ISLAMABAD - The cash-starved government is expecting to receive around $2 billion from other International Financial Institute (IFIs) except IMF within next year that would enhance the country’s foreign exchange reserves which are under severe pressure due to heavy repayment to IMF.
Sources informed The Nation on Tuesday that gov is expecting to receive budgetary support from World Bank, Asian Development Bank and others in upcoming year 2013, which would be around $1.5 to $2b. Sources further said that country’s foreign reserves could go down to around $10b at the end of ongoing financial year 2012-13 after heavy repayments of $2.9 billion to the IMF during the ongoing financial year 2012-13. Therefore, the expected inflow of around $2 billion from other International Financial Institutes except IMF would increase the country’s foreign exchange reserves. However, sources said that foreign inflow from other International Financial Institutes (IFIs) is attached with the approval of the IMF (if Pakistan able to get Letter of Comfort from the Fund).
It might be mentioned here that foreign exchange of the country had already declined to around $ 14 billion in November 2012 from higher side of over $ 18 billion mainly due to heavy repayment to IMF following the legal obligation. Pakistan has started repaying IMF since February 2012 that depleted the country’s reserves.
Meanwhile, IMF would present Post Programme Monitoring report on Pakistan in its executive board meeting today (November 21) in Washington that would portray the picture of economic situation of the country, such as the outlook for country’s economy for the rest of the ongoing fiscal year and beyond, and on economic policies to maintain growth and macroeconomic stability in the context of a difficult global economic environment. The IMF team held post programme monitoring (PPM) discussions with the Pakistani authorities in Dubai and Islamabad during Sep 26-October 3.
According to initial draft of post programme monitoring (PPM) report, Pakistan is facing a challenging economic outlook, as its GDP growth in the current financial year, 2012-13, is projected to be in 3-3.5 per cent range (against the target of 4.2 per cent). Pakistan’s external position is weakening and current account deficit is not large by international standards, financial flows have weakened and central bank reserves have fallen, stated in the draft of the report.