Pakistan: IMF Agreed to provide US $ 5.3 billion Loan

ISLAMABAD, Jul 4 (APP): Pakistan and International Monetary Fund (IMF) have reached an agreement for a 3-year programme of at least US $ 5.3 billion under an Extended Fund Facility (EFF). This was stated by Minister for Finance, Revenues and Economic Affairs Senator Muhammad Ishaq Day while addressing a joint press conference with visiting IMF Mission led by Jeffery Franks here at “P” block Auditorium this afternoon. Minister for Information Senator Pervaz Rashid , Secretary Finance Dr.Waqar Masood Khan, Advisor Finance Rana Asad Amin and senior officials of the Ministry of Finance IMF were present on the occasion. The Minister said that the Staff Level agreement has paved the way for the programme to be presented to Management and finally to the Board of Executive Directors in the first week of September 2013.  Pakistan, he said has also requested the management to increase the present level of access of 348% of Quota to 500% of Quota, together with appropriate front loading to match Pakistan’s obligations toward the Fund under the previous programme.

The Finance Minister on the occasion said that negotiated programme with IMF is based on totally home grown and best interest of the country. Dar added that the programme aims at stabilizing Pakistan’s economy and creating an enabling environment for revival of economic growth, Fiscal consolidation, containing inflation, resolution of energy crisis including settlement of circular debt, promotion of social safety nets, strengthening financial sector and improving business climate. The Finance Minister further said that promoting foreign investment, restructuring of public sector corporations, revival of privatization programme, strengthening of corporate governance and building foreign exchange reserves with exchange rate stability are the major objectives of PML(N) Government under the leadership of Prime Minister Mian Muhammad Nawaz Sharif which converges with the programme finalized with IMF. Dar said that he had stated in his budget speech, the Government of PML (N)inherited a broken economy.

“Much of this description also applies to the fact that Pakistan has been saddled with huge payment liabilities of the previous government to retire  previous loans from the IMF without having adequate foreign exchange reserves”, he remarked.