Business

Pakistan inches closer to IMF deal as UAE ‘confirms’ $1bn support

Published

1 year ago

Farwa

SBP is now engaged in needful documentation, Dar says.
Last week, IMF indicated it has received assurance from Riyadh.
IMF is securing confirmation from international partners.

Finance Minister Ishaq Dar on Friday announced that the United Arab Emirates (UAE) authorities have informed the International Monetary Fund (IMF) about their plans of providing $1bn support to Pakistan.

The move will pave way for Pakistan to unlock the critical $1.1 billion loan tranche from the IMF as the Fund was securing confirmation from international partners to meet the financing gap requirements of Pakistan.

“UAE authorities have confirmed to IMF for their bilateral support of [$1] billion to Pakistan,” Dar announced on Twitter.

IMF program — 9th Review Update:

UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.

State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.

AlhamdoLilah!
— Ishaq Dar (@MIshaqDar50) April 14, 2023

The finance minister added that the State Bank of Pakistan (SBP) is now engaged in needful documentation for taking the said deposit from the UAE authorities.

Last week, the Washington-based Fund conveyed to Pakistan that it had received confirmation from Saudi Arabia on $2 billion in additional deposits.

“The IMF has indicated it has received the assurance from Riyadh”, State Minister for Finance Aisha Ghaus Pasha told reporters in Islamabad last week.

Saudi Arabia’s $2 billion and UAE’s $1 billion pledged in external financing support to Pakistan is one of the final conditions for an IMF deal that Islamabad needs to avert a default.

Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments.

‘Pakistan had not reached default level yet’

A day earlier, IMF Managing Director Kristalina Georgieva said that Pakistan had not reached the default level yet.

Georgieva, while addressing a news conference on the spring meeting of Breton Wood Institutions at the Washington-based Fund headquarters, said the Fund was securing confirmation from international partners to meet the financing gap requirements of Pakistan.

In response to a question regarding the looming default risk facing Pakistan, she said: “Pakistan had not yet reached that level and it would not but the country required a sustainable policy framework to avert such risks”.

She said the lender has been working very hard with the authorities in Pakistan within the context of the current programme to make sure the country has the policy framework in place to prevent reaching the point of unsustainable debt.

“My hope is that with the goodwill of everyone, and the implementation of what has been already agreed by the Pakistan authorities, we can complete our current programme successfully,” Georgieva maintained.

Business

Pakistan’s gold prices continue to decline.

Published

2 days ago

Farwa

The price of ten grams of 24 carat gold dropped by Rs 1,201 to Rs 205,418 from Rs 206,619, while the price of ten grams of 22 carat gold dropped to Rs 188,300 from Rs 189,400, according to the All Sindh Sarafa Jewellers Association.

Silver, priced at Rs. 2,620 per tola and Rs. 2,254.80 per ten grams, stayed at that level. As reported by the organization, the price of gold dropped by $11 on the global market, to $2,297 from $2,308.

Business

Price of LPG “slashed” by Rs. 20 per kilogram

Published

2 days ago

Farwa

Sources claim that LPG rates have been lowered by Rs 20, making the cost per kilogram drop from Rs 280 to Rs 260.

It is noteworthy to remark that the costs of LPG were reduced by Rs 20 per kilogram earlier, resulting in a total reduction of Rs 40 per kilogram within a few weeks.

The price of liquefied petroleum gas for the month of May 2024 was lowered by the Oil and Gas Regulatory Authority (OGRA) on April 30.

The LPG tariffs were lowered by Rs 11.88 to Rs 238.46 per kilogram in accordance with the OGRA’s notice. On Wednesday, May 1, 2024, the new rates will go into effect.

In April of last year, the price per kilogram of LPG was Rs 250.34. pricing reduction of Rs 140.18 has resulted in a new pricing for home LPG cylinders set for May 2024 of Rs 2813.85.

The OGRA reported a drop in liquefied petroleum gas pricing in April. The price of LPG is now Rs 250.34 per kg instead of Rs 256.78 due to a reduction of Rs 6.44 per kg.

The price of the household cylinder was fixed at Rs 2954.03 for the month of April, down from Rs 3030.12, a decrease of Rs 76.9.

Business

ADB delegation stops by FBR headquarters

Published

2 days ago

Farwa

Senior Director ADB Tariq Niazi oversaw the expedition, which also involved Sana Masood, Farzana Noshab, and Senior Public Sector Management Specialist Laisiasa Tora. The meeting included presentations from economists as well, according to an FBR press release.

The officers focused on structural and policy adjustments as they discussed the Domestic Resource Mobilization Program’s implementation at the meeting.

$300 million was given to the Pakistani government by ADB in December 2023 as a result of the hard work and dedication of FBR. Better laws, regulations, and institutional capability for the FBR were established by Sub-Program I.

With the $300 million in funding provided by the Asian Development Bank (ADB) to the Government of Pakistan in December 2023, the delegation conveyed satisfaction with the program’s effective launch.

The FBR also underlined how crucial digitization is to recording the economy and boosting productivity in a sustainable way.

In order to promote the Government of Pakistan’s Digital Tax Administration Project, both parties decided to look into measures to improve their cooperation.