Pakistan likely to receive $2.77 billion from IMF on August 23, Shaukat Tarin says

The minsiter told a presser that the funds would directly be sent to the State Bank of Pakistan (SBP).

Tarin further said the international money lender had released a total of $650 billion for various countries.

He further said the 2021-22 budget spkeaks of a lot of positive steps that the government has taken for the welfare of the people of Pakistan.

"The government is expecting growth in the months to come." 

The Finance Minister said the IMF would directly transfer the amount to the State Bank of Pakistan (PBS), which he said would help further improve the country’s foreign exchange reserves, hence having a very good impact on the economy.

It was unconditional allocations from the IMF which he said would be used in a productivity way, he added.

He said Pakistan had been already working on a reform programme to bring stability and sustainability under the IMF programme.

He said that the measures taken by the government had been bearing fruits as was shown by the growth in revenue collection adding that the increase in revenues was indicative of economic growth.

The minister thanked the IMF for such measures to promote global liquidity, particularly in those countries which have been facing challenges amid Covid-19 pandemic.

The Board of Governors of the IMF had approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion (about SDR 456 billion) on August 2, 2021, to boost global liquidity.

The allocation would benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.
It would particularly help most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.

The minister said that the government would utilize the package given by the IMF in the productive sectors, so that the process of sustainable development could continue in the country.

He said that “our revenue collection in the first month of this year was very good, which is an indication of our better economic direction for the current Fiscal Year 2021-22.”

“We did not raise the power tariff on the IMF’s proposal, but the government has briefed them on our economic policy framework through these issues, which they agreed,” the minister said.

Shaukat said that the government wants to work with the IMF, it is necessary for our economic discipline.

He said the government wanted sustainable economic development in the country, which was not possible without increasing its revenue.

He said the ‘Kamyab Pakistan Program’ of the government would continue in any case as the government wanted to provide facilities to the poor in the country at all costs.

Shaukat said the country is facing food inflation due to import of food commodities, which the government is trying its best to control.

To a question, the minister said in order to curb food inflation, “we are building cold storage for perishable items.