Bridging the gap: Govt looking for $1.5b loan from the UAE

Loan to help in budget financing for the next financial year.


Irshad Ansari May 21, 2011

ISLAMABAD:


The federal government has decided to take a $1.5b loan at 4.5 per cent from the Gulf market to fulfil its immediate needs. Sources in the ministry of finance confirmed to The Express Tribune that some of the members of the 20-member delegation that visited Dubai recently for talks with the International Monitory Fund (IMF ) team also met key persons to discuss the possibilities of a loan.


The loan will help keep the fiscal deficit at the level agreed to with the IMF. The loan will also be useful in budget-making for the next financial year because if Pakistan fulfills the IMF conditions before the next financial review due in July, it will not only be successful in getting its tranche of $1.7b from the IMF, but it will also be able to get $1b released that is stuck with the World Bank and the Asian Development Bank.

The sources pointed out that the IMF’s stance during the Dubai talks was that Pakistan’s budget deficit for the current fiscal year 2010-11 should remain at about 6.5 per cent while Pakistani side insisted that since according to the latest statistics the deficit was equal to 5 per cent of the GDP, Pakistan will try to curtail it with in this limit. According to the sources, the IMF team will wait until July to see if Pakistan’s claims are proved to be true or not.



Published in The Express Tribune, May 22nd, 2011.

COMMENTS (7)

Hedgefunder | 10 years ago | Reply @Faisal: Etisalet is a private company not owned by Government of the emirates! Hence answer to your question!! Do you really think that the Pak port is direct competiton to Dubai?? Wake up man!! Which world do you live in?? it is better to snap out of it, and taste the bitter medicine too!!!!
Faisal | 10 years ago | Reply GOP should 1st try to get the balance $ 800 million from Etisalat against PTCL sale. Otherwise they need to kick them out if they are not willing to pay. UAE is funding terrorism in Pakistan specially in Balochistan to destablize the Pakistan. Gwadar is biggest threat to the economy of port of Dubai as it will lose its importance once Gwadar port is operational. Our government should stop this begging and try to improve own sources of revenue generation. and all the corroupt people in the government should be sent home.
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