Pakistan : Terrorist Wahabi Islamic Rep Pakistan 6

[Naresh]

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[url="http://www.dailytimes.com.pk/default.asp?page=2010/06/09/story_9-6-2010_pg5_1"]Govt to seek $19bn loans, grants in 3 yrs[/url]



ISLAMABAD: [size="4"]Pakistan is to negotiate loans and grants of $19 billion, [color="#FF0000"]comprising $14 billion loans[/color] and [color="#006400"]$5 billion grants,[/size][/color] with multilateral and bilateral development partners during next three years 2010-13, according to the projections contained in the Medium term Budgetary Framework (MTBF) released by Ministry of Finance.



Pakistan would also service its debt amounting to $10 billion during next three years 2010-13 - with $7 billion of principle amount and $3 billion interest payments.



The future policy priorities of the EAD, contained in the MTBF book, propose that to finance development projects and overcome balance of payment (BOP) difficulties, $19 billion, comprising $14 billion loans and $5 billion grants, can be negotiated by the Economic Affairs Division. In this regard, the EAD has been mandated to negotiate with multilateral and bilateral development partners and ensure this disbursement during 2010-13.



The government’s strategy has been to secure foreign loans at concessional terms i.e. low interest rate coupled with longer maturity period.



EAD would continue to negotiate with and persuade the “Friends of Democratic Pakistan” (FODP) to honour pledges made by them at Tokyo Conference, and get maximum disbursements as balance of payment support through government channels, rather than spending it through non-governmental organizations (NGOs) and contractors.



Bilateral economic issues in the areas like trade, investment, energy, agriculture, science and technology, education, health, culture and tourism are to be negotiated on the platform of the Joint Ministerial Commission (JMC), and Joint Economic Commission (JEC). In this regard, JEC and JMC with 51 countries have been planned during the next three years. The government has also plans to arrange annual consultation with Paris Club member countries from next fiscal year 2010-11.



The government expects that Rs 598.558 billion in foreign economic assistance will be disbursed to Pakistan during 2010-11, Rs 606.402 billion by 2011-12 and Rs 560.273 billion in 2012-13.



According to the MTBF 2010-11 to 2012-13 the government has plans to provide budget based on service delivery to EAD. The government would repay principle amount of foreign loans worth Rs 113.818 billion in 2010-11, Rs 119.509 billion in 2011-12 and Rs 125.485 billion in 2012-13.



Short-term loans worth Rs 26.460 billion will be paid in 2010-11, in 2011-12 the government would pay short term loan worth Rs 27.783 billion and Rs 29.172 billion short term loan will be paid in 2012-13.



After 2011-12 Pakistan will have to repay over $11.5 billion to the IMF in a short period of three years as servicing of debt acquired during the IMF standby arrangement (SBA). This would require a large reduction in the current account deficit to create the requisite debt repayment capacity, an official said.



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