Islamabad (Pakistan): Pakistan’s Home Minister Rana Sanaullah said on Sunday International Monetary Fund ,International Monetary Fund) had not released the tranche for the $6 billion bailout package under its Extended Funds Facility, even though it made the country “dance to its tune”.
Responding to a question about the IMF, Sanaullah said the government had accepted the conditions “we were not in favor of”. Geo News reported that he urged the international lender to release the installment without any delay so that the country can free itself from a “difficult situation”.
The federal minister said that Pakistan is currently going through a difficult situation in terms of its economy.
Sanaullah said, “For the sake of the country, we have to take difficult decisions, due to which the country is moving towards betterment.”
Referring to the previous government led by the Pakistan Tehreek-e-Insaf (PTI) regime, Sanaullah said the country was ruled by a group that “does nothing but take revenge”.
Meanwhile, Pakistan plans to borrow Pakistani Rupee (PKR) 5.5 trillion from international lenders in the current fiscal to maintain its foreign exchange reserves, repay past loans and finance the current account deficit.
Earlier, in the annual budget for 2022-23, the Pakistan government had estimated that they would only borrow PKR 3.17 trillion from international sources. However, the budget did not include funding from the International Monetary Fund (IMF), Saudi Arabia and SAFE China Deposit, the Pakistani newspaper The Nation.
The estimated international borrowing volume has now increased to PKR 5.5 trillion after incorporating funding from the aforesaid sources.
This new borrowing will be 74 percent more than the previous estimates of the government. After the revision, the external resources of PKR 5.503 trillion projected for 2022-23 are more than 200 per cent higher than the initial PKR 2.7 trillion budget for 2021-22.
The current government is still struggling to make arrangements for the dollar and also needs external funding of $41 billion in the next fiscal year, The Nation reports.
In order to increase foreign exchange reserves to $18 billion in the coming fiscal year, the government will have to repay the previous debt of $21 billion and the current account deficit is estimated to be $12 billion and $8 billion higher.
Therefore, the government plans to borrow heavily in the current financial year.
Responding to a question about the IMF, Sanaullah said the government had accepted the conditions “we were not in favor of”. Geo News reported that he urged the international lender to release the installment without any delay so that the country can free itself from a “difficult situation”.
The federal minister said that Pakistan is currently going through a difficult situation in terms of its economy.
Sanaullah said, “For the sake of the country, we have to take difficult decisions, due to which the country is moving towards betterment.”
Referring to the previous government led by the Pakistan Tehreek-e-Insaf (PTI) regime, Sanaullah said the country was ruled by a group that “does nothing but take revenge”.
Meanwhile, Pakistan plans to borrow Pakistani Rupee (PKR) 5.5 trillion from international lenders in the current fiscal to maintain its foreign exchange reserves, repay past loans and finance the current account deficit.
Earlier, in the annual budget for 2022-23, the Pakistan government had estimated that they would only borrow PKR 3.17 trillion from international sources. However, the budget did not include funding from the International Monetary Fund (IMF), Saudi Arabia and SAFE China Deposit, the Pakistani newspaper The Nation.
The estimated international borrowing volume has now increased to PKR 5.5 trillion after incorporating funding from the aforesaid sources.
This new borrowing will be 74 percent more than the previous estimates of the government. After the revision, the external resources of PKR 5.503 trillion projected for 2022-23 are more than 200 per cent higher than the initial PKR 2.7 trillion budget for 2021-22.
The current government is still struggling to make arrangements for the dollar and also needs external funding of $41 billion in the next fiscal year, The Nation reports.
In order to increase foreign exchange reserves to $18 billion in the coming fiscal year, the government will have to repay the previous debt of $21 billion and the current account deficit is estimated to be $12 billion and $8 billion higher.
Therefore, the government plans to borrow heavily in the current financial year.