June 21, 2022
3 mins read

Pakistan hopeful of IMF deal within days

Reporters also asked Miftah whether the IMF is opposed to the government’s decision to increase the salaries of employees by 15 per cent and tax exemption for those earning less than Rs 1.2m annually….reports Asian Lite News

Pakistan Finance Minister Miftah Ismail expressed hope on Monday that an agreement with the International Monetary Fund (IMF) for the revival of the Extended Fund Facility (EFF) would be reached “within one or two days”, media reports said.

The minister made the remarks while speaking to reporters after a meeting of the Senate standing committee on finance, Dawn reported.

When asked whether Prime Minister Shehbaz Sharif is working on imposing taxes or giving relief to the masses, the minister said: “It depends on the kind of people they are. If they are well-to-do, then taxes will be applicable but the poor will be provided relief.”

Reporters also asked Miftah whether the IMF is opposed to the government’s decision to increase the salaries of employees by 15 per cent and tax exemption for those earning less than Rs 1.2m annually.

IMF urges Lebanon to implement ‘agreed-upon’ reforms



“The IMF has nothing to do with salaries as long as we have the money,” he said, adding that the government will “protect” those earning less than Rs 1.2m annually.

Pakistan signed a 39-month, $6 billion EFF in July 2019, but the IMF stopped the disbursement of about $3 bn when the previous government reneged on its commitments. Currently, Islamabad wants the IMF to not only resume disbursements, but to also expand the size and duration of the programme, Dawn reported.

So far, Pakistan and the IMF have not yet been able to reach close to a staff-level agreement for revival of the loan programme, leaving authorities in a tight spot to bridge the gap and get the updated federal budget for the fiscal year 2022-23 passed by the National Assembly.

PKR on a free fall

In line with market expectations, the Pakistani rupee (PKR) has plunged further and crossed the 210 threshold against the US dollar for the first time in the interbank market on Monday.

The domestic currency was available at 210.19 PKR against the greenback in the interbank market, Geo News reported.

This is the seventh consecutive working day of free-fall in the rupee, losing approximately 6 PKR, or over 3 per cent, to date.

The central bank has seemed helpless in controlling the speculative fall in the rupee as demand for the greenback continues to soar due to quarter-end payments pressure.

“The currency will continue to fall until Pakistan manages to strike a staff-level agreement with the International Monetary Fund (IMF),” AA Commodities Director Adnan Agar said.

The analyst was of the view that the investors’ confidence is completely shattered which can only be strengthened by positive development on the IMF front, reports Geo News.

Agar also mentioned that depleting foreign exchange reserves has triggered panic buying giving speculators a chance to play with the demand and supply of the greenback.

Meanwhile, Exchange Companies Association of Pakistan (ECAP) Chairperson Malik Bostan identified widening trade deficit, political instability, and declining foreign direct investment as major reasons behind the devaluation of the local currency.

“Political stability is key for economic development,” he said, adding that former Prime Minister Imran Khan’s call for another long march may adversely affect the rupee-dollar parity.

ALSO READ: US agrees to help Pakistan negotiate IMF bailout deal

Previous Story

111 unrecognised political parties delisted by EC

Next Story

Imran supporters take to streets demanding immediate polls

Latest from -Top News

Kerala CM begins Gulf tour

Kerala CM Pinarayi Vijayan begins Gulf tour in Bahrain, engaging expatriate community and promoting welfare initiatives for NRKs, strengthening diaspora ties and showcasing Kerala’s development achievements….reports Asian Lite News Kerala Chief Minister

Delhi Dismisses Trump’s Oil Claim

India’s foreign ministry says it is “not aware” of a phone call in which Donald Trump claimed Narendra Modi agreed to halt Russian oil purchases…reports Asian Lite News India’s foreign ministry has

Kerala CM Vijayan Begins Gulf Tour

Vijayan’s Middle East tour underwent a revision after the Ministry of External Affairs declined permission for his planned visit to Saudi Arabia….reports Asian Lite News Kerala Chief Minister Pinarayi Vijayan arrived in

Spy Storm Won’t Halt UK’s China Push

Government presses ahead with a series of high-level visits to Beijing even as controversy over collapsed espionage case casts a shadow on relations….reports Asian Lite News Ministers are pushing ahead with their

UK Carrier Group’s India Visit Cements Military Ties

Joint exercises with India mark deepening strategic cooperation as new defence deals secure British jobs and strengthen UK’s Indo-Pacific presence…reports Asian Lite News Britain’s strategic partnership with India has taken a significant
Go toTop

Don't Miss

Torkham border reopens for trade activities

The FC officials informed that the Taliban had shut the

Tribal clashes: Pak-Afghan Kharlachi border reopens after 9 days

The closure of this key border crossing caused great trouble