India raised objections over the poor track record of Pakistan and on the possibility of it misusing debt financing funds for state-sponsored cross-border terrorism at the International Monetary Fund (IMF) meeting on Friday on the bailout package for Islamabad, while questioning the efficacy of IMF programmes in the case of Pakistan. Raising its objections, India abstained from voting to mark its dissent.
The IMF reviewed the Extended Fund Facility (EFF) lending programme ($1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending programme ($1.3 billion) for Pakistan, where India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values.
As an active and responsible member country, India raised concerns over the efficacy of IMF programmes in the case of a bailout package for Pakistan, given its poor track record.
Also Read |&nbsp;<a href="https://www.wionews.com/pakistan/where-is-jaish-e-mohammed-chief-masood-azhar-is-he-hiding-in-an-isi-safehouse-9052122" rel="noopener" target="_blank">Where is Jaish-e-Mohammed chief Masood Azhar? Is he hiding in an ISI safehouse?</a> India pointed out that Pakistan has been a borrower from the IMF since 1989, with a very poor track record of implementation and of adherence to its programme conditions. It added that Pakistan would not have approached the IMF for yet another bailout if it had implemented the previous programmes properly. Besides, the extensive role of the Pakistani military in economic affairs also raises serious questions, as the army continues to play an outsized role in politics and the economy even when a civilian government is in power.&nbsp;
Also Read |&nbsp;<a href="https://www.wionews.com/india-news/pakistan-fired-300-400-drones-last-night-to-target-indias-military-installation-govt-9052477" target="_blank" rel="noopener">Pakistan fired 300-400 drones last night to target India&rsquo;s military installation: Govt</a> &ldquo;In fact, a 2021 UN report described military-linked businesses as the &lsquo;largest conglomerate in Pakistan&rsquo;. The situation has not changed for the better; rather the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan,&rdquo; New Delhi said in a statement.&nbsp; India also flagged the Pakistan chapter of the IMF Report on Evaluation of Prolonged Use of IMF Resources, which noted that there was a widespread perception that political considerations play an important role in the IMF lending to Pakistan.&nbsp;
Also Read |&nbsp;<a href="https://www.wionews.com/india-news/indo-pak-war-indian-envoy-to-us-schools-cnn-anchor-over-remarks-on-jammu-and-kashmir-operation-sindoor-9051643" rel="noopener" target="_blank">Indo-Pak war: Indian envoy to US schools CNN anchor over remarks on Jammu and Kashmir</a> Moreover, Pakistan&rsquo;s debt burden is very high as a result of repeated bailouts, making it a too-big-to-fail debtor for the IMF. There is a serious gap highlighting the urgent need to ensure that moral values are given appropriate consideration in the procedures followed by global financial institutions, India added.
<h2>Decision-making and voting procedure at IMF</h2>
The IMF Executive Board consists of 25 directors who represent member countries or groups of countries. It handles daily operational matters, including loan approvals. Unlike in the United Nations, where each country has one vote, IMF voting power reflects the economic size of each member. For instance, a big economy like the United States holds a disproportionately high voting share. To simplify things, the IMF typically makes decisions by consensus. &nbsp; In cases where a vote is required, the system does not allow a formal &lsquo;no&rsquo; vote. Directors can either vote in favour or abstain. There is no provision to vote against a loan or proposal, hence India abstained after registering protest.
<h2>IMF approves USD 1 billion loan for Pakistan</h2>
After the voting, the IMF approved the immediate disbursement of about USD 1 billion to Pakistan under the ongoing Extended Fund Faci&shy;li&shy;ty, saying its economic situation has improved, as per a statement from the Pakistion PMO.
Pakistan had secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
 
&nbsp;

World | Business & Economy | India News : India pointed out that Pakistan has been a borrower from the IMF since 1989, with a very poor track record of implementation and of adherence to its programme conditions.

India raised objections over the poor track record of Pakistan and on the possibility of it misusing debt financing funds for state-sponsored cross-border terrorism at the International Monetary Fund (IMF) meeting on Friday on the bailout package for Islamabad, while questioning the efficacy of IMF programmes in the case of Pakistan. Raising its objections, India abstained from voting to mark its dissent. The IMF reviewed the Extended Fund Facility (EFF) lending programme ($1 billion) and also considered a fresh Resilience and Sustainability Facility (RSF) lending programme ($1.3 billion) for Pakistan, where India pointed out that rewarding continued sponsorship of cross-border terrorism sends a dangerous message to the global community, exposes funding agencies and donors to reputational risks, and makes a mockery of global values. As an active and responsible member country, India raised concerns over the efficacy of IMF programmes in the case of a bailout package for Pakistan, given its poor track record. Also Read | Where is Jaish-e-Mohammed chief Masood Azhar? Is he hiding in an ISI safehouse? India pointed out that Pakistan has been a borrower from the IMF since 1989, with a very poor track record of implementation and of adherence to its programme conditions. It added that Pakistan would not have approached the IMF for yet another bailout if it had implemented the previous programmes properly. Besides, the extensive role of the Pakistani military in economic affairs also raises serious questions, as the army continues to play an outsized role in politics and the economy even when a civilian government is in power. Also Read | Pakistan fired 300-400 drones last night to target India’s military installation: Govt “In fact, a 2021 UN report described military-linked businesses as the ‘largest conglomerate in Pakistan’. The situation has not changed for the better; rather the Pakistan Army now plays a leading role in the Special Investment Facilitation Council of Pakistan,” New Delhi said in a statement. India also flagged the Pakistan chapter of the IMF Report on Evaluation of Prolonged Use of IMF Resources, which noted that there was a widespread perception that political considerations play an important role in the IMF lending to Pakistan. Also Read | Indo-Pak war: Indian envoy to US schools CNN anchor over remarks on Jammu and Kashmir Moreover, Pakistan’s debt burden is very high as a result of repeated bailouts, making it a too-big-to-fail debtor for the IMF. There is a serious gap highlighting the urgent need to ensure that moral values are given appropriate consideration in the procedures followed by global financial institutions, India added. Decision-making and voting procedure at IMF The IMF Executive Board consists of 25 directors who represent member countries or groups of countries. It handles daily operational matters, including loan approvals. Unlike in the United Nations, where each country has one vote, IMF voting power reflects the economic size of each member. For instance, a big economy like the United States holds a disproportionately high voting share. To simplify things, the IMF typically makes decisions by consensus. In cases where a vote is required, the system does not allow a formal ‘no’ vote. Directors can either vote in favour or abstain. There is no provision to vote against a loan or proposal, hence India abstained after registering protest. IMF approves USD 1 billion loan for Pakistan After the voting, the IMF approved the immediate disbursement of about USD 1 billion to Pakistan under the ongoing Extended Fund Facility, saying its economic situation has improved, as per a statement from the Pakistion PMO. Pakistan had secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.

India abstains from voting on IMF’s bailout package for Pak, cites its ‘poor track record’

Bangladesh has sought a multibillion-dollar loan from the International Monetary Fund (IMF) after rising food and fuel prices severely impacted its forex reserves.

Notably, it is the third South Asian country to approach IMF seeking a financial rescue package after Sri Lanka and Pakistan.

According to the Daily Star newspaper, the country wanted $4.5bn from the IMF, including budgetary and balance-of-payment support.

“The IMF stands ready to support Bangladesh, and the staff will engage with the authorities on programme design as per the established policies and procedures of the fund,” The Guardian quoted an IMF spokesperson.

“The amount of support will be part of the programme design discussions,” the spokesperson added, without mentioning the potential size of the package.

This comes at a time when the Russia-Ukraine conflict has caused a massive spike in energy and food prices, sending Bangladesh’s balance of payments into deficit.

Since the onset of the pandemic, around 90 countries have approached the IMF, however, only a select few have been forced to seek bailouts to avoid defaulting on loans or being unable to pay bills.

But Bangladesh’s economy has performed better than other South Asian countries partly thanks to its robust export sector, especially the garment trade which brings in valuable foreign currency into the country.

Bangladesh’s finance minister AHM Mustafa Kamal has denied that the country’s facing any economic woes saying that the government would take an IMF loan only if conditions were favourable.

“If the IMF conditions are in favour of the country and compatible with our development policy, we’ll go for it, otherwise not,” Kamal told reporters.

“Seeking a loan from the IMF does not mean Bangladesh’s economy is in bad shape.”

Bangladesh’s foreign exchange reserves fell to $39.7bn in July down from $45.5bn a year earlier. It would cover over five months worth of imports.

(With inputs from agencies)

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Bangladesh has sought a multibillion-dollar loan from the International Monetary Fund (IMF) after rising food and fuel prices severely impacted its forex reserves.

Bangladesh has sought a multibillion-dollar loan from the International Monetary Fund (IMF) after rising food and fuel prices severely impacted its forex reserves. Notably, it is the third South Asian country to approach IMF seeking a financial rescue package after Sri Lanka and Pakistan. According to the Daily Star newspaper, the country wanted $4.5bn from the IMF, including budgetary and balance-of-payment support. “The IMF stands ready to support Bangladesh, and the staff will engage with the authorities on programme design as per the established policies and procedures of the fund,” The Guardian quoted an IMF spokesperson. “The amount of support will be part of the programme design discussions,” the spokesperson added, without mentioning the potential size of the package. This comes at a time when the Russia-Ukraine conflict has caused a massive spike in energy and food prices, sending Bangladesh’s balance of payments into deficit. Since the onset of the pandemic, around 90 countries have approached the IMF, however, only a select few have been forced to seek bailouts to avoid defaulting on loans or being unable to pay bills. But Bangladesh’s economy has performed better than other South Asian countries partly thanks to its robust export sector, especially the garment trade which brings in valuable foreign currency into the country. Bangladesh’s finance minister AHM Mustafa Kamal has denied that the country’s facing any economic woes saying that the government would take an IMF loan only if conditions were favourable. “If the IMF conditions are in favour of the country and compatible with our development policy, we’ll go for it, otherwise not,” Kamal told reporters. “Seeking a loan from the IMF does not mean Bangladesh’s economy is in bad shape.” Bangladesh’s foreign exchange reserves fell to $39.7bn in July down from $45.5bn a year earlier. It would cover over five months worth of imports. (With inputs from agencies) WATCH WION LIVE HERE

Bangladesh seeks bailout package from IMF as huge import bill takes toll on economy

UK Finance Minister Rishi Sunak on Thursday unveiled his government’s £15 billion (US $18.85 billion) cost-of-living bailout package to help millions of people struggling with the worst cost-of-living crisis&nbsp;in decades.

The announcement comes in the wake of soaring energy costs, which rose by more than 40 per cent&nbsp;following the Russia-Ukraine war.

Apart from the energy crisis, UK is also battling one of its highest inflation in 40 years that has severely dented the pockets of average consumers in the country, with average earnings seeing a drop by 1.9 per cent from a year earlier, the biggest decline since 2013.

With the shadow of Susan Grey's report&nbsp;on lockdown parties hanging over Boris Johnson’s government’s head, Sunak addressed the House of Commons,&nbsp;by talking about the inflation scenario, saying that the government cannot “solve every problem”.

But Sunak said he would not allow people to be “set so far back they might never recover” - boasting that cost-of-living support now totals £37billion this year.

He cautioned that inflation was becoming entrenched, saying: “Over the course of the year the situation has evolved and got more serious,” Daily Mail reported.

Among the slew of announcements include:

1) One-off payments of different amounts will be given to the most vulnerable - the elderly, those with disabilities, and those with the lowest incomes

2) All households will receive a £400 discount on energy bills

3) Eight million of the lowest income families will also get a one-off payment of £650, Sunak says

4) He confirms a temporary windfall tax on oil and gas giants to fund the payments - a move called for by Labour

Watch |&nbsp;UK: Rishi Sunak to unveil cost of living support package

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/uk-rishi-sunak-to-unveil-cost-of-living-support-package-482304/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

5) There will be a one-off disability cost of living payment of £150, and pensioners will get £300

6) The UK government has also introduced a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies.

7) Sunak unveiled the new 25% tax on the profits of energy producers such as BP and Shell on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said.

8) He said, “The oil and gas sector is making extraordinary profits, not as the result of recent changes, risk-taking or innovation or efficiency, but as the result of surging global commodity prices."

(With inputs from agencies)

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You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

UK Finance Minister Rishi Sunak on Thursday unveiled his government’s £15 billion (US $18.85 billion) cost-of-living bailout package to help millions of people struggling with the worst cost-of-living crisis in decades.

UK Finance Minister Rishi Sunak on Thursday unveiled his government’s £15 billion (US $18.85 billion) cost-of-living bailout package to help millions of people struggling with the worst cost-of-living crisis in decades. The announcement comes in the wake of soaring energy costs, which rose by more than 40 per cent following the Russia-Ukraine war. Apart from the energy crisis, UK is also battling one of its highest inflation in 40 years that has severely dented the pockets of average consumers in the country, with average earnings seeing a drop by 1.9 per cent from a year earlier, the biggest decline since 2013. With the shadow of Susan Grey's report on lockdown parties hanging over Boris Johnson’s government’s head, Sunak addressed the House of Commons, by talking about the inflation scenario, saying that the government cannot “solve every problem”. But Sunak said he would not allow people to be “set so far back they might never recover” - boasting that cost-of-living support now totals £37billion this year. He cautioned that inflation was becoming entrenched, saying: “Over the course of the year the situation has evolved and got more serious,” Daily Mail reported. Among the slew of announcements include: 1) One-off payments of different amounts will be given to the most vulnerable - the elderly, those with disabilities, and those with the lowest incomes 2) All households will receive a £400 discount on energy bills 3) Eight million of the lowest income families will also get a one-off payment of £650, Sunak says 4) He confirms a temporary windfall tax on oil and gas giants to fund the payments - a move called for by Labour Watch | UK: Rishi Sunak to unveil cost of living support package 5) There will be a one-off disability cost of living payment of £150, and pensioners will get £300 6) The UK government has also introduced a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies. 7) Sunak unveiled the new 25% tax on the profits of energy producers such as BP and Shell on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said. 8) He said, “The oil and gas sector is making extraordinary profits, not as the result of recent changes, risk-taking or innovation or efficiency, but as the result of surging global commodity prices." (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK Finance Minister Rishi Sunak unveils $18 billion cost-of-living bailout package

China&nbsp;has expressed apprehension over Sri Lanka seeking a bailout package from International Monetary Fund (IMF), saying that such a move would impact ongoing credit talks with Beijing.

“Sri Lanka going to IMF with a short notice has unavoidably impacted the discussion,” China’s envoy to Sri Lanka Qi Zhenhong told reporters in Colombo on Monday, according to Bloomberg.

Qi also said that China was unhappy when Sri Lanka suspended its debt servicing for the first time in its history, adding that discussion with the multilateral lender will affect future bilateral loans.

“We can’t comment now on a possible loan to Sri Lanka,” Qi added.

The comments came a day after the Sri Lankan ministers held negotiations with the IMF in Washington, DC.

According to the statement released by the IMF, the Sri Lankan government will be given an interim amount anywhere between $300 million to $600 million which will be spent on purchasing medicines and other essential items.

The global financial institution further said that Sri Lanka will receive a hefty amount from the World Bank over the next four months.

The cash-strapped country needs at least US $4 billion to tide over its mounting economic woes.

On Saturday, India agreed to extend an additional US $500 million credit line to help Sri Lanka import fuel. India has already agreed to defer USD 1.5 billion in import payments that Colombo needs to make to the Asian Clearing Union.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lankan-lawmaker-calls-on-chinas-xi-jinping-to-stop-its-economic-invasion-442386">Sri Lankan lawmaker calls on China’s Xi Jinping to stop its ‘economic invasion’</a>

On Friday, New Delhi has also extended the tenure of a US $400 million swap given in January this year, the Indian High Commission said.

Also read |<a href="https://www.wionews.com/india-news/india-urges-imf-to-provide-urgent-bailout-to-sri-lanka-472066">&nbsp;</a><a href="https://www.wionews.com/india-news/india-urges-imf-to-provide-urgent-bailout-to-sri-lanka-472066">India urges IMF to provide urgent bailout to Sri Lanka</a>

On Saturday, Sri Lankan President Gotabaya Rajapaksa said the crisis-hit country welcomed investments, technology transfers and financing for its sustainability efforts and cooperation for debt restructuring to support the economic recovery during this critical time.

Watch |&nbsp;Sri Lanka Economic crisis: Sri Lankan delegation meets with IMF officials in Washington, DC

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/sri-lanka-economic-crisis-sri-lankan-delegation-meets-with-imf-officials-in-washington-dc-473378/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

(With inputs from agencies)

China has expressed apprehension over Sri Lanka seeking a bailout package from International Monetary Fund (IMF), saying that such a move would impact ongoing credit talks with Beijing.

China has expressed apprehension over Sri Lanka seeking a bailout package from International Monetary Fund (IMF), saying that such a move would impact ongoing credit talks with Beijing. “Sri Lanka going to IMF with a short notice has unavoidably impacted the discussion,” China’s envoy to Sri Lanka Qi Zhenhong told reporters in Colombo on Monday, according to Bloomberg. Qi also said that China was unhappy when Sri Lanka suspended its debt servicing for the first time in its history, adding that discussion with the multilateral lender will affect future bilateral loans. “We can’t comment now on a possible loan to Sri Lanka,” Qi added. The comments came a day after the Sri Lankan ministers held negotiations with the IMF in Washington, DC. According to the statement released by the IMF, the Sri Lankan government will be given an interim amount anywhere between $300 million to $600 million which will be spent on purchasing medicines and other essential items. The global financial institution further said that Sri Lanka will receive a hefty amount from the World Bank over the next four months. The cash-strapped country needs at least US $4 billion to tide over its mounting economic woes. On Saturday, India agreed to extend an additional US $500 million credit line to help Sri Lanka import fuel. India has already agreed to defer USD 1.5 billion in import payments that Colombo needs to make to the Asian Clearing Union. Also read | Sri Lankan lawmaker calls on China’s Xi Jinping to stop its ‘economic invasion’ On Friday, New Delhi has also extended the tenure of a US $400 million swap given in January this year, the Indian High Commission said. Also read | India urges IMF to provide urgent bailout to Sri Lanka On Saturday, Sri Lankan President Gotabaya Rajapaksa said the crisis-hit country welcomed investments, technology transfers and financing for its sustainability efforts and cooperation for debt restructuring to support the economic recovery during this critical time. Watch | Sri Lanka Economic crisis: Sri Lankan delegation meets with IMF officials in Washington, DC (With inputs from agencies)

China ‘unhappy’ with Sri Lanka for seeking bailout from IMF

Cash-strapped Pakistan and the International Monetary Fund have now agreed in principle to extend a stalled bailout program that will now increase an existing loan size from six billion dollars to eight billion dollars. WION's Anas Mallick brings in more on this.

IMF agrees to extend stalled bailout package for cash-strapped Pakistan

The IMF has postponed the second review of its $6 billion bailout package for cash-strapped Pakistan scheduled on Friday, citing a delay by the country in implementing the agreed actions, a media report said on Tuesday.

The International Monetary Fund Executive Board approved a three-year, $6 billion loan package for Pakistan in July last year to rein in mounting debts and stave off a looming balance of payments crisis, in exchange for tough austerity measures.

Pakistan approached the IMF in August 2018 for a bailout package after Prime Minister Imran Khan's government took over.

Despite loans from China, Saudi Arabia and the UAE, Prime Minister Khan's government was forced to turn to the IMF due to mounting economic problems.

The IMF has confirmed the postponing of the second review of the bailout package but says its priority has now shifted to the approval of a rapid financing facility of USD 1.4 billion.

The Ministry of Finance told The Express Tribune that the IMF did not inform it about any delay in the approval of the second review of the 10-month-old loan programme.

In February, Pakistan and the IMF agreed that the fund's executive board would approve the second review for the release of a third loan tranche of USD 450 million on April 10, subject to fulfilling of all the conditions by the Pakistan government.

Sources said the IMF board would not take up Pakistan's request for approval of the second review for the October-December 2019 period under the Extended Fund Facility (EFF) on April 10.

The IMF has postponed the second review of its $6 billion bailout package for cash-strapped Pakistan scheduled on Friday, citing a delay by the country in implementing the agreed actions, a media report said on Tuesday.

The IMF has postponed the second review of its $6 billion bailout package for cash-strapped Pakistan scheduled on Friday, citing a delay by the country in implementing the agreed actions, a media report said on Tuesday. The International Monetary Fund Executive Board approved a three-year, $6 billion loan package for Pakistan in July last year to rein in mounting debts and stave off a looming balance of payments crisis, in exchange for tough austerity measures. Pakistan approached the IMF in August 2018 for a bailout package after Prime Minister Imran Khan's government took over. Despite loans from China, Saudi Arabia and the UAE, Prime Minister Khan's government was forced to turn to the IMF due to mounting economic problems. The IMF has confirmed the postponing of the second review of the bailout package but says its priority has now shifted to the approval of a rapid financing facility of USD 1.4 billion. The Ministry of Finance told The Express Tribune that the IMF did not inform it about any delay in the approval of the second review of the 10-month-old loan programme. In February, Pakistan and the IMF agreed that the fund's executive board would approve the second review for the release of a third loan tranche of USD 450 million on April 10, subject to fulfilling of all the conditions by the Pakistan government. Sources said the IMF board would not take up Pakistan's request for approval of the second review for the October-December 2019 period under the Extended Fund Facility (EFF) on April 10.

IMF postpones the second review of $6 billion bailout package for Pakistan

The International Monetary Fund (IMF) is scheduled to hold its meeting in Washington on July 3 to consider three-year 'extended fund facility' of $6 billion for Pakistan.

Sources familiar with the matter told Dunya News that Pakistan has adopted a tight monetary and fiscal policy stance based on all terms and conditions of the global moneylender in order to secure a three-year bailout package.

The <a href="https://www.wionews.com/south-asia/us-pushes-for-conditionality-in-imf-bailout-package-to-pakistan-228542">bailout package will help Pakistan</a> to pay its external debts, recover from its fiscal deficit, keep foreign exchange reserves to the equivalent of three months of imports and curb further devaluation of the rupee, sources added.

Prime Minister Imran Khan's government in its budget proposals for the next financial year has already added IMF loans worth Rs 357 billion.

An IMF team will visit Islamabad every three months to review the economic indicators of the country.

According to analysts, financial assistance received from 'friendly' countries has not proven to be enough for the Pakistani government to recover its cash-strapped economy.

They are of the view that chances of Pakistan securing the bailout package are high as the country has accepted all terms and conditions; however, the deal would have adverse effects on its economic growth.

US-based Fitch Solutions, the macro research arm of global credit rating agency Fitch Ratings, on Thursday revised the country's real GDP growth for the outgoing fiscal year from 4.4 per cent to 3.2 per cent, and the upcoming fiscal year 2019-20 to come in at 2.7 per cent, down from 4.0 per cent previously, Dawn reported.

Fitch said the tax-based measures to cut the deficit, coupled with constantly rising inflation, would further erode purchasing power and result in a marked decline in consumption.

"Given our expectations for continued upside pressure on consumer prices over the coming months, we believe that the consumers' purchasing power will continue to fall over the coming months, thereby weighing on consumption," it said.

However, it noted that some of the effects of price hikes would be partially offset by the "government's populist measures, such as providing electricity subsidies to consumers who use less than 300 units of electricity per month".

The research firm further gave a bleak forecast on the government's aims to raise tax revenues, compounded by little improvement in net exports weighed down by a global slowdown and the likelihood of imports further increase over the coming months.

"While Pakistan and the IMF have agreed on focusing on tax-based measures to manage the fiscal deficit, according to media reports, we believe that the Pakistani government will fall short of its ambitious revenue targets and will likely have to cut spending to meet the primary deficit target of 0.6 per cent of GDP," it added.

The International Monetary Fund (IMF) is scheduled to hold its meeting in Washington on July 3 to consider three-year 'extended fund facility' of $6 billion for Pakistan.

The International Monetary Fund (IMF) is scheduled to hold its meeting in Washington on July 3 to consider three-year 'extended fund facility' of $6 billion for Pakistan. Sources familiar with the matter told Dunya News that Pakistan has adopted a tight monetary and fiscal policy stance based on all terms and conditions of the global moneylender in order to secure a three-year bailout package. The bailout package will help Pakistan to pay its external debts, recover from its fiscal deficit, keep foreign exchange reserves to the equivalent of three months of imports and curb further devaluation of the rupee, sources added. Prime Minister Imran Khan's government in its budget proposals for the next financial year has already added IMF loans worth Rs 357 billion. An IMF team will visit Islamabad every three months to review the economic indicators of the country. According to analysts, financial assistance received from 'friendly' countries has not proven to be enough for the Pakistani government to recover its cash-strapped economy. They are of the view that chances of Pakistan securing the bailout package are high as the country has accepted all terms and conditions; however, the deal would have adverse effects on its economic growth. US-based Fitch Solutions, the macro research arm of global credit rating agency Fitch Ratings, on Thursday revised the country's real GDP growth for the outgoing fiscal year from 4.4 per cent to 3.2 per cent, and the upcoming fiscal year 2019-20 to come in at 2.7 per cent, down from 4.0 per cent previously, Dawn reported. Fitch said the tax-based measures to cut the deficit, coupled with constantly rising inflation, would further erode purchasing power and result in a marked decline in consumption. "Given our expectations for continued upside pressure on consumer prices over the coming months, we believe that the consumers' purchasing power will continue to fall over the coming months, thereby weighing on consumption," it said. However, it noted that some of the effects of price hikes would be partially offset by the "government's populist measures, such as providing electricity subsidies to consumers who use less than 300 units of electricity per month". The research firm further gave a bleak forecast on the government's aims to raise tax revenues, compounded by little improvement in net exports weighed down by a global slowdown and the likelihood of imports further increase over the coming months. "While Pakistan and the IMF have agreed on focusing on tax-based measures to manage the fiscal deficit, according to media reports, we believe that the Pakistani government will fall short of its ambitious revenue targets and will likely have to cut spending to meet the primary deficit target of 0.6 per cent of GDP," it added.

International Monetary Fund to consider three-year 'extended fund facility' of $6 billion for Pakistan

Amidst reports that the International Monetary Fund (IMF) has reached a multi-billion dollar bailout package with <a href="https://www.wionews.com/south-asia/cash-strapped-pakistan-inks-3-loan-deals-worth-918-million-with-world-bank-228323">cash-strapped Pakistan</a>, the United States is seeking "conditionality" in the new financial aid from the global lender.

Pakistan last month reached an agreement with the Washington-headquartered IMF&nbsp;for a $6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy as tries to overcome a ballooning balance-of-payments crisis.

The US has serious reservations over global lenders like the IMF providing a bailout to Pakistan to pay off Chinese debts.

"There is a discussion about the conditionality what we think would be appropriate for an IMF package to Pakistan," according to Senior State Department official (South and Central Asian Affairs) Alice G Wells.

Responding to questions from lawmakers during a Congressional hearing last week, she told House Foreign Affairs Subcommittee for Asia, the Pacific and Nonproliferation that while the US has not seen the IMF package yet, there has been an agreement reached between the IMF and government of Pakistan.

"But certainly, we have communicated our strong views and Secretary (Mike) Pompeo has also done so publicly on the need for any package to include a real structural reform to reinforce..." Wells said when Congressman Brad Sherman said it looks like that the IMF loan is going through.

"Does treasury just do what they want for checking off some economic boxes or since this is the single most important thing we do with regard to Pakistan do they listen to you?" he asked.

However, Wells ruled out any effort to block IMF loan to Pakistan until the release of Dr Shakeel Afridi, the Pakistan doctor who is currently in jail on the charges of helping CIA to find Osama bin Laden.

"We believe Dr Afridi is being held wrongly, inappropriately. With Congress's&nbsp;help, we have withheld $130 million in assistance to Pakistan already as a result of his incarceration," she said.

Sherman said that the US aid to Pakistan has dropped by nearly 95 per cent.

"Our aid to Pakistan less than a decade ago was $2 billion a year; we now have cut it to $70 million. If I did the math quickly I would just say that's a 95 per cent reduction roughly. Pakistan I think is very important to the security of the United States. There are those that argue that Pakistan is important because it's close to Afghanistan and I think it's just the&nbsp; 
reverse," he said.

While the US aid is $70 million, the IMF loan is $6 billion.

"I don't think that could have happened without the US and I hope that when Treasury is over there, the IMF isn't just checking the boxes for fiscal purposes but are in fact taking policy direction from the State Department," Sherman added.

China is investing heavily in Pakistan under the $60 billion China-Pakistan Economic Corridor (CPEC).

Launched in 2015, the CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea.

Secretary of State Mike Pompeo in the past warned that any potential IMF bailout for Pakistan should not provide funds to pay off Chinese lenders, saying "we will be watching what the IMF does... There is no rationale for IMF tax dollars and associated with that American dollar that are part of the IMF funding, for those to go to bail out Chinese bondholders or China itself".

Amidst reports that the International Monetary Fund (IMF) has reached a multi-billion dollar bailout package with cash-strapped Pakistan, the United States is seeking "conditionality" in the new financial aid from the global lender.

Amidst reports that the International Monetary Fund (IMF) has reached a multi-billion dollar bailout package with cash-strapped Pakistan, the United States is seeking "conditionality" in the new financial aid from the global lender. Pakistan last month reached an agreement with the Washington-headquartered IMF for a $6 billion bailout package aimed at shoring up its finances and strengthening a slowing economy as tries to overcome a ballooning balance-of-payments crisis. The US has serious reservations over global lenders like the IMF providing a bailout to Pakistan to pay off Chinese debts. "There is a discussion about the conditionality what we think would be appropriate for an IMF package to Pakistan," according to Senior State Department official (South and Central Asian Affairs) Alice G Wells. Responding to questions from lawmakers during a Congressional hearing last week, she told House Foreign Affairs Subcommittee for Asia, the Pacific and Nonproliferation that while the US has not seen the IMF package yet, there has been an agreement reached between the IMF and government of Pakistan. "But certainly, we have communicated our strong views and Secretary (Mike) Pompeo has also done so publicly on the need for any package to include a real structural reform to reinforce..." Wells said when Congressman Brad Sherman said it looks like that the IMF loan is going through. "Does treasury just do what they want for checking off some economic boxes or since this is the single most important thing we do with regard to Pakistan do they listen to you?" he asked. However, Wells ruled out any effort to block IMF loan to Pakistan until the release of Dr Shakeel Afridi, the Pakistan doctor who is currently in jail on the charges of helping CIA to find Osama bin Laden. "We believe Dr Afridi is being held wrongly, inappropriately. With Congress's help, we have withheld $130 million in assistance to Pakistan already as a result of his incarceration," she said. Sherman said that the US aid to Pakistan has dropped by nearly 95 per cent. "Our aid to Pakistan less than a decade ago was $2 billion a year; we now have cut it to $70 million. If I did the math quickly I would just say that's a 95 per cent reduction roughly. Pakistan I think is very important to the security of the United States. There are those that argue that Pakistan is important because it's close to Afghanistan and I think it's just the reverse," he said. While the US aid is $70 million, the IMF loan is $6 billion. "I don't think that could have happened without the US and I hope that when Treasury is over there, the IMF isn't just checking the boxes for fiscal purposes but are in fact taking policy direction from the State Department," Sherman added. China is investing heavily in Pakistan under the $60 billion China-Pakistan Economic Corridor (CPEC). Launched in 2015, the CPEC is a planned network of roads, railways and energy projects linking China's resource-rich Xinjiang Uyghur Autonomous Region with Pakistan's strategic Gwadar Port on the Arabian Sea. Secretary of State Mike Pompeo in the past warned that any potential IMF bailout for Pakistan should not provide funds to pay off Chinese lenders, saying "we will be watching what the IMF does... There is no rationale for IMF tax dollars and associated with that American dollar that are part of the IMF funding, for those to go to bail out Chinese bondholders or China itself".

US pushes for 'conditionality' in IMF bailout package to Pakistan

The International Monetary Fund is all set to give Pakistan a package of 6 billion US dollars for three years, government sources told WION.

The aid comes after the International Monetary Fund chief <a href="http://www.wionews.com/south-asia/i-reiterated-imfs-stand-to-support-pakistan-imf-chief-lagarde-on-bailout-aid-196452">Christine Lagarde </a>met Pakistan&nbsp;Prime Minister Imran Khan in Dubai on the sidelines of the<a href="http://www.wionews.com/business-economy/over-4000-delegates-from-140-countries-attends-world-government-summit-in-dubai-196624"> World Government Sumit </a>and assured him of IMF support.

This will be Pakistan's 13th IMF bailout.&nbsp;Pakistan has been a regular borrower from the IMF since the 1980s. The country has last received its IMF bailout of over six billion dollars in 2013 
 
Sources have also stated that though no hikes have been agreed upon, there will be an increase in gas and electricity tariff which would result in more trouble for Pakistan's already-neglected middle class.

Pakistan is also planning to devalue its currency.

Imran's khan government has claimed that this will be Pakistan's last IMF bailout plan. Khan had earlier claimed that he would rather commit suicide than go to the IMF for a bailout.

Pakistan is currently facing a Balance of Payment crisis and is looking to bridge a financial gap of at least 12 billion dollars.

The country has already received financial support from some of its allies.

The <a href="http://www.wionews.com/south-asia/pakistan-uae-sign-3-billion-bailout-package-192149">United Arab Emirates </a>has offered a three billion dollar aid to Islamabad. While <a href="http://www.wionews.com/south-asia/saudi-crown-prince-expected-to-seal-multi-billion-dollar-deals-in-pakistan-196969">Saudi Arabia</a> has promised six billion dollars and struck a 12-month deal for a cash lifeline with Islamabad.

Pakistan's all-weather-friend China too has come to the rescue of the Imran Khan government by financing infrastructure projects.

After coming to power Imran Khan launched a series of austerity measures to check the country's battered economy. This ranged from auctioning government-owned-luxury cars to reducing bureaucratic spending. 
&nbsp;

The International Monetary Fund is all set to give Pakistan a package of 6 billion US dollars for three years, government sources told WION. The aid comes after the International Monetary Fund chief Christine Lagarde met Pakistan Prime Minister Imran Khan in Dubai on the sidelines of the World Government Sumit and assured him of IMF support.

The International Monetary Fund is all set to give Pakistan a package of 6 billion US dollars for three years, government sources told WION. The aid comes after the International Monetary Fund chief Christine Lagarde met Pakistan Prime Minister Imran Khan in Dubai on the sidelines of the World Government Sumit and assured him of IMF support. This will be Pakistan's 13th IMF bailout. Pakistan has been a regular borrower from the IMF since the 1980s. The country has last received its IMF bailout of over six billion dollars in 2013 Sources have also stated that though no hikes have been agreed upon, there will be an increase in gas and electricity tariff which would result in more trouble for Pakistan's already-neglected middle class. Pakistan is also planning to devalue its currency. Imran's khan government has claimed that this will be Pakistan's last IMF bailout plan. Khan had earlier claimed that he would rather commit suicide than go to the IMF for a bailout. Pakistan is currently facing a Balance of Payment crisis and is looking to bridge a financial gap of at least 12 billion dollars. The country has already received financial support from some of its allies. The United Arab Emirates has offered a three billion dollar aid to Islamabad. While Saudi Arabia has promised six billion dollars and struck a 12-month deal for a cash lifeline with Islamabad. Pakistan's all-weather-friend China too has come to the rescue of the Imran Khan government by financing infrastructure projects. After coming to power Imran Khan launched a series of austerity measures to check the country's battered economy. This ranged from auctioning government-owned-luxury cars to reducing bureaucratic spending.

IMF likely to give 6 billion US dollar bailout package to Pakistan

The Central government is going to announce Rs 7,000 crore package which includes the creation of a buffer stock, fixing a minimum sale price for sugar and to ensure cash-starved mills clear dues to farmers at the earliest, sources said.&nbsp;

A decision in this regard is expected to be taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) scheduled tomorrow, the sources added.

Last month, the government had announced a Rs 1,500 crore production-linked subsidy for sugarcane farmers to help millers pay cane payments.

Sugar mills are unable to make payments to cane growers as their financial health has worsened due to a sharp fall in sugar prices after a record production of 31.6 million tonne (MT) so far in the 2017-18 season (October-September).

Maximum cane dues of more than Rs 12,000 crore are in Uttar Pradesh alone, the country's biggest sugarcane producing state.

According to sources, the government has worked out a slew of measures to ensure farmers' dues are cleared by mills.

India’s domestic sugar production at over 31.5 million tonnes in 2017-18 is the highest ever, and the resultant crash in wholesale prices meant mills were unable to pay farmers on time.&nbsp;

India, the second largest producer of sugar after Brazil is home to nearly 50 million cane farmers, mostly in UP, Maharashtra and Karnataka. Further, about 500,000 workers are directly employed by sugar mills.

Maximum cane dues of more than Rs 12,000 crore are in Uttar Pradesh alone, the country's biggest sugarcane producing state.

The Central government is going to announce Rs 7,000 crore package which includes the creation of a buffer stock, fixing a minimum sale price for sugar and to ensure cash-starved mills clear dues to farmers at the earliest, sources said. A decision in this regard is expected to be taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) scheduled tomorrow, the sources added. Last month, the government had announced a Rs 1,500 crore production-linked subsidy for sugarcane farmers to help millers pay cane payments. Sugar mills are unable to make payments to cane growers as their financial health has worsened due to a sharp fall in sugar prices after a record production of 31.6 million tonne (MT) so far in the 2017-18 season (October-September). Maximum cane dues of more than Rs 12,000 crore are in Uttar Pradesh alone, the country's biggest sugarcane producing state. According to sources, the government has worked out a slew of measures to ensure farmers' dues are cleared by mills. India’s domestic sugar production at over 31.5 million tonnes in 2017-18 is the highest ever, and the resultant crash in wholesale prices meant mills were unable to pay farmers on time. India, the second largest producer of sugar after Brazil is home to nearly 50 million cane farmers, mostly in UP, Maharashtra and Karnataka. Further, about 500,000 workers are directly employed by sugar mills.

Centre likely to announce bailout package of Rs 7,000 crore for sugarcane farmers

The International Monetary Fund (IMF) has announced it will release the last instalment of a $6.6 billion economic bailout package to Pakistan, as Prime Minister Nawaz Sharif hailed an end to the country&#39;s reliance on the lender. 
 
The decision to release the final tranche worth $102 million of the three-year programme came after a review of the country&#39;s economic performance that found it was meeting most reform indicators but still needed to broaden the tax net. 
 
IMF delegation head Harald Finger said growth was projected to reach five per cent supported by a construction boom linked to the China Pakistan Economic Corridor, an ambitious infrastructure upgrade project intended to link China&#39;s western Xinjiang region to Gwadar port on the Arabian Sea. 
 
&quot;All indicative targets and structural benchmarks (SB) were met, except for the delayed notification of multi-year tariffs for three power distribution companies,&quot; Finger said Thursday in Dubai, referring to measures intended to reduce major fluctuations in electricity costs. 
 
The release of the final tranche is subject to approval by the IMF&#39;s executive board though that is considered a formality.&nbsp; 
 
In Islamabad, Sharif told lawmakers from his party that his government had ended the country&#39;s reliance on foreign multilateral assistance and was saying &quot;goodbye&quot; to the Fund. 
 
&quot;With the grace of God, we will say goodbye to IMF after this (agreement),&quot; he said. 
 
Sharif had been under pressure from the opposition for seeking the loan in 2013 because its conditions included forcing the government to raise taxes and energy prices. 
 
The IMF note cautioned however that to consolidate and reinforce the gains achieved in the last three years, it was important to &quot;strengthen public finances and external buffers, broaden the tax net, (and) improve public financial management,&quot; among other measures. 
 
(AFP) 
&nbsp;

International Monetary Fund to release final instalment of $6.6 bn loan to Pakistan after satisfactory review of its economic performance

The International Monetary Fund (IMF) has announced it will release the last instalment of a $6.6 billion economic bailout package to Pakistan, as Prime Minister Nawaz Sharif hailed an end to the country's reliance on the lender. The decision to release the final tranche worth $102 million of the three-year programme came after a review of the country's economic performance that found it was meeting most reform indicators but still needed to broaden the tax net. IMF delegation head Harald Finger said growth was projected to reach five per cent supported by a construction boom linked to the China Pakistan Economic Corridor, an ambitious infrastructure upgrade project intended to link China's western Xinjiang region to Gwadar port on the Arabian Sea. "All indicative targets and structural benchmarks (SB) were met, except for the delayed notification of multi-year tariffs for three power distribution companies," Finger said Thursday in Dubai, referring to measures intended to reduce major fluctuations in electricity costs. The release of the final tranche is subject to approval by the IMF's executive board though that is considered a formality. In Islamabad, Sharif told lawmakers from his party that his government had ended the country's reliance on foreign multilateral assistance and was saying "goodbye" to the Fund. "With the grace of God, we will say goodbye to IMF after this (agreement)," he said. Sharif had been under pressure from the opposition for seeking the loan in 2013 because its conditions included forcing the government to raise taxes and energy prices. The IMF note cautioned however that to consolidate and reinforce the gains achieved in the last three years, it was important to "strengthen public finances and external buffers, broaden the tax net, (and) improve public financial management," among other measures. (AFP)

Pakistan ends reliance on foreign lending, says 'goodbye' to IMF

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