The schedule of negotiations between Pakistan and the International Monetary Fund (IMF) on the new loan program has been fixed while the IMF mission will arrive in Pakistan on May 15.
According to the sources, following Pakistan has successfully completed the short-term loan program of 3 billion dollars, the schedule has been fixed between Pakistan and the International Monetary Fund (IMF) for negotiations on the new loan program.
According to the sources, the IMF mission will arrive in Pakistan on May 15 to discuss the new loan program. The parties will first have technical and then policy level talks. Pakistan has already applied to the IMF for the new loan program. has given
Sources in the Ministry of Finance say that the new loan program may be 6 to 8 billion dollars and the duration may be 3 years or more.
Pakistan has controlled inflation, government spending, reduced revolving credit, IMF
Sources say that it is inevitable to go to the new IMF program, increasing debt and debt repayment is a big challenge, it is necessary to stay in the IMF program till the increase in exports and local resource generation, to keep balance payments and reserves stable. It has been decided to go into the new program of the IMF.
According to the sources, the government will have to take more tough decisions to increase the prices of electricity and gas, increase the scope of taxes, and privatize loss-making institutions.
Former Punjab Finance Minister Dr. Ayesha Ghos Pasha says that at present every Pakistani owes two hundred and eighty eight thousand rupees, we as a nation have reduced our income and increased our expenses.
Addressing the ongoing Asma Jahangir conference in Lahore, Asha Ghos said that when payment is made in dollars, dollars cannot be printed, dollars have to be earned, we have taken twice as much debt in the last twelve years than in the past, we have borrowed from the IMF. 60 billion dollars to be paid over the next three years.
He said that the loan is taken to meet the budget deficit.
During the corona epidemic, unequal behavior was observed around the world, Prime Minister
He said that to increase the income, export should be increased, the responsibility of public relief is with the provincial governments, it is a shame that the world is moving forward and we are going backward.
Energy transition and climate change were the main topics discussed at the 2024 IMF-WBG Spring Meetings in Washington DC, United States last week.
At the High Level event Navigating the Mid-transition Period of The Low Carbon Shift initiated by the Brookings Institute, Minister of Finance Sri Mulyani Indrawati acknowledged that the process of a just and affordable energy transition is quite complex.
According to him, to achieve the energy transition, the role of the Ministry of Finance (Kemenkeu) is very important in formulating a financing policy framework, providing innovative instruments that can encourage mixed financing schemes, and building cooperation at regional and global levels.
“The Ministry of Finance needs to ensure a sound and prudent fiscal policy to obtain sources of financing for the energy transition,” said Sri Mulyani in an official statement, Tuesday (23/4).
In the policy framework, said Sri Mulyani, a sustainable financing taxonomy at the regional level such as ASEAN is needed which provides signals and allows the private sector to participate in energy transition investments.
He also emphasized the urgency of strengthening international cooperation, including following up on joint commitments such as through the Just Energy Transition Partnership – Indonesia (JETP Indonesia), which is an achievement of the Indonesian G20 Presidency.
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Discussions regarding the energy transition and climate change were also discussed at the Ministerial Meeting of the Coalition of Finance Ministers for Climate Actions (CFMCA). On that occasion, Sri Mulyani led a coalition with the Dutch Minister of Finance.
He conveyed several main issues, including the role of the Ministry of Finance in supporting the achievement of Nationally Determined Contribution (NDC) targets as well as efforts to mobilize global markets to finance the energy transition.
Sri Mulyani highlighted the importance of real involvement of Ministers of Finance from all over the world in the process of preparing and implementing each country’s NDC targets, especially in designing macroeconomic policy frameworks and fiscal policies that integrate climate action priorities.
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“Coordination between the Ministry of Finance and the Ministry of Forestry and Environment is also emphasized in the process of preparing and implementing the achievement of NDC targets,” he said.
In the series of 2024 IMF-WBG Spring Meetings in Washington DC, Minister of Finance Sri Mulyani Indrawati also attended the meeting of Ministers of Finance and Governors of the G-20 Central Bank (FMCBG).
At the G-20 Working Dinner, Sri Mulyani said that future climate planning must prioritize inclusiveness and justice in line with the G-20 Transitional Financial Framework.
In her intervention, Sri Mulyani assessed that the blended finance scheme was important for mobilizing funding sources and international support. He also emphasized the importance of developing carbon credit instruments as additional incentives that can attract more private sector participation to invest.
“Strengthening the role of Multilateral Development Banks (MDBs) is also needed, including in managing and reducing risks so that they are able to attract more financing from the private sector,” he stressed. (Z-11)
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The International Monetary Fund (IMF) is ringing a “bell” for international economies, because of the “hidden” debt that is accumulating, now posing a risk to their viability.
In general, the IMF has repeatedly emphasized the need to address record global public debt. However, in his latest report he points to another factor, saying, “hidden debt is borrowing for which a government is responsible, but which is not disclosed to its citizens or other creditors.”
While this debt, “often kept off the official government balance sheet, is very real, reaching 1 trillion. dollars worldwide according to some estimates.”
According to the report, “while these undisclosed liabilities are not large compared to the global public debt of more than $91 trillion. dollars, are a growing threat to low-income countries, which are already heavily indebted with annual refinancing needs that have tripled in recent years.”
As the Fund warns, “the problem is even more pressing amid higher interest rates and weaker economic growth. Accountability is also at risk without accurate information regarding the extent of borrowing, which increases the risk of corruption.”
The report expressed the belief that these potentially disastrous consequences can be avoided by strengthening national legal frameworks, as shown by the findings of a survey of 60 countries that examined vulnerabilities and loopholes in national laws that hinder transparency.
“Our new research shows that less than half of the countries surveyed have laws requiring debt management and financial reporting, while less than a quarter require the disclosure of loan-level information – key legal features to facilitate transparency.
“We also identified four notable vulnerabilities in national legislation that allow debt to be hidden: a narrow definition of public debt, insufficient legal requirements for their disclosure, confidentiality clauses in public debt contracts and ineffective supervision.”
The report states that, “around the world, legal requirements for debt disclosure are inadequate. A strong legal basis is vital to signal that there is a clear requirement to report on debt in a way that is both timely and relevant to policy analysis, transparency and accountability.”
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