Pakistan Can Arrange $8 Billion to Fulfil IMF’s $4 Billion External Financing Condition: Miftah Ismail

Pakistan can arrange over $8 billion for external financing of $4 billion that the International Monetary Fund (IMF) has asked to arrange for the approval of the program.

This was revealed by the Federal Minister of Finance and Revenue, Mr. Miftah Ismail, during a press conference in Islamabad.

Giving the details regarding the amount of $8 billion, the Finance Minister said that the World Bank (WB) was going to provide the country with $1 billion ($400+$600 million for two programs), whereas the Asian Infrastructure Investment Bank (AIIB) was also funding $600 million for a similar program.

Strictly avoiding naming the country, he revealed that Pakistan was also going to be provided $1.2 billion in oil financing from a friendly county ($100 million monthly). In addition, another country was willing to invest $1-2 billion in the Pakistan Stock Exchange (PSX), for which the cabinet had accorded approval, whereas the approval of the Committee for Disposal of Legislative Cases (CCLC) was still required.

Informing the media about other sources for funding, Finance Minister said that another country was willing to provide $200-$300 million on deferred payments, while another friendly country was ready to deposit $2 billion. Adding to the funding, he said that Pakistan also had the option to borrow more than $2 billion from a country in form of the Special Drawing Rights (SDRs). He pointed out that this brings the total amount to at least $8 billion.

He said that the IMF program was definitely going to get approved, and the approval of the Executive Board was just a custom that had to be fulfilled.

Continuing to not disclose the names of the countries, Miftah Ismail also said that Pakistan was looking to sell Balloki Power Plant and Haveli Bahadur Shah Power Plant on government-to-government (G2G) basis.

Commenting on the fuel subsidies provided by the previous government, Finance Minister apprised that some individuals were hoarding diesel as a subsidy of Rs. 70 had been provided. This led to high imports of fuel, causing the import bill to increase. He informed that normally, the country had 6-7 days of diesel stock, which had increased to 60 days.

The Minister was hopeful that the economy would smooth out in the upcoming months with the revival of the program.