Pakistan receives 3rd tranche of IMF loan: Xinhuanet

ISLAMABAD, Aug. 12 (Xinhua) -- Pakistan has received 1.2 billion U.S. dollars from the International Monetary Fund (IMF), the third tranche of an emergency loan facility agreed last year, the central bank said Wednesday.
"We have received 1.2 billion U.S. dollars from the IMF," Syed Wasimuddin, spokesman of the State Bank of Pakistan, was quoted assaying by the private TV channel GEO.
Last week, the IMF increased its loan to Pakistan to 11.3 billion U.S. dollars under an economic program first agreed in Nov.2008, to avert a balance of payments crisis.

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Pakistan to receive $2.3 billion by June: Tarin: PakWatan

ISLAMABAD, Pakistan will receive $2.3 billion from US and other donors before end of June, Advisor to Prime Minister on Finance Shaukat Tarin told a news conference here on Friday. Giving details of his meetings at Japan, Libya, US and with International Monetary Fund (IMF) at Dubai, he said.

The World Bank, Asian Development Bank, and US would release $600 million, $800 million and $900 million respectively, whereas International Development Bank (IDB) will give $23 million. He said that Pakistan's delegation had convinced the IMF during the review of March quarter in Dubai for allowing an increase in fiscal deficit by next fiscal year.

This fiscal space was required owing to decline in revenue on account of negative growth by large-scale manufacturing (LSM) and shrinking import as both contributed 60 percent and 40 percent respectively to the revenue. He said that the IMF allowed increment in fiscal deficit by 1.2 percent (from 3.4 to 4.6 percent in the next fiscal year) which would enable Pakistan to use Rs 180 billion as a short-term measure to increase industrial productivity.

He said that IMF was told that Friends of Pakistan (FoP) pledges would not cater Pakistan's urgent need of short-term growth and this could only be possible through increase in fiscal deficit. The advisor said that IMF was satisfied with performance of Pakistan economy and would soon release $840 million tranche.The board meeting in mid-June will recommend release of the tranche, he said, adding that Pakistan budget figures for next fiscal year were also discussed in the Dubai meeting.

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Government urged not to seek more loan from IMF: Online News

ISLAMABAD: Acting President, Islamabad Chamber of Commerce and Industry (ICCI), Shaban Khalid has urged the government not to seek more loan from IMF as it would have devastating effects on the economy in the long run.

Acting President ICCI was commenting on the statement of Advisor for Finance Mr. Shaukat Tareen that a Pakistani delegation was holding talks with IMF officials in Dubai for seeking 4.5 billion dollars new loan.

Pakistan’s external debt and liabilities have surged to $50.85 billion during the second quarter of current fiscal year from $45.50 billion and the main contributor to this rise in foreign debt was $3.1 billion obtained from International Monetary Fund in November 2008, Acting President ICCI observed.

He underlined that in coming days, the annual debt payments would further increase as a result of surge in external debt and liabilities which will put more burdens on our scant financial resources.

Shaban Khalid said our foreign debt and liabilities have risen by $15.01billion during last three and a half years from $35.834 billion at the end of June 2005 while additional IMF loan will further enhance our debt servicing obligations squeezing our resources for developmental projects.

He said we should learn from the history as the history of IMF relationship with countries shows that IMF loaning facilities always proved harmful to people as well as to business entities.

He said IMF prescriptions to borrowing countries like eliminating all subsidies on utilities and agriculture inputs, slashing government spending and raising taxes made conditions tougher for general public and businessmen.

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