Paving the way for a revival of the International Monetary Fund (IMF) program, the cash-strapped economy of Pakistan amid dwindling foreign exchange reserves would get additional $4 billion in financing assurances from friendly countries this week.
Finance Minister Miftah Ismail has also been quoted as saying that at least one country had given the assurance to the IMF.
According to another media report, China has rolled over a $2 billion loan to State Administration Foreign Exchange (SAFE) for a year.
Saudi Arabia is the first country that has agreed to give a commitment to the IMF, a media report has claimed.
A finance division officer has been quoted in the report saying that China has so far rolled over three SAFE deposits. The first deposit of $500 million was due on June 27, the second of $500 million matured on June 28 and the third, $1 billion, on July 23.
Therefore, including the previous $2.3 billion for commercial loans and now $2 billion in SAFE deposits, China’s rollover has reached a total of $4.3 billion.
Acting Governor of State Bank of Pakistan (SBP) Dr. Murtaza Syed has told that the discussions for securing assurances for $4 billion have been taking place. He told that discussions on several options with friendly countries including China were taking place.
Dr. Syed also said that the executive directors of the friendly countries just need to inform Pakistan’s Mission Chief that they were ready to give a certain amount for 12 months.
The IMF had linked the possibility of holding a planned tentative Executive Board meeting by end of August after confirmation of adequate financing assurances.
Pakistani authorities have been awaiting confirmation from friendly countries, especially Saudi Arabia, Qatar and UAE for materializing the gross external financing requirements of $35.9 billion for the current fiscal year.
UAE might show interest in getting shares of state-owned enterprises but it will take some time for materialization of such commercial transactions.
