October 26, 2001	Friday	Shaba'an 8, 1422

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PARIS, Oct 25: Pakistan has reached a “broad understanding” with the International Monetary Fund on a major poverty reduction loan, Finance Minister Shaukat Aziz said after talks with IMF officials here on Thursday.

Aziz also said the Paris Club group of creditor states had scheduled a session to discuss a separate request for “substantive debt relief” in December.

Pakistan is burdened by some $36 billion of debt, of which around $15.5 billion is with the World Bank, IMF and other institutional lenders and $12.5 billion with Paris Club states.

Aziz said talks held with delegations from both the IMF and the Paris Club on Thursday had been “very constructive”, but said the amount of any IMF loan was still open.

“We have a broad understanding on the modalities of the (poverty reduction) programme. The amount obviously depends on many other factors,” Aziz told a news conference.

FURTHER INFLUX: Earlier this week, the IMF said in Washington it was “highly satisfied” with progress made in agreeing the terms of economic reforms Pakistan would adhere to in return for a potential three-year poverty reduction loan.

IMF officials have also said it is too soon to put a figure on the size of the new loan.—Reuters

Federal minister currently visiting Algiers to attend the 26th annual meeting of Islamic Development Bank, also held important bilateral consultations with delegates from countries of Saudi Arabia, Kuwait and UAE on Wednesday, adds APP.

According to a message his first meeting was with Dr Ibrahim bin Abdul Aziz Al-Assaf, Finance Minister of Saudi Arabia followed by meeting with Dr Yousef Hamad Al-Ibrahim, Finance Minister of Kuwait and Dr Mohamed Khalfan Ben Kharbach, State Minister for Finance of UAE.

Finance Minister apprised them of the impact of September 11 tragic events on Pakistan’s economy.