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

Pakistan’s foreign exchange reserves dropped to their lowest level since October 2019. Sharing a break-up of the foreign reserves position, the central bank said that the reserves held by the State Bank of Pakistan stand at $7.83 billion.

Pakistan's foreign exchange reserves at lowest since October 2019

Saudi Arabia is finalising the extension of the kingdom's $3 billion deposit to Pakistan, says Saudi Minister of Finance Mohammed al-Jadaan. Last year, Saudi Arabia deposited $3bn in the State Bank of Pakistan to help support its foreign reserves.

Saudi Arabia likely to finalise extension of $3bn deposit to Pakistan

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?

Pakistan on Thursday received $452.4 million as a second tranche of the $6 billion loan from the <a href="https://www.wionews.com/india-news/indian-economic-slowdown-international-monetary-fund-calls-for-urgent-action-270004">International Monetary Fund</a> (IMF).

Confirming the report, a spokesperson of the<a href="https://www.wionews.com/south-asia/islamabads-war-on-terror-has-cost-118-bn-state-bank-of-pakistan-8992"> State Bank of Pakistan</a> (SBP) told ARY News that the release of the second tranche amounting to over $452 million showed IMF's confidence over the government's economic policies. The amount will be added to the bank's data next week, he added.

The spokesperson said that the central bank's net reserves increased by $14 million to $10.9 billion during the week ending December 20.

The IMF had approved the second tranche of the loan for Pakistan under the $6 billion Extended Fund Facility in a meeting of its executive board in Washington on December 20.

Pakistan had received the first tranche from IMF under its loan program in July.

The IMF had agreed to the three-year rescue package for Pakistan in April its 13th bailout programme for the South Asian nation since the late 1980s as the economic outlook for the country of 208 million people worsened.

The fiscal deficit of Pakistan's cash-strapped nation has ballooned to about 7 per cent of the <a href="https://www.wionews.com/business-economy/indias-q2-gdp-falls-to-45-lowest-in-6-years-265259">GDP</a> and a balance of payments crisis is looming.

The country has long suffered from a weak tax base, with only about one per cent of its 208 million population filing income tax returns and major industrial sectors dominated by powerful lobbies paying little or no tax.

Pakistan on Thursday received $452.4 million as a second tranche of the $6 billion loan from the International Monetary Fund (IMF). Confirming the report, a spokesperson of the State Bank of Pakistan (SBP) told ARY News that the release of the second tranche amounting to over $452 million showed IMF's confidence over the government's economic policies.

Pakistan on Thursday received $452.4 million as a second tranche of the $6 billion loan from the International Monetary Fund (IMF). Confirming the report, a spokesperson of the State Bank of Pakistan (SBP) told ARY News that the release of the second tranche amounting to over $452 million showed IMF's confidence over the government's economic policies. The amount will be added to the bank's data next week, he added. The spokesperson said that the central bank's net reserves increased by $14 million to $10.9 billion during the week ending December 20. The IMF had approved the second tranche of the loan for Pakistan under the $6 billion Extended Fund Facility in a meeting of its executive board in Washington on December 20. Pakistan had received the first tranche from IMF under its loan program in July. The IMF had agreed to the three-year rescue package for Pakistan in April its 13th bailout programme for the South Asian nation since the late 1980s as the economic outlook for the country of 208 million people worsened. The fiscal deficit of Pakistan's cash-strapped nation has ballooned to about 7 per cent of the GDP and a balance of payments crisis is looming. The country has long suffered from a weak tax base, with only about one per cent of its 208 million population filing income tax returns and major industrial sectors dominated by powerful lobbies paying little or no tax.

Pakistan receives second tranche of $452 million from International Monetary Fund

A Pakistani economist working for the International Monetary Fund (IMF) has been appointed as the governor of the State Bank of Pakistan (SBP), as the cash-strapped country seeks to finalise a multi-billion dollar bailout package from the global lender.

Prime Minister Imran Khan's government Saturday removed chiefs of the SBP and the Federal Board of Revenue (FBR), in a surprise move days after an IMF team visited Islamabad to hold talks for the bailout package. Both the SBP governor and the FBR chairman are key players in any IMF programme.

"The President of Pakistan is pleased to appoint Dr Reza Baqir as Governor State Bank of Pakistan (SBP) for a period of three years from the date he assumes office," read a notification from the government issued late Saturday night.

A Harvard and Berkeley University of California alumnus, Baqir has been with the IMF since 2000. He is currently serving in the IMF as senior resident representative to Egypt.

Baqir has been the chief of the IMF's Debt Policy Division and worked on IMF policies on external debt sustainability and restructuring of member countries. Before the IMF, Baqir worked at the World Bank, the Massachusetts Institute of Technology and the Union Bank of Switzerland.

The government also appointed Ahmed Mujtaba Memon as the chairman of the FBR - the tax collection body.

Memon comes from the Pakistan Customs Service and is presently an additional secretary in the Finance Division. A notification for Memon's appointment is likely to be issued shortly, Geo TV reported.

The key appointments come weeks after Finance Minister Asad Umar abruptly quit the Cabinet last month in the middle of the negotiations to secure the crucial multi-billion dollar IMF bailout package, amid mounting criticism over the handling of the economic crisis.

Prime Minister Khan appointed Dr Abdul Hafeez Sheikh as Adviser on Finance in place of Umar, as inflation rose to its highest in six years.

Both the finance minister and the SBP governor co-sign the Letter of Intent that a country sends to the IMF managing director for requesting a bailout package.

A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for the bailout package, days after Prime Minister Khan met IMF chief Christine Lagarde in China.

Pakistan is seeking $8 billion from the IMF to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

Islamabad has so far received a total of $9.1 billion in financial aid packages from friendly countries like China, Saudi Arabia and the UAE during the current fiscal year.

The talks with the IMF are supposedly 'progressing' according to Shaikh.

According to some analysts, the fresh appointments have taken away the control of Pakistan's economy from the civilian government.

While in opposition, Khan was against taking loans from the IMF but in the last few months, he not only twice requested the IMF chief to approve the loan package but has now also hired their man to oversee the programme on behalf of the government of the Pakistan Tehreek-e-Insaf (PTI).

Citing sources, the Express Tribune reported that Baqir was residing in the Guest House of the PM's House, which is also temporary residence of the de facto finance minister Shaikh.

Baqir's immediate responsibilities will be to roll out policies set out by the IMF including implementing a flexible exchange rate regime, reducing the government's reliance on central bank borrowings and ensuring transparency in many loans transactions.

A Pakistani economist working for the International Monetary Fund (IMF) has been appointed as the governor of the State Bank of Pakistan (SBP), as the cash-strapped country seeks to finalise a multi-billion dollar bailout package from the global lender.

A Pakistani economist working for the International Monetary Fund (IMF) has been appointed as the governor of the State Bank of Pakistan (SBP), as the cash-strapped country seeks to finalise a multi-billion dollar bailout package from the global lender. Prime Minister Imran Khan's government Saturday removed chiefs of the SBP and the Federal Board of Revenue (FBR), in a surprise move days after an IMF team visited Islamabad to hold talks for the bailout package. Both the SBP governor and the FBR chairman are key players in any IMF programme. "The President of Pakistan is pleased to appoint Dr Reza Baqir as Governor State Bank of Pakistan (SBP) for a period of three years from the date he assumes office," read a notification from the government issued late Saturday night. A Harvard and Berkeley University of California alumnus, Baqir has been with the IMF since 2000. He is currently serving in the IMF as senior resident representative to Egypt. Baqir has been the chief of the IMF's Debt Policy Division and worked on IMF policies on external debt sustainability and restructuring of member countries. Before the IMF, Baqir worked at the World Bank, the Massachusetts Institute of Technology and the Union Bank of Switzerland. The government also appointed Ahmed Mujtaba Memon as the chairman of the FBR - the tax collection body. Memon comes from the Pakistan Customs Service and is presently an additional secretary in the Finance Division. A notification for Memon's appointment is likely to be issued shortly, Geo TV reported. The key appointments come weeks after Finance Minister Asad Umar abruptly quit the Cabinet last month in the middle of the negotiations to secure the crucial multi-billion dollar IMF bailout package, amid mounting criticism over the handling of the economic crisis. Prime Minister Khan appointed Dr Abdul Hafeez Sheikh as Adviser on Finance in place of Umar, as inflation rose to its highest in six years. Both the finance minister and the SBP governor co-sign the Letter of Intent that a country sends to the IMF managing director for requesting a bailout package. A delegation of the IMF arrived in Pakistan on Monday to hold technical discussions for the bailout package, days after Prime Minister Khan met IMF chief Christine Lagarde in China. Pakistan is seeking $8 billion from the IMF to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. Islamabad has so far received a total of $9.1 billion in financial aid packages from friendly countries like China, Saudi Arabia and the UAE during the current fiscal year. The talks with the IMF are supposedly 'progressing' according to Shaikh. According to some analysts, the fresh appointments have taken away the control of Pakistan's economy from the civilian government. While in opposition, Khan was against taking loans from the IMF but in the last few months, he not only twice requested the IMF chief to approve the loan package but has now also hired their man to oversee the programme on behalf of the government of the Pakistan Tehreek-e-Insaf (PTI). Citing sources, the Express Tribune reported that Baqir was residing in the Guest House of the PM's House, which is also temporary residence of the de facto finance minister Shaikh. Baqir's immediate responsibilities will be to roll out policies set out by the IMF including implementing a flexible exchange rate regime, reducing the government's reliance on central bank borrowings and ensuring transparency in many loans transactions.

Pakistan appoints former IMF official as new State Bank of Pakistan governor

Pakistan Finance Minister <a href="https://www.wionews.com/south-asia/pakistans-economy-out-of-crisis-phase-finance-minister-208906">Asad Umar</a> on Wednesday (local time) held meetings with World Bank Group President David R Malpass and senior officials of the International Monetary Fund (IMF), in a bid to seek a three-year bailout package.

The delegation led by the finance minister which included State Bank of Pakistan Governor Tariq Bajwa, Finance Secretary Younas Dagha and Economic Affairs Division Secretary Noor Ahmed, reached Washington for a two-day meeting.

This comes a day after the IMF in its yearly World Economic Outlook reportedly projected that Pakistan's growth may remain at 2.5 per cent till 2024 unless Islamabad undertakes indispensable economic reforms.

Last year in October, Pakistan formally requested the IMF for yet another economic assistance package.

The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks.

The US views Pakistan as a safe haven for the terrorists and insurgents, responsible for the 17-years-old war going on in the neighbouring country Afghanistan.

Pentagon, in September, had reportedly cut off aid worth $300 million due&nbsp;to the growing concerns regarding the Islamabad's failure to tackle the militants.

In August, the Congress had also slashed the security-oriented financial aid to Pakistan.

Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time.

However, Pakistan secured loans up to $6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October.

Islamabad has been seeking commercial loans of $2 billion&nbsp;from Beijing. China has already refused to provide a balance of payment (BoP) support to Pakistan.&nbsp;

Pakistan Finance Minister Asad Umar on Wednesday (local time) held meetings with World Bank Group President David R Malpass and senior officials of the International Monetary Fund (IMF), in a bid to seek a three-year bailout package.

Pakistan Finance Minister Asad Umar on Wednesday (local time) held meetings with World Bank Group President David R Malpass and senior officials of the International Monetary Fund (IMF), in a bid to seek a three-year bailout package. The delegation led by the finance minister which included State Bank of Pakistan Governor Tariq Bajwa, Finance Secretary Younas Dagha and Economic Affairs Division Secretary Noor Ahmed, reached Washington for a two-day meeting. This comes a day after the IMF in its yearly World Economic Outlook reportedly projected that Pakistan's growth may remain at 2.5 per cent till 2024 unless Islamabad undertakes indispensable economic reforms. Last year in October, Pakistan formally requested the IMF for yet another economic assistance package. The South-Asian nation is going through an economic crisis after the United States decided to cut off the financial aid to the country in the view of terrorist attacks. The US views Pakistan as a safe haven for the terrorists and insurgents, responsible for the 17-years-old war going on in the neighbouring country Afghanistan. Pentagon, in September, had reportedly cut off aid worth $300 million due to the growing concerns regarding the Islamabad's failure to tackle the militants. In August, the Congress had also slashed the security-oriented financial aid to Pakistan. Pakistan, however, has sought help from several countries including Saudi Arabia and China as its economy has been in limbo for a long time. However, Pakistan secured loans up to $6 billion from Saudi Arabia on the sidelines of the Future Investment Initiative conference in Riyadh in October. Islamabad has been seeking commercial loans of $2 billion from Beijing. China has already refused to provide a balance of payment (BoP) support to Pakistan.

Pakistan Finance minister Asad Umar held meetings with World Bank leaders, seeking bailout

Pakistan’s finance minister on Friday ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars.

Since coming to power in August, much of the government’s focus has been in staving off a balance of payments crisis. It is in talks with the International Monetary Fund over a 13th bailout since the 1980s which is expected in the next few weeks.

Consumer price inflation rose in March to its highest since November 2013. Energy costs, in particular, have risen sharply, hit by a series of a devaluation.

"Today, State Bank of Pakistan has given a categorical statement that rupee is in equilibrium. The central bank cannot speak clearer than this,” Finance Minister Asad Umar said in a speech at the Pakistan Stock Exchange shown on television.

"There is no reason for big devaluations."

He added that there were no demands for what the exchange rate should be in the talks with the IMF.

Traditionally, Pakistan has kept its exchange rate over-valued, incurring losses to the economy, the finance minister said. The rupee should be aligned with its fundamentals and its benchmark should be the real effective exchange rate (REER), he added.

The minister advised the people not to waste money buying dollars, but instead invest in the stock market.

"One should not say the rupee would comfortably become stable or inflexible in terms of movement. It will remain flexible, but one should not expect big devaluation,"&nbsp;Fawad Khan, head of Research at BMA Capital Management Limited, told Reuters.

The finance minister’s remarks would help bring stability, Khan said.

"Overall, the statement has been taken positively by the equity market,"&nbsp;he told Reuters.

The question of whether the finance minister should have given this statement or not was another issue, Khan said because the management of the exchange rate is the joint responsibility of the ministry of finance and the central bank.

Pakistan’s finance minister on Friday ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars.

Pakistan’s finance minister on Friday ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars. Since coming to power in August, much of the government’s focus has been in staving off a balance of payments crisis. It is in talks with the International Monetary Fund over a 13th bailout since the 1980s which is expected in the next few weeks. Consumer price inflation rose in March to its highest since November 2013. Energy costs, in particular, have risen sharply, hit by a series of a devaluation. "Today, State Bank of Pakistan has given a categorical statement that rupee is in equilibrium. The central bank cannot speak clearer than this,” Finance Minister Asad Umar said in a speech at the Pakistan Stock Exchange shown on television. "There is no reason for big devaluations." He added that there were no demands for what the exchange rate should be in the talks with the IMF. Traditionally, Pakistan has kept its exchange rate over-valued, incurring losses to the economy, the finance minister said. The rupee should be aligned with its fundamentals and its benchmark should be the real effective exchange rate (REER), he added. The minister advised the people not to waste money buying dollars, but instead invest in the stock market. "One should not say the rupee would comfortably become stable or inflexible in terms of movement. It will remain flexible, but one should not expect big devaluation," Fawad Khan, head of Research at BMA Capital Management Limited, told Reuters. The finance minister’s remarks would help bring stability, Khan said. "Overall, the statement has been taken positively by the equity market," he told Reuters. The question of whether the finance minister should have given this statement or not was another issue, Khan said because the management of the exchange rate is the joint responsibility of the ministry of finance and the central bank.

Pakistan finance minister Asad Umar rules out further devaluation

A high-level delegation from Pakistan is in Australia for a three-day meeting of the Financial Action Task Force (FATF) that will review the progress made by the government to stop money laundering and terrorism financing.

The 12-member Pakistani team will explain the action plan that the government intends to follow to come into compliance with international obligations and secure an exit from the grey list of the Paris-based watchdog.

The Financial Action Task Force in its Paris meeting in June last year placed Pakistan onto its watch list in a bid to push the country to halt support for militant groups.

Pakistan on Friday dispatched a Terror Financing Risk Assessment Report electronically to FATF followed by a 12-member team led by Secretary Finance Arif Ahmed Khan to Sydney to attend the three-day meeting, beginning Saturday.

The delegation comprised representatives of the State Bank of Pakistan (SBP), National Counter Terrorism Authority (NACTA), Federal Investigation Agency (FIA), Federal Board of Revenue (FBR) and Financial Monitoring Unit.

The official said the delegation will address questions and observations of the FATF on the basis of risk assessment report transmitted to the global anti-terror financing watchdog.&nbsp;

The report highlights the implementation status of plans for various agencies of the government on the FATF's recommendations.

The report identified some key routes of the terror financing and money laundering, saying Pak-Afghan and Pak-Iran borders were two key routes of such flows, the daily said.

To address the challenge, checking and security systems at Pak-Afghan border had been strengthened with improved technology and vigilance while security had also been beefed up at Pak-Iran border, the report said.

The report said that the long coastal belt was also a source of smuggling and security was being tightened through law enforcement agencies, including through marine and coast guards.

It said the tools being used for financial transaction for terrorism included donations, cash smuggling, natural resources, drugs, non-governmental organisations and foreign agencies.

In June 2018, Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime and to address its strategic counter-terrorism financing-related deficiencies by implementing a 10-point action plan to accomplish these objectives.

The successful implementation of the action plan and its physical verification by the APG will lead the FATF to clear Pakistan out of its greylist or else move into the blacklist by September 2019.&nbsp;

A high-level delegation from Pakistan is in Australia for a three-day meeting of the Financial Action Task Force (FATF) that will review the progress made by the government to stop money laundering and terrorism financing.

A high-level delegation from Pakistan is in Australia for a three-day meeting of the Financial Action Task Force (FATF) that will review the progress made by the government to stop money laundering and terrorism financing. The 12-member Pakistani team will explain the action plan that the government intends to follow to come into compliance with international obligations and secure an exit from the grey list of the Paris-based watchdog. The Financial Action Task Force in its Paris meeting in June last year placed Pakistan onto its watch list in a bid to push the country to halt support for militant groups. Pakistan on Friday dispatched a Terror Financing Risk Assessment Report electronically to FATF followed by a 12-member team led by Secretary Finance Arif Ahmed Khan to Sydney to attend the three-day meeting, beginning Saturday. The delegation comprised representatives of the State Bank of Pakistan (SBP), National Counter Terrorism Authority (NACTA), Federal Investigation Agency (FIA), Federal Board of Revenue (FBR) and Financial Monitoring Unit. The official said the delegation will address questions and observations of the FATF on the basis of risk assessment report transmitted to the global anti-terror financing watchdog. The report highlights the implementation status of plans for various agencies of the government on the FATF's recommendations. The report identified some key routes of the terror financing and money laundering, saying Pak-Afghan and Pak-Iran borders were two key routes of such flows, the daily said. To address the challenge, checking and security systems at Pak-Afghan border had been strengthened with improved technology and vigilance while security had also been beefed up at Pak-Iran border, the report said. The report said that the long coastal belt was also a source of smuggling and security was being tightened through law enforcement agencies, including through marine and coast guards. It said the tools being used for financial transaction for terrorism included donations, cash smuggling, natural resources, drugs, non-governmental organisations and foreign agencies. In June 2018, Pakistan made a high-level political commitment to work with the FATF and APG to strengthen its AML/CFT regime and to address its strategic counter-terrorism financing-related deficiencies by implementing a 10-point action plan to accomplish these objectives. The successful implementation of the action plan and its physical verification by the APG will lead the FATF to clear Pakistan out of its greylist or else move into the blacklist by September 2019.

Pakistan delegation in Australia for FATF meeting

Cash-strapped Pakistan's quest for a $8 billion IMF bailout package by January 15 may not realise as the global lender wants the government to adopt tougher measures to address the external sector imbalances before sending the country's case to its Executive Board, a media report said Friday.

Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy.

The Express Tribune, quoting sources in the ministry of finance, said that the two sides made their first contact on Thursday for the first time since November 20 when they concluded their first round of talks for the bailout package.

Finance Minister Asad Umar and the IMF's Washington-based mission chief Harald Finger made contact through a video link, the report said. The two sides discussed the developments that took place during three weeks.

Talks between Pakistan and the IMF remained inconclusive last month after both sides could not bridge the gulf on issues like the increase in electricity prices, hike in interest rate, rupee devaluation and tax collection targets.

At that time, Pakistani officials had claimed that the staff-level agreement could be reached before Christmas holidays and Pakistan could request the IMF to send its case to the next board meeting, tentatively scheduled for January 15, the report said.

Both the sides showed flexibility and talks on Thursday were held in a more conducive environment than last month, said a senior official of the ministry.

The finance minister informed the IMF mission head about developments on the exchange rate and monetary policy.

The sources said that the IMF welcomed both the developments but urged Pakistan to continue these necessary actions to address the external sector imbalances. The IMF wanted further adjustments in the exchange rate and monetary policy said the sources.

During the video conference, the two sides also discussed the issue of the increase in the electricity prices that remain unimplemented, the report said.

The IMF was demanding 22 per cent further increase in electricity prices to address the issue of the circular debt, the report said.

Meanwhile, Pakistan's debt and liabilities rose to nearly Rs31 trillion at the end of September 2018 with an addition of Rs 984 billion in just three months, another report in the same newspaper said.

The increase comes amid concerns over a rapid rise in the debt burden in the coming months owing to currency depreciation and interest rate hike.

Statistics released by the State Bank of Pakistan (SBP) showed that by the end of the first quarter of the current fiscal year, Pakistan's total debt and liabilities soared to Rs 30.9 trillion. Within a span of just three months, there was an increase of Rs 984 billion, or 3.3 per cent, in the overall debt.

Of the Rs 30.9 trillion, the gross public debt, which is the direct responsibility of the government, stood at Rs 25.8 trillion, the report said.&nbsp;

There was an increase of Rs 839 billion in the gross public debt in three months, which was far higher than the overall budget deficit of Rs 542 billion for the period.

One of the key reasons behind the higher debt was the increase in interest rate and depreciation of the rupee during July-September 2018, the report said.

A single rupee devaluation adds Rs 97 billion to the public debt. Similarly, a 1 per cent increase in interest rate increases the cost of debt servicing by roughly Rs 180 billion. This ultimately increases the borrowing requirements of the finance ministry, it said.&nbsp;

Pakistan has received an aid package of $6 billion from Saudi Arabia and an assurance of financial help from China, both close allies, to tide over the immediate cash crunch.&nbsp;

Cash-strapped Pakistan's quest for a $8 billion IMF bailout package by January 15 may not realise as the global lender wants the government to adopt tougher measures to address the external sector imbalances before sending the country's case to its Executive Board, a media report said Friday.

Cash-strapped Pakistan's quest for a $8 billion IMF bailout package by January 15 may not realise as the global lender wants the government to adopt tougher measures to address the external sector imbalances before sending the country's case to its Executive Board, a media report said Friday. Pakistan is seeking $8 billion from the International Monetary Fund (IMF) to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country's economy. The Express Tribune, quoting sources in the ministry of finance, said that the two sides made their first contact on Thursday for the first time since November 20 when they concluded their first round of talks for the bailout package. Finance Minister Asad Umar and the IMF's Washington-based mission chief Harald Finger made contact through a video link, the report said. The two sides discussed the developments that took place during three weeks. Talks between Pakistan and the IMF remained inconclusive last month after both sides could not bridge the gulf on issues like the increase in electricity prices, hike in interest rate, rupee devaluation and tax collection targets. At that time, Pakistani officials had claimed that the staff-level agreement could be reached before Christmas holidays and Pakistan could request the IMF to send its case to the next board meeting, tentatively scheduled for January 15, the report said. Both the sides showed flexibility and talks on Thursday were held in a more conducive environment than last month, said a senior official of the ministry. The finance minister informed the IMF mission head about developments on the exchange rate and monetary policy. The sources said that the IMF welcomed both the developments but urged Pakistan to continue these necessary actions to address the external sector imbalances. The IMF wanted further adjustments in the exchange rate and monetary policy said the sources. During the video conference, the two sides also discussed the issue of the increase in the electricity prices that remain unimplemented, the report said. The IMF was demanding 22 per cent further increase in electricity prices to address the issue of the circular debt, the report said. Meanwhile, Pakistan's debt and liabilities rose to nearly Rs31 trillion at the end of September 2018 with an addition of Rs 984 billion in just three months, another report in the same newspaper said. The increase comes amid concerns over a rapid rise in the debt burden in the coming months owing to currency depreciation and interest rate hike. Statistics released by the State Bank of Pakistan (SBP) showed that by the end of the first quarter of the current fiscal year, Pakistan's total debt and liabilities soared to Rs 30.9 trillion. Within a span of just three months, there was an increase of Rs 984 billion, or 3.3 per cent, in the overall debt. Of the Rs 30.9 trillion, the gross public debt, which is the direct responsibility of the government, stood at Rs 25.8 trillion, the report said. There was an increase of Rs 839 billion in the gross public debt in three months, which was far higher than the overall budget deficit of Rs 542 billion for the period. One of the key reasons behind the higher debt was the increase in interest rate and depreciation of the rupee during July-September 2018, the report said. A single rupee devaluation adds Rs 97 billion to the public debt. Similarly, a 1 per cent increase in interest rate increases the cost of debt servicing by roughly Rs 180 billion. This ultimately increases the borrowing requirements of the finance ministry, it said. Pakistan has received an aid package of $6 billion from Saudi Arabia and an assurance of financial help from China, both close allies, to tide over the immediate cash crunch.

Pakistan unlikely to get IMF bailout by Jan 15: Report

Emerging markets currency turmoil and higher oil prices are putting increasing pressure on Pakistan's central bank to devalue the rupee for a fifth time in a year, analysts said on Wednesday.

The rupee is down 20 per cent since December as dwindling foreign currency reserves paired with a widening current account deficit prompted successive devaluations by the State Bank of Pakistan.

On Wednesday, the rupee closed at 124.2 per US dollar in the official interbank rate and 127.50 on the open market.

Any significant difference between the rates encourages transactions outside the formal banking system.

The central bank aggressively hiked its policy interest rates by 100 basis points to 8.5 per cent last week, but that won't be enough to prevent another depreciation, research agency Fitch Solutions said in an investors note.

"We remain bearish on the Pakistani rupee as the currency is likely to remain under depreciatory pressures with weaker external finances," it said.

Pakistan's economy has been wobbly for months, triggering speculation that Prime Minister Imran Khan's new government may request the country's 13th International Monetary Fund (IMF) bailout since late 1980s, though the administration calls that the last resort.

The state bank's foreign reserves were down to $9 billion in the week ending Sept. 19, only about two months' worth of imports and down some $300 million from the previous week, according to official statistics.

Now, rising oil prices are draining foreign reserves in emerging markets dependent on imported petroleum. Pakistan's neighbour India saw its currency fall to a record low of 73.40 rupees per dollar this week.

The external pressure has ramped up pressure on Pakistan's thinly traded rupee, widely considered to be under a managed float.

It's unlikely the central bank can defend the rupee at current levels for much longer, said Saad Hashemey, research director for Pakistani brokerage Topline Securities.

"Given the foreign exchange reserves in the state bank, I don't think the state bank has the firepower to bring the rate down," he said.

He added he expects "a slight devaluation at this point, and then eventually a 135-140 level in the next eight to 12 months".

Khan's new government has been seeking alternatives to going back to the IMF, but so far visits by Chinese and Saudi delegations have not yielded any new bridge loans or deferred-payment deals on oil.

Before Khan's election, China had given several billion dollars in emergency loans.

Emerging markets currency turmoil and higher oil prices are putting increasing pressure on Pakistan's central bank to devalue the rupee for a fifth time in a year, analysts said on Wednesday.

Emerging markets currency turmoil and higher oil prices are putting increasing pressure on Pakistan's central bank to devalue the rupee for a fifth time in a year, analysts said on Wednesday. The rupee is down 20 per cent since December as dwindling foreign currency reserves paired with a widening current account deficit prompted successive devaluations by the State Bank of Pakistan. On Wednesday, the rupee closed at 124.2 per US dollar in the official interbank rate and 127.50 on the open market. Any significant difference between the rates encourages transactions outside the formal banking system. The central bank aggressively hiked its policy interest rates by 100 basis points to 8.5 per cent last week, but that won't be enough to prevent another depreciation, research agency Fitch Solutions said in an investors note. "We remain bearish on the Pakistani rupee as the currency is likely to remain under depreciatory pressures with weaker external finances," it said. Pakistan's economy has been wobbly for months, triggering speculation that Prime Minister Imran Khan's new government may request the country's 13th International Monetary Fund (IMF) bailout since late 1980s, though the administration calls that the last resort. The state bank's foreign reserves were down to $9 billion in the week ending Sept. 19, only about two months' worth of imports and down some $300 million from the previous week, according to official statistics. Now, rising oil prices are draining foreign reserves in emerging markets dependent on imported petroleum. Pakistan's neighbour India saw its currency fall to a record low of 73.40 rupees per dollar this week. The external pressure has ramped up pressure on Pakistan's thinly traded rupee, widely considered to be under a managed float. It's unlikely the central bank can defend the rupee at current levels for much longer, said Saad Hashemey, research director for Pakistani brokerage Topline Securities. "Given the foreign exchange reserves in the state bank, I don't think the state bank has the firepower to bring the rate down," he said. He added he expects "a slight devaluation at this point, and then eventually a 135-140 level in the next eight to 12 months". Khan's new government has been seeking alternatives to going back to the IMF, but so far visits by Chinese and Saudi delegations have not yielded any new bridge loans or deferred-payment deals on oil. Before Khan's election, China had given several billion dollars in emergency loans.

Pakistan's rupee under pressure amid regional currency turmoil

Pakistan's liquid foreign exchange net reduced $ 5.8 billion to reach $10.3 billion, the country's state bank said.

The reserves are barely enough for two months of imports and are below the International Monetary Fund's(IMF) adequacy levels.&nbsp

The monetary committee of Pakistan's state bank while unveiling the report said the need for "deep-rooted structural reforms" to improve the country's competitiveness can hardly be overemphasized for medium to long-term sustainability of balance of payments.&nbsp

Meanwhile, China has agreed to roll over a loan of $ 500 million that it has placed with the State Bank of Pakistan as Islamabad's official foreign currency reserves remain in a precarious position despite taking $ 44 billion in loans in the past five years.

The Monetary committee said the currency swap arrangement between State Bank of Pakistan (SBP) and People's Bank of China (PBOC) has been extended for a period of 3 years in respective local currencies.&nbsp

Both the central banks have agreed to increase the amount from 10 billion yuan to 20 billion yuan and from 165 billion rupee to 351 billion rupee.&nbsp

Pakistan cannot use the $ 500 million Chinese deposit and its only purpose is to shore up foreign currency reserves. The loan has been rescheduled at the same old terms since the money could not be utilised, the interest rate was only 1 per cent.

During the week ended May 18, the SBP's gross reserves dropped $479 million to only $10.32 billion due to payments on account of external debt servicing.&nbsp

Pakistan has already taken $2.2 billion in commercial loans from China in the current fiscal year. It is also holding negotiations to take $200-350 million in commercial loans from Gulf banks.

The reserves are barely enough for two months of imports

Pakistan's liquid foreign exchange net reduced $ 5.8 billion to reach $10.3 billion, the country's state bank said. The reserves are barely enough for two months of imports and are below the International Monetary Fund's(IMF) adequacy levels. The monetary committee of Pakistan's state bank while unveiling the report said the need for "deep-rooted structural reforms" to improve the country's competitiveness can hardly be overemphasized for medium to long-term sustainability of balance of payments. Meanwhile, China has agreed to roll over a loan of $ 500 million that it has placed with the State Bank of Pakistan as Islamabad's official foreign currency reserves remain in a precarious position despite taking $ 44 billion in loans in the past five years. The Monetary committee said the currency swap arrangement between State Bank of Pakistan (SBP) and People's Bank of China (PBOC) has been extended for a period of 3 years in respective local currencies. Both the central banks have agreed to increase the amount from 10 billion yuan to 20 billion yuan and from 165 billion rupee to 351 billion rupee. Pakistan cannot use the $ 500 million Chinese deposit and its only purpose is to shore up foreign currency reserves. The loan has been rescheduled at the same old terms since the money could not be utilised, the interest rate was only 1 per cent. During the week ended May 18, the SBP's gross reserves dropped $479 million to only $10.32 billion due to payments on account of external debt servicing. Pakistan has already taken $2.2 billion in commercial loans from China in the current fiscal year. It is also holding negotiations to take $200-350 million in commercial loans from Gulf banks.

Pakistan's foreign exchange slides, China steps in

China has given Pakistan a credit line worth $1.6 billion to stave off a balance of payments crisis, two Pakistani central bank sources said&nbsp;on Thursday, with cash earmarked for boosting fast-depleting foreign currency reserves.

Two State Bank of Pakistan (SBP) sources told Reuters the credit facility that accompanies a currency swap agreement between SBP and China`s central bank has been hiked to 20 billion yuan ($3.13 billion) from 10 billion yuan.

"This arrangement has been finalised," said one SBP source, who spoke on condition of anonymity. A second source confirmed the agreement and the figures.

China has given Pakistan a credit line worth $1.6 billion to stave off a balance of payments crisis

China has given Pakistan a credit line worth $1.6 billion to stave off a balance of payments crisis, two Pakistani central bank sources said on Thursday, with cash earmarked for boosting fast-depleting foreign currency reserves. Two State Bank of Pakistan (SBP) sources told Reuters the credit facility that accompanies a currency swap agreement between SBP and China`s central bank has been hiked to 20 billion yuan ($3.13 billion) from 10 billion yuan. "This arrangement has been finalised," said one SBP source, who spoke on condition of anonymity. A second source confirmed the agreement and the figures.

China gives Pakistan $1.6 billion credit line to boost currency reserves

Pakistan&#39;s&nbsp;&quot;war on terror&quot; has cost the developing country a whopping $118 billion so far, a new central bank report has said, an amount equivalent to well over one third of its gross domestic product.

The central State Bank of Pakistan (SBP) released its annual report on Thursday showing extremist violence cost the country $118.3 billion in direct and indirect losses from 2002 to 2016.

&quot;Both economic growth and social sector development have been severely hampered by terrorism related incidents,&quot; the bank said in the report.

Pakistan became a pivotal US ally in the battle against extremism after the September 11, 2001 attacks spurred the US invasion of neighbouring Afghanistan.

A Coalition Support Fund (CSF) was approved by the US to support Pakistan in the war, with an annual release of around $1 billion since 2002. By last year Pakistan had received a total of $14 billion under the CSF.

The country has also been waging a fight against home-grown Islamist insurgents since at least 2004.&nbsp;

The bank said that apart from causing immeasurable human suffering, including casualties and mass displacement, the war had helped drive away foreign investment, stall domestic investment, freeze exports, and slow down trade.

Pakistan has carried out major military offensives against Al-Qaeda and the Taliban in its border tribal regions that have sapped their strength, with overall levels of militant violence dropping drastically in 2015 and 2016.

The economy, meanwhile, is improving, with the IMF saying in October that the country has emerged from crisis and stabilised its economy after completing a bailout programme.

(AFP)

Extremist violence cost the country $118.3 billion in direct and indirect losses from 2002 to 2016, the bank's annual report stated

Pakistan's "war on terror" has cost the developing country a whopping $118 billion so far, a new central bank report has said, an amount equivalent to well over one third of its gross domestic product. The central State Bank of Pakistan (SBP) released its annual report on Thursday showing extremist violence cost the country $118.3 billion in direct and indirect losses from 2002 to 2016. "Both economic growth and social sector development have been severely hampered by terrorism related incidents," the bank said in the report. Pakistan became a pivotal US ally in the battle against extremism after the September 11, 2001 attacks spurred the US invasion of neighbouring Afghanistan. A Coalition Support Fund (CSF) was approved by the US to support Pakistan in the war, with an annual release of around $1 billion since 2002. By last year Pakistan had received a total of $14 billion under the CSF. The country has also been waging a fight against home-grown Islamist insurgents since at least 2004. The bank said that apart from causing immeasurable human suffering, including casualties and mass displacement, the war had helped drive away foreign investment, stall domestic investment, freeze exports, and slow down trade. Pakistan has carried out major military offensives against Al-Qaeda and the Taliban in its border tribal regions that have sapped their strength, with overall levels of militant violence dropping drastically in 2015 and 2016. The economy, meanwhile, is improving, with the IMF saying in October that the country has emerged from crisis and stabilised its economy after completing a bailout programme. (AFP)

Islamabad's 'war on terror' has cost $118 bn: State Bank of Pakistan

Pakistan&#39;s central bank, State Bank of Pakistan (SBP), issued a statement today notifying suspension of operations in Euro-dominated Asian Clearing Union (ACU).&nbsp; 
 
&quot;As the payment channel for processing ACU transactions is under review, SBP is temporarily suspending operations in &#39;ACU Euro&#39; with immediate effect,&quot; the statement read.&nbsp; 
 
The central bank further said that all eligible transactions in Euro will have to be settled outside the system.&nbsp; 
 
(WION)&nbsp; 
&nbsp;

The central bank further said that all eligible transactions in Euro will have to be settled outside the system.?

Pakistan's central bank, State Bank of Pakistan (SBP), issued a statement today notifying suspension of operations in Euro-dominated Asian Clearing Union (ACU). "As the payment channel for processing ACU transactions is under review, SBP is temporarily suspending operations in 'ACU Euro' with immediate effect," the statement read. The central bank further said that all eligible transactions in Euro will have to be settled outside the system. (WION)

Pakistan's central bank temporarily suspends ACU mechanism?