By By Khalid Mustafa
Pakistan after exhausting its endeavour to get maximum relief from Saudi Arabia, has also decided to formally move the International Monetary Fund seeking 500 per cent of its quota that stands at $1.5 billion to bail out its ailing economy, a senior government official told The News.
Earlier the top leadership of the country had decided to formally place the request with IMF after the Friends of Pakistan’s meeting that is to be held in Dubai on November 17, but in the new scenario particularly after the visit of President Asif Ali Zardari to Saudi Arabia, the government has made up its mind to formally move the IMF sometime between November 10 to November 15 to avoid any default-like situation, as net foreign reserves of State Bank of Pakistan have reduced to $3.4 billion as on November 4.
It is pertinent to mention the IMF executive board meeting is to start on November 10 and Pakistan cannot afford to lose opportunity of seeking IMF’s loan.
According to the sources, during the recent one-on-one meeting between President of Pakistan and King of Saudi Arabia, the Kingdom promised the six month oil facility on deferred payment which would be announced in the Friends of Pakistan’s meeting.
“However, according to some informal communications with Friends of Pakistan so far made, the message has been given to Pakistan that Islamabad should first formally move the IMF, then they would come up with formal commitments in the meeting scheduled for November 17 in Dubai,” the official said.
Pakistan ailing economy, with fast dwindling net foreign reserves of State bank of Pakistan that have reduced to $3.4 billion as on November 4, is left with no option but to receive the IMF’s soft terms loan.
The official said as on November 4, the foreign reserves stood at $6.7 billion out of which State Bank of Pakistan possessed $4.199 billion including CRR (cash reserve requirement) deposits amounting to $729.6 million, while the commercial banks had $3.2 billion. “If the CRR deposits are excluded, the net foreign reserves that State bank of Pakistan has, stand at $3.4 billion.”