Pakistan to receive $2.77 bln from IMF on Aug 23

ISLAMABAD, Aug 12 (APP):Federal Minister for Finance and Revenue, Shaukat Tarin said Thursday that Pakistan would get $2.77 billion on August 23 from International Monetary Fund’s (IMF) general allocations of $ 650 billion that had been approved to boost global liquidity amid the coronavirus pandemic across the globe.

Addressing a press conference here, the Finance Minister said that 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.

The minister said that it was unconditional allocations from the IMF which he said would be used in a productivity way.

He said that 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.

It is pertinent to mention here that the Board of Governors of the IMF had approved a general allocation of Special Drawing Rights (SDRs) equivalent to US$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 Tareen said that the government wants to work with the IMF, it is necessary for our economic discipline.

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

He said that 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.

In response to a question, he said that in order to curb food inflation, “we are building cold storage for perishable items.

At the same time, ‘Food Strategic Reserves’ will be created to prevent cartelization and decrease the inflation in the country, he said.

He said that the government wants to empower the Competition Commission of Pakistan (CCP) to end cartelization in the country.