ISLAMABAD: Pakistan requires gross external financing of $51.6 billion within two-year period of the current fiscal year 2021-22 and next fiscal year 2022-23 in order to fulfill its needs. Without striking a deal with the IMF under the existing $6 billion Extended Fund Facility (EFF) during the ongoing parleys in Washington, D.C, this massive gross external financing requirement will be at risk in the wake of suspension of program loans from other multilateral creditors such…
Posts published in “ECONOMY”
Successive Pakistani governments have failed to live up to their promises of curbing corruption and tax evasion. And the sitting government, led by the PTI, is no exception. In FY20-21, a mere 2.5 million individuals – excluding those from the salaried class – and business entities filed the annual income tax returns. There are 7.5 million registered income taxpayers in Pakistan which has a population of 220 million. So a little above 1% pay the…
The failure of Pakistan-IMF talks to reach a staff level agreement for completion of the 6th review of the bailout program despite trying twice, first in June and then now, means that the ambitious budget for the ongoing fiscal is already in trouble. And while it’s true that it’s simply too early to draw a curtain on the whole Extended Fund Facility (EFF), it’s also not unrealistic to fear much harsher requirements if the program…
THE PTI administration has found itself left with no option but to go back to the IMF with a request for the resumption of the $6bn loan programme stalled since March. With the 2023 elections in sight, the government was reluctant to introduce the unpopular measures suggested by the global lender. The strict programme conditions, especially the ones related to electricity pricing and tax reforms, were also seen as major impediments to the government’s plans…
ISLAMABAD: The Finance Division on Sunday announced that negotiations between Pakistan and the International Monetary Fund (IMF) have been moving forward in Washington positively. According to a statement, the Secretary of Finance Division is leading the talks with the IMF in Washington DC. It said that technical teams of both sides are continuing detailed discussions in virtual format after exchange of relevant data sets. The Finance Division said that no time frame was set at…
ISLAMABAD: The IMF may decline to club the sixth and seventh reviews under the $6 billion Extended Fund Facility (EFF) as requested by Islamabad as currently, both sides are making efforts for accomplishing only the sixth review. Top official sources confirmed to The News that the IMF staff was considering only evolving a consensus on standalone sixth review during the ongoing parleys being held in Washington, DC, with Pakistani authorities. On the other hand, Minister…
ISLAMABAD: Unable to reconcile on Memorandum of Economic and Financial Policies (MEFP), the International Monetary Fund (IMF) and Pakistan have so far failed to strike staff-level agreement under $6 billion Extended Fund Facility (EFF). The Pakistani side expects the finance secretary to prolong his stay in Washington DC for the next few days for making last-ditch efforts, to reconcile and evolve consensus on the MEFP and completion of 6th and 7th reviews, to pave way…
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have again failed to reach a staff-level agreement at the scheduled time because of differences over the macroeconomic framework and deepening uncertainty over the future roadmap of the economy. The fresh round of talks from October 4 to 15 for the release of the $1 billion loan tranche and receiving a good economic health certificate remained inconclusive. The talks failed despite Pakistan having implemented a prior condition…
ISLAMABAD: The Supreme Court has been moved to order the Federal Board of Revenue (FBR) to launch an inquiry and determine if those named in the Pandora Papers and the Panama Papers had committed or indulged in any wrongdoing while transferring funds to offshore companies. A petition filed before the apex court sought a direction for the citizens named in the Panama Papers and the Pandora Papers to clear themselves by assuring the FBR that…
ISLAMABAD: Slamming the government over back-to-back price hikes, the Pakistan Peoples Party on Friday regretted that the government had increased electricity tariff up to 40 per cent over the last three years, with latest increase of Rs1.68 per unit that the federal cabinet has approved. “Is anyone tearing electricity bills up in public meetings now?” asked PPP parliamentary leader in the Senate Sherry Rehman in an indirect reference to the demonstrations staged in the past…
ISLAMABAD: To fulfil the International Monetary Fund (IMF) demand to stay in its programme, the government Friday increased power tariff by Rs1.39/unit with the federal cabinet approval. The increase will become effective from November and continue till the end of the financial year, June 2022. The tariff has been increased after the government withdrew Rs72 billion subsidy, which it was providing to various categories of power consumer. Now, the government has reduced the subsidy requirement…