ISLAMABAD: A delegation led by Finance Minister Miftah Ismail is scheduled to fly today to Washington DC for negotiations with the International Monetary Funds on a bailout package, sources informed Bol News on Tuesday.
The decisive rounds of negotiations will start from tomorrow (Wednesday) and it is expected to last till May 25. The federal government is in discussions on presenting the next budget for 2022-23 on June 10.
Economic issues will come under consideration in the seventh economic review talks between the IMF and Pakistan. It is expected that the government has to gradually decrease fuel subsidies to avail the relief package of as many as $96 million in its next episode.
The Pakistan stock market took a dip on Monday as the government decided to continue the subsidy on fuel and electricity prices which increased concerns over the deal with the International Monetary Fund (IMF).
Read more: Pakistan bourse closes in red over IMF deal ambiguity
An analyst at Pearl Securities said that a big drop was expected as the government decided to continue subsidies on fuel and electric prices.
“This move has elevated concerns over the scheduled resumption of the IMF programme which would delay funds to shore up the State Bank of Pakistan’s (SBP) depleting foreign exchange reserves hovering at $10 billion.
Moreover, the rupee is continuously under pressure touching historic highs. Likewise, the international oil prices are staying above $100/barrels,” he added.
Ahsan Mehanti at Arif Habib Corp said that the stocks fell across the board as investors weighed the plunge in rupee and record surge in Treasury bill yields near to 15.26 per cent.
“A slump in the global equities, uncertainty over the terms for the resumption of the IMF programme and delays over the approval of sought Saudi aid package played a catalyst role in the bearish close,” he added.
The Pakistan Stock Exchange KSE-100 shares Index shed 1.88 per cent, or 819.14 points, to close at 42,667.32 points. The KSE-30 shares Index shed 1.99 per cent, or 329.05 points, to close at 16,212.92 points.
