Pakistan

Pakistan’s central bank lowered its benchmark rate by a bigger margin than expected, the first reduction in four years, after consumer prices eased in the South Asian nation, Bloomberg News reported. The State Bank of Pakistan reduced the target rate by 150 basis points to 20.50%, compared to a median estimate for a 100 basis point cut. Only two economists predicted the decision. “The committee, on balance, viewed that it is now an appropriate time to reduce the policy rate,” the central bank said in a statement.

Pakistan’s new government is hoping to inject some fresh momentum into projects that fall under China’s Belt and Road Initiative, as it tries to boost the country’s troubled economy, Bloomberg News reported. The South Asian nation is looking at joint ventures for renewable energy projects, agriculture collaboration and possibly enticing some Chinese companies to relocate to Pakistan, said Ahsan Iqbal, Pakistan’s federal minister for Planning, Development and Special Initiatives, who also co-heads the committee responsible for the China-Pakistan Economic Corridor, in an interview.

An International Monetary Fund (IMF) mission has opened discussions with Islamabad on a new loan programme, a Pakistan finance ministry statement said on Monday, Reuters reported. The mission chief, Nathan Porter, met Pakistan's Finance Minister Muhammad Aurangzeb to "kick-start the discussions on further engagement with the fund." Aurangzeb informed the team of improvements in the macro-economic indicators over the course of the standby arrangement and underscored the government's commitment to continue and expand the reform agenda, the ministry said.

Downside risks for the Pakistani economy remain exceptionally high, the International Monetary Fund (IMF) said on Friday, in its staff report on the country, ahead of talks with the fund on a longer term progamme, Reuters reported. An International Monetary Fund mission is expected to visit Pakistan this month to discuss a new programme, ahead of Islamabad beginning its annual budget-making process for the next financial year. "Downside risks remain exceptionally high.

Pakistan will push back the deadline for companies to express interest in buying national carrier Pakistan International Airlines to May 18, the country's privatisation minister said on Thursday, Reuters reported. The extension, announced in a statement by Minister for Investment and Privatisation Abdul Aleem Khan, came a day before the expressions of interest had originally been due. He said 10 companies had already expressed an interest.

Pakistan’s central bank held the key interest rate at a record high for a sixth straight meeting, as a newly-elected government holds loan talks with the International Monetary Fund that wants a tight monetary policy to curb inflation, Bloomberg News reported. The State Bank of Pakistan kept the target rate at 22%, according to a statement on Monday. Thirty of the 37 analysts surveyed by Bloomberg predicted a hold while the rest expected a cut. The decision comes as a new government led by Prime Minister Shehbaz Sharif seeks a new loan of at least $6 billion from the multilateral lender.

Pakistan won final approval for the disbursement of about $700 million in aid from the International Monetary Fund, vital support for the embattled South Asian economy ahead of elections next month, Bloomberg News reported. The IMF’s executive board approved the loan, the Washington-based lender said in a statement on Thursday. The nation’s dollar bonds rallied, posting the top five gains in emerging markets on Friday. The 2026 notes gained 1.5 cents to 71.6 cents on the dollar, extending Thursday’s 3.1 cent rally.

Pakistan and the International Monetary Fund reached a much-awaited preliminary agreement Wednesday for the release of $700 million from a $3 billion bailout fund approved by the international lender in July, the Associated Press reported. The standby credit fund is meant to save cash-strapped Pakistan from default. The two sides reached the staff-level agreement during talks in Islamabad, a statement from the IMF said. Pakistan's government also confirmed the deal and and hailed it.

Pakistan plans to privatise its loss-making national carrier Pakistan International Airlines, the government said on Monday, as the country also seeks to outsource its airport operations in line with an IMF deal, Reuters reported. The privatisation decision was taken at a meeting of the Cabinet Committee of Privatisation chaired by Finance Minister Ishaq Dar. The committee "after deliberation decided to include Pakistan International Airlines Co.