IMF Resumes Extended Fund Facility for Pakistan; $500M Tranche on the Cards ISLAMABAD to Be Met
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Wednesday, 17 February, 2021 I 4 Rajab, 1442 I Rs 15.00 I Vol XI No 230 I 12 Pages I Karachi Edition IMF resuMes extended Fund FacIlIty For PakIstan; $500M tranche on the cards ISLAMABAD to be met. However, the pandemic dis - is projected to expand by 1.5pc in FY2021 STAFF REPORT rupted these improvements and required from the -0.4pc in FY2020. Still, with the a shift in authorities’ priorities towards sav - Covid-19 second wave still unfolding N International Monetary Fund ing lives and supporting households and around the world, the outlook is subject to (IMF) team, led by Ernesto businesses. To a large extent, the authori - a high level of uncertainty and downside Ramirez Rigo, concluded virtual ties’ response was enabled by the fiscal risks.” discussions with the Pakistani au - and monetary policy gains attained in the He continued, “The Covid-19 shock ECP duty-bound thorities and reached a staff- first nine months of FY2020. Aside from has required a careful recalibration of the alevel agreement on the second to fifth health containment measures, this in - macroeconomic policy mix, the reforms reviews of the authorities’ reform pro - cluded a temporary fiscal stimulus, a large calendar, and the EFF review schedule. to ensure transparent gramme supported by the IMF’s 39- expansion of the social safety net, mone - Against this background, the authorities month Extended Fund Facility (EFF) tary policy support and targeted financial have formulated a package of measures arrangement for the amount of SDR 4,268 initiatives. These were supported by size - that strikes an appropriate balance be - polls: CJP million (about $6 billion). able emergency financing from the inter - tween supporting the economy, ensuring “This agreement is subject to the ap - national community, including from the debt sustainability, and advancing struc - g proval of the IMF’s Executive Board. The re - Fund’s Rapid Financing Instrument (RFI).” tural reforms. The fiscal strategy remains CEC opposes use of views’ completion would release around He noted that as a result of the author - anchored by the sustainable primary $500 million,” a statement issued by the ities’ actions, the Covid-19 first wave deficit of FY2021 budget and allows for identifiable ballot papers IMF on Tuesday read. started to abate over the 2020 summer higher-than-expected Covid-related and At the end of the discussions, Ramirez and the impact on the economy was sig - social spending to minimize the short-term in electoral process Rigo stated, “The policies and reforms im - nificantly reduced. “External current ac - impact on growth and the most vulnera - plemented by Pakistani authorities prior to count improved due to ble. The targets are supported by careful ISLAMABAD ter”, the CJP said. “The election Covid-19 shock had started to reduce stronger-than-expected remittances, im - spending management and revenue STAFF REPORT commissioner should tell us how economic imbalances and set the condi - port compression, and a mild export re - measures, including reforms of corporate he plans to stop corrupt prac - tions for improving economic perform - covery. High-frequency economic data taxation to make it fairer and more trans - Hearing the presidential refer - tices in the Senate elections,” ance. Most of the targets under the also started to point to a recovery. Consid - parent. The power sector’s strategy aims at ence on the Senate election on asked the chief justice. EFF-supported programme were on track ering these improvements, the economy financial viability, through management Tuesday, the Supreme Court ex - Justice Ijaz ul Ahsan observed improvements, cost reductions, and ad - pressed dissatisfaction over the that the Election Act does not justments in tariffs and subsidies calibrated report submitted by the Election mention corrupt practices specif - to attenuate social and sectoral impacts. Commission of Pakistan (ECP) ically. “The word ‘guard’ has been “The State Bank of Pakistan (SBP)’s and observed that it is ECP’s con - used for political interference be - monetary and exchange rate policies stitutional duty to ensure transpar - fore and after elections, as well have served Pakistan well and were criti - ent polls. as corrupt practices,” noted the cal in helping to navigate the Covid-19 The chief election commis - judge. Justice Ahsan said that shock. The strengthened international re - sioner (CEC) and the ECP mem - guarding against corrupt prac - serves’ position since the start of the pro - bers appeared before the court tices in this context would mean gram—with gross reserves almost in the hearing. that precautionary measures doubling to $13 billion until January 2021 A five-member bench of the ought to be taken before the and net international reserves (NIR) in - apex court, headed by Chief Jus - elections so that they are held in creasing by over $9 billion until Decem - tice of Pakistan (CJP) Gulzar a transparent manner. ber 2020—and the shock absorption Ahmed, was hearing the presiden - “Money and political interfer - displayed by the market-based ex - tial reference seeking the court’s ence are used in elections,” change rate, allowed the SBP’s to pre- advice over the open ballot in the noted Justice Ahsan. “The elec - emptively proceed to a large easing of upcoming Senate election. tion commission should tell us monetary policy, and a sizeable expan - “The Election Commission how it plans on stopping such sion of refinancing facilities. should not keep silence over the practices.” matter and submit its report after CONTINUED ON PAGE 05 reviewing all aspects of the mat - CONTINUED ON PAGE 05 coronavIrus In PPP moves SC against MORE INSIDE PakIstan PTI to emerge Senate open vote reference victorious in CONFIRMED CASES: ISLAMABAD Senate polls: PM INP STORY ON BACK PAGE 564,824 The Pakistan Peoples Party (PPP) on Tuesday filed a petition with the Supreme Court (SC) against Pakistan Navy’s Aman the presidential reference seek - ing the apex court’s opinion on 2021 exercise LAST UPDATED AT 10:25 AM ON FEBRUARY 16, 2021 the open vote for the Upper House in the forthcoming elec - concludes with DAY'S DEATH TOLL: NEW CASES: tions. The petition requested the ‘graceful’ international apex court to return the refer - 47 958 ence as the Senate elections fleet review are to be held under Article 226 STORY ON BACK PAGE of the Constitution. RECOVERED: DEATHS: “A proposal [bill] of 26th Con - stitutional Amendment has been Karachi police arrest pending in the National Assem - 527,061 12,380 bly,” the petition said. PTI leader after ECP According to the petition, the government has changed its orders removal from SINDH: PUNJAB: stance after failing in its attempt to amend the Constitution. “The constituency government has filed the presi - jurisdiction. sirable to obtain the opinion of 254,016 164,696 dential reference [in the SC] to The reference sought an in - the Supreme Court on any ques - STORY ON PAGE 02 achieve its political objectives,” terpretation of Article 226 that tion of law which he considers of KP: BALOCHISTAN: the petition insisted. stated that all elections under public importance, he may refer US firm discovers The petition was moved by the Constitution, other than those the question to the Supreme PPP leader Farhatullah Babar. of the prime minister and chief Court for consideration. Indian spyware 69,885 18,946 The reference was filed in the ministers, shall be held through a “The Supreme Court shall court by Attorney General of Pak - secret ballot. consider a question so referred targeting Pakistan AJK/GB: ISLAMABAD: istan (AGP) Khalid Javed Khan, Article 186 of the Constitution and report its opinion on the under Article 186 of the Constitu - states that “If, at any time, the question to the President,” the ar - army 9,532/4,941 42,808 tion, invoking the court’s advisory President considers that it is de - ticle further stated. STORY ON BACK PAGE Wednesday, 17 February, 2021 02 NEWS KARACHI KaraCHI polICe arrest ptI leader after eCp orders removal from ConstItuenCy KARACHI an apparent defeat of the PPP. He added that PPP is threatened by the city of Karachi enter the constituency and that too with was the best forum to discuss or make a StAff RePoRt the negative political training of PPP was and PTI, Sherzaman added, claiming that the armed persons. He has been reported to have reform on the electoral process to ensure evident from the actions of Jiyalas. PPP has looted the entire province. He entered with armed persons in polling more transparency in the system. ARACHI police on Tuesday Bilal said they would not tolerate accused the Sindh chief minister of being stations 20 and 22 of Bhitai Abad. He assured that people would reject the arrested Pakistan Tehreek-e-Insaf bullying from PPP in the by-elections. incompetent and alleged that Murad Ali “Voters are being taken to the PTI office anti-state narrative of Pakistan Democratic (PTI) leader and Sindh Assembly He said the PPP `Jiyalas’ were resorting Shah had rigged PS-88 through situated in the area and being given parchis Movement (PDM) in the forthcoming Senate Opposition Leader Haleem Adil to unrest for rigging in the by-elections, superintendents (SSPs) and station house on the promise of being paid Rs12,000 under elections while PTI would clinch majority Sheikh on charges of violating the adding that every PTI worker stood by Adil. officers (SHOs). the Ehsaas programme if they vote for the seats in that regards. KElection Commission of Pakistan’s (ECP) Similarly, PTI Karachi President and He added that Haleem Adil Sheikh PTI candidate,” read the letter by Taj Haider, BY-POLLS HELD: Polling took place on rules during a by-election to a provincial Member Sindh Assembly Khurram Sher speaks against corruption so he is being the in charge of the PPP’s Central Election Tuesday in the by-elections for vacant Sindh assembly seat in Malir.