ISLAMABAD: Despite depressive economic situation of the country, government is all set to repay $1.2 billion to International Monetary Fund (IMF) during rest of the current fiscal year 2011-12.
Federal Secretary Finance Dr.Waqar Masood Khan confirmed to Online on Wednesday that government will pay back total amount of $1.2 billion to International Monetary Fund during 3rd and 4th quarters of the current fiscal year 2011-12; however, he did not make clear the amount of each quarter and the name of months in which IMF will be paid back.
In the month of February government will repay first installment of $500 million to International Monetary Fund and $700 million will be paid back in the month of June from foreign currency reserves held by the State Bank of Pakistan( SBP)., official told Online on the condition of anonymity.
According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two tranches of $3.7 billion could not pay to Pakistan by IMF following Islamabads failure to pursue key reforms as well as the emergence of the revenue figures fiasco. The foreign currency reserves stand over $ 17 billion on December 07, 2011out of which $7.6 billion is loans obtained from the Fund under the existing SBA program.
Independent economists were of the view that pressure will start on countrys economic trouble shooter after the starting of repayments process to the IMF and further dip in countrys exports after decling in the prices of cotton in the international market.
Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011.
ONLINE - International News Network
