ISLAMABAD, June 22 (Alliance News): Finance Minister Muftah Ismail has said that Chinese consortium banks today signed an agreement to provide a loan of 2. 2.3 billion to Pakistan and increase the volume and duration of the IMF’s 6 6 billion expansion fund facility for 39 months. Will do
In a message on the social networking site Twitter, Finance Minister Muftah Ismail said, “The Chinese consortium of banks today signed a 3 2.3 billion loan facility agreement, which was signed by Pakistan earlier in the day.” ۔
“The money is expected in a few days. We are grateful to the Chinese government for facilitating this agreement,” he said.
Earlier this month, Muftah Ismail tweeted that the good news was that the terms and conditions of the 2. 2.3 billion loan from Chinese banks had been agreed.
He said that this amount would soon be received by Pakistan which would help in increasing the foreign exchange reserves.
Speaking at a press conference on June 2, Muftah Ismail said that China had repaid the loan on March 25, adding that Pakistan could not use the funds due to strict conditions.
He said that due to Foreign Minister Bilawal Bhutto Zardari’s visit and Prime Minister Shahbaz Sharif’s talks with his Chinese counterpart in this regard, China had increased the amount to 1.5% plus ‘Shanghai Interbank Offer Rate’ (Shaibor). Had agreed to rollover, before the rate was 2.5% plus Shibbor.
‘IMF hopes to extend loan period and amount’
Earlier, significant progress was made in issuing loan installments between Pakistan and the International Monetary Fund (IMF) and Islamabad expects the IMF to increase the size of the فن 6 billion expansion fund facility for 39 months and Will extend the period.
According to the foreign media, these statements from both sides have come at a time when Pakistan’s economy is on the brink of financial crisis, foreign exchange reserves are rapidly depleting and the Pakistani rupee is denominated in US dollars. The record lows are due to the fact that the loan installment was stopped by the IMF due to economic uncertainty.
It may be recalled that due to the depreciation of the rupee yesterday, the US dollar had continued to set new records and during the trading in the interbank market, the dollar had reached Rs 212 against the local currency.
Yesterday, the State Bank of Pakistan (SBP) had rejected reports of claims of depletion of foreign exchange reserves, stating that neither US dollars were depleting in domestic banks nor the central bank had stopped import payments. Are
Meanwhile, the rupee finally lost ground against the dollar today following the progress of the agreement reached between Pakistan and the IMF. An increase of Rs.
Esther Perez Ruiz, the IMF’s representative in Islamabad, told Reuters that the IMF staff and Pakistani officials were discussing policies to strengthen macroeconomic stability in the coming year and in the 2023 budget. Significant progress has been made.
Pakistan has this month presented a budget of Rs 9,500 billion for the fiscal year 2013-14, aimed at tightening financial stability to persuade the IMF to resume the much-needed loan program.
However, the IMF said that Pakistan needed to take further steps in its budget to meet the program’s objective.
Speaking to Reuters, Finance Minister Muftah Ismail said the two sides negotiated an agreement on Tuesday night and agreed on budget and fiscal measures, but still needed to agree on further meeting the fiscal targets. ۔
Finance Minister Muftah Ismail is not expected to have any hesitation in the rest of the negotiations with the IMF and is expected to present an initial memorandum on macroeconomic and fiscal targets and then a government agreement.
“I also hope that the agreement with the IMF will be extended for one year and the loan amount will also increase,” he said.
He said that the IMF has not yet implemented it but based on the negotiations that have taken place, it is hoped that it will happen.
It may be recalled that in April this year, when Finance Minister Muftah Ismail met with IMF officials in Washington, he had demanded an increase in the duration and value of the IMF program.
Pakistan had signed the IMF program in 2019 but to date only half of the funds have been released.
The last installment was released by the IMF in February and the next installment was due after review in March, but the government of former Prime Minister Imran Khan reduced fuel prices, which led to the suspension of fiscal targets and the IMF program. I was skeptical.