Pakistan

Pakistan to receive up to $600 million from CSF by July

Minister met development heads from China, UK, Germany, Iran and Afghanistan during U.S. trip.

April 26, 2011

Federal Finance Minister Hafeez Sheikh said that Pakistan will be receiving receive between five to six hundred million dollars before June 30 from the Coalition Support Fund.

Briefing the media in Islamabad of his trip to the US, he said that he had held talks with development heads from China, UK, Germany, Iran and Afghanistan, during his trip to Washington.

He said that an IMF mission will arrive in Pakistan on May 8 to decide on the release of a grant of 1.7 billion dollars. He clarified that the IMF had not put forward a demand for two per cent electricity tariffs. The Minister accepted that a lot of work was still needed to ensure economic recovery of the country.

The Asian Development Bank and the World Bank will provide 500 million dollars each for budgetary support, he revealed.

Among austerity steps being implemented, the Minister revealed that borrowing from the State Bank had been reduced. “We want to introduce an economic reforms process which includes revenue mobilisation, reduce the government size and decrease expenditures so that funds can be used for the welfare of the country,” he said.

The U.S. visit was based on a six point agenda where they explained to the the international community that Pakistan was passing through a difficult phase and the government had taken some tough decisions and was mobilising internal resources.

COMMENTS (2)

John | 13 years ago | Reply The finance minister and SBP governor never delivered on the promise made to IMF. I see he will be left to defend himself in this transaction also. He has to exercise his authority as finance mindless and should learn to say NO to government request for more money and persuade the NA to pass taxation reform.

Hedgefunder | 13 years ago | Reply Well this assistance has been agreed with the view to immediate crises this country is likely to face in very near future. The real reason that IMF has not put any demands, is purely due to their reluctance to assist any further!! They should not have to act like Headmasters dealing with unruly pupils on regular basis!!!! When ADB and WB actually provide these funds than mention it! The Honourable Minister has forgotten to mention, a little issue of LOC, prior to any further assistance from these organisation!!! The minister mentions reduction in Govt Expenditure, Revenue Mobilisation, to divert the funds for welfare purposes!!!! It would be nice if he laid out a clear plans and policy as to the above ! So once more its stories and hopes, nothing to get excited about!! The most important issue, that was not mentioned is Taxation or cutting Subsidies!!!!!! I suppose its not very politically correct!!!! For Pakistan! For the rest believe it when you see it!!!

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