Close Menu
Buzz NewsBuzz News
    Facebook X (Twitter) Instagram
    Trending
    • Top stocks to buy today: Stock recommendations for July 2, 2025 – check list
    • Government allows cab aggregators to hike peak-hour surge prices
    • Air India Boeing 787 crash: What brought down AI 171 plane in Ahmedabad? Simulation puts focus on technical failure
    • IndiGo direct flights to UK: Airline makes long-haul debut on Mumbai–Manchester route; check schedule
    • IPO watch: Hero Motors refiles IPO papers with Rs 1,200 crore issue, ups fresh component to Rs 800 crore
    • Who is Kesavan Ramachandran? RBI elevates internal veteran to executive director, to oversee prudential regulation
    • India-US trade deal: Talks enter sixth day as Donald Trump’s tariff deadline looms; top things India is pushing for amidst hectic negotiations
    • Infosys vs Cognizant fight gets uglier! Why are the two big IT firms battling it out in the US? Explained
    • Layoff wave spreads across US: Starbucks, FedEx, Frito-Lay, Microsoft may axe jobs in July – here’s what’s going wrong
    • Cryptocurrency market today: Bitcoin holds near $107k amid tariff caution, Altcoins see mixed moves
    Buzz NewsBuzz News
    Wednesday, July 2
    • Home
    • Cryptocurrency
    • Investment Tips
    • Finance
    • Home Insurance
    • Market News
    • Life Insurance
    Buzz NewsBuzz News
    Home»Finance»Why IMF bailout package is now expected next month
    Finance

    Why IMF bailout package is now expected next month

    BuzzNewsBy BuzzNewsAugust 21, 2024No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Why IMF bailout package is now expected next month
    Share
    Facebook Twitter LinkedIn Pinterest Email Telegram WhatsApp Copy Link

    People attend the 2023 Spring Meetings inside the International Monetary Fund in Washington, US, April 12, 2023. — AFP
    People attend the 2023 Spring Meetings inside the International Monetary Fund in Washington, US, April 12, 2023. — AFP

    ISLAMABAD: The IMF’s assent to Pakistan’s bailout package is now expected in September because of a couple of reasons, including the nonavailability of confirmation of external financing, non-materialization of launching of international bonds and increased subsidy for rationalizing power tariff.

    Minister for Finance Mohammad Aurangzeb told journalists during a meeting of the Senate Standing Committee on Finance in early August 2024 that the Fund’s Executive Board would approve the Pakistan loan package within the ongoing month. When a journalist insisted that the approval might delayed till September, the minister had denied it in a firm tone. Now the Minister for Finance has admitted in a response to sent question to The News that they had made good progress towards getting to Board’s approval in September. The sources said that the lingering political instability and lack of full clarity on external financing paved the way for this unwarranted delay in getting approval from the IMF’s executive board on $7 billion Extended Fund Facility (EFF).

    The question arises that when the external financing was not yet confirmed then why the IMF struck a staff-level agreement with Pakistan back on July 12, 2024. Some sources cited the example of Sri Lanka as Colombo had faced a default owing to non-materialisation of external financing from its international creditors. “Things are quite crucial at this stage as Islamabad will have to manage external financing as early as possible as that will pave the way for getting approval from the Fund’s executive board,” said the official and added that political stability is required to secure assurances on rollover and getting commercial re-financing of over $16 billion from friendly countries and commercial banks.

    The IMF is also assessing that the financing needs might go on the higher side if the government preferred to open up the economy by lifting restrictions on imports as it might result surge into the current account deficit. Under the IMF program, the government cannot restrict imports through tariff and non-tariff barriers for an indefinite period. This scribe sent out a question to the IMF official for comments on Monday but got no response till Tuesday night.

    Also, the government’s plan to rationalise power tariffs could not get an endorsement from the IMF so far. However, the government secured endorsement for its decision to reduce the tariff for those using 200 units by utilizing a Rs 50 billion subsidy which was diverted from PSDP to provide relief to power sector consumers. However, the IMF has not yet endorsed the subsidy being provided in Punjab as well as the federal government’s plan to rationalise tariffs by slashing development budgets both at federal and provincial levels. The IMF argued that the government pitched a higher Public Sector Development Program (PSDP) on the pretext that it would jump-start sluggish economic activities. If the PSDP at the federal level and Annual Development Plans (ADPs) were reduced then how the economic growth target of 3.5 percent would be materialised? In such a scenario, the macroeconomic projections might have to be revised for the current fiscal year before starting the new IMF loan programme.

    bailout expected IMF Month package
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleStock market today: BSE Sensex opens in red; Nifty50 near 24,650
    Next Article Axis pips ICICI in card machine business
    BuzzNews
    • Website

    Related Posts

    Tax compliance: Tata Steel served Rs 1,007 crore GST notice, says claim lacks merit, no business impact expected

    June 29, 2025

    Panasonic downsizes India operations: Japanese firm to exit washing machines, fridge markets; layoffs expected

    June 26, 2025

    Realty breaks out: Nifty Realty outpaces Nifty 50, jumps 8% in a month, analysts pick these stocks with upside

    June 25, 2025

    Leave A Reply Cancel Reply

    Recent Posts

    Top stocks to buy today: Stock recommendations for July 2, 2025 – check list

    July 2, 2025

    Government allows cab aggregators to hike peak-hour surge prices

    July 2, 2025

    Air India Boeing 787 crash: What brought down AI 171 plane in Ahmedabad? Simulation puts focus on technical failure

    July 2, 2025

    IndiGo direct flights to UK: Airline makes long-haul debut on Mumbai–Manchester route; check schedule

    July 1, 2025

    IPO watch: Hero Motors refiles IPO papers with Rs 1,200 crore issue, ups fresh component to Rs 800 crore

    July 1, 2025
    Our Picks

    Bitcoin Remains Above $60,000, Bittensor Becomes Top Gainer

    August 23, 2024

    Prospects For Cryptocurrency Development In South Asia

    August 23, 2024

    Trump announces The DeFiant Ones, a new cryptocurrency platform

    August 23, 2024

    Hackers use McDonald’s Instagram account to steal $700,000 in cryptocurrency scam

    August 22, 2024
    About

    Welcome to BuzzNews, your go-to source for the latest in insurance and finance news. Our mission is to provide you with accurate, timely, and insightful information to help you make informed decisions. From life insurance to personal finance, market news to investment tips, we cover a wide range of topics to keep you updated and knowledgeable.

    Popular Posts

    Top stocks to buy today: Stock recommendations for July 2, 2025 – check list

    July 2, 2025

    Government allows cab aggregators to hike peak-hour surge prices

    July 2, 2025

    Air India Boeing 787 crash: What brought down AI 171 plane in Ahmedabad? Simulation puts focus on technical failure

    July 2, 2025
    OUR CATEGOIRES
    • Cryptocurrency
    • Finance
    • Health Insurance
    • Home Insurance
    • Investment Tips
    • Life Insurance
    • Market News
    Copyright © 2024. BuzzNews. All Rights Reserved.
    • Sitemap
    • DMCA
    • Terms and Conditions
    • Privacy Policy
    • Contact Us
    • About Us

    Type above and press Enter to search. Press Esc to cancel.