ISLAMABAD: Cash-strapped Pakistan seeks confirmation from Saudi Arabia for additional $2 billion deposits and $950 million loan from World Bank and AIIB for signing of a staff-level agreement (SLA) with the IMF, media reported on Monday.
Pakistan is eagerly awaiting the $1.1 billion tranche of financing from the International Monetary Fund (IMF), which the global lender is refusing unless crucial decisions are taken by the government and implemented.
A senior government official dealing with the IMF said: “We are hopeful”, when asked about the possibility of obtaining insurance on deposits from Saudi Arabia and a loan from the World Bank, reported The News newspaper. International.
The $950m linked loans from the World Bank’s Resilient Institution for Sustainable Economy (RISE-II) and the Asian Infrastructure Investment Bank (AIIB) will only be approved if Pakistan gets the bailout from the IMF, Geo News reported.
The cash-strapped country expects to strike the much-needed deal with the global lender in the coming days, another senior official said, adding that the Fund was reluctant to give a deadline for the signing of the deal.
“Pakistan is facing difficulties in its talks with the IMF due to heightened hostility between China and the United States as they have to secure the Staff Level Agreement (SLA) in a balancing act tricky to direct the economy and diplomacy in such a way that suits Islamabad’s broader interest,” the report said.
Islamabad will receive $1.3 billion from China, its all-weather ally, to shore up its rapidly depleting foreign exchange reserves, Finance Minister Ishaq Dar said last week after Beijing transferred $700 to the country. cash-strapped country in February.
Pakistan is taking various steps at the Fund’s request for the release of a $1.1 billion tranche under the $7 billion loan facility, including unveiling a mini-budget to recoup tax revenue additional Rs 170 billion by increasing the GST rate from 17% to 18% percent.
The government has also increased the electricity tariff by over 7 rupees per unit, another imposition of an electricity surcharge of 3.82 rupees per unit, increased the gas tariff, allowing massive adjustments in the rate of exchange rate, raised the oil development tax and raised the policy rate by 300 basis points from 17% to 20%, according to the report.
Pakistan and the IMF held virtual talks after the two sides held 10 days of intensive negotiations with an IMF delegation in Islamabad from January 31 to February 9, which failed to reach an agreement on the tranche $1.1 billion financing round from the global lender.
Pakistan is eagerly awaiting the $1.1 billion tranche of financing from the International Monetary Fund (IMF), which the global lender is refusing unless crucial decisions are taken by the government and implemented.
A senior government official dealing with the IMF said: “We are hopeful”, when asked about the possibility of obtaining insurance on deposits from Saudi Arabia and a loan from the World Bank, reported The News newspaper. International.
The $950m linked loans from the World Bank’s Resilient Institution for Sustainable Economy (RISE-II) and the Asian Infrastructure Investment Bank (AIIB) will only be approved if Pakistan gets the bailout from the IMF, Geo News reported.
The cash-strapped country expects to strike the much-needed deal with the global lender in the coming days, another senior official said, adding that the Fund was reluctant to give a deadline for the signing of the deal.
“Pakistan is facing difficulties in its talks with the IMF due to heightened hostility between China and the United States as they have to secure the Staff Level Agreement (SLA) in a balancing act tricky to direct the economy and diplomacy in such a way that suits Islamabad’s broader interest,” the report said.
Islamabad will receive $1.3 billion from China, its all-weather ally, to shore up its rapidly depleting foreign exchange reserves, Finance Minister Ishaq Dar said last week after Beijing transferred $700 to the country. cash-strapped country in February.
Pakistan is taking various steps at the Fund’s request for the release of a $1.1 billion tranche under the $7 billion loan facility, including unveiling a mini-budget to recoup tax revenue additional Rs 170 billion by increasing the GST rate from 17% to 18% percent.
The government has also increased the electricity tariff by over 7 rupees per unit, another imposition of an electricity surcharge of 3.82 rupees per unit, increased the gas tariff, allowing massive adjustments in the rate of exchange rate, raised the oil development tax and raised the policy rate by 300 basis points from 17% to 20%, according to the report.
Pakistan and the IMF held virtual talks after the two sides held 10 days of intensive negotiations with an IMF delegation in Islamabad from January 31 to February 9, which failed to reach an agreement on the tranche $1.1 billion financing round from the global lender.
