IMF may boost-up additional funding to Pakistan

May 1st, 2009 - 5:01 pm ICT by ANI  

Islamabad, May. 1 (ANI): The International Monetary Fund (IMF) may jack up additional funding to Islamabad by 4.5 billion dollars, The News has reported.

Pakistan and the IMF discussed the options for additional funding during the recent annual spring meeting of the IMF and the World Bank, and a final decision will be taken in review talks in Dubai scheduled from May 4 to 11.

An official source said additional funding for Islamabad could go up to 12.1 billion dollars from the existing 7.6 billion dollars under a 23-month Standby Arrangement (SBA) program.

However, Additional Finance Secretary Asif Bajwa said the government had not approached the IMF formally on the issue.

An IMF official also confirmed that no official request had come from Islamabad.

According to sources, the IMF funding is meant for Balance of Payment (BoP) support and if the government decides to get additional funds, it will help the State Bank of Pakistan (SBP) to improve its foreign currency reserves position.

“The government will put additional funding into the foreign currency reserves which will help to improve confidence of investors for having increased foreign currency reserves,” The News quoted the official, as saying.

Though the Friends of Democratic Pakistan (FoDP) had pledged 5.28 billion dollars during Tokyo’s conference translating pledges into a reality was altogether a different matter.

If these pledges are actualized, then Pakistan’s budgetary gap for the next two years can be filled. (ANI)

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