Currently going through a harrowing economic crisis, the Pakistan government on Tuesday announced a slew of plans to reduce energy consumption and in turn reduce the financial load on the exchequer.

Currently going through a harrowing economic crisis, the Pakistan government on Tuesday announced a slew of plans to reduce energy consumption and in turn reduce the financial load on the exchequer. The government proposed to close markets and wedding halls by 8:30 PM and 10 PM respectively to keep the rising debt in check. “The plan will change the overall lifestyle and habit pattern of the nation and save us $26 million (Pkr 60 billion)," Pakistan Defence Minister Khawaja Asif was quoted as saying by Dawn. The radical changes by Asif also included a plan to halt the production of fans running on electricity by July. “Inefficient fans use around 120-130 watts of electricity. Across the globe, fans are available that use 60-80 watts." Similarly, the manufacturing of incandescent bulbs will be stopped from next month. Meanwhile, the government will make the use of conical geysers mandatory and employ alternative use of streetlights to further cut the wage bill. Asif added the country is going through a 'critical' situation and that it could not afford to sustain current levels of power consumption. He also announced plans of implementing a 'work from home policy'. "All government buildings and offices will also reduce the use of energy under the plan, and a policy to work from home will be completed in 10 days," said Asif before adding, "No lights were on in the cabinet meeting today. The meeting was held in full sunlight." WATCH | Gravitas: Pakistan's facing a financial crisis × According to reports quoting Pakistan's power division, the country's circular debt stood at $10.5 billion (Rs2.437 trillion) which was an increase of $815 million (Rs 185 billion) from September last year. Such is the state of the economy that Islamabad is unable to provide basic amenities to a common Pakistani citizen. Notably, people are being forced to store LPG (cooking gas) in plastic balloons and bags as the government fails to address the shortage in supply. In the videos that have gone viral on different social media platforms, citizens in the Khyber Pakhtunkhwa province can be seen storing cooking gas in plastic bags due to shortage. Local media reports have suggested that people in Hangu city of the province have been living without gas for the past two years. WATCH | People in Pakistan store cooking gas in plastic bags amid economic crisis Pakistan's fiscal deficit stood at 1.5 percent of GDP from July-October 2022-23. The country's foreign exchange reserves plummeted to its lowest since April 2014 last month when it shrank by $294 million to $5.8 billion, primarily due to external debt repayment. Consequently, economic pundits have sounded the warning bells that Pakistan might be perilously close to default. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan to close wedding halls, malls early; stop production of bulbs, fans to save money

Just hours after Pakistan's PML-N-led government announced the early closure of malls, markets and wedding halls to save energy, shopkeepers have resoundingly rejected the move.&nbsp;

Slamming the decision as "unilateral" and "counter-offensive" trader organisations in the country asked the government to reconsider.

Watch |&nbsp;Pakistan PM asks govt departments to reduce energy consumptions by 30%

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The All Pakistan Restaurant Association urged the ruling government to reconsider and let restaurants stay open till midnight.

On the other hand, talking to Geo News, &nbsp;Ajmal Baloch the president of All-Pakistan Anjuman Tajiran (APAT) declared that contrary to the National Energy Conservation Plan asking shops to be closed at 8:30 pm, they will stay open till 10 pm, while restaurants will remain open until 11 pm.

Baloch "suggested" that government officials should stop the use of air conditioners and heaters in their offices and that protocols and allowances given to them should be halted. He also proposed that as a means to save electricity street lights should be switched on post 10 pm and that the excessive use of electricity on national highways should be curbed.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-to-close-wedding-halls-malls-early-stop-production-of-bulbs-fans-to-save-money-549205">Pakistan to close wedding halls, malls early; stop production of bulbs, fans to save money</a>

As per reports the business community claims that the decision was reached unilaterally despite previous meetings in which the participating stakeholders had agreed that markets and malls should be allowed to remain open until 9-10 pm, while restaurants and wedding halls should be allowed to operate until 11-12 pm.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/taliban-unable-or-unwilling-to-fulfil-commitments-pakistan-has-right-to-defend-itself-us-549258">Taliban 'unable or unwilling’ to fulfil commitments, Pakistan has right to defend itself: US</a>

On Tuesday the Pakistan government announced the energy conservation plan that enforces market closure at 8:30 pm, while wedding halls are slated to be shut at 10 pm. Reportedly all department of the federal government has also been asked to reduce electricity usage by 30 per cent.

Announcing the decision Pakistan Defence Minister Khawaja Asif said "The cabinet, on the recommendation of the power division, has allowed enforcing the energy-saving plan which will be applied to the entire country."

(With inputs from agencies)

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Just hours after Pakistan's PML-N-led government announced the early closure of malls, markets and wedding halls to save energy, shopkeepers have resoundingly rejected the move.

Just hours after Pakistan's PML-N-led government announced the early closure of malls, markets and wedding halls to save energy, shopkeepers have resoundingly rejected the move. Slamming the decision as "unilateral" and "counter-offensive" trader organisations in the country asked the government to reconsider. Watch | Pakistan PM asks govt departments to reduce energy consumptions by 30% The All Pakistan Restaurant Association urged the ruling government to reconsider and let restaurants stay open till midnight. On the other hand, talking to Geo News, Ajmal Baloch the president of All-Pakistan Anjuman Tajiran (APAT) declared that contrary to the National Energy Conservation Plan asking shops to be closed at 8:30 pm, they will stay open till 10 pm, while restaurants will remain open until 11 pm. Baloch "suggested" that government officials should stop the use of air conditioners and heaters in their offices and that protocols and allowances given to them should be halted. He also proposed that as a means to save electricity street lights should be switched on post 10 pm and that the excessive use of electricity on national highways should be curbed. Also read | Pakistan to close wedding halls, malls early; stop production of bulbs, fans to save money As per reports the business community claims that the decision was reached unilaterally despite previous meetings in which the participating stakeholders had agreed that markets and malls should be allowed to remain open until 9-10 pm, while restaurants and wedding halls should be allowed to operate until 11-12 pm. Also read | Taliban 'unable or unwilling’ to fulfil commitments, Pakistan has right to defend itself: US On Tuesday the Pakistan government announced the energy conservation plan that enforces market closure at 8:30 pm, while wedding halls are slated to be shut at 10 pm. Reportedly all department of the federal government has also been asked to reduce electricity usage by 30 per cent. Announcing the decision Pakistan Defence Minister Khawaja Asif said "The cabinet, on the recommendation of the power division, has allowed enforcing the energy-saving plan which will be applied to the entire country." (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 traders reject govt's energy saving plan, say officials should stop use of ACs, heaters in offices

As Pakistan's fiscal deficit widened by more than 115 per cent between July and October this year, the country's finance ministry forecast&nbsp;that inflation in the South Asian nation will remain between 21 to 23 per cent.&nbsp;"For FY23, economic growth is likely to remain below the budgeted target due to the devastation caused by the floods. This combination of low growth, high inflation and low levels of official foreign exchange reserves are the key challenges for policymakers," Pakistan's Ministry of Finance said on Friday in its Monthly Economic Update and Outlook report, reported the Dawn.

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/with-uncertain-saudi-help-and-imf-loan-pakistans-economic-woes-hit-new-low-543222">With uncertain Saudi help and IMF loan, Pakistan's economic woes hit new low</a>

Pakistan’s MoF’s Economic Adviser’s Wing (EAW) prepared a report which stated that from July-October 2022, the government’s fiscal deficit stood at 1.5 per cent of the GDP (Rs 1.266 trillion) compared to 0.9 per cent of the GDP (Rs 587bn) in 2021.&nbsp;Amid such financial woes, the Pakistani government faces the challenge of providing relief to people in flood-hit areas.

"The EAW report said the average Consumer Price Index (CPI) in the first five months (July-November) of FY23 remained at 25.1 per cent compared to 9.3 per cent in the same period last year. It is expected that CPI inflation will remain in the range of 21-23 per cent,” said the Dawn report.

WATCH |&nbsp;<a href="https://www.wionews.com/videos/wion-business-news-pakistan-gdp-growth-to-slip-from-5-to-3-amid-floods-515286">WION Business News: Pakistan GDP growth to slip from 5% to 3% amid floods</a>

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"The current account posted a deficit of $3.1bn for July-November FY23 against a deficit of $7.2bn last year, mainly due to an improvement in the trade balance," it added.

The current account deficit shrank to $276 million in November from $569m in October.

Will Pakistan default on loan payments?

Despite such a downcast economic description of the country at present, Pakistan’s Finance Minister Ishaq Dar on Friday said that “there is no way Pakistan is going to default," referring to a number of loans that the country has committed in past to pay back to the multilateral financial institutions and countries.&nbsp;

"We are in a tight position. We don’t have USD 24bn in foreign exchange reserves that our (last) government left in 2016. But that’s not my fault. It’s the system’s fault," Darr told investors at a ceremony to mark the listing of Pakistan’s first developmental real estate investment trust scheme on the stock exchange.

A recent Dawn report&nbsp;quoted the State Bank of Pakistan saying that the incumbent Pakistan government avoided focusing on growth for the fiscal year FY23, resulting in a drop in growth.

Despite sacrificing growth, Pakistan’s government has not been able to achieve price stability and financial stability, the bank said in its annual statement.

(With inputs from agencies)

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As Pakistan's fiscal deficit widened by more than 115 per cent between July and October this year, the country's finance ministry forecast that inflation in the South Asian nation will remain between 21 to 23 per cent.

As Pakistan's fiscal deficit widened by more than 115 per cent between July and October this year, the country's finance ministry forecast that inflation in the South Asian nation will remain between 21 to 23 per cent. "For FY23, economic growth is likely to remain below the budgeted target due to the devastation caused by the floods. This combination of low growth, high inflation and low levels of official foreign exchange reserves are the key challenges for policymakers," Pakistan's Ministry of Finance said on Friday in its Monthly Economic Update and Outlook report, reported the Dawn. ALSO READ | With uncertain Saudi help and IMF loan, Pakistan's economic woes hit new low Pakistan’s MoF’s Economic Adviser’s Wing (EAW) prepared a report which stated that from July-October 2022, the government’s fiscal deficit stood at 1.5 per cent of the GDP (Rs 1.266 trillion) compared to 0.9 per cent of the GDP (Rs 587bn) in 2021. Amid such financial woes, the Pakistani government faces the challenge of providing relief to people in flood-hit areas. "The EAW report said the average Consumer Price Index (CPI) in the first five months (July-November) of FY23 remained at 25.1 per cent compared to 9.3 per cent in the same period last year. It is expected that CPI inflation will remain in the range of 21-23 per cent,” said the Dawn report. WATCH | WION Business News: Pakistan GDP growth to slip from 5% to 3% amid floods × "The current account posted a deficit of $3.1bn for July-November FY23 against a deficit of $7.2bn last year, mainly due to an improvement in the trade balance," it added. The current account deficit shrank to $276 million in November from $569m in October. Will Pakistan default on loan payments? Despite such a downcast economic description of the country at present, Pakistan’s Finance Minister Ishaq Dar on Friday said that “there is no way Pakistan is going to default," referring to a number of loans that the country has committed in past to pay back to the multilateral financial institutions and countries. "We are in a tight position. We don’t have USD 24bn in foreign exchange reserves that our (last) government left in 2016. But that’s not my fault. It’s the system’s fault," Darr told investors at a ceremony to mark the listing of Pakistan’s first developmental real estate investment trust scheme on the stock exchange. A recent Dawn report quoted the State Bank of Pakistan saying that the incumbent Pakistan government avoided focusing on growth for the fiscal year FY23, resulting in a drop in growth. Despite sacrificing growth, Pakistan’s government has not been able to achieve price stability and financial stability, the bank said in its annual statement. (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 faces grim economic forecast amid loan pay back deadlines

Pakistan's central bank criticised the Shehbaz Sharif government for prioritising growth at the cost of price and financial stability.&nbsp;The State Bank of Pakistan in its annual report said that such economies are not able to sustain growth and face financial crisis, reported the Dawn.&nbsp;&nbsp;

The Sharif government's focus&nbsp;on growth for the fiscal year 2023 might result in a fall in growth overall as it failed to bring price stability with financial stability, it said.&nbsp;

<a href="https://www.wionews.com/south-asia/pakistan-punjab-governor-denotifies-cm-with-immediate-effect-545813">Also read |&nbsp;Pakistan: Punjab governor denotifies CM Elahi with 'immediate effect', Lahore HC reinstates him</a>

In its report, 'State of the Economy of the fiscal year FY22',&nbsp;the State Bank of Pakistan anticipated that the economic growth for FY23 will be lower than what was expected. It added that the growth rate will remain less than three or four per cent.

The fall in growth has resulted in mass layoffs of hundreds of people from the trade and industrial sectors. In these sectors, it is hard to survive under the focus set by the government.&nbsp;

The inflation in the South Asian country has been nearly 25 per cent in the last five months, worsening aspects of growth and stability.&nbsp;

<a href="https://www.wionews.com/world/watch-bilawal-bhutto-claims-made-to-work-like-donkey-on-foreign-trips-546112">Also read |&nbsp;WATCH| Bilawal Bhutto claims ‘made to work like donkey’ on foreign trips</a>

The SBP added that economies that prioritise 'price stability' tend to have lower inflation as well as less volatility&nbsp;in both inflation and growth.&nbsp;

However, the report further stated that estimating the growth of side supplies like the price of energy and food is hard to predict as they can be driven by both national and international developments.&nbsp;

The document said, "In Pakistan, the coverage and timeliness of information need improvement and there are often large revisions to 'annual' GDP growth estimates relative to provisional estimates. These, together with scarce availability of high-frequency real sector data, complicate forecasting and real-time decision making."

(With inputs from agencies)

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Pakistan's central bank criticised the Shehbaz Sharif government for prioritising growth at the cost of price and financial stability. The State Bank of Pakistan in its annual report said that such economies are not able to sustain growth and face financial crisis, reported the Dawn.

Pakistan's central bank criticised the Shehbaz Sharif government for prioritising growth at the cost of price and financial stability. The State Bank of Pakistan in its annual report said that such economies are not able to sustain growth and face financial crisis, reported the Dawn. The Sharif government's focus on growth for the fiscal year 2023 might result in a fall in growth overall as it failed to bring price stability with financial stability, it said. Also read | Pakistan: Punjab governor denotifies CM Elahi with 'immediate effect', Lahore HC reinstates him In its report, 'State of the Economy of the fiscal year FY22', the State Bank of Pakistan anticipated that the economic growth for FY23 will be lower than what was expected. It added that the growth rate will remain less than three or four per cent. The fall in growth has resulted in mass layoffs of hundreds of people from the trade and industrial sectors. In these sectors, it is hard to survive under the focus set by the government. The inflation in the South Asian country has been nearly 25 per cent in the last five months, worsening aspects of growth and stability. Also read | WATCH| Bilawal Bhutto claims ‘made to work like donkey’ on foreign trips The SBP added that economies that prioritise 'price stability' tend to have lower inflation as well as less volatility in both inflation and growth. However, the report further stated that estimating the growth of side supplies like the price of energy and food is hard to predict as they can be driven by both national and international developments. The document said, "In Pakistan, the coverage and timeliness of information need improvement and there are often large revisions to 'annual' GDP growth estimates relative to provisional estimates. These, together with scarce availability of high-frequency real sector data, complicate forecasting and real-time decision making." (With inputs from agencies) WATCH WION LIVE HERE

Pak central bank slams Shehbaz govt’s focus on growth over financial stability, warns of economic crisis ahead

Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and devaluation of Pakistani rupee has hit a new low. Pakistan's finance minister Mohammad Ishaq Dar admitted on Wednesday that the country is facing a massive shortage of US dollars amid "market abuses" of foreign currency within Pakistan. At the same time, Islamabad is seeking Saudi Arabia's financial assistance alongside the passage of $1.18bn in IMF loans.

The country recently struggled to pay the salaries to staff of some of its missions abroad, citing "fiscal crunch" and "shortage of dollars".&nbsp;

Up to four months of dues were left unpaid to Pakistan’s missions abroad, which were eventually released on December 14.&nbsp;

We don't have luxuries like England, US: Pakistan finance minister

Pakistan finance minister Mohammad Ishaq Dar said that central banks around the world including England, Bangladesh and India have intervened in the market and disbursed billions of dollars, a luxury which Pakistan does not have.&nbsp;

WATCH |&nbsp;<a href="https://www.wionews.com/videos/wion-business-news-pakistan-gdp-growth-to-slip-from-5-to-3-amid-floods-515286">WION Business News: Pakistan GDP growth to slip from 5% to 3% amid floods</a>

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"We have to make sure market-abuses must be checked,"&nbsp;he said. "I think that the multilaterals have to understand — we are neither the Bank of England nor the US Federal Reserves. We have foreign exchange constraints."

Pakistan's Current Account recorded a deficit of 2.3bn in Sep 2022, according to data published by State Bank of Pakistan.&nbsp;

'Positive vibes from Saudi' on financial help: Pakistan finance minister

Earlier on Tuesday, Pakistan finance minister reiterated that the country is seeking financial help from Saudi Arabia that will include doubling the current deferred oil payment facility given by Riyadh to $2.4 billion per year.

“I have discussed both things (financial help and oil facilities) with the Saudi finance minister, and there are positive vibes from there. They said they will support us,” Dar told Pakistani media.&nbsp;

Pakistan forex reserves at record low

Pakistan's foreign exchange reserves fell another $784 million to a precarious level of $6.715 billion as of December 2, 2022, data released by the central bank showed last Thursday. This is the lowest level of forex reserves since January 2019.

Pakistan entered a $6bn IMF credit line programme in 2019, which was increased to $7bn earlier this year. The IMF so far has not approved the release of $1.18bn in credit for 2022, further burdening the already crumbling economic health of Pakistan.

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Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and devaluation of Pakistani rupee has hit a new low. Pakistan's finance minister Mohammad Ishaq Dar admitted on Wednesday that the country is facing a massive shortage of US dollars amid "market abuses" of foreign currency within Pakistan.

Pakistan's economic turmoil stoked by International Monetary Fund's loan trance and devaluation of Pakistani rupee has hit a new low. Pakistan's finance minister Mohammad Ishaq Dar admitted on Wednesday that the country is facing a massive shortage of US dollars amid "market abuses" of foreign currency within Pakistan. At the same time, Islamabad is seeking Saudi Arabia's financial assistance alongside the passage of $1.18bn in IMF loans. The country recently struggled to pay the salaries to staff of some of its missions abroad, citing "fiscal crunch" and "shortage of dollars". Up to four months of dues were left unpaid to Pakistan’s missions abroad, which were eventually released on December 14. We don't have luxuries like England, US: Pakistan finance minister Pakistan finance minister Mohammad Ishaq Dar said that central banks around the world including England, Bangladesh and India have intervened in the market and disbursed billions of dollars, a luxury which Pakistan does not have. WATCH | WION Business News: Pakistan GDP growth to slip from 5% to 3% amid floods × "We have to make sure market-abuses must be checked," he said. "I think that the multilaterals have to understand — we are neither the Bank of England nor the US Federal Reserves. We have foreign exchange constraints." Pakistan's Current Account recorded a deficit of 2.3bn in Sep 2022, according to data published by State Bank of Pakistan. 'Positive vibes from Saudi' on financial help: Pakistan finance minister Earlier on Tuesday, Pakistan finance minister reiterated that the country is seeking financial help from Saudi Arabia that will include doubling the current deferred oil payment facility given by Riyadh to $2.4 billion per year. “I have discussed both things (financial help and oil facilities) with the Saudi finance minister, and there are positive vibes from there. They said they will support us,” Dar told Pakistani media. Pakistan forex reserves at record low Pakistan's foreign exchange reserves fell another $784 million to a precarious level of $6.715 billion as of December 2, 2022, data released by the central bank showed last Thursday. This is the lowest level of forex reserves since January 2019. Pakistan entered a $6bn IMF credit line programme in 2019, which was increased to $7bn earlier this year. The IMF so far has not approved the release of $1.18bn in credit for 2022, further burdening the already crumbling economic health of Pakistan. 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.

With uncertain Saudi help and IMF loan, Pakistan's economic woes hit new low

Pakistan will repay a $1 billion international bond three days before its due date, said the State Bank of Pakistan’s (SBP) governor, Jameel Ahmad, on Friday. The cash-strapped country is amid an economic crisis and reeling from the devastating floods that killed thousands of people. Therefore, there has been some uncertainty about Islamabad’s ability to meet external financing obligations.&nbsp;

The bond repayment reportedly matures on December 5, the funding for which has been lined up from multilateral and bilateral sources that would ensure repayments without affecting the country’s foreign exchange reserves, said Ahmad to two analysts present, reported Reuters. He added that he also expects that external financing requirements would be met on time due to inflows from international lenders.

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/pakistans-economy-continues-to-struggle-amid-floods-and-falling-currency-518618">Pakistan's economy continues to struggle amid floods and falling currency</a>

As of November 18, Pakistan’s reserves with the central bank were $7.8 billion which despite payments of at least $1.8 billion remained stable. Whereas an additional inflow worth $500 million was expected next week from Asian Infrastructure Investment Bank, said the SBP governor. Reportedly, he also said that he is confident about a “much higher” reserve figure by the end of FY 2023 in June.&nbsp;

Earlier this week, the International Monetary Fund (IMF) said that the finalisation of Pakistan’s recovery plans after the devastating floods is essential to support the discussions as well as continued financial support from multilateral and bilateral partners. This comes amid the country’s fragile economy which deals with soaring inflation with the balance of payment being one of the key focuses.&nbsp;

ALSO WATCH |&nbsp;<a href="https://www.wionews.com/videos/gravitas-pakistans-facing-a-financial-crisis-537529">Gravitas: Pakistan's facing a financial crisis</a>

In a bid to control the rise in prices, the SBP also raised its key policy rate by 100 basis points to 16 per cent in an unprecedented move on Friday, said local media reports. While Pakistan is also a part of the IMF’s bailout programme since 2019, the date of the ninth review and release of funds is still pending.&nbsp;

ALSO READ | <a href="https://www.wionews.com/south-asia/lt-gen-asim-munir-named-pakistans-new-army-chief-536997">Lt Gen Asim Munir, due to retire on Nov 27, named Pakistan’s new army chief</a>&nbsp;

Part of the economic crisis also stemmed from Pakistan’s political instability caused by the delay in the appointment of a new army chief which is now resolved giving some confidence to the business community in the country.&nbsp;

(With inputs from agencies)&nbsp; 
&nbsp;

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Pakistan will repay a $1 billion international bond three days before its due date, said the State Bank of Pakistan’s (SBP) governor, Jameel Ahmad, on Friday. The cash-strapped country is amid an economic crisis and reeling from the devastating floods that killed thousands of people.

Pakistan will repay a $1 billion international bond three days before its due date, said the State Bank of Pakistan’s (SBP) governor, Jameel Ahmad, on Friday. The cash-strapped country is amid an economic crisis and reeling from the devastating floods that killed thousands of people. Therefore, there has been some uncertainty about Islamabad’s ability to meet external financing obligations. The bond repayment reportedly matures on December 5, the funding for which has been lined up from multilateral and bilateral sources that would ensure repayments without affecting the country’s foreign exchange reserves, said Ahmad to two analysts present, reported Reuters. He added that he also expects that external financing requirements would be met on time due to inflows from international lenders. ALSO READ | Pakistan's economy continues to struggle amid floods and falling currency As of November 18, Pakistan’s reserves with the central bank were $7.8 billion which despite payments of at least $1.8 billion remained stable. Whereas an additional inflow worth $500 million was expected next week from Asian Infrastructure Investment Bank, said the SBP governor. Reportedly, he also said that he is confident about a “much higher” reserve figure by the end of FY 2023 in June. Earlier this week, the International Monetary Fund (IMF) said that the finalisation of Pakistan’s recovery plans after the devastating floods is essential to support the discussions as well as continued financial support from multilateral and bilateral partners. This comes amid the country’s fragile economy which deals with soaring inflation with the balance of payment being one of the key focuses. ALSO WATCH | Gravitas: Pakistan's facing a financial crisis In a bid to control the rise in prices, the SBP also raised its key policy rate by 100 basis points to 16 per cent in an unprecedented move on Friday, said local media reports. While Pakistan is also a part of the IMF’s bailout programme since 2019, the date of the ninth review and release of funds is still pending. ALSO READ | Lt Gen Asim Munir, due to retire on Nov 27, named Pakistan’s new army chief Part of the economic crisis also stemmed from Pakistan’s political instability caused by the delay in the appointment of a new army chief which is now resolved giving some confidence to the business community in the country. (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.

Cash-strapped Pakistan to repay $1 billion ahead of deadline, says SBP governor

The International Monetary Fund said on Sunday that the global economic outlook is even gloomier than projected last month. It cited a steady worsening in purchasing manager surveys in recent months

WION Business News | Global economic outlook getting `gloomier`, says IMF

The Pakistani economy has been going through a tough time with the currency hitting an all-time low on Wednesday. The Pakistani Rupee is currently valued at Rs 240 against the US dollar – the worst performing currency in the emerging markets in the aftermath of the devastation caused by the floods. &nbsp;

The currency has been losing value consistently for the past two weeks and even the loan tranche of USD 1.16 billion from the International Monetary Fund (IMF) has not improved the situation.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/us-federal-reserve-hikes-interest-rates-to-highest-level-since-2008-518597">US Federal Reserve hikes interest rates to highest level since 2008</a>

The floods, which claimed more than 1500 lives, were also extremely catastrophic to the economy of the country. The rehabilitation process – both concerning the citizens as well as infrastructure – has added to the heavy debt burden and the floods also caused damages worth billions of dollars.&nbsp;

Following the floods, Pakistan also experienced massive inflation with food prices skyrocketing all around the country. In August, Finance Minister Miftah Ismail told Reuters that the prices of onion have grown almost five times due to the floods and the same was true for a number of food items.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/doj-can-resume-review-of-documents-found-in-donald-trumps-residence-says-us-court-518587" hreflang="en">DOJ can resume review of documents found in Donald Trump's residence, says US court</a>

The other reason behind the rising prices is the number of crops which were destroyed in the natural disaster. The DW reported the country’s trade deficit is likely to go up to 3.5 per cent of its Gross Domestic Product (GDP) and it will be importing more tomatoes, rice, wheat, cotton and other items.&nbsp;

There have been a lot of foreign aid from various sources including the IMF in the aftermath of the disaster but even that will not be enough for the country to mount a comeback from the ongoing crisis as they will need $33.5 billion in the year through June 2023 to maintain their imports. &nbsp;

The Pakistani economy has been going through a tough time with the currency hitting an all-time low on Wednesday. The Pakistani Rupee is currently valued at Rs 240 against the US dollar – the worst performing currency in the emerging markets in the aftermath of the devastation caused by the floods.

The Pakistani economy has been going through a tough time with the currency hitting an all-time low on Wednesday. The Pakistani Rupee is currently valued at Rs 240 against the US dollar – the worst performing currency in the emerging markets in the aftermath of the devastation caused by the floods. The currency has been losing value consistently for the past two weeks and even the loan tranche of USD 1.16 billion from the International Monetary Fund (IMF) has not improved the situation. Also read | US Federal Reserve hikes interest rates to highest level since 2008 The floods, which claimed more than 1500 lives, were also extremely catastrophic to the economy of the country. The rehabilitation process – both concerning the citizens as well as infrastructure – has added to the heavy debt burden and the floods also caused damages worth billions of dollars. Following the floods, Pakistan also experienced massive inflation with food prices skyrocketing all around the country. In August, Finance Minister Miftah Ismail told Reuters that the prices of onion have grown almost five times due to the floods and the same was true for a number of food items. Also read | DOJ can resume review of documents found in Donald Trump's residence, says US court The other reason behind the rising prices is the number of crops which were destroyed in the natural disaster. The DW reported the country’s trade deficit is likely to go up to 3.5 per cent of its Gross Domestic Product (GDP) and it will be importing more tomatoes, rice, wheat, cotton and other items. There have been a lot of foreign aid from various sources including the IMF in the aftermath of the disaster but even that will not be enough for the country to mount a comeback from the ongoing crisis as they will need $33.5 billion in the year through June 2023 to maintain their imports.

Pakistan's economy continues to struggle amid floods and falling currency

Former Pakistan Prime Minister Imran Khan on Saturday in a public meeting once again targeted Prime Minister Shehbaz Sharif and his coalition government by stating that the World Bank was not willing to give financial aid to it.

Former Pakistan Prime Minister Imran Khan on Saturday in a public meeting once again targeted Prime Minister Shehbaz Sharif and his coalition government by stating that the World Bank was not willing to give financial aid to it. Reportedly, Imran was speaking at a rally in Khyber-Pakhtunkhwa's (K-P) Charsadda district where he called Sharif's government, an 'imported government' and warned it from trying to stop the 'peaceful revolution'. “If you stop this ‘peaceful revolution’ then as World Bank has predicted the game [situation] would get out of everyone’s hand. Let the change come through vote,” said Imran. “No matter what you do you cannot win this match you have already lost this match...economy is sinking fast and the world is not willing to give them [government] financial aid for flood victims.” he further added. Moreover, during his speech, Imran played a clip of Shehbaz where he can be heard saying that 'even friendly countries now look at Pakistan as country with begging bowl'. چارسدہ کا آج کا جلسہ جس میں ایک مرتبہ پھرعوامی سمندر نےمیری حقیقی آزادی کی تحریک پر لبیک کہا۔جس حقیقت میں اب کسی قسم کا ابہام باقی نہیں وہ یہ ہے کہ پاکستان ایک انقلاب کو ابھرتےدیکھ رہاہے۔ہم سب کو یقینی بنانا چاہئیے کہ یہ بیلٹ باکس کے ذریعے پرامن طریقے سے آئے! pic.twitter.com/DOTcLgFwEI — Imran Khan (@ImranKhanPTI) September 17, 2022 × As reported by WION, ever since Pakistan's economic condition worsened after the coalition government came to power, Imran has been batting on the front foot to stage a comeback. Khan and his legion of supporters have mounted an aggressive attack on Shehbaz's government, especially in the backdrop of floods that have submerged a third of the country. Read more: Critique on Imran Khan following statement alleging that govt wants to bring an army chief of their choice After Shehbaz fumbled with the earpiece at the SCO summit, opposite Russian President Vladimir Putin, Khan's supporters had a field day on Twitter mocking the PM. "This Crime Minister is a constant embarrassment for Pakistan. Even President Putin had to eventually just laugh at this clumsy man. Pathetic. This is what conspirators wanted? To have by design a politician who would not only be a crook but also a pathetic apology for a PM?" tweeted one of Imran's party members. This CrimeMinister is a constant embarrassment for Pakistan. Even President Putin had to eventually just laugh at this clumsy man. Pathetic. This is what conspirators wanted? To have by design a politician who would not only be a crook but also a pathetic apology for a PM? pic.twitter.com/mmEhLY7RZg — Shireen Mazari (@ShireenMazari1) September 15, 2022 × Before that, the PTI chief had issued a warning to the government that he would become more dangerous if he was sent to jail. "They have been trying to put me in jail for long now. I will be more dangerous if they send me to jail," said Imran Khan before appearing for a court hearing. Read more: 'I will be more dangerous, if jailed', former Pakistan PM Imran Khan issues a warning (With inputs from agencies) WATCH WION LIVE HERE:

'You can't stop this revolution', Imran Khan challenges Shehbaz Sharif's 'imported' government

Pakistan Prime Minister Shehbaz Sharif lamented about his cash-strapped nation's bleak reality once again. While addressing a convention, Pakistan PM called his country 'a beggar state' and talked about its crumbling economy. He said, 'Pakistan is facing a challenging situations and even friendly nations look at us like beggars.'

'Even friendly nations look at us like beggars,' states Pakistan PM Shehbaz Sharif

As Pakistan reels under the double whammy of climate catastrophe and economic downturn, opposition leader Imran Khan is expected to give a call for a march on Islamabad, once the floods recede, according to former interior minister Sheikh Rashid Ahmed.

As Pakistan reels under the double whammy of climate catastrophe and economic downturn, opposition leader Imran Khan is expected to give a call for a march on Islamabad, once the floods recede, according to former interior minister Sheikh Rashid Ahmed. Reportedly, Ahmed took to Twitter on Sunday to lash the current government and announce the decision of the Pakistan Tehreek-e-Insaf (PTI) chief. “The IMF struck yet another deal with the government for recovery of Rs 608 billion. First they robbed the national treasury and now they are looking to pick people’s pockets,” tweeted Rashid. The Awami Muslim League (AML) chief further asserted that floods had opened the eyes of the people of Sindh and dented the reputation of the government. “The floods have opened the eyes of the people of Sindh […] the floods have destroyed the Pakistan Democratic Movement’s (PDM) reputation. How will other countries give aid when the people of the country refuse to give money to money launderers?” آئی ایم ایف نےحکومت کے ساتھ608ارب وصولی کامزید معاہدہ کیا ہے،پہلے قومی خزانے پر ڈاکہ ڈالا اب غریب کی جیب پر ڈاکہ ڈال رہے ہیں،6مہینوں میں حکومت کاالٹراساؤنڈ ہوگیا ہے،سندھ میں سیلاب نےلوگوں کی آنکھیں کھول دیں،5ستمبربروزسوموارجسٹس امجدرفیق کی عدالت لاہورہائی کورٹ میں پیش ہوں گا — Sheikh Rashid Ahmed (@ShkhRasheed) September 4, 2022 × Ahmed signed off by stating people were not able to bear the burden of increased prices of commodities and that “Imran Khan will give the call for Islamabad once the floods recede.” Read more: Sacrifice for greater good: Pakistan breaches largest freshwater lake to avoid overflow, save lives Ahmed's statements come a day after Imran Khan, in a public rally in Bahawalpur had warned Shehbaz Sharif's government to stop coming after his party and members. Shooting an ultimatum, Imran said that if the government did not stop using 'pressure tactics', he will march on Islamabad and the ruling class will not have any place to hide. As reported extensively by WION, Imran Khan and his coterie of leaders have been embroiled in numerous police and judicial cases as the ruling coalition attempts to cull dissent. Notably, Pakistan's anti-terrorism court last week extended Imran Khan's pre-arrest bail for two weeks on terrorism charges relating to a speech. Read more: Pakistan anti-terror court extends Imran Khan's bail on terrorism charges until September 12 The charges against Khan are related to what police said was a threat to the Islamabad police chief and a female judge after Khan spoke about police torture of an aide who faces sedition charges for allegedly inciting mutiny in the military. Khan, however, said that his words were taken out of context and he didn't threaten anyone. (With inputs from agencies) WATCH WION LIVE HERE:

Imran Khan to march on Islamabad once floods ease, says Sheikh Rashid

Pakistan is going through a major catastrophe at the moment. The incessant monsoon rains have caused devastating floods across the landscape. Now, a report&nbsp;by&nbsp;JS Global Research has stated that the floods may cost over $4 billion loss to the country, already battling dwindling finances.

“Based on our preliminary estimates, the current account deficit may increase by $4.4 billion (1 per cent of GDP) – assuming no counter-measures are taken, while around 30 per cent of the CPI (Consumer Price Index) basket is exposed to the threat of higher prices,” read the report.&nbsp;

In pics |&nbsp;<a href="https://www.wionews.com/photos/in-pics-floods-in-pakistan-claim-982-lives-army-called-in-to-help-in-rescue-operations-510603">Floods in Pakistan claim 982 lives, army called in to help in rescue operations</a>

Moreover, the report cites that owing to the floods, the Pakistani government may be forced to import cotton worth $2.6 billion, in addition to wheat worth $900 million. Add textile losses of around $1 billion and the total comes around to $4.5 billion which is approximately 1.08 per cent of Pakistan's GDP.&nbsp;

“Cotton sowing has reportedly been destroyed to a large extent (in Sindh).&nbsp;Assuming the country requires import of cotton to fulfill 80 per cent&nbsp;of demand this year, the import bill will likely exceed USD 4.4 billion (+144 per cent,&nbsp;year-on-year) in FY23," the report added.&nbsp;

Meanwhile, talking about the impact of damaged rice crops, the study added, "Damage to rice crops will result in loss of exports, in addition to a slight reduction in GDP growth and higher CPI inflation.”

<a href="https://www.wionews.com/videos/gravitas-900-killed-1300-injured-floods-devastate-pakistan-510209">WATCH |&nbsp;Gravitas | 900 killed, 1300 injured: Floods devastate Pakistan</a>

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Pakistan's economy is in doldrums

As reported extensively by WION, Pakistan's economy is under tremendous debt and needs cash liquidity on an almost urgent basis.&nbsp;

According to several estimates, India's neighbouring country needs at least $41 billion in the next 12 months to fund debt repayments and boost foreign exchange reserves that have fallen to a lowly sum of $7.8 billion.

If the&nbsp;$4 billion loss, as reported by the research materialises, Pakistan could be staring at a bleak economic&nbsp;future.&nbsp;

Read more:<a href="https://www.wionews.com/south-east-asia/pakistan-pm-shehbaz-sharif-visits-qatar-to-raise-funds-for-his-cash-strapped-country-509669">&nbsp;Pakistan PM Shehbaz Sharif visits Qatar to raise funds for his cash-strapped country</a>

(With inputs from agencies)

WATCH WION LIVE HERE:&nbsp;

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&nbsp;

Pakistan is going through a major catastrophe at the moment. The incessant monsoon rains have caused devastating floods across the landscape. Now, a report by JS Global Research has stated that the floods may cost over $4 billion loss to the country, already battling dwindling finances.

Pakistan is going through a major catastrophe at the moment. The incessant monsoon rains have caused devastating floods across the landscape. Now, a report by JS Global Research has stated that the floods may cost over $4 billion loss to the country, already battling dwindling finances. “Based on our preliminary estimates, the current account deficit may increase by $4.4 billion (1 per cent of GDP) – assuming no counter-measures are taken, while around 30 per cent of the CPI (Consumer Price Index) basket is exposed to the threat of higher prices,” read the report. In pics | Floods in Pakistan claim 982 lives, army called in to help in rescue operations Moreover, the report cites that owing to the floods, the Pakistani government may be forced to import cotton worth $2.6 billion, in addition to wheat worth $900 million. Add textile losses of around $1 billion and the total comes around to $4.5 billion which is approximately 1.08 per cent of Pakistan's GDP. “Cotton sowing has reportedly been destroyed to a large extent (in Sindh). Assuming the country requires import of cotton to fulfill 80 per cent of demand this year, the import bill will likely exceed USD 4.4 billion (+144 per cent, year-on-year) in FY23," the report added. Meanwhile, talking about the impact of damaged rice crops, the study added, "Damage to rice crops will result in loss of exports, in addition to a slight reduction in GDP growth and higher CPI inflation.” WATCH | Gravitas | 900 killed, 1300 injured: Floods devastate Pakistan × Pakistan's economy is in doldrums As reported extensively by WION, Pakistan's economy is under tremendous debt and needs cash liquidity on an almost urgent basis. According to several estimates, India's neighbouring country needs at least $41 billion in the next 12 months to fund debt repayments and boost foreign exchange reserves that have fallen to a lowly sum of $7.8 billion. If the $4 billion loss, as reported by the research materialises, Pakistan could be staring at a bleak economic future. Read more: Pakistan PM Shehbaz Sharif visits Qatar to raise funds for his cash-strapped country (With inputs from agencies) WATCH WION LIVE HERE:

Already financially depleted, Pakistan to face additional $4 billion loss due to floods: Report

Pakistan Prime Minister Shehbaz Sharif is on a two-day trip to Qatar. The Pakistan PM departed for the west asian country for the first time since assuming office in April, earlier this year.

Pakistan Prime Minister Shehbaz Sharif is on a two-day trip to Qatar. The Pakistan PM departed for the west asian country for the first time since assuming office in April, earlier this year. Reportedly, the main agenda of Sharif's visit is to gather funds for his cash-strapped country, going through its worst financial period. The official statement by the Pakistan PM office also emphasised deepening trade ties between the two countries. "The two sides will review the entire spectrum of bilateral relations, with a particular focus on advancing energy-related cooperation, deepening trade and investment ties, and exploring greater employment opportunities for Pakistanis in Qatar," read the statement. Pakistan's economy is in doldrums As reported extensively by WION, Pakistan's economy is under tremendous debt and needs cash liquidity on an almost urgent basis. According to several estimates, India's neighbouring country needs at least $41 billion in the next 12 months to fund debt repayments and boost foreign exchange reserves that have fallen to a lowly sum of $7.8 billion. Standing on the verge of bankruptcy, Pakistan, however, was given a glimmer of hope earlier last month when the IMF decided to resume a 2019 signed $6 billion loan programme. Read More: Pakistan brings ordinance allowing government to sell state assets to foreign nations However, IMF kept a few pre-conditions before Islamabad prior to opening its coffers. Reportedly, Pakistan will have to raise $4 billion from friendly countries to receive the next tranche of payment. Pakistan had been desperate for funding ever since with its Army chief visiting Washington to lobby for getting the IMF loan approved. Read more: Pakistan army chief pleads Washington for early release of IMF funds Qatar approves funding However, good news came on the day Sharif departed for Qatar as the oil-rich country announced that it will provide $2 billion in bilateral support to the South Asian country. Moreover, Pakistan will also receive $1 billion in oil financing from Saudi Arabia and a similar amount in investments from the UAE, over 12 months. The next IMF meeting is scheduled to take place on August 29 and with a part of the funding secured, Pakistan PM will be hopeful that the global monetary body releases the funds. It is pertinent to note that the Pakistan government under PM Sharif has also brought an ordinance which grants it the power to sell state assets such as oil and gas companies to foreign nations without any checks. Read more: Want permanent peace with India through dialogue, says Pak PM Shehbaz Sharif Qatar is one of the major oil-producing countries. Thus, experts believe that Sharif may attempt to sell a few state assets to the gulf country, before returning to Islamabad. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan PM Shehbaz Sharif visits Qatar to raise funds for his cash-strapped country

The International Monetary Fund (IMF) and Pakistan had reached an agreement to begin a loan programme that had been put on hold. This will inject $1.17 billion into the faltering economy.

WION Dispatch: IMF agrees to revive loan to Pakistan after fuel, tax hikes

The International Monetary Fund (IMF) said on Thursday that it and Pakistan had reached an agreement to begin a loan programme that had been put on hold. This will inject $1.17 billion into the faltering economy.&nbsp;The new accord comes after months of profoundly unpopular belt-tightening by Shehbaz Sharif's government, which gained power in April and has virtually scrapped gasoline subsidies while also introducing new measures to increase the tax base.&nbsp;Imran Khan, the&nbsp;former prime minister, signed a $6 billion bailout deal in 2019, but it constantly stalled because of his administration's violation of subsidy agreements and poor tax collection.

Watch |&nbsp;Pakistan economic crisis: Inflation at a 13-year high

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A statement by the IMF posted on its website says, "The IMF team has reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eight reviews of the EFF-supported program. The agreement is subject to approval by the IMF’s Executive Board. Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the program to about $4.2 billion.

It further added that "in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing", an extension of the EFF through June 2023 will be considered by the IMF Board&nbsp;along with&nbsp;"an augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$7 billion."

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/paper-crisis-hits-pakistan-publishers-say-no-books-for-new-academic-session-491200">Paper crisis hits Pakistan, publishers say no books for new academic session</a>

The IMF team's leader, Nathan Porter, stated in the statement that "Pakistan is at a challenging economic juncture" and added that both foreign forces and domestic policy were to blame.

Pakistan's economy, which suffers from subpar income collection and diminishing foreign reserves to cover its crushing debt, is in dire need of international assistance.

As per AFP, to satisfy the demands of international financial institutions, the new administration has drastically reduced the number of subsidies, but by doing so, it runs the risk of angering the populace, which is already suffering from double-digit inflation.

Also read |&nbsp;​​​​​​​<a href="https://www.wionews.com/south-asia/is-pakistani-rupee-so-worthless-that-this-cop-in-karachi-demanded-goats-and-cow-as-bribe-494600">Is Pakistani rupee so worthless that this cop in Karachi demanded goats and cow&nbsp;as bribe?</a>

Islamabad has already received $3 billion from the initiative, but officials requested an extension until June 2023 since the facility was set to close later this year.

Last month, Miftah Ismail, the finance minister, told the national assembly that it had become "essential to resume the IMF programme to save the country from default".

"We knew it would damage our political reputation, but still we did it."

(With inputs from agencies)

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You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

The International Monetary Fund (IMF) said on Thursday that it and Pakistan had reached an agreement to begin a loan programme that had been put on hold. This will inject $1.

The International Monetary Fund (IMF) said on Thursday that it and Pakistan had reached an agreement to begin a loan programme that had been put on hold. This will inject $1.17 billion into the faltering economy. The new accord comes after months of profoundly unpopular belt-tightening by Shehbaz Sharif's government, which gained power in April and has virtually scrapped gasoline subsidies while also introducing new measures to increase the tax base. Imran Khan, the former prime minister, signed a $6 billion bailout deal in 2019, but it constantly stalled because of his administration's violation of subsidy agreements and poor tax collection. Watch | Pakistan economic crisis: Inflation at a 13-year high A statement by the IMF posted on its website says, "The IMF team has reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eight reviews of the EFF-supported program. The agreement is subject to approval by the IMF’s Executive Board. Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the program to about $4.2 billion. It further added that "in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing", an extension of the EFF through June 2023 will be considered by the IMF Board along with "an augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$7 billion." Also read | Paper crisis hits Pakistan, publishers say no books for new academic session The IMF team's leader, Nathan Porter, stated in the statement that "Pakistan is at a challenging economic juncture" and added that both foreign forces and domestic policy were to blame. Pakistan's economy, which suffers from subpar income collection and diminishing foreign reserves to cover its crushing debt, is in dire need of international assistance. As per AFP, to satisfy the demands of international financial institutions, the new administration has drastically reduced the number of subsidies, but by doing so, it runs the risk of angering the populace, which is already suffering from double-digit inflation. Also read | Is Pakistani rupee so worthless that this cop in Karachi demanded goats and cow as bribe? Islamabad has already received $3 billion from the initiative, but officials requested an extension until June 2023 since the facility was set to close later this year. Last month, Miftah Ismail, the finance minister, told the national assembly that it had become "essential to resume the IMF programme to save the country from default". "We knew it would damage our political reputation, but still we did it." (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.

IMF agrees to resume inflation-hit Pakistan's loan after fuel, tax hikes

Rating agency Moody's Investor Service has downgraded cash-strapped Pakistan’s outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said.

“Moody`s assesses that Pakistan’s external vulnerability risk has been amplified by rising inflation, which puts downward pressure on the current account, the currency and already thin foreign exchange reserves, especially in the context of heightened political and social risk," the statement said.

Moody’s report added that the country's ‘weak institutions and governance strength’ had added uncertainty around the future direction of macroeconomic policy, including whether&nbsp;Pakistan&nbsp;would complete the IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing.

However, it affirmed the ‘B3’ local and foreign currency long-term issuer and senior unsecured debt ratings.

Watch |&nbsp;Moody's lowers Pakistan outlook to negative over IMF delay

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“The decision to affirm the B3 rating reflects Moody's assumption that, notwithstanding the downside risks mentioned above, Pakistan will conclude the seventh review under the IMF EFF programme by the second half of this calendar year, and will maintain its engagement with the IMF, leading to additional financing from other bilateral and multilateral partners,” it said.

Also read |&nbsp;<a href="https://www.wionews.com/economy/turkeys-annual-inflation-spirals-to-24-year-high-at-73-484683" hreflang="en">Turkey’s annual inflation spirals to 24-year high at 73%</a>

Moody’s affirmed that Pakistan will be able to close its financing gap for the next couple of years.

“The B3 rating also incorporates Moody`s assessment of the scale of Pakistan’s economy and robust growth potential, which will provide the economy with some capacity to absorb shocks.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pak-hikes-prices-of-petroleum-products-power-massively-as-chinese-banks-agree-to-refinance-with-23-bn-484583" hreflang="en">Heading for turmoil? Pak hikes prices of petroleum products, power massively</a>

"These credit strengths are balanced against Pakistan`s fragile external payments position, weak governance and very weak fiscal strength, including very weak debt affordability," the statement said.

Watch WION's live TV here:

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Rating agency Moody's Investor Service has downgraded cash-strapped Pakistan’s outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said.

Rating agency Moody's Investor Service has downgraded cash-strapped Pakistan’s outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said. “Moody`s assesses that Pakistan’s external vulnerability risk has been amplified by rising inflation, which puts downward pressure on the current account, the currency and already thin foreign exchange reserves, especially in the context of heightened political and social risk," the statement said. Moody’s report added that the country's ‘weak institutions and governance strength’ had added uncertainty around the future direction of macroeconomic policy, including whether Pakistan would complete the IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing. However, it affirmed the ‘B3’ local and foreign currency long-term issuer and senior unsecured debt ratings. Watch | Moody's lowers Pakistan outlook to negative over IMF delay “The decision to affirm the B3 rating reflects Moody's assumption that, notwithstanding the downside risks mentioned above, Pakistan will conclude the seventh review under the IMF EFF programme by the second half of this calendar year, and will maintain its engagement with the IMF, leading to additional financing from other bilateral and multilateral partners,” it said. Also read | Turkey’s annual inflation spirals to 24-year high at 73% Moody’s affirmed that Pakistan will be able to close its financing gap for the next couple of years. “The B3 rating also incorporates Moody`s assessment of the scale of Pakistan’s economy and robust growth potential, which will provide the economy with some capacity to absorb shocks. Also read | Heading for turmoil? Pak hikes prices of petroleum products, power massively "These credit strengths are balanced against Pakistan`s fragile external payments position, weak governance and very weak fiscal strength, including very weak debt affordability," the statement said. Watch WION's live TV here:

Moody's downgrades Pakistan's outlook from stable to negative over IMF delay

The International Monetary Fund (IMF) on Wednesday emphasised upon Pakistan the urgency of removing fuel and energy subsidies to achieve programme objectives.

IMF presses Pakistan of removing fuel, energy subsidies for programme revival

The new government in Pakistan is discussing whether it should rollback fuel and power subsidies.

Finance Secretary Hamed Yaqoob Sheikh told Reuters, "The relief package will add to the fiscal deficit which we cannot afford at the moment."

"Either it has to be rolled back or compensating reductions in other expenditures would be required to ensure that the primary balance agreed with the IMF is achieved."

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''Our focus is on providing as much relief as possible to all Pakistanis by tackling high inflation and kick-starting the stagnant economy,'' Pakistan's Prime Minister Shehbaz Sharif had earlier tweeted.

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Our focus is on providing as much relief as possible to all Pakistanis by tackling high inflation &amp; kick-starting the stagnant economy. Together we will make Pakistan a great nation, Insha'Allah. Pakistan Zindabad!! 🇵🇰
— Shehbaz Sharif (@CMShehbaz) <a href="https://twitter.com/CMShehbaz/status/1513581704191094797?ref_src=twsrc%5Etfw">April 11, 2022</a></blockquote>
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The fuel and power subsidies were introduced by former Prime Minister Imran Khan in order to win public support.

He implemented the cut in electricity and petrol tariffs in February when inflation was at an all-time high.

Miftah Ismail, the top economic adviser to Sharif, has said that Imran Khan's relief measure will make the fiscal deficit reach 10 per cent of the country's Gross Domestic Product (GDP).

Speaking on the condition of anonymity, a finance ministry official told Reuters, "We have been discussing this before (with the previous government) and are discussing it again with the new government as well."&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/ispr-has-confirmed-imran-khans-internal-conspiracy-theory-former-pak-minister-tells-wion-471200">See elections happening in Pakistan in 8 weeks time: Fawad Chaudhry</a>

Sharif wants to improve the speed at which current developmental projects are working in Pakistan.

"Almost all sectors of economy remained stagnant under Imran Khan,'' he said.

Khan, the leader of Tehreek-e-Insaf, was ousted after a no-confidence motion was passed against him in the National Assembly.

The former captain of the Pakistani cricket team has been holding rallies ever since in protest.

"Young people, get ready, I will take to the streets with you. I will go out in every city, and I will continue to go out until they are forced to hold election,'' he said.

According to Pakistan's Major-General Babar Iftikhar, "All that happened in recent days was part of a political process.''

''Do not drag the army into politics,'' he urged Pakistan's political parties.

(With inputs from agencies) 
&nbsp;

The new government in Pakistan is discussing whether it should rollback fuel and power subsidies. Finance Secretary Hamed Yaqoob Sheikh told Reuters, "The relief package will add to the fiscal deficit which we cannot afford at the moment.

The new government in Pakistan is discussing whether it should rollback fuel and power subsidies. Finance Secretary Hamed Yaqoob Sheikh told Reuters, "The relief package will add to the fiscal deficit which we cannot afford at the moment." "Either it has to be rolled back or compensating reductions in other expenditures would be required to ensure that the primary balance agreed with the IMF is achieved." ''Our focus is on providing as much relief as possible to all Pakistanis by tackling high inflation and kick-starting the stagnant economy,'' Pakistan's Prime Minister Shehbaz Sharif had earlier tweeted. Our focus is on providing as much relief as possible to all Pakistanis by tackling high inflation & kick-starting the stagnant economy. Together we will make Pakistan a great nation, Insha'Allah. Pakistan Zindabad!! 🇵🇰 — Shehbaz Sharif (@CMShehbaz) April 11, 2022 × The fuel and power subsidies were introduced by former Prime Minister Imran Khan in order to win public support. He implemented the cut in electricity and petrol tariffs in February when inflation was at an all-time high. Miftah Ismail, the top economic adviser to Sharif, has said that Imran Khan's relief measure will make the fiscal deficit reach 10 per cent of the country's Gross Domestic Product (GDP). Speaking on the condition of anonymity, a finance ministry official told Reuters, "We have been discussing this before (with the previous government) and are discussing it again with the new government as well." Also read | See elections happening in Pakistan in 8 weeks time: Fawad Chaudhry Sharif wants to improve the speed at which current developmental projects are working in Pakistan. "Almost all sectors of economy remained stagnant under Imran Khan,'' he said. Khan, the leader of Tehreek-e-Insaf, was ousted after a no-confidence motion was passed against him in the National Assembly. The former captain of the Pakistani cricket team has been holding rallies ever since in protest. "Young people, get ready, I will take to the streets with you. I will go out in every city, and I will continue to go out until they are forced to hold election,'' he said. According to Pakistan's Major-General Babar Iftikhar, "All that happened in recent days was part of a political process.'' ''Do not drag the army into politics,'' he urged Pakistan's political parties. (With inputs from agencies)

New government in Pakistan discussing rollback of fuel and power subsidies

Blaming Pakistan’s bureaucratic system, Prime Minister Imran Khan admitted that his government could not bring the desired “changes” in the country.

Speaking at a government event in Islamabad, Khan on Thursday said that he wanted to bring "revolutionary changes" at the start of his term, but he could not do it because the "system was incapable of absorbing shock,” Dawn newspaper reported.

The prime minister further said the government and ministries had not given the desired results.

"The biggest problem is that there has been no connection between the government and the interest of the country," Dawn quoted Khan as saying.

"Are our ministries performing how to stabilise the country through increasing exports and how the condition of the people can be improved, how poverty can be eliminated?" he asked.

Khan said increasing exports, finding import substitution and alleviating poverty were significant areas of national interest.

He stressed the need for putting in place a system of reward and punishment and said that reforms had been made regarding the powers of the National Accountability Bureau that allowed bureaucrats to take initiatives.

The remarks of the prime minister come amid a massive economic crisis plaguing Pakistan. Inflation, poverty and unemployment have reached record levels under Imran Khan’s term.

Pakistan has sought almost 20 bailouts from the International Monetary Fund over half a century to tide over the foreign reserve crisis.

Apart from that, Pakistan has been struggling to pay out debts to China amounting to $4.5 billion.

(With inputs from agencies)

Blaming Pakistan’s bureaucratic system, Prime Minister Imran Khan admitted that his government could not bring the desired “changes” in the country. Speaking at a government event in Islamabad, Khan on Thursday said that he wanted to bring "revolutionary changes" at the start of his term, but he could not do it because the "system was incapable of absorbing shock,” Dawn newspaper reported.

Blaming Pakistan’s bureaucratic system, Prime Minister Imran Khan admitted that his government could not bring the desired “changes” in the country. Speaking at a government event in Islamabad, Khan on Thursday said that he wanted to bring "revolutionary changes" at the start of his term, but he could not do it because the "system was incapable of absorbing shock,” Dawn newspaper reported. The prime minister further said the government and ministries had not given the desired results. "The biggest problem is that there has been no connection between the government and the interest of the country," Dawn quoted Khan as saying. "Are our ministries performing how to stabilise the country through increasing exports and how the condition of the people can be improved, how poverty can be eliminated?" he asked. Khan said increasing exports, finding import substitution and alleviating poverty were significant areas of national interest. He stressed the need for putting in place a system of reward and punishment and said that reforms had been made regarding the powers of the National Accountability Bureau that allowed bureaucrats to take initiatives. The remarks of the prime minister come amid a massive economic crisis plaguing Pakistan. Inflation, poverty and unemployment have reached record levels under Imran Khan’s term. Pakistan has sought almost 20 bailouts from the International Monetary Fund over half a century to tide over the foreign reserve crisis. Apart from that, Pakistan has been struggling to pay out debts to China amounting to $4.5 billion. (With inputs from agencies)

‘Wanted to bring revolutionary changes’: Pak PM admits govt’s failure

The former chief of Pakistan’s tax agency, Shabbar Zaidi, has said that the Islamist nation has gone bankrupt and that the government had been lying about the country's prosperity.

Speaking on Pakistan's economic condition at Hamdard University on Wednesday, the former chairman of the Federal Board of Revenue said that the country was not in a state of “going concern” — an accounting terminology referring to a business that is operating and making a profit.

“We keep saying that everything is good, the country is running well, we have achieved great success and we brought tabdeeli (change) but this is wrong. In my view, the country is, at the moment, bankrupt and not a going concern.”

“It is better if you decide first that we have reached bankruptcy and we have to move forward compared to saying everything is running well and I will do this and that. These are all things to deceive the people,” Zaidi said.

A video clip of his speech had gone viral on social media.

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Let’s not fool around that everything is working fine, Pakistan is already bankrupt; says Shabbar Zaidi who was till recently Chairman of FBR <a href="https://t.co/HunF5UAyuZ">pic.twitter.com/HunF5UAyuZ</a>
— Murtaza Ali Shah (@MurtazaViews) <a href="https://twitter.com/MurtazaViews/status/1471171080870113283?ref_src=twsrc%5Etfw">December 15, 2021</a></blockquote>
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However, on Friday, Zaid issued a clarification that his remarks were "misreported", adding that he had given a presentation of 30 minutes, of which only three were "cherry-picked".

In a tweet, he said,&nbsp;"Yes I said that with this constant current account &amp; fiscal deficit there are issues of bankruptcy &amp; going concern but look at the solution."

He said his statement had been made on a "basis &amp; conviction".

"I only want to say that whole speech is to [be] read and listened [to]."

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My speech in Hamdard University is being misreported. There was a presentation of half &amp; hour. Only three minutes have been cherry picked. Yes I said that with this constant current account &amp; fiscal deficit there are issues of bankruptcy &amp; going concern but look at the solution.
— SyedShabbarZaidi (@SShabbarZaidi) <a href="https://twitter.com/SShabbarZaidi/status/1471356568046379011?ref_src=twsrc%5Etfw">December 16, 2021</a></blockquote>
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Pakistan’s economy is on the brink of collapse. The country faces record inflation that’s pushing the price of daily commodities higher.

Last week, the rupee tumbled to all-time lows, losing 15 per cent of its value against the dollar in six months.

Officials fear a surging import bill will deplete foreign currency reserves and further destabilise the economy.

Apart from that, Pakistan is currently negotiating with the International Monetary Fund for a bailout package to overcome the balance of payment crisis.

In July 2019, Pakistan and the IMF had signed a 39-month Extended Fund Facility for $ 6 billion but the programme remained largely off track, resulting in disbursements of only $ 2 billion in two years.

And since 2018, Pakistan has been stuck in the grey list of the Paris-based Financial Action Task Force (FATF), for unable to curb counter-terror financing and anti-money laundering activities.

According to Islamabad-based independent think-tank, Tabadlab, Pakistan has lost $38 billion of its GDP because of the FATF sanctions.

(With inputs from agencies)

The former chief of Pakistan’s tax agency, Shabbar Zaidi, has said that the Islamist nation has gone bankrupt and that the government had been lying about the country's prosperity.

The former chief of Pakistan’s tax agency, Shabbar Zaidi, has said that the Islamist nation has gone bankrupt and that the government had been lying about the country's prosperity. Speaking on Pakistan's economic condition at Hamdard University on Wednesday, the former chairman of the Federal Board of Revenue said that the country was not in a state of “going concern” — an accounting terminology referring to a business that is operating and making a profit. “We keep saying that everything is good, the country is running well, we have achieved great success and we brought tabdeeli (change) but this is wrong. In my view, the country is, at the moment, bankrupt and not a going concern.” “It is better if you decide first that we have reached bankruptcy and we have to move forward compared to saying everything is running well and I will do this and that. These are all things to deceive the people,” Zaidi said. A video clip of his speech had gone viral on social media. Let’s not fool around that everything is working fine, Pakistan is already bankrupt; says Shabbar Zaidi who was till recently Chairman of FBR pic.twitter.com/HunF5UAyuZ — Murtaza Ali Shah (@MurtazaViews) December 15, 2021 × However, on Friday, Zaid issued a clarification that his remarks were "misreported", adding that he had given a presentation of 30 minutes, of which only three were "cherry-picked". In a tweet, he said, "Yes I said that with this constant current account & fiscal deficit there are issues of bankruptcy & going concern but look at the solution." He said his statement had been made on a "basis & conviction". "I only want to say that whole speech is to [be] read and listened [to]." My speech in Hamdard University is being misreported. There was a presentation of half & hour. Only three minutes have been cherry picked. Yes I said that with this constant current account & fiscal deficit there are issues of bankruptcy & going concern but look at the solution. — SyedShabbarZaidi (@SShabbarZaidi) December 16, 2021 × Pakistan’s economy is on the brink of collapse. The country faces record inflation that’s pushing the price of daily commodities higher. Last week, the rupee tumbled to all-time lows, losing 15 per cent of its value against the dollar in six months. Officials fear a surging import bill will deplete foreign currency reserves and further destabilise the economy. Apart from that, Pakistan is currently negotiating with the International Monetary Fund for a bailout package to overcome the balance of payment crisis. In July 2019, Pakistan and the IMF had signed a 39-month Extended Fund Facility for $ 6 billion but the programme remained largely off track, resulting in disbursements of only $ 2 billion in two years. And since 2018, Pakistan has been stuck in the grey list of the Paris-based Financial Action Task Force (FATF), for unable to curb counter-terror financing and anti-money laundering activities. According to Islamabad-based independent think-tank, Tabadlab, Pakistan has lost $38 billion of its GDP because of the FATF sanctions. (With inputs from agencies)

Pakistan has gone bankrupt, govt deceiving people, says former tax chief Shabbar Zaidi

A couple of days back, Pakistan Prime Minister Imran Khan said the "biggest problem" is that the government doesn't have enough money to run the country. He added that the rising foreign debts and low tax revenue had become an issue of "national security".

A couple of days back, Pakistan Prime Minister Imran Khan said the "biggest problem" is that the government doesn't have enough money to run the country. He added that the rising foreign debts and low tax revenue had become an issue of "national security". Imran Khan said, "We don't have enough money to run our country due to which we have to borrow loans." A day after Khan described the increasing debt as a "national security issue", the State Bank of Pakistan (SBP) released the debt figures till September 2021. For the first time ever, Pakistan's total debt and liabilities crossed 50.5 trillion Pakistani rupees (PKR) - approximately $283 billion. It is an addition of PKR 20.7 trillion under the current government alone, Pakistan-based newspaper Express Tribune reported citing SBP data. ALSO READ | Where Afghanistan's new Taliban leaders went to school The figures have shown that the total debt and public debt of Pakistan have deteriorated during the current Pakistan Tehreek-e-Insaf (PTI) government. As per the mentioned newspaper, in June 2018, every Pakistani owed PKR 144,000. But now, it has increased to PKR 235,000 by September 2021. The increase is an additional burden of PKR 91,000 or 63 per cent during PTI's tenure. Two days after Khan's 'don't have money' remark, the International Monetary Fund (IMF) rejected Pakistan's borrowing request as it turned down the Pak government's proposal to allow it to take loans equal to 2 per cent of the gross domestic product (GDP) in a fiscal year. In a written reply to a question, the house was informed that the exchange rate depreciation added around PKR 2.9 trillion (20 per cent of the increase) in public debt while the government paid PKR 7.5 trillion against interest servicing which is 50 per cent of the increase in the total public debt, reported The News International, which is one of the largest English language newspapers in Pakistan. Inflation in Pakistan The South Asian nation has been reeling with increased prices of food items. Inflation surged 9.2 per cent in October from the year before, according to government data. Food-price inflation is crushing commoners in Pakistan as the cost of basic food items shot up this month by 17 per cent year over year, government data show. ALSO READ | Pakistan petroleum dealers launch nationwide strike against lower profit margins According to Muzzammil Aslam, a spokesman for the finance ministry, Pakistan imports about 80 per cent of its oil and diesel and about 35 per cent of its gasoline. The cost of electricity in Pakistan is already twice as much as in some of the neighbouring countries like India, China and Bangladesh. Mismanagement of funds? When common people struggling to get basic food items, Islamabad allocated $7.85bn for defence and merely $151m for health in the budget for the financial year 2020-2021. Imran Khan recently said that due to lack of resources the government had little to spend on the welfare of the masses. He said due to failure to generate local resources, the successive governments resorted to loans. The data from the Ministry of Economic Affairs showed that the borrowing was higher by $580 million, or 18 per cent, as compared to the loans obtained in the same period last year. In a recent report, the World Bank noted that Pakistan has joined the list of top ten nations with the largest foreign debts. × The question here is - the borrowing has increased but it's not reaching the common people. Where most of the funds are going? Pakistan is caught in a vicious cycle as it needs to borrow new funds to pay the old ones. The News International reported that the Imran Khan-led regime ideally required gross external financing of $51.6 billion within a two-year period (2021-2023) in order to fulfil its needs. Pakistan's gross external financing requirement stands at $23.6 billion in 2021-22 and $28 billion in 2022-23. Amid economic crisis, what's next for the debt-ridden nation? 1 PKR = 0.00567496 USD 1 USD = 176.213 PKR

Pakistan's debt and liabilities increase; govt 'doesn't have money': What's next for the debt-ridden nation?

Protests against price rise continue to haunt Imran Khan's government. Pakistan's economic intelligence unit has said that inflation will rise for the next half year in the country.

Pakistan: Protests against skyrocketing prices, opposition slams PM Imran Khan

According to data released by the State Bank of Pakistan on Thursday, Pakistan's central bank's foreign exchange reserves declined 0.61 percent on a weekly basis.

The SBP's foreign currency reserves were recorded at USD 20,022.6 million on September 3, down USD 123 million from USD 20,145.6 million on August 27, according to The Express Tribune.

The decline was caused by repayments of external loans, according to the central bank.

The country's total liquid foreign currency reserves, which include net reserves held by banks other than the SBP, were USD 27,102.6 million.

According to The Tribune Express, banks' net reserves totaled USD 7,080 million.&nbsp;

On July 9, 2019, it got the first loan tranche of $991.4 million from the IMF, which helped to boost reserves.

According to The Tribune Express, the IMF released the second loan tranche of roughly USD 454 million in late December 2019.

The reserves also increased as a result of USD 2.5 billion in Chinese inflows.

The SBP successfully repaid over $1 billion in foreign debt on the maturity of Sukuk in 2020. 
 
(With inputs from agencies)

According to data released by the State Bank of Pakistan on Thursday, Pakistan's central bank's foreign exchange reserves declined 0.61 percent on a weekly basis.

According to data released by the State Bank of Pakistan on Thursday, Pakistan's central bank's foreign exchange reserves declined 0.61 percent on a weekly basis. The SBP's foreign currency reserves were recorded at USD 20,022.6 million on September 3, down USD 123 million from USD 20,145.6 million on August 27, according to The Express Tribune. The decline was caused by repayments of external loans, according to the central bank. The country's total liquid foreign currency reserves, which include net reserves held by banks other than the SBP, were USD 27,102.6 million. According to The Tribune Express, banks' net reserves totaled USD 7,080 million. On July 9, 2019, it got the first loan tranche of $991.4 million from the IMF, which helped to boost reserves. According to The Tribune Express, the IMF released the second loan tranche of roughly USD 454 million in late December 2019. The reserves also increased as a result of USD 2.5 billion in Chinese inflows. The SBP successfully repaid over $1 billion in foreign debt on the maturity of Sukuk in 2020. (With inputs from agencies)

Pakistan's central bank reserves fall $123 million to $20 billion: Report 

Pakistan's Prime Minister Imran Khan's house has been rented out for social occasions such as weddings and fashion displays, in what can only be described as a major international embarrassment for the country.

While Imran Khan's time as Prime Minister has been littered with embarrassments, this one, maybe, eclipses them all.&nbsp;

Khan will depart from the opulent PM's mansion in Islamabad, according to the governing Tehreek-e-Pakistan Tehreek-e-Insaf (PTI) party, which stated in 2018 that the house would be transformed into a postgraduate institute campus. 
 
<a href="https://www.wionews.com/world/pakistans-austerity-car-auction-falls-short-new-pm-khan-commutes-by-helicopter-166306">Also read: Pakistan's austerity car auction falls short, PM Imran Khan commutes by helicopter</a>

The PTI administration has stated that Imran Khan would not stay in PM House and governors will not stay in Governor Houses in order to reduce costs and use the money for social initiatives.&nbsp; 
 
<a href="https://www.wionews.com/south-asia/cash-cows-pakistan-pms-house-auctions-buffalos-austerity-168003">Also read: Pakistan PM's house auctions buffalos for austerity</a>

Pakistan's GDP has decreased by $19 billion since Khan took office three years ago.

When he became Prime Minister, he implemented a number of austerity measures to reduce government spending and provide relief to the country's economy.&nbsp; 
 
Pakistan's GDP has decreased by $19 billion since Khan took office three years ago.

When he became Prime Minister, he implemented a number of austerity measures to reduce government spending and provide relief to the country's economy.&nbsp;

Former finance minister Miftah Ismail had previously stated that the Imran Khan-led administration was "toying with the economy," adding that the government and state institutions' loans had been raised by Rs 45,000 billion.&nbsp;

(With inputs from agencies)

Pakistan's Prime Minister Imran Khan's house has been rented out for social occasions such as weddings and fashion displays, in what can only be described as a major international embarrassment for the country.

Pakistan's Prime Minister Imran Khan's house has been rented out for social occasions such as weddings and fashion displays, in what can only be described as a major international embarrassment for the country. While Imran Khan's time as Prime Minister has been littered with embarrassments, this one, maybe, eclipses them all. Khan will depart from the opulent PM's mansion in Islamabad, according to the governing Tehreek-e-Pakistan Tehreek-e-Insaf (PTI) party, which stated in 2018 that the house would be transformed into a postgraduate institute campus. Also read: Pakistan's austerity car auction falls short, PM Imran Khan commutes by helicopter The PTI administration has stated that Imran Khan would not stay in PM House and governors will not stay in Governor Houses in order to reduce costs and use the money for social initiatives. Also read: Pakistan PM's house auctions buffalos for austerity Pakistan's GDP has decreased by $19 billion since Khan took office three years ago. When he became Prime Minister, he implemented a number of austerity measures to reduce government spending and provide relief to the country's economy. Pakistan's GDP has decreased by $19 billion since Khan took office three years ago. When he became Prime Minister, he implemented a number of austerity measures to reduce government spending and provide relief to the country's economy. Former finance minister Miftah Ismail had previously stated that the Imran Khan-led administration was "toying with the economy," adding that the government and state institutions' loans had been raised by Rs 45,000 billion. (With inputs from agencies)

After selling cars and buffaloes, broke Pakistan puts PM Imran Khan's residence on rent

Pakistan`s remittances remained over $2 billion in March for the 10th month in a row, the country`s central bank said. 
 
The remittances rose to $2.7 billion in March 2021, which was 20 per cent higher than those of February and 43 per cent higher than those of March 2020, Xinhua news agency quoted a statement by the State Bank of Pakistan (SBP) issued on Monday as saying. 
 
"Cumulatively during July-March of FY21 (from July 2020 to June 2021), remittances have risen to $21.5 billion, up by 26 per cent over the same period of FY20," the statement said. 
 
The central bank termed proactive policy measures by the government and the SBP to encourage more inflows through formal banking channels, limited cross-border travel in the face of Covid-19, medical expenses and altruistic transfers to Pakistan amidst the pandemic as the main reasons for the increasing remittances. 
 
"Orderly foreign exchange market conditions are also continuing to contribute to this sustained rise in workers` remittances," said the statement. 
 
Prime Minister Imran Khan on Monday hailed the increase in the remittances and expressed gratitude to overseas Pakistanis for their support.

Pakistan`s remittances remained over $2 billion in March for the 10th month in a row, the country`s central bank said. The remittances rose to $2.7 billion in March 2021, which was 20 per cent higher than those of February and 43 per cent higher than those of March 2020, Xinhua news agency quoted a statement by the State Bank of Pakistan (SBP) issued on Monday as saying.

Pakistan`s remittances remained over $2 billion in March for the 10th month in a row, the country`s central bank said. The remittances rose to $2.7 billion in March 2021, which was 20 per cent higher than those of February and 43 per cent higher than those of March 2020, Xinhua news agency quoted a statement by the State Bank of Pakistan (SBP) issued on Monday as saying. "Cumulatively during July-March of FY21 (from July 2020 to June 2021), remittances have risen to $21.5 billion, up by 26 per cent over the same period of FY20," the statement said. The central bank termed proactive policy measures by the government and the SBP to encourage more inflows through formal banking channels, limited cross-border travel in the face of Covid-19, medical expenses and altruistic transfers to Pakistan amidst the pandemic as the main reasons for the increasing remittances. "Orderly foreign exchange market conditions are also continuing to contribute to this sustained rise in workers` remittances," said the statement. Prime Minister Imran Khan on Monday hailed the increase in the remittances and expressed gratitude to overseas Pakistanis for their support.

Pakistan's remittances remain over $2 billion for 10th month

Pakistan government did a U-turn on its decision to resume trade with India. A Cabinet meeting chaired by Prime Minister Imran Khan rejected a decision made by a government panel on Wednesday to allow imports of sugar and cotton from India to control prices and overcome a shortage.

Pakistan does U-turn on lifting ban on Indian imports

Top officials of the Pakistan government are in panic mode after United Arab Emirates (UAE) demanded its $1billion back. The amount is deposited with the State Bank of Pakistan (SBP),&nbsp;the central bank of the country. The deadline to return the $1bn&nbsp;is 12 March. The money is demanded as the amount has reached its maturity.

Multiple attempts have been made to reach out to UAE, especially to Crown Prince Mohammed bin Zayed Al Nahyan, by top Pakistani officials. So far there hasn't been any response.&nbsp;Pakistani has pleaded to UAE that returning such a huge amount can impact its economic situation right now.

It is no secret that&nbsp;Pakistan's economy is in dire straits. According to a World Bank estimate, amid the Covid pandemic, Pakistan’s real GDP growth is estimated to have declined from 1.9 % in financial year 2019 to -1.5% in FY2020.

Earlier this year, IMF and Pakistan had reached a staff-level agreement to release $500 million as part of a larger loan pact. The year 2019 saw the international financial institution&nbsp;agreeing to provide a $6bn loan to the country&nbsp;to rein in the debt crisis in exchange for reform measures.

Top officials of the Pakistan government are in panic mode after United Arab Emirates (UAE) demanded its $1billion back. The amount is deposited with the State Bank of Pakistan (SBP), the central bank of the country.

Top officials of the Pakistan government are in panic mode after United Arab Emirates (UAE) demanded its $1billion back. The amount is deposited with the State Bank of Pakistan (SBP), the central bank of the country. The deadline to return the $1bn is 12 March. The money is demanded as the amount has reached its maturity. Multiple attempts have been made to reach out to UAE, especially to Crown Prince Mohammed bin Zayed Al Nahyan, by top Pakistani officials. So far there hasn't been any response. Pakistani has pleaded to UAE that returning such a huge amount can impact its economic situation right now. It is no secret that Pakistan's economy is in dire straits. According to a World Bank estimate, amid the Covid pandemic, Pakistan’s real GDP growth is estimated to have declined from 1.9 % in financial year 2019 to -1.5% in FY2020. Earlier this year, IMF and Pakistan had reached a staff-level agreement to release $500 million as part of a larger loan pact. The year 2019 saw the international financial institution agreeing to provide a $6bn loan to the country to rein in the debt crisis in exchange for reform measures.

Panic in Pak govt as UAE demands back its $1bn

The Arab world is making Pakistan pay its debts.

Malaysia is making Pakistani airlines clear their dues.

The IMF is unlikely to hand out more money to Pakistan and even China has begun seeking loan guarantees.

Also read | <a href="https://www.wionews.com/south-asia/pak-pm-calls-for-equitable-distribution-of-covid-19-vaccine-and-debt-relief-for-poor-countries-359287">Pak PM calls for equitable distribution of COVID-19 vaccine and debt relief for poor countries</a>

Pakistan has exhausted all its options.

Its economy is ailing and Islamabad is in urgent need of money.

And PM Imran Khan has come up with a bright idea and is "considering" mortgaging a park in Islamabad to get a loan of around PKR 500 billion or USD 3 billion.&nbsp;

He plans to secure three billion dollars by offering a park as security.

For the unversed, Fatima Jinnah Park is based in the heart of Islamabad and is named after the youngest sister of Muhammad Ali Jinnah.

This is the largest recreation park of its kind in Pakistan's capital and is spread across 759 acres of land.

According to Dawn news, the proposal to mortgage this park has been included in the agenda of Pakistan's federal cabinet conference which will be held on Thursday.

The Pak govt has confirmed this and recently issued a clarification justifying its plan under the Shariah law.

'Sukuk are sharia compliant borrowing instruments backed by physical assets..... And are structured so as to pay returns on investment as rent.... Instead of interest by utilising an underlying asset," was the clarification that was issued by the administration.&nbsp;

Simply described, the Pakistan government is trying to say that mortgage or 'sukuk' is compliant with the Sharia law.&nbsp;

<h2>Why was it needed?</h2>

Recently, Saudi Arabia asked Pakistan to repay a 3 billion dollar soft loan.

The Army Chief Qamar Javed Bajwa was dispatched to Riyadh, but the sheikhdom did not budge.

As Pakistan struggles to pay the tranches, reports have emerged that UAE too could seek the early repayment of a 3 billion dollar financial support package.

At the same time, China is seeking loan guarantees from Pakistan.

Beijing wants Islamabad to ensure that it will pay its Chinese debts first.

It wants the Pak govt to put a guarantee mechanism in place for any loans henceforth.

The IMF is asking Pakistan to mend its policies if it wants more loans.

Also, Malaysia recently seized a Pakistan International Airlines (PIA) plane due to non-payment of dues...

The Malaysian govt made the airline pay seven million dollars that were long overdue.

Malaysia is the country that Imran Khan called Pakistan's friend.

Pakistani lawmakers are outraged and believe that today it was an airplane, tomorrow it could be the prime minister himself.

The Arab world is making Pakistan pay its debts. Malaysia is making Pakistani airlines clear their dues. The IMF is unlikely to hand out more money to Pakistan and even China has begun seeking loan guarantees.

The Arab world is making Pakistan pay its debts. Malaysia is making Pakistani airlines clear their dues. The IMF is unlikely to hand out more money to Pakistan and even China has begun seeking loan guarantees. Also read | Pak PM calls for equitable distribution of COVID-19 vaccine and debt relief for poor countries Pakistan has exhausted all its options. Its economy is ailing and Islamabad is in urgent need of money. And PM Imran Khan has come up with a bright idea and is "considering" mortgaging a park in Islamabad to get a loan of around PKR 500 billion or USD 3 billion. He plans to secure three billion dollars by offering a park as security. For the unversed, Fatima Jinnah Park is based in the heart of Islamabad and is named after the youngest sister of Muhammad Ali Jinnah. This is the largest recreation park of its kind in Pakistan's capital and is spread across 759 acres of land. According to Dawn news, the proposal to mortgage this park has been included in the agenda of Pakistan's federal cabinet conference which will be held on Thursday. The Pak govt has confirmed this and recently issued a clarification justifying its plan under the Shariah law. 'Sukuk are sharia compliant borrowing instruments backed by physical assets..... And are structured so as to pay returns on investment as rent.... Instead of interest by utilising an underlying asset," was the clarification that was issued by the administration. Simply described, the Pakistan government is trying to say that mortgage or 'sukuk' is compliant with the Sharia law. Why was it needed? Recently, Saudi Arabia asked Pakistan to repay a 3 billion dollar soft loan. The Army Chief Qamar Javed Bajwa was dispatched to Riyadh, but the sheikhdom did not budge. As Pakistan struggles to pay the tranches, reports have emerged that UAE too could seek the early repayment of a 3 billion dollar financial support package. At the same time, China is seeking loan guarantees from Pakistan. Beijing wants Islamabad to ensure that it will pay its Chinese debts first. It wants the Pak govt to put a guarantee mechanism in place for any loans henceforth. The IMF is asking Pakistan to mend its policies if it wants more loans. Also, Malaysia recently seized a Pakistan International Airlines (PIA) plane due to non-payment of dues... The Malaysian govt made the airline pay seven million dollars that were long overdue. Malaysia is the country that Imran Khan called Pakistan's friend. Pakistani lawmakers are outraged and believe that today it was an airplane, tomorrow it could be the prime minister himself.

Arab world is making Pakistan pay and plan is to mortgage the largest park

The World Bank has approved a USD 300 million loan to help the cash-strapped Pakistan address issues of climate change, health emergency and manage solid waste to reduce flooding chances in the country's financial capital Karachi, a media report said on Thursday.

The Washington-based lender approved USD 200 million for the Sindh Resilience project and USD 100 million for the Solid Waste Emergency and Efficiency project, The Express Tribune newspaper reported, citing an official statement issued by the bank's local office.

These investments will bolster Pakistan's efforts to build resilience to natural hazards such as floods and droughts in the Sindh province and will strengthen solid waste management in Karachi to tackle recurrent urban flooding and public health emergencies in the city, it added.

The USD 200 million has been approved in additional financing for the Sindh Resilience project worth USD 100 million, bringing total cost of the scheme to USD 300 million.

"Building resilience to natural disasters and health emergencies is an important and urgent agenda in Pakistan, that will help save lives and protect the economy," said World Bank Country Director for Pakistan Najy Benhassine.

The debilitating impact of recent floods in Karachi, droughts and extreme rainfall in Sindh, and of course the COVID-19 pandemic, make it imperative that risk reduction investments strengthen multi-sectoral dialogue and coordination at the city, provincial and national levels to ensure protection of vulnerable communities and fight the spread of disease, he added.

The additional financing of USD 200 million for the Sindh Resilience project will help the government better manage climate and disaster risks, including floods, droughts, and public health emergencies.

The USD 100 million Solid Waste Emergency and Efficiency Project (SWEEP) will improve solid waste management services in Karachi - Pakistan's largest city with more than 16 million people - and upgrade the critical solid waste infrastructure to reduce urban flooding and public health risks.

The project focuses on emergency waste removal to restore stormwater drainage capacity before the next monsoon season, especially in the vulnerable communities around drainage and waste collection sites.

The project will improve living conditions for at least half a million residents of Karachi and increase protection for workers by introducing safety protocols that improve labour conditions.

Pakistan received $500 million from the World Bank and the Asian Development Bank each in June this year to prop up its struggling economy.

Pakistan's total public debt&nbsp;domestic and external&nbsp;was recorded at Rs36.3 trillion in the financial year 2019-20, up 154 pc (or Rs22 trillion) since FY13, when it was recorded at Rs 14.3 trillion, according to official data.

The World Bank has approved a USD 300 million loan to help the cash-strapped Pakistan address issues of climate change, health emergency and manage solid waste to reduce flooding chances in the country's financial capital Karachi, a media report said on Thursday.

The World Bank has approved a USD 300 million loan to help the cash-strapped Pakistan address issues of climate change, health emergency and manage solid waste to reduce flooding chances in the country's financial capital Karachi, a media report said on Thursday. The Washington-based lender approved USD 200 million for the Sindh Resilience project and USD 100 million for the Solid Waste Emergency and Efficiency project, The Express Tribune newspaper reported, citing an official statement issued by the bank's local office. These investments will bolster Pakistan's efforts to build resilience to natural hazards such as floods and droughts in the Sindh province and will strengthen solid waste management in Karachi to tackle recurrent urban flooding and public health emergencies in the city, it added. The USD 200 million has been approved in additional financing for the Sindh Resilience project worth USD 100 million, bringing total cost of the scheme to USD 300 million. "Building resilience to natural disasters and health emergencies is an important and urgent agenda in Pakistan, that will help save lives and protect the economy," said World Bank Country Director for Pakistan Najy Benhassine. The debilitating impact of recent floods in Karachi, droughts and extreme rainfall in Sindh, and of course the COVID-19 pandemic, make it imperative that risk reduction investments strengthen multi-sectoral dialogue and coordination at the city, provincial and national levels to ensure protection of vulnerable communities and fight the spread of disease, he added. The additional financing of USD 200 million for the Sindh Resilience project will help the government better manage climate and disaster risks, including floods, droughts, and public health emergencies. The USD 100 million Solid Waste Emergency and Efficiency Project (SWEEP) will improve solid waste management services in Karachi - Pakistan's largest city with more than 16 million people - and upgrade the critical solid waste infrastructure to reduce urban flooding and public health risks. The project focuses on emergency waste removal to restore stormwater drainage capacity before the next monsoon season, especially in the vulnerable communities around drainage and waste collection sites. The project will improve living conditions for at least half a million residents of Karachi and increase protection for workers by introducing safety protocols that improve labour conditions. Pakistan received $500 million from the World Bank and the Asian Development Bank each in June this year to prop up its struggling economy. Pakistan's total public debt domestic and external was recorded at Rs36.3 trillion in the financial year 2019-20, up 154 pc (or Rs22 trillion) since FY13, when it was recorded at Rs 14.3 trillion, according to official data.

World Bank approves $300 milllion loan for cash-strapped Pakistan

Pakistan's economy is in the doldrums plunging to new lows every day with inflation at an all-time high.

In January, Pakistan had witnessed 12-year high inflation at 14.6 per cent which is among the highest in the world.

Food prices have been spiralling out of control in the country. In October, food inflation was at 16.6 per cent. The Pakistan government has gone on a panic-buying spree to bring the prices down.

The Pakistani currency has weakened at 160 Pakistani rupees to a dollar it has become one of the worst-performing currencies in the region. "Naya Pakistan" is turning out to be a nightmare for Imran Khan which has taken the shape of the country - failed and adrift.

For all his tall promises of a new era, PM Imran Khan has only taken his country backwards.

The total public debt has in Pakistan has ballooned. It has increased by 11 trillion rupees at a total of 36.3 trillion which is 87 per cent of Pakistan's total GDP in the two years under Imran Khan's rule.

Then there are international loans which have been piling up. Islamabad is still turning to foreign banks to meet its balance of payments. In the latest instance, the Asian Development Bank has approved a loan of $300 million to Islamabad, it is in addition to $1.3 billion that Pakistan borrowed from the IMF in April which was in addition to a $6 billion loan it secured from the IMF in July.

Pakistan's economy is scraping the bottom of the barrel with unemployment zooming. According to the World Economic Forum, the youth unemployment rate in Pakistan stands at 8.5 per cent in a country where 64 per cent of the population is below the age of 30.

Pakistan's healthcare has been going from bad to worse. According to Pakistan's national command operation centre, 10,300 healthcare professionals have been infected during the pandemic and at least 100 healthcare workers have lost their lives to the virus from China.

There's also a severe shortage of oxygen in hospitals. In Peshawar, at least 6 patients lost their life due to oxygen shortage even as over 200 patients had their oxygen supply curtailed for hours.

Corruption in Pakistan has become institutionalised. The bus rapid transit project and the billion tree Tsunami project which was the brainchild of Imran Khan are now scams. A report by Pakistan's auditor-general has revealed financial irregularities of up to 2.77 billion Pakistani rupees in the bus rapid transport project and the billion tree Tsunami project is facing a probe for embezzlement of funds and misuse of authority.

PM Imran Khan had promised a tsunami of trees across Pakistan. The money has been spent but there are no trees to show for it, all that is left is a hole in the public exchequer's purse with a loss of over 432 million Pakistani rupees.

Naya Pakistan is riddled with the same old problems - the politicians are embroiled in corruption, the elites have been exploiting the masses and the clerics have been radicalising them. The army is taking control and cash and terrorism have become a means for survival, the people of Pakistan, however. are barely managing to survive.

Pakistan's economy is in the doldrums plunging to new lows every day with inflation at an all-time high. In January, Pakistan had witnessed 12-year high inflation at 14.

Pakistan's economy is in the doldrums plunging to new lows every day with inflation at an all-time high. In January, Pakistan had witnessed 12-year high inflation at 14.6 per cent which is among the highest in the world. Food prices have been spiralling out of control in the country. In October, food inflation was at 16.6 per cent. The Pakistan government has gone on a panic-buying spree to bring the prices down. The Pakistani currency has weakened at 160 Pakistani rupees to a dollar it has become one of the worst-performing currencies in the region. "Naya Pakistan" is turning out to be a nightmare for Imran Khan which has taken the shape of the country - failed and adrift. For all his tall promises of a new era, PM Imran Khan has only taken his country backwards. The total public debt has in Pakistan has ballooned. It has increased by 11 trillion rupees at a total of 36.3 trillion which is 87 per cent of Pakistan's total GDP in the two years under Imran Khan's rule. Then there are international loans which have been piling up. Islamabad is still turning to foreign banks to meet its balance of payments. In the latest instance, the Asian Development Bank has approved a loan of $300 million to Islamabad, it is in addition to $1.3 billion that Pakistan borrowed from the IMF in April which was in addition to a $6 billion loan it secured from the IMF in July. Pakistan's economy is scraping the bottom of the barrel with unemployment zooming. According to the World Economic Forum, the youth unemployment rate in Pakistan stands at 8.5 per cent in a country where 64 per cent of the population is below the age of 30. Pakistan's healthcare has been going from bad to worse. According to Pakistan's national command operation centre, 10,300 healthcare professionals have been infected during the pandemic and at least 100 healthcare workers have lost their lives to the virus from China. There's also a severe shortage of oxygen in hospitals. In Peshawar, at least 6 patients lost their life due to oxygen shortage even as over 200 patients had their oxygen supply curtailed for hours. Corruption in Pakistan has become institutionalised. The bus rapid transit project and the billion tree Tsunami project which was the brainchild of Imran Khan are now scams. A report by Pakistan's auditor-general has revealed financial irregularities of up to 2.77 billion Pakistani rupees in the bus rapid transport project and the billion tree Tsunami project is facing a probe for embezzlement of funds and misuse of authority. PM Imran Khan had promised a tsunami of trees across Pakistan. The money has been spent but there are no trees to show for it, all that is left is a hole in the public exchequer's purse with a loss of over 432 million Pakistani rupees. Naya Pakistan is riddled with the same old problems - the politicians are embroiled in corruption, the elites have been exploiting the masses and the clerics have been radicalising them. The army is taking control and cash and terrorism have become a means for survival, the people of Pakistan, however. are barely managing to survive.

Imran's 'Naya Pakistan' turns into nightmare as economy hits new low

Pakistan's economy is moving in the right direction, Prime Minister Imran Khan claimed on Monday after the current account balance posted a surplus of $424mn in July 2020 for the country.

“MashaAllah Pakistan's economy is on the right track. After current account balance posted deficit of $613mn in July 2019 and a deficit of $100mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424mn,” Khan said, in a series of tweets.

Imran Khan added in his tweet that this drastic change is the result of "continuous improvement in exports which increased by 20 percent as compared to in June 2020 and record remittances".

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MashaAllah Pakistan's economy is on the right track. After current account balance posted deficit of $613 mn in July 2019 &amp; a deficit of $100 mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 mn.
— Imran Khan (@ImranKhanPTI) <a href="https://twitter.com/ImranKhanPTI/status/1297760070630092801?ref_src=twsrc%5Etfw">August 24, 2020</a></blockquote>
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As per the data released by the Ministry of Commerce, Pakistan exports for the month of July stood at $1.99bn as compared to $1.88bn recorded in July 2019.

It was earlier reported that remittances from Pakistani workers employed abroad hit the highest level for a single month in July, increasing 36.5% year on year, mostly thanks to less spending on Haj pilgrimages because of the coronavirus pandemic.

The global economic slowdown had raised fears that remittances, key to Pakistan’s dwindling foreign exchange reserves, would decline given falling employment in countries from where most of the money is sent - particularly Saudi Arabia and United Arab Emirates.

But July remittances rose to $2.768 billion, the State Bank of Pakistan said, adding the increase was up 12.2% from June, when remittance numbers were also high.

Pakistan has opened all sectors of the economy in a bid to revive its hard-hit economy. The country has reported 289,215 positive COVID-19 cases of which 269,087 have recovered, with 6,175 deaths.

Pakistan's economy is moving in the right direction, Prime Minister Imran Khan claimed on Monday after the current account balance posted a surplus of $424mn in July 2020 for the country.

Pakistan's economy is moving in the right direction, Prime Minister Imran Khan claimed on Monday after the current account balance posted a surplus of $424mn in July 2020 for the country. “MashaAllah Pakistan's economy is on the right track. After current account balance posted deficit of $613mn in July 2019 and a deficit of $100mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424mn,” Khan said, in a series of tweets. Imran Khan added in his tweet that this drastic change is the result of "continuous improvement in exports which increased by 20 percent as compared to in June 2020 and record remittances". MashaAllah Pakistan's economy is on the right track. After current account balance posted deficit of $613 mn in July 2019 & a deficit of $100 mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 mn. — Imran Khan (@ImranKhanPTI) August 24, 2020 × As per the data released by the Ministry of Commerce, Pakistan exports for the month of July stood at $1.99bn as compared to $1.88bn recorded in July 2019. It was earlier reported that remittances from Pakistani workers employed abroad hit the highest level for a single month in July, increasing 36.5% year on year, mostly thanks to less spending on Haj pilgrimages because of the coronavirus pandemic. The global economic slowdown had raised fears that remittances, key to Pakistan’s dwindling foreign exchange reserves, would decline given falling employment in countries from where most of the money is sent - particularly Saudi Arabia and United Arab Emirates. But July remittances rose to $2.768 billion, the State Bank of Pakistan said, adding the increase was up 12.2% from June, when remittance numbers were also high. Pakistan has opened all sectors of the economy in a bid to revive its hard-hit economy. The country has reported 289,215 positive COVID-19 cases of which 269,087 have recovered, with 6,175 deaths.

Pakistan’s economy ‘moving in the right direction’, says PM Imran Khan