ISLAMABAD: Pakistan has asked the Internati­onal Monetary Fund for a 75 million dollar stan­dby credit, officials said here today [Sept 19].

Those sources said the draft agreement for the standby credit is currently under consideration of the IMF Board in Washington. Both Pakistan and the IMF are understood to have approved the draft.

The proposed agreement is expected to be signed in the next few weeks. The amount will remain at Pakistan’s disposal for utilisation during the fiscal year 1968-89, if needed.

Pakistan has asked the IMF to arrange this standby credit which it wanted to use as a cushion for the current import policy to foot the import bill for the current year, if there is any shortfall in the availability of foreign exchange.

The credit will tide over any situation which might be created by way of a reduced availability of foreign aid in the context of the current adverse aid climate which exists on a world-wide basis.

If this happens, Pakistan’s commodity assistance may be affected. But the IMF standby credit will enable the country to import commodities to meet the needs for industrial raw materials and other essential items to feed the domestic market and keep the prices stable. — Agencies

Published in Dawn, September 20th, 2018