IMF dismisses misconceptions about lending to Pakistan
WASHINGTON: International Monetary Fund (IMF) Director of Communications, Julie Kozack, firmly responded to an Indian journalist's provocative question regarding funding for Pakistan during the press briefing.
During a press briefing, Indian journalist had asked Kozack whether Pakistan could use IMF funds to support cross-border terrorism.
Julie Kozack categorically rejected the notion, stating that the IMF loan programme is strictly for supporting Pakistan's foreign exchange reserves and not for budgetary support or any government expenditure.
IMF reaffirms support for Pakistan's bailout, calls for deesclation with India
She clarified that the IMF loan disbursement is meant to stabilize Pakistan's balance of payments and is deposited directly into the State Bank of Pakistan's reserves, not the federal treasury.
Julie Kozack further said that the IMF's conditions prohibit the Government of Pakistan from borrowing from the central bank, and current borrowing from the State Bank stands at zero.
She also confirmed that Pakistan has met all economic targets under the existing loan program, which began in September 2024, and the May 9th disbursement was approved purely on merit.
She added that the IMF Executive Board approved the release of the loan installment based on Pakistan's strong economic performance and that board voting is conducted confidentially. When asked about recent geopolitical tensions, she expressed deep sorrow over the human losses in the Pakistan-India conflict and hoped for a peaceful resolution between the two nations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
India bond yields extend rise as market digests RBI stance shift
MUMBAI: Indian government bond yields rose in early trade on Monday as investors weighed the central bank's surprise shift last week to a neutral policy stance, following a larger-than-expected rate cut. The benchmark 10-year yield was at 6.2591% as of 10:00 a.m. IST, up from Friday's close of 6.2373%, while the five-year 6.75% 2029 bond was at 5.8344%, compared with 5.8150% previously. 'For the day, we expect some caution to prevail, but if the upside is capped, then we can see some recovery in the coming days,' a trader at a private bank said. The Reserve Bank of India (RBI) delivered a larger-than-expected 50-basis point (bp) rate cut on Friday, its steepest in five years, but changed its policy stance to 'neutral' from 'accommodative', stating that it may have limited space for further easing. RBI Governor Sanjay Malhotra said, after having cut rate by 100 bps, under the present circumstances, monetary policy is now left with very limited space to support growth. Indian bond yields may dip as RBI surprises with another debt purchase The central bank also announced a cut in banks' cash reserve ratio by 100 bps to 3%, adding to already surplus liquidity. J.P. Morgan Chase now expects 5.50% to be the terminal repo rate, against its earlier prediction of 5.00%. The RBI may keep rates on hold until at least the end of this fiscal year, a snap Reuters poll of economists found after Friday's decision. Still, Nomura is anticipating the RBI to cut rates by 25 bps each in October and December as growth and inflation are expected to undershoot targets.
Business Recorder
2 hours ago
- Business Recorder
Indian shares open higher on global tailwinds, RBI policy support
Indian shares opened higher on Monday, buoyed by positive global cues, including strong US jobs data and signs of progress in US-India trade talks as well as the Reserve Bank of India's (RBI) bumper monetary policy measures. The Nifty 50 was up 0.63% at 25,160.1, while the BSE Sensex gained 0.47% to 82,574.55, as of 9:15 a.m. IST. All 13 major sectors advanced. High-weightage financials and private banks gained about 1% each. The broader small- and mid-caps rose about 0.7% each. The Nifty 50 and BSE Sensex rose about 1% each on Friday after the RBI cut the repo rate by a bigger-than-expected 50 basis points and reduced the cash reserve ratio (CRR) for lenders by 100 bps. Global sentiment was upbeat after a robust US jobs report eased concerns over economic momentum. The MSCI Asia ex-Japan index rose 0.7%, tracking Wall Street's gains on Friday. India's benchmark Nifty 50 logs best day in three weeks on RBI's bumper policy support Meanwhile, trade talks between Indian and US officials are progressing, with both sides seeking consensus on tariff cuts in the farming and auto sectors in a bid to finalise an interim deal before a July 9 deadline, Indian government sources said. Investors also await trade talks between the US and China in London later in the day. The discussions are expected to focus on critical minerals, whose production is dominated by China.
Business Recorder
2 hours ago
- Business Recorder
Indian rupee back on the ropes after US yields spike post jobs data
MUMBAI: The Indian rupee is set to come under renewed stress on Monday after the US economy added slightly more number of jobs than was expected, prompting a rise in US Treasury yields and bringing relief to the dollar. The 1-month non-deliverable forward indicated a open in the 85.74-85.78 range, versus the close of 85.6250 in the previous session. The Indian currency had found respite on Friday after the Reserve Bank of India delivered a larger-than-expected rate cut while the signalling limited room for more reductions. The policy surprise lifted domestic equities and lent support to the rupee. 'The opening today is probably just a retracement of Friday's move,' a currency trader at a Mumbai-based bank said. 'With the US jobs data broadly positive for the dollar, the rupee is simply coming back under pressure.' The trader is betting on a 85.60-86.00 range for the week with bias more-or-less neutral. US jobs surprise Employers added 139,000 jobs last month, above estimates for an increase of 130,000. Average hourly earnings increased 0.4% in May against a rise of 0.3%. Indian rupee rally likely to extend on positive Asian cues, inflow hopes The unemployment rate was unchanged at 4.2%. Federal Reserve rate cut expectations were scaled back post the data, Morgan Stanley said in its daily commentary. The market-implied rate for the December Fed meeting was re-priced 9 basis points higher, implying just 42 bps of rate cuts through 2025, it said, adding that the probability of a rate cut in July fell to 12% from 25%. The 10-year US Treasury yield climbed nearly twelve bps on Friday and the dollar index rose 0.5%. The key US jobs report followed a string of mostly weak data points that had raised concerns about the economic outlook. With that risk now tempered to an extent, attention turns to the pivotal US-China trade talks scheduled to take place in London later in the day.
