ISLAMABAD: The Finance Division on Wednesday apprised the International Monetary Fund (IMF) on debt, external financing and rollover of around $12.5 billion from friendly countries, well-placed sources revealed to Business Recorder.
The visiting IMF team led by its mission chief Nathan Porter on Wednesday held sectoral meetings in a local hotel.
Sources said the IMF team visit was unusual and came months ahead of the first review of the $7 billion Extended Fund Facility (EFF) which is due in the first quarter of 2025.
The Finance Ministry and the IMF have not officially released details of the visit.
IMF team looks at fiscal performance
Officials said that the Fund was apprised that friendly countries would roll over $12.7 billion in the current fiscal year for Pakistan which includes; $5 billion from Saudi Arabia, $4 billion from China, $3 billion from UAE and $0.7 billion from Kuwait.
The Economic Affairs Division’sdata revealed that government has budgeted time deposits of $9 billion including $5 billion KSA time deposit and $4 billion SAFE China deposit for the current fiscal year, however, no money was received in the first quarter (July-September) under this head. There was also no mention of assistance from UAE. The IMF team will stay here until November 15 to discuss recent developments and programme performance to date, according to informed sources. This mission is not part of the first review under the extended fund facility (EFF), which will be no earlier than the first quarter of 2025, they said.
Federal Minister for Finance Muhammad Aurangzeb, last week, while admitting trust and credibility deficit with IMF due to rhetoric practice dilemma, said the Fund staff was visiting Pakistan for stock-taking of the $7 billion EFF programme.
The IMF has projected Pakistan’s gross external financing needs at $18.813 billion for the current fiscal year 2024-25 which is 4.7 percent of the GDP.
Pakistan’s external debt and liabilities (outstanding) reached $133.46 billion as of September 2024, reflecting an increase of $2.42 billion or 1.85 percent QoQ, the central bank data showed. On a yearly basis, the country’s external debt and liabilities went up by $3.7 billion or 2.85 percent as the figure stood at $129.76 billion at the end of Q1 fiscal year 2024.
The federal government’s total debt stock fell sharply by Rs792 billion in September 2024. The federal government’s total debt stocks, including both domestic and external obligations, were Rs70.362 trillion at the end of August 2024 and declined to Rs69.570 trillion in September 2024.
However, during the first quarter of this fiscal year 2024-25, the federal government’s total debt stocks increased by Rs656 billion to Rs69.570 trillion by the end of September 2024, up from Rs68.914 trillion at the end of June 2024.
Copyright Business Recorder, 2024
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