The International Monetary Fund’s (IMF) nine-month $3 billion Stand-By Agreement (SBA), to be approved by the executive board hopefully this week, offered Pakistan a desired breather and allayed the fear of default in a troubled economy amid political and judicial turmoil. Businesses heaved a sigh of relief, and the market reacted positively. Should distressed commoners also rejoice the SBA?
In June, Pakistan used China’s currency to pay Russia for a 100,000-tonne discounted crude oil purchase. That was a first: Islamabad has never used yuan before to settle cross-border trade transactions with a third country, although it has invoiced part of its Chinese imports in Renminbi (RMB) for the last several years. The development signifies Pakistan’s increasing reliance on Beijing as it
Something odd is happening in the oil markets. Efforts by major oil producers to prop up oil prices above the current levels seem faltering — at least for the time being. Both Riyadh and Moscow, the oil heavyweights, need higher oil prices. Saudi Arabia needs Brent crude to trade at around $81 a barrel to balance its budget, the International Monetary Fund estimates. Moscow, too, needs addition
The nine-month $3 billion Stand-By Arrangement (SBA) with the International Monetary Fund is generally seen as a breather and bridge to a subsequent broad-based and longer reform programme to enforce financial discipline and reduce debt default risks. It has brought much-needed relief to the policymakers and capital market but does not enthusiastically raise hope of an early economic recovery.
Imagine it’s early 2022. You are scrolling through LinkedIn and looking at all the gurus talking about the unstoppable rise of Pakistan’s startup scene. After all, the country had raised $365 million in investment during 2021, almost 6x the value of the previous year. The optimism is contagious, even if the posts are cringe and cliched. Fast forward to now, and all of those self-styled gurus ha