Pakistan all set to seek $2b from friendly country

ISLAMABAD: With the general elections looming and the federal budget on the anvil, the government is all set to knock at the doors of friendly countries to rattle up two to three billion US dollars to meet international obligations, The News learnt.

The government has been forced to make us of the “begging bowl’ in view of the external obligations becoming due before June 2018, The News has learnt reliably.

Reliable sources confided this correspondent that initially two friendly countries have been contacted and response is very optimistic. This will almost be same arrangement as was managed during early days of Musharraf government, The News learnt.

As per arrangement being negotiated with friendly country - a trusted friend of Pakistan has assured of depositing about $2 billion in its account as safe deposit as was done in 2000. It means that this amount will reflect in Pakistan’s account to keep its image positive but Pakistan will not be able to use this amount, sources confided.

Negotiations with brotherly Muslim country having generous attitude towards Pakistan in past are also under way and there is expectation that a relief of about $1.5 billion will be provided to Pakistan. A sources without giving details of this arrangement stated this was also done in past, when after nuclear blast US had slapped sanctions on Pakistan and there was serious threat of default. At that time, in a desperate Nawaz Sharif government had frozen foreign currency accounts. This is chance this practice was also exercised during Nawaz Sharif government in 1999. At that time the brotherly country had requested not to make this arrangement public but Pakistan’s then secretary finance had immediately informed US about this arrangement, sources confided.

Sources in government told this correspondent that government is worried about the situation and negotiation at senior level officers were initiated a couple of weeks before. Prime Minister’s Adviser on Finance Miftah Ismail along with Prime Minister Shahid Khaqan visited the Muslim country. Later on officials of Finance Ministry also visited this country where negotiations went ahead smoothly. Before these tours COAS Qamar Bajwa had also visited this country. And luckily these negotiations are going positive rather have successfully concluded. Now final arrangements will be finalised by political leadership in next a couple of weeks, sources shared with The News. When questioned about political level, who will finalise the arrangement, sources added this is up to governments to decide at which level agreement will be done. But initially all dialogue are going positive and after assurance of success of these negotiation Pakistan has decided not to float bonds in international market, sources confided. When The News contacted Prime Minister’s Adviser on Finance Miftah Ismail, he refused to comment.