IMF never aired concern over funds use for political purpose: govt

ISLAMABAD: The government on Saturday claimed that it had arranged financing of $15.4 billion during the first 10 months (July-April) period of the current financial year, including fresh loans of $8.1 billion, $6 billion deposits rollover from friendly countries and $1.3 billion refinancing of commercial loans.

Meanwhile, the Ministry of Finance also explained that the IMF never raised any concerns over the utilisation of funds for political purposes.

The Economic Affairs Division and Ministry of Finance issued two separate press statements and stated that it was reported that Pakistan received $ 8.1 billion in financing during 10 months from July 2022 to April 2023.

“It is elucidated that the total amount received by Pakistan till 30th April 2023 is $15.4bn, which additionally includes the rollover of friendly countries’ deposits amounting to $6bn (i.e. $3bn each from China and Saudi Arabia), and re-financing of a Chinese loan of $1.3bn, recorded as foreign currency denominated domestic debt,” it added.

The Government of Pakistan has financing arrangements in place to meet its re-payment obligations during the FY-23 and is expecting improvement in its foreign exchange reserve levels, it added. Another press statement issued by the Ministry of Finance stated that certain sections of the national press had reported that the delay in signing the IMF agreement was because the IMF wanted an assurance from the Ministry of Finance that the funds will not be utilised for political purposes.

“It is clarified that this news is false and unfounded as the IMF has never raised any such concern with the government nor any funds can be utilised for any purpose without the approval of parliament through the budget.”