Pakistan

IMF to continue providing support to Pakistan after ‘new govt is formed’

Published

2 years ago

Farwa

“There is no concept of suspension within IMF programme,” IMF says.
Fund’s statement indicates the three-year EFF has been put on hold for the third time since it began in May 2019.
“Once a new govt is formed, we will enquire about intentions vis-a-vis programme engagement,” the statement is reads.

ISLAMABAD: Amid the ongoing constitutional crisis in the country, the dissolution of the National Assembly, and the announcement of early elections, the International Monetary Fund (IMF) Monday assured Pakistan that it would continue its support to the country “once the new government is formed.”

“There is no concept of suspension within the IMF programme,” the Fund said in a brief statement issued in this regard.

Speaking to Geo.tv, Pakistan-Kuwait Investment Company’s Head of Research Samiullah Tariq said: “I think as the country is in a [political] transition, they need authorities for commitment regarding policies.”

The statement from the IMF also indicates that the seventh review has ended and the three-year Extended Fund Facility (EFF) has been put on hold for the third time since it began in May 2019.

In May 2019, Pakistan and the IMF reached a staff-level agreement on economic policies for a three-year Extended Fund Facility (EFF).

Under the agreement, Pakistan was to receive about $6 billion for a period of 39 months, and so far it has received almost half it.

The IMF programme was scheduled to end in September.

Earlier, top official sources said the IMF and the now-former PTI-led government of Pakistan had reached a deadlock amid talks for the seventh review after the Fund discovered a yawning gap between the cost and official estimates provided by Pakistani authorities for the Prime Minister Imran Khan’s relief package and Kamyab Pakistan Programme (KPP).

Meanwhile, on the eve of voting on the no-confidence motion, former PML-N finance minister Miftah Ismail shared in an exclusive interview with The News that after PM Imran Khan is ousted from his office, the first thing the newly-formed government will do was to renegotiate with the IMF, convincing them to release remaining amount of the $6 billion loan tranche within a period of next six months.

However, all hopes shattered when National Assembly’s Deputy Speaker Qasim Suri barred the leaders from voting on the no-confidence motion, terming it “unconstitutional.”

Amid all the political drama that took place on April 3, the authorities were concerned about the reactions of the international institutions; however, the Fund reiterated its stance that it looks to continue its support to Pakistan.

“Once a new government is formed, we will engage on policies to promote macroeconomic stability, and enquire about intentions vis-a-vis programme engagement,” the statement is read.

Alpha Beta Core CEO Khurram Schehzad, however, believes IMF’s stance is a “usual thing”; because after the dissolution of the National Assembly, Pakistan does not have a finance minister at the moment, while the tenure of the State Bank of Pakistan (SBP) Governor Reza Baqir is about to end.

“For consultations with IMF two officials are important – finance minister and SBP governor,” he said.

The analyst, however, added that now when the new government would take charge they would initiate a new programme with the Fund or will convert the existing $6 billion programme.

“Under the current situation, chances are that the new government will negotiate with the Fund on the new programme,” he said. However, it is worth mentioning that one cannot rule out the idea that the already existing programme will be ended – it can continue as well (depending on the situation).

Latest News

Rainfall throughout the night stops flights in Lahore.

Published

13 hours ago

Farwa

Allama Iqbal International Airport experienced many hours of flight disruption due to the intense rainfall and windstorms that occurred overnight in Lahore, the provincial capital of Punjab.

Aviation sources claim that because of the monsoon weather, the flight operation was unable to operate between 3 and 4 am.

It is possible that the planes will arrive at the airport at 4 am.

Amidst delays in foreign airline flights, three aircraft made landings in Multan and Peshawar.

Riyadh flights arrived in Peshawar Airport, while flights scheduled to land in Lahore in Abu Dhabi and Bahrain ended up landing in Multan Airport.

Seven hours later than scheduled, the Qatar Airways flight from Doha arrived in Lahore.

Because of the bad weather, there are delays in the arrival and departure of numerous international planes.

Latest News

Changes to Pakistan’s Test team could be significant for the Bangladesh series.

Published

14 hours ago

Farwa

Major changes to Pakistan’s team are anticipated ahead of the forthcoming Test series against Bangladesh, sources in Lahore have revealed.

As the team gets ready for the series, meetings with the players are planned for next week.

It is predicted that the Test squad would undergo several changes. The team’s lineup is expected to be strengthened by the likely inclusion of Muhammad Huraira. Key players like Faheem Ashraf, Wasim Jr., Saim Ayub, and Nauman Ali, whose contributions are vital to the team’s success, struggle to get a spot on the squad.

Furthermore, according to sources, Imamul Haq or Sahibzada Farhan are anticipated to be added to the team, subject to additional assessment. Furthermore, following a fitness assessment, Amir Jamal and Hasan Ali’s futures will be determined.

The ultimate selection for the Test team will take place following Red Ball head coach Jason Gillespie’s return to Pakistan. The ultimate squad that will play Bangladesh in the forthcoming Test series will be greatly influenced by his assessments and thoughts.

Pakistan is scheduled to visit New Zealand in March and April of 2025, according to the country’s official cricket schedule, which was released earlier this month.

Throughout their visit, the Pakistan cricket team will play three One Day Internationals (ODIs) and five Twenty20 Internationals (T20Is) in an exciting series.

The T20I series, which starts at Hagley Oval in Christchurch on March 16, will serve as the tour’s opening event.

Latest News

PM Meets With KP Lawmakers: Promises Progression and Relief Efforts in Province

Published

14 hours ago

Farwa

Khyber Pakhtunkhawa lawmakers are given assurances by Prime Minister Shehbaz Sharif regarding the province’s development, namely in the amalgamated districts, with a particular emphasis on the provision of standard health and educational facilities.

Khyber Pakhtunkhwa National and Provincial Assembly members paid a visit to Prime Minister Muhammad Shehbaz Sharif at PM House.

During the meeting, the Prime Minister stated that the PML-N Government has always given priority to the development of the combined districts.

The prime minister promised that the combined Districts would have standard health and educational facilities, and that Danish Schools would be established nearby to offer local pupils an education of the highest caliber possible.

The PM also underlined the importance of promoting solar energy, combating electricity theft, and helping the middle class and impoverished.

He said that in order to boost the agriculture sector’s growth, expand the amount of land under cultivation, and reduce the nation’s reliance on foreign fuel imports, the government was converting agricultural tubewells to solar energy nationwide.

According to PM Shehbaz Sharif, the government recently provided significant reduction from electricity rates for those with low and moderate incomes.

At the event, he also announced the creation of a committee headed by the deputy prime minister, whose goal will be to identify long-term solutions to the issues facing Khyber Pakhtunkhwa’s elected officials.

He argued that in order to preserve the nation from going into default, the current government had to make difficult political choices in order to revitalize the economy.

The parliamentarians gave Prime Minister Shehbaz Sharif high marks for his visionary leadership in transforming Pakistan’s economy.