IMF projects 14pc inflation, 2.75pc GDP growth

The IMF noted although the major export plants had escaped physical damage, cotton and textiles exports might be lower. — File Photo

WASHINGTON: The International Monetary Fund has projected that during 2010-11 Pakistan will have an average inflation rate of 14 per cent and a real GDP growth of 2.75 per cent. 

“The balance of payments is expected to weaken in 2010-11, due in part to the impact of the floods,” said an IMF statement issued in Washington on Tuesday.

“Imports will rise as food and other basic goods will need to be sourced from abroad and imports of capital equipment for reconstruction will increase,” the statement said.

China, India, Brazil become ‘major players’ at IMF

IMF chief Dominique Strauss-Kahn. –Photo by AFP

WASHINGTON: China and India received long-sought recognition Friday as global economic heavyweights as the International Monetary Fund gave them and other emerging powers a significantly larger role in stabilizing the world economy.

IMF chief Dominique Strauss-Kahn announced planned reforms to the fund’s voting power after a meeting of the organization’s board, declaring that no longer would emerging economies feel that they are ‘‘invited to the table, but minor players.’’

IMF loan tranche uncertainty drags KSE lower

 KARACHI: The Karachi share market dropped on Wednesday owing to uncertainty about the release of the next tranche of the International Monetary Fund (IMF) loan to the country, dealers said.

“Negative activity was witnessed because of concerns about the country’s fiscal position as government officials met an IMF team to discuss the release of the next tranche,” said Ahsan Mehanti, a director at Arif Habib Investments.

The KSE 100-share index lost 64.22 points, or 0.60 percent, to close at 10,617.65 points. The KSE 30-share index shed 91.30 points, or 0.89 percent, to end at 10,168.59 points. Shares of 375 companies were traded, out of which 153 advanced, 203 declined, while 19 remained unchanged.

Crucial talks with IMF, WB put off for three days

The talks have been suspended so that the economic managers could seek President Zardari's intervention in taking difficult economic decisions.—Reuters photo

ISLAMABAD: The crucial talks between the government and twin missions of the International Monetary Fund and World Bank remained suspended for a day on Tuesday and then put off for another two days to seek top level political intervention in difficult economic decisions.

Informed sources told Dawn that the two sides were originally scheduled to conclude on Tuesday, or latest by Wednesday, their negotiations on macroeconomic framework and on a strategy for economic stabilisation and containing the rising fiscal deficit.

Hafeez says IMF assures next tranche on May 14

WASHINGTON: Finance Adviser Dr Abdul Hafeez Sheikh has said that an arrangement with the International Monetary Fund compels Islamabad to increase power tariff by additional six per cent but the government is trying not to pass on the entire burden on consumers.

Dr Hafeez explained at a news conference here on Tuesday that the agreement required Pakistan to increase power tariff in three instalments of six, 12 and six per cent, respectively.

IMF & Pakistan: Some key issues & problems

New VAT is one of the main issues of contention
KARACHI: The International Monetary Fund’s (IMF) board will likely to meet in mid-May to consider the next tranche of Pakistan’s $11.3 billion loan.

The IMF’s board had originally been scheduled to meet at the end of March to approve the next portion of the emergency package, which was first agreed in November 2008.

However, differences over several issues, such as an increase in the power tariff and implementation of a value-added tax (VAT), have delayed approval of the tranche.

IMF backs stronger Chinese currency as Asia powers ahead

WASHINGTON: A stronger yuan is “essential” for both the Chinese and world economies, the IMF said on Wednesday as it projected breakneck growth for China and a powerful post-crisis bounce across Asia.

The International Monetary Fund said the Chinese yuan was “substantially” undervalued, heaping more pressure on Beijing to allow the currency to strengthen to help rebalance skewed world trade.

Pakistan seeks two waivers from IMF

ISLAMABAD: Pledging to completely eliminate subsidies on electricity by August this year, Pakistan has sought at least two waivers from the International Monetary Fund for slippages in important macroeconomic targets in the first nine months of the current fiscal year and requested modifications in future programme milestones.

“We request waivers of non-observance for the end-March quantitative performance criteria on the overall budget deficit (excluding grants) and net government borrowing from the State Bank,” says a letter of intent (LoI) signed by Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh and SBP Governor Syed Ali Raza.

IMF wants Pakistan to peg fiscal deficit at 5.1pc

KARACHI: The International Monetary Fund (IMF), likely to approve $1.2 billion loan for Pakistan during a board meeting scheduled to be held on May 3, wants Islamabad to peg the fiscal deficit at 5.1 per cent of the GDP, an official of the Finance Ministry said.

Govt seeks relaxation in IMF

ISLAMABAD: The government has requested for modification in the performance criteria for budget deficit to increase the cumulative end-quarter ceiling of Rs22 billion to allow space for urgent security outlays and avoid undue cuts in other priority spending, The News learnt on Wednesday.

The Finance Ministry submitted the Letter of Intent (LoI) and the fourth Supplementary Memorandum of Economic and Financial Policies (SMEFP) to the IMF office in Islamabad after the recently-held discussions on the fourth review under the Standby Arrangement (SBA).

IMF assures Pakistan to get next tranche in May

ISLAMABAD: The International Monetary Fund (IMF) has assured Pakistan it will approve the release of the next tranche of an $11.3 billion loan at a board meeting on May 3, the Pakistani prime minister's office said on Wednesday.

Prime Minister Yusuf Raza Gilani said in talks with the IMF in Washington that his government was trying to broaden Pakistan's tax base and keep the budget deficit “close to” 5.1 per cent of gross domestic product, according to a statement from his office.

IMF expresses satisfaction over VAT bill

ISLAMABAD: The International Monetary Fund expressed satisfaction over the Value Added Tax legislation in Pakistan, but expressed concern over the rising budget deficit.
           
In a statement, IMF’s Deputy Director, External Relations Department, Gerry Rice expressed hope that the VAT laws would be passed in all four provincial assemblies in Pakistan.

IMF Board set to meet in coming weeks on Pakistan

WASHINGTON: The International Monetary Fund’s Executive Board will meet before mid-April to review Pakistan’s loan after a meeting this month was postponed to enable a value-added tax law to be submitted to provincial assemblies, the IMF said on Wednesday.

The IMF meeting is to approve the fifth tranche of a loan to Pakistan, which

turned to the IMF for an emergency package of $7.6 billion in November 2008 to avert a balance-of-payments crisis and shore up reserves.

Differences over VAT jeopardises IMF plan

ISLAMABAD: The International Monetary Fund (IMF) and the government have developed differences over the proposed value added tax (VAT), raising fears not only of the fiscal deficit surging during the current and next year but also about the completion of a $11.3 billion standby arrangement programme.
According to sources, the IMF estimates that the VAT will increase the country’s revenue by 0.8 per cent of the GDP next year, but the finance ministry fears that the collection will drop by Rs35-45 billion because tax collection authorities are not fully prepared to take full benefit of the new measures.

Govt, global donars to discuss power tariff hike on Monday

If IMF tranche not okayed by April 12, it could be delayed further

ISLAMABAD: Representatives of multilateral creditors and Pakistani authorities are scheduled to meet on Monday, Mar 29, to decide whether to increase electricity tariff by six per cent from April 1, or defer it to avoid popular backlash, a senior official of the finance ministry said on Saturday.

The meeting had been called after an unexpected delay in approval of the IMF’s fifth tranche worth $1.2 billion for Pakistan, the official said.

IMF defers fifth tranche of $1.2bn

ISLAMABAD: The International Monetary Fund (IMF) has deferred the disbursement of the fifth tranche of $1.2 billion to Pakistan for an indefinite period as the Executive Board meeting scheduled to take place on Wednesday has been postponed.

The bottleneck in the way of postponed Executive Board meeting to consider Pakistan’s request under the Stand-by Arrangement (SBA) is the presentation of draft law on Value-Added Tax to the Punjab assembly. The government has already submitted the draft law in the National Assembly and the provincial assemblies of Sindh, NWFP and Balochistan.

Greece must seek IMF rescue: Merkel

 










 Diplomats have been working furiously for days to address conditions imposed by Berlin for any deal

BRUSSELS: German Chancellor Angela Merkel on Thursday demanded ahead of a EU summit that Greece seek rescue finance from the International Monetary Fund (IMF).

The euro currency slid to a 10 month low against the dollar in the hours before European leaders started the summit dominated by frenzied efforts to save Greece from defaulting on its 300 billion euro (407 billion dollar) debt.

IMF approves release of $1.2 billion

WASHINGTON: The International Monetary Fund approved a $1.2 billion tranche for Pakistan on Wednesday after concluding a review of the country’s economic performance.

“It is of course important that Pakistan has full support from donors because they’ve had shocks to their economy over the past year,” Carline Atkinson, IMF’s director for external affairs, told an earlier briefing.

Pakistan set to get $1.2 billion from IMF

ISLAMABAD: Pakistan is set to get the fourth disbursement of $1.2 billion from the International Monetary Fund (IMF) under the Stand-by Arrangement (SBA) later this month.

Sources in the finance ministry told Dawn on Tuesday that documentation was complete for the IMF Executive Board to take up Pakistan’s case on Dec 23. This would be the board’s last major meeting this year.