Pakistan seeks Saudi Arabia`s confirmation for funds to ink IMF deal


cash-out Pakistan Media reports said on Monday that the signing of a staff-level agreement (SLA) with the IMF sought Saudi Arabia’s approval to secure an additional $2 billion in deposits and a $950 million loan from the World Bank and AIIB. has been

Pakistan is eagerly awaiting $1.1 billion in funding from the International Monetary Fund (IMF), which the world lender is refusing until crucial decisions are taken and implemented by the government.

A senior government official working with the IMF said, ‘We are optimistic when asked about the possibility of securing deposits from Saudi Arabia and a loan from the World Bank,’ The News International newspaper reported.

A $950 million loan from the World Bank’s Institute for Stabilization of Economies (RISE-II) and the Asian Infrastructure Investment Bank (AIIB) will be sanctioned only if Pakistan receives an IMF bailout, Geo News reported.

Also read: 9 police personnel killed, 13 injured in explosion in Balochistan province of Pakistan

The cash-starved country is hoping to reach a much-needed deal with the global lender in the next few days, another top official said, declining to give a time frame for signing the fund agreement.

“The growing rivalry between China and the United States has made it difficult for Pakistan to negotiate with the IMF as they have to secure staff-level agreements (SLAs) in a delicate balancing act of managing the economy and diplomacy. . which suits the larger interests of Islamabad,” the report said.

Finance Minister Ishaq Dar said last week that Islamabad would receive $1.3 billion from its all-weather ally China to shore up its fast-dwindling foreign exchange reserves after Beijing transferred $700 million to the cash-strapped country in February. .

Pakistan is taking various steps at the behest of the Fund to release a $1.1 billion tranche under a $7 billion credit facility, including raising the GST rate from 17 to Rs 170 billion in additional tax revenue. Includes unveiling a mini-budget. percent to 18 percent.

The government has also increased electricity tariffs by Rs 7 per unit, imposed electricity surcharge of Rs 3.82 per unit, hiked gas tariffs, allowed large-scale adjustment in exchange rate, increased petroleum development levy. has done and increased the policy rates. The report said that 300 basis points, it has increased from 17 percent to 20 percent.

Pakistan and the IMF are holding virtual talks after 10 days of intensive talks between the two sides with an IMF delegation. Islamabad From January 31 to February 9, it failed to reach an agreement on a USD 1.1 billion tranche of funding from the global lender.

This story is sourced from third party syndicated feeds, agencies. MID-DAY DOES NOT ACCEPT ANY RESPONSIBILITY OR RESPONSIBILITY FOR ITS RELIABILITY, RELIABILITY, RELIABILITY AND DATA OF THE TEXT. Mid-day management/ reserves the sole right to change, delete or remove content at its sole discretion (without notice) for any reason.

Read original article here

Leave A Reply