ISLAMABAD: The ruling PML-N faced an unprecedented backlash in the National Assembly on Friday, with even lawmakers from the treasury benches joining their opposition counterparts as they lashed out at Finance Minister Muhammad Aurangzeb for presenting a ‘tax-loaded and IMF-dictated budget’,
[March 14 2024 ]
Finance Minister Muhammad Aurangzeb’s message was unmistakable: the government is aiming for permanent macroeconomic stabilization even if it comes at the cost of growth.
[March 10 2024 Moody’s – pressures were easing ]
“The situation in the external account has improved but is not sustainable. Pakistan needs continuous support from the IMF and friend countries to avoid default,” said the source, adding that the IMF’s current approach is a clear indication of poor economic health and the necessity for su[pport.
March 9 2024 ]
The international rating agency — one of the top three global rating firms — said that the economic and fiscal pressures were easing for the country, as it forecasted that the economy would return to a 2 per cent growth rate in 2024 after subdued activity in 2023. The report also said it expected inflation to fall from 29pc to 23pc.
[July 3 2023 has to repay $25 billion in the current fiscal year, more than $3bn IMF loan secured ]
Moody’s Investors Service and Fitch Ratings that issued the warning are two of the big three credit rating agencies, recognised by the US Securities and Exchange Commission.
The two agencies noted that Pakistan has to repay $25 billion in the current fiscal year to meet its debt obligations. The repayments include both principal and interest, and are about seven times Pakistan’s foreign exchange reserves, according to Moody’s.
This is significantly more than the initial approval of a $3bn IMF loan Pakistan secured last week.
[June 3 2023 Moody’s downgrades ]
Moody’s Investment Services has downgraded Pakistan’s outlook to ‘negative’ from an earlier ‘stable’ rating citing the country’s “heightened external vulnerability”, “uncertainty around … ability to secure additional external financing” and “weak institutions and governance strength”.
[May 26 2022 removing fuel and energy subsidies – IMF
ISLAMABAD: In a move towards placating the International Monetary Fund (IMF) for an economic bailout, the government on Thursday increased, with immediate effect, the prices of all petroleum products by Rs30 per litre to reduce fuel subsidies.
[May 25 2022]
Finance Minister Miftah Ismail had earlier this week said he would convey to the IMF that fuel and energy subsidies — which were introduced by the previous PTI government — could not be reversed as the “nation cannot endure it”.
But in a statement issued earlier today, the IMF said it had “emphasised the urgency of concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives”.
{May 24 2022 GDP growth of between 3pc and 4pc – Moody‘s ]
Saudi Minister of Finance Mohammed al-Jadaan told Reuters.
“We are currently finalising extending the $3bn deposit to Pakistan,” he said on the sidelines of the World Economic Forum in Davos.
The central bank’s reserves were down by $7.5bn since January 1, adding that importers were engaged in panic buying as they were uncertain about whether the government would be able to secure funding from China, Saudi Arabia and the International Monetary Fund, talks with which are underway.
[May 16 2022]
We really need to be more honest about our foreign policy, which has been aimed at extracting foreign loans for our geopolitical position. But in the recent past (and briefly in the 1990s) this geopolitical position is now becoming irrelevant and the loans seem to be drying up.
[April 11 2022]
Moody’s expected real GDP growth of between 3pc and 4pc for the ongoing fiscal year and between 4pc and 5pc for the 2023 fiscal year, with credit growth surpassing 12pc.The GDP growth forecast is based on expectations of reform agenda and the China-Pakistan Economic Corridor (CPEC) helps boost economic growth. Also, government support for specific sectors, such as a subsidy scheme for housing finance, and subsidised interest rates and partial credit guarantees for small businesses and agriculture, will also boost credit demand.
[January 7 2022 Pakistan’s NA will pass IMF-compliant Finance bill ]
Pakistan’s parliament will vote on a tax law seeking to increase the South Asian nation’s revenues in line with conditions set by the International Monetary Fund for the resumption of its $6 billion loan program.
The parliament’s lower house, or National Assembly, will meet Jan. 10 and take up the IMF-compliant Finance (Supplementary) Bill, 2021, Information Minister Fawad Chaudhry said at a press briefing January 6 2022.
“The finance bill will be passed in the second week of January,” he said
Senate Standing Committee on Finance and Revenue under the Chairmanship of Senator Muhammad Talha Mahmood met to consider the Finance Supplementary Bill, 2021 laid in the Senate on 4 January.
Crescent Shift 