Pakistan is set to get $5.6 billion in external financing which includes inflows from Saudi Arabia and the UAE that have been deposited in the country’s central bank, while Inflows from the International Monetary Fund (IMF) are not part of this financing, Bloomberg News reported on Friday.
The funding “includes $3.7 billion of commitments from bilateral partners including Saudi Arabia and the UAE”, Nathan Porter, the IMF’s mission chief for Pakistan, was quoted as saying in an emailed response to Bloomberg News.
Some $3 billion has been disbursed, Porter said, referring to the inflows from the two Gulf countries as confirmed by Finance Minister Ishaq Dar earlier this week.
This basically leaves $700 million in obligations that have not yet been met by bilateral partner inflows.
Recent events have aided Pakistan’s dwindling foreign exchange reserves, which earlier this month fell to around $4 billion.
Additionally, “more inflows are expected from multilateral development partners including the World Bank, Asian Infrastructure Investment Bank and Islamic Development Bank in the coming weeks and months, Bilal Kayani, Prime Minister’s coordinator on the economy, said in a Twitter post.
Meanwhile, the International Monetary Fund (IMF) said that the recently-approved $3 billion loan program with Pakistan is aimed at supporting the country’s immediate effort to stabilize the economy and ensure the current balance of payments need is filled.
Earlier this week, the global lender’s executive board green-lit the nine-month standby arrangement (SBA) in order “to support the authorities’ economic stabilisation programme”.
The IMF said in a statement that the board had approved a bailout package for Pakistan worth $2.25 billion in Special Drawing Rights (SDRs), or roughly $3 billion, or 111% of Pakistan’s quota. SDRs are reserve funds that the institution credits to the accounts of its member countries.
