Skip to content
Search

Latest Stories

Cash-strapped Pak secures much-awaited deal with IMF

The IMF mission will finalise monetary targets with the State Bank over the next couple of days.

Cash-strapped Pak secures much-awaited deal with IMF

Cash-strapped Pakistan has secured a deal with the International Monetary Fund to restore the stalled USD 6 billion assistance package and unlock doors for financing from other international sources, according to a media report on Wednesday.

The make or break deal was reached on Tuesday night following the IMF staff mission and the Pakistani team, led by Finance Minister Miftah Ismail, agreeing on an understanding on the 2022-23 budget after the authorities committed to generate Rs 43,600 crore more taxes and increase petroleum levy gradually up to Rs 50 per litre, the Dawn newspaper reported.


The extended fund facility package of USD 6 billion was agreed in July 2019 for a period of 39 months. So far only half of the promised money has been reimbursed. The revival of the facility will immediately provide access to USD 1 billion, which Pakistan badly needs to buttress its dwindling foreign exchange reserves.

The IMF mission will finalise monetary targets with the State Bank over the next couple of days and, in the meantime, share the draft of a Memorandum of Economic and Financial Policy (MEFP).

The MEFP would also contain certain prior actions that would be necessary for implementation before the IMF board takes up Pakistan's case for approval and the subsequent disbursement of about USD 1 billion next month.

We have now locked the budget in consultation with the IMF, Finance Minister Ismail told journalists, adding that all budget-related issues have been settled with the Fund.

The sources said the IMF team will now finalise targets for net international reserves and net domestic assets, but everything on part of the agreement had been settled. The IMF team would share its draft MEFP with the government on Friday.

Although the government shied away from unpopular tax measures for fear of political backlash in its first budget and pinned its hopes on achieving maximum revenue from higher than expected inflation and economic growth, the low revenue target did not go down well with the IMF, which asked Islamabad to take additional measures to make the revenue collection target more realistic.

As part of the deal, the government also agreed to do away with provisions for additional salaries and pensions. Instead, a separate allocation of contingencies had been made but that would be strictly meant for emergencies like floods and earthquakes so that amount remains unspent.

(ANI)

More For You

Starmer and Modi

Starmer and Modi shake hands during a bilateral meeting in the sidelines of the G20 summit at the Museum of Modern Art in Rio de Janeiro, Brazil Brazil, on November 18, 2024.

Getty Images

Starmer calls Modi over Kashmir attack; expresses condolences

PRIME MINISTER Keir Starmer spoke to Indian prime minister Narendra Modi on Friday morning following the deadly attack in Kashmir’s Pahalgam region that killed 26 people on Tuesday.

During the call, Starmer said he was horrified by the terrorist attack and expressed deep condolences on behalf of the British people to those affected, their loved ones, and the people of India.

Keep ReadingShow less
 Post Office Horizon

A Post Office van parked outside the venue for the Post Office Horizon IT inquiry at Aldwych House on January 11, 2024 in London, England. (Photo: Getty Images)

Getty Images

Post Office spent £600m to keep Horizon despite plans to replace it: Report

THE POST OFFICE has spent more than £600 million of public funds to continue using the Horizon IT system, according to a news report.

Despite deciding over a decade ago to move away from the software, the original 1999 contract with Fujitsu prevented the Post Office from doing so, as it did not own the core software code, a BBC investigation shows.

Keep ReadingShow less
Pahalgam attack: Prayer meet held at Indian mission in London

The prayer meet was led by Indian High Commissioner to the UK Vikram Doraiswami

Pahalgam attack: Prayer meet held at Indian mission in London

Mahesh Liloriya

A PRAYER meet was held at the Gandhi Hall in the High Commission of India in London on Thursday (24) to pay respects to the victims of the Pahalgam terrorist attack.

Chants of ‘Bharat Mata Ki Jai’ rang out at the event which was led by Indian High Commissioner to the UK Vikram Doraiswami.

Keep ReadingShow less
UK  mini heatwave

Sunny conditions will bring early summer warmth

Getty

UK to see mini heatwave as temperatures climb towards 24 °c

The UK is set for a period of warmer weather in the coming days, with temperatures expected to rise significantly across parts of the country. According to the Met Office, a spell of dry and sunny conditions will bring early summer warmth, although it will fall short of the threshold for an official heatwave.

Temperatures in south-eastern and central England could reach 23°c to 24°c by Tuesday, around 10C above the seasonal average for some areas. The Met Office described this as a “very warm spell” rather than a heatwave, though the contrast with recent cooler weather will be noticeable.

Keep ReadingShow less
indian-army-reuters

Indian security force personnel stand guard at the site of the attack on tourists in Baisaran near Pahalgam in south Kashmir's Anantnag district, April 24, 2025. (Photo: Getty Images)

Getty Images

Indian and Pakistani troops exchange fire along Line of Control

INDIAN and Pakistani troops exchanged fire overnight along the Line of Control in Kashmir, officials from both sides said on Friday.

The exchange took place days after a deadly attack in the region and amid calls from the United Nations for both countries to show "maximum restraint".

Keep ReadingShow less