Do more Uncle Sam

Pakistan seeks US help for next IMF tranche

ISLAMABAD: Pakistan has asked US to use its influence on International Monetary Fund (IMF) for the release of next tranche in the month of March so that the government could make its budget for next financial year 2011-12.

Pakistan’s chief executive Syed Yusuf Raza Gilani has placed this request in a meeting with US delegation led by David Lipton, Senior Advisor to the US President at the PM House here on Thursday afternoon, a senior official told our sources.

 

The premier said while the government of Pakistan was implementing the IMF programme in the interest of the country, the US influence would be crucial for the disbursement of the next IMF tranche in March this year to help his government prepare the next fiscal year’s budget.

 

The official said Pakistan’s request came at a time when multilateral donors including World Bank, Asian Development Bank (ADB) and Islamic Development Bank (IDB) have reportedly halted budgetary support to Pakistan and asked the government to first get the Letter of Comfort (LoC) from the International Monetary Fund.

The IMF programme has been suspended for the last 7 to 8 months because of the government’s failure to implement the Reformed GST. The $11.3 billion Stand-By Arrangement (SBA) has already been extended till September 2011 on Pakistan’s request which was earlier scheduled to end in December 2010. Pakistan has so far received over $8 billion under the SBA programme loan of IMF.