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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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Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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21 hours ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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21 hours ago

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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22 hours ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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