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After PM’s 4th contact with IMF chief, Pakistan expects decision on stalled loan in a day or two

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1 year ago

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  • PM Shehbaz speaks to IMF MD Georgieva on phone call.
  • IMF chief hopes Pakistan’s economic situation to improve.
  • Pakistan desperately needs IMF loan to avoid default.

Prime Minister Shehbaz Sharif said Tuesday that Pakistan expects a decision on the International Monetary Fund’s (IMF) stalled bailout programme within a day or two as the struggling country continues to meet the lender’s demands.

The prime minister expressed hope after his telephone call with IMF Managing Director (MD) Kristalina Georgieva — his fourth contact with the lender’s boss in six days.

Rating agencies and economists fear that the $350 billion economy could default on its foreign debt obligations if it fails to secure the $1.1 loan tranche of the Extended Fund Facility (EFF).

The premier spoke to the IMF chief over the phone today after meeting her thrice — from Thursday to Saturday — on the sidelines of the New Global Financial Pact summit held in Paris, France.

The PM’s Office released a statement that the IMF chief and the prime minister discussed matters related to the stalled bailout programme.

On the call, the IMF chief acknowledged Finance Minister Ishaq Dar and his team’s efforts for attempting to revive the loan — after policy matters were discussed in Paris.

PM Shehbaz expressed hope that coordination on the points of the bailout programme would lead to a decision from the Washington-based lender in a day or two.

“The prime minister also reiterated his determination to achieve the goals of improving the economic situation through joint efforts,” the statement read.

The statement added that while hoping Pakistan’s economic situation would improve, the IMF chief appreciated the prime minister’s determination.

The South Asian nation is going through its worst economic crisis amid record inflation and interest rates, but it has seen prospects for its IMF loan take a positive turn before it expires at the end of the week.

In a dramatic final attempt to appease the lender, the nation agreed to raise taxes by $750 million and cut spending in its annual budget over the weekend. 

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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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2 days ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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