Islamabad: Finance Minister Asad Umar has stated that the China financing deal will be finalised soon, a news source reported. Attending a press briefing, he said that several positive things will unfold in the coming two to three weeks. He further informed that the government is in no urgency to turn to the International Monetary Fund (IMF).
The minister stated that Pakistan collaborates regularly with the IMF, with both sides having resolved several of their differences recently. Moreover, Pakistan’s credit default swap position has improved in the international market, he noted.
A question was posed regarding the government’s decision to borrow from friendly countries at much higher interest rates as compared to offers made by the International Finance Corporation (IFC). Umar refuted the observation, and said that the going interest rate was only 3% on funds borrowed from the UAE and Saudi Arabia.
The minister was further asked about the IFC’s offer to provide a zero percent interest rate facility. He replied that the IFC had made no such provisions, and said that Pakistan is currently borrowing funds from China at much lower rates.
Advisor on Commerce and Textile, Abdul Razak Dawood, also attended the press briefing. He informed that the government has successfully finalised the trade agreement with China. Both sides are soon going to discuss the details pertaining to the exports of sugar, rice, and textile.
