Business

Pakistan hopes to sign IMF deal before budget: Bloomberg

Published

11 months 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

The inaugural flight of Azerbaijan Airlines is between Baku and Karachi.

Published

22 hours ago

Farwa

The national airline of Azerbaijan launched direct flights from Baku to Karachi today. There will be two weekly flights on this route, on Thursdays and Sundays.

The first flight will land in Karachi, and Azerbaijan’s ambassador, Khazar Farhadov, will be there to greet it.

This evening also marks the departure of the inaugural flight from Karachi to Baku, in addition to the arrival of the flight from Baku.

Azerbaijan Airlines said last month that it would be growing its network and flight operations in Pakistan.

Aviation insiders have verified that Azerbaijan Airlines is preparing to launch service to Karachi in the coming month of April.

In addition to its current services in Islamabad and Lahore, the airline plans to launch its Karachi route on April 18, with the inaugural flight anticipated to depart on that date.

Azerbaijan Airlines has been given permission to operate flights on the Karachi route, according to sources within the Civil Aviation Authority (CAA).

Following a bilateral agreement between the two nations, Azerbaijan Airlines has been given permission to extend its operations in Pakistan.

Business

Fly Jinnah opens a new route internationally.

Published

22 hours ago

Farwa

Two weekly flights will be the starting frequency of the new route, which will connect the two cities.

According to a representative for Fly Jinnah, the company is pleased to announce the opening of a third international route from Islamabad to Muscat, the capital city of Oman, marking another significant milestone after the successful debut of flights from Islamabad and Lahore to Sharjah.

According to him, this development is in line with our goal of giving our clients more options for reasonably priced, value-driven local and international air travel.

The airline serves five main cities in Pakistan: Karachi, Lahore, Islamabad, Peshawar, and Quetta. Its fleet consists of five Airbus A320 aircraft, all of which are contemporary.

In addition to the current flight path to Sharjah, United Arab Emirates, this new route expands Fly Jinnah’s network of foreign destinations.

Business

Tajir Dost app: traders don’t seem interested in registering

Published

22 hours ago

Farwa

To tax retailers in Pakistan, the Tajir Dost app was released. The sources stated that the government hopes to tax 3.5 million merchants through the app.

Ajmal Baloch, the president of All-Pakistan Anjuman-e-Tajran, stated that he made reservations with FBR on the SRO within a week.

The Federal Board of Revenue (FBR), according to him, cannot be a “Tajir Dost” because of its unethical actions.

Baloch believed that since electricity bills allow traders to pay a predetermined advance income tax, further taxes are unnecessary.

The trader, according to him, is already paying thirteen different kinds of taxes on the commercial meter. “A trader already pays between Rs. 15,000 and Rs. 20,000 in taxes annually, but you are requesting Rs. 1,200 per month in taxes.”

Mr. Ajmal summoned representatives of the Federal Board of Revenue (FBR) to a meeting with the trade associations to talk about the indirect taxes that the merchants are paying.

Additionally, he claimed that FBR officers are charging the traders, the majority of whom are less educated, “monthly charges.”