Pakistan to pay back $3 bn loan to IMF this year
30 September, 2013
ISLAMABAD: The total Pakistan's debt stands at Rs. 14.5 trillion, including $66 billion foreign loan and sovereign guarantees. The country also needs to pay back $3 billion loan to the IMF this year. The Zardari government took loans that no government did ever before.
The last government took from IMF $11.50 billion loan but failed to meet the IMF conditions, and as a result the monetary institution refused to release more loans.However, incumbent Finance Minister Ishaq Dar succeeded in getting consent of the IMF for the release of $5.3 billion loan, assuring it that its conditions would be met.
The IMF went a step furtherand agreed to issue $6.64 loan, and its first installment worth $540 million was released on September 6.Many international monitory bodies like the World Bank (WB) and Asian Development Bank (ADB) will now aid Pakistan since they know that IMF sees it as a country that can fulfill its obligations. Overseas Investors Chamber has increased Pakistan's ratting from 32 to 2.