The current projections suggest that with the policies outlined in the memorandum, the financing needs for the next 12 months (the program period) will amount to $27.5 billion. This has been stated in the "First Review under the Extended Arrangement under the Extended Fund Facility and Request for Modification of Performance Criteria" released here Monday.
Pakistan has informed IMF that in support of this program and its long-term debt sustainability, it has secured long-term financing from international partners. The current projections suggest that with the policies outlined in this memorandum, the financing needs for the next 12 months (the program period) will amount to $27.5 billion.
To close this gap the authorities have secured financing commitments from bilateral and multilateral partners as follows: China, $5.2 billion, Saudi Arabia, $6.2 billion, UAE, $1 billion, the World Bank, $1.7 billion, the Asian Development Bank, $2.5 billion, and the Islamic Development Bank, $1 billion. In line with program financing commitments, key bilateral creditors have maintained their exposure to Pakistan by extending new financing in the amount of China, $700 million and Saudi Arabia, $3 billion, fully covering their matured loans.
The authorities have remained engaged with external creditors to secure financing consistent with the program debt sustainability objectives. The oil facility with Saudi Arabia (worth $3.2 billion) was activated in August and is providing support to the balance of payments. Similarly, the authorities have secured the roll-over of matured obligations to China Development Bank in September ($700 million). The authorities have engaged with Saudi Arabia, which refinanced BOP support loans that matured in November ($1 billion). Official lenders are also advancing their disbursement plans. The ADB is planning to approve in December a new Special Policy-Based Loan of $1 billion, which would further strengthen the BOP.
The floor on net international reserves (NIR) will be adjusted upward (downward) by the cumulative excess (shortfall) of the actual stock of NIR at end-June 2019 relative to the projected amount. The stock of NIR of SBP at end-June 2019 is projected at negative US$17,743 million. The floor on NIR will be adjusted upward (downward) by the cumulative excess (shortfall) of the use by the SBP of the foreign assets related to commercial consortium loan to make import payments over (under) the amounts expected under the baseline projections.
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