Pakistan to get $7.6 billion under IMF programme: Tarin: Business Recorder

RIZWAN BHATTI

KARACHI (November 16 2008): Pakistan, after seven years' gap, has finally re-entered the International Monetary Fund (IMF) programme to receive $7.6 billion for replenishing its fast depleting reserves, after its friends, multilaterals and other donor agencies and international financial institutions showed reluctance to help it financially.The announcement to this effect was made by Shaukat Tarin, Advisor to Prime Minister on Finance, at a press conference, along with Dr Shamshad Akhtar, Governor, State Bank of Pakistan.Tarin said: "IMF has accepted Pakistan's formal request for funding, and an agreement with IFM has been reached on a rescue package to overcome the country's economic crisis." He said that Pakistan would receive $4.5 billion this year as part of the 23-month IMF deal, while the remaining amount would be received next year.

He said: "The interest rate on the IMF programme will be 3.1 to 3.5 percent, with some changes as per market conditions, which would be repaid during the fiscal years 2012 to 2016."However, he made it clear that this fund would not be used for any non-development expenditures and stock markets, saying that the loan would be utilised for maintaining the declining foreign reserves, besides overcoming its balance of payments crisis. He said that the IMF financing facility would give confidence not only to the markets and the investors but also to other IFIs and friends.

For more on this article, please click on the following link: Pakistan to get $7.6 billion under IMF programme: Tarin: Business Recorder