Pakistan to receive $4 billion from friendly countries to boost reserves

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ISLAMABAD: Two days after reaching an agreement with the international lender to revive a $6 billion loan facility to the cash-strapped country, Finance Minister Mifta Ismail says Pakistan will receive billions of dollars friendly countries this month. US dollars are expected.

Ismail cited the deficit in foreign exchange reserves highlighted by the International Monetary Fund (IMF) on Saturday. The minister said, “According to the IMF, there is a difference of $4 billion.

We expect to receive $1.2 billion in deferred oil payments from a friendly country. We estimate that one foreign government will invest between US$1.5 billion and US$2 billion in stocks, another friendly country can supply us with gas on deferred payment, and a third friendly country can deposit gas.

Regarding the revival of the $6 billion line of credit, Pakistan and the IMF reached a preliminary agreement at the service level on Thursday. The agreement paves the way for the release of the long-awaited $1.18 billion loan tranche. Who was arrested earlier this year. The board is also considering adding $1 billion to the agreed $6 billion program in 2019.

The country is currently facing a balance of payments crisis due to depleted reserves, rising current account deficit and depreciation of the rupee against the dollar.

Ismail claimed that without an agreement with the IMF, which should open additional channels of external financing, the nation could fall into default.

According to him, a total of $6 billion, including $3.5 billion from the Asian Development Bank and $2.5 billion from the World Bank, will also be provided to the nation by multilateral lenders during this period. exercise.

He said the Asian Infrastructure Investment Bank and the Islamic Development Bank are expected to raise between $400 million and $500 million.

He hopes that as soon as the agreement with the IMF is finalized, which is expected for the current month, the rupee will appreciate against the dollar. The government plans to cut energy imports to $2.7 billion this month from $3.7 billion last month. This move was expected to ease some pressure on the local currency.

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