KARACHI: Pakistan’s finance ministry on Saturday denied media reports regarding the “failure” of talks with the International Monetary Fund, saying the negotiations to revive the $6 billion loan program were still underway.
The country’s top economic officials have been in conversation with the international financial institution since the beginning of the month to form the basis for the completion of the sixth review of the bailout package.
A successful completion of the review will enable the country to receive about $1 billion from the fund.
While the outcome of the dialogue is yet to be announced by the two parties, certain local media outlets have already proclaimed its failure.
“Media reports about the failure of talks amid ongoing negotiations are not true,” Muzammil Aslam, the spokesperson to the country’s finance chief, told Arab News. “As soon as the dialogue concludes, a statement will be issued for public information.”
The IMF country head in Pakistan, Teresa Dabán Sanchez, also said on Friday negotiations with Pakistan were still continuing to arrive at an understanding.
“We are looking forward to our continued discussions with the Pakistani authorities on the set of policies and reforms that could form the basis for the completion of the 6th review under the EFF [Extended Fund Facility],” she told Arab News.
The uncertainty surrounding the talks with the IMF has exerted pressure on Pakistan’s national currency which hit a historic low on Friday and closed at Rs174 against the US dollar.
The country’s stock exchange also suffered losses for the same reason, making analysts point out that failure of the IMF talks would negatively impact the country’s foreign currency inflows.
“A successful conclusion of these negotiations will ease pressure on the stocks and the rupee and will change the market sentiment,” Tahir Abbas, director research at Arif Habib Limited, told Arab News.
The IMF wants Pakistan to ensure domestic revenue mobilization, reduction in power sector arrears, electricity subsidy reforms and more operational autonomy to the central bank.
The government already raised power tariffs last week, making analysts claim it was trying to fulfil the conditions imposed by the international financial institution.
People familiar with the development said the IMF was insisting on increasing the revenue collection threshold set in the federal budget.
Pakistan said it wanted to collect Rs5.83 trillion ($39.2 billion) in revenue during the current fiscal year.
Economists believe additional revenue collection will be a tough challenge for the political administration in the current situation since prices of essential items are already toward a higher side.
Pakistan denies ‘failure’ of IMF talks, says negotiations still underway
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Pakistan denies ‘failure’ of IMF talks, says negotiations still underway
- The country’s finance ministry says a statement announcing the outcome of talks will be issued as soon as the dialogue is over
- Analysts say the IMF demand for Pakistan to collect additional revenue may be difficult to fulfil since the prices of essential items are already high
Pakistan says Iraq expressed ‘keen interest’ in JF-17 jets at air chiefs meeting
- Pakistan’s defense sector has drawn growing interest and investment since a four-day standoff with India in May last year
- Many countries have since increased defense engagement, while multiple others have proposed learning from Pakistan’s expertise
ISLAMABAD: Pakistan’s military said on Saturday that Iraq had shown “keen interest” in its JF-17 Thunder and Super Mushshak aircraft at a meeting between chiefs of the two air forces.
Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu called on Lt. Gen. Staff Pilot Mohanad Ghalib Mohammed Radi Al-Asadi, commander of the Iraqi Air Force, during his official visit to Iraq.
The Pakistani air chief was accorded a guard of honor at the Iraqi Air Force headquarters, symbolizing the strong bond of mutual respect, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“Discussions focused on enhancing bilateral military cooperation, with emphasis on joint training, capacity-building and improving operational cooperation,” the ISPR said.
“The Iraqi Air Chief praised PAF’s professionalism and technological advancement, expressed interest in benefiting from PAF’s world-class training and expressed keen interest in JF-17 Thunder fighter jets, Super Mushshak trainer aircraft.”
Pakistan’s defense sector has drawn growing interest and investment, particularly since a four-day India-Pakistan military standoff in May last year. Islamabad claimed victory in the standoff, saying it had shot down six Indian aircraft, including French-made Rafale jets. India acknowledged losses but did not specify a number.
Many countries have since stepped up defense engagement with Pakistan, while delegations from multiple other nations have proposed learning from Pakistan Air Force’s multi-domain air warfare capabilities that successfully demonstrated how advanced Chinese military technology performs against Western hardware.
Pakistan markets the Chinese co-developed JF-17 as a lower-cost multi-role fighter and has positioned itself as a supplier able to offer aircraft, training and maintenance outside Western supply chains.
Islamabad is in the final phases of striking a $1.5-billion deal to supply weapons and jets to Sudan in a major boost for Sudan’s army that has been battling the paramilitary Rapid Support Forces, Reuters reported this week, citing a former top air force official and three sources.
The South Asian country reached a deal worth over $4 billion to sell military equipment to the Libyan National Army, Reuters report last month, citing Pakistani officials. The deal, one of Pakistan’s largest-ever weapons sales, included the sale of 16 JF-17 fighter jets and 12 Super Mushshak trainer aircraft for basic pilot training.
