Pakistan de facto finance minister Hafeez Shaikh said Saturday the Asian Development Bank (ABD) will be sanctioning budgetary support of $3.4 billion to the country following help requested to overcome balance of payments crisis.
Shaikh tweeted, “$2.2 billion will be released this fiscal year (FY), starting in the first quarter of FY 2019-20. This will help the reserve position and the external account.”
It is learned the first disbursement of the sanctioned fund will cover trade competitiveness, capital markets development, energy sector and other such policy reform areas.
Pakistan unveiled federal budget on Wednesday and includes several expected belt-tightening policies and meeting terms of the IMF loan.
Earlier it was estimated the country would grow by 4 per cent in the next financial year while Revenue Minister Hammid Azhar released a budget document Thursday showing the growth has been trimmed to 2.4 per cent.
Inflation hit the country by 9 per cent last month and during the 2019/20 financial year, it would be between 11 and 13 per cent.
IMF estimates the country would grow by 2.9 per cent.
Financial crises have shaken Pakistan over the years. According to political analysts, the IMF programme can probably stabilize the situation.