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The IMF reached a staff-level agreement with Pakistan.

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11 months ago

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According to an official statement published by an International Monetary Fund team led by Nathan Porter, the IMF secured a staff-level agreement with Pakistan on the second and final assessment of the country’s stabilisation programme, which is funded by the IMF’s US$3 billion (SDR2,250 million) SBA loan.

The deal is subject to confirmation by the IMF’s Executive Board, following which the remaining SBA access of US$1.1 billion (SDR 828 million) will become accessible.

Porter claimed that “Pakistan’s economic and financial situation has improved in the months since the first review, with growth and confidence continuing to recover as a result of prudent policy management and the resumption of inflows from multilateral and bilateral partners.” However, growth is expected to be modest this year, and inflation remains well above target. Continued policy and reform efforts are required to address Pakistan’s deep-seated economic vulnerabilities in the face of ongoing challenges posed by elevated external and domestic financing needs and an unsettled external environment.”

According to the IMF’s official statement, “the new government is committed to continuing the policy efforts that began under the current SBA to establish economic and financial stability for the remainder of this year.” In particular, the authorities are determined to deliver the FY24 general government primary balance target of PRs 401 billion (0.4 percent of GDP), with further efforts to broaden the tax base, and to continue with the timely implementation of power and gas tariff adjustments to keep average tariffs consistent with cost recovery while protecting the vulnerable through the existing progressive tariff structures, thus avoiding any net circular debt (CD) accumulation. The State Bank of Pakistan remains dedicated to implementing a prudent monetary policy to reduce inflation while also ensuring exchange rate flexibility and transparency in FX market operations.

In addition, Pakistan expressed interest in a successor medium-term Fund-supported programme aimed at permanently resolving Pakistan’s fiscal and external sustainability weaknesses, strengthening its economic recovery, and laying the groundwork for strong, sustainable, and inclusive growth.

While these discussions are scheduled to begin in the next few months, important objectives will be included.

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The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

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3 days ago

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As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

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In January 2025, RDA inflows reach 9.564 billion USD.

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2 weeks ago

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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2 weeks ago

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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