Pakistan will get financial support
According to the announcement made by the official sources yesterday Pakistan is going to receive about $5.5 - $6.5 billion as a foreign exchange support from international sponsors. This aid is will be made throughout the time period from October to December 2008.
$1 billion of this aid will be from Asian Development Bank (ADB), $ 500 million are coming from Islamic Development Bank (IDB) and about $4-5 billion are related to integrated economic aid from Saudi Arabia.
Furthermore ADB will begin to pay out its disbursements including $500 million as an Economic Stabilization Program (ESP) in the end of September. The reason of this delay was in considering several stipulations by the ADB, however the aid will be transferred as soon as these stipulations will be settled down.
Moreover ADB will also provide another $ 500 million in the second quarter of the current fiscal year as it annual fee to support projects in the pipeline. As for the aid from the Saudi Arabia it will consist from cash economic aid, a fertilizer on deferred payment and big portion of oil facility.
What concerns financial support from IDB the initial amount of the aid negotiated by Islamabad was $50 million and another $ 50 million for the different import purposes. However soon they are going to start negotiations for provision of additional $ 400 million for the import of fertilizer.
Therefore the investments over the $1 billion as well as other financial inflows will contribute to the stop the fall of the Pakistan foreign exchange reserves that are currently at the point of $9.1 billion.
But due to official sources the gross forex reserves of the Pakistan include also $3 billion in foreign currency kept in commercial banks. As for the net forex reserves of the Pakistan they are at the point of $4.6 billion for today.
As for the World Bank and other international financial organizations’ aid we should say it was stopped because of the macro-economic instability of the Pakistan. The main term of the World Bank is the improved macro-economic indicators as per benchmarks defined by various international financial organizations.
