Fifth instalment of the Stand-By Arrangement (SBA) worth $105 million to the International Monetary Fund (IMF) is due on October 1, 2012, it is learnt. Sources in the Ministry of Finance told Business Recorder on Monday that there is no concern regarding repayment of SBA as the State Bank of Pakistan has already made arrangements for timely payment of fifth instalment. Currently, Pakistan has sufficient foreign exchange reserves, which stood nearly $ 15 billion, they added.
They said total 12 instalments worth Special Drawing Rights (SDR) 1.726 billion, equal to some $ 2.58 billion, are due on account of repayment of SBA during fiscal year 2012-13 (FY13). Out of these 12, one instalment has already been paid in first quarter and now the second instalment is schedule for first week of next month.
As per payment schedule already agreed between Pakistan and IMF, cumulatively fifth and second instalment of this fiscal year is schedule on October 1, 2012. "Pakistan is required to pay SDR 71.067 million (some $105 million) to the IMF on account of fifth repayment of SBA programme," they added. Cumulatively, fourth and first instalment worth SDR 258.4 million or $397 million of SBA instalment was paid by Pakistan to the IMF on August 24, 2012.
According to sources in ministry of finance despite several challenges on domestic and international front, the country is all set to pay $105 million to the IMF on account of SBA repayment as per schedule and like previous practice this instalment will be paid from the foreign currency reserves held by State Bank of Pakistan.
"Fifth tranche will be alone the principle amount of the loan, while interest on the SBA programme is being paid on quarterly basis by the central bank," they said. With payment of fifth instalment in October, sixth and seven repayments are also schedule in second quarter. As per schedule, the country has to pay SDR 95.837 million to the IMF on November 8 and another amount of SDR 258.425 million on November 28, 2012.
Since June, the country''s foreign exchange reserves have been depleting gradually falling by $370 million to $14.86 billion as on September 14, 2012. The decline has been witnessed in SBP''s reserves, which fell to $10.383 billion from $10.801 billion. While reserve held by banks rose to $4.48 billion. The payment of $1.118 billion by the US on account of Coalition Support Fund (CSF) has strengthened the country''s foreign exchange reserves. However, currently Pakistan is completely relying on the home remittances sent by overseas Pakistanis as exports are already on decline. Pakistan re-joined IMF programme in November 2008 to avoid default as the country''s reserves had reached less than $6 billion in October 2008 followed by higher current account deficit.