FinMin Aurangzeb optimistic about IMF deal breakthrough
Finance Minister Muhammad Aurangzeb has expressed optimism about the ongoing negotiations with the International Monetary Fund (IMF), stating that talks are in their final stages and there are no significant obstacles remaining.
Speaking to the media on Friday, the minister confirmed that Pakistan is on track to meet the IMF's economic targets and reassured that the discussions will soon conclude positively.
Aurangzeb emphasised Pakistan's commitment to fiscal discipline, highlighting the government's adherence to the financial framework agreed upon with the IMF.
The talks are focused on securing the next tranche of funding, which is crucial for Pakistan's economic recovery.
The IMF Mission Chief to Pakistan, Nathan Porter, also confirmed last week that significant progress had been made toward reaching a Staff-Level Agreement (SLA) regarding the first review of Pakistan's $7 billion loan programme.
The success of these talks will pave the way for Pakistan to receive about $1 billion as part of the second instalment of the loan.
Additionally, Aurangzeb addressed climate change challenges, stressing the urgent need for structured climate financing to combat environmental risks.
He acknowledged the increasing threats posed by climate change, including the rapid melting of glaciers and economic disruptions caused by environmental changes, particularly in Lahore.
The finance minister also highlighted international pledges for flood rehabilitation, although the country has struggled to fully utilise these resources due to implementation challenges.
Earlier on Thursday, the central bank governor, Jameel Ahmad, said that there was no hurdle from the State Bank of Pakistan (SBP)'s side in reaching a staff-level agreement with the International Monetary Fund (IMF), and any outstanding issues might be related to the federal government.
While talking to the media after a meeting of the Public Accounts Committee (PAC), the governor hoped that the staff-level agreement would be reached very soon with the IMF. However, he did not provide a firm date for the deal, which has been overdue since March 14.
The PAC meeting also revealed that the federal government was about to give "emperor-like powers" to Federal Finance Minister Muhammad Aurangzeb to approve up to five special honoraria for employees and officers of various government departments.
"There is no issue pending with us, and any outstanding issue might be on the part of the federal government," said Jameel Ahmad while responding to a question about the timing of the staff-level agreement with the IMF. The governor did not specify any particular issue but stated that finalising matters with ministries and divisions takes time.
Pakistan and the IMF held talks from March 3 to 14, but both sides could not reach a staff-level agreement due to delays in finalising the Memorandum of Economic and Financial Policies (MEFP). After the mission returned to Washington, the Ministry of Finance held at least two virtual sessions with the IMF in the presence of other stakeholders.
The IMF and Pakistan are in the process of finalising the MEFP in the areas of trade and taxes, along with fiscal and circular debt numbers. The federal authorities remain hopeful that the agreement will be reached soon. According to the IMF Board's schedule, the first programme review and the end-December 2024 performance and continued criteria must be completed by March 15.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
13 hours ago
- Express Tribune
SBP pumps Rs13.3tr, raises Rs358b
Listen to article The State Bank of Pakistan (SBP) injected a record Rs13.33 trillion into the financial system on Friday through two major Open Market Operations (OMOs), signalling its continued effort to manage liquidity and stabilise financial markets. The injection was made through both conventional reverse repo purchases and Shariah-compliant Mudarabah-based instruments. Under the conventional OMO, the SBP injected Rs13.05 trillion, comprising Rs904.25 billion for a 7-day tenor at 11.02% and Rs12.15 trillion for a 14-day tenor at 11.01%. Bids were accepted on a pro-rata basis. The high participation, with total bids at Rs13.31 trillion, reflected strong demand from market participants. In the parallel Shariah-compliant OMO, the central bank injected Rs270 billion. This included Rs120 billion for 7 days at 11.15% and Rs150 billion for 14 days at 11.13%. The higher rates on Islamic OMOs indicated continued premium demand for Shariah-compliant liquidity. Additionally, the SBP raised Rs358 billion in the latest Pakistan Investment Bonds (PIB) auction, exceeding the Rs300 billion target. Investor interest remained strong, with total bids reaching Rs1,129 billion. According to AKD Securities, cut-off yields for shorter tenors increased. The 2-year bond yield rose by 24 basis points to 11.09%, the 3-year by 9bps to 11.14%, and the 5-year by 5bps to 11.44%. In contrast, the 10-year paper yield fell by 5bps to 12.15%. The 15-year bond was accepted at a cut-off yield of 12.45%, the first such result disclosed for this tenor. The rise in shorter-term yields reflected market concerns over near-term inflation and tight liquidity. Meanwhile, the decline in longer-term yields suggested investor confidence in long-term economic stability. The aggressive bidding highlighted strong investor appetite for government securities amid a stable interest rate outlook. The Pakistani rupee also appreciated by 0.05% on Friday. It closed at 282.72 against the US dollar, gaining 15 paisa from the previous day's rate of 282.87. In contrast to global trends, gold prices in Pakistan edged lower on Friday. This came despite bullion gaining nearly 2% internationally, driven by weaker US payroll data and renewed trade tensions that increased safe-haven demand. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the gold price per tola dropped by Rs100 to settle at Rs352,900. The price for 10 grams also fell by Rs86, closing at Rs302,555. This modest drop followed Thursday's steeper Rs2,000 per tola decline, reflecting currency movements and local demand pressure. Internationally, spot gold surged 1.8% to $3,350.67 per ounce as of (15:35 GMT), after rising as much as 2% earlier. The metal was up 0.4% for the week. Adnan Agar, Director at Interactive Commodities Gold, said gold touched an intraday low of $3,381 and a high of $3,455, trading near $3,448. He added that weak US data and tariff concerns linked to President Donald Trump drove the $60 spike. He expected bullish momentum to continue into Monday, with resistance near $3,460–$3,470.
Business Recorder
15 hours ago
- Business Recorder
PARTLY FACETIOUS: Prosecution not always necessarily weak
'When one door opens and the other closes, you are probably in jail.' 'Hey, I hope that is not a backhanded comment on recent judicial decisions by the anti-terrorist court…' 'No it's not backhanded –it's like the International Monetary Fund front loaded or handed if you will comment.' 'But protesters cannot go around destroying public property, I mean that requires some reprisal if you will.' 'Right, but the prosecution was very weak and failed to provide any evidence against…..' 'As weak as when the Deputy Prime Minister got exonerated from the court after hand writing a 40-page affidavit implicating his benefactor, his counterpart Samdhi, his….' 'Shut up anyway, I urge all Pakistan Tehrik-i-Insaaf convicts to see the glass as half full.' 'From jail?!' 'Yes, look at the terms: free three meals a day are provided, you do not have to pay for electricity, you do not need gas whose price is as high as electricity now, free laundry service….' 'Don't be facetious.' 'You have to deal with whatever life doles out to you, and you know what: nine times out of ten you are responsible for where you are at.' 'I agree with that, did you hear the line: what do you call poetry written in jail: Prose and Cons!' 'I prefer what do you call it when a prisoner takes his own mug shot? The answer is a cellfie.' 'I have another: why are inmates so angry all the time? Cause they have bad cell service.' 'Anyway, there are some very famous celebrities who are currently in our jails – though I am not sure whether they have access to VIP jails or not.' 'Talk of our obsession with elite capture. I mean VIP jails! Are there such jails anywhere else in the world! Anyway did you hear the one about what do you call a celebrity in jail? A celebrity.' 'Not funny. But I heard VIP cells come with attached inmates who provide service associated with domestic-helpers… you know, clean up and….' 'I would pass on that! I mean convicted murderers!!' 'I reckon that those who committed non-violent crimes are used to provide service to the VIPs.' 'So why did the belt get arrested?' 'Because it no longer fit the inmate….see he gained weight and….' 'No because he held up the pants.' 'I don't get it.' 'Perhaps you need a jail visit to understand.' Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business Recorder
SBP assigns new ‘FEEL' to ADs
KARACHI: The State Bank of Pakistan has assigned new Foreign Exchange Exposure Limit (FEEL) to the Authorized Dealers. According to SBP, given the changes in market conditions and trade volumes, and to facilitate Authorized Dealers (ADs) in their foreign exchange operations, it has been decided that FEEL shall be assigned to ADs equal to 7.5 percent of their Tier-1 Capital as disclosed in latest annual audited financial statements. SBP revises Telegraphic Transfer charges scheme, raises limit to $200, includes ECs As per the current criteria, the FEEL of each Authorized Dealer will be advised separately based on its Tier-1 Capital position, as per its latest annual audited financial statements. The revised limits would be effective from August 4, 2025. All other instructions on the subject shall remain unchanged. Copyright Business Recorder, 2025
