Islamabad (Mehtab Haider) Saudi Arabia and the United Arab Emirates have extended a one-year extension of $ 5 billion in deposits to help Pakistan recover from the economic crisis.news world ahmed
The News has learned that after extending the history of deposits of $ 5 billion from Saudi Arabia and the UAE, Pakistani authorities will make a new request for converting deposits from Riyadh and Abu Dhabi into $ 6 billion of IMF. Under the Extender Fund Facility (EFF), Pakistan was obligated to extend deposits and bilateral loans to Saudi Arabia, UAE, China and other major lending countries, if $ 5 billion were converted into bilateral government debt. If so, Pakistan will get Rs 750 billion to deal with the growing budget deficit of the current fiscal year 2019-20.current world news
Under the terms of the IFF, Pakistan received an extension of $ 5 billion in deposits from Saudi Arabia and the United Arab Emirates, and now the money will be kept in the State Bank for one year.
The top officer has confirmed to The News that Pakistan is now looking at alternatives to convert these deposits into debt.current world news
When contacted, the Special Secretary Ministry of Finance and Spokesman Omar Hamid Khan said, "We have not yet requested Saudi Arabia to convert the deposits into debt, we can and should not, however." Has confirmed a one-year extension of deposits, even though the Special Secretary of the Treasury has hesitated to change the deposit loan, but official sources have confirmed to The News that Saudi Arabia bilateral deposits of $ 3 billion. The principle for converting debt into debt has been established, which indicates that this amount is a budget deficit. The two countries are also exchanging draft agreements in this regard, but the finance ministry wants to make this progress public when all points are agreed between the two countries and with mutual consent. The signing of the agreement will come in handy.current world news
Budget documents of 2019-20 show budgeted support of Rs750 billion from friendly countries, the aforementioned amount has been estimated on the basis that 5 billion dollars in Saudi Arabia and UAE will be converted into debt.current world news
Under the IMF agreement, Pakistan has estimated the budget deficit at Rs 3137 billion in the current fiscal year, which is 7.1 percent of GDP, before the budget deficit was estimated at Rs 3560 billion, however Provincial Revenue. Budget deficit has been estimated at Rs 3137 billion after adding Rs 423 billion.
Financing the budget deficit is an important point under the IMF agreement because the fund is restricted by borrowing from the State Bank at zero at the end of each quarter of the financial year.
