The International Monetary Fund (IMF) Executive Board has made 4th and 5th review of Pakistan economy part of its board meeting scheduled for December 17 and notification thereof has been issued.
Sources said the 4th and 5th review of their national economy would be finalised in this crucial meeting and new time line and targets would be given to Pakistani economic team in respect of sectors where the Pakistan government had failed to meet benchmark.
Final decision will also be taken in the board meeting for disbursement of tranche of 1.10 billion dollars loan. A senior officer of Federal Board of Revenue (FBR) said the finance ministry was fully convinced that the IMF would release 4th and 5th tranche of loan which come to 1.10 billion dollars to Pakistan during the board’s meeting.
Pakistan foreign exchange reserves will swell beyond 15 billion dollars with the release of this tranche in the last week of this month. These reserves will suffice to enable the country to meet its imports targets for three months. As a consequence country will be capable to meet the criterion set out by World Bank for its cheap loans scheme DA-16. The interest rate on these loans has been fixed 2 percent and its repayment period ranges between 20 to 30 years.
These loans will help government to start work on major and mega projects including Diamar Bhasha dam and Wasoo dam. As soon as the decision comes in favour of Pakistan, several companies will get ready to make investment in privatization program of the country boosting our national economy.
Basically, borrow enough foreign exchange to make foreign exchange reserves look good so that more foreign money can be borrowed.
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