As Economical condition of Pakistan worsens day by day and the deadlock in talks with International Monetary Fund (IMF) continues, France has offered to back Pakistan in talks with the financial institutions.
While Addressing the International Conference on Climate Resilient Pakistan held in Geneva, French President Emmanuel Macron said in a video message that Paris was ready to support Pakistan in its talks with financial institutions as the country faces huge losses from recent floods.
Also Read : 16.3 BIllion Dollars needed for flood-hit areas says PM Shehbaz Sharif at International Climate Conference
French President Emmanuel Macron pledged to bring in a contribution of $10m for aid support to Pakistan. “France will bring a new contribution of $10 million for Pakistan aid support,” he added. “Pakistan is doubly victimized by climate chaos and a morally bankrupt global financial system,” he added, calling for creative ways for developing countries to access debt relief and financing
Last week, Prime Minister Shehbaz held a phone call with the Managing Director of the International Monetary Fund (IMF), wherein he told her about the government’s resolve to complete the terms of the program.
Under the ninth review of Pakistan’s $7 billion Extended Fund Facility (EFF), Islamabad is to receive $1.18 billion, which will shore up the economy and help ease the economical pressure.
Earlier The foreign exchange reserves held by the State Bank of Pakistan (SBP) continued their decline and plunged by $1.2bn to reach $4.5 billion.
According to sources, the State Bank of Pakistan’s foreign exchange reserves fell to $4.5 billion after the new debt repayments to UAE Banks. Pakistan paid back 600 Million Dollars to the Emirates NBD Bank and 415 Million Dollars to the Dubai Islamic Bank.
The fall in reserves contributes to the worrisome situation the country finds itself in, as the reserves are also not enough to service its huge foreign debt. Despite this Finance Minister Ishaq Dar said that the country will not default Pakistan expects a refinance of $700 million from the Chinese Development Bank, and a $3 billion cash injection from Saudi Arabia. After this Pakistan once again will be on its track to Progression.
