Pakistan to get $1.1bn from IMF in December: Dar

Finance minister says country has already spent Rs 46 billion for relief of IDPs from Operation Zarb-e-Azb

WASHINGTON: Finance Minister Ishaq Dar sounded confident on simultaneous release of two IMF tranches, totaling $1.1 billion in December, after an agreement was reached with the Fund on combining the fourth and fifth reviews of the country's economic performance.

The IMF has said Pakistan's economic reforms are on track and that the executive board would meet in early December for approval of the combined release.

Wrapping up a hectically scheduled visit, the finance minister told journalists that he had a series of discussions with the financial institutions including the World Bank, OPIC, IMF and EXIM Bank as well as with finance leaders from other countries including Britain, China and Iran to discuss cooperation in areas of trade and economy.

The Pakistani delegates had 44 meetings during the IMF-World annual autumn meetings. Dar also represented Pakistan at US-Pakistan Economic and Finance Working Group meeting, held under the Strategic Dialogue, and attended a major  conference on $ 14 billion Diamer Basha Dam, saying it generated interest among investors.

Pakistan will build both Diamer Basha and Dasu dams as part of efforts to meet generate energy and enhance water storage capacity and avoid flash flooding. During his stay in Washington DC, Dar also met with US Trade Representative Michael Froman, USAID Chief, US Special Representative for Pakistan and Afghanistan Dan Feldman, and US deputy nationals security adviser.

He also discussed cooperation with Deputy Secretary William J Burns and Under Secretary of State for Economic Growth, Energy, and the Environment Catherine Novelli. Another milestone achieved during the visit was Pakistan-Afghanistan transit fee accord at 1.25 cent per KW.

This accord, he said, will help accelerate work on bringing 1000 MW of Central Asian energy to Pakistan via Afghanistan under CASA 1000 project.

"We are working for our country's development and trade expansion, and do not rely on aid,” Dar said, seated beside Pakistan's Ambassador to the United States Jalil Abbas Jilani and Finance Secretary Dr Waqar Masood Khan.

He said the country has already spent a huge amount of Rs 46 billion for relief of internally displaced persons from Operation Zarb-e-Azb, and the flood victims. He said these two expenses are massive, with the flood relief and recovery cost likely to be Rs80 billion.

Further, he added, major funds would be needed for reconstruction in North Waziristan once operation ends. Pakistan, he said, has not made a formal appeal for international help to meet the gigantic expenses. However, Pakistan held a meeting with major donors in Islamabad recently to have an assessment for recovery and damage costs.

In response to a question, the finance minister said the US has clarified that recent drone strikes took place on the Afghan territory and not on Pakistani side of the border as reported incorrectly in the media.     Responding to another question, the finance minister said Pakistan wants to resolve tensions along Kashmir Line of Control peacefully, but if something is imposed on the country, its armed forces are capable of dealing with any eventuality.