Pakistan

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.

Pakistan’s prime minister said Tuesday he was hopeful the International Monetary Fund will make its decision in a day or two on the fate of the much-needed $6 billion bailout package for his country, the Associated Press reported. The remarks by Shahbaz Sharif came after he spoke to Kristalina Georgieva, the IMF chief, according to a government statement. The two also met last week, on the sidelines of a global financing meeting in Paris.

Pakistan’s central bank unexpectedly raised its benchmark rate to a record high in an emergency meeting as the nation makes a final attempt to revive its loan program with the International Monetary Fund, Bloomberg News reported. The State Bank of Pakistan’s monetary policy committee decided to raise rates by 100 basis points to 22%, it said in a statement. The decision has been taken after anticipated inflationary pressure that will come from the recently announced budget and decision to lift restrictions on imports, said the statement.

The International Monetary Fund (IMF) on Thursday expressed dissatisfaction with Pakistan’s recently presented budget, a blow for the cash-strapped country which has only two weeks left until its bailout programme expires, Reuters reported. Pakistan has barely enough currency reserves to cover one month's imports. It had hoped to have $1.1 billion of the funds released in November - but the IMF has insisted on a number of conditions before it makes any more disbursements.