ISLAMABAD: The International Monetary Fund (IMF) announced it had reached a staff-level agreement with Pakistan on Wednesday on the first review of a nine-month standby arrangement (SBA), paving the way for Islamabad to receive a second tranche of around $700 million from the lender.
Pakistan and the IMF on Wednesday concluded talks for the completion of the first review of a $3 billion standby arrangement (SBA) signed in July this year. Islamabad has already received $1.2 billion from the fund and is expecting another $700 million after the completion of the latest review and formal approval by the IMF’s Executive Board.
The development took place shortly after Prime Minister Anwaar-ul-Haq Kakar met IMF’s mission chief in Pakistan, Nathan Porter and the lender’s resident representative for the country, Esther Perez Tuiz. Kakar assured the IMF officials of Pakistan’s “enduring commitment” to reform agreements with the international lender, the Prime Minister’s Office (PMO) said.
“The IMF team has reached a staff-level agreement (SLA) with the Pakistani authorities on the first review of their stabilization program supported by the IMF’s $3 billion (SDR2,250 million) SBA,” Porter said in a statement.
“The agreement is subject to approval of the IMF’s Executive Board. Upon approval around $700 million (SDR 528 million) will become available bringing total disbursements under the program to almost $1.9 billion,” he added.
Porter said the “steadfast execution” of FY24 budget, continued adjustment of energy prices and renewed flows into the foreign exchange market, have lessened fiscal and external pressures on Pakistan’s economy.
“Inflation is expected to decline over the coming months amid receding supply constraints and modest demand,” the statement said. “However, Pakistan remains susceptible to significant external risks, including the intensification of geopolitical tensions, resurgent commodity prices, and the further tightening in global financial conditions.”
The IMF said Pakistan’s policy priorities included fiscal consolidation to reduce public debt while protecting development needs. It acknowledged Pakistan’s move to increase gas prices and adjust energy tariffs this year, saying that the painful measures were necessary.
“While these increases were substantial, they were necessary to avoid further arrears that threatened the viability of these sectors and the provision of critical energy supplies,” Porter said.
He said Pakistani authorities realize that the rupee must remain market-determined to sustainably alleviate external pressures and build reserves. “To support this, they plan to strengthen the transparency and efficiency of the FX market and to refrain from administrative actions to influence the rupee,” the statement said.
Porter said Islamabad was moving ahead with its policy to privatize select state-owned enterprises (SOEs). It said high governance and transparency standards will apply to the management of assets owned by the newly created Sovereign Wealth Fund (SWF) and managed by the Special Investment Facilitation Council (SIFC).
“To further strengthen governance, the authorities will ensure public access to asset declarations from Cabinet members and a task force, with participation from independent experts, will complete a comprehensive review of the anticorruption framework,” he said.
Porter said Pakistani authorities have accelerated engagement with multilateral and official bilateral partners. “Timely disbursement of committed external support remains critical to support the authorities’ policy and reform efforts,” he added.
The IMF approved the SBA for Pakistan last year at a time when the South Asian country was struggling to bridge an external financing gap to avert a sovereign debt default.
To ensure the review went smoothly, Pakistan’s interim administration has implemented a raft of tough financial measures in recent months to secure the IMF backing, including hikes in electricity and fuel prices as well as interest rates, which led to intense inflationary pressure on the economy.
With elections on the horizon for early next year, experts believe essential reforms are likely to be rolled out during the tenure of the caretaker government, as an elected administration may hesitate to impose stringent financial measures.
Pakistan reaches staff-level agreement with IMF on first review of bailout program
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Pakistan reaches staff-level agreement with IMF on first review of bailout program
- Pakistan inches closer to receiving $700 million, the second tranche of a 9-month IMF program
- IMF says Pakistan recognizes rupee must remain market-determined, select SOEs must be privatized
Chinese giant Hoymiles enters Pakistani market to provide high-tech energy storage solutions
- The development comes after Pakistan emerges as one of world’s fastest-growing solar markets, importing nearly 50GW of solar panels
- Hoymiles entry will address long-hour backup and energy storage challenges facing Pakistan’s growing solar sector, local partner says
KARACHI: Renowned Chinese inverter manufacturer Hoymiles has entered Pakistan to provide high-tech, long-duration energy storage solutions for residential, commercial and industrial buildings by utilizing solar systems for electricity consumption, its Pakistani partner said on Monday.
Over the past few years, a large number of Pakistani industrial, commercial and residential electricity consumers have shifted to solar power systems to address frequent power outages and the rising cost of electricity. Reports indicate that net-metering capacity currently stands at 6,000 megawatts (MWs), while off-grid solar capacity has increased to 12,000 MWs in Pakistan by the end of 2025.
Hoymiles has formed strategic partnerships with Superstar, a renowned name in Pakistan’s automotive industry, and Harisun Energy, a new entrant in the energy solutions sector, to explore the Pakistani market, which is witnessing rapid growth in solar power adoption. In this regard, launch events were held simultaneously in Karachi and Lahore, unveiling multiple storage solutions produced by Hoymiles under the brands of Harisun Energy and Superstar.
Speaking as the chief guest at the Hoymiles launching ceremony in Karachi, Ali Rashid, advisor to Sindh chief minister on science and information technology (IT), said the provincial government appreciates foreign investors, particularly Chinese companies, establishing their industries, assembly, and distribution units in Karachi to meet the demand of the local market as well as export solutions to other countries.
“The government is working rigorously to facilitate foreign investors and companies to enhance their business and commercial activities, mainly in the technology and renewable energy sectors, to improve the living standards of the public and boost economic activity within the country and the province of Sindh,” he said.
The Sindh government is currently collaborating with various Chinese companies across different sectors, including logistics and renewable energy, and it welcomes further cooperation between the private and public sectors, according to Rashid.
The provincial government is considering establishing its own regulatory authority and transmission company, aimed at setting up a separate electricity grid system at the provincial level, which could provide affordable electricity to the masses and enhance connectivity to remote areas, preferably through renewable energy resources.
According to a report by the International Energy Agency (IEA), Pakistan has emerged as one of the world’s fastest-growing solar markets, importing approximately 50 GW of solar panels amid falling prices and widespread adoption across sectors in the first half of the year. This surge has made Pakistan the third-largest market for Chinese solar panels, a growth that has attracted global attention.
Superstar Solar Energy and Harisun Energy are introducing Hoymiles’ innovative range of solar inverters, energy storage solutions, and smart energy management systems to the Pakistani market. These solutions are designed to deliver reliable, efficient, and sustainable energy, empowering individuals and businesses to harness solar power as a clean and green energy source.
“Pakistan’s growing solar sector is facing a major challenge related to long-hour backup and energy storage solutions, which will soon be addressed with the entry of a global leader in energy solutions,” said Haris Jamsheed, CEO of Harisun Energy.
“Our partnership with the Chinese company will provide innovative energy storage solutions for residential, commercial, and industrial solar systems, enabling uninterrupted electricity supply at workplaces, factories, and homes during nighttime hours.”
Solarization has continued to expand across the country on a large scale due to prolonged load-shedding in remote areas and the high cost of electricity, which has become unaffordable for many households and industrial units, particularly in recent years.
“We have vowed to bring an energy revolution to Pakistan through innovative storage solutions, as the industrial and commercial sectors can enhance productivity with low-cost electricity backup systems,” said Saleem Umar, Chairman of Superstar.
“Affordable electricity will reduce operational costs at the domestic level, enabling exporters to compete more effectively in global markets.”
