Balance of payments to remain under pressure due to repayments to IMF in FY 12-13
The government has admitted that Balance of payments will remain under pressure in next financial year 2012-13 due to external debt repayments including repayments to International Monetary Fund(IMF),say sources. Sources familure with the development told “Online” here on Friday that declining trend of export quantum, rising international oil prices and weak financial inflows will also lead the country’s balance of payments situation under pressure.
The overall balance is likely to be in deficit by $ 1.7 billion in 2012-13 and gross aid disbursements during 2012-13 are expected to remain at the level of $ 2.7 billion against $ 2.3 billion estimated for 2011-12.The current account is targeted to be in deficit by $ 4.8 billion as against a deficit of $ 4.0 billion estimated for current financial year ending June 30, 2012.
On account of the energy shortages and security situation, exports for 2012-13 are projected to grow by 4 per cent to $ 25.8 billion from $ 24.8 billion estimated for 2011-12. Imports during 2012-13 are projected to increase by 6.8 per cent to$ 42.9 billion from $ 40.2 billion estimated for 2011-12. Hence, the trade accounts is Projected to be in deficit by $ 17.1 billion in 2012-13. Pakistan had already repaid $1.2 billion to the International Monetary Fund in current financial year 2012-13 from foreign currency reserves held by the State Bank of Pakistan (SBP).
According to the repayment schedule agreed between Pakistan and IMF, Pakistan will repay its obtain $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two tranches of $3.7 billion could not pay to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco.
Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011.
