Connect with us

International

IMF revives $ 6 billion bailout package for Pakistani economy | International Monetary Fund News

Published

on

 


The International Monetary Fund (IMF) said Monday it had agreed with Pakistan on measures needed to revive a stalled $ 6 billion financing program for the South Asian country, which faces growing economic challenges.

Pakistani authorities and IMF staff have reached a staff-level agreement on the policies and reforms needed to complete the sixth review, the IMF said in a statement.

Pakistan had been in talks with the IMF for several months to seek relief on the terms and conditions of the package. Its government bonds jumped between 1.3 and 2.8 cents against the US dollar with the news of a deal and were on track for their best day in more than a year.

The agreement is subject to approval by the Executive Board, following the implementation of preliminary actions, especially in fiscal and institutional reforms, the IMF said.

Completion of the review, pending the beginning of this year, will make available 750 million IMF special withdrawal rights, or about $ 1 billion, bringing total disbursements so far to about $ 3 billion. said in the statement.

Pakistan will ensure the adoption of legislation on central bank autonomy, as agreed with the IMF, said finance adviser Shaukat Tarin, who is equal to the country’s finance minister.

God willing we will pass, he said. We believe that the state bank should be independent in monetary policy and the exchange rate.

The Pakistani government has a simple majority in parliament to pass the law.

Tarin also vowed to take four more actions as agreed before the fund board meets to consider whether to approve the final installment issue.

These actions are: the withdrawal of tax exemptions and subsidies, an increase in the oil tax, higher energy tariffs and an audit of about $ 1.4 billion in additional funds borrowed in Pakistan in April 2020 to help it cope with the pandemic. COVID-19.

They asked for it and we have to do it, Tarin said at a press conference, referring to the audit.

Pakistan entered the $ 6 billion 39-month financing program with the IMF in July 2019, but funding stalled earlier this year due to problems over required reforms.

Despite the difficult environment, progress continues to be made in implementing the program, the IMF said.

All quantitative performance criteria (PCs) for the end of June were met with wide margins, with the exception of that of the primary budget deficit, he said.

Pakistan has faced a historic currency devaluation, high inflation, a current account deficit and shrinking foreign exchange reserves, and talks between the government and the IMF had added to investors’ nerves.

This will lift [a] a lot of uncertainty, said a finance ministry spokesman about the deal with the fund.

The central bank last week warned that a higher-than-expected primary deficit is likely to worsen the inflation outlook and hurt economic recovery. It also raised the key interest rate by 150 basis points to 8.75 percent to counter inflationary pressures and maintain stability with growth.

Headline inflation had reached 9.2 per cent in October, up from 8.4 per cent two months earlier, the bank said.

The bank has also lifted the required cash reserve for commercial banks by one percentage point, the first such move in more than a decade, in another move to deal with accelerating inflation.

Sources

1/ https://Google.com/

2/ https://www.aljazeera.com/economy/2021/11/22/imf-revives-6bn-bailout-for-pakistans-economy

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]