KARACHI/ISLAMABAD: Prime Minister Shehbaz Sharif on Friday said that the International Monetary Fund’s (IMF) bailout deal for the country would “hopefully be completed this month” after approval from the lender’s board since Pakistan had fulfilled all the prerequisites for the release of the $1.1 billion tranche.

The prime minister speaking at the meeting of federal cabinet ahead of budget presentation hoped that the IMF program would be secured within current month before its expiry by end June.

Sharif’s issued the statement while presiding over the meeting of his cabinet right ahead of the announcement of the country’s federal budget for the next fiscal year.

The cash-strapped country is presenting its budget at a time when it is in desperate need of bailout funds from the IMF to shore up its foreign currency reserves which are barely enough to cover a month’s imports. The IMF’s ninth review, which was part of the $6.5 billion program for Pakistan signed in 2019, has been stalled since November last year.

“We not only accepted all conditions [of the IMF] but have also implemented the prior actions required from us. But still, the staff-level agreement has not been signed, so the matter will now go to the IMF’s board for a review,” Sharif said during a speech before his cabinet ahead of the announcement of the budget on Friday.

“We must hope that, as we have fulfilled all the conditions, the IMF’s ninth review will be completed this month after seeking approval from the lender’s board.”

The Pakistani prime minister added that he had recently spoken to the managing director of the global lender over the phone and had asked her for “verbal” assurances regarding the release of the funds.

“I suggested to her that if she provided me with a verbal commitment [regarding the signing of the agreement], we would take a few more steps the lender had asked for. Once we received the verbal commitment from her, we took those steps too, so now, no other [requirements] are left that could turn out to be an impediment in signing this deal.”

The PM reiterated that while fulfilling the IMF conditions, friendly countries like Saudi Arabia and the United Arab Emirates (UAE), came to Pakistan’s rescue for which he was immensely grateful.

“They helped a lot by sending $3 billion to us in a timely manner, $2 billion by KSA, and $1 billion by the UAE.”

The premier pointed out political stability was vital for the country’s economic growth, adding that the state and all its institutions were working together to move in that direction to strengthen Pakistan financially.

“Without political stability the wheel of the economy can’t move forward,” he said.

He also maintained the government was aware of the suffering of people who were forced to deal with spiraling inflation.

“We have to take care of the salaried class and the pensioners whose income have been eroded by inflation,” the prime minister added.

RIYADH: Oil prices rose on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to US interest rate hikes offset worries over demand weakness and a global economic slowdown.

At a recent meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, Saudi Arabia said it will cut its crude output by 1 million barrels per day in July on top of a broader deal to limit supply into 2024 as the producer group seeks to boost flagging prices.

Brent crude rose 25 cents, or 0.3 percent, to $77.20 a barrel by 1328 GMT. US West Texas Interme- diate crude gained 20 cents, or 0.3 percent, to $72.73.
“With the OPEC+ meeting out of the way, focus is now shifting toward the next move the Fed will make when it meets next week,” said Tamas Varga of oil broker PVM.
There is growing consensus that the central bank will skip a rate hike, which could lift oil prices even before falling supply starts draining global oil inventories, Varga added.
OPEC+ cooperation praised
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman praised their collaboration during a phone call on Wednesday in a discussion of the work of OPEC+, the Kremlin said.
“The topic of ensuring stability on world energy markets was discussed in detail,” according to a Kremlin statement on the Telegram messaging app.
“Both sides praised cooperation within the framework of OPEC+, allowing for the adoption of timely and effective steps to ensure a balance between supply and demand for oil.”
The statement noted the impor- tance of agreements reached at the group’s meeting this week.
UAE ship insurance rules
Tougher requirements for some ship insurers covering the UAE ships are aimed at boosting environmental safety amid growing concerns over unregu- lated shipping, reported the state- run news agency WAM.
The UAE’s Energy and Infrastructure Ministry, in a June 2 circular, announced it would tighten insurance criteria for vessels registered under its flag for insurers that are not part of the leading ship insurers, known as the International Group of Protec- tion and Indemnity Clubs, which cover 90 percent of the world’s ocean-going fleet.
“By prioritizing stringent P&I standards, we ensure the safety, financial security, and environ- mental stewardship of our maritime activities, attracting reputable investors,” said Hessa Al Malek, adviser to the minister for maritime transport affairs.
The WAM report added that the move would reduce the risk of accidents and oil spills, leading to a safer and more secure marine environment.