Business

Pakistan hopes to sign IMF deal before budget: Bloomberg

Published

2 years ago

Farwa

Pakistan eyeing secure $2bn in external financing.
Authorities say secured $4bn out of $6bn requirement.
Pakistan says committed to completing IMF programme.

In its last-ditch efforts to revive the stalled International Monetary Fund (IMF) loan, Pakistan is eyeing to secure $2 billion in external financing to bridge the $6 billion gap for resuming the bailout programme.

The Ministry of Finance, in an emailed response to Bloomberg, said the government has lined up $4 billion in external financing and hopes to strike a deal with the Washington-based lender before unveiling the budget this Friday.

The government remains on tenterhooks, with urgency growing for resuming the $6.7 billion programme — signed in 2019 and set to expire in June this year — as external financing and exchange-rate policy among the biggest hurdles.

Due to the disagreements between the local authorities and the lender, the ninth review has been stalled for more than six months, one of the longest delays for a review.

“Pakistan remains committed to completing the IMF programme and has already demonstrated its seriousness,” the ministry said.

The ministry further added that it remains committed to mobilising additional liquidity despite a significant contraction of the current-account deficit which has reduced the requirement.

Saudi Arabia and the United Arab Emirates have committed to provide fresh financing of $3 billion to Pakistan. China and its state-owned banks have rolled over $4 billion in loan commitments.

In an email to Bloomberg, IMF’s Resident Representative for Pakistan Esther Perez Ruiz said the programme would restart once the authorities follow the lender’s programme goals, present adequate financing while presenting the budget, and there is “proper market functioning” of the Pakistani rupee.

“IMF staff continues the engagement with the Pakistani authorities to pave the way for a Board meeting before the current programme expires,” said the official.

The South Asian nation has to repay around $22 billion of external loans — five times its foreign exchange reserves — during the next fiscal year, beginning in July, according to Columbia Threadneedle Investments.

The coalition government has taken a host of measures — including raising taxes, hiking energy prices, and allowing the rupee to weaken against the dollar — to meet IMF demands.

Once the IMF loan comes in, it will allow Pakistan to unlock further financing from other multilateral.

These funds will help the $350 billion economy overcome a dollar crunch, ease supply shortages, and pull the South Asian nation out of default risks ahead of the elections — scheduled to take place later this year.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

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

Published

1 week ago

Farwa

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.

Business

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

Published

1 week ago

Farwa

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.