Business

Pakistan’s seeks $4 billion in approval from the IMF from Gulf countries.

Published

7 months ago

Farwa

The government is reportedly looking into other options to meet its needs for outside cash, including speaking with Mashreq Bank and Dubai Islamic Bank.

The CEO of Dubai Islamic Bank and Minister of Finance Muhammad Aurangzeb met virtually to talk about investment prospects, according to sources.

To meet its needs for outside funding, Pakistan is looking to banks in the Gulf to provide $4 billion in commercial loans. There are $26.4 billion in debt repayments that are due in the current fiscal year, which presents significant issues for the nation in terms of external finance. Moreover, Pakistan wants to repay $12 billion in loans from Saudi Arabia and China.

This is a good time to point out that Pakistan and the IMF signed a $7 billion, three-year aid package agreement on July 13.

As per the statement, Pakistan should be able to establish stronger, more inclusive, and resilient growth and consolidate macroeconomic stability with the help of the new program, which is subject to approval by the Fund’s Executive Board.

The IMF’s executive board must approve the agreement.

Nathan Porter, the head of the Fund’s mission to Pakistan, was quoted in the IMF statement as saying, “The program aims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers, and remove economic distortions to spur private sector-led growth.”

Business

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

Published

11 hours 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

12 hours 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.