File photo: A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar, Pakistan, on December 3, 2018. (REUTERS/Fayaz Aziz)
Pakistan expects to receive about $4 billion external financing from friendly countries after July, following an agreement with the International Monetary Fund on revival of its bailout package.
Pakistan will get the funds in the forms of loan, cash deposits, investment in stocks and oil supply on deferred payment, finance minister Miftah Ismail said at a press conference in Islamabad.
The nation will get a financing of $1.2 billion against a deferred oil payment facility from a friendly country, and $1.5 billion-$2 billion investment in stocks from another country.
Pakistan is also expecting some cash deposit and financing against deferred gas payment facility.
Asian Development Bank and World Bank will also give funding of around $6 billion in the fiscal year started July, he said.
The IMF this week reached an agreement with Pakistan to revive a funding program after examining the economic strategy of the nation that was facing potential default due to surging current account deficit and inflation and fast depleting foreign exchange reserves.
The accord and reduction in imports to an estimated $6.5 billion in July will ease pressure on the rupee, Ismail said.
"We have now averted a potential default,” he said. Pakistan is committed to raise 850 billion rupees during the current fiscal year through taxes on fuel, Ismail said.
