Even amid signals of the Sri Lankan economy gradually coming back on track on the back of the IMF loan and strong fiscal measures, there are signals of a large number of skilled professionals leaving the country for better career opportunities and better lives for themselves and their families. The number of IT professionals, doctors, and others registering to leave the country has nearly doubled over 2021. Youth cite uncertainty on the road ahead for the country.

Sri Lanka brain drain

Finance Minister Ishaq Dar announced on Tuesday that Saudi Arabia provided a boost of support to Pakistan's struggling economy. Saudi Arabia has provided $2 billion in financial assistance to Pakistan, which comes at a crucial time as the International Monetary Fund's board is expected to approve a much-needed $3 billion bailout.

Minister Dar disclosed that the funds have been successfully deposited into Pakistan's central bank, resulting in a bolstering of the country's foreign exchange reserves. This financial assistance from Saudi Arabia comes at a critical juncture when Pakistan's reserves were inadequate to cover a month's worth of restricted imports.

Saudi Arabia had committed to providing the funds back in April but waited until the assurance of an IMF rescue package, given Pakistan's ongoing debt and economic crises, before depositing the funds with the State Bank of Pakistan.

In the closing days of June, Pakistan, facing the imminent risk of a sovereign debt default, secured a crucial $3 billion IMF rescue package. However, the loan still awaits approval from the IMF board, which is scheduled to convene on Wednesday. The IMF will gradually distribute the remaining funds under the nine-month agreement, with Pakistan receiving an initial disbursement of approximately $1.1 billion.

The agreement with the IMF is expected to pave the way for additional financial support through bilateral and multilateral channels, in addition to the assistance provided by Saudi Arabia. Finance Minister Dar expressed his optimism, stating that Pakistan's foreign exchange reserves are anticipated to reach $15 billion by the end of this month.

Pakistan is grappling with economic issues.

Pakistan's economy, valued at $350 billion, is currently facing severe challenges, as it grapples with a staggering inflation rate of 38%. Over the past year, the government has implemented stringent measures to prevent default, as the country contends with a rapidly depreciating currency and a mounting external deficit.

During the current fiscal year, Pakistan's industrial sectors, which are vital for the country's economy, have witnessed a decline of around 3%. This decline has raised substantial concerns in a nation with a population of 230 million, where more than 2 million individuals enter the labor market each year. As a result, this setback in growth and employment opportunities has led to an increase in migration, posing a significant obstacle for Pakistan to overcome.

Reuters cited Hafeez Pasha, a renowned economist and former finance minister of Pakistan, who provided an estimate of the country's unemployment rate as "11–12 percent, conservatively." It is worth noting that official unemployment figures have not been released for over two years, leaving a gap in the current understanding of the employment situation in Pakistan.

Pakistan's fiscal deficit for fiscal year 2024 is expected to amount to 6.5% of the country's GDP. In preparation for the IMF meeting, Pakistan has revised its budget and implemented new measures aimed at reducing the deficit. However, specific figures regarding the extent of the deficit reduction were not provided by the finance minister.

Pakistan's improving credit rating

On Monday, Fitch Ratings upgraded Pakistan's long-term foreign currency issuer default rating from CCC- to CCC, providing a sense of relief to investors in the country's stocks and bonds. This improvement in the rating serves as a positive sign for Pakistan, which has been grappling with its most severe economic crisis.

Following Pakistan's agreement with the IMF, the country's bonds have experienced a significant surge in value. According to Tradeweb statistics, the sovereign dollar bonds witnessed a remarkable increase of up to 1.8 cents on Tuesday, following the disclosure of Saudi assistance. Shorter-dated bonds demonstrated the most substantial gains, with the 2024 issue rising to 77.75 cents on the dollar, marking an increase of over 30 cents from its late-June lows. This upward trend reflects growing investor confidence and optimism in Pakistan's financial outlook.

The recent upgrade in the country's rating reflects Pakistan's improved external liquidity and funding conditions, attributed to the staff level agreement reached with the International Monetary Fund (IMF). However, it also highlights the cautionary note that the budget deficit still remains significant. This development signifies a positive step for Pakistan's economic stability, while acknowledging the need for continued efforts to address the budget deficit.

Finance Minister Ishaq Dar announced on Tuesday that Saudi Arabia provided a boost of support to Pakistan's struggling economy. Saudi Arabia has provided $2 billion in financial assistance to Pakistan, which comes at a crucial time as the International Monetary Fund's board is expected to approve a much-needed $3 billion bailout.

Finance Minister Ishaq Dar announced on Tuesday that Saudi Arabia provided a boost of support to Pakistan's struggling economy. Saudi Arabia has provided $2 billion in financial assistance to Pakistan, which comes at a crucial time as the International Monetary Fund's board is expected to approve a much-needed $3 billion bailout. Minister Dar disclosed that the funds have been successfully deposited into Pakistan's central bank, resulting in a bolstering of the country's foreign exchange reserves. This financial assistance from Saudi Arabia comes at a critical juncture when Pakistan's reserves were inadequate to cover a month's worth of restricted imports. Saudi Arabia had committed to providing the funds back in April but waited until the assurance of an IMF rescue package, given Pakistan's ongoing debt and economic crises, before depositing the funds with the State Bank of Pakistan. In the closing days of June, Pakistan, facing the imminent risk of a sovereign debt default, secured a crucial $3 billion IMF rescue package. However, the loan still awaits approval from the IMF board, which is scheduled to convene on Wednesday. The IMF will gradually distribute the remaining funds under the nine-month agreement, with Pakistan receiving an initial disbursement of approximately $1.1 billion. The agreement with the IMF is expected to pave the way for additional financial support through bilateral and multilateral channels, in addition to the assistance provided by Saudi Arabia. Finance Minister Dar expressed his optimism, stating that Pakistan's foreign exchange reserves are anticipated to reach $15 billion by the end of this month. Pakistan is grappling with economic issues. Pakistan's economy, valued at $350 billion, is currently facing severe challenges, as it grapples with a staggering inflation rate of 38%. Over the past year, the government has implemented stringent measures to prevent default, as the country contends with a rapidly depreciating currency and a mounting external deficit. During the current fiscal year, Pakistan's industrial sectors, which are vital for the country's economy, have witnessed a decline of around 3%. This decline has raised substantial concerns in a nation with a population of 230 million, where more than 2 million individuals enter the labor market each year. As a result, this setback in growth and employment opportunities has led to an increase in migration, posing a significant obstacle for Pakistan to overcome. Reuters cited Hafeez Pasha, a renowned economist and former finance minister of Pakistan, who provided an estimate of the country's unemployment rate as "11–12 percent, conservatively." It is worth noting that official unemployment figures have not been released for over two years, leaving a gap in the current understanding of the employment situation in Pakistan. Pakistan's fiscal deficit for fiscal year 2024 is expected to amount to 6.5% of the country's GDP. In preparation for the IMF meeting, Pakistan has revised its budget and implemented new measures aimed at reducing the deficit. However, specific figures regarding the extent of the deficit reduction were not provided by the finance minister. Pakistan's improving credit rating On Monday, Fitch Ratings upgraded Pakistan's long-term foreign currency issuer default rating from CCC- to CCC, providing a sense of relief to investors in the country's stocks and bonds. This improvement in the rating serves as a positive sign for Pakistan, which has been grappling with its most severe economic crisis. Following Pakistan's agreement with the IMF, the country's bonds have experienced a significant surge in value. According to Tradeweb statistics, the sovereign dollar bonds witnessed a remarkable increase of up to 1.8 cents on Tuesday, following the disclosure of Saudi assistance. Shorter-dated bonds demonstrated the most substantial gains, with the 2024 issue rising to 77.75 cents on the dollar, marking an increase of over 30 cents from its late-June lows. This upward trend reflects growing investor confidence and optimism in Pakistan's financial outlook. The recent upgrade in the country's rating reflects Pakistan's improved external liquidity and funding conditions, attributed to the staff level agreement reached with the International Monetary Fund (IMF). However, it also highlights the cautionary note that the budget deficit still remains significant. This development signifies a positive step for Pakistan's economic stability, while acknowledging the need for continued efforts to address the budget deficit.

Saudi Arabia provides $2 billion support to Pakistan's weak economy

In&nbsp;a big respite to the nation's crumbling economy, International Monetary Fund (IMF) has given its approval to a $3 billion bailout programme for Pakistan on Wednesday. IMF executive board said that approximately $1.2 billion will be immediately disbursed to provide immediate relief and the remaining instalments will be provided later to Pakistan, Dawn reported.&nbsp;

The amount approved, however, is higher-than-expected funding for Pakistan.&nbsp;

The approved bailout amount of $3 billion, to be spread over a period of nine months, comes when the nation was eagerly anticipating the disbursement of the remaining $2.5 billion from a bailout package of $6.5 billion that was initially agreed upon in 2019 but expired in June.

Also Read | <a href="https://www.wionews.com/world/alarming-warning-from-who-bird-flu-poses-increased-risk-of-adapting-to-humans-614852">Alarming warning from WHO: Bird flu poses increased risk of adapting to humans</a>

The latest development also comes after June 29 Standby Arrangement reached between Pakistan and IMF to address the financial crisis faced by the country.&nbsp;

“The Executive Board of the International Monetary Fund approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR2,250 million (about $3 billion, or 111 per cent of quota) to support the authorities economic stabilisation programme,” IMF said in a statement.

<h2>Challenging economic circumstances</h2>

The IMF pointed out that Pakistan is facing a challenging economic situation. Speaking of a combination of adverse conditions, IMF said, “A difficult external environment, devastating floods and policy missteps have led to large fiscal and external deficits, rising inflation and eroded reserve buffers in FY23."&nbsp;

Also Read | <a href="https://www.wionews.com/world/india-backs-pakistans-resolution-at-un-condemning-quran-burning-protests-614841">India backs Pakistan’s resolution at UN condemning Quran burning protests</a>

Notably, the approval from the IMF comes after Saudi Arabia and the United Arab Emirates (UAE) made substantial deposits of $2 billion and $1 billion, respectively, into the State Bank of Pakistan.&nbsp;

Watch | Kenya on the boil as protests erupt against tax hikes

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/kenya-on-the-boil-as-protests-erupt-against-tax-hikes-614831/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

These contributions have helped boost Pakistan's foreign exchange reserves.

<h2>Shehbaz Sharif welcomes IMF bailout&nbsp;</h2>

Pakistan Prime Minister Shehbaz Sharif said the endorsement of the $3 billion agreement marked a "major step forward" in the government's endeavours to stabilise the economy.&nbsp;“It bolsters Pakistan’s economic position to overcome immediate- to medium-term economic challenges, giving the next government the fiscal space to chart the way forward,” he stated, adding,&nbsp;“I would commend Finance Minister Ishaq Dar and his team at the Ministry of Finance for their hard work."&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

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>.
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

 
&nbsp;

In a big respite to the nation's crumbling economy, International Monetary Fund (IMF) has given its approval to a $3 billion bailout programme for Pakistan on Wednesday.

In a big respite to the nation's crumbling economy, International Monetary Fund (IMF) has given its approval to a $3 billion bailout programme for Pakistan on Wednesday. IMF executive board said that approximately $1.2 billion will be immediately disbursed to provide immediate relief and the remaining instalments will be provided later to Pakistan, Dawn reported. The amount approved, however, is higher-than-expected funding for Pakistan. The approved bailout amount of $3 billion, to be spread over a period of nine months, comes when the nation was eagerly anticipating the disbursement of the remaining $2.5 billion from a bailout package of $6.5 billion that was initially agreed upon in 2019 but expired in June. Also Read | Alarming warning from WHO: Bird flu poses increased risk of adapting to humans The latest development also comes after June 29 Standby Arrangement reached between Pakistan and IMF to address the financial crisis faced by the country. “The Executive Board of the International Monetary Fund approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR2,250 million (about $3 billion, or 111 per cent of quota) to support the authorities economic stabilisation programme,” IMF said in a statement. Challenging economic circumstances The IMF pointed out that Pakistan is facing a challenging economic situation. Speaking of a combination of adverse conditions, IMF said, “A difficult external environment, devastating floods and policy missteps have led to large fiscal and external deficits, rising inflation and eroded reserve buffers in FY23." Also Read | India backs Pakistan’s resolution at UN condemning Quran burning protests Notably, the approval from the IMF comes after Saudi Arabia and the United Arab Emirates (UAE) made substantial deposits of $2 billion and $1 billion, respectively, into the State Bank of Pakistan. Watch | Kenya on the boil as protests erupt against tax hikes × These contributions have helped boost Pakistan's foreign exchange reserves. Shehbaz Sharif welcomes IMF bailout Pakistan Prime Minister Shehbaz Sharif said the endorsement of the $3 billion agreement marked a "major step forward" in the government's endeavours to stabilise the economy. “It bolsters Pakistan’s economic position to overcome immediate- to medium-term economic challenges, giving the next government the fiscal space to chart the way forward,” he stated, adding, “I would commend Finance Minister Ishaq Dar and his team at the Ministry of Finance for their hard work." 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. ×

IMF approves $3 billion bailout for Pakistan, offers respite to crumbling economy

Saudi Arabia has come to the rescue of cash-strapped Pakistan. The oil Rich Kingdom has sent a two billion dollar financial assistance to Pakistan.

Saudi money saves the day for Pakistan: Saudi deposits $2 billion to Pakistan banks

As the IMF agreed a three billion dollar deal to avert an impending economic catastrophe in the area, Pakistan has gained a much-needed lifeline. This IMF investment is a ray of hope for Pakistan's beleaguered economy, which has been suffering from a severe balance of payments problem and declining foreign reserves that have brought it perilously near to default. Pakistan's prime minister expressed gratitude to China and other friends for their assistance.

IMF to disburse $ 3 Billion to Pakistan in nine months

Official data released on Monday revealed that Egypt's year-on-year headline inflation reached an unprecedented 35.7 percent&nbsp;in June, exceeding the previous record of 32.7 percent in May. This sharp acceleration highlights the acute economic challenges faced by the country since early last year and marks the highest inflation rate witnessed since 2017.

Since March 2022, Egypt has experienced significant challenges, as it has faced a scarcity of foreign currency and undergone multiple currency devaluations. The resulting inflationary pressure has further exacerbated the hardships experienced by Egyptians, who have witnessed a gradual erosion of their living standards in recent years.

Analysts had forecast a significant increase in annual urban consumer price inflation for June, attributing it to an unfavorable base effect and a rise in consumer demand during the annual Eid al-Adha festival.&nbsp;

The central bank of Egypt&nbsp;reported that core inflation, which excludes fuel and certain volatile food items, also reached a new record high of 41 percent, surpassing the previous month's figure of 40.3 percent. This persistent surge in inflation may exert pressure on the central bank to raise interest rates at its upcoming meeting scheduled for August 3. Notably, the bank has maintained interest rates unchanged in its last two meetings, following a cumulative increase of 1,000 basis points since March 2022.

In the aftermath of Russia's invasion of Ukraine, Egypt, the Arab world's most populous nation, took decisive action to address its economic vulnerabilities. This included a significant currency devaluation of over 50% since March 2022. The realization of these vulnerabilities prompted Egypt to seek financial assistance from the International Monetary Fund, resulting in a successful application for a $3 billion loan.

The first review of the IMF program, which was scheduled to take place, has been delayed due to uncertainties surrounding Egypt's commitment to implementing a flexible currency exchange rate and the government's efforts to bolster the private sector. Notably, these endeavors include the sale of stakes in state-owned enterprises.

In an attempt to mitigate the impact of inflation, the Egyptian government has taken steps to raise electricity tariffs, which could reinforce price pressures through the summer. Reuters quoted Allen Sandeep from Naeem Brokerage, who suggested that a rise in power tariffs in July might lead to an extended period of elevated annual inflation. However, even without the power rate hike, there may still be a degree of cooling in July due to the favorable comparison with the previous year's figures.

Official data released on Monday revealed that Egypt's year-on-year headline inflation reached an unprecedented 35.7 percent in June, exceeding the previous record of 32.

Official data released on Monday revealed that Egypt's year-on-year headline inflation reached an unprecedented 35.7 percent in June, exceeding the previous record of 32.7 percent in May. This sharp acceleration highlights the acute economic challenges faced by the country since early last year and marks the highest inflation rate witnessed since 2017. Since March 2022, Egypt has experienced significant challenges, as it has faced a scarcity of foreign currency and undergone multiple currency devaluations. The resulting inflationary pressure has further exacerbated the hardships experienced by Egyptians, who have witnessed a gradual erosion of their living standards in recent years. Analysts had forecast a significant increase in annual urban consumer price inflation for June, attributing it to an unfavorable base effect and a rise in consumer demand during the annual Eid al-Adha festival. The central bank of Egypt reported that core inflation, which excludes fuel and certain volatile food items, also reached a new record high of 41 percent, surpassing the previous month's figure of 40.3 percent. This persistent surge in inflation may exert pressure on the central bank to raise interest rates at its upcoming meeting scheduled for August 3. Notably, the bank has maintained interest rates unchanged in its last two meetings, following a cumulative increase of 1,000 basis points since March 2022. In the aftermath of Russia's invasion of Ukraine, Egypt, the Arab world's most populous nation, took decisive action to address its economic vulnerabilities. This included a significant currency devaluation of over 50% since March 2022. The realization of these vulnerabilities prompted Egypt to seek financial assistance from the International Monetary Fund, resulting in a successful application for a $3 billion loan. The first review of the IMF program, which was scheduled to take place, has been delayed due to uncertainties surrounding Egypt's commitment to implementing a flexible currency exchange rate and the government's efforts to bolster the private sector. Notably, these endeavors include the sale of stakes in state-owned enterprises. In an attempt to mitigate the impact of inflation, the Egyptian government has taken steps to raise electricity tariffs, which could reinforce price pressures through the summer. Reuters quoted Allen Sandeep from Naeem Brokerage, who suggested that a rise in power tariffs in July might lead to an extended period of elevated annual inflation. However, even without the power rate hike, there may still be a degree of cooling in July due to the favorable comparison with the previous year's figures.

Egypt's inflation pyramid: inflation surges to 35.7 percent in June

Former Pakistan Prime Minister Imran Khan has urged the international monetary fund to seek a guarantee from the government that general elections in Pakistan will be held at their scheduled time this year.

Former Pak PM Imran Khan seeks IMF support for timely elections in the country

Former Pakistan prime minister and Pakistan Tehreek-e-Insaf (PTI) Imran Khan sought a guarantee from the International Monetary Fund (IMF) that the general elections in the country would be held on its scheduled time, according to a report by Geo News last Saturday (July 8).

Former Pakistan prime minister and Pakistan Tehreek-e-Insaf (PTI) Imran Khan sought a guarantee from the International Monetary Fund (IMF) that the general elections in the country would be held on its scheduled time, according to a report by Geo News last Saturday (July 8). This comes as a delegation of the IMF met Khan at his Zaman Park residence in Lahore on Friday. Quoting sources, Geo News reported that Khan asked the IMF to ensure that the general elections, scheduled to take place in October, will be held on time. “What guarantee can you (IMF) give that the elections in the country will be held on time,” the PTI chairperson was quoted as saying in the huddle. During the meeting, which lasted more than an hour, the two sides discussed the recent staff-level pact agreed upon between Pakistan and the global lender with Khan extending his full support to it. In an address via a video link, Imran said PTI has agreed to “endorse the standby arrangement” with the IMF until elections were held and a new government was formed. “Obviously, when a new government comes, they will hold talks with the IMF according to their own programme,” he added. Apart from Imran, the IMF team met with other PTI members including Shah Mahmood Qureshi, Shaukat Tarin, Omar Ayub Khan, Sania Nishtar, Shibli Faraz, Taimur Jhagra and Muzammil Aslam. “We welcome the SBA (standby arrangement) to preserve macroeconomic stability by anchoring external financing and sound policies ahead of the national elections due in the fall of this year and until a new government is formed," said senior PTI leader Hammad Azhar. Earlier, IMF's resident representative Esther Perez Ruiz said meetings with different political parties were to "seek assurances of their support for the key objectives and policies under a new IMF-supported programme ahead of the approaching national elections". Apart from PTI, the Washington-based lender is holding consultations with the ruling Pakistan Muslim League-Nawaz (PML-N) as well as Pakistan Peoples Party (PPP). WATCH | Crisis-hit Pakistan strikes $3bn IMF bailout deal × Notably, the IMF officials met Imran and his party, a day after he was named in six cases, including three under the tough Anti-Terrorism Act, for his connection to the 9 May riots in the country after his arrest. Pakistan clinches the deal Last week, after months of negotiations, Pakistan managed to clinch a last-minute relief from IMF on an initial $3 billion loan. The development lowers the risk of a sovereign debt default as the South Asian nation continues to grapple with sky-high inflation and staggeringly low exchange reserves. The agreement aims to support Pakistan's purported efforts to stabilise the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. Also read | Pakistan secures initial relief of $3bn from IMF in its bid to avoid sovereign default "The new SBA will also create space for social and development spending through improved domestic revenue mobilisation and careful spending execution to help address the needs of the Pakistani people," the IMF said in an official statement. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan: Imran Khan seeks guarantee from IMF over timely elections

Pakistan's cash-strapped economy got much-needed relief from the international monetary fund after it was able to clinch a 3 billion dollar package to avoid a potential default. But whether Pakistan will be able to emerge unscathed from the economic turmoil will completely depend on how stable its political system remains in the coming months.

Political stability key for cash-strapped Pakistan

Sri Lanka's parliament has made a significant decision in the face of a severe financial crisis. Parliament has approved a crucial debt restructuring plan, essential to secure a $2.9 billion bailout from the international monetary fund (IMF).

Sri Lanka approves debt restructuring plan for IMF bailout

Pakistan's benchmark&nbsp;KSE-100 Index kicked off the week on a high note, gaining a solid 5.8 percent during Monday's trading session. The positive momentum was so strong that trading had to be briefly halted after the index hit its upper circuit limit.

Pakistan recently receiving a much-needed $3 billion short-term financial package from the International Monetary Fund played a big role in Monday's stock rally.&nbsp;

This funding comes as a huge relief for Pakistan, which has been teetering on the brink of default. The cash-strapped country&nbsp;has been grappling with sky-high inflation and dangerously low foreign exchange reserves. Without this bailout, the country&nbsp;could have potentially defaulted on its debt.

Nevertheless, the economy is far from safe.&nbsp;The new fiscal, which began on July 1, will be difficult for Pakistan The country has $23 billion worth of external debt obligation&nbsp;that needs to be re-paid by June 2024. This is six times the total foreign exchange reserves Pakistan has currently.&nbsp;

“This IMF arrangement provides some comfort to investors over Pakistan’s ability to overcome short term external repayments,” Bloomberg quoted Ruchir Desai, fund manager at Asia Frontier Capital Ltd, as saying. Desai added that the Pakistani stock market would do "pretty well” in the next few weeks.&nbsp;

Prime Minister Shehbaz Sharif too expressed optimism after sealing the deal&nbsp;over the weekend. He stated&nbsp;that the loan agreement will put Pakistan on the "path of sustainable economic growth".&nbsp;

Interestingly, inexpensive valuations, owing to the negative headlines garnered by the country over the past one year, are also helping the stock market. As per Bloomberg, the KSE-100 Index of the Karachi Stock Exchange has become the world’s cheapest equity benchmark.

The positive impact of the IMF bailout could also be reflected in Pakistan's sovereign dollar bonds, which are trading higher following the announcement. The 2024 bond, in particular, has seen significant gains, up by over 8 cents at just above 70 cents on the dollar.

Pakistan's benchmark KSE-100 Index kicked off the week on a high note, gaining a solid 5.8 percent during Monday's trading session. The positive momentum was so strong that trading had to be briefly halted after the index hit its upper circuit limit.

Pakistan's benchmark KSE-100 Index kicked off the week on a high note, gaining a solid 5.8 percent during Monday's trading session. The positive momentum was so strong that trading had to be briefly halted after the index hit its upper circuit limit. Pakistan recently receiving a much-needed $3 billion short-term financial package from the International Monetary Fund played a big role in Monday's stock rally. This funding comes as a huge relief for Pakistan, which has been teetering on the brink of default. The cash-strapped country has been grappling with sky-high inflation and dangerously low foreign exchange reserves. Without this bailout, the country could have potentially defaulted on its debt. Nevertheless, the economy is far from safe. The new fiscal, which began on July 1, will be difficult for Pakistan The country has $23 billion worth of external debt obligation that needs to be re-paid by June 2024. This is six times the total foreign exchange reserves Pakistan has currently. “This IMF arrangement provides some comfort to investors over Pakistan’s ability to overcome short term external repayments,” Bloomberg quoted Ruchir Desai, fund manager at Asia Frontier Capital Ltd, as saying. Desai added that the Pakistani stock market would do "pretty well” in the next few weeks. Prime Minister Shehbaz Sharif too expressed optimism after sealing the deal over the weekend. He stated that the loan agreement will put Pakistan on the "path of sustainable economic growth". Interestingly, inexpensive valuations, owing to the negative headlines garnered by the country over the past one year, are also helping the stock market. As per Bloomberg, the KSE-100 Index of the Karachi Stock Exchange has become the world’s cheapest equity benchmark. The positive impact of the IMF bailout could also be reflected in Pakistan's sovereign dollar bonds, which are trading higher following the announcement. The 2024 bond, in particular, has seen significant gains, up by over 8 cents at just above 70 cents on the dollar.

Pakistan stock market surges 5.8% after $3 billion IMF deal

IMF extends helping hand to cash-strapped Pakistan

While Pakistan has received a much-needed Llfeline as the International Monetary Fund has approved a three billion dollar deal to prevent an impending economic collapse.

IMF comes to the rescue of cash-strapped Pakistan

Pakistan has managed to clinch a last-minute relief from the International Monetary Fund (IMF) as the two have agreed on an initial $3 billion loan from the global lender. The development lowers the risk of a sovereign debt default as the South Asian nation continues to grapple with sky-high inflation and staggeringly low exchange reserves.&nbsp;

The country will now hope to secure the funding of at least $1.1 billion from the IMF, after a final review. The development occurs right before the expiration of IMF's current programme for Pakistan on June 30.

The agreement aims to&nbsp;support Pakistan's purported efforts&nbsp;to stabilise the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. "The new SBA will also create space for social and development spending through improved domestic revenue mobilisation and careful spending execution to help address the needs of the Pakistani people," the IMF said in an official statement.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-races-against-time-with-extreme-tax-measures-to-secure-11-bn-from-imf-608541">Pakistan races against time with extreme tax measures to secure $1.1bn from IMF</a>

The staff-level agreement will now be&nbsp;subjected to approval by the IMF Executive Board, constituted by 24 Directors from countries worldwide.&nbsp;

"I am pleased to announce that the IMF team has reached a staff-level agreement with the Pakistani authorities on a nine-month Stand-by Arrangement (SBA) in the amount of SDR2,250 million (about $3 billion or 111 percent of Pakistan’s IMF quota)," IMF's Nathan Porter said in an official statement.

"The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported program which expires end-June. This agreement is subject to approval by the IMF’s Executive Board, which is expected to consider this request by mid-July," said Porter, the IMF team leader who held&nbsp;in-person and virtual meetings with the Pakistani Authorities to discuss a new financing engagement.

<h2>Pakistan $3 bn IMF loan programme: Upcoming Timeline</h2>

According to an IMF statement, the Executive Board's consideration for $3 billion loan programme towards Pakistan is likely to&nbsp;take place in the middle of July.

Also watch |&nbsp;Pakistan's last-ditch effort for an IMF loan

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pakistans-last-ditch-effort-for-an-imf-loan-608763/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The IMF on Friday said that a steadfast policy implementation will be&nbsp;key for Pakistan to overcome its current challenges, "including through greater fiscal discipline, a market-determined exchange rate to absorb external pressures, and further progress on reforms, particularly in the energy sector, to promote climate resilience, and to help improve the business climate."

Pakistan has availed nearly two dozen bailouts from the Washington-headquartered lender since 1952.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1  width=&quot;100%&quot;"></iframe>

Pakistan has managed to clinch a last-minute relief from the International Monetary Fund (IMF) as the two have agreed on an initial $3 billion loan from the global lender.

Pakistan has managed to clinch a last-minute relief from the International Monetary Fund (IMF) as the two have agreed on an initial $3 billion loan from the global lender. The development lowers the risk of a sovereign debt default as the South Asian nation continues to grapple with sky-high inflation and staggeringly low exchange reserves. The country will now hope to secure the funding of at least $1.1 billion from the IMF, after a final review. The development occurs right before the expiration of IMF's current programme for Pakistan on June 30. The agreement aims to support Pakistan's purported efforts to stabilise the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. "The new SBA will also create space for social and development spending through improved domestic revenue mobilisation and careful spending execution to help address the needs of the Pakistani people," the IMF said in an official statement. Also read | Pakistan races against time with extreme tax measures to secure $1.1bn from IMF The staff-level agreement will now be subjected to approval by the IMF Executive Board, constituted by 24 Directors from countries worldwide. "I am pleased to announce that the IMF team has reached a staff-level agreement with the Pakistani authorities on a nine-month Stand-by Arrangement (SBA) in the amount of SDR2,250 million (about $3 billion or 111 percent of Pakistan’s IMF quota)," IMF's Nathan Porter said in an official statement. "The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported program which expires end-June. This agreement is subject to approval by the IMF’s Executive Board, which is expected to consider this request by mid-July," said Porter, the IMF team leader who held in-person and virtual meetings with the Pakistani Authorities to discuss a new financing engagement. Pakistan $3 bn IMF loan programme: Upcoming Timeline According to an IMF statement, the Executive Board's consideration for $3 billion loan programme towards Pakistan is likely to take place in the middle of July. Also watch | Pakistan's last-ditch effort for an IMF loan × The IMF on Friday said that a steadfast policy implementation will be key for Pakistan to overcome its current challenges, "including through greater fiscal discipline, a market-determined exchange rate to absorb external pressures, and further progress on reforms, particularly in the energy sector, to promote climate resilience, and to help improve the business climate." Pakistan has availed nearly two dozen bailouts from the Washington-headquartered lender since 1952. WATCH WION LIVE HERE

Pakistan secures initial relief of $3bn from IMF in its bid to avoid sovereign default

Pakistan is currently facing an unprecedented financial crisis and expects a loan from the International Monetary Fund (IMF) to revive the economy. On Wednesday (June 28), Dawn newspaper reported citing people with knowledge of the matter that Islamabad is in talks with the international financial institution for a new $2.5 billion quick standby assistance as the existing programme expires on June 30.&nbsp;

According to the Pakistan-based newspaper, the short-term proposed arrangement, which is for six to nine months, includes an upfront disbursement of $1.1 billion within the next 15 days. It is followed by two or three more reviews for as much as $500 million each.&nbsp;

Pakistan is struggling to finalise an agreement with the lender as its IMF programme runs out. Prime Minister Shehbaz Sharif also held a meeting with the ambassadors of key countries to get support for the revival of the deal. So far, there's nothing concrete.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistans-new-law-paves-way-for-former-pm-nawaz-sharifs-return-report-609308">Pakistan passes new law, paves way for former PM Nawaz Sharif’s return: Report</a>&nbsp;

<h2>Economic crisis in Pakistan&nbsp;</h2>

The economy of the nation has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt. Months of political chaos have worsened the situation.&nbsp;

The cost of living crisis is also troubling the common people as inflation has rocketed, the Pakistan rupee has plummeted and the country can no longer afford imports. This has led to a severe decline in industrial output.&nbsp;

Pakistan remained in a difficult phase as it attempted to regain access to a $6.7 billion bailout programme. However, it has been delayed for more than six months. The South Asian nation drafted its annual budget keeping the crisis in mind.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/indias-amara-raja-group-secures-130-million-solar-power-project-in-bangladesh-609215">India's Amara Raja Group secures $130 million solar power project in Bangladesh</a>&nbsp;

Ishaq Dar told reporters after releasing the budget for the 2023-24 financial year that "we'll see how things go" as he referred to whether to restructure or reprofile debt. Dar added, "In either case, we will talk to bilateral creditors."&nbsp;

To tackle the situation, Pakistan has taken decisive changes to the annual budget, such as hiked taxes and energy prices to win the lender's support. However, these tweaks would impact the common people.&nbsp;

Watch:&nbsp;Civilians in Pakistan may face military trial for vandalising army building&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pakistan-civilians-may-face-military-trial-for-vandalising-army-building-608796/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

<h2>Pakistan to hand over Karachi port to UAE&nbsp;</h2>

Pakistan is apparently planning to hand over the Karachi port terminals to the United Arab Emirates (UAE), a move which appears to be the first intergovernmental transaction under a law enacted last year to raise emergency funds.&nbsp;

Earlier this month, a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions was chaired by the finance minister to discuss the details of the deal.&nbsp;

In the meeting, it was decided to set up a committee to negotiate a commercial agreement between the Karachi Port Trust (KPT) and the UAE government.&nbsp;

(With inputs from agencies)

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

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>.

Pakistan is currently facing an unprecedented financial crisis and expects a loan from the International Monetary Fund (IMF) to revive the economy. On Wednesday (June 28), Dawn newspaper reported citing people with knowledge of the matter that Islamabad is in talks with the international financial institution for a new $2.

Pakistan is currently facing an unprecedented financial crisis and expects a loan from the International Monetary Fund (IMF) to revive the economy. On Wednesday (June 28), Dawn newspaper reported citing people with knowledge of the matter that Islamabad is in talks with the international financial institution for a new $2.5 billion quick standby assistance as the existing programme expires on June 30. According to the Pakistan-based newspaper, the short-term proposed arrangement, which is for six to nine months, includes an upfront disbursement of $1.1 billion within the next 15 days. It is followed by two or three more reviews for as much as $500 million each. Pakistan is struggling to finalise an agreement with the lender as its IMF programme runs out. Prime Minister Shehbaz Sharif also held a meeting with the ambassadors of key countries to get support for the revival of the deal. So far, there's nothing concrete. Also read: Pakistan passes new law, paves way for former PM Nawaz Sharif’s return: Report Economic crisis in Pakistan The economy of the nation has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt. Months of political chaos have worsened the situation. The cost of living crisis is also troubling the common people as inflation has rocketed, the Pakistan rupee has plummeted and the country can no longer afford imports. This has led to a severe decline in industrial output. Pakistan remained in a difficult phase as it attempted to regain access to a $6.7 billion bailout programme. However, it has been delayed for more than six months. The South Asian nation drafted its annual budget keeping the crisis in mind. Also read: India's Amara Raja Group secures $130 million solar power project in Bangladesh Ishaq Dar told reporters after releasing the budget for the 2023-24 financial year that "we'll see how things go" as he referred to whether to restructure or reprofile debt. Dar added, "In either case, we will talk to bilateral creditors." To tackle the situation, Pakistan has taken decisive changes to the annual budget, such as hiked taxes and energy prices to win the lender's support. However, these tweaks would impact the common people. Watch: Civilians in Pakistan may face military trial for vandalising army building × Pakistan to hand over Karachi port to UAE Pakistan is apparently planning to hand over the Karachi port terminals to the United Arab Emirates (UAE), a move which appears to be the first intergovernmental transaction under a law enacted last year to raise emergency funds. Earlier this month, a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions was chaired by the finance minister to discuss the details of the deal. In the meeting, it was decided to set up a committee to negotiate a commercial agreement between the Karachi Port Trust (KPT) and the UAE government. (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.

Pakistan in talks with IMF for new $2.5 billion quick standby assistance: Report

The Pakistani government and the International Monetary Fund (IMF) were discussing a $2.5-billion "standby arrangement" for six to nine months as the current bailout programme is set to expire on Friday (June 30).

The Pakistani government and the International Monetary Fund (IMF) were discussing a $2.5-billion "standby arrangement" for six to nine months as the current bailout programme is set to expire on Friday (June 30). On Tuesday, Pakistan Finance Minister Ishaq Dar said the two sides were working on a "mechanism" to ensure that Islamabad got the entire amount and not just the close to $1.1 billion due under the current review, the news agency Reuters reported on Wednesday. However, Finance Minister Dar did not elaborate on what the mechanism was. The government is currently racing against time to unlock $1.1 billion under the lender's ninth review of a $6.5-billion Extended Fund Facility agreed upon in 2019. As per a report by the Express Tribune, the ninth review is in order after recent adjustments but Pakistan is keen to receive the entire undisbursed amount, which is only possible in a new programme. The report added that Prime Minister Shehbaz Sharif discussed signing a new standby arrangement (SBA) worth $2.6 billion for six months with IMF Managing Director Kristalina Georgieva. 'Pak taking decisive steps to push through economic reforms' On Tuesday, the IMF said that Pakistan was taking decisive steps to push through a series of economic reforms. In a statement, IMF's Pakistan mission chief Nathan Porter said that the country's authorities were bringing in policies more in line with the economic reform programme supported by the lender. "The IMF team continues discussions with Pakistani authorities with the aim of quickly reaching an agreement on financial support,” the statement added. Porter said that the steps taken by the government include parliament’s approval of a budget that expands the tax base and allows for more social and development spending, and efforts to improve the functioning of the foreign exchange market. The IMF mission chief also cited the country’s tightening of monetary policy to reduce inflationary and balance of payment pressures that “affect particularly the more vulnerable.” In the FY 24 budget, the government had earmarked $2.5 billion in external receipts from the IMF. Pakistan needs upwards of $22 billion to service external debt, make interest payments, and finance its current account for FY24. 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.

Pakistan, IMF discussing $2.5 billion standby arrangement, says FM Ishaq Dar

In the south of the Indian subcontinent, Sri Lanka heaved a sigh of respite after the World Bank approved $700 million in budgetary and welfare support for the island nation.&nbsp;The biggest funding tranche for the crisis-hit nation comes months after India extended a $1 billion credit line to the crisis-hit nation in a region where Pakistan is also struggling to secure $1 billion in IMF funding before June 30.

For Sri Lanka, the current relief comes after an International Monetary Fund (IMF) deal for nearly $3 billion in bailout in March.

About $500 million of the funds will be allocated for budgetary support while the remaining $200 million will be for welfare support earmarked for those worst hit by the crisis.

"Through a phased approach, the World Bank Group strategy focuses on early economic stabilisation, structural reforms, and protection of the poor and vulnerable," the World Bank's country director for Sri Lanka, Faris Hadad-Zervos, said in an official statement.

"If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development," Zervos said.

<h2>Sri Lanka's economic crisis</h2>

The island nation in India's south is currently struggling with the worst financial crisis since its independence from Britain in 1948. The country's foreign exchange hit record lows and triggered its first foreign debt default last year, followed by mass protests against the then ruling president.&nbsp;

Also watch |&nbsp;Sri Lanka battles its worst economic crisis in 70 years

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/sri-lanka-battles-its-worst-economic-crisis-in-70-years-553459/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The IMF approved a bailout of nearly $3 billion in March. Sri Lanka expects that IMF's assistance will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies.

Sri Lanka will reportedly release a domestic debt restructuring programme this week to push forward reworking its debt with bondholders and bilateral creditors including China, Japan and India.

<h2>Sri Lanka's economic recovery: India's role in spotlight too</h2>

As part of $4 billion in emergency assistance, India has extended a $1 billion&nbsp;credit line for Sri Lanka by one year until 2024.

Also read | <a href="https://www.wionews.com/business-economy/india-steps-up-rupees-internationalisation-for-sri-lankas-economic-recovery-589593">India steps up rupee's internationalisation for Sri Lanka's economic recovery</a>

Sri Lanka owes $7.1 billion&nbsp;to bilateral creditors, according to the government data. The country owes $3 billion&nbsp;to China, $2.4 billion to the Paris Club and $1.6 billion&nbsp;to India.

Meanwhile, India and Sri Lanka have also stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade".

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1  width=&quot;100%&quot;"></iframe>

In the south of the Indian subcontinent, Sri Lanka heaved a sigh of respite after the World Bank approved $700 million in budgetary and welfare support for the island nation.

In the south of the Indian subcontinent, Sri Lanka heaved a sigh of respite after the World Bank approved $700 million in budgetary and welfare support for the island nation. The biggest funding tranche for the crisis-hit nation comes months after India extended a $1 billion credit line to the crisis-hit nation in a region where Pakistan is also struggling to secure $1 billion in IMF funding before June 30. For Sri Lanka, the current relief comes after an International Monetary Fund (IMF) deal for nearly $3 billion in bailout in March. About $500 million of the funds will be allocated for budgetary support while the remaining $200 million will be for welfare support earmarked for those worst hit by the crisis. "Through a phased approach, the World Bank Group strategy focuses on early economic stabilisation, structural reforms, and protection of the poor and vulnerable," the World Bank's country director for Sri Lanka, Faris Hadad-Zervos, said in an official statement. "If sustained, these reforms can put the country back on the path towards a green, resilient and inclusive development," Zervos said. Sri Lanka's economic crisis The island nation in India's south is currently struggling with the worst financial crisis since its independence from Britain in 1948. The country's foreign exchange hit record lows and triggered its first foreign debt default last year, followed by mass protests against the then ruling president. Also watch | Sri Lanka battles its worst economic crisis in 70 years × The IMF approved a bailout of nearly $3 billion in March. Sri Lanka expects that IMF's assistance will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies. Sri Lanka will reportedly release a domestic debt restructuring programme this week to push forward reworking its debt with bondholders and bilateral creditors including China, Japan and India. Sri Lanka's economic recovery: India's role in spotlight too As part of $4 billion in emergency assistance, India has extended a $1 billion credit line for Sri Lanka by one year until 2024. Also read | India steps up rupee's internationalisation for Sri Lanka's economic recovery Sri Lanka owes $7.1 billion to bilateral creditors, according to the government data. The country owes $3 billion to China, $2.4 billion to the Paris Club and $1.6 billion to India. Meanwhile, India and Sri Lanka have also stepped up their talks to proceed with trade in Indian Rupee as New Delhi and Colombo look set to expand their bilateral cooperation in "power and energy sector as well as aspects relating to Rupee trade". WATCH WION LIVE HERE

Sri Lanka gets $700mn from World Bank months after India’s extended credit line for economic recovery

Cash strapped Pakistan is still hopeful of an international monetary fund package. And in a last ditch effort to secure the loan, it is planning to introduce new taxes to appease the international fund. Pakistan plans to introduce new taxes and raise revenue by $750 million, just days before the new financial year begins on July 1. With the new tax proposals, Pakistan expects to secure at least 1.1 billion dollars in funding.

Pakistan's last-ditch effort for an IMF loan

Pakistan to introduce new taxes to appease IMF

Pakistan's dire economic crisis has forced it to take actions as per International Monetary Fund's conditions as the South Asian nation made&nbsp;tax-related announcements earlier this week.

Finance Minister Ishaq Dar announced in Parliament on Saturday that Pakistan will implement new tax policy following which the country would&nbsp;generate an additional revenue of 215 billion rupees ($750 million), bringing the total budget to 9.4 trillion rupees.

Following three days of discussions with the IMF, the budget will be finalised within the next three days, according to Dar.

<h2>Pakistan's focus to revive $6.7bn bailout programme</h2>

Prime Minister Shehbaz Sharif's government had previously presented an annual spending plan aimed at balancing economic growth with&nbsp;conditions imposed by the IMF to revive a $6.7 billion bailout programme.

But on Saturday, Pakistani finance minister stated that the government has decided to revise and reduce state expenses by 85 billion rupees, just what the IMF had proposed.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistans-karachi-city-to-stop-import-of-eatables-drinks-due-to-lack-of-dollars-606133">Pakistan's Karachi city to stop import of eatables, drinks due to lack of dollars</a>

In an earlier statement, the IMF expressed concerns about the budget's tax policies, pointing out&nbsp;that Pakistan&nbsp;failed to broaden the revenue base. The IMF had also raised objections to an amnesty programme that apparently raised conflict with the bailout programme's conditions.

Earlier, Pakistan&nbsp;Prime Minister Shehbaz Sharif&nbsp;met with IMF Managing Director Kristalina Georgieva and committed to taking further measures with the bailout programme.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
<a href="https://twitter.com/hashtag/Pakistan?src=hash&amp;ref_src=twsrc%5Etfw">#Pakistan</a> changes budget as dictated by IMF to clinch stalled funds. 
 
The review came a day after Prime Minister <a href="https://twitter.com/CMShehbaz?ref_src=twsrc%5Etfw">@CMShehbaz</a> met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.<a href="https://twitter.com/SehgalRahesha?ref_src=twsrc%5Etfw">@SehgalRahesha</a> tells you more <a href="https://t.co/N8rd7ACrI8">pic.twitter.com/N8rd7ACrI8</a>
— WION (@WIONews) <a href="https://twitter.com/WIONews/status/1672906163195887617?ref_src=twsrc%5Etfw">June 25, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The country now expects to secure funding of at least $1.1 billion from the IMF before the expiration of its current programme on June 30.

Over the past year, the government has implemented measures such as raising taxes and fuel prices, as well as loosening control over the foreign exchange rate.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1  width=&quot;100%&quot;"></iframe>

Pakistan's dire economic crisis has forced it to take actions as per International Monetary Fund's conditions as the South Asian nation made tax-related announcements earlier this week.

Pakistan's dire economic crisis has forced it to take actions as per International Monetary Fund's conditions as the South Asian nation made tax-related announcements earlier this week. Finance Minister Ishaq Dar announced in Parliament on Saturday that Pakistan will implement new tax policy following which the country would generate an additional revenue of 215 billion rupees ($750 million), bringing the total budget to 9.4 trillion rupees. Following three days of discussions with the IMF, the budget will be finalised within the next three days, according to Dar. Pakistan's focus to revive $6.7bn bailout programme Prime Minister Shehbaz Sharif's government had previously presented an annual spending plan aimed at balancing economic growth with conditions imposed by the IMF to revive a $6.7 billion bailout programme. But on Saturday, Pakistani finance minister stated that the government has decided to revise and reduce state expenses by 85 billion rupees, just what the IMF had proposed. Also read | Pakistan's Karachi city to stop import of eatables, drinks due to lack of dollars In an earlier statement, the IMF expressed concerns about the budget's tax policies, pointing out that Pakistan failed to broaden the revenue base. The IMF had also raised objections to an amnesty programme that apparently raised conflict with the bailout programme's conditions. Earlier, Pakistan Prime Minister Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva and committed to taking further measures with the bailout programme. #Pakistan changes budget as dictated by IMF to clinch stalled funds. The review came a day after Prime Minister @CMShehbaz met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.@SehgalRahesha tells you more pic.twitter.com/N8rd7ACrI8 — WION (@WIONews) June 25, 2023 × The country now expects to secure funding of at least $1.1 billion from the IMF before the expiration of its current programme on June 30. Over the past year, the government has implemented measures such as raising taxes and fuel prices, as well as loosening control over the foreign exchange rate. WATCH WION LIVE HERE

Pakistan races against time with extreme tax measures to secure $1.1bn from IMF

Pakistan has changed its budget for the financial year starting on July 1, Finance Minister Ishaq Dar said on Saturday, including the latest fiscal tightening measures dictated by International Monetary Fund in a final effort to clinch a stalled rescue package.

"Pakistan and IMF had detailed negotiations for the last three days as a last effort to complete the pending review," he told parliament.

For the fiscal year starting next month, Pakistan will raise a further 215 billion rupees ($752 million) in new tax and cut 85 billion rupees in spending, as well as a number of other measures to shrink the fiscal deficit, he said.

Also Read | <a href="https://www.wionews.com/trending/archaeologists-unearth-4000-year-old-stonehenge-burial-ground-in-the-netherlands-608203">Archaeologists unearth 4,000-year-old ‘Stonehenge’ burial ground in the Netherlands</a>

That will revise Pakistan's revenue collection target to 9.415 trillion rupees ($33 billion) and put total spending at 14.480 trillion rupees ($51 billion), Dar said. "These changes will make our fiscal deficit much better," he said.

"We have ensured that the new tax will not affect the poor," he claimed, and said the petrol levy will be raised from 50 rupees to 60 rupees, and will be capped at the new ceiling for any future changes.

Also Read | <a href="https://www.wionews.com/technology/google-rolls-out-perspectives-tab-in-major-search-engine-revamp-608201">Google rolls out 'Perspectives' tab in major search-engine revamp</a>

He also announced lifting of restriction on&nbsp;all imports enforced in December in a bid to cut the current account deficit, which has been one of the major concerns by the IMF to release the funds.

Money allocated for cash handouts to the poor was also revised from 450 billion rupees to 466 billion rupees for fiscal 2024, Dar said.

The review came a day after Prime Minister Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.

There is less than a week to go before the IMF's Extended Fund Facility agreed in 2019 expires on June 30.

Watch | 'Putin's chef' vs Defence Minister: Where has Wagner operated?

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/putins-chef-vs-defence-minister-where-has-wagner-operated-608172/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Under the $6.5 billion facility's ninth review, negotiated earlier this year, Pakistan has been trying to secure $1.1 billion of funding stalled since November.

With central bank foreign exchange reserves barely enough to cover one month of controlled imports, Pakistan is facing an acute balance of payment crisis, which analysts say could spiral into a debt default if the IMF money doesn't come through.

The IMF funding is critical to unlock other bilateral and multilateral financing for the debt-ridden South Asian economy.

"I hope, God willing, that we will have an agreement with the IMF," Dar said.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1  width=&quot;100%&quot;"></iframe>

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>.
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Pakistan has changed its budget for the financial year starting on July 1, Finance Minister Ishaq Dar said on Saturday, including the latest fiscal tightening measures dictated by International Monetary Fund in a final effort to clinch a stalled rescue package.

Pakistan has changed its budget for the financial year starting on July 1, Finance Minister Ishaq Dar said on Saturday, including the latest fiscal tightening measures dictated by International Monetary Fund in a final effort to clinch a stalled rescue package. "Pakistan and IMF had detailed negotiations for the last three days as a last effort to complete the pending review," he told parliament. For the fiscal year starting next month, Pakistan will raise a further 215 billion rupees ($752 million) in new tax and cut 85 billion rupees in spending, as well as a number of other measures to shrink the fiscal deficit, he said. Also Read | Archaeologists unearth 4,000-year-old ‘Stonehenge’ burial ground in the Netherlands That will revise Pakistan's revenue collection target to 9.415 trillion rupees ($33 billion) and put total spending at 14.480 trillion rupees ($51 billion), Dar said. "These changes will make our fiscal deficit much better," he said. "We have ensured that the new tax will not affect the poor," he claimed, and said the petrol levy will be raised from 50 rupees to 60 rupees, and will be capped at the new ceiling for any future changes. Also Read | Google rolls out 'Perspectives' tab in major search-engine revamp He also announced lifting of restriction on all imports enforced in December in a bid to cut the current account deficit, which has been one of the major concerns by the IMF to release the funds. Money allocated for cash handouts to the poor was also revised from 450 billion rupees to 466 billion rupees for fiscal 2024, Dar said. The review came a day after Prime Minister Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris. There is less than a week to go before the IMF's Extended Fund Facility agreed in 2019 expires on June 30. Watch | 'Putin's chef' vs Defence Minister: Where has Wagner operated? × Under the $6.5 billion facility's ninth review, negotiated earlier this year, Pakistan has been trying to secure $1.1 billion of funding stalled since November. With central bank foreign exchange reserves barely enough to cover one month of controlled imports, Pakistan is facing an acute balance of payment crisis, which analysts say could spiral into a debt default if the IMF money doesn't come through. The IMF funding is critical to unlock other bilateral and multilateral financing for the debt-ridden South Asian economy. "I hope, God willing, that we will have an agreement with the IMF," Dar said. 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. ×

Pakistan changes budget as dictated by IMF to clinch stalled funds

Pakistan's economy is facing a severe crisis, with no signs of financial relief in sight. Prime Minister Shehbaz Sharif met with the IMF Chief during the Global Financial Summit in Paris, making a last effort to secure the release of $1.1 billion in funding. Political instability, devastating floods, and shrinking foreign exchange reserves have hindered the negotiations for a loan renewal.

IMF disappointed with Pakistan's annual budget

Pakistan's IMF deal deadline is near and there is no signs of breakthrough. Frustration regarding this is now visible on Pakistani government. Pakistan's Finance Minister, Ishaq Dar lost his cool and allegedly engaged in a physical tussle with journalist over the question asked about the deal.

Pakistan's Finance Minister snaps at reporter when asked about IMF deal

The CBDC or the Central Bank digital currency is all set to go global, thanks to the International Monetary Fund, which is working on a global platform for CBDC transactions. The IMF wants countries to agree on a common framework for digital currencies for easy global transactions.

IMF looking at global platform for digital currencies

Pakistan Prime Minister Shehbaz Sharif is waxing lyrical about China as&nbsp;International Monetary Fund (IMF) continues to delay the release of bailout funding. Sharif hailed Beijing for "outstanding" financial support amid the 'inordinate' delay by the monetary body.&nbsp;

Sharif was speaking after Islamabad&nbsp;signed&nbsp;a memorandum of understanding with Beijing&nbsp;for the 1,200 MW Chashma-5 (C-5) nuclear power project.

“It is a great occasion and a great moment between two great friends, China and Pakistan.&nbsp;Hopefully, we will kickstart it without further delay," said Sharif, adding that&nbsp;investment from China, to the tune of $4.8 billion, had sent a “loud and clear” message.&nbsp;

Sharif's statement also came in the backdrop of his government announcing that&nbsp;$2.3 billion in Chinese loans would be rolled over before the fiscal year ends on June 30.&nbsp;&nbsp;

<h2>Our friendship sweeter than sugar and honey: Sharif</h2>

“Our friendship is higher than the Himalayas, deeper than the deepest ocean, sweeter than sugar and honey, and stronger than iron and steel,” said Sharif.&nbsp;

As for receiving the bailout money from IMF, Sharif said Pakistan had met all the terms and conditions and yet was unable to make any progress in the discussions.&nbsp;

“We thought this would be done two months ago, three months ago but there has been inordinate delay...China, once again, came to our help and rescue. This is friendship. A friend in need is a friend indeed.”

“But at this point and time, at this juncture, Chinese financial support has been outstanding.&nbsp;We are deeply obliged to President Xi Jinping, to the Chinese leadership and to the Chinese finance minister," he added.&nbsp;

<a href="https://www.wionews.com/videos/is-pakistans-economic-crisis-getting-worse-550882">WATCH |&nbsp;Is Pakistan's economic crisis getting worse?</a>

<iframe allowfullscreen="" autoplay="1" frameborder="0" height="350" src="https://www.wionews.com/videos/is-pakistans-economic-crisis-getting-worse-550882/embed" width="560"></iframe>

<a href="https://www.wionews.com/south-asia/inflation-breaks-fifty-year-record-in-pakistan-touches-high-of-315-567577#" id="jqclosemark">×</a>

<h2>Pakistan on risk of default</h2>

Earlier this month,&nbsp;credit ratings agency Moody's said time is running out for Pakistan to convince IMF&nbsp;to release the remaining tranche of the $2.2 billion of the $6.7 billion payout.&nbsp;

“There are increasing risks that Pakistan may be unable to complete the IMF program that expires at the end of June,” Grace Lim, a sovereign analyst with Moody's Singapore was quoted as saying by Bloomberg.&nbsp;

“Without an IMF program, Pakistan could default, given its very weak reserves," Lim added.&nbsp;

The deadline to reach a deal on the financing programme is approaching and the Pakistani government is nowhere near securing the funding. Despite finance minister Ishaq Dar holding several rounds of discussions with the top IMF officials, Islamabad hasn't been able to lock dates for a board meeting, a pre-requisite for the disbursement.

<a href="https://www.wionews.com/south-asia/pakistan-running-out-of-time-could-default-says-credit-rating-agency-moodys-604740">Also read |&nbsp;Pakistan running out of time, could default, says credit rating agency Moody's&nbsp;</a>

Notably, conducting a board meeting on the review of the programme would require a prior staff-level agreement. However, the deal has been delayed since November last year, the longest delay since at least 2008.&nbsp;&nbsp;

Islamabad needs to satisfy IMF on three counts, including&nbsp;the budget for the fiscal year 2023-24 (FY24). However, over a week since the budget was tabled in the National Assembly, IMF remains unconvinced.&nbsp;

(With inputs from agencies)

WATCH WION LIVE HERE:&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Pakistan Prime Minister Shehbaz Sharif is waxing lyrical about China as International Monetary Fund (IMF) continues to delay the release of bailout funding. Sharif hailed Beijing for "outstanding" financial support amid the 'inordinate' delay by the monetary body.

Pakistan Prime Minister Shehbaz Sharif is waxing lyrical about China as International Monetary Fund (IMF) continues to delay the release of bailout funding. Sharif hailed Beijing for "outstanding" financial support amid the 'inordinate' delay by the monetary body. Sharif was speaking after Islamabad signed a memorandum of understanding with Beijing for the 1,200 MW Chashma-5 (C-5) nuclear power project. “It is a great occasion and a great moment between two great friends, China and Pakistan. Hopefully, we will kickstart it without further delay," said Sharif, adding that investment from China, to the tune of $4.8 billion, had sent a “loud and clear” message. Sharif's statement also came in the backdrop of his government announcing that $2.3 billion in Chinese loans would be rolled over before the fiscal year ends on June 30. Our friendship sweeter than sugar and honey: Sharif “Our friendship is higher than the Himalayas, deeper than the deepest ocean, sweeter than sugar and honey, and stronger than iron and steel,” said Sharif. As for receiving the bailout money from IMF, Sharif said Pakistan had met all the terms and conditions and yet was unable to make any progress in the discussions. “We thought this would be done two months ago, three months ago but there has been inordinate delay...China, once again, came to our help and rescue. This is friendship. A friend in need is a friend indeed.” “But at this point and time, at this juncture, Chinese financial support has been outstanding. We are deeply obliged to President Xi Jinping, to the Chinese leadership and to the Chinese finance minister," he added. WATCH | Is Pakistan's economic crisis getting worse? × Pakistan on risk of default Earlier this month, credit ratings agency Moody's said time is running out for Pakistan to convince IMF to release the remaining tranche of the $2.2 billion of the $6.7 billion payout. “There are increasing risks that Pakistan may be unable to complete the IMF program that expires at the end of June,” Grace Lim, a sovereign analyst with Moody's Singapore was quoted as saying by Bloomberg. “Without an IMF program, Pakistan could default, given its very weak reserves," Lim added. The deadline to reach a deal on the financing programme is approaching and the Pakistani government is nowhere near securing the funding. Despite finance minister Ishaq Dar holding several rounds of discussions with the top IMF officials, Islamabad hasn't been able to lock dates for a board meeting, a pre-requisite for the disbursement. Also read | Pakistan running out of time, could default, says credit rating agency Moody's Notably, conducting a board meeting on the review of the programme would require a prior staff-level agreement. However, the deal has been delayed since November last year, the longest delay since at least 2008. Islamabad needs to satisfy IMF on three counts, including the budget for the fiscal year 2023-24 (FY24). However, over a week since the budget was tabled in the National Assembly, IMF remains unconvinced. (With inputs from agencies) WATCH WION LIVE HERE:

'China came to our help...': Pakistan PM waxes lyrical about Beijing as IMF delays bailout package

In a bid to foster efficient and fairer international transactions, the International Monetary Fund (IMF) is actively developing a global platform for Central Bank Digital Currencies (CBDCs), Reuters reported. IMF Managing Director Kristalina Georgieva emphasized the need for interoperability between countries during a conference attended by African central banks in Rabat, Morocco, on Monday. Unlike decentralized cryptocurrencies, CBDCs are digital currencies controlled by central banks.&nbsp;

Georgieva stated that CBDCs should transcend national boundaries and not remain fragmented propositions within individual countries. To achieve this, she said that the IMF has been working towards a common regulatory framework that will enable seamless global interoperability for CBDCs. Failure to establish such a platform could create a void that cryptocurrencies will likely fill, she added.&nbsp;

Backing the 'official' digital currency

Georgieva highlighted that 114 central banks worldwide are already exploring CBDCs, with approximately 10 having made substantial progress in their implementation. She also stressed that the potential of CBDCs would be underutilized if they were solely developed for domestic use. By connecting countries and facilitating cross-border transactions, CBDCs could enhance financial inclusion and reduce the costs of remittances. Currently, the average cost of money transfers amounts to 6.3 per cent, equivalent to $44 billion annually.

Georgieva further emphasized the importance of backing CBDCs with assets. While acknowledging the investment potential of cryptocurrencies backed by assets, she cautioned against speculative investments in cryptocurrencies lacking such support.

Tracking the global rise of CBDC&nbsp;

The rise in CBDC exploration is evident as per US-based&nbsp;think tank Atlantic Council, with 114 countries—representing over 95 percent of global GDP—actively considering or advancing CBDC projects. In contrast, in May 2020, only 35 countries were contemplating CBDCs. Presently, 60 countries are in an advanced exploration phase, including development, pilot testing, or launch.

Eleven nations have already fully launched their CBDCs, with China's pilot project reaching approximately 260 million people and expanding across the country in 2023. The most recent addition to the list is Jamaica, which introduced its own CBDC called JAM-DEX.

The imposition of financial sanctions on Russia has spurred countries to seek alternative payment systems that circumvent the dominance of the U.S. dollar. As a result, there are currently nine cross-border wholesale CBDC tests and seven cross-border retail projects, almost double the number compared to the previous year.

Throughout 2023, more than 20 countries are expected to take significant steps towards piloting their CBDCs. Australia, Thailand, Brazil, India, South Korea, and Russia intend to commence or continue pilot testing next year. Additionally, the European Central Bank (ECB) is likely to initiate its CBDC pilot in the near future.

As of December 2022, all G7 economies have transitioned from research to the development stage of CBDCs. Notably, the New York Federal Reserve's wholesale CBDC experiment, Project Cedar, propelled the United States into the development phase.

Among the G20 countries, 18 have reached the advanced stage of CBDC development, with seven already in the pilot phase. Almost every G20 nation has made substantial progress and allocated significant resources to CBDC projects in the past six months.

(With inputs from agencies)&nbsp;

In a bid to foster efficient and fairer international transactions, the International Monetary Fund (IMF) is actively developing a global platform for Central Bank Digital Currencies (CBDCs), Reuters reported.

In a bid to foster efficient and fairer international transactions, the International Monetary Fund (IMF) is actively developing a global platform for Central Bank Digital Currencies (CBDCs), Reuters reported. IMF Managing Director Kristalina Georgieva emphasized the need for interoperability between countries during a conference attended by African central banks in Rabat, Morocco, on Monday. Unlike decentralized cryptocurrencies, CBDCs are digital currencies controlled by central banks. Georgieva stated that CBDCs should transcend national boundaries and not remain fragmented propositions within individual countries. To achieve this, she said that the IMF has been working towards a common regulatory framework that will enable seamless global interoperability for CBDCs. Failure to establish such a platform could create a void that cryptocurrencies will likely fill, she added. Backing the 'official' digital currency Georgieva highlighted that 114 central banks worldwide are already exploring CBDCs, with approximately 10 having made substantial progress in their implementation. She also stressed that the potential of CBDCs would be underutilized if they were solely developed for domestic use. By connecting countries and facilitating cross-border transactions, CBDCs could enhance financial inclusion and reduce the costs of remittances. Currently, the average cost of money transfers amounts to 6.3 per cent, equivalent to $44 billion annually. Georgieva further emphasized the importance of backing CBDCs with assets. While acknowledging the investment potential of cryptocurrencies backed by assets, she cautioned against speculative investments in cryptocurrencies lacking such support. Tracking the global rise of CBDC The rise in CBDC exploration is evident as per US-based think tank Atlantic Council, with 114 countries—representing over 95 percent of global GDP—actively considering or advancing CBDC projects. In contrast, in May 2020, only 35 countries were contemplating CBDCs. Presently, 60 countries are in an advanced exploration phase, including development, pilot testing, or launch. Eleven nations have already fully launched their CBDCs, with China's pilot project reaching approximately 260 million people and expanding across the country in 2023. The most recent addition to the list is Jamaica, which introduced its own CBDC called JAM-DEX. The imposition of financial sanctions on Russia has spurred countries to seek alternative payment systems that circumvent the dominance of the U.S. dollar. As a result, there are currently nine cross-border wholesale CBDC tests and seven cross-border retail projects, almost double the number compared to the previous year. Throughout 2023, more than 20 countries are expected to take significant steps towards piloting their CBDCs. Australia, Thailand, Brazil, India, South Korea, and Russia intend to commence or continue pilot testing next year. Additionally, the European Central Bank (ECB) is likely to initiate its CBDC pilot in the near future. As of December 2022, all G7 economies have transitioned from research to the development stage of CBDCs. Notably, the New York Federal Reserve's wholesale CBDC experiment, Project Cedar, propelled the United States into the development phase. Among the G20 countries, 18 have reached the advanced stage of CBDC development, with seven already in the pilot phase. Almost every G20 nation has made substantial progress and allocated significant resources to CBDC projects in the past six months. (With inputs from agencies)

IMF backs a global central bank-backed digital currency network

The International Monetary Fund has expressed its disappointment over Pakistan's recent annual budget, calling it "insufficient" to meet the aims of its aid programme for the cash-strapped country.&nbsp;

This is not good news for Pakistan, which is currently in a deadlock over getting more funds from the international fund. &nbsp;The IMF's criticism comes just weeks ahead of the July 31 deadline to review a $6.7 billion loan programme.

Pakistan’s Finance Minister Ishaq Dar on Friday unveiled the budget for the 2023/24 fiscal year, targeting economic growth of 3.5 percent.&nbsp;

Collecting more taxes to fill the government's coffers seemed to be the main budget agenda. The Pakistan government said that it targets total tax revenue of 9.2 trillion Pakistani rupees in 2023-24. For the same fiscal, the government aims to generate non-tax revenue of 3 trillion Pakistani rupees.&nbsp;

However, IMF has criticised the tax policies announced in the latest budget. The international lender said that tax policies "misses an opportunity to broaden the tax base in a more progressive way." The organisation added&nbsp;that the new tax expenditures reduce "the fairness of the tax system."

According to the IMF, the new tax amnesty scheme runs against the organisation's conditionality and good governance agenda. According to the international lender's website,&nbsp;the borrower&nbsp;country needs to adjust its economic policies to overcome the problems that led it to seek financial assistance.&nbsp;

Meanwhile, Pakistan is already talking to bilateral creditors in a bid to change some terms of its repayment structure. This is likely to ease the debt burden on the economy.&nbsp;

Pakistan faces about $22 billion of external debt payments for the next fiscal, which begins on July 1. What will worry government officials is the fact that Pakistan's external debt burden is about five times its foreign reserves.

During the week ending on June 2, Pakistan's total foreign exchange reserves stood at around $3.9 billion, after falling nearly $179 million in a week.&nbsp;

Pakistan bracing for extreme weather events

Meanwhile, the South Asian country is aiming to avoid the repeat of the deadly 2022 flashfloods that killed over 1,700 people.&nbsp;

According to a Bloomberg report, Pakistan’s meteorological department has "predicted that there is a possibility of extreme weather events in the summer of 2023."

The report added that these extreme weather events could lead to riverine floods, flash flooding, landslides, and urban flooding.

Last year's flashfloods led to extensive damage to crops, roads and rail infrastructure, with damages totaling more than $30 billion.

The International Monetary Fund has expressed its disappointment over Pakistan's recent annual budget, calling it "insufficient" to meet the aims of its aid programme for the cash-strapped country.

The International Monetary Fund has expressed its disappointment over Pakistan's recent annual budget, calling it "insufficient" to meet the aims of its aid programme for the cash-strapped country. This is not good news for Pakistan, which is currently in a deadlock over getting more funds from the international fund. The IMF's criticism comes just weeks ahead of the July 31 deadline to review a $6.7 billion loan programme. Pakistan’s Finance Minister Ishaq Dar on Friday unveiled the budget for the 2023/24 fiscal year, targeting economic growth of 3.5 percent. Collecting more taxes to fill the government's coffers seemed to be the main budget agenda. The Pakistan government said that it targets total tax revenue of 9.2 trillion Pakistani rupees in 2023-24. For the same fiscal, the government aims to generate non-tax revenue of 3 trillion Pakistani rupees. However, IMF has criticised the tax policies announced in the latest budget. The international lender said that tax policies "misses an opportunity to broaden the tax base in a more progressive way." The organisation added that the new tax expenditures reduce "the fairness of the tax system." According to the IMF, the new tax amnesty scheme runs against the organisation's conditionality and good governance agenda. According to the international lender's website, the borrower country needs to adjust its economic policies to overcome the problems that led it to seek financial assistance. Meanwhile, Pakistan is already talking to bilateral creditors in a bid to change some terms of its repayment structure. This is likely to ease the debt burden on the economy. Pakistan faces about $22 billion of external debt payments for the next fiscal, which begins on July 1. What will worry government officials is the fact that Pakistan's external debt burden is about five times its foreign reserves. During the week ending on June 2, Pakistan's total foreign exchange reserves stood at around $3.9 billion, after falling nearly $179 million in a week. Pakistan bracing for extreme weather events Meanwhile, the South Asian country is aiming to avoid the repeat of the deadly 2022 flashfloods that killed over 1,700 people. According to a Bloomberg report, Pakistan’s meteorological department has "predicted that there is a possibility of extreme weather events in the summer of 2023." The report added that these extreme weather events could lead to riverine floods, flash flooding, landslides, and urban flooding. Last year's flashfloods led to extensive damage to crops, roads and rail infrastructure, with damages totaling more than $30 billion.

IMF criticises Pakistan's budget, red flags new tax policies

One organization is clearly miffed with the Pakistan budget. That's the international monetary fund, with which Pakistan is in a deadlock over getting more funds. The IMF has called the budget "Insufficient" to meet the aims of its aid program for Pakistan. The criticism comes just weeks ahead of the July 31 deadline to review a 6.7 billion dollar IMF loan program.

IMF miffed with Pakistan budget

Pakistan is on the precipice of default, Moody's has warned. The credit ratings agency said time is running out for Pakistan to convince International Monetary Fund (IMF) to release the remaining tranche of the $2.

Pakistan is on the precipice of default, Moody's has warned. The credit ratings agency said time is running out for Pakistan to convince International Monetary Fund (IMF) to release the remaining tranche of the $2.2 billion of the $6.7 billion payout. “There are increasing risks that Pakistan may be unable to complete the IMF program that expires at the end of June,” Grace Lim, a sovereign analyst with Moody's Singapore was quoted as saying by Bloomberg. “Without an IMF program, Pakistan could default, given its very weak reserves," Lim added. The deadline to reach a deal on the financing programme is approaching and the Pakistani government is nowhere near securing the funding. Despite finance minister Ishaq Dar holding several rounds of discussions with the top IMF officials, Islamabad hasn't been able to lock dates for a board meeting, a pre-requisite for the disbursement. Notably, conducting a board meeting on the review of the programme would require a prior staff-level agreement. However, the deal has been delayed since November last year, the longest delay since at least 2008. Islamabad needs to satisfy IMF on three counts, including the budget for the fiscal year 2023-24 (FY24). However, over a week since the budget was tabled in the National Assembly, IMF remains unconvinced. ALSO READ | Pakistan to share upcoming budget details with IMF to unlock stalled funds IMF remains unconvinced The lender’s resident representative for Pakistan, Esther Ruiz Perez in a statement said the new tax amnesty scheme proposed by the government sets a 'damaging precedent' and goes against the conditionality clauses set under the financing programme. She added that the budget “misses an opportunity to broaden the tax base in a more progressive way, and the long list of new tax expenditures reduces further the fairness of the tax system and undercuts the resources needed for greater support for vulnerable BISP recipients and development spending”. WATCH | Is Pakistan's economic crisis getting worse? × Despite securing financing from UAE and Saudi Arabia to meet the pre-conditions laid down by the monetary body, it hasn't been able to lay its hands on the payout. The cash-strapped country has been looking to secure the IMF package for a long time. According to a report by Reuters, the central bank's foreign reserves have fallen as low as to cover barely a month of controlled imports. The Pakistani economy has slowed, with an estimated 0.29 per cent GDP growth for 2022-2023. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan running out of time, could default, says credit rating agency Moody's

Kristalina Georgieva, managing director of the international monetary fund, said her homeland, Bulgaria, was destined to enter the Eurozone despite political deadlock over the past three years... That deadlock has hampered the nation’s bid to join Europe’s single currency. Bulgaria, along with Croatia, joined the Euro-area’s waiting room, known as ERM-2, in 2020. But unlike Croatia, which adopted the Euro in January, Bulgaria, in recent years, has been plagued by political upheaval.

IMF chief backs Bulgaria's Euro zone integration plan

The International Monetary Fund (IMF) said it was working towards holding a board meeting with Pakistani authorities before a financing programme expires at the end of June.&nbsp;

IMF mission chief for Pakistan Nathan Porter made the statement, adding that the monetary body was keeping an eye on Islamabad's budget for the FY24. &nbsp;

"This engagement will focus on the restoration of foreign exchange proper market functioning, the passage of a FY24 budget consistent with programme goals, and adequate financing," said Porter.

"Overcoming the present economic and financial challenges would require sustained policy efforts and reforms for Pakistan to regain strong and inclusive private-led growth."

Notably, conducting a board meeting on the review of the programme would require a prior staff-level agreement. However, the deal has been delayed since November last year, the longest delay since at least 2008.&nbsp;

<h2>Pakistan willing to share budget details</h2>

Earlier, Pakistan's Finance Minister Ishaq Dar said the government was willing to share details of the upcoming budget with the IMF to unlock stalled funds.&nbsp;

"They have asked for some more things again, we are ready to give that too, they say that give us budget details, we will give it to them," Dar was quoted as saying by Geo TV.&nbsp;

<a href="https://www.wionews.com/south-asia/pakistan-to-share-upcoming-budget-details-with-imf-to-unlock-stalled-funds-597639">ALSO READ |&nbsp;Pakistan to share upcoming budget details with IMF to unlock stalled funds</a>

Pakistan has been negotiating the release of a $1.1 billion tranche of a $6.5 billion bailout package from the IMF to avoid defaulting. Despite securing financing from UAE and Saudi Arabia to meet the pre-conditions laid down by the monetary body, it hasn't been able to lay its hands on the payout.&nbsp;

The cash-strapped country has been looking to secure the IMF package for a long time. According to a report by the news agency Reuters early Monday, the central bank's foreign reserves have fallen as low as to cover barely a month of controlled imports. The Pakistani economy has slowed, with an estimated 0.29% GDP growth for 2022-2023. However, the international lender, for the major part, remained reluctant to open its wallet.

<a href="https://www.wionews.com/videos/is-pakistans-economic-crisis-getting-worse-550882">WATCH |&nbsp;Is Pakistan's economic crisis getting worse?</a>

<iframe allowfullscreen="" autoplay="1" frameborder="0" height="350" src="https://www.wionews.com/videos/is-pakistans-economic-crisis-getting-worse-550882/embed" width="560"></iframe>

<a href="https://www.wionews.com/south-asia/inflation-breaks-fifty-year-record-in-pakistan-touches-high-of-315-567577#" id="jqclosemark">×</a>

&nbsp;

Pakistan, though, received a booster shot of confidence in April when UAE confirmed that it would provide a $1 billion loan to Islamabad. Similarly, Saudi Arabia assured that it would provide $2 billion in loan amount to the distressed country.

Pakistan Prime Minister Shehbaz Sharif at the time&nbsp;said it was Army Chief General Asim Munir who had managed to&nbsp;secure bilateral financing from the UAE and Saudi Arabia to meet the pre-condition.

"Chief of Army Staff General Asim Munir has contributed to the government's efforts to secure funds from Saudi Arabia and the UAE. Hopefully the IMF will now have no excuse to delay the agreement (to release a tranche of USD 1.1 billion)," said Sharif.

<a href="https://www.wionews.com/south-asia/pakistan-army-chief-helped-secure-funds-from-uae-saudi-to-fulfill-imf-pre-condition-says-pm-sharif-582813">ALSO READ |&nbsp;Pakistan Army chief helped secure funds from UAE, Saudi to fulfill IMF pre-condition, says PM Sharif</a>

The statement by Sharif came in stark contrast to the announcement made by the Pakistani Army wherein it said that General Munir had no role in the country's politics.&nbsp;

(With inputs from agencies)

WATCH WION LIVE HERE:&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The International Monetary Fund (IMF) said it was working towards holding a board meeting with Pakistani authorities before a financing programme expires at the end of June.

The International Monetary Fund (IMF) said it was working towards holding a board meeting with Pakistani authorities before a financing programme expires at the end of June. IMF mission chief for Pakistan Nathan Porter made the statement, adding that the monetary body was keeping an eye on Islamabad's budget for the FY24. "This engagement will focus on the restoration of foreign exchange proper market functioning, the passage of a FY24 budget consistent with programme goals, and adequate financing," said Porter. "Overcoming the present economic and financial challenges would require sustained policy efforts and reforms for Pakistan to regain strong and inclusive private-led growth." Notably, conducting a board meeting on the review of the programme would require a prior staff-level agreement. However, the deal has been delayed since November last year, the longest delay since at least 2008. Pakistan willing to share budget details Earlier, Pakistan's Finance Minister Ishaq Dar said the government was willing to share details of the upcoming budget with the IMF to unlock stalled funds. "They have asked for some more things again, we are ready to give that too, they say that give us budget details, we will give it to them," Dar was quoted as saying by Geo TV. ALSO READ | Pakistan to share upcoming budget details with IMF to unlock stalled funds Pakistan has been negotiating the release of a $1.1 billion tranche of a $6.5 billion bailout package from the IMF to avoid defaulting. Despite securing financing from UAE and Saudi Arabia to meet the pre-conditions laid down by the monetary body, it hasn't been able to lay its hands on the payout. The cash-strapped country has been looking to secure the IMF package for a long time. According to a report by the news agency Reuters early Monday, the central bank's foreign reserves have fallen as low as to cover barely a month of controlled imports. The Pakistani economy has slowed, with an estimated 0.29% GDP growth for 2022-2023. However, the international lender, for the major part, remained reluctant to open its wallet. WATCH | Is Pakistan's economic crisis getting worse? × Pakistan, though, received a booster shot of confidence in April when UAE confirmed that it would provide a $1 billion loan to Islamabad. Similarly, Saudi Arabia assured that it would provide $2 billion in loan amount to the distressed country. Pakistan Prime Minister Shehbaz Sharif at the time said it was Army Chief General Asim Munir who had managed to secure bilateral financing from the UAE and Saudi Arabia to meet the pre-condition. "Chief of Army Staff General Asim Munir has contributed to the government's efforts to secure funds from Saudi Arabia and the UAE. Hopefully the IMF will now have no excuse to delay the agreement (to release a tranche of USD 1.1 billion)," said Sharif. ALSO READ | Pakistan Army chief helped secure funds from UAE, Saudi to fulfill IMF pre-condition, says PM Sharif The statement by Sharif came in stark contrast to the announcement made by the Pakistani Army wherein it said that General Munir had no role in the country's politics. (With inputs from agencies) WATCH WION LIVE HERE:

IMF in touch with Pakistan for board meeting before finance deal collapses

Imf, News on Imf, stories on Imf, articles on Imf, Imf stories at Wion, Imf news, Imf latest news