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The IMF reached a staff-level agreement with Pakistan.

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8 months ago

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According to an official statement published by an International Monetary Fund team led by Nathan Porter, the IMF secured a staff-level agreement with Pakistan on the second and final assessment of the country’s stabilisation programme, which is funded by the IMF’s US$3 billion (SDR2,250 million) SBA loan.

The deal is subject to confirmation by the IMF’s Executive Board, following which the remaining SBA access of US$1.1 billion (SDR 828 million) will become accessible.

Porter claimed that “Pakistan’s economic and financial situation has improved in the months since the first review, with growth and confidence continuing to recover as a result of prudent policy management and the resumption of inflows from multilateral and bilateral partners.” However, growth is expected to be modest this year, and inflation remains well above target. Continued policy and reform efforts are required to address Pakistan’s deep-seated economic vulnerabilities in the face of ongoing challenges posed by elevated external and domestic financing needs and an unsettled external environment.”

According to the IMF’s official statement, “the new government is committed to continuing the policy efforts that began under the current SBA to establish economic and financial stability for the remainder of this year.” In particular, the authorities are determined to deliver the FY24 general government primary balance target of PRs 401 billion (0.4 percent of GDP), with further efforts to broaden the tax base, and to continue with the timely implementation of power and gas tariff adjustments to keep average tariffs consistent with cost recovery while protecting the vulnerable through the existing progressive tariff structures, thus avoiding any net circular debt (CD) accumulation. The State Bank of Pakistan remains dedicated to implementing a prudent monetary policy to reduce inflation while also ensuring exchange rate flexibility and transparency in FX market operations.

In addition, Pakistan expressed interest in a successor medium-term Fund-supported programme aimed at permanently resolving Pakistan’s fiscal and external sustainability weaknesses, strengthening its economic recovery, and laying the groundwork for strong, sustainable, and inclusive growth.

While these discussions are scheduled to begin in the next few months, important objectives will be included.

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The KSE-100 is getting closer to the 100,000 level thanks to bullish momentum.

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5 minutes ago

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At 98,164.24 points, the benchmark KSE-100 Index is just 1,800 points away from the much-anticipated 100,000 level and is approaching a historic milestone.

Favorable macroeconomic indicators and high investor confidence have propelled the index’s bullish momentum as of 9:47 a.m. today.

The KSE-100 had a significant increase of 469.84 points, or 0.48%, on Friday, closing at 97,798.23 points. Market optimism was indicated by the index’s quick spike to an intraday high of 99,623.03 points.

Analysts have increased their estimates, predicting that by the end of 2025, the KSE-100 might rise to 120,000. Continued improvements in macroeconomic conditions, such as declining bond yields, are anticipated to be the main drivers of this spike since they are bringing more liquidity to the equities market.

Following the drop in bond yields, mutual funds have made about $132 million in investments in Pakistani stocks since January 2024. This influx of funds is considered a favorable indicator of investor sentiment.

The market has also risen as a result of the State Bank of Pakistan’s decision to reduce interest rates by a total of 700 basis points, from 22% in May 2024 to 15% now.

The All-Share Index, which measures the overall market, also showed robust gains. With a net increase of 280.51 points, or 0.44%, it was at 62,376.87 points. Expectations of additional growth in the equity market are being bolstered by this encouraging trend.

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

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

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4 days 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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