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Home »Money and Banking » Pakistan » Non-availability of IMF LoC: no World Bank, ADB programme lending for three years

  • News Desk
  • Feb 28th, 2012
  • Comments Off on Non-availability of IMF LoC: no World Bank, ADB programme lending for three years
Non-availability of Letter of Comfort (LoC) from the International Monetary Fund (IMF) deprived the country of programme lending from the World Bank and the Asian Development Bank (ADB) for the last 2-3 years. Dr Waqar Masood, Secretary Economic Affairs Division (EAD), while briefing the National Assembly Standing Committee on EAD chaired by Malak Azmat Khan, MNA, said the total domestic borrowing has exceeded foreign debt.

"Our total income is $240 billion and we have to repay $125-130 billion," the secretary added. He said Pakistan received foreign assistance of $1.2 billion from July to December 2011 against the estimates of $3.7 billion made in the federal budget for FY12.

"Out of total foreign assistance of $1.2 billion received during the first six months of the current fiscal year, $552.5 million were received from the bilateral donors while $635 million from the multilateral donors. During the same period last fiscal year total foreign assistance received from July-December 2010 stood at $679.2 million, which shows that the assistance received this year is more than the last year," Secretary EAD added.

During first six months of 2011-12, the Asian Development Bank (ADB) disbursed $237 million, the World Bank $229 million, China $323 million while Japan released $101 million. While responding to an abjection raised by Sufyan Yusaf, MNA, the Secretary claimed that the assistance received from the US from July -December 2011 is very less than the assistance received during the same period last year. "From July-December 2011, the US released $40.9 million, while it disbursed $125.8 million during the first six months of the last fiscal year," he added.

From July-December 2011, Australia released $0.1 million, France $1.6 million, Germany $19.7 million, Korea $101.2 million, Saudi Arabia $49.7 million, and the UK 4 5.1 million. Pakistan is going to become the world''s largest recipient of the UK assistance as it was going to enter a programme of 1.3 billion pounds for the next five years.

Secretary EAD said since 2005, Saudi Arabia disbursed $442 million against the pledged amount of $1.1 billion. Kuwait disbursed $108 million against the pledged $247 million. South Korea disbursed $18 million against $261 million pledged amount. Turkey $16 million against the pledged $100 million. Iran disbursed nothing, but pledged $330 million. He said the EAD has not given any money to Sui Northern Gas Pipelines (SNGPL) for last 10 years, while Nadra has been provided $10 million grant by the World Bank under Citizen''s Damage Compensation Programme (CDCP).

Copyright Business Recorder, 2012


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