BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Pakistan has secured a $7 billion loan agreement with the International Monetary Fund, aiming to stabilize its economy and address outstanding debts. This 37-month arrangement focuses on enhancing fiscal and monetary policy and implementing key economic reforms.
IMF Approves $7 Billion Loan to Pakistan to Enhance Economic Stability and Implement Reforms
The International Monetary Fund announced on July 12 that Pakistan had reached a staff-level agreement for a new $7 billion loan arrangement. This is the country's most recent request for assistance from the global lender in the form of large bailouts to support its economy and address its debts.
The IMF authorized the immediate distribution of the final $1.1 billion tranche of a $3 billion bailout to Pakistan earlier this year. According to Finance Minister Muhammad Aurangzeb, the government intends to secure a long-term loan to stabilize the economy following the conclusion of the bailout package.
According to the IMF (via ABC News), the new loan agreement will be in effect for 37 months. It is intended to enhance fiscal and monetary policy and reforms to broaden the tax base, improve the management of state-owned enterprises, strengthen competition, secure a level playing field for investment, enhance human capital, and scale up social protection through increased generosity and coverage in a significant welfare program.
“The program aims to capitalize on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers, and remove economic distortions to spur private sector-led growth,” said Nathan Porter, IMF’s mission chief to Pakistan.
The IMF's executive council must approve the agreement.
Pakistan's New Budget Aims for 40% Tax Revenue Increase, Higher Government Salaries, and IMF Loan
Last month, the inaugural budget of Pakistan's new coalition government was presented to parliament. The budget included an ambitious tax collection objective and pledged to increase the salaries of government employees by up to 25%.
According to the finance minister, Pakistan aims to collect 13 trillion rupees ($44 billion) in taxes, a 40% increase from the current fiscal year figure.
Aurangzeb also stated that the government would guarantee an increase in taxpayers. The number of individuals in Pakistan who pay taxes is estimated to be around 5 million.
According to analysts, the new budget, which amounts to approximately $68 billion, represents an increase from $50 billion in the previous fiscal year. The objective is to qualify for a long-term IMF loan of $6 billion to $8 billion to stabilize the economy. In 2023, Pakistan nearly defaulted on its foreign debt obligations.
