'Good news': Shaukat Tarin confirms SBP's receipt of $3bn deposit from Saudi Arabia

[baqai]

any source bhai? aur waqaiye IMF ko tou pata hi nahi hoga yeh sab

Saudi govt revives $3bn support to Pakistan

The facility is expected to help Pakistan convince the IMF about its financing plan.

www.dawn.com

Pakistan receives $3 billion loan from Saudi Arabia

Pakistan on Saturday received a $3 billion loan from Saudi Arabia, the prime minister's finance adviser said, as part of an economic support package.

www.reuters.com

 

[wali87]

Where and who will this take government take the begging bowl to next. They’ve destroyed the economy beyond recognition. Inflation and exchange rate has sky rocketed. Speaking to the public these days, it appears that PTI will be completely wiped out in the upcoming elections.

 

[AZ1]

Saudi govt revives $3bn support to Pakistan

The facility is expected to help Pakistan convince the IMF about its financing plan.

www.dawn.com

The Saudi government would immediately deposit $3bn in Pakistan’s account for a year and keep it rolling at least until the completion of the IMF programme in October 2023, the official earlier said.

So your claim that we wouldn't touch it is beyond understanding.

 

[baqai]

The Saudi government would immediately deposit $3bn in Pakistan’s account for a year and keep it rolling at least until the completion of the IMF programme in October 2023, the official earlier said.

So your claim that we wouldn't touch it is beyond understanding.

bhai, the only purpose of this loan is to establish and keep with IMF standards, it's not for anything else so it's not that these $3bn would be used to improve infra or will be spend on anything else

 

[AZ1]

bhai, the only purpose of this loan is to establish and keep with IMF standards, it's not for anything else so it's not that these $3bn would be used to improve infra or will be spend on anything else

We dont need orange train type infrastructure. sir jee 2 rupees dollar down today.

on saturday it was 180 now today 178 and expected to be 170. around.

 

[SaadH]

Where and who will this take government take the begging bowl to next. They’ve destroyed the economy beyond recognition. Inflation and exchange rate has sky rocketed. Speaking to the public these days, it appears that PTI will be completely wiped out in the upcoming elections.

Can you explain what exact policy of PTI led to inflation and economic destruction and what would you have done differently?

 

[Patriot forever]

bhai, the only purpose of this loan is to establish and keep with IMF standards, it's not for anything else so it's not that these $3bn would be used to improve infra or will be spend on anything else

Let's phrase it in a way that everyone can understand.

It's basically apart of financing required by Pakistan to roll over previous debt and for interest payment. For Pakistan to meet its requirement some part of it will come from the IMF, some from other creditors like WB and ABD ( which require IMF nod) and some part of it will be deposits by friendly countries.

When IMF determines the value of its tranche it sees that with the current agreed package Pakistan will be able to fulfill its requirements. It will get 'x' amount from here 'x' amount from there.

If Pakistan was unable to get the Saudi loan ( support from friendly countries) IMF will make the conditions even tougher because it sees necessary that Pakistan will require more belt tightening to make ends meet.

Reserves is just your net inflows and outflows over a period of time. When people even our local markets and foreign creditors like e.g. ADB or even foreign commercial creditors or credit rating agencies sees that Pakistan is unable to sustain enough inflows vs required outflows the more they will hesitate to loan us money. Credit ratings drop, macroeconomic instability ensues. The harder it becomes for us to sustain constant inflows ( also the cost of borrowing increases as our credit rsrings go down). We enter a situation where it becomes not possible for us to arrange enough inflows to meet out payments. Thus the risk of default.