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Pakistan has requested a loan of $8 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), exceeding the initial offer by $2 billion. To secure this loan, Pakistan must meet stringent conditions, including implementing additional revenue measures equivalent to 1.6% of its GDP. The IMF is currently inclined to offer $6 billion, pending Pakistan's compliance with these conditions. The final decision rests with the IMF management. Pakistan seeks this significant funding to address its fiscal needs, as no new bilateral loans are planned from traditional creditors like Saudi Arabia and China. The loan request comes as Pakistan faces an economic crisis, and the funding is crucial to support the country's financial stability. The IMF's conditions aim to ensure Pakistan's economic reforms and sustainable growth. The outcome of this request will have a significant impact on Pakistan's economic future. . . . #PakistanIMF #EFFLoan #EconomicCrisis #FinancialAid #IMFConditions #tribunetrends

𝐅𝐚𝐥𝐥𝐬 𝐬𝐡𝐨𝐫𝐭 𝐨𝐟 𝐑𝐬𝟑𝟒𝟐𝐛 𝐩𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐜𝐚𝐬𝐡 𝐬𝐮𝐫𝐩𝐥𝐮𝐬 𝐠𝐨𝐚𝐥 𝐛𝐲 𝐑𝐬𝟏𝟖𝟐𝐛 𝐢𝐧 𝐟𝐢𝐫𝐬𝐭 𝐪𝐮𝐚𝐫𝐭𝐞𝐫 Pakistan has failed to meet a major condition of the International Monetary Fund (IMF) to generate Rs342 billion in cash surplus by the four provincial governments due to Punjab's lower-than-estimated cash surplus during the first quarter of this fiscal year. The provincial governments missed the condition by a margin of Rs182 billion or 53%, underscoring serious challenges in the implementation of the $7 billion IMF deal. Source: https://lnkd.in/dEARRtEb #PakistanEconomy #IMFDeal #ProvincialBudget #PunjabEconomy #FiscalDeficit #CashSurplus #EconomicChallenges #PakistanFinance #IMFCondition #BudgetShortfall #PublicFinance #EconomicUpdates #ProvincialGovernments #RevenueGoals #PakistanNews #FinanceReport #EconomicOutlook #FiscalYear2024 #PakistanGrowth

The International Monetary Fund (IMF) has announced that it will review Pakistan's loan request on September 25, bringing an end to uncertainty around the new $7 billion bailout. The IMF had signed a staff-level agreement with Islamabad two months ago, but the delay in ratification had fueled speculation that the government was facing difficulties in meeting its stipulations. The IMF announcement comes as a relief to Pakistan, which is struggling to overcome a serious legitimacy crisis and revive its moribund economy. The approval of the programme is crucial for the coalition government to improve its ratings and kick the default can further down the road. However, the new IMF loan is not a solution to Pakistan's deep-seated economic woes and structural issues. The government is preparing to further tighten the noose around taxpayers and possibly bring in a supplementary or 'mini' budget to meet the Fund programme's revenue targets. The burden of additional revenue measures will be borne by taxpayers, both corporate and individual, which is not how crisis-hit nations break out of the debt trap. The new IMF loan is surely not going to be Pakistan's last bailout, and the government needs to put its fiscal house in order to avoid further economic crises. . . . #IMF #Pakistan #EconomicCrisis #Bailout #DebtTrap #Taxation #EconomicReforms #tribunetrends

Pakistan has requested an $8 billion loan from the IMF under the Extended Fund Facility (EFF) to fully utilize its remaining quota, about $2 billion more than initially offered. This request includes fulfilling stringent conditions, such as additional revenue measures worth 1.6% of GDP. The IMF is inclined to offer $6 billion, pending Pakistan's compliance with these conditions. The final decision will be made by the IMF management. Pakistan seeks this significant funding to meet its fiscal needs, with no new bilateral loans planned from traditional creditors like Saudi Arabia and China. #PakistanIMF #EFFLoan #EconomicCrisis #FinancialAid #IMFConditions

Pakistan is currently grappling with a formidable fiscal dilemma, as it seeks to secure a minimum of PKR 8.5 trillion to cover its anticipated budget deficit of PKR 8,500 billion for the fiscal year 2024-25. This marks a significant increase from the initially budgeted PKR 7,506 billion for 2023-24 which was later revised upwards to PKR 8,388 billion. The primary deficit target for 2024-25 stands at 2% of GDP, a notable disparity compared to the International Monetary Fund's (IMF) forecast of 0.4% as indicated in their May 2024 Stand By Arrangement review. This widening gap highlights Pakistan's need for additional financial resources to bridge the deficit. It underscores the challenge of managing its substantial domestic debt interest payments without resorting to further borrowing.

SBP Governor Jameel Ahmed reported that October remittances exceeded $3 billion, boosting foreign exchange reserves. The first-quarter FY25 remittances are up 39%, and reserves are projected to reach $13 billion by year-end, with an additional $500 million from the ADB expected this week. Despite this, Pakistan faces a $6.3 billion shortfall in debt servicing for FY25. The government is working to improve its debt profile by reducing reliance on short-term Treasury bills, which should lower interest payments, bringing the FY25 projection to Rs8.3–8.4 trillion.

The International Monetary Fund (IMF) announced a $1.1 billion loan tranche for Pakistan, highlighting improved economic and financial conditions, despite modest growth and high inflation. Pakistan plans to hike gas and electricity prices to manage circular debt, since according to Baqir, Pakistan already has to pay about $7 billion to the IMF in the next five years while its reserves stand at $8 billion. Talks for a new bailout package are on the horizon. IMF's visit to Islamabad led to a staff-level agreement on Pakistan's economic program, pending approval by the IMF Executive Board. The agreement aims to enhance economic stability through policy reforms, tax base expansion, and tariff adjustments. Pakistan seeks a medium-term program to address fiscal and external sustainability, fostering inclusive growth and economic recovery. #imfloan #lastloan #financialcondition #economy #cohortmax

According to reports from the finance ministry, Pakistan is planning to seek a $12 billion loan rollover from friendly nations to meet its external financing needs for the fiscal year 2024-25. The breakdown includes $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the United Arab Emirates. This measure is intended to cover the total external financing requirement of Rs23 billion for the upcoming fiscal year. The budget also includes provisions for obtaining new financing from entities such as the World Bank, Asian Development Bank, and other monetary institutions. In a related development, the Pakistani government aims to finalize budget targets for the fiscal year 2024-25 before the scheduled arrival of an International Monetary Fund (IMF) mission in Islamabad on May 15. The IMF mission's visit is part of discussions regarding a new loan program to address Pakistan's financial needs. The Ministry of Finance has instructed relevant ministries to expedite the target-setting process to prepare for the IMF mission's arrival. #IMF #Pakistan #Loan #UAE #SaudiArabia #Countries #follower #follow #followers #followerseveryone

Pakistan has faced a significant shortfall in its loan targets for the fiscal year 2024, receiving only $9.81 billion against a target of $17.6 billion. This shortfall is likely to exacerbate the country's economic challenges, including a widening trade deficit and dwindling foreign exchange reserves. The loan shortfall is attributed to various factors, including a decline in foreign investment and a decrease in bilateral and multilateral funding. The country's economic woes have been further compounded by the impact of global economic trends, including rising interest rates and a strengthening US dollar. The government had pinned hopes on securing significant funding from international lenders, including the International Monetary Fund (IMF), to shore up its foreign exchange reserves and stabilize the economy. However, the loan shortfall has raised concerns about Pakistan's ability to meet its external financing needs. The loan shortfall is expected to put pressure on the government to adopt austerity measures and implement structural reforms to address the country's economic vulnerabilities. The government will need to explore alternative funding sources and implement policies to boost foreign investment and exports to mitigate the impact of the loan shortfall. . . . #PakistanEconomy #LoanShortfall #EconomicChallenges #ForeignExchangeReserves #IMFProgram #tribunetrends

In the last forty years, Pakistan has paid over $3.5 billion in interest on loans to the International Monetary Fund (IMF). This revelation was made during a meeting of the Senate's Standing Committee on Economic Affair, chaired by Senator Saifullah Abro, on Thursday at the Parliament House. The Ministry of Finance presented details of the loans and repayments made to the IMF so far. During the briefing by officials from the Ministry of Finance and the State Bank of Pakistan, it was disclosed that Pakistan has paid over $3.60 billion in interest to the IMF. The documents revealed that the interest paid amounts to over Rs1,000 billion in Pakistani currency. Over the past 30 years, Pakistan has borrowed approximately $29 billion from the IMF and has repaid more than $21.72 billion in the same period. In the last four years alone, Pakistan borrowed over $6.26 billion from the IMF and repaid $4.52 billion. Additionally, in the last four years, Pakistan has paid over $1.10 billion in interest to the IMF. In 2024, Pakistan borrowed $1.35 billion Special Drawing Rights (SDRs) from the IMF and repaid $646.69 million SDRs. #IMF #debt #Pakistan #news #Newspedia