ISLAMABAD – The International Monetary Fund (IMF) package of $6 billionwith subsequent inflows of about $38 billion from other internationalpartners over the programme period of 39 months will help Pakistan becominga self-reliant country on economic front, giving hope of the country’stough days and economic constraints fading away once for all.
The much needed IMF package will open the doors from other internationalpartners of Pakistan as the country is expected to draw over $38 billionfrom them over the programme period.
“These external inflows would help Pakistan in bridging the current accountgaps besides covering all other fiscal gaps and building foreign exchangereserves,” economic expert Abdid Qayum Sulehri said.
Talking to APP, he said Pakistan had also been receiving such types offunding from its international partners which could not be exploited by thepast governments to stabilize the economy.
He said if the present government utilize the situation sensibly, it couldgain much more than expected.
“If there are favorable conditions for the government, a good environmentwould be developed for economic growth which will take momentum in comingyears,” he added.
Giving break figures of the expected $38 billion from other creditors,Advisor to Prime Minister Dr Abdul Hafeez Shaikh had said in a pressconference the other day, that said around $4.2 billion had been lined upagainst programme loans, $8.7 billion against project loans, $14 billion ofrollover loans and $8 billion in commercial loans.
He said “the IMF support bodes well for the country and is a testament togovernment’s resolve for ensuring financial discipline and sound economicmanagement”.
Former Finance Minister Dr Hafeez Pasha told APP that the external inflowswould help reducing trade deficit, retiring debts fulfilling otherrequirements to stabilize the economy.
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He said the government could also collect extra amount of foreign exchangereserves by floating sukuk and euro bonds to ensuer a sustainable GDPgrowth of the country.
He said with the building of foreign exchange reserves, pressure wouldmount on dollar and exchange rate would also be stabilized as a result.
Meanwhile the business community also hailed the $6bn IMF loan package forPakistan saying that it would help stabilizing the crisis-batteredcountry’s economy besides reviving of investors’ confidence and sustainablegrowth through structural reforms introduced by Pakistan Tehrik-e-Insafgovernment.
Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq saidIMF bailout package is imperative for the country and aimed at providingbreathing space for the incumbent government and reassuring investors inthe face of growing concerns over a plunging currency and gaping fiscaldeficit as well as skyrocketing inflation and pressing debt obligations.
He said the business community is confident that after following economicvision of Prime Minister Imran Khan, the economic growth will graduallyincrease and inflation will decline and help reinforcing financial sectorresilience besides strengthening social safety nets across the country.
The Islamabad Chamber of Commerce and Industry said the IMF package was apositive development as it would pave way for the country to obtainfinancial support from many other international financial institutions forimproving its economy.
It also called upon the government to use IMF loan for achievingsustainable development of the economy and evolve a new strategy to rid thecountry of foreign debts as Pakistan would never be able to achievelong-term economic growth without getting rid of debts burden.
