Pakistan has arranged $4bn in financing from friendly countries.

[ghazi52]

.,.,
While meeting with brokerage analysts on Monday, SBP Acting Governor Murtaza Syed said Pakistan has arranged $4bn in financing from friendly countries.

“Pakistan will get $2bn from Qatar, $1bn from Saudi Arabia under the umbrella of deferred oil facility and $1bn investments from the UAE in various sectors,” he said.

Pakistan’s gross financing needs would be around $30bn for FY23 including the amount required for CAD and debt repayments.
He said the available financing against this is estimated at $37bn for FY23. The amount increased after Pakistan secured $4bn of financing from friendly countries.

 

[Jango]

.,.,

“Pakistan will get $2bn from Qatar...$1bn investments from the UAE in various sectors,” he said.

'Investements'...yeah right.

 

[Wood]

'Investements'...yeah right.

Yes, this asset monetization deal is an at risk investment from UAE.

 

[SaadH]

Cornerstone of PMLN's and Neutral's economic playbook, an ever ready begging bowl.

No plans to increase revenue or exports and reduction in unscrupulous spending.

Yes, this asset monetization deal is an at risk investment from UAE.

Just like how Qataris invested in Jared Kushner's sinking real estate assets

Investment to buy influence not the putative asset

 

[ghazi52]

Every thing was in place before, promises etc., now they are showing as if aircrafts full of dollars are arriving non stop. Our people might not understand. Very sad.

 

[Jango]

Yes, this asset monetization deal is an at risk investment from UAE.

That's why they get them at throaway rates, preferentially?

Why not openly sell the shares through a competitive process?

 

[Acetic Acid]

.,.,
While meeting with brokerage analysts on Monday, SBP Acting Governor Murtaza Syed said Pakistan has arranged $4bn in financing from friendly countries.

“Pakistan will get $2bn from Qatar, $1bn from Saudi Arabia under the umbrella of deferred oil facility and $1bn investments from the UAE in various sectors,” he said.

Pakistan’s gross financing needs would be around $30bn for FY23 including the amount required for CAD and debt repayments.
He said the available financing against this is estimated at $37bn for FY23. The amount increased after Pakistan secured $4bn of financing from friendly countries.


View attachment 872935

PIA and Islamabad airport go went goen

 

[Wood]

That's why they get them at throaway rates, preferentially?

Why not openly sell the shares through a competitive process?

Pakistan does not have the luxury of time to go through the bidding process. IMF demands bridging finance and the country needed to arrange for immediate support. Considering the situation, I'd say that Pakistan got lucky with this bargain. Without it, a default may have been more likely.

 

[jamesisi]

.,.,
While meeting with brokerage analysts on Monday, SBP Acting Governor Murtaza Syed said Pakistan has arranged $4bn in financing from friendly countries.

“Pakistan will get $2bn from Qatar, $1bn from Saudi Arabia under the umbrella of deferred oil facility and $1bn investments from the UAE in various sectors,” he said.

Pakistan’s gross financing needs would be around $30bn for FY23 including the amount required for CAD and debt repayments.
He said the available financing against this is estimated at $37bn for FY23. The amount increased after Pakistan secured $4bn of financing from friendly countries.


View attachment 872935

How long will this last?
With PDM ( pad marr party) everything is in decline, all hopes are lost..They’re a fishy lot

 

[Hakikat ve Hikmet]

It's called "over the horizon" financing....

Afganistan = $$s

 

[ghazi52]

Pakistan to get $4 billion from friendly countries to shore up reserves, finance minister says​

reuters
By Asif Shahzad

ISLAMABAD, July 16 (Reuters) - Pakistan is likely to get $4 billion from friendly countries this month to bridge a gap in foreign reserves highlighted by the International Monetary Fund, the country's finance minister said, two days after sealing a deal with the lender.

The IMF has reached a staff level agreement with Pakistan that would pave the way for a disbursement of $1.17 billion. The board is also considering adding $1 billion to a $6 billion programme agreed in 2019. read more

"As per the IMF, there is a $4 billion gap," the minister, Miftah Ismail, told a news conference in Islamabad, referring to the shortfall in foreign reserves.

"We will, God willing, fill this gap in the month of July," he said. "We think that we will get $1.2 billion in deferred oil payment from a friendly country. We think that a foreign country will invest between $1.5 to $2 billion in stocks on a G2G (government-to-government) basis, and another friendly country will perhaps give us gas on deferred payment and another friendly country will make some deposits."

Depleting reserves, a widening current account deficit and the depreciation of the Pakistani rupee against the U.S. dollar have left the South Asian nation facing a balance of payment crisis.

Without the IMF deal, which should open up other avenues for external finance, Ismail said the country could have headed towards default.

He said the country will also get around $6 billion from the World Bank and the Asian Development Bank in FY2022-2023.

Pakistan secured a $6 billion IMF programme in 2019, but less than half of that amount has been disbursed to date.

Pakistan's central bank has hiked its key interest rate to 15% to curb inflation, which hit 21.3% in June.

 

[RescueRanger]

.,.,
While meeting with brokerage analysts on Monday, SBP Acting Governor Murtaza Syed said Pakistan has arranged $4bn in financing from friendly countries.

“Pakistan will get $2bn from Qatar, $1bn from Saudi Arabia under the umbrella of deferred oil facility and $1bn investments from the UAE in various sectors,” he said.

Pakistan’s gross financing needs would be around $30bn for FY23 including the amount required for CAD and debt repayments.
He said the available financing against this is estimated at $37bn for FY23. The amount increased after Pakistan secured $4bn of financing from friendly countries.


View attachment 872935

 

[Jango]

Pakistan does not have the luxury of time to go through the bidding process. IMF demands bridging finance and the country needed to arrange for immediate support. Considering the situation, I'd say that Pakistan got lucky with this bargain. Without it, a default may have been more likely.

Question is, why did those countries now want shares or other bargaining chips, rather than use the same terms as before?

 

[American Pakistani]

Us say behtar country ko 50 saal k liye amrika ko lease kardo. Roz ki bheek say to nijaat milay.

Shameless govt and neutrals.

 

[Wood]

Question is, why did those countries now want shares or other bargaining chips, rather than use the same terms as before?

..because Pakistan does not have a good record of returning what was borrowed previously. All previous governments are collectively responsible for the disrepute.

However, I would argue that this asset monetization plan is much better for Pakistan. Instead of having an obligation to pay back loan with interest, Pakistan can choose to buy back the shares sold at a future date when the economy improves substantially. Also, this is more respectful transaction for Pakistan. No belligerent conditions like the one that KSA gave the previous administration.