Economics & Business

Multilateral agencies to lend $3 billion: Dar

ISLAMABAD: Pakistan will borrow $3 billion from multilateral sources for budgetary support and to maintain foreign exchange reserves at a reasonable level, which are expected to go down to $10 billion by year-end due to increasing oil and wheat import bill.

Pakistan is eligible for some concessions on borrowing. Given that this must attach with stringent conditions, therefore, need to focus on negotiating in Pakistan interest. Finance Minister Ishaq Dar told the Senate Standing Committee on Finance here on Saturday that he held meetings with multilateral agencies who have agreed to lend $3 billion to the new government while promising Pakistan will not go into IMF programme.

Dar said it was a big challenge for the new government how to pay to oil companies and Wapda, as there is no space with the State Bank of Pakistan. The previous government had borrowed Rs 400 billion from the central bank against the target of Rs 181 billion for the year. The SBP, he said, has told the Cabinet very clearly that there was no space with it to lend more money to the government that is already with Rs 555 billion budget-overrun. The reason being the under-budgeting by the previous government, he added.-SANA

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Rubab Saleem

Rubab Saleem is Editor of Pakistan Times

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