International Monetary Fund (IMF) on Tuesday Conditioned Approval of US$1.2 billion loan tranche in end of August with Pakistan ability obtain “adequate assurances” from friendly countries for more loans to fill the financing gap, exposing Islamabad to claims from its bilateral creditors.
In a brief statement Permanent Representative of The IMF, Esther Perez, stated that “with growth in PDL (Petroleum Development Fee) on July 31, g. last preliminary action for combined 7th and 8th review was met”.
Merger will pave the way way for release of almost $1.2 billion tranche, as against in original schedule of 2 billion dollars.
But Esther stayed short of providing a confirmed board the date of the meeting, because of which the IMF sees a gap against Gross External Financing of Pakistan requirements.
” board meeting pre-scheduled for end of August, as soon as adequate financial guarantees are confirmed,” said Esther Perez.
The IMF made a surprise announcement two days after the ministry of Finance and State Bank of Pakistan claimed that they met financing requirements for in current fiscal year.
Main of Army Staff General Qamar Jawed Bajwa also turned to the US for help Islamabad achieves speedy dispersal of 1.2 billion dollars. Ministry of Foreign Affairs on Friday confirmed that there were contacts between General Qamar Javed Bajwa and the US Deputy Secretary of State. of Wendy Sherman’s fortune.
Looks like there are contacts. also did not help Pakistan get early confirmation board meeting date. Islamabad will have to convince three main bilateral creditors directly assure the IMF that they are ready to be chipped in $4 billion in funding.
Although the IMF has not publicly disclosed the quant. of financing gap, Finance Minister Miftah Ismail said. last month when the gap was $4 billion. against proposed funding requirements of over 35 billion dollars.
However, Miftah Ismail said on Tuesday that “there is no shortage of funding and the $4 billion will effectively run out.” up in increase in foreign exchange reserves by over $6 billion in this fiscal year”.
minister It was also given the plan for organizing these funds from Saudi Arabia, the United Arab Emirates and Qatar in shape of oil and gas on deferred payment, state of sale assets as well as shares of registered companies and borrowings against quota of Saudi Arabia.
As long as it makes no sense progress was made who spent back IMF from the official announcement on August 24 board meeting date.
Hamad Obeid Ibrahim Salim Al Zaabi, Ambassador of UAE, called on Miftah Ismail on Tuesday.
“Finance minister briefed the UAE Ambassador on potential investment areas in which the UAE could invest and also assured the ambassador of UAE of more relief and support”, the ministry said in a statement. of Finance.
ambassador of UAE also showed great interest in expansion and strengthening of bilateral relations between the two countries especially on economic fronts, added.
Pakistan is trying to get between $2 billion and $2.5 billion from the UAE through an emergency sale. of two LNG-fuelled power plants and unloading rates in his blue chips.
Sunday Ministry of Finance and SBP in the joint statement said that this fiscal year, funding needs stem from current account deficit of about $10 billion and principal repayment on external debt of about 24 billion dollars. To strengthen Pakistan’s foreign exchange reserves, it is important for Pakistan is a bit overfunded compared to these needs, this is added.
“As a result of an extra pillow of $4 billion planned over in next 12 months. This funding commitment is made through a series of of different channels, including from friendly countries what helped pakistan in similar way first of IMF program in June 2019,” the joint statement said.
Reduction economy It has caused rupee lost its value by 30% or 54 rupees per dollar since Shehbaz Sharif came in power in April also exposing inexperience of Sharif administration.
The finance minister said last week that the IMF set preconditions of OK of in new budgetmemorandum of understanding with provinces to create cash surpluses, higher oil taxes, higher electricity prices in July, August and October and higher interest rates. He said these conditions were met.
Both ministries of Finance and SBP hoped that, since all previous actions for completing in review Was met and “a formal meeting of the Council for the payment next tranche of $1.2 billion expected. in pair of weeks.”
The IMF statement refutes this impression. of security board meeting in two weeks.
Despite the delay in revival of program, federal government now hopes the pressure on The value of the rupee fell after a decline of almost 38%. in import invoice in July over previous month. it added payments in foreign currency in July were significantly lower than in June. Payouts were a steady $6.1 billion. in July compared to $7.9 billion in June is added.