CP Medical Clinic | CP Legal Advisor | CP Ladies | CP Kids | CP Sports
CP Students

Register in our Community Database

Back to CRISES - Latest News

 Pakistan outlines economic relief it wants in lieu of supporting
 anti-terror efforts

 ISLAMABAD, October 24 (Internews): Pakistan has prepared a 10-point
 multi dimensional economic relief package that it expects from various
 bilateral and multilateral quarters, sources said here Wednesday.
 "The package details seeking an immediate and extensive debt-relief
 ahead of a debt write-off has been forwarded to the United States," an
 official of the Ministry of Finance confirmed.
 Visiting US Under Secretary of State for Economic, Business and
 Agricultural Affairs Alan P Larson had received the 10-point package and
 had largely agreed on it with a view to fully support Pakistan in
 acknowledgement of the support the country had extended to the US in its
 war on terrorism, diplomatic sources also confirm.
 The Pakistan government, through the proposed package, thanked the US
 and its allies for committing $800 million immediate grant, and called
 for bigger financial allocations in shape of cash grants to provide
 certain immediate relief to its economy.
 According to the sources, the package calls for re-profiling of $12
 billion bilateral debt in order to bring it to a sustainable level so
 that it could be serviced easily. This re-profiling will provide
 temporary breathing space if not a permanent solution to the country's
 debt problem.
 The package also seeks a larger size of the Poverty Reduction Growth
 Facility (PRGF) than the one, which was being discussed before Sept 11
 terror attacks in New York and Washington.
 Pakistan was earlier given to understand to get about $1.5 billion under
 the PRGF by virtue of having maximum 90 per cent quota under $1.3
 billion Special Drawing Rights (SDRs).
 This quota could now be stretched to 130 or 140 per cent through a new
 amendment in IMF rules as the Americans are fully supporting the
 government of President Pervez Musharraf.
 The PRGF was being sought on highly concessional terms and could be
 offered to Pakistan at only 0.5 to 0.7 per cent service charges.
 The sources said Larson had proposed enhancement of Pakistan's maximum
 quota in the IMF from 90 per cent to 120 per cent. But he had not
 disagreed that it could be further increased, as the country was
 currently facing an unusual economic situation, they added.
 The package wants new assistance from international financial
 institutions on new and better terms and not on existing Houston or
 Naples terms.
 Pakistan has so far been offered assistance under Houston terms and not
 under Naples terms, which were relatively more favourable.
 "But the future assistance is likely to be on new terms other than
 Houston and Naples terms because of Washington's renewed support to
 Islamabad, a diplomatic source said.
 The sources said Pakistan was not against a debt write-off, but did
 understand that it was not currently possible for bilateral donors as
 their respective constitutions did not allow them to have such a
 However, they said the US had assured that it would look for changing
 laws as had been changed for lifting political and military sanctions
 against Pakistan. -Internews

Are you a resident of Saudi Arabia?
Join The Team                                                                Community warning mail
Dammam | Jeddah | Riyadh | Taif
Makkah Hotel Guide     How to Perform Umrah

We are a community driven site - Send your articles, stories and event reporting to We publish such contents within 24 hours!


ContactPakistan offers FREE hosting to all community contests.
If you like to sponsor a competition such as sporting events quiz,
Children Essay, Drawings etc. then drop an Email to  Webmaster for more
details. We will design complete contest and advertisement campaign Free!!
Let us build virtual community and your business together

ęCopyright notice