IMF Approves $1.2 Billion for Pakistan from Bailout, Citing Progress on Economic and Climate Reforms

The International Monetary Fund on Tuesday approved the release of $1.2 billion to Pakistan, giving the cash-strapped country a fresh boost as it works to recover from one of its worst economic crises in years, the Associated Press reported. The IMF in a statement said its executive board completed two reviews of Pakistan’s economic programs, clearing about $1 billion under its main loan facility and another $200 million from a separate climate-focused program. With the latest approval, Pakistan has received about $3.3 billion from the IMF since last year.
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PTI Criticizes Economic Woes Under PML-N Governance

The Pakistan Tehreek-e-Insaf (PTI) has launched a scathing critique of the government's economic management, attributing severe decline in GDP growth from over 6% to negative figures, to the leadership of Prime Minister Shehbaz Sharif, Devdiscourse reported. PTI Central Information Secretary Sheikh Waqqas Akram has highlighted a concerning reduction in average Pakistanis' purchasing power by 58% since the current administration took office.

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Pakistan Receives Second Tranche Under Extended Fund Facility from IMF, Central Bank Says

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.
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Pakistan Raises Petroleum Tax as It Eyes Next IMF Loan Tranche

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.
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Pakistan Cuts Interest Rates to Lowest in Over Two Years

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.
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Pakistan National Carrier Sale Uncertain After Low Offer

Pakistan’s sale of national flag carrier Pakistan International Airlines Corp. has become uncertain after the maiden bid was below the minimum price of about $306 million, Bloomberg News reported. Blue World City submitted a bid 8.5 times lower than the government’s expected price of 85 billion rupees, according to details provided by the Privatisation Commission in Islamabad. The government is going to review the outcome of the process, said the commission’s Secretary Usman Bajwa.

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Pakistan Finance Chief Sees ‘Encouraging’ China Debt Talks

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.
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Pakistan Cuts Rates to Revive Economy as Inflation Cools

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.
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Pakistan Says It Has Met All the Conditions Set by the IMF to Secure $7 Billion Loan

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.
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