Pakistan has received the second tranche of special drawing rights worth 760 million ($1,023 million) from the International Monetary Fund under the extended fund facility programme, the country's central bank said in a post on X on Wednesday. The amount will be reflected in its foreign exchange reserves for the week ending May 16, the State Bank of Pakistan said. Read more.

Pakistan raised a tax on petroleum as the government takes steps to meet International Monetary Fund expectations before the financial agency releases the next tranche of a loan package, Bloomberg News reported. The petroleum development levy was increased by 10 rupees to 70 rupees a liter, according to a notification the Oil and Gas Regularity Authority posted on its website. The IMF said on Saturday that Pakistan is making progress toward receiving the second $1 billion installment of the $7 billion loan agreement it secured last year.

Imran Khan, founding chairman of the Pakistan Tehreek-e-Insaf (PTI), has acknowledged that the current government has managed to stabilise Pakistan’s struggling economy, which was on the verge of collapse, Express News reported.

Pakistan cut its benchmark interest rate to the lowest in more than two years as easing inflation provides room for the central bank to boost growth, Bloomberg News reported. The State Bank of Pakistan lowered the target rate by 200 basis points to 13%, the central bank said in a statement Monday. All the 41 economists surveyed by Bloomberg predicted the move, with 26 forecasting the exact measure. Interest rate has dropped to the lowest since April 2022.

Pakistan is getting a promising response from China over its request to lengthen maturities for Belt and Road Initiative loans, according to its finance minister, signaling potentially more breathing room for the nation that has been squeezed by costly borrowing in the past, Bloomberg News reported. The South Asian nation is looking to increase the maturities for debt taken to build power plants and “create enough space” to lower electricity prices, Muhammad Aurangzeb said in an interview in Washington.

Pakistan cut its benchmark interest rate for a third consecutive meeting as slowing inflation gave policymakers space to revive economic growth, Bloomberg News reported. The State Bank of Pakistan lowered the target rate by 200 basis points to 17.5%, according to a statement. “The MPC assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target of 5%–7% and help ensure macroeconomic stability,” the central bank said.

Pakistan's Prime Minister Shehbaz Sharif said Thursday that his country has met all the conditions set by the International Monetary Fund to qualify for a new $7 billion loan to help prop up its economy, the Associated Press reported. During a Cabinet meeting in the capital, Islamabad, Sharif praised his finance team and other advisers for complying with the requirements set by the IMF, which is expected to sign a formal approval to the loan on Sept. 25, when the global lender's board of executive directors is scheduled to meet.

The State Bank of Pakistan (SBP), on Friday, annulled banking license of Industrial Development Bank Limited (IDBL) and directed its de-scheduling as it has gone into liquidation, the Associated Press of Pakistan reported. A notification issued by Banking Policy and Regulations Department of the central bank, reads “In exercise of powers conferred upon State Bank of Pakistan by Section 27 (4) of Banking Companies Ordinance, 1962 the banking license issued to Industrial Development Bank Limited (license No.

Pakistan has secured commitments from China, Saudi Arabia and the United Arab Emirates to rollover debt for a year, a boost for the nation as it awaits a final approval for its new $7 billion loan program with the International Monetary Fund, Bloomberg News reported. The amount of rollovers will be the same as last year, Pakistan’s Finance Minister Muhammad Aurangzeb told reporters in Islamabad after a parliamentary committee meeting. Pakistan has $12 billion in bilateral loans that have been extended for the past few years.