The government would borrow $1 billion from International Islamic Trade Finance Corporation (ITFC) to ensure continued stability in the country''s balance of payment (BoP) position. Spokesperson and Advisor to Finance Ministry, Dr Khaqan Hassan Najeeb stated that $1 billion have been arranged from the ITFC to offset any impact of delay or non-availability of $3 billion by the UAE. The government has worked to ensure $1 billion from the ITFC which will be utilised in this fiscal year.
The efforts are also being made to reduce the current account deficit which narrowed by $356 million in February 2019, reflecting a reduction of 59 percent over $873 million in January 2019 and 72 percent decline over $1,218 million in February 2018. These measures taken by the government have started yielding results on external account deficit, he added.
The advisor further stated that $3.2 billion Saudi oil facility is being operationalised. Additionally, he stated that adequate financing is in place for current fiscal year and beyond. The government continues to pursue a multi-pronged strategy to ensure continued stability in the country''s BoP position. The strategy includes attracting more foreign direct investment, sale of assets and bilateral and multilateral flows.
He further stated that Pakistan Banao Certificate has also been launched, a first-ever retail offering to Pakistanis abroad. The government is also working on diversifying its investor base through issuance of Panda Bond.