharif

    Government likely to extend new IMF programme for three years, says Shehbaz Sharif

    Prime Minister Shehbaz Sharif has indicated that the government is likely to extend the new International Monetary Fund (IMF) programme for three years.

    “The new tranche of loan is likely to be received from the IMF in a few days, however, we would need another programme,” he said while addressing a session of the Special Investment Facilitation Council’s (SIFC) apex committee attended by civil-military leadership on Thursday.

    Shehbaz Sharif also stated that the presence of civil-military leadership, including elected lawmakers, in the session is a clear message of unity, development, and prosperity for the country.

    The PM also said that the former coalition government, comprised of 13 political parties, prioritised the country over politics.

    “There are major challenges to national economy. The SIFC is an important platform which was primarily establishment to remove hurdles in foreign investments, and it held several meetings during the last eight months.” Chief of Army Staff (COAS) General Syed Asim Munir played vital role in SIFC’s formation, he added.