As IMF funding delayed, Pakistan expects $3bn from friendly country

[ghazi52]

.,.,.

As IMF funding delayed, Pakistan expects $3bn from friendly country​

• Finance Minister says Pakistan will make alternate arrangements if IMF delays $1bn tranche

Reuters | BR
December 3, 2022

ISLAMABAD: Pakistan expects to secure $3 billion in external financing from a friendly country in two weeks, its finance minister said on Friday as the South Asian country awaits IMF funding.

An International Monetary Fund (IMF) review for the release of its next tranche of funding has been pending since September, leaving Pakistan in dire need of external financing.

Pakistan's Finance Minister Ishaq Dar said on Friday in an interview with Geo News TV that all targets for the IMF's ninth review have been completed, adding that withholding a tranche despite that would not make sense.


The IMF's resident representative in Pakistan did not immediately respond to a request for comment.

Dar said Pakistan's foreign reserves, which have dropped to $7.5 billion, will be shored up with a $3 billion financing from a friendly country in the next two weeks.

That is hardly enough for a month of imports for Pakistan, which has been facing a widening current account deficit and a balance of payments crisis.

‘Won’t take IMF’s dictation’

The finance minister said he will not take dictation from the IMF on managing Pakistan’s finances, saying he would prioritize Pakistan’s interests.

To a question about the delay in the ninth review, Dar said, "All the requirements for the ninth (IMF) review are completed," adding that the international lender was "behaving abnormally" by not completing the review.

“I don’t care if they come. I don’t have to plead before them. I have to look at Pakistan’s matters.”

He noted that Pakistan will make alternate arrangements in case of any delay from the IMF.

"If the money doesn't come, we will manage, no problem," he added.

Dar insisted that his aggressive approach will not derail the IMF programme, stressing that the government would complete the current programme as well.

As IMF funding delayed, Pakistan expects $3bn from friendly country

* Finance Minister says Pakistan will make alternate arrangements if IMF delays $1bn tranche

www.brecorder.com

 

[Turingsage]

This is the same $3 billion figure that the Saudi's rolled over it has deposited with Pakistan. Saudi's are the "friendly govt" but the money has to be paid back eventually.
IMF is not impressed with such shenanigans by a Finance minister.

 

[epebble]

but the money has to be paid back eventually.

That is not the difference. All money has to be paid back eventually (IMF money is loan). Saudi money is a deposit. It cannot be used. It sits in the treasury as a deadweight so that SBP can say they have a reserve of 3 billion when they have zero. Its main benefit may be some foreign vendors may view it as a reserve and not demand advance payments for imports. Also, not a single additional dollar is available for import, Saudis just decided they will not exercise their right to withdraw the money at the end of term. If they had not done so, a sudden drawdown of 3 billion from under 8 billion would have led to sudden collapse; no importer would get goods without advance payment. SBP is really on ventilator + dialysis + defibrillator now. Pissing off IMF is a terrible decision.

Saudi Arabia extends $3b deposit term​

Saudi Arabia extends $3b deposit term | The Express Tribune

Pakistan's total foreign debt repayment and debt serving in the next year drops to $23.3 billion

tribune.com.pk

 

[ghazi52]

,.,.
The funeral of three stories has been released.
1. Nawaz Sharif is brave
2. Ishaq Dar can run the economy
3. Shahbaz Sharif is the best administrator

 

[Horse_Rider]

.,.,.

As IMF funding delayed, Pakistan expects $3bn from friendly country​

• [/URL]

KSA has already approved $ 3-4 billion for Pakistan and more stability to be provided if need be. A $ 10 billion investment package is being created for both Pakistan and Egypt. So things have started to move in the right direction.

Hopefully we re-negotiate with the IMF with their shareholders and that $ 7-9 billion would be a go too. Pakistan can now focus on improving it's conditions and go up from here.