xiaahmad
Chief Minister (5k+ posts)
If Effects:
Dollar Mehnga will cross 110 mark soon
Bijli Mehnga
Fuel Mehnga
Saab Cheezain Mehngi
More Loan Burden
More Intrest Burden
[h=1]IMF likely to okay $6.6b loan today[/h]
SLAMABAD: The Executive Board of International Monetary Fund (IMF) would meet today (Wednesday) in Washington to consider Pakistans request for Three-Year Arrangement under the Extended Fund Facility worth of $6.6 billion.
Pakistan would receive $2.2 billion in ongoing financial year 2013-14 if Board gives approval that would be used to repay the previous loans. The IMF Executive Board will discuss Article IV Consultation and Request for a Three-Year Arrangement Under the Extended Fund Facility, said the agenda of the meeting placed on the IMFs website.
Pakistan is optimistic that IMF Board will give formal approval to Pakistans request for three years loan worth of $6.6 billion under the Extended Fund Facility, as we have met the priors actions, said a finance ministry official on Tuesday. He claimed that Pakistan had almost fulfilled the prior conditions of the Fund.
In prior actions, the government has sent notices to 21,000 non-taxpayers in July and August 2013, gave approval to withdraw power subsidy (power subsidies would be limited to consumers of up to 200 units), provinces have shown a willingness to help reduce the overall fiscal deficit and formed a committee to withdraw tax exemptions. Meanwhile, in remaining one condition, the State Bank of Pakistan might increase discount rate in next monetary policy in its meeting to be held on September 13 keeping in view soaring inflation rate.
Pakistan and the IMF have reached $5.3 billion ($6.6 billion now) agreement in early July this year, subject to the timely completion of prior actions to be taken by the authorities. Pakistan would receive $2.2 billion from IMF out of $6.6 billion during the ongoing financial year 2013-14. Meanwhile, Pakistan would have to repay over $3 billion to IMF within ongoing financial year 2013-14.
The loan agreement between Pakistan and IMF has paved way for other international financial institutions like World Bank (WB), Asian Development Bank (ADB) and Islamic Development Bank (IDB). Finance Minister Ishaq Dar other day in a press briefing has said that Pakistan will get a total of $12 billion foreign loans from the international financial institutions in the next three years including a fresh bailout of $6.6 billion from the IMF.
Meanwhile, Pakistan would receive $1.5 billion from World Bank; $1 billion from Asian Development Bank and 750 million euros from Islamic Development Bank and $2.2 billion from IMF during the ongoing financial year 2013-14.
