Latest news with #ExtendedFundingFacility
Hans India
14-05-2025
- Business
- Hans India
Pakistan receives second tranche of IMF funding, to begin budget discussions virtually
Islamabad: Pakistan is scheduled to start virtual discussions with the International Monetary Fund (IMF) on the country's upcoming fiscal budget after the visit of the IMF mission was delayed due to security reasons amid the ongoing tensions between India and Pakistan which have affected flight operations nationwide. Sources said that the IMF virtual talks holds pivotal value as the country's government will present Pakistan's proposed budget details to the newly-elected IMF mission chief to Pakistan. "We still hope that the new mission chief would be able to travel to Islamabad over the weekend, which is subject to security situation. However, the adjustment to have the discussion virtually would not affect the work or the original programme schedule," said one official. Details revealed that the first round of the virtual discussions will start on Wednesday and continue for at least three days. "Discussions are expected to be held virtually for the first leg. For the second leg of the talks, the IMF team is expected to arrive in Islamabad on Saturday and stay till May 23," a source said. The IMF discussion on the fiscal budget are happening at a time when Pakistan received its second tranche of funding from the IMF under the Extended Funding Facility (EFF). Pakistan's State Bank confirmed that it has received Special Drawing Rights (SDR) Rs 760 million ($1.023 billion) as part of the second tranche under the IMF EFF programme, adding that the latest disbursement will be recorded in the country's foreign exchange reserves. The latest disbursement of IMF's second tranche to Pakistan follows an approval from the IMF Executive Board on May 9. The IMF also cleared a $1.4 billion funding arrangement under the Resilience and Sustainability Facility (RSF) to support Pakistan's climate resilience initiatives during the meeting. IMF has appointed a new mission chief for Pakistan, Iva Petrova, who is expected to lead the discussions along with the outgoing IMF mission chief Nathan Porter who carried the reputation of being strict on policy issues and kept a hawk eye on Pakistan finance ministry's media policy. 'Pakistan will unveil the budget for fiscal year 2025-26 on June 2, making it the second budget presentation of the sitting finance minister Muhammad Aurangzeb. The factors of the budget have to be in line with the parameters set during the current meetings with the IMF," said a government source, highlighting the critical importance of the IMF budget discussions. Experts say that the fiscal budget for the year 2025-26 is expected to be another tough one for the government and the people at large. 'Pakistan is expected to formulate the budget on the assumption of having 1.6 per cent of the country's GDP primary budget surplus. This would require the government to generate at least Rs two trillion over and above the non-interest expenses," said economic expert Shahbaz Rana. "Tax target for the Federal Board of Revenue (FBR) is proposed to be at least 11 per cent of the GDP. IMF will review if the Pakistan government is setting credible and realistic targets and measures to back its new tax targets," he added. The defence budget is also expected to be increased, while the overall budget to be presented hovers around Rs 18 trillion. "The overall budget deficit target after incorporating large provincial cash surpluses is projected at 5.1 per cent of the GDP or Rs 6.7 trillion," said Rana. On the other hand, the IMF has already set multiple pre-conditions, which Pakistan said it has fulfilled despite initial setbacks. "Pakistan has met the IMF targets for a primary budget surplus by the federal government, as well as net revenue collection and cash surplus targets by the four provinces. This is why the talks with the IMF on the upcoming fiscal budget may not be as tough," Rana said. "However, the Federal Board of Revenue (FBR) has miserably failed in multiple domains on its enforcement measures in areas including track and trace, compliance risk management and retailers scheme, and has failed in its tax collection drive', Rana added. Pakistan is hopeful that its past performance and the recent release of the second tranche of IMF, would justify its compliance to the IMF conditions, paving the way to a successful discussion before the fiscal budget in June 2025.
India.com
08-05-2025
- Business
- India.com
Why is 9th May crucial after Operation Sindoor? amid India Pakistan tension IMF to review…
As Pakistan seeks another $1.3 billion from the IMF, India warns the funds may be propping up terror, not just the economy. The IMF Executive Board is scheduled to meet Pakistan officials on May 9 for the first review of the Extended Funding Facility (EFF), and request for an arrangement under the resilience and sustainability facility. India on Friday said it will be asking global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan, as New Delhi seeks to corner the neighbouring state diplomatically following the dastardly April 22 terror attack in Pahalgam which killed 26 tourists. According to media reports, India has raised concerns with the International Monetary Fund (IMF) regarding its loans to Pakistan, stating that these funds helps the country to redirect domestic resources towards its military-intelligence network, including the ISI and terror groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM). Why Is IMF Reviewing Pakistan's Funding? Amid its ongoing fiscal crisis, Pakistan is reliant on IMF loans under its economic stabilisation programme. The IMF's upcoming review, scheduled for May 9, will assess whether Pakistan has met the reform benchmarks required to secure the next tranche of funding. Last year, Pakistan received a $7 billion bailout package from the IMF, then again got an additional $1.3 billion loan in March to address climate resilience challenges. These funds are huge for a country like Pakistan which is very small $350 billion economy Rising India-Pakistan Tensions Tensions between India and Pakistan grew after the April 22 Pahalgam Terror Attack, where 26 people lost their lives. After which India took several diplomatic measures against Islamabad. On May 7, India launched Operation Sindoor , targeting nine sites linked to terrorism across the border. This action by India has further strained the relations between the two nations.
The Hindu
04-05-2025
- Business
- The Hindu
New Delhi's plan to ask IMF to review Pak. loans is politically motivated: Islamabad
Ahead of the International Monetary Fund's (IMF) crucial review meeting next week, Pakistan has termed 'politically motivated' India's announcement that it will request the global lender to review Islamabad's financial support programme after the Pahalgam terror attack. The Express Tribune said on Saturday (May 3, 2025) quoting officials that India's attempt to involve the IMF 'is an extension of its political campaign to isolate Pakistan diplomatically'. The IMF Executive Board is scheduled to meet Pakistan officials on May 9 for the first review of the Extended Funding Facility (EFF), and request for an arrangement under the resilience and sustainability facility. India on Friday said it would be asking global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan, as New Delhi seeks to corner the neighbouring state diplomatically following the dastardly April 22 terror attack in Pahalgam which killed 26 tourists. Authorities have identified five terrorists — including three Pakistani nationals — behind the massacre in Pahalgam. Islamabad has rejected the accusations and called for an impartial international investigation. Prime Minister Narendra Modi on April 24 vowed to punish the terrorists behind the Pahalgam terror attack and those part of the conspiracy beyond their imagination, asserting that the country's enemies targeted not merely unarmed tourists but dared to attack India's soul. In a high-level meeting with the defence brass on April 29, Mr. Modi asserted that the armed forces have 'complete operational freedom' to decide on the mode, targets and timing of India's response to the terror attack, according to government sources. Meanwhile, the newspaper quoted an adviser to Pakistan's Finance Ministry as confirming on Friday that the country's $7 billion IMF bailout, secured last year, remains 'well on track' and critical for macroeconomic stability. Islamabad also received an additional $1.3 billion in climate resilience funding in March 2025. 'This programme is not just stabilising Pakistan — it is building confidence,' said finance adviser Khurram Schehzad. 'The latest IMF review went smoothly, and our meetings with global financial institutions in Washington reflected high investor interest.'
New Indian Express
03-05-2025
- Business
- New Indian Express
Islamabad calls New Delhi's plan to ask IMF to review Pak loans as 'politically motivated'
ISLAMABAD: Ahead of IMF's crucial review meeting next week, Pakistan has termed India's announcement that it will request the global lender to review Islamabad's financial support programme as "politically motivated" after the Pahalgam terror attack. The Express Tribune said Saturday quoting officials that India's attempt to involve the International Monetary Fund (IMF) "is an extension of its political campaign to isolate Pakistan diplomatically." The IMF Executive Board is scheduled to meet Pakistan officials on May 9 for the first review of the Extended Funding Facility (EFF), and request for an arrangement under the resilience and sustainability facility. India on Friday said it will be asking global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan, as New Delhi seeks to corner the neighbouring state diplomatically following the dastardly April 22 terror attack in Pahalgam, which killed 26 tourists. The Express Tribune said officials argue that India's attempt to involve the IMF is an extension of its political campaign to isolate Pakistan diplomatically. Authorities have identified five terrorists, including three Pakistani nationals, behind the massacre in Pahalgam. Islamabad has rejected the accusations and called for an impartial international investigation. Prime Minister Narendra Modi on April 24 vowed to punish the terrorists behind the Pahalgam terror attack and those part of the conspiracy beyond their imagination, asserting that the country's enemies targeted not merely unarmed tourists but dared to attack India's soul. In a high-level meeting with the top defence brass on April 29, Modi asserted that the armed forces have "complete operational freedom" to decide on the mode, targets and timing of India's response to the terror attack, according to government sources. Meanwhile, the newspaper quoted an adviser to Pakistan's Finance Ministry as confirming on Friday that the country's USD 7 billion IMF bailout, secured last year, remains "well on track" and critical for macroeconomic stability. Islamabad also received an additional USD 1.3 billion in climate resilience funding in March 2025. "This programme is not just stabilising Pakistan; it's building confidence," said finance adviser Khurram Schehzad. "The latest IMF review went smoothly, and our meetings with global financial institutions in Washington reflected high investor interest."
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Business Standard
03-05-2025
- Business
- Business Standard
Islamabad calls India's IMF loan review push 'politically motivated'
Ahead of IMF's crucial review meeting next week, Pakistan has termed India's announcement that it will request the global lender to review Islamabad's financial support programme as politically motivated after the Pahalgam terror attack. The Express Tribune said Saturday quoting officials that India's attempt to involve the International Monetary Fund (IMF) is an extension of its political campaign to isolate Pakistan diplomatically. The IMF Executive Board is scheduled to meet Pakistan officials on May 9 for the first review of the Extended Funding Facility (EFF), and request for an arrangement under the resilience and sustainability facility. India on Friday said it will be asking global multilateral agencies, including the IMF, to have a relook at funds and loans provided to Pakistan, as New Delhi seeks to corner the neighbouring state diplomatically following the dastardly April 22 terror attack in Pahalgam which killed 26 tourists. The Express Tribune said officials argue that India's attempt to involve the IMF is an extension of its political campaign to isolate Pakistan diplomatically. Authorities have identified five terrorists including three Pakistani nationals behind the massacre in Pahalgam. Islamabad has rejected the accusations and called for an impartial international investigation. Prime Minister Narendra Modi on April 24 vowed to punish the terrorists behind the Pahalgam terror attack and those part of the conspiracy beyond their imagination, asserting that the country's enemies targeted not merely unarmed tourists but dared to attack India's soul. In a high-level meeting with the top defence brass on April 29, Modi asserted that the armed forces have complete operational freedom to decide on the mode, targets and timing of India's response to the terror attack, according to government sources. Meanwhile, the newspaper quoted an adviser to Pakistan's Finance Ministry as confirming on Friday that the country's USD 7 billion IMF bailout, secured last year, remains well on track and critical for macroeconomic stability. Islamabad also received an additional USD 1.3 billion in climate resilience funding in March 2025. This programme is not just stabilising Pakistanit's building confidence, said finance adviser Khurram Schehzad. The latest IMF review went smoothly, and our meetings with global financial institutions in Washington reflected high investor interest.
