Latest news with #Kozack
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First Post
4 days ago
- Business
- First Post
Pakistan's budget built on borrowed money faces a reality check
The IMF has demanded stricter compliance with programme requirements, especially from the provincial governments in Pakistan, who are believed to have exceeded their development allocations for next year by almost $3 billion than the IMF's estimates read more The International Monetary Fund (IMF) has tightened scrutiny of Pakistan's budget appropriation amid final consultations. According to reports in Pakistani media, the IMF has demanded stricter compliance with programme requirements, especially from the provincial governments, who are believed to have exceeded their development allocations for next year by almost PKR 850 billion ($3 billion) than the IMF's estimates. The IMF has also directed the provinces to start levying tax on agricultural income by September this year. STORY CONTINUES BELOW THIS AD The fund has also reportedly expressed its displeasure over the government's plan to incentivise enhanced power consumption. IMF asks provinces to control expenditure Pakistani newspaper Dawn reported that the fund has asked the provincial governments to control expenditure, something that doesn't conform with expansionary development plans already approved by the National Economic Council (NEC). On the other hand, provinces have expressed their inability to provide a committed budget surplus this year, citing the Centre's revenue shortfall. Pakistan's crypto mining project in a fix Additionally, the IMF has asked the Pakistani government to continue cost-cutting efforts to stabilise the power sector and provide a level playing field to all. It means that Pakistan's move to allocate 2000MW of electricity to crypto farming at a much cheaper rate (PKR 8-9 per unit) than unit base rate (PKR 25 per unit) may face hurdles. The IMF is against Punjab's plan to provide subsidies for electricity and gas next year, as it did this year. The IMF wants joint efforts to tackle electricity and gas theft and smuggling to reduce financial losses and tax evasion. Provinces will need to streamline their departments next year to align with similar federal efforts this year. IMF's ultimatum to Pakistan This follows the IMF's ultimatum last month on how Islamabad should use the $1 billion aid package it provided. IMF Communication Director Julie Kozack stated that Pakistan has met all the requirements to receive the aid package. However, she emphasised that the funds are strictly to address balance of payments issues and cannot be used for budget financing or other sectors. 'In the case of Pakistan, and this is my second point, the EFF disbursements, all of the disbursements received under the EFF, are allocated to the reserves of the central bank. So, those disbursements are at the central bank, and under the program, those resources are not part of budget financing. They are not transferred to the government to support the budget,' Kozack said. STORY CONTINUES BELOW THIS AD IMF's aid to Pakistan has drawn criticism from New Delhi of late. During the military escalation between the two nuclear-powered nations, India requested the IMF to reassess the bailout, citing Pakistan's allowance of its territory for state-sponsored terrorist activities against Indian citizens. Defence Minister Rajnath Singh recently described the aid as 'indirect funding to terror' and warned international organisations, including the IMF, to reevaluate their decisions to aid Pakistan. The IMF has provided Pakistan with $2.1 billion in two instalments under its Extended Fund Facility (EFF) programme. The instalments are part of a $7 billion agreement signed with Pakistan last year.
Egypt Today
25-05-2025
- Business
- Egypt Today
IMF reaffirms support as Egypt advances 5th EFF review, IMF Mission concludes Cairo visit
Cairo – May 25, 2025: The International Monetary Fund (IMF) has affirmed its continued backing for Egypt as the country works through the fifth assessment of its $8 billion Extended Fund Facility (EFF) agreement. Earlier this month, an IMF delegation traveled to Cairo to engage in talks with Egyptian officials concerning the review, which, upon completion, could lead to the release of a $1.2 billion installment. This marks the second review following the program's expansion in March, when its total value was raised from $3 billion to $8 billion. 'The Fund remains committed to supporting Egypt in building its economic resilience and fostering higher private sector-led growth,' said Julie Kozack, the IMF's Communications Director, during a recent briefing. She noted that Egypt has made 'clear progress on its macroeconomic reform program, with notable improvements in inflation and foreign exchange reserves.' Kozack explained that IMF staff have spent the past few weeks in 'productive discussions with the Egyptian authorities on economic performance and policies under the EFF.' While the field portion of the mission has concluded, virtual meetings will continue in order to finalize policy agreements necessary to complete the review. 'The mission finished discussions in the field, and the meetings will continue virtually to finalize agreement on remaining policies and reforms that could support completion of the Fifth Review,' she stated. Looking ahead, Kozack emphasized the importance of structural reforms to ensure Egypt's economic momentum continues. 'As Egypt's macroeconomic stabilization is taking hold, efforts must now focus on accelerating and deepening reforms that will reduce the footprint of the state in the Egyptian economy, level the playing field, and improve the business environment.' The fifth review comes at a critical time for Egypt, as it approaches the end of its fiscal year in June while grappling with regional and global economic challenges. Completion of the review is a key step toward securing further IMF support and reinforcing investor confidence.
Express Tribune
24-05-2025
- Business
- Express Tribune
IMF brushes aside Indian propaganda
Listen to article The International Monetary Fund (IMF) has said that the $7 billion lending programme is meant for only supporting Pakistan's foreign exchange reserves and it cannot be used for to finance the budget, brushing aside Indian propaganda about the usage of the loan. "All of the Extended Fund Facility (EFF) disbursements are allocated to the reserves of the central bank. So, those disbursements are at the central bank, and under the programme, those resources are not part of budget financing," said Ms Julie Kozack, the spokeswoman of the IMF while responding to a question. She added that the EFF loans are not transferred to the government to support the budget. India has launched a malicious campaign against Pakistan despite being the aggressor. Pakistan on Friday accused India of sponsoring terrorism and killing innocent children in Balochistan. Miss Julie said that the IMF financing is provided to members for the purpose of resolving balance of payments problems. She said that there are additional safeguards to ensure that the money is used only for the agreed purposes. There are "targets on the accumulation of international reserves. It includes a zero target, meaning no lending from the central bank to the government", said the spokeswoman in a press conference in Washington. And the IMF programme also includes substantial structural conditionality around improving fiscal management. Of course, any deviation from the established program conditions would impact future reviews under the Pakistan programmes, she added. Pakistan and the IMF had signed the $7 billion programme in September last year, and so far, the global lender has disbursed $2.1 billion, including giving $1 billion this month by turning down Indian objections. While responding to a question about India's decision to withdraw its executive director, Kozack said that the appointment of executive directors is a matter for the member country and it is not a matter for the fund. She said that it is completely up to the country's authorities to determine who represents them at the fund. She expressed "regrets and sympathies for the loss of life and for the human toll from the recent conflict, hoping for a peaceful resolution of the conflict. The spokeswoman said that the IMF executive board approved Pakistan's EFF program in September of 2024. And at that time the first review was planned for the first quarter of 2025. "In the case of Pakistan, our board found that Pakistan had indeed met all of the targets. It had made progress on some of the reforms, and for that reason, the Board went ahead and approved the programme," said Kozack. She did not disclose the voting pattern at the time of the approval of the $1 billion loan tranche and said that the board decisions are taken by consensus, and in this case, there was a sufficient consensus at the Board to allow us to move forward or for the Board to decide to move forward and complete Pakistan's review. At the time of the approval of the new tranche, the IMF had also introduced 11 new conditions, including approval of the new budget by the Parliament in line with the IMF staff's guidelines. The next IMF review for the sake of the third loan tranche of $1 billion is tentatively scheduled in September in which the IMF would review the implementation on all these conditions. So far, the IMF has imposed a total of 50 conditions in return of the $7 billion loan, which are relatively more than the conditions imposed under the previous programmes.
Business Recorder
24-05-2025
- Business
- Business Recorder
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.
See - Sada Elbalad
23-05-2025
- Business
- See - Sada Elbalad
IMF: Egypt Sees Significant Improvement in Economic Indicators
Taarek Refaat Julie Kozack, Director of the International Monetary Fund's Communications Department, commended the Egyptian government's efforts on Friday, stressing that Egypt has made remarkable progress in its macroeconomic reform program, with a marked improvement in inflation rates and foreign exchange reserves. In a press statement today, Kozack stressed the Fund's continued commitment to supporting Egypt in its efforts to build economic resilience and promote higher private sector-led economic growth. She noted that discussions on the policies and reforms necessary to complete the fifth review of the cooperation program between Egypt and the Fund are still ongoing. In response to a journalist's question about the latest developments in the fifth review, she explained that the mission team has concluded its field discussions, and meetings will continue virtually to reach a final agreement on the remaining policies and reforms that will support the completion of the fifth review. She noted that a team of IMF experts held fruitful discussions with the Egyptian authorities a few weeks ago on the performance of economic policies under the Extended Fund Facility program. She explained that with Egypt's macroeconomic stability increasing, efforts should now focus on accelerating and expanding reforms. These reforms aim to reduce the state's role in economic activity, ensure equal opportunities for all, and improve the overall business climate. 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 Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
