–China will deposit $2bn to help Pakistan in its balance of payment crisis
KARACHI: Finance Minister Asad Umar on Monday said that the details of the Chinese financial package have been formally submitted to the International Monetary Fund (IMF).
Talking to journalists, the finance minister also explained the State Bank of Pakistan’s monetary and fiscal policies and stressed that the “supplementary budget will help improve the fiscal deficit”.
Moreover, Umar assured that the Pakistan Tehreek-e-Insaf (PTI) government is working towards the betterment of the country and taking various measures to help it steer out of economic crisis.
He said that “the government’s priority is to build homes for the people, to undertake projects and maximise exports,” adding that Pakistan should now “widen its tax net and put a restriction on tax evaders”.
Addressing concerns raised by the United States, Umar maintained that Pakistan has responded to all their queries. “There is nothing we need to conceal regarding the Chinese package,” he said.
Moreover, media reports claimed that “China will deposit $2 billion to help Pakistan in its balance of payment crisis,” adding that the money is “likely to be received in a single tranche this month”.
Similarly, the United Arab Emirates (UAE) is also expected to provide a “similar package” to Pakistan including the loan and deferred payment facility for the oil.
Asad Umar, in a recent interview, had said that “Pakistan’s balance of payment crisis comes to an end,” adding that “China and UAE are expected to extend financial support to Pakistan”.
Saudi Arabia had announced a package for Pakistan after Prime Minister Imran Khan’s visit to the Kingdom.
It has been reported that the central bank has so far received $2bn from Saudi Arabia and the next installment is likely to be received in January.
Earlier, IMF had asked “Pakistan to enhance the Federal Board of Revenue’s (FBR) tax collection target by over Rs300 billion to Rs4.7 trillion for this fiscal year,” according to Finance Ministry officials.
It was reported that Pakistan had invited IMF to review the “possibility of signing an extended fund facility aimed at bridging $12 billion financing gap,” during the current fiscal year.
