Eon Updates’ Post

The IMF board will not consider Pakistan's case on August 30 due to the country's inability to bridge the external financing gap. The postponement is primarily due to an unfilled $2 billion financing shortfall and delays in rolling over a significant portion of the $12 billion in cash deposits. Additionally, $3.9 billion in loans from Chinese commercial banks have not yet been rolled over. To date, only the United Arab Emirates (UAE) has rolled over a $1 billion cash deposit.

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 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

IMF has shared their weekly agenda schedule. Pakistan's programme approval is not included in it as of now. The deadlock is that they want Pakistan to fill the external financing gap which Pakistan is unable to do at the moment. Moreover, IMF has changed their country head too. Something else is going on at their part. The good thing is Pakistan's current account deficit is low compared to prior years. Moreover, Pakistan is receiving a handsome amount in form of remittances which is helping Pakistan to maintain their reserves. Additionally, it is giving Pakistan an opportunity to arrange finances to fill those external financing gaps.

Pakistan has secured significant financing assurances from China, Saudi Arabia, and the UAE as part of a new International Monetary Fund (IMF) loan agreement. The agreement goes beyond a $12 billion bilateral loan owed to Pakistan by Islamabad. The IMF Pakistan Mission Chief, Nathan Porter, declined to provide details of additional financing amounts committed by China, Saudi Arabia, and the UAE, but said these would come on top of the debt rollover. The IMF's Executive Board approved a new $7 billion, 37-month loan agreement for Pakistan, requiring "sound policies and reforms" to strengthen macroeconomic stability. The additional financing amounts would come on top of the debt rollover South Asia has received 22 IMF bailout programs since 1958, with UAE, China, and Saudi Arabia providing significant financing assurances. The crisis-ridden country has had 22 previous IMF bailout programs. #imf #missionChief #Asia #loan #ChinaUAESaudi

The International Monetary Fund (IMF) has set three new conditions for Pakistan to receive a $7 billion loan. The conditions include: 1. Ending subsidies on electricity bills by September 30 2. Not introducing any policies that contradict the commitments made under the loan program 3. Consulting the Ministry of Finance before taking any actions that could affect the loan program's structural benchmarks and key actions The IMF is reviewing the budgets of provinces and has observed that Punjab and Sindh's revenue estimates are too high, which could make it difficult to achieve cash surplus targets. #corpwire #IMFConditionsForLoan #PakistanEconomicCrisis #LoanProgrammeChallenges

The World Bank (WB) has assured Pakistan of its full support for reforms and digitalization programmes to stabilize economy and enhance revenues. According to a press statement issued by the finance ministry here, Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with President World Bank Group, Ajay Banga, and highlighted Pakistan’s progress under the 9-month Standby Arrangement (SBA) program and ongoing reforms in priority areas of taxation, energy, and privatization. #PAKISTAN #ECONOMY #NEWS

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

Finance Minister's New Hobby: Begging for Time😡 😓 😪 😥 😢 😱 😰 😤 😡 Pakistan faces significant challenges due to high external debt servicing requirements, needing $24 billion in FY2025. This has strained the economy, with SBP-held reserves dropping by $397 million due to debt repayments, leaving total liquid foreign reserves at $14.33 billion as of July 19, 2024. Of this, $9.027 billion is held by the SBP and $5.308 billion by commercial banks. The high debt servicing obligations have limited economic options, prompting Finance Minister Mohammad Aurangzeb to negotiate loan rescheduling with Chinese investors. The Prime Minister has also requested an extension of the repayment period from 10 to 15 years to ease foreign currency outflows. 😡 😓 😪 😥 😢 😱 😰 😤 😡 #PakistanEconomy #ForeignReserves #SBP #DebtCrisis #EconomicChallenges

IMF Approves $7 Billion Loan for Pakistan The International Monetary Fund's (IMF) Executive Board has approved a $7 billion loan for Pakistan to support the country's economic stability and reform efforts ¹. This 37-month Extended Fund Facility arrangement aims to: - Cement Macroeconomic Stability: Achieve sustainable public finances through gradual fiscal consolidation and reforms to broaden the tax base. - Promote Stronger Growth: Enhance competition, secure a level playing field for investment, and scale up social protection. - Reform Key Sectors: Improve State-Owned Enterprises' management and strengthen human capital. The loan will help Pakistan address its financial challenges, rebuild external buffers, and reduce inflation ¹. This approval is a significant step towards Pakistan's economic recovery and stability ¹.