Category: Economy

Economy

China rolls over $2.4 billion loan for two years for Pakistan

About a week ago Prime Minister of Pakistan, Mian Shehbaz Sharif had announced that china have rolled over $600 million loan for Pakistan, so Pakistan do not have to make immediate payments in these testing times. Recently another development came through, as the Exim Bank of China have rolled over the overall payments of $2.4 billion USD. These were the principal loan amounts which Pakistan had to pay this year, however they have been rolled over for two years by Chinese Exim bank. Pakistan is required to make the interest payments in these upcoming two years. The current finance minister, Ishaq Dar have recently announced the details of this development in his tweet on social media platform twitter, telling that […]

Economy

IMF agrees to lend Pakistan $3 billion in a staff level agreement

Pakistan have reached an understanding with International Monetary Fund (IMF) in a staff level agreement. In the agreement it have been agreed that IMF will lend Pakistan with the remaining $3 billion USD in three upcoming installments. This is part of IMF bailout plan and related agreement which was reached in 2019. IMF have already payed Pakistan $6 billion USD, however, disbursement of remaining $3 billion were delayed due to disagreement between IMF and Govt of Pakistan on certain terms of the bailout plan. Now according to the latest news, IMF have agreed to resume the disbursement of funds to govt of Pakistan. However, as this have been decided in a staff level agreement, a confirmation and approval from the […]

Economy

PSX goes up by 1062 points in a day after dollar price cap removal

Currently Pakistan is in talks with International Monetary Fund (IMF) for continuation and revival of a previously on going bail out loan program. However, for this time IMF had about four conditions for Pakistan to meet, before the loan program go further. As the Pakistan’s economy is not doing well and foreign reserves are dropping, so Pakistani government had recently decided to accept the conditions of IMF. Along with increasing the gas & electricity prices and increasing taxes, one of IMF condition demanded Pakistan to not control the Rupee and US Dollar exchange rate artificially. As US Dollar was artificially being kept below 225 in interbank and open markets while in black market it was being sold as high as […]

Economy

Remittances down and imports curbed in Pakistan

In December 2022 total inflow of remittances through the official channels stood at $2 billion, which is 19 percent decline from last month. This is due to the disparity between the official price of US Dollar (the interbank rate) and the price in open market. As in open market you can trade your dollars in much more money, people are adopting to use the unofficial channels more to send in their remittances. This not only take away the government’s opportunity to charge tax on money sent in but also the inflow is not properly added to foreign exchange available to state bank and other government owned bodies. The disparity between the official interbank rate and the open market is due […]

Economy

Ishaq Dar lands back in Pakistan and Pakistani Rupee gains value

Yesterday, on Nur Khan air base Ishaq Dar landed back in country after five years. He came back in Pakistan after five years. He came back in plane of Prime Minister Shahbaz Sharif after it was decided in London by Sharifs that current finance minister Miftah Ismail will be replace with Ishaq Dar. As country passes through unprecedented circumstances, some created by unprecedented flood and some through the political instability created after alliance called Pakistan Democratic Movement (PDM) took over the government forcefully, with allegedly some foreign forces involved. Many people are hoping that Dar will be able to at least do better than our former finance minister. As, he was widely criticized by both senior leadership of Pakistan Muslim […]