ISLAMABAD: The Pakistani finance ministry said on Thursday the Asian Development Bank had indicated it could provide additional support of $2.5 billion to the cash-starved nation for the next fiscal year, of which up to $2 billion would be available in the ongoing calendar year.
The statement comes as Pakistan is waiting to resume talks on its seventh review of a $6 billion IMF rescue package agreed in July 2019. If the review is approved, the IMF will release over $900 million and unlock other external funding.
With a yawning current account deficit and dwindling foreign reserves, the South Asian nation is in dire need of external finances.
On Thursday, Federal Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha held a meeting with ADB Country Director Yong Ye and his team.
“ADB indicated the additional support of $ 2.5 billion for the next FY, from which $1.5-2 billion can be available in the ongoing calendar year,” the finance division said in a statement following the meeting.
Pakistan’s macroeconomic indicators currently paint a dismal picture, with the national currency hitting a historic low of Rs191.77 against the US dollar on Thursday.
Pakistan has also witnessed the highest trade deficit of $39.26 billion in the first ten months of the current fiscal year (FY22) while its current account deficit has reached $13 billion and foreign reserves stand at $10.49 billion. Inflation was recorded at 13.4 percent in the month of April.