Business

Pakistan, IMF discuss energy sector losses in virtual talks

Published

9 months ago

Farwa

Govt shares new Circular Debt Management Plan with IMF.
FPA and quarterly tariff adjustment to be revised upward.
IMF asks govt to chalk out effective strategy to tackle this issue.

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) discussed the energy sector losses in the context of a cut in the circular debt during the current fiscal year in a virtual meeting on Wednesday, The News reported.

With the goal of eliminating the accumulation of circular debt, the government showed its commitment to adjusting the fuel prices and the quarterly tariff.

The government also shared a new Circular Debt Management Plan (CDMP) with the lender for which the baseline tariff was previously increased.

Now the fuel price adjustment (FPA) and quarterly tariff adjustment would be revised upward in order to reduce accumulation of the circular debt. The IMF team raised the issue of the sustainability of the CDMP as the pace of recoveries declined.

The government was asked to chalk out an effective strategy to tackle this issue. This meeting was held virtually at the technical level and it was expected that the newly inducted Minister for Finance Dr Shamshad Akhtar might hold a meeting with the IMF team virtually in the coming weeks.

The IMF mission is expected to hold the first review in October or November on the basis of official macroeconomic figures for the first quarter (July-Sept) period of the current fiscal year.

Pakistan and the IMF struck $3 billion bailout package under Standby Arrangement (SBA) in July 2023, out of which Islamabad so far secured $1.2 billion as upfront installment.

Now, two reviews would be done to release the remaining $1.8 billion till the end of March/April 2024.

Business

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

Published

3 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

3 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

3 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.