Pakistan expects $5b from IFIs

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Friday, August 16, 2013 - Islamabad : The cash-starved government of Pakistan is expecting over $5 billion from International Financial Institutes during on-going fiscal year 2013-14 that would help in repaying loans to IMF and in building country’s depleting foreign exchange reserves.

 

Loan agreement between Pakistan and International Monetary Fund (IMF) has paved way for other financial institutions like Islamic Development Bank (IDB), Asian Development Bank (ADB) and World Bank (WB) to provide loans to Islamabad.

 

“Pakistan is likely to receive over $5 billion from different IFIs during the current financial year, which is desperately needed for country”, said a finance ministry official.

 

Pakistan’s foreign exchange reserves currently stood at $10.23 billion wherein central bank held reserves are only $5.14 billion, enough to cover import bill of one and half month only.

 

Meanwhile, the government would repay over $3 billion to International Monetary Fund during the current financial year 2013-14 that would put additional pressure on country’s foreign exchange reserves. Sources were of the view that Pakistan is likely to get $3 billion from International Monetary Fund during the current financial year, after getting approval from International Monetary Fund’s executive board on September 4 2013. Pakistan and IMF in July 2013 agreed for $5.3 billion package and Islamabad requested to increase the package to $7.2 billion, which would be decided by the Fund’s executive board in next month (September).




Courtesy:   Pak Observer


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