ISLAMABAD: Pakistan’s Senate Chairman Yusuf Raza Gilani has arrived in Moscow on an official visit to explore new avenues of collaboration between Pakistan and Russia in key sectors, a Pakistani government statement said on Sunday.
Pakistan and Russia, once Cold War rivals, have strengthened ties in recent years through increased dialogue and trade. In 2023, Islamabad began purchasing discounted Russian crude oil banned from European markets due to Russia’s war in Ukraine, and also received its first shipment of liquefied petroleum gas from Moscow.
In Dec., Russia and Pakistan held intergovernmental meetings in Moscow and discussed cooperation on oil and gas offshore exploration and refining. Russian Ambassador to Pakistan Albert P. Khorev this year announced cooperation with Pakistan in energy and industrial sectors, including the modernization of a state-owned steel mill.
Gilani is visiting Moscow at the invitation of Valentina Matviyenko, chairperson of the Federation Council of the Russian Federation, and is scheduled to hold high-level meetings in the Russian capital, according to Pakistan’s Press Information Department (PID).
“Discussions will focus on enhancing parliamentary exchanges, boosting trade and economic cooperation, and exploring collaboration in key sectors such as energy, regional connectivity, and security,” the statement said.
The visit comes as Pakistan is striving to draw overseas investment amid a gradually healing macroeconomic environment after a prolonged downturn that forced Islamabad to seek external financing from friendly nations and multiple loan programs with the International Monetary Fund (IMF).
In an interview, Gilani recalled that Speaker Matviyenko had previously visited Pakistan and addressed parliament, which contributed significantly to fostering bilateral understanding, according to the PID.
He highlighted Pakistan’s successful foreign policy initiatives under the current government, which have enhanced the country’s global standing, and reaffirmed Islamabad’s commitment to deepening strategic ties with Russia.
“The visit marks a significant milestone in advancing bilateral engagement and reflects the two nations’ shared interest in broad-based and forward-looking cooperation across multiple sectors,” it said.
Pakistan Senate chief in Moscow to strengthen Pakistan-Russia collaboration in key sectors
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Pakistan Senate chief in Moscow to strengthen Pakistan-Russia collaboration in key sectors
- The visit comes as Pakistan is gradually recovering from a prolonged macroeconomic crisis that pushed it to the brink of a default in 2023
- Discussions will focus on enhancing trade and economic cooperation, and exploring avenues in energy, regional connectivity and security sectors
IMF board to approve Pakistan reviews today ‘if all goes well,’ say officials
- IMF’s executive board is scheduled to meet today to discuss the disbursement of $1.2 billion
- Economists say the money will boost Pakistan’s forex reserves, send positive signals to investors
KARACHI: The International Monetary Fund’s (IMF) executive board is scheduled to meet today, Monday, to approve the release of about $1.2 billion for Pakistan under the lender’s two loan facilities, said IMF officials who requested not to be named.
The IMF officials confirmed the executive board was going to decide on the Fund’s second review under the $7 billion Extended Fund Facility (EFF) and first review under the $1.4 billion Resilience and Sustainability Facility (RSF), a financing tool that provides long-term, low-cost loans to help countries address climate risks.
“The board meeting will be taking place as planned,” an IMF official told Arab News.
“The board is on today yes as per the calendar,” said another.
A well-placed official at Pakistan’s finance ministry also confirmed the board meeting was scheduled today to discuss the next tranche for Pakistan.
The IMF executive board’s meeting comes nearly two months after a staff-level agreement (SLA) was signed between the two sides in October.
Procedurally, the SLAs are subject to approval by the executive board, though it is largely viewed as a formality.
“If all goes well, the reviews should pass,” said the second IMF official.
On approval, Pakistan will have access to about $1 billion under the EFF and about $200 million under the RSF, the IMF said in a statement in October after the SLA.
The fresh transfer will bring total disbursements under the two arrangements to about $3.3 billion, it added.
Experts see smooth sailing for Pakistan in terms of the passing of the two reviews, saying the IMF disbursements will help the cash-strapped nation to strengthen its balance of payments position.
Samiullah Tariq, group head of research at Pakistan Kuwait Investment Company Limited, said the IMF board’s approval will show that Pakistan’s economy is on the right path.
“It obviously will help strengthen [the country’s] external sector, the balance of payments,” he told Arab News.
Until recently, Pakistan grappled with a macroeconomic crisis that drained its financial resources and triggered a balance of payments crisis.
Pakistan has reported financial gains since 2022, recording current account surpluses and taming inflation that touched unprecedented levels in mid-2023.
Economists also viewed the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders.
Saudi Arabia, through the Saudi Fund for Development, last week extended the term of its $3 billion deposit for another year to help Pakistan boost its foreign exchange reserves, which stood at $14.5 billion as of November 28, according to State Bank of Pakistan statements.
“In our view this [IMF tranche] will be approved,” said Shankar Talreja, head of research at Karachi-based brokerage Topline Securities Limited.
“This will help strengthen reserves and will eventually help a rating upgrade going forward,” he said.
The IMF board’s nod, Talreja said, would also send a signal to the international and local investors regarding the continuation of the reform agenda by Pakistan’s government.
