ISLAMABAD, Aug 16: The government is eying to receive more than $13 billion external financing in various sectors in the wake of its new multi-pronged strategy aiming to bolster over all economic scene in the fiscal year 2008-09.

The money will flow into the country as a result of Saudi oil facility, reinvigorated privatisation programme, expediting inflow of pending instalments from already privatised units, floating of workers remittances securitization bonds, injecting foreign investment in KESC, FDI in oil and power sectors and renegotiated credit facility from international financial institutes (IFIs).

A fact sheet issued here by the finance ministry on Saturday regarding policy measures taken so far by the PPP-led government to beef up foreign exchange reserves and economic stability at a time when the rupee is under pressure against greenback and up surge in prices.

The government currently is working on Saudi Oil Facility that aims to provide a substantial cushion of $5-6 billion followed by major privatisation programme worth $2-3 billion and ensuring a receipt of $136 million from PTCL’s instalment receipt schedule after its privatisation.

According to the statement the government is also considering the floating of workers’ remittances securitisation bonds worth $800 million to provide additional cushion to the existing forex reserves. Foreign direct investment in oil and power sectors is promising, whereas foreign investors have expressed interest in investing $400 million in KESC.

The government expects to generate another $250–300 million out of Pakistan Telecommunications Authority’s licensing of internet based projects to be issued to various companies during the fiscal year 2008-09.

Based on IMF Letter of Comfort, $500 million’s World Bank credit facility is in the pipeline. Drastic cut on expenditure sides already put in place, which would also result into reducing budget deficit.

A US-supported democracy dividend of $1.5 billion per annum is likely to start from 2009 onwards. As a result of discussions held during recent Pak-US Economic Dialogue, Reconstruction Opportunity Zones (ROZ) will facilitate job creation and economic development in the Federally Administered Tribal Areas in NWFP, the earthquake-affected areas of Azad Jammu and Kashmir, and Balochistan within 100 miles of the Afghan border.

The ROZs will provide greater market access to exports from businesses in these areas and create employment opportunities for the border regions — thereby providing additional investment cushion to be injected into national economy. According to economic data recorded for July, the first month of the financial year 2008-09, the FBR has collected Rs71.5 billion as compared to Rs50.9 billion in the same month last year, posting healthy increase of 40.4 per cent.

The current fiscal year has started on an encouraging note as workers’ remittances amounted to $627.2 million in July 2008 — the highest-ever in a single month, showing an increase of 26.5 per cent over the last year’s July of $495.6 million. The monthly average remittances during the last fiscal remained at $537.6 million.

The inflow of the workers’ remittances in 2007-08 breached the $6 billion mark for the first time in the history of the country, along with an increase of 17.4 per cent over the corresponding period of 2006-07. It has set a target of $7.5 billion for the current fiscal year. An increase of 26.5 per cent in the first month of the current fiscal year suggests that the remittances target is most likely to be achieved.