Pakistan says the IMF's $ 6 billion loan would get another $ 38 billion from other
ISLAMABAD: The International Monetary Fund is IMF ) The decision to provide a $ 6 billion rescue package to Pakistan has improved the country's reputation with cash shortages and could attract $ 38 billion more from other lenders, the prime minister Imran Khan The finance adviser has claimed.
The statement by Dr Abdul Hafeez Shaikh came a day after the International Monetary Fund formally approved the US $6 billion loan to Pakistan, which is facing "significant" economic challenges on the back of "large" fiscal and financial needs and "weak and unbalanced" growth.
Shaikh said that the IMF decision improved the country's standing and other institutions had also started extending their financial support, Dawn news reported.
He said that the Asian Development Bank would disburse approximately US $ 2.1 billion of the US $ 3.4 billion agreed to Pakistan this year and the world Bank It had also agreed to provide additional assistance only for budget support.
Discussions with the world Bank were in progress for assistance only for the purpose of government expenditure, Shaikh said.
Giving a breakdown of US $38 billion expected financial support from lenders other than the IMF , Shaikh said that about US $8.7 billion funds had been lined up against project loans, US $4.2 billion for programme loans, about US $14 billion of rollover loans and up to US $8 billion in commercial loans. He did not go into the details and sources of these loans.
In response to a question, the prime minister's adviser said that Pakistan's outflows for debt service amounted to US $ 9.5 billion during the last fiscal year and were projected at US $ 11.8 billion during the fiscal year in progress.
He said that there had been different exaggerations and unfair comments about the IMF conditions.
Shaikh said that there was also no condition or the IMF demand in the programme about the privatisation as it would become clear from the documents to be released by the global lender.
Instead, Pakistan must develop a comprehensive program to decide which entities that generate losses could be improved and managed in the public sector, which the private sector can better manage and that require liquidation.
He said that the government had given independence to the State Bank of Pakistan so that it emerged as a strong institution like others in the world.
Pakistan approached the IMF in August 2018 for a bailout package after the Imran Khan government took over.
On Wednesday, the IMF approved a 39-month US $6 billion loan for Pakistan with tough conditions to address its balance of payment crisis and help the country's ailing economy return to "sustainable growth".
The US $ 6 billion includes an immediate disbursement of US $ 1 billion to help Pakistan cope with its balance of payments crisis.
The latest deal is the 22nd bailout package since Pakistan became a member of the IMF in 1950.
Pakistan has received billions in financial aid packages from friendly countries such as China, Saudi Arabia and the United Arab Emirates during the current fiscal year.