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

The IHC upholds Bushra Bibi’s request to be transferred from Bani Gala to Adiala Jail.

Published

15 hours ago

Farwa

Bushra Bibi’s request to be transferred from Bani Gala to Adiala Jail was granted by the Islamabad High Court (IHC) on Thursday.

The former first lady Bushra Bibi’s application to be transferred from Bani Gala sub-jail to Adiala was heard today.

Details reveal that the Islamabad High Court heard a motion to restore the denied petition about the relocation of Bushra Bibi, the wife of PTI founder, from sub-jail Bani Gala to Adiala.

The application for the reinstatement of appeal was heard by Justice Miagul Hassan Aurangzeb. When state attorney Abdul Rehman entered the courtroom on behalf of the state, Usman Riaz Gill represented the former first lady.

State counsel did not object to the appeal being restored during court proceedings. At the following hearing, the court asked for assistance in determining what conditions must be met for a location to be designated as a sub-jail.

The court also mandated that Bushra Bibi’s medical examination be scheduled. The court subsequently delayed the hearing and gave instructions to fix the appeal for April 22.

Recall that the attorneys for former first lady Bushra Bibi, Barrister Salman Safdar, Usman Riaz Gill, and Khalid Yusuf Chaudhary, had filed an application to restore the dismissed appeal a day ago, but the Islamabad High Court had denied their request to pursue the case.

The petition contended that the traffic gridlock at the Sarina Chowk checkpoint was the reason for the delay in getting to the court.

The attorneys did not purposefully take their time getting to court. They warned that the petitioner would suffer irreversible loss if the petition was not resurrected.

IHC Justice Miangul Hassan Aurangzeb has voiced his displeasure at the absence of attorneys from the court.

According to Judge Aurangzeb, the former first lady would have been imprisoned if Bushra Bibi’s attorneys had prevailed in this case. The attorneys themselves were opposed to Bushra Bibi’s incarceration.

Latest News

oath-taking ceremony for the Balochistan cabinet postponed

Published

15 hours ago

Farwa

The Balochistan cabinet’s oath-taking ceremony, which was supposed to take place at the Governor’s House today (Thursday), has been rescheduled.
The Governor’s House spokeswoman announced that the Balochistan cabinet’s swearing-in event has been postponed. Nevertheless, there was no explanation provided for the ceremony’s postponement.

It is important to note that the 14-member Balochistan cabinet, which consists of two members from the Balochistan Awami Party (BAP) and six ministers from the Pakistan Muslim League-Nawaz (PML-N) was set to take the oath of office today, Thursday.

Latest News

PMD forecasts rain throughout the majority of the nation.

Published

15 hours ago

Farwa

During the next 24 hours (Thursday–Friday), the Pakistan Meteorological Department (PMD) has predicted rain, windstorms, thunderstorms, and a few torrential downpours or hailstorms throughout the majority of Khyber Pakhtunkhwa, Gilgit-Baltistan, Kashmir, Islamabad, Punjab, and Balochistan.

In several areas of Sindh, a rain-windstorm/thunderstorm is anticipated. Much of Balochistan is being hit by a powerful westerly wave trough, which is expected to spread to the top regions by April 18.

Prolonged downpours have the potential to cause flash flooding in Balochistani local streams and drains, particularly in Gwadar, Jiwani, Pasni, Ormara, Kech, Awaran, Kharan, Panjgur, Washuk, Noshki, Lasbela, Khuzdar, and Kalat.

On April 18–20, heavy rains could cause flash floods in tributaries of the Kabul River as well as in Dir, Swat, Chitral, Kohistan, Manshera, Gilgit–Baltistan, Kashmir, and other areas.

Lower Khyber Pakhtunkhwa, Murree, Galiyat, Kashmir, and Gilgit-Baltistan are among the regions where landslides may occur.

At this time, standing crops, power poles, cars, solar panels, and other objects may sustain damage from wind, hail, and lightning, according to meteorologists.

Upper Sindh and Balochistan saw rain, wind, and thunderstorms in the past 24 hours. During the era, there were also significant rainfalls in South Balochistan. Wednesday’s highs of 42 degrees Celsius in Mithi kept it as the country’s hottest spot.

Officials reported that lightning-related storm-related occurrences claimed the lives of at least 65 people in Pakistan, where the rate of precipitation in April has so far been roughly twice that of previous years. Floods and house collapses were caused by heavy downpours that occurred between Friday and Monday. Lightning claimed 28 lives.

32 people, including 15 children, have killed and over 1,300 homes have been damaged in northwest Khyber Pakhtunkhwa, which has suffered the greatest victim count.

The meteorological experts report that there is little probability of rain, despite the fact that drizzle fell in numerous areas of Karachi.