Pakistan's future with IMF and CPEC (IMF 6th Review and Prime Minister Imran Khan visit to China
Channel: Asian Trade TV
Date: 2022-02-07

#IMF #Chinavisit #Investment #Financialreviews 
International Monetary Fund (IMF) has approved $ 1 Billion tranche after completing its 6th review. For approval of this latest assessment it took several months and so many harsh unpopular measures by the government to satisfy IMF conditions. Now it paved the way to get more foreign exchange from issuance of bonds and some grants from other international financial institutions. With this positive news and inflow of dollars, Rupee gained its value in open market. IMF further believes that market driven exchange rate and good macro economic policies will address external account issues in long run. Governor State Bank (SBP) stated that Pakistan is now on such growth track which is according to economic principles and is sustainable however claimed Inflation as a global challenge. He further added that Tax to GDP ratio need to be increased and for such reason several measures are undertaken. Government approved Rs.4 Billion for Federal board of Revenue (FBR) system upgradation and asked Exchange Companies (EC), largest source of Foreign exchange (FE), to integrate with FBR where EC to surrender 100% home remittance against Re.1 per USD benefit. Prime Minister Imran Khan in the meanwhile went to China on inaugural session of Winter Olympics where Russian President was also there with a planned meet up. Such move of Pakistan has given clear stance of our foreign policy where western world have diplomatically boycotted winter Olympics being held in China. PM also assured China about his government’s affirmation to pace up the projects under China Pakistan Economic Corridor (CPEC) and tried to renegotiate tariffs related to CPEC power projects together with trade agreements which previously were not well articulated. 
It is not the first time Pakistan went to IMF but its 22nd program. Initially Pakistan through standby agreement knocked IMF’s door first time in 22nd September 1959 however first borrowing was made on 16th March 1966 with $38 Million USD. The longer period when Pakistan stayed away from IMF was post 911 of Musharaf era when probably due to part of war on terror as front line state, inflow of US dollars and larger Foreign Direct Investments into Telecom sector stabilized the external account of Pakistan for some 7 years.  However due to restricting exchange rate biggest ever borrowing agreement with IMF was made in 30th September 2011 with an agreed amount of $ 7.2 Billion USD with the drawn amount of $ 4.9 Billion followed by Extended Funded Facility of $ 6 Billion USD agreed in July 2019 in tranches with some harsh conditions of time bound assessments and to release facility amount in tranches after completing these assessments religiously. Due to COVID-19 outbreak the release of tranches were stopped however IMF released $ 1.4 Billion USD in April 2020 to support Pakistan which came under supporting loans to virus affected economies. Hafeez Sheikh the then Finance Minister successfully completed 3rd, 4th & 5th tranche and replaced by Shoukat Tarin who initially was not in favour of raising power tariffs & other harsh measures. However due to rising external account concerns Pakistan re-entered into IMF program and took some real harsh measures by passing mini budget to withdraw Rs.378Billion tax exemptions and approving SBP autonomy Bill. Now the tranche is released and Pakistan is looking forward to sizeable gain in PKR value in short term unless within the time range it may rationalize real effective exchange rate by controlling over inflation and reducing trade deficit. In this regard good news is from Textile industry where the sector has abled to grab regional export orders.


https://asiantrade.tv/
https://www.facebook.com/www.asiantrade.tv/
https://www.youtube.com/channel/UCYP4sMvea2Uv2dspEz1t2eA
https://www.instagram.com/asiantradetv.live
 
Satalite ,Digital, Cable.Web.YouTube

Pakistan & Asian 1st world Trade Channel live #Entertainment #Lifestyle #Cepac #Trade#Real Estate #world Trade#CEO's , IT News , Gwadar, Expo,Sports Stars updates Live .
Email asiantradetv.live@gmail.com
Contact For Advertising  WhattApp (pak) + 92 323 2970009 
Dubai  00971 52 932 3225