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IMF ‘satisfied’ with Pakistan but no deal this week

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2 years ago

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  • Finance minister says Pakistan “very close” to signing SLA with IMF.
  • Says Pakistan “absolutely committed” to completing IMF programme.
  • Calls for correcting mistakes made on the economic front in the last four years. 

Finance Minister Ishaq Dar on Thursday said that the International Monetary Fund (IMF) was “satisfied” with Pakistan’s actions but the staff-level agreement could not be signed this week.

“We seem to be very close to signing the staff-level agreement hopefully in the next few days,” Dar said in his address during a seminar titled “Reviving Economic Stability through the Strengthening of Public Financial Management” in the federal capital. 

However, the finance minister, while citing his experience of completing 12 reviews of the “one and only” IMF programme Pakistan completed, shared that “it has taken longer than it should have” for Islamabad to complete the pending ninth review.

“I think we owe to this nation that we show seriousness, we deliver and we demonstrate to the world that we can honour the sovereign commitments no matter who made those,” said Dar. He also assured that his team was “absolutely committed” to completing the programme to the “best” of their ability.  

While berating the Imran Khan-led government, Dar shared the situation of the economy when the Pakistan Muslim League-Nawaz (PML-N) government left in 2018.

The minister said that it pained him to see the economy fall to the rank of 47 in 2022 after it was predicted that Pakistan would join G20 by the end of 2030. 

The finance czar also highlighted that the Pakistan Stock Exchange’s (PSX) market capitalisation was over $100 billion but dropped to $26 billion in the last few years.  

“Another serious issue that we should be pondering about is the debt sustainability of Pakistan,” said the finance minister. He added that it was under $30 trillion in 2018 and has now climbed to $55 trillion in 2022. 

“As a consequence, this country which used to have debt servicing of less than $2 trillion per annum in the fiscal year 2016-17 has risen to over $5 trillion,” said Dar.

“I think in the last few years, we should see what mistakes we have made on the economic front and we should try to correct those as soon as possible,” said the finance minister.

‘IMF deal not to be signed this week’

Later, to a question by a journalist, the finance minister said the agreement will not be finalised this week.

“Staff-level agreement with IMF is unlikely this week,” said the finance minister, adding that the Fund was “satisfied” with the actions taken by Pakistan.

When pressed that he had assured of striking the SLA by this week, Dar responded: “I said a few days, not this week.”

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In interbank trade, the Pakistani rupee beats the US dollar.

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7 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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1 week ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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