Islamabad: In a major development, the International Monetary Fund (IMF) confirmed to Pakistan that it received assurance from the Kingdom of Saudi Arabia regarding provision of additional $2 billion as a guarantee for revival of the stalled programme.
The sources said that the Saudi Arabia confirmed to the international lender that it was going to provide $2 billion to Pakistan.
The IMF’s confirmation gave a new life to the dying hopes for the stalled programme as both Islamabad and the international fund had been negotiating since the end of January this year. The IMF put many conditions including the guarantee from the friendly countries before Pakistan for revival of the programme.
At this Pakistan sought help of Saudi Arabia to deposit funds to help it mature the deal with the IMF for loan program.
Saudi Arabia on Wednesday hinted at provision of $2 billion funding to cash-strapped Pakistan for its ongoing talks with the IMF for the loan agreement.
After the positive response from the Saudi Arabia, the government authorities decided to speed up efforts to contact with the UAE leadership for their support in this regard.
The sources said that Finance Minister Ishaq Dar would visit UAE on April 10 to take the leadership into confidence.
The IMF had earlier objected to annual 900 billion rupees subsidies and asked the government to collect Rs850b petroleum levy.
The sources said that the government did not withdraw its fuel subsidy scheme announced earlier for the motorcyclists, rickshaw drivers and poor people despite that the international lender expressed serious concerns over the scheme.
The delay in the deal caused huge impact on the economy as the rupees’ nose dive still continued in the interbank market and it hit all time low of Rs287.85 against the US dollar.
Prime Minister Shehbaz Sharif while addressing on the floor of the house earlier this week said that the deal between Pakistan and IMF was near as both sides were holding talks just on one condition. He claimed that the deal would be finalized soon.
