IMF Will Give $15 Billion Loan To Pakistan
IMF Will Give $15 Billion Loan To Pakistan: A potential International Monetary Fund (IMF) programme for Pakistan could be valued at $15 billion, the Institute of International Finance (IIF) said in a report.
According to the report, IIF expects an agreement on a three-year IMF programme of $15 billion by end of this year.
The rupee’s 24 percent depreciation since end of 2017 may have eliminated most of the overvaluation, the institute stated.
Fiscal adjustment, monetary tightening, and a greater exchange rate flexibility will be integral to the new programme, it said.
Pakistan formally requested IMF for financial assistance at a meeting of the IMF-World Bank in Bali, Indonesia earlier this week. IMF chief Christine Lagarde said in a statement that she met Finance Minister Asad Umar, State Bank Governor Tariq Bajwa and other members of Pakistan’s delegation.
“During the meeting, they requested financial assistance from the IMF to help address Pakistan’s economic challenges,” Lagarde said.
The Finance Minister, Asad Umar has said the government would not sign an agreement with the IMF if it proffered some tough and unbearable conditions for the loan.
Umar was addressing a press conference here at the Q Block (Ministry of Finance) on Saturday. He said in the past Pakistan signed loan agreements with the IMF on 18 times but this time a storm in the tea cup is being created from every nook and corner of the country.
It seems if the PTI government has carried out any outlandish job. He said in the current financial circumstances, the bailout package from IMF is very essential because the level of foreign reserves have plunged to Rs.8.40 billion, the trade deficit has swelled due to price hike of natural gas and electricity, imports have enhanced due to the ban imposed on Iran and above all the fiscal deficit is running at $2 billion per month.
Finance Minister Asad Umar said the decision to opt for going to IMF even by the previous government was correct as Ishaq Dar had no choice.
Rejecting the US narrative about Pakistan’s request for fresh bailout package from the IMF mainly because of CPEC repayments, Asad Umar said Pakistan would disclose all the details of the debt to the IMF under debt sustainability indicators including $900 million repayment of loans to China over the next three years.
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