Tag Archives: Pakistan loans

Pakistan will receive $ 1.4 billion from the IMF next week, to fight COVID-19 | Instant News


  • Pakistan has asked for 1.4 billion dollars under RFI.
  • It can be mentioned here that a $ 1.4 billion loan to Pakistan from the IMF is in addition to the country’s $ 6 billion bailout package, the country signed with the IMF last year.

Pakistan will receive $ 1.4 billion from the International Monetary Fund (IMF) next week, under the Rapid Financing Instrument (RFI) to deal with economic turmoil after coronavirus.

On March 29, 2020, the IMF Managing Director announced that the Pakistani government had requested 1.4 billion US dollars under the RFI and stated that the Fund team was working quickly to respond to this request so that the proposal could be considered by the IMF Executive. Board as soon as possible.

“We have been working with Pakistani authorities since the request was submitted … The $ 1.4 billion disbursement is scheduled to take place next week,” Teresa Daban Sanchez, IMF Resident Representative in Pakistan, was quoted as saying. Arabic News.

It must be mentioned here that a $ 1.4 billion loan to Pakistan from the IMF is in addition to the country’s $ 6 billion bailout package, the country signed with the IMF last year.

“This is the $ 1.4 billion that we have requested will be a low-cost and fast loan,” said Financial Advisor Abdul Hafeez Shaikh. He said Pakistan wanted the IMF to consider lending separately for funds that had been set aside for economic losses worldwide due to the pandemic.

“We want to secure funds for us before the losses are evaluated,” he said.

Last month, the State Bank of Pakistan cut its benchmark interest rate, lowered it by 150 basis points to 11 percent, and announced a package of measures to support the economy and poorer workers affected by the pandemic. The country has reported more than 4000 people infected by the virus, which so far has killed 58 people.

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Pakistan will launch diplomatic steps to reschedule debt amid the corona crisis | Instant News


The decision came to offset the negative impact of a global pandemic on an already struggling economy

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Foreign Minister Shah Mehmood Qureshi. PHOTO: EXPRESS

ISLAMABAD: Pakistan has decided to launch a diplomatic initiative, seeking to reschedule bilateral and multilateral loans to offset the negative impact of the corona virus pandemic on its economy, officials said on Monday after a high-level huddle was held at the Foreign Office in Islamabad.

Foreign Minister Shah Mehmood Qureshi chaired the meeting attended by Prime Minister of Finance Adviser Dr. Abdul Hafiz Shaikh, Minister of Planning, Development and Special Initiative Asad Umar and Foreign Minister Sohail Mahmood. Pakistan’s Permanent Representatives to the United Nations in New York and Geneva also joined the session via video link.

The meeting discussed the negative implications of COVID-19 on the economy. FM Qureshi noted that because of the pandemic, Pakistan’s exports had declined on one side and economic activity in the country had stalled because it was locked on the other side.

The national count of patients with highly infectious diseases has surged past 3,500 with at least 50 deaths.

Imran urges the world to consider writing off loans to help deal with coronavirus

This, according to the foreign minister, made it difficult for developing countries like Pakistan to carry out their business as usual.

“For this reason Prime Minister Imran Khan came up with the idea of ​​rescheduling the loans of developing and poor countries,” Qyresgu was quoted as saying in a FO statement.

He explained the meeting about the steps taken by the State Department to ensure that developed countries and multilateral organizations pay attention to these ideas.

Qureshi spoke with foreign ministers from rich countries over the past few weeks to seek their support for loan restructuring.

COVID-19: Pakistan, World Bank in talks for a $ 200 million loan

It was decided at the meeting that joint efforts would be made to convince powerful countries for this initiative.

To this end, Pakistan’s permanent representation to the United Nations in New York and Geneva has been directed to launch diplomatic efforts while the foreign minister will continue to reach out to his colleagues in the world capital.

The coronavirus outbreak began to have an impact on the Pakistani economy, which struggled even before the pandemic.

The government’s own assessment shows that the country’s economy could suffer losses between Rs2 to Rs2.5 trillion and lose 18.5 million jobs if the lockup lasts for three months.

Independent economists put losses on the economy between Rs890 billion to Rs1,6 trillion.

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