ISLAMABAD: Pakistan’s economic indicators are showing positive signs, with an agenda of painful reforms and privatization on track, Prime Minister Shehbaz Sharif said on Friday, ahead of an IMF board meeting to decide on a $1.1 billion funding for the country.
The prime minister said, in an address to his cabinet that was telecast live, that exports and remittances had shown a rise within one-and-a-half month of his government.
The IMF board is meeting on Monday to decide on the disbursement of the second and last tranche of a $3 billion standby arrangement Islamabad secured last summer to avert a sovereign default.
With a chronic balance of payment crisis, Pakistan needs $24 billion in payments for debt and interest servicing in the next fiscal year starting July 1 — three-time more than its central bank’s foreign currency reserves.
The South Asian nation is seeking yet another long-term, larger IMF loan. Pakistan’s Finance Minister, Muhammad Aurangzeb, has said Islamabad could secure a staff-level agreement on the new program by early July.
If successful, it would be the 24th IMF bailout for Pakistan.
The IMF-led structural reforms require Pakistan to raise its tax to GDP ratio from around 9 percent to at least 13 percent-14 percent, stop losses in state-owned enterprise and manage its energy sector losses which run into trillions of rupees.
“It is not just for an antibiotic to work anymore. It needs a surgery,” Sharif said.
Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the current fiscal year ending June, while average inflation is projected to stand at 24 percent, down from 29.2 percent in fiscal year 2023/2024.
Inflation soared to a record high of 38 percent last May.
Pakistan’s economic conditions improving, reforms and privatization on track — PM
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Pakistan’s economic conditions improving, reforms and privatization on track — PM
- Sharif says exports and remittances had shown a rise within one-and-a-half month of his government
- Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the current fiscal year ending June
International Cricket Council in talks to revive India-Pakistan T20 World Cup clash
- Pakistan face two-point loss and net run-rate hit if they forfeit Feb. 15 match
- ICC seeks dialogue after Pakistan boycott clash citing government directive
NEW DELHI, India: The International Cricket Council is in talks with the Pakistan Cricket Board to resolve the boycott of its T20 World Cup match against India on February 15, AFP learnt Saturday.
Any clash between arch-rivals India and Pakistan is one of the most lucrative in cricket, worth millions of dollars in broadcast, sponsor and advertising revenue.
But the fixture was thrown into doubt after Pakistan’s government ordered the team not to play the match in Colombo.
The Pakistan Cricket Board reached out to the ICC after a formal communication from the cricket’s world body, a source close to the developments told AFP.
The ICC was seeking a resolution through dialogue and not confrontation, the source added.
The 20-team tournament has been overshadowed by an acrimonious political build-up after Bangladesh, who refused to play in India citing security concerns, were replaced by Scotland.
As a protest, Pakistan refused to face co-hosts India in their Group A fixture.
Pakistan, who edged out Netherlands in the tournament opener on Saturday, will lose two points if they forfeit the match and also suffer a significant blow to their net run rate.
India skipper Suryakumar Yadav said this week that his team would travel to Colombo for the clash.
Pakistan and India have not played bilateral cricket for more than a decade, and meet only in global or regional tournaments.
