Open

Coming up

Don't miss

Replay


LATEST SHOWS

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

ENCORE!

Haute Couture: the hand-stitched clothing made in Paris that sells for the price of small yachts

Read more

IN THE PAPERS

'Caution, another Cast Lead lies ahead'

Read more

BUSINESS DAILY

Rising into the ranks of Haute Couture

Read more

DEBATE

Gaza: How to Stop the Spiral? Israel Readies For Ground Offensive

Read more

DEBATE

Gaza: How to Stop the Spiral? Israel Readies For Ground Offensive (part 2)

Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

  • Kurdish forces take over two oilfields in northern Iraq

    Read more

  • Are French high school students getting smarter?

    Read more

  • Italy’s Trentin wins seventh stage of Tour de France

    Read more

  • Disgraced Suarez leaves Liverpool for Barcelona

    Read more

  • In pictures: Chanel, Dior and so much more at the Paris couture shows

    Read more

  • French ‘Civic Service’ eyes massive expansion amid huge demand

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • In Pictures: Petrol station hit by Hamas rockets

    Read more

  • Manhunt as FIFA partner flees Rio hotel to avoid arrest

    Read more

  • Video: Living in Tel Aviv, under threat of rocket attack

    Read more

  • Video: Palestinians fear full Israeli military offensive in Gaza

    Read more

  • Ukrainian forces close in on Donetsk

    Read more

Business

IMF boosts loan to Pakistan by 3.2 billion dollars

©

Text by NEWS WIRES

Latest update : 2009-08-08

The International Monetary Fund has said it approved an additional 3.2 billion dollar loan to Pakistan after the country asked for more help to weather the global economic crisis. The IMF also agreed to extend the loan to the end of 2010.

AFP - The International Monetary Fund on Friday said it had approved an additional 3.2 billion dollar loan to Pakistan after the country asked for more help to weather the global economic crisis.
  
The IMF said the extra funds for the loan program to Pakistan would "help the country address increased balance of payment needs" and increase the total loan to 11.3 billion dollars.
  
The IMF executive board also approved an extension of the loan to the end of 2010, an additional three months, and the payment of a third installment of the loan of 1.2 billion dollars, the multilateral institution said in a statement.
  
Four billion dollars had already been disbursed from the 7.6 billion dollar Stand-By Arrangement agreed in November to bolster the South Asian nation amid the worst global contraction since the Great Depression.
  
Pakistan approached the IMF last year for a rescue package as it grappled with a 30-year high inflation rate and fast-depleting reserves that were barely enough to cover nine weeks of import bills.
  
The board decisions were made after IMF completed its second review of the country's progress in addressing its heightened balance of payments needs.
  
"The macroeconomic outlook for 2009/10 remains difficult, and the external position is subject to considerable downside risks," said Murilo Portugal, IMF deputy managing director, in the statement.
  
The extra IMF aid "will help mitigate these risks and enable the implementation of the government’s fiscal program; however, this financing is temporary and should be used as a bridge until the revenue reforms bear fruit."
  
The board also agreed that part of the additional funding "could be used to finance priority spending until the disbursements of donor support pledged for 2009-2010 are received."
  
IMF mission chief to Pakistan, Adnan Mazarei, told reporters in a conference call that the funds would help the government build the social safety net and provide assistance to internally displaced persons in the violence-riddled country.
  
Mazarei said the funds were intended as "bridge financing" until the Friends of Pakistan donors honor their pledges from a Tokyo meeting in April, which he said was roughly 5.7 billion dollars over two to three years.
  
"Here I must stress that because IMF financing for the budget is temporary, it is very critical that donors deliver their pledged support without any delay," he added.
  
The IMF said the board had approved Pakistan's request for waivers for failing to meet certain criteria, including a budget deficit that is 0.9 percent of economic output and continued weakness in banking supervision and tax policy.
  
"Pakistan’s economy has continued to stabilize," Portugal said.
  
He welcomed Pakistan's progress in reforms in the financial sector and the foreign exchange market and in strengthening the social safety net.
  
"These achievements are appreciable, considering the security developments that resulted among others in the large number of internally displaced persons, the global economic recession, and the difficult domestic political environment," Portugal said.

Date created : 2009-08-08

Comments

COMMENT(S)