Pakistan may get extra $4.5 bn from IMF: The News

By Mehtab Haider

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have discussed options for additional funding of $4.5 billion for Islamabad and the final decision will be taken in review talks in Dubai scheduled from May 4 to 11, a senior official confirmed to The News on Wednesday.

The official, who was part of Pakistani delegation during the recent annual spring meeting of the IMF and the World Bank, told this scribe on late Tuesday night that Pakistan and the IMF had discussed options to jack up additional funding for Islamabad up to $12.1 billion from the existing $7.6 billion under a 23-month Standby Arrangement (SBA) program. When contacted Additional Finance Secretary, Asif Bajwa, who is also official spokesman, on Wednesday confirmed that the government had not yet formally approached the IMF on the issue of additional funding from the Fund.

An IMF official also confirmed that the government had not yet officially requested the Fund for additional funding. However, the sources said the IMF funding is meant for Balance of Payment (BoP) support and if the government decides to get additional funds, it will help the State Bank of Pakistan (SBP) to improve its foreign currency reserves position. “The government will put additional funding into the foreign currency reserves which will help to improve confidence of investors for having increased foreign currency reserves,” added the official.

Though the Friends of Democratic Pakistan (FoDP) had pledged $5.28 billion during Tokyo’s conference translating pledges into a reality was altogether a different matter. If these pledges are actualised, then Pakistan’s budgetary gap for the next two years can be filled.

For more on this article, please click on the following link: Pakistan may get extra $4.5 bn from IMF: The News