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FinMin Dar meets UAE envoy as Pakistan scrambles to secure IMF deal

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  • Top UAE diplomat in Pakistan calls on Finance Minister Ishaq Dar.
  • Both discuss enhancing bilateral economic and financial relations.
  • Pakistan needs friendly countries’ assurance to unlock IMF loan.

Minister for Finance and Revenue Ishaq Dar Wednesday met the United Arab Emirates (UAE) top diplomat in Pakistan as the country scrambles to unlock the stalled International Monetary Fund (IMF) programme.

The meeting comes as the IMF, according to Prime Minister Shehbaz Sharif, wants external financing commitments fulfilled from friendly countries before it releases bailout funds.

The Washington-based lender has been in talks with the Pakistani authorities since end-January to resume the $1.1 billion loan tranche held since November, part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.

The IMF funding is critical for Pakistan to unlock other external financing avenues to avert a default on its obligations. The State Bank of Pakistan’s (SBP) reserves are at a critical level of $4.6 billion and cover four weeks of imports.

An IMF statement said substantial progress had been made in discussions towards policies in recent days and financial assurances were standard in IMF programs.

“All IMF program reviews require firm and credible assurances that there is sufficient financing to ensure that the borrowing member’s balance of payments is fully financed in the next 12 months, with good prospects for financing over the remainder of the program. Pakistan is no exception,” the statement to Reuters said.

Several friendly countries — including Saudi Arabia, China and the UAE — have made commitments to help Pakistan fund its balance of payments as the nation tries to avert a possible default.

IMF’s Director of Strategic Communications Julie Kozack has said that timely financial assistance from external partners is critical to support the authorities’ policy efforts and ensure the successful completion of the review with Pakistan.

In a statement, the Ministry of Finance said UAE’s ambassador to Pakistan, Hamad Obaid Ibrahim Salim Al-Zaabi, called on the finance minister in Islamabad.

The two sides exchanged views on further enhancing bilateral economic and financial relations between the two countries, the statement read.

The UAE is among Pakistan’s largest trade partners and has supported the nation financially in the past with deposits in the State Bank of Pakistan.

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

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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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