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IMF to continue providing support to Pakistan after ‘new govt is formed’

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3 years ago

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  • “There is no concept of suspension within IMF programme,” IMF says.
  • Fund’s statement indicates the three-year EFF has been put on hold for the third time since it began in May 2019.
  • “Once a new govt is formed, we will enquire about intentions vis-a-vis programme engagement,” the statement is reads.

ISLAMABAD: Amid the ongoing constitutional crisis in the country, the dissolution of the National Assembly, and the announcement of early elections, the International Monetary Fund (IMF) Monday assured Pakistan that it would continue its support to the country “once the new government is formed.”

“There is no concept of suspension within the IMF programme,” the Fund said in a brief statement issued in this regard.

Speaking to Geo.tv, Pakistan-Kuwait Investment Company’s Head of Research Samiullah Tariq said: “I think as the country is in a [political] transition, they need authorities for commitment regarding policies.”

The statement from the IMF also indicates that the seventh review has ended and the three-year Extended Fund Facility (EFF) has been put on hold for the third time since it began in May 2019.

In May 2019, Pakistan and the IMF reached a staff-level agreement on economic policies for a three-year Extended Fund Facility (EFF).

Under the agreement, Pakistan was to receive about $6 billion for a period of 39 months, and so far it has received almost half it.

The IMF programme was scheduled to end in September.

Earlier, top official sources said the IMF and the now-former PTI-led government of Pakistan had reached a deadlock amid talks for the seventh review after the Fund discovered a yawning gap between the cost and official estimates provided by Pakistani authorities for the Prime Minister Imran Khan’s relief package and Kamyab Pakistan Programme (KPP).

Meanwhile, on the eve of voting on the no-confidence motion, former PML-N finance minister Miftah Ismail shared in an exclusive interview with The News that after PM Imran Khan is ousted from his office, the first thing the newly-formed government will do was to renegotiate with the IMF, convincing them to release remaining amount of the $6 billion loan tranche within a period of next six months.

However, all hopes shattered when National Assembly’s Deputy Speaker Qasim Suri barred the leaders from voting on the no-confidence motion, terming it “unconstitutional.”

Amid all the political drama that took place on April 3, the authorities were concerned about the reactions of the international institutions; however, the Fund reiterated its stance that it looks to continue its support to Pakistan.

“Once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis programme engagement,” the statement is read.

Alpha Beta Core CEO Khurram Schehzad, however, believes IMF’s stance is a “usual thing”; because after the dissolution of the National Assembly, Pakistan does not have a finance minister at the moment, while the tenure of the State Bank of Pakistan (SBP) Governor Reza Baqir is about to end.

“For consultations with IMF two officials are important – finance minister and SBP governor,” he said.

The analyst, however, added that now when the new government would take charge they would initiate a new programme with the Fund or will convert the existing $6 billion programme.

“Under the current situation, chances are that the new government will negotiate with the Fund on the new programme,” he said. However, it is worth mentioning that one cannot rule out the idea that the already existing programme will be ended – it can continue as well (depending on the situation).

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FO admits that a boat capsized in Greece, killing four Pakistanis.

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1 week ago

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The deaths of four Pakistanis in a boat capsizing event close to the southern Greek island of Goudos have been verified by the Foreign Office.

The incident happened on Sunday and at least five illegal immigrants drowned as a result. According to Greek Coast Guards, 39 people were rescued after the wooden boat overturned, but 40 more are still unaccounted for.

According to a Foreign Office spokeswoman, the four Pakistani nationals were among those killed in the catastrophe. In order to help the remaining Pakistanis and repatriate the corpses of the deceased, the Pakistani Embassy in Athens has been in close communication with Greek authorities, she said.

Additional information was given by Aamir Aftab Qureshi, Pakistan’s ambassador to Greece, during a press conference. According to him, there were 80 Pakistanis on board the doomed boat, and efforts are still being made to find the people who are still missing.

He added that the overcrowding on the boat was a factor in the capsizing. There are worries over the safety of the missing people because a sizable portion of them are children. He stated that five boats carrying Pakistani nationals were traveling illegally from Libya.

The public was also informed by Ambassador Qureshi that the government will pay for the return flight of the accident victims’ bodies.

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Every office will have a biometric system installed by Lesco.

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2 weeks ago

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system in each office.

Details show that the LESCO had ordered the installation of biometric systems in all offices, including the divisions and the circle.

The installation of the biometric system at the headquarters resulted in an increase in attendance, as the LESCO CEO had stated.

The CEO of LESCO claimed that the biometric system has resolved the issues related to the fictitious overtime and off-days.

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Around 450 Pakistanis have successfully crossed into Lebanon from Syria, according to a briefing from the Foreign Office.

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2 weeks ago

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Approximately 450 Pakistanis, including 250 Zaireen, have successfully crossed into Lebanon from Syria, according to the spokesperson for the Foreign Office, Mumtaz Zahra Baloch.

During her weekly briefing at the foreign office in Islamabad, she stated that Pakistan is pleased with the resolution passed by the United Nations General Assembly on the Gaza Strip, which calls for an immediate ceasefire.

In addition, she expressed her satisfaction with the elimination of limits placed on UNRWA’s ability to carry out relief activities in the Gaza Strip and the West Bank.

It was stated by her that Pakistan is demanding an immediate cessation of hostilities in Palestine, an end to the genocide that is taking place in Gaza, the protection of civilians and civilian infrastructure, unrestricted access to humanitarian aid for those who are in urgent need, full support for the United Nations Relief and Works Agency (UNRWA) and its mandated humanitarian activities, and medical assistance for those who are in urgent need.

Moreover, she stated that Pakistan emphasises the need for the international community to hold Israel accountable for the war crimes and crimes against humanity that it has committed in occupied lands.

The Israeli aggression against Syria, the illegitimate acquisition of Syrian territory, and the massive devastation of Syrian infrastructure as well as civilian and military sites are all topics that Pakistan is extremely worried about, according to the spokesperson for Pakistan.

According to her, this attack on Syria’s sovereignty and territorial integrity is a serious violation of international law to the highest degree. By expressing our support for Syria’s sovereignty and territorial integrity, we are also expressing our opposition to the Israeli government’s attempt to acquire territory through coercion.

The resolution 497 of the United Nations Security Council, which declares the annexation of the Golan Heights by Israel to be null and illegal and to have no international legal impact, was reaffirmed by her organisation.

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