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Pakistan's newly elected government has presented an ambitious federal budget for 2024-2025, aiming to raise tax revenue by nearly 40% to address the country's mounting debt crisis and secure a new deal with the International Monetary Fund (IMF). The budget promises to control the public debt-to-GDP ratio, which is a critical concern for Pakistan and its lenders. However, the government faces challenges in raising taxes due to a historically narrow tax base, low public awareness of tax filing requirements, and potential resistance to implementing drastic reforms. The success of the budget plan will be crucial in securing the IMF deal and putting Pakistan on a path to economic stability and development. [Extracted from the article]

Pakistan is considering a 5-year extension on its $15.36 billion debt owed to Chinese Independent Power Producers (IPPs) as an IMF team arrives to assess its debt repayment capabilities. The extension would require approval from the Chinese government and its IPPs, leading to extensive negotiations. Pakistani authorities argue that extending the debt tenor would spread the burden of debt repayments over a longer period, easing financial pressure on consumers and improving economic stability. However, the negotiations could result in an increase in financing costs. The IMF has requested Pakistan to provide details of its outstanding liabilities, including pensions, State Owned Enterprises (SOEs), and subsidies, to better understand the government's actual debt. [Extracted from the article]

The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan on the final review of a $3 billion bailout. This agreement acknowledges Pakistan's progress in implementing reforms and aims to support the country's economic recovery. The IMF mission chief in Pakistan highlighted positive developments in Pakistan's economy, but also cautioned that growth is expected to be modest and inflation remains high. The agreement has received a positive response, with shares at the Pakistan Stock Exchange rising. Pakistan is now looking towards a longer and larger economic bailout package with the IMF, and further discussions on economic initiatives are scheduled. [Extracted from the article]

Pakistan has made significant progress in achieving its economic goals, according to the International Monetary Fund (IMF). The IMF expressed satisfaction with Pakistan's economic performance and praised the government for taking ownership of the loan program. The Pakistani team informed the IMF about the country's economic performance and expressed a desire to negotiate for a new deal after completing the current program. Pakistan is set to receive a $1.1 billion tranche upon successful completion of the final assessment. [Extracted from the article]

Pakistani authorities are considering increasing the upcoming IMF bailout package from $7.5 billion to $8 billion by leveraging Climate Finance in conjunction with the Extended Fund Facility (EFF). Discussions about increasing the program's size took place during the finalization of the previous Standby Arrangement (SBA) program in June 2023, but the IMF deferred the request. Pakistan is now exploring avenues to integrate climate finance into the EFF program, drawing inspiration from Bangladesh's approach. The augmentation of the IMF program could potentially increase to $7.5 or $8 billion, taking into account Pakistan's quota available under Special Drawing Rights (SDRs). Pakistan's recent approval of the Public Investment Management Assessment (PIMA) framework, including Climate-PIMA, demonstrates its commitment to improving public investment management to support economic growth and climate resilience. The exploration of climate finance augmentation alongside IMF support reflects Pakistan's proactive approach to addressing financial needs while prioritizing sustainable development goals. [Extracted from the article]

The article discusses the announcement of a National Climate Finance Strategy (NCFS) in Pakistan, which aims to mainstream climate change in national policymaking processes. The strategy includes building resilience to climate disasters to reduce economic costs, as well as securing carbon credits and accreditation with global climate funds. The NCFS will be implemented through key institutions such as the Special Investment Facilitation Council, Public Sector Development Plans, and Public Private Partnership Authority. The government plans to invest in resilience through various frameworks and sectoral priorities, and progress on the NCFS will be reviewed under five key areas. The article emphasizes the need for structural and institutional reforms and coordination among ministries to effectively implement the strategy. [Extracted from the article]

Pakistan is preparing for general elections in February 2024, and despite concerns about fairness, political parties are focusing on forming alliances and preparing for the polls. The imprisonment of key leaders has led to speculation about potential strategies to sideline the ruling party and potentially bring back the former prime minister. Despite political uncertainties, Pakistan has seen positive economic trends, including improvements in compliance with IMF conditions, actions against currency smugglers, and historic growth in the stock market. However, challenges such as low foreign exchange reserves and constrained revenue collection remain, and addressing political uncertainties and implementing structural reforms are crucial for long-term stability. [Extracted from the article]

The government of Pakistan is considering increasing the sale price of natural gas by 10-15% in order to reduce the country's circular debt, which currently stands at Rs1,250 billion. The International Monetary Fund (IMF) has recommended this increase, despite the fact that the government is already projected to collect Rs980 billion in revenue from the recent gas price hike of up to 193%. The gas companies, Sui Southern and Sui Northern, are expected to request a downward revision of gas prices from January 1, 2023, but the IMF is urging the government to further increase prices from January 1, 2024. The IMF has criticized the government for not raising gas tariffs regularly over the past decade, leading to the accumulation of circular debt. [Extracted from the article]

Pakistan is preparing for general elections on February 8, with optimism surrounding the resolution of economic and political challenges. Despite concerns about the fairness of the elections, the focus is now on forming alliances and preparing for the polls. The imprisonment of key leaders has led to speculation about strategies to sideline the Pakistan Tehreek-i-Insaf (PTI) party and potentially allow Nawaz Sharif to return to office. Despite political uncertainties, Pakistan has seen positive economic trends, including compliance with International Monetary Fund (IMF) conditions and improvements in the Pakistan Stock Exchange. The population is growing, putting pressure on resources, and inflation has seen a modest improvement. The major challenges facing Pakistan's economy include low foreign exchange reserves and constrained revenue collection, but negotiations with the IMF have been successful. Overall, addressing political uncertainties and implementing structural reforms are crucial for long-term stability in Pakistan. [Extracted from the article]

The International Monetary Fund (IMF) has advised Pakistan to revive its five-year development planning and implement climate-sensitive public investment management plans. The IMF also recommends publishing criteria for project appraisals to attract global climate financing. The IMF's guidance comes after reaching a staff-level agreement on a $3 billion bailout. The report highlights the need for a nationwide strategy to enhance urban resilience and adaptation plans at the provincial and city levels. The IMF also calls for stronger fiscal discipline and the development of a five-year strategy to guide sectoral investment plans. [Extracted from the article]

The International Monetary Fund (IMF) has revised Pakistan's foreign loan requirements for this fiscal year to $25 billion, reducing it by $3.4 billion. The IMF also lowered the economic growth projection to 2% and the inflation projection to 22.8% for this fiscal year. The IMF did not accept the finance ministry's projections for the current account deficit, imports, economic growth, inflation, and gross financing requirements. The IMF made these revisions during the first review of the $3 billion bailout package. The estimated available financing has also been reduced by $3.7 billion due to difficulties in acquiring loans through Eurobonds and foreign commercial banks. [Extracted from the article]

The International Monetary Fund (IMF) has advised Pakistan to ensure transparency and accountability in its business deals and to avoid creating a group of preferred investors or distortions in the country under the Special Investment Facilitation Council (SIFC). The IMF raised questions about the need for another institution like SIFC and expressed concerns about the distressed sale of assets and preferred investors. The IMF team was satisfied with the briefing and explanations on SIFC, and the implementation of the IMF program is seen as beneficial for the country. The IMF staff mission is expected to present Pakistan's case to the executive board for approval of the first quarterly review under the $3bn Standby Arrangement. [Extracted from the article]

Before the IMF deal, the economic crisis had become so severe that some multinationals announced they were leaving Pakistan altogether. Pakistan's prime minister Shehbaz Sharif has vowed to turn round the country's crisis-hit economy as he faces hotly contested elections this year, after the government secured a crucial $3 billion IMF rescue financing deal to avert the threat of default. [Extracted from the article]

They do carry significance because, without strict IMF surveillance, our successive governments did not implement the course correction measures that they should have in any case regardless of whether the country has an IMF programme or not. * IMF programmes are not a miraculous solution to Pakistan's economic challenges The recent standby agreement (SBA) with the IMF has created a wave of optimism among businesses and markets in Pakistan. [Extracted from the article]

An International Monetary Fund (IMF) staff team led by Mr. Nathan Porter held in person and virtual meetings with the Pakistani Authorities to discuss a new financing engagement for Pakistan under an IMF Stand-by Arrangement (SBA). Coal is an important energy source, and the power sector uses a significant share of coal for electricity generation. [Extracted from the article]

Pakistan faces default by October this year without a bailout from the International Monetary Fund (IMF), former finance minister Miftah Ismail said on Thursday. Though Finance Minister Ishaq Dar earlier this month said the country would meet its debt obligations until December of this year and avoid defaulting, regardless of whether the IMF bailout program is revived. [Extracted from the article]

The article focuses on the volatile domestic political situation in Pakistan, including a significant bailout agreement with the International Monetary Fund (IMF) and a Supreme Court ruling favoring Imran Khan's Pakistan Tehreek-e-Insaf (PTI) party. It also covers the ongoing security operations against militant groups, with notable incidents of violence and attacks, particularly by the Tehreek-e-Taliban Pakistan (TTP).

A new research paper from Government College University Faisalabad examines the impact of the International Monetary Fund (IMF) on the economy of Pakistan from 2013 to 2022. The study analyzes IMF programs and their effects on Pakistan's economic policies, sectors like education and healthcare, and fiscal policies. The research aims to provide insights into the relationship between international economic organizations, particularly the IMF, and Pakistan's economy. The paper is available for free online and was published in the Global Economics Review. [Extracted from the article]

The International Monetary Fund (IMF) has reached staff-level agreement on the combined seventh and eight reviews for Pakistan's Extended Fund Facility, however the agreement is subject to approval by the IMF's Executive Board following which about $1,177 million loan will become available for Pakistan, bringing total disbursements under the program to about $4.2 billion. According to a statement issued by IMF, high international prices, and a delayed policy action worsened Pakistan's fiscal and external positions in FY22, leading to a significant exchange rate depreciation, and eroded foreign reserves. [Extracted from the article]

Goldman Sachs predicts that Pakistan's dollar bonds will recover despite a fractured election mandate. The emerging coalition leaders understand the severity of the economic crisis and are expected to work together to secure aid from the International Monetary Fund (IMF). The recent rally in Pakistan's bonds, particularly those maturing in April 2024, has helped offset post-election losses. The urgency to secure a new loan program is emphasized by Pakistan's limited reserves, upcoming external debt payments, high inflation rate, and previous contraction of the economy. The IMF has expressed its intention to visit Pakistan after the new government is formed to discuss a medium-term package. While the short-term rebound of Pakistan's bonds is expected, the long-term outlook will depend on global financial conditions. [Extracted from the article]

The IMF has assessed that Pakistan's gross financing requirement will be standing at $28 billion in the next fiscal year 2022-23 but keeping in view the higher current account deficit projections, it is expected that the overall external financing requirement will cross $30 billion mark in the next fiscal year. Pakistan's gross financing requirements are estimated to go up to $30 billion in the next budget for 2022-23, leaving no other options for the government but to seek a fresh IMF loan after the expiry of the existing programme in September 2022. [Extracted from the article]

The sources said that the tax authorities agreed to withdraw sales tax exemptions at the import stage but were reluctant to accept the demand to withdraw all domestic sales tax exemptions. To qualify for the next loan tranche of $1 billion, taking the demand for the additional revenue requirements to over Rs525 billion. [Extracted from the article]

The state bank governor however sounded more upbeat when he said the talks are moving positively - a sentiment reinforced by the stand taken by the IMF Director of the Middle East and Central Asia Department, Jihad Azour, who gave two thumbs up about the ongoing talks. Pakistan's talks with the International Monetary Fund have never been an easy proposition. [Extracted from the article]

Pakistan has requested assistance from China to restructure its debts in order to support economic reforms. The proposal includes extending the maturity of debt for power plants and an electricity transmission project built by Chinese companies under the China-Pakistan Economic Corridor (CPEC). Pakistan's government is also seeking to use locally-mined coal in Chinese-built power plants to reduce energy costs. The country is in talks with China, Saudi Arabia, and the United Arab Emirates to secure financial support for a three-year period. Fitch Ratings estimates that Pakistan will require $20 billion in funding by June. [Extracted from the article]

Pakistan plans to privatize its power distribution companies starting next year in order to address the debt-ridden energy sector. The Privatization Commission Board has approved a plan to complete the necessary legal procedures by January and is in the process of appointing a financial advisor to sell three utilities in the initial phase. The government aims to privatize six power distributors and put three others under concessional agreements. Pakistan's energy sector has been plagued by mismanagement and inefficiencies, resulting in increasing debt and high tariffs. The country is seeking a $7 billion loan package from the International Monetary Fund to revive its economy, with a condition to reduce energy losses. [Extracted from the article]

Pakistan has decided to delay the final auction for state-owned Pakistan International Airlines by two months until the end of September. Potential bidders have requested more information, including the airline's latest audited accounts, clarity on banned flights to Europe, and aircraft lease agreements. The stake sale in the airline is part of the government's commitment to economic reforms in exchange for a bailout from the International Monetary Fund. Pakistan had initially planned to announce the deal on its independence day, but that date will not be met now. [Extracted from the article]

The International Monetary Fund (IMF) may send a mission to Pakistan in July to finalize a new loan program. Talks are ongoing, and the visit is not mandatory for the agreement. Pakistan is seeking a three-year loan program to address economic issues and meet debt payments. The loan is crucial for attracting foreign investments, and the government is also seeking investments from Gulf states and China. The Parliament recently approved a budget aimed at meeting IMF conditions. [Extracted from the article]

An International Monetary Fund (IMF) mission is expected to visit Pakistan in July to continue negotiations on a proposed loan program, according to Finance Minister Muhammad Aurangzeb. Securing a loan package from the IMF is important for attracting foreign investments. Prime Minister Shehbaz Sharif is also seeking investment from Gulf states and China. Pakistan is looking for an IMF debt package that will last at least three years to address economic issues. The country's budget primarily goes towards debt and defense, with a small portion allocated to health and education. [Extracted from the article]

Pakistan is increasing power prices by an average of 20% in order to improve its chances of obtaining a new loan from the International Monetary Fund (IMF). The National Electric Power Regulatory Authority will raise the power tariff by an average of 5.72 rupees to 35.50 rupees per kilowatt-hour for Pakistan's 10 power distribution companies for the next fiscal year starting from July 1. This move is seen as critical for securing the IMF program and addressing the rising debt in the energy sector. Pakistan expects to secure a staff-level deal with the IMF by July. [Extracted from the article]

Pakistan's stock market has reached a record high after the government raised taxes in an effort to secure a new loan program with the International Monetary Fund (IMF). The KSE-100 Index saw its biggest jump since July 2023, increasing by 4.76%. The government kept the capital gains tax rate unchanged, easing concerns for investors. Pakistan's stock market has nearly doubled in the past year, making it the top performer in dollar terms. The nation aims to secure a staff-level deal with the IMF for a minimum three-year program by July. [Extracted from the article]

Pakistan's stock market experienced a significant rally, reaching a record high, after the government decided to maintain the capital gains tax rate in the budget while increasing other levies to generate more revenue. Investors had been concerned about a potential increase in the capital gains tax, but it remained unchanged at 15% for tax filers. Pakistan's stock market has nearly doubled in value over the past year, making it the top performer in dollar terms. The government's decision to raise taxes is aimed at improving the chances of securing a new loan from the International Monetary Fund. [Extracted from the article]

Pakistan's Finance Minister, Muhammad Aurangzeb, has increased taxes in an effort to boost revenue and secure a new loan from the International Monetary Fund (IMF). The country's tax-to-gross domestic product ratio is currently below 10%, and it is facing slow growth. The government plans to increase tax revenue by 40% to 13 trillion rupees ($47 billion) in the next fiscal year, which will help achieve a 1% federal primary balance. However, rising taxes may lead to discontent among consumers and businesses, who are already dealing with high energy costs and inflation. The IMF loan is crucial for Pakistan to meet its debt payments of about $24 billion in the next fiscal year. [Extracted from the article]

Pakistan's government is preparing to announce its budget, with the finance minister likely facing pressure to increase taxes and boost revenue in order to secure a new loan from the International Monetary Fund (IMF). The budget will outline targets for tax revenue growth, potential tax changes, and the fiscal deficit. The government is currently in discussions with the IMF for a three-year bailout program, and a new loan would help the country meet its debt payments. The finance minister has pledged to raise the tax ratio to 15% of GDP, and the budget is expected to provide insight into the policy decisions agreed with the IMF. [Extracted from the article]

Pakistan's government is preparing to announce its budget, with the finance minister likely facing pressure to increase taxes and boost revenue in order to secure a new loan from the International Monetary Fund (IMF). The budget will outline targets for tax revenue growth, potential tax changes, and the fiscal deficit. The government is currently in discussions with the IMF for a three-year bailout program, and a new loan would help the country meet its debt payments. The finance minister has pledged to raise the tax ratio to 15% of GDP, and the budget is expected to provide insight into the policy decisions agreed with the IMF. [Extracted from the article]