Islamabad: The Pakistan Finance Minister (FM) Dr Shamshad Akhtar, in a recent interview with the official ICMA International Journal, has shed light on the country’s ambitious plan to raise approximately USD 4.5 billion from both multilateral and bilateral sources other than IMF, according to a news source December 13.
As per the details, Dr Akhtar outlined that, for the second quarter (Q2), the government anticipates receiving over USD 1.6 billion from various sources. Among the major creditors are the Asian Development Bank, the World Bank, and the Asian Infrastructure Investment Bank, with inflows comprising both project-based and program-based funds.
Discussing the IMF program, Dr Akhtar mentioned the successful conclusion of the first review of the Standby Agreement and the achievement of a Staff Level Agreement (SLA). Subject to approval by the IMF’s Executive Board, upon agreement, Pakistan stands to gain access to SDR 525 million, equivalent to around USD 700 million.
Fitch Ratings, in a recent note, highlighted the recovery of Pakistan’s forex reserves due to inflows of new funding and limited current account deficits, projecting further increases. The official gross reserves, including gold, reached USD 12.7 billion in October, up from USD 8 billion at the beginning of 2023 but still below the peak of USD 23 billion at the end of 2021.
Furthermore, the Central Bank’s net liquid forex reserves, hovering at just over USD 7 billion since October, have shown improvement from a low of about USD 3 billion in January. This improvement has been attributed to a contraction in imports, positively impacting reserve coverage ratios.
Dr Akhtar acknowledged that negotiations for certain program loans have concluded, and disbursements are imminent. She reassured that the country is meeting its debt obligations promptly and intends to continue doing so in the future.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
