Debt Policy Statement 2010-11: IMF debt aggregated to $8.1 billion at fiscal year 2010-end

The International Monetary Fund (IMF) debt aggregated to $8.1 billion of which Special Drawing Rights (SDR) 713.35 million or $1.055 billion accrued to the federal government of Pakistan while the outstanding stock of Private Non-Guaranteed Debt stands at $3.167 million at the end of FY10, reveals Pakistan Debt Policy Statement 2010-11.
The remaining IMF funds were recorded on the State Bank of Pakistan (SBP) books to strengthen the foreign exchange reserves of the country. According to policy statement, during 2009-10, three tranches were received under the IMF programme. In order to fill the financing gap due to non-materialisation of Tokyo pledges, the IMF authorities made available a bridge financing facility to the government.
The third and fourth disbursed tranches contained this element of budgetary support as opposed to the strictly BOP support nature of previous tranches. Since the government of Pakistan entered a Stand-by Arrangement in early 2008, debt contracted under the IMF has become a notable part of External Debt and Liabilities (EDL). In FY08, the IMF debt was $1.3 billion that increased by almost three times in FY 09 to reach $5.1 billion.
The outstanding stock of Private Non-Guaranteed Debt declined by 5.3 percent to end the fiscal year 2009-10 at $3.167 million. According to Pakistan Debt Policy Statement 2010-11, slower economic activity, prolonged power outages and deteriorating security situation held back the corporate sector to embark upon any fresh investment and hence, shrinkage in financing needs to be met through external sources was apparent in the form of diminishing private sector debt.