Tag: negotiations

  • PPP wants to talk to PTI while PML-N and JUI-F oppose idea

    PPP wants to talk to PTI while PML-N and JUI-F oppose idea

    Pakistan People’s Party (PPP) is reportedly ready to hold talks with Pakistan Tehreek-e-Insaf (PTI) while Pakistan Muslim League-Nawaz (PML-N) and Jamiat Ulema-e-Islam Fazl (JUI-F) have rejected the idea.

    Stressing the importance of resolving conflicting court verdicts promptly and without impinging on the judiciary’s honour and prestige, PPP, in the interest of fair and free elections, called for general elections for all assemblies to be held on the same day.

    JUI-F leader Asad Mahmood, in a statement on Friday, said that no negotiations will take place with Imran Khan and called for imposing Article 6 on him. Interior Minister Rana Sanaullah on multiple occasions has also rejected the idea of holding talks with the PTI.

    On the contrary, it seems like the former ruling party is ready to talk, albeit only on the matter of elections.

    Pakistan Tehreek-e-Insaf (PTI) Senior Vice President Fawad Chaudhry said that the “ideal” situation to deal with the crisis surrounding Punjab and Khyber Pakhtunkhwa (KP) elections is for the ruling parties, establishment, and the PTI to hold a meeting together. 

    “The parties will have to sit together and bring a constitutional amendment with consensus to conduct elections at one time,” said Fawad.

  • Pakistan’s hopes for IMF agreement rise as Saudi Arabia confirms $2 billion in additional deposits

    Pakistan’s hopes for IMF agreement rise as Saudi Arabia confirms $2 billion in additional deposits

    The International Monetary Fund (IMF) has informed Pakistan that Saudi Arabia has confirmed $2 billion in additional deposits, which has rekindled hopes of an early agreement signing. Since January, Islamabad has been negotiating with the IMF for the release of $1.1 billion from a $6.5 billion bailout package that was agreed upon in 2019.

    To unlock the funding, the Pakistani government has cut back on subsidies, removed an artificial cap on the exchange rate, added taxes, and raised fuel prices. However, assurances from friendly nations for additional funds have delayed the agreement.

    The lender has informed Pakistani authorities of the development and the Fund staff is reportedly satisfied with the latest confirmation. The report states that the Saudi authorities are set to make a public announcement, possibly during the upcoming visit of Prime Minister Shehbaz Sharif to the kingdom.

    The Saudi envoy in Pakistan had also hinted in a recent interview that his country had always supported Pakistan in critical situations and that good news would be shared soon. The sources have stated that all eyes are focused on the UAE for getting confirmation on another $1 billion deposit from them, which may pave the way for striking the staff-level agreement (SLA) with the IMF.

    Finance Minister Ishaq Dar is expected to visit UAE on his way to the US where he will hold talks on the release of funds. However, there is still another stumbling block in the way of signing the SLA with the IMF. The Ministry of Petroleum, in consultation with the PM Office, had announced an unplanned cross-fuel subsidy for owners of motorcycles and cars up to 800cc, which needs to be scrapped at this stage.

    The government has not yet withdrawn the proposed cross-fuel subsidy, which cannot be implemented in a half-baked manner. Such schemes were considered in the past during the tenure of former finance minister Shaukat Tarin and even during the era of the PDM-led government when Miftah Ismail had the charge of the Ministry of Finance.

    Even Miftah Ismail had allocated Rs48 billion on the eve of the last budget in the name of Sasta Petrol, but it could not be implemented because such schemes could not be designed properly. The announcement of a half-baked cross-fuel subsidy had provided an excuse to the IMF for delaying the SLA signing, as they were still raising questions for getting more details to ascertain how the scheme was going to be implemented in a transparent manner.

  • SBP expected to increase interest rates again on IMF insistence

    SBP expected to increase interest rates again on IMF insistence

    The State Bank of Pakistan (SBP) is reportedly considering increasing the interest rate by 2 per cent during the upcoming Monetary Policy Committee (MPC) meeting in a bid to unlock the International Monetary Fund (IMF) programme.

    This follows failed negotiations between the Shehbaz Sharif-led government and the IMF, with the latter demanding that Pakistan raise the interest rate by 4 per cent due to its belief that inflation is lower in Pakistan as per the interest rate.

    The SBP had already increased the interest rate by 2 per cent, but now the IMF is reportedly pressuring Islamabad to raise it again by 2 per cent. The MPC is scheduled to meet on April 4 to review the interest rate as per the IMF’s demand.

    According to The News, the SBP has reportedly agreed to raise the interest rate by 2 per cent in accordance with the Fund’s demands. On March 2, the SBP raised the monetary policy rate by 300 basis points to 20 per cent due to a deterioration in inflation outlook and expectations amid recent external and fiscal adjustments.

  • Will Shehbaz and Imran sit together for talks? PTI gives green signal

    Pakistan Tehreek-e-Insaf (PTI) senior leader Fawad Chaudhry has claimed that party chairman Imran Khan is open to negotiating with the incumbent government.

    He said that Prime Minister (PM) Shehbaz Sharif and Law Minister Azam Tarar had stressed on holding talks and PTI welcomes these developments.

    “I hope Shehbaz Sharif will invite PTI for talks on the elections schedule. However, we have one proviso: we will not discuss their corruption cases and those have to be out of talks,” said Chaudhry.

    Moreover, Pakistan Bar Council urged all the political parties to set aside their differences and talk in order to solve the disputes which have plunged the country into a constitutional crisis.

    The bar council said that “they are “ready to call/arrange All Parties Conference (APC) and invite all the central leadership of parliamentary parties to reconcile their disputes through dialogue and to hold free, fair and transparent elections to all Assemblies on a mutually agress timeframe.”

    The bar council stressed that the reconciliation process should be held “for the sake of the country as it cannot afford to further linger on prevailing tensions.”

    Last month, in the wake of rising terrorist attacks, PM Shehbaz Sharif called for all parties conference and invited PTI chief Imran Khan as well. However, at the time Khan refused to take part in it.

  • Donald Blome assures Pakistan of US cooperation on IMF deal

    The US Ambassador to Pakistan, Donald Blome, expressed hope for a deal between Pakistan and the International Monetary Fund (IMF), stating that Washington was prepared to support the country’s efforts to resume its stalled $6.5 billion bailout program.

    Speaking at an event on Tuesday, Blome assured journalists that the IMF bailout package for Islamabad would take its final shape in a couple of days. He added that the United States was ready to cooperate with Pakistan to help address the issue and expressed a willingness to help Islamabad with its ongoing terrorism challenges.

    Blome recently visited important cities in Pakistan to meet with groups from different walks of life and noted that there had been significant progress in diplomatic relations between the two countries.

    Pakistan and the IMF have been in discussions regarding a stalled bailout package since late last year, with the country seeking a $1.1bn tranche to address its worsening balance of payments crisis and to enable friendly affluent capitals to provide assistance to overcome ongoing financial complexities.

    Both sides are engaged in negotiations to reach a mutually agreeable package that would help the cash-strapped nation come out of its ongoing economic turmoil.

    Interestingly, Finance Minister Ishaq Dar had previously stated that Pakistan would strike a staff-level agreement (SLA) with the IMF in a few days, as the government remained committed to completing the loan program signed in 2019.

    However, after failing to convince the lender, Dar had reportedly contacted the US envoy earlier this week to get “lenient treatment” from the Fund, which has been persistent with its demands.

  • Another IMF condition met as Pakistan imposes 25% sales tax on luxury items

    On Tuesday, the federal cabinet led by Prime Minister Shehbaz Sharif approved the imposition of a 25 per cent sales tax on luxury items, fulfilling a condition set by the International Monetary Fund (IMF) for the revival of the $7 billion Extended Fund Facility (EFF) that had been stalled for months.

    The cabinet approved the 25 per cent general sales tax (GST) on luxury items through a circulation summary. The Federal Board of Revenue will issue a formal notification in the coming days, and the new rate will be applicable from March 1.

    The list of items subject to the 25 per cent GST includes aerated water and juices, imported cars, mobile phones, pet food, sanitary and bathroom wares, carpets (excluding Afghanistan), chandeliers and lighting devices or equipment, chocolates, cigarettes, confectionery items, corn flakes, cosmetics, shaving items, tissue papers, crockery, decorative devices, doors and window frames, fish, footwear, fruits and dry fruits, furniture, home appliances (CBU), luxury leather jackets and apparel, mattress and sleeping bags, frozen or processed meat, musical instruments, arms and ammunition, shampoos, sunglasses, tomato ketchup and sauces, and travel bags and suitcases.

    The federal government also imposed a 25 per cent GST rate on locally manufactured luxury vehicles of 1,400cc and above. The FBR has estimated that it will collect an additional Rs15 billion in taxes through the enhanced GST rate of 25 per cent in the four-month period.

    According to sources, Pakistan and IMF held virtual negotiations on Monday to revive the loan program that had been stalled for months. During the meeting, the lender expressed satisfaction with the country’s measures, while Pakistan insisted on early finalization of the staff-level agreement.

    The negotiations were moving positively as the Fund did not place any new demands during the virtual session. The State Bank of Pakistan (SBP) informed IMF representatives about the estimated collection of foreign exchange reserves of $10 billion until June, and sources claimed that Pakistan had achieved future targets before the staff-level agreement.

    It is worth mentioning that the government has expedited the implementation of IMF demands to unlock the loan tranche for the country’s economic recovery.

  • Govt successful in negotiating with TLP, maintain secrecy over details

    Govt successful in negotiating with TLP, maintain secrecy over details

    Officials from the Pakistan Tehreek-e-Insaf (PTI) government on Sunday claimed that they had reached an ‘agreement’ with the proscribed Tehreek-i-Labbaik Pakistan (TLP) in order to end the nearly two-week-long protests.

    The government’s negotiating team members Foreign Minister Shah Mahmood Qureshi, National Assembly Speaker Asad Qaiser, and Minister of State for Parliamentary Affairs Ali Mohammad Khan, along with Mufti Muneeb-ur-Rehman were present at the press conference.

    “The government of Pakistan and the TLP held detailed negotiations in an environment of mutual trust and an agreement has been reached between the two sides,” said Mufti Muneeb.

    The details of the negotiations have yet not been made public, Mufti Muneeb said its details would be made public at an ‘appropriate time’. He, however, said its ‘positive results’ would be visible to the nation next week or during the next 10 days.