Business

In meeting with IMF chief, PM Shehbaz urges lender to release funds

Published

2 years ago

Farwa

Last ditch efforts to revive IMF programme.
PM Shehbaz Sharif meets IMF chief in Paris.
Loan programme to end on June 30.

PARIS: Prime Minister Shehbaz Sharif on Thursday met International Monetary Fund (IMF) Managing Director Kristalina Georgieva, urging the lender to unlock stalled funds as Pakistan has met all conditions.

The premier held the meeting on the sidelines of the Summit for a New Global Financial Pact being held in Paris in a bid to assure the IMF of the country’s commitment to fulfill all promises made in this regard.

The two exchanged views on the ongoing programmes and cooperation between Pakistan and IMF.

Recalling their last telephone conversation, the prime minister apprised Georgieva of Pakistan’s economic outlook.

He outlined the steps taken by his government for economic growth and stability, underscoring that all prior actions for the 9th review under the Extended Fund Facility (EFF) had been completed and Pakistan was fully committed to fulfilling its obligations as agreed with the fund.

The prime minister expressed the hope that the funds allocated under the EFF would be released as soon as possible.

“This would help strengthen Pakistan’s ongoing efforts towards economic stabilisation and bring relief to its people,” said.

In response, Georgieva shared her institution’s perspective on the ongoing review process.

The meeting provided a useful opportunity to take stock of the progress in that context.

Pakistan has barely enough currency reserves to cover one month’s imports. It had hoped to have $1.1 billion of the funds released in November — but the IMF has insisted on a number of conditions before it makes any more disbursements.

With time for only one last IMF board review before the end of the $6.5 billion EFF, Pakistan was expected to present a budget in line with programme objectives, restore the proper functioning of the FX market, and close the $6 billion gap ahead of the board review.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

2 days ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

2 days ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.