Pakistan Receives $2 Billion Deposit from Saudi Arabia, Aiding Progress in IMF Bailout Plan
Pakistan receive $2 billion from Saudi: The International Monetary Fund (IMF) has told Pakistan that it has received confirmation from Saudi Arabia of $2 billion in additional deposits, raising hopes for an early signing of the accord.
Islamabad and the IMF have been negotiating since the end of January to release $1.1 billion from a $6.5 billion bailout plan decided upon in 2019. To free the funds, the government has slashed subsidies, abolished a false exchange rate ceiling, raised taxes, and hiked fuel prices.
The agreement has been delayed, though, because friendly nations have promised to provide additional funds.
According to sources quoted by The News on Wednesday, the lender informed the Pakistani authorities of the event. The Fund’s staff looked to be satisfied with the most recent confirmation in general.
The source claims that the Saudi government is now poised to issue a statement, perhaps during Prime Minister Shehbaz Sharif’s forthcoming visit.
The Saudi ambassador to Pakistan recently made a hint in an interview that good news was soon to be released and that his country has always supported Pakistan in trying times.
The sources claim that everyone is now waiting for the UAE to confirm an additional $1 billion deposit from them, which might pave the way for talks with the IMF about a SLA.
Updates on Finance Minister’s Visit and Cross-Fuel Subsidy Delaying IMF SLA Signing
Finance Minister Ishaq Dar is likely to stop in the UAE on his route to the US, where he will talk about the disbursement of cash.
The Ministry of Petroleum discovered an unforeseen cross-fuel subsidy for owners of motorbikes and cars up to 800cc, which had to be removed at this time, after consulting with the PM Office. The signature of the SLA with the IMF was further delayed by this unanticipated cross-fuel subsidy.
The administration has not yet removed the proposed cross-fuel subsidy, which cannot be implemented quickly, according to the sources.
Such preparations were taken into consideration when Miftah Ismail headed the Ministry of Finance during the PDM-led administration as well as when the previous Finance Minister Shaukat Tarin was in charge.
On the eve of the last budget, Miftah Ismail, a former finance minister, had also allotted Rs 48 billion for Sasta Petrol. However, it was unable to be executed because such plans could not be established sufficiently.
The SLA signing was postponed by the IMF because they were still looking for clarification on how the programme will be conducted openly. This delay was justified by the IMF’s disclosure of a half-baked cross-fuel subsidy.
