The Minister for Finance Asad Umar said on Tuesday that Pakistan’s one of the major problem balance of payments crisis is over now, the statement came one day before IMF team arrives in Pakistan to discuss the bailout package.
Last month, minister of finance said Pakistan would seek IMF funding to further strengthen the economic condition of the country.
Asad Umar while talking to media said Imran Khan secured $6 billion package from Saudi Arabia and promised help from China collectively cover $12 billion shortfall in foreign currency to service Pakistan’s debt.
He further said, due to this development, Pakistan’s current and short-term balance of payment crisis is over now. He mentioned it without talking about IMF, however, the statement didn’t clear on the stance towards IMF whether the country is not interested in IMF funding anymore or it would only seek a smaller package.
IMF team has already arrived in Pakistan, the officials in Islamabad would begin talks with IMF today expected to last for two weeks.
Last month, Pakistan secured $3 billion in support from Saudi Arabia to the central bank, moreover, Saudi Arabia offered $3 billion in deferred oil payments for the country. The announcement came after the PM Imran Khan visited Riyadh Investment conference which many countries boycotted after a controversial murder of Saudi Journalist.
The country’s current account deficit inflated by 43 percent to $18 billion in the previous fiscal year ended June 2018 and fiscal deficit widened to 6.6 percent of the GDP.
Last week, Khan visited China for the economic cooperation they had signed some 15 MoUs in this regard and further talks are expected on Chinese officials visiting Pakistan next year.
The finance minister also said the governor of State Bank will land China on Friday to discuss the details of promised “Immediate funding” to further strengthen foreign currency reserves.
During the previous talks with IMF held in October, Pakistan denied the strict conditions imposed by the lender as compared to the bailout package in 2013. Pakistan is now in a better position to negotiate the bailout package with IMF, the PM clearly said earlier that they would not accept any conditions that are not in favor of Pakistan’s people or economy.