Connect with us

Business

IMF’s review mission expected to visit Pakistan after Feb 8 polls

Published

on

  • Mission is set to visit Pakistan for talks about $3bn SBA.
  • IMF hinted that 2nd review date revised during SBA signing.
  • 2nd review for end of Dec 2023 was planned for March 1, 2024.

ISLAMABAD: A review mission of the International Monetary Fund (IMF) is likely to be dispatched to conduct talks with Islamabad after Pakistan’s much anticipated general elections, scheduled to be held on February 8.

The review mission is set to visit Pakistan for talks regarding the $3 billion Standby Arrangement (SBA) programme, The News reported.

According to a confirmation received by The News from top official sources, the “Fund has not yet confirmed the exact schedule for conducting the second review, so the upcoming review talks are expected to be held after the general elections”.

In its latest staff report, the IMF also hinted that the date of the second review was revised at the time of the signing of the SBA agreement in July 2023. The second review for the end of December 2023 was planned for March 1, 2024.

Now the Pakistani side proposed the review schedule for March 15, 2024, indicating that the review completion date was changed with the possibility that talks for a second review might be held after the February 8, 2024 elections.

The existing SBA programme of the IMF is scheduled to be accomplished on April 12, 2024. In case the second review is completed till mid of March, then the Fund’s Executive Board would have sufficient time to approve the last tranche of $1.1 billion for Pakistan by the second of April 2024.

It is not known how the transition from the SBA to another medium-term programme would happen when there would be a political transition in Pakistan.

Earlier, there were reports that the mainstream political parties had asked to accomplish the second review during the tenure of the caretaker setup. There are still chances that the Fund review might be done before the formation of the new government.

Many insiders believe that after the general elections, the formation of the new government was expected to be accomplished by the end of February, so the IMF review mission might visit Islamabad before the formation of the new government and complete the second review.

In April 2024, the IMF will again be visiting Pakistan to strike a broader agreement on the fresh medium-term loan programme based on which the next budget for 2024-25 will be formulated. It will be up to the next government whether it will be able to sign the fresh IMF programme before the announcement of the budget or it might be done till the approval of the budget from the upcoming elected parliament.

Business

ECC Convenes in Islamabad: Forum Sanctions Spa Agreement Between PSO and SOCAR Azerbaijan

Published

on

By

Pakistan State Oil and SOCAR Azerbaijan have signed a sale purchase agreement for the delivery of petroleum products, which has been approved by the Cabinet’s Economic Coordination Committee.

The Finance Minister Muhammad Aurangzeb chaired the ECC meeting in Islamabad, where the permission to this effect was granted.

The Ministry of Energy’s Circular Debt Management Plan for FY 2024–2025 was also authorized by the conference. Its goals are to improve financial sustainability and lower liabilities in the power industry.

The committee examined the situation with the increase in prices for chicken and pulses. In order to offer the general public with relief as soon as possible, it expressed worry about the situation and requested that the National Price Monitoring Committee keep an eye on it in cooperation with the Ministry of National Food Security and Research and the Provincial Administration.

Continue Reading

Business

Pakistan has reduced its policy rate to an all-time high.

Published

on

By

There has been a significant decrease in the policy interest rate that Pakistan has implemented. The country’s central bank made the announcement on Monday that it will be lowering interest rates by 250 basis points, bringing them down to 15 percent. This was a record-breaking reduction in Pakistan’s policy rate, which was done with the intention of bolstering the economy, which had been struggling.

Following a significant decrease in Pakistan’s inflation rate, the central bank made this move. It was anticipated in a poll conducted by Reuters that policy rates would be reduced by 200 basis points. There was a forty percent increase in the country’s inflation rate in May 2023, however it has since decreased to seven point two percent in October. The Ministry of Finance anticipates that inflation will continue to decline, reaching a level of between 5.5 and 6.5 percent in the month of November.

Earlier, Pakistan had reduced the policy rate by 700 basis points over the course of four separate measures beginning in June of last year. The economy of Pakistan has been in a precarious situation for a considerable amount of time. The majority of economists are of the opinion that falling interest rates is essential in order to stimulate economic expansion.

By stating that the existing monetary policy will assist stabilize commodity prices and keep inflation between 5 and 7 percent, the State Bank of Pakistan expressed its support for a reduction in interest rates. In addition to contributing to the preservation of macroeconomic stability, it will also contribute to the achievement of economic growth on a sustainable basis.

Jameel Ahmad, the Governor of the Central Bank, informed analysts at a briefing that Pakistan’s bilateral partner countries have promised the International Monetary Fund (IMF) of continuing support for the duration of their current financial recovery program. This announcement was made in conjunction with the announcement of the policy rate decline.

Continue Reading

Business

The stock market rises to all-time highs and crosses the 92,000-point mark.

Published

on

By

The primary index hit the crucial 92,000-point benchmark as the stock market soared to new all-time highs.

A significant increase was made by the hundred-index, which closed at 92,351 points after rising 414 points.

According to analysts, this increase is the result of a resurgence of investor confidence, which has been supported by strong mood in international markets and solid economic indications.

With predictions for more increase as market stability improves, the most recent surge highlights a robust recovery trend.

The market fell from previous record highs due to selling pressure, causing the Pakistan Stock Exchange to see a steep dip earlier today.

The benchmark 100-index ended the trading session down after originally rising 572 points to an all-time high of 92,514 points.

The market finished the day at 91,660 points, down 278 points, unable to hold the 92,000-point threshold after hitting spectacular highs.

Analysts point to investor profit-taking as a contributing factor in the decline, indicating a cautious attitude in the market following recent advances. The market is becoming more volatile, and investors are paying close attention to patterns.

Continue Reading

Trending