ADB refutes Hafeez Sheikh & Khusro Bakhtyar Claim of $3.4 Billion Dollar Loan

Dunkin Donut

Senator (1k+ posts)
https://twitter.com/x/status/1139890263676129280
ISLAMABAD: In a rare rebuff, the Asian Development Bank (ADB) on Sunday distanced itself from a Pakistan government announcement about provision of $3.4 billion budgetary support by the Manila-based lending agency.

On Saturday, two senior members of the government had announced that the ADB would provide $3.4bn budgetary support to Pakistan to help the latter implement its economic reforms and stabilisation.

The announcement was first made by Planning and Development Minister Makhdum Khusro Bakhtyar at a news conference and then reconfirmed by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh through his official Twitter account after a meeting with two senior officials of the ADB.

Dr Shaikh had said the ADB would provide $3.4bn in budgetary support to Pakistan after he had a meeting with Werner Liepach, the ADB director general. He said the meeting had agreed on an ADB programme. “The ADB will provide $3.4bn in budgetary support to help with reforms and stabilisation of the economy.”

Says volume of financial assistance, once finalised, is contingent upon its board approval

The adviser had also said the ADB would “release $2.2bn this fiscal year, starting in the first quarter of FY2019-20. This will help the reserve position and the external account,” he said, adding: “This support is in addition to the project portfolio with an estimated disbursement of up to $1bn in FY2019-20. I appreciate the commitment of the ADB to our economic reform”.

However, the ADB’s country office in Islamabad took a rare step on a public holiday to issue a statement distancing itself from the government’s pronouncement. The ADB has seldom come out on its own to comment on a government statement.
In its statement, the ADB confirmed the meetings with the government members and discussions on loans. “These discussions are ongoing and details of the plans as well as the volume of ADB’s financial support, once finalised, will be contingent upon the approval of ADB management and its Board of Directors,” said ADB’s Country Director for Pakistan Xiaohong Yang in the statement.

Informed sources said the ADB management was embarrassed by the government’s premature announcement about the ongoing discussions on loan programme which the bank had not even taken up with its board of directors and had to take an extraordinary step to downplay the discussions.

The sources said the ADB delegation which had met Dr Shaikh was also not authorised at its own to finalise any loan programme that normally involved long-drawn discussions. Moreover, the ADB had also linked its loans for budgetary support to the approval of $6bn bailout package from the International Monetary Fund for a 39-month reforms programme.

This was also evident from a statement by ADB President Takehiko Nakao early last month linking the $1bn budgetary support to Pakistan with the IMF programme. Speaking at a news conference at the 52nd Annual Meetings of Board of Governors in Fiji, the ADB president had said his bank had received a request from Pakistan for a budget support of about $1bn in addition to its IMF programme and normal large operations of the ADB for years.

“We are waiting for a good outcome of discussions on an IMF programme and if the IMF programme is there we would be happy to extend the budget support and other policy loans quite soon,” Mr Nakao said. He had expressed concern over Pakistan’s repeated requests to the IMF for bailouts.

In its statement on Sunday, the ADB said it was “discussing with the GoP [government of Pakistan] plans to provide budget support programmes, results-based and project assistance to help improve Pakistan’s competitiveness and fiscal sustainability”. It said the bank could help the government manage external debt and balance of payments and maintain the momentum of macroeconomic and structural reforms to support economic stability and expansion. “ADB is pleased with the progress of discussions with the government of Pakistan on these issues,” concluded the statement.

The sources said the statements by the cabinet members focused on the exchange rate as the rupee has been losing its value against the dollar for more than a year with no let-up even after the announcement of the federal budget last week.

Finance adviser says agreement now awaits a formal approval to be given by the IMF board of directors in Washington.

https://www.dawn.com/news/1488675
 

Nightcrawl

Chief Minister (5k+ posts)
https://twitter.com/x/status/1139890263676129280
ISLAMABAD: In a rare rebuff, the Asian Development Bank (ADB) on Sunday distanced itself from a Pakistan government announcement about provision of $3.4 billion budgetary support by the Manila-based lending agency.

On Saturday, two senior members of the government had announced that the ADB would provide $3.4bn budgetary support to Pakistan to help the latter implement its economic reforms and stabilisation.

The announcement was first made by Planning and Development Minister Makhdum Khusro Bakhtyar at a news conference and then reconfirmed by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh through his official Twitter account after a meeting with two senior officials of the ADB.

Dr Shaikh had said the ADB would provide $3.4bn in budgetary support to Pakistan after he had a meeting with Werner Liepach, the ADB director general. He said the meeting had agreed on an ADB programme. “The ADB will provide $3.4bn in budgetary support to help with reforms and stabilisation of the economy.”



The adviser had also said the ADB would “release $2.2bn this fiscal year, starting in the first quarter of FY2019-20. This will help the reserve position and the external account,” he said, adding: “This support is in addition to the project portfolio with an estimated disbursement of up to $1bn in FY2019-20. I appreciate the commitment of the ADB to our economic reform”.

However, the ADB’s country office in Islamabad took a rare step on a public holiday to issue a statement distancing itself from the government’s pronouncement. The ADB has seldom come out on its own to comment on a government statement.
In its statement, the ADB confirmed the meetings with the government members and discussions on loans. “These discussions are ongoing and details of the plans as well as the volume of ADB’s financial support, once finalised, will be contingent upon the approval of ADB management and its Board of Directors,” said ADB’s Country Director for Pakistan Xiaohong Yang in the statement.

Informed sources said the ADB management was embarrassed by the government’s premature announcement about the ongoing discussions on loan programme which the bank had not even taken up with its board of directors and had to take an extraordinary step to downplay the discussions.

The sources said the ADB delegation which had met Dr Shaikh was also not authorised at its own to finalise any loan programme that normally involved long-drawn discussions. Moreover, the ADB had also linked its loans for budgetary support to the approval of $6bn bailout package from the International Monetary Fund for a 39-month reforms programme.

This was also evident from a statement by ADB President Takehiko Nakao early last month linking the $1bn budgetary support to Pakistan with the IMF programme. Speaking at a news conference at the 52nd Annual Meetings of Board of Governors in Fiji, the ADB president had said his bank had received a request from Pakistan for a budget support of about $1bn in addition to its IMF programme and normal large operations of the ADB for years.

“We are waiting for a good outcome of discussions on an IMF programme and if the IMF programme is there we would be happy to extend the budget support and other policy loans quite soon,” Mr Nakao said. He had expressed concern over Pakistan’s repeated requests to the IMF for bailouts.

In its statement on Sunday, the ADB said it was “discussing with the GoP [government of Pakistan] plans to provide budget support programmes, results-based and project assistance to help improve Pakistan’s competitiveness and fiscal sustainability”. It said the bank could help the government manage external debt and balance of payments and maintain the momentum of macroeconomic and structural reforms to support economic stability and expansion. “ADB is pleased with the progress of discussions with the government of Pakistan on these issues,” concluded the statement.

The sources said the statements by the cabinet members focused on the exchange rate as the rupee has been losing its value against the dollar for more than a year with no let-up even after the announcement of the federal budget last week.

Finance adviser says agreement now awaits a formal approval to be given by the IMF board of directors in Washington.

https://www.dawn.com/news/1488675
Don't be too happy indiot we'll soon get our economy stabilized than We're coming for you nigg.. az ??
 

Onlypakistan

Chief Minister (5k+ posts)
DONKEY DONUT PAKISTANI AWAM JAN CHUKI HA K YE SAB KUCH NOORA,ZARDARI KA KIYA BHUGT RA HAEY HAEN,PASSEY TO IN K BACHON K PICHWADY SAE BI NIKALAEN GAE.
 

Lord Botta

Minister (2k+ posts)
اس حکومت کو اتنی ساری ذلتیں اٹھانے پر پر ذلتیں اٹھانےکا نوبل پرائز ملنا چاہیے ، کوئی دن نہیں جاتا کہ یہ حکومت ذلیل نہ ہو ، روزانہ یہ حکومت اپنی ذلت کا سامان کرتی ہے، اب تو واقعی دل میں حول اٹھتا ہے کہ پاکستان کن اناڑیوں کے ہاتھوں میں چلا گیا ہے اور انجام ِ گلستاں کیا ہوگا
 

Dunkin Donut

Senator (1k+ posts)
اس حکومت کو اتنی ساری ذلتیں اٹھانے پر پر ذلتیں اٹھانےکا نوبل پرائز ملنا چاہیے ، کوئی دن نہیں جاتا کہ یہ حکومت ذلیل نہ ہو ، روزانہ یہ حکومت اپنی ذلت کا سامان کرتی ہے، اب تو واقعی دل میں حول اٹھتا ہے کہ پاکستان کن اناڑیوں کے ہاتھوں میں چلا گیا ہے اور انجام ِ گلستاں کیا ہوگا

And a Dickheahd ... oops sorry Yoothead ...
just called me a Indian because I posted this News ?
 

Will_Bite

Prime Minister (20k+ posts)
ADB did well. Im tired of these ministers speaking before something is confirmed. This is the time when I miss Asad Umar the most. He was the most straightforwrad and honest guy we could have hoped for.
For months, they held off on announcing IMF deal because it cant be approved unless finalzied by the board. Dont they know the same applies to ADB and other lenders as well?
 

mhafeez

Chief Minister (5k+ posts)
اے ڈی بی پاکستان آفس نے دونوں کو کہا ہے کہ انی دیو اے مذاق اے۔
 

mhafeez

Chief Minister (5k+ posts)
And a Dickheahd ... oops sorry Yoothead ...
just called me a Indian because I posted this News ?

اگر آپ پی ٹی آئ کے خلاف نیوز لگائیں گے تو نہ صرف آپ غدار قرار پائیں گے بلکہ کافر بھی قرار پا سکتے ہیں
 

Dunkin Donut

Senator (1k+ posts)
اگر آپ پی ٹی آئ کے خلاف نیوز لگائیں گے تو نہ صرف آپ غدار قرار پائیں گے بلکہ کافر بھی قرار پا سکتے ہیں


Cocaine pi kay tou hakoomat kartay hain yay
Ham tou bass dhuan dikhatay hain inko
 

aneeskhan

Prime Minister (20k+ posts)
Mohsin%2BNaqvi.jpg
 

RajaRawal111

Prime Minister (20k+ posts)
1993990-adbxx-1560744081-471-640x480.jpg


The Asian Development Bank (ADB) said on Sunday that it had not finalised the size of financial support to Pakistan, watering down the government’s claim that the Manila-based lender would provide $3.4 billion to the country in budgetary support.

The country office of the ADB had to issue a rare rebuke on a holiday after two cabinet ministers claimed that the lender would extend $3.4 billion to Pakistan.

The government is desperately looking for foreign loans, as it has so far failed to take measures that could have ensured an increase in non-debt creating inflows.

“These discussions are ongoing and the details of the plans as well as the volume of the ADB’s financial support, once finalised, will be contingent upon the approval of the ADB management and its board of directors,” Xiaohong Yang, the ADB’s country director for Pakistan, said in a statement.

A day earlier, Federal Minister for Planning and Development Khusro Bakhtiar claimed that Pakistan and the ADB had signed a loan agreement of $3.4 billion. He went on to say that the Ministry of Finance had informed Prime Minister Imran Khan about the development.


After Bakhtiar’s claim, Adviser to the PM on Finance Dr Abdul Hafeez Shaikh tweeted that the ADB would give $3.4 billion to the country in budgetary support.

“I had a meeting with ADB Director General Werner Liepach today [Saturday] to agree on the ADB programme. The ADB will provide $3.4 billion in budgetary support to help with reforms and stabilisation of the economy,” the finance adviser said.

He further said a sum of $2.2 billion would be released in this fiscal year, starting from the first quarter.

But the ADB has clarified that it was discussing plans with the Pakistani government to provide budget support programmes and project assistance to help improve the country’s competitiveness and fiscal sustainability.

The lender added that it could help the government in managing its external debt and the balance of payments and maintain the momentum of macroeconomic and structural reforms to support economic stability and expansion.

“The ADB is pleased with the progress of discussions with the Pakistani government on these issues,” it said.

However, the Manila-based lender’s local office distanced itself from the government’s claim of $3.4 billion in budgetary support.

Sources said that neither the World Bank nor the ADB would disburse any budgetary support until the International Monetary Fund (IMF) approved the $6 billion bailout package that was likely to happen on July 3.

Budgetary support from multilateral lenders is very important for Pakistan to remain afloat in the next fiscal year.

The official foreign currency reserves and the IMF loan will not be sufficient to meet nearly $20 billion to $22 billion total external financing requirements in the fiscal year 2019-20, including $10.4 billion debt repayments.

Of the $6 billion, the IMF will only release $2 billion in the first year. However, Islamabad will also have to return $750 million to the IMF on account of previous loans, leaving it with $1.25 billion of the lender’s injection in the first year of the three-year programme.

The Economic Affairs Division is hopeful that the ADB will provide $1 billion in the form of a rescue loan in the second quarter of the next fiscal year. Unlike the normal budgetary assistance, Pakistan has for the first time applied for a Special-Policy Based Lending (SPBL) instrument, which is extended to prevent countries from defaulting on international payments obligations.

There is a possibility that the ADB’s Board of Directors may approve the crisis loan either in the last week of October or in early November, but it has not been confirmed whether the Manila-based lender will approve the $1 billion rescue loan or reduce the amount.

The government is also expecting $500 million budgetary support from the ADB in August on account of the Trade and Competitiveness Programme.

Another $400 million for energy sector reforms and $300 million for capital market reforms are also expected in the next fiscal year.

The government made the claim about the $3.4 billion ADB budgetary support on the basis of these assumptions, according to the Ministry of Finance sources. The ADB’s head office is yet to approve the programme.

The sources also told The Express Tribune that ADB Director General for Middle East and Central Asia Department Werner Liepach came to Pakistan without any major agenda on the table.

 

Dunkin Donut

Senator (1k+ posts)
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