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Pakistan again seeks US help to unlock stalled IMF programme

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1 year ago

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  • US Ambassador Donald Blome calls on Ishaq Dar.
  • “Dar asks envoy to help in unlocking critial IMF loan”.
  • Hopes are diminishing for revival of IMF programme.

ISLAMABAD: Minister for Finance and Revenue Senator Ishaq Dar has again sought the United States’ help to unlock the stalled $1.1 billion International Monetary Fund loan, sources told Geo News Wednesday.

The US is a significant player in the IMF, and Pakistan seeks to use its position as a long-time ally for concluding the Extended Fund Facility’s ninth review.

The development came during Dar’s meeting with US Ambassador to Pakistan Donald Blome.

“[Both sides] discussed matters of mutual interest between the two countries,” a statement from the Ministry of Finance read.

Despite several attempts from the Pakistani side, hopes are diminishing for the revival of the IMF programme, which will expire on June 30.

The IMF sent out its review mission on January 31 to February 9, 2023, but the Staff Level Agreement (SLA) could not be signed.

The lender placed strict conditions before signing the SLA, which Pakistan said had already been met.

Minister for Finance Dar held virtual meetings with the IMF high-ups in April to strike a consensus but failed to break the ice between the two sides.

Then the prime minister made a telephone call to IMF MD and discussed issues for the revival of the stalled programme. However, nothing substantial was achieved.

Later, IMF Resident Chief Esther Perez Ruiz issued a statement criticising the budget 2023-24.

The Ministry of Finance also issued a statement in its response, but both sides showed commitment to remain engaged for the conclusion of the pending ninth review.

Pakistan has also asked the Washington-based lender to arrange a meeting of Prime Minister Shehbaz Sharif with IMF Managing Director Kristalina Georgieva on the sidelines of the upcoming New Global Financing Pact Summit being held in Paris from June 22-23.

“If this request is turned down, then there will be no possibility of reviving the Fund programme under the $6.7 billion Extended Fund Facility. However, if the meeting is held and both sides achieve a breakthrough, then chances of reviving the programme will brighten,” a top official said while talking to The News on Tuesday.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) stand at around $4 billion, enough to cover less than a month’s imports.

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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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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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2 days ago

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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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