Saudi Arabia has finalised arrangements to disburse $300 million, within a couple of days, out of total $700 million pledged during the Tokyo donor conference, Business Recorder has learnt. Out of the $300 million, $200 million has been earmarked for budgetary support and $100 million for import of urea, sources said.
The Economic Co-ordination Committee (ECC) of the Cabinet on Tuesday gave its approval to import 400,000 tons urea. Twenty donors had pledged $5.616 billion in the Tokyo conference that included additional pledges of $3.5 billion and the remaining amount was assistance already committed by bilaterals, according to Finance Ministry presentation given to National Assembly standing committee recently. In addition, around $1.215 billion would have 5 percent interest rate applicable, while $2.394 billion has been pledged under soft loan, and $1.805 billion would be grants.
Germany, Iran, Kuwait, New Zealand, Spain and the International Development Bank (IDB) have not given any timeframe for pledged disbursement and therefore it is uncertain when these pledges will materialise. Sources said that the government is being proactive in translating these pledges into commitment as soon as possible however it is experiencing some difficulties. Analysts say that these difficulties are linked to the donor perception that governance remains weak in Pakistan.
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