Tag: staff-level agreement
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Pakistan’s hopes for IMF agreement rise as Saudi Arabia confirms $2 billion in additional deposits
The International Monetary Fund (IMF) has informed Pakistan that Saudi Arabia has confirmed $2 billion in additional deposits, which has rekindled hopes of an early agreement signing. Since January, Islamabad has been negotiating with the IMF for the release of $1.1 billion from a $6.5 billion bailout package that was agreed upon in 2019. To…
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Pakistan’s petrol relief proposal fails to convince IMF, causing further delays
The International Monetary Fund (IMF) has asked Pakistani authorities to provide additional information about a petrol relief package, which has caused further delays in the signing of a staff-level agreement. The petroleum ministry’s cross-fuel subsidy proposal was initially rejected by the Fund, which argued that more details are needed to verify its sustainability. The Ministry…
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China approves rollover of $2 billion SAFE deposits for Pakistan
China has given approval for the rollover of $2 billion State Administration of Foreign Exchange (SAFE) deposits for a year. Pakistan’s Finance Minister, Ishaq Dar, confirmed, stating that the rollover was a requirement of the International Monetary Fund (IMF). The IMF had requested the rollover of Chinese SAFE deposits to fulfill external financing needs and…
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Pakistan reaches out to US for assistance in obtaining IMF deal
Pakistan has requested assistance from the United States to obtain “lenient treatment” from the International Monetary Fund (IMF) due to a delay in signing the staff-level agreement (SLA). The international lender has asked Pakistan to confirm external financing needs of $6 to $7 billion from Saudi Arabia, the United Arab Emirates, Qatar, and multilateral creditors…
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Pakistan ‘very close’ to signing staff-level agreement with IMF, says Finance Minister
Finance Minister Ishaq Dar has reaffirmed his team’s commitment to completing Pakistan’s $7 billion Extended Fund Facility programme with the International Monetary Fund (IMF). Speaking at a seminar organised by the Finance Ministry in Islamabad, Dar acknowledged the need for swift implementation of measures to reach an agreement with the IMF as the country has…
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Another IMF condition met as Pakistan imposes 25% sales tax on luxury items
On Tuesday, the federal cabinet led by Prime Minister Shehbaz Sharif approved the imposition of a 25 per cent sales tax on luxury items, fulfilling a condition set by the International Monetary Fund (IMF) for the revival of the $7 billion Extended Fund Facility (EFF) that had been stalled for months. The cabinet approved the…
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All economic indicators moving in right direction: Dar dismisses rumors of Pakistan’s default
According to the announcement by Pakistan’s Federal Finance Minister Ishaq Dar, negotiations between Pakistan and the International Monetary Fund (IMF) are about to conclude, and a staff-level agreement is expected to be signed soon. The minister also dismissed rumours of Pakistan defaulting as completely false and stated that all economic indicators are moving in the…
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Pakistan accepts IMF pre-condition to increase interest rate by 2%
Pakistan has agreed to increase its policy (interest) rate by two percent or 200 basis points, as a pre-condition for the release of $1.1 billion in critical funding from the International Monetary Fund (IMF). The funding is part of a $6.5 billion bailout package. The increase is based on rates set by the government in…
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National Assembly passes mini-budget to meet IMF targets
The National Assembly of Pakistan passed the Finance (Supplementary) Bill, 2023, aimed at amending certain laws relating to taxes and duties. The bill is intended to generate an additional Rs170 billion within the next four and a half months, to fulfill the last prior actions agreed upon with the International Monetary Fund (IMF). Pakistan’s reserves…
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IMF expected to reach staff-level agreement with Pakistan soon
The country representative for the International Monetary Fund (IMF), Ester Perez, has called the conversations with the Pakistani government regarding the ninth review “productive.”