KARACHI: The International Monetary Fund (IMF) said on Thursday it would wait for findings of its mission, currently holding talks in Islamabad, for further engagement with Pakistan, which seeks a fresh bailout from the global lender.
The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.
While Islamabad has said it expects a staff-level agreement by July, both Pakistani and IMF officials have refrained from commenting on the size of the program. The South Asian country is expected to seek around $7-8 billion bailout from the global lender.
An IMF team, led by Mission Chief Nathan Porter, this week met Pakistan Finance Minister Muhammad Aurangzeb, central bank governor, chairman of the Federal Board of Revenue and other officials in Islamabad to kickstart discussions on the country’s further engagement with the lender.
“Right now, a mission team led by Nathan Porter, our Mission Chief, is meeting with the authorities this week to discuss the next phase of our engagement with Pakistan,” IMF spokesperson Julie Kozack said at a press briefing on Thursday, when asked about the status of talks with Pakistan.
“Given that there is a mission on the ground, we will wait for them to complete their work and we will communicate the findings of the mission in due course.”
Pakistan narrowly averted a default last summer and its $350 billion economy has slightly stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high of 38 percent in May last year.
However, the South Asian country is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year, compared to negative growth last year.
Wall Street Bank Citi expects Pakistan to reach an agreement with the IMF of up to $8 billion program by end-July, and recommends going long on the country’s 2027 international bond.
“While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients.
“First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including Finance Minister Muhammad Aurangzeb.
Citi said it expected Pakistan’s international 2027 bond to offer a sweet spot to investors with sufficient liquidity and large upside as risks of default dissipate further.
IMF to wait for ‘findings’ of mission in Pakistan for further engagement with Islamabad — spokesperson
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IMF to wait for ‘findings’ of mission in Pakistan for further engagement with Islamabad — spokesperson
- An IMF team this week met top Pakistani officials in Islamabad to kickstart discussions on a fresh bailout
- The cash-strapped South Asian country is expected to seek around $7-8 billion bailout from the global lender
Pakistani president arrives in Iraq to deepen trade, energy cooperation
- Visit follows recent high-level contacts as Islamabad seeks to expand limited commercial ties with Baghdad
- Talks are expected to cover investment, manpower and facilitation of Pakistani pilgrims visiting holy sites in Iraq
ISLAMABAD: President Asif Ali Zardari arrived in Iraq on Saturday on an official visit aimed at expanding cooperation in trade, energy and investment, as Pakistan seeks to deepen ties with Baghdad after years of limited engagement.
Pakistan and Iraq established diplomatic relations in 1947 and have traditionally maintained cordial ties, though commercial links remain modest, with officials and business groups identifying scope for cooperation in construction services, pharmaceuticals, manpower and agricultural exports.
“President Asif Ali Zardari arrived in Baghdad on a four-day official visit to Iraq,” his office said in a post on X. “He was received by Culture Minister Dr. Ahmed Fakkak Al-Badrani. During the visit, meetings with senior Iraqi leadership are expected to advance cooperation and further strengthen Pakistan-Iraq relations.”
Zardari’s visit follows a series of recent high-level contacts between the two countries, reflecting efforts to broaden bilateral engagement beyond traditional diplomatic ties and explore collaboration across economic, political and people-to-people domains.
According to Pakistan’s foreign office, the president is expected to hold meetings with Iraq’s senior leadership to discuss cooperation in various areas such as trade and investment, energy, technology, education and manpower.
He is also expected to discuss regional and international issues with Iraqi officials.
Earlier this month, Pakistan’s Interior Minister Mohsin Naqvi met his Iraqi counterpart, Abdul Ameer Al-Shammari, on the sidelines of meetings in Brussels, where both sides agreed to enhance cooperation on security and facilitate travel for Pakistani Shia pilgrims to Najaf and Karbala.
The two officials discussed measures to ensure the smoother movement of these pilgrims and their compliance with visa regulations.
