Business

The IMF reached a staff-level agreement with Pakistan.

Published

2 months ago

Farwa

According to an official statement published by an International Monetary Fund team led by Nathan Porter, the IMF secured a staff-level agreement with Pakistan on the second and final assessment of the country’s stabilisation programme, which is funded by the IMF’s US$3 billion (SDR2,250 million) SBA loan.

The deal is subject to confirmation by the IMF’s Executive Board, following which the remaining SBA access of US$1.1 billion (SDR 828 million) will become accessible.

Porter claimed that “Pakistan’s economic and financial situation has improved in the months since the first review, with growth and confidence continuing to recover as a result of prudent policy management and the resumption of inflows from multilateral and bilateral partners.” However, growth is expected to be modest this year, and inflation remains well above target. Continued policy and reform efforts are required to address Pakistan’s deep-seated economic vulnerabilities in the face of ongoing challenges posed by elevated external and domestic financing needs and an unsettled external environment.”

According to the IMF’s official statement, “the new government is committed to continuing the policy efforts that began under the current SBA to establish economic and financial stability for the remainder of this year.” In particular, the authorities are determined to deliver the FY24 general government primary balance target of PRs 401 billion (0.4 percent of GDP), with further efforts to broaden the tax base, and to continue with the timely implementation of power and gas tariff adjustments to keep average tariffs consistent with cost recovery while protecting the vulnerable through the existing progressive tariff structures, thus avoiding any net circular debt (CD) accumulation. The State Bank of Pakistan remains dedicated to implementing a prudent monetary policy to reduce inflation while also ensuring exchange rate flexibility and transparency in FX market operations.

In addition, Pakistan expressed interest in a successor medium-term Fund-supported programme aimed at permanently resolving Pakistan’s fiscal and external sustainability weaknesses, strengthening its economic recovery, and laying the groundwork for strong, sustainable, and inclusive growth.

While these discussions are scheduled to begin in the next few months, important objectives will be included.

Business

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

Published

7 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

1 week 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

1 week 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.