Another IMF condition fulfilled: S Arabia to renew $3bn deposit for Pakistan this week

Another IMF condition fulfilled: S Arabia to renew $3bn deposit for Pakistan this week

Saudi Crown Prince Mohammed bin Salman meets Pakistan’s Prime Minister Shehbaz Sharif upon his arrival in Jeddah, Saudi Arabia, on April 29, 2022

Saudi Arabia plans to renew its $3 billion deposit in assistance to Pakistan which looks to rein in one of Asia’s highest inflation rates and stave off a current-account crisis

RIYADH – Saudi Arabia has pledged $3 billion to help the South Asian nation as it seeks to contain Asia’s highest inflation rate and stave off a current account crisis, according to people familiar with the matter. I am planning to update my deposit. The Saudi finance ministry plans to renew a $3 billion deposit at the National Bank of Pakistan later this week, Bloomberg reported on Saturday. It plans to provide $100 million per month, which will come as additional support, the sources added.

Pakistan’s funding shortfall was filled after the Kingdom’s pledge, sources said, adding that the pledge would pave the way for loan approval from the International Monetary Fund at the end of the month. It has been coordinating with the IMF to ensure that, one of the sources said. The commitment could be announced within the next two days, one of the sources said. Saudi and Pakistani finance ministry officials did not immediately respond to messages seeking comment.

The aid came at a time when the IMF sought to assess Saudi Arabia’s commitment to lend to Pakistan before international financial institutions disbursed new funds to the South Asian country. Bloomberg reported in July that he wanted Saudi Arabia to lend up to $4 billion to Pakistan to ensure Islamabad would not run out of cash after his IMF loan.

Saudi Arabia has provided assistance to Pakistan on several occasions. When former Prime Minister Imran Khan visited the kingdom, she pledged $4.2 billion in aid to Pakistan. included a $1.2 billion facility to fund oil derivative transactions.

Saudi Arabia discussed extending the maturity of his $3 billion deposit with Pakistan during meetings with his Prime Minister Shebaz Sharif and the Kingdom’s Crown Prince Mohammed bin Salman in May. Her Mehtab Haider of
Islamabad adds: proxy import.

“Pakistan has made great progress despite facing many challenges. The country has been able to transform itself into a semi-industrial economy and a center of business activity,” said the Ministry of Finance in a statement titled “Pakistan’s 75-Year Economic Walk,” which was just released for one day. The first detailed report states: We celebrate Pakistan’s Independence Day on Saturday. According to the report, the country’s GDP growth was 1.8% in 1950, but now it has increased to 5.97% in 2022.

Pakistan’s per capita income stood at $86 in 1950, which had now jumped up to $1,798 in 2022. the dimensions of Pakistan’s economy was hovering around $3 billion in 1950, which had increased to $383 billion in 2022. The country’s exports were standing at $163.9 million in 1949, which had now jumped up to $32.5 billion.

The country’s imports were standing at $355.5 million in 1949 which has now increased to $72 billion in 2022. The report highlighted revolution , construction of Tarbela Dam, industrialization phase, separation of Bangladesh , construction of national highways, atomic explosion in 1998, Islamic banking, women into parliament, China Pakistan Economic Corridor (CPEC) and moving towards digital Pakistan.

It states that the nine-point agenda comprised ensuring structural changes by that specialize in export growth instead of import substitution, increase in GDP growth to 6-7 percent within the medium term, sustain rate of growth over the medium and long term without creating pressure on balance of payments, reduce poverty by ensuring high and inclusive growth and strengthening social safety nets, improve tourism and knowledge technology, improve investment climate and attract domestic and foreign investment through effective implementation on investment promotion strategy, establish special economic zones that specialize in export promotion, import substitution and employment generation, make youth strength of the state through various youth skills development program and to realise these objectives, short-medium and future economic programs are underway for all sectors of the economy, including agriculture, industry and services.

In crux, the aspiration is to place the economy on a higher growth trajectory through higher investment, efficiency and enhanced productivity.

While dwelling upon historic achievements, the report states that the prevalence of poverty stood at 40.24 percent in 1963-64 but now it’s reduced to 21.9 percent in 2018-19 despite changing its methodology on more comprehensive basis by calculating poverty on basis of cost of basic needs.

The numbers of employed labour force increased from 16.24 million in 1963-64 to 67.25 million in 2020-21. the dimensions of population stood at 65.3 million in 1972, which has now increased to 207.7 million on the idea of last population census held in 2017. it’s estimated that now the population might have touched 227 million in 2022. the entire number of registered vehicles were standing at 31,892 in 1947, which had now touched 32.4 million in 2021. the entire number of telephone and mobile users stood at 15200 in 1947, which had now touched to 194.2 million in 2021. The anticipation now touched 67.4 years in Pakistan.

Health care costs were negligible, reaching Rs 1 million in 1947, but reached Rs 657,185 crore in 2020-2021. Infant mortality is 150-180 and in 2021 he will rise to 58.8. The number of public hospitals was only 292 in 1947, but in 2021 he increased to 1,276. In 1947 there were only 2 universities, but in 2021 there will be 233. The total number of
universities was 40 from 1959 to he 60, but will increase to 3,872 in 2021.

The total number of technical and vocational training institutions increased from just 46 in 1947-48 to 3,914 in 2020-21. The number of primary schools he had in 1947-48 was only 8.4 million, but in 2021 he has increased to 18,790.

university employment has now reached 2,000,000. The country’s overall literacy rate has risen from 16.4% in 1951 to 68.2% in 2020-21. Remittances from Pakistanis living abroad increased from just $140 million in 1973 to $31.2 billion in 2021. Foreign direct investment, which the country attracted $1.2 million in FY1950, increased to $1,867.7 million in FY2022.

The share of indirect and direct taxes was 78% and 22% respectively in the 1960s, while in the 2020s it was 39% direct taxes and 61% indirect taxes. The size of the Public Sector Development Program (PSDP), which has varied over the years depending on the available financial space, amounts to around Rs 800 crore. The manufacturing share was originally 80% and is now 65%. Wheat production in 1948 he was 3.354 million tons, but in 2022 he increased to 26.394 million tons.

Credit/Source : THENEWSPK

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