ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Thursday matters relating to a $7 billion International Monetary Fund (IMF) bailout loan for Pakistan had been ‘settled amicably’ and would be finalized this month when the lender’s executive board met on September 25.
An IMF announcement on Thursday that it would meet at the end of the month to discuss the loan allayed fears of a prolonged delay in the much-needed funds for Pakistan. The agreement for the 37-month program was signed in July and has been pending board approval since.
Pakistani Prime Minister Shehbaz Sharif said earlier on Thursday that “friendly countries” had played a major role in helping meet requirements placed before Islamabad by the IMF, which included arranging additional external financing and debt rollovers.
Islamabad has for years relied on China, Saudi Arabia and the United Arab Emirates for financial assistance to meet external financing requirements and avoid sovereign default, which it came close to last summer.
“All matters with the IMF have been settled amicably,” Aurangzeb said in a statement. “These matters will be finalized in the meeting of the IMF board this month.”
Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves to critical levels, currency devaluation and record inflation.
On Thursday, Pakistan’s sovereign dollar bonds rallied, with the 2031 maturity trading 1 cent higher to bid at 79.93 cents on the dollar, according to Tradeweb data.
Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958. The latest economic crisis has been the most prolonged, pushing the country to the brink of a sovereign default last summer before it was saved by a last-minute short-term IMF bailout.
The conditions of the fresh bailout have become tougher such as higher taxes on farm incomes and electricity prices. The bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country.
“We are very happy that we can say now that the Board meeting is scheduled to take place on September 25th,” an IMF spokeswoman said on Thursday. “And this is following Pakistan obtaining necessary financing assurances from its development partners.
“Consistent policy making has supported economic stability in Pakistan, most notably a resumption of growth, a significant disinflation, and a significant increase in the country’s international reserves.”
Pakistan says all matters relating to bailout program ‘settled amicably’ with IMF
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Pakistan says all matters relating to bailout program ‘settled amicably’ with IMF
- IMF announced it would meet on Sept. 25 to discuss the loan allayed fears of a prolonged delay in receiving funds
- PM Sharif says “friendly countries” had played major role in helping meet requirements placed before Islamabad by IMF
Pakistan steps up skills training push for overseas workers during minister’s Dubai visit
- UAE is home to over 1.5 million Pakistani expatriates, one of the largest overseas Pakistani communities around the world
- Overseas Pakistanis ministry facilitating establishment of reputable training institutions in high employability sectors, says minister
ISLAMABAD: Federal Minister for Overseas Pakistanis Chaudhry Salik Hussain this week stressed the importance of pre-departure training and soft skills for citizens seeking jobs in foreign countries during his visit to the Pakistani consulate in Dubai, the Press Information Department (PID) said.
The UAE is also home to over 1.5 million Pakistani expatriates, one of the largest overseas Pakistani communities in the world, who contribute billions of dollars annually in remittances. The Gulf state is the second-largest source of remittances for Pakistan after Saudi Arabia, making it a crucial source of foreign exchange for the national economy.
Hussain met officers of the Pakistan Consulate in Dubai on Monday during which he discussed with them issues concerning the welfare and facilitation of Pakistani nationals in the UAE.
“He particularly emphasized the importance of pre-departure training and the imparting of soft skills to better prepare Pakistani workers for overseas job markets,” the PID said on Monday.
“He noted that the ministry is facilitating the establishment of credible and reputable training institutions to provide skills training in sectors with high employability.”
During the visit, Hussain also toured various sections of the Pakistani consulate and reviewed the delivery of services such as passport issuance, national identity cards, community welfare and other public facilitation services, the PID said.
Pakistan and the UAE maintain close political and economic relations, with Abu Dhabi playing a pivotal role in supporting Islamabad during periods of financial stress through deposits, oil facilities and investment commitments over the years.
The UAE is Pakistan’s third-largest trading partner, after China and the United States, and a key destination for Pakistani exports, particularly food, textiles and construction services.
