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| India-Pakistan | |
| Pakistan to approach friendly countries for aid | |
| 2008-04-15 | |
Pakistan has decided to approach friendly countries such as China, Saudi Arabia and others to generate $500 million to $1 billion in the current fiscal year, in a bid to mitigate financial woes owing to rising petroleum, wheat and palm oil prices.
The finance ministry has projected to generate additional $2.5 billion till June 30, in order to control the dwindling foreign currency reserves that have already fallen to around $13 billion. The foreign currency reserves of various banks are around $2.5 billion and the remaining precious reserves are with the central bank. “Islamabad is going to launch convertible bonds by offering OGDC shares in the international market to generate approximately $1 billion, as well as issuing GDRs of National Bank of Pakistan to generate $500 million before June 30, 2008,” official sources in the finance ministry confirmed while talking to The News here on Monday. To bridge the remaining gap of $1 billion out of the total projected additional inflows of $2.5 billion, sources said that the coalition government is set to approach China, Saudi Arabia and other friendly states to achieve its desired objective in the remaining two and a half months. “President Musharraf is currently visiting China where he discussed the possibility of bilateral loan on soft terms and conditions with Beijing authorities,” the sources said. Musharraf’s six-day visit to China ending April 15 is his first trip abroad since a new government packed with opponents was sworn in last month. China’s foreign currency reserves are over $1500 billion and Beijing is among the capital exporting countries. China may provide $500 million in loans to Islamabad in order to remove the financial woes due to higher POL and commodities prices. “Pakistan’s oil import bill has surged by $3 billion so far against its budgetary estimates, and wheat import also burdened the economy by $1 billion,” sources maintained. Sources added that Finance Minister Ishaq Dar would give final touches to the proposed strategy for seeking financial assistance. Assistance from Saudi Arabia would come in the shape of deferred oil payment and in various forms from other friendly countries in the next two months, to accomplish the required homework before the scheduling of any high-level visit of leaders. The sources also said that Pakistan Development Forum (PDF) is likely to be held in May 2008. Representatives of bilateral and multilateral donors will participate in this upcoming event to be held in Islamabad, to give a detailed input to creditors for generating the desired amount in a short span of time. Answering a query about the Finance Ministry’s expected inflows from the multilateral creditors in the remaining months of the current fiscal year, sources said that Islamabad would get assistance from the World Bank and Asian Development Bank as per schedule. However, additional funding on immediate basis could not be arranged from multilateral creditors. Although, the official said that there is a possibility to arrange commodities related financing from the Islamic Development Bank (IDB). “We will present all the proposals before the Finance Minister Ishaq Dar, who will give his final approval about the future course of action for generating $2.5 billion additional financing,” a high-level official in the Economic Affairs Division (EAD) said. He added that the finance minister would decide this crucial issue after his return from attending the WB, IMF annual spring meeting currently underway in Washington, USA. | |
| Posted by:john frum |
| #4 didn't know Pakistan built any cars at all, much less convertibles.... |
| Posted by: USN,Ret. 2008-04-15 13:51 |
| #3 Do Pakistan have any friendly countries left bar Saudi???? |
| Posted by: Paul 2008-04-15 08:12 |
| #2 “Islamabad is going to launch convertible bonds by offering OGDC shares in the international market to generate approximately $1 billion," Bet the whole world's lining up for these 'investment grade' securities as we speak... |
| Posted by: Raj 2008-04-15 07:42 |
| #1 Expense vouchers to Uncle Sam for a few more fake offensives against the taliban ought to cover the shortfall. |
| Posted by: ed 2008-04-15 07:40 |