Skip to content
Search

Latest Stories

Pakistan receives $1.2 billion first tranche from IMF bailout

The country's sovereign bonds and currency gained after the lender approved the package

Pakistan receives $1.2 billion first tranche from IMF bailout

PAKISTAN'S central bank has received $1.2 billion from the IMF as the first tranche of a $3 bn bailout to stabilise the economy, Finance Minister Ishaq Dar said on Thursday (13), a day after the global lender's board approved the package.

Having teetered on the brink of a sovereign debt default, Pakistan earlier this week also received $1 bn from the United Arab Emirates and $2 bn from Saudi Arabia, as both were reassured by the agreement struck between Islamabad and the International Monetary Fund at the end of June.

In a televised address, Dar said the first installment of the IMF money had arrived in the State Bank of Pakistan's account.

"The goal of this SBA (Standby Arrangement) is to provide a policy anchor for Pakistan to address its domestic and external economic imbalances in the coming period, as well as provide a framework for external financial support by multilateral and bilateral partners, including fresh financing and rollover of debts that are coming due," an IMF official told reporters in an online briefing on Thursday.

Pakistan's sovereign bonds and rupee gained on Thursday following the IMF board's approval.

The rupee rose one per cent to 274.5 per dollar in the interbank market, though it had been up by as much as two per cent in early trade.

Pakistan's sovereign dollar bonds strengthened as much as 1.7 cents, Tradeweb data showed on Thursday. A bond maturing in 2027 rose 1.75 cents to hit a 10-month high of just over 53 cents on the dollar by 0629 GMT, while a 2024 maturity was trading just under 80 cents, its highest in more than a year.

IMF projections

An IMF statement said the rescue programme would focus on an appropriately tight monetary policy aimed at curbing price pressures in the South Asian country of 220 million people.

The IMF expects inflation to average 25.9 per cent in fiscal year 2024, though it anticipates a substantial moderation to around 16 per cent towards the end of that period.

With the key policy rate at 22 per cent, the government has projected inflation at 21 per cent for fiscal 2024.

"A continued tight, proactive and data-driven monetary policy is warranted going forward," the IMF statement said.

The ailing Pakistani economy has faced an acute balance of payments crisis with only enough central bank reserves to cover barely a month of controlled imports. The IMF projects it will have an import cover of 1.4 months in fiscal 2024.

The IMF deal, a lifeline for Pakistan after it was on the cusp of default, came after eight months of tough negotiations over fiscal discipline.

"A market-determined exchange rate is also critical to absorbing external shocks, reducing external imbalances, and restoring growth, competitiveness, and buffers," the IMF said.

(Reuters)

More For You

5 best wireless headphones in 2025:Top picks for every budget in the UK

Discover the top wireless headphones of 2025 for every lifestyle and budget

iStock

5 best wireless headphones in 2025:Top picks for every budget in the UK

Wireless headphones are no longer just a luxury; they’re a lifestyle essential. Whether you’re blasting your favourite playlist on your morning commute across London, tuning out distractions while working from home, or hitting the gym, the right pair can make all the difference. But with countless options flooding the market, how do you choose? Don’t worry—we’ve done the hard work for you. From premium noise-cancelling powerhouses to wallet-friendly gems, here are the five best wireless headphones to elevate your audio game in 2025. Here’s our list:

1. Bowers & Wilkins Px8 (2025 Edition): A standout choice for UK audiophiles, the Bowers & Wilkins Px8 combines British craftsmanship with cutting-edge technology. Known for their luxurious design and exceptional sound quality, these over-ear headphones feature enhanced noise cancellation and up to 35 hours of battery life. Whether you’re navigating the Tube or enjoying a quiet evening at home, the Px8 delivers a rich, immersive listening experience.

Keep ReadingShow less
Bank-of-England-Getty
A general view of the Bank of England on December 19, 2024 in London. (Photo credit: Getty Images)

Bank of England set to reduce interest rate amid weak growth

THE BANK OF ENGLAND is expected to cut its key interest rate on Thursday as it seeks to support weak economic growth, even though inflation remains above target.

Analysts predict the central bank will reduce borrowing costs by a quarter point to 4.50 per cent at its first rate meeting of the year.

Keep ReadingShow less
OYO to boost UK presence with £50m investment

OYO operates more than 200 budget hotels across 65 UK cities

OYO to boost UK presence with £50m investment

OYO, a hospitality technology company, aims to invest £50 million in the UK over three years to expand its premium hotel portfolio, supporting 1,000 jobs in the hospitality sector.

The company is upgrading its UK portfolio by acquiring premium inventory and securing longterm leasehold and management contracts. OYO is in advanced talks with large hotel chains and real estate firms for asset management deals, the company said in a statement released to Indian media.

Keep ReadingShow less
India and Britain brace for impact of Trump tariff threat

India lowers duties on high-end motorcycles to 30 per cent

India and Britain brace for impact of Trump tariff threat

INDIA does not want to give any signal that it is protectionist, the top bureaucrat in the finance ministry said, after slashing import duties on high-end motorcycles, amid US president Donald Trump’s moves on tariffs.

Trump has ignited a trade war with sweeping tariffs on Canada, Mexico and China. None were aimed at India, although Trump had called it a tariff abuser during his election campaign last year.

Keep ReadingShow less
Asda-Getty

Asda, which is dealing with declining sales after a private equity-led takeover, denied any discrimination.. (Photo credit: Getty Images)

Asda staff move closer to £1.2 billion equal pay payout

THOUSANDS of Asda workers have won the latest stage in a long-running equal pay case, bringing them closer to a potential £1.2 blillion payout.

The Manchester employment tribunal ruled that 12 out of 14 lead claimants, part of a case involving 60,000 employees, had jobs of equal value to their higher-paid, mostly male counterparts working in Asda warehouses, The Guardian reported.

Keep ReadingShow less