-IMF’s executive board is scheduled to meet on 29th
-Pakistan has commitments of $38bn, we are over financed,’ says acting SBP governor
DM Monitoring
KARACHI: Pakistan is likely to receive a $1.17 billion loan tranche from the International Monetary Fund (IMF) within six days after the Executive Board’s approval, State Bank of Pakistan Acting Governor Murtaza Syed told Bloomberg TV.
The executive board of the Washington-based lender is scheduled to meet on August 29 (Monday); accordingly, analysts expect the Fund to give its final approval as Pakistan has met all prior conditions necessary to revive the stalled loan programme.
The acting governor said that the country’s forex reserves will shore up to $16 billion by the end of the current fiscal year 2022-23 which dropped to $8 billion due to delay in the revival of the IMF agreement and external flows.
“Pakistan has commitments of $38 billion so we are over financed,” he said, adding that approvals of bilateral help will materialise soon, amounting to $4 billion, while the current account deficit is expected to clock in at around 3% of the gross domestic product. Pakistan has approached China, Saudi Arabia, Qatar and UAE to meet the financing gap on the IMF’s demand.
“Qatar will provide a bilateral assistance worth $2 billion,” Syed was quoted as saying while briefing analysts after the announcement of the monetary policy on Monday.
Besides Qatar, Syed said, Saudi Arabia would finance $1 billion through supplying petroleum products on deferred payments over the next 12 months.
The United Arab Emirates (UAE) would invest $1 billion in Pakistan, Syed was quoted by an expert who attended the briefing.
Earlier, the federal government planned to give substantial shareholding to the UAE in the Pakistan International Airlines (PIA) and its Roosevelt Hotel in New York.
While announcing the latest monetary policy, the central bank left the key policy rate unchanged at 15% for the next seven weeks.
“Pakistan has successfully secured an additional $4 billion from friendly countries over and above its external financing needs in FY23,” the monetary policy statement (MPS) said.
“As a result, FX (foreign exchange) reserves will be further augmented through the course of the year, helping to reduce external vulnerability.”
Islamabad reached the staff-level agreement with the Washington-based lender in July but the board meeting could not be held despite Pakistan’s appeal to expedite the process.
