ISLAMABAD: Two days after reaching an agreement with the international lender for the revival of a USD 6 billion loan facility to the cash-strapped country, Finance Minister Mifta Ismail has said that Pakistan will receive billions of dollars from friendly countries this month. US dollars are expected.
Ismail cited the shortfall in foreign reserves highlighted by the International Monetary Fund (IMF) on Saturday. The minister said, “According to the IMF, there is a difference of $4 billion.
We anticipate receiving USD 1.2 billion in delayed oil payments from a friendly nation. We estimate that a foreign government will invest between US$1.5 billion and US$2 billion in shares, another friendly country may provide us with gas on a deferred payment basis, and a third friendly country may deposit some.
With regard to the revival of the USD 6 billion line of credit, Pakistan and the IMF on Thursday reached a preliminary staff-level agreement. The deal paves the way for the release of the much-awaited $1.18 billion loan tranche. Which was stopped earlier this year. The board is also considering adding USD 1 billion to the USD 6 billion program agreed in 2019.
The country is currently facing a balance of payments crisis due to depleting reserves, rising current account deficit and depreciation of the rupee against the dollar.
Ismail claimed that without an IMF agreement, which should open additional channels for external financing, the nation could enter default.
According to him, a total of USD 6 billion including USD 3.5 billion from Asian Development Bank and USD 2.5 billion from World Bank will also be provided to the nation from multilateral lenders in this financial year.
He said that both the Asian Infrastructure Investment Bank and the Islamic Development Bank are expected to raise between USD 400 million and USD 500 million.
He hoped that as soon as the IMF agreement was finalized, which was projected in the current month, the rupee would appreciate against the dollar. The government plans to reduce energy imports to USD 2.7 billion this month from USD 3.7 billion last month. The move was expected to ease some pressure on the local currency.
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