Pakistan receives $500 million from ADB

Shiraz ShaikhWeb Editor

17th Aug, 2019. 06:55 pm

Pakistan has received $500 million from Asian Development Bank (ADB).

According to State Bank of Pakistan the central reserves have received $530 million after which State Bank reserves have increased from $8 billion.

Commercial banks currently have total reserves of $7 billion.

Total foreign currency reserves have increased to $15 billion currently in the country.

Previously, Pakistan received the $1 billion installments from the International Monetary Fund (IMF) under the just concluded $6bn bailout package.

According to the details, beginning this year Pakistan will receive a total of $6bn in about three years ending 2021-22 from the IMF, while it has to repay about $4.355bn in four years ending 2022-23, showing net receipts of $1.65bn.

Earlier, speaking at a news conference on Monday, Ernesto Ramirez-Rigo, the Fund’s mission chief for Pakistan, said the bailout package for Pakistan was “aimed at stability of the nation’s economy and institutions”.

“Pakistan has paid attention to economic reforms,” he said, adding that the “dollar exchange rate in the country was nearer to the reality. It was necessary to bump up tax collection in order to stabilize the economy.”

According to the conditions set by the Fund, it was clear that Pakistan would implement economic discipline, Rigo mentioned.

“It was the need of the time that the country reduced tax leeways and concessions,” he added.

Rigo went on to explain that the provinces needed to play their role in achieving the Rs5.5 trillion tax target as 57 percent of the tax revenue was provided to the provinces. It was in this regard that the center and provinces were required to collaboratively make efforts to achieve the tax target.

The IMF’s executive board on Wednesday last had approved a three-year bailout package worth $6 billion to Pakistan.

The three-year agreement approved by the IMF board last week, country’s 13th bailout since the late 1980s, has seen a sharp drop in the value of the rupee currency after the central bank agreed to a “flexible, market-determined exchange rate”.

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