IMF, Paris Club to fill $8bn gap

Published October 28, 2001

ISLAMABAD, Oct 27: The International Monetary Fund and the Paris Club have assured Pakistan to fill $8 billion financing gap during the next three years in order to provide a major relief to the economy of the country.

“We have reached a broad understanding with the IMF and the Paris Club for filling Pakistan’s $8 billion financing gap through generous bilateral and multilateral support by 2004”, said Minister for Finance Shaukat Aziz.

Speaking at a joint news conference along with Minister for Commerce Razak Daud here on Saturday, the finance minister termed his visit to Paris very productive and meaningful to help improve the country’s economy.

He said he had held detailed meetings with Paris Club’s President and the IMF senior Director Paul Shabrier on rescheduling Pakistan’s debt and getting Poverty Reduction Growth Facility package respectively. “The good thing is that the IMF board will meet on Dec 5 to consider and approve the PRGF, and the Paris Club is meeting on Dec 12 to get our loans rescheduled”, Mr Aziz said. The draft report of the IMF, he pointed out, has been provided to the government about the PRGF.

He said he was leaving for Tokyo on Monday as the special envoy of President Pervez Musharraf to have an increased economic cooperation with Japan. He said it was a welcoming gesture that Japan has lifted international sanctions against Pakistan.

“I would discuss with the Japanese authorities the issue of debt relief and at the same time pursue for the resumption of annual 400 to 500 million dollar assistance for Pakistan”, he said. Nevertheless, he said, he still had to discuss the modalities of the assistance whether it will be in the shape of Official Development Assistance (ODA) or in shape of any other funding package.

Mr Aziz did not offer any comment when asked by a journalist that whether the government of Pakistan will sign the Comprehensive Test Ban Treaty (CTBT). “The issue of non-proliferation is very important but we can discuss this issue with you some other time”, he added.

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