<p>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.</p>

<p><strong>Watch |&nbsp;Pakistan economic crisis: Inflation at a 13-year high</strong></p>

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<p>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.</p>

<p>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."</p>

<p><strong>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></strong></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><strong>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></strong></p>

<p>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.</p>

<p>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".</p>

<p>"We knew it would damage our political reputation, but still we did it."</p>

<p><em>(With inputs from agencies)</em></p>

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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

<p>Pakistan is in the midst of an economic catastrophe, and the government has no idea how to salvage the country's economy. On Tuesday, the Pakistani government's desperation and irritation came to the fore when a Federal Minister urged citizens to cut their tea consumption in order to save the country's economy, which is on the verge of collapse.</p>

<p>In a news conference, Ahsan Iqbal declared, "I will appeal to the country to reduce one cup of tea," in an attempt to save the economy.</p>

<p>Ahsan Iqbal, Pakistan's Federal Minister for Planning, Development, and Special Incentives.<br />
&nbsp;</p>

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<p dir="rtl" lang="ur">"میں یہ بھی قوم سے اپیل کروں گا کہ چائے کی ایک ایک پیالی کم کر دیں"۔معیشت بچانے کیلئے احسن اقبال کی عوام سے اپیل<br />
<br />
Video Credit : <a href="https://twitter.com/mugheesali81?ref_src=twsrc%5Etfw">@mugheesali81</a> <a href="https://t.co/bcprIFDrTY">pic.twitter.com/bcprIFDrTY</a></p>
— Siasat.pk (@siasatpk) <a href="https://twitter.com/siasatpk/status/1536600747571392513?ref_src=twsrc%5Etfw">June 14, 2022</a></blockquote>
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<p>Pakistan is teetering on the brink of a major calamity. There was a long-running political crisis linked to terrorism, followed by a persistent economic crisis in which even their close ally China was failing to assist.&nbsp;</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pak-currency-stock-markets-take-a-hit-as-budget-fails-to-restore-investors-confidence-487798">Pakistan currency, stock markets take a hit as budget fails to restore investors confidence</a></strong></p>

<p>However, the country is presently in the midst of a severe economic downturn. Pakistan's new government is attempting to meet bailout criteria set by the International Monetary Fund by repaying $6.4 billion in debt over the next three years.</p>

<p><strong>Watch |&nbsp;IMF calls Pakistan's budget 'problematic', urges to raise more direct taxes</strong></p>

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<p>Pakistan has gone to the International Monetary Fund (IMF) 22 times in the past to request a bailout. However, genuine reform initiatives have been lacking, which is why they keep returning. Pakistan's foreign exchange reserves are rapidly diminishing. They've dropped by half in less than a year.</p>

<p><strong>Pakistani netizens mock the Pakistani minister on social media</strong></p>

<p>The video footage of a Pakistani minister's call to restrict tea consumption went viral in no time, and as expected, netizens were quick to mock him and the ruling regime.<br />
&nbsp;</p>

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<p dir="ltr" lang="en">A sensible suggestion considering the financial crisis, however, such demands can only come from ppl who themselves practice this austerity. Not from ppl who have spent 70 million on renovating PM house's swimming pool, giving lavish dinners using public money and maintaining <a href="https://t.co/KgCdBPZR1q">https://t.co/KgCdBPZR1q</a></p>
— Cornered Tiger (@SheikhKhiWala) <a href="https://twitter.com/SheikhKhiWala/status/1536626266119733248?ref_src=twsrc%5Etfw">June 14, 2022</a></blockquote>
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<p dir="ltr" lang="en">Woke up,had a cup of Chai in my hand and watched this Aristotle saying “Chai ki 2 2 pyalyan pini kam ker dein” Are you serious?We can leave everything but not Chai! What an incompetent lot has been imposed on us. Koi economic strategy layo Bongyan na maro! <a href="https://twitter.com/hashtag/%D8%A7%D9%85%D9%BE%D9%88%D8%B1%D9%B9%DA%88_%D8%AD%DA%A9%D9%88%D9%85%D8%AA_%D9%86%D8%A7%D9%85%D9%86%D8%B8%D9%88%D8%B1?src=hash&amp;ref_src=twsrc%5Etfw">#امپورٹڈ_حکومت_نامنظور</a> <a href="https://t.co/5fGLNpQdXw">https://t.co/5fGLNpQdXw</a></p>
— Madi Ahmed (IK’s overseas tigress) (@madi_ahm) <a href="https://twitter.com/madi_ahm/status/1536625933905444865?ref_src=twsrc%5Etfw">June 14, 2022</a></blockquote>
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<p dir="ltr" lang="en">This smart aleck, instead of creating a conducive environment and encouraging farmers to grow tea locally, asks people to reduce their tea intake. 🤡 <a href="https://t.co/e1mcPWT9mJ">https://t.co/e1mcPWT9mJ</a></p>
— M (@minimalfuss_) <a href="https://twitter.com/minimalfuss_/status/1536625673682436097?ref_src=twsrc%5Etfw">June 14, 2022</a></blockquote>
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Pakistan is in the midst of an economic catastrophe, and the government has no idea how to salvage the country's economy. On Tuesday, the Pakistani government's desperation and irritation came to the fore when a Federal Minister urged citizens to cut their tea consumption in order to save the country's economy, which is on the verge of collapse.

Pakistan is in the midst of an economic catastrophe, and the government has no idea how to salvage the country's economy. On Tuesday, the Pakistani government's desperation and irritation came to the fore when a Federal Minister urged citizens to cut their tea consumption in order to save the country's economy, which is on the verge of collapse. In a news conference, Ahsan Iqbal declared, "I will appeal to the country to reduce one cup of tea," in an attempt to save the economy. Ahsan Iqbal, Pakistan's Federal Minister for Planning, Development, and Special Incentives. "میں یہ بھی قوم سے اپیل کروں گا کہ چائے کی ایک ایک پیالی کم کر دیں"۔معیشت بچانے کیلئے احسن اقبال کی عوام سے اپیل Video Credit : @mugheesali81 pic.twitter.com/bcprIFDrTY — Siasat.pk (@siasatpk) June 14, 2022 × Pakistan is teetering on the brink of a major calamity. There was a long-running political crisis linked to terrorism, followed by a persistent economic crisis in which even their close ally China was failing to assist. Also read | Pakistan currency, stock markets take a hit as budget fails to restore investors confidence However, the country is presently in the midst of a severe economic downturn. Pakistan's new government is attempting to meet bailout criteria set by the International Monetary Fund by repaying $6.4 billion in debt over the next three years. Watch | IMF calls Pakistan's budget 'problematic', urges to raise more direct taxes Pakistan has gone to the International Monetary Fund (IMF) 22 times in the past to request a bailout. However, genuine reform initiatives have been lacking, which is why they keep returning. Pakistan's foreign exchange reserves are rapidly diminishing. They've dropped by half in less than a year. Pakistani netizens mock the Pakistani minister on social media The video footage of a Pakistani minister's call to restrict tea consumption went viral in no time, and as expected, netizens were quick to mock him and the ruling regime. A sensible suggestion considering the financial crisis, however, such demands can only come from ppl who themselves practice this austerity. Not from ppl who have spent 70 million on renovating PM house's swimming pool, giving lavish dinners using public money and maintaining https://t.co/KgCdBPZR1q — Cornered Tiger (@SheikhKhiWala) June 14, 2022 × Woke up,had a cup of Chai in my hand and watched this Aristotle saying “Chai ki 2 2 pyalyan pini kam ker dein” Are you serious?We can leave everything but not Chai! What an incompetent lot has been imposed on us. Koi economic strategy layo Bongyan na maro! #امپورٹڈ_حکومت_نامنظور https://t.co/5fGLNpQdXw — Madi Ahmed (IK’s overseas tigress) (@madi_ahm) June 14, 2022 × This smart aleck, instead of creating a conducive environment and encouraging farmers to grow tea locally, asks people to reduce their tea intake. 🤡 https://t.co/e1mcPWT9mJ — M (@minimalfuss_) June 14, 2022 × 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.

Cutting chai: Govt asks Pakistanis to reduce tea consumption

<p>As per economists at Citigroup Inc. Pakistan's new budget and its plan to trim its deficit by cutting down on spending may not be enough to convince the International Monetary Fund (IMF) to resume its loan program. Bloomberg reports that in hopes of avoiding potential default, the South Asian nation is currently seeking a $900 million immediate disbursement from the IMF. As of June 3, the nation's foreign exchange reserves rest at below USD ten billion, only enough to cover less than two months of imports. The nation faces Asia's second-fastest inflation rate due to rising food and fuel prices.</p>

<p>Ahead of the meetings between Pakistan and IMF staff, in a note to clients Monday, Johanna Chua and Gaurav Garg of Citigroup wrote that the tax-to-GDP ratio is expected to climb to 9.2 per cent of GDP in the fiscal year beginning July 1 from 8.6 per cent.</p>

<p><strong>Watch |&nbsp;IMF calls Pakistan's budget 'problematic', urges to raise more direct taxes</strong></p>

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<p>They said that this appears modest compared to Pakistan's developing market counterparts and its own experience. Interest payments are expected to account for around 44 per cent of revenue, reports Bloomberg.</p>

<p>Chua and Garg further wrote that they await further information regarding the fund.</p>

<p>As per the nation's finance minister, Pakistan needs a minimum of $41 billion in the next 12 months. Analysts anticipate that these requirements will be met, but with some difficulty.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pak-currency-stock-markets-take-a-hit-as-budget-fails-to-restore-investors-confidence-487798">Pakistan currency, stock markets take a hit as budget fails to restore investors confidence</a></strong></p>

<p>On Friday, Pakistan released a 9.5 trillion Pakistani rupee ($47.12 billion) budget for 2022-23, focused on tight fiscal consolidation in order to persuade the International Monetary Fund (IMF).</p>

<p>Pakistan hopes to sign a staff level agreement with the IMF this month, according to Pakistan's finance minister Miftah Ismail.</p>

<p>The International Monetary Fund (IMF) has voiced concern about Pakistan's recently revealed budget, according to Ismail, but the administration is optimistic it can make revisions to satisfy the lender.</p>

<p><em>(With inputs from agencies)</em></p>

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As per economists at Citigroup Inc. Pakistan's new budget and its plan to trim its deficit by cutting down on spending may not be enough to convince the International Monetary Fund (IMF) to resume its loan program.

As per economists at Citigroup Inc. Pakistan's new budget and its plan to trim its deficit by cutting down on spending may not be enough to convince the International Monetary Fund (IMF) to resume its loan program. Bloomberg reports that in hopes of avoiding potential default, the South Asian nation is currently seeking a $900 million immediate disbursement from the IMF. As of June 3, the nation's foreign exchange reserves rest at below USD ten billion, only enough to cover less than two months of imports. The nation faces Asia's second-fastest inflation rate due to rising food and fuel prices. Ahead of the meetings between Pakistan and IMF staff, in a note to clients Monday, Johanna Chua and Gaurav Garg of Citigroup wrote that the tax-to-GDP ratio is expected to climb to 9.2 per cent of GDP in the fiscal year beginning July 1 from 8.6 per cent. Watch | IMF calls Pakistan's budget 'problematic', urges to raise more direct taxes They said that this appears modest compared to Pakistan's developing market counterparts and its own experience. Interest payments are expected to account for around 44 per cent of revenue, reports Bloomberg. Chua and Garg further wrote that they await further information regarding the fund. As per the nation's finance minister, Pakistan needs a minimum of $41 billion in the next 12 months. Analysts anticipate that these requirements will be met, but with some difficulty. Also read | Pakistan currency, stock markets take a hit as budget fails to restore investors confidence On Friday, Pakistan released a 9.5 trillion Pakistani rupee ($47.12 billion) budget for 2022-23, focused on tight fiscal consolidation in order to persuade the International Monetary Fund (IMF). Pakistan hopes to sign a staff level agreement with the IMF this month, according to Pakistan's finance minister Miftah Ismail. The International Monetary Fund (IMF) has voiced concern about Pakistan's recently revealed budget, according to Ismail, but the administration is optimistic it can make revisions to satisfy the lender. (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.

Reports suggest Pakistan budget may fall short of unlocking IMF loan

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

Cutting chai: Govt asks Pakistanis to reduce tea consumption

Reports suggest Pakistan budget may fall short of unlocking IMF loan