Pakistan Reaches Staff Level Agreement With IMF to Resume Loan

[muhammadhafeezmalik]

Pakistan Reaches Agreement With IMF to Resume Loan​

• Said to expect $1.2 billion loan disbursement in August
• IMF, Finance Ministry didn’t reply to requests for comment

Pakistan has reached a staff-level agreement with the International Monetary Fund to resume its loan program, according to a government official familiar with the matter.

A $1.2 billion disbursement is expected in August after the IMF’s management gives final approval, the person said, asking not to be identified before a formal announcement. Representatives for the IMF in Pakistan and the nation’s finance ministry didn’t reply to emails seeking comment.

The disbursal would offer relief to the South Asian nation, whose foreign-exchange reserves can cover less than two months of imports. Inflation has accelerated to a 13-year-high. Pakistan has raised electricity tariffs and almost doubled diesel pump prices over the past two months to meet IMF conditions.


The Washington-based lender has also agreed to increase the loan program size by $1 billion -- taking it to a total $7 billion -- and extend it through June 2023, the person said.

Profit Magazine had previously reported the details.

Bloomberg - Are you a robot?

www.bloomberg.com

For more details here is the statement from IMF

IMF Reaches Staff-Level Agreement on the Combined Seventh and Eight Reviews for Pakistan’s Extended Fund Facility

IMF Reaches Staff-Level Agreement on the Combined Seventh and Eight Reviews for Pakistan’s Extended Fund Facility

www.imf.org

 

[HttpError]

Beggars finally getting some pocket change from the IMF.

 

[khail007]

But this news is in national media:

No IMF deal in sight: PKR loses over Rs2, closes at 210.1 against dollar in interbank​

Talqeen Zubairi Published July 13, 2022 - Updated about 4 hours ago




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The rupee lost over Rs2 against the dollar during interbank trade on Wednesday with analysts and currency dealers attributing it to fears over the delay in the finalisation of an agreement with the International Monetary Fund (IMF).
According to the State Bank of Pakistan (SBP), the local currency depreciated by Rs2.19, or 1.04 per cent, against the greenback and closed at Rs210.1.
It had closed at Rs207.91 on Thursday, according to the central bank.
The dollar has consistently risen in the currency market, but the inflow of $2.3 billion from China on June 23 changed the scenario as the rupee recovered Rs4.70 in a single session to Rs207.23 from Rs211.93.
However, the US dollar snapped the rupee’s rising streak and gained Rs2.38 in the interbank market on July 5, the first appreciation in the new fiscal year. Since then, the greenback has continued to rise.
The director of Mettis Global, a web-based financial data and analytics portal, Saad Bin Naseer, noted that the market had reopened after five days.
“The inflow of remittances was not as high as expected because of which the rupee is under pressure right now. This pressure will remain until the agreement with the IMF is finalised,” he said.
Analyst Komal Mansoor shared a similar view. She said that while inflows were limited, the dollar’s rally today was based on the fear that the IMF deal would “not materialise any time soon”.
The list of “prior actions” demanded by the international lender keeps increasing and is unmanageable, she said. “Analysts are foreseeing a high probability of default this year,” Mansoor added.
On the other hand, Zafar Paracha, the secretary general of the Exchange Companies Association of Pakistan, attributed the rupee’s fall to the central bank’s allowing payments for imports.
The demand for dollars was “very high” in interbank because the SBP had given permission for import payments that were overdue, he said.
He also cited the delay in the IMF agreement as the reason for the rupee’s decline. The market had “no hope” that the money would be received any time soon because there were new demands every day, he said.
“Statements from ministers also make it seem like they are tired of the IMF. This is not a good situation, and the political situation is not very good for the economy.
“Unless we get a big amount from IMF or friendly countries, the situation will not improve. The impression built earlier that we will get money from the IMF has been reversed.”

No IMF deal in sight: PKR loses over Rs2, closes at 210.1 against dollar in interbank

Analysts cite delays in deal with the IMF and limited inflows.

www.dawn.com

 

[SoulSpokesman]

Had it not been for the tie up of IMF loan at the eleventh hour the PKR would have collapsed

Regards

 

[Wesen Hunter]

Pakistan needs to focus on private western or Japanese investors for economic growth.
Chinese state controlled investors won't be that helpful.

 

[Communism]

Pakistan needs to focus on private western or Japanese investors for economic growth.
Chinese state controlled investors won't be that helpful.

Most of Pakistan's problems are internal.

Doesn't matter who the external investor is, the results depend on the Pakistani part of the deal.

 

[truthseeker2010]

Pakistan Reaches Agreement With IMF to Resume Loan​

• Said to expect $1.2 billion loan disbursement in August
• IMF, Finance Ministry didn’t reply to requests for comment

Pakistan has reached a staff-level agreement with the International Monetary Fund to resume its loan program, according to a government official familiar with the matter.

A $1.2 billion disbursement is expected in August after the IMF’s management gives final approval, the person said, asking not to be identified before a formal announcement. Representatives for the IMF in Pakistan and the nation’s finance ministry didn’t reply to emails seeking comment.

The disbursal would offer relief to the South Asian nation, whose foreign-exchange reserves can cover less than two months of imports. Inflation has accelerated to a 13-year-high. Pakistan has raised electricity tariffs and almost doubled diesel pump prices over the past two months to meet IMF conditions.


The Washington-based lender has also agreed to increase the loan program size by $1 billion -- taking it to a total $7 billion -- and extend it through June 2023, the person said.

Profit Magazine had previously reported the details.

Bloomberg - Are you a robot?

www.bloomberg.com

The proposal would be have been sent on 15 july with final decision on 30-31 july. So anything before is just speculation.

 

[P@kistan]

breaking news for PTI. This is from Bloomberg.

Most probably they are waiting for by-elections.

I think IMF will not deal with IK/PTI government again after they broke an agreement.

 

[Abdul Rehman Majeed]

Pakistan Reaches Agreement With IMF to Resume Loan​

• Said to expect $1.2 billion loan disbursement in August
• IMF, Finance Ministry didn’t reply to requests for comment

Pakistan has reached a staff-level agreement with the International Monetary Fund to resume its loan program, according to a government official familiar with the matter.

A $1.2 billion disbursement is expected in August after the IMF’s management gives final approval, the person said, asking not to be identified before a formal announcement. Representatives for the IMF in Pakistan and the nation’s finance ministry didn’t reply to emails seeking comment.

The disbursal would offer relief to the South Asian nation, whose foreign-exchange reserves can cover less than two months of imports. Inflation has accelerated to a 13-year-high. Pakistan has raised electricity tariffs and almost doubled diesel pump prices over the past two months to meet IMF conditions.


The Washington-based lender has also agreed to increase the loan program size by $1 billion -- taking it to a total $7 billion -- and extend it through June 2023, the person said.

Profit Magazine had previously reported the details.

Bloomberg - Are you a robot?

www.bloomberg.com

The incumbent govenment did it what IK government could not do it in 3.5 years. This is a great achievement which will help Pakistan avoid a Srilanka like situation.

 

[SoulSpokesman]

@Abdul Rehman Majeed

This is a great achievement which will help Pakistan avoid a Srilanka like situation.

Bitter but true. Without the IMF deal and the rationalisation of fuel prices, Pak was headed for a collapse. A SL multiplied by 10 times and the worlds fifth most powerful armed forces in tow.

Regards

 

[Imran Khan]

Its 50th we heard

 

[Corruptistan]

Our reality is so shameful. Beggars indeed.

Most of Pakistan's problems are internal.

Doesn't matter who the external investor is, the results depend on the Pakistani part of the deal.

No wonder. Where have all the billions of aid from Arabs and China gone? I am almost certain that just 10% of that huge sum (over the last 75 years now) have been used by our corrupt establishment on Pakistan and the people. Rest was used to enrich their own pockets and that of their families and bank accounts abroad.

No wonder than even long-term allies of ours are losing faith in us (China and Arabs). Maybe this will magically change with the current lot in power but I am doubtful. For now we are just barely avoiding a new Sri Lanka.

What a shame and embarrassment.

A nuclear power, the 5th most populous nation on the planet and one of the strongest standing armies is reduced to this continuous begging for money either from IMF or Arabs or Chinese. It is amazing (a miracle almost) that countries even take us seriously anymore and help us out.

 

[zn426]

Pakistan needs to focus on private western or Japanese investors for economic growth.
Chinese state controlled investors won't be that helpful.

Western and Japanese investors look for high quality businesses with strong customer service and stability. At what time has Pakistan shown any of that?

 

[maithil]

If IMF deal is so near, why go for much more expensive Chinese loan for 2.3 billions? Could have le IMF deal conclude and get money from allies ?

 

[Wood]

Pakistan needs to focus on private western or Japanese investors for economic growth.
Chinese state controlled investors won't be that helpful.

Chinese investors may not be a problem if the investment was not a loan