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Miftah Ismail says Pakistan could get $2 billion from IMF

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2 years ago

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  • Miftah Ismail says may receive $2 billion instead of $1 billion from IMF.
  • Pakistan receives MEFP from IMF for seventh, eighth reviews.
  • This critical development signals two sides have reached an agreement.

ISLAMABAD: Finance Minister Miftah Ismail said Tuesday that Pakistan could get $2 billion instead of $1 billion from the International Monetary Fund (IMF).

The finance minister made the comments during his address at the “Turn Around Pakistan” conference after he confirmed Pakistan has received the Memorandum of Economic and Financial Policies (MEFP) from the IMF for the seventh and eighth reviews.

This is a critical development signalling that the two sides have reached an agreement. The draft MEFP is a prerequisite to paving the way towards striking a staff-level agreement.

Now that Pakistan has received this document, it will be analysed and scrutinised for three days by the country’s economic team.

The finance minister and State Bank of Pakistan governor will then sign it if no major problem is found.

The staff-level agreement will then be presented before the IMF’s Executive Board next month for approval, after which the tranche will be released.

The MEFP may be considered as the crux of decisions negotiated between Pakistan and the Fund because it includes policy actions and structural benchmarks the two sides agreed on.

Pakistan reached IMF accord after US help: sources

Earlier, sources had said Pakistan reached the accord with IMF with the “help” of the United States, as Islamabad made major progress on the discussions held with the lender regarding the federal budget for fiscal year 2022-23.

Speaking on Geo News programme Geo Pakistan, anchor Shahzad Iqbal said that according to his information, Islamabad did get benefit from reaching out to the US because IMF’s attitude earlier was very rigid and the Fund was putting harsh conditions and probably would have refused to close a deal with the country.

However, the anchorperson added, the US pressure made this possible for Pakistan, but there were still no concessions in conditions.

Major progress in talks with Pakistan: IMF

Last Tuesday, the Pakistani authorities and the IMF evolved a broader agreement on budget 2022-23 to revise upward the Federal Board of Revenue’s target and slash expenditures to achieve a revenue surplus in the next fiscal year.

The next day, IMF Resident Representative to Pakistan Esther Perez Ruiz said that discussions between the Fund and Pakistan are underway and major progress had been made regarding the budget.

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

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5 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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6 days 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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6 days 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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