IMF board to approve Pakistan loan within days

On Thursday, Brig. (retd) Aslam Khan, Chairman of Pakistan Economy Watch (PEW), said few days are left for the Executive Board of the IMF meeting to review and possibly ratify the Staff Level Agreement with Pakistan. This meeting has been scheduled for July 12, during which there is a strong possibility of approving a loan of three billion dollars and releasing the first instalment of one billion and ten crore dollars, he said. He added that the approval of the IMF loan would open the way for more loans and investments for Pakistan and improve the situation.

In a statement issued today, Aslam Khan said that the government should start a diplomatic campaign to get the international community and friendly countries to implement their commitments and obtain new loans.

He said that after the agreement, the possibility of getting 3 billion dollars from Saudi Arabia and the United Arab Emirates and new loans from China has become brighter.

Besides, 1.5 billion dollars will be raised through Eurobond, 4.6 billion dollars will be obtained from commercial banks, $2.4 billion will be received from IMF, and $2.7 billion will be brought in from other multilateral partners.

Aslam Khan said various countries had pledged $9 billion in aid to rehabilitate flood-affected people. Still, money has yet to be received, requiring efforts by the government.

He said Saudi Arabia, the United Arab Emirates, Qatar and Azerbaijan have also promised 15 billion dollars in investment, for which serious efforts are needed.

Gulf countries are also interested in investing in various fields, including energy, oil refineries, mining, agriculture and IT, and they would feel secure after approval of the Staff Level Agreement by the IMF board.

He said the agreement will likely reduce costs and improve financial management, improving investors’ confidence.

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