Business

After PM’s 4th contact with IMF chief, Pakistan expects decision on stalled loan in a day or two

Published

11 months ago

Farwa

PM Shehbaz speaks to IMF MD Georgieva on phone call.
IMF chief hopes Pakistan’s economic situation to improve.
Pakistan desperately needs IMF loan to avoid default.

Prime Minister Shehbaz Sharif said Tuesday that Pakistan expects a decision on the International Monetary Fund’s (IMF) stalled bailout programme within a day or two as the struggling country continues to meet the lender’s demands.

The prime minister expressed hope after his telephone call with IMF Managing Director (MD) Kristalina Georgieva — his fourth contact with the lender’s boss in six days.

Rating agencies and economists fear that the $350 billion economy could default on its foreign debt obligations if it fails to secure the $1.1 loan tranche of the Extended Fund Facility (EFF).

The premier spoke to the IMF chief over the phone today after meeting her thrice — from Thursday to Saturday — on the sidelines of the New Global Financial Pact summit held in Paris, France.

The PM’s Office released a statement that the IMF chief and the prime minister discussed matters related to the stalled bailout programme.

On the call, the IMF chief acknowledged Finance Minister Ishaq Dar and his team’s efforts for attempting to revive the loan — after policy matters were discussed in Paris.

PM Shehbaz expressed hope that coordination on the points of the bailout programme would lead to a decision from the Washington-based lender in a day or two.

“The prime minister also reiterated his determination to achieve the goals of improving the economic situation through joint efforts,” the statement read.

The statement added that while hoping Pakistan’s economic situation would improve, the IMF chief appreciated the prime minister’s determination.

The South Asian nation is going through its worst economic crisis amid record inflation and interest rates, but it has seen prospects for its IMF loan take a positive turn before it expires at the end of the week.

In a dramatic final attempt to appease the lender, the nation agreed to raise taxes by $750 million and cut spending in its annual budget over the weekend.

Business

Pakistan’s gold prices are still declining; see the most recent

Published

2 days ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

2 days ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

2 days ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.