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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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  • 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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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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