Latest news with #IMFExtendedFundFacility
See - Sada Elbalad
09-07-2025
- Business
- See - Sada Elbalad
Egypt Reaches Preliminary Agreement with IMF to Merge Fifth, Sixth Reviews amid Cautious Privatization Timeline
Taarek Refaat Egyptian Prime Minister Mostafa Madbouly announced on Wednesday that the government has reached a preliminary agreement with the International Monetary Fund (IMF) to merge the program's fifth and sixth reviews, allowing more time for strategic state asset sales without compromising value. Speaking at a press briefing, Madbouly emphasized that while Egypt has met all IMF targets under the Extended Fund Facility (EFF) — including currency flexibility, reserves accumulation, and fiscal discipline — the only exception has been the pace of privatization. 'It was expected that we would achieve a certain volume of asset offerings by a specific date,' Madbouly stated. 'However, we as a government concluded that it was not appropriate to proceed with selling state-owned assets in a market environment that does not ensure fair value. We're not just meeting targets for the sake of it.' Privatization on Hold Until Market Conditions Improve The Prime Minister clarified that the delay in public asset sales was a deliberate and economically justified decision, noting that the goal is to maximize value for state-owned enterprises, not just meet numerical targets tied to the IMF program. As part of the agreement with the IMF, the fifth and sixth program reviews will now be consolidated and postponed until the final quarter of 2025, giving Egypt more time to prepare for favorable market conditions. Reform Momentum Maintained Despite the adjusted timeline for privatizations, Madbouly affirmed that Egypt remains fully committed to structural reforms under the IMF program. He highlighted the government's progress on multiple fronts, including: Maintaining a flexible exchange rate regime Meeting foreign reserve targets Reducing public spending and slowing state-led investments Expanding the private sector's share in total investment 'Across all macroeconomic indicators, Egypt is progressing successfully,' he added. IMF Agreement and Structural Reforms Egypt is currently under a $3 billion IMF Extended Fund Facility arrangement, agreed in December 2022, which includes commitments to fiscal consolidation, subsidy reform, and boosting private sector participation in the economy. Privatization is a key pillar of the reform package, aimed at generating revenue and reducing the state's footprint in commercial sectors. The recent fire at the Ramses Central Telecom hub and the resulting disruptions to digital infrastructure had no reported impact on IMF-related timelines, though they have added to the government's broader narrative on the importance of economic resilience and strategic patience. IMF read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Express Tribune
12-03-2025
- Business
- Express Tribune
Moody's upgrades Pakistan's banking sector outlook to positive
Listen to article Moody's, a global credit rating agency, has revised Pakistan's banking sector outlook from stable to positive, attributing the change to stronger financial performance and a recovery in macroeconomic conditions from last year's downturn. The agency's latest report noted that Pakistan's banks are heavily invested in government securities, holding around 50% of their total assets in sovereign bonds. The upgrade reflects a more favorable liquidity position and improved external financing conditions, in line with the government's positive credit rating trend. According to Moody's, the outlook upgrade aligns with the improved sovereign credit rating of Pakistan as banks remain highly exposed to government risk through their substantial holdings of sovereign debt. The agency noted that the country's fiscal and monetary measures, coupled with an International Monetary Fund (IMF) programme, have helped stabilise its economy. Pakistan's economy has shown signs of recovery, with Moody's forecasting a GDP growth rate of 3% for 2025, up from 2.5% in 2024 and a contraction of 0.2% in 2023. Inflation, which had surged to an average of 23% in 2024, is expected to ease significantly to around 8% in 2025. The rating agency highlighted that the 37-month, $7 billion IMF Extended Fund Facility, approved in September 2024, has provided a crucial buffer for Pakistan's external financing needs. This, along with policy reforms, has improved investor confidence and stabilised the financial sector. Despite the upgrade, Moody's warned that risks remain, particularly regarding Pakistan's high dependency on external funding, fiscal discipline, and political stability. The banking sector's exposure to government securities also poses a risk in case of any sovereign distress. Financial experts believe that while the positive outlook is a step forward, sustainable economic growth will require structural reforms, including improvements in tax collection, governance, and foreign direct investment. Moody's Investors Service has periodically adjusted Pakistan's credit rating in response to the country's evolving economic landscape. In October 2022, the agency downgraded Pakistan's sovereign credit rating from B3 to Caa1, highlighting increased government liquidity and external vulnerability risks, which were exacerbated by devastating floods that severely impacted the economy. The situation further deteriorated by March 2023, leading Moody's to lower the rating to Caa3. This decision was driven by a fragile liquidity position and critically low foreign exchange reserves, raising concerns about Pakistan's ability to meet its external debt obligations. However, by August 2024, signs of economic recovery emerged. Moody's upgraded Pakistan's rating to Caa2, reflecting improved macroeconomic conditions and the approval of a $7 billion IMF Extended Fund Facility, which bolstered the country's external financing prospects.
Express Tribune
03-03-2025
- Business
- Express Tribune
IMF mission arrives in Pakistan for economic review
Listen to article The IMF review mission has arrived in Pakistan to conduct an economic review regarding the payment of the next installment of $1 billion from the $7 billion bailout package. According to sources in the Ministry of Finance, economic review negotiations with the International Monetary Fund (IMF) will continue until March 15. In this regard, the first phase will involve technical discussions, while the second phase will focus on policy-level negotiations. Led by Nathan Porter, the 9-member IMF delegation will stay in Pakistan for almost two weeks and will also provide proposals for the upcoming budget for fiscal year 2025-2026, Express News reported. Sources have indicated that relief for salaried individuals will only be possible if the IMF gives its approval. The review mission will hold discussions with the Ministry of Finance, Ministry of Energy, Planning, and the State Bank. According to sources, the IMF delegation will also hold talks with other institutions and ministries, including the FBR, OGRA, NEPRA, and others. Earlier, adviser to the Pakistan finance minister said that the IMF will also discuss around $1 billion in climate financing for Pakistan. Advisor to Finance Minister Khurram Schehzad told Reuters that the mission would visit from February 24 to 28 for a 'review and discussion' of climate resilience funding. The disbursement will take place under the Fund's Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy. Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation's vulnerability to climate change. The country's economy is on a long path to recovery after being stabilised under a $7 billion IMF Extended Fund Facility it secured late last year.
Arab News
24-02-2025
- Business
- Arab News
IMF, Pakistan to open $1 billion climate financing talks today
ISLAMABAD: Pakistan and the International Monetary Fund mission will open discussions from today, Monday, for around $1 billion in climate financing for Pakistan, an adviser to the country's finance minister said. Khurram Schehzad told Reuters last week the IMF mission will visit from February 24-28 for a 'review and discussion' of climate resilience funding. The disbursement will take place under the Fund's Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy. Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation's vulnerability to climate change. Pakistan's Geo News TV had earlier reported that the IMF would issue the $1 billion for climate financing this week. The country's economy is on a long path to recovery after being stabilized under a $7 billion IMF Extended Fund Facility it secured late last year. 'Another IMF mission will arrive in Pakistan in the first week of March for a first review of that facility,' Schehzad said. The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change. Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country's economic struggles and high debt burden impinged its ability to respond to the disaster.
Express Tribune
22-02-2025
- Business
- Express Tribune
IMF to send delegation to Pakistan for $7 billion loan review
Listen to article The International Monetary Fund (IMF) has announced that its review mission will visit Pakistan to negotiate the next tranche of the $7 billion loan, with discussions also set to focus on climate financing. The IMF delegation is scheduled to arrive in Pakistan in early March to conduct the first review of the ongoing loan programme. According to IMF's representative in Pakistan, Maahir Binesi, the delegation will engage in talks regarding the next installment of the loan and will also review the technical aspects of climate financing at Pakistan's request. A separate IMF mission, which will focus on climate-related financial arrangements, is expected to visit Pakistan at the end of February. During this visit, the technical team will assess the ongoing climate financing initiatives and review potential arrangements for future support. These discussions are part of Pakistan's efforts to secure financial resources to combat climate change, which has had a significant impact on the country in recent years. Moreover, IMF mission is also to arrive in Islamabad next week to discuss around $1 billion in climate financing for Pakistan, an adviser to the Pakistan finance minister said on Thursday. Advisor to Finance Minister Khurram Schehzad told Reuters that the mission would visit from February 24 to 28 for a 'review and discussion' of climate resilience funding. The disbursement will take place under the Fund's Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy. Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the nation's vulnerability to climate change. The country's economy is on a long path to recovery after being stabilised under a $7 billion IMF Extended Fund Facility it secured late last year. Another IMF mission will arrive in Pakistan in the first week of March for a first review of that facility, Schehzad said. The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change. Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700. The country's economic struggles and high debt burden impinged its ability to respond to the disaster.
