IMF approves Pakistan’s US$ 8.2 bln financing gap plan

Islamabad: The International Monetary Fund (IMF) has accepted US$ 8.2 billion financing gap plan presented by the Ministry of Finance, citing sources Newswire reported on Tuesday.

“Pakistan’s external financing target has now been set between the finance ministry and the IMF thus setting aside threat of default looming over the country,” ministry sources said.

The lender has given its nod to the US$ 8.2 billion financing gap of the country, that will be filled with funding from the IMF, World Bank and the Asian Development Bank apart of financing from China, Saudi Arabia, the UAE and other friendly countries, sources said.

According to the finance ministry’s plan US$ 3.5 bln financing will be arranged from China this year, US$2 bln from Saudi Arabia and one billion dollars from the UAE, sources shared.

Moreover, under the financing plan US$ 500 mln funds will be received from the ADB, another 500 mln dollars from the World Bank and three billion US dollars will be received from the IMF under the standby agreement.

Pakistan secured a badly needed $3 billion stand-by arrangement (SBA) from the International Monetary Fund, giving the economy a much-awaited respite as it teeters on the brink of default.

The staff level agreement on the SBA is subject to approval by the IMF Executive board.

The previous Extended Fund Facility expired on June 30, with the 9th, 10th, and 11th reviews pending.