IMF package to bring $38bn from other creditors: Pakistan

Islamabad, July 5 (IANS) Pakistan has welcomed the $6 billion bailout package approved by the executive board of the International Monetary Fund (IMF), saying it would lead to inflows of $38 billion from other lenders in three years.

Speaking at a press conference on Thursday, the Prime Minister's Adviser on Finance and Revenue Abdul Hafeez Shaikh said the approval of 39-month reform programme by the IMF executive board without opposition from any member would provide stability to Pakistan, Dawn news reported.

"The board has given us trust to prove ourselves good partners and deliver on reform promises."

Shaikh said that the Asian Development Bank would disburse about $2.1 billion out of $3.4 billion agreed funds to Pakistan this year and the World Bank had also agreed to additional assistance purely for budgetary support.

Discussions with the World Bank were in progress for assistance only for the purpose of government expenditure, he added.

Giving a breakdown of $38 billion expected financial support from lenders other than IMF, the Adviser said about $8.7 billion funds had been lined up against project loans, $4.2 billion for programme loans, about $14 billion of rollover loans and up to $8 billion in commercial loans.

In a statement the IMF's new chief David Lipton hoped that Pakistan's reforms programme could bring economic stability and catalyse international financial support for the country, Dawn reported.

"The programme aims to tackle longstanding policy and structural weaknesses, restore macroeconomic stability, catalyse significant international financial support, and promote strong and sustainable growth in Pakistan," he said.

The IMF also released a brief assessment of the current economic situation in Pakistan, along with a summary of the IMF programme for the country, noting that the Pakistani economy was at a critical juncture.