Pakistan to receive additional funds from ADB, WB following IMF deal

ISLAMABAD: After the approval of $6 billion loan from International Monetary Fund, Special Advisor to Prime Minister on Finance Hafeez Shaikh said on Thursday that the bailout package will bring stability to the economy. 

Sharing the details of the IMF package with media alongside Minister of State for Revenue Hammad Azhar, Shaikh said following the deal, other monetary organizations will also provide funds to the country. “Asian Development Bank (ADB) intends to give additional $3.2 billion to Pakistan,” he said.

The World Bank (WB) will also grant extra money to Pakistan, the advisor assured adding that these funds will also be given for the budgetary support.

The approval of the bailout package reflected the trust of IMF in the leadership of Pakistan and its policies, he continued.

Asian Development Bank (ADB) intends to give additional $3.2 billion to Pakistan

Shaikh admitted the historic swelling in the country’s debts and said “we have to put efforts to pay our loans, we will have to cut our expenses besides taking difficult decisions” to fix the economic situation.

He said the monetary fund will provide $2 billion annually to Pakistan as a part of the $6 billion package and the first installment of $1 billion will be received by July 8.

The IMF loan was sought under the ‘accident facility’ and its interest rate will remain below three percent, the SAPM told the media.

Shaikh elucidated that there was no condition of privatization in the IMF deal, however, a comprehensive plan will be chalked out for government institutions.

Read More: No agreement reached with IMF on exchange rate: Hafeez Shaikh

The government will consider loss-incurring institutions to privatize, and “a program for the privatization of institutions has to be prepared by September 2019.”

Talking about the promising result of Asset Declaration Scheme, the economist said the Federal Board of Revenue collected Rs70bn revenue through the government’s scheme.

Around 1, 37,000 people got themselves registered in the scheme, which is by far the highest figure in the history of Pakistan, Shaikh boastfully mentioned.